Federal Register / Vol. 87, No. 59 / Monday, March 28, 2022 / Notices 17359 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 93819 

(December 23, 2021), 86 FR 73038 (‘‘Notice’’). 

4See Securities Exchange Act Release No. 94082, 

87 FR 5878 (January 27, 2022). 

5On March 4, 2022, the Exchange withdrew 

Amendment No. 1 to the proposed rule change. 

6 In Amendment No. 2, the Exchange revised the 

proposal to: (i) Reflect recently adopted CBOE rules 

relating a modified trading schedule for U.S. 

domestic holidays, held order instructions, and a 

new domestic holiday; (ii) provide additional 

description of several aspects of the proposal, 

including the impact of the modified trading 

schedule for U.S. domestic holidays on the 

proposed Curb session and notifications relating to 

catastrophic error reviews; and (iii) make technical 

and conforming changes. The Exchange also further 

discussed why it is appropriate to resume trading 

during GTH and Curb after a trading halt and 

clarified the application of CBOE Rule 5.22 during 

Curb. Amendment No. 2 is available on the 

Commission’s website at: https://www.sec.gov/ 

comments/sr-cboe-2021-071/srcboe2021071- 

20118875-271696.pdf. 

supervised persons to acknowledge, in 

writing, their receipt of these copies. 

The purposes of the information 

collection requirements are to: (i) 

Ensure that advisers maintain codes of 

ethics applicable to their supervised 

persons; (ii) provide advisers with 

information about the personal 

securities transactions of their access 

persons for purposes of monitoring such 

transactions; (iii) provide advisory 

clients with information with which to 

evaluate advisers’ codes of ethics; and 

(iv) assist the Commission’s 

examination staff in assessing the 

adequacy of advisers’ codes of ethics 

and assessing personal trading activity 

by advisers’ supervised persons. 

The respondents to this information 

collection are investment advisers 

registered with the Commission. The 

Commission has estimated that 

compliance with rule 204A–1 imposes a 

burden of approximately 87 hours per 

adviser annually for an estimated total 

annual burden of 1,275,659 hours. 

An agency may not conduct or 

sponsor a collection of information 

unless it displays a currently valid OMB 

control number. No person shall be 

subject to any penalty for failing to 

comply with a collection of information 

subject to the PRA that does not display 

a valid OMB control number. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimates of the burden of the proposed 

collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information collected; and (d) 

ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted in 

writing within 60 days of this 

publication by May 27, 2022. 

Please direct your written comments 

to David Bottom, Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O John 

Pezzullo, 100 F Street NE, Washington, 

DC 20549; or send an email to: PRA_

Mailbox@sec.gov. 

Dated: March 23, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–06421 Filed 3–25–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

TIME AND DATE: Notice is hereby given, 

pursuant to the provisions of the 

Government in the Sunshine Act, Public 

Law 94–409, the Securities and 

Exchange Commission will hold an 

Open Meeting on Wednesday, March 

30, 2022 at 11:30 a.m. 

PLACE: The meeting will be webcast on 

the Commission’s website at 

www.sec.gov. 

STATUS: This meeting will begin at 11:30 

a.m. (ET) and will be open to the public 

via webcast on the Commission’s 

website at www.sec.gov. 

MATTERS TO BE CONSIDERED: 1. The 

Commission will consider whether to 

propose amendments regarding special 

purpose acquisition companies, shell 

companies, the use of projections in 

Commission filings and a rule 

addressing the status of special purpose 

acquisition companies under the 

Investment Company Act of 1940. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information and to ascertain 

what, if any, matters have been added, 

deleted or postponed, please contact 

Vanessa A. Countryman from the Office 

of the Secretary at (202) 551–5400. 

(Authority: 5 U.S.C. 552b.) 

Dated: March 23, 2022. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2022–06533 Filed 3–24–22; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94484; File No. SR–CBOE– 

2021–071] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing of 

Amendment No. 2 and Order Granting 

Accelerated Approval of a Proposed 

Rule Change, as Modified by 

Amendment No. 2, To Adopt a New 

Trading Session That Will Operate 

After the Close of the Regular Trading 

Hours Session 

March 22, 2022. 

I. Introduction 

On December 15, 2021, Cboe 

Exchange, Inc. (‘‘Exchange’’ or ‘‘CBOE’’) 

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 adopt a new forty-five-minute 

trading session that will operate after 

the close of the Regular Trading Hours 

session. The proposed rule change was 

published for comment in the Federal 

Register on December 23, 2021.3 On 

January 12, 2022, the Commission 

designated a longer period for 

Commission action on the proposed rule 

change, until March 23, 2022.4 On 

February 14, 2022, the Exchange filed 

Amendment No. 1 to the proposed rule 

change, which replaced and superseded 

the proposed rule change.5 On March 4, 

2022, the Exchange filed Amendment 

No. 2 to the proposed rule change, 

which replaced and superseded the 

proposed rule change.6 The Commission 

has received no comment letters on the 

proposal. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as modified by 

Amendment No. 2, from interested 

persons and is approving the proposed 

rule change, as modified by Amendment 

No. 2, on an accelerated basis. 

II. The Exchange’s Description of the 

Proposed Rule Change, as Modified by 

Amendment No. 2 

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. 


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7For example, related futures products such as 

Cboe Volatility Index (VX) Futures are currently 

available for trading on Cboe Futures Exchange, 

LLC (‘‘CFE’’) during an extended trading hours 

session from 4:00 p.m. to 5:00 p.m. Eastern Time 

(ET) Monday through Friday. See CFE Rule 1202, 

which sets forth the trading hours for VX futures 

(times referenced in CFE Rule 1202 are Central 

Standard Time (CT)). Related future contracts are 

also offered on the Chicago Mercantile Exchange 

(‘‘CME’’) during the proposed hours of Curb. See 

https://www.cmegroup.com/tradinghours.html#equityIndex and https://

www.cmegroup.com/markets/equities/sp/e-minisandp500.html which reflects, among other things, 

that E-mini S&P 500 Futures trade between 6:00 

p.m. Sunday through 5:00 p.m. Friday ET (5:00 

p.m.–4:00 p.m. CT) with a daily maintenance 

period from 5:00 p.m.–6:00 p.m. ET (4:00 p.m.–5:00 

p.m. CT). 

8The term ‘‘trading session’’ means the hours 

during which the Exchange is open for trading for 

Regular Trading Hours or Global Trading Hours 

(each of which may referred to as a trading session). 

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). 

9All times referenced herein are Eastern Time. 

10See Rule 5.1(b)(1). 

11See Rule 5.1(b)(2). 

12See Rule 5.1(c). 

13 If the Exchange designates a class of index 

options as eligible for trading during GTH, FLEX 

Options with the same underlying index are also 

deemed eligible for trading during GTH. See Rule 

5.1(c). The Exchange also notes that although 

eligible, XSP is not currently listed for trading 

during GTH. 

14See Securities Exchange Act Release No. 34– 

73017 (September 8, 2014), 79 FR 54758 (September 

12, 2014) (SR–CBOE–2014–062). 

15See Securities Exchange Act Release No. 34– 

914 [sic] (September 14, 2015), 80 FR 522 [sic] 

(September 18, 2015) (SR–CBOE–2015–079). 

16See CFE Rule 1202(b). 

17For example, business conduct rules in Chapter 

8 and rules related to doing business with the 

public in Chapter 9 will apply during the Curb 

trading session. Additionally, a broker-dealer’s due 

diligence and best execution obligations apply 

during the Curb trading session. 

18Current Rule 5.1(d) (Holidays) will be 

renumbered to Rule 5.1(e). In connection with the 

proposed numbering change, the Exchange also 

proposes to update a cross reference to Rule 5.1(d) 

in Rule 4.22 to reflect the new rule number of Rule 

5.1(e). References to current Rule 5.1(d) will herein 

be referred to as Rule 5.1(e). 

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 its 

Rules to allow trading on the Exchange 

during a new forty-five-minute trading 

session called the ‘‘Curb Trading Hours’’ 

or ‘‘Curb’’ session. The proposed rule 

change to adopt a third trading session 

aims to increase the overlap in time that 

SPX, VIX and Mini-SPX Index (‘‘XSP’’) 

options are open alongside the related 

futures contracts.7

By way of background, the Exchange 

currently offers two trading sessions.8

Regular Trading Hours (‘‘RTH’’) and 

Global Trading Hours (‘‘GTH’’). Rule 5.1 

currently sets forth the trading hours for 

the Exchange’s RTH and GTH trading 

sessions. Particularly, RTH for 

transactions in equity options 

(including options on individual stocks, 

ETFs, ETNs, and other securities) are 

the normal business days and hours set 

forth in the rules of the primary market 

currently trading the securities 

underlying the options, except for 

options on ETFs, ETNs, Index Portfolio 

Shares, Index Portfolio Receipts, and 

Trust Issued Receipts the Exchange 

designates to remain open for trading 

beyond 4:00 p.m.9 but in no case later 

than 4:15 p.m.10 RTH for transactions in 

index options are from 9:30 a.m. to 4:15 

p.m., subject to certain exceptions.11

The GTH session currently begins at 

8:15 p.m. (previous day) and goes until 

9:15 a.m. on Monday through Friday.12

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, SPX, VIX and XSP are 

approved for trading during GTH.13

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.14 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.15 The current GTH 

session allows market participants to 

engage in trading SPX, XSP and VIX 

options in conjunction with trading VIX 

futures on CFE during extended hours, 

as VIX futures are open for trading on 

CFE nearly 23 hours a day, 5 days a 

week.16 The proposed rule change seeks 

to further maximize the overlap in time 

that SPX, XSP and VIX options may be 

open alongside the related futures 

contracts, as futures markets, including 

CFE, operate extended trading hours 

that overlap with the proposed Curb 

Trading Hours. The proposed rule 

change to adopt an additional trading 

session therefore provides market 

participants with expanded access to 

trade SPX, XSP and VIX options. 

The proposed Curb session will 

provide an extra forty-five-minute 

electronic only session for trading 

between 4:15 p.m. and 5:00 p.m. for 

designated classes, which will be added 

Monday through Friday. Unlike the 

current RTH and GTH trading sessions, 

there will be no opening auction process 

that initiates the Curb trading session. 

Rather, RTH will seamlessly transition 

to the Curb trading session at 4:15 p.m., 

which is when RTH for index options 

products ends. Any unexecuted orders 

that are eligible to trade during the Curb 

trading session that remain on the Book 

at the end of the RTH trading session 

will remain on the Book and be eligible 

for execution during Curb. Transactions 

effected during the Curb session will 

have the same trade date as the 

immediately preceding RTH session 

(i.e., the day on which the transactions 

were effected). The Curb trading session 

will however still be a separate trading 

session from RTH and GTH and while 

most of the Exchange Rules apply to 

trading during all three trading sessions, 

certain differences will apply as further 

described below.17 For example, unlike 

the RTH session, there will be no open 

outcry trading on the floor during the 

Curb trading session and only 

designated index options will be 

available for trading (similar to GTH). 

As such, Chapter 4, Sections A, D, E, F 

and G will not apply as those cover 

Equity and ETP Options, Corporate Debt 

Securities Options, Credit Options, 

Government Security Options, and 

Interest Rate Options, respectively, 

which will be not available during Curb. 

Similarly, Chapter 5, Section G will not 

apply as such rules pertain to manual 

order handling and open-outcry trading. 

The Exchange also notes that all Trading 

Permit Holders (‘‘TPHs’’) may 

participate in Curb. TPHs will not need 

to apply or take any additional steps to 

participate in Curb. Additionally, 

because the Exchange will use the same 

servers and hardware during Curb as it 

uses for RTH and GTH, TPHs may use 

the same ports and connections to the 

Exchange for all trading sessions. The 

Book used during Curb will be the same 

Book used during RTH and GTH. The 

Exchange proposes to amend various 

rules to adopt provisions relating to the 

proposed Curb session and conform 

existing rules accordingly, as described 

more fully below. 

Curb Session 

As discussed above, Rule 5.1 (Trading 

Days and Hours) currently sets forth the 

trading hours for RTH and GTH. The 

Exchange proposes to adopt Rule 

5.1(d),18 which will set forth the trading 

hours and rules applicable to trading 

during the proposed Curb trading 

session. Specifically, proposed Rule 

5.1(d) will provide that 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. 


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19For example, the Exchange may modify its 

business days and trading hours to not be open for 

business or to have shortened trading hours due to 

unusual circumstances or in connection with 

terrorism, acts of war, loss or interruption of 

facilities utilized by the Exchange, or a period of 

mourning. The Exchange notes there will also be no 

Curb Trading Hours where the RTH session closes 

early due to a holiday (e.g., on Christmas Eve). 

20See Proposed Rule 1.1 (All Sessions Class) 

which means an options class the Exchange lists for 

trading during all trading sessions. 

21Although the Exchange is proposing to approve 

XSP as eligible to trade during Curb, it does not 

intend to initially list XSP during Curb, as it is also 

approved, but not currently listed, during GTH. The 

Exchange however anticipates listing XSP during 

Curb and GTH at some point in the future. 

22 Delta-Adjusted at Close (‘‘DAC’’) will not be 

available during the Curb trading session (nor are 

they available currently during GTH) as the 

adjustment calculation for DAC orders is linked to 

the RTH market close for the underlying securities 

and indexes. See Current Rule 5.6.(c) (‘‘DeltaAdjusted at Close or DAC’’ Definition), which 

provides a User may not designate a DAC order as 

All Sessions. See also proposed Rule 5.6(c) which 

will similarly provide a User may also not designate 

a DAC order as RTH and Curb. 

23FLEX Options (that are not Cliquet-settled) 

with an exercise price that is a percentage of the 

closing value of the underlying index on the trade 

date will not be available during Curb (nor are they 

available currently during GTH), as the exercise 

price is linked to the RTH market close for the 

underlying index. 

24Rule 5.31 describes the opening auction 

process. Although the Exchange does not intend to 

conduct an opening rotation under the normal 

course of business, an opening rotation may be 

utilized under certain circumstances as described 

further below and in such instances, the availability 

of a series being available for trading during Curb 

will be subject to Rule 5.31. 

25See Rule 5.1(b)(2)(C). 

