Notice2026-01992
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Rule 8.23
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 2, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 21 (Monday, February 2, 2026)</title>
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[Federal Register Volume 91, Number 21 (Monday, February 2, 2026)]
[Notices]
[Pages 4645-4650]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01992]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104721; File No. SR-CBOE-2026-008]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt
Rule 8.23
January 28, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 20, 2026, Cboe Exchange, Inc. (``Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission
(``Commission'') the
[[Page 4646]]
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to codify that certain disruptive order and quote entry and trading
activity is prohibited by Exchange Rules as being inconsistent with
just and equitable principles of trade. The text of the proposed rule
change is provided in Exhibit 5.
The text of the proposed rule change is also available on the
Commission's website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>), the
Exchange's website (<a href="https://www.cboe.com/us/options/regulation/rule_filings/bzx/">https://www.cboe.com/us/options/regulation/rule_filings/bzx/</a>), and at the principal office of the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to adopt Rule 8.23, which would codify that
disruptive order and quote entry and trading activity are prohibited by
the Exchange's Rules and the Securities Exchange Act of 1934, as
amended (the ``Act''), and the rules and regulations thereunder. As a
national securities exchange registered pursuant to Section 6 of the
Act, the Exchange is required to be organized and to have the capacity
to enforce compliance by its members and persons associated with its
members, with the Act, the rules and regulations thereunder, and the
Exchange's Rules.\3\ Further, the Exchange's Rules are required to be
``designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade . . . and, in
general, to protect investors and the public interest.'' \4\ In
fulfilling these requirements, the Exchange has developed a
comprehensive regulatory program that includes automated surveillance
of trading activity. When the Exchange identifies or becomes aware of
disruptive and potentially manipulative or improper order or quote
entry or trading activity, the Exchange investigates the activity and
may determine to commence a disciplinary action against the Trading
Permit Holder(s) involved pursuant to Chapter XIII of the Rules.
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\3\ 15 U.S.C. 73f(b)(1).
\4\ 15 U.S.C. 78f(b)(5).
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Various Rules currently prohibit disruptive order and quote entry
and trading activity, including:
<bullet> Rule 8.1, which prohibits TPHs from engaging in acts or
practices inconsistent with just and equitable principles of trades;
<bullet> Rule 8.2, which prohibits TPHs from engaging in conduct in
violation of the Act, the rules and regulations thereunder, and
Exchange Rules;
<bullet> Rule 8.6, which prohibits TPHs from engaging in market
manipulation, including effecting or inducing the purchase, sale, or
exercise of any security for the purpose of creating or inducting a
false, misleading, or artificial appearance of activity in such
security or in the underlying security, or for the purpose of unduly or
improperly influencing the market price of such security or of the
underlying security or for the purpose of making a price that does not
reflect the true state of the market in such security or in the
underlying security;
<bullet> Rule 8.10, which prohibits TPHs from misusing material,
nonpublic information;
<bullet> 5.32 and 5.85, which include provisions regarding the
priority of order and quote bids and offers of all TPHs; and
<bullet> 5.9, which imposes order exposure requirements on TPHs.
Further Section 9(a)(1) of the Act provides in relevant part that
it shall be unlawful for any member of a national securities exchange,
for the purpose of creating a false or misleading appearance of active
trading in any security other than a government security, or a false or
misleading appearance with respect to the market for any such security,
(A) to effect any transaction in such security which involves no change
in the beneficial ownership thereof, or (B) to enter an order or orders
for the purchase of such security with the knowledge that an order or
orders of substantially the same size, at substantially the same time,
and at substantially the same price, for the sale of any such security,
has been or will be entered by or for the same or different parties, or
(C) to enter any order or orders for the sale of any such security with
the knowledge that an order or orders of substantially the same size,
at substantially the same time, and at substantially the same price,
for the purchase of such security, has been or will be entered by or
for the same or different parties.\5\ Finally, among other things, the
activity could also result in a violation of Rule 10b-5 under the Act
(which prohibits any act, practice, or course of business which
operates or would operate as a fraud or deceit upon any person, in
connection with the purchase or sale of any security).\6\
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\5\ 15 U.S.C. 78i(a)(1).
