November 30, 2011
In addition to the previous comment submitted by Kenny Casper, I want to also reiterate the following:
By closing the trading at 3:00 vs 3:15, it eliminates the final movements of the index which represents a substantial amount of risk to the customer. Anyone who has on a time spread (weekly vs weekly, or weekly vs monthly) will not be able to exit the spread OR roll the spread after 3:00. I have seen many big moves of the indices well past 3:00. This will ultimately hurt the customer and compromise the benefit of the products. There is no REASONABLE, VALID, LOGICAL reason that after so many years the most successful product the CBOE has needs to be changed in this negative way.
Exchanges are here to PROTECT the customer from movements in the markets. This change does the opposite and potentially will hurt the customer. It does nothing to INCREASE liquidity but will ultimately DECREASE liquidity.
How can the SEC allow the CBOE or any other exchange to "pick and choose" when the public is allowed to hedge their portfolio?