Federal Register #SR-NYSEARCA-2026-68

SEC Notice: Proposed Rule Change for FLEX Options by NYSE Arca, Inc.

This notice concerns a proposed regulatory change, not a procurement opportunity. - Government buyer: Securities and Exchange Commission (SEC) - Subject: Proposed rule change by NYSE Arca, Inc. to amend FLEX Options rules (Rules 5.32-O and 5.35-O) - No OEMs or vendors are involved, as this is a regulatory action - Key proposal details: - Permit cash settlement for up to 50 non-ETF FLEX Equity Options with underlying securities meeting: - Average daily notional value of $500 million or more - National average daily volume of at least 4,680,000 shares over the prior six months - Update position and exercise limits for these options to match those for physically-settled options - Purpose: Broaden investor access to FLEX Options, provide a regulated alternative to OTC markets, and enhance risk management tools - No products or services are being procured; this is a rulemaking notice

Description

This notice pertains to the Securities and Exchange Commission's filing regarding proposed amendments to rules 5.32-O and 5.35-O by NYSE Arca, Inc. The proposed rule change aims to amend rules related to Flexible Exchange (FLEX) Options, specifically to permit cash settlement for up to 50 non-ETF FLEX Equity Options whose underlying security meets certain liquidity criteria. The amendments also include changes to position limits and exercise limits for these options. The proposal is intended to broaden the base of investors using FLEX Options and to provide a regulated exchange-traded alternative to over-the-counter markets.

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