Cboe Exchange proposes two-sided differentials for market-maker quotes rule
Published Date: 9/1/2026
Notice
Summary
No summary available.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Market-Makers Must Limit Quote Widths
Cboe requires Market-Makers to keep the width between their bid and offer at no more than $5 for option series expiring in 270 days or less, and no more than $15 for series expiring in more than 270 days. The Exchange will measure compliance by aggregating quotes at the Trading Permit Holder (TPH) firm level across all Executing Firm IDs (EFIDs), and counts a missing bid as a $0 bid for the purpose of the width calculation.
Investors May See Tighter Option Quotes
The Exchange says requiring Market-Makers to limit bid/ask differentials to $5 for options expiring in 270 days or less and $15 for longer-dated options is intended to produce tighter quotes and improve price discovery and execution opportunities for investors. The rule also excludes series where the underlying national best bid and offer (NBBO) is wider than those differentials.
Exchange May Set Different Widths for Some Products
Cboe may adopt bid/ask differentials other than $5 or $15 for one or more series or classes (including proprietary index or exclusively-listed products) and will announce any such differentials to members via exchange notice. Also, if an option is in-the-money and the underlying security's NBBO is wider than the stated differentials, the option spread may be as wide as that NBBO.
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Previous / Next Documents
Previous: 2026-17804, Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 5.52 (Market-Maker Quotes) To Adopt Two-Sided Quote Bid/Ask Differentials
Cboe C2 Exchange is updating its rules to set clear limits on how wide market-makers can set their bid and ask prices. This change affects market-makers by helping keep prices fair and competitive, starting immediately. It’s a smart move to make trading smoother and more transparent, with no extra costs for traders.
Next: 2026-17806, Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the Plan for the Purpose of Developing and Implementing Procedures Designed To Facilitate the Listing and Trading of Standardized Options To Add Investors Exchange LLC as a Plan Sponsor