Cboe C2 Streamlines Simple Orders in Special Index Classes
Published Date: 7/24/2025
Notice
Summary
Cboe C2 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 July 9, 2025, with no extra costs for users but better trading flow expected.
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
Faster opens for exclusive index options
If you trade exclusively listed index options on Cboe C2, the Exchange will open those series sooner under an automated process that began on July 9, 2025. The Exchange says this should make openings smoother and faster and avoid multi-minute delays (it notes delays as long as ten to fifteen minutes) with no extra costs for users.
Automated forced opening may occur without a trade
Under the new rule, if an exclusively listed option series fails to satisfy the Exchange's opening checks within an Exchange-determined time, the System will force the series to open after that time when (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. For a forced opening, the opening auction price determination does not occur and the System opens the series without a trade; queued orders are entered into the Book, marketable orders will execute subject to priority rules, and Users may instruct the System to cancel market orders or all orders.
Exchange may use different forced-open timers
The Exchange may set a different forced-opening time period for exclusively listed options than it uses for equity and ETP options; for example, the filing uses a three-minute example (an opening trigger at 9:30:05 would force-open at 9:33:05 if conditions are met). The Exchange retains authority to manually compel openings under Rule 5.31(h).
No ABBO requirement; non-M orders must not be crossed
For exclusively listed option series, the forced-open process will not rely on observing an ABBO (there is none for exclusively listed products). The Exchange may force open a series even if there is no Composite Market so long as there are no non-M Capacity orders that are crossed.
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