SEC Delays Decision on Retail Trading Rule Shenanigans
Published Date: 12/8/2025
Notice
Summary
The Cboe EDGX Exchange wants to change its rules so that retail member organizations can enter retail orders as principals, with new requirements to keep things fair and transparent. The SEC is taking extra time to review this change before deciding if it’s a go or no-go. This affects retail traders and could impact how their orders are handled on the exchange.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
Proposal: Firms May Act as Retail Principal
The Exchange proposed to amend Rule 11.21 to allow a Retail Member Organization to enter a Retail Order onto the Exchange in a principal capacity if the requirements of proposed Rule 11.21(g) are satisfied. The SEC is reviewing that proposal and has extended its review period so it will act by February 5, 2026.
New Compliance Steps for Retail Member Firms
The proposed rule would codify new requirements in Rule 11.21(g) and would require Retail Member Organizations to have policies and procedures reasonably designed to ensure compliance with Rule 11.21(g) and to produce documentation evidencing compliance upon request by the Exchange. These requirements are part of the Exchange's filing that the SEC is reviewing through February 5, 2026.
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