The Securities and Exchange Commission has approved a new rule change proposed by Cboe Exchange, Inc. to broaden the types of complex orders available for trading Flexible Exchange Options (FLEX). Previously, investors could only trade FLEX Options in separate orders if they included both FLEX and non-FLEX securities. The updated rule allows for a new type of complex order, called "FLEX v. Non-FLEX Order," which combines FLEX and non-FLEX components within the same order. This approval is designed to streamline trading by reducing price and legging risks, thereby offering more flexibility and efficiency in managing investment strategies.
Simple Explanation
The rules have changed to make it easier for people trading certain types of special stock options, called FLEX options, to do so in a way that combines both special and regular parts in one order. This change helps save time and money and lets them trade more safely.