[Federal Register Volume 86, Number 230 (Friday, December 3, 2021)]
[Notices]
[Pages 68703-68711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26244]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93677; File No. SR-CBOE-2021-068]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing of a Proposed Rule Change To Adopt a Modified Trading Schedule 
for Holidays

November 29, 2021.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on November 15, 2021, Cboe Exchange, Inc. (the ``Exchange'' or 
``Cboe Options'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I, 
II, and III below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes 
to adopt a modified trading schedule for holidays. The text of the 
proposed rule change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the 
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the 
Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    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.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to adopt a modified trading schedule for 
holidays observed by the Exchange and amend and conform various rules 
relating to the proposed holiday trading sessions, as described more 
fully below. Particularly, the Exchange proposes to (i) adopt an 
additional Global Trading Hours (``GTH'') \3\ trading session that

[[Page 68704]]

would immediately precede domestic holidays and (ii) start the GTH 
session that immediately follows a holiday at 8:15 p.m. on the 
holiday.\4\ The proposed holiday schedule would provide expanded access 
to trade SPX and VIX options, which are designed to help enable 
investors to hedge or gain exposure to the broad U.S. market and global 
equity volatility.
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    \3\ 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. 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. Currently, only SPX, VIX and 
XSP are approved for trading during GTH. Although eligible, XSP is 
not currently listed for trading during GTH.
    \4\ If the holiday is observed on a Friday, GTH currently begins 
(and will continue to begin) at 8:15 p.m. on the following Sunday.
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    By way of background, the Exchange currently offers two trading 
sessions.\5\ Regular Trading Hours (``RTH'') and GTH. Rule 5.1 
currently sets forth the trading hours for the Exchange's RTH and GTH 
trading sessions, as well as the trading schedule for holidays observed 
by the Exchange. 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.\6\ but in no 
case later than 4:15 p.m.\7\ RTH for transactions in index options are 
from 9:30 a.m. to 4:15 p.m., subject to certain exceptions.\8\
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    \5\ The 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).
    \6\ All times referenced herein are Eastern Standard Time.
    \7\ See Rule 5.1(b)(1).
    \8\ See Rule 5.1(b)(2).
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    Currently, the GTH session begins at 3:00 a.m. and ends at 9:15 
a.m. on Monday through Friday.\9\ Effective November 21, 2021, the GTH 
session will begin at 8:15 p.m. (previous day) and end at 9:15 a.m. on 
Monday through Friday.\10\ However, effective November 21, 2021, any 
GTH session that follows a holiday listed under Rule 5.1(d) will 
instead begin at 12:00 a.m. on the calendar day immediately following 
the day the holiday is observed and end at 9:15 a.m., unless the 
holiday is observed on a Friday, in which case the subsequent GTH 
session will begin at 8:15 p.m. (Sunday) and will end at 9:15 a.m. 
(Monday).\11\ Transactions effected during the GTH session will have 
the same trade date as the RTH session that immediately follows it.\12\
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    \9\ See Rule 5.1(c).
    \10\ See also Securities Exchange Act Release No. 34-93403 
(October 22, 2021), 86 FR 59824 (October 28, 2021) (SR-CBOE-2021-
061). The Exchange notes that currently, [sic].
    \11\ Id.
    \12\ Transactions effected between 8:15 p.m. to 11:59 p.m. would 
be considered to have the trade date of the following business day. 
For example, any transactions effected during the GTH session that 
begins at 8:15 p.m. on Tuesday, November 23 will be considered to 
have the trade date of Wednesday, November 24 regardless of whether 
the trades were effected between 8:15 p.m. and 11:59 p.m. on 
Tuesday, November 23 or between 12:00 a.m. and 9:15 a.m. on 
Wednesday November 24.
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    Additionally, there are several holidays on which the Exchange is 
