[Federal Register Volume 86, Number 206 (Thursday, October 28, 2021)]
[Notices]
[Pages 59824-59833]
[FR Doc No: 2021-23436]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93403; File No. SR-CBOE-2021-061]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Extend
the Length of Its Current Global Trading Hours Session

October 22, 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 October 21, 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
Exchange filed the proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule
19b-4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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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 extend the length of its current global trading hours session
(``Global Trading Hours'' or ``GTH''). 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 extend the hours of its GTH session. The
proposed rule change to extend the current GTH session aims to meet
growing customer demand globally for 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.
    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. 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\ The GTH
session currently begins at 3:00 a.m. and goes until 9:15 a.m. on
Monday through Friday.\9\ 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.\10\ Currently, SPX, VIX and XSP are approved for trading
during GTH.\11\
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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).
    \9\ See Rule 5.1(c).
    \10\ The Exchange notes that Rule 5.1(c)(1) inadvertently refers
to the wrong section of Chapter 4. Particularly, Rule 5.1(c)(1)
references Chapter 4, Section D, which section governs Corporate
Debt Security Options, instead of the intended reference of Chapter
4, Section B, which section governs Index Options. The Exchange
proposes to correct that inadvertent cross-reference error now.
    \11\ 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.
The Exchange also notes that although eligible, XSP is not currently
listed for trading during GTH.
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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.\12\
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.\13\ Currently, VIX futures are open
for trading on CFE nearly 23 hours a day, 5 days a week.\14\
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    \12\ See Securities Exchange Act Release No. 34-73017 (September
8, 2014), 79 FR 54758 (September 12, 2014) (SR-CBOE-2014-062).
    \13\ Id.
    \14\ See CFE Rule 1202(b).
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    The proposed rule change to extend the GTH trading session aims to
provide global market participants with expanded access to trade the
products offered during GTH. Indeed, the proposal to lengthen the
current GTH session is designed 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 Exchange
notes 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.
Specifically, the Exchange proposes to expand the session by starting
the GTH session at 8:15 p.m. on the immediately preceding calendar day,
rather than at the current start time of 3:00 a.m.\15\ The GTH session
would continue to end at 9:15 a.m. Transactions effected during the GTH
session will have the same trade date as the RTH session that
immediately follows it.\16\ The proposed rule change otherwise makes no
changes to the trading rules applicable to GTH. The GTH trading session
will continue to be a separate trading session 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 lengthened GTH session.\17\ The
Exchange will continue to use the same servers and hardware during the
lengthened GTH session as it uses for RTH and GTH today. Further,
Trading Permit Holders (``TPHs'') may continue to use the same ports
and connections to the Exchange for both trading sessions. The Book
used during the lengthened GTH session will also be the same Book used
currently during RTH and GTH. The Exchange proposes to amend and
conform various rules to relating to the proposed expanded GTH, as
described more fully below.
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    \15\ For example, the GTH trading session for Mondays currently
begins on Mondays at 3:00 a.m. Pursuant to the proposed rule change,
a Monday GTH trading session will commence on the immediately
preceding Sunday at 8:15 p.m.
    \16\ 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.
    \17\ 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 session. Additionally, a broker-dealer's due
diligence and best execution obligations apply during the GTH
trading session. As there will still be no open outcry trading on
the floor during the GTH trading, 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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Trading Days and Hours
    As noted above, Rule 5.1 (Trading Days and Hours) currently sets
forth the trading hours for RTH and GTH. The Exchange proposes to amend
Rule 5.1 in connection with its proposal to lengthen the GTH session.
Particularly, the Exchange proposes to amend Rule 5.1(c), which sets
forth the trading hours for the GTH session, to provide that except
under unusual conditions as may be determined by the Exchange, GTH
hours are from 8:15 p.m. (previous day) to 9:15 a.m. on Monday through
Friday (instead of 3:00 a.m. to 9:15 a.m. Monday through Friday). The
Exchange also proposes to add language providing that the hours for the
GTH session that

