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changes affect how stop orders, complex orders, and price protections work, plus they tweak some risk limits and remove outdated fees.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
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Previous: 2025-02825 — Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Various Options Rules
Nasdaq MRX is updating its options trading rules to make stop orders clearer, improve how certain order responses work, and add a new cancel-replace order type. These changes affect traders using Nasdaq MRX’s options platform and take effect immediately, aiming to make trading smoother and more transparent without changing fees. The SEC is open to feedback for the next 60 days.
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