Search Results for keywords:"cash-settled options"

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Search Results: keywords:"cash-settled options"

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  • 2021-03949 — Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing of Proposed Rule Change To Permit the Listing and Trading of Options Based on 1/100th the Value of the Nasdaq-100 Index®
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    Type:Notice
    Citation:86 FR 11807
    Reading Time:about 34 minutes

    The Securities and Exchange Commission (SEC) announced that Nasdaq PHLX LLC has proposed a new rule to allow the listing and trading of options based on 1/100th of the Nasdaq-100 Index, known as Nasdaq 100 Micro Index Options (XND). These micro options are designed to offer more affordable opportunities for retail investors interested in trading options on the Nasdaq-100 Index. Similar to existing options, XND options will be European-style and cash-settled, but will require less capital, making them more accessible. The SEC is soliciting public comments on this proposed rule change before making a final decision.

    Simple Explanation

    Nasdaq wants to make a new kind of option for people to buy and sell, which is like a tiny piece of their big Nasdaq-100 list of companies, so more people can join in without needing as much money. The people in charge are asking everyone to share their thoughts on this idea before they decide if it's okay.

  • 2025-00531 — Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing of Proposed Rule Change To Permit FLEX Trading in the iShares Bitcoin Trust ETF
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    Type:Notice
    Citation:90 FR 3266
    Reading Time:about 25 minutes

    The Securities and Exchange Commission has received a proposal from Nasdaq PHLX LLC to allow FLEX Trading in options for the iShares Bitcoin Trust ETF (IBIT). This would enable these options to trade as both cash-settled and physically settled, with a consolidated limit of 25,000 contracts, which aims to prevent market manipulation and protect investors. The proposal is intended to broaden the range of available trading products and better manage investment risks in bitcoin-related products. Public comments are invited on whether this proposal aligns with the Securities Exchange Act's standards.

    Simple Explanation

    The SEC is looking at a plan from a company called Nasdaq PHLX to let people trade special options on a fund related to Bitcoin. These options would help investors make better choices and keep things fair, with some rules in place to stop any tricks and protect everyone investing.

  • 2025-02941 — Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing of Proposed Rule Change To List and Trade Nasdaq Bitcoin Index Options
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    Type:Notice
    Citation:90 FR 10545
    Reading Time:about 79 minutes

    On February 4, 2025, Nasdaq PHLX LLC filed a proposal with the Securities and Exchange Commission (SEC) to introduce Nasdaq Bitcoin Index Options, which will track the price of bitcoin using the CME CF Bitcoin Real Time Index. These options will be cash-settled and follow European-style exercise rules, allowing investors to receive U.S. dollars based on the difference between the current bitcoin spot market price and the option's exercise price. The proposal aims to offer investors a new, flexible way to manage their investments related to bitcoin, and it will be subject to existing Exchange trading rules, including surveillance measures to prevent fraudulent activities. The SEC is seeking public comments on this proposal before making a decision.

    Simple Explanation

    Nasdaq wants to create a new way for people to invest in bitcoin by letting them use special bets, called options, that pay money based on how bitcoin's price changes. They ask everyone to share their thoughts on this plan before it gets officially accepted.

  • 2025-04655 — Self-Regulatory Organizations; Nasdaq Phlx, LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Permit the Trading of FLEX Options on Shares of the iShares Bitcoin Trust ETF
    Type:Notice
    Citation:90 FR 13226
    Reading Time:about 13 minutes

    The Securities and Exchange Commission (SEC) is reviewing a proposed rule change by Nasdaq Phlx, LLC that would allow the trading of FLEX options on shares of the iShares Bitcoin Trust ETF. This rule change would enable these options to be both cash-settled and physically settled. The SEC is considering whether to approve or disapprove the proposal and has invited comments from the public until April 10, 2025. The proposal aims to enhance market flexibility and provide more risk management tools for investors, but the SEC needs more information to ensure it aligns with various legal and market integrity requirements.

    Simple Explanation

    The SEC is thinking about whether to allow special types of trading options for a Bitcoin-related fund. They want to make sure it's safe and fair for everyone, so they're asking people to share their thoughts on it.