SEC Approves Cboe Extended Trading for Multi-Listed Equity Options

The Securities and Exchange Commission approved Cboe Exchange rule changes on 28 May that allow extended trading sessions for eligible multi-listed equity options. The approval lets Cboe designate certain equity option classes for trading before and after regular U.S. market hours.

Under the approved framework, Cboe may make up to 100 actively traded equity option classes available in a morning Global Trading Hours session from 7:30 a.m. to 9:25 a.m. Eastern time. The same eligible classes may also trade in a short afternoon Curb session from 4:00 p.m. to 4:15 p.m. Eastern time, except where the option already trades until 4:15 p.m. as part of regular trading hours.

Eligibility is limited to liquid names. The SEC order says an option class must meet minimum thresholds over the prior six months, including 150,000 contracts in average daily options volume, a $50 billion market capitalization for the underlying equity, and 10 million shares in average daily volume for the underlying security.

The approval also extends routing processes, opening auction mechanics, risk controls and related disclosure requirements to the new sessions. Cboe will review eligible classes semiannually and may remove classes that no longer meet the criteria.

Why it matters

Equities already trade outside regular hours, but single-stock options access has lagged. For active traders, the approval creates a path to hedge or adjust options exposure around premarket news and immediately after the close.

What to watch next

Watch Cboe’s initial list of eligible classes, launch timing, spreads in the morning session and whether other options exchanges accelerate similar extended-hours plans.