On October 17, the Securities and Exchange Commission approved a rule proposal filed by Cboe Exchange, Inc. (CBOE) allowing the off-floor transfers of options positions by Trading Permit Holders (TPHs) under a new circumstance.
Under proposed Rule 6.9, positions in options listed on CBOE would be permitted to be transferred outside CBOE by a TPH in connection with transactions to purchase or redeem creation units of exchange-traded fund (ETF) shares between an “authorized participant” and the issuer of such ETF shares. An “authorized participant” is defined as an entity that has a written agreement with the issuer of ETF shares or one of its service providers that allows the authorized participant to place orders for the purchase and redemption of creation units. Such transfers would occur at the price used to calculate the net asset value of such ETF shares.
The order approving the rule proposal is available here.