Overnight Option Trading

[FSU]

The CBOE just announced that they will begin overnight trading in the VIX and SPX options starting in early March. http://ir.cboe.com/press-releases/2015/feb-06-2015.aspx

 

[rmorse]

Why sleep? Thanks for the update.

Bob

 

[FSU]

Trading doesn't start until 2am, so you can get a couple of hours of sleep first! Wonder how many brokers/trading platforms will support this.

 

[rmorse]

Since ES options start trading at 6 pm est, I don't see this as a major change. Maybe more of an institutional crossing network for European orders.

I wondering if these orders will have their own entry time, then will those orders expire at 8:15am? What happens to GTC orders from the regular session? The CBOE is not giving the platforms and brokers much time to prepare.

 

[FSU]

Expect very wide markets. There will be 3 LMM's, but they will required to quote a size of 1 up, 90% of the time in only 60% of the first 9 month series, and there will be no rule as to how wide they can quote. http://www.cboe.com/framed/PDFframe...l+Settings+for+Extended+Trading+Hours+Session

 

[FSU]

Well, VIX options have now been trading overnight for just over a week and the SPX options since Monday morning. Spreads tighter then I expected. The only retail customers that seem to be able to trade these are IB, or so I have been told.

 

[rmorse]

Most don't have access yet. BTW, it's new different trading session. You have to enter an order just for that session. It expires before regular trading starts.