Notice2025-23662
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Add P.M.-Settled Options on the Cboe Magnificent 10 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
December 23, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 244 (Tuesday, December 23, 2025)</title>
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[Federal Register Volume 90, Number 244 (Tuesday, December 23, 2025)]
[Notices]
[Pages 60148-60155]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23662]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104448; File No. SR-CBOE-2025-068]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing of Amendment No. 1 and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendment No. 1, To Add P.M.-
Settled Options on the Cboe Magnificent 10 Index With Third Friday
Expirations, Nonstandard Expirations, and Quarterly Index Expirations
December 18, 2025.
I. Introduction
On September 10, 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
Magnificent 10 Index (``MGTN'') with third Friday expirations,
nonstandard expirations, and quarterly index expirations. The proposed
rule change was published for comment in the Federal Register on
September 26, 2025.\3\ On November 3, 2025, the Commission designated a
longer period within which to take action on the proposed rule
change.\4\ On December 8, 2025, the Exchange filed Amendment No. 1 to
the proposed rule change as described in Item II below, which Item has
been prepared by the Exchange. Amendment No. 1 superseded the original
proposed rule change in its entirety.\5\ The Commission is publishing
this notice to solicit comments on Amendment No. 1 from
[[Page 60149]]
interested persons, and is approving the proposed rule change, as
modified by Amendment No. 1, 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. 104019 (Sept. 23,
2025), 90 FR 46424 (Sept. 26, 2025). The Commission did not receive
any comments on the proposal.
\4\ See Securities Exchange Act Release No. 104173 (Nov. 3,
2025), 90 FR 51424 (Nov. 17, 2025).
\5\ Amendment No. 1 revises the proposed rule change to reflect
changes to the rule text made by a separate filing that had proposed
several of the same changes but was approved subsequent to the
filing of this proposed rule change. See Securities Exchange Act
Release No. 103997 (Sept. 17, 2025), 90 FR 45431 (Sept. 22, 2025)
(adopting 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) (``P.M.-Settled CBTX and MBTX Options Approval
Order''). Amendment No. 1 also adds references to CBTX and MBTX
options to the proposed rule change as well as details about the
market capitalization and trading volume of the current MGTN index
components. Amendment No. 1 is available at: <a href="https://www.sec.gov/comments/sr-cboe-2025-068/srcboe2025068-683087-2110994.pdf">https://www.sec.gov/comments/sr-cboe-2025-068/srcboe2025068-683087-2110994.pdf</a>.
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change, as Modified by Amendment
No. 1
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rules 4.13 and 5.1. First, the
Exchange proposes to amend Rule 4.13(e), which governs its Nonstandard
Expirations Program (``Program''), to permit P.M.-settled options on
the Cboe Magnificent 10 Index (``MGTN options'') that expire any
Monday, Tuesday, Wednesday, Thursday, or Friday (other than the third
Friday-of-the-month (``Expiration Friday'') or days that coincide with
an end-of-month expiration) (``Weekly Expirations'') and that expire on
the last trading day of the month (``EOMs''). Currently, under this
Program, the Exchange is permitted to list P.M.-settled options on any
broad-based index eligible for standard trading and the Cboe Bitcoin
U.S. ETF Index (``CBTX'') and the Mini-Cboe Bitcoin U.S. ETF Index
(``MBTX'') (which are narrow-based indexes) that expire on: (1) any
Monday, Tuesday, Wednesday, Thursday, or Friday (other than the third
Friday-of-the-month or days that coincide with an EOM expiration) and
(2) the last trading day of the month.\6\ The proposal expands the
availability of Weekly and EOM expirations to MGTN options, which are
narrow-based index options eligible for standard options trading.\7\
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\6\ See Rule 4.13(e).
\7\ The Exchange notes MGTN options are 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 (as do options with EOM expirations). The Exchange proposes to
make these options eligible for the EOM expirations pursuant to the
Nonstandard Expiration for consistency since the Exchange is
proposing to make these options eligible for the Weekly Expirations,
which are part of the Nonstandard Expiration Program.
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The Nonstandard Expiration Program will apply to MGTN options in
the same manner as it currently applies to other index options. Weekly
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
the third Friday of the expiration month; provided, however, that
Weekly and EOM Expirations are P.M.-settled, and new series in Weekly
and EOM Expirations may be added up to and including on the expiration
date for an expiring Weekly or EOM Expiration.
The maximum number of expirations that may be listed for each
Weekly Expiration (i.e., a Monday expiration, Tuesday expiration,
Wednesday expiration, Thursday expiration, or Friday expiration, as
applicable) and each EOM 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 (which is currently six for MGTN options).
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. Weekly Expirations that are
first listed in a given class may expire up to four weeks from the
actual listing date. Similarly, EOM expirations need not be for
consecutive end of month expirations; 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. EOM Expirations that are first listed in a given
class may expire up to four weeks from the actual listing date. If the
Exchange lists EOMs 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 the given class. Other expirations in the same class
are not counted as part of the maximum number of Weekly or EOM
Expirations for an applicable index class.
