NYSE AMERICAN OPTIONS: CASH-SETTLED FLEX ETF OPTIONS AVAILABLE AUGUST 2023

ETJ

ETJ

07/06/2023, 16:09:22 EDT
NYSE AMERICAN OPTIONS: CASH-SETTLED FLEX ETF OPTIONS AVAILABLE AUGUST 2023
Summary


Beginning on August 1, 2023, pursuant to NYSE American Options Rule 903G(c)(3)(ii), the following symbols will be eligible to have cash settlement as a flexible term.



Symbol

Name

AGG

iShares Core U.S. Aggregate Bond ETF

ARKK

ARK Innovation ETF

BIL

SPDR Bloomberg 1-3 Month T-Bill ETF

EEM

iShares MSCI Emerging Markets ETF

EFA

iShares MSCI EAFE ETF

EMB

iShares J.P. Morgan USD Emerging Markets Bond ETF

EWZ

iShares MSCI Brazil ETF

FXI

iShares China Large-Cap ETF

GDX

VanEck Gold Miners ETF

GLD

SPDR Gold Shares

HYG

iShares iBoxx $ High Yield Corporate Bond ETF

IEF

iShares 7-10 Year Treasury Bond ETF

IEFA

iShares Core MSCI EAFE ETF

IEMG

iShares Core MSCI Emerging Markets ETF

IWM

iShares Russell 2000 ETF

IYR

iShares U.S. Real Estate ETF

JNK

SPDR Bloomberg High Yield Bond ETF

KRE

SPDR S&P Regional Banking ETF

KWEB

KraneShares CSI China Internet ETF

LQD

iShares iBoxx $ Investment Grade Corporate Bond ETF

QQQ

Invesco QQQ Trust

SMH

VanEck Semiconductor ETF

SOXL

Direxion Daily Semiconductor Bull 3x Shares

SOXS

Direxion Daily Semiconductor Bear 3x Shares

SPXL

Direxion Daily S&P 500 Bull 3X Shares

SPY

SPDR S&P 500 ETF Trust

SQQQ

ProShares UltraPro Short QQQ

TLT

iShares 20+ Year Treasury Bond ETF

TQQQ

ProShares UltraPro QQQ

XBI

SPDR S&P Biotech ETF

XLE

Energy Select Sector SPDR Fund

XLF

Financial Select Sector SPDR Fund

XLI

Industrial Select Sector SPDR Fund

XLK

Technology Select Sector SPDR Fund

XLP

Consumer Staples Select Sector SPDR Fund

XLU

Utilities Select Sector SPDR Fund

XLV

Health Care Select Sector SPDR Fund

XLY

Consumer Discretionary Select Sector SPDR Fund

XOP

SPDR S&P Oil & Gas Exploration & Production ETF





Additional Details


The Exchange will conduct a bi-annual review on January 1 and July 1 of each year to determine eligibility based upon the trading volumes of underlying ETFs for the first half and second half of each calendar year. To qualify, the underlying security must have an average daily notional value of $500 million or more and a national average daily volume of at least 4,680,000 shares (measured over the prior 6-month period). If more than 50 ETFs satisfy the notional value and trading volume requirements, the Exchange will select the top 50 ETFs that have the highest average daily volume.



If an underlying ETF ceases to satisfy the criteria, any new position overlying such ETF will only settle by physical delivery, and any open cash-settled FLEX ETF Option positions may be traded only to close the position.



Pursuant to Rule 906G(b)(ii), positions in such cash-settled FLEX Equity Options will be aggregated with positions in physically-settled options on the same underlying ETF for the purpose of calculating the position limits set forth in Rule 904, and the exercise limits set forth in Rule 905.



Pursuant to Commentary .01 to Rule 903G, settlement style (cash/physical) is not considered when determining whether a FLEX Option is permitted based upon Non-FLEX Options already being available for trading on the same underlying security. The following FLEX Options symbology will apply:



·3 = American exercise, cash settlement; and

·4 = European exercise, cash settlement.
 
ETJ said:
07/06/2023, 16:09:22 EDT
NYSE AMERICAN OPTIONS: CASH-SETTLED FLEX ETF OPTIONS AVAILABLE AUGUST 2023
Summary


Beginning on August 1, 2023, pursuant to NYSE American Options Rule 903G(c)(3)(ii), the following symbols will be eligible to have cash settlement as a flexible term.



