Cboe Tweaks Special Order Rules Near Market Close
Published Date: 7/22/2025
Notice
Summary
Cboe BZX Exchange is updating its rules to change how certain special orders are priced and when traders can enter, change, or cancel these orders near the market’s closing time. This affects anyone trading BZX-listed stocks, aiming to make closing prices fairer and trading smoother. The changes kick in soon after approval and could impact how traders plan their end-of-day moves.
Analyzed Economic Effects
4 provisions identified: 1 benefits, 2 costs, 1 mixed.
LLOC orders can re-price up and down
Late-Limit-On-Close (LLOC) orders can now have their limit price adjusted both to more aggressive and to less aggressive National Best Bid (NBB) or National Best Offer (NBO) prices, so long as the adjusted price does not exceed the original user-entered limit. If no NBB/NBO is available when the LLOC is received, the LLOC will use its entered limit price; if the NBB/NBO becomes unavailable after prior adjustment, the LLOC will keep its most recent adjusted price.
LLOC entry window and no cancellations
Users, including lead market makers, may submit LLOC orders beginning at 3:55 p.m. ET and up until 4:00 p.m. ET, and once entered an LLOC order may not be modified or cancelled. Previously LLOC orders could not be submitted before 3:59 p.m.
LOC repricing to 3:55 Reference Price
For BZX-listed corporate securities, an LOC order entered between 3:55 p.m. ET and 3:59 p.m. will be accepted at its limit price unless that limit is more aggressive than the 3:55 p.m. Reference Price; if more aggressive, the LOC will be re-priced to the 3:55 p.m. Reference Price. If no Reference Price is available due to lack of liquidity, the LOC keeps its original limit price.
LOC orders cannot be changed near close
Limit-On-Close (LOC) orders may still be entered until 3:59 p.m. ET, but LMMs and other Users cannot modify or cancel any LOC orders between 3:55 p.m. ET and 3:59 p.m., regardless of when the LOC was originally entered.
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