NYSE American will review which options qualify for longer trading hours after Jan. 1 and July 1 each year, giving traders a timetable for possible changes to its list of 29 option classes.
The exchange must publish an updated list through a Trader Update after each review. Options that qualify in the first review may enter extended trading from Feb. 1, though the review does not guarantee any additions.
The timetable follows NYSE American’s Oct. 19 start of extended options trading. The initial list covers options tied to 24 stocks and five exchange-traded funds. Its morning session runs from 7:30 to 9:25 a.m. ET. Eligible stock options also have an added session from 4 to 4:15 p.m. ET. The five fund option classes already traded until 4:15 p.m. ET in the regular session, so their new access is in the morning.
Options on NVIDIA and Bank of America shares are among the eligible stock classes. The fund classes include SPY, IWM and GLD. The Securities and Exchange Commission approved NYSE American’s rule change Aug. 28.
NYSE American says the longer hours give investors outside the United States and U.S. traders more time to manage positions when the underlying shares trade outside the regular session. The change addresses a gap between the hours available for trading shares and those available for options used to hedge them.
Customers also face execution risks. NYSE American warned that trading in the added sessions may be thinner, with less liquidity and wider spreads than during regular hours. Market maker participation is voluntary. Market orders are barred in the new sessions, and firms must disclose the risks before accepting customer orders.
Cboe began comparable sessions Oct. 19 for options on 24 stocks and five funds. The SEC’s approval order also notes earlier approvals for Cboe and Nasdaq MRX. NYSE American’s first eligibility review follows Jan. 1, ahead of the Feb. 1 date when newly qualifying options may be added.