follows any holiday listed under Rule 5.1(d) \18\ will be from 12:00
a.m. (the calendar day immediately following the day the holiday is
observed) until 9:15 a.m., unless the holiday is observed on a Friday,
in which case, GTH hours for the subsequent GTH session will start at
8:15 p.m. on the Sunday following the holiday (observed) until 9:15
a.m.\19\ The Exchange proposes to start the GTH session that follows a
holiday (other than holidays observed on Fridays) at 12:00 a.m. on the
trading day immediately following the holiday (observed) because
current Rule 5.1(d) provides the Exchange is not open for business on
those holidays. The proposed rule change therefore ensures the proposed
extended GTH session remains consistent with the current language of
Rule 5.1(d) (i.e., the Exchange remains closed for business on
holidays).
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    \18\ Rule 5.1(d) provides that the Exchange is not open for
business on the following holidays: New Year's Day, Martin Luther
King, Jr. Day, Presidents' Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
    \19\ For example, the GTH session that follows Thanksgiving
(observed this year on November 25, 2021), will begin at 12:00 a.m.
on Friday, November 26, 2021 and end at 9:15 a.m. Because Christmas
in 2021 will be observed on a Friday, the GTH session that follows
the observed holiday on Friday, December 24, 2021, will start at
8:15 p.m. on Sunday, December 26, 2021 and end at 9:15 a.m.
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Index Values
    The Exchange next proposes to amend Rule 5.1(c)(3) which currently
provides that while it may not be calculated and disseminated at all
times during GTH, current values of the VIX Index (i.e., intraday/spot
values of the VIX Index) will be widely disseminated at least once
every 15 seconds by OPRA or one or more major market vendors during
that trading session. Rule 5.1(c)(3) also provides no current index
value underlying any other index option trading during GTH is
disseminated during or at the close of that trading session.
    Pursuant to Rules 4.10(f) and (g), to list options on a broad-based
index (currently, the only options that trade during GTH overlying
broad-based indexes), current indexes values must be widely
disseminated at least once every 15 seconds. The initial purpose of
having a rule provision regarding the potential lack of dissemination
of index values during GTH was to supersede those requirements with
respect to GTH, as index reporting authorities may not disseminate
updated values outside of regular trading hours. Moreover, the Exchange
notes authority to decide when and how frequently to calculate and
disseminate index values lies solely with a reporting authority.
Currently, S&P Dow Jones Indices LLC (``S&P'') does not disseminate
current values of the S&P 500 Index during GTH, whereas Cboe Global
Indices, LLC (``CGI'') \20\ currently does disseminate current values
of the VIX Index for most (but not all) \21\ of the GTH session. While
CGI plans to continue its current dissemination of VIX Index values
during the current GTH hours (i.e., between 3:00 a.m. to 9:15 a.m.), it
does not intend to calculate or disseminate current values of the VIX
Index during the proposed additional GTH hours (i.e., from 8:15 p.m. to
3:00 a.m.). The proposed rule change therefore amends Rule 5.1(c)(3) to
reflect this change and clarify that current values of VIX will be
widely disseminated at least once every fifteen (15) seconds by the
Options Price Reporting Authority or one or more major market vendors
during that trading session only between 3:00 a.m. to 9:15 a.m. and
further provide that between 8:15 p.m. to 3:00 a.m. the Exchange will
not report a value of an index underlying an index option trading
during GTH, because the value of the underlying indexes of index
options trading during GTH (i.e., SPX and VIX) will not be recalculated
during this time.
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    \20\ CGI is an affiliate of the Exchange and is the reporting
authority for the Cboe Volatility Index (the ``VIX Index'') (which
underlies VIX options the Exchange currently lists for trading) and
the Cboe Short-Term Volatility Index (``VIX9D) (which underlies VXST
options the Exchange is authorized to, but does not, list for
trading).
    \21\ There may be times when a current value is not available,
such as if CGI (as reporting authority) does not begin making
current index values available until after a certain amount of time
(approximately 15 minutes) has passed following the open of the
current GTH session (for example, to ensure sufficient quotes in
series used to calculate the index values) or if there are technical
issues preventing CGI (as reporting authority) from calculating
index values. During the times the current value of VIX is not
available (and thus not disseminated) during current GTH, VIX
options will continue to be listed for trading during that trading
session.
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    The Exchange notes that since the inception of the Exchange's GTH
trading session in 2014, the Exchange has disclosed the possibility
that index values on options listed for trading during that session may
not be disseminated. Particularly, VIX is intended to represent the
market's expectation of S&P 500 volatility over the next 30 days. The
accuracy of the calculation for VIX indicative (or spot) values depends
on the quality of bid and offer quotes for constituent SPX options
series. As the proposed additional GTH hours has yet to be implemented,
CGI cannot currently know that the SPX option quotes displayed during
those hours will be sufficient to calculate accurate and meaningful VIX
indicative values in the same manner it does during RTH or the current
GTH session. Indeed, the Exchange expects that initially there will be
overall lower levels of trading during the proposed additional GTH
hours (8:15 p.m. to 3:00 a.m.) as compared to both RTH and the current
GTH session. Therefore, CGI has determined to not calculate VIX spot
values during the proposed additional GTH hours. After the launch of
extended GTH, to the extent CGI as index calculator determines that SPX
quotes during such additional hours will support accurate VIX
indicative values, CGI will reconsider whether to calculate and
disseminate these values during the entirety of GTH (and the Exchange
would submit rule filings to amend the rules, as necessary). The
Exchange notes that it similarly did not report a value of an index
underlying an index option trading during GTH when the GTH session was
first adopted.\22\ Additionally, pursuant to Rule 9.20, any TPH that
accepts orders for customers for execution during GTH must disclose to
those customers various risks related to trading during that trading
session, including the risk that an updated underlying index or
portfolio value or intraday indicative value will not be calculated or
publicly disseminated during GTH. Further, the closing value of the
index from the previous trading day will still be available for TPHs
that trade during GTH. The proposed change to Rule 5.1(c)(3) also has
no impact on trading during GTH. The Exchange lastly notes that the
proposed change is also consistent with the rules of its affiliated
exchanges that have a GTH session.\23\
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    \22\ See Securities Exchange Act Release No. 34-73704 (November
28, 2014), 79 FR 72044 (December 4, 2014) (SR-CBOE-2014-062) (order
granting accelerated approval of proposed rule change, as modified
by Amendments Nos 1 and 2, to adopt Extended Trading Hours for SPX
and VIX). Particularly, the Exchange proposed to adopt Rule 6.1A(k),
which provided ``[t]he Exchange will not report a value of an index
underlying an index option trading during Extended Trading Hours,
because the value of the underlying index will not be recalculated
during or at the close of Extended Trading Hours.''
    \23\ See Cboe C2 Exchange, Inc. (``C2'') Rule 5.1(c)(3) and Cboe
EDGX Exchange, Inc. (``Cboe EDGX'') Rule 21.2(c)(3).
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Definitions
    The Exchange proposes to amend the definition of ``Business Day''
and ``Trading Day'' under Rule 1.1 (Definitions) in connection with the
proposed expansion of the GTH trading session. The terms ``business
day'' and ``trading day'' currently mean a day on

