[Federal Register Volume 89, Number 138 (Thursday, July 18, 2024)]
[Notices]
[Pages 58428-58432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15773]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-100524; File No. SR-CBOE-2024-031]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Reduce 
the Length of Time Between the End of Its Current Global Trading Hours 
(``Global Trading Hours'' or ``GTH'') Session and the Beginning of Its 
Regular Trading Hours (``Regular Trading Hours'' or ``RTH'') Session

July 12, 2024.`
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on July 3, 2024, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe 
Options'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the Exchange. The 
Exchange filed the proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 
19b-4(f)(6) thereunder.\4\ The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes 
to reduce the length of time between the end of its current global 
trading hours (``Global Trading Hours'' or ``GTH'') session and the 
beginning of its regular trading hours (``Regular Trading Hours'' or 
``RTH'') session. The text of the proposed rule change is provided in 
Exhibit 5.
    The text of the proposed rule change is also available on the 
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the 
Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to extend the hours of its GTH session, 
thereby reducing the length of time between the end of its current GTH 
session and the beginning of its RTH session.
    By way of background, the Exchange currently offers three trading 
sessions.\5\ RTH, Curb Trading Hours (``Curb''), and GTH. Rule 5.1 sets 
forth the trading hours for the Exchange's RTH, Curb, and GTH trading 
sessions. Particularly, RTH for transactions in equity options 
(including options on individual stocks, ETFs, ETNs, and other 
securities) are the normal business days and hours set forth in the 
rules of the primary market currently trading the securities underlying 
the options, except for options on ETFs, ETNs, Index Portfolio Shares, 
Index Portfolio Receipts, and Trust Issued Receipts the Exchange 
designates to remain open for trading beyond 4:00 p.m.\6\ but in no 
case later than 4:15 p.m.\7\ RTH for transactions in index options are 
from 9:30 a.m. to 4:15 p.m., subject to certain exceptions.\8\ The Curb 
session is from 4:15 p.m. to 5:00 p.m., for designated classes, Monday 
through Friday.\9\ The Exchange's Rules provide that the Exchange may 
designate as eligible for trading during Curb any exclusively listed 
option that the Exchange has designated for trading under Chapter 4, 
Section B. Currently, S&P 500 Index options (``SPX''), Cboe Volatility 
Index options (``VIX''), and Mini-SPX Index options (``XSP'') are 
approved for trading during Curb.\10\
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    \5\ The term ``trading session'' means the hours during which 
the Exchange is open for trading for Regular Trading Hours, Global 
Trading Hours or Curb Trading Hours (each of which may referred to 
as a trading session), each as set forth in Rule 5.1. Unless 
otherwise specified in the Rules or the context otherwise indicates, 
all Rules apply in the same manner during each trading session. See 
Rule 1.1 (Definitions).
    \6\ All times referenced herein are Eastern Time, unless 
otherwise specifically noted.
    \7\ See Rule 5.1(b)(1).
    \8\ See Rule 5.1(b)(2).
    \9\ See Rule 5.1(d).
    \10\ If the Exchange designates a class of index options as 
eligible for trading during Curb, FLEX Options with the same 
underlying index are also deemed eligible for trading during Curb. 
See Rule 5.1(d)(1).
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    The GTH session currently begins at 8:15 p.m. (previous day) and 
goes until 9:15 a.m. on Monday through Friday.\11\ The Exchange's Rules 
provide that the Exchange may designate as eligible for trading during 
GTH any exclusively listed index option designated for trading under 
Chapter 4, Section B. Currently, SPX, VIX and XSP are approved for 
trading during GTH.\12\
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    \11\ See Rule 5.1(c).
    \12\ If the Exchange designates a class of index options as 
eligible for trading during GTH, FLEX Options with the same 
underlying index are also deemed eligible for trading during GTH. 
See Rule 5.1(c)(1).
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    By way of further background, the Exchange originally adopted the 
GTH trading session due to global demand from investors to trade SPX 
and VIX options, as alternatives for hedging and other investment 
purposes, particularly as a complementary investment tool to VIX 
futures.\13\ In response to customer demand for additional options to 
trade during the GTH trading session for similar purposes, the Exchange 
later designated XSP options to be eligible for

[[Page 58429]]

trading during GTH.\14\ The current GTH session allows market 
participants to engage in trading SPX, XSP and VIX options in 
conjunction with trading VIX futures on Cboe Futures Exchange, LLC 
(``CFE'') during extended hours, as VIX futures are open for trading on 
CFE nearly 23 hours a day, 5 days a week.\15\
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    \13\ See Securities Exchange Act Release No. 34-73017 (September 
8, 2014), 79 FR 54758 (September 12, 2014) (SR-CBOE-2014-062).
