[Federal Register Volume 90, Number 114 (Monday, June 16, 2025)]
[Notices]
[Pages 25409-25414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-10876]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103219; File No. SR-CBOE-2025-011]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing of Amendment No. 1 and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendment No. 1, To Allow Certain
Expiring A.M.-Settled Index Options To Trade During the Global Trading
Hours Trading Session Immediately Preceding the Expiration Date
June 10, 2025.
On February 26, 2025, Cboe Exchange, Inc. (``Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to allow expiring A.M.-settled non-Volatility
index options and Volatility Index options that are eligible for Global
Trading Hours (``GTH'') to trade during the GTH trading session
immediately preceding the expiration date. As a result, expiring A.M.-
settled non-Volatility index options would trade through the end of the
GTH trading session on the expiration date and expiring A.M.-settled
Volatility Index options would trade until 9:00 a.m. ET (``Eastern
Time'') on the expiration date. The proposed rule change was published
for comment in the Federal Register on March 17, 2025.\3\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 102583 (March 11,
2025), 90 FR 12382 (``Notice'').
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On April 25, 2025, pursuant to Section 19(b)(2) of the Act,\4\ the
Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to disapprove the proposed rule
change.\5\ On June 3, 2025, the Exchange submitted Amendment No. 1 to
the proposed rule change, which replaced and superseded the proposed
rule change as originally filed.\6\ The Commission is publishing
[[Page 25410]]
this notice to solicit comments on Amendment No. 1 from interested
persons, and is approving the proposed rule change, as modified by
Amendment No. 1, on an accelerated basis.
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\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 102937, 90 FR 18720
(May 1, 2025). The Commission designated June 15, 2025, as the date
by which the Commission shall approve or disapprove, or institute
proceedings to determine whether to approve or disapprove, the
proposed rule change.
\6\ Amendment No. 1 is available on the Commission's website at:
https://www.sec.gov/comments/sr-cboe-2025-011/srcboe2025011-609227-1781374.pdf. Amendment No. 1: (i) revises the proposed rule text to
maintain current rule language related to the last day of trading
for A.M.-settled non-Volatility index options and Volatility Index
options that are not eligible for trading during GTH; (ii) revises
the proposed rule text to specify that, on expiration day, GTH-
eligible, non-Volatility A.M.-settled index options may trade
through the end of the GTH trading session and GTH-eligible,
Volatility Index options may trade until 9:00 a.m.; and (iii) adds
information and support to the proposal, including representations
regarding the proposal's consistency with Section 11A of the Act.
See Amendment No. 1.
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I. Self-Regulatory Organization's Description of the Proposed Rule
Change, as Modified by Amendment No. 1 7
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\7\ Sections I and II herein reproduce Amendment No. 1 as filed
by the Exchange.
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Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend Rule 4.13 (Series of Index Options) to allow for expiring non-
Volatility A.M.-settled index options that are eligible for trading
during Global Trading Hours (``GTH'') to trade through the end of the
GTH trading session on expiration day and to allow for expiring
Volatility A.M.-settled index options that are eligible for trading
during GTH to trade until 9:00 a.m. ET on the expiration date. 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 amend Rule 4.13 to allow for expiring non-
Volatility A.M.-settled index options that are eligible for trading
during GTH to trade through the end of the GTH trading session on
expiration day.
By way of background, the Exchange currently offers three trading
sessions: \8\ Regular Trading Hours (``RTH''), Curb Trading Hours
(``Curb''), and Global Trading Hours (``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.\9\ but in no case later than 4:15
p.m.\10\ RTH for transactions in index options are from 9:30 a.m. to
4:15 p.m., subject to certain exceptions.\11\ The Curb session is from
4:15 p.m. to 5:00 p.m., for designated classes, Monday through
Friday.\12\ 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.\13\ Currently, S&P 500 Index options (``SPX''), Cboe
Volatility Index options (``VIX''), and Mini-SPX Index options
(``XSP'') are approved for trading during Curb.\14\ The GTH session
currently begins at 8:15 p.m. (previous day) and goes until 9:25 a.m.
on Monday through Friday.\15\ 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.\16\
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\8\ 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).
\9\ All times referenced herein are Eastern Time, unless
otherwise specifically noted.
\10\ See Rule 5.1(b)(1).
\11\ See Rule 5.1(b)(2).
\12\ See Rule 5.1(d).
\13\ See Rule 5.1(d).
\14\ 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).
\15\ See Rule 5.1(c).
