# 2026-07818: Cboe Flexes ETF Options Rules for Easier Trading

2026-07818, Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend Rule 4.21 (Series of FLEX Options), is a Federal Register notice from Securities and Exchange Commission published 2026-04-22; PRIA reads it as touching household money (as of 2026-06-08).

- Canonical: https://policyrisk.com/federal-register/2026-07818
- As of: 2026-06-08
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2026-07818
- Title: Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend Rule 4.21 (Series of FLEX Options)
- Type: Notice
- Agencies: Securities and Exchange Commission
- Citation: 91 FR 21557
- Published: 2026-04-22
- Effective: unknown
- Comments close: not stated
- Significant: no
- Touches household money: yes
- Regulation identifier numbers: none
- Last updated: 2026-06-08

## In one line

Cboe Flexes ETF Options Rules for Easier Trading

## Summary

Cboe Exchange wants to update its rules for FLEX options on ETFs, making it easier for new ETFs to qualify for cash settlement based on recent trading activity. They’ll also set clear rules for what happens if an ETF stops meeting requirements during reviews and remove the current 50-ETF limit for cash-settled FLEX options. These changes could open up more trading opportunities soon, with no immediate cost impact for traders.

## Effects PRIA read

- One‑Month Lookback Lets New ETFs Qualify: benefit, medium. If an ETF newly becomes FLEX-eligible, the Exchange may now make it eligible for cash-settled FLEX options based on trading statistics from the previous one-month period. The ETF still must meet the existing thresholds of $500,000,000 average daily notional value and at least 4,680,000 shares avera…
- Tiered Wind‑Down Protects Existing Positions: benefit, medium. If an ETF fails to meet the eligibility tests at a bi-annual review, treatment now depends on recent open interest: if there was no open interest in the prior six months, new positions must be physically settled and existing cash-settled positions can only be closed. If there was open interest in t…
- Removal of 50‑ETF Cap Expands Availability: benefit, medium. The Exchange proposes to remove the rule that limited cash settlement as a contract term to at most 50 ETFs, allowing any ETF that meets the eligibility criteria to be eligible for cash-settled FLEX options. The filing notes that as of February 1, 2026, 60 ETFs already met the criteria.

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## Sources
- [2026-07818 on federalregister.gov](https://www.federalregister.gov/documents/2026/04/22/2026-07818/self-regulatory-organizations-cboe-exchange-inc-notice-of-filing-of-a-proposed-rule-change-to-amend)
- [2026-07818 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-04-22/pdf/2026-07818.pdf)

## Related
- [Previous: 2026-07817, Privacy Act of 1974; System of Records](https://policyrisk.com/federal-register/2026-07817)
- [Next: 2026-07819, Sunshine Act Meeting Notice](https://policyrisk.com/federal-register/2026-07819)
- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2026-07818 (as of 2026-06-08).