Cboe EDGX deletes information circular requirement for UTP derivatives
The rule change, effective immediately, applies to all Cboe EDGX members trading UTP derivative securities.
On October 9, 2026 Cboe EDGX Exchange, Inc. filed a proposed rule change with the Securities and Exchange Commission under Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4. The filing, identified as Release No. 34-106719; File No. SR-CboeEDGX-2026-068 and FR Doc No: 2026-21744, was announced in a notice published on October 21, 2026 in Volume 91, Number 205 of the Federal Register (pages 67343-67346) and is effective immediately.
The amendment revises Rule 14.1 as follows: it adds express cross-references to Rules 3.7 and 3.21 in Rule 14.1(a); it deletes Rule 14.1(c)(1) in its entirety, removing the Exchange's obligation to distribute an information circular to members before trading each UTP Derivative Security; it amends Rule 14.1(c)(2)(B) to require the written description be provided in a form approved by the listing exchange or prepared by the issuing open-ended management company; it renumbers the existing Rules 14.1(c)(2) through (5) as Rules 14.1(c)(1) through (4); and it makes a conforming amendment to Interpretations and Policies .01 to update the cross-reference from Rule 14.1(c)(3) to Rule 14.1(c)(2). The text of the amendment is available on the Commission's and the Exchange's websites.
The Exchange states the purpose is to eliminate a duplicative circular requirement because the primary listing exchange already provides the same disclosures. Member firms can rely on the listing exchange's circular, while the existing member-level suitability and customer-disclosure obligations under Rules 3.7 and 3.21 continue to apply independently.
The proposed change is asserted to be consistent with the Act, specifically Section 6(b) and the Section 6(b)(5) requirements that exchange rules prevent fraudulent practices, promote equitable trade, and avoid unfair discrimination. The filing references the BZX Exchange's Rule 14.11(j) as a precedent.
The notice solicits comments from interested persons in accordance with the standard procedures for SRO rule changes.
Further reading