IEX Secures Immediate Approval for Crypto Options Trading
The Securities and Exchange Commission has made an immediate rule change that allows Investors Exchange (IEX) to list options on commodity-based trusts holding Bitcoin and other crypto assets. This change aligns with IEX's new options venue, IEX Options, which began trading on October 2. The rule change also sets position and exercise limits for options on BlackRock's iShares Bitcoin Trust ETF.
The IEX proposal adds a generic listing standard for options on trusts that hold a single crypto asset or multiple assets. Each underlying asset must have an average daily market value of at least $700 million over the prior 12 months, measured by total global supply multiplied by token price using public sources such as CoinGecko or CoinMarketCap.
IEX's position and exercise limits for IBIT options are now aligned with those on other options exchanges. The exchange has approved its crypto-trust criteria, which are substantively identical to standards already approved for ISE, MEMX, MIAX, BOX, PHLX, NYSE American, and NYSE Arca.
The SEC waived the usual 30-day operative delay due to the change raising no new legal or regulatory questions. The proposal is open for public comment for 21 days after its Federal Register publication.