BOX Exchange files immediate rule change to expand short-term option expirations

On September 14, 2026, BOX Exchange LLC filed a proposed rule change with the Securities and Exchange Commission (Release No. 34-106487; File No. SR-BOX-2026-19). The notice of filing was published in the Federal Register on September 24, 2026 and states that the amendment is effective immediately.

The amendment revises IM-5050-6 Short Term Option Series Program interpretive material to BOX Rule 5050. It would permit the listing of up to two Tuesday and Thursday expirations for certain exchange-traded funds that meet the current criteria, and up to two Monday and Wednesday expirations for additional exchange-traded fund shares that meet a new set of criteria. The proposal also creates "Tier 1 Qualifying Securities" for securities meeting the existing criteria and "Tier 2 Qualifying Securities" for those meeting the new criteria.

Eligibility for qualifying securities is based on four quarterly criteria: (1) a market capitalization greater than 700 billion dollars for an individual stock, or assets under management greater than 50 billion dollars for an ETF share; (2) monthly options volume greater than 10 million options; (3) a position limit of at least 250,000 contracts; and (4) participation in the Penny Interval Program. The exchange will apply these thresholds each calendar quarter and post the list of qualifying securities by the close of business on the first trading day of the quarter.

The exchange will not list an expiration on a day when an earnings announcement is scheduled after market close. If a security fails to meet the criteria in a subsequent quarter, the additional Monday and Wednesday expirations will be removed beginning the second trading day of the following quarter. The proposal follows a similar Nasdaq ISE amendment approved by the Commission on August 12, 2026 (Release No. 106100).

The full text of the proposed rule change is available at https://rules.boxexchange.com/rulefilings, and comments may be submitted in accordance with the Commission's standard procedures.