Notice2025-18259
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, To Add P.M.-Settled Options on the Cboe Bitcoin U.S. ETF Index and the Mini-Cboe Bitcoin U.S. ETF Index With Third Friday Expirations, Nonstandard Expirations, and Quarterly Index Expirations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 22, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 181 (Monday, September 22, 2025)</title>
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[Federal Register Volume 90, Number 181 (Monday, September 22, 2025)]
[Notices]
[Pages 45431-45435]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18259]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103997; File No. SR-CBOE-2025-004]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing of Amendment No. 2 and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendment No. 2, To Add P.M.-
Settled Options on the Cboe Bitcoin U.S. ETF Index and the Mini-Cboe
Bitcoin U.S. ETF Index With Third Friday Expirations, Nonstandard
Expirations, and Quarterly Index Expirations
September 17, 2025.
I. Introduction
On February 14, 2025, Cboe Exchange, Inc. (``Cboe'' or
``Exchange'') 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 add p.m.-settled options on the Cboe Bitcoin
U.S. ETF Index (``CBTX'') and the Mini-Cboe Bitcoin U.S. ETF Index
(``MBTX'') with third Friday expirations, nonstandard expirations, and
quarterly index expirations. The proposed rule change was published for
comment in the Federal Register on March 5, 2025.\3\ On
[[Page 45432]]
April 16, 2025, the Commission designated a longer period within which
to take action on the proposed rule change.\4\ On April 22, 2025, the
Exchange filed Amendment No. 1 to the proposed rule change.\5\
Amendment No. 1 superseded the original proposed rule change in its
entirety. On June 2, 2025, the Commission published for comment the
proposed rule change, as modified by Amendment No. 1, and instituted
proceedings under Section 19(b)(2)(B) of the Act \6\ to determine
whether to approve or disapprove the proposed rule change, as modified
by Amendment No. 1.\7\ On July 23, 2025, the Exchange filed Amendment
No. 2 to the proposed rule change, which supersedes the proposed rule
change, as modified by Amendment No. 1, in its entirety.\8\ On August
28, 2025, the Commission designated a longer period for Commission
action on the proposed rule change, as modified by Amendment No. 2.\9\
The Commission is publishing this notice to solicit comments on
Amendment No. 2 from interested persons, and is approving the proposed
rule change, as modified by Amendment No. 2, on an accelerated basis.
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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. 102502 (Feb. 27,
2025), 90 FR 11343 (Mar. 5, 2025). The Commission did not receive
any comments on the proposal.
\4\ See Securities Exchange Act Release No. 102870 (Apr. 16,
2025), 90 FR 16894 (Apr. 22, 2025).
\5\ The full text of Amendment No. 1 is available on the
Commission's website at <a href="https://www.sec.gov/comments/sr-cboe-2025-004/srcboe2025004.htm">https://www.sec.gov/comments/sr-cboe-2025-004/srcboe2025004.htm</a>. Amendment No. 1 provided additional support
for the proposal and did not change the proposed rules of the
original filing.
\6\ 15 U.S.C. 78s(b)(2)(B).
\7\ See Securities Exchange Act Release No. 103168 (June 2,
2025), 90 FR 24180 (June 6, 2025).
\8\ Amendment No. 2 includes the changes made by Amendment No. 1
and also amends Rule 4.13, Interpretation and Policy .13, to add the
defined term ``P.M.-Settled Third Friday Index Options'', and
modifies Rule 8.32(f) to add that positions in QIXs (defined below)
and P.M.-Settled Third Friday Index Options will also be aggregated
with positions in options contracts in the same index class.
Amendment No. 2 is available at: <a href="https://www.sec.gov/comments/sr-cboe-2025-004/srcboe2025004-631167-1867334.pdf">https://www.sec.gov/comments/sr-cboe-2025-004/srcboe2025004-631167-1867334.pdf</a>.
\9\ See Securities Exchange Act Release No. 103804 (Aug. 28,
2025), 90 FR 42645 (Sept. 3, 2025). The Commission designated
October 31, 2025, as the date by which the Commission shall approve
or disapprove the proposed rule change, as modified by Amendment No.
2.
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II. Description of the Proposal, as Modified by Amendment No. 2
<SUP>10</SUP>
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\10\ For a full description of the proposed rule change, refer
to Amendment No. 2, supra note 8.
