Nasdaq ISE Unchains Box Spreads from Limits
Published Date: 2/17/2026
Notice
Summary
Nasdaq ISE is updating its options trading rules to make box spreads exempt from position limits, meaning traders can use these strategies without worrying about caps. They’re also tweaking how single-leg and complex orders are entered and displayed to keep things smooth and clear. These changes take effect immediately, helping traders trade smarter and faster on the Exchange.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Box Spreads Exempt From Position Limits
If you trade options on Nasdaq ISE, box spreads are now listed as exempt from the position limits prescribed under Options 9, Section 13(d) and Supplementary Material .01 to Options 9, Section 13. That means a Member would not have a position limit for a box spread on ISE and would not have to unwind a box spread position as a result of the rule change.
Non-Displayed Orders Execute at Internal BBO
If you place single-leg orders on Nasdaq ISE, the System will automatically execute eligible orders using the Exchange's displayed best bid and offer (BBO) or the Exchange's non-displayed order book (internal BBO) when there are non-displayed orders on the book or the best bid/offer has been re-priced. The change aligns ISE Options 3, Section 5(c) with Phlx and reflects current System operation.
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