Federal Register #SR-MEMX-2026-14

SEC Proposed Rule Change: Increased Position and Exercise Limits for IBIT Options

This notice from the U.S. Securities and Exchange Commission (SEC) details a proposed rule change affecting options trading on the iShares Bitcoin Trust ETF (IBIT): - Government Buyer: - U.S. Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors: - iShares (BlackRock) as the issuer of the IBIT ETF - Products/Services Requested: - Increase in position and exercise limits for options on the iShares Bitcoin Trust ETF (IBIT) - Part number: IBIT - New limit: 1,000,000 contracts (up from 250,000) - Unique or Notable Requirements: - The rule change is intended to address increased demand for IBIT options and facilitate greater liquidity - The proposal aims to align IBIT options limits with those of comparable ETFs - Safeguards against market manipulation remain in place - No direct procurement of goods or services; this is a regulatory change impacting trading limits for a specific ETF option

Description

MEMX LLC filed a proposed rule change to amend Rules 18.7 (Position Limits) and 18.9 (Exercise Limits) to increase the position and exercise limits for options on the iShares Bitcoin Trust ETF (IBIT) to 1,000,000 contracts. The proposal aims to address increased demand and enable liquidity providers to offer additional liquidity, while balancing concerns about market manipulation. The current limits are 250,000 contracts, and the increase aligns with similar limits for comparable ETFs. The Securities and Exchange Commission (SEC) is soliciting comments on this non-controversial proposed rule change.

View original listing