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The Exchange proposes to amend Rules 4.13 (Series of Index
Options), 5.1 (Trading Days and Hours), and 8.32 (Position Limits for
Industry Index Options). First, the Exchange proposes to amend Rule
4.13(e), which governs its Nonstandard Expirations Program, to permit
p.m.-settled options on CBTX and MBTX, which are narrow-based index
options, that expire on: (1) any Monday, Tuesday, Wednesday, Thursday,
or Friday (other than the third Friday-of-the-month (``Expiration
Friday'') or on days that coincide with an end-of-month expiration)
(``Weekly Expirations'') and (2) the last trading day of the month
(``EOMs''). The Exchange also proposes to amend Rule 4.13(c), which
governs quarterly index expirations, to add CBTX and MBTX options to
the list of options in Rule 4.13(c) that are eligible for quarterly
index expirations (``QIXs''). Further, the Exchange proposes to amend
Rule 4.13, Interpretation and Policy .13, to permit the listing of
p.m.-settled CBTX and MBTX options that expire on Expiration Fridays.
In addition, the Exchange proposes to amend Rule 5.1(b)(2)(C) to
provide that, on their last trading day, transactions in expiring CBTX
and MBTX p.m.-settled options that expire on Expiration Fridays may be
effected on the Exchange between 9:30 a.m. and 4:00 p.m. Eastern Time.
Finally, the Exchange proposes to amend Rule 8.32(f) to provide
that positions in Nonstandard Expirations Program series, QIXs, and
p.m.-settled options listed pursuant to Rule 4.13, Interpretation and
Policy .13 will be aggregated with other options contracts in the same
index class for purposes of position limits.
Amendments to Rule 4.13
Under the Exchange's Nonstandard Expirations Program, the Exchange
can currently list p.m.-settled Weekly Expirations and EOM expirations
on any broad-based index eligible for standard options trading.\11\ New
series in Weekly Expirations and EOM expirations may be added up to and
including on the expiration date for expiring Weekly Expirations or EOM
expirations.\12\ The Exchange proposes to expand the availability of
Weekly Expirations and EOM expirations to CBTX and MBTX options, which
are narrow-based index options that are eligible for standard options
trading.\13\ The Exchange states that the Nonstandard Expirations
Program will apply to CBTX and MBTX options in the same manner as it
currently applies to broad-based index options.\14\ Weekly Expirations
and EOM expirations are subject to all provisions of Rule 4.13 and
treated the same as options on the same underlying index that expire on
Expiration Friday; provided, however, that Weekly Expirations and EOM
expirations are p.m.-settled, and new series in Weekly Expirations and
EOM expirations may be added up to and including on the expiration date
for an expiring Weekly Expiration or EOM expiration.\15\
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\11\ See Amendment No. 2, supra note 8, at 4.
\12\ See id. at 5.
\13\ See id. at 4. The Exchange states that these options are
already eligible for the Monthly Options Series program pursuant to
Rule 4.13(a)(2)(C), which permits p.m.-settled options that expire
on the last trading day of the month (the same as EOM expirations).
See id. at 4, n.3.
\14\ See id. at 4.
\15\ See id. at 4-5.
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The maximum number of expirations that may be listed for each
Weekly Expiration in a given class is the same as the maximum number of
expirations permitted in Rule 4.13(a)(2) for standard options on the
same index.\16\ Weekly Expirations need not be for consecutive Monday,
Tuesday, Wednesday, Thursday, or Friday expirations as applicable;
however, the expiration date of a nonconsecutive expiration may not be
beyond what would be considered the last expiration date if the maximum
number of expirations were listed consecutively.\17\ Weekly Expirations
that are first listed in a given class may expire up to four weeks from
the actual listing date.\18\
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\16\ See id. at 5. Currently, under Rule 4.13(a)(2), the
Exchange may list up to six standard monthly expirations on CBTX and
MBTX. See Cboe Rule 4.13(a)(2). The Exchange also proposes to delete
the phrase ``broad-based'' in several places in Rule 4.13(e), as the
proposal would result in the provisions within that rule applying to
indexes that are not broad-based. The Exchange states that it is not
proposing to expand the Nonstandard Expirations Program to narrow-
based indexes generally, but rather only to MBTX and CBTX options.
See id. at 5, n.4.
\17\ See id. at 5.
\18\ See id.
