Cboe Axes Catastrophic Fees: Bureaucracy Lightens Up
Published Date: 9/14/2026
Notice
Summary
Cboe Exchange is updating its fee rules starting September 1, 2026. They’re adding MX2 LLC to a special fee code, removing the old Catastrophic Error Review Fee, and replacing it with a smaller $500 fee if an error review decision is upheld. These changes affect traders and firms using Cboe Options and aim to make fees fairer and clearer.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
Catastrophic Error Fee Cut to $500
Effective September 1, 2026, Cboe eliminates the $5,000 charge for a catastrophic error review and instead will assess a $500 fee when the Obvious Error Panel or Catastrophic Error Panel votes to uphold the decision under review. That $500 fee is assessed against the Trading Permit Holder(s) who initiated the request for appeal.
MX2 Added to $0.25 Routing Fee
Starting September 1, 2026, Customer orders routed to MX2 will be appended with fee code RD and assessed $0.25 per contract. If you route options orders through Cboe, applicable orders sent to MX2 will incur the same $0.25/contract routing charge as orders sent to other venues in fee code RD.
Exchange May Pass-Through Other Venue Charges
If Cboe requests a determination from another market center that results in charges, the Exchange will pass any resulting charges through to the relevant Trading Permit Holder. This means Trading Permit Holders may be billed for fees charged by other venues when Cboe seeks determinations on their behalf.
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Department and Agencies
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Starting September 1, 2026, Cboe C2 Exchange is slashing the fee for reviewing big trading mistakes from $5,000 down to $500—but only if the review panel agrees with the original decision. This change helps traders save money when their cases are upheld, making the process fairer and less costly. Anyone involved in trading on C2 will feel the impact, with quicker, cheaper error reviews.
Next: 2026-18666, Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Fees To Increase the Floor Market Maker Fee and Floor Broker Breakup Credit for Transactions in Non-Penny Classes
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