Notice2022-03650
Self-Regulatory Organizations; Cboe Exchange, Inc.; Order Granting Approval of a Proposed Rule Change To Adopt a Modified Trading Schedule for Holidays
Primary source
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Published
February 22, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 35 (Tuesday, February 22, 2022)</title>
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[Federal Register Volume 87, Number 35 (Tuesday, February 22, 2022)]
[Notices]
[Pages 9729-9733]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-03650]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94253; File No. SR-CBOE-2021-068]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Order
Granting Approval of a Proposed Rule Change To Adopt a Modified Trading
Schedule for Holidays
February 15, 2022.
I. Introduction
On November 15, 2021, Cboe Exchange, Inc. (``Exchange'' or
``CBOE'') 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 adopt a modified trading schedule for holidays.
The proposed rule change was published for comment in the Federal
Register on December 3, 2021.\3\ On January 12, 2022, the Commission
designated a longer period for Commission action on the proposed rule
change, until March 3, 2022.\4\ The Commission has received no comment
letters on the proposal. This order approves the proposed rule change.
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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. 93677 (November 29,
2021), 86 FR 68703 (``Notice'').
\4\ See Securities Exchange Act Release No. 93955, 87 FR 2971
(January 19, 2022).
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II. Description of the Proposed Rule Change
The Exchange proposes to adopt a modified trading schedule for
holidays observed by the Exchange and amend and conform various rules
relating to the proposed holiday trading sessions, as described more
fully below. Particularly, the Exchange proposes to (i) adopt an
additional Global Trading Hours (``GTH'') \5\ trading session that
would immediately precede domestic holidays and (ii) start the GTH
session that immediately follows a holiday at 8:15 p.m. on the
holiday.\6\
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\5\ 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. 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. Currently, only SPX, VIX and
XSP are approved for trading during GTH. Although eligible, XSP is
not currently listed for trading during GTH.
\6\ If the holiday is observed on a Friday, GTH currently begins
(and would continue to begin) at 8:15 p.m. on the following Sunday.
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The Exchange currently offers two trading sessions.\7\ Regular
Trading Hours (``RTH'') and GTH. CBOE Rule 5.1 currently sets forth the
trading hours for the Exchange's RTH and GTH trading sessions, as well
as the trading schedule for holidays observed by the Exchange. RTH for
transactions in index options are from 9:30 a.m. to 4:15 p.m., subject
to certain exceptions.\8\ Currently, the GTH session begins at 8:15
p.m. (previous day) and end at 9:15 a.m. on Monday through Friday.\9\
Any GTH session that follows a holiday listed under Rule 5.1(d) begins
at 12:00 a.m. on the calendar day immediately following the day the
holiday is observed and ends at 9:15 a.m., unless the holiday is
observed on a Friday, in which case the subsequent GTH session will
begin at 8:15 p.m. (Sunday) and will end at 9:15 a.m. (Monday).\10\
Transactions effected during the GTH session have the same trade date
as the RTH session that immediately follows it.\11\
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\7\ The term ``trading session'' means the hours during which
the Exchange is open for trading for Regular Trading Hours or Global
Trading Hours (each of which may be referred to as a trading
session). Unless otherwise specified in the Rules or the context
otherwise indicates, all Rules apply in the same manner during each
trading session. See CBOE Rule 1.1 (Definitions).
\8\ See CBOE Rule 5.1(b)(2).
\9\ See also Securities Exchange Act Release No. 93403 (October
22, 2021), 86 FR 59824 (October 28, 2021) (SR-CBOE-2021-061).
\10\ Id.
\11\ For example, any transactions effected during the GTH
session that begins at 8:15 p.m. on Tuesday, November 23 will be
considered to have the trade date of Wednesday, November 24
regardless of whether the trades were effected between 8:15 p.m. and
11:59 p.m. on Tuesday, November 23 or between 12:00 a.m. and 9:15
a.m. on Wednesday November 24.
