Cboe Exchange, Inc.

1 I cboe exchange , Inc. Rules of cboe exchange , Inc. (Updated as of July 1, 2022) ii TABLE OF CONTENTS CHAPTER 1. GENERAL PROVISIONS SECTION A. DEFINITIONS Definitions SECTION B. ADMINISTRATIVE MATTERS exchange Determinations Time SECTION C. exchange LIABILITY AND DISCLAIMERS exchange Liability Disclaimers and Limitations Limitation on Liability of Index Licensors for Options on Units Limitation on Liability of Reporting Authorities for Indexes Underlying Options Limitation of Liability of Reporting Authority for Interest Rate Options Limitation of Liability of Reporting Authority for Credit Options Legal Proceedings Against the exchange CHAPTER 2. TRADING PERMIT HOLDER FEES Trading Permit Holder Fees And Charges Regulatory Revenues Integrated Billing System (IBS) Liability for Payment exchange s Costs of Defending Legal Proceedings CHAPTER 3.

2 TPH MEMBERSHIP, REGISTRATION, AND PARTICIPANTS SECTION A. TPH QUALIFICATIONS Trading Permits Qualifications of Individual TPHs Qualifications of TPH Organizations Foreign TPHs Additional TPH Qualifications Denial of and Conditions to Being a TPH or Associated with a TPH Persons Associated with TPH Organizations Certain Documents Required of TPHs, Applicants, and Associated Persons Responsible Persons and Nominees Application Procedures and Approval or Disapproval Effectiveness of TPH or Approved Associated Person Status iii Educational Classes TPHs and Associated Persons Who Are or Become Subject to a Statutory Disqualification Termination from TPH Status Dissolution and Liquidation of TPH Organizations Obligations of Terminating TPHs Extension of Time Limits Ownership Concentration and Affiliation Limitation SECTION B.

3 TPH REGISTRATION Registration Requirements Registration Categories Associated Persons Exempt from Registration Continuing Education Electronic Filing Requirements for Uniform Forms exchange Approval Registration of Registered Options Principals Registration of Representatives Other Affiliations of Registered Associated Persons Discipline, Suspension, Expulsion of Registered Persons Branch Offices of TPH Organizations SECTION C. TPH TRADING FUNCTIONS Floor Brokers OEFs Market-Makers DPMs DPM Designees LMMs PMMs FLEX Trader FLEX Market-Makers Order Service Firms Sponsored Users Letters of Guarantee and Authorization Affiliation Between the exchange and a TPH cboe Trading as Outbound Router cboe Trading as Inbound Router Membership in OneChicago, LLC CHAPTER 4. OPTIONS LISTING SECTION A. EQUITY AND ETP OPTIONS iv Designation of Underlying Securities Rights and Obligations of Holders and Writers Criteria for Underlying Securities Withdrawal of Approval of Underlying Securities Series of Option Contracts Open for Trading Adjustments Select Provisions of Options Listing Procedures Plan Single Stock Dividend Options SECTION B.

4 INDEX OPTIONS Designation of the Index Index Option Definitions Dissemination of Information Series of Index Options Debit Put Spread Cash Account Transactions Range Options Binary Options End-of-Day Indicative Values SECTION C. FLEX OPTIONS FLEX Option Classes Series of FLEX Options FLEX Fungibility SECTION D. CORPORATE DEBT SECURITY OPTIONS Definitions Designation of Corporate Debt Security Options Approval of Underlying Corporate Debt Securities Terms of Corporate Debt Security Options Series of Corporate Debt Security Options Open for Trading FLEX Trading SECTION E. CREDIT OPTIONS Definitions Designation of Credit Default Option Contracts Designation and Terms of Credit Default Basket Option Contracts Withdrawal of Approval of Underlying Reference Entity Adjustments FLEX Trading Trading Rotations SECTION F.

5 GOVERNMENT SECURITY OPTIONS v Definitions Designation of Government Security Options (Treasury Bonds and Notes) Approval of Underlying Treasury Securities for Specific Coupon Options (Treasury Bonds and Notes) Terms of Treasury Security Options (Treasury Bonds and Notes) Series of Treasury Security Options Open for Trading (Treasury Bonds and Notes) Special Rules for Treasury Bill Options Wire Connections Trading Rotations Priority of Bids and Offers Limit Order Book for Government Securities Options SECTION G. INTEREST RATE OPTIONS Definitions Terms of Interest Rate Option Contracts Wire Connections CHAPTER 5. OPTIONS TRADING SECTION A. GENERAL PROVISIONS Trading Days and Hours Unit of Trading Bids and Offers Minimum Increments for Bids and Offers System Access and Connectivity Order Types, Order Instructions, and Times-in-Force Entry of Orders and Quotes Incoming Orders Order Exposure Give Up of Clearing TPH Binding Transactions Transactions Off the exchange SECTION B.

6 exchange AUTHORITY Trading Halts Equity Market Plan to Address Extraordinary Market Volatility Market-wide Trading Halts due to Extraordinary Market Volatility Unusual Market and Emergency Conditions Disaster Recovery Message Traffic Mitigation Back-Up Trading Arrangements vi SECTION C. ELECTRONIC TRADING Availability of Orders and Quotes for Electronic Processing Opening Auction Process Order and Quote Book Processing, Display, Priority, and Execution Complex Orders Order and Quote Price Protection Mechanisms and Risk Controls Step Up Mechanism ( SUM ) Order Routing Automated Improvement Mechanism ( AIM or AIM Auction ) Complex Automated Improvement Mechanism ( C-AIM or C-AIM Auction ) Solicitation Auction Mechanism ( SAM or SAM Auction ) Complex Solicitation Auction Mechanism ( C-SAM or C-SAM Auction ) S&P 500 Variance Trades SECTION D.

