Cboe Boosts Deals on Penny Stocks: Retail Wins Tiny Price Wars
Published Date: 3/20/2025
Notice
Summary
Cboe BYX Exchange is upgrading its Retail Price Improvement (RPI) program by adding a new Enhanced RPI Order and including stocks priced under $1.00. This change helps everyday investors get better prices when buying or selling these cheaper stocks. The update kicks in soon after approval and aims to save money for retail traders by boosting price improvements.
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
New Enhanced RPI Order Type
The Exchange will add an "Enhanced RPI Order" that lets liquidity providers post a limit order with a Step-Up Range so they can "step up" their price to give greater price improvement and gain execution priority against incoming retail orders. The rule says Enhanced RPI Orders generally are expected to provide $0.01 of price improvement to gain priority, but the minimum required improvement may vary between $0.001 and $0.01.
Program Expanded to Sub-$1 Stocks
The Retail Price Improvement program will be expanded to include securities priced below $1.00. For securities below $1.00, RPI and Step-Up Range instructions may be priced in $0.0001 increments and must provide at least $0.0001 of improvement to be eligible to execute.
Minimum Price-Improvement Execution Rules
RPI Orders and Enhanced RPI Orders will be ineligible to execute at prices equal to or worse than the Protected NBB or Protected NBO. For securities priced at or above $1.00, an RPI Order must be at least $0.001 better than the Protected NBB/NBO (and may be entered in $0.001 increments). For securities below $1.00, an RPI Order must be at least $0.0001 better (and may be entered in $0.0001 increments). Orders that are ineligible will remain on the BYX Book and can become eligible later if the Protected NBBO moves.
Midpoint Pegging Allowed for Retail Orders
Retail Orders may now be submitted with an optional Mid-Point Peg instruction and all Retail Orders (including Mid-Point Peg) must use an Immediate-or-Cancel (IOC) time-in-force. The Mid-Point Peg option lets a Retail Order peg to the NBBO midpoint so it can guarantee midpoint or better pricing when interacting with RPI interest.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-10373 — Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222 — Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651 — Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-11919 — Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Exchange's Fee Schedule Concerning Equities Transaction Pricing
MEMX is changing its fees starting June 1, 2026, by lowering some rebates for certain stock trades that add liquidity, especially for hidden and price-improved orders. These updates affect traders and members who use MEMX, meaning they might earn a bit less back on some trades. The goal? Keep things fair and balanced while keeping the exchange running smoothly.
2026-11927 — Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rules 18.7 and 18.9 To Permit an Increase in Position and Exercise Limits for Options on IBIT
MEMX is raising the limits on how many options traders can hold and exercise for the iShares Bitcoin Trust ETF (IBIT). This change affects anyone trading IBIT options and lets them handle bigger positions starting right away. It’s designed to keep MEMX competitive and support growing market interest without any immediate cost impact.
2026-11922 — Self-Regulatory Organizations; Green Impact Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.240 (Trade Reporting and Dissemination of Quotations) To Conform With Amendments to Rules 600 and 603 of Regulation NMS Approved by the Commission That Concern the Reporting and Dissemination of Odd-Lot Information, and an Additional Ministerial Change to Rule 11.220 To Correct a Typographical Error
Green Impact Exchange is updating its trade reporting rules to match new federal rules about sharing odd-lot trade info (small stock orders). They’re also fixing a tiny typo in another rule. These changes take effect right away and help keep trading info clear and accurate for everyone involved.
Previous / Next Documents
Previous: 2025-04659 — Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change Relating to the Risk Parameter Setting and Review Policy and the Risk Management Model Description
ICE Clear Credit LLC wants to update how it sets and reviews risk rules and explains its risk management model better. These changes aim to make clearing trades and contracts smoother and safer for everyone involved. Once approved by the SEC, the new rules will kick in, helping protect the market without changing costs right away.
Next: 2025-04661 — Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing of Amendment No. 1 and Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, Regarding Position and Exercise Limits for Options on the iShares Bitcoin Trust ETF
Nasdaq ISE wants to set new rules for how many options traders can hold and exercise on the iShares Bitcoin Trust ETF, including special flexible options. This affects anyone trading these Bitcoin-related options and could change how much risk traders can take. The SEC is reviewing the updated plan and will decide by April 6, 2025, so keep an eye out for the final call!