Stock Exchange Tinkers with Option Opening Rules—Snore Fest Alert
Published Date: 7/24/2025
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 July 9, 2025, so traders should see quicker order handling without extra costs.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Faster automatic openings for exclusive options
If you trade exclusively listed index options on Cboe EDGX, the exchange can now automatically force a series to open after an Exchange-determined time period (the filing uses a 3-minute example) even if the Exchange's Composite Market is wide or absent, so long as no non-M Capacity orders are crossed. This change took effect upon filing on July 9, 2025 and is intended to let you trade, hedge, or exit positions sooner than before.
Forced opens may occur without an opening trade
Under the new rule, when the System forces open an exclusively listed option series after the Exchange-determined time, the opening auction price determination and an opening trade do not occur; instead the System opens the series without a trade so the series becomes available for trading even if there were wide or no on-book quotes.
Option traders can cancel orders at forced open
If a series is forced open, you may instruct the System to cancel your market orders or all of your orders in the Queuing Book; if you do not cancel, marketable orders will execute subject to the exchange's priority rules and non-marketable orders will be entered into the book or canceled per your instructions.
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