which the Exchange is open for trading during RTH. The definition
currently provides that a business day or trading day includes both
trading sessions on that day. As the expanded GTH session will now
begin on a calendar day different than the business day (or trading
day), the Exchange proposes to eliminate this language and adopt
clarifying language that instead provides that a business day or
trading day includes the RTH session and the GTH session that
immediately precedes it. Also, because the expanded GTH session will
begin on the same calendar day as an RTH session, the Exchange proposes
to eliminate the following language from this definition to avoid
potential confusion: ``[I]if the Exchange is not open for Regular
Trading Hours on a day, then it will not be open for Global Trading
Hours on that day.'' In its place, the Exchange proposes to clarify
that if the Exchange is not open for Regular Trading Hours on a day,
then it will not be open for a Global Trading Hours session immediately
preceding what would have otherwise been the Regular Trading Hours
session on that day. The Exchange believes the proposed amendments to
the definition to add clarity and alleviate potential confusion.
Entry of Orders, Quotes and Cancellations
    The Exchange proposes to amend Rule 5.7 (Entry of Orders and
Quotes), which currently provides that Users can enter orders and
quotes into the System, or cancel previously entered orders and quotes,
from 2:00 a.m. until RTH market close, subject to certain requirements
and conditions. The Exchange first notes that Rule 5.7 inadvertently
omits to differentiate the start time for the entry of orders, quotes
and cancellations for All Sessions \24\ classes and RTH classes.\25\
The start time for RTH Classes is currently 7:30 a.m., which is
reflected accurately in Rule 5.31(b). The Exchange therefore proposes
to update Rule 5.7 to make clear that Users can enter orders and
quotes, or cancel previously entered orders and quotes, from 7:30 a.m.
until RTH market close for RTH Classes. In light of the proposal to
start the GTH session at 8:15 p.m. (instead of 3:00 a.m.), the Exchange
proposes to update the time that Users can begin entering orders and
quotes into the System (or canceling previously entered orders and
quotes) for All Sessions Classes from its current start time of 2:00
a.m. to 8:00 p.m. on the previous day. While Users will have less time
to submit orders quotes and cancellations prior to the GTH opening, the
Exchange believes having 15 minutes, as proposed, to submit orders,
quotes and cancellations in All Sessions Classes prior to the GTH
opening will to be an adequate and sufficient amount of time,
especially given that the Exchange lists only two classes for trading
during GTH.
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    \24\ The term ``All Sessions class'' means an options class the
Exchange lists for trading during both GTH and RTH, which currently
is only SPX and VIX. As noted above, although eligible, XSP is not
currently listed for trading during GTH.
    \25\ The term ``RTH class'' means an options class the Exchange
lists for trading during RTH only (currently all classes other than
SPX and VIX).
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Opening Auction Process
    The Exchange proposes to amend Rule 5.31 (Opening Auction Process),
which rule governs opening auctions during RTH and GTH. First, the
Exchange proposes to update Rule 5.31(b) which sets forth the time the
Queuing Period begins. The Queuing Period refers to the time period
prior to the initiation of an opening rotation during which the System
accepts orders and quotes in the Queuing Book \26\ for participation in
the open rotation for the applicable session. Rule 5.31(b) currently
provides that the Queuing Period begins at 2:00 a.m. for All Sessions
Classes and at 7:30 a.m. for RTH Only Classes. The Exchange proposes to
update the Rule 5.31(b) to provide that the Queuing Period for All
Sessions Classes will begin at 8:00 p.m. (the previous day). The
Exchange believes the proposed Queuing Period still provides a
sufficient amount of time for TPHs to enter quotes and orders into the
Queuing Book for participation in the GTH opening rotation, especially
given that the Exchange lists only two classes for trading during GTH.
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    \26\ The term ``Queuing Book'' means the book into which Users
may submit orders and quotes (and onto which GTC and GTD orders
remaining on the Book from the previous trading session or trading
day, as applicable, are entered) during the Queuing Period for
participation in the applicable opening rotation. Orders and quotes
on the Queuing Book may not execute until the opening rotation. The
Queuing Book for the GTH opening auction process may be referred to
as the ``GTH Queuing Book,'' and the Queuing Book for the RTH
opening auction process may be referred to as the ``RTH Queuing
Book.'' See Rule 5.31(a).
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    Next, the Exchange proposes to amend Rule 5.31(c), which currently
states that beginning at 2:00 a.m. for the GTH trading session and at
8:30 a.m. for the RTH trading session, and until the conclusion of the
opening rotation for a series, the Exchange disseminates opening
auction updates for the series.\27\ The Exchange proposes to update
Rule 5.31(c) to provide that opening auction updates will be
disseminated beginning at 8:00 p.m. (the previous day) for GTH.
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    \27\ The Exchange disseminates updates every five seconds,
unless there are no updates to the opening information since the
previously disseminated update, in which case the Exchange
disseminates updates every minute, to all subscribers to the
Exchange's data feeds that deliver these messages until a series
opens. See Rule 5.31(c).
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    The Exchange also proposes to amend Rule 5.31(d), which describes
the events that will trigger the opening rotation for a class during
RTH and GTH. Currently Rule 5.31(d) (2) provides that for the Global
Trading Hours session, the System initiates the opening rotation at
3:00 a.m. The Exchange proposes to update Rule 5.31(d)(2), to reflect
the new opening rotation time of 8:15 p.m. (the previous day).
    The Exchange finally proposes to amend Rule 5.33 (Complex Orders).
Particularly, the Exchange proposes to amend Rule 5.33(c), which
describes the COB Opening Process, which occurs at the beginning of
each trading session and after a trading halt. The System accepts
complex orders for inclusion in the COB Opening Process at the times
and in the manner set forth in Rules 5.7 and 5.31(b), except the
Queuing Period for complex orders ends when the complex strategy opens.
Complex orders entered during the Queuing Period are not eligible for
execution until the initiation of the COB Opening Process. Rule
5.33(c)(1) currently states that the Exchange will disseminate
indicative prices and order imbalance information based on complex
orders queued in the System for the COB Opening Process beginning at
(A) 2:00 a.m. for All Sessions classes for the GTH trading session and
(B) 8:30 a.m. for RTH Only classes and 9:15 a.m. for All Sessions
classes for the RTH trading session, and updated every five seconds
thereafter until the initiation of the COB Opening Process. This
functionality provides users with information regarding the expected
COB opening, which the Exchange believes may contribute additional
transparency and price discovery to the COB Opening Process. The
Exchange proposes to amend Rule 5.33(c)(1) to reflect that in light of
the proposed extended GTH session, indicative prices and order
imbalance information will be disseminated beginning at 8:00 p.m. the
previous day (instead of 2:00 a.m.) for All Sessions classes for the
GTH trading session.
Market-Maker Rules
    Current Rule 5.50(b) (Market-Maker Appointments) provides that a
Market-Maker may enter an appointment request via an Exchange-approved
electronic interface with the Exchange's systems by 2:30 a.m. for All
Sessions, which appointment becomes effective

