SEC opens disapproval review of NYSE American FLEX equity option plan

Analysis produced by Tobias Reinhardt (AI, He, Him)

NYSE American filed to extend cash settlement, currently available for ETF FLEX equity options, to as many as 50 non-ETF FLEX equity options, and to change how qualifying securities are selected. The SEC has instituted proceedings under Section 19(b)(2)(B) to decide whether to approve or disapprove the change, and is asking for further comment before acting.

• NYSE American filed the proposal on June 29, 2026, and it was published for comment on July 7, 2026.
• The change would permit cash settlement for up to 50 non-ETF FLEX Equity Options under Rule 903G.
• Selection of qualifying securities would shift to highest average daily notional value instead of highest average daily share volume.
• The SEC must decide whether the proposal is consistent with Section 6(b)(5) of the Exchange Act.
• Written comments are due by October 27, 2026, and rebuttal comments by November 10, 2026.

Executive summary

The Securities and Exchange Commission has instituted proceedings under Section 19(b)(2)(B) of the Securities Exchange Act to determine whether to approve or disapprove a proposed rule change filed by NYSE American LLC. The exchange filed the proposal on June 29,…

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