2026-07489NoticeWallet

Cboe Exchange Tweaks Rules for Invisible Trading Orders

Published Date: 4/17/2026

Notice

Summary

Cboe BYX Exchange is updating its rules to clearly explain how non-displayed orders work—these are orders that don’t show up on the public order book but still affect trading. This change helps traders understand the rules better and keeps the market fair and transparent. The update took effect right away on April 8, 2026, with no extra costs involved.

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Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Execution of Resting Orders in Locked Markets

The Exchange amended Rule 11.13(a)(4)(C)-(D) to state that Resting Orders (Non‑Displayed and orders subject to display‑price sliding) will not be executed at a Locking Price if there is a displayed order on the opposite side at that price. If an incoming order is a Market Order or more aggressive than the Locking Price, the Exchange will execute the Resting Order one‑half minimum price variation away from the Locking Price (one‑half tick).

Non‑Displayed Orders Execute Against Posted Orders

The Exchange’s amended rules say a Non‑Displayed Order will first execute against previously posted orders on the BYX Book that are priced equal to or better than the Non‑Displayed Order, up to the full size of those posted orders. Any remaining size will post to the BYX Book unless the order is Immediate‑or‑Cancel (IOC) or designated to be routed away.

Rules for Locking or Crossing Protected Quotes

The amended rules detail what happens when a Non‑Displayed Order would lock the BYX Book or cross a Protected Quotation: it may be posted at the locking price, cancelled, routed, or executed based on specific user instructions such as price‑slide or Post Only. These behaviors are set out to apply during locked or crossed market scenarios.

Later Orders May Trade Ahead of Locked Resting Orders

The Exchange’s rules state that when a resting Non‑Displayed Order sits at a locking price because it could not execute due to user instructions (for example, Post Only or a minimum quantity), a later arriving order may execute against that resting order at the locking price ahead of other non‑displayed orders. The Exchange explains this is to avoid information leakage that would result from cancelling or sliding the resting order.

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Key Dates

Effective Date
Published Date
4/8/2026
4/17/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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