Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Adopt Fees for a Recently Adopted New Version of the Silexx Platform, 58093-58095 [2020-20472]
Download as PDF
<![CDATA[
Federal Register / Vol. 85, No. 181 / Thursday, September 17, 2020 / Notices
All submissions should refer to File
Number SR–NYSEArca–2020–54. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2020–54 and
should be submitted on or before
October 8, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–20474 Filed 9–16–20; 8:45 am]
BILLING CODE 8011–01–P
jbell on DSKJLSW7X2PROD with NOTICES
[Release No. 34–89830; File No. SR–CBOE–
2020–085]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating To Adopt Fees
for a Recently Adopted New Version of
the Silexx Platform
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
11 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:37 Sep 16, 2020
Jkt 250001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to adopt
fees for a recently adopted new version
of the Silexx platform. The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
September 11, 2020.
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 1, 2020, Cboe Exchange, Inc.
(the ‘‘Exchange’’ or ‘‘Cboe Options’’)
filed with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
1. Purpose
The Exchange proposes to adopt fees
for a new version of the Silexx platform
(‘‘Cboe Silexx’’), effective October 1,
2020. By way of background, the Silexx
platform consists of a ‘‘front-end’’ order
entry and management trading platform
(also referred to as the ‘‘Silexx
terminal’’) for listed stocks and options
that supports both simple and complex
orders,3 and a ‘‘back-end’’ platform
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 The platform also permits users to submit orders
for commodity futures, commodity options and
2 17
PO 00000
Frm 00061
Fmt 4703
Sfmt 4703
58093
which provides a connection to the
infrastructure network. From the Silexx
platform (i.e., the collective front-end
and back-end platform), a Silexx user
has the capability to send option orders
to U.S. options exchanges, send stock
orders to U.S. stock exchanges (and
other trading centers), input parameters
to control the size, timing, and other
variables of their trades, and also
includes access to real-time options and
stock market data, as well as access to
certain historical data. The Silexx
platform is designed so that a user may
enter orders into the platform to send to
an executing broker (including Trading
Permit Holders (‘‘TPHs’’)) of its choice
with connectivity to the platform, which
broker will then send the orders to Cboe
Options (if the broker is a TPH) or other
U.S. exchanges (and trading centers) in
accordance with the user’s instructions.
Historically, users could not directly
route orders through any of the thencurrent versions of Silexx to an
exchange or trading center nor is the
platform integrated into or directly
connected to Cboe Option’s System. In
2019, the Exchange made available an
additional version of the Silexx
platform, Silexx FLEX, which supports
the trading of FLEX Options and allows
authorized Users with direct access to
the Exchange.4 Most recently, the
Exchange made a new version of the
Silexx platform available, Cboe Silexx,
which supports the trading of non-FLEX
Options and allows authorized Users
with direct access to the Exchange.5 The
Silexx front-end and back-end platforms
are a software application that is
installed locally on a user’s desktop.
Silexx grants users licenses to use the
platform, and a firm or individual does
not need to be a TPH to license the
platform. Use of any version of the
Silexx platform is completely optional.
The Exchange proposes to adopt fees
for the recently adopted Cboe Silexx.
Particularly, the Exchange proposes to
adopt a monthly fee of $275 per Login
Id for the first 8 Login IDs (i.e., Logins
Ids 1–8), a fee of $100 per each
additional Login ID for the next 8 Login
Ids (i.e., Login Ids 9–16), and provide
that each Login Id thereafter would be
free (i.e., 17+ Login Ids). The Exchange
proposes to provide that the fee will
also be waived for the first month for
other non-security products to be sent to designated
contract markets, futures commission merchants,
introducing brokers or other applicable destinations
of the users’ choice.
4 See Securities Exchange Act Release No. 87028
(September 19, 2019) 84 FR 50529 (September 25,
2019) (SR–CBOE–2019–061).
5 See Securities Exchange Act Release No. 88741
(April 24, 2020) 85 FR 24045 (April 30, 2020) (SR–
CBOE–2020–040).
E:\FR\FM\17SEN1.SGM
17SEN1
58094
Federal Register / Vol. 85, No. 181 / Thursday, September 17, 2020 / Notices
any individual market participant. The
waiver will apply to the month the
Login Id is first purchased.6
jbell on DSKJLSW7X2PROD with NOTICES
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.7 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 8 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 9 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
Additionally, the Exchange also believes
the proposed rule change is consistent
with Section 6(b)(4) of the Act,10 which
requires that Exchange rules provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
Trading Permit Holders and other
persons using its facilities.
