Trading Technologies’ 16 October support update sets out an important access distinction for Cboe’s planned Futures-Options Order Type, or FOOT. The exchange launch is scheduled for 14 December. TT will process resulting CFE futures trades, but it does not support Cboe’s C1 options market and will not offer FOOT instruments or order entry.[1]
The order packages one or more VIX option legs on Cboe Options with exactly one VX futures leg on Cboe Futures Exchange. Cboe says all option legs initially share the futures expiry. The purpose is to reduce exposure to a market move between separately executing an options strategy and its futures hedge.[2]
How the package is priced and completed
| Stage | Published mechanism |
|---|---|
| Instrument definition | Includes futures price and the options-to-futures ratio. |
| Matching | C1 matches the net price of the option legs only. |
| Futures completion | The futures leg is reported to CFE for execution. |
| Clearing | Every leg clears at OCC. |
The price convention matters for implementation. A screen showing the options-only net amount must retain the futures price and ratio with the instrument. Treating the displayed package quote as the cash price of every leg would misdescribe the transaction.[2]
The SEC approved the VIX-specific mechanism on 28 August. Its order requires the futures position to offset between 10% and 125% of the options’ delta exposure, using contract multipliers. This prevents the facility becoming a route for unrelated futures trades with a token option attached. If CFE reports that the futures component cannot execute at the specified price, Cboe nullifies the option component and informs the user.[3]
For illustration, 20 long calls with a delta of 0.50 and a $100 multiplier have $1,000 of delta exposure per one-point move. One short VX future, with a $1,000 multiplier, offsets that amount: a 100% initial hedge under the stated calculation. This simplified example describes the eligibility arithmetic, not a hedge that stays constant as option prices and deltas change.[3]
At launch, entry is electronic through FIX. C1 trading-permit holders without direct CFE privileges can arrange futures routing through a broker. Cboe also specifies a separate, free FOOT market-data feed, while leg trades appear in the existing venue feeds.[2]
A TT-using desk will need an eligible options-entry route alongside TT’s futures processing, with reconciliation across the resulting legs. The announced TT capability covers the downstream futures trade; order submission for the combined strategy requires separate connectivity.
Sources & further reading
- 16 October system update — CFE/Cboe futures-options order type Trading Technologies · 16 Oct 2026 · Accessed 29 Oct 2026
- Futures-Options Order Type — product and access specifications Cboe · Accessed 29 Oct 2026
- Release 34-106216 — approval of VIX future-option orders US Securities and Exchange Commission · 28 Aug 2026 · Accessed 29 Oct 2026