Another Exchange Updates Trading Process—Because Variety is Overrated
Published Date: 7/24/2025
Notice
Summary
Cboe BZX Exchange is changing how it starts trading 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, so traders should be ready for quicker and clearer openings that could help with better trading prices.
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Faster openings for exclusive index options
If you trade exclusively listed index options, the Exchange will force a series to open after an Exchange-determined time period if certain conditions are met (for example, the filing uses a three-minute example). This lets those options open sooner so you can trade, hedge, or exit positions instead of waiting for a delayed opening.
Forced opens may occur without an opening trade
When the Exchange forces open an exclusively listed option series, the System will open the series without an opening trade and will enter Users' Queuing Book orders into the Book per the Exchange's processing rules. You may instruct the System to cancel your market orders or all orders in the event of such a forced opening.
No ABBO requirement for exclusive listings
For exclusively listed option series, the forced-opening process will not rely on observing an ABBO (away best bid or offer) because ABBOs do not exist for products listed only on the Exchange. The Exchange will instead rely on the Exchange market and the absence of crossed non‑Market‑Maker orders to determine a forced open.
Different forced-open timers allowed
The Exchange may set a different forced-opening time period for exclusively listed options than it uses for equity and ETP options (the filing gives a three-minute example). This sets clearer expectations about how long a series may remain queued before being forced open.
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