Federal Register #SR-ISE-2026-34

SEC Notice of Proposed Rule Change by Nasdaq ISE, LLC to Amend Short Term Option Series Program for Qualifying Securities

This notice from the Securities and Exchange Commission (SEC) announces a proposed rule change by Nasdaq ISE, LLC regarding the Short Term Option Series Program for qualifying securities. - Regulatory Context: - SEC is reviewing a rule change proposal from Nasdaq ISE, LLC - The proposal targets the listing and trading of short-term options for qualifying securities, especially Exchange-Traded Fund (ETF) Shares - Tiered System for Qualifying Securities: - Tier 1: Based on criteria such as market capitalization, assets under management (AUM), options volume, position limits, and Penny Interval Program participation - Examples: Broadcom Inc. (AVGO), Alphabet Inc. (GOOGL), Microsoft Corporation (MSFT), iShares Bitcoin Trust (IBIT) - Permitted additional Tuesday and Thursday expiration dates for options - Tier 2: Includes ETFs like VanEck Semiconductor ETF (SMH), Energy Select Sector SPDR Fund (XLE), iShares MSCI Emerging Markets ETF (EEM), Financial Select Sector SPDR Fund (XLF) - Permitted additional Monday and Wednesday expiration dates for options - Intended Impact: - Enhance hedging tools for market participants - Reduce premium costs for portfolio protection - No procurement of products or services is requested; this is a regulatory notice affecting securities trading rules.

Description

The Securities and Exchange Commission has published a notice regarding a proposed rule change by Nasdaq ISE, LLC. The proposal aims to amend the Short Term Option Series Program by expanding the listing and trading of qualifying securities, specifically Exchange-Traded Fund Shares. The amendment includes permitting additional expiration dates for options on certain Exchange-Traded Funds and introducing a tiered system for qualifying securities based on specific criteria such as assets under management and options volume. This change is intended to enhance market participant hedging tools and reduce premium costs for portfolio protection.

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