Cboe BZX adopts tiered bid-ask differentials for options market makers
All BZX Options market makers must adhere to a $5 differential for contracts ≤270 days to expiration and $15 for longer-dated contracts, effective September 24 2026
On September 24, 2026, Cboe BZX Exchange, Inc. filed with the SEC a proposed amendment to Exchange Rule 22.6 (Market Maker Quotations), as noted in Release No. 34-106562, File No. SR-CboeBZX-2026-078, FR Doc No. 2026-20404.
The amendment adds a time-to-expiration tier to the bid/ask differential requirement in Rule 22.6(c). A maximum differential of $5 will apply to options series expiring in 270 days or less, and a maximum of $15 will apply to series expiring in more than 270 days, mirroring Cboe Options Rule 5.52(c).
The Exchange cites Section 6(b)(5) of the Securities Exchange Act of 1934 as the statutory basis and states that the change promotes just and equitable trade principles without imposing an undue competition burden.
Because the filing does not significantly affect investor protection, impose a significant competition burden, or require a 30-day waiting period, the rule became effective immediately under Section 19(b)(3)(A)(iii) of the Act and Rule 19b-4(f)(6). The Exchange reported that it neither solicited nor received written comments on the proposal.
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