Cboe Seeks 24/5 Extended Hours for Select Equity Options, Pending SEC Approval

Cboe extends options trading hours to capture global activity and boost liquidity, expanding risk management options—latest market shift updates from COINOTAG.

Publication date: 2025-10-20 • Updated: 2025-10-20

What is Cboe proposing for extended hours in options trading?

Cboe extended hours for options trading would add a morning window from 7:30–9:25 a.m. and an afternoon window from 4:00–4:15 p.m., in addition to the standard session. The proposal, filed with the SEC, aims to align with global activity and improve liquidity outside regular hours, providing traders with more flexibility to react to international events.

How do extended hours affect US market liquidity for options?

Extended hours are designed to attract more liquidity by connecting global participants to the underlying equity options. Data from the Options Clearing Corp. shows volume surged 68% to 1.29 billion contracts in September from 763 million two years earlier, underscoring growing demand for extended access. The SEC filing describes a selective rollout to prioritize active products, preserving liquidity where it matters most.

Frequently Asked Questions

What is the impact of extended hours on options risk management?

Extended trading hours give investors more time to respond to market moves, reducing overnight risk and enabling position adjustments outside standard sessions. Liquidity may vary by product, so monitoring volume and spreads during the added windows is essential.

Can investors trade options during extended hours on US exchanges?

Yes. The proposal envisions selective access during the additional morning and late-afternoon sessions, with liquidity prioritized for the most active contracts. Investors would need a broker that supports extended-hours trading and to be aware of wider spreads that can occur outside regular hours.

Key Takeaways

  • Selective rollout targets high-volume options: Focus on products with the strongest liquidity to minimize disruption.
  • Global activity alignment: Extending hours aims to mirror activity in Europe and Asia for better reaction time to events.
  • Infrastructure readiness: DTCC and SIPs are advancing toward near-24-hour clearing and data processing to support broader access.

Conclusion

COINOTAG presents a balanced view of Cboe’s extended hours for options trading, highlighting potential improvements in global liquidity and risk management while noting the need for regulatory clearance and infrastructure readiness. If approved, the selective rollout could set a precedent for broader 24×5 trading across US derivatives markets.

Sources (plain text): Options Clearing Corp. data; SEC filing; Depository Trust & Clearing Corp. (DTCC); Securities Information Processors (SIPs); NYSE statements; market indices data. All data cited without external links.

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