    \14\ See Securities Exchange Act Release No. 34-75914 (September 
14, 2015), 80 FR 56522 (September 18, 2015) (SR-CBOE-2015-079).
    \15\ See CFE Rule 1202(b).
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    The Exchange proposes to extend the ending time of the GTH session, 
from 9:15 a.m. to 9:25 a.m. The proposed change minimizes the gap 
between the end of GTH and the beginning of RTH, thereby providing an 
extra ten-minute electronic only session for trading, which will be 
added Monday through Friday. The proposed rule change otherwise makes 
no changes to the trading rules applicable to GTH. Transactions 
effected during the extended GTH session will continue to have the same 
trade date as the RTH session that immediately follows it. The extended 
GTH trading session will continue to be a separate trading session from 
RTH and Curb and the rules that currently apply (or don't apply) to the 
current GTH session will continue to apply (or not apply) to the 
lengthened GTH session.\16\ The Exchange will continue to use the same 
servers and hardware during the extended GTH session as it uses for GTH 
(and RTH and Curb) today. Further, Trading Permit Holders (``TPHs'') 
may continue to use the same ports and connections to the Exchange for 
all trading sessions. The Book used during the extended GTH session 
will also be the same Book used currently during RTH, Curb, and GTH. 
The Exchange proposes to amend and conform various rules relating to 
the proposed expanded GTH, as described more fully below.
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    \16\ For example, business conduct rules in Chapter 8 and rules 
related to doing business with the public in Chapter 9 will continue 
to apply during the GTH session. Additionally, a broker-dealer's due 
diligence and best execution obligations apply during the GTH 
trading session. As there will still be no open outcry trading on 
the floor during the GTH trading, Chapter 5, Section G will continue 
not to apply as such rules pertain to manual order handling and 
open-outcry trading.
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Trading Days and Hours
    As noted above, Rule 5.1 currently sets forth the trading hours for 
RTH, Curb, and GTH. The Exchange proposes to amend Rule 5.1 in 
connection with its proposal to reduce the time between the end of the 
GTH session and the beginning of the RTH session. Particularly, the 
Exchange proposes to amend Rule 5.1(c), which sets forth the trading 
hours for the GTH session, to provide that except under unusual 
conditions as may be determined by the Exchange, GTH hours are from 
8:15 p.m. (previous day) to 9:25 a.m. (rather than 9:15 a.m.) on Monday 
through Friday.
    The Exchange also proposes a clarifying change to Rule 5.1(c)(2). 
Rule 5.1(c)(2) states that the Exchange may list for trading during GTH 
any series in eligible classes that it may list pursuant to Rule 4.13. 
Rule 5.1(c)(2) further provides that any series in eligible classes 
that are expected to be open for trading during RTH will be open for 
trading during GTH on that same trading day (subject to Rule 5.31). The 
Exchange now proposes to revise Rule 5.1(c)(2) to clarify language 
regarding series that may be listed during GTH. Specifically, the 
Exchange proposes revising Rule 5.1(c)(2) to state that any non-expired 
series in eligible classes that were open for trading on the previous 
trading day (as of the close of the previous day's Curb session) will 
be open for trading during GTH on that following trading day (subject 
to Rules 4.13 and 5.31). This would exclude from trading new series 
that may be listed for that following trading day's RTH session that 
were not listed on the prior trading day, which new series are unknown 
to the Exchange at the start of the GTH session.\17\
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    \17\ See Rule 1.1, which defines ``trading day'' as a day on 
which the Exchange is open for trading during Regular Trading Hours. 
A business day or trading day includes the RTH session, the Curb 
session that immediately follows it and the GTH session that 
immediately precedes it. This proposed change codifies current 
operations and will have no impact on series available for trading 
during the GTH session.
