Federal Register #SRC2-2026-007

SEC Notice: Proposed Rule Change by Cboe C2 Exchange, Inc. to Adopt Wide Market Protection Mechanism

This notice concerns a proposed regulatory rule change by Cboe C2 Exchange, Inc., reviewed by the Securities and Exchange Commission (SEC): - Government Buyer: - Securities and Exchange Commission (SEC) - Office location: 100 F Street NE, Washington, DC 20549 - OEM/Vendor Mentioned: - Cboe C2 Exchange, Inc. (self-regulatory organization) - Nature of Request: - Proposal to amend Rule 5.34 to implement a wide market protection mechanism - Mechanism aims to reduce risk of orders executing at extreme or adverse prices when the National Best Bid and Offer (NBBO) is wide - Utilizes an iterative drill-through process to protect market and limit orders, including Stop and Stop-Limit orders - Excludes certain order types from the new protections - Unique/Notable Requirements: - Focus on enhancing risk protections for market participants during volatile market conditions - SEC is soliciting public comments on the proposed rule change - No procurement of goods or services; this is a regulatory rulemaking notice, not a purchasing opportunity

Description

The Securities and Exchange Commission has published a notice regarding a proposed rule change by Cboe C2 Exchange, Inc. to amend Rule 5.34. The rule change aims to adopt a wide market protection mechanism designed to reduce the risk of orders executing at extreme or adverse prices when the NBBO is determined to be wide. The notice includes details about the rule change, its effective date, and relevant docket and document numbers. The mechanism involves an iterative drill-through process to protect orders from executing at extreme prices during wide market conditions.

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