Federal Register #SR-CBOE-2026-027

Cboe Exchange Proposed Rule Change: Session-Based Wide Market Protection Mechanism

This notice concerns a proposed rule change by Cboe Exchange, Inc., published by the Securities and Exchange Commission (SEC): - The proposal seeks to amend the Exchange's wide market protection mechanism - The mechanism would be applied on a trading session-by-trading session basis, rather than uniformly across all sessions - The wide market protection mechanism is designed to prevent orders from executing at extreme or adverse prices when the National Best Bid and Offer (NBBO) is wide - The change aims to tailor investor protections to the specific characteristics and conditions of each trading session - The SEC is soliciting public comments on this proposed rule change - No procurement of products or services is involved - No OEMs or vendors are listed other than Cboe Exchange, Inc.

Description

This notice announces a proposed rule change filed by Cboe Exchange, Inc. with the Securities and Exchange Commission (SEC). The change seeks to amend the Exchange's wide market protection mechanism to allow its application on a trading session-by-trading session basis, rather than uniformly across all sessions. The mechanism is designed to reduce the risk of orders executing at extreme or adverse prices when the National Best Bid and Offer (NBBO) is wide. The proposal aims to tailor protections to the specific trading characteristics and conditions of each session, enhancing investor protection while minimizing market disruption.

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