Cboe Expands Binary Index Options to Extended Trading Hours

Cboe Exchange, Inc. ("Cboe") filed a proposed rule change to allow it to list and trade certain binary options during extended trading sessions.

The proposal would amend Cboe Exchange Rule 5.1 ("Trading Days and Hours") to allow the exchange to list and trade binary options on indexes already approved for Global Trading Hours (‘‘GTH’’) and Curb Trading Hours (‘‘Curb’’). These currently include the S&P 500 ("SPX"), Cboe Volatility Index ("VIX"), Mini-SPX ("XSP"), Russell 2000 ("RUT"), and Mini-RUT ("MRUT"). Cboe said this change would respond to investor demand for extended-hours risk management tools, react to global macroeconomic events in real-time, and compete with unregulated, non-exchange platforms that currently offer similar binary products 24 hours a day.

Cboe said the amendment does not alter the underlying eligibility criteria for binary options, nor does it change the trading rules applicable to GTH or Curb. Cboe said that existing surveillance, reporting, and clearing processes (via the Options Clearing Corporation) remain in place and are deemed adequate.