📈SEC Proposes Change to Options Position Limits for IBIT
Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend Rule 904
Summary
The Securities and Exchange Commission published a notice regarding the NYSE American LLC's proposal to amend Rule 904, which governs position limits for options on the iShares Bitcoin Trust ETF (IBIT). The amendment aims to enhance trading flexibility and competitiveness by adjusting the previously fixed limit based on market data and trading volume, potentially allowing for increased positions.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change to amend Rule 904 regarding position limits for options on the iShares Bitcoin Trust ETF (IBIT) directly affects trading practices, enabling greater flexibility for institutional investors and market makers. The removal of the 25,000-contract limit in favor of a variable limit based on trading volume promotes innovation and can enhance market competitiveness.