SEC opens proceeding on NYSE Arca cash-settlement rule change for FLEX options
The rule, which would allow cash settlement of up to 50 non-ETF FLEX equity options, is subject to comment through Oct. 27, 2026.
On October 1, 2026 the Securities and Exchange Commission instituted proceedings under Section 19(b)(2)(B) of the Exchange Act to determine whether to approve or disapprove NYSE Arca's proposed amendment to Rules 5.32-O and 5.35-O. The Exchange filed the proposal on June 18, 2026, seeking to permit cash settlement for up to 50 non-ETF Flexible Exchange (FLEX) equity options and to replace the current selection metric with the highest average daily notional value when more than 50 securities qualify.
The proposal was published for comment in the Federal Register on July 7, 2026. On August 19, 2026 the Commission designated October 5, 2026 as the date by which it must approve, disapprove, or institute proceedings on the change. The current institution of proceedings does not indicate any substantive conclusion.
The Commission requests written comments on the proposal's consistency with Section 6(b)(5) of the Act and any other relevant provisions. Comments must reference file number SR-NYSEARCA-2026-68 and be submitted on or before October 27, 2026; rebuttal comments must be filed by November 10, 2026.
Submissions may be made electronically through the SEC's internet comment form or by email, or in paper triplicate to the SEC Secretary at 100 F Street NE, Washington, DC 20549-1090. All comments will be posted on the Commission's website, and material may be redacted as required.
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