Cboe Pushes for Simpler ETF Listing and Trading Rules
Published Date: 9/2/2025
Notice
Summary
The Cboe BZX Exchange wants to make it easier to list and trade a new type of Exchange-Traded Fund (ETF) by adopting a new rule. This change could speed up how ETFs get approved and traded, affecting investors and fund managers. The SEC is reviewing the proposal and will decide by September 8, 2025, so keep an eye out for updates that might impact your trading options and costs.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 2 costs, 0 mixed.
Class ETF Shares Can Be Listed Generically
The Exchange proposes Rule 14.11(n) to allow Class Exchange-Traded Fund (Class ETF) Shares to be listed and traded on the Exchange without a separate prior Commission approval order or a notice of effectiveness under Section 19(b). If the Class ETF Shares meet the rule and applicable exemptive relief, they would not need a separate Section 19(b) filing before trading can begin.
Delisting Trigger: Fewer Than 50 Holders
Under proposed Rule 14.11(n)(4)(B)(i)(c), after the initial 12-month period from commencement of trading, the Exchange may consider delisting a Class ETF if there are fewer than 50 beneficial holders of the Class ETF Shares for 30 or more consecutive trading days.
Daily NAV and Disclosure Requirement
The Exchange will require issuers to calculate net asset value (NAV) per share daily and make daily portfolio disclosures available to all market participants at the same time; if the NAV or daily portfolio disclosure is not available to all market participants simultaneously, the Exchange may halt trading in the Class ETF Shares until it is available.
Exchange Surveillance, Halts, and Delisting Powers
The Exchange will implement and maintain written surveillance procedures for Class ETF Shares, may employ intraday alerts, can halt trading under Rule 11.18 (circuit breakers) or other conditions, and may suspend trading and commence delisting proceedings under Rule 14.12 if the Class ETF Shares no longer meet listing or regulatory requirements.
Minimum Shares Outstanding at Listing
The Exchange will establish a minimum number of Class ETF Shares required to be outstanding at the time of commencement of trading as a condition for initial listing under proposed Rule 14.11(n)(4)(A)(i).
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