Notice2026-03334
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make a Number of Technical, Non-Substantive Changes to Its Rulebook
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Published
February 20, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 34 (Friday, February 20, 2026)</title>
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[Federal Register Volume 91, Number 34 (Friday, February 20, 2026)]
[Notices]
[Pages 8287-8290]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03334]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104850; File No. SR-CBOE-2026-018]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Make a
Number of Technical, Non-Substantive Changes to Its Rulebook
February 17, 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 February 10, 2026, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``Commission'') a proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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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 make a number of technical, non-substantive changes to its rulebook.
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 purpose of the proposed rule change is to make a number of
technical, non-substantive changes to the Exchange's rulebook. The
Exchange believes these changes are necessary to provide greater
accuracy and clarity to the rulebook.
First, the Exchange proposes to correct several internal cross-
references. The Exchange proposes to correct an internal cross-
reference contained in Rule 1.10 (Exchange Liability Disclaimers and
Limitations). Specifically, the proposed change corrects the internal
cross-reference within Rule 1.10(f) from Chapter XIX to Chapter 15 of
the Rules.\5\
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\5\ Current Rule 1.10(f) provides, in relevant part, that all
determinations made pursuant to this Rule by the Exchange shall be
final and not subject to appeal under Chapter XIX of the Rules or
otherwise. Chapter XIX is not the correct cross-reference (and in
fact, there is no Chapter XIX in the Rules); rather, Chapter 15
(Hearings and Reviews) should be substituted here.
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The Exchange also proposes to correct an internal cross-reference
contained in Rule 5.33 (Complex Orders). Specifically, the proposed
change corrects the internal cross-reference within Rule 5.33(l)(1)
from Interpretation and Policy .03 of the rule to Interpretation and
Policy .04 of the rule.\6\
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\6\ Current Rule 5.33(l)(1) provides that when a User submits to
the System a stock-option order, it must designate a specific
broker-dealer with which it has entered into a brokerage agreement
pursuant to Interpretation and Policy .03 of this Rule (the
``designated broker-dealer'') to which the Exchange will
electronically communicate the stock component of the stock-option
order on behalf of the User. Interpretation and Policy .03 is not
the correct cross-reference; rather, Interpretation and Policy .04
(Stock-Options Orders) should be substituted here.
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The Exchange proposes to correct internal cross-references
contained in Rule 5.6 (Order Types, Order Instructions, and Times-in-
Force). Specifically, the proposed change corrects the internal cross-
reference within the definition of Match Trade Prevention (MTP)
Modifier set forth in Rule 5.6(c) from Rule 5.6(c) to Rule 5.5(c) \7\
and the internal cross-references within the definitions of MTP Cancel
Newest (``MCN''), MTP Cancel Oldest (``MCO''), and MTP Cancel Both
(``MCB'') set forth in Rule 5.6(c) from Rule 5.6(c) to Rule 5.5(c).\8\
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\7\ The definition of ``Match Trade Prevention (MTP) Modifier''
set forth in current Rule 5.6(c) provides, in relevant part, that
subject to the restrictions set forth in Rule 5.6(c) with respect to
bulk messages submitted through bulk ports, orders may contain
certain MTP modifiers. Rule 5.6(c) is not the correct cross-
reference; rather, Rule 5.5(c) (Ports) should be substituted here.
\8\ The definitions of MCN, MCO, and MCB set forth in current
Rule 5.6(c) (subsections (1), (2), and (4), respectively, within the
definition of ``Match Trade Prevention (MTP) Modifier'') provide, in
relevant part, that Users may designate bulk messages as MCN, MCO,
or MCB, as set forth in Rule 5.5(c). Rule 5.6(c) is not the correct
cross-reference; rather 5.5(c) (Ports) should be substituted here.
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The Exchange proposes to correct an internal cross-reference
contained in Rule 5.91 (Floor Broker Responsibilities). Specifically,
the proposed change corrects the internal cross-reference within Rule
5.91(i) from Rule 8.26 to Rule 8.19.\9\
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\9\ Current Rule 5.91(i) provides that a Floor Broker may not
``stop'' or guarantee an execution on a client's order the Floor
Broker is holding from the Floor Broker's error account because
doing so would be acting as a market-maker in violation of Rule
8.26. Rule 8.26 is not the correct cross-reference (and in fact,
there is no Rule 8.26 in the Rules); rather, Rule 8.19 (Restriction
on Acting as Market-Maker and Floor Broker) should be substituted
here.
