Notice2026-06044
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified and Superseded by Amendment No. 1, To Amend Functionality Relating to the Processing of Auction Responses
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
March 30, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 60 (Monday, March 30, 2026)</title>
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[Federal Register Volume 91, Number 60 (Monday, March 30, 2026)]
[Notices]
[Pages 15663-15671]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-06044]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105080; File No. SR-CBOE-2025-074]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing of Amendment No. 1 and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified and Superseded by Amendment No. 1, To
Amend Functionality Relating to the Processing of Auction Responses
March 25, 2026.
I. Introduction
On September 30, 2025, Cboe Exchange, Inc. (``Exchange'' or
``Cboe'')
[[Page 15664]]
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934
(``Act'') \2\ and Rule 19b-4 thereunder,\3\ a proposed rule change to
amend the maximum amount of time permitted for processing auction
responses in non-FLEX classes. The proposed rule change was published
for comment in the Federal Register on October 3, 2025.\4\ On November
3, 2025, pursuant to Section 19(b)(2)(A)(ii)(I) of the Act,\5\ the
Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to disapprove the proposed rule
change.\6\ On December 17, 2025, the Commission instituted proceedings
under Section 19(b)(2)(B) of the Act \7\ to determine whether to
approve or disapprove the proposed rule change.\8\ On March 18, 2026,
the Exchange submitted Amendment No. 1 to the proposed rule change,
which amended and superseded the proposed rule change in its
entirety.\9\ The Commission has not received any comments on the
proposal. The Commission is publishing this Notice and Order to solicit
comment on Amendment No. 1 in Sections II and III below, which sections
are being published verbatim as filed by the Exchange, and to approve
the proposed rule change, as modified and superseded by Amendment No.
1, on an accelerated basis.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
\4\ See Securities Exchange Act Release No. 104159 (September
30, 2025), 90 FR 48094 (``Notice'').
\5\ See 15 U.S.C. 78s(b)(2)(A)(ii)(I).
\6\ See Securities Exchange Act Release No. 104173, 90 FR 51424
(November 17, 2025). The Commission designated January 1, 2026, as
the date by which the Commission shall approve or disapprove, or
institute proceedings to determine whether to disapprove, the
proposed rule change.
\7\ 15 U.S.C. 78s(b)(2)(B).
\8\ See Securities Exchange Act Release No. 104440, 90 FR 59928
(December 22, 2025) (``OIP''). The Commission designated April 1,
2026, as the date by which the Commission shall approve or
disapprove the proposed rule change.
\9\ Amendment No. 1 to the proposed rule change is available at:
<a href="https://www.sec.gov/rules-regulations/public-comments/sr-cboe-2025-074">https://www.sec.gov/rules-regulations/public-comments/sr-cboe-2025-074</a>.
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II. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its functionality relating to the
processing of auction responses. The Exchange initially submitted this
rule filing SR-CBOE-2025-074 to the Securities and Exchange Commission
(the ``Commission'') on September 30, 2025 (the ``Initial Rule
Filing''). This Amendment No. 1 supersedes the Initial Rule Filing and
replaces it in its entirety. This Amendment No. 1 provides additional
support for the proposal and makes minor changes to the rule text \10\
but makes no substantive changes to the proposal. 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.
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\10\ Specifically, this Amendment No. 1 moved the term ``non-
FLEX'' to directly before the phrase ``auction mechanisms'' for
grammatical purposes, but this did not change the substance of the
proposal, which was to exclude FLEX auctions from the auction
response processing time period. Additionally, this Amendment No. 1
moved the word ``and'' from before Solicitation Auction Mechanism
(``SAM'') to before Complex SAM (``C-SAM''), as C-SAM is the last
item in the list.
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III. 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 V 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 currently offers a variety of auction mechanisms which
provide price improvement opportunities for eligible orders.
Particularly, the Exchange offers the following auction mechanisms:
Complex Order Auction (``COA''),\11\ Step Up Mechanism (``SUM''),\12\
Automated Improvement Mechanism (``AIM''),\13\ Complex AIM (``C-
AIM''),\14\ Solicitation Auction Mechanism (``SAM''),\15\ Complex SAM
(``C-SAM''),\16\ FLEX Auction process,\17\ FLEX AIM,\18\ and FLEX
SAM.\19\ The Exchange notes that eligible orders (``auctioned orders'')
are electronically exposed for an Exchange-determined period
(collectively referred to herein as ``auction response period'') in
accordance with the applicable Exchange Rule, during which time Users
may submit responses (collectively referred to herein as ``auction
responses'' or ``auction response messages'') to an auction message.
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\11\ See Rule 5.33(d).
\12\ See Rule 5.35.
\13\ See Rule 5.37.
\14\ See Rule 5.38.
\15\ See Rule 5.39.
\16\ See Rule 5.40.
\17\ See Rule 5.72(c).
\18\ See Rule 5.73.
\19\ See Rule 5.74.
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By way of background, Trading Permit Holders (``TPHs'') may submit
auction responses via logical port connectivity.\20\ Each logical port
corresponds to a single running order handler application.\21\ Each
order handler application processes the messages it receives from the
connected TPH. This processing includes determining whether the message
contains the required information to enter the System and where to send
that message within the System (i.e., to which matching engine).
Messages are sent from an order handler application to a matching
engine via User Datagram Protocol (``UDP''). The Exchange has multiple
matching engines, each of which controls the book for one or more
classes of options listed for trading on the Exchange. The Exchange may
run multiple matching engine applications on a single server. Once at a
matching engine, the message is received at a server Network Interface
Card (``NIC''), which timestamps each message upon arrival and places
it in a queue. Currently, each matching engine processes all messages
it receives from a single queue from the NIC and prioritizes the
processing of all message traffic, including auction responses, in the
order in which the NIC receives each message (i.e., in time priority).
