CBOE BZX Rule Filings

BZX Proposes Amendments to Exchange Disciplinary Rules

Cboe BZX Exchange filed a proposed rule change with the SEC on March 2, 2026, under Section 19(b)(1) of the Securities Exchange Act of 1934, seeking to amend Chapter 8 of its Rulebook governing investigative and disciplinary matters. The Exchange proposes updates across 15 categories including disciplinary jurisdiction, complaints, investigations, hearings, offers of settlement, judgments and sanctions, and minor rule violation fines, with the stated goal of harmonizing its rules with those of its affiliated exchanges, Cboe Exchange, Inc. and Cboe C2 Exchange, Inc. The Exchange also proposes to remove Rule 8.14 (Agency Review) and Rule 8.18 (Release of Disciplinary Complaints) in alignment with affiliate exchange rules.

BZX Proposes Fee Schedule Amendment for User Fee Exemption and Non-Display Usage Definition

Cboe BZX Exchange proposes to codify a User Fee exemption for Controlled Distributors in its Fee Schedule, exempting Display Usage fees where market data is used for permitted purposes including software development, QA, testing, sales support for redistribution, or technical monitoring. The Exchange also proposes to codify an amended definition of Non-Display Usage to capture access by machines or automated devices for purposes not solely in support of display for natural persons, explicitly acknowledging increased use of Large Language Models (LLMs) by market participants. The rule change brings definitions previously in Cboe Global Markets North American Data Policies into the Exchange's Fee Schedule.

Franklin Ethereum ETF Seeks Generic Listing Standards

Cboe BZX Exchange filed a proposed rule change (SR-CboeBZX-2026-026) on behalf of the Franklin Ethereum ETF to transition the Fund from operating under an individual approval order to operating under the generic listing standards for Commodity-Based Trust Shares under Rule 14.11(e)(4). The Fund currently trades on the Exchange pursuant to BZX Rule 14.11(e)(4) under an approval order and will continue to list and trade under the amended generic listing standards if approved by the SEC.

BondBloxx Private Credit Trust Listing Under BZX Rule 14.11(f)

Cboe BZX Exchange filed a proposed rule change with the SEC to list and trade shares of the BondBloxx Private Credit Trust under BZX Rule 14.11(f) (Trust Issued Receipts). The Trust seeks to provide risk-adjusted returns through distributions of current income from its private credit portfolio. The Trust intends to operate outside the definition of an investment company under the Investment Company Act of 1940 by meeting the 40% test exclusion.

Amends Rule 21.17 to Adopt Wide Market Protection Mechanism for Extreme Prices

Cboe BZX Exchange proposes to amend Rule 21.17(a) to adopt a wide market protection mechanism designed to reduce the risk of orders executing at extreme or adverse prices when the national best bid and offer (NBBO) is wide. The mechanism would leverage the existing iterative drill-through protection process, triggering a drill-through pause on applicable inbound market orders, limit orders, Stop (Stop-Loss) orders, and Stop-Limit orders that would otherwise execute or post at potentially extreme prices. The Exchange notes its affiliated exchange, Cboe Exchange (C1), recently implemented a substantially similar mechanism. Comments are invited on SR-CboeBZX-2026-030.

Amends Fee Schedule to Codify User Fee Exemption and Non-Display Usage Definition

CBOE BZX Exchange proposes to amend its Fee Schedule to codify (1) a User Fee exemption for Controlled Distributors from Display Usage fees for market data products when used solely for permitted purposes including software development, QA testing, sales support for redistribution, or technical monitoring, and (2) the amended definition of Non-Display Usage. The Exchange initially filed this proposal on April 1, 2026, withdrew it on April 13, 2026, and resubmitted it on that same date.

Amends Fees Schedule, Codifies User Fee Exemption

CBOE BZX Exchange proposes amendments to its Fees Schedule to codify a User Fee exemption for Controlled Distributors and amend the definition of Non-Display Usage. The User Fee exemption currently exists in Cboe Global Markets North American Data Policies and will now be formally codified in the Exchange's fee schedule for transparency. The proposed changes do not substantively alter how the Exchange applies these fees.