currently not open for business.\13\ For any holiday observed by the 
Exchange that falls on a Saturday, the Exchange is not open for 
business on the preceding Friday, and when any holiday observed by the 
Exchange falls on a Sunday, the Exchange is not open for business on 
the following Monday, unless unusual business conditions exist at the 
time. Currently, if the Exchange is not open for RTH on a day, 
including holidays, then it will not be open for GTH on that same 
day.\14\
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    \13\ See Rule 5.1(d). Currently, 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, Labor 
Day, Thanksgiving Day, or Christmas Day.
    \14\ See Cboe Rule 1.1, definition of ``Business Day'' and 
``Trading Day''.
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    The Exchange notes that it 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.\15\ 
Given that SPX and VIX options only traded during regular trading hours 
prior to the adoption of the GTH session, it was historically difficult 
for U.S. investors that traded in non-U.S. markets to use these 
products as part of their global investment strategies. Accordingly, 
the Exchange adopted the GTH session to meet that demand and allow 
market participants to engage in trading these options (SPX and VIX) in 
conjunction with trading VIX futures on Cboe Futures Exchange, LLC 
(``CFE'') during extended hours.\16\ Currently, VIX futures are open 
for trading on CFE nearly 23 hours a day, 5 days a week.\17\
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    \15\ See Securities Exchange Act Release No. 34-73017 (September 
8, 2014), 79 FR 54758 (September 12, 2014) (SR-CBOE-2014-062).
    \16\ Id.
    \17\ See CFE Rule 1202(b).
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    The Exchange also recently proposed to extend the GTH trading 
session in order to provide global market participants with expanded 
access to trade the products offered during GTH.\18\ In particular, the 
Exchange proposed to lengthen the current GTH session to 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 and VIX options positions nearly around the clock. 
Additionally, the proposed expanded hours overlap with the Asia Pacific 
markets, thereby offering a new segment of global market participants 
the opportunity to trade GTH products in their local time. The Exchange 
now proposes to also adopt a modified holiday trading hours schedule to 
provide global market participants the ability to trade during GTH 
sessions that overlap with U.S. domestic holidays. Particularly, the 
Exchange believes this proposal allows market participants to respond 
to international market conditions that may occur during the time the 
U.S. markets are closed due to a domestic holiday notwithstanding that 
global markets are still operating. The proposed change also further 
maximizes the overlap in time that SPX and VIX are open alongside the 
related futures contracts, as futures markets, including CFE, follow a 
modified holiday trading hours schedule that aligns with the Exchange's 
proposal.\19\
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    \18\ See Securities Exchange Act Release No. 34-73017 (September 
8, 2014), 79 FR 54758 (September 12, 2014) (SR-CBOE-2014-062).
    \19\ For example, the Exchange notes that CFE follows a holiday 
schedule that includes an extended trading hours session for VIX 
future that begin at 6:00 p.m. on the calendar day preceding a 
domestic holiday through 11:30 a.m. on the holiday. See Rule 
1202(b).
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Trading Hours
    The Exchange first proposes to amend Rule 5.1(c), which sets forth 
the trading hours for the GTH session. Specifically, the Exchange 
proposes to update Rule 5.1(c) to add a reference to the holiday hours 
set forth in Rule 5.1(d) (as discussed more fully below), as an 
exception to the otherwise codified GTH hours set forth under Rule 
5.1(c). The Exchange also proposes to eliminate the language that 
provides that a GTH session following a holiday will begin at 12:00 
a.m. (unless the holiday is observed on a Friday, in which case the GTH 
session begins at 8:15 p.m. on Sunday). Particularly, the Exchange 
proposes to allow the GTH session that immediately follows a holiday to 
start at the same time as GTH sessions on non-holidays (i.e., start at 
8:15 p.m.).
    The Exchange next proposes to amend Rule 5.1(d) to adopt modified 
trading schedules for domestic \20\ and

