Nasdaq ISE Approves Unusual Complex Order Ratios
Published Date: 6/10/2026
Notice
Summary
Nasdaq ISE is shaking things up by letting Complex Orders trade in both usual and unusual ratios on their platform and auctions. This change affects traders using the Complex Order Book and could make trading more flexible and faster starting immediately. No extra fees or delays—just smoother, smarter trading moves!
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
Exchange Allows Non‑Conforming Ratios
The Exchange will permit Complex Orders with "non-conforming ratios": for options-only complex orders any ratio greater than three-to-one (3.00) or less than one-to-three (.333), and where a stock/convertible is a component any ratio greater than eight-to-one (8.00). The change is intended to let market participants submit and electronically execute these non-conforming Complex Orders and is planned for implementation on or before December 20, 2027.
Penny Increments for Complex Trades
Under the proposal, bids and offers for Complex Options Strategies with non-conforming ratios may be expressed and executed in one cent ($0.01) increments, and the options leg of Stock-Option or Stock-Complex Strategies with non-conforming ratios may also execute in one cent ($0.01) increments; the stock leg may be executed in any decimal price permitted in the equity market. These increment rules apply regardless of the minimum increments otherwise applicable to the individual options legs.
Priority Customer Protections Preserved
The Exchange will not permit any component of a non‑conforming ratio Complex Order to execute ahead of a Priority Customer resting at the best bid or offer (BBO) on the single‑leg order book, and no component may execute at a price that is through the national best bid or offer (NBBO). The Complex Price Improvement Mechanism (PIM) exposure period will also automatically terminate in specified scenarios (for example, upon receipt of a Priority Customer Order that would lock or cross a component of the non‑conforming order).
Certain Strategy Protections Not Available
The Exchange will not apply the Strategy Protections in Options 3, Section 16(b) (Vertical Spread, Calendar Spread, Butterfly Spread, and Box Spread Protections) to complex strategies executed with non‑conforming ratios. Other risk protections will remain available for non‑conforming ratio strategies.
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