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\20\ A User connects to the Exchange using a logical port
available through an API, such as the industry-standard FIX or BOE
protocol. Logical ports represent a technical port established by
the Exchange within the Exchange's trading system for the delivery
and/or receipt of trading messages, including orders, cancels, and
auction responses.
\21\ The Exchange has numerous order handlers and uses an
algorithm to determine at random which ports connect to which order
handlers. This algorithm attempts to spread out a single TPH's ports
across order handlers as well as balance the number of ports that
connect to a single order handler.
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Auction response messages wait in the same queue as all other order
and quote message traffic. As such, if an auction response is submitted
at a time where there is a deep queue of other message traffic, such as
mass cancellation messages or other orders and quotes, it is possible
that the auction response may not be ``processed'' by the System in
sufficient
[[Page 15665]]
time (i.e., prior to the end of the auction response period).\22\
Particularly, the queued auction response may not be able to
participate in the applicable auction mechanism because the System had
unprocessed (queued) messages at the time of the auction execution
despite the fact that the User submitted the auction response prior to
the end of the auction response period. Auctioned orders may therefore
be missing out on potential price improvement that may have otherwise
resulted if queued timely auction response(s) were able to participate
in the auction.
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\22\ For example, it takes the Exchange's system approximately
10 microseconds to process a single order/quote or auction response
message and, on average, approximately 190 microseconds to process a
mass cancel message. As such, under the current system, an auction
response that is entered after a mass cancel message is more likely
to be detrimentally delayed as compared to a mass cancel message
that is entered after an auction response (i.e., a 190 microsecond
``wait time'' versus a 10 microsecond ``wait time'').
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To address the issue of missed auction responses, in June 2023, the
Exchange adopted new functionality that applies across all of its
auction mechanisms to increase the likelihood that timely submitted
auction responses may participate in the applicable auction, even
during periods of high message traffic in orders, and thus potentially
provide customers with additional opportunities for price
improvement.\23\ Under this functionality, at the time an auction
response period ends, the System continues to process its inbound queue
for any messages that were received by the System before the end of the
auction period (including auction responses) for up to an Exchange-
determined period of time, not to exceed 100 milliseconds (which the
Exchange may determine on a class-by-class basis which would apply to
all auction mechanisms and which would be announced with reasonable
advanced notice via Exchange Notice). That is, any auction responses
that were in the queue before the conclusion of the auction (as
identified by the NIC timestamp on the message) would be processed as
long as the Exchange-determined time on a class-by-class basis (not to
exceed 100 milliseconds) is not exceeded. Only auction responses
received prior to the execution of the applicable auction are eligible
to be processed for that auction. The applicable auction will execute
once all messages, including auction responses, received before the end
time of the auction response period have been processed or the
Exchange-determined maximum time limit of up to 100 milliseconds has
elapsed, whichever occurs first. This continuation of processing the
queue for an additional amount of time for messages that were received
before the end of the auction allows for auction responses that would
otherwise have been canceled due to the conclusion of the auction
response period to still have an opportunity to participate in the
auction.
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\23\ See Rule 5.25(c); see also Securities Exchange Act Release
No. 97738 (June 15, 2023), 88 FR 40878 (June 22, 2023) (SR-CBOE-
2022-051). This functionality applies to COA, SUM, AIM, SAM, C-AIM,
C-SAM, FLEX Auction Process, FLEX AIM, and FLEX SAM.
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In May 2025, the Exchange increased the permissible maximum length
of this Exchange-determined time period for SPX options.\24\
Specifically, with respect to SPX options, this Exchange-determined
period of time for this continuation of auction response processing
plus the length of the auction response or exposure period, as
applicable,\25\ may not exceed 1000 milliseconds (which the Exchange
announces with reasonable advance notice via Exchange Notice).\26\ The
Exchange increased the additional processing time so that more auction
responses could be executed in SPX auctions, particularly in times of
high message traffic. This increase in processing time is currently in
place until June 30, 2026 \27\ and applies to non-FLEX SPX options
only.
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\24\ See Securities Exchange Act Release No. 102966 (May 1,
2025), 90 FR 19330 (May 7, 2025) (SR-CBOE-2025-031); see also Cboe
Exchange Notice C2025042903, available at <a href="https://www.cboe.com/notices/content/?id=54332">https://www.cboe.com/notices/content/?id=54332</a>.
\25\ Current lengths of auction response and exposure periods
are available at cboe_options_product_configurations.xlsx.
\26\ The auction response processing time is currently set to
900 milliseconds (with auction timers set to 100 milliseconds) for
S&P 500 Index options (``SPX options'').
\27\ The Exchange extended this sunset date from December 31,
2025, to June 30, 2026. See Securities Exchange Act Release No.
104525 (December 30, 2025), 91 FR 303 (January 5, 2026) (SR-CBOE-
2025-095).
