NYSE American filed a proposal with the SEC to add a pre-market and a brief post-close trading window for a select group of highly liquid equity options. The plan mirrors a similar framework Cboe already won approval for, though that rollout has been delayed by clearing-system readiness. As of late August, the NYSE American proposal remains pending SEC approval.
NYSE American, the options arm of Intercontinental Exchange, filed a proposed rule change with the SEC on June 5 to extend trading hours for a curated set of highly liquid equity options. The filing would add both an early-morning session and a brief post-close window to the standard trading day.
Two new windows, a narrow list of eligible options
The proposal creates an Early Trading Session running from 7:30 a.m. to 9:25 a.m. ET, two hours ahead of the regular open, plus a Late Trading Session from 4:00 p.m. to 4:15 p.m. ET. Not every option would qualify. NYSE American is limiting eligibility to roughly 100 of the most heavily traded, multi-listed equity options classes, each needing an average daily volume of at least 150,000 contracts and an underlying equity with a market capitalization of $50 billion or more. The exchange plans biannual reviews, so an option can lose extended-hours eligibility if volume or market cap falls below the threshold.
Cboe moved first, then hit a delay
NYSE American isn't the first to try this. Cboe received SEC approval on May 28 for a nearly identical structure, putting it eight days ahead of NYSE American's filing. Cboe had initially targeted a July 13 launch, but that timeline slipped because clearing support needed adjustments before the sessions could go live. The Options Clearing Corporation, which settles the entire U.S. listed options market, must be fully aligned before any exchange can turn extended sessions on.
Why the change matters for options traders
Equity markets already run pre-market and after-hours sessions, so stock prices can move before options traders get a chance to adjust hedges. An early session starting at 7:30 a.m. would give traders nearly two hours to react to overnight news, while the 15-minute post-close window lets them respond to earnings releases that land right at 4:00 p.m. Thinner liquidity outside core hours can still widen bid-ask spreads even among the most actively traded names, which is the reason behind the 150,000-contract volume threshold. Until the OCC confirms full operational support, SEC approval alone won't be enough to start trading.
Source: Crypto Briefing
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