7 MARKET-MAKER OBLIGATIONS Market-Maker Appointments Market-Maker Obligations Market-Maker Quotes Good Standing for Market-Makers DPMs LMMs PMMs FLEX Market-Makers Stopping of Option Orders Firm Disseminated Market Quotes SECTION E. INTERMARKET LINKAGE Definitions Order Protection Locked and Crossed Markets SECTION F. FLEX TRADING Availability of Orders Opening of FLEX Trading FLEX Trading FLEX Automated Improvement Mechanism ( FLEX AIM or FLEX AIM Auction ) FLEX Solicitation Auction Mechanism ( FLEX SAM or FLEX SAM Auction ) FLEX Official SECTION G. MANUAL ORDER HANDLING AND OPEN OUTCRY TRADING vii Admission to and Conduct on the Trading Floor Equipment and Communications on the Trading Floor Public Automated Routing System (PAR) Availability of Orders Opening of Open Outcry Trading Order and Quote Allocation, Priority, and Execution Facilitated and Solicited Transactions Crossing Orders Reserved Risk-Weighted Assets ( RWA ) Transactions PAR Official Responsibilities Floor Broker Responsibilities Trading Space Allocations SPX and VIX Trading Crowd Space Disputes CHAPTER 6.

8 POST-TRANSACTION MATTERS SECTION A. TRANSACTION REPORTS AND MODIFICATIONS Report Transactions to the exchange Transaction Reports; Users Identities Unmatched Trade Reports Reporting of Trades to OCC Nullification and Adjustment of Option Transactions Including Obvious Errors Clearing Editor Off-Floor Transfers of Positions Off-Floor RWA Transfers In-Kind exchange of Options Positions and ETF Shares and UIT Units Multilateral Compression Service SECTION B. EXERCISES AND DELIVERIES Exercise of Options Contracts Allocation of Exercise Notices Delivery and Payment CHAPTER 7. REGULATORY RECORDS, REPORTS, AND AUDITS SECTION A. GENERAL Maintenance, Retention and Furnishing of Books, Records and Other Information Reports of Uncovered Short Positions Financial Reports Audits Automated Submission of Trading Data Securities Accounts and Orders of Market-Makers viii Risk Analysis of Market-Maker Accounts Risk Analysis of Portfolio Margin Accounts Regulatory Cooperation Fingerprint-Based Background Checks of exchange Directors, Officers, Employees and Others SECTION B.

9 CONSOLIDATED AUDIT TRAIL (CAT) COMPLIANCE RULE Definitions Clock Synchronization Industry Member Data Reporting Customer Information Reporting Industry Member Information Reporting Time Stamps Clock Synchronization Rule Violation Connectivity and Data Transmission Development and Testing Recordkeeping Timely, Accurate and Complete Data Compliance Dates Fee Dispute Resolution CHAPTER 8. BUSINESS CONDUCT SECTION A. GENERAL CONDUCT Just and Equitable Principles of Trade Adherence to Law Gratuities Nominal Employment False Statements Manipulation Rumors Disciplinary Action by Other Organizations Other Restrictions on Trading Permit Holders Prevention of the Misuse of Material, Nonpublic Information Prohibition Against Harassment Anti-Money Laundering Compliance Program Third Party Deposits Prohibited Communications to the exchange or the Clearing Corporation Unbundling of Orders to Maximize Rebates of Fees Supervision Proxy Voting Failure to Pay Premium Restriction on Acting as Market-Maker and Floor Broker ix Prohibition Against Customers Functioning as Market-Makers Multiple Representation Prohibited Trading by Trading Permit Holders on the Floor SECTION B.

10 POSITION LIMITS, EXERCISE LIMITS, LIQUIDATION AND REPORTING Position Limits Position Limits for Broad-Based Index Options Position Limits for Industry Index Options Position Limits for Options on Micro Narrow-Based Indexes Position Limits for Individual Stock or ETF Based Volatility Index Options Position Limits for FLEX Options Position Limits for Binary Options Position Limits for Range Options Position Limits for Corporate Debt Security Options Position Limits for Credit Options Position Limits for Government Security Options Position Limits for Interest Rate Options Exercise Limits Reports Related to Position Limits Liquidation of Positions Limit on Outstanding Uncovered Short Positions Other Restrictions on Options Transactions and Exercises CHAPTER 9. DOING BUSINESS WITH THE PUBLIC Opening of Accounts Supervision of Accounts Suitability of Recommendations Discretionary Accounts Confirmation to Customers Statements of Accounts to Customers Statements of Financial Condition to Customers Addressing of Communications to Customers Delivery of Current Options Disclosure Documents Restrictions on Pledge and Lending of Customers Securities Transactions of Certain Customers Prohibition Against Guarantees and Sharing in Accounts Assuming Losses Transfer of Accounts Options Communications Brokers Blanket Bonds Customer Complaints Telemarketing Borrowing From or Lending to Customers Global Trading Hours and Curb Trading Hours Disclosure x CHAPTER 10.