2025-06514Notice

Exchange Tweaks Rules for Faster Derivative Trading Reports

Published Date: 4/17/2025

Notice

Summary

Cboe BZX Exchange wants to update its rules for Market Makers who trade certain derivative securities. They’re making it easier by changing how these traders report their related accounts and removing a ban on trading in unreported accounts. This affects Market Makers and could speed up trading without extra costs, with changes proposed as of March 31, 2025.

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Remove Ban On Trading Unreported Accounts

The proposal would delete the rule that currently prohibits a registered Market Maker from trading in a Related Instrument Trading Account that has not been reported to the Exchange. That prohibition would be removed from Exchange Rule 14.11 and related Market Maker Restriction Rules.

Market Makers: Report Lists Only On Request

As proposed March 31, 2025, Market Makers registered in certain UTP Derivative Securities or BZX-Listed Derivative Securities would only have to file a current list of Related Instrument Trading Accounts with the Exchange when the Exchange requests it, instead of filing such a list routinely under Exchange Rule 14.11.

Exchange Keeps Records and MNPI Controls

Even after these changes, the Exchange would retain the authority to request any books, records, or other information about Related Instrument Trading Accounts and to require Market Makers to make those materials available. The rules would continue to prohibit Market Makers from using material non-public information in connection with trading Related Instruments.

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Key Dates

Published Date
4/17/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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