2025-02826Notice

Nasdaq ISE Cleans Up Options Trading Rules and Fees

Published Date: 2/20/2025

Notice

Summary

Nasdaq ISE just updated several options trading rules to make things clearer and smoother for traders. These changes affect how stop orders, complex orders, and price protections work, plus they tweak some risk limits and remove outdated fees. The new rules kicked in right away, so options traders should watch for these updates to keep their trades sharp and fair.

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Responses in Facilitation & PIM Rules

If you participate in Nasdaq ISE's Facilitation Mechanism, Solicited Order Mechanism, or Price Improvement Mechanism (PIM), the Exchange amended how responses — including multiple responses — are treated. The rule change was filed February 6, 2025 and designated immediately effective.

Price Protection and Risk‑Limit Changes

Nasdaq ISE amended how Order Price Protection applies to Stop‑Limit Orders, changed parameters for the Market Wide Risk Protection, and revised the Acceptable Trade Range (all in options 3, section 15). These amendments were filed February 6, 2025 and designated immediately effective.

Stop and Stop‑Limit Order Definitions

If you trade options and use stop or stop‑limit orders, Nasdaq ISE amended the formal definitions of a Stop Order and a Stop Limit Order. These changes were filed on February 6, 2025 and were designated immediately effective by the Exchange.

New Cancel‑Replacement Complex Order

If you trade complex options strategies, Nasdaq ISE added a new Cancel‑Replacement Complex Order type to its rules (options 3, section 14(b)(20)). This amendment was filed on February 6, 2025 and designated immediately effective.

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Key Dates

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

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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