Cboe’s latest update on expanded options trading for selected single-stocks is a BIG signal of where derivatives infrastructure is heading.
The planned model adds a morning session before the U.S. cash open and a 15-minute post-close session. But again, the update also makes clear that this is not a universal shift: the scope is limited to designated, highly liquid names; market, stop and stop-limit orders will not be available in the new windows.
This leaves a lot of questions unanswered:
1. Access: Which products, users and order types are actually available in each session?
2. Liquidity: Can the option market open only when the underlying has a round-lot print and a two-sided market?
3. Counterparties: Who carries the quoting obligation across sessions?
4. Controls: Are risk rules, routing, market data, alerts and support operating coherently before the customer sees a tradable screen?
While a platform can announce extended access, liquidity is yet to be seen.
This is now the design challenge for traders, brokers, market makers and trading platforms to adapt to. We're excited to watch how the market adapts.
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