Nasdaq Tweaks Auction Rules for Smoother Trades
Published Date: 4/22/2026
Notice
Summary
Nasdaq ISE is updating how certain auction systems work to let Market Makers join in more easily when matching big option trades. This change helps speed up trades and could improve prices for investors, starting right away with no extra fees. Traders and Market Makers will feel the difference as these auctions get smoother and more flexible.
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Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Market Makers Can Be Solicited in Auctions
The Exchange will permit orders for the accounts of Market Makers assigned to an options class to be solicited as the contra-side in Facilitation Mechanisms, Solicited Order Mechanisms (SOMs), Price Improvement Mechanisms (PIMs), and the FLEX variants of those auctions. The Exchange says this change may expand available liquidity and increase execution and price-improvement opportunities, particularly for Priority Customer (retail and smaller) orders. The Exchange plans to implement the change on or before Q3 2026.
IOC Orders: Rejected, Not Routed (Clarified)
The Exchange will amend Options 5, Section 4(a) to state that Immediate-or-Cancel (IOC) orders will be rejected and will not be routed, rather than saying they will be "cancelled immediately" and not routed. The Exchange describes this as clarifying existing handling; it plans to implement the change on or before Q3 2026.
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