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NYSE Completes Rule Change to Remove Position and Exercise Limits for Crypto ETF Options Trading
Summary: According to The Block, NYSE Arca and NYSE American, subsidiaries of the New York Stock Exchange, have submitted a rule change to the SEC to eliminate position and exercise limits for Bitcoin and Ethereum ETF options. The U.S. Securities and Exchange Commission (SEC) waived the standard 30-day waiting period for these two filings, allowing the ...
According to The Block, NYSE Arca and NYSE American, subsidiaries of the New York Stock Exchange, have submitted a rule change to the SEC to eliminate position and exercise limits for Bitcoin and Ethereum ETF options. The U.S. Securities and Exchange Commission (SEC) waived the standard 30-day waiting period for these two filings, allowing the changes to take effect immediately after submission, signaling that major U.S. options exchanges have all completed this adjustment. The rule change covers 11 crypto ETF products, including BlackRock's IBIT, Fidelity's FBTC, ARK 21Shares ARKB, Grayscale's Bitcoin and Ethereum Trusts, and Bitwise's Bitcoin and Ethereum ETFs. These products can now have position limits determined according to each exchange's standard framework, with large liquid ETFs able to have limits of 250,000 contracts or higher.
This move will help institutional investors implement hedging strategies and basis trading more efficiently. In addition, the Nasdaq ISE exchange has submitted a proposal to increase the IBIT exclusive options position limit to 1 million contracts, which is currently under review by the U.S. SEC. Once approved, this proposal will bring IBIT's position size closer to that of the largest stock ETFs. The comment period for the relevant documents will end on April 13th.
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Link: NYSE Completes Rule Change to Remove Position and Exercise Limits for Crypto ETF Options Trading [Copy]
