Effective August 23, 2021, Cboe Options Exchange (C1) will replace the current manual halt and reopening process with an automated system halt and reopening process for SPX and VIX options during Global Trading Hours (GTH) when any of the following events occur, subject to regulatory review:
- C1 detects a halt message from CME indicating the Dynamic Circuit Breaker has been triggered for any SPX or VIX related futures on CME during CME Overnight Trading Hours (OTH).
- C1 receives a top of book update from CME indicating SPX or VIX related futures have reached a limit state during CME OTH.
Upon the effective date C1 will implement the trading halt and reopening processes. When C1 detects a halt message from CME indicating the Dynamic Circuit Breaker has been triggered for any SPX or VIX related futures on CME during the CME OTH, trading will halt for related index options for two minutes.
Dynamic Circuit Breakers are currently in effect with a width of 3.5%. If a contract market moves beyond +/- 3.5% within an hour during the CME OTH, a Dynamic Circuit Breaker is triggered.
C1 will queue any orders or quotes resting on the Book at the time of a trading halt in the Queuing Book for participation in the opening rotation following the trading halt, unless the user entered instructions to cancel resting orders and quotes.
New orders/quotes, modifications to orders/quotes and cancellations for orders/quotes, will be accepted during the halt period.
After a period of two minutes, Cboe will reopen SPX and VIX options for trading as described in Cboe Options Rule 5.31(g). Cboe will send an automated email notification to indicate that GTH Trading is halted for SPX and/or VIX options as well as the steps required for reopening these products.
When C1 receives a top of book update from CME indicating SPX or VIX related futures have reached a limit state on CME during CME OTH, trading will halt for related index options for ten minutes.
All current orders/quotes will be automatically cancelled or retained as determined by the “Cancel On Regulatory Halt” port setting submitted with the order.
New orders/quotes, modifications to orders/quotes and cancellations for orders/quotes, will be accepted during the halt period.
Trading will resume as described in Cboe Options Rule 5.31(g) once the ten-minute halt period has passed AND the related CME futures have not been in a limit state for a rolling period of thirty consecutive seconds (beginning prior to the conclusion of the halt period).
Cboe will send an automated email notification to indicate that GTH Trading is halted for SPX and/or VIX options as well as the steps required for reopening these products.
Implementation of this automated halt and reopening process will not preclude C1 from retaining the ability to manually monitor and initiate a trading halt or resume trading during GTH, pursuant to current C1 Rule 5.20(a) and (b) if it is determined to be in the interests of maintaining a fair and orderly market and to protect investors.
Thank you so much for this! I havent been this moved by a blog for a long time! Youve got it, whatever that means in blogging. Anyway, You are definitely somebody that has something to say that people should hear. Keep up the good work. Keep on inspiring the people!