2025-10643NoticeWallet

Cboe Updates Opening Process for Special Index Options

Published Date: 6/12/2025

Notice

Summary

Cboe BZX 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 27, 2025, with no extra costs expected for users.

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Automated Forced Open for Exclusive Options

If you trade exclusively listed index options on Cboe BZX, the exchange will automatically force a series to open after an Exchange-determined time period following the opening trigger if (a) the Composite Market is not crossed and no non-M Capacity orders cross the Composite Market midpoint, or (b) there is no Composite Market and no non-M Capacity orders are crossed. The System opens the series without performing the normal opening auction or determining an opening trade price; the Exchange may set a different timer for exclusively listed options (the filing gives a three-minute example). This rule became effective on May 27, 2025.

Order Handling and No Added Fees

Under the forced open, the System will enter users' Queuing Book orders into the Book per existing rules unless a user instructs the System to cancel market orders or all orders; marketable orders will be executed subject to priority rules and non-marketable orders will enter the Book or cancel per user instructions. The filing states the change took effect May 27, 2025 and that no extra costs are expected for users.

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Key Dates

Effective Date
Published Date
5/27/2025
6/12/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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