OCC proposes rule change to expand overnight product eligibility
The proposed amendment would let any participating exchange clear additional products in extended trading sessions, pending Commission approval.
On July 30, 2026, The Options Clearing Corporation (OCC) filed a proposed rule change with the Securities and Exchange Commission (File No. SR-OCC-2026-008, Release No. 34-106080). The Commission published a notice of filing on August 12, 2026 to solicit comments from interested parties.
The amendment would modify OCC's Rules to establish a procedures-based approach for determining product eligibility during overnight or extended trading (ETH) sessions, using the existing ETH risk-management framework. At present, OCC clears only index options listed by Cboe Global Markets and index futures listed by Cboe Futures Exchange in ETH sessions. The proposal would create a framework for risk-managing other products that an Exchange may propose to trade outside regular hours, including options on index futures and multi-listed equity options that Cboe has already sought to trade in extended hours.
OCC highlights several risk considerations that motivate the change. It notes that extended-hour trading limits the ability to issue and collect intraday margin calls, increases operational risk due to reduced staffing, and often occurs in markets with limited liquidity, which can lead to higher transaction costs, price gapping, and episodic volatility. The agency also points to potential reductions in market-maker quoting activity during ETH periods, which could degrade price discovery.
The filing adds amendments to OCC's Rules and to the Extended Trading Hours Set-Up and Monitoring Procedure as Exhibits 5A and 5B. All capitalized terms retain their definitions in OCC's By-Laws and Rules. Comments on the proposal must be received by the date specified in the notice, after which the Commission will consider the amendment for adoption.