\6\ 17 CFR 240.10b-5.
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Ultimately, TPHs (on their own behalf or on behalf of customers)
should be submitting all orders and quotes at any time for the purpose
of executing bona fide transactions or in good faith for legitimate
purposes. The Exchange has identified various activities that may
comprise disruptive order and quote entry or trading activity in
violation of its Rules. As order or quote entry or trading activity not
done for the purpose of executing bona fide transactions or is done for
illegitimate purposes, and thus prohibited by the Act or Exchange Rules
(as set forth above), can take many forms, the Exchange has issued
guidance through Regulatory Circulars to identify examples of when such
behavior is disruptive and thus prohibited by the Act or Exchange Rules
(as set forth above).\7\ While it is the case that various Rules and
the Act currently prohibit disruptive order and quote entry and trading
activity, and other manipulative trading activity, the Exchange
proposes to define more specifically and to codify in its Rules
[[Page 4647]]
what constitutes prohibited activity.\8\ The Exchange believes it would
be beneficial to describe and specify in the Rules what constitutes
prohibited order and quote entry and trading activity to provide TPHs
with additional context for situations in which the Exchange may take
disciplinary action against them for certain activity as being for
illegitimate and non-bona fide purposes. The Exchange believes this may
help TPHs avoid in engaging in such activities or allowing their
clients to engage in such activities, which may thus reduce
manipulative and disruptive activity on the Exchange.
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\7\ See, e.g., Cboe Regulatory Circular 22-014 (September 26,
2022), available at RC22-014 Prearranged Trading and Signaling of
Imminent Orders (<a href="http://cboe.com">cboe.com</a>); and Cboe Regulatory Circular 22-008
(March 18, 2022), available at RC22-008 Quote and Order Messaging--
Prohibited Activity (<a href="http://cboe.com">cboe.com</a>). Other exchanges have similarly
issued notices to their members to specify certain behavior that is
deemed to be considered violations of those exchanges' rules that
(like Exchange Rule 8.1) prohibit acts or practices inconsistent
with just and equitable principles of trading. See, e.g., MIAX
Options Exchange Regulatory Circular 2022-09, MIAX Pearl Options
Exchange Regulatory Circular 2022-09, MIAX Emerald Options Exchange
Regulatory Circular 2022-09, available at
MIAX_Options_RC_2022_09.pdf (<a href="http://miaxglobal.com">miaxglobal.com</a>); and BOX Exchange
Regulatory Circular RC-2022-004 (March 10, 2022), available at RC-
2022-04-Invalid-and-Incomplete-Message-Transmissions.pdf
(<a href="http://boxoptions.com">boxoptions.com</a>).
\8\ The Exchange notes this list is not exhaustive, as activity
not specified may still be deemed disruptive and thus prohibited by
the Act or Exchange Rules, including those set forth above.
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Specifically, proposed Rule 8.23(a) states that TPHs, on their own
behalf or on behalf of customers, must submit all orders and quotes at
any time for the purpose of executing bona fide transactions or in good
faith for legitimate purposes. Non-bona fide or nonlegitimate purposes
include, but are not limited to:
(1) entering an order or quote with the intent, at the time of
entry, to cancel the order or quote before execution or to modify
the order or quote to avoid execution;
(2) entering or causing to be entered an actionable or
nonactionable message(s) with intent to mislead other market
participants;
(3) entering into a transaction or series of transactions,
coupled with an agreement, arrangement, or understanding, directly
or indirectly to reverse such transaction(s), which is not done for
a legitimate economic purpose or is done without subjecting the
transaction to market risk;
(4) entering orders or quotes to signal the arrival of an order
or otherwise to coordinate order flow with another market
participant;
(5) entering or using IOC orders or quotes for purposes other
than to remove resting interest in the Book or the excessive use of
IOC orders or quotes;
(6) entering or causing to be entered an actionable or
nonactionable message(s) with intent to overload or delay the
systems of the Exchange or other market participants, including
dividing an order or quote into multiple messages;
(7) intentionally or recklessly submitting or causing to be
submitted an actionable or nonactionable message(s) that has the
potential to disrupt the systems of the Exchange or other market
participants;
(8) entering or causing to be entered an actionable or
nonactionable message(s) with intent to disrupt, or with reckless
disregard for the adverse impact on, the orderly conduct of trading
or the fair execution of transactions;
(9) engaging in a pattern and practice of submitting
nonactionable messages for the purpose of seeking to reduce latency;
(10) submitting intentionally incomplete, corrupted, or
malformed data; and
(11) engaging in a pattern and practice of preventing any
message from reaching an Exchange gateway application and being
successfully processed.
