Notice2025-05961

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of a Proposed Rule Change To List P.M.-Settled Series of Options on the S&P 500 Equal Weight Index

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Published
April 8, 2025

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 90 Issue 66 (Tuesday, April 8, 2025)</title>
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[Federal Register Volume 90, Number 66 (Tuesday, April 8, 2025)]
[Notices]
[Pages 15189-15193]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05961]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-102752; File No. SR-CBOE-2025-022]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing of a Proposed Rule Change To List P.M.-Settled Series of Options 
on the S&P 500 Equal Weight Index

April 2, 2025.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on March 20, 2025, 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 and 
II 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend certain rules to permit the Exchange 
to list and trade options with p.m.-settlement that overlie the S&P 500 
Equal Weight Index (based on both the full value and one-tenth the 
value of the index) (``SPEQF options'' and ``SPEQX options,'' 
respectively).
    The text of the proposed rule change is available on the Exchange's 
website (<a href="http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx">http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx</a>), 
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.

[[Page 15190]]

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

1. Purpose
    The purpose of this proposed rule change is to amend certain rules 
to permit the Exchange to list and trade SPEQF and SPEQX options that 
are p.m.-settled. Specifically, the Exchange proposes to (1) amend Rule 
4.13, Interpretation and Policy .13 to permit the listing of P.M.-
settled \4\ SPEQF and SPEQX options that expire on the standard third 
Friday-of-the-month (``Expiration Friday''); \5\ (2) amend Rule 4.13(c) 
to permit the Exchange to open for trading Quarterly Index Expirations 
(``QIXs'') on SPEQF and SPEQX options; \6\ and (3) permit the Exchange 
to list SPEQF and SPEQX options with Nonstandard Expirations pursuant 
to Rule 4.13(e).\7\
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    \4\ An option with P.M.-settlement has its exercise settlement 
value derived from the closing prices on the expiration date.
    \5\ Rule 4.13, Interpretation and Policy .13 currently permits 
the Exchange to list P.M.-settled SPX and XSP options, as well as 
options on the Russell 2000 Index (``RUT options'') and the Mini-
Russell 2000 Index (``MRUT'' options), that expire on Expiration 
Fridays.
    \6\ QIXs are index option contracts that expire on the last 
business day of a calendar quarter. Rule 4.13(c) currently permits 
the Exchange to list QIXs for SPX and XSP options, as well as RUT 
options, MRUT options, and options on the S&P 100 Index.
    \7\ Rule 4.13(e) permits the Exchange to open for trading Weekly 
Expirations on any broad-based index eligible for standard options 
trading on any Monday, Tuesday, Wednesday, Thursday, or Friday 
(other than Expiration Fridays or days that coincide with an end-of-
month (``EOM'') expiration) or EOM expirations on any broad-based 
index eligible for standard options trading. While the Exchange 
believes it has the authority under this rule to list SPEQF and 
SPEQX options with Nonstandard Expirations, Commission staff 
informed the Exchange that it must submit a rule filing pursuant to 
Section 19(b)(2) under the Act before it may list Nonstandard 
Expirations for these classes.
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    The S&P 500 Equal Weight Index is the equal-dollar weighted version 
of the S&P 500 Index (which is capitalization-weighted). The S&P 500 
Index measures the performance of approximately 500 of the largest 
capitalization stocks in the United States. The constituents of the S&P 
500 Equal Weight Index are the same as those of the S&P 500 Index; the 
difference between the two indexes is that each constituent is 
allocated a fixed weight with respect to the S&P 500 Equal Weight Index 
