IEX Options: SEC Ponders New Trading Playground for Wall Street
Published Date: 4/25/2025
Notice
Summary
The Investors Exchange (IEX) wants to start a new options trading platform called IEX Options. The SEC is now deciding whether to approve or reject the rules that would govern this new trading spot. This affects investors and traders who use IEX, and the decision could impact how and when they trade options, possibly changing costs or opportunities soon.
Analyzed Economic Effects
5 provisions identified: 0 benefits, 1 costs, 4 mixed.
IEX would add 350µs order delay
IEX proposes to add a hardware-based delay of 350 microseconds to every incoming order and quote message using coiled optical fiber. The Exchange says the 350 microsecond delay is meant to let IEX update its view of the market before processing orders.
Optional ORP can cancel or reprice quotes
IEX would offer an optional Options Risk Parameter (ORP) that can cancel or reprice resting quotes when its quote instability calculation indicates an imminent adverse price change. The ORP uses an Options Quote Indicator (based on Black-Scholes), real-time quoting from eleven "Signal Exchanges," and a proprietary quote instability calculation; quote instability determinations may not be generated more often than every 200 microseconds for the same side.
Priority overlays give 60% / 40% allocations
IEX proposes priority overlays that give Specialists and Directed Market Makers entitlement to 60% of contracts (if one other non-Priority Customer is at the NBBO) or 40% (if two or more) of contracts allocated at the same price when quoting at the NBBO. A Small-Size Order Entitlement would give a Specialist priority to execute against orders of five or fewer contracts under specified conditions.
Key ORP parameters set by Trading Alerts
IEX would set and periodically change three ORP-related components—the quote instability threshold, the measuring period for implied volatility (initially a half-hour), and the delta bound band—by Trading Alert rather than filing them in the rule text. Changes to the quote instability threshold and measuring period would be communicated with at least 30 days' notice; the delta bound band would be announced but the proposal did not set a fixed advance notice period for it.
Quoting time obligations for market makers
IEX would require Registered Market Makers to provide continuous two-sided quotations for 60% of the trading day and Specialists for 90% of the trading day in their appointed classes, but only for options classes with time to expiration under nine months.
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
2026-12163, 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!
2026-16781, Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of a Proposed Rule Change To Amend Sections 303A.00 and 303A.07 of the NYSE Listed Company Manual
The New York Stock Exchange (NYSE) is giving listed companies more time to set up their internal audit teams, which help keep an eye on risks and controls. This change affects all companies listed on the NYSE and aims to make the transition smoother without rushing. No new costs or deadlines are added yet, but companies should prepare for the updated timeline once it’s official.
2026-16784, Self-Regulatory Organizations; The Depository Trust Company; Order Approving Proposed Rule Change To Amend the Redemptions Service Guide and the Operational Arrangements (Necessary for Securities To Become and Remain Eligible for DTC Services)
Previous / Next Documents
Previous: 2025-07104, Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change Concerning the Collection of Intraday Margin
The Fixed Income Clearing Corporation (FICC) wants to update its rules to follow new government standards about collecting money during the day to cover risks (called intraday margin). This change affects banks and traders using FICC’s services and aims to keep the system safer without big cost surprises. The new rules could start soon after public feedback, so everyone should get ready for quicker money checks during the trading day.
Next: 2025-07106, Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To List and Trade Shares of the Canary SUI ETF Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares
The Cboe BZX Exchange wants to start trading shares of the new Canary SUI ETF, a fund based on commodities, starting soon. This change affects investors looking for fresh ways to invest in commodity-based assets and could open up new money-making opportunities. The SEC is reviewing the proposal and inviting public comments before giving the green light.