26See Rule 4.13(a)(4) and 4.13(a)(5)(C). Pursuant 

to Rules 4.13(a)(4) and 4.13(a)(5)(C), the last day of 

trading for A.M.-settled index options (such as 

standard SPX and VIX, respectively) shall be the 

business day preceding the last day of trading in the 

underlying securities prior to expiration. 

Accordingly, for example, A.M.-settled SPX options 

that expire on a Friday will continue to cease 

trading at the close of the business day on the 

preceding Thursday (albeit now at 5:00 p.m. instead 

of 4:15 p.m. since the business day as proposed 

ends at the conclusion of Curb). Similarly, VIX 

options (which are A.M.-settled) that expire on a 

Wednesday will normally continue to cease trading 

at the close of the business day on the preceding 

Tuesday (albeit now at 5:00 p.m. instead of 4:15 

p.m. since, as noted above, the business day as 

proposed ends at the conclusion of Curb). 

27CGI is an affiliate of the Exchange. 

28The Exchange only disseminates VIX indicative 

values during GTH between 3:00 a.m.–9:15 a.m. 

The Exchange will not report a value of VIX during 

GTH from 8:15 p.m. (previous day) to 3:00 a.m., 

because the value of the underlying index will not 

be recalculated during this time. See Rule 5.1(c)(3). 

29See Securities Exchange Act Release No. 34– 

73704 (November 28, 2014), 79 FR 72044 

(December 4, 2014) (SR–CBOE–2014–062) (order 

granting accelerated approval of proposed rule 

change, as modified by Amendments Nos 1 and 2, 

to adopt Extended Trading Hours for SPX and VIX). 

Particularly, the Exchange proposed to adopt Rule 

6.1A(k), which provided ‘‘[t]he Exchange will not 

report a value of an index underlying an index 

option trading during Extended Trading Hours, 

because the value of the underlying index will not 

be recalculated during or at the close of Extended 

Trading Hours.’’ 

30See Securities Exchange Act Release No. 34– 

93403 (October 22, 2021), 86 FR 59824 (October 28, 

2021) (SR–CBOE–2021–061). 

to 5:00 p.m. on Monday through 

Friday.19 Proposed Rule 5.1(d)(1) 

provides that the Exchange may 

designate as eligible for trading during 

Curb Trading Hours any exclusively 

listed option that the Exchange has 

designated for trading under Chapter 4, 

Section B. The Exchange proposes to 

approve SPX, XSP and VIX for trading 

on the Exchange during Curb session, 

which are all classes that are currently 

approved for trading during GTH (i.e., 

an ‘‘All Sessions Class’’ 20).21 FLEX 

Options with the same underlying index 

will also be deemed eligible for trading 

during the Curb session.22

Proposed Rule 5.1(d)(2) will provide 

that the Exchange may list for trading 

during the Curb trading session any 

series in eligible classes that it may list 

pursuant to Rule 4.13.23 Any series in 

eligible classes that were open for 

trading during RTH are expected to be 

open for trading during the Curb trading 

session on that same trading day 

(subject to Rule 5.31).24 The Exchange 

notes however that it will not list any 

p.m.-settled series during Curb on a 

series’ expiration date as such series 

would continue to expire prior to the 

start of the Curb trading session at 4:00 

p.m. on such date.25 A.M.-settled 

options will cease trading at the 

conclusion of the Curb session the 

business day preceding the last day of 

trading in the underlying securities 

prior to expiration.26

Proposed Rule 5.1(d)(3) will provide 

that the Exchange will not report a value 

of an index underlying an index option 

trading during Curb because the value of 

the underlying index will not be 

recalculated during or at the close of 

Curb. Pursuant to Rules 4.10(f) and (g), 

to list options on a broad-based index 

(currently, the only options that are 

proposed to trade during Curb), current 

indexes values must be widely 

disseminated at least once every 15 

seconds. Because index reporting 

authorities do not currently plan to 

disseminate updated values during the 

proposed Curb Trading Hours, the 

Exchange proposes to address the lack 

of dissemination of index values during 

Curb under proposed Rule 5.1(d)(3), 

which will supersede the requirements 

under Rules 4.10(f) and (g). The 

Exchange notes authority to decide 

when and how frequently to calculate 

and disseminate index values lies solely 

with a reporting authority. The 

reporting authority for the S&P 500 

Index, S&P Dow Jones Indices LLC 

(‘‘S&P’’), does not intend to calculate or 

disseminate current values of the S&P 

500 Index during the proposed Curb 

trading session. Similarly, Cboe Global 

Indices, LLC (‘‘CGI’’), the reporting 

authority for the Cboe Volatility Index 

(the ‘‘VIX Index’’) 27 does not intend to 

calculate or disseminate current values 

of the VIX Index during the proposed 

Curb trading session. Particularly, VIX 

is intended to represent the market’s 

expectation of S&P 500 volatility over 

the next 30 days. The accuracy of the 

calculation for VIX indicative (or spot) 

values depends on the quality of bid 

and offer quotes for constituent SPX 

options series. As the proposed 

additional Curb trading session has yet 

to be implemented, CGI cannot 

currently know that the SPX option 

quotes displayed during those hours 

will be sufficient to calculate accurate 

and meaningful VIX indicative values in 

the same manner it does during RTH or 

the GTH session.28 Indeed, the 

Exchange expects that initially there 

will be overall lower levels of trading 

during the proposed Curb session as 

compared to both RTH and the GTH 

session (between 3:00 a.m. and 9:15 

a.m.). Therefore, CGI has determined to 

not calculate VIX spot values during the 

proposed Curb Trading Hours. 

Moreover, the Exchange notes that the 

proposed Curb Trading Hours is a 

significantly shorter trading session 

than RTH or GTH (only 45 minutes 

versus several hours) and the Exchange 

does not believe it is as meaningful or 

beneficial to disseminate the index for 

the session given the short length of the 

session. However, after the launch of the 

Curb Trading Hours, to the extent CGI 

as index calculator determines that SPX 

quotes during such session will support 

accurate VIX indicative values, CGI will 

reconsider whether to calculate and 

disseminate these values during Curb 

(and the Exchange would submit rule 

filings to amend the rules, as necessary). 

The Exchange notes that it similarly did 

not report a value of an index 

underlying an index option trading 

during GTH when the GTH session was 

first adopted.29 Moreover, the Exchange 

recently extended the GTH session and 

amended its rules to provide that it will 

not report a value of an index 

underlying an index option trading 

during those new additional hours.30

Additionally, as discussed further 

below, the Exchange proposes to amend 

Rule 9.20, to make clear that any TPH 

that accepts orders for customers for 

execution during Curb must disclose to 

those customers various risks related to 

trading during that trading session, 

including the risk that an updated 


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31The Exchange proposes to make a clarifying 

update to Rule 9.20 to make clear that the 

underlying index or portfolio value and Intraday 

Indicative Value ‘‘may not’’ be (as opposed to ‘‘will 

not’’ be) calculated or widely disseminated during 

GTH or Curb. The Exchange believes the proposed 

change will reduce potential confusion given 

current values of VIX are in fact widely 

disseminated during GTH at least once 15 seconds 

for a portion of the GTH session (i.e., between 3:00 

a.m. to 9:15 a.m.). See Rule 5.1(c)(3). 

32The Exchange proposes to add a reference to 

the Juneteenth National Independence Day in Rule 

5.1(e)(1) to make clear it is considered a domestic 

holiday. 

33The following illustrates the domestic holiday 

schedule using Memorial Day as an example. The 

holiday GTH session preceding Memorial Day will 

start at 8:15 p.m. on the Sunday prior to Memorial 

Day and end at 11:30 a.m. on Memorial Day. The 

market will then be closed at 11:30 a.m. on 

Memorial Day (Monday) (i.e., there will be no RTH 

or Curb session on Memorial Day). The next GTH 

trading session will begin at 8:15 p.m. on Memorial 

Day and proceed as normal until 9:15 a.m. on the 

Tuesday following Memorial Day, which will be 

followed by a normal RTH session that begins as 

9:30 a.m. on Tuesday, followed by a normal Curb 

session that begins at 4:15 p.m. on Tuesday. All 

trading from Sunday night through Tuesday Curb 

market close is considered to be part of the Tuesday 

trading day. 

34The following illustrates the international 

holiday schedule using Good Friday as an example. 

Particularly, there will be no GTH session 

immediately preceding Good Friday (i.e., no GTH 

session that starts on Thursday). Rather, the market 

will be closed from Curb market close on the 

Thursday preceding Good Friday until the GTH 

session that starts at 8:15 p.m. on the Sunday 

following Good Friday. All trading from Sunday 

night through Curb market close on the following 

Monday is for a trading day of Monday. 

35At this time, SPX, XSP and VIX are the only 

classes that will be designated as eligible for trading 

during Curb. Because these classes are also eligible 

to trade during RTH and GTH, they will be 

considered ‘‘All Sessions classes’’. 

underlying index or portfolio value or 

intraday indicative value may not be 

calculated or publicly disseminated 

during Curb.31 Further, the closing 

value of the index from the immediately 

preceding RTH session will still be 

available for TPHs that trade during 

Curb. Proposed Rule 5.1(d)(3) (i.e., the 

lack of dissemination of index values 

during Curb) will also have no impact 

on trading during Curb. 

Proposed Rule 5.1(d)(4) provides 

trading during Curb Trading Hours is 

electronic only on the System. There 

will be no open outcry trading on the 

floor during Curb Trading Hours. If in 

accordance with the Rules and User’s 

instructions an order would route to 

PAR, the System will return the order to 

the TPH during Curb Trading Hours. 

The Exchange notes that the provisions 

of proposed Rule 5.1(d) are 

substantively similar to the 

corresponding rules for GTH. 

Lastly, the Exchange proposes to 

amend Rule 5.1(e) to address how the 

recently adopted Holiday hours will 

apply to the Curb trading session. 

Currently, Rule 5.1(e), provides that 

subject to the holiday schedule outlined 

in Rule 5.1(e)(1) and (2) (the ‘‘Holiday 

Schedule’’), the Exchange is not open 

for business on New Year’s Day, Martin 

Luther King, Jr. Day, Presidents’ Day, 

Good Friday, Memorial Day, 

Independence Day, Juneteenth, Labor 

Day, Thanksgiving Day, or Christmas 

Day. Rule 5.1(e)(1) further outlines the 

trading hours schedule for domestic 

holidays (i.e., Martin Luther King, Jr. 

Day, Presidents’ Day, Memorial Day, 

Independence Day, Labor Day, and 

Thanksgiving Day) 32 and Rule 5.1(e)(2) 

outlines the trading hours schedule for 

international holidays (i.e., Good 

Friday, Christmas Day and New Year’s 

Day). The Exchange proposes to update 

subparagraphs (1) and (2) of Rule 5.1(e) 

to reference the Curb trading session to 

make clear how the holiday schedule 

will impact all three trading sessions 

(i.e., RTH, GTH and Curb). 

First, the Exchange proposes to 

amend Rule 5.1(e)(1) which currently 

provides that for domestic holidays, the 

trading day following the holiday 

consists of the following three trading 

sessions: (i) A GTH session from 8:15 

p.m. on the calendar day preceding the 

holiday to 11:30 a.m. on the holiday, (ii) 

a GTH session from 8:15 p.m. on the 

holiday, or if the holiday is on a Friday, 

on the Sunday following the holiday, to 

9:15 a.m. on the trading day, and (iii) a 

RTH session on the trading day. 

Particularly, the Exchange proposes to 

update Rule 5.1(e)(1) to provide that the 

trading day following a domestic 

holiday will consist of four (instead of 

three) trading sessions, including a Curb 

Trading Hours session on the trading 

day following a domestic holiday. 

Proposed Rule 5.1(e)(1) would also 

make clear that there will no RTH or 

Curb session on the day a domestic 

holiday is observed.33

The Exchange similarly proposes to 

amend Rule 5.1(e)(2) which currently 

provides that for international holidays, 

the trading day following the holiday 

consists of the following two trading 

sessions: (i) A GTH session from 8:15 

p.m. on the holiday, or if the holiday is 

observed on a Friday, on the Sunday 

following the holiday, to 9:15 a.m. on 

the trading day and (ii) a RTH session 

on the trading day. The Exchange 

proposes to update Rule 5.1(e)(2) to 

provide that the trading day following 

an international holiday will consist of 

three (instead of two) trading sessions 

and make clear that the trading day 

following an international holiday 

includes a Curb Trading Hours session. 

Proposed Rule 5.1(e)(2) would also 

make clear that there will be no RTH or 

Curb session on the day an international 

holiday is observed nor a GTH session 

that immediately precedes the day an 

international holiday is observed.34

Definitions 

The Exchange proposes to adopt and 

amend various definitions under Rule 

1.1 (Definitions) in connection with the 

proposed Curb trading session as 

follows: 

• ‘‘All Sessions Class.’’ An ‘‘All 

Sessions’’ class is a class that is 

currently eligible to trade during both 

GTH and RTH. The Exchange proposes 

to amend the definition so that such 

term applies to an options class the 

Exchange lists for trading during all 

three trading sessions (i.e., RTH, GTH 

and Curb).35

• ‘‘Book and Simple Book.’’ As noted 

above, the Book used during Curb will 

be the same Book used during RTH and 

GTH. The Exchange therefore proposes 

to amend this definition so that such 

terms mean the electronic book of 

simple orders and quotes maintained by 

the System, which single book will be 

used during all three trading sessions, 

including Curb. 

• ‘‘Business Day and Trading Day.’’ 

The Exchange proposes to reflect that a 

business day or trading day includes all 

trading sessions on that day (which 

includes GTH, RTH and Curb). Further, 

the Exchange will make clear that a 

business day or trading day that 

immediately follows a domestic holiday 

pursuant to Rule 5.1(e) includes the 

RTH session, the Curb session that 

immediately follows it, and the two 

GTH sessions that immediately precede 

it. 

• ‘‘Curb Trading Hours and Curb.’’ 

The Exchange proposes to adopt a new 

term and definition for the new trading 

session and specifically proposes to 

provide the terms ‘‘Curb Trading Hours’’ 

and ‘‘Curb’’ mean the trading session 

consisting of the hours outside of RTH 

and GTH during which transactions in 

options may be effected on the 

Exchange and are set forth in Rule 5.1. 

