Nasdaq Electrifies FLEX Options for Faster Trades
Published Date: 8/26/2025
Notice
Summary
Nasdaq PHLX is rolling out new rules to let people trade FLEX Options electronically, making it easier and faster for traders to customize their deals. This change affects anyone trading FLEX Options on Nasdaq PHLX and kicks in right away, with no extra fees announced. It’s a big step toward modernizing options trading and giving traders more control and flexibility.
Analyzed Economic Effects
6 provisions identified: 2 benefits, 1 costs, 3 mixed.
Phlx offers electronic FLEX trading
Nasdaq PHLX will adopt new Options 3A rules to let Members list and trade FLEX Options electronically. The Exchange intends to begin implementation on November 3, 2025 and will migrate to the new platform symbol-by-symbol over a five-week period.
Customizable FLEX contract terms
FLEX Options on Phlx will let you choose terms like exercise style (American or European), expiration date, settlement type, and exercise price. Expirations may be up to 15 years for FLEX Equity and Index Options and up to 3 years for FLEX Currency Options; exercise price increments may be no smaller than $0.01.
FLEX order entry and auction mechanisms only
FLEX Orders on Phlx may only be submitted through an electronic FLEX Auction, FLEX PIXL, or FLEX Solicited Order Mechanism (FLEX SOM). The Exchange's regular simple and complex order books will not be available for FLEX Options.
Public customer priority; Phlx allocation method
The System will give Public Customers priority over non-Public Customer interest at the same price, and Phlx will retain its allocation methodology that allocates to Market Makers before allocating to other non-Public Customer market participants.
Fungibility and closing-only intraday rules
If Phlx lists a non-FLEX Option series with identical terms to an existing FLEX series, open FLEX positions become fungible with the non-FLEX series and future trading will be as non-FLEX Options. If an identical non-FLEX series is added intraday, FLEX series may be restricted to closing-only trades for the remainder of that trading day.
Spot crypto ETPs excluded from FLEX
Options on specified Spot Crypto ETPs (for example, certain Bitcoin and Ethereum spot ETPs listed in the rule text) are not eligible to trade as FLEX Options on Phlx. The Exchange proposes this exclusion to continue limiting position limits for these products.
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