Federal Register #SR-CboeBZX-2025-149

SEC Notice: Proposed Rule Change for Cboe BZX Exchange IPO Auction Procedures

This notice from the Securities and Exchange Commission (SEC) addresses a proposed rule change for IPO auction procedures on the Cboe BZX Exchange: - Government Buyer: - Securities and Exchange Commission (SEC) - OEM/Vendor Mentioned: - Cboe BZX Exchange, Inc. - Scope of Notice: - Proposes to amend the definition of "Indicative Price" under Exchange Rule 11.23(a)(10) - Extends the Quote-Only Period for Initial Public Offering (IPO) Auctions under Rule 11.23(d)(2)(B) - Differentiates procedures for BZX-listed corporate securities and ETP IPO Securities - Expands the circumstances for extending the Quote-Only Period for ETP IPO Securities - Introduces a price validation test to improve price discovery and investor protection during IPO auctions - Unique/Notable Requirements: - Focuses on regulatory changes to enhance IPO auction transparency and investor safeguards - No products, part numbers, or purchase quantities are requested; this is a procedural rulemaking notice - Public comments are invited on the proposed changes

Description

The Securities and Exchange Commission (SEC) published a notice regarding a proposed rule change by Cboe BZX Exchange, Inc. The amendment modifies the definition of "Indicative Price" under Exchange Rule 11.23(a)(10) and extends the Quote-Only Period for IPO Auctions under Rule 11.23(d)(2)(B). The proposal delineates between BZX-listed corporate securities and ETP IPO Securities, expands circumstances for extending the Quote-Only Period for ETP IPO Securities, and introduces a price validation test to enhance price discovery and investor protection during IPO auctions. The SEC finds the proposal consistent with the Securities Exchange Act and invites public comments.

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