[Federal Register Volume 87, Number 35 (Tuesday, February 22, 2022)]
[Notices]
[Pages 9729-9733]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-03650]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94253; File No. SR-CBOE-2021-068]


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

February 15, 2022.

I. Introduction

    On November 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 modified trading schedule for holidays. 
The proposed rule change was published for comment in the Federal 
Register on December 3, 2021.\3\ On January 12, 2022, the Commission 
designated a longer period for Commission action on the proposed rule 
change, until March 3, 2022.\4\ The Commission has received no comment 
letters on the proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 93677 (November 29, 
2021), 86 FR 68703 (``Notice'').
    \4\ See Securities Exchange Act Release No. 93955, 87 FR 2971 
(January 19, 2022).
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II. Description of the Proposed Rule Change

    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'') \5\ trading session that 
would immediately precede domestic holidays and (ii) start the GTH 
session that immediately follows a holiday at 8:15 p.m. on the 
holiday.\6\
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    \5\ 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.
    \6\ If the holiday is observed on a Friday, GTH currently begins 
(and would continue to begin) at 8:15 p.m. on the following Sunday.
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    The Exchange currently offers two trading sessions.\7\ Regular 
Trading Hours (``RTH'') and GTH. CBOE 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. RTH for 
transactions in index options are from 9:30 a.m. to 4:15 p.m., subject 
to certain exceptions.\8\ Currently, the GTH session begins at 8:15 
p.m. (previous day) and end at 9:15 a.m. on Monday through Friday.\9\ 
Any GTH session that follows a holiday listed under Rule 5.1(d) begins 
at 12:00 a.m. on the calendar day immediately following the day the 
holiday is observed and ends 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).\10\ 
Transactions effected during the GTH session have the same trade date 
as the RTH session that immediately follows it.\11\
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    \7\ 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 be 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 CBOE Rule 1.1 (Definitions).
    \8\ See CBOE Rule 5.1(b)(2).
    \9\ See also Securities Exchange Act Release No. 93403 (October 
22, 2021), 86 FR 59824 (October 28, 2021) (SR-CBOE-2021-061).
    \10\ Id.
    \11\ 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.\12\ 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

[[Page 9730]]

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.\13\
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    \12\ See CBOE 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.
    \13\ See CBOE Rule 1.1, definition of ``Business Day'' and 
``Trading Day''.
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    The Exchange now proposes to also adopt a modified holiday trading 
hours schedule to, according to the Exchange, provide global market 
participants the ability to trade during GTH sessions that overlap with 
U.S. domestic holidays.

Trading Hours

    The Exchange proposes to amend CBOE Rule 5.1(d) to adopt modified 
trading schedules for domestic \14\ and international \15\ 
holidays.\16\ First, the Exchange proposes to adopt CBOE 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 would consist of the following three trading sessions: (i) 
A GTH session from 8:15 p.m. on the calendar day preceding the holiday 
(observed) to 11:30 a.m. on the holiday (observed), (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.\17\ Proposed CBOE Rule 5.1(d)(1) 
would also make clear that there would continue to be no RTH session on 
the day a domestic holiday is observed. According to the Exchange, 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. 
Moreover, both GTH trading sessions would be considered part of the 
next trading day (i.e., both GTH sessions would have the trade date of 
the trading day following the holiday).\18\ As an example, the holiday 
GTH session preceding Memorial Day would 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 would then be closed at 11:30 a.m. on Memorial Day (Monday) 
(i.e., there would be no RTH session on Memorial Day). The next GTH 
trading session would begin at 8:15 p.m. on Memorial Day and proceed as 
normal until 9:15 a.m. on Tuesday, which would 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 would be 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) would 
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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    \14\ Domestic holidays include Martin Luther King, Jr. Day, 
Presidents' Day, Memorial Day, Independence Day, Labor Day and 
Thanksgiving Day.
    \15\ International holidays include Good Friday, Christmas Day 
and New Year's Day.
    \16\ The Exchange also proposes making conforming changes to 
CBOE Rule 5.1(c) to reflect the proposed holiday schedule. See 
Notice, supra note 3, 86 FR at 68704.
    \17\ The Exchange would further amend the definition of 
``Business Day and Trading Day'' under Proposed CBOE Rule 1.1 to 
conform to the proposed rule change by clarifying that a ``business 
day or trading day that immediately follows a domestic holiday . . . 
includes the Regular Trading Hours session and the two Global 
Trading Hours sessions that immediately precede it.'' See also 
Notice, supra note 3, 86 FR at 68705-06.
    \18\ Pursuant to CBOE 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 CBOE 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 would 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. Pursuant to 
proposed CBOE Rule 5.1(d)(2) there would not be a RTH session on the 
day an international holiday is observed nor a GTH session immediately 
preceding the day an international holiday is observed, since according 
to the Exchange, international 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.\19\ Just like regular GTH 
trading sessions, a GTH trading session that starts on an international 
holiday at 8:15 p.m., would be considered part of the next trading day. 
For example, there would be no GTH session immediately preceding Good 
Friday (i.e., no GTH session that starts on Thursday). Rather, the 
market would 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.
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    \19\ Moreover, according to the Exchange, futures markets 
similarly do not provide an extended trading hours session that 
precede certain international holidays. 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.
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Entry of Orders, Quotes and Cancellations

