Cboe BZX Updates Rules on Hidden Trading Orders
Published Date: 4/17/2026
Notice
Summary
Cboe BZX Exchange just updated its rules to better explain how hidden (non-displayed) orders behave during trading. This change affects traders using these secret orders by making the rules clearer and more transparent, with no extra costs or delays. The new rules took effect immediately on April 8, 2026, so everyone trading on BZX should know what’s new right now!
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Analyzed Economic Effects
5 provisions identified: 3 benefits, 0 costs, 2 mixed.
Clearer Rules for Hidden (Non‑Displayed) Orders
The Exchange amended Rule 11.9(c)(11) and Rule 11.13(a)(4)(C)-(D) to more clearly describe how Non‑Displayed (hidden) orders are handled and to align BZX rule text with its affiliate EDGX. The changes are descriptive only, the Exchange states they do not change current functionality, and they became effective April 8, 2026.
How Hidden Orders Execute on Entry
Under new Rule 11.9(c)(11)(A), a Non‑Displayed Order when entered will execute against previously posted BZX Book orders priced equal to or better than the Non‑Displayed Order up to the full amount of those posted orders, unless doing so would trade through a Protected Quotation. Any portion not executed will be posted to the BZX Book unless the order is Immediate‑or‑Cancel (IOC) or is routable and routed.
Posting, Price‑Slide, and Cancel Rules for Locked/Crossed Orders
The amended Rule 11.9(c)(11)(B) says if a Non‑Displayed limit would lock the BZX Book it will post at the locking price; if it cannot execute due to User instructions (e.g., Post Only or minimum quantity) and lacks a price‑slide instruction it will cancel; if it has a price‑slide instruction it will be ranked at the locking price. If the limit would cross a Protected Quotation, behavior depends on whether the order includes a price‑slide instruction (execute per Rule 11.9(g)(1) or cancel) or not (cancel or route) — as set forth in the rule text.
Priority When Locked Orders Involve User Instructions
The Exchange added text (Rule 11.9(c)(11)(B)(iii)) that, in situations where a resting Non‑Displayed Order is locked by a posted contra‑side order that could not execute due to a User instruction (e.g., Post Only), a later arriving Non‑Displayed order that posts at the locking price may execute with the resting order at the locking price ahead of other non‑displayed orders. The Exchange included an example and states this avoids information leakage from sliding or cancelling orders.
How Resting Orders Execute When a Displayed Order Exists
The Exchange amended Rule 11.13(a)(4)(C)-(D) to clarify that Resting Orders (Non‑Displayed Orders and orders subject to display‑price sliding) will not be executed pursuant to Rule 11.13 at the Locking Price if there is also a displayed order on the opposite side at that Locking Price; instead, if an incoming order is a Market Order (or a Limit Order priced more aggressively than the Locking Price), the Exchange will execute the Resting Order at one‑half minimum price variation less (for bids) or more (for offers) than the Locking Price.
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