2025-10444NoticeWallet

Cboe Speeds Up Openings for Exclusive Index Options Trading

Published Date: 6/10/2025

Notice

Summary

Cboe Exchange is changing how it opens simple orders for certain special index options that only trade on their platform. This update aims to make the opening process smoother and faster for traders using these exclusive options. The new rules took effect right after filing on May 22, 2025, with no extra costs expected for users.

Analyzed Economic Effects

5 provisions identified: 5 benefits, 0 costs, 0 mixed.

Automated Forced Opens for Exclusive Options

If you trade Cboe's exclusively listed index options, the Exchange can automatically force a series to open after an Exchange-determined time period following the opening rotation trigger. The Exchange may set a specific timer for exclusively listed options (the filing gives a 3-minute example) so a series will open automatically once that timer expires.

Open Without On-Screen Quotes

Cboe may open an exclusively listed option series even if there is no Composite Market (no on-screen two-sided quotes) so long as there are no non-M Capacity orders that are crossed. The Exchange says this permits floor Market Makers to fill customer orders when on-screen quotes are absent.

Series May Open Without Trade

When a forced open occurs for an exclusively listed series, the System may open the series without conducting the opening auction trade — the series can open without an opening trade and the System will enter orders from the Queuing Book into the Book. If any order is marketable at the forced open, it will execute under the priority rules in Rule 5.32, and Users may instruct the System to cancel market orders or all orders in that event.

SPX Constituent Options Carved Out

The proposed forced opening process does not apply to SPX constituent option series on exercise settlement value determination dates; those series will open under the special Rule 5.31(j) opening auction process on those dates.

Immediate Effect, No User Costs Expected

The Exchange filed the change on May 22, 2025 and the rule took immediate effect upon filing; the Exchange states no extra costs are expected for users as a result of this change.

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Key Dates

Effective Date
Published Date
5/22/2025
6/10/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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