    The Exchange lastly proposes to update CBOE 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'') \20\ or Good-
til-Date (``GTD'') \21\ 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., the GTH session would end at 11:30 a.m. on a domestic 
holiday (observed)), the Exchange proposes to amend CBOE 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. Pursuant to 
the proposed rule change, Users would be able to cancel any GTC and GTD 
orders until 11:45 a.m. on domestic holidays, not just

[[Page 9731]]

orders in All Sessions classes (i.e., SPX and VIX).\22\
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    \20\ See CBOE 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.
    \21\ See CBOE 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.
    \22\ See Notice, supra note 3, 86 FR at 68706.
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Market-Maker Rules

    Current CBOE 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) would apply 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.\23\ According to the Exchange, it 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.\24\ However, 
according to the Exchange, 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.\25\ Accordingly, if a 
Market-Maker does not wish to quote during the proposed new GTH 
sessions, then so long as the Market-Maker does not log in and quote 
during those hours, it would not be considered when determining a 
Market-Maker's compliance with the quoting obligations.\26\
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    \23\ See CBOE Rule 5.52(d)(2).
    \24\ See Notice, supra note 3, 86 FR at 68706.
    \25\ Id.
    \26\ Id.
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    Further, the Exchange has represented that it does not anticipate 
any changes with respect to the current Lead-Market-Makers (``LMMs'') 
structure used today during GTH.\27\ Accordingly, LMMs appointed in the 
GTH holiday sessions would therefore continue to not be obligated to 
satisfy heightened continuous quoting and opening quoting standards 
during GTH, nor would they receive a benefit in exchange for satisfying 
an obligation (i.e., LMMs do and would not receive a participation 
entitlement during GTH, including during holiday trading hours).\28\
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    \27\ Id.
    \28\ Id.
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Exchange Representations

