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.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651, Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-05635, Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets
Starting March 23, 2026, the SEC and CFTC are making it clear that some crypto assets and transactions must follow federal securities laws. This means crypto companies and investors need to play by new rules to keep things fair and safe. Expect more transparency and possible costs for compliance as the government steps up oversight in the crypto world.
Previous / Next Documents
Previous: 2026-10541, Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Chapter 8 of the Exchange's Rulebook Relating To Investigative and Disciplinary Matters
Cboe BYX Exchange just updated its rulebook to make investigations and discipline clearer and smoother for everyone involved. This change affects traders and firms on the exchange by improving how issues are handled, with no new fees or delays expected. The new rules kicked in right after filing, so the Exchange is ready to keep things fair and fast!
Next: 2026-10544, Center for Scientific Review; Notice of Closed Meetings
The Center for Scientific Review is holding several closed virtual meetings in late June 2026 to review important grant applications. These meetings protect private info and trade secrets while deciding who gets funding for cool science projects. If you’re involved in research grants, these reviews could impact your funding timeline and opportunities.