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The Exchange proposes to correct internal cross-references
contained in Rule 8.30 (Position Limits). Specifically, the proposed
change corrects the internal cross-reference within Rule 8.30,
Interpretation and Policy .04 (Equity Hedge Exemption) from
subparagraphs (a)(6) and (a)(7) to subparagraphs (a)(7) and (a)(8).
Current Rule 8.30, Interpretation and Policy .04(a) provides, in
relevant part, that hedge transactions and positions established
pursuant to Rule 8.30, Interpretation and Policy .04 (a)(6) and (a)(7)
are subject to a position limit equal to five (5) times the standard
limit established under Rule 8.30, Interpretation and Policy .02. Rule
8.30, Interpretation and Policy .04(a)(6) is not the correct cross-
reference.\10\ A previous filing added subparagraph (a)(5),\11\
resulting in previous subparagraphs (a)(6) and (a)(7) becoming (a)(7)
and (a)(8), but at the time of filing, the Exchange inadvertently
failed to update the references in subparagraph (a). The Exchange now
proposes to correct the internal cross-reference and provide that that
hedge transactions and positions established pursuant to Rule 8.30,
Interpretation and Policy .04 (a)(7) and (a)(8) are subject to a
position limit equal to five (5) times the standard limit established
under Rule 8.30, Interpretation and Policy .02. Further, current Rule
8.30, Interpretation and Policy .04(a) provides, in relevant part, that
the qualified hedging transactions and positions described in
subparagraphs (a)(1) through (a)(5) shall be exempt from established
position limits as prescribed under Rule 8.30, Interpretation and
Policy .02. For the same reason as above, subparagraphs (a)(1) through
(a)(5) are not the correct cross-references.\12\ The Exchange now
proposes to correct the internal cross-reference and provide that the
qualified hedging transactions and positions described in subparagraphs
(a)(1) through (a)(6) shall be exempt from established position limits
as prescribed under Rule 8.30, Interpretation and Policy .02. The
effect of the proposed change is clarification that box spreads,
described in Rule 8.30, Interpretation and Policy .04(a)(6), are exempt
from established position limits as prescribed under Rule 8.30,
Interpretation and Policy .02 (i.e., have no position limits), rather
than a position limit equal to five (5) times the standard limit
established under Rule 8.30, Interpretation and Policy .02, as is
currently implied by virtue of the incorrect cross-reference. For the
avoidance of doubt, no market participants must unwind positions to
comply with this change. Next, the Exchange is proposing to update the
names of two ETFs referenced in Rule 4.5 (Series of Option Contracts
Open for Trading), Interpretation and Policy .07(b) and in Rule 8.30
(Position Limits), Interpretation and Policy .07. Specifically, the
Exchange proposes to update ``PowerShares QQQ Trust'' to ``Invesco QQQ
Trust'' and to update ``The DIAMONDS Trust'' to ``SPDR[supreg] Dow
Jones[supreg] Industrial Average ETF Trust.''
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\10\ See Securities Exchange Act Release No. 51244 (March 20,
2002), 67 FR 14751 (March 27, 2002) (SR-CBOE-00-12).
\11\ See Securities Exchange Act Release No. 51244 (February 23,
2005), 70 FR 10010 (March 1, 2005) (SR-CBOE-2003-30) (note that
since filing SR-CBOE-2003-30, the Exchange re-organized its Rulebook
provisions; as part of this reorganization, previous Rule 4.11
(referenced in SR-SBOE-2003-030) became current Rule 8.30).
\12\ See Securities Exchange Act Release No. 51244 (March 20,
2002), 67 FR 14751 (March 27, 2002) (SR-CBOE-00-12).
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The Exchange also proposes to amend Rule 5.57(c) to clarify
potentially confusing language. Current Rule 5.57(c) states that FLEX
Market-Makers ``do need not'' provide continuous quotes in FLEX
Options. The Exchange proposes to eliminate ``do'' and clearly state
that FLEX Market-Makers need not provide continuous quotes in FLEX
Options.
Next, the Exchange proposes to amend Rule 8.14 (Communications to
the Exchange or the Clearing Corporation). Specifically, the Exchange
proposes to remove the last sentence of the rule, which provides that
violations of Rule 8.14 may be subject to summary fine under Rule
13.15(g)(11). The Exchange previously removed rule violations and
applicable fines related to Rule 8.14 from its Minor Rule Violation
Plan (``MRVP'') set forth in Rule 13.15; \13\ thus, the reference to
Rule 13.15(g)(11) within Rule 8.14 is no longer applicable.
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\13\ See Securities Exchange Act Release No. 92702 (August 18,
2021), 86 FR 47346 (August 24, 2021) (SR-CBOE-2021-045).
