Cboe C2 Exchange adopts tiered bid-ask differentials for options
All C2 Options market-makers must apply a $5 bid-ask limit on contracts expiring within 270 days and $15 on longer-dated contracts, effective immediately.
On September 24, 2026, Cboe C2 Exchange, Inc. filed a proposed rule change with the Securities and Exchange Commission (Release No. 34-106560; File No. SR-C2-2026-027) to amend Exchange Rule 5.52 (Market-Maker Quotes). The amendment sets a $5 maximum bid/ask differential for options series expiring in 270 days or less and a $15 maximum for series expiring in more than 270 days. The notice, dated October 1, 2026, invites comment from interested persons.
The change adds a time-to-expiration tier to the existing bid/ask differential requirements. The Exchange's prior filing (SR-C2-2026-022) established a single $5 maximum differential for all options series regardless of expiration. The new tiered structure mirrors Cboe Options Rule 5.52(c) and aligns with practices at ISE and Phlx, which also use expiration-based thresholds.
The Exchange asserts that the amendment is consistent with Section 6(b) of the Securities Exchange Act of 1934 and the related regulatory provisions, and it does not create any undue burden on competition. No written comments were solicited or received on the proposal.
Because the rule change does not significantly affect investor protection, the public interest, or competition, it became effective immediately under Section 19(b)(3)(A)(iii) of the Act and Rule 19b-4(f)(6). The tiered bid/ask differentials now apply uniformly to all Market-Makers on C2 Options.
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