If the Exchange is not open for business on a respective Monday,
the normally Monday expiring Weekly Expirations will expire on the
following business day. If the Exchange is not open for business on a
respective Tuesday, Wednesday, Thursday, or Friday, the normally
Tuesday, Wednesday, Thursday, or Friday expiring Weekly Expirations
will expire on the previous business day. If two different Weekly
Expirations on an index would expire on the same day because the
Exchange is not open for business on a certain weekday, the Exchange
will list only one of such Weekly Expirations. In addition, pursuant to
Rule 4.13(e)(3), transactions in expiring index options with Weekly and
EOM Expirations may be effected on the Exchange between the hours of
9:30 a.m. and 4:00 p.m. on their last trading day (Eastern Time).
Second, the Exchange proposes to amend Rule 4.13(c), which governs
quarterly index expirations (``QIXs''), to add MGTN options to the list
of options in Rule 4.13(c) that are eligible for quarterly index
expirations (``QIXs''), which are currently available for options on
the S&P 100 Index (``OEX options''), S&P 500 Index (``SPX options''),
Mini-S&P 500 Index (``XSP options''), S&P 500 Equal Weight Index (full-
value) (``SPEQ options''), S&P 500 Equal Weight Index (1/10th reduced-
value) (``SPEQX options''), Russell 2000 Index (``RUT options''), Mini-
Russell 2000 Index (``MRUT options''), CBTX options, and MBTX
options.\8\ Pursuant to Rule 4.13(c), there may be up to eight near-
term quarterly expirations open for trading in a class, and these
options will be P.M.-settled. The QIX program will apply to MGTN
options in the same manner as it currently applies to the other options
currently eligible for those expirations. QIXs are subject to all
provisions of Rule 4.13 and treated the same as options on the same
underlying index that expire on the third Friday of the expiration
month, except that QIXs, are P.M.-settled.
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\8\ The Exchange notes MGTN options are currently eligible for
the Quarterly Options Series program pursuant to Rule 4.13(a)(2)(B),
which permits P.M.-settled options that expire on the last trading
day of the quarter (as do QIXs). The Exchange proposes to make these
options eligible for QIXs for consistency, since QIXs are currently
available for certain index options available for trading on the
Exchange (which options are also eligible for the Nonstandard
Expirations Program).
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Third, the Exchange proposes to amend Rule 4.13, Interpretation and
Policy .13, to permit the listing of P.M.-settled MGTN options that
expire on Expiration Fridays. Currently, pursuant to Rule 4.13,
Interpretation and Policy .13, the Exchange is permitted to list P.M.-
settled SPX options, XSP options, SPEQ options, SPEQX options, RUT
options, MRUT options, CBTX options, and MBTX options that expire on
Expiration Fridays. Combined with the proposed rule change above to
permit the Exchange to list P.M.-settled MGTN options with Weekly
Expirations, the
[[Page 60150]]
Exchange would be permitted to list P.M.-settled MGTN options with
expirations on all Fridays (in addition to all other days of the week).
MGTN options that are P.M.-settled and expire on Expiration Fridays are
subject to all provisions of Rule 4.13 and treated the same as A.M.-
settled MGTN options, except that they are P.M.-settled.
Finally, the Exchange proposes to amend Rule 5.1, which governs
trading days and hours, in conjunction with the proposed addition of
MGTN options that are P.M.-settled and expire on Expiration Friday.
Rule 5.1(b)(2)(C) currently provides that on their last trading day,
Regular Trading Hours for index options with Nonstandard Expirations,
as well as expiring P.M.-settled SPX, XSP, RUT, MRUT, CBTX, and MBTX
options, may be effected on the Exchange between 9:30 a.m. and 4:00
p.m. Eastern Time \9\ (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
MGTN P.M.-settled options.\10\ The primary listing markets for the
component securities that comprise the Cboe Magnificent 10 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, Mini-
S&P 500, Russell 2000, Mini-Russell 2000, Cboe Bitcoin U.S. ETF, and
Cboe Mini-Bitcoin U.S. ETF Indexes close trading at 4:00 p.m. 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 these indexes. 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 MGTN P.M.-settled
options 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.
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 MGTN P.M.-
Settled options at 4:00 p.m., as it already does for expiring P.M.-
settled SPX, XSP, RUT, MRUT, CBTX, and MBTX options that expire on
Expiration Fridays and for expiring indexes with Nonstandard
Expirations (which are P.M.-settled) for the same aforementioned
reasons.\11\ The Exchange does not believe that the proposed rule
change will impact volatility on the underlying cash market comprising
the Cboe Magnificent 10 Index at the close on Expiration Fridays, as it
already closes trading on the last trading day for expiring P.M.-
settled index options at 4:00 p.m., which the Exchange does not believe
has had an adverse impact on fair and orderly markets on Expiration
Fridays for the underlying securities comprising the corresponding
indexes.\12\
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\9\ See Rule 1.6, which states that unless otherwise specified,
all times in the Rules are Eastern Time.