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Index Values
    The Exchange next proposes to amend Rule 5.1(c)(3) which currently 
provides that while it may not be calculated and disseminated at all 
times, between 3:00 a.m. to 9:15 a.m. during GTH, current values of VIX 
(i.e., intraday/spot values of the VIX Index) will be widely 
disseminated at least once every fifteen (15) seconds by the Options 
Price Reporting Authority (``OPRA'') or one or more major market 
vendors during that trading session. Rule 5.1(c)(3) also provides that 
the Exchange will not report a value of VIX during Global Trading Hours 
from 8:15 p.m. (previous day) to 3:00 a.m., because the value of the 
underlying index will not be recalculated during this time, and that no 
current index value underlying any other index option trading during 
GTH is disseminated during or at the close of that trading session.
    In light of the proposal to end the GTH session at 9:25 a.m. 
(instead of 9:15 a.m.), the Exchange proposes to amend Rule 5.1(c)(3) 
to state that while it may not be calculated and disseminated at all 
times, between 3:00 a.m. to 9:25 a.m. (rather than 9:15 a.m.) during 
GTH, current values of VIX will be widely disseminated at least once 
every fifteen (15) seconds by the OPRA or one or more major market 
vendors during that trading session.
Holiday Hours
    The Exchange further proposes to amend Rule 5.1(e), which sets 
forth the modified trading schedules for domestic \18\ and 
international \19\ holidays. First, the Exchange proposes to amend Rule 
5.1(e)(1), which outlines the trading hours schedule for domestic 
holidays, and currently provides that for Martin Luther King, Jr. Day, 
Presidents' Day, Memorial Day, Juneteenth National Independence Day, 
Independence Day, Labor Day, and Thanksgiving Day (i.e., domestic 
holidays), the trading day following the day a holiday is observed will 
consist of the following four trading sessions: (i) a GTH session from 
8:15 p.m. on the calendar day preceding the holiday (observed) to 11:30 
a.m. on the holiday (observed), (ii) a GTH session from 8:15 p.m. on 
the holiday (observed), or if the holiday is observed on a Friday, on 
the Sunday following the holiday, to 9:15 a.m. on the trading day, 
(iii) a RTH session on the trading day, and (iv) a Curb session on the 
trading day. The Exchange proposes to amend Rule 5.1(e)(1)(ii), in 
relevant part, to state that, if the holiday is observed on a Friday, 
the trading day following the holiday will include a GTH session from 
8:15 p.m. on the Sunday following the holiday, to 9:25 a.m. (rather 
than 9:15 a.m.) on the trading day.
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    \18\ Domestic holidays include Martin Luther King, Jr. Day, 
Presidents' Day, Memorial Day, Juneteenth National Independence Day, 
Independence Day, Labor Day and Thanksgiving Day.
    \19\ International holidays include Good Friday, Christmas Day 
and New Year's Day.
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    The Exchange next proposes to amend Rule 5.1(e)(2), which outlines 
the trading hours schedule for international holidays, and currently 
provides that for Good Friday, Christmas Day and New Year's Day (i.e., 
international holidays), the trading day following the day the holiday 
is observed will consist of the following three trading sessions: (i) a 
GTH session from 8:15 p.m. on the holiday (observed), or if the holiday 
is observed on a Friday, on the Sunday following the holiday, to 9:15 
a.m. on the trading day, (ii) a RTH session on the trading day, and 
(iii) a Curb session on the trading day. The Exchange proposes to amend 
Rule 5.1(e)(2)(i), in

[[Page 58430]]

relevant part, to state that, if the holiday is observed on a Friday, 
the trading day following the holiday will include a GTH session from 
8:15 p.m. on the Sunday following the holiday, to 9:25 a.m. (rather 
than 9:15 a.m.) on the trading day.
Opening Auction Process
    The Exchange proposes to amend Rule 5.31(j), which describes the 
opening auction process for S&P 500 options (``SPX'') that are 
constituent option series on exercise settlement value determination 
days.\20\ All provisions set forth in Rule 5.31 apply to the opening of 
SPX constituent option series \21\ for RTH on exercise settlement value 
determination days, except as otherwise provided in Rule 5.31(j) (the 
``modified opening auction process''), which the Exchange uses in 
connection with calculating exercise or final settlement values for VIX 
derivatives. The Exchange uses the opening trade prices of SPX option 
series that comprise the settlement strip \22\ (or the average of a 
series' opening bid and ask (which ask price equals $0.05 if the series 
opens with unexecuted sell market orders) if there is no opening trade 
in that series) established by the modified opening auction process to 
calculate the exercise or final settlement value, as applicable, of 
expiring VIX derivatives.
