Federal Register #SR-MRX-2026-05

SEC Approves Nasdaq MRX, LLC to List Binary Options on Nasdaq-100 Indexes

This notice announces the SEC's approval of a rule change for Nasdaq MRX, LLC to introduce new binary options products: - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors: - Nasdaq MRX, LLC (exchange operator and product provider) - Products/Services Requested: - Outcome-Related Options (OROs) on the Nasdaq-100 Index (part number: Nasdaq-100 OROs) - Outcome-Related Options (OROs) on the Nasdaq-100 Micro Index (part number: XND OROs) - Both are standardized, cash-settled, European-style binary options with a fixed $100 settlement amount - Unique or Notable Requirements: - Conservative position limit of 25,000 contracts to mitigate market manipulation risk - Enhanced trading rules, risk protections, and surveillance requirements - Margin requirements aligned with existing binary options rules - OROs pay a fixed sum if in-the-money at expiration, providing a clear risk/reward profile for investors

Description

The Securities and Exchange Commission (SEC) has published a notice regarding amendments and rule changes proposed by Nasdaq MRX, LLC. The notice includes details about amendments Nos. 3 and 4 to the proposed rule change, which involve the adoption of new options rule 3B to list and trade binary broad-based index options. These options, referred to as Outcome-Related Options (OROs), are standardized, cash-settled, European-style binary options on broad-based security indexes such as the Nasdaq-100 Index and Nasdaq-100 Micro Index. The rule change aims to provide investors with the ability to transact options that pay a fixed sum at expiration on a listed exchange market with benefits like centralized price discovery and standardized contract terms.

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