rather than a capitalization weight as is the case for the S&P 500 
Index. Therefore, the index that underlies options on the S&P 500 Index 
(``SPX options''), as well as the Mini-S&P 500 Index (``XSP options''), 
for which the Exchange may currently list p.m.-settled options on 
Expiration Fridays, with Nonstandard Expirations, and as QIXs, is 
comprised of the same constituents as the underlying index for SPEQF 
and SPEQX options.
    The Exchange currently is permitted to list p.m.-settled series 
that expire on Expiration Friday, with Nonstandard Expirations, and 
QIXs for several different broad-based index options, including SPX and 
XSP options. This proposed rule change would permit the Exchange to 
list p.m.-settled SPEQF and SPEQX options that expire on Expiration 
Fridays, with Nonstandard Expirations, and QIXs. The availability of 
p.m.-settled SPEQF and SPEQX options with these various expirations 
will provide market participants with opportunities to trade those 
options in a manner more aligned with specific timing needs and more 
effectively tailor their investment and hedging strategies related to 
the S&P 500 Equal Weight Index and manage their portfolios. In 
particular, the proposed rule change will allow market participants to 
roll their positions in SPEQF and SPEQX options with regularity and 
more precision, to spread risk across more trading days, and 
incorporate daily, weekly, monthly, and quarterly changes in the 
markets, which may reduce the premium cost of hedging.
    In connection with the proposed change to Rule 4.13, Interpretation 
.13, Exchange also proposes to amend Rule 5.1, which governs trading 
days and hours, in conjunction with the proposed addition of SPEQF and 
SPEQX p.m.-settled options that expire on Expiration Friday. Rule 
5.1(b)(2)(C) currently provides that on their last trading day, Regular 
Trading Hours for expiring p.m.-settled SPX, XSP, RUT, MRUT options, as 
well as Index Options with Nonstandard Expirations and QIXs, may be 
effected on the Exchange between 9:30 a.m. and 4:00 p.m. Eastern Time 
\8\ (as opposed to the 9:30 a.m. to 4:15 p.m. Regular Trading Hours for 
options with those expirations that are non-expiring). The proposed 
rule change amends Rule 5.1(b)(2)(C) to include SPEQF and SPEQX P.M.-
settled options that expire on Expiration Friday.\9\ The primary 
listing markets for the component securities that the S&P 500 Equal 
Weight Index close trading in those securities at 4:00 p.m., just as 
the primary listing markets for the component securities that comprise 
the S&P 500 and Russell 2000 Indexes close trading at 4:00 p.m. (as 
noted above, the components of the S&P 500 Index are identical to the 
components of the S&P 500 Equal Weight Index). The primary listing 
exchanges for the component securities disseminate closing prices for 
the component securities, which are used to calculate the exercise 
settlement value of broad-based indexes on which the Exchange lists 
options. The Exchange believes that, under normal trading 
circumstances, the primary listing markets have sufficient bandwidth to 
prevent any data queuing that may cause any trades that are executed 
prior to the closing time from being reported after 4:00 p.m. If 
trading in expiring SPEQF and SPEQX p.m.-settled options that expire on 
Expiration Fridays continued an additional fifteen minutes until 4:15 
p.m. on their last trading day, these expiring options would be trading 
after the settlement index value for those expiring options was 
calculated.\10\ Therefore, in order to mitigate potential investor 
confusion and the potential for increased costs to investors as a 
result of potential pricing divergence at the end of the trading day, 
the Exchange believes that it is appropriate to cease trading in the 
expiring SPEQF and SPEQX p.m.-settled options that expire on Expiration 
Fridays at 4:00 p.m., as it already does for expiring p.m.-settled SPX 
and XSP options (as well as RUT and MRUT options) that expire on 
Expiration Fridays and for expiring broad-based indexes with 
Nonstandard Expirations (which are p.m.-settled) for the same 
aforementioned reasons.\11\ The

[[Page 15191]]