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    \20\ The term ``exercise settlement value determination day'' 
means a day on which the Exchange determines the exercise or final 
settlement value, as applicable, of expiring VIX derivatives. See 
Rule 5.31(j)(1).
    \21\ The term ``constituent option series'' means all SPX 
(including SPXW) option series listed on the Exchange with the 
expirations the Exchange uses to calculate the exercise or final 
settlement value of the expiring VIX derivative on exercise 
settlement value determination days. The term ``VIX derivatives'' 
means VIX options listed for trading on the Exchange (as determined 
under Rule 4.11), VIX futures listed for trading on an affiliated 
designated contract market, or over-the-counter derivatives 
overlying VIX whose exercise or final settlement values, as 
applicable, are calculated pursuant to, or by reference to, as 
applicable, the modified opening auction process. See Rule 
5.31(j)(1).
    \22\ The term ``settlement strip'' means the constituent option 
series used to calculate the exercise or final settlement value, as 
applicable, of expiring VIX derivatives. See Rule 5.31(j)(1).
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    Rule 5.31(j)(3) sets forth order entry cut off times for the 
modified opening auction process. Pursuant to Rule 5.31(j)(3), during 
the Queuing Period \23\ prior to 9:20 a.m., the System accepts all 
orders and quotes (except Settlement Liquidity Opening Orders, or 
SLOOs,\24\ which the System rejects), and any changes to or 
cancellations of those orders and quotes. After the 9:20 a.m. cut-off 
time (until the opening of trading in a series), the System only 
accepts SLOOs (including changes to and cancellations of SLOOs) and 
bulk message bids and offers (including changes to and cancellations of 
bulk message bids and offers submitted before and after the cut-off 
time) from Market-Makers with an SPX appointment. After that cut-off, 
the System rejects all other orders and quotes (and all other changes 
to and cancellations of orders and quotes submitted prior to the cut-
off time).
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    \23\ The term ``Queuing Period'' means the time period prior to 
the initiation of an opening rotation during which the System 
accepts orders and quotes in the Queuing Book for participation in 
the opening rotation for the applicable trading session. See Rule 
5.31(a).
    \24\ The terms ``settlement liquidity opening order'' and 
``SLOO'' mean a limit order in a constituent option series 
designated with an OPG Time-in-Force that Users may only submit to 
the Exchange on exercise settlement value determination days 
following the cut-off time described in this Rule 5.31(j)(3).
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    Given the proposal to end the GTH session at 9:25 a.m., the 
Exchange proposes to update the cut-off time set forth in Rule 
5.31(j)(3), from 9:20 a.m., to refer to one minute following the close 
of GTH, so that it continues to occur after the close of GTH (as it 
does today). There are no other changes to the modified opening auction 
process as part of the proposed changes.
Complex Orders
    The Exchange finally proposes to amend Rule 5.33. Particularly, the 
Exchange proposes to amend Rule 5.33(c), which describes the Complex 
Order Book (``COB'') Opening Process, which occurs at the beginning of 
the RTH and GTH trading sessions and after a trading halt. The System 
accepts complex orders for inclusion in the COB Opening Process at the 
times and in the manner set forth in Rules 5.7 and 5.31(b), except the 
order entry period for complex orders ends when the complex strategy 
opens. Complex orders entered during the order entry period are not 
eligible for execution until the initiation of the COB Opening Process. 
Rule 5.33(c)(1) currently states that the Exchange will disseminate 
indicative prices and order imbalance information based on complex 
orders queued in the System for the COB Opening Process beginning at 
(A) 8:00 p.m. (previous day) for All Sessions classes for the GTH 
session and (B) 8:30 a.m. for RTH Only classes and 9:15 a.m. for All 
Sessions classes for the RTH session, and updated every five seconds 
thereafter until the initiation of the COB Opening Process. This 
functionality provides users with information regarding the expected 
COB opening, which the Exchange believes may contribute additional 
transparency and price discovery to the COB Opening Process. The 
Exchange proposes to amend Rule 5.33(c)(1) to reflect that in light of 
the proposed changes, indicative prices and order imbalance information 
will be disseminated beginning at 9:25 a.m. (instead of 9:15 a.m.) for 
All Sessions classes for the RTH session.
Fees Schedule
    Finally, the Exchange proposes changes to its Fees Schedule to 
reflect the proposed change to end the GTH session at 9:25 a.m. 