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Presently, all classes have the benefit of the additional auction
response processing time following auctions (900 milliseconds for non-
SPX options and 100 milliseconds for all other classes). Therefore,
after TPHs may submit auction responses via logical port connectivity,
as described above, the applicable order handler application for that
logical port processes those messages and sends them to the appropriate
matching engine for the class identified in the auction response. The
NIC at the matching engine then timestamps each message upon arrival
and places it in a queue in time priority. As noted above, auction
response messages wait in the same queue as all other order and quote
message traffic. At the end of an auction response period, the System
continues to process its inbound queue for any messages, including
auction responses, the System received before the end of the auction
period based on the messages' NIC timestamp, for up to 100 milliseconds
(up to 900 milliseconds for non-FLEX SPX options).\28\ In other words,
the System processes any auction responses that were in the queue with
a NIC timestamp earlier than the time of the conclusion during this
additional processing time. The applicable auction will execute once
all messages, including auction responses, with NIC timestamps earlier
than the end time of the auction response period have been processed or
the additional auction response processing time has lapsed, whichever
occurs first. The Exchange has observed the benefits of a longer
auction processing time in non-FLEX SPX option auctions, namely that
nearly all auction responses that are received (based on NIC timestamp)
by the System prior to the end of the application auction have
opportunities to participate in the auction, as opposed to being
canceled (as further discussed below). In other non-FLEX classes, the
Exchange has observed at times (particularly in higher volume classes
and during times of volatility or higher market activity) auction
responses continue to be cancelled, because the System is unable to
process all timely received auction responses before the end of the
auction and 100 milliseconds auction response processing time. The
Exchange believes auctions in these classes would benefit from a longer
auction response processing time in the same way non-FLEX SPX options
have benefitted.
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\28\ As noted above, the auction response processing time is
currently set to 900 milliseconds for SPX options and 100
milliseconds for all other classes. See Cboe Exchange Notices
C2025042903, available at <a href="https://www.cboe.com/notices/content/?id=54332">https://www.cboe.com/notices/content/?id=54332</a>; and C2024111903, available at <a href="https://www.cboe.com/notices/content/?id=51420">https://www.cboe.com/notices/content/?id=51420</a>.
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Therefore, the proposed rule change makes a longer auction response
processing time available to all non-FLEX classes (the proposed
exclusion of FLEX classes is further discussed below) and makes the
longer auction response processing time available to non-FLEX SPX
options on a permanent basis. Specifically, the Exchange proposes to
amend Rule 5.25(c) to provide that the Exchange-determined period of
time \29\ during which the System will, at the conclusion of an auction
response or exposure period, continue to process any messages in its
inbound queue that
[[Page 15666]]
were received by the System before the end of the auction response or
exposure period (as identified by each message's NIC timestamp), plus
the length of the auction response or exposure period, as applicable,
may not exceed 1000 milliseconds. The Exchange believes the proposed
maximum amount of additional time for processing will result in more
auction responses being executed in all non-FLEX classes, particularly
in times of high message traffic.
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\29\ The Exchange may determine this time period on a class-by-
class basis. See Rule 5.25(c).
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Additionally, as noted above, the proposed rule change removes the
applicability of the auction response processing time to FLEX auctions
(i.e., FLEX Auction Process, FLEX AIM, and FLEX SAM). The Exchange
believes the additional processing time is unnecessary for FLEX
auctions given lower liquidity levels in the FLEX market and longer
FLEX auction response periods. As a result, unlike in non-FLEX classes,
the Exchange has not observed missed auction responses in FLEX
auctions.
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.\30\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \31\ 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) \32\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\30\ 15 U.S.C. 78f(b).
\31\ 15 U.S.C. 78f(b)(5).
\32\ Id.
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In particular, the Exchange believes the proposed rule change will
remove impediments to a free and open market, as it will allow the
Exchange's System to potentially process more, if not all, timely
submitted auction responses in all non-FLEX classes (rather than just
non-FLEX SPX options), particularly in times of volatility and high
message traffic, which may ultimately provide further opportunities for
auctioned orders to receive price improvement to the benefit of
investors. The Exchange believes the proposed rule change will continue
to appropriately balance providing investors with timely processing of
their options quote and order messages and providing investors who
submit orders that are auctioned with additional liquidity. Indeed, the
proposed rule change may allow more investors additional opportunities
to receive price improvement through an auction mechanism.
Additionally, because the proposed functionality may provide liquidity
providers that submit auction responses with additional execution
opportunities in auctions, the Exchange believes liquidity providers
may be further encouraged to submit more auction responses, which may
contribute to a deeper, more liquid auction process that provides
investors with additional price improvement opportunities. The Exchange
believes the proposal will continue to allow the Exchange to set each
auction response period or exposure time to an amount of time that
provides TPHs submitting responses with sufficient time to respond to,
compete for, and provide price improvement for orders, but also
continues to provide auctioned orders with improved execution
opportunities and minimal impact on market and execution risk.
The Exchange believes the proposed rule change will result in
increased execution opportunities for liquidity providers that submit
auction responses and enhance the potential for price improvement for
orders submitted to each mechanism to the benefit of investors and
public interest. The proposed rule change will permit the Exchange to
set a longer time period in all non-FLEX classes in which the System
may process auction responses the System receives before the end of an
auction response or exposure period (as identified by each auction
response message's NIC timestamp). The Exchange believes the proposed
increase in maximum time will increase the possibility that timely
submitted auction responses are processed by the Exchange and have an
opportunity for execution in the applicable auction mechanism, even if
there is a deep pending message queue. The Exchange believes the
proposed maximum amount of additional time for processing will permit
the Exchange to respond to times of high message traffic. The Exchange
generally experiences significant increases in volumes and messages
traffic when the market experiences volatility. As a result, the
Exchange has observed deeper pending message queues, which results in
an increased number of timely received auction responses not being
processed as part of the execution at the conclusion of an auction.
Based on these observations, the Exchange believes the proposed maximum
time may increase the number of timely received auction responses that
may execute against an auction order.\33\
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\33\ The Exchange has undertaken various steps to improve the
performance (including to reduce latency) of the matching engine on
which SPX trades. For example, the Exchange made hardware and
software upgrades. See <a href="https://www.cboe.com/notices/content/?id=53830">https://www.cboe.com/notices/content/?id=53830</a>. Additionally, the Exchange adopted an excessive mass
cancel and purge charge to encourage efficient use of network and
system capacity and reduce the incentive for market participants to
engage in excessive mass cancellation and purge activity, which may
create latency and impact other market participants' ability to
receive timely executions. See Securities Exchange Act Release No.
