The Nasdaq Stock Market LLC has proposed a change to its rules regarding the trading of options on specific Bitcoin-related funds, such as the Fidelity Wise Origin Bitcoin Fund and the Grayscale Bitcoin Trust. The proposal introduces a limit of 25,000 contracts for both position and exercise limits, aligning with similar limits set by other exchanges like Cboe and NYSE American. This rule change is designed to ensure consistent trading rules across different exchanges, promoting fair trading and investor protection. The Securities and Exchange Commission (SEC) is soliciting public comments on this proposed rule change.
Simple Explanation
The Nasdaq Stock Market is making new rules for trading options on certain Bitcoin funds, allowing up to 25,000 contracts to make trading the same and fair on different exchanges. The SEC wants to know what people think about this idea.