Exchange does not believe that the proposed rule change will impact 
volatility on the underlying cash markets comprising broad-based 
indexes at the close on Expiration Fridays, as it already closes 
trading on the last trading day for expiring p.m.-settled options at 
4:00 p.m. (including SPX and XSP options, which have the same 
underlying cash markets as those of SPEQF and SPEQX options), which the 
Exchange does not believe has had an adverse impact on fair and orderly 
markets on Expiration Fridays for the underlying stocks comprising the 
corresponding indexes.\12\
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    \8\ See Rule 1.6, which states that unless otherwise specified, 
all times in the Rules are Eastern Time.
    \9\ As noted above, Rule 5.1(b)(2)(C) already applies to p.m.-
settled series of SPEQF and SPEQX options with Nonstandard 
Operations and QIXs.
    \10\ Further, the Exchange expects that SPEQF and SPEQX p.m.-
settled options (as the Exchange understands is the case for P.M.-
settled SPX, XSP, RUT, and MRUT options that expire on Expiration 
Friday and all broad-based index options with Nonstandard 
Expirations, QIXs, and other p.m.-settled options) will typically be 
priced in the market based on corresponding futures values. If 
trading in expiring SPEQF and SPEQX p.m.-settled options that expire 
on Expiration Friday continued until 4:15 p.m. on their last trading 
day, these expiring options could not be priced on corresponding 
futures values but rather would have to be priced on the known cash 
value. At the same time, the prices of non-expiring SPEQF and SPEQX 
p.m.-settled options series that expire on a future Expiration 
Friday would continue to move and likely be priced in response to 
changes in corresponding futures prices. As a result, a potential 
pricing divergence could occur between 4:00 p.m. and 4:15 p.m. on 
the final trading day in expiring SPEQF and SPEQX p.m.-settled 
options that expire on Expiration Friday (e.g., a switch from 
pricing off of futures to cash). The Exchange understands that the 
switch from pricing off of futures to cash can be a difficult and 
risky crossover for liquidity providers. As a result, if expiring 
p.m.-settled contracts closed at 4:15 p.m., Market-Makers may react 
by widening spreads in order to compensate for the additional risk.
    \11\ See Securities Exchange Act Release Nos. 68888 (February 8, 
2013), 78 FR 10668 (February 14, 2013) (SR-CBOE-2012-120) (``SPXPM 
Pilot Approval Order''); 70087 (July 31, 2013), 78 FR 47809 (August 
6, 2013) (SR-CBOE-2013-055) (``XSPPM Pilot Approval Order''); 91067 
(February 5, 2021), 86 FR 9108 (February 11, 2021) (SR-CBOE-2020-
116) (``MRUTPM Pilot Approval Order''); and 101197 (September 26, 
2024), 89 FR 20291 (October 2, 2024) (SR-CBOE-2024-034) (``RUT Pilot 
Approval Order'').
    \12\ See Securities Exchange Act Release Nos. 98454 (September 
20, 2023), 88 FR 66103 (September 26, 2023) (SR-CBOE-2023-005) 
(``SPXPM Permanent Approval Order''); and 98455 (September 20, 
2023), 88 FR 66073 (September 26, 2023) (SR-CBOE-2023-019) (``XSPPM 
and MRUTPM Permanent Approval Order'').
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    The Exchange notes, as is the case for other p.m.-settled options, 
that SPEQF and SPEQX options will be aggregated with all other option 
contracts for those options for purposes of determining compliance with 
the applicable position (and exercise) limit, as well as determining 
position limit reporting requirements.\13\
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    \13\ See Rules 8.31(b), 8.35(b) and (d), and 8.42(b) and (g).
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    The Exchange has analyzed its capacity and represents that it 
believes the Exchange has the necessary systems capacity to handle the 
additional traffic associated with the listing of new series that would 
result from the introduction of the SPEQF and SPEQX options up to the 
proposed number of possible p.m.-settled expirations. The Options Price 
Reporting Authority (``OPRA'') also informed the Exchange it believes 
it has the necessary systems capacity to handle the additional traffic 
associated with the listing of new series that would result from this 
proposed rule change. Because the proposal is limited to p.m.-settled 