Specifically, the Exchange proposes to amend references to the end of 
the GTH session in the ``GTH VIX/VIXW LMM Incentive Program'', ``GTH2 
SPX/SPXW LMM Incentive Program'', ``GTH2 XSP LMM Incentive Program'', 
and Footnote 37, to 8:25 a.m. CST (from 8:15 a.m. CST).
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\25\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \26\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \27\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \25\ 15 U.S.C. 78f(b).
    \26\ 15 U.S.C. 78f(b)(5).
    \27\ Id.
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    In particular, the Exchange believes the proposed rule change to 
reduce the time period between the end of current GTH and beginning of 
RTH will remove impediments to and perfect the mechanism of a free and 
open market and a national market system. Particularly, the expansion 
of GTH is a competitive initiative designed to improve the Exchange's 
marketplace for the benefit of investors and allow the Exchange to 
provide a competitive marketplace for market participants to trade 
certain products for a longer

[[Page 58431]]

period of time towards the end of GTH and beginning of RTH. As such, 
the Exchange believes the proposed rule change provides Users with 
additional flexibility to manage their orders in all classes that trade 
during GTH and remain in the Book towards the end of GTH market close, 
thereby removing impediments to and perfecting the mechanism of a free 
and open market and a national market system, and, in general, 
protecting investors and the public interest.
    The GTH trading session is designed to increase the overlap in time 
that SPX, VIX, and XSP options are open alongside the related futures 
contracts and further aims to provide global market participants with 
an expanded timeframe to trade the products offered during GTH. As 
discussed above, extending the GTH session is designed to provide 
investors the ability to manage risk more efficiently, react to global 
macroeconomic events as they are happening and adjust SPX, VIX and XSP 
options positions nearly around the clock, including in the time period 
towards the end of current GTH and beginning of RTH. The Exchange 
therefore believes that the proposed rule change is reasonably designed 
to provide an appropriate mechanism for additional trading time within 
its current GTH session, while providing for appropriate Exchange 
oversight pursuant to the Act, trade reporting, and surveillance.
    The Exchange also notes that it, along with some of its affiliated 
options exchanges, already allow for trading outside of the hours of 
RTH (i.e., during the current GTH trading session).\28\ Thus, the 
proposed rule change to expand the GTH session by ten minutes is not 
novel or unique. Additionally, futures exchanges also operate during 
the timeframe proposed to be added to the GTH trading session, 
including the Exchange's affiliate, CFE \29\, and the Chicago 
Mercantile Exchange, which offers E-mini S&P 500 Options for trading 
during the proposed timeframe.
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    \28\ See Cboe Options Rule 5.1, Cboe C2 Exchange, Inc. Rule 5.1 
and Cboe EDGX Exchange, Inc. Rule 21.2.
    \29\ See, e.g., CFE Rule 1202, which outlines the trading 
schedule for futures on the Cboe Volatility Index.
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    Further, the Exchange believes that maintaining a five-minute time 
period between the end of current GTH and beginning of RTH will 
continue to be an adequate and sufficient amount of time. The pause 
between GTH and RTH allows liquidity providers to assess their risk 
exposure on volatility settlement days. Following several years of 
trading within the current hours for RTH and GTH, the Exchange 
understands from industry participants that reducing the time between 
GTH and RTH, from fifteen minutes to five minutes, will still allow 
ample time for liquidity providers to continue to do so, while also 
eliminating unnecessary closure time, which may serve to benefit 
investors through additional trading opportunities closer to the 
opening of RTH. The proposed change will result in minimal impact to 
current trading systems and may in fact assist some order flow 
providers in their transition between the two trading sessions by 
reducing unnecessary pause times.
    Other than the change in the time at which the GTH session will 
end, trading during GTH will continue in the same manner as it does 
today. Additionally, the Exchange notes that it will continue to 
require that disclosures be made to customers describing potential 
risks, which will continue to further protect investors from any 
additional risks related to trading during GTH.\30\ The Exchange 
believes that, with these disclosures, GTH, as amended, remain 
appropriate and beneficial. The All Sessions order \31\ and RTH Only 
order \32\ will continue to protect investors by permitting investors 
who wish only to trade during RTH from having orders or quotes execute 
outside of the RTH session, including during the extended GTH session.
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    \30\ See Cboe Options Rule 9.20.
