Notice2025-19445
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend Rule 5.1(c) (Global Trading Hours)
Primary source
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Published
October 3, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 190 (Friday, October 3, 2025)</title>
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[Federal Register Volume 90, Number 190 (Friday, October 3, 2025)]
[Notices]
[Pages 48091-48094]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-19445]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104160; File No. SR-CBOE-2025-079]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing of a Proposed Rule Change To Amend Rule 5.1(c) (Global Trading
Hours)
September 30, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 30, 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, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 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
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend Rule 5.1(c) (Global Trading Hours) to allow for trading of
multi-listed equity options that meet certain eligibility criteria
during Global Trading Hours (``GTH'') and to establish GTH sessions for
designated multi-listed equity options as 7:30 a.m. ET to 9:25 a.m. ET
and 4:00 p.m. ET to 4:15 p.m. ET or as permitted as a GTH session on
another exchange. The Exchange also proposes to make changes to
additional rules as necessary to support GTH trading for equity
options. The text of the proposed rule change is provided in Exhibit 5.
The text of the proposed rule change is also available on the
Commission's website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>), the
Exchange's website (<a href="https://www.cboe.com/us/options/regulation/rule_filings/bzx/">https://www.cboe.com/us/options/regulation/rule_filings/bzx/</a>), and at the principal office of the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 5.1(c) to allow for trading of
certain multi-listed equity options during GTH, establish specific
trading hours for GTH sessions during which such multi-listed equity
options may trade, and modify additional rules as necessary to support
trading of GTH in equity options.
By way of background, the Exchange currently offers three trading
sessions: \3\ Regular Trading Hours (``RTH''), Curb Trading Hours
(``Curb''), and GTH. Rule 5.1 sets forth the trading hours for the
Exchange's RTH, Curb, and GTH trading sessions. RTH for transactions in
equity options (including options on individual stocks, ETFs, ETNs, and
other securities) occurs from 9:30 a.m.\4\ to 4:00 p.m. Monday through
Friday as the normal business hours set forth by the primary market
trading the securities underlying the options, except for options on
ETFs, ETNs, Index Portfolio Shares, Index Portfolio Receipts, and Trust
Issued Receipts that the Exchange designates to remain open for trading
beyond 4:00 p.m. but in no case will the RTH session continue after
4:15 p.m.\5\ The Curb session is from 4:15 p.m. to 5:00 p.m., for
designated classes, Monday through Friday.\6\ The Exchange's Rules
provide that the Exchange may designate as eligible for trading during
GTH any exclusively listed index option designated for trading under
Chapter 4, Section B. Currently, options on S&P 500 Index (``SPX'') and
CBOE Volatility Index[supreg] (``VIX'') \7\ as well as Cboe Mini SPX
Index Options (``XSP'') are approved for trading during GTH.\8\ Trading
in GTH for index options occurs from 8:15 p.m. to 9:25 a.m. the next
day, Monday through Friday.\9\
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\3\ The term ``trading session'' means the hours during which
the Exchange is open for trading for Regular Trading Hours, Global
Trading Hours or Curb Trading Hours (each of which may referred to
as a trading session), each as set forth in Rule 5.1. Unless
otherwise specified in the Rules or the context otherwise indicates,
all Rules apply in the same manner during each trading session. See
Rule 1.1 (Definitions).
\4\ All times referenced herein are Eastern Time, unless
otherwise specifically noted.
\5\ See Rule 5.1(b)(1).
\6\ See Rule 5.1(d).
\7\ The Exchange intends to list options on Russell 2000 Index
(``RUT''), Mini-Russell 2000 Index (``MRUT''), and Cboe Magnificent
10 Index (``MGTN'') during GTH pursuant to rule changes that are
effective but not yet operative. See SR-CBOE-2025-070 (September 26,
2025) and SR-CBOE-2025-071 (September 26, 2025).
\8\ See Rule 5.1(c)(1).
\9\ See Rule 5.1(c).
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By way of further background, the Exchange originally adopted the
GTH trading session in 2014 due to global demand from investors to
trade SPX and VIX options as alternatives for hedging and other
investment purposes, particularly as a complementary investment tool to
VIX futures.\10\ In
[[Page 48092]]
response to customer demand for additional options to trade during the
GTH trading session for similar purposes, the Exchange designated XSP
options as eligible for trading during GTH.\11\
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\10\ See Securities Exchange Act Release No. 34-73017 (September
8, 2014), 79 FR 54758 (September 12, 2014) (SR-CBOE-2014-062).
\11\ See Securities Exchange Act Release No. 34-75914 (September
14, 2015), 80 FR 56522 (September 18, 2015) (SR-CBOE-2015-079).
