SEC reviews Cboe BZX plan to delay opening auctions when prices fall outside the auction band
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This notice opens SEC proceedings to decide whether Cboe BZX’s proposed opening-auction changes should be approved. The exchange wants to delay the market open in certain cases when the indicative price falls outside its auction price range, then widen that range step by step for up to 4 minutes 30 seconds so more orders can participate at a price closer to current market conditions. For broker-dealers, traders, and firms that route orders to BZX-listed securities, the practical effect is a longer and more flexible opening process on some days. The SEC is also asking whether the proposal could affect how opening prices are used to set early limit-up/limit-down bands and whether the exchange has shown the change is fair and consistent with investor-protection rules.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Delays the opening auction when the indicative price is outside the allowed auction price range.
- Widens the auction price range in stages over time, for up to 4 minutes 30 seconds, if the auction still has not opened.
- Changes the opening-price definition so the reported open can come from either a round-lot or odd-lot trade.
+ 1 more changes with Pro
Obligations
What this law requires
Interested persons who wish to comment on the proposed rule change must submit written data, views, and arguments to the SEC by the stated comment deadline, and any rebuttal comments must be filed by the rebuttal deadline.
Commenters submitting electronic comments must use the SEC internet comment form or email [email protected], and include File Number SR-CboeBZX-2026-004 on the subject line.
Commenters submitting paper comments must send them in triplicate to the SEC Secretary at 100 F Street NE, Washington, DC 20549-1090, and refer to File Number SR-CboeBZX-2026-004.
Commenters should use only one submission method for SEC comments to help the Commission process and review submissions more efficiently.
Persons submitting comments should not include personally identifiable information in their submissions and should submit only information they wish to make public.