103040 (May 14, 2025), 90 FR 21525 (May 20, 2025) (SR-CBOE-2025-
033). The Exchange regularly evaluates other potential means that
may improve performance and reduce latency for all options.
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The Exchange believes 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, to protect investors and the
public interest because of the adaptability of the auction response
processing time functionality, pursuant to which the System uses only
the additional processing time it needs. This generally relates to the
amount of message activity (and thus the length of the message queue)
at the time of an auction occurs unlike an auction response or exposure
period, which must run in its entirety. For example, if the System is
``caught up'' and processes all auction responses received prior to the
completion of a 100-millisecond auction response period within 50
milliseconds after the end of the auction period, the total processing
time would be 150 milliseconds. The System only uses the portion of the
auction response processing time it needs to process responses
timestamped prior to the end of the auction period. The Exchange
believes this is preferable to extending the auction response or
exposure period, which must run in its entirety. For example, if an
auction response period is extended to 200 milliseconds with no
additional processing time, the total processing time would always be
200 milliseconds regardless of the message queue.
The sunset period permitted the Exchange to evaluate whether a
longer
[[Page 15667]]
auction response processing time would continue to be appropriate in
times of high volatility. For example, in 2025 prior to May 12 (the
date on which the Exchange implemented the longer auction processing
response time for SPX options), the percentage of auction responses in
SPX that were received by the System before the end of the auction
period (i.e., had received a NIC timestamp) but were rejected because
the Exchange could not process them before the end of the auction
response or exposure period, as applicable, plus shorter buffer time,
reached over 20% on several occasions and averaged approximately 7.64%.
Between May 12 and September 5, 2025, this percentage was nearly 0. The
Exchange notes during that time period of having the maximum auction
response processing time be 900 milliseconds, the average length of
that time period used since that time was only about 14 milliseconds.
While this is a relatively small amount of auction response processing
time being used on average, between May 12, 2025 and February 27, 2026,
the maximum 900 milliseconds of auction response processing time was
used on 178 of 214, or 83% of, trading days. This data demonstrates the
benefits of the dynamic nature of the auction response processing time,
as the System uses only the additional processing time based on the
message queue at the time.
For example, suppose an auction begins at 10:00:00:000 a.m. one day
with an auction response period of 100 milliseconds. The auction
response period ends at 10:00:00:100 a.m., but there is a message queue
requiring an additional 14 milliseconds to process all timely received
responses. Therefore, executions for the auction occur at 10:00:00:114
a.m. and consider all timely auction responses, despite the fact that
the maximum response processing time was set to 900 milliseconds. Now
suppose a major news event occurred at 2:00 p.m. that same day, causing
market activity (and the System's message queue) to increase. An
auction is then initiated at 2:30:00:000 p.m. that same day. The
auction response period ends at 2:30:00:100 p.m., but there is a
message queue requiring an additional 824 milliseconds to process all
timely received auction responses. Therefore, executions for the
auction occur at 2:30:00:924 p.m. and consider all timely received
auction responses.\34\
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\34\ For comparison, if the Exchange instead maximized the
auction response period to 1 second, executions for the first
auction would have occurred at 10:00:01 a.m., and executions for the
second auction would have occurred at 2:30:01 p.m.
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Currently, only non-FLEX SPX options have the benefit of having
this longer auction response processing time, while other non-FLEX
classes have the benefit of only an additional 100 milliseconds of
processing time. However, across all classes trading on the Exchange,
between May 12, 2025 and February 27, 2026, the Exchange has observed
that each matching engine has experienced delays in message queues that
have resulted in auctions not being able to process all timely received
(based on NIC timestamp) auction messages within the 100 milliseconds
of additional response processing time at least once per trading day.
In other words, at least once per trading day during that time period,
the System cancelled timely received auction responses because the
System was unable to ``catch up'' in the message queue on each matching
engine within 100 milliseconds after the end of the auction. Therefore,
at least once per trading on each matching engine, auctioned orders
missed potential execution and price opportunities. The Exchange also
observed instances in certain classes when the System needed more than
400 milliseconds to process all timely received auction responses but
could only had 100 milliseconds available under the current Rule.
Pursuant to the proposed rule change, the Exchange could set the
auction response processing time for any non-FLEX class up to 900
milliseconds, which, based on current data, would result in the
processing of all timely received auction responses in all classes.
While no non-FLEX class other than SPX options currently needs 900
milliseconds to process all timely received auction responses, even if
the Exchange set this buffer amount to 900 milliseconds, as described
above, the System would only use the time it needed to catch up, so
there is no harm or impact in providing a maximum of 900 milliseconds
of auction response processing time even if a class only needs 50
milliseconds or 450 milliseconds.\35\ Additionally, applying a longer
auction response processing time can account for changes in volumes and
market activity, as well as times of higher volatility. Options volumes
continue to increase across the industry, and the market can become
volatile at any moment. Therefore, while classes may currently not need
more than 450 milliseconds of additional auction response processing
time, it is possible certain classes may need more time in the future
because volume in the class has significantly increased or volatility
has become more extreme.
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\35\ As demonstrated above, this generally results in auction
executions occurring more quickly than if the Exchange instead
lengthened auction response or exposure times.
