Cboe Enables Anti-Accident Tool for Smarter Auction Order Trading
Published Date: 6/27/2025
Notice
Summary
Cboe Exchange is updating its rules to let traders use a special tool called Match Trade Prevention (MTP) when placing Periodic Auction Orders. This change helps prevent accidental trades between related parties and makes trading smoother and safer. The update was approved quickly and will affect anyone using these auction orders starting soon, with no extra costs involved.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
MTP Now Allowed on Periodic Auctions
If you use BYX Periodic Auction Orders (PAO or PAE), you can now add a Match Trade Prevention (MTP) instruction to those orders. The SEC approved the change on June 24, 2025, and MTP is optional — the Exchange offers it as a supplemental risk tool to help prevent wash sales and self-trades, with Users not required to pay to use it.
MTP May Be Temporarily Bypassed In-Auction
When a Periodic Auction is in progress (Periodic Auction Period is a fixed 100 milliseconds), the Exchange may temporarily bypass or not apply a User's MTP instruction in specific situations so the auction can complete. In some cases an inbound MTP Periodic Auction Order that would be marketable against a resting MTP Periodic Auction Order will be cancelled while the auction is in progress; MTP enforcement resumes after the auction ends.
Minimum Quantity Gets Ignored When Combined With MTP
If you attach both a Minimum Quantity instruction and an MTP instruction to a Periodic Auction Order or Continuous Book Order, the System will ignore the Minimum Quantity instruction when a Periodic Auction is in progress and will apply MTP instead. When no Periodic Auction is in progress, the System will apply MTP per Rule 11.9(f); the filing also states the System can ignore Minimum Quantity on inbound Periodic Auction Orders when applying MTP.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-19260, Rescission of Rule 14a-8's Federal Regulation of Shareholder Proposals and Amendments to Rule 14a-4
The SEC wants to stop its federal rule that controls how shareholders can make proposals at company meetings, letting state laws and company rules take over instead. They’re also changing rules so companies can sometimes vote on proposals not in their official materials—but shareholders can opt out if they want. This affects investors and companies, with comments open until November 20, 2026, and could shake up how shareholder voices are heard and counted.
2026-18424, Political Contributions by Certain Investment Advisers
The Securities and Exchange Commission (the "Commission" or the "SEC") is proposing to rescind the political contribution rule under the Investment Advisers Act of 1940 (the "Advisers Act"), which prohibits investment advisers from providing investment advisory services for compensation to a government client for two years after an adviser or any covered associate of the adviser makes a contribution to certain categories of elected officials or candidates, among other prohibitions. In the more than fifteen years since the rule was adopted, implementation challenges associated with the political contribution rule have resulted in a range of significant unintended consequences, including compliance practices among some investment advisers that may have had the effect of restricting all political contributions by the investment advisers and their employees. Market participants also have stated that the political contribution rule is burdensome, complex, and both lacks clarity and creates a de facto strict liability standard. The Commission is of the view that other existing requirements of the Advisers Act and its associated rules, including prohibitions on fraud, fiduciary duty requirements, the compliance rule, and the code of ethics rule (defined below), are likely sufficient to address pay-to-play practices while allowing an adviser the flexibility to implement an approach that is more appropriately tailored to its particular risks, rendering the political contribution rule unnecessary. The Commission also is proposing to amend the rule under the Advisers Act pertaining to books and records consistent with the proposed rescission.
2026-18190, Transfer Agent Rules
The U.S. Securities and Exchange Commission ("SEC" or "Commission") is proposing to adopt new rules, amend existing rules, amend the existing form for registration with the Commission as a transfer agent (Form TA-1) and the existing form for reporting activities of transfer agents (Form TA-2), and rescind an existing rule governing registered transfer agents. The proposals are designed to modernize the rules governing registered transfer agents.
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
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.
Previous / Next Documents
Previous: 2025-11872, Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7.25 of the Exchange's Compliance Rule To Be Consistent With the Exemptive Relief Granted by the Commission From Certain Provisions Related to Timestamp Granularity
Cboe Exchange is updating one of its rules to match a special permission from the SEC that lets them use less detailed timestamps for trades. This change extends the current exemption from April 2025 to April 2030, giving everyone more time to follow the new timing rules. Traders and firms using Cboe Options will feel the impact, but no extra costs or delays are expected.
Next: 2025-11874, Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 4.10 of the Exchange's Compliance Rule To Be Consistent With the Exemptive Relief Granted by the Commission From Certain Provisions Related to Timestamp Granularity
Cboe BYX Exchange is updating a rule to match a special permission from the SEC that lets them use less detailed timestamps until 2030 instead of 2025. This change affects traders and firms using the Exchange’s systems but won’t cost anyone extra. It’s effective immediately, keeping things smooth and clear for everyone involved.