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Additionally, there are several holidays on which the Exchange is
currently not open for business.\12\ For any holiday observed by the
Exchange that falls on a Saturday, the Exchange is not open for
business on the preceding Friday, and when any holiday observed by the
Exchange falls on a Sunday, the
[[Page 9730]]
Exchange is not open for business on the following Monday, unless
unusual business conditions exist at the time. Currently, if the
Exchange is not open for RTH on a day, including holidays, then it will
not be open for GTH on that same day.\13\
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\12\ See CBOE Rule 5.1(d). Currently, the Exchange is not open
for business on: New Year's Day, Martin Luther King, Jr. Day,
Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day, or Christmas Day.
\13\ See CBOE Rule 1.1, definition of ``Business Day'' and
``Trading Day''.
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The Exchange now proposes to also adopt a modified holiday trading
hours schedule to, according to the Exchange, provide global market
participants the ability to trade during GTH sessions that overlap with
U.S. domestic holidays.
Trading Hours
The Exchange proposes to amend CBOE Rule 5.1(d) to adopt modified
trading schedules for domestic \14\ and international \15\
holidays.\16\ First, the Exchange proposes to adopt CBOE Rule
5.1(d)(1), which would outline the trading hours schedule for domestic
holidays and provide specifically that for Martin Luther King, Jr. Day,
Presidents' Day, Memorial Day, Independence Day, Labor Day, and
Thanksgiving Day (i.e., domestic holidays), the trading day following
the holiday would consist of the following three 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, or if the holiday is on a Friday, on the
Sunday following the holiday, to 9:15 a.m. on the trading day and (iii)
a RTH session on the trading day.\17\ Proposed CBOE Rule 5.1(d)(1)
would also make clear that there would continue to be no RTH session on
the day a domestic holiday is observed. According to the Exchange, the
proposed hours of operation for the GTH session immediately preceding a
RTH session that is closed due to a domestic holiday overlaps with the
hours of operation of many international markets, which do not observe
U.S. domestic holidays and are therefore still open at this time.
Moreover, both GTH trading sessions would be considered part of the
next trading day (i.e., both GTH sessions would have the trade date of
the trading day following the holiday).\18\ As an example, the holiday
GTH session preceding Memorial Day would start at 8:15 p.m. on the
Sunday prior to Memorial Day and end at 11:30 a.m. on Memorial Day. The
market would then be closed at 11:30 a.m. on Memorial Day (Monday)
(i.e., there would be no RTH session on Memorial Day). The next GTH
trading session would begin at 8:15 p.m. on Memorial Day and proceed as
normal until 9:15 a.m. on Tuesday, which would be followed by a normal
RTH session that begins as 9:30 a.m. on Tuesday. All trading from
Sunday night through Tuesday RTH market close would be considered to be
part of the Tuesday trading day. The following also illustrates how the
holiday schedule applies for U.S. domestic holidays that are observed
on a Friday. For example, if Independence Day is observed on a Friday,
the trading day following the Friday holiday (Monday Trading Day) would
consist of three trading sessions: (1) A GTH session open from 8:15
p.m. on the Thursday preceding Independence Day to 11:30 a.m. on
Independence Day, (2) a GTH session from 8:15 p.m. on the Sunday
following Independence Day to 9:15 a.m. on the following Monday and (3)
a RTH session from 9:30 a.m. to 4:15 p.m. on Monday. All trading from
Thursday night through Friday, and from Sunday night through Monday RTH
market close is considered to be part of the Monday trading day.
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\14\ Domestic holidays include Martin Luther King, Jr. Day,
Presidents' Day, Memorial Day, Independence Day, Labor Day and
Thanksgiving Day.
\15\ International holidays include Good Friday, Christmas Day
and New Year's Day.
\16\ The Exchange also proposes making conforming changes to
CBOE Rule 5.1(c) to reflect the proposed holiday schedule. See
Notice, supra note 3, 86 FR at 68704.
\17\ The Exchange would further amend the definition of
``Business Day and Trading Day'' under Proposed CBOE Rule 1.1 to
conform to the proposed rule change by clarifying that a ``business
day or trading day that immediately follows a domestic holiday . . .
includes the Regular Trading Hours session and the two Global
Trading Hours sessions that immediately precede it.'' See also
Notice, supra note 3, 86 FR at 68705-06.
\18\ Pursuant to CBOE 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. However, as
noted, such trades will have the trade date of the trading day
following the holiday.
