Cboe Options to introduce default clearing by symbol for electronic Market-Maker Option trades
Effective trade date March 11, 2024, all Cboe-affiliated U.S. Options Exchanges will support default clearing by underlying symbol for electronic Market-Maker Option trades.
A new EFID/OCC ID Clearing Association tool will be available in the Cboe Customer Web Portal to enable OCC clearing configuration.
Currently, Cboe supports default clearing by port for both floor and electronic trades, and by symbol (OSI root) for floor Market-Maker trades. Upon the effective date, Cboe will add support for default clearing by symbol for electronic, non-floor eligible Option orders and quotes.
Customers with the EFID/OCC ID Clearing Association entitlement will use the new EFID/OCC ID Clearing Association tool in the Cboe Customer Web Portal to configure replacement OCC clearing numbers based on the EFID and underlying symbol.
The tool will override the configured OCC clearing number on quotes and electronically entered orders with OrderCapacity (FIX Tag 47) = ‘M’ or ‘N’. Any order or trade records will reflect the configured OCC clearing number and will clear at the OCC in the replacement clearing account. If no replacement OCC clearing number is configured in the EFID/OCC ID Clearing Association tool for that symbol, no replacement will be made and the OCC clearing number associated with the EFID on the order or quote will be used for OCC clearing.
The EFID/OCC ID Clearing Association tool will allow customers to select any future effective trading date but will not allow intraday changes. Updates must be completed by 5:00 p.m. ET the previous day to become effective for the next trading day. Firms utilizing this functionality should collate invoice records from multiple OCC clearing numbers to a single EFID in any EFID-based reports from Cboe.