Cboe Speeds Up Openings for Exclusive Index Options Trading
Published Date: 7/24/2025
Notice
Summary
Cboe 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 away on July 9, 2025, helping traders get better order handling without any extra costs.
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
Automated forced open for exclusive options
If you trade or hold exclusively listed index options on Cboe, the exchange will automatically force a series to open after an Exchange-determined time if (A) the Composite Market is not crossed and no non-M Capacity orders are crossed, or (B) there is no Composite Market and no non-M Capacity orders are crossed. This change lets those option series begin trading sooner (the Exchange may set a timer, for example three minutes in the filing's example) and became effective on July 9, 2025.
Forced opens occur without an opening trade
Under the new procedure, when the System forces open an exclusively listed option series after the Exchange timer, the exchange will open the series without executing an opening auction trade (i.e., the opening trade determination in Rule 5.31(e)(2) and (3) will not occur). This means the series may begin trading on Cboe even if the on-screen market is wide or there are no quotes.
You can cancel orders during forced opens
If your orders are in the Queuing Book when an exclusively listed option series is forced open, you may instruct the System to cancel your market orders or all of your orders; otherwise, the System will enter and handle your orders according to the Exchange's order handling rules (Rule 5.32). This gives you flexibility to avoid having marketable orders executed at the forced open.
Different forced-open timers allowed
Cboe may set one Exchange-determined forced-opening time period for exclusively listed options and a separate time period for equity and ETP option classes; these periods may be the same or different. The filing gives a concrete example where a three-minute timer would force open a series that did not satisfy the width check by 9:33:05 after a 9:30:05 trigger.
SPX constituents excluded on settlement dates
The proposed forced opening process does not apply to SPX constituent option series on exercise settlement value determination dates; those series will continue to open under the special opening auction process in Rule 5.31(j) on those dates.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-07651 — Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-10241 — Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the DTC Operational Arrangements (Necessary for Securities to Become and Remain Eligible for DTC Services)
The Depository Trust Company (DTC) is updating its rules to make it easier and clearer for agents handling corporate offers like tenders and subscriptions through its automated systems. This change affects companies and agents using DTC services to process these offers and starts right away with no extra costs. It’s all about smoother, faster, and more reliable processing for everyone involved!
2026-10244 — Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Fee Schedule Applicable to Members Concerning Equities Transaction Pricing
Investors Exchange (IEX) is updating its fee schedule starting June 1, 2026. Members who trade stocks will see changes in how they qualify for rebates and fee discounts based on their trading volume. These tweaks aim to make fees fairer and encourage more trading activity on the exchange.
2026-10245 — Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 3120 To Increase the Position and Exercise Limits for Options on the iShares Bitcoin Trust ETF
BOX Exchange is raising the limits on how many options traders can hold and exercise for the iShares Bitcoin Trust ETF. This change lets bigger players trade more freely and takes effect immediately, matching similar moves by other exchanges. If you trade these options, get ready for bigger opportunities starting now!
2026-10129 — The Goldman Sachs Group, Inc.
Goldman Sachs is asking the SEC for special permission to create investment funds just for its employees, letting them skip some usual rules. This change mainly affects Goldman Sachs workers and could speed up how these funds work without changing important protections. If no one objects by June 12, 2026, the SEC will approve this request.
2026-10168 — Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 17a-2
The SEC is asking to keep the rules that require underwriters to keep records about certain stock market activities for three years. About 647 companies spend around 3,235 hours and $530,000 yearly to follow these rules. This extension keeps things running smoothly without adding new costs or changes.
Previous / Next Documents
Previous: 2025-13897 — Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule Regarding Dedicated Cores
Cboe BYX Exchange is updating its fee schedule to add charges for Dedicated Cores, which are special trading systems used by some market participants. This change affects traders using these Dedicated Cores and takes effect immediately, meaning they should expect new fees starting now. The update aims to keep the fee structure clear and fair for everyone involved.
Next: 2025-13899 — Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Opening Process for Simple Orders in Exclusively Listed Index Option Classes
Cboe C2 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, with no extra costs for users but better trading flow expected.