Amendment to Cboe BZX Exchange Rules on Non-Displayed Orders
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This amendment clarifies how non-displayed orders behave on the Cboe BZX Exchange. It aligns the BZX rules with those of its affiliate, EDGX, providing more certainty for market participants. The focus is on how these orders are executed and ranked, especially in scenarios involving locked or crossed markets.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Clarifies behavior and ranking of non-displayed orders
- Aligns BZX rules with EDGX affiliate
- Focus on locked and crossed market scenarios
Obligations
What this law requires
Cboe BZX Exchange must ensure that Non-Displayed Orders are executed against previously posted orders on the BZX Book at prices equal to or better than the price of the Non-Displayed Order, unless the execution would trade through a Protected Quotation.
Cboe BZX Exchange must execute Non-Displayed Orders against previously posted orders on the BZX Book that are priced equal to or better than the price of the Non-Displayed Order, unless such execution would trade through a Protected Quotation.
Cboe BZX Exchange must post any portion of a Non-Displayed Order that cannot be executed, unless it has a time-in-force of Immediate-or-Cancel (IOC) or is designated as a routable order.
Cboe BZX Exchange must post Non-Displayed Orders to the BZX Book at the locking price if their limit price would lock the BZX Book.
If the limit price of a Non-Displayed Order would lock the BZX Book, the Non-Displayed Order must be posted on the BZX Book at the locking price.