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SECU Securities and Exchange Commission Source document ↗
United States Securities and Exchange Commission Markets & Infrastructure ✓ 15 claims 2 hrs ago

NYSE American raises ByRDs market-cap listing bar from $40bn to $290bn

NYSE American has filed an immediately effective rule change altering how its Binary Return Derivatives (ByRDs) settle and which underlying stocks qualify for listing. The filing touches settlement methodology, listing thresholds, market maker quoting duties and order-protection checks, with implications for any firm trading or market-making these binary options products.

  • The settlement price for expiring ByRDs options will now be the underlying security's Closing Price as reported by the primary listing market, replacing the current all-day composite VWAP.
  • The minimum market capitalization requirement for individual-stock ByRDs listings rises from $40 billion to $290 billion under amended Rule 915ByRDs, Commentary .01.
  • A new initial and continued listing standard requires an average daily trading value in the primary listing market's closing auction of at least $10 million over the prior six months.
  • The exchange is eliminating its settlement-price rounding practice, so Finish High ByRDs pay $100 if the underlying closes at or above the strike price and Finish Low ByRDs pay $100 if it closes below the strike.
  • Market makers appointed to a ByRDs contract will no longer be required to enter continuous quotations unless they affirmatively choose to participate in that series.
Source document