2026-01016Notice

Cboe Unveils Hidden Order Magic and Retail Trading Boost

Published Date: 1/21/2026

Notice

Summary

Cboe EDGX Exchange is proposing a new Retail Price Improvement program to help everyday investors get better prices when they trade. They’re also updating rules to explain how special hidden orders work behind the scenes. These changes could make trading smoother and fairer, with decisions expected soon and no direct cost to investors.

Analyzed Economic Effects

6 provisions identified: 5 benefits, 1 costs, 0 mixed.

Retail price improvement of $0.001+

The Exchange proposes a Retail Price Improvement (RPI) Program that would let retail orders on EDGX receive price improvement of at least $0.001 versus the Protected NBB (for buys) or Protected NBO (for sells) for securities priced at or above $1.00. RPI interest may be entered in $0.001 increments and RPI Orders will only be eligible to execute against incoming Retail Orders.

Retail orders may use any time‑in‑force

Under the proposal, Retail Orders on EDGX would be permitted to be entered with a time‑in‑force other than Immediate‑or‑Cancel (IOC), allowing Retail Orders to post to the EDGX Book or route away according to user instructions. The Exchange says this aims to create deeper on‑exchange liquidity and more execution opportunities for retail orders.

Sub‑penny RPI pricing request

The Exchange plans to accept and rank RPI Orders in $0.001 increments and intends to submit a request for an exemption under Regulation NMS Rule 612 to permit acceptance and ranking of non‑displayed RPI Orders in sub‑penny increments. That would allow non‑displayed RPI interest to be entered at prices such as $10.001.

Retail Liquidity Identifier (RLI) disseminated

EDGX would disseminate a Retail Liquidity Identifier (RLI) through proprietary feeds or the Consolidated Quotation System when an RPI Order has a ranked price at least $0.001 better than the Protected NBB or Protected NBO for a security priced at or above $1.00. The RLI would show the security symbol and side (buy/sell) but would not show price or size.

RPI program excludes sub‑$1 securities

The proposed EDGX RPI Program would apply only to securities priced at or above $1.00 and would not accept RPI Orders for securities priced below $1.00. The Exchange will notify members periodically which securities are included.

Clearer rules for non‑displayed orders

The Exchange proposes changes to how Non‑Displayed Orders post and execute: if a non‑displayed limit would lock the EDGX Book it will post at the locking price; crossing behavior, price‑slide instructions, Post Only instructions, and when later arriving orders may execute ahead of a locked resting order are explicitly described in new Rule 11.6(e)(2) and Rule 11.10(a)(4)(C)-(D). The Exchange says these changes provide greater certainty about entry and execution of non‑displayed orders.

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Key Dates

Published Date
1/21/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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