2025-04164NoticeWallet

Cboe Lets Options Trade Till the Very Last Tick

Published Date: 3/17/2025

Notice

Summary

Cboe Exchange wants to let certain index options keep trading right up until their final value is set on expiration day, instead of stopping a day early. This change affects traders dealing with non-volatility A.M.-settled index options and could mean more trading chances and better price accuracy on the last day. The proposal is under review, so watch for updates that could impact your trading timing and strategies.

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Keep non‑volatility index options trading through settlement

Cboe proposes to let expiring non‑Volatility A.M.‑settled index options that trade during Global Trading Hours (GTH) keep trading until the exercise settlement value is determined on the expiration date. The Exchange would set the determination of the current index value at the opening of Regular Trading Hours (RTH) on expiration day instead of the prior business day, so trading could continue through the Thursday night/Friday morning GTH session before settlement.

Allow VIX options to trade until 9:00 a.m. ET on expiration

The Exchange proposes to allow expiring Volatility Index (VIX) A.M.‑settled options to trade until 9:00 a.m. ET on the expiration date. The rule text would be changed so that VIX options may trade through 9:00 a.m. ET on expiration day, aligning VIX options trading hours with related futures that already trade until 9:00 a.m. ET.

Change only affects options eligible for Global Trading Hours

The proposed rule change only extends trading for expiring A.M.‑settled options that are eligible to trade during Global Trading Hours (GTH); options not eligible for GTH will continue to stop trading at the end of Regular Trading Hours (RTH) or the Curb session on the preceding Thursday. The filing notes SPX and XSP as the non‑Volatility A.M.‑settled index options currently approved for trading during GTH, and VIX as the Volatility A.M.‑settled index option approved for GTH.

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Key Dates

Published Date
3/17/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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