Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.1(a)(3) To Describe When Unpriced Orders Are Eligible for Execution and To Amend Rule 11.6(q)(2) To Clarify the Expiration of Day Orders Entered During the Overnight Trading Session or Order Acceptance Queueing Time

Issuing agencies

Full Text

<html>
<head>
<title>Federal Register, Volume 91 Issue 202 (Wednesday, October 21, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 202 (Wednesday, October 21, 2026)]
[Notices]
[Pages 66596-66599]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21481]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106683; File No. SR-CboeEDGX-2026-071]


Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend Rule 11.1(a)(3) To Describe When Unpriced Orders Are Eligible for 
Execution and To Amend Rule 11.6(q)(2) To Clarify the Expiration of Day 
Orders Entered During the Overnight Trading Session or Order Acceptance 
Queueing Time

October 16, 2026.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on October 13, 2026, Cboe EDGX Exchange, Inc. (the ``Exchange'') 
filed with the Securities and Exchange Commission (the ``Commission'') 
the 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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Cboe EDGX Exchange, Inc. (``Cboe EDGX'' or the ``Exchange'') is 
filing with the Securities and Exchange Commission (``Commission'' or 
``SEC'') a proposed rule change to amend Rule 11.1(a)(3) to describe 
when unpriced orders are eligible for execution and to amend Rule 
11.6(q)(2) to clarify the expiration of Day Orders entered during the 
Overnight Trading Session or Order Acceptance Queueing Time. 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

[[Page 66597]]

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/equities/regulation/rule_filings/edgx/">https://www.cboe.com/us/equities/regulation/rule_filings/edgx/</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 amend Rule 11.1(a)(3) to introduce rule 
text to describe when orders that do not contain a limit price are 
eligible for execution. Under current Rule 11.1(a)(1), the Exchange 
does not accept Market Orders,\5\ other than those with a Time-in-Force 
(``TIF'') instruction of Regular Hours Only \6\ or a Stop Price, prior 
to 4:00 a.m. Eastern Time or prior to 7:00 a.m. Eastern Time for orders 
eligible for a 7:00 a.m. Start.\7\
---------------------------------------------------------------------------

    \5\ See Exchange Rule 11.8(a). (A Market Order is an order to 
buy or sell a stated amount of a security that is to be executed at 
the NBBO or better when the order reaches the Exchange. See also 
Exchange Rule 11.8(a)(5), which provides that a Market Order is only 
eligible for execution by the System during the Regular Session.)
    \6\ See Exchange Rule 1.5(y). (``Regular Trading Hours'' means 
``the time between 9:30 a.m. and 4:00 p.m. Eastern Time'').
    \7\ See Exchange Rule 11.1(a)(1).
---------------------------------------------------------------------------

