Cboe EDGA Tweaks Rules for Disqualified Traders
Published Date: 5/11/2026
Notice
Summary
Cboe EDGA Exchange is updating its rules about members or their associates who face legal disqualifications, making the process clearer and more in line with other financial rules. This change affects anyone involved with the Exchange who might be disqualified by law and takes effect immediately, with no new fees involved. It’s all about keeping the Exchange safe and fair for everyone.
Analyzed Economic Effects
4 provisions identified: 1 benefits, 3 costs, 0 mixed.
Shorter filing window can risk registration
Under the proposed rules, certain filing obligations for Members or associated persons who become subject to a statutory disqualification may require timely filings and, in some instances, a 10-day filing period is referenced; failure to file within that period can lead to revocation of the disqualified person's registration and prompt termination by the sponsoring Member. The rule also outlines procedures for interim heightened supervision while an application is pending.
Exchange rules harmonize with FINRA
The Exchange is changing its statutory-disqualification rule to align with FINRA's Rule Series 9520 and industry standards by adopting a new Rule 2.13 and a Statutory Disqualification Circular. This harmonization is intended to reduce inconsistent outcomes and make compliance easier for firms that are members of both the Exchange and FINRA.
Broader 'associated person' coverage for affiliates
The Exchange will adopt its own definition of 'associated person' for statutory-disqualification purposes that can include affiliates under common control, meaning a Member may need to file applications for affiliates that become subject to disqualifications. This differs from FINRA's definition and may increase filing obligations for Members with affiliated entities.
Rule change became effective immediately
The Commission waived the usual 30-day operative delay and designated the proposed rule change operative upon filing; the Exchange filed the change on April 28, 2026. That means the amended rules (including Rule 2.13 and the SD Circular procedures) are effective as of the filing date.
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