Federal Register #SR-CBOE-2026-074

SEC Notice: Proposed Rule Change by Cboe Exchange, Inc. on Market-Maker Quote Requirements

This notice from the Securities and Exchange Commission (SEC) announces a proposed rule change by Cboe Exchange, Inc. regarding Market-Maker Quote requirements. - Government buyer: - Securities and Exchange Commission (SEC) - Cboe Exchange, Inc. (regulated entity submitting the proposal) - No OEMs or vendors are involved, as this is a regulatory action, not a procurement. - Products/services requested: - No products or services are being procured; the notice pertains to regulatory amendments. - Notable requirements: - Proposed amendment to Exchange Rule 5.52 (Market-Maker Quotes) - Establishes maximum permissible bid/ask differentials for Market-Maker quotes in options series: - $5 maximum spread for options expiring in 270 days or less - $15 maximum spread for options expiring in more than 270 days - Exchange may set different differentials for specific series or classes - Exception for in-the-money series where the underlying security's NBBO is wider than the set differentials - References similar frameworks at MIAX, Nasdaq ISE, and Nasdaq PHLX - No procurement activity, contract value, or product/service line items are present.

Description

The Securities and Exchange Commission (SEC) published a notice regarding a proposed rule change by Cboe Exchange, Inc. to amend Exchange Rule 5.52 concerning Market-Maker Quotes. The amendment aims to adopt two-sided quote bid/ask differentials, establishing maximum permissible widths between a Market-Maker's bid and offer in an options series. The proposal includes exceptions and allows the Exchange discretion to set different differentials for specific series or classes. This change is intended to enhance market quality by requiring tighter bid/ask spreads and improving liquidity.

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