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The Exchange believes customer demand now extends to trading equity
options outside of RTH. Consequently, the Exchange proposes to
designate equity options that meet certain criteria as eligible for
trading during GTH. The addition of certain equity options to GTH will
help align trading in such products to the expanded trading that now
occurs for the underlying securities and to keep pace with the
continuing internationalization of securities markets. As stated
previously, transactions in most options on equities may be made on the
Exchange during RTH between 9:30 a.m. through 4:00 p.m., which is in
alignment with the trading hours of the exchanges trading the stocks
underlying CBOE options. Although the time of RTH is consistent with
the regular trading hours of the other U.S. options exchanges and
regular trading hours of equity exchanges that underlying Cboe listed
options, many U.S. stock exchanges allow for trading products for
various periods of time outside of RTH.\12\
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\12\ See, e.g., Cboe BZX and EDGX Equities Trading Hours (Early
Trading Sessions occur from 4:00 a.m. to 8:00 a.m., Pre-Market
Trading Sessions occur from 8:00 a.m. to 9:30 a.m., and Post-Market
Sessions occur from 4:00 p.m. to 8:00 p.m.; see also, e.g., Trading
Hours for the Nasdaq Stock Markets (pre-market trading hours are
4:00 a.m. to 9:30 a.m. and after hours are from 4:00 p.m. to 8:00
p.m.).
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Securities trading has become a global industry, but investors
located outside of the United States may choose not to access U.S.
markets during hours of RTH. The Exchange believes there is global
demand from investors for options on equities for various investment
purposes. However, given that equity options trade during RTH only, it
is difficult for non-U.S. investors to take advantage of trading in
these options. Additionally, U.S. investors that trade in equities
outside of regular trading hours are unable to access the equities
options for hedging and other purposes as part of their investment
strategies during trading sessions outside of RTH. In response, the
proposed rule change amends Rules 5.1(c) to add equity options to the
type of product the Exchange has approved for trading on the Exchange
during GTH and establishes the specific hours such equity options may
trade in GTH.
The Exchange proposes to offer GTH trading in equity options that
meet certain criteria sessions occurring prior to the commencement of
RTH, from 7:30 a.m. to 9:25 a.m. Monday through Friday and, for equity
options that meet certain criteria and that are not options on ETFs,
ETNs, Index Portfolio Shares, Index Portfolio Receipts, and Trust
Issued Receipts that the Exchange has designated as eligible to remain
open for trading until 4:15 p.m., through a session occurring
immediately after RTH from 4:00 p.m. to 4:15 p.m. Monday through Friday
as GTH. These GTH sessions will allow market participants to engage in
the trading of designated equity options in conjunction with trading in
the underlying securities during these hours. However, since trading in
equity options in GTH is a new initiative, the Exchange proposes to
amend Rule 5.1(c) to limit the number of equity options classes that
may be designated for GTH at 100 option classes. The limit is intended
to allow the Exchange to monitor and assess the development and
functioning of GTH markets for equity options within a limited group of
equity options initially.
The Exchange further proposed to amend Rule 5.1(c) by establishing
criteria an option class must meet to be eligible for GTH trading in
new Rule 5.1(c)(2).\13\ Specifically, the Exchange may designate as
eligible for trading during GTH up to 100 actively traded multiply-
traded option classes for which (i) the option has an average daily
volume of 150,000 contracts, (ii) the underlying equity to the option
has a $50 billion market capitalization, and (iii) the underlying
equity to the option has an average daily trading volume of 10 million
shares. The Exchange believes these criteria will help ensure options
designated for trading in GTH will have sufficient demand and liquidity
to support a GTH market. Additionally, this criteria may be waived if,
during the three days following an underlying security's initial public
offering day, the underlying security has a market capitalization of at
least $3 billion based on upon the offering price of its initial public
offering (``IPO''), in which case options on the underlying security
may be listed and traded in GTH starting on or after the second
business day following the initial public offering day. If in the case
of an IPO, the Exchange waives the criteria to designate an equity
option class for GTH, such option class will be included against the
100 option class limit in Rule 5.1(c). The Exchange believes the
requirements established in Rule 5.1(c) will result in the eligibility
of equity option classes for GTH for option classes with the highest
anticipated demand.
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\13\ Existing Rule 5.1(c)(2)-(4) will be renumbered as Rule
5.1(c)(3)-(5).
