Search Results for keywords:"index options"

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Search Results: keywords:"index options"

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  • 2024-29335 — Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend Rule 5.1
    Type:Notice
    Citation:89 FR 101083
    Reading Time:about 10 minutes

    Cboe Exchange, Inc. proposed a rule change to alter the trading hours for certain types of index options. Specifically, on the last trading day, the Regular Trading Hours for index Monthly Options Series and Quarterly Options Series will end at 4:00 p.m. (Eastern time), instead of 4:15 p.m. This adjustment aims to address potential pricing issues by ensuring that trading does not continue after the options' exercise settlement values have been fixed. The Securities and Exchange Commission (SEC) is seeking comments from the public on this proposed change.

    Simple Explanation

    Cboe wants to change their rules so that certain market activities end a bit earlier, like finishing a game before bedtime. They're doing this to help make sure the prices are fair and accurate. The people who run the rules for these games are checking to see if it's a good idea and want to hear what other people think.

  • 2021-00199 — Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend Certain Rules To Accommodate the Listing and Trading of Index Options With an Index Multiplier of One
    đź’°
    Type:Notice
    Citation:86 FR 2006
    Reading Time:about 73 minutes

    The Cboe Exchange, Inc. has proposed a rule change to allow the listing and trading of index options with a smaller index multiplier of one, known as "micro-options." This change aims to make it easier for retail investors to access the market by providing lower-priced options, reflecting 1/100th of the value of current index options. The micro-options are designed to expand investor choices by allowing more precise hedging strategies, especially for smaller investments. The Securities and Exchange Commission (SEC) is inviting public comments on this proposal to evaluate its impact and ensure it aligns with the rules of the Securities Exchange Act of 1934.

    Simple Explanation

    The Cboe Exchange wants to make it easier and cheaper for people to buy smaller pieces of stock options called "micro-options," so even small investors can join in and protect their money better. The SEC is asking people what they think about this idea to make sure it's fair and good for everyone.

  • 2021-02005 — Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend the Definition of “Current Market Value” for Purposes of Calculating Margin Requirements for Certain Options
    Type:Notice
    Citation:86 FR 7760
    Reading Time:about 18 minutes

    Cboe Exchange, Inc. has proposed a rule change to amend how it calculates the "current market value" for certain options, specifically Exchange-Traded Fund (ETF) options, to determine the necessary margin requirements. Currently, the closing trade prices for these options are used at 4:15 p.m. Eastern time. The proposal suggests using quotes from 15 minutes before the close of trading, aligning the valuation time with related index options for better consistency in market evaluations. This change aims to reduce potential risks and price distortions for market participants involved in both ETF and related index options trading.

    Simple Explanation

    Cboe Exchange wants to change how they figure out how much money must be set aside, called "margin," for trading certain options. Instead of using the final price when the market closes, they want to use a price from a little earlier to make things fairer and safer.