    \31\ An ``All Sessions'' order (including a bulk message) is an 
order a User designates as eligible to trade during all trading 
sessions. See Cboe Options Rule 5.6(c).
    \32\ An ``RTH Only'' order is an order (including a bulk 
message) a User designates as eligible to trade only during RTH or 
not designated as All Sessions or RTH and Curb. See Cboe Options 
Rule 5.6(c).
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    The Exchange believes the change to order entry cut-off time under 
the modified opening auction process is reasonable. Market participants 
will still be able to submit SLOOs until after the close of GTH and 
prior to the opening of RTH, and continue to have the opportunity to 
provide liquidity to offset order imbalances and contribute to a fair 
and orderly modified opening auction process for a given series, to the 
benefit of investors. The proposed rule change has no impact on how the 
modified opening auction process will occur.
    The proposed rule change further removes impediments to a free and 
open market and does not unfairly discriminate among market 
participants, as all TPHs with access to the Exchange may participate 
in GTH and continue to trade during GTH using the same connection 
lines, message formats, data feeds, and EFIDs they use during current 
GTH, eliminating or minimizing any preparation efforts necessary to 
continue to participate. As is today, TPHs will not be required to 
trade during GTH.
    Finally, the Exchange believes the change to Rule 5.1(c)(2) to 
clarify which series may be listed for trading during GTH is 
reasonable, as the proposed change is designed to make the Rulebook 
more accurate and mitigate any potential confusion. The Exchange 
believes revising the language will provide certainty regarding series 
listed for trading during GTH, to the benefit of investors and the 
public. This proposed change merely codifies current operations and 
will have no impact on series available for trading during the GTH 
session.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange does not 
believe that the proposed rule change to extend the closing time of the 
GTH session by ten minutes will impose any burden on intramarket 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act, because all TPHs will be able, but not be 
required, to participate during the extended GTH session, and will be 
able to do so using the same connectivity as they use during RTH, Curb 
and current GTH. As discussed, participation in the extended GTH will 
be voluntary and within the discretion of TPHs. Further, the Exchange 
does not believe the proposed rule change to Rule 5.1(c)(2) to clarify 
which series may be listed for trading during GTH will have any impact 
on competition, as the change is not expected to have an impact on 
trading, but rather clarify existing processes.
    The Exchange does not believe that the proposed rule change to 
extend GTH will impose any burden on intermarket competition that is 
not necessary or appropriate in furtherance of the purposes of the Act, 
because the proposed rule change is a competitive initiative that will 
benefit the marketplace and investors. Additionally, all options 
exchanges are free to compete in the same manner. Further, futures 
exchanges operate during the timeframe proposed to be added to the GTH 
trading session, including the Exchange's affiliate,

[[Page 58432]]

CFE,\33\ and the Chicago Mercantile Exchange, which offers E-mini S&P 
500 Options for trading during the proposed timeframe. The Exchange 
further believes that the same level of competition among options 
exchanges will continue during RTH, regardless of the proposed change. 
Because the Exchange will continue to make only exclusively listed 
products available for trading during GTH, and because any All Sessions 
orders that do not trade during GTH will be eligible to trade during 
the RTH trading sessions in the same manner as all other orders 
submitted during RTH, the proposed rule change will have no effect on 
the national best prices or trading during RTH.
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    \33\ See, e.g., CFE Rule 1202, which outlines the trading 
schedule for futures on the Cboe Volatility Index.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not:
    A. significantly affect the protection of investors or the public 
interest;
    B. impose any significant burden on competition; and
    C. become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to Section 19(b)(3)(A) of the Act \34\ and 
Rule 19b-4(f)(6) \35\ thereunder. At any time within 60 days of the 
filing of the proposed rule change, the Commission summarily may 
temporarily suspend such rule change if it appears to the Commission 
that such action is necessary or appropriate in the public interest, 
for the protection of investors, or otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission will institute proceedings to determine whether the proposed 
rule change should be approved or disapproved.
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    \34\ 15 U.S.C. 78s(b)(3)(A).
    \35\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-CBOE-2024-031 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number SR-CBOE-2024-031. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for website viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE, 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to file number SR-CBOE-2024-031 and should be 
submitted on or before August 8, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\36\
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    \36\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-15773 Filed 7-17-24; 8:45 am]
BILLING CODE 8011-01-P