\10\ Current Rule 5.1(b)(2)(C) would apply to MGTN options with
Nonstandard Expirations and QIXs, as proposed; therefore, the
addition of MGTN P.M.-settled options to the list of options set
forth in this Rule covers these options that expire on Expiration
Fridays.
\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''); and
91067 (February 5, 2021), 86 FR 9108 (February 11, 2021) (SR-CBOE-
2020-116) (``MRUTPM 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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As noted above, current Rules permit the Exchange to list P.M.-
settled MGTN options with expirations on the last calendar of the month
and quarter.\13\ As a result, it is already possible under the Rules
for options on the Cboe Magnificent 10 Index to be P.M.-settled and to
expire on any day of the week (as the end of the month or the end of a
quarter may fall on any day of the week). The Rules also already allow
options on the Cboe Magnificent 10 Index to expire on Thursdays for
normally Friday expiring options when the Exchange is not open for
business on a respective Friday. Further, options on the Cboe
Magnificent 10 Index will be available for FLEX trading pursuant to
Rule 4.20 upon initial listing on the Exchange, which would permit
market participants to select expiration dates for these FLEX options
for any day of the week and may select p.m.-settlement.
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\13\ See Rule 4.13(a)(2)(C) and (B), respectively.
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The Exchange believes that the introduction of Weekly Expirations
and Expiration Friday expirations for options on the Cboe Magnificent
10 Index that are P.M.-settled will provide market participants with
additional hedging tools and greater trading opportunities, regardless
of in which index option market they participate. By offering expanded
expirations along with the current standard A.M.-settled expirations
(as well as P.M.-settled monthly and quarterly expirations), the
proposed rule change will allow market participants to purchase options
on the Cboe Magnificent 10 Index available for trading on the Exchange
in a manner more aligned with specific timing needs (such as to hedge
special events) and more effectively tailor their investment and
hedging strategies and manage their portfolios. In particular, the
proposed rule change will allow market participants to roll their
positions on more trading days, thus with more precision, spread risk
across more trading days and incorporate daily changes in the markets,
which may reduce the premium cost of buying protection. For example,
the Exchange believes that market participants may pay for more
protection than they need if they are seeking to hedge weekend or
special event risk that occurs. Therefore, the Exchange believes that
P.M.-settled daily expirations (including on all Fridays) 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. In addition, because P.M.-settlement permits trading
throughout the day on the day the contract expires, the Exchange
believes this will permit market participants to more effectively
manage overnight risk and trade out of their positions up until the
time the contract settles.
The Exchange believes there is sufficient investor interest and
demand in Weekly Expirations and Expiration Friday P.M.-settled
expirations for options on the Cboe Magnificent 10 Index to warrant
inclusion in the Program and in the Rules, and that the Program and the
Rules, as amended, will continue to provide investors with additional
means of managing their risk exposures and carrying out their
investment objectives.\14\
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\14\ The Exchange currently may list Weekly, EOM, QIX, and
Expiration Friday P.M.-Settled Expirations for SPX, XSP, RUT, MRUT,
CBTX, and MBTX options.
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With regard to the impact of this proposal on system capacity, the
Exchange has analyzed its capacity and represents that it believes that
the Exchange and OPRA have the necessary systems capacity to handle any
potential additional traffic associated with trading of P.M.-settled
Weekly and Expiration Friday expirations for MGTN options. The Exchange
does not believe that its
[[Page 60151]]
Trading Permit Holders (``TPHs'') will experience any capacity issues
as a result of this proposal and represents that it will monitor the
trading volume associated with any possible additional series of
options on the Cboe Magnificent 10 Index listed as a result of this
proposal and the effect (if any) of these additional series on market
fragmentation and on the capacity of the Exchange's automated systems.
In addition to this, the Exchange believes that its existing
surveillance and reporting safeguards in place are adequate to deter
and detect possible manipulative behavior which might arise from
listing and trading MGTN options with Weekly Expirations or Expiration
Friday expirations (as the Exchange currently applies these
surveillances to other options that are P.M.-settled with these
expirations and would for MGTN options that are P.M.-settled with
monthly and quarterly expirations pursuant to current Rules) and will
support the protection of investors and the public interest.
Furthermore, the trading of MGTN options with Weekly and Expiration
Friday expirations will be subject to the same rules that currently
govern the trading of options on the Cboe Magnificent 10 Index with
other expirations, including governing customer accounts, position and
exercise limits,\15\ margin requirements and trading halt procedures,
among other Rules, which are designed to prevent fraudulent and
manipulative acts and practices.
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\15\ Pursuant to Rule 8.32(f), positions in Nonstandard
Expiration Program, QIXs, and P.M.-Settled Third Friday Index
Options series are aggregated with positions in options contracts in
the same index class. Therefore, MGTN options positions that have
Nonstandard Expirations, QIXs, and third-Friday P.M.-settlement will
be aggregated for purposes of position limits with positions in MGTN
options, respectively with other expirations (including short-term,
monthly, and quarterly expirations). This is consistent with the
treatment of positions for purposes of position limits for other
classes that participate in the Nonstandard Expiration Program, as
well as QIXs and P.M.-Settled Third Fridays. See Rule 8.31(b).