[[Page 68705]]

international \21\ holidays. First, the Exchange proposes to adopt Rule 
5.1(d)(1), which would outline the trading hours schedule for domestic 
holidays and provide specifically that for Martin Luther King, Jr. Day, 
Presidents' Day, Memorial Day, Independence Day, Labor Day, and 
Thanksgiving Day (i.e., domestic holidays), the trading day following 
the holiday will consist 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. Proposed Rule 5.1(d)(1) would also make clear that there 
will continue to be no RTH session on the day a domestic holiday is 
observed.
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    \20\ Domestic holidays include Martin Luther King, Jr. Day, 
Presidents' Day, Memorial Day, Independence Day, Labor Day and 
Thanksgiving Day.
    \21\ International holidays include Good Friday, Christmas Day 
and New Year's Day.
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    The Exchange notes the proposed hours of operation for the GTH 
session immediately preceding a RTH session that is closed due to a 
domestic holiday overlaps with the hours of operation of many 
international markets, which do not observe U.S. domestic holidays and 
are therefore still open at this time. For example, markets in Asia 
begin trading as early as 8:00 p.m. Eastern Standard Time and many 
European markets close at 11:30 a.m. Eastern Standard Time. 
Additionally, the proposed schedule is similar to the holiday schedule 
followed by futures markets (which also closes at 11:30 a.m. on 
holidays), thereby maximizing the overlap in time that SPX and VIX are 
open alongside related futures contracts.\22\ As noted above, there 
will also be a GTH trading session that starts on the holiday at 8:15 
p.m. (instead of 12:00 a.m. next day) and proceeds as normal until 9:15 
a.m. the following trading day (for non-Friday domestic holidays). This 
proposed change also provides global market participants an additional 
opportunity to trade in their local time and when their respective 
market, that does not observe U.S. domestic holidays, may still be 
operating.
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    \22\ See, e.g., CFE Rule 1202.
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    As noted above, these two GTH trading sessions are not considered 
to occur on separate trading days and are considered part of the next 
trading day (i.e., both GTH sessions will have the trade date of the 
trading day following the holiday).\23\ 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 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 Tuesday, which will be followed by a normal RTH session 
that begins as 9:30 a.m. on Tuesday. All trading from Sunday night 
through Tuesday RTH market close is considered to be part of the 
Tuesday trading day. The following also illustrates how the holiday 
schedule applies for U.S. domestic holidays that are observed on a 
Friday. For example, if Independence Day is observed on a Friday, the 
trading day following the Friday holiday (Monday Trading Day) will 
consist of three trading sessions: (1) A GTH session open from 8:15 
p.m. on the Thursday preceding Independence Day to 11:30 a.m. on 
Independence Day, (2) a GTH session from 8:15 p.m. on the Sunday 
following Independence Day to 9:15 a.m. on the following Monday and (3) 
a RTH session from 9:30 a.m. to 4:15 p.m. on Monday. All trading from 
Thursday night through Friday, and from Sunday night through Monday RTH 
market close is considered to be part of the Monday trading day.
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    \23\ Pursuant to Rule 6.4 (Reporting of Trades to OCC), all 
transactions made on the Exchange during these sessions will 
continue to be submitted for clearance to the Options Clearing 
Corporation (``OCC'') in the same manner they are today. However, as 
noted, such trades will have the trade date of the trading day 
following the holiday.
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    The Exchange next proposes to adopt Rule 5.1(d)(2) which would 
outline the trading hours schedule for international holidays and 
provide specifically that for Good Friday, Christmas Day and New Year's 
Day (i.e., international holidays), the trading day following the 
holiday will consist 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. Proposed Rule 
5.1(d)(2) would also make clear that there will continue to be no RTH 
session on the day an international holiday is observed nor a GTH 
session that immediately precedes the day an international holiday is 
observed. The Exchange does not propose to adopt a GTH trading session 
that immediately precedes an international holiday, as these holidays, 
unlike domestic holidays, are observed not just by U.S. residents, but 
by many global market participants. Therefore, many international 
markets are also closed in observance of these international holidays. 
Futures markets similarly do not provide an extended trading hours 
session that precede certain international holidays.\24\ Just like 
regular GTH trading sessions, a GTH trading session that starts on an 
international holiday at 8:15 p.m., will be considered part of the next 
trading day. The 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 RTH 
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 RTH market close on the following 
Monday is for a trading day of Monday.\25\
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    \24\ See e.g., CFE Rule 1202, which provides, among other 
things, that there will be no extended trading hours session 
preceding New Year's Day and Christmas Day.
    \25\ As a further example, if Christmas Day (December 25) is on 
a Tuesday, there will be no GTH session that begins the preceding 
Monday at 8:15 p.m. The Trading Day following Christmas Day would be 
Wednesday, December 26 and would consist of two trading sessions: 
(1) A GTH session from 8:15 p.m. on Christmas Day to 9:15 a.m. on 
Wednesday and (2) a regular RTH session from 9:30 a.m. to 4:15 p.m. 
on the Wednesday following Christmas Day. All trading from Tuesday 
at 8:15 p.m. through RTH market close on Wednesday is considered to 
be part of the Wednesday trading day (i.e., all transactions 
executed during these two sessions will have a trade date of 
December 26).
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Definitions
    In connection with the proposed modified holiday trading schedule, 
the Exchange proposes to amend the definition of ``business day'' and 
``trading day'' under Rule 1.1 (Definitions). Effective November 21, 
2021, ``business day'' and ``trading day'' will be defined as a day on 
which the Exchange is open for trading during RTH and includes the RTH 
session and the GTH session that immediately precedes it. Effective 
November 21, 2021, the definition will also provide that if the 
Exchange is not open for RTH on a day, then it will not be open for GTH 
immediately preceding what would have otherwise been the RTH session on 
that day. In light of the proposed modified holiday schedule for GTH 
discussed above, the Exchange proposes to update the definition of 
``business day'' and ``trading day''. Specifically, the Exchange 
proposes to eliminate the following language ``[i]f the Exchange is not 
open for Regular Trading Hours on a day, then it will not be open for 
Global Trading Hours on