\16\ 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). As a result of this rule change, any index
options the Exchange designates as eligible for trading during GTH
would be able to trade through the end of the GTH trading session on
expiration day.
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By way of further background, currently, the last day of trading
for non-Volatility A.M.-settled index options is the business day
preceding the last day of trading in the underlying securities prior to
expiration (i.e., on the third Friday of the month).\17\ Expiring non-
Volatility A.M.-settled index options that are eligible to trade during
GTH stop trading at the end of the Curb session (following RTH) on the
Thursday prior to expiration day, with settlement on Friday morning
(i.e., expiration day); the option's settlement value is determined by
the RTH opening price on Friday (i.e., expiration day). The GTH session
from Thursday night to Friday morning is considered part of the Friday
business day, thus current rules prevent trading in an expiring series
during the GTH session on Thursday night and early Friday morning.
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\17\ See Rule 4.13(a)(4).
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Historically, the last day of trading for non-Volatility A.M.-
settled index options was the business day preceding the last day of
trading in the underlying securities prior to expiration due to
technological and operational constraints that existed when options
markets first established their settlement procedures. However, these
historical limitations have been eliminated with modern technological
advances which compress the time required for expiration processing.
Further, the introduction and expansion of the GTH session now provides
for an additional trading opportunity on the expiration day but prior
to the settlement value of the option being determined at the opening
of RTH on Friday morning (after the close of the GTH session). This
current trading gap between the close of the Curb trading session and
the open of RTH exposes market participants to unnecessary risk
exposure during potentially volatile periods overnight and immediately
prior to expiration.
To provide market participants with an opportunity to mitigate this
risk, the
[[Page 25411]]
Exchange proposes to amend its Rules to allow for expiring non-
Volatility A.M.-settled index options that are eligible for trading
during GTH, to trade through the end of the GTH trading session on
expiration day. This would provide market participants, including
global market participants for which the GTH trading session is more
aligned with their local trading hours, with an expanded timeframe to
trade and manage risk for expiring index options through the GTH
session prior to settlement, for those non-Volatility A.M.-settled
index options that trade during GTH, in the same manner as such index
options trade today during GTH prior to non-expiration days. As
discussed above, providing market participants the opportunity to trade
through the end of the GTH trading session on expiration day will offer
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
immediately prior to expiration. The proposed rule change would provide
investors with this ability during all GTH sessions for non-Volatility
A.M.-settled options, including the GTH session immediately preceding
determination of settlement (currently the only GTH session during
which these options are unable to trade). This has no impact on options
that are not eligible to trade during GTH, as eligible trading for such
options will continue to end at the conclusion of the RTH session (or
the Curb session, if eligible) on the preceding Thursday.
The Exchange proposes to amend Rule 4.13(a)(4). Currently, Rule
4.13(a)(4) provides that the last day of trading for non-Volatility
A.M.-settled index options \18\ shall be the business day preceding the
last day of trading in the underlying securities prior to expiration.
The Exchange proposes to amend Rule 4.13(a)(4) to state that the last
day of trading for non-Volatility A.M.-settled index options shall be
the business day preceding the last day of trading in the underlying
securities prior to expiration, except for those expiring non-
Volatility A.M.-settled index options that are eligible for trading
during GTH, which may trade through the end of the GTH trading session
on expiration day. The Exchange also proposes to amend Rule 4.13(a)(4)
to provide that the determination of the current index value at the
expiration of an A.M.-settled index option shall occur at the opening
of the RTH trading session on expiration day (rather than the last day
of trading in the underlying securities prior to expiration day).
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\18\ The Exchange notes that SPX and XSP are the non-Volatility
A.M.-settled index options currently approved for trading during
GTH. While the Exchange may list A.M.-settled XSP options, there are
none listed as of the date of this filing.
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The Exchange notes that S&P Index futures and options contracts
(offered by the Chicago Mercantile Exchange) are permitted to trade
until 9:30 a.m. ET on final settlement date/expiration date. As such,
the Exchange believes the proposed change will better align the
available trading hours for similar exchange-traded products and
provide investors with additional opportunities to more precisely and
efficiently manage investment risk, by offering trading on instruments
the Exchange understands market participants regularly use to hedge the
options currently available for trading during GTH simultaneously
during overnight hours.
Similarly, the Exchange proposes to amend Rule 4.13(a)(5)(C).