Pursuant to Rule 8.32(a) and 8.42(b) (which provides that the
exercise limits for index options are equivalent to the position
limits set forth in Rule 8.32), the current position and exercise
limits for MGTN options are 24,000 contracts (and may not be more
than 31,500 without rule changes). Therefore, investors would not be
able to maintain significant open interest in these options, which
may further prevent investors from being able to impact the value of
the index.
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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.\16\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \17\ 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 facilitation
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) \18\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\16\ 15 U.S.C. 78f(b).
\17\ 15 U.S.C. 78f(b)(5).
\18\ Id.
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In particular, the Exchange believes that 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 Exchange believes that the
introduction of P.M.-settled Weekly and Expiration Friday expirations
for MGTN options will provide investors with expanded hedging tools and
greater trading opportunities and flexibility for an additional index
option.\19\ As a result, investors will have additional means to manage
their risk exposures and carry out their investment objectives. By
offering expanded expirations for options on the Cboe Magnificent 10
Index (along with the currently available P.M.-settled monthly and
quarterly options and standard A.M.-settled options), the proposed rule
change will allow market participants to purchase options on an
additional index in a manner more aligned with specific timing needs
and more effectively tailor their investment and hedging strategies and
manage their portfolios. For example, the proposed rule change will
allow market participants to roll their positions in options on the
Cboe Magnificent 10 Index on more trading days, thus with more
precision, spread risk across more trading days and incorporate daily
changes in the markets, which may reduce the premium cost of buying
protection. The Exchange represents that it believes that it has the
necessary systems capacity to support any additional traffic associated
with trading of options on the Cboe Magnificent 10 Index with Weekly
and Expiration Friday (P.M.-settled) expirations and does not believe
that its TPHs will experience any capacity issues as a result of this
proposal.
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\19\ Options on the Cboe Magnificent 10 Index may already be
listed with P.M.-settlement and expirations on the last calendar day
of the month or quarter pursuant to Rule 4.13(a)(2)(C) and (B),
respectively; therefore, the additional series that this proposed
rule would permit to be listed are P.M.-settled Weeklys and
Expiration Friday expirations. The proposed rule change merely adds
these options to different programs within the Rules that permit
these same expirations for consistency within the Rules.
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The Exchange does not believe that the addition of MGTN options to
the Nonstandard Expirations Program, to the P.M.-settled Expiration
Friday program, or the QIX program will raise any prohibitive
regulatory concerns, nor adversely impact fair and orderly markets on
expiration days. The Exchange has not experienced any meaningful
regulatory concerns, nor adverse impact on fair and orderly markets, in
connection with these programs and is unaware of any reason why adding
P.M.-settled options with expirations each day of the week for MGTN
options would be create such concerns or impact. Particularly, the
Exchange does not believe increases in the number of P.M.-settled
options series and expirations will have any significant adverse
economic impact on the futures, index, or underlying index component
securities markets.\20\ The Exchange believes that the proposed rule
change will provide investors with greater trading and hedging
opportunities and flexibility, allowing them to transact in options on
the Cboe Magnificent 10 Index in a manner more aligned with specific
timing needs and more effectively tailor their investment and hedging
objectives by listing these options that expire each trading day of the
week, in addition to options that expire at the end of calendar month
and quarter (which, as noted above, current Rules already permit the
Exchange to do).
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\20\ The Exchange's affiliate, the Cboe Futures Exchange, LLC
(``CFE''), currently lists MGTN futures.
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As also discussed above, current Rules permit the Exchange to list
P.M.-settled options on the Cboe Magnificent 10 Index that expire on
the last calendar day of the month and quarter; the proposed rule
change merely permits these listings to occur under different programs
within the Rules for consistency within the Exchange's Rules.\21\
Therefore, it is already possible
[[Page 60152]]
under the Rules for options on the Cboe Magnificent 10 Index to be
P.M.-settled and to expire on any day of the week (as the end of the
month or the end of a quarter may fall on any day of the week). The
Rules also already allow options on the Cboe Magnificent 10 Index to
expire on Thursdays for normally Friday expiring options when the
Exchange is not open for business on a respective Friday. Further,
options on the Cboe Magnificent 10 Index will be available for FLEX
trading pursuant to Rule 4.20 when the Exchange begins listing these
options, and thus, market participants will be able to select
expiration dates for these FLEX options for any day of the week and may
select p.m.-settlement. The Exchange has no reason to believe this
proposed rule change will cause any significant adverse economic impact
on the futures, index, or underlying index component securities markets
as a result of these listings.
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\21\ For example, it may be confusing to list Weeklys under the
Nonstandard Expirations Program but monthlys under the Monthly
program rather than the Nonstandard Expirations Program. As
proposed, all index options the Exchange lists with expirations
other than Expiration Fridays would be eligible for those
expirations under the same programs.