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The proposed rule change will result in the System being able to
process timely auction responses if volume increases and volatility
spikes result in longer queue times than those that have occurred to
date without having to reject responses and potentially reduce
execution and price improvement opportunities. This would have no
impact on current trading because any ``excess'' time permitted by the
rule is ultimately unused and executions would occur after an auction
as soon as the System is caught up (it would not need to wait for the
entire maximum auction response processing time to elapse). The
Exchange believes this is preferable to increasing the length of the
auction response or exposure period, as executions after an auction
would always have to wait for the end of that longer auction response
or exposure period to occur. For example, if the Exchange increases the
length of the auction response time to one second, executions would
always occur one second after the initiation of the auction (and
auction responses may still not be concerned if there is queue),
compared to executions occurring after the amount additional processing
time necessary after the conclusion of a shorter auction response or
exposure period. The application of a flexible buffer time as proposed
permits the System to only use the time it needs and permits executions
as timely as possible while still considering all timely received
auction responses. During times of higher market activity, including
when the markets are more volatile, there is generally more message
traffic in general. The longer maximum buffer time may be necessary
during those times, even if less frequent, to account for longer
message queues when those market conditions exist. However, the
majority of the time, the System may only need a small portion of this
buffer time to get caught up, regardless of how long the maximum
auction response processing time is set.
This data demonstrates the effectiveness of the longer auction
response processing time for SPX options. The proposed rule change
would permit the Exchange to retain this longer auction response period
for SPX and thus retain these benefits, as well as extend these
benefits to other classes traded on the Exchange. Given that times of
high volatility are unpredictable, and impact all classes, having the
longer auction response
[[Page 15668]]
processing time available at all times will permit the Exchange to
continue to achieve these results when volatile times do occur.
Additionally, given the continued increase in options volumes across
the industry (and thus all classes), the Exchange believes all classes
could benefit from the additional processing times.
While the proposed increase is significant, the Exchange notes that
the combined maximum length of the auction response or exposure period
plus the auction response processing period is the same length as the
maximum permissible auction response or exposure period for certain
auctions.\36\ Therefore, the Commission has already determined that
letting a executions after a price improvement auction occur up to 1000
milliseconds is consistent with the Act (which would permit the
combined maximum auction response period plus maximum auction response
processing time to be 1000 milliseconds for auctions). Given that the
current length of the non-FLEX auctions is 100 milliseconds (except for
SUM auctions, for which the exposure period is 50 milliseconds), and
the auction response processing time is 100 milliseconds (except for
SPX, for which it is 900 milliseconds pursuant to the current temporary
rule), the proposed rule change would increase the total maximum
processing time (auction response period plus response processing) for
all non-FLEX classes other than SPX by 800 milliseconds (850
milliseconds for SUM auctions) and would keep the maximum processing
time for non-FLEX SPX options the same. The proposed rule change
provides the Exchange with flexibility to increase the number of
auction responses that can participate in an auction without increasing
the length of an auction (and may permit the Exchange to reduce the
length of an auction). While the Exchange may increase the length of
auction response periods to accommodate more auction responses, the
Exchange believes shifting some of the already permissible auction
response or exposure period time to the auction response processing
time that may occur after the conclusion of the auction response or
exposure period better addresses the issue of missed auction responses.
Particularly, the Exchange believes the proposed rule change will
accommodate more auction responses while also mitigating market risk
that may accompany a longer auction period by setting the length of an
auction response period to a timeframe that both allows an adequate
amount of time for TPHs to respond to an auction message and provides
the auctioned order with fast executions.
---------------------------------------------------------------------------
\36\ See Rule 5.33(d)(3), 5.35(b)(1), 5.37(c)(3), and
5.38(c)(3), 5.39(c)(3), and 5.40(c)(3) (which permit the Exchange to
set the length of the COA, SUM, AIM, C-AIM, SAM, and C-SAM exposure
and auction response periods, as applicable, up to one second).
Current lengths of auction response and exposure periods are
available at cboe_options_product_configurations.xlsx.
---------------------------------------------------------------------------
Additionally, the Exchange understands some TPHs choose to submit
auction responses towards the end of an auction response period to
better ensure the response is at a price that the market participant is
willing to trade given the market at the time the auction response
period concludes. For example, from October 1, 2025 through February
28, 2026, nearly one-quarter of AIM responses and approximately 13% of
COA responses were submitted within the last 20 milliseconds of the
applicable auctions, which represent meaningful amounts of liquidity
submitted into these auctions. This is particularly true during times
of higher volatility, which times generally result in higher message
traffic and thus make it more likely these auction responses will not
participate in the auction. As such, extending the auction response or
exposure period in each auction would not prevent auction responses
from continuing to miss the auction notwithstanding being submitted
timely. Therefore, the Exchange believes extending the auction response
processing time is preferable to extending the auction response or
exposure period, which the Exchange believes would not prevent auction
responses from continuing to miss the auction notwithstanding being
submitted timely.
The Exchange believes the proposed increase in maximum auction
response processing time for all options will provide an adequate
amount of time to provide pending auction responses with execution
opportunities in times of high message traffic and will continue to
have a de minimis impact on other message traffic. Even in times of
high message traffic, auction responses continue to represent a small
percentage of volume on the Exchange. Auction responses account for a
small fraction of message traffic submitted to the Exchange. The
Exchange believes the processing of such a small amount of message
traffic, even after the conclusion of an auction response period, would
therefore continue to have de minimis, if any, impact on the processing
of non-auction response messages waiting in the queue, even if that
processing occurs over a longer timeframe. The Exchange also notes that
all messages are currently processed one at a time by the System.