The activity identified in proposed Rule 8.23(a) as illegitimate or
for non-bona fide purposes is currently prohibited by Exchange
Rules.\9\ The Exchange believes proposed Rule 8.23(a) will provide TPHs
with clear descriptions of examples of disruptive order and quoting
entry and trading activity, which will help them avoid engaging in such
activities or allowing their clients to engage in such activities.
Proposed Rule 8.23(a) is not meant to define all permutations of
prohibited disruptive quote and order entry and trading activity;
however, the Exchange believes it is important to provide TPHs with
specific details regarding prohibited behavior and that these examples
are consistent with activity the Exchange has previously identified as
being disruptive and violations of its Rules.\10\
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\9\ See, e.g., Rules 8.1 and 8.6.
\10\ See, e.g., Cboe Regulatory Circular 22-014 (September 26,
2022), available at RC22-014 Prearranged Trading and Signaling of
Imminent Orders (<a href="http://cboe.com">cboe.com</a>); and Cboe Regulatory Circular 22-008
(March 18, 2022), available at RC22-008 Quote and Order Messaging--
Prohibited Activity (<a href="http://cboe.com">cboe.com</a>).
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Proposed Rule 8.23(b) describes various factors the Exchange may
consider when assessing whether conduct constitutes disruptive or
manipulative activity and thus violates proposed Rule 8.23, which
factors include, but are not limited to:
(1) whether the market participant's intent was to induce others
to trade when they otherwise would not;
(2) whether the market participant's intent was to affect a
price rather than to change the market participant's position;
(3) whether the market participant's intent was to create
misleading market conditions;
(4) the size, number, frequency, and duration of exposure of the
market participant's actionable or nonactionable messages, as
applicable;
(5) the market participant's current and historical order and
quote entry and trading activity on the Exchange and in related
markets;
(6) the impact on other market participants, including others'
orders and quotes, and market prices;
(7) the impact on Exchange systems including the certification
environment;
(8) whether a market participant enters or cancels orders or
quotes during the Queuing Period or Opening Rotation (each as
described in Rule 5.31(a)), or complex orders or quotes prior to or
during the Complex Order Book (``COB'') Opening Process (as
described in Rule 5.33(c)), for the purpose of either manipulating
the expected opening price or attempting to identify the order depth
in the Book or COB, as applicable, at different price levels;
(9) general market conditions; and
(10) industry standards and best practices, including those
related to automated trading systems.
The Exchange believes these factors are consistent with the
prohibited activity described in proposed paragraph (a) that, when
considered in context, supports whether there was requisite intent for
the market participant's conduct, for example, to induce another market
participant to engage in market activity. For example, the volume and
frequency of a specific activity and the resulting impact on Exchange
systems can support a finding of intent to impact latency. However,
high market volatility may cause market participants to modify their
behavior for legitimate purposes.\11\
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\11\ This does not mean that all activity during periods of high
market volatility is legitimate; rather, the Exchange, when
reviewing a market participant's activity, will consider whether
volatility may have caused the market participant to engage in such
activity to address those market conditions rather than to engage in
disruptive activity.