Having a separate definition for each 

trading session allows the Exchange 

Rules to reflect these differences and the 

separation of the trading sessions. 

• ‘‘Global Trading Hours and GTH.’’ 

The Exchange also proposes to update 

the definition to add a reference to the 

new Curb Trading Hours. 

• ‘‘Trading Session.’’ The Exchange 

lastly proposes add a reference to Curb 

Trading Hours in this definition to 

provide that trading sessions will refer 

to the hours during which the Exchange 

is open for trading for RTH, GTH or 

Curb. 


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36The Exchange may list SPX or VIX on a group 

basis. See Rule 4.13(f). When determining whether 

to list a class on a group basis, the Exchange intends 

to generally select series with common expirations 

or classifications (e.g., end-of-week series or end-ofmonth series, short-term option series, long-term 

option series, or series that expire on a particular 

expiration date) and trade them under individual 

listing symbols. For example, the Exchange 

currently lists SPX options in two groups. 

Particularly, the Exchange lists SPX options with 

A.M.-settled standard third-Friday expirations 

under symbol ‘‘SPX’’ and lists options on the S&P 

500 Index with P.M.-settled standard third-Friday 

expirations and nonstandard expirations with all 

other expirations under symbol ‘‘SPXW.’’ If the 

Exchange lists SPX or VIX on a group basis, the 

Exchange may apply different trading parameters 

(including different allocation algorithms) to each 

group. The Exchange may also determine the 

eligible categories of Market-Maker participants for 

each group (Designated Primary Market-Makers 

(‘‘DPMs’’), Lead Market-Makers (‘‘LMMs’’), or 

Market-Makers). 

37For example, Rule 5.32(a) allows the Exchange 

to determine electronic allocation algorithms on a 

class-by-class basis; Rule 5.52(e)(2) allows the 

Exchange to determine bid/ask differential 

requirements on a class-by-class basis; Rules 

5.34(a)(2), 5.34(a)(4)(C), 5.34(a)(5), 5.34(b)(6), and 

Rules 5.34(c)(1) and (10) allow the Exchange to set 

certain price reasonability checks on a class-byclass basis; and Rules 5.37(a)(1), 5.38(a)(1), 

5.39(a)(1), and 5.40(a)(1), allow the Exchange to 

activate various auctions on a class-by-class basis. 

Because trading during Curb will be electronic only, 

and because trading during Curb may be different 

than RTH (such as lower trading levels, reduced 

liquidity and fewer participants), the Exchange 

believes it is appropriate to extend this flexibility 

to each trading session. 

38For example, market orders, stop, and stoplimit orders will not be eligible for trading during 

Curb, just as they are not eligible for trading during 

GTH. See Rules 5.6(b) and (c). 

39The Exchange also proposes to correct an 

inadvertent marking error that resulted in an 

incorrect rule reference to Rule 6.8(c) instead of 

Rule 5.5(c) in the definition of ‘‘Market Order’’ 

under Rule 5.6(b). See Securities Exchange Act 

Release No. 34–87320 (October 16, 2019), 84 FR 

56501 (October 22, 2019) (SR–CBOE–2019–033). 

5.6(b) and (c). [sic] 

39The Exchange also proposes to correct an 

inadvertent marking error that resulted in an 

incorrect rule reference to Rule 6.8(c) instead of 

Rule 5.5(c) in the definition of ‘‘Market Order’’ [sic] 

under Rule 5.6(b) [sic]. See Securities Exchange Act 

Release No. 34–86374 (July 15, 2019), 84 FR 34963 

(July 19, 2019) (SR–CBOE–2019–033). 

40Since the term ‘‘Book’’ refers to a single book 

that is used during all trading sessions, the 

Exchange proposes to eliminate references to 

‘‘GTH’’ or ‘‘RTH’’ preceding the term Book to avoid 

potential confusion. 

41An unexecuted RTH Only simple order would 

not persist into the Curb or GTH sessions at the end 

of the RTH trading session as such orders are not 

eligible to trade during either of those sessions. 

Similarly, an unexecuted RTH and Curb simple 

order would not persist into the GTH session at the 

end of the Curb trading session as such orders will 

not be eligible to trade during GTH. 

Exchange Determinations 

Generally, trading during the Curb 

trading session will occur in the same 

manner as it occurs during the RTH 

trading session. However, because the 

Curb market may have different 

characteristics than the RTH market 

(such as all electronic trading, lower 

trading levels, reduced liquidity, and 

fewer participants), the Exchange may 

deem it appropriate to make different 

determinations for trading rules for each 

trading session. For similar reasons as it 

relates to GTH, Rule 1.5(b) currently 

states to the extent the Rules allow the 

Exchange to make a determination, 

including on a class-by-class or seriesby-series basis or a group basis, if the 

Exchange determines to list SPX or VIX 

on a group basis pursuant to Rule 

4.13,36 the Exchange may make a 

determination for GTH that differs from 

the determination it makes for RTH. The 

Exchange proposes to amend Rule 1.5(b) 

to similarly allow the Exchange to make 

a determination for Curb that differs 

from the determination it makes for 

RTH or GTH (i.e., the Exchange will be 

allowed to make a determination on a 

trading session-by-trading session 

basis). The Exchange maintains 

flexibility with respect to certain rules 

so that it may apply different settings 

and parameters to address the specific 

characteristics of that class and its 

market.37 The Exchange represents that 

it will have appropriate personnel 

available during Curb to make any 

determinations that Rules provide the 

Exchange or Exchange personnel will 

make (such as trading halts, opening 

series, and obvious errors). 

Exchange Order Types, Order 

Instructions and Times-in-Force 

The Exchange next proposes to amend 

various exchange rules relating to 

available order types, order instructions 

and times-in-force the Exchange may 

make available during Curb. First, the 

Exchange proposes to amend Rule 5.6 

(Order Types, Order Instructions and 

Times-in-Force) to make clear that all 

order types, order instructions, and 

times-in-force the Exchange makes 

available in an All Sessions class for 

RTH electronic trading are available in 

that class for Curb electronic trading 

(just as it is for GTH electronic trading), 

except as otherwise specified in the 

Rules.38 The Exchange notes that it may 

not permit certain order types or order 

instructions to be applied to orders 

during Curb that it does permit during 

RTH and/or GTH (i.e., the Exchange has 

the discretion to not make available 

certain order types or Order Instructions 

otherwise listed under Rules 5.30(a) and 

(b) and proposed Rule 5.30(c)). 

Order Types 

The Exchange proposes to amend 

Rule 5.6(b) to provide that Users may 

not designate a market order as RTH and 

Curb.39 Currently, market orders are not 

eligible for trading during GTH and as 

such, any order designated as ‘‘All 

Sessions’’ cannot be designated a market 

order. Similar to GTH, the Exchange 

notes there may be reduced liquidity, 

higher volatility, and wider spreads 

during Curb. Therefore, the Exchange 

believes it is appropriate to not allow 

these orders to participate in Curb 

trading in order to protect customers 

should wide price fluctuations occur 

due to the potential illiquid and volatile 

nature of the market or other factors that 

could impact market activity. 

Order Instructions 

The Exchange first proposes to update 

the ‘‘All Sessions’’ order description 

under Rules 5.6(c) and 5.33(b)(5) to 

make clear that orders designated as 

‘‘All Sessions’’ (simple and complex, 

respectively) are eligible to trade in all 

trading sessions (i.e., RTH, GTH and 

Curb). The Exchange also proposes to 

update the ‘‘All Sessions’’ description 

under Rules 5.6(c) and 5.33(b)(5) to 

further clarify what happens to 

unexecuted All Sessions orders at the 

end of the RTH and Curb trading 

sessions. Currently, Rule 5.6(c) specifies 

that an unexecuted All Sessions order 

on the GTH Book 40 at the end of a GTH 

session enters the RTH Queuing Book 

and becomes eligible for execution 

during the RTH opening rotation and 

trading session on that same trading day 

(subject to a User’s instructions). The 

Exchange proposes to further amend 

Rule 5.6(c) to clarify that (i) an 

unexecuted All Sessions order on the 

Book at the end of the RTH trading 

session remains on the Book and 

becomes eligible for execution during 

the Curb trading session on that same 

trading day, subject to a User’s 

instructions and (ii) an unexecuted All 

Sessions order on the Book at the end 

of the Curb trading session enters the 

GTH Queuing Book and becomes 

eligible for execution during the GTH 

opening rotation and trading session on 

the next day, subject to a User’s 

instructions.41 The Exchange proposes 

to also add for clarity language 

providing that All Sessions ‘‘Day’’ 

orders on the Book at the conclusion of 

the Curb session will be canceled. 

Similar to Rule 5.6(c), Rule 5.33(b)(5) 

provides that an unexecuted All 

Sessions complex order resting in the 

Complex Order Book (‘‘COB’’) at the end 

of a GTH trading session remains in the 

COB and becomes eligible for execution 

during the RTH COB Opening Process 

or trading session on that same trading 

day, subject to a User’s instructions. 

Similar to the proposed changes to Rule 

5.6(c), the Exchange proposes to update 

the ‘‘All Sessions’’ description under 


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42An unexecuted RTH Only complex order on 

the COB would not persist into the Curb or GTH 

sessions at the end of the RTH trading session as 

such orders are also not eligible to trade during 

either of those sessions. Similarly, an unexecuted 

RTH and Curb complex order would not persist into 

the GTH session at the end of the Curb trading 

session as such orders will not be eligible to trade 

during GTH. 

43The Exchange also proposes to make a 

clarifying change to the description of ‘‘RTH Only’’ 

orders under Rule 5.33(b)(5) to explicitly reference 

the ‘‘COB Opening Process’’ in order to make clear 

that any unexecuted RTH Only order with a Timein-Force of GTC or GTD on the COB at the end of 

a RTH trading session remains on the COB and 

becomes eligible for execution during the RTH COB 

Opening Process, which is what happens today. 

The language is consistent with the definition of 

‘‘RTH Only’’ for simple orders under Rule 5.6(c). 

44Orders designated as OPG for the Curb session 

will generally be rejected unless circumstances 

require an opening rotation to occur in which case, 

they will be accepted. As discussed more fully 

below, the Curb session does not normally have an 

opening rotation, however an opening rotation may 

occur if the Exchange determines to start Curb after 

4:15 p.m. or after any trading halt during the Curb 

session. 

Rule 5.33(b)(5) to make clear that (i) an 

unexecuted All Sessions complex order 

resting in the COB at the end of the RTH 

trading session remains in the COB and 

becomes eligible for execution during 

the Curb trading session on that same 

trading day, subject to a User’s 

instructions and (ii) an unexecuted All 

Sessions complex order resting in the 

COB at the end of a Curb trading session 

remains in the COB and becomes 

eligible for execution during the GTH 

COB Opening Process or trading session 

on the next trading day, subject to a 

User’s instructions.42 The Exchange also 

proposes to add for clarity language 

providing that All Sessions ‘‘Day’’ 

complex orders resting in the COB at the 

conclusion of the Curb session will be 

canceled. 

The Exchange also proposes to amend 

certain other order descriptions under 

Rules 5.6(c). and Rule 5.33(b)(5) 

(Complex Orders). Particularly, the 

Exchange proposes to amend the 

descriptions of ‘‘All-or-None or AON’’ 

under Rule 5.6(c), ‘‘Delta-Adjusted at 

Close or DAC’’ under Rules 5.6(c) and 

5.33(b)(5), and ‘‘Stop (Stop-Loss)’’ and 

‘‘Stop-Limit’’ under Rule 5.6(b) to 

provide that Users may not designate 

the foregoing orders as RTH and Curb. 

Users similarly cannot designate such 

orders as All Sessions (i.e., they are not 

currently eligible for GTH). The 

Exchange also proposes to amend the 

description of ‘‘RTH Only’’ orders under 

Rules 5.6(c) and 5.33(b)(5) to clarify that 

such orders are those that a User 

designates as eligible to trade only 

during RTH, or that are not designated 

as All Sessions or RTH and Curb. 

Additionally, the Exchange proposes to 

clarify that unexecuted RTH Only 

orders with a Time-in-Force of GTC or 

GTD on the Book (or COB) at the end 

of an RTH trading session are not 

eligible for execution during the Curb 

trading session on the same trading day 

(in addition to the current reference to 

not being eligible for the GTH trading 

session on the following trading day).43

To provide investors with the 

flexibility to have their orders and 

quotes execute during (i) RTH, (ii) RTH, 

GTH and Curb or only (iii) RTH and 

Curb, the proposed rule change adds a 

‘‘RTH and Curb’’ order to the rules. 

More specifically, the Exchange 

proposes to adopt a description of ‘‘RTH 

and Curb’’ orders under both Rule 5.6(c) 

and Rule 5.33(b)(5) which will describe 

orders that are designated to trade only 

during RTH and Curb trading sessions. 

Particularly, an RTH and Curb Order 

will be an order (including a bulk 

message) a User designates as eligible to 

trade only during RTH and Curb or not 

designated as All Sessions or RTH Only. 

An unexecuted RTH and Curb order 

with a Time-in-Force of GTC or GTD on 

the Book (or COB) at the end of an RTH 

trading session remains in the Book (or 

COB) and becomes eligible for execution 

during the Curb trading session on the 

same trading day (but not during the 

GTH trading session on the following 

trading day), subject to a User’s 

instructions. An unexecuted RTH and 

Curb order with a Time-in-Force of GTC 

or GTD on the Book (or COB) at the end 

of a Curb trading session enters the RTH 

Queuing Book (or COB) and becomes 

eligible for execution during the RTH 

opening rotation (or COB Opening 

Process) and trading session on the 

following trading day (but not during 

the GTH trading session on the 

following trading day), subject to a 

User’s instructions. Additionally, all 

RTH and Curb Day orders resting on the 

Book (or COB) at the conclusion of the 

Curb trading session will be canceled. 

Times-in-Force 

The Exchange proposes to update the 

time times-in-force description of a 

‘‘Day’’ order or quote under Rule 5.6(c) 

to make clear that any order or quote so 

designated, if not executed, will expire 

at the RTH market close for RTH Only 

orders (as such orders are not eligible 

for Curb or GTH) and expire at Curb 

market close for all All Sessions and 

RTH and Curb orders (as Curb is the last 

trading session of a given trading day). 

