Cboe Options Exchange to introduce new Curb session
Cboe Options Exchange plans to introduce a new Curb session.
As previously announced, the Exchange will be extending the existing Global Trading Hours (GTH) session and introducing a 24×5 trading model in its proprietary VIX and SPX options products later this year, subject to regulatory review.
As part of this effort, effective September 27, 2021, the Exchange will be introducing a brief Curb session operating from 4:30 p.m. to 5:00 p.m. ET Monday through Friday for VIX and SPX proprietary index options.
To support Member testing, Cboe intends to enable the new Curb session in the Cboe Options certification environment August 2, 2021.
Cboe’s expansion of its GTH session is expected to complement its planned entry into the Asia Pacific markets, where it sees opportunity to further broaden its distribution network and offer a wide range of its core product offerings, including its proprietary products and global market data service, to customers in the region. Let’s recall that in March, Cboe announced its plans to acquire Chi-X Asia Pacific, operator of Chi-X Australia and Chi-X Japan.
SPX and VIX options are currently available in a GTH session that runs from 3:00 a.m. ET to 9:15 a.m. ET. In 2020, the combined average daily volume (ADV) for SPX and VIX options during the current GTH session increased 76 percent over 2019. VIX futures are currently available in nearly 24×5 trading.
The planned expanded GTH session would commence at 8:15 p.m. ET and run until 9:15 a.m. ET the following morning. Regular trading hours (RTH) then run from the U.S. market open at 9:30 a.m. ET until the market close at 4:15 p.m. ET. The RTH session will also be followed by a new curb session – an extra half hour session for electronic trading beginning at 4:30 p.m. ET– which will be added Monday through Friday in the third quarter of 2021.