Cboe EDGX Expands Clearly Erroneous Execution Rules to Overnight Hours
The amendment to Rule 11.15 takes effect immediately, covering trades on EDGX during overnight protected hours under the SEC's 23/5 trading plan.
On September 24, 2026, Cboe EDGX Exchange, Inc. filed a non-controversial proposed rule change (File No. SR-CboeEDGX-2026-064; Release No. 34-106604) to amend Rule 11.15, "Clearly Erroneous Executions." The filing was published in the Federal Register on October 6, 2026 (FR Doc No. 2026-20709, Vol. 91, No. 195, pp. 64727-64730) and is effective immediately.
The proposal responds to the Securities and Exchange Commission's August 5, 2026 approval of Overnight Protected Bands for 23-hour-day, 5-day-week trading. It seeks to align the clearly erroneous execution framework with the newly authorized Overnight Price Bands by extending the definition of "LULD Protected Hours" to include both Regular Trading Hours and the Overnight Protected Hours defined in the LULD Plan.
Key textual changes include replacing the phrase "Regular Trading Hours" with "LULD Protected Hours" in Rule 11.15(c)(1), adding definitions for "LULD Protected Hours," "LULD Price Bands," and "Overnight Price Bands," and revising Rule 11.15(c)(1)(B) to incorporate the "Overnight Percentage Parameter" for trades executed during overnight hours. A non-substantive edit substitutes the term "LULD Plan" for the longer description currently used in Rule 11.15(c)(1)(A).
The amendment also expands the scope of Rule 11.15(c)(2) and related subsections to cover transactions in NMS stocks not subject to the LULD Plan that occur during Overnight Protected Hours, applying the same numerical guidelines as those used for Early Trading, Pre-Opening, and Post-Closing sessions.
The Commission is soliciting comments from interested persons on the proposed changes. Once finalized, the revised rule will bind all market participants executing trades on the Cboe EDGX Exchange during both regular and overnight protected trading periods.
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