The Securities and Exchange Commission has approved a rule change proposed by Cboe Exchange, Inc., which allows the exchange to add options on the Mini-Russell 2000 Index, known as MRUT options, to its pilot program for P.M.-settled options. These new options will be traded on a trial basis until May 3, 2021. The purpose is to evaluate the impact of P.M. settlement on market stability, utilizing enhanced data collection and analysis. The findings from this trial will aid both Cboe and the Commission in assessing the potential risks and benefits of expanding these options permanently.
Simple Explanation
The government is letting a stock market add a new type of option that lets people guess where a group of smaller company's stocks will end at the end of the day. They are trying it out for a little while to see if it makes things better or worse.