The Exchange lastly proposes to 

update the Limit-on-Close (‘‘LOC’’) 

definition to provide that a User may 

not designate an LOC order as All 

Sessions or RTH and Curb, as the 

execution of LOC orders is linked to the 

RTH market close. 

Availability of Orders and Quotes for 

Electronic Processing 

The Exchange next proposes to amend 

Rule 5.30 (Availability of Orders and 

Quotes for Electronic Processing) to 

adopt new subparagraph (c), which will 

specify which order types, order 

instructions and times-in-force the 

Exchange may choose to make available 

during the Curb session. Specifically, 

the Exchange proposes to provide the 

Exchange may make the following 

available during Curb (the Exchange 

notes it also currently may make all 

these (other than RTH and Curb) 

available during GTH): 

(1) Order Types: Limit order. 

(2) Order Instructions: Attributable, Book 

Only, All Sessions, Cancel Back, 

Compression/PCC, Electronic Only, Match 

Trade Prevention (‘‘MTP’’) Modifier, 

Minimum Quantity, Non-Attributable, Post 

Only, Price Adjust, Reserve Order, and RTH 

and Curb. 

(3) Times-in-Force: Day, Fill-or-Kill 

(‘‘FOK’’), Good-til-Cancelled (‘‘GTC’’), Goodtil-Date (‘‘GTD’’), Immediate-or-Cancel 

(‘‘IOC’’), At the Open (‘‘OPG’’).44

(4) Complex Orders: Complex orders (see 

Rule 5.33 for types of complex orders) with 

a ratio greater than or equal to one-to-three 

(.333) and less than or equal to three-to-one 

(3.00) (except for Index Combo orders). 

The Exchange also proposes to amend 

Rule 5.70, which sets forth order types, 

order instructions and times-in-force 

available for FLEX options, to add ‘‘RTH 

and Curb’’ to the list of available order 

instructions. 

Entry of Orders and Quotes 

The Exchange proposes to amend 

Rule 5.7 (Entry of Orders and Quotes) to 

clarify that Users can enter orders and 

quotes into the system or cancel 

previously entered orders and quotes 

from 8:00 p.m. until Curb market close 

(instead of RTH market close). Further, 

the Exchange proposes to update the 

time under Rule 5.7(e) that Users may 

cancel orders and quotes with Time-inForce of GTC or GTD that remain on the 

book from 4:45 p.m. to 5:15 p.m. The 

Exchange notes that the proposed rule 

change would allow Users to cancel any 

GTC and GTD orders until 5:15 p.m., 

not just orders in All Sessions classes. 

The Exchange believes the proposed 

rule change provides Users with 

additional flexibility to manage their 

orders in all classes that remain in the 

Book following the Curb market close. 

In particular, the proposed rule change 

will provide Users with All Sessions 

and RTH and Curb GTC and GTD orders 

with the same time period following the 

end of Curb to cancel orders and 

provide Users with RTH Only GTC and 


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45Rule 5.31(g) describes the opening auction 

process that takes place upon the resumption of 

trading following a trading halt and is applicable to 

all trading sessions. 

46The Exchange proposes to eliminate the 

reference to Rule 5.20(a)(6) in Rule 5.20(d). 

Pursuant to Rule 5.20(a)(6) the Exchange may 

consider whether other unusual conditions or 

circumstances are present, including the activation 

of price limits on futures exchanges or the halt of 

trading in related futures with respect to index 

options. The Exchange notes that Rule 5.20(a)(6) 

will continue to apply during GTH (and Curb) 

notwithstanding the proposed rule change. The 

Exchange believes the applicability of Rule 

5.20(a)(6) is implied and otherwise clear and that 

it is not necessary to explicitly reference this 

provision under subparagraph (d) of Rule 5.20. 47For example, the New York Stock Exchange, 

LLC (‘‘NYSE’’) does not offer trading hours during 

the proposed hours of the Curb session. See NYSE 

Rules 1.1 and 7.34. Specifically, NYSE Rule 1.1 

defines ‘‘Core Trading Hours’’ as the hours between 

9:30 a.m. through 4:00 p.m. ET and NYSE Rule 7.34 

provides the Exchange has two trading sessions 

each day: (1) The ‘‘Early Trading Session’’ which 

begins at 7:00 a.m. and concludes at the 

commencement of the Core Trading Session and (2) 

the Core Trading Session, which as defined in 

NYSE Rule 1.1, begins at 9:30 a.m. and concludes 

at 4:00 p.m. ET. 

48See proposed Rule 5.1(d)(3). 49See Cboe Options Rule 5.20(f)(1) and (2). 

GTD orders with additional time to 

cancel orders. The Exchange notes that 

cancelling a RTH Only GTC or GTD 

order at 5:15 p.m. has the same effect as 

cancelling that order at 4:45 p.m.— 

ultimately it accommodates the User’s 

goal of cancelling an order prior to it 

potentially executing during the RTH 

Opening Process the following morning 

(i.e., it merely provides 30 additional 

minutes to cancel a RTH Only GTC or 

GTH order). 

Trading Halts 

The Exchange next proposes to amend 

Rule 5.20 (Trading Halts). By way of 

background, Rule 5.20(a) provides that 

any two Floor Officials, in consultation 

with a designated senior executive 

officer of the Exchange, may halt trading 

in any security in the interests of a fair 

and orderly market and to protect 

investors and sets forth several different 

factors that may be considered in 

making the foregoing determination. 

Rule 5.20(b) provides that trading in a 

security that has been the subject of a 

halt under paragraph (a) above may be 

resumed (as described in Rule 5.31(g)) 45

upon a determination by two Floor 

Officials, in consultation with a 

designated senior executive officer of 

the Exchange, that the interests of a fair 

and orderly market are best served by a 

resumption of trading. It also states that 

among the factors to be considered in 

making this determination are whether 

the conditions which led to the halt are 

no longer present. Rule 5.20(d) sets forth 

exceptions relating to trading halts and 

resumptions in index options. In 

particular, Rule 5.20(d) provides that 

when the hours of trading of the 

underlying primary securities market for 

an index option do not overlap or 

coincide with those of the Exchange, 

and during Global Trading Hours, Rule 

5.22 (which describes market-wide 

trading halts due to extraordinary 

market volatility) and subparagraphs 

(a)(3) and (5) (the factors applicable to 

index options) and subparagraph (b) of 

Rule 5.20 do not apply, except for 

subparagraph (a)(6).46 By way of further 

background, Rule 5.20(a)(3) provides 

that in the case of an index option, the 

Exchange may consider: (A) The extent 

to which trading is not occurring in the 

stocks or options underlying the index; 

(B) the current calculation of the index 

derived from the current market prices 

of the stocks is not available; or (C) the 

‘‘current index level,’’ which is the 

implied forward level based on 

volatility index (security) futures prices, 

for a volatility index is not available or 

the cash (spot) value for a volatility 

index is not available. Rule 5.20(a)(5) 

provides that the Exchange may 

consider the extent to which the 

opening process pursuant to Rule 5.31 

has been completed or other factors 

regarding the status of the opening 

process. 

Generally, in connection with Rule 

5.20, the Exchange considers halting 

trading only in response to unusual 

conditions or circumstances, as it wants 

to interrupt trading as infrequently as 

possible and only if necessary, to 

maintain a fair and orderly market. The 

proposed rule change amends Rule 

5.20(d) to indicate that subparagraph 

(a)(3) of Rule 5.20 also does not apply 

to Curb (just as it does not apply during 

GTH). In particular at least one of the 

primary listing markets is not open 

during the proposed Curb session.47

Additionally, as discussed above, the 

index values (including the spot value 

for VIX) will not be calculated during 

Curb.48 Thus, the Exchange believes it is 

appropriate to exclude Curb from the 

application of Rule 5.20(a)(3) because 

the factors in that provision will always 

be true during Curb, whereas during 

RTH, it would be unusual, for example, 

for stocks or options underlying an 

index to not be trading or the current 

calculation of the index to not be 

available. Exclusion of Curb from this 

provision will allow trading during 

Curb to occur despite the existence of 

those conditions (if the Exchange 

considered the existence of those 

conditions during Curb, trading during 

Curb could be halted every day). It is 

appropriate for the Exchange to consider 

any unusual conditions or 

circumstances detrimental to the 

maintenance of a fair and orderly 

market during Curb, which may, for 

example, include whether the 

underlying primary securities market 

was halted at the close of the preceding 

RTH session (in which case the 

Exchange will evaluate whether the 

condition that led to the halt has been 

resolved or would not impact trading 

during Curb) or significant events that 

occur during Curb. 

While the Exchange proposes to 

exclude application of Rule 5.20(a)(3) 

from the Curb session, the Exchange 

does not believe there are any 

distinguishing factors between Curb (or 

GTH) and RTH that warrants 

subparagraph (a)(5) (the provision that 

allows the Exchange to consider the 

extent to which the opening process has 

been completed) or Rule 5.20(b) (i.e., the 

provision that allows the Exchange to 

resume trading) to not apply. Indeed, 

the Exchange sees no reason why it 

should not consider the extent to which 

the opening process has been completed 

or other factors regarding the status of 

the opening process during either GTH 

or Curb. Although there will be no 

opening process to initiate the Curb 

session, there may still be an opening 

process pursuant to Rule 5.31(g) that 

may occur should a trading halt be 

declared during Curb. As such, the 

Exchange believes it’s appropriate to not 

preclude this factor from being 

considered during either GTH or Curb. 

The Exchange also sees no reason why 

it should not allow the resumption of a 

halted security during GTH or Curb if a 

determination is made by two Floor 

Officials, in consultation with a 

designated senior executive officer of 

the Exchange, that the interests of a fair 

and orderly market are best served by a 

resumption of trading, including when 

the conditions that led to the trading 

halt are no longer present. For example, 

during GTH, the Exchange shall 

automatically halt for a prescribed 

period of time if certain events transpire 

on the Chicago Mercantile Exchange 

(‘‘CME’’) during its Overnight Trading 

Hours (‘‘OTH’’) session. Specifically the 

Exchange will halt trading during GTH 

for a prescribed period of time where 

there is a halt of trading in related 

futures on CME during the CME OTH 

session due to the activation of a 

Dynamic Price Fluctuation Limit or 

when a related future is in a limit state 

on CME due to an activation of the CME 

OTH Price Limit.49 The Exchange 

believes that notwithstanding its rules 

relating to automated halts and trading 

resumptions, it is appropriate to also 


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17366 Federal Register / Vol. 87, No. 59 / Monday, March 28, 2022 / Notices 

50See Rule 5.22(c)(1)(B), which provides that if a 

circuit breaker is initiated in all stocks due to a 

Level 1 or Level 2 Market Decline, the Exchange 

will halt trading in all other stock options not 

specified in subparagraph (c)(1)(A) (e.g., stock index 

options, such as VIX, SPX and XSP) and may 

resume trading in such options any time after the 

15-minute halt period (i.e., the Exchange will be 

able to resume trading after a Level 1 or Level 2 

Market Decline no later than 3:40 p.m., which is 15 

minutes after 3:25 p.m. (the latest time the 

Exchange may halt pursuant to Rule 5.22(b)(1)) and 

35 minutes prior to the start of the proposed Curb 

session). See also Securities Exchange Act Release 

No. 34–61450 (September 28, 2011), 76 FR 61447 

(October 4, 2011) (SR–CBOE–2011–087). 

provide the Exchange the ability to 

manually resume trading at any time 

pursuant to Rule 5.20(b) if it believes 

the interests of a fair and orderly market 

are best served by doing so. For 

example, it may be in the interests of 

fair and orderly markets to resume 

trading once the conditions which led to 

a halt are no longer present, such as 

when a trading halt in related futures 

with respect to index options has ended, 

or a futures product is no longer in a 

limit state. 

The Exchange next proposes to amend 

Rule 5.20(d) with respect to a reference 

to Rule 5.22. Under Rule 5.22 (Marketwide Trading Halts due to Extraordinary 

Market Volatility), the Exchange will 

halt trading in all classes whenever a 

market-wide trading halt (commonly 

known as a circuit breaker) is initiated 

in response to extraordinary market 

conditions. Rule 5.22(b)(1) states that 

the Exchange will halt trading for 15 

minutes if a Level 1 or Level 2 Market 

Decline occurs after 9:30 a.m. and up to 

and including 3:25 p.m. (or 12:25 p.m. 

for an early scheduled close). 

Additionally, the Exchange will not halt 

trading if a Level 1 or Level 2 Market 

Decline occurs after 3:25 p.m. (or 12:25 

p.m., if applicable). Rule 5.22(b)(2) 

states that the Exchange will halt 

trading until the next trading day if a 

Level 3 Market Decline occurs. As 

referenced under Rule 5.20(d), Rule 5.22 

does not currently apply during the 

GTH session. Particularly, Rule 

5.22(b)(1) does not apply, as the 

beginning of GTH occurs past the 15- 

minute halt window for a Level 1 or 

Level 2 Market Decline. The Exchange 

believes Rule 5.22(b)(1) should similarly 

not apply during Curb because the 

beginning of the proposed Curb session 

would occur past the 15-minute halt 

window for a Level 1 or Level 2 Market 

Decline. Additionally, pursuant to Rule 

5.22(c)(1)(B), if a circuit breaker is 

initiated in all stocks due to a Level 1 

or Level 2 Market Decline, the Exchange 

may resume trading in stock index 

options any time after the 15-minute 

halt period.50 Rule 5.22(b)(2) also does 

not apply during GTH, as the GTH 

session is considered the next trading 

day and Rule 5.22(b)(2) requires the 

Exchange to halt trading until the 

‘‘next’’ trading day if a Level 3 Market 

Decline occurs at any time during the 

trading day. Unlike GTH however, the 

Curb session is considered the same 

trading day as the preceding RTH 

session, and therefore, unlike GTH, Rule 

5.22(b)(2) can and should apply. 

Accordingly, the Exchange proposes to 

amend Rule 5.20(d) to make clear that 

the only applicable trading halt 

provisions that do not apply during 

GTH and Curb are Rules 5.22 and 

5.20(a)(3), with the exception of Rule 

5.22(b)(2) which will apply during Curb. 

