Cboe EDGX adopts $5 bid-ask differential for market-maker quotes

On August 17, 2026, Cboe EDGX Exchange, Inc. filed a proposed rule change with the Securities and Exchange Commission to amend Exchange Rule 22.6 (Market Maker Quotations). The notice, released on August 27, 2026 (Release No. 34-106205; File No. SR-CboeEDGX-2026-054; FR Doc No. 2026-17802), announces that the amendment is immediately effective and applies to every market maker that maintains a two-sided market in an appointed class on the EDGX options platform.

The amendment adds a bid/ask differential requirement to Rule 22.6(c). A market maker's electronic quotes may not exceed a $5 width between the bid and the offer, regardless of the bid price. Compliance is measured at the Options Member firm level by aggregating all quotes entered across the firm's Executing Firm IDs (EFIDs) in a given series. A bid of zero or no bid is treated as a $0 bid for the purpose of the differential calculation.

The rule also provides two exceptions. Under proposed Rule 22.6(c)(1), the Exchange may set a differential wider than $5 for specific series or classes where market conditions warrant it. Proposed Rule 22.6(c)(2) exempts in-the-money series when the national best bid and offer (NBBO) for the underlying security is wider than the $5 limit, allowing the differential to match the underlying NBBO spread.

The Exchange cites Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4, together with Section 6(b)(5) of the Act, as the statutory basis for the change. It argues that the $5 differential promotes "just and equitable principles of trade" and improves market quality by preventing excessively wide quotes that fail to provide meaningful liquidity.

The SEC is publishing this notice to solicit comments from interested persons. The text of the proposed rule change and related statements are available on the SEC's website, the Exchange's website, and at the Exchange's principal office.