The Exchange believes that its
proposed fees are reasonable and
appropriate as it is competitive with
similar products available throughout
the market, including a similar frontend order entry system offered by the
Exchange (i.e., the PULSe workstation),
the current Silexx platforms and a
similar front-end order entry system
offered by Nasdaq ISE (i.e., ISE’s
PrecISE terminals),11 Additionally, as
6 For example, if an individual User subscribes to
a Cboe Silexx Login ID on October 15th, the Login
ID fee would be waived for the month of October
only.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
9 Id.
10 15 U.S.C. 78f(b)(4).
11 See Silexx Fees Schedule, which assesses
between $200–$600 per month for the current
Silexx platforms, other than FLEX which is
assessed no fee. See also Cboe Options Fees
Schedule, which provides for a PULSe workstation
monthly fee of $400 per user per TPH for each of
the 1st 15 logins and $100 per month for each
additional login and $400 per month per user for
non-TPHs and see Nasdaq ISE’s Pricing Schedule,
Section 7, which provides for a PrecISE Trade
VerDate Sep<11>2014
17:37 Sep 16, 2020
Jkt 250001
discussed, use of Cboe Silexx is
discretionary and not compulsory.
Indeed, Users can choose to route
orders, including to Cboe Options,
without the use of the platform. The
Exchange is making the platform
available as a convenience to market
participants, who will continue to have
the option to use any order entry and
management system available in the
marketplace to send orders to the
Exchange and other exchanges; the
platform is merely an alternative that
will be offered by the Exchange.
Moreover, the Exchange notes market
participants have had the ability to use
and learn the new Silexx platform at no
charge for the last six months. The
Exchange believes the proposed fees are
equitable and not unfairly
discriminatory because they apply to all
market participants uniformly.
The Exchange believes the proposed
one-month fee waiver for all new
individual users of Cboe Silexx is
reasonable as such users will not have
to pay the Cboe Silexx fee for one month
and because it also acts as an incentive
for individual users to start using the
Silexx platform as a trading tool on their
trading desks. Moreover, the Silexx Fees
Schedule already provides new user
firms a one-month fee waiver of Silexx
platform fees.12 The proposal also gives
new users additional time to become
familiar with and fully acclimated to all
of the functionality that Cboe Silexx
offers. Additionally, as Cboe Silexx is a
relatively new platform, the Exchange
wishes to incentivize and encourage its
use. The proposed 1-month fee waiver
applies to all new individual users
uniformly.
of the platform will be completely
voluntary and market participants will
continue to have the flexibility to use
any entry and management tool that is
proprietary or from third-party vendors,
and/or market participants may choose
any executing brokers to enter their
orders. The proposed platform is not an
exclusive means of trading, and if
market participants believe that other
products, vendors, front-end builds, etc.
available in the marketplace are more
beneficial than the Cboe Silexx
platform, they may simply use those
products instead. Use of such
functionality is completely voluntary.
The Exchange does not believe that
the proposed rule changes will impose
any burden on intermarket competition
that is not necessary or appropriate in
furtherance of the purposes of the Act
because the proposed change applies
only to Cboe Options. Additionally,
Cboe Silexx is similar to types of
product that are widely available
throughout the industry, including from
some exchanges, at similar prices.13 To
the extent that the proposed changes
make Cboe Options a more attractive
marketplace for market participants at
other exchanges, such market
participants are welcome to become
Cboe Options market participants.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed change will not impose any
burden on intramarket competition that
is not necessary or appropriate in
furtherance of the purposes of the Act
because it relates to an optional
platform. All new market participants
are entitled to a month-fee waiver, and
all current users have been able to use
Cboe Silexx for the past six months at
no charge. The proposed fee and waiver
will apply to similarly situated
participants uniformly, as described in
detail above. Also as discussed, the use
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Terminal monthly fee of $350 per user for each of
the 1st 10 users and $100 per month for each
additional user.
12 See Silexx Fees Schedule.
PO 00000
Frm 00062
Fmt 4703
Sfmt 4703
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 14 and paragraph (f) of Rule
19b–4 15 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
13 See
supra note 14.
U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f).
14 15
E:\FR\FM\17SEN1.SGM
17SEN1
Federal Register / Vol. 85, No. 181 / Thursday, September 17, 2020 / Notices
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CBOE–2020–085 on the subject line.
jbell on DSKJLSW7X2PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2020–085. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–CBOE–2020–085 and
should be submitted on or before
October 8, 2020.
VerDate Sep<11>2014
17:37 Sep 16, 2020
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
J. Matthew DeLesDernier,
Assistant Secretary.
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 parts of such
statements.
[FR Doc. 2020–20472 Filed 9–16–20; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
Jkt 250001
58095
[Release No. 34–89832; File No. SR–NYSE–
2020–74]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
7.37 To Specify the Exchange’s Source
of Data Feeds From MIAX PEARL, LLC.
