Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.1(a) To Adopt a Start Time Order Instruction

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<title>Federal Register, Volume 91 Issue 210 (Monday, November 2, 2026)</title>
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[Federal Register Volume 91, Number 210 (Monday, November 2, 2026)]
[Notices]
[Pages 69018-69021]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22262]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106754; File No. SR-CboeBZX-2026-086]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 11.1(a) To Adopt a Start Time Order Instruction

October 28, 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 15, 2026, Cboe BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III 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 BZX Exchange, Inc. (``BZX'' or the ``Exchange'') is filing 
with the Securities and Exchange Commission (``Commission'' or ``SEC'') 
a proposed rule change to amend Rule 11.1(a) to adopt a Start Time 
order instruction, based on the Start Time instruction adopted by its 
affiliated exchange, Cboe EDGX Exchange, Inc. (``EDGX''). 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/equities/regulation/rule_filings/bzx/">https://www.cboe.com/us/equities/regulation/rule_filings/bzx/</a>), and at the principal office of the Exchange.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Rule 11.1(a) to adopt a ``Start 
Time'' order instruction that would permit a User to designate, in 
thirty-minute increments prior to the commencement

[[Page 69019]]

of Regular Trading Hours,\5\ the time at which an order entered prior 
to Regular Trading Hours becomes eligible for execution. The proposed 
rule change is based on EDGX Rule 11.1(a)(2),\6\ but the Exchange is 
proposing to adopt only the Start Time instruction and related 
provisions. The Exchange intends to implement the proposed rule change 
on December 7, 2026, in coordination with the implementation of the 
Start Time instruction on EDGX, so that Members have access to 
consistent order handling functionality across the Cboe-affiliated 
equities exchanges.
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    \5\ See Exchange Rule 1.5(w).
    \6\ See Securities Exchange Act Release No. 105587 (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) 
(``EDGX Approval Order'').
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Current Rule
    Under current Rule 11.1(a), Users may enter orders into the System 
from 2:30 a.m. until 8:00 p.m. Eastern Time (``ET'').\7\ Orders entered 
between 2:30 a.m. and 4:00 a.m. are not eligible for execution until 
the start of the Early Trading Session,\8\ Pre-Opening Session,\9\ or 
Regular Trading Hours, depending on the Time in Force \10\ selected by 
the User. The current rule provides for two fixed start times within 
the Early Trading Session. At the commencement of the Early Trading 
Session, orders entered between 2:30 a.m. and 4:00 a.m. become eligible 
for execution (a ``4:00 a.m. Start''), unless designated as eligible 
for execution during the Early Trading Session beginning at 7:00 a.m. 
(a ``7:00 a.m. Start''). Orders with a 7:00 a.m. Start designation may 
be entered between 2:30 a.m. and 7:00 a.m. At each start time, orders 
are handled in time sequence, beginning with the order with the oldest 
time stamp, and are placed on the BZX Book, routed, cancelled, or 
executed in accordance with the terms of the order.
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    \7\ See Exchange Rule 11.1(a). All times stated herein are in 
ET.
    \8\ See Exchange Rule 1.5(ff).
    \9\ See Exchange Rule 1.5(r).
    \10\ See Exchange Rule 11.9(b).
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    Current Rule 11.1(a) also provides that the Exchange will not 
accept the following orders prior to 7:00 a.m.: BZX Post Only 
Orders,\11\ ISOs,\12\ BZX Market Orders \13\ that are not Stop Orders 
\14\ or Eligible Auction Orders as defined in Rule 11.23(a)(8), Minimum 
Quantity Orders \15\ that also include a Time in Force of Regular Hours 
Only, and all orders with a Time in Force of IOC \16\ or FOK.\17\ The 
rule also contains a sentence providing that, at the commencement of 
the Early Trading Session, orders entered between 6:00 a.m. and 7:00 
a.m. will be handled in time sequence and placed on the BZX Book, 
routed, cancelled, or executed in accordance with their terms. That 
sentence is inconsistent with the current 2:30 a.m. order entry window 
and is superseded by the 4:00 a.m. Start and 7:00 a.m. Start provisions 
described above.
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    \11\ See Exchange Rule 11.9(c)(6).
    \12\ See Exchange Rule 11.9(d).
    \13\ See Exchange Rule 11.9(a)(2).
    \14\ See Exchange Rule 11.9(c)(16).
    \15\ See Exchange Rule 11.9(c)(5).
