Notice2025-20685
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 5.1
Primary source
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Published
November 24, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 224 (Monday, November 24, 2025)</title>
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[Federal Register Volume 90, Number 224 (Monday, November 24, 2025)]
[Notices]
[Pages 53013-53015]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-20685]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104228; File No. SR-CBOE-2025-070]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 5.1
November 19, 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 26, 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
The Exchange proposes to amend Rule 5.1 to permit the Exchange to
list two additional products during Global Trading Hours (``GTH'') and
Curb Trading Hours (``Curb''). 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 to permit the Exchange to
list Russell 2000 Index (``RUT'') and Mini-Russell 2000 Index
(``MRUT'') options during GTH and Curb.
By way of background, Rule 5.1(c) provides that the Exchange may
designate as eligible for trading during Global Trading Hours \3\ any
exclusively listed index option \4\ designated for trading under
Chapter 4, Section B.\5\ Currently, options on S&P 500 Stock Index
(``SPX''), Cboe Volatility Index (``VIX''), and Mini-SPX Index
(``XSP'') are approved for trading during Global Trading Hours. Rule
5.1(d) provides that the Exchange may designate as eligible for trading
during Curb \6\ any
[[Page 53014]]
exclusively listed option that the Exchange has designated for trading
under Chapter 4, Section B.\7\ Currently SPX, VIX, and XSP options are
approved for trading during Curb.
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\3\ Except under unusual conditions as may be determined by the
Exchange or the Holiday hours set forth in Rule 5.1(d), Global
Trading Hours are from 8:15 p.m. (previous day) to 9:25 a.m. on
Monday through Friday. See Rule 5.1(c).
\4\ An ``exclusively listed option'' is an option that trades
exclusively on an exchange because the exchange has an exclusive
license to list and trade the option or has the proprietary rights
in the interest underlying the option. An exclusively listed option
is different than a ``singly listed option,'' which is an option
that is not an ``exclusively listed option'' but that is listed by
one exchange and not by any other national securities exchange.
\5\ If the Exchange designates a class of index options as
eligible for trading during Global Trading Hours, FLEX Options with
the same underlying index are also deemed eligible for trading
during Global Trading Hours. See Rule 5.1(c)(1).
\6\ Except under unusual conditions as may be determined by the
Exchange, or the Holiday hours set forth in Rule 5.1(e), Curb
Trading Hours are from 4:15 p.m. to 5:00 p.m. on Monday through
Friday. See Rule 5.1(d).
\7\ If the Exchange designates a class of index options as
eligible for trading during Curb, FLEX Options with the same
underlying index are also deemed eligible for trading during Curb.
See Rule 5.1(d)(1).
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By way of further background, the Exchange originally adopted the
GTH trading session due to global demand from investors to trade SPX
and VIX options, as alternatives for hedging and other investment
purposes, particularly as a complementary investment tool to VIX
futures.\8\ In response to customer demand for additional options to
trade during the GTH trading session for similar purposes, the Exchange
later designated XSP options to be eligible for trading during GTH.\9\
The Exchange later adopted a Curb trading session, to further maximize
the overlap in time that such designated options could trade.
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\8\ See Securities Exchange Act Release No. 34-73017 (September
8, 2014), 79 FR 54758 (September 12, 2014) (SR-CBOE-2014-062).
\9\ 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 now proposes to designate RUT and MRUT \10\ options as
eligible for trading during GTH and Curb. The proposed rule change
amends Rules 5.1(c) and (d) to add these two products to the list of
products the Exchange has approved for trading on the Exchange during
GTH and Curb, respectively. The Exchange currently lists RUT and MRUT
options during Regular Trading Hours (``RTH''); the proposed rule
change merely extends the hours during which these options will trade
on the Exchange. During GTH and Curb, RUT and MRUT options would trade
in accordance with applicable Exchange Rules, as SPX, VIX and XSP
currently do; the proposed rule change makes no changes to the trading
rules applicable to GTH or Curb.\11\
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\10\ See Rule 4.13(a)(3), which provides that RUT and MRUT are
approved for trading on the Exchange.
\11\ For example, business conduct rules in Chapter 8 and rules
related to doing business with the public in Chapter 9 will continue
to apply during the GTH session. Additionally, a broker-dealer's due
diligence and best execution obligations apply during the GTH
trading session. As there will still be no open outcry trading on
the floor during the GTH trading, Chapter 5, Section G will continue
not to apply as such rules pertain to manual order handling and
open-outcry trading.
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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.\12\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \13\ 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) \14\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
\14\ Id.
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In particular, the Exchange believes the proposed rule change will
further improve the Exchange's marketplace for the benefit of
investors. The listing of RUT and MRUT options for trading during GTH
and Curb will provide more hedging and other investment opportunities
within the options trading industry that is consistent with the
continued globalization of the securities markets. The proposed change
increases the overlap in time that RUT and MRUT options are open
alongside the related futures contracts \15\ and aims to provide global
market participants with an expanded timeframe to trade RUT and MRUT
options. Extending the timeframe in which investors may trade RUT and
MRUT options is designed to provide investors with the ability to
manage risk more efficiently, react to global macroeconomic events as
they are happening and adjust RUT and MRUT options positions nearly
around the clock.
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\15\ See, e.g., trading hours for E-mini Russell 2000 Index
available here: <a href="https://www.cmegroup.com/markets/equities/russell/e-mini-russell-2000.contractSpecs.html">https://www.cmegroup.com/markets/equities/russell/e-mini-russell-2000.contractSpecs.html</a>.
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During GTH and Curb, RUT and MRUT options would trade in accordance
with Exchange Rules that apply to trading during GTH and Curb, as SPX,
VIX and XSP options currently do. The proposed rule change makes no
changes to the trading rules applicable to GTH or Curb; it merely
permits the Exchange to list two additional products during GTH and
Curb, which two products already trade on the Exchange during RTH. The
Exchange therefore believes that the proposed rule change is reasonably
designed to provide an appropriate mechanism for extending the trading
time for RUT and MRUT options, while providing for appropriate Exchange
oversight pursuant to the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. If the Exchange determines
to list RUT and/or MRTU options list for trading during GTH and Curb,
all Trading Permits Holders (``TPHs'') will be able, but not be
required, to trade RUT and MRUT options during GTH and Curb trading
sessions. The proposed rule change is merely extending the permissible
trading hours of two products that currently trade on the Exchange
during RTH.
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 RUT and
MRUT options are proprietary Exchange products. To the extent that
listing RUT and MRUT on the Exchange during GTH and Curb may make 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. Other exchanges are free to update their
rules to permit extended trading hours in products that trade on their
markets.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
A. significantly affect the protection of investors or the public
interest;
B. impose any significant burden on competition; and
C. become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the
[[Page 53015]]
Act \16\ and Rule 19b-4(f)(6) \17\ thereunder. At any time within 60
days of the filing of the proposed rule change, the Commission
summarily may temporarily suspend such rule change if it appears to the
Commission that such action is necessary or appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act. If the Commission takes such action, the
Commission will institute proceedings to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 17 CFR 240.19b-4(f)(6).
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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#7002051c155d131f1d1d151e0403300315135e171f06"><span class="__cf_email__" data-cfemail="d3a1a6bfb6feb0bcbebeb6bda7a093a0b6b0fdb4bca5">[email protected]</span></a>. Please include
file number SR-CBOE-2025-070 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-2025-070. 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-2025-070 and should be submitted on
or before December 15, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-20685 Filed 11-21-25; 8:45 am]
BILLING CODE 8011-01-P
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