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The Commission previously recognized that listing P.M.-settled
index options with Weekly Expirations and Expiration Friday expirations
(in addition to EOM Expirations (which would include expirations on the
last day of calendar quarters)) was consistent with the Act.\22\ The
Commission noted that expirations in those index options would ``offer
additional investment options to investors and may be useful for their
investment or hedging objectives . . . .'' \23\ The Exchange also notes
it previously listed P.M.-settled broad-based index options with
Weekly, EOM, and Expiration Friday expirations pursuant to pilot
programs, so the Commission could monitor the impact of P.M.-settlement
of cash-settled index derivatives on the underlying cash markets (while
recognizing that these risks may have been mitigated given enhanced
closing procedures in use in the primary equity markets); however, the
Commission approved proposed rule changes to make those pilot programs
permanent. The Commission noted that the data it reviewed in connection
with the pilot demonstrated that these options ``benefitted investors
and other market participants by providing more flexible trading and
hedging opportunities while also having no disruptive impact on the
market'' and were thus consistent with the Act.\24\ The proposed rule
change is consistent with these findings, as it will benefit investors
and other market participants that participate in the markets for
additional index options in the same manner by providing them with more
flexible trading and hedging opportunities.
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\22\ See Securities Exchange Act Release Nos. 98454 (September
20, 2023), 88 FR 66103 (September 26, 2023) (SR-CBOE-2023-005)
(``SPXPM Permanent Approval Order''); 98455 (September 20, 2023), 88
FR 66073 (September 26, 2023) (SR-CBOE-2023-019) (``XSPPM and MRUTPM
Permanent Approval Order'') (the Exchange initially listed P.M.-
Settled SPX, XSP, and MRUT options that expire on Expiration Fridays
pursuant to pilot programs, so the Commission could monitor the
impact of P.M. settlement of cash-settled index derivatives on the
underlying cash markets (while recognizing that these risks may have
been mitigated given enhanced closing procedures in use in the
primary equity markets); 94682 (April 12, 2022), 87 FR 22993, 22994
(April 18, 2022) (SR-CBOE-2022-005) (approval of proposed rule
change to list P.M.-settled SPX options that expire on Tuesdays and
Thursdays) (``Daily SPX Option Approval''); and 95795 (September 15,
2022), 87 FR 57745, 57746 (September 21, 2022) (SR-CBOE-2022-039)
(approval of proposed rule change to list P.M.-settled XSP options
that expire on Tuesdays and Thursdays) (``Daily XSP Option
Approval'').
\23\ See Daily SPX Option Approval at 22995; and Daily XSP
Option Approval at 57746.
\24\ See SPXPM Permanent Approval Order at 66106; and XSPPM and
MRUTPM Permanent Approval Order at 66076 (citing data the Commission
reviewed in connection with the pilot programs);
---------------------------------------------------------------------------
Further, the Exchange believes P.M.-settlement is appropriate for
options on the Cboe Magnificent 10 Index because they will be trading
within a complex of other correlated instruments that track the
performance of the underlying components, in addition to the underlying
components themselves (e.g., options on the components, ETFs that track
the most active stocks (including the components), and futures on the
Cboe Magnificent 10 Index). This reduces the risk that listing these
options would strain liquidity providers. Further, the size of the
markets of the underlying components \25\ and the equal weighting of
the components make it unlikely the proposed rule change would
materially impact the component markets, the index value, or the
broader market.
---------------------------------------------------------------------------
\25\ The index is designed to measure the price return of a
group of large capitalization U.S. technology and growth-oriented
companies and are intended to be among the most actively traded
stocks. Pursuant to the methodology for the Cboe Magnificent 10
Index, each component will have a market capitalization of at least
$500,000,000, a free float of at least 25%, a minimum of 1,000,000
shares trading volume in the preceding six months, and one of the
100 largest market capitalizations. The Exchange notes the market
capitalizations of the current ten constituents range from
approximately 257,334,000,000 to 4,321,000,000,000 and are within
the top 34 among listed stocks, the minimum free float of the
constituents is approximately 84.1%, and the six-month trading
volume ranges from approximately 787,775,000,000 to
4,262,320,000,000. Additionally, the narrow-based listing criteria
pursuant to which these index options are listed impose various
requirements on the component securities related to the market
capitalization and liquidity, which further reduce the risk that the
markets for the components would be impacted by additional
derivatives. For example, pursuant to Rule 4.10(b): (1) the market
capitalization for the lowest-weighted component securities in the
index that in the aggregate account for no more than 10% of the
weight of the index must be at least $50 million, and the market
capitalization of all other components must be at least $75 million;
(2) the trading volume in each component must be at least 1,000,000
shares for each of the last six months (from October 2024 through
March 2025, the lowest monthly trading volume for a component was
over 1.5 million shares), except that for each of the lowest-
weighted component securities in the index that in the aggregate
account for no more than 10% of the weight the index, the trading
volume must be at least 500,000 shares for each of the last six
months); and (3) no single component security may represent more
than 25% of the weight of the index, and the five highest-weighted
component securities in the index may not in the aggregate account
for more than 50% (60% for an index consisting of fewer than 25
component securities) of the weight of the index.
