NYSE American proposes immediate rule changes for binary return derivatives

On Oct. 21, 2026, NYSE American LLC filed with the Securities and Exchange Commission a proposed rule change identified as File No. SR-NYSEAMER-2026-96 (Release No. 34-106743). The notice, published Oct. 27, 2026, states the amendment is effective immediately upon filing.

The amendment would modify Rules 900ByRDs, 910ByRDs, 915ByRDs, 916ByRDs, 958ByRDs, 980ByRDs and 928.1NYP. The primary change replaces the current "composite price" volume-weighted-average-price (VWAP) settlement methodology with the closing price reported by the primary listing market of the underlying security. The proposal also eliminates the practice of rounding the settlement price up $.01 and redefines "Finish High" contracts to return the settlement amount when the underlying closes at or above the strike price.

For new listings of ByRDs on individual stocks, the exchange adds criteria requiring a minimum market capitalization of at least $40 billion, a minimum trading volume of at least 1 billion shares in the preceding twelve months, an average daily volume of 4 million shares, an average daily trading value of at least $200 million during the prior six months, and a market price per share of at least $10 over the previous five consecutive business days. ETFs and index-linked securities must meet the same criteria except for the market-capitalization threshold.

The filing notes that ByRDs continue to trade only during the Exchange's Core Trading Session (9:30 a.m. to 4:00 p.m.) and, for certain highly liquid exchange-traded products, may remain active until 4:15 p.m. The products are not available in extended trading hours, nor as FLEX or Complex Options.

The Commission is soliciting comments on the proposed changes. All supporting documents are available on the NYSE website and at the exchange's principal office.