Federal Register #SR-C2-2026-027

Cboe C2 Exchange proposes tiered Market-Maker quote-width limits for options

Cboe C2 Exchange proposes tiered limits on Market-Maker options quote widths under Rule 5.52(c). - Government body: The Securities and Exchange Commission (SEC) published the notice and is soliciting public comments. - Proposing organization: Cboe C2 Exchange, Inc. - Proposed limits: A maximum $5 bid/ask differential for options expiring in 270 days or less, and a maximum $15 differential for options expiring in more than 270 days. - Rationale and related rules: Cboe says the tiers account for differences in liquidity and pricing uncertainty. The proposal aligns with Cboe Options Rule 5.52(c) and references approaches used by ISE and Phlx. - Procurement: No products, services, quantities, or part numbers are requested; this is a proposed exchange-rule change, not a procurement.

Description

Cboe C2 Exchange, Inc. proposes to amend Exchange Rule 5.52(c), which sets bid/ask differential requirements for Market-Maker quotes. The amendment would apply a $5 maximum bid/ask differential to options series expiring in 270 days or less and a $15 maximum to options series expiring in more than 270 days. The notice announces the filing’s immediate effectiveness and invites public comments by October 27, 2026.

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