Cboe EDGX Refines Simple Orders Process for Options
Published Date: 6/12/2025
Notice
Summary
Cboe EDGX 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, so traders can expect quicker and more efficient order handling now.
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Automated forced openings for exclusive index options
If you trade or hold exclusively listed index options on Cboe EDGX, the Exchange will automatically force a series to open after an Exchange-determined time period (the filing gives a three-minute example) even if there is no Composite Market, provided there are no non-M Capacity orders crossing the Composite Market midpoint. This change, effective May 27, 2025, is intended to reduce previously reported delays that could last ten to fifteen minutes so participants can trade or hedge sooner.
Series may open without an opening trade
Under the new rule, when a forced opening occurs for an exclusively listed option series, the System will open the series without conducting an opening auction trade (the series opens for trading despite a wide market or no on‑book quotes). Marketable orders present at the forced open will execute according to the Exchange's priority rules, while non‑marketable orders will enter the Book unless a User instructs cancellation.
Users can cancel orders during forced openings
If a forced or manual opening occurs for an exclusively listed option series, the Exchange permits Users to instruct the System to cancel their market orders or all of their orders; if Users do so, only the non-cancelled orders will be entered into the Book. This option is available under the new process effective May 27, 2025 and is intended to give participants control over unwanted executions at the open.
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