2025-18380NoticeWallet

SEC Approves IEX Rules for New Options Trading Platform Launch

Published Date: 9/23/2025

Notice

Summary

The SEC just gave a thumbs-up to IEX’s new rules for trading options on their fresh platform, IEX Options. This means investors can soon trade options with clear, official guidelines on this new exchange, aiming for a smooth and fair experience. Expect these changes to roll out soon, opening up new opportunities without extra costs for traders.

Analyzed Economic Effects

6 provisions identified: 4 benefits, 1 costs, 1 mixed.

350 Microsecond Access Delay and ORP

IEX Options will use a hardware access delay of 350 microseconds on incoming order and quote messages and will offer an optional Options Risk Parameter (ORP) that can cancel or reprice elected quotes. Amendment No. 3 establishes an initial Quote Instability Threshold of 0.1% and an initial Delta Bound Band of 0-1, and the ORP will not generate a quote instability determination more often than every 200 microseconds on the same side.

Member Qualifications and Net Capital Rules

To transact on IEX Options, Options Members (and Sponsors) must meet enumerated qualifications including FINRA membership or membership in another registered options exchange, maintain at least one registered Options Principal, and Market Makers must meet minimum net capital: $200,000 for Registered Market Makers and $1,000,000 for Specialists.

Pro-Rata Allocation and Priority Entitlements

IEX Options will allocate contracts on a pro-rata basis after price priority, and will support priority overlays: Priority Customer interest will have priority over all non-Priority Customer interest at the same price; Specialists or Directed Market Makers can receive participation entitlements (e.g., 60% allocation if one other non-Priority Customer is at the NBBO, 40% if two or more).

SEC Approves New IEX Options Exchange

The SEC approved IEX's proposed rules for a new options facility called IEX Options on September 18, 2025. That means IEX Options will be an approved place where investors and trading firms can list and trade options under the Exchange's rules.

IEX Options Trading Hours Set

IEX Options will accept orders and quotes beginning at 8:00 a.m. Eastern time until 4:00 p.m. Eastern, except that options on Fund Shares and options on exchange-traded notes (including Index-Linked Securities) may close as of 4:15 p.m. Eastern.

Tick Sizes and Penny Program Specs

IEX Options will use standard option quoting increments: if a series trades below $3.00, the increment is $0.05; at $3.00 or higher, $0.10; and under the Penny Interval Program the minimum increment is $0.01 for certain series (and one cent minimum trading increment will apply for all series).

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Key Dates

Effective Date
Published Date
9/18/2025
9/23/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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