Federal Register #SR-CboeEDGX-2026-063

SEC notice on Cboe EDGX proposed tiered options quote-width limits

The SEC notice concerns a proposed change to Cboe EDGX Exchange’s options Market Maker quote-width rules, not a government purchase. - Government entity: Securities and Exchange Commission (SEC). - Organization named: Cboe EDGX Exchange, Inc., which filed the proposed rule change; the notice also references Cboe Options, ISE, and Phlx. - Proposed change: Set the maximum bid/ask differential at $5 for options expiring in 270 days or less, and $15 for options expiring in more than 270 days. - Rationale and requirements: Cboe EDGX says the tiers reflect differences in options liquidity and pricing uncertainty and align with Cboe Options Rule 5.52(c). The notice also identifies comparable rules at ISE and Phlx. - Procurement status: This is a regulatory notice inviting public comment. It requests no products or services and is not an award.

Description

Cboe EDGX Exchange, Inc. proposes to amend Exchange Rule 22.6(c), governing Market Maker quote bid/ask differentials. The proposed tiers set a maximum differential of $5 for options series expiring in 270 days or less and $15 for series expiring in more than 270 days. The notice invites comments on the proposed rule change, which the Exchange says is intended to account for differences in liquidity and pricing uncertainty across options with different times to expiration. Comments are due October 27, 2026.

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