Federal Register #SR-CboeBYX-2026-014

SEC Notice: Proposed Rule Change by Cboe BYX Exchange, Inc. to Amend Rule 11.25 for Periodic Auction Orders

This opportunity concerns a proposed rule change by Cboe BYX Exchange, Inc., as published by the Securities and Exchange Commission (SEC): - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors: - Cboe BYX Exchange, Inc. (primary and only OEM/vendor mentioned) - Products/Services Requested: - No physical products or service purchases are requested; the notice addresses regulatory and operational changes to the Exchange's auction process - Key Proposed Changes: - Introduction of an optional Contingent Instruction for Periodic Auction Only Orders - Addition of a new time-in-force option: Auction or Cancel - Updates to periodic auction processing behavior to enhance fairness and functionality - Notable Requirements and Context: - The Contingent Instruction allows investors to confirm large block-size trades only if sufficient contra-side liquidity exists - Aims to improve liquidity and price discovery, especially for thinly-traded securities - Aligns with established practices in off-exchange venues - No specific product part numbers or purchase quantities are included, as this is a regulatory/operational enhancement, not a procurement of goods or services

Description

The Cboe BYX Exchange, Inc. proposes to amend Rule 11.25 to introduce an optional Contingent Instruction applicable to Periodic Auction Only Orders, introduce a time-in-force of Auction or Cancel, and make conforming changes to its Periodic Auction processing behavior. Periodic Auctions are intraday price forming auctions designed to provide additional price discovery and liquidity during the trading day without interrupting continuous trading. The proposed changes aim to improve market quality, especially for thinly-traded securities, by allowing investors to confirm their intent to trade large block-size orders only if sufficient contra-side liquidity exists, thereby enhancing the functionality and fairness of the auction process.

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