Cboe BYX Exchange Updates Rules on Non-Displayed Orders
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The Cboe BYX Exchange has updated its rules to clarify the behavior of non-displayed orders. The changes align BYX's rules with those of its affiliate, addressing order entry and execution specifically in locked and crossed markets. These updates provide more detailed information to market participants and aim to reduce uncertainty.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Clarification on execution and ranking of non-displayed orders
- Alignment of BYX rules with affiliate exchange EDGX
- Detailed explanations for locked and crossed market scenarios
Obligations
What this law requires
Market participants must ensure that Non-Displayed Orders are executed against previously posted orders on the BYX Book that are priced equal to or better than the price of the Non-Displayed Order, unless such executions would trade through a Protected Quotation.
Non-Displayed Orders must be executed against previously posted orders on the BYX Book that are priced equal to or better than the price of the Non-Displayed Order, unless such executions would trade through a Protected Quotation.
Non-Displayed Orders that cannot be executed must be posted to the BYX Book unless the order has a time-in-force of Immediate-or-Cancel (IOC).
Traders must specify in the Non-Displayed Order whether it has a time-in-force of Immediate-or-Cancel (IOC) or if it may be posted to the BYX Book.
When entering a Non-Displayed Order, traders must provide instructions regarding whether they permit price sliding or not, to determine how the order is posted if it locks or crosses a Protected Quotation.