    As part of the Exchange's transition to trading 23 hours per day, 5 
days per week (``23x5 Trading''), the Exchange updated Rule 11.1(a) to 
introduce a new subparagraph (3) titled ``Orders Permitted in Each 
Session.'' \8\ Rule 11.1(a)(3), which is approved but not yet 
effective, states: ``Market Orders, other than those designated with a 
Time-in-Force instruction of Regular Hours Only or those that include a 
Stop Price, will not be accepted by the Exchange prior to Regular 
Trading Hours.'' The intent of this sentence was to prevent Market 
Orders from executing during the Overnight Trading Session \9\ and the 
Pre-Opening Session,\10\ but the text did not expressly prohibit the 
Exchange from accepting Market Orders during Regular Trading Hours and 
executing during the Post-Closing Session,\11\ which experiences 
similar characteristics regarding liquidity and volume as the current 
Early Trading Session.\12\ Now, the Exchange proposes to add an 
additional sentence to the end of Rule 11.1(a)(3) which states: 
``Orders without a limit price will not be eligible for execution 
outside of Regular Trading Hours.'' The addition of this sentence 
eliminates any potential ambiguity about when an order that does not 
contain a limit price will be eligible for execution on the Exchange. 
In addition, this proposed change is substantially similar to limits on 
unpriced orders currently in place on Nasdaq Stock Market LLC 
(``Nasdaq'') and NYSE Arca, Inc. (``NYSE Arca'') and differs only in 
that the Exchange's proposed rule refers to orders without a limit 
price rather than specifically designating market orders or pegged 
orders as other market centers have done in their rule text.\13\
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release No. 34-105206 (May 29, 
2026) 91 FR 33238 (June 3, 2026) (SR-CboeEDGX-2026-019) (Notice of 
Filing of Amendment No. 1 and Order Granting Accelerated Approval of 
a Proposed Rule Change, as Amended by Amendment No. 1, To Extend the 
Exchange's Trading Hours to 23 Hours per Day, Five Days per Week) 
(the ``Original Filing'').
    \9\ See Exchange Rule 1.5(jj) (``Overnight Trading Session'' 
means ``the time between 9:00 p.m. on any night preceding a business 
day, as provided in Rule 11.1(b), and 4:00 a.m. Eastern Time on the 
following calendar day'').
    \10\ See Exchange Rule 1.5(s). (``Pre-Opening Session'' shall 
mean the time between 8:00 a.m. and 9:30 a.m. Eastern Time).
    \11\ See Exchange Rule 1.5(r). (``Post-Closing Session'' shall 
mean the time between 4:00 p.m. and 8:00 p.m. Eastern Time).
    \12\ See Exchange Rule 1.5(jj). (``Early Trading Session'' shall 
mean the time between 4:00 a.m. and 8:00 a.m. Eastern Time.).
    \13\ See, e.g., Securities Exchange Act Release No. 105199 
(April 10, 2026), 91 FR 20222 (April 15, 2026), SR-NASDAQ-2025-109 
(``Nasdaq 23x5 Filing'') at 20223: ``During its current Pre-Market 
and Post-Market trading sessions, Nasdaq offers more limited trading 
functionality that period is subject to different regulation . . . 
Meanwhile, the Exchange does not offer certain order types during 
these trading session, such as unpriced orders and pegged orders.'' 
See also Nasdaq Equity 4, Rule 4703(d) (prohibiting pegged orders 
outside of Regular Market Hours), NYSE Arca Rule 7.34-E(c)(1)(A) 
(prohibiting Market Orders and Pegged Orders from participating in 
the Early Trading Session) and NYSE Arca Rule 7.34-E(c)(3)(A) 
(prohibiting Market Orders and Pegged Orders from participating in 
the Late Trading Session).
---------------------------------------------------------------------------

    The Exchange also proposes to amend Rule 11.6(q)(2) to clarify that 
a Day Order entered during the Order Acceptance Queueing Time \14\ or 
Overnight Trading Session will expire at the end of Regular Trading 
Hours on the same business day to which the Overnight Trading Session 
belongs, as provided in Rule 11.1(b).\15\ This amendment replaces the 
phrase ``following trading day,'' which could be read ambiguously for 
orders entered after midnight during the Overnight Trading Session, 
with language that expressly ties the order's expiration to the 
business day to which the Overnight Trading Session belongs.
---------------------------------------------------------------------------

    \14\ See Exchange Rule 1.5(kk) (``Order Acceptance Queueing 
Time'' means ``8:55 p.m., Eastern Time, when orders may be entered 
into the System on each night that precedes a trading day (as 
specified in Rule 11.1(b))'').
    \15\ See Exchange Rule 11.1(b) (defining ``business day'' as 
``any day the Exchange is open for trading, which includes any 
Monday, Tuesday, Wednesday, Thursday, and Friday, other than a 
holiday'').
---------------------------------------------------------------------------

    The change is consistent with the Exchange's intent as described in 
the Original Filing, which introduced the 23x5 Trading framework and 
explained that ``a trading day is deemed to begin at 9:00 p.m. Eastern 
Time on the preceding calendar day.'' Under Rule 11.1(b), a business 
day includes the Overnight Trading Session on the preceding calendar 
day, meaning the entire Overnight Trading Session (from 9:00 p.m. 
through 4:00 a.m.) belongs to the following business day. The proposed 
amendment merely conforms the Day Order TIF definition to this 
structural principle and does not alter any operational aspect of Day 
Order handling.
    Specifically, current Rule 11.6(q)(2) provides that a Day Order 
entered during the Order Acceptance Queueing Time or the Overnight 
Trading Session ``will expire at the end of Regular Trading Hours on 
the following trading day.'' The Exchange proposes to replace 
``following trading day'' with ``same business day to which the 
Overnight Trading Session belongs, as provided in Rule 11.1(b).'' This 
revision eliminates any potential ambiguity regarding whether an order 
entered after midnight i.e., during the portion of the Overnight 
Trading Session occurring on a new calendar day) could be interpreted 
as expiring on a different business day than intended.
    This proposed rule change will become operative in conjunction with 
the Original Filing. Rules 11.1(a)(3) and 11.6(q)(2) will be amended 
with the approved rule text in the Original Filing, whereby the 
Exchange seeks to offer a new Overnight Trading Session. The amended 
rule text will take effect in December 2026 pending industry readiness. 
Prior to codifying the amended rule text, the Exchange will file a 
proposed rule change pursuant to Section 19(b) of the Exchange Act and 
the rules thereunder to amend its rules confirming that the Exchange is 
able to comply with its obligations under the Exchange Act and the 
rules thereunder