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Similar to Weekly Expirations, the maximum number of expirations
that may be listed in a given class for each EOM expiration is the same
as the maximum number of expirations permitted in Rule 4.13(a)(2) for
standard options on the same index.\19\ EOM expirations need not be for
consecutive end of month expirations; however, the expiration date of a
non-consecutive expiration may not be beyond what would be considered
the last expiration date if the maximum number of expirations were
listed consecutively.\20\ EOM expirations that are first listed in a
given class may expire up to four weeks from the actual listing
date.\21\ If the Exchange lists EOM expirations and Weekly Expirations
in a given class, the Exchange will list an EOM instead of a Weekly
Expiration that expires on the same day in such class.\22\ Other
[[Page 45433]]
expirations in the same class are not counted as part of the maximum
number of Weekly Expirations or EOM expirations for an applicable index
class.\23\
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\19\ See id.
\20\ See id.
\21\ See id.
\22\ See id. at 5-6.
\23\ See id. at 6.
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The Exchange also proposes to amend Rule 4.13(c) to add CBTX and
MBTX options to the list of options in Rule 4.13(c) that are eligible
for the QIX program.\24\ The Exchange states that the QIX program will
apply to CBTX and MBTX options in the same manner as it currently
applies to the other options currently eligible for those
expirations.\25\ Under the QIX program, the Exchange may open up to
eight near-term quarterly expirations in a class.\26\ QIXs are subject
to all provisions of Rule 4.13 and treated the same as options on the
same underlying index that expire on Expiration Friday, except that
QIXs are p.m.-settled.\27\
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\24\ See id. QIXs are currently available for options on the S&P
100 Index, S&P 500 Index (``SPX options''), Mini-S&P 500 Index
(``XSP options''), the Russell 2000 Index (``RUT options''), and
Mini-Russell 2000 Index (``MRUT options''). Id.
\25\ See id. at 6-7.
\26\ See id. at 6.
\27\ See id. at 7. The Exchange states that CBTX and MBTX
options are currently eligible for the Quarterly Options Series
program which permits p.m.-settled options that expire on the last
trading day of the quarter (the same as QIXs). See id. at 6, n.5.
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Additionally, the Exchange proposes to amend Rule 4.13,
Interpretation and Policy .13, to permit the listing of p.m.-settled
CBTX and MBTX options that expire on Expiration Fridays.\28\ The
Exchange states that CBTX and MBTX options that are p.m.-settled and
expire on Expiration Fridays will be subject to all provisions of Rule
4.13 and treated the same as a.m.-settled CBTX and MBTX options, except
that they would be p.m.-settled.\29\ In combination with the proposed
Weekly Expirations for CBTX and MBTX options, this proposed change
would allow the Exchange to list p.m.-settled CBTX and MBTX options
with expirations every day of the week.\30\
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\28\ See id. at 7. Pursuant to Rule 4.13, Interpretation and
Policy .13, the Exchange is permitted to list p.m.-settled SPX
options, XSP options, RUT options, and MRUT options that expire on
Expiration Fridays. Amendment No. 2 amends Interpretation and Policy
.13, to define these expirations, as well as p.m.-settled CBTX and
MBTX that expire on Expiration Fridays, as proposed, as ``P.M.-
Settled Third Friday Index Options.''
\29\ See id. at 7.
\30\ See id.
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Amendment to Rule 5.1
The Exchange proposes to amend Rule 5.1(b)(2)(C) in conjunction
with the proposed addition of CBTX and MBTX options that are p.m.-
settled and expire on Expiration Friday.\31\ The Exchange states that
Rule 5.1(b)(2)(C) provides that on their last trading day, transactions
in index options with Nonstandard Expirations, QIXs, as well as
expiring p.m.-settled SPX, XSP, RUT, and MRUT options, may be effected
on the Exchange between 9:30 a.m. and 4:00 p.m. Eastern Time.\32\ The
proposed rule change amends Rule 5.1(b)(2)(C) to apply the provision to
p.m.-settled CBTX and MBTX options that expire on Expiration
Fridays.\33\
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\31\ See id.
\32\ Regular trading hours for non-expiring options are 9:30
a.m. to 4:15 p.m. See id. at 7-8.
\33\ See id. at 8.