Opening Auction Process 

As discussed above, the Exchange 

does not intend to adopt an opening 

auction process for either simple or 

complex orders to commence the Curb 

trading session as the proposed start 

time of Curb immediately follows the 

close of RTH. As such, there will be no 

Curb-specific queuing period or opening 

rotation trigger to initiate the Curb 

session. Instead, at 4:15 p.m., the RTH 

trading session will seamlessly 

transition directly into the Curb trading 

session, and any All Sessions orders 

resting on the Book will remain on the 

book and become eligible for execution 

during Curb subject to a User’s 

instructions. In connection with the 

proposal, the Exchange proposes to 

amend Rules 5.31 and 5.33 to make 

clear that under normal circumstances 

there will be no opening rotation at the 

start of Curb. Particularly, the Exchange 

proposes to amend Rule 5.31(d), which 

sets forth various triggers upon which 

the System will initiate an opening 

rotation for the series in a class, by 

adopting new subparagraph (3) to 

explicitly provide that the System will 

not initiate an opening rotation at the 

start of the Curb Trading Hours. The 

Exchange also proposes to address what 

happens in the event Curb does not start 

immediately at 4:15 p.m. As noted 

above, proposed Rule 5.1(d) will 

provide that Curb will operate from 4:15 

p.m. to 5:00 p.m., except under unusual 

conditions as may be determined by the 

Exchange. If such conditions result in a 

determination to start Curb sometime 

after 4:15 p.m., the Exchange will need 

to initiate an opening rotation to start 

the Curb session as there would then be 

a ‘‘gap’’ between RTH and Curb and the 

transition would no longer be seamless. 

As such, the Exchange proposes to also 

add language to proposed Rule 

5.31(d)(3) which would provide that 

should the Exchange determine to start 

Curb after 4:15 p.m. due to unusual 

conditions as may be determined by the 

Exchange, the Exchange will utilize an 

opening rotation to initiate the session 

at a time to be announced by the 

Exchange. Proposed Rule 5.31(d)(3) 

would also clarify that the queuing 

period for any such opening rotation 

would begin at 4:15 p.m. The Exchange 

also proposes to make clear in Rule 

5.31(d)(3) that the Exchange will follow 

the opening auction process described 

in Rule 5.31(g) to resume trading 

following the declaration of a trading 

halt during Curb Trading Hours. 

Similarly, the Exchange proposes to 

amend Rule 5.33(c), which describes the 

COB Opening Process, to clarify that the 

System will not initiate the COB 

Opening Process at the start of Curb. 

More specifically, Rule 5.33(c) currently 

provides that the COB Opening Process 

occurs at the beginning of each trading 

session and after a trading halt. The 

Exchange proposes to update Rule 

5.33(c) to make clear that the COB 

Opening Process occurs only at the 

beginning of RTH and GTH (instead of 

‘‘each’’ trading session). The Exchange 

notes that should a trading halt be 

declared during Curb, the Exchange will 

utilize the COB Opening Process 

described under Rule 5.33(c) upon a 

resumption of trading. Similar to 

proposed Rule 5.31(d)(3), the Exchange 

proposes to adopt new Rule 5.33(c)(3) to 

explicitly provide that there will be no 

COB Opening Process at the start of the 

Curb Trading Hours. Proposed Rule 

5.33(c)(3) will also address what 

happens in the event Curb does not start 

immediately at 4:15 p.m. That is, if such 

conditions result in a determination to 

start Curb sometime after 4:15 p.m., the 

Exchange will initiate the COB Opening 

Process at a time to be announced by the 

Exchange. Proposed Rule 5.33(c)(3) 

would also clarify that the System will 

accept complex orders for inclusion in 

the COB Opening Process beginning at 

4:15 p.m. The Exchange will also make 

clear in proposed Rule 5.33(c)(3) that 

the Exchange will follow the COB 

Opening Process described in Rule 

5.33(c) to resume trading following the 

declaration of a trading halt during Curb 

Trading Hours. The Exchange believes 

the proposed rule changes relating to 

the opening processes for simple and 

complex orders (or lack thereof) 

provides transparency as to how the 

Exchange will initiate the Curb session 

under normal circumstances, as well as 

in the event unusual conditions result 

in the Curb session starting after 4:15 

p.m. 

Market-Maker Rules 

Current Rule 5.50(a) (Market-Maker 

Appointments) provides that a MarketMaker’s selected class appointment 


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51See Rule 5.52(d)(2). 

52See Proposed Rule 5.52(d)(2)(E). 

53The Exchange notes that it may appoint LMMs 

in both GTH and Curb, neither GTH nor Curb or 

only GTH or Curb. The Exchange also notes that to 

the extent it determines to appoint LMMs in both 

GTH and Curb, such LMM may, but is not required 

to be, the same LMM for each trading session. 

54The Exchange may determine in the future to 

adopt via a separate rule filing an incentive program 

that would provide appointed LMMs a rebate if 

they meet certain heightened continuous quoting 

standards during the proposed additional hours, if 

the Exchange believes it is necessary to encourage 

LMMs to provide significant liquidity during this 

time. 

55A catastrophic error is deemed to have 

occurred when the execution price of a transaction 

is higher or lower than the Theoretical Price for the 

series by an amount equal to at least the amounts 

set forth under Rule 6.5(d)(1). 

applies to classes during all trading 

sessions. In other words, if a MarketMaker selects an appointment in SPX 

options, for example, that appointment 

would apply during both GTH, RTH and 

Curb (and thus, the Market-Maker 

would have an appointment to make 

markets in SPX during GTH, RTH and 

Curb). As a result, the Market-Maker 

continuous quoting obligations set forth 

in Rule 5.52(d) applies to the class for 

an entire trading day (including all three 

trading sessions). Pursuant to Rule 

5.52(d), a Market-Maker must enter 

continuous bids and offers in 60% of 

the series of the Market-Maker’s 

appointed classes, excluding any 

adjusted series, any intra-day add-on 

series on the day during which such 

series are added for trading, any 

Quarterly Option series, and any series 

with an expiration of greater than 270 

days.51 The Exchange calculates this 

requirement by taking the total number 

of seconds the Market-Maker 

disseminates quotes in each appointed 

class (excluding the series noted above) 

and dividing that time by the eligible 

total number of seconds each appointed 

class is open for trading that day. The 

Exchange also notes however, that 

pursuant to Rule 5.52(d)(2)(E), the 

obligations apply only when the MarketMaker is quoting in a particular class 

during a given trading day and the 

obligations are not applicable to an 

appointed class if a Market-Maker is not 

quoting in that appointed class. 

Accordingly, if a Market-Maker does not 

wish to quote during the proposed new 

Curb trading session, but does quote the 

current RTH hours, then so long as the 

Market-Maker doesn’t log in and quote 

starting at 4:15 p.m., the time between 

4:15 p.m. and 5:00 p.m. (the Curb 

session) won’t be considered when 

determining a Market-Maker’s 

compliance with the quoting 

obligations. Accordingly, the Exchange 

believes the addition of the proposed 

Curb Trading Hours session will have a 

de minimis, if any, impact on a MarketMaker’s continuous quoting obligations, 

as they may continue to choose when to 

actively quote and have their obligations 

to their appointed classes apply.52

Moreover, selecting an appointment in 

SPX or VIX options will be optional and 

within the discretion of a Market-Maker. 

Additionally, Market-Makers have the 

opportunity to quote during Curb (and 

receive the benefits of acting as a 

Market-Maker with respect to 

transactions it effects during that time) 

without obtaining an additional Trading 

Permit or creating additional 

connections to the Exchange. Given this 

ease of access to the Curb trading 

session, the Exchange believes MarketMakers may be encouraged to quote 

during the trading session. The 

Exchange believes Market-Makers will 

continue to have an incentive to quote 

during Curb given the significance of 

the SPX and VIX within the financial 

markets, the expected demand, and 

given that the related futures also 

trading during those hours (which may 

permit execution of certain hedging 

strategies). The Exchange believes 

continuing to extend a Market-Maker’s 

appointment to Curb notwithstanding 

the proposed extension of the trading 

session will enhance liquidity during 

that trading session, which benefits all 

investors during those hours. Therefore, 

the Exchange believes the proposed rule 

change provides customer trading 

interest with a net benefit and continues 

to maintain a balance of Market-Maker 

benefits and obligations. 

With respect to Lead-Market-Makers 

(‘‘LMMs’’), the Exchange plans to utilize 

the same LMM structure it uses today 

during GTH. More specifically, Rule 

3.55 (LMMS) currently provides that the 

Exchange may approve one or more 

Market-Makers to act as LMMs in each 

class during GTH. Further, 

subparagraph (b) of Rule 5.55 (LMMs) 

provides that if a LMM is approved to 

act as an LMM during GTH, then the 

LMM must comply with the continuous 

quoting obligation and other obligations 

of Market-Makers set forth in Rule 

5.52(d)(2) but does not have to comply 

with the obligations under Rule 5.55(a). 

Additionally, subparagraph (a)(2)(B)(iv) 

of Rule 5.32 (Order and Quote Book 

Processing, Display, Priority and 

Execution) provides that the DPM/ 

LMM/PMM participation entitlement 

does not apply during GTH. Similar to 

GTH, the Exchange expects lower 

trading liquidity and trading levels 

during Curb as compared to RTH, and 

thus fewer opportunities for an LMM to 

receive a participation entitlement. As 

such, the Exchange does not expect that 

the RTH obligation/benefit structure 

would provide a similar incentive 

during Curb. More specifically, without 

the possibility of receiving a 

participation entitlement on a sufficient 

volume of trades, the Exchange believes 

there would be insufficient incentive for 

LMMs to undertake an obligation to 

quote at heightened levels, which could 

result in even lower levels of liquidity. 

The Exchange therefore proposes to 

amend Rules 3.55, 5.55 and 5.32 to add 

references to Curb such that the same 

LMM rules that are used during GTH 

will also apply during Curb.53

Accordingly, LMMs appointed in the 

Curb session will not be obligated to 

satisfy heightened continuous quoting 

and opening quoting standards during 

Curb, nor will they receive a benefit in 

exchange for satisfying an obligation 

(i.e., LMMs will not receive a 

participation entitlement during 

Curb).54

The Exchange notes that to the extent 

the Exchange appoints a Designated 

Primary Market-Maker (‘‘DPM’’) or 

Preferred Market-Maker (‘‘PMM’’) to a 

class for the Curb trading session, the 

Exchange would similarly not use the 

obligation/benefit structure. As such, 

the Exchange also proposes to amend 

subparagraph (a)(2)(B)(iv) of Rule 5.32 

(Order and Quote Book Processing, 

Display, Priority and Execution) to 

provide that the DPM/LMM/PMM 

participation entitlement does not apply 

during GTH or Curb. 

FLEX 

Subparagraph (b) of Rule 5.71 

(Opening of FLEX Trading) currently 

sets forth the times that FLEX traders 

may begin submitting FLEX Orders into 

an electronic FLEX Auction, a FLEX 

AIM, or a FLEX SAM or initiate an open 

outcry FLEX Auction on the trading 

floor for the RTH and GTH sessions. The 

Exchange proposes to add the time 

FLEX traders may submit such orders 

during Curb, which is after 4:15 p.m. 

(which is the start time of the Curb 

trading session). 

Catastrophic Errors 

The Exchange next proposes to amend 

Rule 6.5 (Nullification and Adjustment 

of Option Transactions Including 

Obvious) to specify the time deadline 

relating to catastrophic error 55

notifications in subparagraph (d)(2) for 

Curb. First, Rule 6.5(d) provides that a 

party that believes that it participated in 

a transaction that was the result of a 

Catastrophic Error must notify the 

Exchange’s Trade Desk. The Exchange 


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56For consistency in the Rulebook, the Exchange 

proposes to capitalize the reference to ‘‘regular 

trading hours’’ in Rule 6.5(d)(2). 

57For example, notification relating to a possible 

catastrophic error for a transaction that occurred on 

a Tuesday, either during RTH or Curb, must be 

received by 8:30 a.m. on the following Wednesday. 

If a transaction occurred on the day prior to a 

domestic holiday, notification must still be received 

by 8:30 a.m. on the first trading following the day 

of execution (i.e., must be received on the holiday). 

For example, notification relating to a possible 

catastrophic error for a transaction that occurred on 

the Wednesday before Thanksgiving, either during 

RTH or Curb, must be received by 8:30 a.m. on 

Thanksgiving, as the Exchange is still open for 

trading on Thanksgiving through 11:30 a.m. and it 

is considered the first trading day following the day 

of execution. 

58Unlike GTH, Clearing TPHs do not need to be 

authorized by the Options Clearing Corporation 

(‘‘OCC’’) to operate during the Curb session. As 

such, TPHs do not need separate letters of guarantee 

(i.e., in addition to any letters of guarantee on file 

for RTH) to also operate during the Curb trading 

session. 

59The same telecommunications lines used by 

TPHs during RTH and/or GTH may be used during 

Curb, and these lines will be connected to the same 

application server at the Exchange during all three 

trading sessions. 

60The term ‘‘EFID’’ means an Executing Firm ID. 

The Exchange assigns an EFID to a TPH, which the 

System uses to identify the TPH and the clearing 

number for the execution of orders and quotes 

submitted to the System with that EFID. 

61A TPH may elect to have separate ports or 

EFIDs for each trading session, but the Exchange 

will not require that. 

62The Exchange has held discussions with the 

Options Clearing Corporation, which is responsible 

for clearance and settlement of all listed options 

transactions and has informed the Exchange that it 

will be able to clear and settle all transactions that 

occur on the Exchange and handle exercises of 

options during Curb. 

proposes to update Rule 6.5(d) to clarify 

that like transactions occurring during 

RTH,56 notification relating to trades 

executed during Curb must be received 

by the Exchange’s Trade Desk by 8:30 

a.m. on the first trading day following 

the execution.57 The Exchange also 

proposes to clarify in Rule 6.5(d)(2) the 

cutoff time for transactions in an 

expiring options series that take place 

on an expiration day (i.e., P.M.-settled 

options). Currently Rule 6.5(d)(2) 

provides that for transactions in an 

expiring options series that take place 

on an expiration day, a party must 

notify the Exchange’s Trade Desk within 

45 minutes after the close of ‘‘trading 

that same day’’. In order to avoid 

confusion as to whether or not the close 

of trading refers to the close of the RTH 

session or the proposed Curb session, 

the Exchange proposes to clarify that 

such notification must be submitted by 

the close of the ‘‘RTH session’’. As 

discussed above, P.M.-settled options 

will continue to expire at 4:00 p.m. on 

the date of expiration. As such, the 

Exchange believes it’s appropriate to 

continue to provide the same amount of 

time for notification as it does today. 

