2025-21988Notice

Nasdaq Tweaks 'Legging Orders': Wall Street's Weirdest Trading Term Gets Update

Published Date: 12/5/2025

Notice

Summary

Nasdaq PHLX is updating its Legging Order rules to match similar options trading features on other Nasdaq exchanges. This change helps traders use legging orders more smoothly and starts right away with no extra fees. If you trade options on Nasdaq PHLX, expect a better, more consistent experience from December 2025 onward.

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Legging Orders Blocked by Higher Priority

Nasdaq PHLX changed Options 3, Section 7(k)(2)(iv) so the system will not generate a Legging Order if there is already a Legging Order in that options series at the same price and same side created by a Complex Options Order with higher priority (for example, a Customer over a Non-Customer). This amendment makes the rule text consistent with Phlx's Customer-priority allocation method.

Rule Change Effective Immediately

The Exchange filed the proposed rule change on November 19, 2025, and the SEC waived the normal 30-day operative delay, designating the proposal operative upon filing. The Exchange will implement this amended Legging Order rule at the same time it implements the related Complex Order Filing (SR-Phlx-2025-17).

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Key Dates

Effective Date
Published Date
11/19/2025
12/5/2025

Department and Agencies

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Independent Agency
Agency
Securities and Exchange Commission
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