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The Exchange may also designate as eligible for trading during
Global Trading Hours any equity option that is traded on another
exchange during GTH or any other extended trading hours session that is
not RTH or Curb. Any equity option designated by the Exchange as
eligible for GTH trading because the option is traded by another
exchange during GTH or other extended trading hour session that is not
RTH will not be included against the 100 option class limit in Rule
5.1(c). The Exchange believes exclusion of such equity options
initially traded in a GTH or other extended trading hours session from
the 100 option class limit is appropriate for competitive purposes
since such listings can indicate the continued expansion of equity
option trading outside of RTH. Additionally, this exclusion from the
100 option class limit is similar in structure to the rules for Short
Term Options Series which allow the Exchange to list additional option
classes selected by other exchanges under their short term option rules
and such selections are in addition to the 50 Short Term Option Series
classes that the Exchange may select.\14\
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\14\ See Rule 4.5(d)(1).
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Cboe recognizes that the proposed GTH sessions for equity options
is shorter than both the GTH session for index options and extended
trading hour sessions for equities. Whereas index options eligible for
GTH may trade between 8:15 p.m. to 9:25 a.m. the next day \15\ to align
with the near 24 hour trading of related futures contracts, extended
trading hours sessions for equities do not extend over that same
timeframe as the earliest available extended trading hours session for
equity options typically commences at 4:00 a.m. and the session after
an exchange's regular trading hours typically concludes at 8:00
p.m.\16\ Since equity options generally will not trade unless the
underlying security also trades, any trading hours outside of RTH
available for equity options are limited to extended trading hours
available for underlying equity security. Consequently, the Exchange
proposes GTH sessions for equity options that are shorter than the GTH
sessions for index options.
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\15\ See note 8 supra.
\16\ See note 10 supra.
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Although GTH for equity options could mirror the extended trading
hours available for the securities underlying such options, the
Exchange proposes to
[[Page 48093]]
limit GTH trading sessions, and proposed Rule 5.1(c) establishes GTH
sessions for equity options that are notably shorter than the hours of
extended trading for equities. The Exchange believes that shorter GTH
sessions running from 7:30 a.m. to 9:25 a.m. and 4:00 p.m. to 4:15
p.m., rather than sessions that align with the full extended trading
hours sessions available to the underlying equities, is appropriate
because of the lack of industry experience with GTH for equity options
that are physically-settled. Limiting the GTH window of time for equity
options allows for a paced introduction of this new type of trading
session for equity options. The limited trading session timeframes will
allow the Exchange to monitor and assess the development and
functioning of GTH markets for equity options. Additionally, the
Exchange believes that the proposed timeframe for GTH for equity
options can be supported by Market Makers, clearing firms, and other
market participants from a personnel coverage perspective.
The availability of GTH for equity options for holidays will also
differ from GTH for index options for holidays. The Exchange proposes
to amend Rule 5.1(e) to clarify that, unlike GTH for index options, GTH
for equity options will not occur on a holiday by stating that GTH
references to holiday trading apply to GTH for index options. A GTH
session for index options may (1) commence the evening prior to and
extended into the morning of, or (2) commence on the evening of and
extend into the morning following a domestic holiday \17\ or an
international holiday.\18\ Since the morning GTH session for equity
options will commence at 7:30 a.m. and the session immediately
following RTH will end at 4:15 p.m., such GTH sessions will not extend
from a prior day to a holiday into the holiday or from the evening of a
holiday into the next day as GTH for index options does, and
consequently GTH trading for equity options will not occur on a
holiday.
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\17\ See Rule 5.1(e)(1).
\18\ See Rule 5.1(e)(2).
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The Exchange also proposes to amend Rule 5.20 by adding new section
(g) to state that the trading of equity options in GTH will be subject
to the same trading halt rules as equity option trading in RTH. Trading
in equity options in GTH will generally halt when the underlying
security of an option is halted. Trading halt provisions for GTH index
options are not applicable to equity options.
The Exchange also proposes to amend the Opening Auction Process in
Rule 5.31 to incorporate GTH for equity options. The current definition
of Queuing Period provides that the Queuing Period for GTH for All
Sessions Classes begins at 8:00 p.m., 15 minutes prior to the
commencement of GTH. The Exchange proposes to amend the definition to
apply the existing Queuing Period beginning at 8:00 p.m. to index
options and establishing a Queuing Period for equity options in GTH
commencing at 7:15 a.m., also 15 minutes prior to the commencement of
the GTH session. The Exchange further proposes to further amend the
definition of Opening Rotations Triggers to establish Opening Rotation
Triggers processing for equity options in GTH by duplicating the
existing Opening Rotations Triggers processing of RTH equity options
for GTH equity options. The proposed amendments to the definitions of
Queuing Period and Opening Rotations Triggers extend existing
processing framework to equity options in GTH.
Whereas certain processing aspects of GTH for equity options
require explicit additions to the Rules, other GTH trading rules as
currently stated will apply to equity options designated for trading in
GTH.
