Nasdaq PHLX Shifts Risk Settings to Clearing Members
Published Date: 12/23/2025
Notice
Summary
Nasdaq PHLX is updating its rules to let clearing members take on responsibility for managing risk settings for participants who don’t clear their own trades. This change helps share the workload and keeps things running smoothly, starting right away with no extra fees. If you’re a trader or clearing member, this means clearer roles and better risk control on the exchange.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Clearing Members Can Set Participant Risk
If a PSX Participant does not self-clear, the Participant can designate a clearing member to set and adjust the Participant's risk levels in the Exchange's trading system. The Participant can view any risk levels the clearing member sets, will be notified of actions affecting its trading, and may revoke the designation at any time; the rule filing was submitted on December 10, 2025 and the Exchange expects functionality in the first quarter of 2026 with at least 30 days' notice before implementation.
Participants Remain Legally Responsible
The rule says that using the Exchange's risk settings does not automatically make a PSX Participant compliant with Exchange or federal rules, including Rule 15c3-5. PSX Participants remain responsible for meeting all Exchange and federal obligations even if they authorize a clearing member to set risk levels.
Rule Aimed to Improve Market Stability
The Exchange states that permitting clearing members to manage risk settings may help PSX Participants and clearing members manage financial exposure, which could enhance the integrity of trading and help ensure the stability of the financial system. The Exchange included this rationale in its December 10, 2025 filing and expects to implement the feature in the first quarter of 2026.
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