Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing of a Proposed Rule Change To Adopt Extended Trading Hours for Eligible Equity and Index Options
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Nasdaq MRX proposes to introduce Extended Trading Hours (ETH) for specific index options (NDX, NDXP, XND) and up to 100 highly liquid equity options. ETH consists of an Early Session from 7:30 a.m. to 9:25 a.m. ET and an Extended Close from 4:00 p.m. to 4:15 p.m. ET. Equity options must meet strict eligibility criteria including average daily volume of 150,000 contracts, underlying market cap of $50 billion, and underlying average daily share volume of 10 million shares. The proposal allows trading of these options outside regular 9:30 a.m.–4:00 p.m. hours to better align with extended equity trading, with all other Exchange rules applying during ETH. This is a measured rollout to monitor market performance, with provisions for IPOs and options already traded on other exchanges.
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Key Changes
- Introduces Early ETH Session from 7:30 a.m. to 9:25 a.m. ET
- Adds Extended Close session from 4:00 p.m. to 4:15 p.m. ET
- Limits eligible equity option classes to maximum 100
+ 3 more changes with Pro
Obligations
What this law requires
Nasdaq MRX must allow trading of NDX, NDXP, and XND index options during Extended Trading Hours consisting of Early ETH Session (7:30 a.m. to 9:25 a.m. ET) and Extended Close (4:00 p.m. to 4:15 p.m. ET)
Nasdaq MRX must allow trading of eligible equity options (up to 100 highly liquid multi-listed options) during Extended Trading Hours if they meet eligibility criteria: average daily volume of 150,000 contracts, underlying market cap of $50 billion, and underlying average daily share volume of 10 million shares
All Exchange rules applicable to options during Regular Trading Hours must apply to options during Extended Trading Hours, including trading rules, listing rules, and business conduct rules, unless the context otherwise requires
Nasdaq MRX must not conduct Early ETH Session or Extended Close on days when there are no Regular Trading Hours (holidays and non-business days)
On shortened Regular Trading Hours days, Nasdaq MRX must conduct Early ETH Session prior to shortened RTH and Extended Close for 15 minutes commencing at the end of shortened RTH