Nasdaq ISE files rule change to allow non-conforming complex order ratios

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Dan Blystone

05.06.2026

Nasdaq ISE files rule change to allow non-conforming complex order ratios — Nasdaq ISE expands order rules

Nasdaq ISE is moving to expand how complex options orders can trade by permitting both non-conforming and conforming ratios on its Complex Order Book and in various auctions. The proposal, filed with the Securities and Exchange Commission on May 29, 2026, is intended to improve execution opportunities and market efficiency in options trading.

Highlights

Nasdaq ISE filed a rule change with the SEC to allow Complex Orders to trade in both non-conforming and conforming ratios.
The amendment revises Options 3, Section 14(c)(2)(i), allowing multi-leg strategies to execute at a net price without priority to in-line bids or offers.
Nasdaq ISE plans implementation by December 20, 2027, promising greater flexibility for complex options strategies and broader order types for participants.

Rule filing broadens complex order execution

As reported by the Securities and Exchange Commission, Nasdaq ISE filed a proposed rule change under Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4 to permit Complex Orders to trade in non-conforming and conforming ratios. The Commission is publishing the notice to solicit comments from interested parties, while the rule text is available through the exchange's rule filings page and at its principal office.

The proposed amendment revises Options 3, Section 14(c)(2)(i), setting out how complex strategies may be executed at a total credit or debit price with one other member without giving priority to bids or offers on the exchange that are no better than quotes in the individual options series making up that total price. For Complex Orders with a conforming ratio, the filing states that if any exchange bid or offer includes a Priority Customer Order, the price of at least one leg of the strategy must trade at a price better than the corresponding bid or offer by at least one minimum trading increment for that series.

Implementation timeline and market impact

The exchange proposes to implement the rule change on or before December 20, 2027. Nasdaq ISE also says it will issue an Options Trader Alert to all members with the exact implementation date.

If approved, the change would give market participants greater flexibility in structuring and executing multi-leg options strategies, particularly in cases where ratios do not fit standard conventions. That could widen the range of tradable complex orders on the venue and support more tailored execution in the U.S. options market.

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