Nasdaq PHLX Amends FLEX Electronic Options Listing Rules
Published Date: 8/4/2026
Notice
Summary
No summary available.
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
One‑Month Lookback Lets ETFs Gain Cash‑Settlement Sooner
If an ETF newly becomes FLEX-eligible, the Exchange can make cash settlement an option based on the prior one month of trading if the ETF meets heightened thresholds: $600 million average daily notional value and 5,616,000 shares average daily volume (ADV). This allows such ETFs to offer cash‑settled FLEX options outside the regular bi-annual cycle (Jan 1/Jul 1 reviews).
Tiered Wind‑Down Gives One‑Year Runway
If an ETF fails the bi-annual eligibility test but had no open interest in cash-settled FLEX ETF options during the prior six months, new positions must be physically settled and existing cash-settled positions may only be closed. If there was open interest during the prior six months, new cash-settled positions may still be opened for one year from the bi-annual review date; if the ETF meets eligibility at either bi-annual review during that year, full eligibility resumes.
Removes 50‑ETF Cap on Cash‑Settled FLEX Options
The Exchange will remove the rule that limited cash settlement as a contract term to no more than 50 underlying ETFs. The filing notes that as of February 1, 2026, 60 ETFs met the eligibility criteria, so eliminating the cap lets any ETF that satisfies the eligibility tests be eligible for cash-settled FLEX options.
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
2026-12163, 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!
2026-15737, Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend FLEX Options Listing Rules
Nasdaq ISE is updating its FLEX Options rules to allow certain ETFs with high trading activity to use cash settlement. This change affects traders dealing with FLEX Equity Options on ETFs and kicks in right away, aiming to make trading smoother and more flexible. No new fees are mentioned, but the new rules set clear standards for when ETFs qualify or lose this cash settlement option.
2026-15727, Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 30b1-8 and Form N-CR
The SEC is asking for comments on extending the rules that require money market funds to report big financial events quickly using Form N-CR. This affects funds that face defaults, get financial help, or see big price drops, and they must file reports within days. On average, each report takes about 10.5 hours and costs around $7,100, with only about one report expected per year.
Previous / Next Documents
Previous: 2026-15731, Yorkville America Investment Trust and Yorkville America Equities, LLC
Next: 2026-15734, Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Adopt Rule 8.23