Cboe EDGX Tweaks Rule 19.3 for Broader Options Access
Published Date: 4/17/2025
Notice
Summary
Cboe EDGX Exchange is updating Rule 19.3 to change how they decide which stocks can have options traded on them. This affects traders and investors using EDGX Options by potentially expanding or refining the list of eligible stocks. The change took effect immediately on April 10, 2025, with no new fees involved.
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
EDGX May List Options on Fidelity Ethereum Fund
EDGX amended Rule 19.3 to allow the Exchange to list and trade options on Fund Shares that represent interests in the Fidelity Ethereum Fund. This rule change took effect immediately on April 10, 2025 and expands the types of Fund Shares (including an Ethereum-backed trust) eligible for options trading on EDGX.
25,000-Contract Position and Exercise Limit
Options on the Fidelity Fund will be subject to a same-side position and exercise limit of 25,000 contracts. The Exchange states this limit is the lowest equity options limit in the industry and will apply to Fidelity Fund options.
Physical Settlement and Expiration Options
Fidelity Fund options will be physically settled with American-style exercise. EDGX will open at least one expiration month at launch and may list weekly, monthly, quarterly series and LEAPS that expire from 12 to 39 months.
Strike Intervals and Minimum Increments Set
Strike price intervals for Fidelity Fund options will be $1 or greater when the strike is $200 or less and $5 or greater when the strike is over $200. Minimum pricing increments will be $0.05 when an option's price is less than $3.00 and $0.10 when the price is $3.00 or higher, with potential participation in penny or other strike interval programs as applicable.
No New Fees; Immediate Effect
The Exchange implemented the rule change immediately on April 10, 2025, and indicated there are no new fees associated with listing Fidelity Fund options. Traders and investors will therefore see the new listed options available without additional exchange fees from this rule change.
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Cboe BZX Exchange is updating its rules to allow more types of Fund Shares to be listed and traded as options. This change affects traders and investors by expanding the kinds of securities they can trade on the Exchange. The new rule takes effect immediately, aiming to boost trading opportunities without extra costs.
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