2025-02825Notice

Nasdaq MRX Refines Options Rules with New Order Types

Published Date: 2/20/2025

Notice

Summary

Nasdaq MRX is updating its options trading rules to make stop orders clearer, improve how certain order responses work, and add a new cancel-replace order type. These changes affect traders using Nasdaq MRX’s options platform and take effect immediately, aiming to make trading smoother and more transparent without changing fees. The SEC is open to feedback for the next 60 days.

Analyzed Economic Effects

7 provisions identified: 7 benefits, 0 costs, 0 mixed.

How Multiple Responses Are Treated

If you use Nasdaq MRX's Facilitation Mechanism, Solicited Order Mechanism, or the Price Improvement Mechanism (PIM), the Exchange changed how responses are treated and clarified how multiple responses are handled in Options 3, Sections 11(b), 11(d), and 13. These changes became effective upon the February 6, 2025 filing.

New Cancel-Replacement Complex Order

If you place complex options orders on Nasdaq MRX, the Exchange added a new Cancel-Replacement Complex Order type at Options 3, Section 14(b)(20). This new order type is effective as of the February 6, 2025 filing and gives traders a formal cancel-and-replace option for complex orders.

Market-Wide Risk Protection Parameters Changed

The Exchange amended the parameters for Market Wide Risk Protection in Options 3, Section 15(a)(1)(C). This amendment took effect upon the filing on February 6, 2025 and changes the thresholds or settings that govern market-wide risk protections on the MRX options platform.

Acceptable Trade Range Updated

If you trade on Nasdaq MRX, the Exchange amended the Acceptable Trade Range in Options 3, Section 15(a)(2)(A). The amendment, effective with the February 6, 2025 filing, changes the price ranges that the Exchange will accept for trades.

Stop and Stop-Limit Order Clarity

If you trade options on Nasdaq MRX, the Exchange clarified what a Stop Order and a Stop Limit Order are in Options 3, Section 7(d) and (e). These wording changes took effect when the Exchange filed the rule change on February 6, 2025 and aim to make stop order behavior clearer.

Price Protection Applied to Stop-Limits

If you use Stop-Limit Orders on Nasdaq MRX, the Exchange described how Order Price Protection applies to Stop-Limit Orders in Options 3, Section 15(a)(1)(A). This clarification became effective with the February 6, 2025 filing and affects how stop-limit executions are protected by price checks.

No Fee Changes With Rule Update

The Exchange stated these options rule changes take effect immediately and do not change fees. If you trade on Nasdaq MRX, your fee schedule remains the same despite the rule amendments filed on February 6, 2025.

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Key Dates

Effective Date
Published Date
2/6/2025
2/20/2025

Department and Agencies

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Independent Agency
Agency
Securities and Exchange Commission
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