Cboe BYX Syncs Rules on Banned Traders with FINRA Standards
Published Date: 5/13/2026
Notice
Summary
Cboe BYX Exchange is updating its rules about members or their associates who face legal disqualifications, making sure the rules match those of FINRA with a few tweaks. This change affects anyone involved with the Exchange who might be barred from trading due to legal issues. The new rules take effect immediately, helping keep the market safe and fair without causing delays or extra costs.
Analyzed Economic Effects
6 provisions identified: 4 benefits, 2 costs, 0 mixed.
Fewer SD applications for resolved disqualifications
The Exchange changed its rules to conform to FINRA and will no longer require Members or associated persons to submit Statutory Disqualification (SD) applications for prior statutory disqualifications that have been resolved. The Exchange will incorporate an SD Circular that explains when an application is required based on the type and date of the disqualification and whether the person seeks admission, readmission, or continuation.
Harmonized rules for dual FINRA/Exchange members
The Exchange substantially aligned its statutory-disqualification procedures with FINRA Rule Series 9520 so that firms that are members of both FINRA and the Exchange will face fewer conflicting outcomes. The Exchange said this harmonization will result in less burdensome and more efficient regulatory compliance for dual members.
Fewer 19h-1 Notices required in certain cases
The Exchange will rely on FINRA's 2009 No-Action Letter and related interpretations in deciding when an Exchange Act Rule 19h-1 notice to the SEC is required. The filing notes that FINRA's No-Action Letter ultimately requires fewer 19h-1 Notices to be filed in certain circumstances (for example, where a CFTC willful violation’s sanctions are no longer in effect).
Affiliates under common control may still need Exchange filings
The Exchange's proposed definition of "associated person" includes affiliates under common control for the purpose of statutory disqualifications, which means a Member with an affiliate under common control that becomes disqualified must file an application with the Exchange even if FINRA would not require one. The filing explicitly notes that a firm that is both an Exchange Member and FINRA member with such an affiliate is required to file with the Exchange but not with FINRA.
Rule change became operative immediately
The SEC waived the normal 30-day operative delay and designated the Exchange's proposed rule change as operative upon filing. The Exchange filed the proposal on May 6, 2026, so the rule became operative upon that filing date.
Exchange uses its own SD application fee program
The Exchange will not adopt FINRA's application-fee language and instead will apply its own SD application fee program as reflected in the Exchange's fee schedule. The Exchange notes FINRA's rules reference FINRA's fee and refund approach, but the Exchange proposes to rely on its separate fee program.
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
2026-12163, 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!
2026-16853, Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List
The New York Stock Exchange is changing its price rules starting August 11, 2026. They’re tweaking the share amount needed to get free late D Orders at the market close and cleaning up some wording. This affects traders using these order types and could save or cost them money depending on their order size.
2026-16855, Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Equity 4, Rule 3100 Regarding Trading Halts
Previous / Next Documents
Previous: 2026-09474, Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Exchange's Fee Schedule To Remove Text Capping the Number of Dedicated Cores Available to Market Participants
Cboe BYX Exchange just removed the limit on how many Dedicated Cores market participants can use. This change means traders can access more computing power without hitting a cap, starting right away. It’s a win for active traders who want faster, bigger access with no extra fees announced yet.
Next: 2026-09476, Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Price List
The New York Stock Exchange is changing its fee list by removing some rarely used discounts for adding displayed liquidity in certain stocks (called Tape A, B, and C securities). This means traders who used those discounts will see changes starting May 1, 2026. The update aims to simplify fees and keep things fair for everyone trading on the Exchange.