Cboe C2 Exchange Rolls Out Wide Market Price Protection
Published Date: 4/24/2026
Notice
Summary
Cboe C2 Exchange is updating its rules to protect traders from getting stuck with really bad prices when the market’s best bid and offer prices are far apart. This new wide market protection kicks in right away to help keep trades fair and avoid surprises. Traders using Cboe C2 should see safer order executions starting now, with no extra costs involved.
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Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
New wide-market drill-through protection
If you submit market, limit, Stop (Stop-Loss), or Stop-Limit orders on Cboe C2 when the National Best Bid and Offer (NBBO) is determined to be "wide," the Exchange will pause the order and display it at a calculated Benchmark Price and then run an iterative drill-through process to seek execution. The NBBO is "wide" when there is no NBO or when the width is equal to or greater than an Exchange-determined class-by-class amount; buffer amounts and Benchmark Price components are set by the Exchange and iterations may rest for Exchange-determined time periods that may not exceed three seconds each.
Market orders in no-bid/no-offer series may enter Book
A sell market order received when the National Best Bid is zero and the National Best Offer is greater than $0.50, or a buy market order received when the National Best Offer is zero, can enter the Book and be displayed at the Benchmark Price as the first drill-through iteration instead of being immediately canceled or rejected. The order then may continue the iterative drill-through process per the Exchange's drill-through rules.
Some order types excluded from protection
The wide market protection will not apply to bulk messages, Intermarket Sweep Orders (ISOs), Immediate-or-Cancel (IOC) orders, and M- and N-capacity orders. The Exchange may also apply the wide market protection on a class-by-class basis.
Protection suspended shortly before RTH close
The wide market protection applies during all trading sessions except for a pre-determined amount of time prior to the close of Regular Trading Hours (RTH), as determined by the Exchange, so that market participants have a final opportunity to use Stop and Stop-Limit orders to exit positions before the close. During that pre-close period the wide market protection will not initiate the drill-through process, though other drill-through protections may still apply.
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