Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend Exchange Rule 14.12
Published Date: 2/3/2026
Notice
Summary
Cboe BZX Exchange is changing its rules to give companies more time—an extra 180 days—to fix certain listing problems related to who owns their shares. This helps companies stay listed while they work on meeting the rules, without rushing. Investors and companies on the exchange should watch for these updates starting soon, but no new fees are involved.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 2 costs, 0 mixed.
Extra 180-Day Cure Window
The Exchange proposes to let its Listing Qualifications staff grant an extra 180 calendar days (for a total of up to 360 days from initial notification) to cure deficiencies tied to the beneficial-holder continued listing standard for ETPs listed under Rule 14.11. The extra time is discretionary and only available if the issuer shows quantifiable progress during the initial 180-day compliance period.
Reduces Risk of Premature Delisting
The rule change aims to reduce premature delistings by allowing staff to extend a compliance cure period up to 360 days when an issuer shows progress toward meeting the 50 beneficial-holder requirement. This can help investors avoid forced liquidations, potential tax consequences, and transaction costs when a product is demonstrably moving toward compliance.
Relief for Outcome Strategy ETPs
The Exchange notes that ‘‘Outcome Strategy ETPs’’ (series/tranche structures with staggered outcome periods) may struggle to meet the 180-day beneficial-holder threshold because back-dated tranches can naturally gain holders only as they roll into front-month status. The proposed additional 180 days (total 360 days) can be granted at staff discretion to accommodate these lifecycle patterns when issuers show measurable progress.
No Extension During Adjudicatory Review
A company that is currently under review by an Adjudicatory Body for a Staff Delisting Determination is not eligible for the additional 180-day extension; the extra cure period applies only during the initial compliance review process. Staff will inform the company in writing if an extension is granted and set the terms of the extension.
50-Holder Rule Remains Unchanged
The proposed amendment does not change the minimum beneficial-holder requirement; the threshold remains 50 beneficial holders and all other continued listing standards remain in effect. The extra extension is a timing accommodation only and does not relax the underlying listing standards.
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