Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule, 2681-2687 [2024-00639]
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Federal Register / Vol. 89, No. 10 / Tuesday, January 16, 2024 / Notices
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and (10) and 17 CFR 200.402(a)(3),
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STATUS:
(Authority: 5 U.S.C. 552b)
[FR Doc. 2024–00756 Filed 1–11–24; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
ddrumheller on DSK120RN23PROD with NOTICES1
[Release No. 34–99301; File No. SR–CBOE–
2024–001]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Its Fees
Schedule
January 9, 2024.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
18:57 Jan 12, 2024
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 amend
its Fees Schedule. 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/CBOELegalRegulatory
Home.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
Dated: January 11, 2024.
Vanessa A. Countryman,
Secretary.
VerDate Sep<11>2014
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January 2,
2023, 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.
Jkt 262001
1. Purpose
The Exchange proposes to amend its
Fees Schedule in connection with
certain Lead Market-Maker (‘‘LMM’’)
Incentive Programs, effective January 2,
2024. Specifically, the Exchange
proposes to amend the following: the
Mini Russell 2000 Index (‘‘MRUT’’)
options LMM Incentive Program; the
Nanos S&P 500 (‘‘NANOS’’) Index
options LMM Incentive Program; the
Global Trading Hours (‘‘GTH’’) Cboe
Volatility Index (‘‘VIX’’) options and
VIX Weekly (‘‘VIXW’’) options LMM
Incentive Programs; and the GTH Mini1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00100
Fmt 4703
SPX Index (‘‘XSP’’) LMM Incentive
Programs.
Each LMM Incentive Program
provides a rebate to Trading Permit
Holders (‘‘TPHs’’) with LMM
appointments to the respective
incentive program that meet certain
quoting standards in the applicable
series in a month. The Exchange notes
that meeting or exceeding the quoting
standards (both current and as
proposed; described in further detail
below) in each of the LMM Incentive
Program products to receive the
applicable rebate (both currently offered
and as proposed; described in further
detail below) is optional for an LMM
appointed to a program. Particularly, an
LMM appointed to an incentive program
is eligible to receive the corresponding
rebate if it satisfies the applicable
quoting standards, which the Exchange
believes encourages appointed LMMs to
provide liquidity in the applicable class
and trading session (i.e., Regular
Trading Hours (‘‘RTH’’) or GTH). The
Exchange may consider other
exceptions to the programs’ quoting
standards based on demonstrated legal
or regulatory requirements or other
mitigating circumstances. In calculating
whether an LMM appointed to an
incentive program meets the applicable
program’s quoting standards each
month, the Exchange excludes from the
calculation in that month the business
day in which the LMM missed meeting
or exceeding the quoting standards in
the highest number of the applicable
series.
MRUT LMM Incentive Program
The Exchange first proposes to amend
the current MRUT LMM Incentive
Program. Currently, the program
provides that if the appointed LMM in
MRUT provides continuous electronic
quotes during RTH that meet or exceed
the program’s heightened quoting
standards 3 in at least 97% of the series
90% of the time in a given month, the
LMM will receive a rebate for that
month in the amount of $15,000 (or prorated amount if an appointment begins
after the first trading day of the month
or ends prior to the last trading day of
the month). In addition to the rebate, if
the appointed LMM meets or exceeds
the above heightened quoting standards
in a given month, the LMM will receive
the Monthly average daily volume
(‘‘ADV’’) Payment amount that
corresponds to the level of ADV
provided by the LMM in MRUT for that
3 Located in the ‘‘MRUT LMM Incentive
Program’’ table in the Fees Schedule.
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Federal Register / Vol. 89, No. 10 / Tuesday, January 16, 2024 / Notices
month per the program’s Volume
Incentive Pool.
The Exchange now proposes to amend
the time qualification requirement for
the MRUT LMM Incentive Program.
Specifically, the Exchange proposes to
update the time qualification
requirement to require the appointed
LMM to provide continuous electronic
quotes during RTH that meet or exceed
the heightened quoting standards in at
least 97% the MRUT series 88% of the
time in a given month in order to
receive the rebate, thereby decreasing
the time qualification requirement by
2%.
The Exchange also proposes to update
the rebate amount received for meeting
the heightened quoting standards, as
proposed, in a given month in MRUT,
by decreasing the rebate amount from
$15,000 to $5,000.
Additionally, the Exchange proposes
to remove the MRUT Volume Incentive
Pool program from the Fees Schedule,
as the Exchange no longer wishes to
offer the additional volume-based
incentive program.
