On October 21, the Securities and Exchange Commission (SEC) issued an Order Instituting Proceedings (the Order) to determine whether to approve a proposed rule change filed by Cboe Exchange, Inc. (CBOE) regarding off-floor position transfers.
Generally, CBOE requires a Trading Permit Holder (TPH) to effect transactions in listed options on an exchange. Notwithstanding that provision, CBOE does permit certain types of transfers involving a TPH’s positions to be effected off the exchange. The proposed rule change would specify several additional types of permitted off-floor transfers. The rule proposal and additional types of permitted off-floor transfers were discussed in greater detail in the July 26 edition of Corporate & Financial Weekly Digest.
The SEC is soliciting comments from interested persons prior to deciding whether to approve or disapprove of the proposed rule change.
The Order is available here.