Therefore, the System still needs to ``process'' all pending auction
responses, regardless of whether that processing involves canceling the
pending auction response because it wasn't processed in time to
participate in the auction or actually processing the response to
participate in the auction. Either way, the non-auction response
messages will still have to wait for processing of any pending
responses ahead of it, regardless of the length of the auction response
processing time. Further, updates to prices in the market will still be
processed in the same order, and thus executions of the responses at
the end of the auction response processing time will not trade through
the market at that time. The Exchange notes the proposed rule change
makes no changes to how the auction response processing functionality
will work (or how any auctions work). Additionally, all message traffic
(including auction responses) will continue to be processed in time-
priority. Therefore, the Exchange believes any impact of processing
additional auction responses for inclusion in an auction rather than
cancelling those responses will have minimal impact on message traffic
behind them.
The Exchange continues to believe in the vast majority of cases,
the additional time needed after the conclusion of an auction response
period, if any, to process all pending auction responses will be
shorter than the proposed maximum (and possibly zero). As discussed
above, this is a further benefit of being able to increase the length
of the auction response processing time rather than the length of an
auction response period. To the extent the Exchange determines a lesser
amount of time would be sufficient, the Exchange could implement an
additional amount of time for processing auction responses that is less
than the combined time of 1000 milliseconds, which time would be
announced with reasonable advance notice to market participants via
Exchange Notice.\37\ However, as demonstrated above, there is no impact
if the Exchange designates an amount of processing time that is ``too
long,'' as that extra time just goes unused. Additionally, in practice,
the Exchange generally discusses with market participants potential
changes to the length of auction response or exposure periods and to
the auction response processing timer. Further, given the
[[Page 15669]]
Exchange will provide advanced notice of any change, market
participants may contact the Exchange to discuss any proposed changes.
---------------------------------------------------------------------------
\37\ The Exchange generally gives notice one to two weeks in
advance of implementation for changes such as this; however, shorter
notice may be provided if the Exchange believes it is necessary to
maintain fair and orderly markets.
---------------------------------------------------------------------------
The markets experience periods of high volatility, which generally
results in increased market traffic. The Exchange has observed during
these higher market traffic times an increase in the number of auction
responses not being able to participate in auctions, notwithstanding
being submitted timely within the auction response period, except
recently in SPX given the longer auction processing time during the
current sunset period. This higher traffic generally occurs across all
classes. The Exchange believes permitting an increased auction response
processing time in all classes would better provide market participants
with additional opportunities for price improvements with very little,
if any, impact to non-auction response message traffic, thereby
removing impediments to a free and open market and ultimately
protecting and benefiting investors. Additionally, because the proposed
rule change may provide liquidity providers that submit auction
responses with additional execution opportunities in auctions, the
Exchange believes they may be further encouraged to submit more auction
responses, which may contribute to a deeper, more liquid auction
process that provides investors with additional price improvement
opportunities
Given the current maximum auction response processing time in
classes other than SPX (and if the current higher time applicable to
SPX were to sunset), investors may miss out on opportunities to receive
price improvement through the Exchange's auction mechanisms, even if
such responses were submitted timely but not processed due to the
System being otherwise occupied processing messages in queue ahead of
it. The Exchange, therefore, believes its proposal will make it more
likely that the System processes timely submitted auction responses and
includes them in applicable auctions during periods of high message
traffic, thus providing them with more opportunities to execute against
auctioned orders.
The Exchange does not believe the proposed functionality raises any
novel legal or regulatory issues as the proposed maximum auction
response processing time is significantly shorter than the longest
maximum auction response or exposure period permissible in the
Exchange's Rules.\38\ As discussed above, the proposed rule change
effectively only increases the permissible response processing time by
no more than 850 milliseconds. The Exchange notes the proposed rule
change makes no changes to how the auction response processing
functionality will work (or how any auctions work). Additionally, all
message traffic (including auction responses) will continue to be
processed in time-priority, including market price updates, and thus
the System is designed to prevent trade-throughs. Further, as noted
above, the auction response or exposure period for all non-FLEX
auctions on the Exchange permitted by Rules that have been previously
filed with the Commission as being consistent with the Act may be no
longer than one second. Even if the System uses the maximum buffer
time, that means execution following an auction would occur one second
following the beginning of an auction. Therefore, the proposed rule
change is consistent with the length of time in the Rules that an
auction may occur. The proposed rule change merely shifts some of the
permissible auction response or exposure period time to the auction
response processing time that may occur after the conclusion of the
auction response or exposure period. As described above, the Exchange
believes being able to have more time available as auction response
processing time rather than increased auction response or exposure
period time is beneficial due to the dynamic nature of the auction
response processing time. This is because the Exchange can then set a
shorter auction response or exposure period time, such as 100
milliseconds, and only use additional time when necessary, rather than
for all auctions, which is what occurs if the Exchange were to lengthen
the auction response or exposure period time. The Exchange believes,
therefore, the proposed rule change promotes just and equitable
principles of trade, removes impediments to and perfect the mechanism
of a free and open market and a national market system, and, in
general, to protects investors and the public interest, because it will
provide investors in all non-FLEX classes with additional execution and
price improvement opportunities while processing investors' quote and
order messages in a timely manner.
---------------------------------------------------------------------------
\38\ See Rules 5.33(d)(3), 5.37(c)(3), and 5.38(c)(3) (which
permits the Exchange to set the length of the COA, AIM, and C-AIM,
respectively, auction response periods up to three seconds). Given
that the auction response processing time plus the length of the
auction response or exposure period may not exceed 1000
milliseconds, the maximum auction response processing time will be
significantly less than the maximum auction response time currently
permissible under the Exchange's Rules.
