Federal Register #SR-Cboe-2025-075

SEC Approves Cboe Rule Change for MBTX Options Trading Increments

This notice details the SEC's accelerated approval of a Cboe Exchange rule change affecting MBTX options trading increments: - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors Mentioned: - Cboe Exchange, Inc. (primary exchange and rule filer) - iShares (IBIT, referenced as a related ETF product) - Products/Services Referenced: - Cboe Mini Bitcoin U.S. ETF Index (MBTX) options - Minimum trading increments set to $0.01 for series priced below $3.00 - $0.05 increments for series priced at or above $3.00 - Change is conditioned on iShares Bitcoin Trust ETF (IBIT) options participating in the Penny Interval Program - Port-Level Anti-Internalization Functionality (Nasdaq Stock Market LLC, for FIX protocol users) - Unique or Notable Requirements: - Aligns MBTX options trading increments with IBIT options to promote competition and liquidity - Enhances pricing precision for MBTX options - SEC is soliciting public comments on the rule change - No procurement of goods or services; this is a regulatory notice - Place of Performance/Regulatory Oversight: - SEC Headquarters, 100 F Street NE, Washington, DC 20549 - Federal Register (public notice)

Description

The Securities and Exchange Commission has published a notice regarding an amendment to Cboe Exchange, Inc.'s Rule 5.4. The amendment proposes to modify the minimum trading increments for options on the Cboe Mini Bitcoin U.S. ETF Index (MBTX), allowing finer increments of $0.01 for series priced below $3 and $0.05 for series priced at or above $3. This change aims to promote competition, improve pricing precision, and increase liquidity for MBTX options, aligning their trading increments with related products such as the iShares Bitcoin Trust ETF (IBIT) options. The Commission has granted accelerated approval for this rule change, effective immediately upon filing, and is soliciting public comments.

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