Federal Register #SR-ISE-2026-31

SEC Notice: Nasdaq ISE Proposed Rule Change for Complex Orders with Non-Conforming Ratios

This notice from the Securities and Exchange Commission (SEC) addresses a proposed rule change by Nasdaq ISE, LLC regarding trading practices for Complex Orders. - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors: - No OEMs or vendors are mentioned, as this is a regulatory notice - Products/Services Requested: - No products or services are being procured; the notice concerns regulatory changes - Notable Requirements: - Proposal to allow Complex Orders with both non-conforming and conforming ratios to trade on the Complex Order Book and in auctions - Adoption of a definition for non-conforming ratios - Amendments to rules to update cross-references - Establishment of minimum increments for Complex Options Strategies, Stock-Option Strategies, and Stock-Complex Strategies with non-conforming ratios - Intended to increase execution opportunities for investment strategies outside the current three-to-one ratio requirement - No procurement activity, contract value, or period of performance is associated with this notice

Description

The Securities and Exchange Commission (SEC) published a notice regarding Nasdaq ISE, LLC's proposed rule change to permit Complex Orders to trade in non-conforming and conforming ratios on the Complex Order Book and in various auctions. The proposal includes adopting a definition for non-conforming ratios, amending rules to update cross-references, and setting minimum increments for Complex Options Strategies, Stock-Option Strategies, and Stock-Complex Strategies with non-conforming ratios. The rule change aims to increase execution opportunities for Complex Orders with investment strategies that do not fit within the current three-to-one ratio requirement. The implementation is proposed on or before December 20, 2027.

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