Currently, Rule 4.13(a)(5)(C) provides that the expiration date of a
Volatility Index option shall be the same day that the exercise
settlement value of the Volatility Index \19\ is calculated. Rule
4.13(a)(5)(C) also states that the last trading day for a Volatility
Index option shall be the business day immediately preceding the
expiration date of the Volatility Index option (except when the last
trading day is moved because of an Exchange holiday, the last trading
day for an expiring option contract will be the day immediately
preceding the last regularly scheduled trading day). Similar to the
proposed changes described above for expiring non-Volatility A.M.-
settled index options, the Exchange proposes to amend Rule
4.13(a)(5)(C) to remove language regarding last trading day and instead
provide that the last trading day for a Volatility Index option shall
be the business day immediately preceding the expiration date of the
Volatility Index option, except those Volatility Index options that are
eligible for trading during GTH, which may trade until 9:00 a.m. ET
\20\ on the expiration date.
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\19\ The Exchange notes that VIX is the Volatility A.M.-settled
index option currently approved for trading during GTH.
\20\ See Rule 1.6.
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The Exchange notes that VIX futures contracts (offered by Cboe
Futures Exchange, LLC) are permitted to trade until 9:00 a.m. ET on the
final settlement date.\21\ As such, the Exchange believes the proposed
change will better align the available trading hours for related
exchange-traded products and provide investors with additional
opportunities to manage investment risk. The simultaneous availability
of VIX options alongside VIX futures during GTH prior to expiration
allows market participants the opportunity to more precisely adjust
their volatility exposure if and when overnight events may result in
market uncertainty.
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\21\ See Cboe Futures Exchange, LLC Rule 1202(b).
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The Exchange notes that the proposed rule change makes no changes
to the trading rules applicable to GTH.\22\ The proposed rule change is
also consistent with Section 11A of the Act and Regulation NMS
thereunder, because it continues to provide for the dissemination of
transaction and quotation information during GTH through OPRA, pursuant
to the OPRA Plan, which the Commission approved and indicated to be
consistent with the Act.
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\22\ Pursuant to Rule 6.4 (Reporting of Trades to OCC), all
transactions made on the Exchange during these sessions will
continue to be submitted for clearance to the Options Clearing
Corporation (``OCC'') in the same manner they are today.
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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.\23\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \24\ 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) \25\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\23\ 15 U.S.C. 78f(b).
\24\ 15 U.S.C. 78f(b)(5).
\25\ Id.
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The proposed rule change further removes impediments to a free and
open market and does not unfairly discriminate among market
participants, as all TPHs that trade on the Exchange during GTH may
trade expiring non-
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Volatility A.M.-settled index options and expiring Volatility A.M.-
settled index options during GTH prior to expiration using the same
connection lines, message formats data feeds, and EFIDs they use during
RTH and GTH today, minimizing any preparation efforts necessary to
participate in the extended trading hours for these products. TPHs will
continue not be required to trade during GTH.
Further, the Exchange believes the proposed rule change will remove
impediments to and perfect the mechanism of a free and open market and
a national market system, because it may provide Users with the ability
to better manage their risk pre-settlement in classes that trade during
GTH. As noted above, for those classes that trade during GTH, the last
trading opportunity currently ends at the close of the Curb session on
Thursday despite the fact that there is a GTH trading session that
occurs between then and the determination of the settlement value is at
Friday's open, leaving the possibility of some overnight risk. The GTH
session was originally adopted due to global demand from investors to
trade SPX and VIX (and later XSP) options. The GTH session was
designed, in general, to provide investors with the ability to manage
risk more efficiently, react to global macroeconomic events as they are
happening and adjust options positions (in those classes that trade
during GTH) nearly around the clock. The Exchange therefore believes
that the proposed rule change is consistent with that purpose, as it is
reasonably designed to provide an appropriate mechanism for Users to
manage risk as options approach expiration, while providing for
continued Exchange oversight pursuant to the Act, trade reporting, and
surveillance within the GTH trading session. The proposed changes
eliminate an unnecessary gap between the time at which trading in
expiring option ends and the determination of the settlement value for
that option by permitting market participants to trade all expiring
A.M.-settled index options during all available trading hours up until
the settlement value is determined. This is consistent with expiring
A.M.-settled index options that do not trade during GTH (i.e., only
during RTH and Curb). As noted above, the Exchange believes the
proposed changes allow investors to mitigate risk more efficiently, by
providing the opportunity to react to global macroeconomic events as
they are happening and adjust options positions (in those classes that
trade during GTH) nearly around the clock, to the benefit of investors.
