On 4 May 2021, Cboe increased position limits for options on certain ETFs.
- The exchange proposed to increase position limits for options on certain exchange-traded funds and an exchange-traded note, GLD, SLV, LQD, GDX, VXX and UVXY.
- The exchange has observed an ongoing increase in demand, for both trading and hedging purposes, in options on certain exchange-traded products (ETPs).
- However, position limits for options on the underlying ETPs have remained the same.
- Unchanged position limits may have impeded, and may continue to impede, trading activity and strategies of investors, such as use of effective hedging vehicles.
- Amended CBOE Rule 8.30.07 to increase position limits for the underlying ETPs.
- The exchange believes continuously increasing market capitalization of the underlying ETPs reduces the concerns for potential market manipulation and/or disruption.
- Cboe initially filed proposed changes on 21 April 2021, SEC filed notice 5 May 2021.
- Comments are due 21 days from pending publication in the federal register.
May 2021 Fed Reg Proposal
- On 10 May 2021, SEC issued proposal in federal register, comments due 1 June 2021.