Nasdaq Phlx Allows Unusual Complex Order Ratios
Published Date: 6/11/2026
Notice
Summary
Nasdaq Phlx is shaking things up by letting Complex Orders trade with both regular and unusual ratios on their trading platform and auctions. This change affects traders using the Complex Order Book and aims to boost flexibility and trading options starting immediately. No extra fees or delays—just more ways to trade smarter and faster!
Analyzed Economic Effects
6 provisions identified: 5 benefits, 1 costs, 0 mixed.
Exchange Allows Non‑Conforming Ratios
Market participants may submit Complex Orders with "non-conforming ratios" on the Exchange's Complex Order Book and in certain auctions. A non-conforming ratio is where option components have a ratio greater than 3.00 or less than .333; if one leg is the underlying stock or convertible security, the ratio is greater than 8.00.
Penny Pricing for Complex Legs
For Complex Options Strategies with non-conforming ratios, bids and offers may be expressed in $0.01 increments and the options legs may execute in $0.01 increments regardless of minimum increments otherwise applicable. For Stock-Option and Stock-Complex Strategies with non-conforming ratios, bids/offers may be expressed in any decimal price the Exchange permits and the stock leg may execute in any decimal price permitted in the equity market, while the options leg may execute in $0.01 increments.
Public‑Customer Execution Protections
Complex Orders with non-conforming ratios will not be executed at a net price that causes any option component to trade ahead of a Public Customer order at the best bid or offer (BBO) on the single‑leg order book, nor at a price that is through the national best bid or offer (NBBO). Complex Orders with conforming ratios continue to follow the existing priority rule.
Certain Spread Protections Removed
The Strategy Protections in Options 3, Section 16(b) (Vertical Spread, Calendar Spread, Butterfly Spread, and Box Spread Protections) will not apply to complex strategies that use non‑conforming ratios.
PIXL Auction Early Termination Rules
For Complex PIXL Auctions involving non‑conforming ratios, the exposure period will automatically terminate if a Public Customer order eligible to rest on the single‑leg book would lock or cross any component of the PIXL order, or if the NBBO for any option component updates to a price that would cause that component to execute through the NBBO.
Immediate Floor Effect; Full Rollout Deadline
The Commission waived the 30‑day operative delay so that non‑conforming ratio Floor Complex Qualified Contingent Cross (QCC) Orders and Floor Complex Customer Cross Orders are operative upon filing. The Exchange will implement amendments to Options 8 on the 30th day after filing or earlier; the remainder of the amendments will be implemented on or before December 20, 2027.
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