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The Exchange next proposes to adopt CBOE Rule 5.1(d)(2), which
would outline the trading hours schedule for international holidays and
provide specifically that for Good Friday, Christmas Day and New Year's
Day (i.e., international holidays), the trading day following the
holiday would consist of the following two trading sessions: (i) A GTH
session from 8:15 p.m. on the holiday, or if the holiday is observed on
a Friday, on the Sunday following the holiday, to 9:15 a.m. on the
trading day and (ii) a RTH session on the trading day. Pursuant to
proposed CBOE Rule 5.1(d)(2) there would not be a RTH session on the
day an international holiday is observed nor a GTH session immediately
preceding the day an international holiday is observed, since according
to the Exchange, international holidays, unlike domestic holidays, are
observed not just by U.S. residents, but by many global market
participants. Therefore, many international markets are also closed in
observance of these international holidays.\19\ Just like regular GTH
trading sessions, a GTH trading session that starts on an international
holiday at 8:15 p.m., would be considered part of the next trading day.
For example, there would be no GTH session immediately preceding Good
Friday (i.e., no GTH session that starts on Thursday). Rather, the
market would be closed from RTH market close on the Thursday preceding
Good Friday until the GTH session that starts at 8:15 p.m. on the
Sunday following Good Friday. All trading from Sunday night through RTH
market close on the following Monday is for a trading day of Monday.
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\19\ Moreover, according to the Exchange, futures markets
similarly do not provide an extended trading hours session that
precede certain international holidays. See e.g., CFE Rule 1202,
which provides, among other things, that there will be no extended
trading hours session preceding New Year's Day and Christmas Day.
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Entry of Orders, Quotes and Cancellations
The Exchange lastly proposes to update CBOE Rule 5.7(e), which
provides that after RTH market close, Users may cancel orders and
quotes with Time-in-Force of Good-til-Cancelled (``GTC'') \20\ or Good-
til-Date (``GTD'') \21\ that remain in the Book until 4:45 p.m. In
light of the proposed holiday schedule for GTH sessions on domestic
holidays (i.e., the GTH session would end at 11:30 a.m. on a domestic
holiday (observed)), the Exchange proposes to amend CBOE Rule 5.7(e) to
provide that on such domestic holidays, users may cancel orders and
quotes with Time-in-Force of GTC or GTD until 11:45 a.m. Pursuant to
the proposed rule change, Users would be able to cancel any GTC and GTD
orders until 11:45 a.m. on domestic holidays, not just
[[Page 9731]]
orders in All Sessions classes (i.e., SPX and VIX).\22\
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\20\ See CBOE Rule 5.6(c). The terms ``Good-til-Cancelled'' and
``GTC'' mean, for an order so designated, if after entry into the
System, the order is not fully executed, the order (or unexecuted
portion) remains available for potential display or execution (with
the same timestamp) unless cancelled by the entering User, or until
the option expires, whichever comes first. Users may not designate
bulk messages as GTC.
\21\ See CBOE Rule 5.6(c). The terms ``Good-til-Date'' and
``GTD'' mean, for an order so designated, if after entry into the
System, the order is not fully executed, the order (or unexecuted
portion) remains available for potential display or execution (with
the same timestamp) until a date and time specified by the entering
User unless cancelled by the entering User. Users may not designate
bulk messages as GTD. A User may not designate a GTD order as Direct
to PAR.
\22\ See Notice, supra note 3, 86 FR at 68706.
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Market-Maker Rules
Current CBOE Rule 5.50(a) (Market-Maker Appointments) provides that
a Market-Maker's selected class appointment applies to classes during
all trading sessions. In other words, if a Market-Maker selects an
appointment in SPX options, for example, that appointment would apply
during both GTH and RTH (and thus, the Market-Maker would have an
appointment to make markets in SPX during GTH and RTH). As a result,
the Market-Maker continuous quoting obligations set forth in Rule
5.52(d) would apply to the class for an entire trading day (including
both trading sessions). Pursuant to Rule 5.52(d), a Market-Maker must
enter continuous bids and offers in 60% of the series of the Market-
Maker's appointed classes, excluding any adjusted series, any intra-day
add-on series on the day during which such series are added for
trading, any Quarterly Option series, and any series with an expiration
of greater than 270 days.\23\ According to the Exchange, it calculates
this requirement by taking the total number of seconds the Market-Maker
disseminates quotes in each appointed class (excluding the series noted
above) and dividing that time by the eligible total number of seconds
each appointed class is open for trading that day.\24\ However,
according to the Exchange, the obligations apply only when the Market-
Maker is quoting in a particular class during a given trading day and
the obligations are not applicable to an appointed class if a Market-
Maker is not quoting in that appointed class.\25\ Accordingly, if a
Market-Maker does not wish to quote during the proposed new GTH
sessions, then so long as the Market-Maker does not log in and quote
during those hours, it would not be considered when determining a
Market-Maker's compliance with the quoting obligations.\26\
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\23\ See CBOE Rule 5.52(d)(2).