Disclosure 

Current Rule 9.20 currently requires 

TPHs to make certain disclosures to 

customers regarding material trading 

risks that exist during GTH. The 

Exchange proposes to similarly require 

that TPHs make similar disclosures to 

customers regarding material trading 

risks that also exist during Curb. Similar 

to GTH, the Exchange expects overall 

lower levels of trading during Curb 

compared to RTH. While trading 

processes during Curb will be 

substantially similar to trading 

processes during RTH (as noted above), 

the Exchange believes it is important for 

investors, particularly public customers, 

to be aware of any differences and risks 

that may result from lower trading 

levels and thus requires these 

disclosures. Accordingly, Rule 9.20 will 

be amended to require the same 

customer disclosures during Curb as are 

required during GTH. Specifically, no 

Trading Permit Holder may accept an 

order from a customer for execution 

during Curb without disclosing to that 

customer that trading during Curb 

involves material trading risks, 

including the possibility of lower 

liquidity (including fewer MarketMakers quoting), higher volatility, 

changing prices, an exaggerated effect 

from news announcements, wider 

spreads, the absence of an updated 

underlying index or portfolio value or 

intraday indicative value and lack of 

regular trading in the securities 

underlying the index or portfolio and 

any other relevant risk. Rule 9.20 

currently provides an example of these 

disclosures, which the Exchange 

proposes to amend to add references to 

Curb Trading Hours in addition to 

Global Trading Hours references. The 

Exchange believes that requiring TPHs 

to disclose these risks to non-TPH 

customers will facilitate informed 

participation in Curb. 

The Exchange also intends to 

distribute to TPHs and make available 

on its website a Regulatory Circular 

regarding Curb that discloses, among 

other things, (1) that the current 

underlying index value may not be 

updated during Curb, (2) that lower 

liquidity during Curb may impact 

pricing, (3) that higher volatility during 

Curb may occur, (4) that wider spreads 

may occur during Curb, (5) the 

circumstances that may trigger trading 

halts during Curb, (6) required customer 

disclosures (as described above), and (7) 

suitability requirements. The Exchange 

believes that, with this disclosure, Curb 

Trading Hours are appropriate and 

beneficial to market participants that 

choose to participate in the session, 

notwithstanding the absence of a 

disseminated updated index value 

during those hours. 

Discussion 

As set forth above, the differences in 

the Rules between the trading process 

during Curb and RTH is that, similar to 

GTH, certain order types and 

instructions will not be available during 

Curb, values for indexes underlying 

index options will not be disseminated 

during Curb, and TPHs that accept 

orders from customers during Curb will 

be required to make certain disclosures 

to those customers. Additionally, as 

discussed, unlike either RTH or GTH, 

the Exchange will not use an opening 

auction process at the start of the Curb 

session. Other rules however, will apply 

in the same manner, but the Exchange 

may make different determinations 

between RTH and Curb, just as the 

Exchange may do between RTH and 

GTH. The Exchange believes these 

differences are consistent with the 

differences between the characteristics 

of each trading session. The Exchange 

also notes the following: 

• All TPHs may, but will not be 

required to, participate during Curb.58

As noted above, while a Market-Maker’s 

appointment to an All Sessions class 

will apply to that class whether it 

quotes in series in that class or not 

during Curb, the Exchange believes the 

proposed Curb trading session will have 

a de minimis, if any, impact on a 

Market-Maker’s continuous quoting 

obligations, as they may continue to 

choose when to actively quote and have 

their obligations to their appointed 

classes apply. Additionally, even if a 

Market-Maker elects to not quote during 

all or part of Curb, its ability to satisfy 

its continuous quoting obligation will 

not be substantially impacted given the 

short length of Curb as well as the few 

classes that will be listed for trading 

during Curb. 

• The Exchange will use the same 

connection lines, message formats, and 

feeds during RTH, GTH and Curb.59

TPHs may use the same ports and 

EFIDs 60 for each trading session.61

• Order processing will operate in the 

same manner during Curb as it does 

during RTH or GTH. There will be no 

changes to the ranking, display, or 

allocation algorithms rules. 

• There will be no changes to the 

processes for clearing, settlement, 

exercise, and expiration.62

• The Exchange will report Exchange 

quotation and last sale information to 

the Options Price Reporting Authority 

(‘‘OPRA’’) pursuant to the Plan for 

Reporting of Consolidated Options Last 


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63The OPRA Plan provides for the collection and 

dissemination of last sale and quotation information 

on options that are trading on the participant 

exchanges. The OPRA Plan is a national market 

system plan approved by the Commission pursuant 

to Section 11A of the Act and Rule 608 thereunder. 

See Securities Exchange Act Release No. 17638 

(March 18, 1981). The full text of the OPRA Plan 

is available at http://www.opraplan.com. All 

operating U.S. options exchanges participate in the 

OPRA Plan. The Exchange will report its best bid 

and offer and executed trades to OPRA during the 

proposed Curb Trading Hours in the same manner 

that they are reported during RTH and GTH today. 

The operator of OPRA has also informed the 

Exchange that it intends to add a modifier to the 

disseminated information during Curb. Specifically, 

OPRA will use Message Type = ‘v’ between 4:15 

p.m. ET and 5:00 p.m. ET. 

64Any fees related to receipt of the OPRA data 

feed during Curb will be included on the OPRA fee 

schedule. Any fees related to receipt of the 

Exchange’s proprietary data feeds during Curb will 

be included on the Exchange’s fee schedule (and 

will be included in a separate rule filing) or the 

Exchange’s market data website, as applicable. 

65See Rule 5.24. 

66See Rule 5.20(a)(6). As discussed above, futures 

markets operate an extended trading hours session 

that follows the regular trading hours session, with 

hours similar to what the Exchange is proposing. As 

such, should a halt of trading in related futures 

occur during Curb, then the Exchange may consider 

whether to halt during that session, just as it may 

do during regular GTH and RTH sessions. 

67See Exchange Notice C2021012501 ‘‘Cboe 

Options Exchange to Extended Global Trading 

Hours in Q4 2021’’. 

68 15 U.S.C. 78f(b). 

69 15 U.S.C. 78f(b)(5). 

70 Id. 

Sale Reports and Quotation Information 

(the ‘‘OPRA Plan’’) during the proposed 

Curb Trading Hours in the same manner 

it currently reports this information to 

OPRA during RTH and GTH today.63

Therefore, all TPHs that elect to trade 

during the proposed Curb session will 

have access to quote and last sale 

information during that trading session. 

Exchange proprietary data feeds will 

also be disseminated during Curb using 

the same formats and delivery 

mechanisms with which the Exchange 

disseminates them during RTH and 

GTH today. Use of these proprietary 

data feeds during Curb will be optional 

(as they are today during RTH and 

GTH).64

• The same TPHs that are required to 

maintain connectivity to a backup 

trading facility during RTH and GTH 

will be required to do so during Curb.65

Because the same connections and 

servers will be used for both trading 

sessions, a TPH will not be required to 

take any additional action to comply 

with this requirement, regardless of 

whether the TPH chooses to trade 

during Curb. 

• The Exchange will process all 

clearly erroneous trade breaks during 

Curb in the same manner it does during 

RTH and GTH and will have Exchange 

officials available to do so. 

• The Exchange will perform all 

necessary surveillance coverage during 

Curb. 

• The Exchange may halt and resume 

trading during Curb pursuant to Rule 

5.20(a) and (b), respectively, in the 

interests of a fair and orderly market in 

the same manner it may during RTH. 

The proposed rule change amends Rule 

5.20(d) to provide that the factors set 

forth under Rule 5.20(a)(3) will not 

apply during Curb just as they do not 

apply during GTH. Among the factors 

that may be considered in making the 

foregoing determinations are whether 

there has been an activation of price 

limits on futures exchanges or the halt 

of trading in related futures with respect 

to index options.66 Further, the 

proposed rule change will amend Rule 

5.20(d) such that when determining 

whether to halt trading during Curb or 

GTH, the Exchange will also be able to 

consider the extent to which the 

opening process pursuant to Rule 5.31 

has been completed or other factors 

regarding the status of the opening 

process, just as it is able to do for the 

RTH session. 

• Under Rule 5.22 (Market-wide 

Trading Halts due to Extraordinary 

Market Volatility), the Exchange will 

halt trading in all classes whenever a 

market-wide trading halt (commonly 

known as a circuit breaker) is initiated 

in response to extraordinary market 

conditions. Rule 5.22(b)(1) states that 

the Exchange will halt trading for 15 

minutes if a Level 1 or Level 2 Market 

Decline occurs after 9:30 a.m. and up to 

and including 3:25 p.m. (or 12:25 p.m. 

for an early scheduled close). 

Additionally, the Exchange will not halt 

trading if a Level 1 or Level 2 Market 

Decline occurs after 3:25 p.m. (or 12:25 

p.m., if applicable). Rule 5.22(b)(2) 

states that the Exchange will halt 

trading until the next trading day if a 

Level 3 Market Decline occurs. The 

Exchange notes that Rule 5.22(b)(1) will 

not apply during the Curb session, just 

as it does not apply during GTH, as the 

beginning of Curb occurs past the 15- 

minute halt window for a Level 1 or 

Level 2 Market Decline. Rule 5.22(b)(2) 

however will apply to the Curb session, 

as the Curb session is considered the 

same trading day as the RTH session. As 

such, if a Level 3 Market Decline occurs 

at any time during RTH or Curb, the 

Exchange will halt trading in SPX and 

VIX until the next trading day. 

The Exchange understands that 

systems and other issues may arise and 

is committed to resolving those issues as 

quickly as possible, including during 

the new Curb trading hours. Thus, the 

Exchange will have appropriate staff onsite and otherwise available as 

necessary during Curb to handle any 

technical and support issues that may 

arise during those hours. Additionally, 

the Exchange will have personnel 

available to address any trading issues 

that may arise during the additional 

Curb trading hours. The Exchange is 

also committed to fulfilling its 

obligations as a self-regulatory 

organization at all times, including 

during Curb, and will have 

appropriately trained, qualified 

regulatory staff in place during Curb to 

the extent it deems necessary to satisfy 

those obligations. The Exchange’s 

surveillance procedures will be revised 

as necessary to incorporate transactions 

that occur, and orders and quotations 

that are submitted, during Curb. The 

Exchange believes its surveillance 

procedures are adequate to properly 

monitor trading during Curb. 

Implementation Date 

The Exchange will announce the 

implementation date of the proposed 

rule change in accordance with Rule 

1.5. The Exchange also notes that it first 

announced its proposal to adopt the 

proposed Curb Trading Hours session to 

market-participants via a Trade Desk 

notice back in January 2021.67 Since 

then, the Exchange has issued numerous 

updated notices, FAQs and detailed 

technical specifications. 

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.68 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 69 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) 70 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 


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71See Cboe Options Rule 5.1, Cboe C2 Exchange, 

Inc, Rule 5.1 and Cboe EDGX Exchange, Inc. Rule 

21.2. 

72See e.g., Cboe BZX Exchange, Inc. Rule 1.5, 

which provides for an After Hours Trading Session 

which is a trading session from 4:00 p.m.–8:00 p.m. 

and follows the Regular Trading Hours session 

which takes place between 9:30 a.m. and 4:00 p.m. 

See also Exchange Act Release No. 59963 (May 21, 

2009), 74 FR 25787 (May 29, 2009) (SR–BATS– 

2009–012) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change to Amend 

BATS Rules to Offer an After Hours Trading 

Session). 

73See, e.g., CFE Rule 1202, which outlines the 

trading schedule for futures on the Cboe Volatility 

Index and includes an extended trading session that 

operates from 4:00 p.m. to 5:00 p.m. 

In particular, the proposed rule 

change to adopt Curb Trading Hours 

will remove impediments to and perfect 

the mechanism of a free and open 

market and a national market system. 

Particularly, Curb is a competitive 

initiative designed to improve the 

Exchange’s marketplace for the benefit 

of investors, and the proposed rule 

change will allow the Exchange to 

provide a competitive marketplace for 

market participants to trade certain 

products in an additional 45-minute 

trading session. More specifically, the 

adoption of the Curb trading session is 

designed to increase the overlap in time 

that SPX, XSP and VIX options are open 

alongside the related futures contracts. 

Moreover, adopting an additional 

trading session during which market 

participants can trade SPX, XSP and 

VIX options is designed to better help 

meet growing investor demand for the 

ability to manage risk more efficiently, 

react to global macroeconomic events as 

they are happening and adjust SPX, XSP 

and VIX options positions outside of 

RTH. The Exchange believes that the 

proposed rule change is reasonably 

designed to provide an appropriate 

mechanism for trading outside of RTH 

and GTH while providing for 

appropriate Exchange oversight 

pursuant to the Act, trade reporting, and 

surveillance. 

The Exchange also notes that it, along 

with some of its affiliated options 

exchanges, already allow for trading 

outside of the hours of RTH (i.e., during 

the GTH trading session).71

Furthermore, the Commission has 

authorized stock exchanges to be open 

for trading outside of regular trading 

hours.72 Thus, the proposed rule change 

to adopt a trading session in addition to, 

and outside of, regular trading hours is 

not novel or unique. Additionally, as 

noted above, futures exchanges also 

operate outside of those hours and 

during the proposed Curb session, 

including the Exchange’s affiliate, CFE, 

which has an extended trading hours 

session that overlaps with Exchange 

proposed Curb Trading Hours.73

As described in detail above, the vast 

majority of the Exchange’s trading rules 

will apply during Curb in the same 

manner as during the Exchange’s two 

other trading sessions (RTH and GTH), 

which rules have all be previously filed 

with the Commission as being 

consistent with the goals of the Act. 