[[Page 68706]]

that day'' and in its place add language that clarifies that a business 
day or trading day that immediately follows a domestic holiday pursuant 
to Rule 5.1(d) includes the RTH session and the two GTH sessions that 
immediately precede it. The Exchange believes the proposed amendments 
to the definition add clarity and alleviate potential confusion in 
connection with the proposed changes to the trading hours on holidays.
Entry of Orders, Quotes and Cancellations
    The Exchange lastly proposes to update Rule 5.7(e), which provides 
that after RTH market close, Users may cancel orders and quotes with 
Time-in-Force of Good-til-Cancelled (``GTC'') \26\ or Good-til-Date 
(``GTD'') \27\ that remain in the Book until 4:45 p.m. In light of the 
proposed holiday schedule for GTH sessions on domestic holidays (i.e., 
GTH session will end at 11:30 a.m. on a domestic holiday (observed)), 
the Exchange proposes to update Rule 5.7(e) to provide that on such 
domestic holidays, users may cancel orders and quotes with Time-in-
Force of GTC or GTD until 11:45 a.m. The Exchange notes that the 
proposed rule change would allow Users to cancel any GTC and GTD orders 
until 11:45 a.m. on domestic holidays, not just orders in All Sessions 
classes (i.e., SPX and VIX). 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 market 
close on holidays. In particularly, the Exchange notes that cancelling 
a RTH Only GTC or GTD order at 11:30 a.m. on a domestic holiday has the 
same effect as cancelling that order at 7:30 a.m. the following day--
ultimately it accommodates the User's goal of cancelling an order prior 
to it potentially executing during the RTH Opening Process the 
following morning.
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    \26\ See Rule 5.6(c). The terms ``Good-til-Cancelled'' and 
``GTC'' mean, for an order so designated, if after entry into the 
System, the order is not fully executed, the order (or unexecuted 
portion) remains available for potential display or execution (with 
the same timestamp) unless cancelled by the entering User, or until 
the option expires, whichever comes first. Users may not designate 
bulk messages as GTC.
    \27\ See Rule 5.6(c). The terms ``Good-til-Date'' and ``GTD'' 
mean, for an order so designated, if after entry into the System, 
the order is not fully executed, the order (or unexecuted portion) 
remains available for potential display or execution (with the same 
timestamp) until a date and time specified by the entering User 
unless cancelled by the entering User. Users may not designate bulk 
messages as GTD. A User may not designate a GTD order as Direct to 
PAR.
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Market-Maker Rules
    Current Rule 5.50(a) (Market-Maker Appointments) provides that a 
Market-Maker's selected class appointment applies to classes during all 
trading sessions. In other words, if a Market-Maker selects an 
appointment in SPX options, for example, that appointment would apply 
during both GTH and RTH (and thus, the Market-Maker would have an 
appointment to make markets in SPX during GTH and RTH). 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 both 
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.\28\ 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 
Market-Maker 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 GTH 
sessions (i.e., 8:15 p.m. (day prior to holiday) to 11:30 a.m. 
(holiday) or 8:15 p.m. (holiday) to 11:59 p.m. holiday), then so long 
as the Market-Maker doesn't log in and quote during those hours, the 
time between 8:15 p.m. (day prior to holiday) and 11:30 a.m. (holiday) 
and between 8:15 p.m. and 11:59 p.m. (holiday) won't be considered when 
determining a Market-Maker's compliance with the quoting obligations. 
Accordingly, the adoption of a modified trading schedule on holidays 
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. 
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 the holiday GTH 
trading hours (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 GTH 
holiday trading sessions, the Exchange believes Market-Makers may be 
encouraged to quote during the trading session, even as amended. The 
Exchange believes Market-Makers will continue to have an incentive to 
quote during the holiday GTH sessions 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 GTH 
notwithstanding the proposed holiday trading hours 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.
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    \28\ See Rule 5.52(d)(2).
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    The Exchange also does not anticipate any changes with respect to 
the current Lead-Market-Makers (``LMMs'') structure used 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. LMMs appointed 
in the GTH holiday sessions will therefore continue to not be obligated 
to satisfy heightened continuous quoting and opening quoting standards 
during GTH, nor will they receive a benefit in exchange for satisfying 
an obligation (i.e., LMMs do and will not receive a participation 
entitlement during GTH, including during holiday trading hours). The 
Exchange intends to adopt via a separate rule filing an incentive 
program that

