The Investors Exchange LLC (IEX) has proposed a new rule to create an options trading facility called "IEX Options." This facility will be a fully automated system designed to trade options contracts, similar to other options exchanges. The plan includes implementing guidelines to protect Market Makers from risks, like the execution of outdated quotes, and to ensure fair trading practices. IEX will also adopt certain rules from other exchanges to maintain fairness and efficiency in the options market. The Securities and Exchange Commission is inviting public feedback on this proposal.
Simple Explanation
Imagine IEX is like a new playground for trading money things called "options." They want to make sure everyone plays fair, so they are making new rules like other playgrounds have. But, some people worry it might be tricky to understand how everything works because there are so many rules borrowed from other places.