on the open of the GTH trading session, or by 9:00 a.m. for RTH Only
classes, which appointment becomes effective on the open of the RTH
session. In light of the proposed change to the start time of the GTH
session, the Exchange proposes to update the time by which Market-
Makers may enter an appointment request for All Sessions classes that
would become effective at the open of the subsequent GTH trading
session. Particularly, the Exchange proposes to update the cutoff time
to submit a request for an All Sessions class appointment for the GTH
session (currently only SPX and VIX) from 2:30 a.m. to 5:30 p.m. the
previous day, which is the earliest time the Exchange may ``restart''
the System to prepare for GTH, and clarify that such appointment would
be effective upon the open of the GTH session (i.e., starting at 8:15
p.m.). The Exchange notes that it intends to additionally continue to
maintain an additional cutoff time of 1:30 a.m. for All Sessions
appointment classes. Particularly, any appointment request submitted
after 5:30 p.m. and at or prior to 1:30 a.m. would be effective
starting at 2:30 a.m. Providing for an additional appointment request
cutoff time would provide Market-Makers, including Market-Makers who
may only trade during the current GTH hours between 3:00 a.m. and 9:15
a.m., an additional opportunity to submit a request for a VIX or SPX
appointment and be able to quote the remainder of the GTH session. The
Exchange also notes that Market-Makers do not often update appointment
selections with respect to SPX and VIX and therefore believes any
changes to the appointment cutoff time(s) will have a de minimis
impact. Lastly, the Exchange proposes to clarify that the current 9:00
a.m. cutoff for class appointments to be effective on the open of RTH
currently applies, and will continue to apply, to all classes, not just
RTH Only classes (i.e., if a Market-Maker submits an SPX or VIX
appointment after 1:30 a.m., while the Market-Maker will not be
eligible to start quoting during that current GTH session, that
appointment will be effective starting on the open of RTH so long as it
was submitted prior to 9:00 a.m.).
    The Exchange also notes that 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 hours (8:15 p.m. to 3:00 a.m.) but does quote the
current GTH hours (3:00 a.m. to 9:15 a.m.), then so long as the Market-
Maker doesn't log in and quote before 3:00 a.m., the time between 8:15
p.m. and 3:00 a.m. won't be considered when determining a Market-
Maker's compliance with the quoting obligations. Similarly, for
example, if a Market-Maker quotes only from 8:15 p.m. to 3:00 a.m. and
then logs out, the time between 3:00 a.m. and 9:15 a.m. will not be
considered when determining compliance. Accordingly, the extension of
GTH 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 GTH (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 trading session, 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 GTH 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 extension of the trading session 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.
---------------------------------------------------------------------------

