Federal Register #SR-NYSEAMER-2026-96

NYSE American proposes changes to Binary Return Derivatives trading rules

The Securities and Exchange Commission (SEC) published a proposed NYSE American rule change for Binary Return Derivatives (ByRDs). - Organizations: NYSE American LLC filed the proposal; the SEC published it for public comment. - Proposed ByRD rule changes: Replace the current volume-weighted average price (VWAP) with the closing price reported by the underlying security’s primary listing market to determine expiration settlement prices; establish initial and continued listing criteria for ByRDs based on individual stocks; and eliminate settlement-price rounding. - Finish High ByRDs: Pay the settlement amount when the underlying security closes at or above the strike price. - Procurement: This is a proposed financial-market rule change, not a procurement. No products, services, quantities, part numbers, vendors, or OEMs are identified.

Description

NYSE American LLC proposes changes to its rules governing the trading of Binary Return Derivatives (ByRDs). The changes would use the underlying security’s closing price reported by its primary listing market, rather than a volume-weighted average price, to determine expiration settlement prices. The proposal also establishes initial and continued listing criteria for ByRDs on individual stocks and eliminates settlement-price rounding, including revising Finish High ByRDs to pay the settlement amount when the underlying security closes at or above the strike price. The Securities and Exchange Commission is publishing the notice to solicit comments on the proposed rule change.

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