SEC Solicits Comment on Cboe Exchange Proposal to Extend Hours on Equity Options Trading

The SEC requested comment to determine whether to approve or disapprove a proposed rule change by Cboe Exchange, Inc. ("Cboe") to allow for extended trading sessions of multi-listed equity options.

According to the Order instituting the proceedings, the Exchange proposed to amend its rules to permit trading in designated equity options outside of Regular Trading Hours. Cboe proposes to establish a pre-market session from 7:30 a.m. to 9:25 a.m. and, for certain options not related to ETFs or ETNs, a post-market session from 4:00 p.m. to 4:15 p.m. The Exchange intends to designate up to 100 actively traded multi-listed equity option classes that meet specific volume and market capitalization criteria for these Global Trading Hours.

The SEC stated that instituting proceedings is appropriate to allow for additional analysis, characterizing the proposal as "novel" because no national securities exchange currently permits the trading of equity options during the proposed pre-market timeframe. The Commission expressed concern that the proposal does not yet provide an adequate basis to conclude it is consistent with SEA Section 6(b)(5) ("National securities exchanges"), regarding the prevention of unfair discrimination, and SEA Section 6(b)(8), regarding burdens on competition. The SEC requested public comment on the sufficiency of the Exchange’s statements in support of the proposal.

Comments on the proposed rule change are due by January 21, 2026.