    \28\ See Rule 5.52(d)(2).
---------------------------------------------------------------------------

    With respect to Lead-Market-Makers (``LMMs''), the Exchange plans
to utilize the same LMM structure it uses 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
session 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). The Exchange instead will adopt via a separate
rule filing an incentive program that provides appointed LMMs a rebate
if they meet certain heightened continuous quoting standards during the
proposed additional hours, which the Exchange believes will encourage
LMMs to provide significant liquidity during this time.
FLEX
    Subparagraph (b) of Rule 5.71 (Opening of FLEX Trading) currently
sets forth the times that FLEX traders may begin submitting FLEX Orders
into an electronic FLEX Auction, a FLEX AIM, or a FLEX SAM or initiate
an open

outcry FLEX Auction on the trading floor for the RTH and GTH sessions.
The Exchange proposes to update the time FLEX traders may submit such
orders during GTH from after 3:00 a.m. (which is the current start time
of the GTH session) to after 8:15 p.m. the previous day (which is the
proposed start time of the GTH session).
Discussion
    As discussed above, rules that currently apply to the GTH trading
session will continue to apply in the same manner to the expanded GTH
session, albeit certain cutoff times and commencement times will be
updated to reflect the proposed new start time of the GTH session. The
Exchange also notes the following:
     All TPHs will continue to be allowed to, but will not be
required to, participate during GTH.\29\ 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 GTH, the
Exchange believes the proposed lengthening of the GTH session 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. Additionally,
even if a Market-Maker elects to not quote during part of GTH, 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.
---------------------------------------------------------------------------

    \29\ In order to participate in GTH, including the proposed
additional hours, a 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. A letter of guarantee from a Clearing TPH
authorized to operate during the GTH session will allow a TPH to
participate in the entire GTH session, (i.e., from 8:15 p.m. to 9:15
a.m.).
---------------------------------------------------------------------------

     The Exchange will continue to use the same connection
lines, message formats, and feeds during RTH and GTH.\30\ TPHs may use
the same ports and EFIDs \31\ for each trading session.\32\
Accordingly, the Exchange expects TPHs that want to trade during the
lengthened GTH session to have minimal preparation.
---------------------------------------------------------------------------

    \30\ 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.
    \31\ 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.
    \32\ A TPH may elect to have separate ports or EFIDs for each
trading session, but the Exchange will not require that.
---------------------------------------------------------------------------

     The same opening process will continue to be used to open
GTH, albeit at an earlier start time.
     Order processing will operate in the same manner during
GTH 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.\33\
---------------------------------------------------------------------------

    \33\ 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 extended GTH trading session 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 GTH hours in the same manner it currently reports
this information to OPRA during RTH and GTH today.\34\ The Exchange
will also continue to disseminate an opening quote and trade price
through OPRA during the proposed additional GTH hours (as it does for
RTH and GTH today). Therefore, all TPHs that elect to trade during the
proposed extended GTH session will have access to quote and last sale
information during that trading session. Exchange proprietary data
feeds will also continue to be disseminated during GTH 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 GTH will be optional (as they are today during RTH and GTH).\35\
---------------------------------------------------------------------------

    \34\ 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 GTH hours in the same manner that they are reported
during RTH and GTH today. The operator of OPRA has also informed the
Exchange that it will continue to include a modifier to the
disseminated information during GTH.
    \35\ 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 extended GTH session.\36\ Because the same
connections and servers will be used for both trading sessions, 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 GTH.
---------------------------------------------------------------------------

    \36\ See Rule 5.24.
---------------------------------------------------------------------------

     The Exchange will process all clearly erroneous trade
breaks during GTH 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 GTH.
     The Exchange may halt trading during GTH 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.
    Under Rule 5.22 (Market-wide Trading Halts due to Extraordinary
Market Volatility), 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 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 extended GTH session, just as it does not apply during GTH today,
as the beginning of GTH, even as amended, will still occur past the 15-
minute halt window for a Level 1 or Level 2 Market Decline. Rule
5.22(b)(2) will also continue not to apply to the GTH session, as the
GTH session is still considered a different (i.e., the next) trading
day than the preceding RTH session (even though the GTH session would
begin on the same calendar day as such a halt). As such, if a Level 3

