Options Market Switches to Midpoint Opening Method
Published Date: 5/28/2026
Notice
Summary
Investors Exchange (IEX) is changing how options start trading each day by switching to a simpler, faster method that uses the midpoint price to open trades. This update affects traders using IEX’s options market and aims to make opening prices clearer and more efficient, with no extra costs. The new process kicked in right after the filing on May 12, 2026, so everyone can enjoy smoother options trading now!
Analyzed Economic Effects
5 provisions identified: 2 benefits, 1 costs, 2 mixed.
Pro Rata Allocation Replaces Price-Time
At the Opening Price, IEX will match Eligible Interest and allocate contracts using a pro-rata methodology (per Rule 22.170(b)) rather than a price-time allocation. Contracts will be allocated proportionally by size at the best price and rounded down to whole contracts with any residual allocated by largest remaining size.
Options Open at NBBO Midpoint
IEX will set a single opening price for an options series equal to the midpoint of the Valid Width NBBO (rounded up if necessary). This midpoint-based Opening Price applies at the start of Regular Market Hours (9:30 a.m. to 4:00 p.m. ET) and when trading resumes after a halt.
Opening Trigger Requires Quote Plus Trade
IEX will only start its Opening Process after the Market for the Underlying Security has disseminated both a two-sided quote and a trade at or within that quote at or after 9:30 a.m. ET. The Exchange says this additional trade requirement is intended to confirm reasonably stable pricing in the underlying before opening options.
Eligible Interest Window and IOC Exclusion
Quotes, Day limit orders, and market orders may be entered and eligible to participate in the Opening Process beginning at 8:00 a.m. ET, but Immediate-or-Cancel (IOC) orders cannot participate in the Opening Process and may only be entered after the exchange transitions to continuous trading. The System will also pause no longer than one-half second after the Opening Trigger to let the market absorb the information.
Market-Maker Quote Cancellation & Manual Overrides
IEX will cancel resting Market Maker quotes during a trading halt and will authorize Market Operations personnel to manually delay, compel, or otherwise override the standard Opening Process in the interests of a fair and orderly market. The Exchange will record and periodically review deviations from the standard Opening Process.
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