Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 11.9(c)(8) To Clarify Pegged Order Operation and To Align BYX Rule 11.9(c)(8) With the Corresponding Rule of Its Affiliate Exchanges, Cboe EDGA Exchange, Inc. (“EDGA”) and Cboe EDGX Exchange, Inc. (“EDGX”)

<NOTICE> SECURITIES AND EXCHANGE COMMISSION <DEPDOC>[Release No. 34-104463; File No. SR-CboeBYX-2025-036]</DEPDOC> <SUBJECT>Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 11.9(c)(8) To Clarify Pegged Order Operation and To Align BYX Rule 11.9(c)(8) With the Corresponding Rule of Its Affiliate Exchanges, Cboe EDGA Exchange, Inc. (“EDGA”) and Cboe EDGX Exchange, Inc. (“EDGX”)</SUBJECT> <DATE>December 19, 2025.</DATE> Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”), <SU>1</SU> <FTREF/> and Rule 19b-4 thereunder, <SU>2</SU> <FTREF/> notice is hereby given that on December 16, 2025, Cboe BYX Exchange, Inc. (the “Exchange” or “BYX”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act  <SU>3</SU> <FTREF/> and Rule 19b-4(f)(6) thereunder. <SU>4</SU> <FTREF/> The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. <FTNT> <SU>1</SU>  15 U.S.C. 78s(b)(1). </FTNT> <FTNT> <SU>2</SU>  17 CFR 240.19b-4. </FTNT> <FTNT> <SU>3</SU>  15 U.S.C. 78s(b)(3)(A)(iii). </FTNT> <FTNT> <SU>4</SU>  17 CFR 240.19b-4(f)(6). </FTNT> <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD> Cboe BYX Exchange, Inc. (“BYX” or the “Exchange”) is filing with the Securities and Exchange Commission (the “Commission”) a proposed rule change to amend Rule 11.9(c)(8) to clarify Pegged Order operation and to align BYX Rule 11.9(c)(8) with the corresponding rule of its affiliate exchanges, Cboe EDGA Exchange, Inc. (“EDGA”) and Cboe EDGX Exchange, Inc. (“EDGX”). The text of the proposed rule changes is in Exhibit 5. The text of the proposed rule change is also available on the Commission's website ( <E T="03">https://www.sec.gov/rules/sro.shtml</E> ), the Exchange's website ( <E T="03">https://www.cboe.com/us/equities/regulation/rule_filings/bzx/</E> ), and at the principal office of the Exchange. <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD> In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD> <HD SOURCE="HD3">1. Purpose</HD> The Exchange proposes to amend Rule 11.9(c)(8) to clarify Pegged Order operation and to align BYX Rules with the rules of its affiliate exchanges in order to provide consistency amongst the Exchange and its affiliates. The Exchange notes that the proposed rule text is based on EDGA/EDGX Rule 11.6(j) and is different only to the extent necessary to conform to the Exchange's current rules. <SU>5</SU> <FTREF/> The proposed amendment does not propose to implement new or unique functionality that has not been previously filed with the Commission or is not available on EDGA or EDGX. <FTNT> <SU>5</SU>  To the extent a proposed rule change is based on existing EDGA and EDGX Rules, the language of the EDGA, EDGX, and Exchange Rules may differ to extent necessary to conform with existing Exchange rule text or to account for details or descriptions included in the Exchange Rules but not currently included in EDGA and EDGX Rules based on the current structure of such rules. </FTNT> By way of background, Exchange Rule 11.9, Orders and Modifiers, lists and describes the types of orders Users  <SU>6</SU> <FTREF/> may enter into the System, <SU>7</SU> <FTREF/> including Pegged Orders as described in Exchange Rule 11.9(c)(8). A Pegged Order  <SU>8</SU> <FTREF/> is a limit order that after entry into the System, the price of the order is automatically adjusted by the System in response to changes in the NBBO. <SU>9</SU> <FTREF/> A Pegged Order will peg to the NBB or NBO or a certain amount away from the NBB  as described in Exchange Rules 11.9(c)(8)(A) and 11.9(c)(8)(B). Pegged Orders are not eligible for routing pursuant to Exchange Rule 11.13(b). <SU>12</SU> <FTREF/> A new time stamp is created for a Pegged Order each time it is automatically adjusted. <SU>13</SU> <FTREF/> <FTNT> <SU>6</SU>   <E T="03">See</E> Exchange Rule 1.5(cc).A “User” is defined as “any Member or Sponsored Participant who is authorized to obtain access to the System pursuant to Rule 11.3. </FTNT> <FTNT> <SU>7</SU>   <E T="03">See</E> Exchange Rule 1.5(aa).The “System” is defined as “the electronic communications and trading facility designated by the Board through which securities orders of Users are consolidated for ranking, execution and, when applicable, routing away.” </FTNT> <FTNT> <SU>8</SU>   <E T="03">See</E> Rule 11.9(c)(8). </FTNT> <FTNT> <SU>9</SU>   <E T="03">See</E> Rule 1.5(o). The term “NBBO” shall mean the national best bid or offer. </FTNT> <FTNT> <SU>10</SU>   <E T="03">See</E> Rule 1.5(o). The term “NBB” shall mean the national best bid. </FTNT> <FTNT> <SU>11</SU>   <E T="03">See</E> Rule 1.5(o). The term “NBO” shall mean the national best offer. </FTNT> <FTNT> <SU>12</SU>   <E T="03">See</E> Rule 11.9(c)(8). </FTNT> <FTNT> <SU>13</SU>   <E T="03">Id.