Cboe Speeds Up Openings for Exclusive Index Options Trading
Published Date: 7/24/2025
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 away on July 9, 2025, helping traders get better order handling without any extra costs.
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
Automated forced open for exclusive options
If you trade or hold exclusively listed index options on Cboe, the exchange will automatically force a series to open after an Exchange-determined time if (A) the Composite Market is not crossed and no non-M Capacity orders are crossed, or (B) there is no Composite Market and no non-M Capacity orders are crossed. This change lets those option series begin trading sooner (the Exchange may set a timer, for example three minutes in the filing's example) and became effective on July 9, 2025.
Forced opens occur without an opening trade
Under the new procedure, when the System forces open an exclusively listed option series after the Exchange timer, the exchange will open the series without executing an opening auction trade (i.e., the opening trade determination in Rule 5.31(e)(2) and (3) will not occur). This means the series may begin trading on Cboe even if the on-screen market is wide or there are no quotes.
You can cancel orders during forced opens
If your orders are in the Queuing Book when an exclusively listed option series is forced open, you may instruct the System to cancel your market orders or all of your orders; otherwise, the System will enter and handle your orders according to the Exchange's order handling rules (Rule 5.32). This gives you flexibility to avoid having marketable orders executed at the forced open.
Different forced-open timers allowed
Cboe may set one Exchange-determined forced-opening time period for exclusively listed options and a separate time period for equity and ETP option classes; these periods may be the same or different. The filing gives a concrete example where a three-minute timer would force open a series that did not satisfy the width check by 9:33:05 after a 9:30:05 trigger.
SPX constituents excluded on settlement dates
The proposed forced opening process does not apply to SPX constituent option series on exercise settlement value determination dates; those series will continue to open under the special opening auction process in Rule 5.31(j) on those dates.
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