NYSE Arca Rule Change: Short Term Options Series Program Expanded to Allow Monday and Wednesday Expirations for Qualifying Securities
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NYSE Arca filed a rule change with the SEC (File No. SR-NYSEARCA-2026-34, effective immediately upon filing March 27, 2026) amending Commentary .07 to Rule 6.4-O to expand its Short Term Options Series Program. The change allows the listing of up to two Monday and two Wednesday expiration dates beyond the current week for options on a new class of 'Qualifying Securities' — highly liquid individual stocks and ETFs that meet strict eligibility criteria. To qualify, a security must meet all four criteria on a quarterly basis: (1) market capitalization above $700 billion for individual stocks, or AUM above $50 billion for ETFs; (2) monthly options volume exceeding 10 million sides traded in the last month of the prior quarter; (3) a position limit of at least 250,000 contracts; and (4) participation in the Penny Interval Program. As of June 27, 2025, only 8 individual stocks and 1 ETF (not already having Monday/Wednesday expirations) meet all criteria — representing less than 0.2% of securities with listed options. The new Monday and Wednesday expirations will be P.M.-settled, subject to the existing 30-series-per-expiration limit, and will follow the same strike price intervals already in place for SPY, QQQ, and IWM short-term options. The Exchange will not list a Qualifying Security expiration on any day when an official Earnings Announcement is scheduled after market close. Eligibility is reviewed each calendar quarter, with non-compliant securities removed from the program at the start of the following quarter (though previously listed strikes may continue trading until natural expiry). The SEC waived the standard 30-day operative delay because this rule mirrors a substantively identical filing by Nasdaq ISE (SR-ISE-2025-15) already approved by the Commission. The Commission retains authority to temporarily suspend the rule change within 60 days of filing. Public comments are due by April 23, 2026.
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Key Changes
- NYSE Arca may now list up to two Monday and two Wednesday expiration dates beyond the current week for options on Qualifying Securities, expanding the existing Short Term Option Series Program (Rule 6.4-O, Commentary .07)
- Qualifying Securities eligibility requires: market cap >$700 billion (stocks) or AUM >$50 billion (ETFs), monthly options volume >10 million sides, position limit ≥250,000 contracts, and Penny Interval Program participation — assessed quarterly
- As of June 27, 2025, only 8 individual stocks and 1 ETF qualify, representing fewer than 0.2% of securities with listed options
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Obligations
What this law requires
NYSE Arca must review eligibility of individual stocks and ETFs for Qualifying Securities status on a quarterly basis using four criteria: (1) market cap >$700B (stocks) or AUM >$50B (ETFs), (2) monthly options volume >10 million sides in prior quarter's last month, (3) position limit ≥250,000 contracts, and (4) participation in Penny Interval Program.
NYSE Arca must publish the list of Qualifying Securities by close of business on the first trading day of each calendar quarter.
NYSE Arca must remove securities from the Qualifying Securities program at the start of the following quarter if they no longer meet all four eligibility criteria, though previously listed strikes may continue trading until natural expiry.
NYSE Arca must not list Monday or Wednesday expiration dates for any Qualifying Security on days when an official Earnings Announcement is scheduled to occur after market close.
NYSE Arca must subject all new Monday and Wednesday expirations for Qualifying Securities to the existing 30-series-per-expiration limit and ensure they are P.M.-settled.