Federal Register #SR-ISE-2026-44

SEC Notice: Nasdaq ISE Rule Change for FLEX Options Listing

This notice from the Securities and Exchange Commission (SEC) announces a proposed rule change by Nasdaq ISE, LLC regarding FLEX options listing rules. - The rule change amends eligibility for cash settlement of FLEX options on Exchange-Traded Funds (ETFs): - Newly FLEX-eligible ETFs can qualify for cash settlement based on one month of trading statistics if they meet higher thresholds ($600 million average daily notional value and 5,616,000 shares average daily volume) - A tiered framework is established for handling ETFs that no longer meet eligibility requirements - The cap limiting cash settlement as a contract term to no more than 50 underlying ETFs is eliminated - The amendments are designed to refine the existing framework, address operational gaps, and maintain protections against market manipulation - The notice references similar rule changes by Cboe - No OEMs, vendors, or product part numbers are mentioned, as this is a regulatory rule change, not a procurement action

Description

The Securities and Exchange Commission has issued a notice regarding a proposed rule change by Nasdaq ISE, LLC, which amends the FLEX options listing rules. The amendments include permitting newly FLEX-eligible ETFs to qualify for cash settlement based on one month of trading statistics, establishing tiered criteria for ETFs that cease to satisfy eligibility requirements, and eliminating the cap limiting cash settlement to no more than 50 underlying ETFs. The proposal aims to refine the existing framework to address operational gaps while preserving protections against market manipulation.

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