Federal Register #SR-CboeEDGX-2026-023

SEC Notice: Cboe EDGX Exchange Proposed Rule Change for Wide Market Protection Mechanism

This notice from the Securities and Exchange Commission (SEC) announces a proposed rule change by Cboe EDGX Exchange, Inc. regarding market protection mechanisms. - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors: - Cboe EDGX Exchange, Inc. (the only OEM/vendor mentioned) - Products/Services Requested: - No products, part numbers, or purchase quantities are requested - The notice concerns a regulatory rule change, not a procurement of goods or services - Notable Requirements: - The proposed rule change amends Rule 21.17 to implement a wide market protection mechanism - 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 - Utilizes an iterative drill-through protection process to provide additional execution opportunities while safeguarding against extreme price executions - The rule change is effective immediately upon filing and aligns with similar protections at Cboe Exchange - The notice is open for public comment and is part of the SEC's efforts to ensure fair and orderly markets

Description

The Securities and Exchange Commission has filed a proposed rule change by Cboe EDGX Exchange, Inc. to amend Rule 21.17. The amendment aims to adopt a wide market protection mechanism designed to reduce the risk of orders executing at extreme or adverse prices when the National Best Bid and Offer (NBBO) is determined to be wide. This mechanism leverages an iterative drill-through protection process to provide additional execution opportunities while protecting against extreme price executions. The rule change is effective immediately upon filing and is part of the SEC's efforts to ensure fair and orderly markets.

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