Market Decline occurs at any time during RTH, the Exchange will halt
trading in SPX and VIX only until the start of GTH. 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 session starts given the length of time
between the close of the previous trading day and the proposed start
time of GTH (approximately 4 hours). Moreover, current Rule 5.20(a)(6)
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 in determining whether
to halt trading during GTH. Because the stock markets would not begin
trading until after GTH opens, the Exchange believes it should be able
to open GTH rather than waiting several hours 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 trading hours. Thus, the Exchange will
have appropriate staff on-site and otherwise available as necessary
during GTH 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 to the extent it deems
necessary to satisfy those obligations. The Exchange believes its
surveillance procedures are adequate to properly monitor trading during
the lengthened GTH session, 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 lengthen the current GTH session to
market-participants via a Trade Desk notice back in January 2021.\37\
Since then, the Exchange has issued numerous updated notices, FAQs and
detailed technical specifications.
---------------------------------------------------------------------------

    \37\ See Exchange Notice C2021012501 ``Cboe Options Exchange to
Extended Global Trading Hours in Q4 2021''.
---------------------------------------------------------------------------

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.\38\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \39\ 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) \40\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \38\ 15 U.S.C. 78f(b).
    \39\ 15 U.S.C. 78f(b)(5).
    \40\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes the proposed rule change to
expand the hours of the Global Trading Hours session will remove
impediments to and perfect the mechanism of a free and open market and
a national market system. Particularly, the expansion of GTH 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 a longer period of time outside of RTH. Additionally, the
expansion of the GTH trading session is 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, lengthening the GTH session 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. 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, 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 have expressed their interest in having the
ability to participate in the GTH session during their market hours,
which coincide with the proposed additional GTH hours. 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).\41\ Furthermore,
the Commission has authorized U.S. stock exchanges to be open for
trading outside of regular trading hours.\42\ Thus, the proposed rule
change to expand the hours of the GTH session is not novel or unique.
Additionally, as noted above, futures exchanges also operate outside of
those hours and during the hours proposed to be added to the GTH
trading session, including the Exchange's affiliate, CFE, which
operates during the hours the

Exchange proposes to operate the expanded GTH trading session.\43\
---------------------------------------------------------------------------

    \41\ See Cboe Options Rule 5.1, C2 Rule 5.1 and Cboe EDGX Rule
21.2.
    \42\ 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).
    \43\ See, e.g., CFE Rule 1202, which outlines the trading
schedule for futures on the Cboe Volatility Index and includes an
Extended trading session that lasts from 5:30 p.m. (previous day to
8:30 a.m.) CT.
---------------------------------------------------------------------------

    As described in detail above, the Exchange's trading rules that
apply to GTH today will continue to apply during the lengthened GTH
session, 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 GTH 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 GTH 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 GTH, even as
expanded, 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 expanded GTH will be different from trading during
current GTH (such as the start time for queuing periods that will be
updated in connection with the new session start time and the proposed
absence of a disseminated updated index value during the new hours).
This ensures that investors are aware of any differences relating to
the proposed additional GTH trading hours. Additionally, the Exchange
notes that it will continue to require that disclosures be made to
customers describing these potential risks, which will continue to
further protect investors from any additional risks related to trading
during GTH.\44\ The Exchange believes that, with these disclosures, GTH
remains appropriate and beneficial. The All Sessions order \45\ and RTH
Only order \46\ 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
expanded GTH trading session. Consistent with the goal of investor
protection, the Exchange will not allow market orders during GTH 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.
---------------------------------------------------------------------------

    \44\ See Cboe Options Rule 9.20.
    \45\ 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).
    \46\ 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 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 GTH.
The Exchange believes its surveillance procedures are adequate to
properly monitor trading during GTH, including during the additional
proposed trading hours. Clearing and settlement processes will be the
same for transactions executed during the proposed expanded GTH trading
session 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
GTH 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 expanded GTH session. 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 additional GTH hours, then so long as such Market-
Maker does not log into the system and quote prior to 3:00 a.m. (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 be optional and within the discretion of a
Market-Maker. Additionally, Market-Makers continue to have the
opportunity to quote during GTH (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
expanded GTH session 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 (which may permit execution
of certain hedging strategies). The Exchange believes continuing to
extend a Market-Maker's appointment to the entirety of the GTH session
will enhance liquidity during that trading session, 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 to the GTH trading session in the eligible
classes would be 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 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
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.\47\ As discussed, the Exchange, as well as
other options exchanges, already offer trading sessions outside of
regular trading hours.\48\
---------------------------------------------------------------------------

    \47\ 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. 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.
    \48\ See, e.g., Cboe Options Rule 5.1, C2 Rule 5.1 and Cboe
EDGX. Rule 21.2.
---------------------------------------------------------------------------

