Nasdaq Cracks Down on Sneaky Options Order Splits
Published Date: 12/22/2025
Notice
Summary
Nasdaq is making a new rule official that says splitting up options orders just to gain an unfair advantage isn’t allowed. This affects anyone trading options on Nasdaq, making sure trades stay fair and square. The rule kicks in right away with no extra fees, keeping the market honest and simple.
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Nasdaq bans options unbundling
If you trade options on Nasdaq, the Exchange filed a rule on December 11, 2025 (Nasdaq Options 9, Section 25) that makes it impermissible to split an order into multiple smaller orders for any purpose other than seeking the best execution of the entire order. The rule covers members, member organizations, and associated persons and is intended to stop “unbundling” or “trade shredding,” practices the filing says have been used to improperly maximize commissions, distort trade data, or circumvent maximum order size rules. The SEC invited comments through January 12, 2026.
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Previous: 2025-23520 — Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt BX Options 9, Section 25 To Codify an Options Unbundling Rule
Nasdaq BX is making a new rule official that says splitting up options orders just to game the system isn’t fair play. This affects all traders and firms using BX options, making sure everyone plays by the same honest rules. The change is effective immediately, keeping the market clean without adding extra costs or delays.
Next: 2025-23522 — Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt PHLX Options 9, Section 25 To Codify an Options Unbundling Rule
Nasdaq PHLX is making a new rule to stop traders from splitting up orders just to game the system, unless it’s to get the best deal for customers. This change affects all members and traders on the exchange and kicks in right away, keeping trading fair and square. No extra fees or delays—just cleaner, smarter trading rules starting now!