Cboe BZX Clarifies Auction Pricing When Formulas Fail
Published Date: 7/17/2026
Notice
Summary
Cboe BZX Exchange is updating its rules to clarify how it sets prices during special auctions, especially when usual methods don’t work. This change affects traders and companies listing on BZX, giving the Exchange more flexibility to decide prices fairly and quickly. The new rules are effective immediately, so everyone should be ready for smoother IPO and auction pricing right away.
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
No Collar on ETP IPO Auctions
For ETP (exchange-traded product) IPO auctions on BZX, the Exchange will no longer apply a "Collar Price Range." Instead, ETP IPO Auctions will rely on the price validation test between 9:30 a.m. ET and 9:45 a.m. ET and, after 9:45 a.m. ET, the national Limit Up-Limit Down (LULD) price bands. This change means ETP IPO auctions can execute without the prior percentage collar constraint around an issue price.
Discretion to Set Collar Midpoint
When no Volume Based Tie Breaker exists (including when there is no Final Last Sale Eligible Trade), the Exchange may set the "Collar Midpoint" itself. The Exchange may use external market data (for example, market data vendors or underlying portfolio components) to determine that Collar Midpoint for purposes of calculating a Collar Price Range.
Corporate IPO Collars Remain
For IPO auctions in BZX-listed corporate securities, the existing Collar Price Range will continue to apply. Orders in those corporate IPO auctions will be executed at the price within the Collar Price Range that maximizes the number of shares executed in the auction.
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