---------------------------------------------------------------------------
As is the case for options on other indexes eligible for P.M.-
settlement (including broad-based and narrow-based indexes), the
Exchange does not believe the listing of additional P.M.-settled
options on the Cboe Magnificent 10 Index (which are narrow-based index
options) will have any significant economic impact (such as on market
quality or volatility) on the component securities underlying the index
surrounding the close as a result of expiring p.m.-settled options or
impact market quality. This is based on the data provided to and
reviewed by the Commission (and the Commission's own conclusions with
respect to broad-based indexes based on that review, as noted above)
and due to the significant changes in closing procedures in the decades
since index options moved to a.m.-settlement.\26\ The Exchange believes
the potential for any such impact is not only no greater for narrow-
based indexes than broad-based indexes, but may be less likely for
narrow-based indexes such as the Cboe Magnificent 10 Index, as the
indexes underlying such options are by definition not representative of
an entire market (as is the case for options on the S&P 500 Index).
Therefore, any potential impact would likely be limited in scope (as
noted above, the Commission found no material impact with respect to
P.M.-settled broad-based index options). Therefore, because, as noted
above, the Commission found no material impact with respect to broad-
based index options, the Exchange believes that it is reasonable to
infer that no material impact would occur with respect to MGTN options
for the reasons described above (including the significant
[[Page 60153]]
liquidity of the components and correlation of the component securities
and the availability of multiple correlated instruments for hedging).
The Exchange believes this to be particularly true given that the
components of the Cboe Magnificent 10 Index are also components of the
S&P 500 Index, which was the index the Commission considered in those
findings. The narrow scope of narrow-based indexes aligns closer to the
scope of equity options (which are P.M.-settled, such as the options
overlying the constituent securities that comprise the Cboe Magnificent
10 Index).
---------------------------------------------------------------------------
\26\ See id.
---------------------------------------------------------------------------
Further, the Cboe Magnificent 10 Index satisfies the generic
listing criteria in Rule 4.10(b). Upon approval of those listing
criteria, the Commission noted that these generic standards were
reasonably designed to ensure the protection of investors and the
public interest and to ensure that the trading markets for the
components were adequately capitalized and sufficiently liquid, and
that no one component dominated the index, thus minimizing the
potential for manipulation.\27\ This listing criteria includes the
following:
---------------------------------------------------------------------------
\27\ See Securities Exchange Act Release No. 34157 (June 3,
1994), 59 FR 30062 (June 10, 1994) (SR-Amex-92-35, SR-CBOE-93-59,
SR-NYSE-94-17, SR-PSE-94-07, and SR-Phlx-94-10). The Commission made
substantially similar findings with respect to generic listing
criteria for broad-based index options. See Securities Exchange Act
Release No. 53266 (February 9, 2006), 71 FR 8321 (February 16, 2006)
(SR-CBOE-2005-59) (the Commission noted that the listing criteria
were ``designed to ensure that the markets for the index's component
stocks are adequately capitalized and sufficiently liquid, and that
no one stock dominates the index'' and thus ``minimize the potential
for manipulating the underlying index'').
---------------------------------------------------------------------------
<bullet> each component security has a market capitalization of at
least $75 million, except that for each of the lowest weighted
component securities in the index that in the aggregate account for no
more than 10% of the weight of the index, the market capitalization is
at least $50 million;
<bullet> trading volume of each component security has been at
least one million shares for each of the last six months, except that
for each of the lowest weighted component securities in the index that
in the aggregate account for no more than 10% of the weight of the
index, trading volume has been at least 500,000 shares for each of the
last six months;
<bullet> in a capitalization-weighted index or a modified
capitalization-weighted index, the lesser of the five highest weighted
component securities in the index or the highest weighted component
securities in the index that in the aggregate represent at least 30% of
the total number of component securities in the index each have had an
average monthly trading volume of at least 2,000,000 shares over the
past six months;
<bullet> no single component security represents more than 25% of
the weight of the index, and the five highest weighted component
securities in the index do not in the aggregate account for more than
50% (60% for an index consisting of fewer than 25 component securities)
of the weight of the index; and
<bullet> component securities that account for at least 90% of the
weight of the index and at least 80% of the total number of component
securities in the index satisfy the requirements of Rule 4.3 applicable
to individual underlying securities.
Additionally, as described above, the constituents of the Cboe
Magnificent 10 Index are large, highly capitalized, and heavily traded,
which further reduce the potential for manipulation of the index.
Therefore, by satisfying the generic listing criteria for narrow-based
index options, the Cboe Magnificent 10 Index is, like broad-based
indexes and the narrow-based Cboe Bitcoin U.S. ETF and Cboe Mini-
Bitcoin U.S. ETF Indexes, designed to minimize the potential for
manipulation, further reducing any potential concerns associated with
P.M.-settlement.
