Federal Register #SR-OCC-2026-008

OCC Proposed Rule Change for Clearing Additional Products During Extended Trading Hours

This opportunity centers on a proposed rule change by The Options Clearing Corporation (OCC) to expand product eligibility for clearing during extended trading hours (ETH). - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors Mentioned: - The Options Clearing Corporation (OCC) - Cboe Global Markets, Inc. - Cboe Futures Exchange, LLC - Nasdaq - NYSE - MIAX Futures Exchange, LLC - Products/Services Requested: - Options on VIX Futures (VX Futures Options) - To be cleared during extended trading hours - Multi-listed Equity Options - Proposed for trading during ETH, limited to 100 option classes based on liquidity and market capitalization - Unique or Notable Requirements: - Eligibility criteria for products based on trading volume and market capitalization - Enhanced risk management procedures, including margin requirements and operational controls for ETH - OCC authority clarified for determining regular and extended trading hours - Framework for evaluating new products for ETH clearance - Compliance with regulatory obligations and exchange agreements - Technical and business relevance: - Expansion of product types eligible for clearing during overnight and extended sessions - Risk management enhancements to address credit and market risks outside regular hours - Opportunity for exchanges to request additional products for ETH clearance

Description

The Options Clearing Corporation (OCC) has filed a proposed rule change to amend its rules to establish a procedures-based approach for determining product eligibility during overnight or extended trading sessions (ETH). The proposal aims to expand the types of products that can be cleared during ETH sessions beyond index options and futures, including options on VIX futures and multi-listed equity options. The amendments clarify OCC's authority to determine regular and extended trading hours independently of exchanges and provide a framework for evaluating and managing risks associated with new products traded during ETH. The changes also ensure that any necessary modifications to ETH procedures comply with OCC's regulatory obligations and agreements with exchanges.

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