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.
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
2026-12163 — 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!
2026-10373 — Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
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!
2026-13648 — Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Except Accounts Pursuant to Section 530A of the Internal Revenue Code From the Requirements of FINRA Rule 3210 (Accounts At Other Broker-Dealers and Financial Institutions)
FINRA is updating its rules to exclude certain accounts protected under a new tax law (Section 530A) from extra paperwork and approval steps. This change helps financial pros handle these special accounts more easily, starting right away with no extra costs. If you work with broker-dealers or financial institutions, this means smoother account management from now on!
2026-13713 — Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Partial Amendment No. 1 to Proposed Rule Change To Amend FINRA Rule 2210 (Communications With the Public)
FINRA wants to update its rules to let financial firms share predictions about investment returns when talking to the public, but only if they follow certain safety steps. This change affects anyone in the finance world who communicates about investments and aims to make info clearer and more honest. The SEC is reviewing these updates, with decisions and possible money impacts expected soon.
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.