Cboe BZX adopts mandatory trading halt rules for corporate actions

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4, Cboe BZX Exchange, Inc. filed a non-controversial proposed rule change on August 28, 2026 (Release No. 34-106323; File No. SR-CboeBZX-2026-071). The filing amends Exchange Rule 11.29, "Trading Halts," to establish specific requirements for halting and resuming trading in securities that are subject to certain issuer-related corporate actions.

The amendment is intended to provide transparency and clarity for securities that the Exchange lists as the Primary Listing Market and that undergo corporate actions such as reverse stock splits. Under the proposed framework, a mandatory regulatory halt would be imposed after the end of the Aft... trading session, with resumption through a Halt Auction as described in Rule 11.23(d). The Exchange cites the forthcoming 23/5 Trading schedule - 23 hours a day, five days a week - with a one-hour pause between 8:00 p.m. and 9:00 p.m. Eastern Time, as the operational context prompting the change.

Cboe BZX notes that other primary listing exchanges have adopted substantially identical halt frameworks for reverse stock splits and related corporate actions. By aligning its rules with those of Nasdaq and NYSE Arca, the Exchange seeks to mitigate the risk of price dislocations, erroneous executions, and operational errors that could arise from processing corporate actions during the reduced non-trading window.

The Commission is publishing this notice in the Federal Register (Vol. 91, No. 177, Sep. 15, 2026, pp. 58507-58513) to solicit comments from interested persons. The proposed rule change is effective immediately upon filing, and the public comment period remains open as prescribed by Rule 19b-4(f)(6).