\24\ See Notice, supra note 3, 86 FR at 68706.
\25\ Id.
\26\ Id.
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Further, the Exchange has represented that it does not anticipate
any changes with respect to the current Lead-Market-Makers (``LMMs'')
structure used today during GTH.\27\ Accordingly, LMMs appointed in the
GTH holiday sessions would therefore continue to not be obligated to
satisfy heightened continuous quoting and opening quoting standards
during GTH, nor would they receive a benefit in exchange for satisfying
an obligation (i.e., LMMs do and would not receive a participation
entitlement during GTH, including during holiday trading hours).\28\
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\27\ Id.
\28\ Id.
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Exchange Representations
According to the Exchange, the proposed rule change to adopt a
modified holiday trading schedule would not make any changes to the
trading rules applicable to GTH.\29\ The GTH trading session, including
GTH holiday sessions, would continue to be a separate trading sessions
from RTH and the rules that currently apply (or do not apply) to the
current GTH session would continue to apply (or not apply) to the GTH
holiday session.\30\ The Exchange would continue to use the same
servers and hardware during the GTH holiday sessions as it uses for RTH
and GTH today.\31\ Further, according to the Exchange, Trading Permit
Holders (``TPHs'') may continue to use the same ports and connections
to the Exchange for all trading sessions.\32\ The Book used during the
GTH holiday sessions would also be the same Book used currently during
RTH and GTH.\33\ Moreover, the Exchange represented the following:\34\
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\29\ Id.
\30\ For example, business conduct rules in Chapter 8 and rules
related to doing business with the public in Chapter 9 would
continue to apply during the GTH holiday session. Id. at 68707,
n.29. Additionally, a broker-dealer's due diligence and best
execution obligations would apply during the GTH holiday session.
Id. As there would still be no open outcry trading on the floor
during GTH, Chapter 5, Section G would continue not to apply as such
rules pertain to manual order handling and open-outcry trading. Id.
\31\ Id. at 68707.
\32\ Id.
\33\ Id.
\34\ Id.
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<bullet> All TPHs would continue to be allowed to, but would not be
required to, participate during GTH holiday trading hours.\35\
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\35\ In order to participate in GTH, even as amended, a TPH must
have a letter of guarantee from a Clearing TPH that is properly
authorized by the OCC to operate during the GTH session. See CBOE
Rule 3.61.
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<bullet> The Exchange would continue to use the same connection
lines, message formats, and feeds during RTH and GTH, including GTH
holiday sessions.\36\ TPHs may use the same ports and EFIDs \37\ for
each trading session.\38\
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\36\ The same telecommunications lines used by TPHs during RTH
and/or GTH today may be used during GTH, even as extended, and these
lines would be connected to the same application server at the
Exchange during both trading sessions.
\37\ The term ``EFID'' means an Executing Firm ID. See CBOE Rule
1.1. The Exchange assigns an EFID to a TPH, which the System uses to
identify the TPH and the clearing number for the execution of orders
and quotes submitted to the System with that EFID.
\38\ A TPH may elect to have separate ports or EFIDs for each
trading session, but the Exchange would not require that.
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<bullet> The same opening process would continue to be used to open
GTH.
<bullet> Order processing would operate in the same manner as it
does during RTH and the current GTH session. There would be no changes
to the ranking, display, or allocation algorithms rules.
<bullet> There would be no changes to the processes for clearing,
settlement, exercise, and expiration.