Rules that will apply equally during 

Curb Trading Hours include rules that 

protect public customers, impose best 

execution requirements on TPHs, and 

prohibit acts and practices that are 

inconsistent with just and equitable 

principles of trade as well as fraudulent 

and manipulative practices. The 

proposed rule change also provides 

opportunities for price improvement 

during Curb and applies the same 

allocation and priority rules that are 

available to the Exchange during RTH 

and GTH. The Exchange believes, 

therefore, that the rules that will apply 

during Curb will continue to promote 

just and equitable principles of trade 

and prevent fraudulent and 

manipulative acts. 

The proposed rule change clearly 

identifies the ways in which trading 

during Curb will be different from 

trading during RTH and/or GTH (such 

as identifying order types and 

instructions that will not be available 

during Curb, clarifying that under the 

normal course of business there will be 

no opening auction process at the start 

of Curb, and the proposed absence of a 

disseminated updated index value 

during Curb). This ensures that 

investors are aware of any differences 

among trading sessions. The Exchange 

believes the differences are consistent 

with the expected differences in 

duration and timing of the trading 

session, liquidity, participation, and 

trading activity between RTH and Curb 

and GTH and Curb. For example, the 

Exchange believes it is reasonable to not 

adopt an opening auction process for 

Curb as the Curb session, unlike RTH 

and GTH, is proposed to start 

immediately following the trading 

session preceding it, and as such, the 

Exchange is able to seamlessly 

transition into Curb without a queuing 

period or opening rotation. The 

flexibility provided to the Exchange to 

make determinations for each trading 

session will allow the Exchange to 

apply settings and parameters to address 

the different market conditions that may 

be present during each trading session. 

Additionally, to further protect 

investors from any additional risks 

related to trading during Curb, the 

proposed rule change requires that 

disclosures be made to customers 

describing these potential risks, similar 

to the current requirement for such 

disclosures related to trading during 

GTH. The All Sessions order and RTH 

Only order, along with the proposed 

RTH and Curb order, will continue to 

protect investors by permitting investors 

who wish only to trade during RTH 

from having orders or quotes execute 

outside of the RTH session, including 

during the proposed Curb trading 

session. The RTH and Curb Order will 

provide investors with additional 

execution flexibility by providing them 

with an order that may execute during 

either daytime trading session but not 

carryover (if unexecuted) in the 

following overnight session. Consistent 

with the goal of investor protection, the 

Exchange will not allow market orders 

during Curb due to the expected 

increased volatility and decreased 

liquidity during these hours, just as it 

does not currently allow such orders 

during GTH for the same reasons. The 

proposed rule change also only 

authorizes the Exchange to list for 

trading two classes during Curb. As the 

proposed rule change is a new Exchange 

initiative, the Exchange believes it is 

reasonable to trade a limited number of 

classes upon implementation for which 

demand is believed to be the highest 

during Curb. 

Additionally, the Exchange believes 

that the proposed rule change will foster 

cooperation and coordination with 

persons engaged in regulating, clearing, 

settling, processing information with 

respect to, and facilitating transactions 

in securities, as the Exchange will 

ensure that adequate staffing is available 

during Curb to provide appropriate 

trading support during those hours, as 

well as Exchange officials to make any 

necessary determinations under the 

rules during Curb (such as trading halts 

and trade nullification for obvious 

errors). The Exchange is also committed 

to fulfilling its obligations as a selfregulatory organization at all times, 

including during Curb. The Exchange’s 

surveillance procedures will also be 

revised to incorporate transactions that 

occur and orders and quotations that are 

submitted during Curb Trading Hours. 

The Exchange believes its surveillance 

procedures are adequate to properly 

monitor trading during Curb. Clearing 

and settlement processes will be the 

same for Curb as they are for RTH or 

GTH transactions. 

The proposed rule change further 

removes impediments to a free and open 

market and does not unfairly 

discriminate among market participants, 

as all TPHs with access to the Exchange 

may trade during Curb using the same 


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74See Exchange Act Release Nos. 73704 

(November 28, 2014), 79 FR 72044 (December 4, 

2014) (SR–CBOE–2014–062) (approval of proposed 

rule change for Cboe Options to extend its trading 

hours outside of Regular Trading Hours); and 29237 

(May 24, 1991), 46 [sic] FR 24853 (May 31, 1991) 

(SR–NYSE–1990–052 and SR–NYSE–1990–053) 

(approval of proposed rule change for NYSE to 

extend its trading hours outside of Regular Trading 

Hours). The Exchange also notes that no other U.S. 

options exchange provides for trading SPX or VIX 

options outside of RTH, so there is currently no 

need for intermarket linkage during GTH. If another 

Cboe Affiliated Exchange lists any options 

authorized to trade during GTH outside of RTH, 

trading of such options on the Exchange would 

comply with linkage rules. 

75See, e.g., Cboe Options Rule 5.1, C2 Rule 5.1 

and Cboe EDGX. Rule 21.2. 

connection lines, message formats data 

feeds, and EFIDs they use during RTH 

and GTH, minimizing any preparation 

efforts necessary to participate during 

Curb. TPHs will not be required to trade 

during Curb. 

Additionally, as discussed above, 

while the proposed rule change 

increases the total time during which a 

Market-Maker with an appointment has 

the ability to quote in a selected class, 

the Exchange believes this increase has 

a de minimis, if any, impact on MarketMakers given that a Market-Maker’s 

compliance with its continuous quoting 

obligation is based on all classes in 

which it has an appointment in the 

aggregate and based only when a 

Market-Maker is quoting it its appointed 

classes. Indeed, as noted above, if a 

Market-Maker who quotes during the 

RTH and/or GTH session today does not 

wish to quote during the proposed Curb 

Trading Hours, then so long as such 

Market-Maker does not log into the 

system and quote during that session (or 

whatever other time it wishes to begin 

quoting), there will be no impact with 

respect to the Market-Maker’s ability to 

satisfy its continuous quoting 

obligations. Selecting an appointment in 

SPX and/or VIX options will continue to 

be optional and within the discretion of 

a Market-Maker. Additionally, MarketMakers continue to have the 

opportunity to quote during Curb (and 

receive the benefits of acting as a 

Market-Maker with respect to 

transactions it effects during that time) 

without obtaining an additional Trading 

Permit or creating additional 

connections to the Exchange. The 

Exchange believes Market-Makers will 

have an incentive to quote in SPX and 

VIX during the proposed Curb session 

given the significance of these products 

within the financial markets, the 

expected demand, and given that the 

related futures are also trading during 

those hours (which may permit 

execution of certain hedging strategies). 

The Exchange believes extending a 

Market-Maker’s appointment to the 

Curb session will enhance liquidity 

during that trading session, which 

benefits all investors during those 

hours. The Exchange believes that any 

slight additional burden of extending 

the continuous quoting obligation to the 

proposed Curb trading session in the 

eligible classes would be outweighed by 

the Exchange’s efforts to add liquidity 

during the Curb trading session in All 

Sessions classes, the minimal 

preparation a Market-Maker may require 

to participate in the Curb trading 

session, and the benefits to investors 

that may result from that liquidity. 

Therefore, the Exchange believes the 

proposed rule change provides customer 

trading interest with a net benefit and 

continues to maintain a balance of 

Market-Maker benefits and obligations. 

While LMMs will only be required to 

meet the same obligations as MarketMakers during Curb, the Exchange 

believes it may be unduly burdensome 

to impose a heightened standard during 

Curb given the expected lower 

participation and trading volume and 

higher liquidity. The Exchange believes 

LMMs should have the flexibility to 

determine whether satisfying any 

heightened quoting standard and 

opening quoting standard is appropriate 

for its business given the then-current 

market conditions during Curb. Because 

there are no additional obligations 

imposed on LMMs during Curb, they 

receive no additional benefits (i.e., no 

participation entitlement) during Curb. 

Without the possibility of receiving a 

participation entitlement on a sufficient 

volume of trades, the Exchange does not 

expect that the current RTH obligation/ 

benefit structure for LMMs would 

provide a similar incentive during Curb 

and therefore does not propose to 

implement it during Curb, just as it has 

not done so for GTH for similar reasons. 

As noted above, should the Exchange 

find it necessary in the future, it will 

submit a separate rule filing to adopt a 

rebate incentive program for Curb 

LMMs to encourage increased quoting to 

add liquidity during that session. LMMs 

that satisfy any proposed heightened 

continuous quoting standard under such 

an incentive program would receive a 

rebate pursuant to the Fees Schedule. 

Such a program would parallel the 

obligation/benefit structure that exists 

for LMMs during RTH (that is, LMMs 

that meet heightened quoting 

obligations during RTH receive a 

participation entitlement, which is 

merely a different form of financial 

benefit). 

The proposed rule change is also 

consistent with Section 11A of the Act 

and Regulation NMS thereunder, 

because it provides for the 

dissemination of transaction and 

quotation information during Curb 

through OPRA, pursuant to the OPRA 

Plan, which the Commission approved 

and indicated to be consistent with the 

Act. While Section 11A and Regulation 

NMS contemplate an integrated system 

for trading securities, they also envision 

competition between markets, and 

innovation that provides marketplace 

benefits to attract order flow to an 

exchange does not result in unfair 

competition if other markets are free to 

compete in the same manner.74

As discussed, the Exchange, as well as 

other options exchanges, already offer 

trading sessions outside of regular 

trading hours.75 While there are some 

differences among the proposed Curb 

Trading Hours session and the 

Exchange’s current GTH session, such 

as the length and time of the session and 

the absence of an opening auction 

process, the Exchange believes the 

proposed Curb trading session and 

proposed rules are still substantially 

similar to the current GTH trading 

session its corresponding rules, thereby 

providing consistency across all trading 

sessions with similar characteristics 

outside of RTH. 

The Exchange also believes the 

proposed rule change to extend the time 

Users have to cancel all GTC and GTD 

orders, and not just those participating 

in Curb, is reasonable. In particular, it 

provides Users with RTH Only GTC and 

GTD orders with additional time to 

cancel orders. Further, the Exchange 

notes that cancelling a RTH Only GTC 

or GTD order at the proposed time of 

5:15 p.m. has the same effect as 

cancelling that order at the current 

cutoff time of 4:45 p.m.—ultimately it 

accommodates the User’s goal of 

cancelling an order prior to it 

potentially executing during the RTH 

Opening Process the following morning 

(i.e., it merely provides 30 additional 

minutes to cancel a RTH Only GTC or 

GTH order). As such, the Exchange 

believes the proposed rule change 

provides Users with additional 

flexibility to manage their orders in all 

classes that remain in the Book 

following the Curb market close, thereby 

removing impediments to and 

perfecting the mechanism of a free and 

open market and a national market 

system, and, in general, protecting 

investors and the public interest. 

Finally, the Exchange believes the 

proposed changes to Rule 5.20(d) 

eliminate unnecessary distinctions 


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76 15 U.S.C. 78f. 

77 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). 

78 15 U.S.C. 78f(b)(5). 

79See Amendment No. 2, supra note 6, at 6. 

80See id. at 44. 

81See id. at 6. The Exchange has represented that 

all TPHs may, but will not be required to, 

participate during Curb. Id. at 38. 

82See id. at 45. 

83The Commission notes that Chapter 8 of 

CBOE’s Rules, among other things, prohibits TPHs 

from engaging in acts or practices inconsistent with 

just and equitable principles of trade or from 

making any willful or material misrepresentation, 

including a misstatement or false statement, or 

omission in any application, report or other 

communication to the Exchange, or to the OCC with 

between RTH and GTH//Curb as it 

relates to trading halt exceptions for 

index options. Particularly, the 

Exchange sees no reason why it should 

not allow the resumption of a halted 

security during GTH or Curb if a 

determination is made by two Floor 

Officials, in consultation with a 

designated senior executive officer of 

the Exchange, that the interests of a fair 

and orderly market are best served by a 

resumption of trading. Similarly, the 

Exchange does not believe there are 

distinguishing factors between (i) GTH 

and Curb and (ii) RTH that warrants 

precluding the Exchange from 

considering the factors under Rule 

5.20(a)(5) (relating to whether the 

opening process has been completed or 

the status of the opening process) in 

making a determination whether 

declaring a trading halt is appropriate. 

As is the case today, the Exchange is not 

required to take into consideration any 

of the factors listed under Rule 5.20(a), 

including subparagraph (5), when 

making a determination whether to halt 

trading. Moreover, the Exchange will 

continue to consider halting trading 

only in response to unusual conditions 

or circumstances, as it wants to 

interrupt trading as infrequently as 

possible and only if necessary, to 

maintain a fair and orderly market. 

Indeed, notwithstanding the proposed 

changes to Rule 5.20(d), the Exchange 

will continue to have the authority to 

manually halt trading during any 

trading session if it’s determined to be 

in the interests of a fair and orderly 

market and to protect investors. 

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 to adopt Curb 

Trading Hours will impose any burden 

on intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, because all 

TPHs will be able, but not be required, 

to participate during Curb, and will be 

able to do so using the same 

connectivity as they use during RTH 

and GTH. As discussed, participation in 

Curb will be voluntary and within the 

discretion of TPHs. While the proposed 

rule change increases the total time 

during which a Market-Maker with 

either a SPX and/or VIX appointment 

may be able quote, the Exchange 

believes the proposal will have a de 

minimis, if any, impact on a MarketMaker’s continuous quoting obligations, 

as they may continue to choose when to 

actively quote and have their obligations 

to their appointed classes apply. 

Furthermore, selecting an appointment 

in these options classes will be optional 

and within the discretion of a MarketMaker. Additionally, Market-Makers 

continue to have the opportunity to 

quote during Curb (and receive the 

benefits of acting as a Market-Maker 

with respect to transactions it effects 

during that time) without obtaining an 

additional Trading Permit or creating 

additional connections to the Exchange. 

The Exchange believes that extending 

the continuous quoting obligation to the 

Curb trading session in two classes is 

also outweighed by the Exchange’s 

efforts to add liquidity during Curb in 

All Sessions classes, the minimal 

preparation a Market-Maker may require 

to participate in the Curb trading 

session, and the benefits to investors 

that may result from that liquidity. 

