SEC Approves Cboe EDGA Rule Change for Non-Displayed ISOs

The Securities and Exchange Commission issued an order on Aug. 28, 2026 approving Cboe EDGA Exchange, Inc.'s proposed amendment to its rules governing Intermarket Sweep Orders (ISOs). The approval applies to all Members and Sponsored Participants authorized to access the Exchange's System.

The amendment to Exchange Rule 11.8(c) permits an ISO to be entered as a Non-Displayed Order and adds sub-paragraphs (8)(A)-(C) that define when the System will consider the ISO's limit price available for new orders or for resting orders to re-price. Under (A), during Regular Trading Hours (9:30 a.m. to 4:00 p.m. Eastern Time) the limit price is available for new orders. Sub-paragraph (B) excludes the Early Trading Session (4:00 a.m. to 8:00 a.m.), the Pre-Opening Session (8:00 a.m. to 9:30 a.m.) and the Post-Closing Session (4:00 p.m. to 8:00 p.m.) from that availability. Sub-paragraph (C) provides limited extensions of availability when orders remain eligible for execution in subsequent sessions.

The amendment to Exchange Rule 11.6(l)(3) allows Non-Displayed Orders to re-price each time the National Best Bid and Offer changes, receiving a new timestamp and ranking at a more aggressive price while retaining the original limit price. This expands the current single-price sliding mechanism that only re-prices when crossing a protected quotation of an external market.

The Commission found the changes consistent with the Securities Exchange Act of 1934 and its implementing regulations, noting that they offer market participants greater flexibility in executing trading strategies and may enhance liquidity and price discovery. No comment letters were received during the comment period.

The Commission noted that other national securities exchanges already provide the ability to submit ISOs with a Non-Displayed instruction, and the approved rules align Cboe EDGA with those market practices.