Cboe EDGX amends Rule 11.13 to redefine clearing agency and tighten overnight guarantees
Members of Cboe EDGX must file separate guarantee letters for overnight trading, effective immediately upon the September 9, 2026 filing
The Cboe EDGX Exchange filed a proposed rule change with the Securities and Exchange Commission on September 9, 2026 (File No. SR-CboeEDGX-2026-061) that becomes effective immediately. The amendment revises Rule 11.13(a) to replace the phrase "registered clearing agency" with the defined term "Qualified Clearing Agency," clarifies that a non-Member may serve as a Clearing Firm, and adds a new requirement for Members seeking participation in the Exchange's Overnight Trading Session.
Under the revised language, all transactions must be cleared and settled through a Qualified Clearing Agency using a continuous net settlement system. The rule also substitutes "Clearing Firm" for "Clearing Member," allowing a non-Member firm to act as a Clearing Firm for a Member's trades. The change does not alter the underlying requirement that clearing be performed by an agency registered under Section 17A of the Act.
The new provision obligates any Member that wishes to trade during the Overnight Trading Session - defined as the period between 9:00 p.m. and 4:00 a.m. Eastern Time - to maintain a separate, effective letter of guarantee or authorization from a Clearing Firm that is authorized by the relevant Qualified Clearing Agency. The Exchange may deny a Member's access to the overnight session if the required letter is not on file.
The Exchange notes that its affiliate equities exchanges - Cboe BYX, Cboe BZX, and Cboe EDGA - plan to submit comparable proposals to further clarify that non-Member firms may clear transactions for Members. The filing references prior approvals for extending trading hours from 16 hours per day, five days per week, to 23 hours per day, five days per week (Securities Exchange Act Release No. 105587, May 29, 2026).
Comments on the proposed rule change must be submitted in accordance with Rule 19b-4. The full text of the proposal is available on the Exchange's website, at the Exchange's Office of the Secretary, and in the Commission's Public Reference Room.
Further reading