CBOE Exchange Rule Filings

Stop-Limit Complex Orders and SCOA Auction Mechanism

CBOE Exchange proposes to amend Rules 5.33, 5.21(b), 5.25(c), and 5.34(c) to establish stop-limit complex orders as a new order type and Stop Complex Order Auctions (SCOA) as a new auction mechanism for options trading. The proposal extends existing stop-limit functionality for simple orders to complex orders and introduces a dedicated auction process to facilitate simultaneous management of long and short legs. CBOE's President approved the filing on February 24, 2026, with implementation details to follow within 60 days.

Proposed Amendment to Binary Options Rules on All Indexes

Cboe Exchange proposes to amend its Rules related to binary options, including expanding the underlying indexes from broad-based indexes to all indexes. The amendment would permit listing binary options on all indexes under Rule 4.16. The Exchange separately intends to file a rule change to reduce the minimum exercise settlement value from $10 to $1.

Proposed Amendment to FLEX Options ETF Cash Settlement

Cboe Exchange filed a proposed rule change (SR-CBOE-2026-035) with the SEC to amend Rule 4.21 governing cash settlement for FLEX Equity Options on ETFs. The proposal would permit newly FLEX-eligible ETFs satisfying liquidity thresholds based on a one-month lookback period to elect cash settlement, establish tiered criteria for handling cash-settled FLEX ETF Options when the underlying ETF no longer meets eligibility requirements at bi-annual review, and eliminate the existing 50-ETF cap on cash settlement eligibility.

Amends Fee Schedule to Codify User Fee Exemption and Non-Display Usage Definition for Controlled Distributors

Cboe Exchange proposes amending its Fee Schedule to formally codify an existing User Fee exemption for Controlled Distributors and the amended definition of 'Non-Display Usage' under the Market Data section. The filing, originally submitted as SR-CBOE-2026-030 on April 1, 2026 and withdrawn April 13, 2026, was refiled as SR-CBOE-2026-036. Controlled Distributors receiving market data for Permitted Purposes (software development, quality assurance, testing, sales support for redistribution, or technical monitoring) would be exempt from Display Usage fees.

A.M.-Settled SPX Options, Any Weekday Expiration

Cboe Exchange proposes to amend its rules to permit listing of A.M.-settled SPX options expiring on any weekday (Monday-Friday, excluding third Friday-of-month and end-of-month coincidences) and on the last trading day of the month. The proposed rule change introduces A.M.-Settled Weekly Expirations and End-of-Month Expirations for S&P 500 Index options.