    \16\ See Exchange Rule 11.9(b)(1).
    \17\ See Exchange Rule 11.9(b)(6).
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Proposed Start Time Instruction
    The Exchange proposes to delete the 4:00 a.m. Start and 7:00 a.m. 
Start designations, together with the superseded sentence relating to 
orders entered between 6:00 a.m. and 7:00 a.m., and to replace them 
with a flexible Start Time instruction. As proposed, in addition to the 
Time in Force, a User may also designate a start time for an order 
(``Start Time''). Start Times may be designated in thirty-minute 
increments and must be set to a time prior to the commencement of 
Regular Trading Hours; Start Times may not be designated during Regular 
Trading Hours. This language is substantively identical to the Start 
Time language in EDGX Rule 11.1(a)(2), which replaced EDGX's 4:00 a.m. 
Start and 7:00 a.m. Start designations with the same flexible and 
uniform framework. Because orders on the Exchange are not eligible for 
execution prior to the commencement of the Early Trading Session at 
4:00 a.m., the earliest Start Time that will have practical effect is 
4:00 a.m., and the latest permissible Start Time is 9:00 a.m.
    The Exchange also proposes to provide that, at the commencement of 
the Early Trading Session and at each Start Time, orders will be 
handled in time sequence, beginning with the order with the oldest time 
stamp, and will be placed on the BZX Book, routed, cancelled, or 
executed in accordance with the terms of the order. This provision is 
consistent with the sequencing provision adopted by EDGX, which 
provides that, at each Start Time, orders will be handled in time 
sequence beginning with the oldest time stamp.\18\ The Exchange 
proposes to retain the reference to the commencement of the Early 
Trading Session so that orders that are entered prior to the Early 
Trading Session without a Start Time designation continue to become 
eligible for execution, in time sequence, at the commencement of the 
Early Trading Session, as they do today.
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    \18\ See EDGX Rule 11.1(a)(2); EDGX Approval Order, supra note 
6.
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    For example, a User may enter an order at 5:15 a.m. with a Start 
Time of 8:00 a.m. That order would be accepted but would not be 
eligible for execution until 8:00 a.m., at which time it would be 
handled in time sequence with all other orders designated with an 8:00 
a.m. Start Time, beginning with the order with the oldest time stamp, 
and would be placed on the BZX Book, routed, cancelled, or executed in 
accordance with its terms.
Order Acceptance Restrictions
    The Exchange proposes to amend the order acceptance restrictions in 
Rule 11.1(a) so that they apply prior to 7:00 a.m. or, if later, prior 
to the order's designated Start Time. The Exchange is not proposing any 
change to the categories of orders subject to these restrictions, which 
will continue to be: BZX Post Only Orders, ISOs, BZX Market Orders that 
are not Stop Orders or Eligible Auction Orders as defined in Rule 
11.23(a)(8), Minimum Quantity Orders that also include a Time in Force 
of Regular Hours Only, and all orders with a Time in Force of IOC or 
FOK. The Exchange is also retaining the existing 7:00 a.m. threshold. 
Under the proposal, an order in one of these categories designated with 
a Start Time later than 7:00 a.m. will not be accepted prior to its 
Start Time. The current restrictions are designed to limit certain 
order types that are not suitable for queueing to the period in which 
an order is eligible for execution and, in the case of the 7:00 a.m. 
Start, already apply until the time at which an order with a 7:00 a.m. 
Start designation becomes eligible for execution. Tying the 
restrictions to an order's designated Start Time applies that same 
rationale to the more flexible Start Time framework. EDGX similarly 
ties the same five categories of restrictions to the period before 
orders become eligible for execution, which on EDGX is the Order 
Acceptance Queueing Time.\19\
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    \19\ See EDGX Rule 11.1(a)(3); EDGX Approval Order, supra note 
6. Because the Exchange does not operate an Overnight Trading 
Session or an Order Acceptance Queueing Time, the Exchange proposes 
to tie the restrictions to the existing 7:00 a.m. threshold and the 
order's designated Start Time.
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    The Exchange is not proposing to change its order entry window, 
which will continue to begin at 2:30 a.m., or the Time in Force 
instructions available to Users. Orders entered prior to the Early 
Trading Session without a Start Time designation will continue to 
become eligible for execution at the start of the Early Trading 
Session, Pre-