Further, the Exchange believes that eliminating the unnecessary gap
in trading and allowing these A.M.-settled options to trade during the
Thursday/Friday GTH session that are part of the expiration Friday
business day (the same as occurs on non-expiration weeks) may serve to
benefit investors by providing additional trading opportunities for
options closer to their expiration. The proposed change will result in
minimal impact to current trading systems, as the change will extend
trading opportunities only for those expiring A.M.-settled options that
currently trade during GTH. As noted above, contracts for related
exchange-traded products are permitted to trade until 9:00 a.m. ET (in
the case of VIX futures contracts) and 9:30 a.m. ET (in the case of S&P
Index futures and options contracts) on final settlement date/
expiration date. As such, the Exchange believes the proposed change
will better align the available trading hours for similar exchange-
traded products and provide investors with additional opportunities to
manage investment risk. The proposed rule change has no impact on those
A.M.-settled options that do not trade during GTH, as trading for
expiring options in those classes will continue to end at the close of
RTH on the preceding Thursday as it does today.
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 trade
expiring non-Volatility A.M.-settled index options that are eligible
for trading during GTH through the end of the GTH trading session on
expiration day.
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 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 to trade expiring
non-Volatility A.M.-settled index options and expiring Volatility A.M.-
settled index options during GTH prior to expiration, for those index
options that trade during GTH.
The Exchange does not believe that the proposed rule change 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 relates to the trading hours of options that trade
on the Exchange during a trading session that other options exchanges
have not made available. Further, the proposed rule changes apply only
to products exclusively listed on the Exchange. Ultimately, the
Exchange believes the proposed rule change will provide investors with
additional opportunities to trade expiring options before settlement,
including to manage risk.
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. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change, as modified by Amendment No. 1 (``Amended Proposal''), is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
exchange.\26\ In particular, the Commission finds that the Amended
Proposal is consistent with Section 6(b)(5) of the Act,\27\ which
requires, among other things, 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. Further, the Commission
finds that the Amended Proposal is consistent with Section 11A(a)(1)(C)
of the Act,\28\ which sets forth Congress' finding that it is in the
public interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure, among other things,
the availability to brokers, dealers, and investors of information with
respect to quotations for and transactions in securities, and to assume
the
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practicality of brokers executing investors' orders in the best market.
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\26\ In approving the proposed rule change, the Commission has
considered its impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
\27\ 15 U.S.C. 78f(b)(5).
\28\ 15 U.S.C. 78k-1(a)(1)(C).
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The Amended Proposal does not raise unique regulatory concerns. In
2014, the Commission approved a proposed rule change by the Exchange to
establish extended trading hours (which later became known as GTH) for
the Exchange's exclusively listed products (then SPX and VIX), to
coincide with regular trading hours in Europe.\29\ The GTH hours were
later expanded, by pushing back the start time for the GTH session from
3:00 a.m. ET on the expiration date to 8:15 p.m. ET on the calendar day
immediately preceding the expiration date.\30\ Due to now-obsolete
technological and operational constraints, current Exchange rules
prevent trading in an expiring series during the particular GTH session
that spans the Thursday night to expiration third-Friday morning.\31\
Since the historical limitations underpinning these rules no longer
exist, the Amended Proposal would amend these rules to permit GTH-
eligible,\32\ expiring A.M.-settled non-Volatility index options and
Volatility Index options--which already trade during every other GTH
session in a given month--to trade during this particular GTH session.
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\29\ See Securities Exchange Act Release No. 73704 (November 28,
2014), 79 FR 72044, 72046 (December 4, 2014) (SR-CBOE-2014-062)
(order granting accelerated approval of proposed rule change, as
modified by Amendments Nos. 1 and 2, to adopt extended trading hours
for SPX and VIX) (``Original GTH Approval'').
\30\ See Securities Exchange Act Release No. 93403 (October 22,
2021), 86 FR 59824 (October 28, 2021) (SR-CBOE-2021-061) (notice of
filing and immediate effectiveness of proposed rule change to extend
the length of its then-current GTH session).
\31\ See Section II, supra.
\32\ The Amended Proposal does not apply to options that are not
eligible to trade during GTH, and eligible trading for such options
will continue to end at the conclusion of the RTH session (or Curb
if eligible) on the Thursday preceding an expiration third-Friday.
Id.
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Moreover, the Amended Proposal would make no changes to the trading
rules applicable to GTH, and all Trading Permit Holders that trade on
the Exchange during GTH could continue to trade during the GTH session
immediately preceding expiration using the same functionalities that
they use today.\33\ In the same manner as occurs currently for GTH
trading, all transactions in the particular GTH session covered by the
Amended Proposal would be submitted for clearing and all quotation and
transaction information would be disseminated through OPRA.\34\
Further, S&P 500 index futures (and options on those futures) and VIX
futures, which are common hedging instruments for the options covered
by the Amended Proposal, already trade until 9:30 a.m. and 9:00 a.m.,
respectively, on the final settlement date.\35\ These hedging
instruments therefore would be available to market participants during
the GTH session for which the Amended Proposal permits trading.
