Nasdaq ISE proposes $0.50 strike intervals for qualifying ETF options

On October 19, 2026, Nasdaq ISE, LLC filed a proposed rule change (Release No. 34-106780; File No. SR-ISE-2026-53) with the Securities and Exchange Commission to amend strike-price intervals for options on certain exchange-traded fund (ETF) shares. The Commission published the notice on October 30, 2026, inviting public comment.

The proposal would incorporate the current Section 5(e) provisions into Section 5(d) of Options 4, eliminating the separate "(e)" designation. Existing $1-or-greater intervals for ETFs with strike prices at $200 or less, and $5-or-greater intervals for strikes above $200, would remain unchanged. The amendment adds a new $0.50-or-greater interval for qualifying ETFs when the strike price is less than $100.

To qualify, an ETF must meet the "Qualifying Securities" criteria measured on the last day of the prior calendar quarter: assets under management greater than $50 billion (or greater than $25 billion under a secondary test), monthly options volume greater than 10 million contracts (or greater than 5 million for the $25 billion tier), a position limit of at least 250,000 contracts, and participation in the Penny Interval Program. If an ETF ceases to meet these criteria, existing $0.50-interval series may remain listed, but no new series may be added.

The filing also updates ETF names to reflect current branding, adding "Trust" to the S&P 500 ETF, changing "PowerShares QQQ Trust" to "Invesco QQQ Trust," and revising the iShares Russell 2000 naming. All other strike-interval rules for short-term option series and the enumerated ETFs (SPY, IVV, QQQ, IWM, DIA, GLD) stay the same.

The SEC will consider comments submitted during the notice period before deciding whether to adopt the amendment. The notice appears in the Federal Register, volume 91, number 212, pages 69596-69601, dated November 4, 2026.