Further, the Exchange believes that because MGTN options listed
with Nonstandard Expirations, QIXs, and P.M.-settlement on Third
Fridays will be aggregated with other options within those classes for
purposes of position (and exercise) limits, will further prevent
fraudulent and manipulative acts and practices and to promote just and
equitable principles of trade, and thus protect investors. This
aggregation is consistent with the treatment of positions for purposes
of position (and exercise) limits for other classes that may be listed
with Nonstandard Expirations, QIXs, and third Friday p.m.-
settlement.\28\ Therefore, the current position and exercise limits
that apply to options on the Cboe Magnificent 10 Index will continue to
apply, as the proposed additional expirations for these options would
have no impact on the number of positions that may be held (or
exercised) within a single account.
---------------------------------------------------------------------------
\28\ See Rule 8.31(b).
---------------------------------------------------------------------------
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 P.M.-
settled MGTN options 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.
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 P.M.-settled options on
the Cboe Magnificent 10 Index with Weekly and Expiration Friday
expirations will be available to all market participants. By listing
options on the Cboe Magnificent 10 Index with these expirations (in
addition to the monthly, quarterly, and standard Expiration Friday
expirations (A.M.-settled) that are currently permitted under the
Rules), the proposed rule change will provide all investors that
participate in the markets for these index options available for
trading on the Exchange with greater trading and hedging opportunities
and flexibility to meet their investment and hedging needs, which are
already available for several other index options (both broad-based and
narrow-based). Further, the proposed change to make options on the Cboe
Magnificent 10 Index that are P.M.-settled and expire on the last
business day of the month or quarter eligible for listing under
different programs under the Rules will have any burden on competition,
as this proposed rule change is intended to maintain consistency within
the Rules and will result in the same series being listed. The proposed
4:00 p.m. closing time for expiring P.M.-settled MGTN options on their
expiration dates will apply equally to all market participants trading
these options.
The Exchange does not believe that the proposal to list P.M.-
options on the Cboe Magnificent 10 Index with Weekly and Expiration
Friday expirations will impose any burden on intermarket competition
that is not necessary or appropriate in furtherance of the purposes of
the Act because these options are proprietary Exchange products. The
Exchange may currently list the same expirations for other index
options, so the proposed rule change merely expands the availability of
these expiration programs to additional products. Other exchanges offer
similar expirations for index options as well as short-term options
programs for certain
[[Page 60154]]
equity options that expire each day of the week, at the end of the
calendar month, at the end of the calendar quarter, and on Expiration
Fridays \29\ and are welcome to similarly propose to list options on
those index or equity products with similar expirations. To the extent
that the addition of these expirations for options on the Cboe
Magnificent 10 Index 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.
---------------------------------------------------------------------------
\29\ See, e.g., Nasdaq PHLX, LLC Options 4A, Section 12
(permitting nonstandard expirations, including daily expirations for
Nasdaq-100 index options and Nasdaq 100-Micro index options); and
Nasdaq ISE, LLC Options 4, Section 5, Supplementary Material .03
(permitting short-term options series with daily expirations for SPY
and QQQ options).
---------------------------------------------------------------------------
Additionally, options on the Cboe Magnificent 10 Index with these
expirations will trade in the same manner as other options with these
expirations currently do.
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 comments on the
proposed rule change.
III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change, as modified by Amendment No. 1, is consistent with the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\30\ In particular, the Commission finds that the
proposed rule change, as modified by Amendment No. 1, is consistent
with Section 6(b)(5) of the Act,\31\ 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.
---------------------------------------------------------------------------
\30\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\31\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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.\32\ 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.\33\ 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.\34\ 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.\35\ In addition, in September 2025, the Commission approved
the listing of p.m.-settled options on two narrow-based indexes--CBTX
and MBTX--with Weekly Expirations, EOM expirations, Expiration Friday
expirations and QIX expirations.\36\
---------------------------------------------------------------------------
\32\ 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.).
\33\ See e.g., SPXPM Permanent Approval Order and XSPPM and
MRUTPM Permanent Approval Order, supra note 12. 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); 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); and
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).
\34\ See e.g., XSPPM and MRUTPM Permanent Approval Order, supra
note 12, 88 FR at 66075-76.
\35\ See id.
\36\ See P.M.-Settled CBTX and MBTX Options Approval Order,
supra note 5.
---------------------------------------------------------------------------
In support of this proposal, the Exchange states that it does not
believe that the proposal would adversely impact fair and orderly
markets on expiration days.\37\ 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.\38\
---------------------------------------------------------------------------
\37\ See Amendment No. 1, supra note 5, at 14.
\38\ See id.
---------------------------------------------------------------------------
The Exchange states that p.m.-settlement is appropriate for MGTN
options for several reasons. According to the Exchange, the size of the
markets of the underlying components \39\ and the equal weighting of
the components make it unlikely that the proposal would result in a
material impact on the component markets, the index value, or the
broader market.\40\ The Exchange states that MGTN is ``designed to
measure the price return of a group of large capitalization U.S.
technology and growth-oriented companies and are intended to be among
the most actively traded stocks,'' \41\ and that ``each [index]
component will have a market capitalization of at least $500,000,000, a
free float of at least 25%, a minimum of 1,000,000 shares trading
volume in the preceding six months, one of the 100 largest market
capitalizations, and one of the highest six-month aggregate dollar
values of average daily trading volume.'' \42\ In Amendment No. 1, the
Exchange provides market capitalization and trading volume ranges for
the current ten index components.\43\ The Exchange also states that
MGTN options will trade within a complex of other correlated
instruments that track the performance of the underlying components, in
addition to the underlying components--such as options on the
underlying components,
[[Page 60155]]
ETFs that trade the most active stocks (including the components), and
MGTN futures--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.\44\
---------------------------------------------------------------------------
\39\ See id. at 17. Further, according to the Exchange, MGTN
satisfies 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.