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Proposed Rule 8.23(c) provides that, absent other factors or
circumstances, the following activities do not constitute a violation
of Rule 8.23:
(1) modification or cancellation of an order or quote initially
entered with the intent to execute a bona fide transaction in
response to market changes;
(2) unintentional or accidental submission of an order or quote;
(3) making a two-sided market with unequal quantities;
(4) submission of orders or quotes during the Queuing Period or
Opening Rotation (each as described in Rule 5.31(a)), or complex
orders or quotes prior to or during the COB Opening Process (as
described in Rule 5.33(c)), for the purpose of executing bona fide
transactions upon the opening of the market;
(5) entering orders or quotes at various price levels throughout
the Book or COB, as applicable, to gain priority position and
subsequently canceling those orders or quotes in response to market
changes; and
(6) submitting orders, quotes, and messages in test products for
legitimate testing purposes.
Just as the Exchange believes it is beneficial to identify as many
types of specific activity that are prohibited by the Rules, the
Exchange believes it is equally beneficial to identify for TPHs as many
types of activity that do not on their face (absent other factors or
circumstances) constitute illegitimate or non bona fide quoting or
trading activity. The Exchange views the activities described in
proposed paragraph (c) as ones that are for legitimate purposes. For
example, there are many circumstances in which it is a bona fide
activity to modify or cancel
[[Page 4648]]
an order, including to respond to changes in the market or increased
volatility. Additionally, while the Exchange believes market
participants take steps to minimize erroneous submission of orders, the
Exchange understands such errors (including those caused by system
disruptions) occur and do not believe bona fide erroneous activity
rises to the level of illegitimate actors. Further, the Exchange
provides a testing environment in the System so TPHs, for example, can
verify a connection to the System before entering into the production
(i.e., live) environment. The Exchange notes the activities listed in
proposed paragraph (c), combined with other facts and circumstances,
may rise to the level of prohibited activity under proposed paragraph
(a); however, on their face, the activities listed in proposed
paragraph (c) are not prohibited by the proposed rule. The Exchange
believes this may eliminate potential confusion regarding whether
certain activity is permissible under Exchange Rules.
Finally, the Exchange proposes to adopt the following
interpretations and policies to proposed Rule 8.23 to provide TPHs with
additional information to assist them when determining whether certain
activity is disruptive and thus prohibited by Rule 8.23. Specifically:
.01 Execution (full or partial) of an order or quote does not
automatically cause the order or quote to be considered compliant
with the Rule but rather is one factor the Exchange may consider.
.02 For purposes of this Rule, actionable messages are messages
are messages that can be accepted by the Exchange or another party
or lead to the execution of a trade or cancellation of an order or
quote, including order messages and bulk messages. Nonactionable
messages are those messages submitted to the Exchange that relate to
a nonactionable event, including, but are not limited to: (a)
heartbeat messages transmitted to the System; (b) the entry of
orders, quotes, or other messages in test products other than solely
for legitimate testing purposes; and (c) messages that are
incomplete, partial, corrupt, or otherwise unable to be processed by
the Exchange.
.03 The Exchange evaluates whether a market participant intended
to disrupt the orderly conduct of trading or the fair execution of
transactions or demonstrated a reckless disregard for the orderly
conduct of trading or the fair execution of transactions only in the
context of the specific instrument, market conditions, and other
circumstances present at the time in question. Some factors the
Exchange may consider when determining whether there was orderly
conduct or the fair execution of transactions include, but are not
limited to: (a) a rational relationship between consecutive prices;
(b) a strong correlation between price changes and the volume of
trades; (c) levels of volatility that do not dramatically reduce
liquidity; (d) accurate relationships between the price of a
derivative and the underlying financial instrument; (e) reasonable
spreads between contracts for near months and for remote months; and
(f) the impact to other market participants' ability to trade,
engage in price discovery or manage risk. Volatility alone is not
presumptively interpreted as disorderly or disruptive, as market
volatility can be consistent with markets performing their price
discovery function.