---------------------------------------------------------------------------
The proposed rule change excludes FLEX auctions from the rule that
increases the auction response processing time. The terms of FLEX
options are customized by users, and liquidity providers generally need
additional time to consider these non-standard terms of a FLEX-
auctioned order to price and manage associated risk of the auction
option before submitting a response. This is reflected by the much
longer lengths of FLEX auctions, which may last three seconds to five
minutes,\39\ compared to non-FLEX Auctions (which may last no more than
one second) that are intended to result in nearly instantaneous
matching of auctioned orders and responses. As a result of the
customized nature of the FLEX market, as well as lack of book with
resting quotes that Market-Makers continuously update, there is
generally less liquidity and volume in FLEX options. As a result, FLEX
auctions generally do not receive significant numbers of responses as
can occur in auctions for non-FLEX auctions for options with
standardized terms. Therefore, the Exchange believes additional auction
response processing time is unnecessary for FLEX auctions.
---------------------------------------------------------------------------
\39\ See Rules 5.72(c)(1)(F), 5.73(c)(3), and 5.74(c)(3).
---------------------------------------------------------------------------
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 changes will impose any burden on intramarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act, as the proposed rule change would apply equally to
TPHs that submit auction responses. The proposed rule change would
permit a longer auction response processing time for all non-FLEX
classes on the Exchange (rather than just one as is the case today),
and thus market participants in all classes would be able to benefit
from this increased processing time, including reducing the likelihood
that their auction responses are rejected. Additionally, as noted
above, the Exchange believes the proposed increase in the maximum
auction response processing time will have little to no impact on non-
auction response message traffic and continues to be designed to
prevent trade-throughs given all messages, including market
[[Page 15670]]
price updates, will continue to be processed in time priority. The
Exchange does not believe 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, as the proposed change
affects how the System processes auction responses that may only
participate in auctions that occur 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 written comments on the
proposed rule change.
IV. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change, as modified and superseded by Amendment No. 1 (``Amended
Proposal''), is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\40\ In particular, the Commission finds that the Amended
Proposal is consistent with Section 6(b)(5) of the Act,\41\ which
requires, among other things, that the rules of a national securities
exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, 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.
---------------------------------------------------------------------------
\40\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\41\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
As discussed above, currently, at the conclusion of an auction
response or exposure period, the Exchange-determined period of
additional processing time for timely-received auction messages may not
exceed 100 milliseconds; except that, with respect to non-FLEX SPX
options, this Exchange-determined period of additional processing time
plus the length of the auction response or exposure period, as
applicable, may not exceed 1000 milliseconds (``1000 millisecond
maximum processing time'').\42\ The Amended Proposal would apply to all
non-FLEX classes the 1000 millisecond maximum processing time currently
applicable to non-FLEX SPX options, make the 1000 millisecond maximum
processing time permanent for non-FLEX SPX options, and eliminate
additional auction message processing time for FLEX auctions.\43\
---------------------------------------------------------------------------
\42\ See Rule 5.25. This aspect of auction response processing
for non-FLEX SPX options is set to expire on June 30, 2026. Id. With
auction timers set to 100 milliseconds for non-FLEX auctions (except
for SUM auctions, for which the exposure period is 50 milliseconds),
the 1000 millisecond maximum processing time provides 900
milliseconds of additional auction response processing time after
the auction response or exposure period concludes. See Amendment No.
1, supra note 9, at 7 n. 17, 42-43.
\43\ See proposed Rule 5.25; see also Amendment No. 1, supra
note 9, at 34.
---------------------------------------------------------------------------
In the OIP, the Commission expressed concern that the Initial Rule
Filing did not set forth data directly supporting the proposed increase
in the maximum processing time for non-FLEX classes other than SPX, or
support for the proposed removal of additional auction response
processing times for FLEX auctions.\44\ The Commission believes that
the Amended Proposal addresses these concerns, and is reasonably
designed to remove impediments to and perfect the mechanism of a free
and open market and a national market system.
---------------------------------------------------------------------------
\44\ See OIP, supra note 8, 90 FR at 59930.
---------------------------------------------------------------------------
The Amended Proposal demonstrates that the 100 milliseconds of
additional auction message processing time currently available for non-
FLEX classes other than SPX can be insufficient to allow the Exchange
to process all timely-received auction responses. The Exchange states
that between May 12, 2025 and February 27, 2026, at least once per
trading day, each of its matching engines experienced delays in message
queues that resulted in the Exchange not being able to process all
timely-received auction messages within the 100 milliseconds of
additional response processing time currently available.\45\ As a
result, according to the Exchange, this meant that, at least once per
trading day during that time period, auctioned orders missed potential
execution and price improvement opportunities.\46\ The Exchange also
states that there have been instances in certain classes when it needed
more than 400 milliseconds to process all timely-received auction
responses but only had 100 milliseconds available.\47\
---------------------------------------------------------------------------
\45\ See Amendment No. 1, supra note 9, at 15.
\46\ Id.
\47\ Id.
---------------------------------------------------------------------------
The Commission believes that the Amended Proposal, by applying the
1000 millisecond maximum processing time to all non-FLEX classes, is
reasonably designed to improve the Exchange's ability to process all
timely-received auction responses and provide enhanced opportunities
for executions, potentially with price improvement, through an auction
mechanism. The Commission also believes that it is appropriate and
consistent with the Act for the Exchange to apply to all non-FLEX
classes the same 1000 millisecond maximum processing time that it
currently applies to non-FLEX SPX classes, in light of the Exchange's
experience with non-FLEX SPX classes. In this vein, the Exchange states
that, for a time period before it implemented the 1000 millisecond
maximum processing time for non-FLEX SPX options, the Exchange
cancelled, on average, 7.64% of timely-received auction responses--and
on some occasions over 20% of timely-received auction responses--
because the Exchange could not process them before the end of the then-
applicable maximum processing time period.\48\ But according to the
Exchange, this percentage became nearly zero after the Exchange
implemented the 1000 millisecond maximum processing time for non-FLEX
SPX classes.\49\
---------------------------------------------------------------------------
\48\ Id. at 13.