[[Page 68707]]

provides appointed LMMs a rebate if they meet certain heightened 
continuous quoting standards during the GTH session, which includes GTH 
holiday sessions. The Exchange believes the such program will encourage 
LMMs to provide significant liquidity during GTH, including during the 
proposed holiday trading hours.
Discussion
    The Exchange notes that the proposed rule change to adopt a 
modified holiday trading schedule makes no changes to the trading rules 
applicable to GTH. The GTH trading session, including GTH holiday 
sessions, will continue to be separate trading sessions from RTH and 
the rules that currently apply (or don't apply) to the current GTH 
session will continue to apply (or not apply) to the GTH holiday 
session.\29\ The Exchange will continue to use the same servers and 
hardware during the GTH holiday sessions as it uses for RTH and GTH 
today. Further, TPHs may continue to use the same ports and connections 
to the Exchange for all trading sessions. The Book used during the GTH 
holiday sessions will also be the same Book used currently during RTH 
and GTH. The Exchange also notes the following:
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    \29\ For example, business conduct rules in Chapter 8 and rules 
related to doing business with the public in Chapter 9 will continue 
to apply during the GTH holiday session. Additionally, a broker-
dealer's due diligence and best execution obligations apply during 
the GTH holiday session. As there will still be no open outcry 
trading on the floor during GTH, Chapter 5, Section G will continue 
not to apply as such rules pertain to manual order handling and 
open-outcry trading.
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     All TPHs will continue to be allowed to, but will not be 
required to, participate during GTH holiday trading hours.\30\ 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 holiday trading hours, the Exchange believes any additional 
burden related to the application of a Market-Maker's quoting 
obligation to the additional time added to those hours will be de 
minimis. The Exchange believes even if a Market-Maker elects to not 
quote during GTH holiday trading hours, its ability to satisfy its 
continuous quoting obligation will not be substantially impacted given 
the few classes that will be listed for trading during GTH.
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    \30\ In order to participate in GTH, even as amended, a Trading 
Permit Holder (``TPH'') must have a letter of guarantee from a 
Clearing TPH that is properly authorized by the Options Clearing 
Corporation (``OCC'') to operate during the GTH session. See Cboe 
Options Rule 3.61.
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     The Exchange will continue to use the same connection 
lines, message formats, and feeds during RTH and GTH, including GTH 
holiday sessions.\31\ TPHs may use the same ports and EFIDs \32\ for 
each trading session.\33\ Accordingly, the Exchange expects TPHs that 
want to trade during the holiday trading hours to have minimal 
preparation.
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    \31\ The same telecommunications lines used by TPHs during RTH 
and/or GTH today may be used during GTH, even as extended, and these 
lines will be connected to the same application server at the 
Exchange during both trading sessions.
    \32\ The 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.
    \33\ A TPH may elect to have separate ports or EFIDs for each 
trading session, but the Exchange will not require that.
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     The same opening process will continue to be used to open 
GTH.
     Order processing will operate in the same manner as it 
does during RTH and the current GTH session. 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.\34\
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    \34\ The 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 during the proposed holiday trading hours subject to 
its existing requirements for transactions executed during extended 
and overnight trading sessions. See Exchange Act Release No. 74268 
(February 12, 2015), 80 FR 8917 (February 19, 2015) (SR-OCC-2014-
024) (approval of proposed rule change concerning extended and 
overnight trading sessions), which applies to both index options and 
index future products.
---------------------------------------------------------------------------

     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 Sale 
Reports and Quotation Information (the ``OPRA Plan'') during the 
proposed additional holiday hours in the same manner it currently 
reports this information to OPRA during RTH and GTH today.\35\ The 
Exchange will also continue to disseminate an opening quote and trade 
price through OPRA during the proposed additional holiday trading hours 
(as it does for RTH and GTH today). Therefore, all TPHs that elect to 
trade during the proposed holiday trading hours will have access to 
quote and last sale information during that trading session. Exchange 
proprietary data feeds will also continue to be disseminated during 
holiday trading hours 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 holiday trading hours will be 
optional (as they are today during RTH and GTH).\36\
---------------------------------------------------------------------------

    \35\ The 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 
additional holiday trading hours in the same manner that they are 
reported during RTH and GTH today.
    \36\ Any fees related to receipt of the OPRA data feed during 
GTH would be included on the OPRA fee schedule. Any fees related to 
receipt of the Exchange's proprietary data feeds during GTH 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.
---------------------------------------------------------------------------

