Options Fee Gets Extra Half-Year Lifeline from Cboe
Published Date: 12/22/2025
Notice
Summary
Cboe Exchange is keeping the current Options Regulatory Fee (ORF) at $0.0023 per contract side for six more months, extending it from December 31, 2025, to June 30, 2026. This means traders and firms using Cboe Options will keep paying the same fee through mid-2026. The change kicks in right after the new year, so everyone can plan ahead without surprises!
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
Exchange proposes new on-exchange ORF model
Cboe submitted a separate filing proposing a modified ORF model that would assess ORF only on transactions executed on the exchange and clearing in the customer range at OCC, with an expected effective date of July 1, 2026 (subject to adoption by all options exchanges). The Exchange says it will implement the modified model once a consistent framework is established and other exchanges adopt a similar approach.
ORF stays $0.0023 through June 30, 2026
Cboe will keep the Options Regulatory Fee (ORF) at $0.0023 per contract side starting January 2, 2026 and extending the temporary rate through June 30, 2026 (instead of reverting on December 31, 2025). This means trading firms and Trading Permit Holders (TPHs) that pay ORF will continue to pay $0.0023 per contract side through mid-2026.
ORF applies to customer-range trades across exchanges
The ORF is charged on customer-range options transactions cleared by a Trading Permit Holder (TPH) at the Options Clearing Corporation (OCC) regardless of the exchange where the trade happened, including transactions during Global Trading Hours. That means TPHs pay the fee on customer-range business even if the execution occurred off the Cboe exchange.
ORF revenue capped at 75% of regulatory costs
Cboe states it intends for revenue from ORF, combined with other regulatory fees and fines, not to exceed 75% of its total annual regulatory costs and will monitor revenues at least semi-annually. If revenues would exceed regulatory costs, the Exchange says it will reduce the ORF and will not use excess ORF revenue for nonregulatory purposes.
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