    According to the Exchange, the proposed rule change to adopt a 
modified holiday trading schedule would not make any changes to the 
trading rules applicable to GTH.\29\ The GTH trading session, including 
GTH holiday sessions, would continue to be a separate trading sessions 
from RTH and the rules that currently apply (or do not apply) to the 
current GTH session would continue to apply (or not apply) to the GTH 
holiday session.\30\ The Exchange would continue to use the same 
servers and hardware during the GTH holiday sessions as it uses for RTH 
and GTH today.\31\ Further, according to the Exchange, Trading Permit 
Holders (``TPHs'') may continue to use the same ports and connections 
to the Exchange for all trading sessions.\32\ The Book used during the 
GTH holiday sessions would also be the same Book used currently during 
RTH and GTH.\33\ Moreover, the Exchange represented the following:\34\
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    \29\ Id.
    \30\ For example, business conduct rules in Chapter 8 and rules 
related to doing business with the public in Chapter 9 would 
continue to apply during the GTH holiday session. Id. at 68707, 
n.29. Additionally, a broker-dealer's due diligence and best 
execution obligations would apply during the GTH holiday session. 
Id. As there would still be no open outcry trading on the floor 
during GTH, Chapter 5, Section G would continue not to apply as such 
rules pertain to manual order handling and open-outcry trading. Id.
    \31\ Id. at 68707.
    \32\ Id.
    \33\ Id.
    \34\ Id.
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     All TPHs would continue to be allowed to, but would not be 
required to, participate during GTH holiday trading hours.\35\
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    \35\ In order to participate in GTH, even as amended, a TPH must 
have a letter of guarantee from a Clearing TPH that is properly 
authorized by the OCC to operate during the GTH session. See CBOE 
Rule 3.61.
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     The Exchange would continue to use the same connection 
lines, message formats, and feeds during RTH and GTH, including GTH 
holiday sessions.\36\ TPHs may use the same ports and EFIDs \37\ for 
each trading session.\38\
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    \36\ The same telecommunications lines used by TPHs during RTH 
and/or GTH today may be used during GTH, even as extended, and these 
lines would be connected to the same application server at the 
Exchange during both trading sessions.
    \37\ The term ``EFID'' means an Executing Firm ID. See CBOE Rule 
1.1. 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.
    \38\ A TPH may elect to have separate ports or EFIDs for each 
trading session, but the Exchange would not require that.
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     The same opening process would continue to be used to open 
GTH.
     Order processing would operate in the same manner as it 
does during RTH and the current GTH session. There would be no changes 
to the ranking, display, or allocation algorithms rules.
     There would be no changes to the processes for clearing, 
settlement, exercise, and expiration.
     The Exchange would 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 (``OPRA Plan'') during the proposed 
additional holiday hours in the same manner it currently reports this 
information to OPRA during RTH and GTH today.\39\ The Exchange would 
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 would have access to quote and last 
sale information during that trading session. Exchange proprietary data 
feeds would 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 would be optional 
(as they are today during RTH and GTH).
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    \39\ The Exchange represents that it would 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.
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     The same TPHs that are required to maintain connectivity 
to a backup trading facility during RTH and GTH today would be required 
to do so during the proposed holiday trading hours.\40\ According to 
the Exchange, because the same connections and servers would be used 
for all trading sessions, including any holiday trading hours, a TPH 
would not be required to take any additional action to comply with this 
requirement,

[[Page 9732]]

regardless of whether the TPH chooses to trade during holiday trading 
hours.
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    \40\ See CBOE Rule 5.24.
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     The Exchange would process all clearly erroneous trade 
breaks during holiday trading hours in the same manner it does during 
RTH and GTH today and would have Exchange officials available to do so.
     The Exchange would 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.\41\
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    \41\ See CBOE 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. 
See Notice, supra note 3, 86 FR at 68707, n.38.
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     CBOE Rule 5.22 (Market-wide Trading Halts due to 
Extraordinary Market Volatility) would continue to not apply during 
GTH, including the proposed GTH holiday sessions.
    The Exchange has further represented that it would 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.\42\ Additionally, the Exchange would have 
personnel available to address any trading issues that may arise during 
the additional GTH trading hours.\43\ According to the Exchange, it is 
also committed to fulfilling its obligations as a self-regulatory 
organization at all times, including during GTH, and would have 
appropriately trained, qualified regulatory staff in place during GTH 
holiday sessions.\44\ Moreover, the Exchange has represented that while 
it believes its surveillance procedures are adequate to properly 
monitor trading during the proposed GTH holiday sessions, it will 
revise such procedures to the extent necessary if additional changes 
are needed in the future.\45\
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    \42\ Id. at 68708.
    \43\ Id.
    \44\ Id.
    \45\ Id.
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Implementation Date

