Cboe Exchange Allows P.M.-Settled Options for Dow Jones Index
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The new rule allows the Cboe Exchange to offer P.M.-settled options on the Dow Jones Industrial Average Index. This change aims to provide investors with more flexibility in trading options, allowing them to better align their trades with their financial strategies and risk management. Key stakeholders affected include traders, investors, and financial institutions who deal with options on the Dow Jones Index.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Cboe can now list P.M.-settled options for the Dow Jones Index.
- Investors gain more trading flexibility with multiple expiration options.
- Reduces hedging costs through diversified settlement times.
Obligations
What this law requires
Cboe Exchange, Inc. must permit the listing of P.M.-settled options on the Dow Jones Industrial Average that expire on Expiration Fridays, including (1) amending Rule 4.13, Interpretation and Policy .13.
Cboe Exchange, Inc. must permit the listing of P.M.-settled DJX options that expire on the standard third Friday of the month.
Cboe Exchange, Inc. must amend Rule 4.13(c) to permit the listing of P.M.-settled Quarterly Index Expirations (QIXs) for DJX options.
Cboe Exchange, Inc. must list DJX options with Nonstandard Expirations that allow for expirations on any weekday, except Expiration Fridays and end-of-month expirations.
Cboe Exchange, Inc. must apply the Nonstandard Expirations Program to DJX options to allow P.M.-settled options that expire on any weekday and on the last business day of the month.