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Amendment to Rule 8.32
The Exchange proposes to amend Rule 8.32(f) to provide that
positions in the Nonstandard Expirations Program series, QIXs, and
P.M.-Settled Third Friday Index Options will be aggregated with
positions in options contracts in the same index class.\34\ For
purposes of position limits, this proposed change would aggregate CBTX
and MBTX options positions in the Nonstandard Expirations Program, QIX
program, and with p.m.-settled Expiration Friday expirations with
positions in CBTX and MBTX options, respectively, that have other
expirations.\35\ This would be consistent with the treatment of
positions for purposes of position limits for other classes that
participate in the Nonstandard Expirations Program, QIX program, and
with p.m.-settled Expiration Friday expirations.\36\ The Exchange adds
that the exercise limits for index options (including CBTX and MBTX
options) are equivalent to the position limits that are set forth in
Rule 8.32.\37\ Therefore, the current position and exercise limits for
CBTX and MBTX options are 24,000 contracts (and may not be more than
31,500 without rule changes).\38\
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\34\ See id. at 12, n.13. Amendment No. 2 adds QIX and P.M.-
Settled Third Friday Index Options to Rule 8.32(f). The Exchange
explains that these series were inadvertently omitted from the rule
text. See id. at 3, 12, n.13.
\35\ See id. at 12, n.13.
\36\ See id. See also Cboe Rule 8.31(b).
\37\ See Amendment No. 2, supra note 8, at 12, n.13.
\38\ See id. See also Cboe Rules 8.32(a) and 8.42(b).
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In support of its proposal to amend the Nonstandard Expirations
Program to expand the availability of Weekly Expirations to options on
CBTX and MBTX, the Exchange states that it is currently permitted to
list Weekly Expirations on options on any broad-based index that are
eligible for standard trading under the Nonstandard Expirations Program
and that the Nonstandard Expirations Program will apply to CBTX and
MBTX options in the same manner.\39\ In support of its proposal to
permit the listing of p.m.-settled CBTX and MBTX options that expire on
Expiration Friday, the Exchange states that it currently lists
Expiration Friday p.m.-settled options on broad-based indexes SPX, XSP,
RUT and MRUT, and that p.m.-settled CBTX and MBTX options that expire
on Expiration Fridays would be subject to all provisions of Rule 4.13
and would be treated the same as a.m.-settled CBTX and MBTX options
except for being p.m.-settled.\40\ The Exchange states that the
addition of Weekly Expirations and p.m.-settled Expiration Friday
expirations for CBTX and MBTX options would allow market participants
``to purchase an option based on their needed timing and allow them to
tailor their investment or hedging needs more effectively'' \41\ as
well as ``more effectively manage overnight risk and trade out of their
positions up until the contract settles.'' \42\ Additionally, the
Exchange states that there is sufficient investor interest and demand
for these Weekly Expirations and Expiration Friday expirations.\43\
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\39\ See Amendment No. 2, supra note 8, at 4.
\40\ See id. at 7.
\41\ See id. at 10.
\42\ See id.
\43\ See id. at 11.
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The Exchange explains that its proposal to amend its Nonstandard
Expirations Program to expand the availability of EOM expirations to
options on CBTX and MBTX would be consistent with the Exchange's
Monthly Options Series program, which already permits the listing of
p.m.-settled options on CBTX and MBTX that expire on the last trading
day of the month.\44\ Similarly, the Exchange proposes to make CBTX and
MBTX options eligible for the QIX program and states that p.m.-settled
CBTX and MBTX options with expiration on the last trading day of the
quarter are already permitted under its Quarterly Options Series
program.\45\
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\44\ See id. at 4, n.3.
\45\ See id. at 4, n.5 and accompanying text.
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III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change, as modified by Amendment No. 2, is consistent with the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\46\ In
[[Page 45434]]
particular, the Commission finds that the proposed rule change, as
modified by Amendment No. 2, is consistent with Section 6(b)(5) of the
Act,\47\ which requires, among other things, that the Exchange's rules
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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\46\ In approving this proposed rule change, as modified by
Amendment No. 2, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
\47\ 15 U.S.C. 78f(b)(5).
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In evaluating whether this proposal is consistent with Section
6(b)(5), and, in particular, whether it is designed to prevent
fraudulent and manipulative acts and practices and to protect investors
and the public interest, the Commission considered the potential
impacts of p.m.-settled, cash-settled options on the underlying cash
equities markets, and in particular, the potential for added market
volatility and sharp price movements near the close on expiration days.
