Nasdaq ISE, LLC has proposed a rule change to avoid trading Flexible Exchange Options (FLEX Options) on certain Bitcoin-related investment products. These include options on Bitcoin trusts like the Fidelity Wise Origin Bitcoin Fund and the Grayscale Bitcoin Trust, among others. This decision is in line with previous approvals that limit position and exercise limits to 25,000 contracts for these trusts. The change ensures that these options will not conflict with the existing rules, maintaining consistent limits across exchanges and protecting investor interests.
Simple Explanation
Imagine a big playground where only a certain number of kids can play with a special toy. Some rules were made so that everyone stays happy and safe, and one of the big playgrounds, called Nasdaq, decided not to let kids play with the toy in a new way using something like pretend Bitcoins, so everything stays nice and fair.