     The same TPHs that are required to maintain connectivity 
to a backup trading facility during RTH and GTH today will be required 
to do so during the proposed holiday trading hours.\37\ Because the 
same connections and servers will be used for all trading sessions, 
including any holiday trading hours, 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 holiday trading hours.
---------------------------------------------------------------------------

    \37\ See Rule 5.24.
---------------------------------------------------------------------------

     The Exchange will process all clearly erroneous trade 
breaks during holiday trading hours in the same manner it does during 
RTH and GTH today and will have Exchange officials available to do so.
     The Exchange will perform all necessary surveillance 
coverage during holiday trading hours.
     The Exchange may halt trading during GTH holiday sessions 
in the interests of a fair and orderly market in the same manner it may 
during RTH and GTH today pursuant to Rule 5.20. 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.\38\
---------------------------------------------------------------------------

    \38\ See Rule 5.20(a)(6). As discussed above, futures markets 
already follow a modified holiday trading schedule similar to what 
the Exchange is proposing. As such, should a halt of trading in 
related futures occur during the time a GTH holiday session is open, 
then the Exchange may consider whether to halt during that session, 
just as it may do during regular GTH (and RTH) sessions.
---------------------------------------------------------------------------

     Rule 5.22 (Market-wide Trading Halts due to Extraordinary 
Market Volatility) will continue to not apply during GTH, including the 
proposed GTH holiday sessions. Under Rule 5.22, 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

[[Page 68708]]

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 continue not to apply during the proposed GTH holiday 
sessions, just as it does not apply during GTH today, as the beginning 
of the GTH holiday session will occur past the 15-minute halt window 
for a Level 1 or Level 2 Market Decline. Rule 5.22(b)(2) will also not 
apply to the GTH holiday session, as the GTH holiday sessions are still 
considered a different (i.e., the next) trading day than the preceding 
RTH session (even though a GTH holiday session may begin on the same 
calendar day as such a halt). As such, if a Level 3 Market Decline 
occurs at any time during the RTH session immediately preceding a 
holiday, the Exchange will halt trading in SPX and VIX only until the 
start of the GTH holiday session. The Exchange believes that it is 
appropriate to continue to not apply Rule 5.22(b) because, even if 
stock trading was halted at the close of the previous trading day, the 
condition that led to the halt is likely to have been resolved by the 
time the GTH holiday session starts given the length of time between 
the close of the previous trading day and the proposed start time of 
GTH holiday session (approximately 4 hours). Moreover, current Rule 
5.20(a) continues to allow the Exchange to consider unusual conditions 
or circumstances when determining whether to halt trading during GTH. 
To the extent a circuit breaker caused a stock market to be closed at 
the end of the prior trading day, the Exchange could consider, for 
example, whether it received notice from stock exchanges that trading 
was expected to resume (or not) the next trading day (after the 
holiday) in determining whether to halt trading during a GTH holiday 
session. Because the stock markets would not begin trading until after 
GTH opens, the Exchange believes it should be able to open a GTH 
holiday session rather than waiting up to a few days to see whether 
stock markets open to allow investors to participate in GTH if the 
Exchange believe such trading can occur in a fair and orderly manner 
based on then-existing circumstances, not circumstances that existed 
many hours earlier.
    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 GTH holiday trading hours. Thus, the Exchange 
will have appropriate staff on-site and otherwise available as 
necessary during the proposed GTH holiday sessions 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 GTH trading hours. 
The Exchange is also committed to fulfilling its obligations as a self-
regulatory organization at all times, including during GTH, and will 
have appropriately trained, qualified regulatory staff in place during 
GTH holiday sessions to the extent it deems necessary to satisfy those 
obligations. The Exchange believes its surveillance procedures are 
adequate to properly monitor trading during the proposed GTH holiday 
sessions but notes if additional changes are needed in the future, it 
will revise such procedures to the extent necessary.
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 a modified GTH holiday 
schedule to market-participants via a Trade Desk notice earlier this 
year.\39\ Since then, the Exchange has issued numerous updated notices, 
FAQs and detailed technical specifications.
---------------------------------------------------------------------------

    \39\ See Exchange Notice C2021032501 ``Cboe Options Exchange 
Releases Technical Specifications in Support of Extended Global 
Trading Hours''.
---------------------------------------------------------------------------