series with respect to two classes, the Exchange believes any 
additional traffic that would be generated from the introduction of 
p.m.-settled SPEQF and SPEQX options with the permissible expirations 
would be manageable.
    The S&P 500 Equal Weight Index consists of the same components as 
the S&P 500 Index, as noted above. Because of the relationship between 
the S&P 500 Equal Weight Index and the S&P 500 Index, both of which 
market participants may use as hedging vehicles to meet their 
investment needs in connection with S&P 500 Index-related products and 
cash positions, the Exchange believes it is appropriate to permit the 
same expirations and settlement for SPEQF and SPEQX options as SPX and 
XSP options. The Exchange understands that investors often use S&P 500 
Index-related products to diversify their portfolios and benefit from 
market trends. The Exchange believes that investors will benefit from 
the availability of p.m.-settled SPEQF and SPEQX options, as it will 
expand investing tools offering exposure to the U.S. equities market.
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.\14\ Specifically, the Exchange believes the proposed rule change 
is consistent with the Section 6(b)(5) \15\ 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) \16\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
    \16\ Id.
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    In particular, 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 and protect investors, because it 
will provide investors with additional means for additional index 
options to manage their risk exposures and carry out their investment 
objectives with more flexibility. By offering SPEQF and SPEQX p.m.-
settled options that expire on Expiration Fridays, with Nonstandard 
Expirations, and QIXs, the proposed rule change will allow market 
participants to purchase options on additional indexes available for 
trading on the Exchange in a manner more aligned with specific timing 
needs and more effectively tailor their investment and hedging 
strategies related to the S&P 500 Equal Weight Index and manage their 
portfolios. In particular, the proposed rule change will allow market 
participants to roll their positions in SPEQF and SPEQX options with 
more regularity and precision, to spread risk across more trading days, 
and to incorporate daily, weekly, monthly, and quarterly changes in the 
markets, which may reduce the premium cost of hedging.
    The Exchange further 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 will permit the Exchange to make 
available to investors series with the same expirations and settlement 
in SPEQF and SPEQX options as are available for SPX and XSP options. As 
noted above, the constituent stocks of the S&P 500 Index are the exact 
same as the constituent stocks of the S&P 500 Equal Weight Index. 
However, the Exchange believes that SPEQF and SPEQX options are 
designed to provide different, additional opportunities for investors 
to hedge the market risk associated with this index and to gain 
directional exposure to the index by listing options directly on this 
index. The U.S. equity markets have experienced increased levels of 
concentration in recent years. SPEQF and SPEQX options provide market 
participants with alternative tools to manage their risk and diversify 
their exposure to the stocks comprising the S&P 500 Index. 
Specifically, these options permit market participants to gain broad 
exposure to these stocks using options that would be less impacted by a 
shift in concentration and market momentum. Because capitalization-
weighted indexes such as the S&P 500 Index are more impacted by larger 
capitalized stocks, options overlying an equal-weighted index (such as 
the S&P 500 Equal Weight Index) would permit investors to hedge against 
potential swings in the largest stocks comprising the S&P 500 Index 
while maintaining the ability to hedge across the entire span of S&P 
500 constituent securities. The Exchange believes the significant 
liquidity of the components of the S&P 500 Equal Weight Index can 
withstand any additional trading as a result of listing options on an 
index comprised of components that also comprise other indexes 
underlying listed options (including unwinding of options positions 
into underlying stock positions). The proposed rule change

