Cboe EDGX adopts tiered bid-ask differentials for options
The rule, effective Sep. 24, 2026, sets a $5 maximum spread for options expiring within 270 days and $15 for longer-dated series for all EDGX market makers.
On September 24, 2026, Cboe EDGX Exchange, Inc. filed a proposed rule change with the SEC (Release No. 34-106561; File No. SR-CboeEDGX-2026-063). The notice, published in the Federal Register Vol. 91, No. 192, pages 63612-63614 on October 1, 2026, announces that the amendment is effective immediately.
The amendment revises Exchange Rule 22.6(c) to impose a $5 maximum bid-ask differential on options series with a time-to-expiration of 270 days or less, and a $15 maximum differential on series expiring in more than 270 days.
The Exchange states the tiered structure mirrors Cboe Options Rule 5.52(c) and aligns with practices at ISE and Phlx, arguing that the narrower $5 spread supports liquidity for near-term options while the wider $15 spread accommodates reduced liquidity and greater pricing uncertainty for long-dated contracts. The filing cites Section 6(b) of the Securities Exchange Act as the statutory basis.
The Exchange reports that it neither solicited nor received written comments on the proposal and believes the change imposes no unnecessary burden on intra- or inter-market competition because the same differential limits will apply uniformly to all market makers on EDGX Options.
Because the amendment does not significantly affect investor protection, public interest, or competition, it became effective under Section 19(b)(3)(A)(iii) of the Act and Rule 19b-4(f)(6) without the usual 30-day waiting period.
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