Options Traders Get Official Chat Room with SEC Babysitter
Published Date: 12/1/2025
Notice
Summary
Big news for options traders! The main exchanges behind standardized options want to team up more closely to chat and solve problems together, making trading smoother and fairer. Starting soon, they’ll hold official talks with a SEC observer to improve how options are listed and traded—no extra costs for traders, just better markets.
Analyzed Economic Effects
4 provisions identified: 1 benefits, 0 costs, 3 mixed.
Sponsors Authorized Joint Discussions
On November 13, 2025, exchanges filed an amendment to add paragraph (c) to Section 6 of the Options Listing Procedures Plan that authorizes the Plan Sponsors to act jointly to discuss matters within the Plan's scope. The Sponsors may consider whether to file one or more Plan amendments or rule filings together to promote uniform procedures for multiply listed options.
Possible Reduction in Listed Option Series
The amendment explicitly allows Sponsors to discuss reducing the number of listed option series to mitigate quote message traffic and address capacity issues. Cboe's analysis cited in the filing showed a 27% increase in average series listed per day between June 2020 and June 2024 (1,107,980 to 1,406,632), while the average percentage of series that traded per day fell from 18% to 10% and the percentage with open interest fell from 53% to 47%.
Talks May Harmonize Strikes and Listings
The amendment authorizes discussions on criteria for permissible classes of options, strike prices, expirations, trading increments, listing procedures, and options adjustments. If Sponsors decide, they may jointly prepare and file Plan amendments or exchange rule filings to harmonize these standards across exchanges.
SEC Observers and Meeting Transparency
The amendment requires one or more Commission staff observers to be present at any discussions held under the new paragraph (c). It also requires an agenda be distributed at least two business days in advance and that minutes be prepared and reviewed by each Sponsor.
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