[Federal Register Volume 91, Number 35 (Monday, February 23, 2026)]
[Notices]
[Pages 8561-8563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-03446]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104861; File No. SR-CBOE-2026-019]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 5.1 To Permit the Exchange To List Two Additional Products During
Global Trading Hours (``GTH'')
February 18, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 12, 2026, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 5.1 to permit the Exchange to
list the Cboe Bitcoin U.S. ETF Index (``CBTX'') and Cboe Mini Bitcoin
U.S. ETF Index (``MBTX'') options during Global Trading Hours
(``GTH''). The text of the proposed rule change is also available on
the Commission's website (https://www.sec.gov/rules/sro.shtml), the
Exchange's website (https://www.cboe.com/us/options/regulation/rule_filings/bzx/), and at the principal office of the Exchange.
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 5.1 to permit the Exchange to
list the Cboe Bitcoin U.S. ETF Index (``CBTX'') and Cboe Mini Bitcoin
U.S. ETF Index (``MBTX'') options during Global Trading Hours
(``GTH'').
By way of background, Rule 5.1(c) provides that the Exchange may
designate as eligible for trading during GTH \3\ any exclusively listed
index option \4\ designated for trading under Chapter 4, Section B.4
Currently, options on S&P 500 Stock Index (``SPX''), Cboe Volatility
Index (``VIX''), Mini-SPX Index (``XSP''), Russell 2000 Index
(``RUT''), Mini-RUT Index (``MRUT''), and Cboe Magnificent 10 Index
(``MGTN'') are approved for trading during GTH.
---------------------------------------------------------------------------
\3\ Except under unusual conditions as may be determined by the
Exchange or the Holiday hours set forth in Rule 5.1(d), Global
Trading Hours are from 8:15 p.m. (previous day) to 9:25 a.m. on
Monday through Friday. See Rule 5.1(c).
\4\ An ``exclusively listed option'' is an option that trades
exclusively on an exchange because the exchange has an exclusive
license to list and trade the option or has the proprietary rights
in the interest underlying the option. An exclusively listed option
is different than a ``singly listed option,'' which is an option
that is not an ``exclusively listed option'' but that is listed by
one exchange and not by any other national securities exchange.
---------------------------------------------------------------------------
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.\5\ In response to
customer demand for additional options to trade during the GTH trading
session for similar purposes, the Exchange later designated XSP, RUT,
MRUT, and MGTN options to provide additional hedging and investment
opportunities consistent with the continued globalization of the
securities markets.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 34-73017 (September
8, 2014), 79 FR 54758 (September 12, 2014) (SR-CBOE-2014-062).
\6\ See Securities Exchange Act Nos. 34-75914 (September 14,
2015), 80 FR 56522 (September 18, 2015) (SR-CBOE-2015-079); 104228
(November 19, 2025) 90 FR 53013 (November 24, 2025) (SR-CBOE-2025-
070); 104227 (November 19, 2025) 90 FR 53018 (November 24, 2025)
(SR-CBOE-2025-071).
---------------------------------------------------------------------------
The Exchange now proposes to designate CBTX and MBTX \7\ options as
eligible for trading during GTH. The proposed rule change amends Rules
[[Page 8562]]
5.1(c) to add these two products to the list of products the Exchange
has approved for trading on the Exchange during GTH. The Exchange
currently lists CBTX and MBTX options during Regular Trading Hours
(``RTH''); the proposed rule change merely extends the hours during
which these options will trade on the Exchange. During GTH, CBTX and
MBTX options would trade in accordance with applicable Exchange Rules,
as SPX, VIX, XSP, RUT, MRUT, and MGTN currently do; the proposed rule
change makes no changes to the trading rules applicable to GTH.\8\
---------------------------------------------------------------------------
\7\ See Rule 4.13(a)(3), which provides that CBTX and MBTX are
approved for trading on the Exchange.
\8\ 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.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\9\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \10\ 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) \11\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ Id.
---------------------------------------------------------------------------
In particular, the Exchange believes the proposed rule change will
further improve the Exchange's marketplace for the benefit of
investors. The listing of CBTX and MBTX options for trading during GTH
will provide more hedging and other investment opportunities within the
options trading industry that is consistent with the continued
globalization of the securities markets. Extending the timeframe in
which investors may trade CBTX and MBTX options is designed to provide
investors with the ability to manage risk more efficiently, react to
global macroeconomic events as they are happening and adjust CBTX and
MBTX options positions nearly around the clock. This is particularly
important for Bitcoin-based products, as Bitcoin and cryptocurrency
markets trade 24 hours a day, seven days a week globally, and extending
CBTX and MBTX options trading hours will allow investors to manage
exposure to Bitcoin price movements during periods when significant
price discovery may occur outside traditional U.S. trading hours.
During GTH, CBTX and MBTX options would trade in accordance with
Exchange Rules that apply to trading during GTH, as SPX, VIX, XSP, RUT,
MRUT, and MGTN options currently do. The proposed rule change makes no
changes to the trading rules applicable to GTH; it merely permits the
Exchange to list additional products during GTH, which two products
already trade on the Exchange during RTH. The Exchange therefore
believes that the proposed rule change is reasonably designed to
provide an appropriate mechanism for extending the trading time for
CBTX and MBTX options, while providing for appropriate Exchange
oversight pursuant to the Act.
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 will impose any burden on
intramarket competition because the proposed rule change will apply
equally to all Trading Permit Holders (``TPHs''). All TPHs will have
the ability to trade CBTX and MBTX options during GTH in the same
manner as they currently trade SPX, VIX, XSP, RUT, MRUT, and MGTN
options during GTH. The proposed rule change does not favor or
disadvantage any particular category of market participant; rather, it
provides all market participants with expanded opportunities to trade
CBTX and MBTX options.
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 CBTX and
MBTX options are proprietary Exchange products. The proposed rule
change merely extends the trading hours during which these exclusively
listed products may trade on the Exchange and does not affect the
ability of other exchanges to list or trade their own proprietary index
options during extended trading hours.
To the extent that the proposed rule change makes the Exchange a
more attractive marketplace for market participants, the Exchange does
not believe that this burdens competition but rather promotes it, as
the Exchange competes with other national securities exchanges for
order flow. Any exchange that wishes to expand trading hours for its
own exclusively listed index options may file a proposed rule change
with the Commission to do so. Moreover, to the extent the proposed rule
change enhances the Exchange's competitive position, any such
enhancement is the result of the Exchange's efforts to meet customer
demand for extended trading hours in Bitcoin-based index options, which
benefits investors by providing additional hedging and investment
opportunities aligned with the 24/7 nature of global cryptocurrency
markets.
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 \12\ and
Rule 19b-4(f)(6) \13\ 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.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
[[Page 8563]]
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-2026-019 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-2026-019. 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 filing 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-2026-019 and should be submitted on
or before March 16, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-03446 Filed 2-20-26; 8:45 am]
BILLING CODE 8011-01-P