Federal Register #SR-FINRA-2026-022

SEC notice of FINRA’s proposed amendments to rules governing binary and metric-based options

This SEC notice covers FINRA’s proposed updates to rules for binary and metric-based options, rather than a government purchase. - Government entities and organizations - The Securities and Exchange Commission (SEC) published the notice. - The Financial Industry Regulatory Authority, Inc. (FINRA) filed the proposed rule change. - The Options Clearing Corporation (OCC) is referenced in connection with options cleared by other registered clearing agencies. - Proposed rule changes - Amendments would clarify how FINRA Rules 2220, 2351, 2357, 2360, and 4210 apply to binary options, options whose payouts depend on specified financial or operating metrics, and options cleared by registered clearing agencies other than OCC. - The proposal includes new and revised definitions and addresses communications, position reporting, customer disclosures, confirmations, and margin requirements. - The notice solicits public comments on the proposed rule change. - No products or services, quantities, part numbers, OEMs, or vendors are being requested; this is a regulatory notice, not a procurement opportunity.

Description

FINRA proposes amendments to Rules 2220, 2351, 2357, 2360, and 4210 to address binary options, options whose payouts are based on specified metrics, and options cleared by a registered clearing agency other than The Options Clearing Corporation. The changes include new and revised definitions and clarify how existing options rules apply to these products. The amendments also address matters such as position reporting, disclosures, confirmations, and margin requirements. The notice invites comments on the proposed rule change.

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