The U.S. Securities and Exchange Commission has approved a proposed rule change from Nasdaq ISE, LLC that expands the exchange’s Short Term Option Series Program by adding new expiration days for options on certain Exchange-Traded Fund Shares (ETFs), according to an official SEC announcement published in the Federal Register on August 17, 2026.
New Rule Expands Weekday ETF Options Expirations
Under the approved change, Nasdaq ISE may now list up to two Tuesday and Thursday expirations for options on ETFs that already meet the exchange’s existing “Qualifying Securities” criteria. Additionally, the rule change permits the listing of up to two Monday and Wednesday expirations for options on ETFs that satisfy a new, separate set of Qualifying Securities criteria. Previously, Monday and Wednesday short-term expirations were available only for options on certain individual stocks and ETFs meeting the existing eligibility standards.
To qualify under the existing criteria, an ETF must meet several benchmarks assessed on a quarterly basis: assets under management greater than $50 billion based on net asset value; monthly options volume exceeding 10 million options (measured by sides traded in the last month before quarter end); a position limit of at least 250,000 contracts; and participation in the Penny Interval Program. Individual stocks face a parallel market-capitalization threshold of greater than $700 billion. The exchange evaluates securities against these criteria each calendar quarter to determine eligibility for the following quarter, and publishes the list of qualifying securities by the close of business on the first trading day of each quarter.
The exchange does not list a short-term expiration on days when an earnings announcement is scheduled after market close. Securities that fall out of compliance with the Qualifying Securities criteria lose their eligibility for the new expiration listings beginning on the second day of the following quarter.
Nasdaq ISE filed the proposed rule change with the SEC on June 15, 2026, and it was published for public comment in the Federal Register on July 2, 2026. The SEC’s order approving the change is dated August 12, 2026.
What the Change Could Mean for Options Traders
The expansion affects options market participants — including retail investors, institutional traders, and financial advisors — who use short-dated ETF options for hedging, income strategies, or speculative purposes. Broader availability of mid-week expirations may increase flexibility for short-term options strategies tied to qualifying ETFs.
Readers with questions about how this rule change affects their specific accounts or strategies should consult the SEC’s official announcement or contact their broker-dealer or a qualified financial professional for guidance applicable to their situation.
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The post SEC Approves More Weekday Expirations for Options on Qualifying ETFs appeared first on The Free Financial Advisor.
