07/06/2023, 16:09:22 EDT NYSE AMERICAN OPTIONS: CASH-SETTLED FLEX ETF OPTIONS AVAILABLE AUGUST 2023 Summary Beginning on August 1, 2023, pursuant to NYSE American Options Rule 903G(c)(3)(ii), the following symbols will be eligible to have cash settlement as a flexible term. Symbol Name AGG iShares Core U.S. Aggregate Bond ETF ARKK ARK Innovation ETF BIL SPDR Bloomberg 1-3 Month T-Bill ETF EEM iShares MSCI Emerging Markets ETF EFA iShares MSCI EAFE ETF EMB iShares J.P. Morgan USD Emerging Markets Bond ETF EWZ iShares MSCI Brazil ETF FXI iShares China Large-Cap ETF GDX VanEck Gold Miners ETF GLD SPDR Gold Shares HYG iShares iBoxx $ High Yield Corporate Bond ETF IEF iShares 7-10 Year Treasury Bond ETF IEFA iShares Core MSCI EAFE ETF IEMG iShares Core MSCI Emerging Markets ETF IWM iShares Russell 2000 ETF IYR iShares U.S. Real Estate ETF JNK SPDR Bloomberg High Yield Bond ETF KRE SPDR S&P Regional Banking ETF KWEB KraneShares CSI China Internet ETF LQD iShares iBoxx $ Investment Grade Corporate Bond ETF QQQ Invesco QQQ Trust SMH VanEck Semiconductor ETF SOXL Direxion Daily Semiconductor Bull 3x Shares SOXS Direxion Daily Semiconductor Bear 3x Shares SPXL Direxion Daily S&P 500 Bull 3X Shares SPY SPDR S&P 500 ETF Trust SQQQ ProShares UltraPro Short QQQ TLT iShares 20+ Year Treasury Bond ETF TQQQ ProShares UltraPro QQQ XBI SPDR S&P Biotech ETF XLE Energy Select Sector SPDR Fund XLF Financial Select Sector SPDR Fund XLI Industrial Select Sector SPDR Fund XLK Technology Select Sector SPDR Fund XLP Consumer Staples Select Sector SPDR Fund XLU Utilities Select Sector SPDR Fund XLV Health Care Select Sector SPDR Fund XLY Consumer Discretionary Select Sector SPDR Fund XOP SPDR S&P Oil & Gas Exploration & Production ETF Additional Details The Exchange will conduct a bi-annual review on January 1 and July 1 of each year to determine eligibility based upon the trading volumes of underlying ETFs for the first half and second half of each calendar year. To qualify, the underlying security must have an average daily notional value of $500 million or more and a national average daily volume of at least 4,680,000 shares (measured over the prior 6-month period). If more than 50 ETFs satisfy the notional value and trading volume requirements, the Exchange will select the top 50 ETFs that have the highest average daily volume. If an underlying ETF ceases to satisfy the criteria, any new position overlying such ETF will only settle by physical delivery, and any open cash-settled FLEX ETF Option positions may be traded only to close the position. Pursuant to Rule 906G(b)(ii), positions in such cash-settled FLEX Equity Options will be aggregated with positions in physically-settled options on the same underlying ETF for the purpose of calculating the position limits set forth in Rule 904, and the exercise limits set forth in Rule 905. Pursuant to Commentary .01 to Rule 903G, settlement style (cash/physical) is not considered when determining whether a FLEX Option is permitted based upon Non-FLEX Options already being available for trading on the same underlying security. The following FLEX Options symbology will apply: ·3 = American exercise, cash settlement; and ·4 = European exercise, cash settlement.
Nice!! But one question though: For SPY that's actually dividend-paying, how would the cash-settlement work? Would they still be able to calculate how much dividend is to be paid out according to how many shares you would get even though the p&l is cash-settled? Or would you be able to choose between cash settlement and physical settlement?
That's a stereotype. And the correct term is not Indian; it's Native Americans. And it's not new "gamble table". It's just proving more options (no pun intended) for settlement of financial instruments making them more versatile.