SEC Approves Nasdaq ISE Rule Change Expanding Short-Term ETF Option Expirations
The amendment applies to Nasdaq ISE's Short Term Option Series, allowing additional Tuesday, Thursday and new Monday, Wednesday expirations for qualifying ETF shares effective upon issuance on August 12, 2026
On August 12, 2026, the Securities and Exchange Commission issued Order No. SR-ISE-2026-34, approving Nasdaq ISE, LLC's proposed amendment to its Short Term Option Series Program.
The amendment authorizes the Exchange to list up to two Tuesday and Thursday expirations for options on Exchange-Traded Fund Shares that meet the existing Qualifying Securities criteria, and up to two Monday and Wednesday expirations for options on Exchange-Traded Fund Shares that satisfy newly-defined criteria.
Qualifying Securities must, on a quarterly basis, meet four standards: an underlying security with a market capitalization greater than $700 billion for an individual stock or assets under management greater than $50 billion for an ETF share, monthly options volume greater than 10 million options, a position limit of at least 250,000 contracts, and participation in the Penny Interval Program.
The Exchange will designate ETF shares that meet the current criteria as "Tier 1 Qualifying Securities" and those that meet the new criteria as "Tier 2 Qualifying Securities." Listings of qualifying securities are posted by the close of business on the first trading day of each quarter, and expirations are omitted on days with earnings announcements or when they coincide with standard monthly or quarterly expirations.
The order follows the public comment period announced on July 2, 2026, and makes the expanded expiration schedule available to market participants trading Nasdaq ISE options.