\40\ See id. at 17-18.
\41\ Id. at 17, n.21.
\42\ Id.
\43\ See id. The Exchange states that, for the current index
components, the market capitalizations range from approximately
$257,334,000,000 to $4,321,000,000,000, the minimum free float is
approximately 84.1%, and six-month trading volumes range from
approximately 787,775,000,000 to 4,262,320,000,000 shares. See id.
\44\ See id. at 17-18.
---------------------------------------------------------------------------
As noted above, 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 on options market quality.\45\
In its approval of p.m.-settled CBTX and MBTX options, the Commission
observed that the index components for CBTX and MBTX trade within a
complex with multiple highly correlated instruments available for
hedging and that the underlying components of the indexes are generally
highly liquid and closely correlated with one another.\46\ The
Commission stated that, 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.\47\ The index components for MGTN similarly trade
within a complex of other correlated instruments that track the
performance of the underlying components, in addition to the underlying
components--such as options on the underlying components, ETFs that
trade the most active stocks (including the components), and MGTN
futures. Further, the index components have large market
capitalizations and the trading markets for the components are highly
liquid.\48\ As a result, it would be unlikely for p.m.-settled MGTN
options to increase market and price volatility in the underlying index
components or in the market for MGTN options.
---------------------------------------------------------------------------
\45\ See e.g., SPXPM Permanent Approval Order, supra note 12, 88
FR at 66106.
\46\ See P.M.-Settled CBTX and MBTX Options Approval Order,
supra note 5, 90 FR at 45434.
\47\ See id.
\48\ See supra note 43.
---------------------------------------------------------------------------
The Exchange's proposal to expand the Nonstandard Expirations
Program and the QIX program to MGTN 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 with more flexible trading and hedging opportunities.
Further, pursuant to Rule 8.32(a) and 8.42(b), MGTN options are subject
to position and exercise limits of 24,000 contracts (and may not be
more than 31,500 without rule changes),\49\ and p.m.-settled MGTN
options would be subject to Rule 8.32(f), which provides 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.\50\ Therefore positions in MGTN
options would be aggregated 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 significant open interest in the options. The
Exchange also represents that it has a surveillance program in place to
monitor trading in the proposed p.m.-settled MGTN options and the
systems capacity to support the proposed new options series.\51\ 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.
---------------------------------------------------------------------------
\49\ See Amendment No. 1, supra note 5, at 12, n.11.
\50\ See id.
\51\ See id. at 11-12.
---------------------------------------------------------------------------
For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \52\ and the
rules and regulations thereunder applicable to a national securities
exchange.
---------------------------------------------------------------------------
\52\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
IV. Solicitation of Comments on Amendment No. 1 to the Proposed Rule
Change
Interested persons are invited to submit written data, views, and
arguments concerning whether Amendment No. 1 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#dcaea9b0b9f1bfb3b1b1b9b2a8af9cafb9bff2bbb3aa"><span class="__cf_email__" data-cfemail="750700191058161a1818101b0106350610165b121a03">[email protected]</span></a>. Please include
file number SR-CBOE-2025-068 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-2025-068 on the
subject line. 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-2025-068 on the
subject line, and should be submitted on or before January 13, 2026.
V. Accelerated Approval of Proposed Rule Change, as Modified and
Superseded by Amendment No. 1
The Commission finds good cause to approve the proposed rule
change, as modified by Amendment No. 1, prior to the thirtieth day
after the date of publication of notice of the filing of Amendment No.
1 in the Federal Register. Amendment No. 1 updates the proposed rule
change to reflect Commission approval of changes to the rule text made
by a separate filing,\53\ and adds market capitalization and trading
volume ranges for the current MGTN index component securities.\54\
Amendment No. 1 makes no substantive changes to the proposed rule
change. Accordingly, the Commission finds good cause, pursuant to
Section 19(b)(2) of the Act,\55\ to approve the proposed rule change,
as modified by Amendment No. 1, on an accelerated basis prior to the
30th day after publication of notice of the filing of Amendment No. 1
in the Federal Register.
---------------------------------------------------------------------------
\53\ See P.M.-Settled CBTX and MBTX Options Approval Order,
supra note 5.
\54\ See supra note 25.
\55\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
VI. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\56\ that the proposed rule change (SR-CBOE-2025-068), as modified
by Amendment No. 1, be and hereby is approved on an accelerated basis.
---------------------------------------------------------------------------
\56\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\57\
---------------------------------------------------------------------------
\57\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-23662 Filed 12-22-25; 8:45 am]
BILLING CODE 8011-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.