Cboe Adds Mysterious 'L' Label to Trading Capacity Rules
Published Date: 1/23/2026
Notice
Summary
Cboe C2 Exchange just added a new label “L” to their rule about “Capacity,” which means they’re updating how they describe certain trading roles. This change affects traders and firms using the Exchange and kicks in right away with no extra costs. It’s a quick tweak to keep things clear and running smoothly!
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
New 'L' Capacity Code Added
Cboe C2 added a new capacity code "L" in Rule 1.1 to mean "For the account of a non-Trading Permit Holder affiliate of a Clearing Trading Permit Holder as defined and for the purposes described in the Cboe C2 Options Fees Schedule." This code lets the Exchange identify orders from those affiliates under that explicit label.
No Fee Schedule Change Required
The Exchange states that adding the "L" code does not require any change to the C2 Options Fees Schedule because non-Trading Permit Holder affiliates are already treated as non-customer, non-Market-Maker capacity. The Exchange will apply fees for these affiliates consistent with the existing fee schedule.
Aligns Codes with Cboe Options
The Exchange said the new "L" designation brings C2 into alignment with Cboe Options and formalizes a capacity code already supported in the Exchange's FIX specification. This alignment is intended to make operations easier for participants that trade on both exchanges.
Rule Became Operative Immediately
The SEC waived the normal 30-day operative delay and designated the C2 rule change operative upon filing. The Exchange filed the proposed rule change on January 5, 2026, and it became effective upon that filing.
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