[[Page 69020]]

Opening Session, or Regular Trading Hours, depending on the Time in 
Force selected by the User. Use of the Start Time instruction is 
optional.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\20\ Specifically, the Exchange believes the proposed rule change 
is consistent with the Section 6(b)(5) \21\ 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) requirement that the rules of an 
exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \20\ 15 U.S.C. 78f(b).
    \21\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the proposed Start Time instruction removes 
impediments to and perfects the mechanism of a free and open market and 
a national market system because it replaces the fixed 4:00 a.m. Start 
and 7:00 a.m. Start designations with a flexible and uniform framework. 
Under that framework, Members may control the time at which their 
orders become eligible for execution prior to Regular Trading Hours. 
The Commission approved the same Start Time framework for EDGX, which 
replaced EDGX's 4:00 a.m. Start and 7:00 a.m. Start construct.\22\ The 
Start Time instruction provides Members with additional flexibility to 
manage the timing of their order flow in the period before Regular 
Trading Hours. This includes aligning order eligibility with 
anticipated market conditions or with their own trading strategies, 
without requiring Members to manually enter orders at a particular 
time.
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    \22\ See EDGX Approval Order, supra note 6.
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    The Exchange believes the proposed time-sequencing provision 
promotes just and equitable principles of trade and protects investors 
because orders that become eligible at the commencement of the Early 
Trading Session or at a given Start Time will be handled in a 
transparent and objective manner, in time sequence beginning with the 
order with the oldest time stamp. This is the same manner in which 
orders are handled today at the commencement of the Early Trading 
Session and at each of the 4:00 a.m. Start and 7:00 a.m. Start, and it 
is consistent with the sequencing provision approved for EDGX.
    The Exchange believes that tying the existing order acceptance 
restrictions to the later of 7:00 a.m. or the order's designated Start 
Time protects investors and the public interest. The proposal preserves 
the existing categories of restricted orders and the existing 7:00 a.m. 
threshold. It applies those restrictions consistently to orders that 
will not be eligible for execution until a later Start Time, ensuring 
that order types that are not suitable for queueing are not accepted 
before the order may execute. The proposed rule change does not loosen 
any existing restriction.
    The proposed rule change also promotes consistency across the Cboe-
affiliated equities exchanges, which reduces complexity for Members 
that access multiple Cboe-affiliated exchanges and fosters cooperation 
and coordination with persons engaged in facilitating transactions in 
securities. The proposed rule change does not permit unfair 
discrimination because the Start Time instruction will be available to 
all Members on the same terms, and its use is optional.

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 the proposed rule change will impose any burden on intramarket 
competition because the Start Time instruction will be available to all 
Members on an equal and non-discriminatory basis, and its use is 
optional. The Exchange does not believe the proposed rule change will 
impose any burden on intermarket competition because it is based on a 
rule that the Commission approved for EDGX, and it is designed to 
provide Members with consistent order handling functionality across the 
Cboe-affiliated equities exchanges rather than to address any 
competitive issue. Other exchanges are free to adopt similar 
functionality.

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:
    A. significantly affect the protection of investors or the public 
interest;
    B. impose any significant burden on competition; and
    C. 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) of the Act \23\ and 
Rule 19b-4(f)(6) \24\ thereunder. 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.
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    \23\ 15 U.S.C. 78s(b)(3)(A).
    \24\ 17 CFR 240.19b-4(f)(6).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

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#a2d0d7cec78fc1cdcfcfc7ccd6d1e2d1c7c18cc5cdd4"><span class="__cf_email__" data-cfemail="097b7c656c246a6664646c677d7a497a6c6a276e667f">[email&#160;protected]</span></a>. Please include 
file number SR-CboeBZX-2026-086 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-CboeBZX-2026-086. 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

[[Page 69021]]

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-CboeBZX-2026-086 and should be submitted on or 
before November 23, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
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    \25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-22262 Filed 10-30-26; 8:45 am]
BILLING CODE 8011-01-P


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