The Commission has had concerns about the adverse effects and impact of
p.m.-settlement upon market volatility and the operation of fair and
orderly markets on the underlying cash market at or near the close of
trading on expiration days.\48\ However, the Commission approved
proposals from several exchanges, including the Exchange, to
permanently establish programs permitting the listing and trading of
certain p.m.-settled broad-based index options.\49\ In approving these
proposals, the Commission reviewed data provided by the exchanges in
their filings, the exchanges' pilot data and reports, as well as an
analysis conducted at the direction of Staff from the Commission's
Division of Economic and Risk Analysis and concluded that analysis of
the 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.\50\ Further, the Commission stated that
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.\51\
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\48\ See Securities Exchange Act Release No. 65256 (Sept. 2,
2011), 76 FR 55969, at 55972 (Sept. 9, 2011) (SR-C2-2011-008) (Order
approving proposed rule change to establish a pilot program to list
and trade SPXPM options on the C2 Options Exchange, Inc.).
\49\ See e.g., Securities Exchange Act Release Nos. 98454 (Sept.
20, 2023), 88 FR 66103 (Sept. 26, 2023) (SR-CBOE-2023-005) (``SPXPM
Permanent Approval Order''); and 98455 (Sept. 20, 2023), 88 FR 66073
(Sept. 26, 2023) (SR-CBOE-2023-019) (``XSPPM and MRUTPM Permanent
Approval Order''). See also Securities Exchange Act Release Nos.
98450 (Sept. 20, 2023), 88 FR 66111 (Sept. 26, 2023) (SR-ISE-2023-
08) (Order Granting Approval of a Proposed Rule Change, as Modified
by Amendment No. 1, to Make Permanent Certain P.M.-Settled Pilots)
(``ISE Pilots Permanent Approval Order''); and 98451 (Sept. 20,
2023), 88 FR 66088 (Sept. 26, 2023) (SR-PHLX-2023-07) (Order
approving a nonstandard expirations pilot program and p.m.-settled
XND options) (``Phlx Pilots Permanent Approval Order''). See also
Securities Exchange Act Release Nos. 98935 (Nov. 14, 2023), 88 FR
80792 (Nov. 20, 2023) (SR-ISE-2023-20) (Order approving the listing
and trading of p.m.-settled Nasdaq-100 Index Options with a third
Friday-of-the-month expiration) (``NDXPM Approval Order'').
\50\ See e.g., XSPPM and MRUTPM Permanent Approval Order, 88 FR
at 66075-76.
\51\ See id.
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In support of its proposal, the Exchange states that it does not
believe its proposal would adversely impact fair and orderly markets on
expiration days.\52\ The Exchange explains that it has not experienced
any meaningful regulatory concerns, nor adverse impact on fair and
orderly markets, in connection with its Nonstandard Expirations
Program, Expiration Friday expirations, or QIX program, nor with the
listing of p.m.-settled CBTX and MBTX options in the Quarterly Options
Series and the Monthly Options Series, which, like the proposed QIXs
and EOM expirations, are p.m.-settled and expire on the last trading
day of the quarter and month, respectively.\53\
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\52\ See Amendment No. 2, supra note 8, at 14.
\53\ See id.
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Additionally, the Exchange states that p.m.-settlement is
appropriate for CBTX and MBTX options for several reasons. According to
the Exchange, the size of the markets of the underlying components,\54\
the weighting of the components, and the high correlation of these
components make it unlikely the proposal would result in material
impact on the component markets, the index value, or the broader
market.\55\ Further, the Exchange states that CBTX and MBTX options
trade within a complex where there are multiple other highly correlated
instruments that all hold bitcoin available for hedging--such as
options on the underlying components, shares of other exchange traded
products that hold bitcoin, and bitcoin futures, in addition to the
underlying components--and that this reduces the risk that listing
these options would strain liquidity providers or materially impact the
component markets, the index value, or the broader market.\56\
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\54\ According to the Exchange, as of April 15, 2025, the assets
under management of the index components range from $130 million to
$48 billion. See id. at 17, n.22. Further, according to the
Exchange, the indexes underlying CBTX and MBTX options satisfy the
generic listing criteria for narrow-based index options in Rule
4.10(b), which are designed to ensure that the trading markets for
the components are adequately capitalized and sufficiently liquid,
and that no one component dominates the index, thus minimizing the
potential for manipulation. See id. at 19.
\55\ See id. at 17.
\56\ See id.
