Cboe Seeks Review of SEC Order Denying OEMS Carve-Out Proposal

Cboe Exchange Inc. sued the Securities and Exchange Commission, seeking the Seventh Circuit’s review of an agency order denying its proposal that would update how order and execution management systems are classified.

The Chicago-based derivatives and exchange network had pitched a rule change that would no longer categorize a qualifying OEMS, such as Cboe’s Silexx platform, as a “facility” of the exchange itself, but the SEC rejected that proposal in November.

The SEC disapproved of the proposed rule change, citing how it would remove Silexx and other OEMSs from the rule filing requirements it has historically observed, allowing the Cboe ...