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.\40\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \41\ 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) \42\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \40\ 15 U.S.C. 78f(b).
    \41\ 15 U.S.C. 78f(b)(5).
    \42\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes the proposed rule change to 
adopt a modified holiday schedule will remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system and will not significantly affect the protection of investors or 
the public interest. Particularly, the proposed rule change provides an 
enhanced investment opportunity within the options trading industry 
that is consistent with the continued globalization of the securities 
markets and closer aligns the Exchange's trading hours with extended 
trading hours of futures exchanges and also market hours of other 
geographic regions. The adoption of a modified holiday trading schedule 
is a competitive initiative designed to improve the Exchange's 
marketplace for the benefit of investors and allow the Exchange to 
provide a competitive marketplace for market participants to trade 
certain products for an additional period of time outside of RTH. More 
specifically, the adoption of GTH holiday sessions are designed to 
increase the overlap in time that SPX and VIX options are open 
alongside the related futures contracts and further aims to provide 
global market participants with expanded access to trade the products 
offered during GTH. As discussed above, the proposed modified holiday 
trading schedule 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 and VIX 
options positions nearly around the clock. Indeed, the proposal allows 
market participants operating in geographic locations that do not 
observe U.S. domestic holidays to respond to international market 
conditions that may occur during such holidays. The proposed rule 
change also provides a mechanism for the Exchange to more effectively 
compete with exchanges located outside of the United States. Global 
markets have become increasingly interdependent and linked,

[[Page 68709]]

both psychologically and through improved communications technology. 
This has been accompanied by an increased desire among investors to 
have access to U.S.-listed exchange products outside of regular trading 
hours, and the Exchange believes this desire extends to its exclusively 
listed products. Indeed, market participants in the Asia Pacific region 
and Europe have expressed their interest in having the ability to 
participate in the GTH session during their market hours, which 
coincide with the proposed holiday trading schedule. As described 
above, markets in Asia begin trading as early as 8:00 p.m. Eastern 
Standard Time and many European markets close at 11:30 a.m. Eastern 
Standard Time. Accordingly, the proposed GTH holiday session provides 
market participants an additional opportunity to trade in their local 
time when their respective market (that does not observe U.S. domestic 
holidays) is still operating. The Exchange therefore believes that the 
proposed rule change is reasonably designed to provide an appropriate 
mechanism for additional trading hours available outside of its current 
RTH and GTH sessions, 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 current GTH trading session).\43\ Furthermore, 
the Commission has authorized U.S. stock exchanges to be open for 
trading outside of regular trading hours.\44\ Additionally, as noted 
above, futures exchanges also operate during the hours proposed to be 
adopted, including the Exchange's affiliate, CFE, which is open during 
the holiday hours the Exchange proposes to adopt.\45\
---------------------------------------------------------------------------

    \43\ See Cboe Options Rule 5.1, C2 Rule 5.1 and Cboe EDGX Rule 
21.2.
    \44\ See 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).
    \45\ See, e.g., CFE Rule 1202, which outlines the trading 
schedule for futures on the Cboe Volatility Index and includes 
holiday trading sessions that begin at 6:00 p.m. the day prior to a 
holiday and ends at 11:30 a.m. on the holiday and another extending 
trading hours session that begins at 6:00 p.m. on the holiday.
---------------------------------------------------------------------------

    As described in detail above, the Exchange's trading rules that 
apply to GTH today will continue to apply during the proposed GTH 
holiday trading hours, which rules have all been previously filed with 
the Commission as being consistent with the goals of the Act. Rules 
that will continue to apply during the proposed holiday 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 Exchange's rules will also 
continue to provide opportunities for price improvement during the 
proposed holiday trading hours and applies the same allocation and 
priority rules that are available to the Exchange during RTH and GTH 
today. The Exchange believes, therefore, that the rules that will apply 
during the proposed holiday trading hours 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 the proposed holiday hours will be different from 
trading during current GTH (such as clarifying the trading sessions 
that will be considered part of the trading day following a holiday). 
This ensures that investors are aware of any differences relating to 
the proposed additional trading hours. Additionally, the Exchange notes 
that it will continue to require that disclosures be made to customers 
describing potential risks, which will continue to further protect 
investors from any additional risks related to trading during GTH.\46\ 
The Exchange believes that, with these disclosures, GTH remains 
appropriate and beneficial. The All Sessions order \47\ and RTH Only 
order \48\ 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 holiday GTH 
trading hours. Consistent with the goal of investor protection, the 
Exchange will not allow market orders during the proposed holiday GTH 
trading hours due to the expected increased volatility and decreased 
liquidity during these hours, just as it does not currently allow such 
orders during GTH today for the same reasons.
---------------------------------------------------------------------------

