Cboe Boosts Deals for Stocks Under a Buck—SEC Watching
Published Date: 6/24/2025
Notice
Summary
Cboe BYX Exchange wants to upgrade its Retail Price Improvement (RPI) program by adding a cooler, enhanced RPI order and letting it work for stocks priced under $1. This change could help everyday investors get better prices when buying or selling these cheaper stocks. The SEC is now reviewing the plan and will decide by June 18, 2025, so keep an eye out for updates!
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
New "Enhanced RPI" order for retail trades
You could see a new order type called an Enhanced RPI Order that lets liquidity providers "step up" their price within a defined Step‑Up Range to offer extra price improvement and gain execution priority to trade with incoming retail orders. The Exchange describes this Enhanced RPI Order as non‑displayed, entered at a limit price plus a Step‑Up Range, and able to obtain priority over same‑side resting orders when certain step‑up conditions are met.
Program expands to stocks under $1.00
The Retail Price Improvement (RPI) Program will be expanded to include securities priced below $1.00; the Program was previously limited to trades at prices equal to or above $1.00. The Exchange will announce when the Program is available for all securities and will no longer issue periodic updates listing included securities.
Retail Orders may use Mid‑Point Peg (IOC required)
Retail Orders may be entered as Mid‑Point Peg Orders, and all Retail Orders (including those entered as Mid‑Point Peg Orders) must use an Immediate or Cancel (IOC) time‑in‑force. The Exchange says the Mid‑Point Peg option lets a Retail Order guarantee price improvement at the NBBO midpoint or better.
Minimum increments and improvement thresholds set
The filing sets precise pricing increments and minimum price‑improvement thresholds: for securities priced at or above $1.00, RPI Orders 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, RPI Orders must be at least $0.0001 better and may be entered in $0.0001 increments. The Exchange also states an Enhanced RPI Order is generally expected to provide at least $0.005 of price improvement to gain priority, though the required minimum can vary between $0.001 and $0.01.
RPI interest cannot execute at or worse than NBBO
RPI Interest (both RPI Orders and Enhanced RPI Orders) is ineligible to execute at prices equal to or inferior to the Protected national best bid or national best offer (Protected NBB/NBO); if an RPI Interest is ineligible to execute for that reason it will remain on the BYX Book and become eligible later if the Protected NBBO moves. The Exchange explicitly states RPI Interest may be entered with a limit price equal to or inferior to the Protected NBBO but cannot execute at those prices.
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!
2026-11810 — Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Fees for Its New Clock Service
Cboe EDGX Exchange just rolled out a new Clock Service that helps users sync their time systems perfectly with the Exchange. Starting May 18, 2026, they’re charging fees for this service but also offering a free trial to get everyone on board. This affects both members and non-members who want precise timing for their trading activities.
2026-11812 — Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Fees for Its New Clock Service
Cboe EDGA Exchange just rolled out a new Clock Service to help traders sync their time systems perfectly. Starting May 18, 2026, users can try it for free, but after that, there will be fees for using this handy tool. This change affects anyone who wants precise timing for trading and keeps things running smoothly.
2026-11809 — Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Fees for Its New Clock Service
Cboe BZX Exchange just rolled out a new Clock Service that helps users sync their time systems with the Exchange’s for better accuracy. Starting May 18, 2026, they’re charging fees for this service but offering a free trial to get everyone started. This affects both members and non-members who want precise timing for their trading activities.
Previous / Next Documents
Previous: 2025-11525 — Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing of Amendment No. 3 to a Proposed Rule Change To Adopt Rules To Govern the Trading of Options on the Exchange for a New Facility Called IEX Options
IEX is planning to launch a new options trading platform called IEX Options and has proposed rules to make it happen. This affects investors and traders who want more ways to buy and sell options, with the SEC reviewing the final details before giving the green light. The process is ongoing, so keep an eye out for updates that could impact how and when you trade options on IEX.
Next: 2025-11527 — Submission for OMB Review; Comment Request
The Department of Agriculture is asking for public feedback on its Agricultural Trade Promotion Program info collection. Farmers, exporters, and businesses involved in trade might need to share some info, but the agency wants to make sure it’s not too much work. Comments are open until July 24, 2025, so jump in if you want to help shape the process!