Cboe BZX Patches Trading Errors for Overnight Shenanigans
Published Date: 10/13/2026
Notice
Summary
Cboe BZX Exchange is updating its rule about fixing trading mistakes to match new overnight trading hours. This change affects traders using the Exchange’s 23/5 trading and helps keep error corrections clear and fair. The update is effective immediately, so traders should be ready for smoother handling of clearly wrong trades without any extra costs.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Limits on Breaking Overnight Trades
The Exchange will extend its limits on clearly erroneous trade review so that trades executed during LULD Protected Hours are generally not eligible for cancellation. LULD Protected Hours now include Regular Trading Hours and Overnight Protected Hours (9:00 p.m. ET through 4:00 a.m. ET), and the change is to become operative at the start of industry-wide 23/5 Trading on December 6, 2026.
Exception for Non-LULD NMS Securities
Transactions in NMS stocks that are not subject to the LULD Plan (for example, rights and warrants) executed during Overnight Protected Hours remain eligible for clearly erroneous review. Such transactions will be reviewed under the same Numerical Guidelines that apply to Early Trading, Pre-Opening, and After Hours Sessions.
New Overnight Price Band Definitions
The rule adds definitions clarifying that "Overnight Price Bands" (as defined in Section VIII of the LULD Plan) apply during Overnight Protected Hours (9:00 p.m. ET through 4:00 a.m. ET) and incorporates the Overnight Percentage Parameter into the clearly erroneous price-threshold test; the LULD Plan initially sets Overnight Price Bands as temporary static bands 20% above and below two reference points.
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