September 11, 2020.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on
September 3, 2020, New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 7.37 to specify the Exchange’s
source of data feeds from MIAX PEARL,
LLC (‘‘MIAX PEARL’’) for purposes of
order handling, order execution, order
routing, and regulatory compliance. The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization 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 those statements may be examined at
16 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
1. Purpose
The Exchange proposes to update and
amend the use of data feeds table in
Rule 7.37, which sets forth on a marketby-market basis the specific securities
information processor (‘‘SIP’’) and
proprietary data feeds that the Exchange
utilizes for the handling, execution, and
routing of orders, and for performing the
regulatory compliance checks related to
each of those functions. Specifically, the
Exchange proposes to amend the table
in Rule 7.37(e) to specify that, with
respect to MIAX PEARL, the Exchange
will receive the SIP feed as its primary
source of data for order handling, order
execution, order routing, and regulatory
compliance. The Exchange will not have
a secondary source for data from MIAX
PEARL.
The Exchange proposes that this
proposed rule change would be
operative on the day that MIAX PEARL
launches operations as an equities
exchange, which is currently expected
on September 25, 2020.4
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,5
in general, and furthers the objectives of
Section 6(b)(5),6 in particular, because it
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities, to
remove impediments to, and perfect the
mechanism of, a free and open market
and a national market system and, in
general, to protect investors and the
public interest. The Exchange believes
its proposal to amend the table in Rule
7.37(e) to include the data feed source
for MIAX PEARL will ensure that Rule
7.37 correctly identifies and publicly
states on a market-by-market basis all of
the specific SIP and proprietary data
feeds that the Exchange utilizes for the
handling, execution, and routing of
orders, and for performing the
regulatory compliance checks for each
4 See https://www.miaxoptions.com/sites/default/
files/press_release-files/MIAX_Press_Release_
08182020.pdf.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
E:\FR\FM\17SEN1.SGM
17SEN1
]]>Agencies
[Federal Register Volume 85, Number 181 (Thursday, September 17, 2020)]
[Notices]
[Pages 58093-58095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20472]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-89830; File No. SR-CBOE-2020-085]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Adopt Fees for a Recently Adopted New Version of the Silexx Platform
September 11, 2020.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on September 1, 2020, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to adopt fees for a recently adopted new version of the Silexx
platform. The text of the proposed rule change is provided in Exhibit
5.
The text of the proposed rule change is also available on the
Exchange's website (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to adopt fees for a new version of the Silexx
platform (``Cboe Silexx''), effective October 1, 2020. By way of
background, the Silexx platform consists of a ``front-end'' order entry
and management trading platform (also referred to as the ``Silexx
terminal'') for listed stocks and options that supports both simple and
complex orders,\3\ and a ``back-end'' platform which provides a
connection to the infrastructure network. From the Silexx platform
(i.e., the collective front-end and back-end platform), a Silexx user
has the capability to send option orders to U.S. options exchanges,
send stock orders to U.S. stock exchanges (and other trading centers),
input parameters to control the size, timing, and other variables of
their trades, and also includes access to real-time options and stock
market data, as well as access to certain historical data. The Silexx
platform is designed so that a user may enter orders into the platform
to send to an executing broker (including Trading Permit Holders
(``TPHs'')) of its choice with connectivity to the platform, which
broker will then send the orders to Cboe Options (if the broker is a
TPH) or other U.S. exchanges (and trading centers) in accordance with
the user's instructions. Historically, users could not directly route
orders through any of the then-current versions of Silexx to an
exchange or trading center nor is the platform integrated into or
directly connected to Cboe Option's System. In 2019, the Exchange made
available an additional version of the Silexx platform, Silexx FLEX,
which supports the trading of FLEX Options and allows authorized Users
with direct access to the Exchange.\4\ Most recently, the Exchange made
a new version of the Silexx platform available, Cboe Silexx, which
supports the trading of non-FLEX Options and allows authorized Users
with direct access to the Exchange.\5\ The Silexx front-end and back-
end platforms are a software application that is installed locally on a
user's desktop. Silexx grants users licenses to use the platform, and a
firm or individual does not need to be a TPH to license the platform.
Use of any version of the Silexx platform is completely optional.
---------------------------------------------------------------------------
\3\ The platform also permits users to submit orders for
commodity futures, commodity options and other non-security products
to be sent to designated contract markets, futures commission
merchants, introducing brokers or other applicable destinations of
the users' choice.
\4\ See Securities Exchange Act Release No. 87028 (September 19,
2019) 84 FR 50529 (September 25, 2019) (SR-CBOE-2019-061).
\5\ See Securities Exchange Act Release No. 88741 (April 24,
2020) 85 FR 24045 (April 30, 2020) (SR-CBOE-2020-040).
