BZX Exchange Mandates Monthly Order Audits for Pros
Published Date: 7/16/2026
Notice
Summary
Cboe BZX Exchange is changing the rules for traders labeled as 'Professionals' by requiring them to review their orders every month. This affects anyone placing lots of option orders—more than 390 a day on average—and helps keep trading fair and clear. The new rule is already in effect, so pros need to start monthly checks right away, but no new fees are involved.
Analyzed Economic Effects
3 provisions identified: 0 benefits, 3 costs, 0 mixed.
High-volume Options Traders Reclassified
If you (as a non‑broker dealer) place an average of more than 390 listed‑options orders per day during any calendar month, your orders will be designated as Professional orders for the next calendar month. Professional designation means you will not receive the Public Customer marketplace advantages (execution priority and generally lower or no transaction fees) that retail Public Customers receive.
Monthly Reclassification Requirement for Brokers
Options Members (broker‑dealers) must review customers' activity monthly and change how they represent orders within five days after the end of each calendar month, instead of five days after each calendar quarter. The 390 orders/day average test still applies; the Exchange says firms already perform the daily calculations needed.
Rule Became Operative Immediately
The Exchange filed the rule change on June 30, 2026, and the SEC waived the normal 30‑day delay, making the monthly review requirement operative upon filing. Affected firms and traders should begin complying with monthly review and reclassification procedures immediately.
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Previous / Next Documents
Previous: 2026-14265 — Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Definition of Professional To Require Monthly Reviews of Orders
Cboe C2 Exchange is changing the rules for traders called 'Professionals' who place lots of orders. Now, these traders must review their orders every month to keep things fair and clear. This change starts right away and mainly affects high-volume traders, helping the Exchange keep a close eye on big order activity without extra costs.
Next: 2026-14267 — Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Definition of Professional To Require Monthly Reviews of Orders
Cboe Exchange is changing the rules for traders labeled as 'Professionals' by requiring them to review their orders every month. This affects anyone placing lots of option orders—more than 390 a day on average—and helps keep trading fair and clear. The new rule is already in effect, so pros need to start monthly checks right away, but no new fees are involved.