<bullet> The Exchange would report Exchange quotation and last sale
information to the Options Price Reporting Authority (``OPRA'')
pursuant to the Plan for Reporting of Consolidated Options Last Sale
Reports and Quotation Information (``OPRA Plan'') during the proposed
additional holiday hours in the same manner it currently reports this
information to OPRA during RTH and GTH today.\39\ The Exchange would
also continue to disseminate an opening quote and trade price through
OPRA during the proposed additional holiday trading hours (as it does
for RTH and GTH today). Therefore, all TPHs that elect to trade during
the proposed holiday trading hours would have access to quote and last
sale information during that trading session. Exchange proprietary data
feeds would also continue to be disseminated during holiday trading
hours using the same formats and delivery mechanisms with which the
Exchange disseminates them during RTH and GTH today. Use of these
proprietary data feeds during holiday trading hours would be optional
(as they are today during RTH and GTH).
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\39\ The Exchange represents that it would report its best bid
and offer and executed trades to OPRA during the proposed additional
holiday trading hours in the same manner that they are reported
during RTH and GTH today.
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<bullet> The same TPHs that are required to maintain connectivity
to a backup trading facility during RTH and GTH today would be required
to do so during the proposed holiday trading hours.\40\ According to
the Exchange, because the same connections and servers would be used
for all trading sessions, including any holiday trading hours, a TPH
would not be required to take any additional action to comply with this
requirement,
[[Page 9732]]
regardless of whether the TPH chooses to trade during holiday trading
hours.
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\40\ See CBOE Rule 5.24.
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<bullet> The Exchange would process all clearly erroneous trade
breaks during holiday trading hours in the same manner it does during
RTH and GTH today and would have Exchange officials available to do so.
<bullet> The Exchange would perform all necessary surveillance
coverage during holiday trading hours.
<bullet> The Exchange may halt trading during GTH holiday sessions
in the interests of a fair and orderly market in the same manner it may
during RTH and GTH today pursuant to Rule 5.20. Among the factors that
may be considered in making the foregoing determinations are whether
there has been an activation of price limits on futures exchanges or
the halt of trading in related futures with respect to index
options.\41\
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\41\ See CBOE Rule 5.20(a)(6). As discussed above, futures
markets already follow a modified holiday trading schedule similar
to what the Exchange is proposing. As such, should a halt of trading
in related futures occur during the time a GTH holiday session is
open, then the Exchange may consider whether to halt during that
session, just as it may do during regular GTH (and RTH) sessions.
See Notice, supra note 3, 86 FR at 68707, n.38.
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<bullet> CBOE Rule 5.22 (Market-wide Trading Halts due to
Extraordinary Market Volatility) would continue to not apply during
GTH, including the proposed GTH holiday sessions.
The Exchange has further represented that it would have appropriate
staff on-site and otherwise available as necessary during the proposed
GTH holiday sessions to handle any technical and support issues that
may arise during those hours.\42\ Additionally, the Exchange would have
personnel available to address any trading issues that may arise during
the additional GTH trading hours.\43\ According to the Exchange, it is
also committed to fulfilling its obligations as a self-regulatory
organization at all times, including during GTH, and would have
appropriately trained, qualified regulatory staff in place during GTH
holiday sessions.\44\ Moreover, the Exchange has represented that while
it believes its surveillance procedures are adequate to properly
monitor trading during the proposed GTH holiday sessions, it will
revise such procedures to the extent necessary if additional changes
are needed in the future.\45\
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\42\ Id. at 68708.
\43\ Id.
\44\ Id.
\45\ Id.
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Implementation Date
The Exchange represents that it will announce the implementation
date of the proposed rule change in accordance with Rule 1.5.\46\
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\46\ See id. at 68708.
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III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act,\47\ and the
rules and regulations thereunder applicable to a national securities
exchange.\48\ In particular, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act,\49\ which
requires, among other things, that the rules of a national securities
exchange be designed to prevent fraudulent and manipulative acts and
practices, 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.
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\47\ 15 U.S.C. 78f.
\48\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\49\ 15 U.S.C. 78f(b)(5).
