Regulatory Questions

Executions on Cboe Options occurring during the GTH session after 8:15 p.m. ET but before midnight are reported for clearing the next business day. Trades occurring after midnight during the GTH session, during the RTH session, and during the Curb session are reported to clearing with a trade date equal to the current business day. What date should be reported in the TRADE DATE field (Field Position 35) for trades executed after 8:15 p.m. ET but before midnight for Electronic Blue Sheet (EBS) data files since these executions will clear with a trade date equal to the next business day?

The TRADE DATE field in EBS submissions needs to be dated with the actual calendar date of the transaction, which for executions occurring after 8:15 p.m. ET but before midnight is not the same as the trade date or business date corresponding to the GTH session.

For example, a trade occurring during the GTH session at 8:30 p.m. on Thursday, May 5, 2022, must be submitted for EBS reporting purposes with a TRADE DATE of 220505, despite the GTH session having a trade date and business date of Friday, May 6, 2022. Similarly, a trade occurring during the GTH session at 8:30 p.m. on Sunday, May 8, 2022, should be submitted for EBS reporting purposes with a TRADE DATE of 220508, despite that GTH session having a trade date and business date of Monday, May 9, 2022.

Are the Cboe Options registration requirements (e.g., General Securities Representative (GS), Securities Trader (TD), Securities Trader Principal (TP), etc.) for TPH associated persons engaged in the securities business of the TPH related to the Curb session and/or GTH session the same as those for TPH associated persons related to the RTH session?

Yes, registration requirements for the Curb and GTH sessions match those for the RTH session.

Do Cboe Options Rules require a registered principal to supervise a TPH's Curb and GTH activity in real-time during the Curb and GTH sessions?

Cboe Options Rules do not specifically require real-time supervision by a registered principal. Under Cboe Options Rule 8.16, Supervision, each TPH and associated person of a TPH shall be under supervision and control of an appropriately qualified supervisor, which does not necessarily require physical supervision. Rule 8.16 also requires each TPH to establish, maintain, and enforce written supervisory procedures (WSPs), and a system for applying such procedures, to supervise the types of business in which the TPH engages and supervise the activities of all associated persons. The WSPs and the system for applying such procedures must be reasonably designed to prevent and detect violations of applicable securities laws and regulations, and applicable Cboe Options Rules.

What constitutes reasonable supervisory controls for participation in the Curb and/or GTH sessions pursuant to Cboe Options Rule 8.16, Supervision?

Cboe Options Rule 8.16 requires TPHs to have written supervisory procedures and a system for applying such procedures tailored to the types of business in which the TPH engages and reasonably designed to prevent and detect violations of applicable securities laws and regulations, and applicable Cboe Options Rules. The Cboe Options Rules are not prescriptive in defining appropriate or reasonable procedures and controls for the purposes of satisfying a TPH requirements under Rule 8.16. However, reasonable controls or supervisory parameters may include, but not be limited to, hard limits or blocks on individual orders and aggregate activity, as well as soft blocks with reasonable procedures for human intervention. Further, reasonable written supervisory procedures generally must include, among other things, steps the TPH may take to develop parameters and controls, including a process for documenting how a TPH documents the rational for such parameters and controls, as well as a process for monitoring of the performance and reasonability of such controls.

Is the Regulatory Interpretations email/telephone line staffed during GTH?

Regulatory Interpretations email and telephone lines are generally staffed between 9:30 a.m. and 5:30 p.m. ET each business day. Calls received outside those hours will go to voicemail and will be acknowledged the following business day. As such, TPHs should not use Regulatory Interpretations for GTH matters requiring immediate response or action. All time sensitive GTH matters should to be directed to the Cboe Trade Desk.