Federal Register #SR-NYSEAMER-2026-86

NYSE American proposal to change cash-settlement eligibility rules for FLEX ETF options

This is a regulatory notice about proposed eligibility changes for cash-settled FLEX ETF options, not a procurement opportunity. - Government entity: Securities and Exchange Commission (SEC). - Filing entity: NYSE American LLC proposes to amend Rule 903G, which governs FLEX Options. - Proposed changes: Newly eligible ETFs could qualify for cash settlement using one month of trading data if they meet both a $600 million average daily notional value threshold and a 5,616,000-share average daily volume threshold. - The proposal would establish tiered treatment for ETFs that later fall below eligibility criteria. - It would remove the existing limit of 50 eligible ETFs. - Other named exchanges: Cboe Exchange, Inc., Nasdaq ISE, LLC, and Nasdaq PHLX Exchange have filed substantially similar proposals. - Procurement relevance: No products, services, quantities, vendors, or contract requirements are requested.

Description

NYSE American LLC proposes to amend Rule 903G governing the terms of FLEX Options, specifically cash-settled FLEX Equity Options with an ETF as the underlying security. The proposed changes would allow newly FLEX-eligible ETFs meeting heightened trading thresholds to qualify for cash settlement based on one month of trading data, establish tiered criteria for ETFs that later fail the eligibility requirements, and remove the 50-ETF limit. The Securities and Exchange Commission published the notice to solicit comments on the proposed rule change, which was filed for immediate effectiveness.

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