Cboe Adds Stop-Limit Orders and SCOA Auction Type
Published Date: 3/26/2026
Notice
Summary
Cboe Exchange is updating its rules to let traders use stop-limit complex orders and is launching a brand-new auction type called Stop Complex Order Auctions (SCOA). This change helps traders manage complex trades better and could speed up how these orders get matched. The new rules kick in soon and might impact trading strategies and costs for anyone using complex options on Cboe.
Analyzed Economic Effects
8 provisions identified: 6 benefits, 0 costs, 2 mixed.
Stop‑Limit Complex Orders Allowed
If you trade complex options on Cboe, the Exchange will accept “stop‑limit complex orders” so a single order for two or more option legs can become a limit order when a designated trigger condition is met. This extends existing stop‑limit functionality (previously for simple orders only) to complex option strategies.
New SCOA Auction Mechanism
Cboe will run a new auction type called a Stop Complex Order Auction (SCOA) that will process triggered stop‑limit complex orders. SCOA bundles multiple stop‑limit complex orders that share the same trigger event to maximize executed quantity and pursue price improvement, and stop‑limit complex orders will be processed only via SCOA (not COA).
Market‑Maker SBBO Trigger Protection
One trigger for stop‑limit complex orders uses a new “Market‑Maker SBBO” (best bid and offer calculated using only appointed Market‑Maker quotes) so stop triggers do not fire because of non‑Market‑Maker single‑leg customer orders. This is intended to reduce inappropriate cascades of triggered stop orders.
Who Can Respond to SCOA
The Exchange will determine class‑by‑class whether all Users may submit SCOA Auction Responses or whether only Market‑Makers with appointments and certain Trading Permit Holders (TPHs) acting as agent for orders at the top of the COB may respond. SCOA messages will be sent to recipients of auction messaging data.
Risk Controls and Optional SCOA Volume Exclusion
Users may specify whether SCOA volume or executions count toward a User's class, EFID, or EFID Group risk limits; option volume from SCOA may be excluded from certain risk monitor parameters. This setting is optional and under user control.
Early Termination & Anti‑Manipulation Protections
SCOA may terminate early if orders in a leg improve or join the SBBO in ways described in the rules. The Exchange added SCOA to an interpretation so that a pattern of order submissions by a TPH that causes early SCOA termination can be treated as conduct inconsistent with just and equitable principles of trade and a violation of Rule 8.1.
SCOA Response Time Limit
The Exchange will set SCOA Response Time Intervals on a class‑by‑class basis and the duration may not exceed 1000 milliseconds (1,000 ms). During this interval, auction responses may be modified or withdrawn; at interval end, responses become firm.
Post‑Auction Handling and Iterations
If SCOA does not fully fill orders, unfilled portions will be entered into the Complex Order Book (COB) if eligible, and the System will run iterations with incrementally more aggressive starting prices until filled, the limit price is reached, or the opposite‑side SBBO is used as the last auction start price.
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
2026-20466, Adviser and Regulated Fund Custody Rules; Crypto Custody Rules
The SEC is updating rules for how investment advisers and funds handle crypto assets, making sure they keep these digital investments safe and properly reported. These changes affect advisers, funds, and anyone managing crypto securities, aiming to modernize rules and improve transparency. Comments on the proposal are open until December 7, 2026, so get ready to weigh in!
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!
Previous / Next Documents
Previous: 2026-05844, Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Allow for Extended Trading of Multi-Listed Equity Options
The Cboe Exchange wants to let traders buy and sell certain popular stock options for longer hours. The SEC is taking extra time to decide if this change is a good idea, so no final call has been made yet. If approved, traders could enjoy more flexible trading times, but the decision might take several more months.
Next: 2026-05846, Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Corrections, Clarifications and Certain Other Changes to the GSD Rules, MBSD Rules, and EPN Rules
The Fixed Income Clearing Corporation (FICC) is updating its rulebooks to fix mistakes, clear up confusing parts, and make sure all their rules match up nicely with their sister agencies. These changes affect folks who trade government and mortgage-backed securities and take effect right away, with no extra costs involved. It’s all about making the rules easier to understand and smoother to follow.