.04 Proof of intent is not limited to instances in which a
market participant admits the market participant's state of mind. If
conduct more likely than not was intended to produce a prohibited
disruptive consequence or was reckless, intent may be found. Claims
of ignorance, or lack of knowledge, are not acceptable defenses to
intentional or reckless conduct. The Exchange generally will find
requisite intent if the purpose of the market participant's conduct
was, for example, to induce another market participant to engage in
market activity.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\12\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \13\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable, principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. The Exchange
also believes the proposed rule change is consistent with the Section
6(b)(5) \14\ requirement that the rules of an exchange not be designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers. Further, the Exchange believes the proposed rule change is
consistent with Section 6(b)(1) of the Act,\15\ which provides that the
Exchange be organized and have the capacity to be able to carry out the
purposes of the Act. The Exchange's Rules are required to be ``designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade . . . and, in general, to
protect investors and the public interest.'' \16\
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
\14\ Id.
\15\ 15 U.S.C. 78f(b)(1).
\16\ 15 U.S.C. 78f(b)(5).
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In particular, the Exchange believes the proposed rule change is
designed to prevent fraudulent and manipulative acts and practices and
to promote just and equitable principles of trade, as it provides TPHs
with additional guidance regarding what conduct constitutes specified
prohibited fraudulent and manipulative acts and practices and activity
that is inconsistent with just and equitable principles of trade. As
noted above, various Rules and the Act currently prohibit disruptive
order and quote entry and trading activity, manipulative trading
activity, and conduct that is inconsistent with just and equitable
principles of trade. While it is not possible to identify all behavior
that is disruptive or manipulative, the Exchange believes it is
beneficial to specify as much behavior as practicable that is
disruptive or manipulative. The Exchange believes the proposed rule
change provides TPHs with additional context for situations in which
the Exchange may take disciplinary action against them for certain
activity as being disruptive, and thus manipulative or unjust. The
Exchange believes there is no legitimate purpose for the prohibited
activities set forth in proposed paragraph (a), as they generally
intend to manipulate market prices, evade exposure and on-Exchange
competition, or disrupt the Exchange System. Such activity is
disruptive to the market and other investors and may result in market
manipulation to the detriment of the market and investors, which
activity the Exchange Act requires our rules to be designed to
prevent.\17\
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\17\ 15 U.S.C. 78f(b)(5).
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The Exchange's determination whether certain activity is disruptive
or manipulative is generally based on facts and circumstances.
Therefore, the Exchange believes setting forth not only what
constitutes prohibited activity but also factors the Exchange considers
when determining whether activity is prohibited will ultimately benefit
investors by providing them with further clarity regarding activity
that is and is not permissible. The Exchange believes this may help
TPHs avoid engaging in such activities or allowing their clients to
engage in such activities, which may thus reduce manipulative and
disruptive activity on the Exchange and ultimately protect investors
and the public interest. Similarly, the Exchange believes including
examples of activity that (in the absence of other facts and
circumstances) is not prohibited under
[[Page 4649]]
proposed Rule 8.23 will similarly provide further clarity to investors
regarding what activity they may and may not engage in on the Exchange.
The Exchange also believes the proposed rule change is consistent
with Section 9(a)(1) of the Act, which provides in relevant part that
it shall be unlawful for any member of a national securities exchange,
for the purpose of creating a false or misleading appearance of active
trading in any security other than a government security, or a false or
misleading appearance with respect to the market for any such security,
(A) to effect any transaction in such security which involves no change
in the beneficial ownership thereof, or (B) to enter an order or orders
for the purchase of such security with the knowledge that an order or
orders of substantially the same size, at substantially the same time,
and at substantially the same price, for the sale of any such security,
has been or will be entered by or for the same or different parties, or
(C) to enter any order or orders for the sale of any such security with
the knowledge that an order or orders of substantially the same size,
at substantially the same time, and at substantially the same price,
for the purchase of such security, has been or will be entered by or
for the same or different parties.\18\ Finally, among other things, the
activity could also result in a violation of Rule 10b-5 under the Act
(which prohibits any act, practice, or course of business which
operates or would operate as a fraud or deceit upon any person, in
connection with the purchase or sale of any security).\19\ The Exchange
believes the proposed prohibited activity and factors the Exchange may
consider when determining whether certain conduct constitutes such
prohibited activity is consistent with these requirements under the
Act. For example, identifying activity set forth in proposed
subparagraphs (a)(3) and (4) (as well as the factor listed in proposed
subparagraph (b)(6)) may support an Exchange finding that a market
participant's entry of an order to purchase an option with the
knowledge that another order selling that option will be entered by or
for the same or different parties, as prohibited by Section 9(a)(1)
under the Act. Additionally, the existence of activities as set forth
in proposed subparagraphs (a)(2), (7), and (8) (coupled with factors
listed in proposed subparagraphs (b)(1) through (3)) may support an
Exchange finding that a market participant's activity was intended to
deceive other market participants, as prohibited by Rule 10b-5 under
the Act.