[[Page 66598]]

during the Overnight Trading Session and that the Equity Data Plans 
\16\ are prepared to collect, consolidate, process and disseminate 
quotation and transaction information at all times during the Overnight 
Trading Session.
---------------------------------------------------------------------------

    \16\ See Exchange Rule 1.5(ll) (defining ``Equity Data Plans'' 
as ``the effective national market system plan(s) governing the 
collection, consolidation, processing and dissemination of 
consolidated equity market data via the exclusive securities 
information processors'').
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act \17\ and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act. Specifically, the Exchange believes the proposed rule change is 
consistent with Section 6(b)(5) of the Act,\18\ which requires 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.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes the proposed amendment to Rule 11.1(a)(3) 
promotes just and equitable principles of trade by establishing uniform 
standards for order eligibility with respect to orders without a limit 
price across all trading sessions. The amendment ensures that all Users 
are subject to the same restrictions regarding the execution of 
unpriced orders. By codifying that orders without a limit price will 
not be eligible for execution outside of Regular Trading Hours in the 
Exchange's rules, Users will have confidence in how their orders will 
be handled, which promotes fairness and consistency in the execution 
process.
    Further, the Exchange believes this change removes impediments to 
and perfects the mechanism of a free and open market and protects 
investors and the public interest by clarifying that orders without a 
limit price will not be eligible for execution outside of Regular 
Trading Hours. During extended trading sessions, such as the Overnight 
Trading Session and the Post-Closing Session, market liquidity and 
trading volume are typically lower than during Regular Trading Hours. 
Under these conditions, unpriced orders may experience execution 
quality issues, such as executions at prices that vary significantly 
from the prevailing market price or from investor expectations. By 
limiting the execution of unpriced orders to Regular Trading Hours--
when liquidity is greater and price discovery is more robust--the 
amendment helps ensure that investors receive executions that are more 
consistent with their expectations and enhances the overall integrity 
of the market.
    Additionally, the Exchange believes the proposed amendment to Rule 
11.6(q)(2) removes impediments to and perfects the mechanism of a free 
and open market by eliminating potential ambiguity in the Exchange's 
rules regarding when Day Orders expire in the 23x5 trading environment. 
The amendment promotes just and equitable principles of trade and 
protects investors and the public interest by ensuring that the rule 
text clearly communicates the Exchange's order handling procedures, 
reducing the risk of confusion among market participants regarding 
order lifecycle in the Overnight Trading Session.

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 intramarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The proposed 
amendment to Rule 11.1(a)(3) is not being made for competitive reasons, 
but rather to prohibit the execution of orders that do not contain a 
limit price in trading sessions where liquidity is limited, which was 
partially accomplished by existing rule text that prohibits the 
Exchange from accepting Market Orders prior to Regular Trading Hours. 
Additionally, the restriction on the execution of unpriced orders 
outside of Regular Trading Hours applies equally to all Users in that 
all Users will be subject to the proposed rule.
    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. The proposed 
amendment to Rule 11.1(a)(3) is consistent with the approach taken by 
other national securities exchanges that prohibits the execution of 
unpriced orders during extended trading sessions. Accordingly, the 
proposed rule change does not create any competitive imbalance between 
the Exchange and other trading venues.
    Further, the proposed amendment to Rule 11.6(q)(2) is a non-
substantive clarification that does not alter any operational aspect of 
order handling on the Exchange. The proposed rule change neither 
introduces new requirements for market participants nor modifies the 
competitive dynamics between the Exchange and other trading venues.

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

    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 for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \19\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\20\
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \20\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
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.
---------------------------------------------------------------------------

    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 will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

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

[[Page 66599]]

    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#cbb9bea7aee6a8a4a6a6aea5bfb88bb8aea8e5aca4bd"><span class="__cf_email__" data-cfemail="641611080149070b0909010a1017241701074a030b12">[email&#160;protected]</span></a>. Please include 
file number SR-CboeEDGX-2026-071 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-CboeEDGX-2026-071. 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-CboeEDGX-2026-071 and should be 
submitted on or before November 12, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-21481 Filed 10-20-26; 8:45 am]
BILLING CODE 8011-01-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>