FINRA Proposes Increase to Position and Exercise Limits for Conventional Options

FINRA proposed amendments to FINRA Rule 2360 ("Options") to increase the position and exercise limits on select conventional options for exchange-traded funds ("ETFs"). The amendments would double the position limits for options on (i) The Standard and Poor's Depositary Receipts Trust (SPY), and (ii) iShares MSCI EAFE ETF (EFA) and (iii) iShares China Large-Cap ETF (FXI) contracts. In the proposal, FINRA assigned a position limit of 500,000 contracts for the iShares iBoxx High Yield Corporate Bond Fund (HYG) and Financial Select Sector SPDR Fund (XLF).