Another Exchange Polishes Its Internal Rulebook
Published Date: 5/28/2026
Notice
Summary
Cboe BYX Exchange just updated its rulebook to make investigations and discipline clearer and smoother for everyone involved. This change affects traders and firms on the exchange by improving how issues are handled, with no new fees or delays expected. The new rules kicked in right after filing, so the Exchange is ready to keep things fair and fast!
Analyzed Economic Effects
9 provisions identified: 8 benefits, 0 costs, 1 mixed.
Arbitration non‑payment remains disciplinable
The Exchange clarifies that Members and former Members (and associated persons) remain subject to BYX disciplinary jurisdiction for failure to honor arbitration awards under Chapter 9. The rule change also eliminates the one‑year notice limitation for pursuing disciplinary measures in those failure‑to‑pay cases.
Longer response windows and videotape rules
If you are a Member or associated person who is the subject of a BYX investigation, you now have 25 days (instead of 15 days) to submit written responses and videotaped responses. The rule adds a 25-day tolling period while access to the investigative file is pending, and videotaped responses must not exceed 12 minutes and must include a written transcript.
Hearings moved to Business Conduct Committee
BYX will hold hearings on charges before a Hearing Panel made up of three or five members of a newly defined Business Conduct Committee (BCC), rather than panels appointed by the CEO. The filing defines the BCC's composition (Members/associated persons, public representatives, and possibly other industry-affiliated individuals).
Agency review removed; CRD reporting added
BYX will remove Rule 8.14 (Agency Review) in its entirety and replace it with a rule regarding reporting to the Central Registration Depository (CRD).
Removal of public release rule for disciplinary materials
The Exchange will remove Rule 8.18 (Release of Disciplinary Complaints, Decisions and Other Information) in its entirety so the Exchange's rules will no longer include that specific release provision.
Longer review and appeal timelines
Respondents now have 15 days (instead of 10) to petition for review of a decision, and the Board now has 30 days (instead of 20) to review a decision. The Exchange also extends some other internal timelines (e.g., certain respondent deadlines extended from 15 to 25 days as noted elsewhere).
Expanded Minor Rule Violation program details
BYX revises Rule 8.15 to include additional details about the Minor Rule Violation (MRV) program and aligns the MRV provisions with the Affiliated Exchanges' Rule 13.15.
Service address and extra days for certified mail
The Exchange clarifies that a Respondent may be served at its last known place of business as shown in Exchange records, and provides an additional three days to respond when service is by certified mail.
Clearer ex parte communications rule
Rule 8.16 on ex parte communications is updated to apply explicitly to all Members and associated persons, revises the definition of 'Adjudicator' to include Hearing Panel, BCC, Board or committee members, and adds subparagraphs defining ex parte communications and clarifying what is not a violation.
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