Notice of Filing and Immediate Effectiveness of Proposed Rule Change by Cboe EDGA Exchange on Non-Displayed Orders
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This rule update explains how Non-Displayed Orders behave on the Cboe EDGA Exchange. It clarifies how these orders are priced, ranked, and executed. The changes aim to align EDGA's rules with those already approved for its affiliate, EDGX, ensuring that users have clearer guidance on how hidden orders interact in different market scenarios.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Clarifies how Non-Displayed Orders are entered and executed on the EDGA Book.
- Describes the ranking and pricing in locked and crossed markets scenarios.
- Aligns EDGA rules with the affiliate EDGX Exchange.
Obligations
What this law requires
Users must ensure that Non-Displayed Orders are executed against previously posted orders priced equal to or better than the Non-Displayed Order, unless such executions would trade through a Protected Quotation.
Cboe EDGA Exchange, Inc. must provide clear guidance on the execution behavior of Non-Displayed Orders as per the amended Rule 11.6(e)(2) and Rule 11.10(a)(4)(C)-(D).
Non-Displayed Orders that cannot be executed upon entry must be posted to the EDGA Book unless they have a time-in-force of Immediate-or-Cancel (IOC) or are designated as routable orders.
Market participants must be informed of how Non-Displayed Orders are ranked and executed on the EDGA Book during scenarios involving locked and crossed markets.
If a Non-Displayed Order cannot execute due to User instructions (e.g., Post Only or minimum quantity) and contains a price slide instruction, it will be ranked at the locking price upon entry.