2026-09967NoticeWallet

Cboe EDGX Polishes Its Member Discipline Playbook

Published Date: 5/19/2026

Notice

Summary

Cboe EDGX Exchange is updating its rules about how it investigates and disciplines its members and their associates. These changes clarify who the Exchange can discipline and improve the process to keep things fair and clear. The new rules took effect right after filing on May 4, 2026, with no new fees involved.

Analyzed Economic Effects

8 provisions identified: 3 benefits, 2 costs, 3 mixed.

Disciplinary reach for unpaid arbitration awards

The Exchange amended Rule 8.1 so former Members or associated persons remain subject to EDGX disciplinary jurisdiction for failing to honor an EDGX arbitration award, and the Exchange will eliminate the one-year notice limitation for pursuing discipline in that narrow circumstance. The change is intended to preserve the Exchange's ability to discipline nonpayment of arbitration awards arising under Chapter 9.

Longer response times and clearer videotape rules

The Exchange extended multiple procedural deadlines: subjects now have 25 days (instead of 15) to submit written responses and videotaped responses, and Rule 8.2 includes a 25-day tolling period while access to the investigative file is pending. Videotaped responses are limited to 12 minutes and must include a written transcript. These timing and format changes apply across Rules 8.2(d), 8.2(h), 8.3, and 8.5.

Harmonizes disciplinary rules with affiliates

The Exchange aligned Chapter 8 disciplinary rules with its affiliated exchanges (Cboe Exchange, Inc. and Cboe C2) so Members and Trading Permit Holders will be subject to substantially similar investigative and disciplinary procedures across those exchanges. The filing states this harmonization is intended to increase efficiency and fairness for parties that hold status on more than one exchange.

Hearings moved to Business Conduct Committee panels

The Exchange changed Rule 8.6 so hearings on charges will be held before a Hearing Panel composed of three or five members of the Business Conduct Committee (BCC) rather than panels appointed by the CEO, and the filing adds a new Rule 8.2(m) that defines the BCC and its composition. The BCC may include Member/associated-person representatives and public representatives as appointed by the Exchange's Nominating and Governance Committee and approved by the Board.

Agency review removed; CRD reporting added

The Exchange proposes to remove Rule 8.14 (Agency Review) in its entirety and replace it with a rule regarding reporting to the Central Registration Depository (CRD), aligning with the affiliated exchanges and noting that the Act provides for a statutory right to review. The change moves Chapter 8 away from the Exchange-specific agency review provision and toward CRD reporting.

Minor Rule Violation program revised and aligned

The Exchange revised Rule 8.15 to include additional details about the Minor Rule Violation (MRV) program and to align the MRV rule text with Rule 13.15 of the affiliated exchanges. The filing states these changes add detail and conform EDGX procedures to the affiliated exchanges' approach to MRVs.

Removal of rule on releasing disciplinary information

The Exchange proposes to remove Rule 8.18 (Release of Disciplinary Complaints, Decisions and Other Information) in its entirety because affiliated exchanges do not have a similar provision. The filing therefore eliminates the existing Exchange-specific rule governing release of such disciplinary materials.

Longer petition and board review deadlines

The Exchange extended several appellate and service timeframes: Respondents may petition for review in 15 days instead of 10 days, the Board's review period is extended from 20 to 30 days, and service by certified mail grants an additional three days to respond. These changes are reflected in Rule 8.10 and Rule 8.12.

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Key Dates

Effective Date
Published Date
5/4/2026
5/19/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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