2026-13022NoticeWallet

Cboe Wants New Auction for Complex Orders

Published Date: 6/29/2026

Notice

Summary

Cboe Exchange wants to add a new way to handle stop-limit complex orders by creating a special auction called the Stop Complex Order Auction (SCOA). This change affects traders using complex orders and aims to make trading smoother and more efficient. The SEC is now deciding whether to approve this update, with a decision expected soon, which could impact how and when these orders are processed.

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

New Stop‑Limit Complex Order Type

The Exchange proposes a new order type called a stop‑limit complex order that becomes a limit order when a specified trigger price is reached. The proposal (filed March 9, 2026) says this order lets you manage the long and short legs of a complex strategy together and can replace manual monitoring of separate legs.

Stop Complex Order Auction (SCOA) Mechanism

The Exchange would process all triggered stop‑limit complex orders in a new Stop Complex Order Auction (SCOA) that bundles multiple orders triggered by the same event to seek price improvement and maximize executed quantity. The proposed SCOA is intended to iterate auctions and execute the largest number of contracts, and unfilled orders may enter the Complex Order Book after the auction process.

Fast Response Window for SCOA Bids

When a SCOA starts, participants can submit responses during a Response Time Interval that may not exceed 1,000 milliseconds (1 second). The auction can end early if certain leg orders improve the quoted price or if a Priority Customer order affects the quote.

Usage Limits on Stop‑Limit Complex Orders

The proposal would bar users from designating stop‑limit complex orders as All Sessions or RTH and Curb, bar bulk messages from being stop‑limit complex orders, and bar designation of stop‑limit complex orders as Direct to PAR. These limitations restrict how and when that order type can be used.

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Key Dates

Published Date
6/29/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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