SEC Notice of Filing and Accelerated Approval of Cboe Exchange Rule Change to Extend Auction Response Processing Time
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The SEC is approving a Cboe Exchange rule change that increases the maximum additional processing time for auction responses in non-FLEX options classes. Currently limited to 100 milliseconds (900 ms for SPX), the new cap allows the combined auction response period plus additional processing time to reach up to 1000 milliseconds. This change aims to reduce the number of timely-submitted auction responses that are rejected due to message queue backlogs during high-volume or volatile periods. The extension, which has already proven effective for SPX options, is made permanent for SPX and newly available to all other non-FLEX classes. FLEX options are excluded because they experience lower liquidity and longer response windows, resulting in negligible missed responses.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Maximum combined auction response period + additional processing time increased to 1000 milliseconds for all non-FLEX classes
- Additional processing time for non-FLEX SPX options made permanent (previously set to expire June 30, 2026)
- Additional processing time for non-SPX non-FLEX options increased from 100 ms to up to 900 ms additional (total 1000 ms)
+ 3 more changes with Pro
Obligations
What this law requires
Cboe Exchange must set the maximum additional processing time for auction responses in non-FLEX options classes at no more than 1000 milliseconds total (combining auction response period plus additional processing time)
Cboe Exchange must make the extended auction response processing time permanent for SPX options and newly available to all other non-FLEX options classes
Cboe Exchange must continue to exclude FLEX options from the extended auction response processing time allowance
Cboe Exchange must announce any class-by-class determination of the additional processing time period with reasonable advanced notice via Exchange Notice
Cboe Exchange must continue processing inbound queue messages received before the end of the auction period for the determined additional processing time to allow timely-submitted auction responses to participate in auctions