    The Exchange represents that it will announce the implementation 
date of the proposed rule change in accordance with Rule 1.5.\46\
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    \46\ See id. at 68708.
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act,\47\ and the 
rules and regulations thereunder applicable to a national securities 
exchange.\48\ In particular, the Commission finds that the proposed 
rule change is consistent with Section 6(b)(5) of the Act,\49\ 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.
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    \47\ 15 U.S.C. 78f.
    \48\ 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).
    \49\ 15 U.S.C. 78f(b)(5).
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    As described above, CBOE proposes to adopt a modified trading 
schedule for GTH during holidays.\50\ The proposed modified trading 
schedule for holidays is designed to more closely align the Exchange's 
trading hours with extended trading hours of futures exchanges and 
market hours of other geographic regions. Specifically, the Exchange 
states that the modified trading schedule on holidays will increase the 
overlap in time that SPX and VIX options are open alongside the related 
futures contracts and provide global market participants with expanded 
access to trade the products offered during GTH.\51\ Among other 
things, the Exchange believes that the proposed modified holiday 
trading schedule is designed to respond to investor demand to hedge 
risk, react to global macroeconomic events contemporaneously, and 
adjust SPX and VIX options positions outside of RTH.\52\ The Exchange 
believes that the proposed rule change will allow 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.\53\ As a result, the Exchange believes that the 
proposal will allow a new segment of global market participants the 
ability to trade GTH products in their local time, particularly those 
trading SPX and VIX options.\54\
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    \50\ In connection with the modified trading schedule for GTH 
during domestic and international holidays, the Exchange is also 
amending Cboe Rule 5.7(e) to allow all GTC or GTD orders to be 
cancelled until 11:45 a.m. on the day a domestic holiday is 
observed.
    \51\ See Notice, supra note 3, 86 FR at 68708.
    \52\ See id.
    \53\ See id.
    \54\ See id. at 68704.
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    The Commission finds that the proposed modifications to the GTH 
trading schedule for domestic and international holidays are consistent 
with the Act.\55\ The Commission notes that the Exchange has 
represented that the modified holiday trading schedule makes no changes 
to the trading rules applicable to GTH.\56\ Specifically, the Exchange 
represents, among other things, that the business conduct rules in 
Chapter 8 of the Rules and rules related to doing business with the 
public in Chapter 9 of the Rules will continue to apply during the 
modified GTH holiday schedule.\57\ The processes for options clearing, 
settlement, exercise, and expiration, as well as clearly erroneous 
trades, will remain the same during the modified GTH holiday trading 
schedule.\58\ Moreover, the Exchange has represented that it will 
perform all necessary surveillance and have qualified regulatory staff 
available during the modified GTH holiday sessions in keeping with its 
obligations as an self-regulatory organization.\59\ 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 during the proposed holiday trading hours 
subject to its existing requirements for transactions executed during 
extended and overnight trading sessions.\60\ 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 outside of the current RTH and 
GTH sessions with Exchange oversight and regulatory surveillance and 
reporting.
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    \55\ See id.
    \56\ See id.
    \57\ See id. at 68707, n.29.
    \58\ See id. at 68707.
    \59\ See id. at 68707-08.
    \60\ See id. at 68707, n.34.
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    The proposed rule change is also consistent with Section 
11A(a)(1)(C) of the Act.\61\ 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

[[Page 9733]]

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 modified GTH holiday sessions in the same manner that they are 
reported currently during RTH and GTH,\62\ thereby providing public 
transparency of activity during the modified GTH holiday session.
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    \61\ 15 U.S.C. 78k-1(a)(1)(C).
    \62\ See Notice, supra note 3, 86 FR at 68707, nn.35-36 and 
accompanying text.
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    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 11:45 a.m. on domestic holidays (observed) is also 
consistent with the Act. The Commission notes that Users are currently 
able to cancel orders and quotes prior to RTH starting at 7:30 a.m. for 
RTH Classes. The Commission believes that this proposed change should 
provide Users with additional flexibility to manage their GTC or GTD 
orders.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\63\ that the proposed rule change (SR-CBOE-2021-068) be, and 
hereby is, approved.
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    \63\ Id.
    \64\ 17 CFR 200.30-3(a)(57) and (58).
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    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\64\

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-03650 Filed 2-18-22; 8:45 am]
BILLING CODE 8011-01-P


