MWCBs for Cboe U.S. Equities Exchanges
Read frequently asked questions about market-wide circuit breakers for Cboe U.S. Equities exchanges.
How will Cboe BZX Equities Exchange halt and re-open BZX-listed securities for a Level 1 or Level 2 MWCB?
Cboe BZX Exchange will halt each BZX-listed security immediately upon receipt of a Level 1 or Level 2 trigger message from the SIPs. Individual halt messages will be sent out to the SIP and proprietary market data feeds for each BZX-listed security.
A re-opening auction will be scheduled for each BZX-listed security on the BZX Exchange. A standard halt re-opening auction will be scheduled with a quote only period to begin at 10 minutes following the start of the MWCB. Trading will be scheduled to resume at 15 minutes following the start of the MWCB, but standard quote period extensions described in the Cboe Titanium U.S. Equities Auction Process Specification will apply.
How will the re-opening process differ for BZX-listed Single Stock ETPs?
BZX Equities Exchange listings on Single Stock ETPs will halt at the start of the MWCB with all other listed securities. However, Single Stock ETPs will wait for the underlying stock to re-open following the MWCB before beginning a halt re-opening auction.
For example, if Single Stock ETP ABCD is based on underlying security ABC, and security ABC resumes at MWCB time + 15 minutes, then security ABCD will start a quote only period at MWCB time + 15 minutes with a scheduled resumption time of MWCB time + 20 minutes.
How will Cboe Equities Exchanges halt and re-open securities not listed on a Cboe U.S. Equities Exchange?
Non-listed securities on a Cboe U.S. Equities Exchange will halt immediately upon receipt of any MWCB trigger message from the SIPs.
Cboe will wait for a resumption message sent by the primary listing market through the appropriate SIP to initiate the re-opening process for non-listed securities. Cboe performs a midpoint cross for all non-listed re-openings. Full details are available in the Cboe Titanium U.S. Equities Opening Process Specification.
What will happen with open orders when a MWCB is triggered?
By default, open orders (except those marked as Post Only or those with a non-zero MinQty) will be queued and rolled into each halt re-opening process. However, Members may opt-in to instead have all orders (or just continuous book orders) cancelled on receipt of a halt on a session-by-session basis by submitting a logical port modification request to the Cboe Trade Desk.
Resting orders in non-listed symbols may be cancelled or modified at any time once the halt has been declared. New orders may also be entered immediately following a MWCB halt.
Resting orders in BZX-listed symbols may be cancelled at any time on BZX Exchange once the halt has been declared. Modifications for resting orders and new orders may only be submitted once the quote-only period has begun.
How will a Level 3 MWCB be handled?
Cboe U.S. Equities Exchanges will halt all securities, and no trading will occur for the remainder of the trading day upon receipt of a Level 3 MWCB trigger from the SIPs.
All closing auctions for Cboe listed securities will be cancelled, but Cboe BZX Exchange will disseminate closing prices for all listed symbols at 4:00 p.m. ET. The closing price of each listed symbol will be the Final Last Sale Eligible Trade.
Orders will be cancelled back to customers based on each Member's Cancel on Halt session settings or when those orders are normally scheduled to expire (e.g., DAY orders will cancel at the end of regular trading hours).
When will Cboe send resumptions for BZX-listed securities following a Level 3 MWCB?
All BZX-listed securities will be resumed with an appropriate Trading Status message sent to the SIPs between 3:55 a.m. ET and 3:59 a.m. ET on the next trading date. This will allow all BZX-listed securities to trade normally during the premarket trading session on the next trading day unless a security should remain halted for some other reason.