Cboe EDGA expands clearly erroneous trade protections to overnight hours

On September 24, 2026, Cboe EDGA Exchange, Inc. filed a non-controversial proposed rule change (Release No. 34-106621; File No. SR-CboeEDGA-2026-031) to amend Rule 11.15, "Clearly Erroneous Executions." The filing was published in the Federal Register on October 7, 2026 (91 FR 64954-64957) and is effective immediately.

The amendment responds to the SEC's August 5, 2026 approval of Overnight Protected Bands for 23/5 trading (Release No. 106042). It adds the definitions "LULD Protected Hours" - covering both Regular Trading Hours and the newly created "Overnight Protected Hours" - and distinguishes "Overnight Price Bands" from the existing LULD Price Bands. The first sentence of Rule 11.15(c)(1) is revised to replace "Regular Trading Hours" with "LULD Protected Hours," extending the rule's exemption from clearly erroneous review to the overnight session.

Rule 11.15(c)(1)(B) is also revised to incorporate the "Overnight Percentage Parameter" defined in Section VIII of the LULD Plan, allowing the same percentage-based test for trades executed during overnight hours. Additional language changes replace references to "transactions occurring during Regular Trading Hours" with "transactions occurring during LULD Protected Hours," thereby covering NMS stocks not subject to the LULD Plan in both regular and overnight periods. Identical substitutions are proposed throughout Rule 11.15(c)(2), (d)(3), and (f).

The Exchange states that the changes are intended to align the clearly erroneous execution review process with the expanded LULD mechanism, providing market participants greater certainty that trades executed within any applicable price band - regular or overnight - will stand. Comments on the proposal are invited pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934.