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The proposals approved by the Commission permitted the listing and
trading of certain p.m.-settled broad-based index options.\57\ This
proposed rule change, as modified by Amendment No. 2, would permit the
listing and trading of p.m.-settled index options for CBTX and MBTX. In
evaluating the proposals permitting the listing and trading of other
p.m.-settled index options, the Commission evaluated the potential for
negative impacts on the underlying component securities of the indexes
and options market quality.\58\ As noted above, the index components
for CBTX and MBTX trade within a complex with multiple highly
correlated instruments available for hedging, including the index
components, options on the components, shares of other exchange-traded
products holding spot bitcoin, and bitcoin futures. Further, the
underlying components of the indexes are generally highly liquid and
closely correlated with one another. As a result, it would be unlikely
for p.m.-settled options on CBTX and MBTX to increase market and price
volatility in the underlying index components or in the CBTX and MBTX
options market.
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\57\ See e.g., SPXPM Permanent Approval Order; XSPPM and MRUTPM
Permanent Approval Order; ISE Pilots Permanent Approval Order; and
Phlx Pilots Permanent Approval Order. See also NDXPM Approval Order.
\58\ See e.g., SPXPM Permanent Approval Order, 88 FR at 66106.
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The Exchange's proposal to expand the Nonstandard Expirations
Program and the QIX program to CBTX and MBTX options, and make the
options eligible for p.m.-settled Expiration Friday expirations, is a
reasonably designed expansion of existing p.m.-settled index option
programs that may provide the investing public and other market
participants more flexible trading and hedging opportunities. Further,
the proposed change to Rule 8.32(f) would aggregate positions in CBTX
and MBTX options across expirations in the same class, which could
reduce the potential incentives to manipulate or disrupt the underlying
market to benefit the options position and would not allow the
maintenance of
[[Page 45435]]
significant open interest in the options.\59\ The Exchange also has a
surveillance program in place to monitor trading in the proposed p.m.-
settled options on CBTX and MBTX and systems capacity to support the
proposed new options series.\60\ The Commission expects the Exchange to
continue to monitor any potential risks from large p.m.-settled
positions and take appropriate action on a timely basis if warranted.
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\59\ See Amendment No. 2, supra note 8, at 12, n.13.
\60\ See id. at 11.
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For these reasons, the Commission finds that the proposed rule
change, as modified by Amendment No. 2, is consistent with Section
6(b)(5) of the Act \61\ and the rules and regulations thereunder
applicable to a national securities exchange.
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\61\ 15 U.S.C. 78f(b)(5).
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IV. Solicitation of Comments on Amendment No. 2 to the Proposed Rule
Change
Interested persons are invited to submit written data, views, and
arguments concerning whether Amendment No. 2 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#90e2e5fcf5bdf3fffdfdf5fee4e3d0e3f5f3bef7ffe6"><span class="__cf_email__" data-cfemail="7c0e091019511f1311111912080f3c0f191f521b130a">[email protected]</span></a>. Please include
file number SR-CBOE-2025-004 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-2025-004. 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 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-2025-004 and should be submitted on
or before October 14, 2025.
V. Accelerated Approval of the Proposed Rule Change, as Modified by
Amendment No. 2
The Commission finds good cause to approve the proposed rule
change, as modified by Amendment No. 2, prior to the thirtieth day
after the date of publication of notice of the filing of Amendment No.
2 in the Federal Register. In Amendment No. 2, the Exchange amends Rule
4.13, Interpretation and Policy .13, to add the defined term ``P.M.-
Settled Third Friday Index Options'', modifies Rule 8.32(f) to add that
positions in QIXs and P.M.-Settled Third Friday Index Options (which
include CBTX and MBTX) will be aggregated with positions in options
contracts in the same index class, and provides additional support for
the proposal. The changes to the proposal in Amendment No. 2 ensure
consistent treatment of positions in the proposed CBTX and MBTX QIXs
and p.m.-settled Expiration Friday options with other options in the
same index class and assist the Commission in evaluating the Exchange's
proposal and in determining that it is consistent with the Act.
Accordingly, the Commission finds good cause, pursuant to Section
19(b)(2) of the Act,\62\ to approve the proposed rule change, as
modified by Amendment No. 2, on an accelerated basis.
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\62\ 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
Act,\63\ that the proposed rule change (SR-CBOE-2025-004), as modified
by Amendment No. 2, be and hereby is, approved on an accelerated basis.
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\63\ Id.
By the Commission.
Stephanie J. Fouse,
Assistant Secretary.
[FR Doc. 2025-18259 Filed 9-19-25; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on September 22, 2025.
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