Federal Register #SR-C2-2026-022

SEC Notice of Proposed Rule Change by Cboe C2 Exchange, Inc. to Amend Market-Maker Quote Rules

This opportunity involves a proposed rule change by Cboe C2 Exchange, Inc., published by the Securities and Exchange Commission (SEC), affecting market-maker quote requirements. - Government Buyer: - Securities and Exchange Commission (SEC) - Cboe C2 Exchange, Inc. (regulated entity) - OEMs and Vendors: - No OEMs or vendors are involved; this is a regulatory notice - Products/Services Requested: - No products or services are being procured - Notable Requirements: - Amendment to Exchange Rule 5.52 to establish a maximum $5 bid/ask spread for market-makers - Exceptions for certain options series and classes, including wider differentials for specific products or when the underlying security's NBBO is wider - Rule modeled after frameworks from Miami International Securities Exchange, LLC (MIAX) and Nasdaq ISE, LLC (ISE) - Effective immediately upon filing - Aims to enhance market quality by requiring tighter bid/ask spreads from market-makers - No procurement activity; this is a regulatory change impacting market participants

Description

The Securities and Exchange Commission has filed a proposed rule change by Cboe C2 Exchange, Inc. to amend Exchange Rule 5.52 regarding market-maker quotes. The amendment adopts two-sided quote bid/ask differentials, establishing a maximum permissible width of $5 between a Market-Maker's bid and offer in an appointed class. The rule change includes exceptions for certain options series and classes and is effective immediately upon filing. This change aims to enhance market quality by requiring tighter bid/ask spreads from Market-Makers.

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