SEC approves Cboe EDGX rule change to allow non-displayed ISOs and multiple price-sliding
The amendment, filed under Release No. 34-106231 and effective Aug. 28, 2026, binds all Cboe EDGX market participants.
On August 28, 2026, the Securities and Exchange Commission issued an order (Release No. 34-106231; File No. SR-CboeEDGX-2026-045) approving Cboe EDGX Exchange, Inc.'s proposed rule change. The amendment modifies Exchange Rule 11.8(c) to permit an Intermarket Sweep Order (ISO) to be entered as a Non-Displayed Order and to define the price level at which the System will consider the ISO's limit price available for other orders. It also amends Exchange Rule 11.6(l)(3) to allow Non-Displayed Orders to re-price to more aggressive prices through multiple price-sliding.
The proposed Rule 11.8(c) adds subparagraphs (8)(A)-(C). Subparagraph (A) makes the ISO's limit price available for new orders and for re-pricing of resting orders during Regular Trading Hours. Subparagraph (B) excludes availability during the Early Trading, Pre-Opening, and Post-Closing Sessions. Subparagraph (C) provides limited extensions of availability when an ISO remains eligible for execution across sessions. The amendment also clarifies that a Non-Displayed ISO may be entered with a Non-Displayed instruction.
Under the revised Rule 11.6(l)(3), a User may elect for a Non-Displayed Order to re-price each time the NBBO changes, receiving a new timestamp and ranking at a more aggressive price without crossing a protected quotation. The order retains its original limit price regardless of the price at which it is ranked.
The Commission found the changes consistent with the Securities Exchange Act of 1934 and Section 6(b)(5) of the Act, noting that they do not facilitate fraudulent or manipulative practices and promote a free, open market. No comment letters were received during the comment period published June 24, 2026. The Commission concluded that the amendments provide market participants with greater flexibility and may enhance liquidity and price discovery.
The rule change aligns Cboe EDGX with other national securities exchanges that already permit non-displayed ISOs and multiple price-sliding for non-displayed orders, expanding strategic options for Users across market centers.
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