[[Page 15192]]

will provide market participants looking to gain broad exposure to the 
stocks underlying the S&P 500 Index in a manner less impacted by a 
shift in concentration and market momentum with hedging tools with the 
same level of precision currently available to market participants that 
look to gain broad exposure to these stocks more impacted by the stocks 
with largest capitalization. As a result, market participants will have 
greater trading opportunities, regardless of in which index option 
market they participate.
    The Exchange initially listed certain options that were p.m.-
settled, including SPX and XSP options, that expire on Expiration 
Fridays and with Nonstandard Expirations pursuant to pilot 
programs,\17\ so the Commission could monitor the impact of p.m.-
settlement of cash-settled index derivatives on the underlying cash 
markets. When permanently approving these programs, the Commission 
recognized that listing p.m.-settled SPX and XSP options that expire on 
Expiration Fridays and with Nonstandard Expirations were consistent 
with the Act.\18\ The Commission noted that these p.m.-settled index 
options had ``benefitted investors and other market participants by 
providing more flexible trading and hedging opportunities while also 
having no disruptive impact on the market.'' \19\ The Exchange believes 
p.m.-settled SPEQF and SPEQX options will provide the same benefits to 
investors and other market participants with respect to these products. 
As noted above, the S&P 500 Equal Weight Index is comprised of the same 
components as the S&P 500 Index (which underlies SPX and XSP options). 
While the Commission's prior determination was based on data specific 
to SPX options, the Exchange believes it is appropriate to extrapolate 
the data to apply to p.m.-settled SPEQF and SPEQX options with the same 
expirations. The Commission agreed it was appropriate to similarly 
extrapolate this data for another broad-based index unrelated to the 
S&P 500 Index (specifically options on the full- and reduced-value of 
the Russell 2000 Index).\20\ Therefore, the Exchange believes 
extrapolating the data results to an index comprised of the same 
components is more than appropriate, as the Commission has already 
considered the impact of p.m.-settled options on futures overlying an 
index with the same components, another index with the same components, 
and the exact index components, concluding p.m.-settled options had 
minimal economic impact on that future, index, and constituents.\21\ 
Overall, the Commission concluded that the ``analysis of pilot data did 
not identify any significant economic impact on the underlying 
component securities surrounding the close as a result of expiring 
p.m.-settled options, nor did it indicate a deterioration in market 
quality . . . for an existing product when a new p.m.-settled 
expiration was introduced. Further significant changes in closing 
procedures in the decades since index options moved to a.m. settlement 
may also serve to mitigate the potential impact of p.m.-settled index 
options on the underlying cash markets.'' \22\ The Exchange has 
identified no reason why the difference in weighting of the S&P 500 
Index and the S&P 500 Equal Weight Index would cause p.m.-settled 
options overlying the S&P 500 Equal Weight Index to have a measurable 
impact on the same underlying cash markets when p.m.-settled options 
overlying the S&P 500 Index did not. Therefore, the Exchange believes 
permitting p.m.-settled series of SPEQF and SPEQX options will offer 
investors the same opportunities with the same lack of impact on the 
market and the component securities as p.m.-settled SPX and XSP 
options.
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    \17\ While QIXs were not part of these pilot programs, we 
believe any conclusions applicable to Nonstandard Expirations, which 
include EOMs, would apply to QIXs, as the last calendar days of 
quarters represent a subset of the last calendar days of months.
    \18\ See SPXPM and XSPPM Pilot Approval Orders (the Commission 
also recognized that these risks may have been mitigated given 
enhanced closing procedures in use in the primary equity markets); 
SPXPM and XSPPM and MRUTPM Permanent Approval Orders; and Securities 
Exchange Act Release No. 98456 (September 20, 2023), 88 FR 66091 
(September 26, 2023) (SR-CBOE-2023-020) (``Nonstandard Permanent 
Approval Order'').
    \19\ See SPXPM Permanent Approval Order at 66106; XSPPM and 
MRUTPM Permanent Approval Order at 66076; and Nonstandard Approval 
Order at 66094 (citing data the Commission reviewed in connection 
with the pilot programs).
    \20\ See XSPPM and MRUTPM Permanent Approval at n. 31; and 
Nonstandard Permanent Approval Order at n. 37 (at the time of that 
approval order, the Exchange had listed Nonstandard Expirations for 
RUT and MRUT options).
    \21\ See XSPPM and MRUTPM Permanent Approval at 66075; and 
Nonstandard Permanent Approval Order at 66093-66094.
    \22\ See XSPPM and MRUTPM Permanent Approval at 66076; and 
Nonstandard Permanent Approval Order at 66094.
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    The Exchange further believes the proposed rule change will remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and protect investors, because it will 
provide investors with additional means for additional index options to 
manage their risk exposures and carry out their investment objectives. 
By offering SPEQF and SPEQX p.m.-settled options that expire on 
Expiration Fridays, with Nonstandard Expirations, and QIXs, the 
proposed rule change will allow market participants to purchase options 
on an additional index option available for trading on the Exchange in 
a manner more aligned with specific timing needs and more effectively 
tailor their investment and hedging strategies related to the S&P 500 
Equal Weight Index and manage their portfolios. In particular, the 
proposed rule change will allow market participants to roll their 
positions in SPEQF and SPEQX options with regularity, thus with more 
precision, to spread risk across trading days, and to incorporate 
daily, weekly, monthly, and quarterly changes in the markets, which may 
reduce the premium cost of hedging.
    In addition, the Exchange believes that the proposal to end trading 
at 4:00 p.m. on the last trading day for transactions in expiring SPEQF 
and SPEQX P.M.-settled options that expire on Expiration Fridays will 
prevent continued trading on a product after the exercise settlement 
value has been fixed, thereby mitigating potential investor confusion 
and the potential for increased costs to investors as a result of 
potential pricing divergence at the end of the trading day. This is 
consistent with the trading hours on the last trading day for 
transactions in other p.m.-settled options, including SPX and XSP 
options.
    The Exchange represents that it has the necessary systems capacity 
to support the new option series given these proposed specifications. 
The Exchange believes that its existing surveillance and reporting 
safeguards (including with respect to p.m.-settled index option series) 
are designed to deter and detect possible manipulative behavior which 
might arise from listing and trading p.m.-settled SPEQF and SPEQX 
options. The Exchange further notes that current Exchange Rules that 
apply to the trading of other p.m.-settled index options traded on the 
Exchange, such as SPX and XSP options, would also apply to the trading 
of p.m.-settled SPEQF and SPEQX options, such as, for example, Exchange 
Rules governing customer accounts, margin requirements, position 
limits, and trading halt procedures.