\49\ Id.
---------------------------------------------------------------------------
In addition, the Commission believes the Amended Proposal is
consistent with the Act insofar as it designed to be tailored to the
Exchange's processing needs, which may vary depending on the amount of
message activity and length of the message queue at the time of an
auction.\50\ As the Exchange has stated, it uses only the portion of
the processing time that it needs to process responses timestamped
prior to the end of the auction period.\51\ In other words, the 1000
millisecond maximum processing time is a ceiling but not a floor, such
that the Exchange will use less than the full 1000 milliseconds of
additional processing time when doing so is conducive to processing all
timely-received auction messages.\52\ While, according to the Exchange,
no non-FLEX class other than SPX currently needs 900 milliseconds to
process all timely-received auction responses, the portion of the 1000
millisecond maximum processing time that is not needed for a particular
auction would go unused and the auction would occur once the Exchange
has processed all timely-received messages.\53\ At the same time, the
1000 millisecond maximum processing time would provide the Exchange
with flexibility to process longer auction message queues than those
experienced to date in non-FLEX classes other than SPX, which could
[[Page 15671]]
occur as a result of increases in volume or volatility.\54\
---------------------------------------------------------------------------
\50\ Id.
\51\ Id.
\52\ The Amended Proposal sets forth examples of this Exchange
behavior. Id. at 13-14.
\53\ Id. at 16.
\54\ Id. at 18.
---------------------------------------------------------------------------
Broadly, the Commission believes that the application of the 1000
millisecond maximum processing time to all non-FLEX classes could
incentivize competition in the Exchange's auctions by increasing the
likelihood of all timely-submitted responses participating in an
execution at the end of an auction, especially during periods of high
message traffic. Increasing the number of competitive responses in an
auction could also increase price improvement opportunities for any
order submitted into an auction. Additionally, all message traffic
(including auction responses) will continue to be processed in time-
priority. The Commission emphasizes that the extension of processing
time is only available to TPHs that have submitted an auction response
within the response period for each auction.
Finally, the Commission believes that the proposed removal of
additional auction response processing times for FLEX auctions is
adequately supported by the Amended Proposal and reasonably designed to
remove impediments to and perfect the mechanism of a free and open
market and a national market system. Specifically, the Amended Proposal
identifies attributes of FLEX options and auctions that demonstrate
that additional processing time for the Exchange's FLEX auctions does
not meaningfully enhance the Exchange's ability to process timely-
submitted FLEX auction messages. These attributes include: (i) FLEX
options have customized terms and liquidity providers generally need
additional time to consider these non-standard terms to price and
manage associated risk of the auction option before submitting a
response; \55\ (ii) there is no book with resting quotes for FLEX
options that market makers continuously update; \56\ (iii) FLEX
auctions are much longer (ranging from three seconds to five minutes)
than non-FLEX auctions; \57\ and (iv) FLEX auctions generally do not
receive a significant number of responses as compared to auctions for
options with standardized terms.\58\
---------------------------------------------------------------------------
\55\ Id. at 24.
\56\ Id.
\57\ Id.
\58\ Id.
---------------------------------------------------------------------------
Accordingly, the Commission finds that the Amended Proposal is
consistent with Section 6(b)(5) of the Act.\59\
---------------------------------------------------------------------------
\59\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
V. Solicitation of Comments on Amendment No. 1 to the Proposed Rule
Change
Interested persons are invited to submit written data, views, and
arguments concerning whether Amendment No. 1 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#e89a9d848dc58b8785858d869c9ba89b8d8bc68f879e"><span class="__cf_email__" data-cfemail="6d1f180108400e0200000803191e2d1e080e430a021b">[email protected]</span></a>. Please include
file number SR-CBOE-2025-074 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-2025-074. 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-2025-074 and should be submitted on
or before April 20, 2026.
VI. Accelerated Approval of the Proposed Rule Change, as Modified and
Superseded by Amendment No. 1
The Commission finds good cause to approve the Amended Proposal
prior to the thirtieth day after the date of publication of notice of
the filing of Amendment No. 1 in the Federal Register. Amendment No. 1
provides additional detail regarding the processing of auction
responses, further justification for the proposal, and additional data
with respect to the time of submission of responses into certain
auctions and the duration of auction response processing periods.
Amendment No. 1 also makes non-substantive changes that update current
rule text and correct grammar. Amendment No. 1, without altering the
purpose of the Initial Rule Filing, strengthens the Initial Rule Filing
by providing additional clarity, support, and data, as explained above
and set forth fully in Sections II and III above.
The Commission therefore finds that Amendment No. 1 raises no novel
regulatory issues that have not previously been subject to comment and
is reasonably 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. Accordingly, the
Commission finds good cause, pursuant to Section 19(b)(2) of the
Act,\60\ to approve the Amended Proposal on an accelerated basis prior
to the 30th day after publication of notice of the filing of Amendment
No. 1 in the Federal Register.
---------------------------------------------------------------------------
\60\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
VII. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\61\ that the proposed rule change (SR-CBOE-2025-074), as modified
and superseded by Amendment No. 1, be, and hereby is, approved on an
accelerated basis.
---------------------------------------------------------------------------
\61\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\62\
---------------------------------------------------------------------------
\62\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-06044 Filed 3-27-26; 8:45 am]
BILLING CODE 8011-01-P
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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.