Federal Register #SR-NYSEARCA-2026-76

SEC Rule Change: Increased Position Limits for iShares Bitcoin Trust ETF (IBIT) Options

This notice from the Securities and Exchange Commission (SEC) details a regulatory change impacting trading limits for a major financial product: - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors: - iShares (subsidiary of BlackRock), issuer of the iShares Bitcoin Trust ETF (IBIT) - NYSE Arca, Inc. (exchange proposing the rule change) - Financial Industry Regulatory Authority (FINRA), operator of Trade Reporting Facilities (TRFs) - Products/Services Requested: - Options on iShares Bitcoin Trust ETF (IBIT) - Position and exercise limits increased from 250,000 to 1,000,000 contracts - Part number: IBIT - Quantity: 1,000,000 contracts (limit) - Extension of FINRA Trade Reporting Facilities operating hours - 23 hours per day, five days per week, with a one-hour pause Monday through Thursday evenings - Unique or Notable Requirements: - The rule change is designed to enhance liquidity and trading efficiency for IBIT options - Aligns IBIT options limits with those of similar ETFs - No procurement of physical products or services; this is a regulatory change affecting trading activity and reporting infrastructure

Description

The Securities and Exchange Commission (SEC) has filed a proposed rule change by NYSE Arca, Inc. to amend Rule 6.8-O to increase position and exercise limits for options on the iShares Bitcoin Trust ETF. The proposed change aims to raise the position limit and exercise limits for options on this ETF to 1,000,000 contracts to facilitate trading activities and improve liquidity. This amendment is based on similar proposals by other exchanges and is effective immediately upon filing. The change is intended to support increased market demand and trading strategies while mitigating potential market manipulation.

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