Federal Register #SR-NYSEAMER-2026-54

Proposed Rule Change to FLEX Options Rules by NYSE American LLC

This notice concerns a proposed regulatory change by NYSE American LLC, published by the Securities and Exchange Commission (SEC), regarding FLEX Options rules. - Government buyer: - Securities and Exchange Commission (SEC) - NYSE American LLC (as the proposing exchange) - No OEMs or commercial vendors are involved, as this is a regulatory action, not a procurement - Products/services requested: - No products or services are being procured; the notice pertains to amendments of exchange rules - Key details of the proposed rule change: - Amends Rules 903G and 906G governing FLEX Options - Would allow cash settlement for up to 50 non-ETF FLEX Equity Options, provided the underlying securities meet specific liquidity criteria - Expands current rules, which only permit cash settlement for ETF-based FLEX Options - Eligibility for cash settlement determined by average daily notional value, not volume - Includes position limits and regulatory oversight to mitigate market manipulation risks - Aims to broaden investor access, improve liquidity, and provide an exchange-traded alternative to OTC options - No contract, procurement, or acquisition activity is associated with this notice

Description

This notice announces a proposed rule change filed by NYSE American LLC to amend Rules 903G and 906G related to FLEX Options. The amendments would permit cash settlement for up to 50 non-ETF FLEX Equity Options whose underlying securities meet specified liquidity criteria, expanding beyond the current allowance for ETFs. The proposal aims to broaden investor access to FLEX Options, improve liquidity, and provide an exchange-traded alternative to OTC markets, with position limits and regulatory oversight to mitigate manipulation risks.

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