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Finally, the Exchange proposes to amend Rule 8.42 (Exercise Limits)
to correct an internal cross-reference and add an additionally relevant
internal cross-reference. Specifically, the Exchange proposes to amend
Rule 8.42(g)(3). Current Rule 8.42(g)(3) provides that, except as
provided in Rule 8.43(d)(3), FLEX Options shall not be taken into
account when calculating exercise limits for Non-FLEX Option contracts.
The proposed change corrects the internal cross-reference within Rule
8.42(g)(3) from Rule 8.43(d)(3) to 8.35(d)(3), which relates to the
aggregation of FLEX positions.\14\
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\14\ Rule 8.43 (Reports Related to Position Limits) is not the
correct cross-reference; rather, Rule 8.35 (Position Limits for FLEX
Options) should be substituted here.
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The Exchange also proposes to add reference within Rule 8.42(g)(3)
to Rule 8.35(c)(1)(B). In 2023, the Exchange amended Rules 4.21 and
8.35 to allow for cash settlement of certain FLEX Equity Options.\15\
As part of that filing, the Exchange added Rule 8.35(c)(1)(B), which
provides that a position in FLEX Equity Options where the underlying
security is an ETF and that is settled in cash pursuant to Rule
4.21(b)(5)(A)(ii) is subject to the position limits set forth in Rule
8.30, and subject to the exercise limits set forth in Rule 8.42. The
rule further states that positions in such cash-settled FLEX Equity
Options shall be aggregated with positions in
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physically settled options on the same underlying ETF for the purpose
of calculating the position limits set forth in Rule 8.30, and the
exercise limits set forth in Rule 8.42. The Exchange inadvertently
failed to update Rule 8.42(g)(3) to add reference to Rule
8.35(c)(1)(B). As such, the Exchange now proposes to add to Rule
8.42(g)(3) a cross-reference to Rule 8.35(c)(1)(B), as the provision
contains relevant language regarding aggregation of positions for
purposes of exercise limits.
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\15\ See Securities Exchange Act Release No. 98044 (August 2,
2023), 88 FR 53548 (August 8, 2023) (SR-CBOE-2023-036).
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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.\16\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \17\ 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. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \18\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\16\ 15 U.S.C. 78f(b).
\17\ 15 U.S.C. 78f(b)(5).
\18\ Id.
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In particular, the Exchange believes that the proposed rule change
will remove impediments to and perfect the mechanism of a free and open
market and a national market system, and in general, will protect
investors and the public interest by correcting errors and inaccuracies
within the rules. Specifically, by correcting inaccurate cross-
references, updating outdated ETF names, clarifying potentially
confusing language, removing obsolete references, and adding an
additionally relevant internal cross-reference, the proposed rule
change is designed to protect investors by making the rulebook more
accurate and adding clarity to the rules, thereby mitigating any
potential investor confusion. The proposed rule change will have no
impact on trading on the Exchange, as all the proposed rule changes are
non-substantive in nature.
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 proposed rule change is
not intended to address competitive issues but rather is concerned
solely with correcting certain errors and adding clarity. The proposed
rule change makes no substantive changes to the rules, and thus will
have no impact on trading on the Exchange.
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 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) of the Act \19\ and Rule 19b-4(f)(6) \20\ thereunder.
Because the 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) of the Act \21\ and Rule 19b-
4(f)(6) \22\ thereunder.
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\19\ 15 U.S.C. 78s(b)(3)(A).
\20\ 17 CFR 240.19b-4(f)(6).
\21\ 15 U.S.C. 78s(b)(3)(A).
\22\ 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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A proposed rule change filed under Rule 19b-4(f)(6) \23\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\24\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. According to the
Exchange, the proposed rule change merely corrects inaccuracies and
errors in the Exchange's rulebook and does not affect the operation of
any Exchange rule, and waiver of the 30-day operative delay would avoid
any potential confusion by providing investors with a clearer, more
accurate rulebook. For the foregoing reasons, the Commission hereby
waives the operative delay and designates the proposed rule change to
be operative upon filing.\25\
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\23\ 17 CFR 240.19b-4(f)(6).
\24\ 17 CFR 240.19b-4(f)(6)(iii).
\25\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of this 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.
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:
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#fc8e899099d19f9391919992888fbc8f999fd29b938a"><span class="__cf_email__" data-cfemail="344641585119575b5959515a4047744751571a535b42">[email protected]</span></a>. Please include
file number SR-CBOE-2026-018 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-2026-018. 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 also 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
[[Page 8290]]
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-2026-018 and should
be submitted on or before March 13, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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\26\ 17 CFR 200.30-3(a)(12) and (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-03334 Filed 2-19-26; 8:45 am]
BILLING CODE 8011-01-P
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