    Lastly, the Exchange believes the proposed rule change to provide
the Exchange will not report a value of VIX during the proposed
additional GTH hours will remove impediments to and perfect the
mechanism of a free and open market and a national market system as it
will reflect the fact that the relevant index reporting authority
(i.e., CGI) will not disseminate updated values during the proposed
additional GTH hours. As discussed above, the authority to decide when
and how frequently to calculate and disseminate index values lies
solely with a reporting authority (in this case S&P for SPX and CGI for
VIX). The proposed rule change therefore updates the Exchange's rule to
reflect the fact that CGI has determined not to calculate and
disseminate current values of VIX during GTH from 8:15 p.m. to 3:00
a.m.\49\ Particularly, because the proposed additional GTH hours have
not yet been implemented, CGI cannot currently know that the SPX option
quotes displayed during the proposed additional hours will be
sufficient to calculate accurate and meaningful VIX indicative values
in the same manner it does during RTH and current GTH. Indeed, the
Exchange expects that initially there will be overall lower levels of
trading during the proposed additional GTH hours (8:15 p.m. to 3:00
a.m.) as compared to both RTH and the current GTH session. Therefore,
CGI has determined to not calculate VIX spot values between 8:15 p.m.
and 3:00 a.m. Also as noted above, after the launch of the additional
GTH hours, to the extent CGI as index calculator determines that SPX
quotes during such trading session will support accurate VIX indicative
values, CGI will reconsider whether to calculate and disseminate these
values during the entirety of GTH (and the Exchange would submit rule
filings to amend the rules, as necessary).
---------------------------------------------------------------------------

    \49\ S&P will also continue to not calculate and disseminate
current values of the S&P 500 Index during GTH (during both the
proposed additional hours and the current GTH session).
---------------------------------------------------------------------------

    Further, as discussed above, since the inception of the Exchange's
GTH trading session in 2014, the Exchange has disclosed the possibility
that index values on options listed for trading during that session may
not be disseminated. In fact, when the Exchange first adopted the GTH
session, it adopted the same rule provision it is proposing today for
the expanded hours since neither reporting authorities for these
indexes calculated index values during GTH when it first launched,
which rule was approved by the Commission.\50\ Moreover, Rule 9.20,
provides that any TPH that accepts orders for customers for execution
during GTH must disclose to those customers various risks related to
trading during that trading session, including the risk that an updated
underlying index or portfolio value or intraday indicative value will
not be calculated or publicly disseminated during GTH. Additionally,
the closing value of the index from the previous trading day will still
be available for TPHs that trade during GTH. The Exchange notes the
proposed change to Rule 5.1(c)(3) also has no impact on trading during
GTH. The Exchange lastly notes that its affiliated exchanges' GTH rules
similarly provide that no current index value underlying an index
option trading during the respective exchange's GTH session is
disseminated during or at the close of that trading session.\51\
---------------------------------------------------------------------------

    \50\ See Securities Exchange Act Release No. 34-73704 (November
28, 2014), 79 FR 72044 (December 4, 2014) (SR-CBOE-2014-062) (order
granting accelerated approval of proposed rule change, as modified
by Amendments Nos 1 and 2, to adopt Extended Trading Hours for SPX
and VIX). Particularly, the Exchange proposed to adopt Rule 6.1A(k),
which provided ``[t]he Exchange will not report a value of an index
underlying an index option trading during Extended Trading Hours,
because the value of the underlying index will not be recalculated
during or at the close of Extended Trading Hours.'' It wasn't until
March 2016 that CGI determined to calculate and make available
current values of VIX every 15 seconds during GTH.
    \51\ See Cboe C2 Exchange, Inc. (``C2'') Rule 5.1(c)(3) and Cboe
EDGX Exchange, Inc. (``Cboe EDGX'') Rule 21.2(c)(3).
---------------------------------------------------------------------------

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 lengthen the current GTH
trading session 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 GTH, and will be able to do so using the same connectivity as
they use during RTH and GTH today. As discussed, participation in GTH
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 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 to the GTH trading session in two classes 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
lengthen the GTH trading session 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, 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

    Because the foregoing proposed rule change does not:
    A. Significantly affect the protection of investors or the public
interest;
    B. impose any significant burden on competition; and
    C. become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \52\ and
Rule 19b-4(f)(6) \53\ thereunder. At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission will institute proceedings to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \52\ 15 U.S.C. 78s(b)(3)(A).
    \53\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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-2021-061 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-2021-061. 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-2021-061 and should be submitted on
or before November 18, 2021.
---------------------------------------------------------------------------

    \54\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\54\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-23436 Filed 10-27-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 174 (Monday, September 13, 2021)]
[Notices]
[Pages 50883-50884]
[FR Doc No: 2021-19601]

-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[FRL 8767-01-R3]

Clean Water Act: No-Discharge Zones for Vessel Sewage in Maryland
and Virginia; Correction

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice--final determination; correction.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) is correcting a
notice of final determination published on May 11, 2021. EPA determined
that adequate facilities for the safe and sanitary removal and
treatment of sewage from all vessels were reasonably available to
support the State's prohibition of vessel sewage discharges in thirteen
waterbodies in Anne Arundel County, Maryland, but has since identified
errors in the geographic coordinates that correspond to the boundaries
of the no-discharge zones as described in the earlier notice. This
notice simply corrects those geographic coordinate errors; it does not
otherwise change EPA's May 11, 2021 final determination.

DATES: This correction is effective on September 13, 2021.

