Nasdaq ISE clarifies when short-term Monday and Wednesday options cannot be listed after earnings announcements
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This rule change codifies Nasdaq ISE’s current practice for short-term options on certain stocks and ETF shares. If an earnings announcement is scheduled after the market close, the exchange will not list a Monday or Wednesday daily expiration for that security. If the option is already listed and earnings are announced later, ISE will remove it if there is no open interest or mark it closing-only if there is open interest. For brokers, market makers, and options traders, the main impact is clearer advance notice and less chance of opening new positions around after-hours earnings news. The filing also makes minor housekeeping edits, including renumbering rule sections and updating a reference to Cboe’s name.
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Key Changes
- ISE will not list Monday or Wednesday short-term daily expirations for qualifying stocks when an earnings announcement will happen after market close.
- If an earnings announcement is made after listing, ISE will delist the expiration if there is no open interest or mark it closing-only if there is open interest.
- The filing also makes technical cleanups, including renumbering rule sections and updating the Cboe name in margin rules.
Obligations
What this law requires
Nasdaq ISE must not list a Monday or Wednesday Short Term Option Daily Expiration for a Qualifying Security on a day when an Earnings Announcement will occur after market close.
If a Monday or Wednesday Short Term Option Daily Expiration has already been listed and an Earnings Announcement is later announced after the listing becomes available for trading, Nasdaq ISE must delist the affected expiration when there is no open interest.
If a Monday or Wednesday Short Term Option Daily Expiration has already been listed and an Earnings Announcement is later announced after the listing becomes available for trading, Nasdaq ISE must designate the affected expiration as closing only when there is open interest.
For purposes of the Short Term Option Series Program, Nasdaq ISE must treat 'Earnings Announcement' as including official public quarterly or yearly earnings filed with the SEC.
Members trading these Qualifying Securities must rely on the Exchange’s published listing status and, if an affected expiration is designated closing only, must not open new positions in that expiration.