12 Aug 2025
📈Nasdaq ISE's Proposed Options Expiration Changes and Compliance Impacts
Self-Regulatory Organizations; Nasdaq ISE, LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, To Amend the Short Term Option Series Program To List Qualifying Securities
Summary
Nasdaq ISE has proposed a rule change to introduce additional expirations for options trading on individual stocks and ETFs. This adjustment aims to enhance trading flexibility but raises concerns about increased operational risks, complexity, and costs for broker-dealers, with potential consequences for the broader options market.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change by Nasdaq ISE to allow additional expirations for options trading has significant regulatory compliance implications for businesses engaged in derivatives trading. This change could increase operational complexity and costs for broker-dealers, impacting their profitability and risk management practices.