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\18\ 15 U.S.C. 78i(a)(1).
\19\ 17 CFR 240.10b-5.
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If the Exchange believes a TPH has violated proposed Rule 8.23,
such alleged violation will be pursued in accordance with the
Exchange's disciplinary process as set forth in Chapter XIII of the
Rules (as required by Section 6(b)(1) of the Act, which requires the
Exchange to be organized and have the capacity to enforce compliance by
the Exchange's TPHs and persons associated with its TPHs with the Act,
the rules and regulations thereunder, and the rules of the Exchange,
and Section 6(b)(7) of the Act, which requires that the rules of an
exchange ``provide a fair procedure for the disciplining of members and
persons associated with persons... and the prohibition or limitation by
the exchange of any person with respect to access to services offered
by the exchange or a member thereof'').\20\
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\20\ 15 U.S.C. 78f(b)(1) and (7).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act, because it will apply in the
same manner to all TPHs. The Exchange does not believe that the
proposed rule change will impose any burden on intermarket competition
that is not necessary or appropriate in furtherance of the purposes of
the Act, because the prohibition of disruptive quoting and order entry
and trading activity will benefit the market as whole. As noted above,
the Exchange and other exchanges have issued guidance that specifies
certain behavior that is deemed to be considered violations of those
exchanges' rules that (like Exchange Rule 8.1) prohibit acts or
practices inconsistent with just and equitable principles of
trading.\21\
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\21\ See, e.g., Cboe Regulatory Circular 22-014 (September 26,
2022), available at RC22-014 Prearranged Trading and Signaling of
Imminent Orders (<a href="http://cboe.com">cboe.com</a>); and Cboe Regulatory Circular 22-008
(March 18, 2022), available at RC22-008 Quote and Order Messaging--
Prohibited Activity (<a href="http://cboe.com">cboe.com</a>); see also, e.g., MIAX Options
Exchange Regulatory Circular 2022-09, MIAX Pearl Options Exchange
Regulatory Circular 2022-09, MIAX Emerald Options Exchange
Regulatory Circular 2022-09, available at
MIAX_Options_RC_2022_09.pdf (<a href="http://miaxglobal.com">miaxglobal.com</a>); and BOX Exchange
Regulatory Circular RC-2022-004 (March 10, 2022), available at RC-
2022-04-Invalid-and-Incomplete-Message-Transmissions.pdf
(<a href="http://boxoptions.com">boxoptions.com</a>).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) \22\ of the Act and Rule 19b-4(f)(6) \23\ thereunder.
Because the foregoing proposed rule change does not: (i) significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative prior
to 30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \24\ and Rule
19b-4(f)(6) thereunder.\25\
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\22\ 15 U.S.C. 78s(b)(3)(A).
\23\ 17 CFR 240.19b-4(f)(6).
\24\ 15 U.S.C. 78s(b)(3)(A)(iii).
\25\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \26\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\26\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
[[Page 4650]]
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#dba9aeb7bef6b8b4b6b6beb5afa89ba8beb8f5bcb4ad"><span class="__cf_email__" data-cfemail="7a080f161f57191517171f140e093a091f19541d150c">[email protected]</span></a>. Please include
file number SR-CBOE-2026-008 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-CBOE-2026-008. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection.
All submissions should refer to file number SR-CBOE-2026-008 and
should be submitted on or before February 23, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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\27\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-01992 Filed 1-30-26; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on February 2, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.