📈Proposed Rule Change for FLEX Options to Allow Cash Settlement
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Phlx's FLEX Floor Trading
Summary
The Securities and Exchange Commission announced amendments to the rules governing FLEX Options, enabling cash settlement for certain equity securities. This change aims to enhance trading opportunities and provide risk management tools for market participants, ultimately promoting market liquidity and transparency. The Exchange expects this will spur competition with the OTC market and broaden access to these financial instruments.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change regarding FLEX Options and their cash settlement features has direct implications for businesses and financial markets. It introduces enhanced methods for investors to manage risks, expands options trading opportunities, and increases market liquidity, which can lead to improved investment strategies.