Complex Instrument Opening Process

Following the receipt of the opening trigger for opening Single Leg series of a class, the Exchange will wait for all component legs of the complex instrument to open before beginning the Opening Process. Additional details of the opening process for the individual component legs can be found in the Cboe Titanium U.S. Options Opening Process. If there are no complex orders that can cross, the Exchange will open the order book for the complex instrument immediately. However, if there are complex orders that can cross, the system will determine the equilibrium price at which the greatest number of complex orders can trade and all such orders will be executed in standard priority (see Price Calculation).

If the equilibrium price is at or inside the SNBBO, the system will open the complex instrument at the equilibrium price. If the equilibrium price is outside the SNBBO, the system will continue to send out Options Auction Update messages. After an Exchange-determined period of time, the system will release the complex orders to the complex order book in time priority.

Matched Trade Prevention (MTP) is not in-effect during the matching phase of the complex series opening.

Complex books do not leg into component single leg books during the opening process. Instead, SNBBO collars ensure complex instrument opening prices are consistent with component single leg prices.