Cboe Gets Nod for Afternoon Dow Options Settlement
Published Date: 4/15/2026
Notice
Summary
Cboe Exchange got the green light to let traders settle options on the Dow Jones Industrial Average in the afternoon instead of the morning. This change affects anyone trading these options, making the process more flexible and aligned with market closing prices. The new rules kick in soon, helping investors better manage their trades without changing costs.
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Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
DJX Options: P.M.-Settlement & New Expirations
Cboe may list Dow Jones Industrial Average (DJX) options that are P.M.-settled and expire on Expiration Fridays, Weekly expirations (Mondays–Fridays as allowed by the Nonstandard Expirations Program), end-of-month (EOM) expirations, and Quarterly Index Expirations (QIXs). The maximum number of Weekly/EOM expirations in a class will match the existing maximum for DJX (currently six), QIXs permit up to eight near-term quarterly expirations, and newly listed Weekly/EOM expirations may expire up to four weeks from their listing date.
Last-Day Trading Cutoff at 4:00 PM
On the last trading day, transactions in expiring P.M.-settled DJX options may be effected between 9:30 a.m. and 4:00 p.m. Eastern Time (not 4:15 p.m.). The Exchange says it will stop trading at 4:00 p.m. to avoid trading after the settlement index value is calculated and to reduce investor confusion and potential pricing divergence.
Position Aggregation and Reporting Rules
P.M.-settled DJX option contracts will be aggregated with other option contracts in the same class for purposes of position and exercise limits and position reporting. The filing notes there are no position and exercise limits for DJX options, but reporting obligations (for example, FLEX position reporting above 100,000 contracts) still apply.
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