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 the proposed

[[Page 15193]]

rule change will impose any burden on intramarket competition that is 
not necessary or appropriate in furtherance of the purposes of the Act, 
because p.m.-settled SPEQF and SPEQX options that expire on Expiration 
Fridays, with Nonstandard Expirations, and QIXs will be equally 
available to all market participants via Cboe Trading Permit Holders 
who wish to trade such options. Additionally, the proposed trading 
hours for expiring options on their expiration dates will be the same 
for all market participants. The Exchange does not believe 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 p.m.-settlement with these expirations (and the trading hours 
for expiring options on their expiration dates) are consistent with 
those of similar index products, such as SPX and XSP options (which 
overlie an index comprised of the same components) and competitive 
products.\23\ Additionally, options on equity options, including 
options on certain ETFs that track the S&P 500 Index and the S&P 500 
Equal Weight Index, are p.m.-settled. To the extent that the advent of 
p.m.-settled SPEQF and SPEQX options trading on the Exchange makes the 
Exchange a more attractive marketplace to market participants at other 
exchanges, such market participants are free to elect to become market 
participants on the Exchange.
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    \23\ See, e.g., Nasdaq PHLX, LLC Options 4A, Section 12(a)(6) 
(permitting P.M.-settlement for options on the Nasdaq-100 and 
Nasdaq-100 Micro Indexes that expire on Expiration Fridays).
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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 written comments on the 
proposed rule change.

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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission shall: (a) by order approve 
or disapprove such proposed rule change, or (b) institute proceedings 
to determine whether the proposed rule change should be approved or 
disapproved.

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

    <bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#e290978e87cf818d8f8f878c9691a2918781cc858d94"><span class="__cf_email__" data-cfemail="e99b9c858cc48a8684848c879d9aa99a8c8ac78e869f">[email&#160;protected]</span></a>. Please include 
file number SR-CBOE-2025-022 on the subject line.

Paper Comments

    <bullet> 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-2025-022. 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 (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). 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-2025-022 and should be 
submitted on or before April 29, 2025.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-05961 Filed 4-7-25; 8:45 am]
BILLING CODE 8011-01-P


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