IEX Options Launch: New Exchange Challenges Options Trading Status Quo
Published Date: 3/19/2025
Notice
Summary
IEX is planning to launch a new options trading platform called IEX Options and has proposed rules to govern how options will be traded there. This affects investors and traders who use IEX, with the SEC reviewing the rules and accepting public comments until April 21, 2025. If approved, this could open up fresh trading opportunities and possibly impact trading costs and strategies.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 3 costs, 1 mixed.
Market-maker net-capital minimums
IEX proposes minimum net capital requirements of $200,000 for Registered Market Makers and $1,000,000 for Specialists (see proposed Rule 23.180 and proposed Rule 23.130(c)(1)(H)). These requirements apply to Options Market Makers and Specialists registering and maintaining appointments on IEX Options.
350-microsecond execution delay
IEX proposes a fixed de minimis delay of 350 microseconds on incoming order and quote messages so IEX can update its view of the market before processing orders and quotes. The delay is set in proposed Rule 22.100(n) and would not be configurable by the Exchange.
Options Risk Parameter (ORP) changes
IEX proposes an optional Options Risk Parameter (ORP) that the Exchange will determine on a class-by-class basis to protect Market Makers from excessive risk from execution of stale quotes. The ORP can cancel or reprice quotes, revises the quote instability calculation to assess option-series value, adds a delta bound band to exclude series outside the band, and uses a quote instability threshold range of 0–1 (0%–100%).
New market-making quoting obligations
IEX proposes that Market Makers maintain continuous two-sided quoting (defined as 90% of the time) and quote in at least 60% of non-adjusted series for Registered Market Makers and at least 90% for Specialists for options with less than nine months to expiration. The proposal also limits orders a Market Maker may submit in classes where it has no appointment to no more than 25% of all contracts the Market Maker executes on the Exchange in any calendar quarter.
No index options at launch
IEX is not proposing to trade index options at this time and therefore is not proposing rules for listing and trading index options. Under the current proposal, IEX Options would list and trade individual equity options but not index options.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-18190, Transfer Agent Rules
The U.S. Securities and Exchange Commission ("SEC" or "Commission") is proposing to adopt new rules, amend existing rules, amend the existing form for registration with the Commission as a transfer agent (Form TA-1) and the existing form for reporting activities of transfer agents (Form TA-2), and rescind an existing rule governing registered transfer agents. The proposals are designed to modernize the rules governing registered transfer agents.
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651, Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
Previous / Next Documents
Previous: 2025-04514, Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Equity 4, Rules 4120, 4702 4703, and 4757
Nasdaq is rolling out a new way to send stock orders called CORE FIX (CF) that’s faster and simpler than the old method. This change helps traders who use FIX but don’t need complex routing, speeding up order processing without extra costs. The new rules take effect immediately, so market players can start using CF right away!
Next: 2025-04516, Joint Industry Plan; Notice of Filing of Amendment to the National Market System Plan Governing the Consolidated Audit Trail Regarding the Proposed Customer and Account Information System Amendment
Big stock market players are teaming up to share less customer info in their audit system to keep things safer and simpler. This change affects all the major exchanges and trading groups, aiming to cut down on extra data without messing up security. The plan is up for review now, so watch for updates and possible cost changes soon!