SEC Approves Cboe BZX Rule Change Allowing Non-Displayed Intermarket Sweep Orders
The amendment applies to Cboe BZX Exchange participants and becomes effective upon the order's filing on August 28, 2026.
On June 5, 2026 Cboe BZX Exchange, Inc. filed a proposed rule change (SR-CboeBZX-2026-053) with the Securities and Exchange Commission pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4. The notice was published for comment on June 23, 2026; the Commission received no comment letters. On July 23, 2026 the Commission designated a longer period to consider disapproval, and on August 28, 2026 the Commission issued an order approving the proposal.
The amendment to Exchange Rule 11.9(d) permits an Intermarket Sweep Order (ISO) to be entered as a Non-Displayed Order and establishes when the System will consider the ISO's limit price available for new orders or for re-pricing of resting orders. Sub-paragraphs (1)-(3) address Regular Trading Hours (9:30 a.m. to 4:00 p.m. ET), Early Trading Session (4:00 a.m. to 8:00 a.m. ET), Pre-Opening Session (8:00 a.m. to 9:30 a.m. ET), and After Hours Trading Session (4:00 p.m. to 8:00 p.m. ET).
The amendment to Exchange Rule 11.9(g)(4) allows Users to elect multiple price sliding for Non-Displayed Orders. A Non-Displayed Order may re-price each time the NBBO changes, receive a new timestamp, and be ranked at a more aggressive price while retaining its original limit price.
The Commission concluded the changes are consistent with the Act and Section 6(b)(5), noting they provide market participants greater flexibility, may increase execution opportunities and liquidity, and align with practices of other national securities exchanges.
Pursuant to Section 19(b)(2) of the Exchange Act, the proposed rule change is hereby approved.
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