Search Results for keywords:"cash settlement"

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Search Results: keywords:"cash settlement"

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  • 2025-06524 — Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing of Proposed Rule Change To Amend Rule 5055 To Allow for Cash Settlement of Certain FLEX Equity Options
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    Type:Notice
    Citation:90 FR 16410
    Reading Time:about 40 minutes

    The Securities and Exchange Commission (SEC) has received a proposal from BOX Exchange LLC to amend Rule 5055 to allow for cash settlement of certain customized FLEX Equity Options where the underlying security is an Exchange-Traded Fund (ETF). This amendment aims to broaden investment options and potentially shift some over-the-counter market trading onto the exchange. To ensure stability, the cash settlement will only apply to ETFs that meet specific liquidity criteria. The SEC has waived the typical 30-day waiting period for the rule to take effect, citing that similar proposals have already been approved for other exchanges.

    Simple Explanation

    Imagine a store where people buy and sell toys. Now, BOX Exchange LLC wants to make a new rule that would let people buy and sell special toy coupons using money instead of trading actual toys. This idea will only happen if the toys (called ETFs) are popular enough, like the top 50 favorite ones, to make sure everything goes smoothly.

  • 2024-29918 — Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Amend FLEX Floor Trading
    Type:Notice
    Citation:89 FR 103002
    Reading Time:about 2 minutes

    Nasdaq PHLX LLC proposed a rule change to the Securities and Exchange Commission (SEC), aiming to clarify and modify several aspects of its FLEX Options trading. These changes include clarifying certain trading functionalities, listing specific FLEX Index Options, and setting criteria for cash settlement of FLEX Options on certain Exchange-Traded Funds. The SEC, needing more time to review the proposal, extended the deadline for their decision until January 27, 2025. The proposed rule change had been available for public comment, but no comments were received.

    Simple Explanation

    Nasdaq PHLX LLC wants to change some rules about how people can trade special options called FLEX Options, but the SEC needs more time to think about these changes, so they’ve decided to make their decision next month.