In a proposed rule change, Nasdaq BX, Inc. seeks to adjust the intervals between strikes for Short Term Options Series (STOS) contracts that have expiration dates more than twenty-one days from their listing date. This change aims to create a more efficient market by reducing the number of strikes for less frequently traded options, refining them based on customer demand and the stock's price. The Securities and Exchange Commission (SEC) approved this proposal, as it aligns with regulations designed to improve market operations and protect investors. Public comments generally supported the proposal, with some suggestions for simplifying its implementation.
Simple Explanation
Nasdaq wants to make trading some short-term options easier by having fewer price choices, which helps both traders and people buying and selling stocks. The big finance boss group, called the SEC, thinks this is a good idea and says, "Okay!"