2025-14356Notice

SEC Takes Extra Time Reviewing Retail Order Rule Tweaks

Published Date: 7/30/2025

Notice

Summary

Cboe EDGX wants to change its rules so Retail Member Organizations (RMOs) can enter retail orders as principals, but only if they follow new requirements to keep things fair and transparent. The SEC is taking extra time to review this change, which could affect how retail trades happen on the exchange. No money changes yet, but this could shape future trading rules and protections.

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

RMOs May Be Allowed to Act as Principal

On May 21, 2025, EDGX filed a proposed rule change to let a Retail Member Organization (RMO) enter a Retail Order onto the EDGX Exchange in a principal capacity if the RMO satisfies the requirements of proposed Rule 11.21(g). The SEC published the proposal on June 10, 2025, and set September 8, 2025, as the date by which it will act on the proposal.

New Compliance and Documentation Requirements

The proposed Rule 11.21(g) would add requirements that an RMO must meet to enter Retail Orders as principal, and EDGX proposes to amend Rule 11.21(b)(6) to require RMOs to have policies and procedures reasonably designed to ensure compliance with Rule 11.21(g)(1). RMOs would also need to be able to produce documentation evidencing compliance upon the Exchange's request.

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Key Dates

Published Date
Effective Date
7/30/2025
9/8/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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