Nasdaq Tweaks 'Legging Orders': Wall Street's Weirdest Trading Term Gets Update
Published Date: 12/5/2025
Notice
Summary
Nasdaq PHLX is updating its Legging Order rules to match similar options trading features on other Nasdaq exchanges. This change helps traders use legging orders more smoothly and starts right away with no extra fees. If you trade options on Nasdaq PHLX, expect a better, more consistent experience from December 2025 onward.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Legging Orders Blocked by Higher Priority
Nasdaq PHLX changed Options 3, Section 7(k)(2)(iv) so the system will not generate a Legging Order if there is already a Legging Order in that options series at the same price and same side created by a Complex Options Order with higher priority (for example, a Customer over a Non-Customer). This amendment makes the rule text consistent with Phlx's Customer-priority allocation method.
Rule Change Effective Immediately
The Exchange filed the proposed rule change on November 19, 2025, and the SEC waived the normal 30-day operative delay, designating the proposal operative upon filing. The Exchange will implement this amended Legging Order rule at the same time it implements the related Complex Order Filing (SR-Phlx-2025-17).
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