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\33\ Id.
\34\ Id.
\35\ Id.
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Additionally, the cessation of trading in expiring, GTH-eligible
A.M.-settled non-Volatility index options and Volatility Index options
at the close of the Curb trading session on the Thursday preceding an
expiration third-Friday exposes markets participants to overnight pre-
settlement risk, especially during potentially volatile periods,
because the settlement value for these products is not determined until
the open on expiration Friday. The Amended Proposal would help mitigate
this risk by providing market participants, including global market
participants for which the GTH trading session is more aligned with
their local trading hours, with the ability to trade and manage the
risk associated with positions in the applicable expiring index options
during the GTH session immediately prior to settlement in the same
manner such index options trade today during every other GTH session.
This is consistent with the Act, as well as original purpose of GTH,
which was designed, in general, to provide investors with the ability
to manage risk more efficiently, react to global macroeconomic events
as they occur, and adjust applicable option positions nearly around the
clock.\36\
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\36\ See Original GTH Approval, supra note 29.
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Based on the foregoing and for the above reasons, the Commission
finds that the proposed rule change is consistent with the requirements
of Section 6(b)(5) of the Act \37\ in that it is designed to promote
just and equitable principles of trade, 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;
and is consistent with Section 11A(a)(1)(C) of the Act \38\ in that it
is designed to assure the availability to brokers, dealers, and
investors of information with respect to quotations for and
transactions in securities, and to assure the practicability of brokers
executing investors' orders in the best market.
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\37\ 15 U.S.C. 78f(b)(5).
\38\ 15 U.S.C. 78k-1(a)(1)(C).
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IV. Solicitation of Comments on Amendment No. 1 to the Proposed Rule
Change
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change, as modified by Amendment No. 1, 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-2025-011 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-2025-011. 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-2025-011 and should be
submitted on or before July 7, 2025.
[[Page 25414]]
V. Accelerated Approval of Proposed Rule Change, as Modified by
Amendment No. 1
The Commission finds good cause to approve the Amended Proposal
prior to the thirtieth day after the date of publication of notice of
the filing of Amendment No. 1 in the Federal Register. Amendment No. 1
does not change the original purpose of the proposal, which was, and
remains under Amendment No. 1, to permit the trading of GTH-eligible,
expiring A.M.-settled non-Volatility index options and Volatility Index
options during the GTH session immediately preceding the expiration
date. In addition, the original proposal was published for comment in
the Federal Register,\39\ and no comments have been received.
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\39\ See Notice, supra note 3.
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Amendment No. 1 sets forth additional support for and detail
regarding the original filing and clarifies certain rule text
provisions. Specifically, Amendment No. 1: (i) revises the proposed
rule text to maintain current rule language related to the last day of
trading for A.M.-settled non-Volatility index options and Volatility
Index options that are not eligible for trading during GTH; (ii)
revises the proposed rule text to specify that, on expiration day, GTH-
eligible, A.M.-settled non-Volatility Index options may trade through
the end of the GTH trading session, and GTH-eligible, A.M.-settled
Volatility Index options may trade until 9:00 a.m.; and (iii) adds
information and support to the proposal, including representations
regarding the proposal's consistency with Section 11A of the Act. The
Commission believes that Amendment No. 1, without altering the original
proposal's purpose, strengthens the original proposal by providing
additional clarity and justification for the proposal's consistency
with the Act.
The Commission therefore finds that Amendment No. 1 raises no novel
regulatory issues that have not previously been subject to comment and
is reasonably designed to promote just and equitable principles of
trade, 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. Accordingly, pursuant to Section
19(b)(2) of the Act,\40\ the Commission finds good cause to approve the
Amended Proposal on an accelerated basis prior to the 30th day after
publication of notice of the filing of Amendment No. 1 in the Federal
Register.
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\40\ 15 U.S.C. 78s(b)(2).
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VI. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act,\41\ that the proposed rule change (SR-CBOE-2025-011), as
modified by Amendment No. 1, be, and hereby is, approved on an
accelerated basis.
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\41\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\42\
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\42\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-10876 Filed 6-13-25; 8:45 am]
BILLING CODE 8011-01-P