Symbol

Name

AGG

iShares Core U.S. Aggregate Bond ETF

ARKK

ARK Innovation ETF

BIL

SPDR Bloomberg 1-3 Month T-Bill ETF

EEM

iShares MSCI Emerging Markets ETF

EFA

iShares MSCI EAFE ETF

EMB

iShares J.P. Morgan USD Emerging Markets Bond ETF

EWZ

iShares MSCI Brazil ETF

FXI

iShares China Large-Cap ETF

GDX

VanEck Gold Miners ETF

GLD

SPDR Gold Shares

HYG

iShares iBoxx $ High Yield Corporate Bond ETF

IEF

iShares 7-10 Year Treasury Bond ETF

IEFA

iShares Core MSCI EAFE ETF

IEMG

iShares Core MSCI Emerging Markets ETF

IWM

iShares Russell 2000 ETF

IYR

iShares U.S. Real Estate ETF

JNK

SPDR Bloomberg High Yield Bond ETF

KRE

SPDR S&P Regional Banking ETF

KWEB

KraneShares CSI China Internet ETF

LQD

iShares iBoxx $ Investment Grade Corporate Bond ETF

QQQ

Invesco QQQ Trust

SMH

VanEck Semiconductor ETF

SOXL

Direxion Daily Semiconductor Bull 3x Shares

SOXS

Direxion Daily Semiconductor Bear 3x Shares

SPXL

Direxion Daily S&P 500 Bull 3X Shares

SPY

SPDR S&P 500 ETF Trust

SQQQ

ProShares UltraPro Short QQQ

TLT

iShares 20+ Year Treasury Bond ETF

TQQQ

ProShares UltraPro QQQ

XBI

SPDR S&P Biotech ETF

XLE

Energy Select Sector SPDR Fund

XLF

Financial Select Sector SPDR Fund

XLI

Industrial Select Sector SPDR Fund

XLK

Technology Select Sector SPDR Fund

XLP

Consumer Staples Select Sector SPDR Fund

XLU

Utilities Select Sector SPDR Fund

XLV

Health Care Select Sector SPDR Fund

XLY

Consumer Discretionary Select Sector SPDR Fund

XOP

SPDR S&P Oil & Gas Exploration & Production ETF





Additional Details


The Exchange will conduct a bi-annual review on January 1 and July 1 of each year to determine eligibility based upon the trading volumes of underlying ETFs for the first half and second half of each calendar year. To qualify, the underlying security must have an average daily notional value of $500 million or more and a national average daily volume of at least 4,680,000 shares (measured over the prior 6-month period). If more than 50 ETFs satisfy the notional value and trading volume requirements, the Exchange will select the top 50 ETFs that have the highest average daily volume.



If an underlying ETF ceases to satisfy the criteria, any new position overlying such ETF will only settle by physical delivery, and any open cash-settled FLEX ETF Option positions may be traded only to close the position.



Pursuant to Rule 906G(b)(ii), positions in such cash-settled FLEX Equity Options will be aggregated with positions in physically-settled options on the same underlying ETF for the purpose of calculating the position limits set forth in Rule 904, and the exercise limits set forth in Rule 905.



Pursuant to Commentary .01 to Rule 903G, settlement style (cash/physical) is not considered when determining whether a FLEX Option is permitted based upon Non-FLEX Options already being available for trading on the same underlying security. The following FLEX Options symbology will apply:



·3 = American exercise, cash settlement; and

·4 = European exercise, cash settlement.
More...

Nice!! But one question though: For SPY that's actually dividend-paying, how would the cash-settlement work? Would they still be able to calculate how much dividend is to be paid out according to how many shares you would get even though the p&l is cash-settled? Or would you be able to choose between cash settlement and physical settlement?
 
TheDawn said:
Nice!! But one question though: For SPY that's actually dividend-paying, how would the cash-settlement work? Would they still be able to calculate how much dividend is to be paid out according to how many shares you would get even though the p&l is cash-settled? Or would you be able to choose between cash settlement and physical settlement?
More...
Already priced into the options.
 
mervyn said:
I am shock, new gamble table just open, welcome to indian tribe.
More...

That's a stereotype. And the correct term is not Indian; it's Native Americans. And it's not new "gamble table". It's just proving more options (no pun intended) for settlement of financial instruments making them more versatile.
 
You must log in or register to reply here.
Back
Top