    \46\ See Cboe Options Rule 9.20.
    \47\ An All Sessions order is an order a User designates as 
eligible to trade during both GTH and RTH. See Cboe Options Rule 
5.6(c).
    \48\ An RTH Only order is an order a User designates as eligible 
to trade only during RTH or not designated as All Sessions. See Cboe 
Options Rule 5.6(c).
---------------------------------------------------------------------------

    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 the proposed 
additional GTH holiday hours (as it does during current GTH hours) to 
provide appropriate trading support during those hours, as well as 
Exchange officials to make any necessary determinations under the rules 
during GTH (such as trading halts and trade nullification for obvious 
errors). The Exchange is also committed to continuing to fulfill its 
obligations as a self-regulatory organization at all times, including 
during the proposed holiday hours. The Exchange believes its 
surveillance procedures are adequate to properly monitor trading during 
the proposed holiday trading hours. Clearing and settlement processes 
will be the same for transactions executed during the proposed holiday 
GTH trading hours as they are for transactions executing during RTH or 
GTH trading session today.
    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 
the proposed holiday trading hours using the same connection lines, 
message formats data feeds, and EFIDs they use during RTH and GTH 
today, minimizing any preparation efforts necessary to participate 
during the proposed hours. TPHs will continue not be required to trade 
during GTH.
    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 Market-
Makers 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 GTH session today does not wish to quote 
during the proposed holiday GTH trading hours, then so long as such 
Market-Maker does not log into the system and quote during those hours 
(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

[[Page 68710]]

be optional and within the discretion of a Market-Maker. Additionally, 
Market-Makers continue to have the opportunity to quote during GTH and 
the proposed holiday GTH trading hours (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 
holiday GTH trading hours 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 on holidays (which 
may permit execution of certain hedging strategies). The Exchange 
believes continuing to extend a Market-Maker's appointment to the GTH 
holiday trading hours will enhance liquidity during that time, which 
benefits all investors during those hours. The Exchange believes that 
any slight additional burden of extending the continuous quoting 
obligation to the additional hours being added in the eligible classes 
would be outweighed by the Exchange's efforts to add liquidity during 
the proposed holiday GTH trading session in All Sessions classes, the 
minimal preparation a Market-Maker may require to participate in the 
holiday GTH 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 proposed rule change is also consistent with Section 11A of the 
Act and Regulation NMS thereunder, because it continues to provide for 
the dissemination of transaction and quotation information during GTH, 
including holiday GTH trading hours, 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.\49\ As discussed, 
the Exchange, as well as other options exchanges, already offer trading 
sessions outside of regular trading hours.\50\
---------------------------------------------------------------------------

    \49\ See 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 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, including GTH holiday trading hours. 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.
    \50\ See, e.g., Cboe Options Rule 5.1, C2 Rule 5.1 and Cboe 
EDGX. Rule 21.2.
---------------------------------------------------------------------------

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 a modified holiday 
trading schedule 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 the additional trading hours, and will be able to do so using 
the same connectivity as they use during RTH and GTH today. As 
discussed, participation in GTH, including the proposed modified 
holiday trading schedule, 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 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. Furthermore, selecting an 
appointment in these options classes will be optional and within the 
discretion of a Market-Maker. Additionally, Market-Makers continue to 
have the opportunity to quote during GTH and any holiday trading hours 
(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 additional trading hours being added is also 
outweighed by the Exchange's efforts to add liquidity during the entire 
GTH trading session in All Sessions classes, the minimal preparation a 
Market-Maker may require to participate in the GTH 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 a modified holiday schedule 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. 
Additionally, all options exchanges are free to compete in the same 
manner. The Exchange further believes that the same level of 
competition among options exchanges will continue during RTH. Because 
the Exchange will continue to make only exclusively listed products 
available for trading during GTH, including GTH holiday trading hours, 
and because any All Sessions orders that do not trade during GTH will 
be eligible to trade during the RTH trading sessions in the same manner 
as all other orders submitted during RTH, the proposed rule change will 
have no effect on the national best prices or trading during RTH. The 
Exchange also believes the proposed rule change could further increase 
its competitive position outside of the United States by providing 
investors with an additional investment vehicle with respect to their 
global trading strategies during times that better correspond with 
parts of regular trading hours outside of the United States.

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. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will:
    A. By order approve or disapprove such proposed rule change, or

[[Page 68711]]

    B. institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is 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 [email protected]. Please include 
File Number SR-CBOE-2021-068 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-2021-068. 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-2021-068 and should be submitted on 
or before December 27, 2021.
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    \51\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\51\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-26244 Filed 12-2-21; 8:45 am]
BILLING CODE 8011-01-P