<bullet> Eligibility: As provided in current Rule 5.1(c)(2),\19\
the Exchange may list for trading in GTH any series in eligible classes
that it may list pursuant to Rule 4.13.
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\19\ Rule 5.1(c)(2) will be renumbered Rule 5.1(c)(3).
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<bullet> Electronic Trading: As stated in current Rule 5.1(c)(6),
all trading in GTH sessions is electronic only.
<bullet> Book: As stated in definition of ``Book'' in Rule 1.1, a
single book is used during all trading sessions.
<bullet> Participants: As stated in Rule 3.61(a), in order to
participate in GTH, a Trading Permit Holder must have a letter of
guarantee from a Clearing Trading Permit Holder that is properly
authorized by the Options Clearing Corporation (``OCC'') to operate
during the GTH session. The Exchange may approve Market-Makers to act
as Lead Market Makers (``LMM'') during GTH as provided in Rule 3.55 and
in accordance with Rule 5.55. If an LMM is approved to act as an LMM
during Global Trading Hours pursuant to Rule 3.55, then the LMM must
comply with the continuous quoting obligation and other obligations of
Market-Makers as referenced in Rule 5.55(b).
<bullet> Transactions Including Obvious Errors: As stated in Rule
6.5(d)(2), a notification must be received within 2 hours of the close
of the GTH session if a party believes that it participated in a
transaction that was the result of a Catastrophic Error.
<bullet> Global Trading Hours Disclosure: The required disclosures
that a Trading Permit Holder must make to a customer prior to trading
during GTH will apply to equity options trading during GTH.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\20\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \21\ 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) \22\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\20\ 15 U.S.C. 78f(b).
\21\ 15 U.S.C. 78f(b)(5).
\22\ 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, in general, to protect
investors and the public interest. The proposed rule change expands the
investment opportunity of GTH to an additional type of option for GTH
trading, and the expansion is consistent with the continued
globalization of the securities markets while improving the alignment
of the Exchange's trading hours with extended trading hours of stock
exchanges. The Exchange believes the proposed rule change will enhance
competition by providing a service to investors that other options
exchanges currently are not providing. The Exchange believes that
competition among exchanges ultimately benefits the entire marketplace.
Given the robust competition among the options exchanges, innovative
trading mechanisms are consistent with the
[[Page 48094]]
above-mentioned goals of the Exchange Act.
While no other options exchanges currently provide trading in
equity options outside of RTH, the Commission has authorized stock
exchanges to be open for trading outside of those hours pursuant to the
Act. As the proposed rule change expands the GTH initiative, the
Exchange believes it is reasonable to trade a limited number of equity
option classes for which demand is anticipated to be the highest during
GTH upon implementation of GTH trading in equity options.
Apart from specific trading hours and holidays, much of the
Exchange's existing GTH trading rules will apply to GTH for equity
options, and in the case of trading halts, the Exchange's RTH rules for
equity options generally apply. As a result, GTH for equity options
will largely exist in the framework already established by rules that
have been approved by the Commission as being consistent with the goals
of the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act because all Trading Permit
Holders may obtain authorization to trade during GTH; however, the
proposed rule change does not impose additional burdens on those
Trading Permit Holders that do not elect to trade during Extended
Trading Hours. The Exchange believes the obligations imposed on Trading
Permit Holders to be eligible to trade during GTH is an appropriate
balance of obligations of additional requirements with the benefits of
additional trading sessions.
The Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act, because the
proposed rule change is a new competitive initiative that will benefit
the marketplace and investors. The Exchange also believes the proposed
rule change will enhance competition by providing new trading sessions
to investors that other options exchanges currently are not providing.
Additionally, all options exchanges are free to compete in the same
manner. The Exchange does not believe that the level of competition
among options exchanges will change during RTH because of the
introduction of GTH trading for equity options. The Exchange also
believes the proposed rule change could increase its competitive
position outside of the United States by providing investors with an
additional investment access with respect to their global trading
strategies during times that correspond with regular trading hours
outside of the United States.
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 up to 90 days (i) as the
Commission may designate 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 will:
A. by order approve or disapprove such proposed rule change, or
B. institute proceedings to determine whether the proposed rule
change should be 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#d1a3a4bdb4fcb2bebcbcb4bfa5a291a2b4b2ffb6bea7"><span class="__cf_email__" data-cfemail="c4b6b1a8a1e9a7aba9a9a1aab0b784b7a1a7eaa3abb2">[email protected]</span></a>. Please include
file number SR-CBOE-2025-079 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-2025-079. 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-2025-079 and should be submitted on
or before October 24, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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\23\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-19445 Filed 10-2-25; 8:45 am]
BILLING CODE 8011-01-P
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