Cboe Pushes to Extend Equity Options Trading as Global Demand Surges

TLDR

• Cboe eyes longer hours to sync U.S. options with global market flow.
• Extended options hours promise more flexibility for global traders.
• Cboe’s phased rollout targets top equity names for early access.
• Infrastructure upgrades pave way for near 24×5 options trading.
• Longer trading day could redefine how U.S. markets react overnight.

Cboe Global Markets has filed a proposal with the U.S. Securities and Exchange Commission to introduce extended trading hours for equity options. The plan aims to open the market from 7:30 a.m. to 9:25 a.m. and add an afternoon session from 4 p.m. to 4:15 p.m. This move would align the U.S. options trading schedule with increasing global market activity across Asia and Europe.

The exchange views extended trading hours as essential for enhancing access and response time to global developments. Market participants currently face limitations when significant news breaks outside the traditional 9:30 a.m. to 4 p.m. window. By expanding access, Cboe aims to offer more flexibility and reduce the risk of overnight price gaps.

Cboe reported a sharp rise in equity options volume, driven by participation from non-institutional players and new product types. According to the Options Clearing Corporation, monthly volume reached 1.29 billion contracts in September. This marked a 68% rise from the 763 million contracts recorded two years ago.

Selective Rollout Targets High-Volume Contracts

Cboe plans to launch extended trading hours in stages, starting with a select group of high-volume equity options contracts. Selection criteria will include market capitalization, daily share activity, and trading volume to ensure sustained liquidity. This phased approach focuses on the most active names rather than a full rollout across all listed options.

The exchange clarified that not every equity option will immediately qualify for the extended schedule. Cboe aims to support early adopters while maintaining tight spreads and efficient execution during the extra sessions. This move builds on Cboe’s existing experience with extended hours in its futures and index options markets.

By targeting the most liquid names, the exchange believes it can ensure a smooth operational transition. Cboe intends to monitor demand and market performance closely before expanding to additional contracts. This strategy will help manage potential risks while still meeting increased global interest.

Infrastructure Gears Up for Broader Trading Access

The Depository Trust & Clearing Corporation will support extended trading hours by enabling settlement during added timeframes starting next year. Securities Information Processors are adjusting systems to deliver near real-time updates for prices and quotes throughout the added windows. These infrastructure upgrades will pave the way for broader industry adoption of a longer trading day.

Only select platforms, such as Robinhood and Interactive Brokers, offer extended equity access through alternative venues. These venues are not part of the traditional exchange system and face regulatory limits. With upcoming tech alignment, major exchanges could soon match that flexibility within a fully regulated environment.

Cboe’s proposal marks another step toward a full 24×5 trading model. By extending equity options access, it responds to changing market behavior and growing global trading demand. If approved, the plan may reshape how U.S. options are traded during off-peak hours.

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