</E> </FTNT> A Pegged Order may be a Primary Pegged Order or a Market Pegged Order. <SU>14</SU> <FTREF/> A Primary Pegged Order will have its price pegged by the System to the NBB, for a buy order, or the NBO for a sell order. <SU>15</SU> <FTREF/> A User may, but is not required to, specify that such order's price will offset the inside quote on the same side of the market by an amount set by the User (the “Primary Offset Amount”). <SU>16</SU> <FTREF/> A Primary Pegged Order is eligible to be displayed or non-displayed, however, the Primary Offset Amount for a displayed Primary Pegged Order must result in the price of such order being inferior to or equal to the inside quote on the same side of the market. <SU>17</SU> <FTREF/> A displayed Primary Pegged Order with a Primary Offset Amount shall only include a time-in-force of RHO, <SU>18</SU> <FTREF/> or if entered during Regular Trading Hours, <SU>19</SU> <FTREF/> a time-in-force of Day. <SU>20</SU> <FTREF/> <FTNT> <SU>14</SU>   <E T="03">Id.</E> </FTNT> <FTNT> <SU>15</SU>   <E T="03">See</E> Rule 11.9(c)(8)(A). </FTNT> <FTNT> <SU>16</SU>   <E T="03">Id.</E> </FTNT> <FTNT> <SU>17</SU>   <E T="03">Id.</E> </FTNT> <FTNT> <SU>18</SU>   <E T="03">See</E> Rule 11.9(b)(7). A time-in-force of Regular Hours Only (“RHO”) may be applied to a limit or market order that is designated for execution only during Regular Trading Hours, which includes the Opening Auction, the Closing Auction, and IPO/Halt Auctions for BYX listed securities and the Opening Process for non-BYX-listed securities (as such terms are defined in Rule 11.23 and 11.24). Any portion of a market RHO order will be cancelled immediately following any auction in which it is not executed. </FTNT> <FTNT> <SU>19</SU>   <E T="03">See</E> Rule 1.5(w). The term “Regular Trading Hours” means the time between 9:30 a.m. and 4:00 p.m. Eastern Time. </FTNT> <FTNT> <SU>20</SU>   <E T="03">See</E> Rule 11.8(b)(2). A time-in-force of Day may be applied to a limit order to buy or sell, which, if not executed, expires at the end of Regular Trading Hours. Any Day Order entered into the System before the opening of business on the Exchange as determined pursuant to Rule 11.1, or after the closing of Regular Trading Hours, will be rejected. </FTNT> A Market Pegged Order has its price pegged by the System to the NBB, for a sell order, or the NBO, for a buy order. <SU>21</SU> <FTREF/> A User entering a Market Pegged Order can specify that such order's price will offset the inside quote on the contra side of the market by an amount set by the User (the “Offset Amount”). <SU>22</SU> <FTREF/> A Market Pegged Order is not eligible to be displayed on the Exchange. <SU>23</SU> <FTREF/> <FTNT> <SU>21</SU>   <E T="03">See</E> Rule 11.9(c)(8)(B). </FTNT> <FTNT> <SU>22</SU>   <E T="03">Id.</E> </FTNT> <FTNT> <SU>23</SU>   <E T="03">Id.</E> </FTNT> Now, the Exchange proposes to amend the description of a Pegged Order under Rule 11.9(c)(8) to align with EDGA/EDGX Rule 11.6(j) and to clarify that a Pegged Order will not be eligible for execution where the NBB or NBO, as applicable, is no longer available. Further, the proposed rule text will provide that a new timestamp is created for an order that has been ineligible for execution and again becomes eligible for execution because the NBB or NBO it is pegged to becomes unavailable [sic]. Currently, when the NBB or NBO becomes unavailable, a Pegged Order is cancelled back to the User. As proposed, instead of being cancelled back to the User, a Pegged Order will remain on the BYX Book. When the NBB or NBO that the Pegged Order is pegged to becomes available again, the order will receive a new time stamp and be eligible for execution. The proposed rule change provides additional detail with regard to the operation of Pegged Orders when the NBB or NBO, as applicable, is unavailable, that is curre ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 20k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━