Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Rule 8.23
Published Date: 2/2/2026
Notice
Summary
Cboe Exchange is rolling out Rule 8.23 to stop disruptive trading and order activities that mess with fair market play. This new rule affects all traders on Cboe Options and kicks in right away, helping keep trading smooth and fair without extra costs. It’s a smart move to keep the market honest and protect everyone involved.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
Cboe bans 11 disruptive trading practices
Cboe Exchange adopted Rule 8.23 (filed January 20, 2026) saying Trading Permit Holders (TPHs) on Cboe Options must submit orders and quotes only to execute bona fide trades. The rule lists 11 example behaviors that are non-bona fide (for example: entering orders to cancel before execution, signaling or coordinating order flow, submitting messages to overload systems, or intentionally submitting malformed data) that the Exchange may treat as prohibited.
Enforcement path and 60‑day Commission review
If the Exchange believes a TPH violated Rule 8.23, the Exchange will pursue alleged violations under its disciplinary process in Chapter XIII of the Rules. The Commission may temporarily suspend the rule change at any time within 60 days of the filing if it finds suspension necessary for investor protection.
Examples of allowed trading activity clarified
Rule 8.23 also lists activities that, absent other factors, do not violate the rule—six examples include cancelling or modifying orders in response to market changes, accidental submissions, two-sided markets with unequal sizes, legitimate queuing/opening orders, canceling orders after gaining priority in response to market changes, and test messages for legitimate testing. The Exchange says these examples are not violations on their face but could be violations if combined with other facts.
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
2026-10222 — 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!
2026-10244 — Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Fee Schedule Applicable to Members Concerning Equities Transaction Pricing
Investors Exchange (IEX) is updating its fee schedule starting June 1, 2026. Members who trade stocks will see changes in how they qualify for rebates and fee discounts based on their trading volume. These tweaks aim to make fees fairer and encourage more trading activity on the exchange.
2026-10245 — Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 3120 To Increase the Position and Exercise Limits for Options on the iShares Bitcoin Trust ETF
BOX Exchange is raising the limits on how many options traders can hold and exercise for the iShares Bitcoin Trust ETF. This change lets bigger players trade more freely and takes effect immediately, matching similar moves by other exchanges. If you trade these options, get ready for bigger opportunities starting now!
2026-10241 — Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the DTC Operational Arrangements (Necessary for Securities to Become and Remain Eligible for DTC Services)
The Depository Trust Company (DTC) is updating its rules to make it easier and clearer for agents handling corporate offers like tenders and subscriptions through its automated systems. This change affects companies and agents using DTC services to process these offers and starts right away with no extra costs. It’s all about smoother, faster, and more reliable processing for everyone involved!
2026-10283 — Order Granting Additional Directors and Officers of Certain Foreign Private Issuers an Exemption From the Filing Requirements of Section 16(a) of the Exchange Act
The SEC is giving more foreign company leaders from Australia, India, and Singapore a break from some tricky paperwork rules. If these companies meet certain local rules, their directors and officers won’t have to file certain reports under Section 16(a) of the Exchange Act. This change starts right away and helps these leaders save time and avoid extra costs.
Previous / Next Documents
Previous: 2026-01990 — Notice of Proposed Information Collection Requests: 2027-2029 IMLS Grant Application Forms
The Institute of Museum and Library Services (IMLS) wants your thoughts on their grant application forms for 2027-2029. They’re aiming to make the forms easier to use and less time-consuming for museums and libraries applying for funding. If you have ideas or concerns, send them in by April 4, 2026, to help shape the process and keep paperwork light!
Next: 2026-01993 — Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule General 8 Section 1 Related to Co-Location Services
Nasdaq is updating its fees and rules for co-location services, where traders place their computers close to Nasdaq’s servers to get faster data. This change affects anyone using these services by simplifying fees and removing some old rules about how many machines can fit in a cabinet. The new fees take effect right away, so users should check the updated prices and plan accordingly.