Therefore, the Exchange believes the 

proposed rule change provides customer 

trading interest with a net benefit and 

continues to maintain a balance of 

Market-Maker benefits and obligations. 

The Exchange does not believe that 

the proposed rule change to adopt Curb 

Trading Hours 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 competitive 

initiative that will benefit the 

marketplace and investors. The 

Exchange believes the proposed rule 

change will enhance competition by 

providing a new service to investors that 

is not currently otherwise available for 

options. The Exchange further believes 

that the same level of competition 

among options exchanges will continue 

during RTH. Because the Exchange 

proposes to make only exclusively listed 

products available for trading during 

Curb, and because any All Sessions 

orders that do not trade during Curb 

will be eligible to trade during the RTH 

trading sessions in the same manner as 

all other orders during RTH, the 

proposed rule change will have no effect 

on the national best prices or trading 

during RTH. 

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. 2, is 

consistent with the requirements of the 

Act,76 and the rules and regulations 

thereunder applicable to a national 

securities exchange.77 In particular, the 

Commission finds that the proposed 

rule change, as modified by Amendment 

No. 2, is consistent with Section 6(b)(5) 

of the Act,78 which requires, among 

other things, that the rules of a national 

securities exchange 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. 

As described above, CBOE proposes 

to adopt a Curb trading session Monday 

through Friday that will provide a fortyfive minute electronic only session 

between 4:15 p.m. and 5:00 p.m. for 

SPX, VIX, and XSP options. The 

Exchange states that the additional 

trading session will increase the overlap 

in time that SPX, VIX, and XSP options 

are open alongside the related futures.79

Among other things, the Exchange 

believes that the Curb session is 

designed to respond to investor demand 

to hedge risk, react to global 

macroeconomic events 

contemporaneously, and adjust SPX, 

XSP, and VIX options positions outside 

of RTH.80 As a result, the Exchange 

believes that the proposal will provide 

market participants with expanded 

access to trade SPX, XSP, and VIX 

options.81

The Commission finds that the 

proposed Curb trading session and 

related conforming changes are 

consistent with the Act. As discussed 

above, the vast majority of CBOE’s rules, 

with certain exceptions, will continue to 

apply during Curb.82 For example, the 

Exchange represents, among other 

things, that the business conduct rules 

in Chapter 8 83 and rules related to 


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respect to the reporting or clearance of any 

Exchange transaction, or willfully or materially 

adjust any position at the OCC in any class of 

options traded on the Exchange except for the 

purpose of correcting a bona fide error in recording 

or of transferring the position to another account. 

See CBOE Rules 8.1 and 8.5. 

84The Commission notes that Chapter 9 of 

CBOE’s Rules, includes, among other things, rules 

on Suitability of Recommendations and Global 

Trading Hours Disclosure, which is being amended 

to include Curb Trading Hours. See CBOE Rules 9.3 

and Proposed CBOE Rule 9.20. 

85See Amendment No. 2, supra note 6 at 7, n.14. 

86See id. at 39. The Exchange has also 

represented that there will be no changes to the 

ranking, display, or allocation algorithms. See id. 

Moreover, the Commission notes that the Exchange 

intends to utilize the same LMM structure during 

Curb that it uses during GTH. See id. at 33. In 

addition, Market-Maker appointments would also 

apply to the Curb Trading Session pursuant to 

CBOE Rule 5.50(a). See id. at 32. 

87See id. at 41. 

88See id. at 41–42. 

89See id. at 39, n.59. 

90See id. at 37. 

91See proposed CBOE Rule 9.20. Pursuant to the 

proposed rule change, the Exchange will not report 

a value of an index underlying an index option 

trading during Curb because the value of the 

underlying index will not be recalculated during or 

at the close of Curb. See Amendment No. 2, supra 

note 6, at 10. The Exchange has represented, 

however, and the Commission expects that to the 

extent CGI as index calculator determines that SPX 

quotes during such session will support accurate 

VIX indicative values, CGI will reconsider whether 

to calculate and disseminate these values during 

Curb (and the Exchange would submit rule filings 

to amend the rules, as necessary). See id. at 11. 

92See id. at 29–30. 

93See CBOE Rule 5.31(d)(2). Pursuant to the rule, 

the System initiates an opening rotation for GTH at 

8:15 p.m. 

94According to the Exchange, there may be 

reduced liquidity, higher volatility and wider 

spreads during Curb and therefore, the Exchange 

believed it was appropriate for investor protection 

to not allow market orders to participate should 

wild price fluctuations occur due to the potential 

illiquid and volatile nature of the market or other 

factors that could impact market activity. See 

Amendment No. 2, supra note 6, at 18–19. 

95See CBOE Rule 5.20(a). 

96See CBOE Rule 5.20(b). 

97 15 U.S.C. 78k–1(a)(1)(C). 

98See Amendment No. 2, supra note 6, at 40, 

n.60. Further, according to the Exchange, the 

operator of OPRA intends to add a modifier to the 

disseminated information during Curb. 

doing business with the public in 

Chapter 9 84 will continue to apply 

during the Curb trading session, as well 

as a broker-dealer’s due diligence and 

best execution obligations.85 In 

addition, the processes for options 

clearing, settlement, exercise, and 

expiration, as well as order processing 86

and clearly erroneous trade breaks, will 

remain the same during Curb.87

Moreover, the Exchange has represented 

that it will perform all necessary 

surveillance and have qualified 

regulatory staff available during Curb in 

keeping with its obligations as an selfregulatory organization.88 The Exchange 

also states that it has held discussions 

with the OCC, which has informed the 

Exchange that it will be able to clear and 

settle all transactions that occur on the 

Exchange and handle exercises of 

options during Curb.89 As a result, the 

Commission finds that the proposed 

rule change is reasonably designed to 

help prevent fraudulent and 

manipulative acts and practices, and 

promote just and equitable principles of 

trade, by conditioning the increased 

availability for TPHs to trade during the 

additional Curb trading session with 

Exchange oversight and regulatory 

surveillance and reporting. 

The Commission also believes that 

CBOE’s disclosure requirement that 

obligates TPHs to make certain 

disclosures to customers regarding 

material trading risks that may exist 

during Curb is consistent with the 

protection of investors.90 Specifically, 

TPHs will be required to make certain 

disclosures to customers including the 

risk of lower liquidity, higher volatility, 

and wider spreads during Curb, as well 

as make clear that the underlying index 

or portfolio value and intraday 

indicative value may not be calculated 

or widely disseminated during Curb.91

The Commission believes that such 

disclosures should help ensure that 

customers are reasonably informed 

about the specific risks associated with 

trading during Curb. Further, these 

requirements are designed to mitigate, 

to the extent possible, the likelihood of 

investor confusion regarding the 

significant differences between the 

character of the market typical of RTH 

and Curb sessions. 

The Commission also notes that the 

Exchange has highlighted differences in 

the Rules between the trading process 

during Curb and the other trading 

sessions, such as generally not having 

an opening auction process and limiting 

the types of orders available during 

Curb. The Commission believes these 

differences are consistent with the 

differences between the trading 

sessions. For example, the Commission 

notes that the Curb session, unlike GTH, 

will begin immediately after the prior 

trading session, i.e., RTH, and therefore, 

any All Sessions orders resting on the 

Book will become eligible for execution 

during Curb, subject to a User’s 

instructions, without an opening 

rotation.92 However, in the event that 

Curb does not begin at 4:15 p.m. and 

there is a gap in time between RTH and 

Curb, then similar to GTH,93 proposed 

CBOE Rule 5.31(d)(3) would provide for 

an opening rotation. Also for example, 

similar to GTH, since trading would 

occur outside of RTH, trading would be 

electronic only and certain order types, 

such as market orders, would not be 

available during Curb.94

The Commission also believes that the 

Exchange’s proposed changes to its 

trading halts rule is consistent with the 

Act. The proposed changes would allow 

the Exchange to consider the extent to 

which the opening process has been 

completed or other factors regarding the 

status of the opening process in 

determining whether to halt trading and 

allow the Exchange to resume trading in 

a security that has been the subject of a 

trading halt. The Commission notes that 

pursuant to CBOE Rule 5.20, Trading 

Halts, generally any decisions to halt 

trading must be made by two Floor 

Officials, in consultation with a 

designated senior executive officer of 

the Exchange, in the interests of a fair 

and orderly market and to protect 

investors.95 Similarly, trading may be 

resumed upon a determination by two 

Floor Officials, in consultation with a 

designated senior executive officer of 

the Exchange that the interests of a fair 

and orderly market are best served by a 

resumption of trading.96 The proposed 

rule change is also consistent with 

Section 11A(a)(1)(C) of the Act.97

Congress found in those provisions that 

it is in the public interest and 

appropriate for the protection of 

investors and the maintenance of fair 

and orderly markets to assure the 

availability to brokers, dealers, and 

investors of information with respect to 

quotations for and transactions in 

securities, and to assure the 

practicability of brokers executing 

investors’ orders in the best market. The 

proposed rule change is designed to 

accomplish these objectives by ensuring 

that the Exchange will report its best bid 

and offer and executed trades to OPRA 

during the Curb session in the same 

manner that they are reported currently 

during RTH and GTH,98 thereby 

providing public transparency of 

activity during the Curb session. 

Finally, the Commission also believes 

that the Exchange’s proposed change to 

CBOE Rule 5.7(e), which would allow 

Users to cancel all GTC or GTD orders 

until 5:15 p.m. is also consistent with 

the Act. The Commission notes that 

Users are currently able to cancel such 

orders and quotes until 4:45 p.m. The 

Commission believes that this proposed 

change should provide Users with 

additional flexibility to manage their 

GTC or GTD orders. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether Amendment No. 2 is 


jspears on DSK121TN23PROD with NOTICES1
17374 Federal Register / Vol. 87, No. 59 / Monday, March 28, 2022 / Notices 

99See Securities Exchange Act Release Nos. 

94253 (February 15, 2022), 87 FR 9729 (February 

22, 2022) (SR–CBOE–2021–068) (Order Granting 

Approval of a Proposed Rule Change to Adopt a 

Modified Trading Schedule for Holidays) 

(‘‘Modified Holiday Trading Schedule Order’’); 

93799 (December 16, 2021), 86 FR 72654 (December 

22, 2021) (SR–CBOE–2021–074) (Notice of Filing 

and Immediate Effectiveness of a Proposed Rule 

Change to Make Juneteenth National Independence 

Day a Holiday of the Exchange); and 93646 

(November 22, 2021), 86 FR 67777 (November 29, 

2021) (SR–CBOE–2021–067) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

to Add a Held Order Instruction). The Exchange 

also corrected a marking error in the text of CBOE 

Rule 5.71(b)(2). 

100See Modified Holiday Trading Schedule 

Order, supra note 99. 

101See supra note 99. 

102 15 U.S.C. 78s(b)(2). 

103 Id. 

104 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(4)(ii). 

5 In Amendment No. 1, ICEEU expanded the 

description of the expected effect of the proposed 

changes as well as the basis for the proposed 

changes under the relevant law; however, the 

substance of the proposal is unchanged. 

6Capitalized terms used but not defined herein 

have the meanings specified in the Delivery 

Procedures or, if not defined therein, the ICE Clear 

Europe Clearing Rules. 

consistent with the Act. Comments may 

be submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number 

SR–CBOE–2021–071 on the subject line. 

Paper Comments 

• 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–2021–071. 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 (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–CBOE–2021–071 and 

should be submitted by April 18, 2022. 

Rebuttal comments should be submitted 

by May 2, 2022. 

V. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 2 

The Commission finds good cause for 

approving the proposed rule change, as 

amended by Amendment No. 2, prior to 

the 30th day after the date of 

publication of notice in the Federal 

Register. Amendment No. 2 provided 

technical and conforming changes to the 

rule text to reflect CBOE rules recently 

adopted by the Exchange.99 Amendment 

No. 2 also provided additional detail on 

several aspects of the proposal, 

including the impact of the recently 

adopted modified holiday trading 

schedule 100 on Curb and notifications 

relating to catastrophic error reviews. 

The Exchange also further discussed 

why it may be appropriate to resume 

trading during GTH and Curb after a 

trading halt and clarified the application 

of CBOE Rule 5.22 during Curb. As 

described above, the Commission 

believes that Amendment No. 2 does not 

change the substance of the proposed 

rule change, but merely adds detail and 

clarification to several items of the 

proposal and makes necessary 

conforming changes to reflect the 

recently approved modified holiday 

trading schedule, as well as makes 

necessary updates to its proposed 

rules.101 Accordingly, the Commission 

finds good cause for approving the 

proposed rule change, as amended, on 

an accelerated basis, pursuant to Section 

19(b)(2) of the Act.102

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,103 that the 

proposed rule change, as modified by 

Amendment No. 2 (SR–CBOE–2021– 

071) be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.104

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–06383 Filed 3–25–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94485; File No. SR–ICEEU– 

2022–007] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change, as Modified by 

Amendment No. 1, Relating to 

Amendments to the ICE Clear Europe 

Delivery Procedures 

March 22, 2022. 

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 March 8, 

2022, ICE Clear Europe Limited (‘‘ICE 

Clear Europe’’ or the ‘‘Clearing House’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule changes described in 

Items I, II and III below, which Items 

have been prepared primarily by ICE 

Clear Europe. ICE Clear Europe filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(4)(ii) thereunder,4 such that the 

proposed rule change was immediately 

effective upon filing with the 

Commission. On March 16, 2022, ICE 

Clear Europe filed Amendment No. 1 to 

the proposed rule change to make 

certain clarifications about the purpose 

of and statutory basis for the proposed 

rule changes.5 The Commission is 

publishing this notice to solicit 

comments on the proposed rule change, 

as modified by Amendment No. 1 

(hereafter the ‘‘proposed rule change’’), 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The principal purpose of the 

proposed amendments is for ICE Clear 

Europe to amend its Delivery 

Procedures (‘‘Delivery Procedures’’ or 

‘‘Procedures’’) to amend Part CC thereof 

(‘‘Part CC’’) to revise certain timingrelated delivery specifications 

applicable to Midland West Texas 

Intermediate American Gulf Coast 

Crude Oil Futures (‘‘Midland WTI 

Contracts’’).6


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