SRO Monitor Digest

Cboe BYX is updating its Retail Price Improvement Program to allow Retail Member Organizations (RMOs) to submit retail orders to the exchange in a principal capacity — not just as agent or riskless principal — so that they can provide customers with additional post-execution price improvement beyond what the exchange itself delivers. This rule change took effect immediately upon filing (the SEC waived the standard 30-day delay), meaning it is already live; this is not a proposal under review but an operative rule change, though the SEC retains the ability to suspend it within 60 days if concerns arise. In practice, retail broker-dealers that trade against their customers' orders as principal can now formally label those orders as 'Retail Orders' on BYX and access the exchange's retail price improvement program benefits, potentially drawing more retail flow onto the exchange and away from off-exchange wholesalers.

IEX is adding a new optional handling instruction to its D-Limit order type, giving members the choice of whether their incoming D-Limit orders get automatically price-adjusted when the Crumbling Quote Indicator (CQI) is active on entry, or instead post/execute at their stated limit price like a regular limit order would. The change is already effective — IEX filed it under the 'non-controversial' fast-track rule, meaning it doesn't need full SEC review or approval before going live, though the SEC retains the right to suspend it within 60 days if concerns arise. In practice, members who previously avoided D-Limit orders because of unwanted price adjustments on entry now have more control, which IEX hopes will drive greater D-Limit adoption and deepen liquidity on the exchange.