Federal Register #SR-NYSEAMER-2026-63

SEC Notice: Proposed Rule Changes for FLEX Options and Crypto Asset Trust Options

This notice details proposed rule changes by NYSE American LLC and MEMX LLC, as published by the Securities and Exchange Commission (SEC): - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors Mentioned: - NYSE American LLC (Exchange operator) - MEMX LLC (Exchange operator) - Products/Services Requested: - No physical products or part numbers are being procured - Service changes include: - NYSE American LLC proposes to allow FLEX Options (customizable equity or index options contracts) to be traded electronically in its CUBE Auction for both single-leg and complex orders - This expands trading from open outcry to electronic format, with features such as customized terms, distinct pricing, and longer response intervals - MEMX LLC proposes to amend listing criteria to permit options on Commodity-Based Trusts holding multiple crypto assets, provided each asset meets specific market value and surveillance requirements - Unique or Notable Requirements: - NYSE American's rule change aims to enhance price improvement and trading opportunities for FLEX Options, aligning with mechanisms already available on other exchanges (e.g., Cboe, Nasdaq ISE) - MEMX's proposal introduces options on trusts holding multiple cryptocurrencies, subject to strict eligibility and surveillance criteria - No procurement of goods or services; these are regulatory changes to trading rules

Description

This notice announces a proposed rule change by NYSE American LLC to modify Rules 971.1NYP and 971.2NYP. The modification allows FLEX Options to trade electronically in the Exchange's Customer Best Execution (CUBE) Auction for both single-leg and complex orders. The proposal aims to expand CUBE Auction functionality to FLEX Options, which are currently traded only in open outcry, thereby providing potential price improvement and increased trading opportunities. The change is intended to make the Exchange more competitive with other options exchanges and benefit market participants familiar with similar price-improvement mechanisms.

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