SEC Approves Cboe Rule Change to Reduce Minimum Trading Increments for MBTX Options
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The SEC has granted accelerated approval to Cboe Exchange's proposal to amend Rule 5.4. The change allows all series of options on the Cboe Mini Bitcoin ETF Index (MBTX) to trade in $0.01 increments for series below $3.00 and $0.05 increments for series at or above $3.00. This is permitted only as long as IBIT options continue to participate in the Penny Interval Program. The rule change aims to respond to retail investor demand, narrow bid-ask spreads, increase liquidity, enable more precise pricing, and allow MBTX options to better compete with actively traded single-name Bitcoin ETF options such as IBIT, BITO, and FBTC, as well as Bitcoin futures and spot Bitcoin trading.
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Key Changes
- Amend Cboe Rule 5.4(a) to set MBTX options minimum increment at $0.01 for series trading below $3.00
- Set MBTX options minimum increment at $0.05 for series trading at or above $3.00
- Condition approval on IBIT options continuing to participate in the Penny Interval Program
+ 3 more changes with Pro
Obligations
What this law requires
Cboe Exchange must amend Rule 5.4(a) to set minimum trading increments for MBTX options at $0.01 for series trading below $3.00 and $0.05 for series at or above $3.00
The reduced minimum trading increments for MBTX options are only permitted to remain in effect as long as iShares Bitcoin Trust ETF options (IBIT options) continue to participate in the Penny Interval Program
Cboe Exchange must maintain sufficient systems capacity to handle potential additional message traffic resulting from the reduced minimum trading increments for MBTX options
Options Price Reporting Authority (OPRA) must maintain necessary systems capacity to handle any additional traffic resulting from the rule change to MBTX options minimum trading increments
Cboe Exchange must implement the rule change only as specified in Amendment No. 1 filed on March 11, 2026, which supersedes and replaces the Initial Rule Filing entirely