Cboe BZX amends Rule 11.30 to lock Level 3 halt resumption at 4 a.m. ET
The amendment, effective immediately upon filing, applies to Cboe BZX and aligns with upcoming 23-hour trading sessions.
Cboe BZX Exchange, Inc. filed a proposed rule change on September 23, 2026 that amends Rule 11.30(b)(2) of its trading-halt rules. The amendment is intended to preserve the current resumption time of 4:00 a.m. ET or later on the following trading day after a Level 3 market-wide circuit breaker (MWCB) halt, even as the industry moves toward 23-hour, five-day trading sessions.
The proposed text deletes the language that trading "for the remainder of the trading day" would be halted after a Level 3 Market Decline and replaces it with language that explicitly requires a halt "until 4:00 a.m. ET or later on the following trading day." This change prevents an earlier reopening at 9:00 p.m. ET that would otherwise be implied by the introduction of overnight trading sessions running from 9:00 p.m. to 4:00 a.m. ET.
The Exchange states the amendment is consistent with the Securities Exchange Act of 1934, specifically Section 6(b)(5), and reflects coordination with other U.S. equity exchanges and FINRA. The collective decision, reached in meetings with industry representatives, is to retain the 4:00 a.m. ET resumption time to provide a cooling-off period for market participants after extreme price declines.
The notice, released under Release No. 34-106582 and File No. SR-CboeBZX-2026-077, was published in the Federal Register on October 8, 2026. The Commission is soliciting comments, but the proposed rule change is effective immediately upon filing, binding Cboe BZX and its affiliate exchanges that adopt the same amendment.
The amendment does not modify the MWCB mechanism itself; it solely codifies the agreed-upon resumption timing to ensure uniform practice across all self-regulatory organizations as 23/5 trading commences.
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