FOR FURTHER INFORMATION CONTACT: Ferry Akbar Buchanan, U.S.
Environmental Protection Agency--Region III. Telephone:<PHONE_NUMBER>;
email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: On May 11, 2021 (86 FR 25856), EPA published
a notice of final determination, ``Clean Water Act: No-Discharge Zones
for Vessel Sewage in Maryland and Virginia.'' The notice explained
EPA's determination that adequate facilities for the safe and sanitary
removal and treatment of sewage from all vessels are reasonably
available for the thirteen waterbodies located in Anne Arundel County
for which Maryland sought to establish a no-discharge zone for vessel
sewage under Clean Water Act section 312(f)(3). The document also
provided one of the geographic coordinates from an existing no-
discharge zone for Perrin River, Virginia, published at 85 FR 59796 on
September 23, 2020.

Need for Correction

    As published, the notice of the final determination misidentified
the geographic coordinates of the no-discharge zone boundaries for
Bodkin Creek, Magothy and Little Magothy Rivers, Podickory Creek, Sandy
Point/Mezick Pond, Severn River, Fishing Creek, and South River
waterbodies. The notice explained these boundaries in narrative terms;
the earlier-published geographic coordinates did not correspond to the
narrative descriptions of the boundaries for which EPA made the
determination. Upon identifying the errors, EPA confirmed the correct
geographic coordinates with Maryland. EPA finds that there is good
cause to make this correction without prior notice and opportunity to
comment on the basis that notice and comment is unnecessary and would
not be in the public interest. The change merely conforms numeric
geographic coordinates to the clear narrative descriptions and detailed
maps of the no-discharge zone boundaries that were included in
Maryland's application and upon which EPA's approval was based. As
such, this correction does not alter EPA's earlier determination. EPA
further determines that good cause exists to make the change effective
upon publication, rather than delay the effective date, because the
narrative boundary descriptions are clear, rendering a delayed
effective date unnecessary. In addition, public interest requires
prompt confirmation of the correct numeric geographic coordinates
further describing the no-discharge zone boundaries.

Correction to Previously Published Table

    In the Federal Register of May 11, 2021 (86 FR 25856), in FR Doc.
2021-09957, the information identifying the no discharge zone
waterbodies and

boundaries, in the first untitled table that begins with ``Waterbody
Limits'' column, which appears on pages 25856 through 25857, is
corrected to read as follows:

------------------------------------------------------------------------
           Waterbody                 Waterbody/Limits      Area (acres)
------------------------------------------------------------------------
Stony Creek....................  39.1723[deg] N,                     677
                                  76.5171[deg] W to
                                  39.1725[deg] N,
                                  76.5126[deg] W.
Rock Creek.....................  39.1614[deg] N,                     524
                                  76.5004[deg] W to
                                  39.1625[deg] N,
                                  76.4862[deg] W.
South Shore, Patapsco River....  39.1472[deg] N,                       2
                                  76.4589[deg] W to
                                  39.1471[deg] N,
                                  76.4588[deg] W.
Bodkin Creek...................  39.1346[deg] N,                     609
                                  76.4398[deg] W to
                                  39.1320[deg] N,
                                  76.4384[deg] W.
Magothy and Little Magothy       39.0592[deg] N,                   5,879
 Rivers.                          76.4332[deg] W to
                                  39.0462[deg] N,
                                  76.4295[deg] W.
Podickory Creek................  39.0328[deg] N,                       9
                                  76.4040[deg] W to
                                  39.0318[deg] N,
                                  76.4049[deg] W.
Sandy Point/Mezick Ponds.......  39.0087[deg] N,                      47
                                  76.4032[deg] W to
                                  39.0086[deg] N,
                                  76.4037[deg] W.
Whitehall Bay..................  38.9748[deg] N,                   1,599
                                  76.4547[deg] W to
                                  38.9871[deg] N,
                                  76.4268[deg] W.
Severn River...................  38.9747[deg] N,                   7,497
                                  76.4547[deg] W to
                                  38.9411[deg] N,
                                  76.4504[deg] W.
Oyster Creek...................  38.9274[deg] N,                      34
                                  76.4638[deg] W to
                                  38.9273[deg] N,
                                  76.4634[deg] W.
Fishing Creek..................  38.9148[deg] N,                     228
                                  76.4591[deg] W to
                                  38.9073[deg] N,
                                  76.4602[deg] W.
South River....................  38.9073[deg] N,                   5,904
                                  76.4602[deg] W to
                                  38.8850[deg] N,
                                  76.4910[deg] W.
West and Rhode Rivers..........  38.8850[deg] N,                   4,370
                                  76.4910[deg] W to
                                  38.8531[deg] N,
                                  76.4959[deg] W.
                                ----------------------------------------
    Total Area.................  .......................          27,379
------------------------------------------------------------------------

    Dated: September 2, 2021.
Diana Esher,
Acting Regional Administrator, EPA Region III.
[FR Doc. 2021-19601 Filed 9-10-21; 8:45 am]
BILLING CODE 6560-50-P