Federal Register #SR-Phlx-2026-29

SEC Notice: Proposed Rule Change to Increase IBIT Options Limits on Nasdaq PHLX

This notice concerns a proposed rule change by Nasdaq PHLX LLC, as published by the Securities and Exchange Commission (SEC): - The proposal seeks to amend position and exercise limits for options on the iShares Bitcoin Trust ETF (IBIT) - Increase from 250,000 contracts to 1,000,000 contracts on the same side of the market - iShares, the ETF's manager, is the primary OEM for the IBIT product - The change is intended to: - Accommodate increased demand and liquidity for IBIT options - Facilitate hedging and market-making activities - Align IBIT's limits with those of other large ETFs - Includes a technical amendment to margin requirements (Options 6C, Section 3) - No procurement of products or services is requested in this notice

Key Entities: - Government buyer: Securities and Exchange Commission (SEC) - OEM: iShares (manager of IBIT ETF) - Venue: Nasdaq PHLX LLC (options exchange)

No products, services, or contract awards are involved in this notice.

Description

The Securities and Exchange Commission published a notice regarding Nasdaq PHLX LLC's proposed rule change to increase the position and exercise limits for options on the iShares Bitcoin Trust ETF (IBIT). The proposal aims to amend Options 9, Sections 13 and 15, to raise the limits to 1,000,000 contracts on the same side of the market, up from the current 250,000 contracts. This change is intended to accommodate increased demand and liquidity for IBIT options, enabling better hedging and market-making activities. The rule change also includes a technical amendment to Options 6C, Section 3, concerning proper and adequate margin.

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