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As described above, CBOE proposes to adopt a modified trading
schedule for GTH during holidays.\50\ The proposed modified trading
schedule for holidays is designed to more closely align the Exchange's
trading hours with extended trading hours of futures exchanges and
market hours of other geographic regions. Specifically, the Exchange
states that the modified trading schedule on holidays will increase the
overlap in time that SPX and VIX options are open alongside the related
futures contracts and provide global market participants with expanded
access to trade the products offered during GTH.\51\ Among other
things, the Exchange believes that the proposed modified holiday
trading schedule is designed to respond to investor demand to hedge
risk, react to global macroeconomic events contemporaneously, and
adjust SPX and VIX options positions outside of RTH.\52\ The Exchange
believes that the proposed rule change will allow market participants
operating in geographic locations that do not observe U.S. domestic
holidays to respond to international market conditions that may occur
during such holidays.\53\ As a result, the Exchange believes that the
proposal will allow a new segment of global market participants the
ability to trade GTH products in their local time, particularly those
trading SPX and VIX options.\54\
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\50\ In connection with the modified trading schedule for GTH
during domestic and international holidays, the Exchange is also
amending Cboe Rule 5.7(e) to allow all GTC or GTD orders to be
cancelled until 11:45 a.m. on the day a domestic holiday is
observed.
\51\ See Notice, supra note 3, 86 FR at 68708.
\52\ See id.
\53\ See id.
\54\ See id. at 68704.
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The Commission finds that the proposed modifications to the GTH
trading schedule for domestic and international holidays are consistent
with the Act.\55\ The Commission notes that the Exchange has
represented that the modified holiday trading schedule makes no changes
to the trading rules applicable to GTH.\56\ Specifically, the Exchange
represents, among other things, that the business conduct rules in
Chapter 8 of the Rules and rules related to doing business with the
public in Chapter 9 of the Rules will continue to apply during the
modified GTH holiday schedule.\57\ The processes for options clearing,
settlement, exercise, and expiration, as well as clearly erroneous
trades, will remain the same during the modified GTH holiday trading
schedule.\58\ Moreover, the Exchange has represented that it will
perform all necessary surveillance and have qualified regulatory staff
available during the modified GTH holiday sessions in keeping with its
obligations as an self-regulatory organization.\59\ The Exchange also
states that it has held discussions with the OCC, which has informed
the Exchange that it will be able to clear and settle all transactions
that occur on the Exchange during the proposed holiday trading hours
subject to its existing requirements for transactions executed during
extended and overnight trading sessions.\60\ As a result, the
Commission finds that the proposed rule change is reasonably designed
to help prevent fraudulent and manipulative acts and practices, and
promote just and equitable principles of trade, by conditioning the
increased availability for TPHs to trade outside of the current RTH and
GTH sessions with Exchange oversight and regulatory surveillance and
reporting.
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\55\ See id.
\56\ See id.
\57\ See id. at 68707, n.29.
\58\ See id. at 68707.
\59\ See id. at 68707-08.
\60\ See id. at 68707, n.34.
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The proposed rule change is also consistent with Section
11A(a)(1)(C) of the Act.\61\ Congress found in those provisions that it
is in the public interest and appropriate for the protection of
investors and the maintenance of fair and orderly markets
[[Page 9733]]
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. The proposed rule change is
designed to accomplish these objectives by ensuring that the Exchange
will report its best bid and offer and executed trades to OPRA during
the modified GTH holiday sessions in the same manner that they are
reported currently during RTH and GTH,\62\ thereby providing public
transparency of activity during the modified GTH holiday session.
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\61\ 15 U.S.C. 78k-1(a)(1)(C).
\62\ See Notice, supra note 3, 86 FR at 68707, nn.35-36 and
accompanying text.
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Finally, the Commission also believes that the Exchange's proposed
change to Cboe Rule 5.7(e), which would allow Users to cancel all GTC
or GTD orders until 11:45 a.m. on domestic holidays (observed) is also
consistent with the Act. The Commission notes that Users are currently
able to cancel orders and quotes prior to RTH starting at 7:30 a.m. for
RTH Classes. The Commission believes that this proposed change should
provide Users with additional flexibility to manage their GTC or GTD
orders.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\63\ that the proposed rule change (SR-CBOE-2021-068) be, and
hereby is, approved.
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\63\ Id.
\64\ 17 CFR 200.30-3(a)(57) and (58).
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\64\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-03650 Filed 2-18-22; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on February 22, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.