Minimum margin requirements for VX Options are based on margin rates set by OCC and have not yet been finalized. Prior to launch, margin requirements for VX Options will be published in the Margin Table found here: Cboe U.S. Futures Exchange Margin Updates Notices.
Can CFE participants utilize their existing Executing Firm IDs (EFIDs) in support of trading VX Options?
Yes, CFE participants are not required to request new EFIDs in support of trading VX Options. If desired, new EFIDs can be requested by contacting Cboe Membership Services.
Are there certification requirements for trading in VX Options?
CFE requires certification by CFE Trading Privilege Holders (TPHs) prior to trading in any CFE options on futures. TPHs that have already certified to trade in options on futures in relation to options on corporate bond index futures are not required to separately certify to trade in VX Options. TPHs will have an opportunity to certify in the CFE certification environment prior to the production weekend testing opportunity for VX Options on Saturday, October 12, 2024 and the Go-Live Date.
What symbology will VX Options use?
VX Options symbology uses 25 distinct symbols to identify each VX Options contract based on the expiration date weekday and occurrence of the expiration date weekday within a calendar month. VX Options symbols are four characters, beginning with
UX, followed by a numeric third digit from 1 to 5 representing the occurrence of a weekday in the calendar month, and a fourth character (A, B, C, D, and E) representing the weekday. Examples include UX1A = First Monday, UX3C = Third Wednesday, and UX5E = Fifth Friday. This symbology is followed by a slash, the contract month code, and last integer of the expiration year of the underlying VX futures contract. See the Cboe Titanium U.S. Symbology Reference for further details.
How will daily settlement prices be determined for VX Options?
End of day theoretical values for VX Options prices will generally be used for daily settlement prices for VX Options.
How will exercise settlement values be determined for VX Options?
The exercise settlement value of a VX Option is the daily settlement price of the underlying VX futures contract on the expiration date of the VX Option.
Will contrary exercise instructions be permitted?
Subject to the Rules and ByLaws of OCC, a VX Options contract that is in-the-money by $0.01 or more upon its expiration is automatically exercised on its expiration date and contrary exercise instructions are not permitted.
Will block trades and ECRP transactions be supported?
Block trades are permitted in VX Options. Exchange of contract for related position (ECRP) transactions in VX Options are not permitted.
What order types and instructions will be supported for VX Options?
- Limit orders will be accepted.
- Market orders will not be accepted.
- Day, Good-'til-Canceled (GTC), Good-'til-Date (GTD), and Immediate or Cancel (IOC) Time in Force (TIF) will be supported for simple and spread orders and Fill or Kill (FOK) TIF will be supported for simple orders only.
- The following order types will NOT be supported:
- Stop and Stop Limit orders.
What risk controls will be available for VX Options?
CFE risk controls that are available for CFE options on futures products will be available for VX Options. TPHs interested in trading VX Options must contact their clearing firm to assure Clearing Firm Risk Controls are set prior to participating in VX Options trading. Optional TPH Risk Controls are also available through the Cboe Customer Web Portal.
For more information regarding these risk controls, please reference the Cboe Titanium Cboe Futures Exchange Risk Management Specification.
Will Match Trade Prevention (MTP) be supported for VX Options?
Yes, MTP will be supported for VX Options in the same way that MTP is supported for other CFE products. MTP will not be supported during the opening process for VX Options. See the Cboe Titanium Cboe Futures Exchange Opening Process specification for details.
What is the opening process for VX Options?
All simple VX futures instruments are opened first, followed by VX futures spread instruments. After all VX futures instruments are opened, simple VX Options instruments are opened, followed by VX Options spread instruments. See the Cboe Titanium Cboe Futures Exchange Opening Process specification for details.
This document is a high-level overview of what is currently contemplated. The information included is subject to change and to more detailed provisions to be put in place in connection with the launch of this product. Additionally, the planned launch of this product remains subject to regulatory review.
