SEC Accelerates Approval of Nasdaq ISE Rule Change for Digital Commodity Options
The order applies to Nasdaq ISE and authorizes new listing criteria for options on Commodity-Based Trust Shares holding digital commodities, effective Nov. 10 2026.
The Securities and Exchange Commission issued an order on November 10, 2026 granting accelerated approval of Nasdaq ISE, LLC's Amendment No. 2. The amendment revises Options 4, Section 3, Criteria for Underlying Securities to permit listing of options on Commodity-Based Trust Shares that hold one or more digital commodities.
The Exchange initially filed a proposed rule change on July 28, 2026, which was published for comment on August 13, 2026 and received no comments. After a September 21, 2026 designation of an extended review period, the Exchange filed Amendment No. 1 on November 3, 2026, withdrew it on November 5, 2026, and submitted Amendment No. 2 the same day. The Commission designated November 11, 2026 as the deadline for final action.
Amendment No. 2 adds several substantive provisions: a representation that the Exchange will amend its definition of "digital commodity" if legislation establishes such a term; a calculation of the 15% limitation in Options 4, Section 3(h)(3)(B) based on gross notional value of derivatives held by a Trust; an assertion that manipulation of 15% of Trust assets is unlikely to affect the Trust's net asset value or option prices; and authority for the Exchange to obtain information from Nasdaq for investigations of suspected manipulation or trading abuse. The amendment also restates continued listing requirements, surveillance procedures, trading rules, systems capacity, and corrects a grammatical error.
The change aligns ISE's options rule with the Nasdaq Rule 5711(d) amendment approved in SR-NASDAQ-2026-032, which revised the generic listing standards for Commodity-Based Trust Shares. The existing requirement that each underlying crypto asset have an average daily market value of at least $700 million over the prior 12 months remains in effect.
The order grants the rule change accelerated approval as of November 10, 2026, and the Commission will consider any comments received before the November 11, 2026 deadline.
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