MEMX LLC, a self-regulatory organization, has proposed a change to Rule 21.7 concerning its opening procedures for options trading. The change involves opening options for trading after both the first transaction in the securities underlying the options and the applicable Limit Up-Limit Down price bands are observed after 9:30 a.m. Eastern Time. The Securities and Exchange Commission (SEC) has allowed this rule change to become effective immediately without the usual 30-day waiting period as it aligns the options opening with the underlying security's market open. The SEC is inviting public comments on this proposal until March 3, 2025.
Simple Explanation
Imagine there's a big playground where both kids and their parents can come to play different games like tic-tac-toe or hopscotch. The playground has a new rule that says the kids can't start playing tic-tac-toe until the grown-ups finish their first game and set up rules for staying in their own lanes. This new rule starts working right away, and the playground wants to hear what everyone thinks about it.