---------------------------------------------------------------------------
The Exchange proposes to adopt fees for the recently adopted Cboe
Silexx. Particularly, the Exchange proposes to adopt a monthly fee of
$275 per Login Id for the first 8 Login IDs (i.e., Logins Ids 1-8), a
fee of $100 per each additional Login ID for the next 8 Login Ids
(i.e., Login Ids 9-16), and provide that each Login Id thereafter would
be free (i.e., 17+ Login Ids). The Exchange proposes to provide that
the fee will also be waived for the first month for
[[Page 58094]]
any individual market participant. The waiver will apply to the month
the Login Id is first purchased.\6\
---------------------------------------------------------------------------
\6\ For example, if an individual User subscribes to a Cboe
Silexx Login ID on October 15th, the Login ID fee would be waived
for the month of October only.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\7\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \8\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \9\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. Additionally, the Exchange also believes the
proposed rule change is consistent with Section 6(b)(4) of the Act,\10\
which requires that Exchange rules provide for the equitable allocation
of reasonable dues, fees, and other charges among its Trading Permit
Holders and other persons using its facilities.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ Id.
\10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that its proposed fees are reasonable and
appropriate as it is competitive with similar products available
throughout the market, including a similar front-end order entry system
offered by the Exchange (i.e., the PULSe workstation), the current
Silexx platforms and a similar front-end order entry system offered by
Nasdaq ISE (i.e., ISE's PrecISE terminals),\11\ Additionally, as
discussed, use of Cboe Silexx is discretionary and not compulsory.
Indeed, Users can choose to route orders, including to Cboe Options,
without the use of the platform. The Exchange is making the platform
available as a convenience to market participants, who will continue to
have the option to use any order entry and management system available
in the marketplace to send orders to the Exchange and other exchanges;
the platform is merely an alternative that will be offered by the
Exchange. Moreover, the Exchange notes market participants have had the
ability to use and learn the new Silexx platform at no charge for the
last six months. The Exchange believes the proposed fees are equitable
and not unfairly discriminatory because they apply to all market
participants uniformly.
---------------------------------------------------------------------------
\11\ See Silexx Fees Schedule, which assesses between $200-$600
per month for the current Silexx platforms, other than FLEX which is
assessed no fee. See also Cboe Options Fees Schedule, which provides
for a PULSe workstation monthly fee of $400 per user per TPH for
each of the 1st 15 logins and $100 per month for each additional
login and $400 per month per user for non-TPHs and see Nasdaq ISE's
Pricing Schedule, Section 7, which provides for a PrecISE Trade
Terminal monthly fee of $350 per user for each of the 1st 10 users
and $100 per month for each additional user.
---------------------------------------------------------------------------
The Exchange believes the proposed one-month fee waiver for all new
individual users of Cboe Silexx is reasonable as such users will not
have to pay the Cboe Silexx fee for one month and because it also acts
as an incentive for individual users to start using the Silexx platform
as a trading tool on their trading desks. Moreover, the Silexx Fees
Schedule already provides new user firms a one-month fee waiver of
Silexx platform fees.\12\ The proposal also gives new users additional
time to become familiar with and fully acclimated to all of the
functionality that Cboe Silexx offers. Additionally, as Cboe Silexx is
a relatively new platform, the Exchange wishes to incentivize and
encourage its use. The proposed 1-month fee waiver applies to all new
individual users uniformly.
---------------------------------------------------------------------------
\12\ See Silexx Fees Schedule.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed change will not
impose any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because it
relates to an optional platform. All new market participants are
entitled to a month-fee waiver, and all current users have been able to
use Cboe Silexx for the past six months at no charge. The proposed fee
and waiver will apply to similarly situated participants uniformly, as
described in detail above. Also as discussed, the use of the platform
will be completely voluntary and market participants will continue to
have the flexibility to use any entry and management tool that is
proprietary or from third-party vendors, and/or market participants may
choose any executing brokers to enter their orders. The proposed
platform is not an exclusive means of trading, and if market
participants believe that other products, vendors, front-end builds,
etc. available in the marketplace are more beneficial than the Cboe
Silexx platform, they may simply use those products instead. Use of
such functionality is completely voluntary.
The Exchange does not believe that the proposed rule changes will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed change applies only to Cboe Options. Additionally, Cboe Silexx
is similar to types of product that are widely available throughout the
industry, including from some exchanges, at similar prices.\13\ To the
extent that the proposed changes make Cboe Options a more attractive
marketplace for market participants at other exchanges, such market
participants are welcome to become Cboe Options market participants.
---------------------------------------------------------------------------
\13\ See supra note 14.
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \14\ and paragraph (f) of Rule 19b-4 \15\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
[[Page 58095]]
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CBOE-2020-085 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2020-085. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2020-085 and should be submitted on
or before October 8, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-20472 Filed 9-16-20; 8:45 am]
BILLING CODE 8011-01-P
