Nasdaq PHLX Files A.M.-Settled NDX Weekly and Month-End Options

Nasdaq PHLX filed an immediately effective rule change, published by the SEC on June 18, to permit A.M.-settled options on the Nasdaq-100 Index that expire on weekdays and at month-end. The filing covers Monday, Tuesday, Wednesday, Thursday and Friday expirations, excluding standard third-Friday monthly expirations and days that coincide with end-of-month expirations.

The exchange said the new A.M.-settled weekly and end-of-month NDX expirations would sit alongside its existing standard A.M.-settled NDX options and P.M.-settled weekly, monthly and quarterly expirations. The proposal follows a related Nasdaq ISE approval for A.M.-settled NDX weekly and end-of-month expirations.

Nasdaq PHLX argued that the additional expirations would give traders and hedgers more precise tools for event risk, portfolio hedging and timing needs. The exchange also represented that its own systems and OPRA have capacity for the extra series, and that existing surveillance and reporting controls are adequate for the product expansion.

Why it matters

For active index-options traders, settlement timing matters. A.M.-settled NDX options use opening values at expiration, which can behave differently from P.M.-settled contracts tied to closing prices. More A.M.-settled weekly and month-end expirations would give traders another way to manage overnight, macro and single-day event exposure in Nasdaq-100 risk.

The tradeoff is product complexity. Brokers, screeners and risk systems will need to make settlement style clear so traders do not confuse A.M. and P.M. expirations with similar dates.

What to watch next

Watch when Nasdaq PHLX lists the first series, whether other options exchanges mirror the format, and how brokers label settlement style in chains, margin systems and expiration-risk notices.