Nasdaq Texas Smooths Out Options Trading Rules—Efficiently Boring
Published Date: 7/31/2026
Notice
Summary
Nasdaq Texas is updating a bunch of its options trading rules to make things clearer and smoother for traders and market makers. These changes affect how orders are handled, market maker duties, risk protections, and error fixes, with no big cost changes announced. The new rules kicked in right after filing on July 14, 2026, so traders should get ready to roll with the updates now!
Analyzed Economic Effects
10 provisions identified: 5 benefits, 4 costs, 1 mixed.
New Reserve Order type added
The Exchange is adding a new Reserve Order that has a displayed portion and a non-displayed portion. Both portions can be available for execution; when the displayed part is reduced it can be refreshed from the non-displayed portion and the refreshed displayed portion gets a new time stamp.
Market Makers barred from Reserve Orders
Market Makers will not be permitted to enter Reserve Orders (the new order type with displayed and non-displayed portions). The Exchange says Market Makers should not use non-displayed liquidity for their quoting obligations.
Displayed interest gets allocation priority
The Exchange clarifies that allocation at each price level will allocate displayed interest before non-displayed interest. If displayed size is exhausted, remaining contracts are allocated proportionally to non-displayed interest.
Reserve Orders count in Opening Price
The Exchange states that both displayed and non-displayed portions of Reserve Orders will be considered when determining the Potential Opening Price and during the Opening Process, and Reserve Orders may route up to their full volume in that process.
Stop and Stop Limit Orders allowed
The Exchange is adding Stop Orders and Stop Limit Orders. A Stop Order becomes a Market Order when its stop price is elected and a Stop Limit becomes a Limit Order when elected. Stop and Stop Limit Orders may only be entered via FIX.
Stop Orders during trading halts
If a Stop Order would be elected during a trading halt, the Stop Order would be elected (become a Market Order) but, because Market Orders are rejected during a halt, the Stop Order would be cancelled back and Participants will be notified of the reason.
Good‑Till‑Date time‑in‑force added
The Exchange is adding a Good-Till-Date (GTD) time-in-force that lets you enter an order that will be cancelled at the earlier of the assigned expiration date or when the option series expires. GTD orders will be available via FIX.
Add Liquidity Orders limited to Day TIF
Add Liquidity Orders (ALOs) may only be entered with a Time‑in‑Force of Day and cannot be submitted with Good‑Till‑Date (GTD), Good‑Till‑Canceled (GTC), or Opening‑Only (OPG) TIFs. The rule text states ALOs may only have a Day designation.
Minimum Quantity Orders removed
The Exchange will no longer offer Minimum Quantity Orders, an order type that required a specified minimum quantity or else the order would cancel. The filing says this type is not used frequently and will be discontinued.
Post‑trade allocation messages via FIX
The Exchange will offer post-trade allocation messages over FIX so participants can specify how a filled order should be split among accounts after the trade. This matches functionality already available on other Nasdaq options exchanges.
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Key Dates
Department and Agencies
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