Effective December 16, 2024, Cboe Options (C1) and EDGX Options Exchanges will allow the equity leg on all stock-option orders to be executed outside the equity National Best Bid and Offer (NBBO) by no more than a defined buffer amount.
Currently, except for QCC orders, the equity leg of an electronically-processed stock-option order is configured to be executed within the equity NBBO. The system does not allow execution if the equity leg cannot be priced at or inside the NBBO.
On the effective date, the system behavior will be updated. C1 and EDGX will allow the equity leg on all stock-option orders to be executed outside the equity NBBO by no more than a buffer amount of $0.25. This change applies to all Non-FLEX and FLEX stock-option orders of any ratio. Equity leg pricing will still adhere to any trading restrictions in effect such as Reg SHO and LULD.
This functionality is currently available for testing in the C1 and EDGX certification environments.
