Cboe Lets Insiders Speed Up Auction Trades for Big Wins
Published Date: 3/24/2026
Notice
Summary
Cboe Exchange just got a green light to let Market-Makers with special appointments have their orders invited as the opposite side in certain auctions. This means faster, smarter trades in auctions like AIM and SAM, helping big orders get better prices. The change kicks in soon and could make trading smoother and more competitive for Market-Makers and their clients.
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Market-Maker Orders Allowed in Auctions
The SEC approved on March 19, 2026 an amendment to Cboe Rules 5.37, 5.39, 5.73, and 5.74 that allows orders for the accounts of Market-Makers with an appointment in the applicable class on the Exchange to be solicited as the contra-side (the Initiating Order) in simple AIM, simple SAM, FLEX AIM, and FLEX SAM auctions in all classes. Previously, that solicitation was prohibited in all classes except S&P 500 Index options (SPX).
More Auctions Could Mean Better Prices
Permitting solicited Market-Maker contra orders could expand available liquidity and allow more AIM and SAM auctions to take place, which may create more chances for customers to receive price improvement versus the National Best Bid or Offer (NBBO) or for large block orders to execute more efficiently.
Enables Brokers to Solicit Market-Maker Liquidity
The change lets executing brokers or members who cannot commit the capital needed for an Initiating Order instead solicit Market-Makers to provide that necessary contra-side liquidity to commence an auction, which may promote competition among executing brokers.
Protections Against Information Misuse Remain
The Commission emphasized that Trading Permit Holders must comply with Cboe Rule 8.10, which prohibits misuse of material nonpublic information (for example, advanced knowledge of auctioned orders), and that the Exchange will surveil for violations under the approved change.
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Key Dates
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Related Federal Register Documents
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