Federal Register #SR-ISE-2026-42

SEC Notice: Nasdaq ISE, LLC Proposed Rule Change for Digital Commodity Options Listing Criteria

This notice concerns a proposed rule change by Nasdaq ISE, LLC, published by the Securities and Exchange Commission (SEC), regarding the listing criteria for options on Commodity-Based Trusts holding digital commodities. - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors: - Nasdaq ISE, LLC (proposing the rule change) - Products/Services Requested: - No physical products or services are being procured; the notice relates to regulatory criteria for listing options on Commodity-Based Trusts - Key Rule Change Details: - Amends Options 4, Section 3 to update criteria for underlying securities - Replaces the term 'crypto asset' with 'digital commodity' for regulatory consistency - Aligns options listing standards with Nasdaq Rule 5711(d) - Requires each digital commodity in a Commodity-Based Trust to have a minimum average daily market value of $700 million over the past 12 months - Mandates that each digital commodity underlies a derivatives contract traded on a market with a comprehensive surveillance sharing agreement with the Exchange - Allows up to 15% of the trust's net asset value to consist of digital commodities not meeting this requirement - Emphasizes liquidity and surveillance to protect investors and ensure market integrity - No procurement of goods or services is involved; this is a regulatory notice only - Only Nasdaq ISE, LLC and the SEC are mentioned as relevant organizations

Description

The Securities and Exchange Commission has published a notice regarding a proposed rule change by Nasdaq ISE, LLC to amend the criteria for underlying securities. The proposal involves amending Options 4, Section 3, Criteria for Underlying Securities, specifically to adopt listing criteria for options on Commodity-Based Trusts that hold one or more digital commodities. The amendment includes replacing the term crypto asset with digital commodity and aligning the options rules with revised listing standards of Nasdaq Rule 5711(d). The proposal aims to ensure adequate liquidity and surveillance for the underlying digital commodities held by the Commodity-Based Trusts.

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