NANOS LMM Incentive Program
Next, the Exchange proposes to
amend the current NANOS LMM
Incentive Program.4 Currently, the
NANOS LMM Incentive Program
provides that, for NANOS, if the
appointed LMM provides continuous
electronic quotes during RTH that meet
or exceed the heightened quoting
standards 5 in at least 98% of the
NANOS series 90% of the time in a
given month, the LMM will receive a
rebate for that month in the amount of
$17,500 (or pro-rated amount if an
appointment begins after the first
trading day of the month or ends prior
to the last trading day of the month).
The heightened quoting standards are
based on the VIX Index value at the
prior market close, with three separate
value categories (i.e., VIX value at prior
close less than 20, VIX value at prior
close from 20 to 30, and VIX value at
prior close greater than 30). In addition
to the rebate, if the appointed LMM
meets or exceeds the above heightened
quoting standards in a given month, the
LMM will receive the Monthly ADV
Payment amount that corresponds to the
level of ADV provided by the LMM in
NANOS for that month per the
program’s Volume Incentive Pool.
The Exchange proposes to restructure
the NANOS LMM Incentive Program
and adopt a new set of heightened
quoting standards. The VIX Index value
categories and heightened quoting
standards proposed for NANOS options
are as follows in the table below:
Premium level
Width
Size
VIX Value at Prior Close <30
$0.00–$2.00 .....................................................................................................................................................................
$2.01–$5.00 .....................................................................................................................................................................
$5.01–$15.00 ...................................................................................................................................................................
Greater than $15.00 ........................................................................................................................................................
$0.10
0.12
0.20
0.31
500
500
250
100
0.16
0.17
0.31
0.38
300
300
150
100
VIX Value at Prior Close from ≥30
ddrumheller on DSK120RN23PROD with NOTICES1
$0.00–$2.00 .....................................................................................................................................................................
$2.01–$5.00 .....................................................................................................................................................................
$5.01–$15.00 ...................................................................................................................................................................
Greater than $15.00 ........................................................................................................................................................
The Exchange also proposes to amend
the series qualification requirement for
the NANOS LMM Incentive Program.
Specifically, the Exchange proposes to
update the series qualification
requirement to require the appointed
LMM to provide continuous electronic
quotes during RTH that meet or exceed
the heightened quoting standards in at
least 97% the NANOS series 90% of the
time in a given month in order to
receive the rebate, thereby decreasing
the series qualification requirement by
1%.
The Exchange proposes to update the
rebate amount received for meeting the
heightened quoting standards in a given
month in NANOS options, by
decreasing the rebate amount from
$17,500 to $5,000. Additionally, the
Exchange proposes to remove the
NANOS Volume Incentive Pool program
from the Fees Schedule, as the Exchange
no longer wishes to offer the additional
volume-based incentive program.
4 As part of the proposed changes, the Exchange
proposes to remove a reference to heightened
quoting standards specific to March 2022, as such
reference is now outdated.
5 Located in the ‘‘NANOS LMM Incentive
Program’’ table in the Fees Schedule.
6 Located in the ‘‘GTH1 VIX/VIXW LMM
Incentive Program’’ table in the Fees Schedule.
VerDate Sep<11>2014
18:57 Jan 12, 2024
Jkt 262001
VIX/VIXW LMM Incentive Programs
The Exchange proposes to amend its
GTH VIX/VIXW LMM Incentive
Programs. Currently, the first GTH VIX/
VIXW LMM Incentive Program (‘‘GTH1
VIX/VIXW LMM Incentive Program’’)
provides that if an LMM in VIX/VIXW
provides continuous electronic quotes
during GTH from 7:15 p.m. CST to 2:00
a.m. CST (‘‘GTH1’’) that meet or exceed
the basic quoting standards 6 in at least
99% of each of the VIX and VIXW
series, 90% of the time in a given
month, the LMM will receive a rebate
for that month in the amount of $20,000
for VIX and $15,000 for VIXW (or prorated amount if an appointment begins
after the first trading day of the month
or ends prior to the last trading day of
the month) for that month. Additionally,
if the appointed LMM provides
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
continuous electronic quotes during
GTH that meet or exceed the heightened
quoting standards 7 in at least 99% of
the VIX series, 90% of the time in a
given month, the LMM will receive a
rebate for that month of $0.02 per VIX/
VIXW contract executed in its MarketMaker capacity during RTH.
The second GTH VIX/VIXW LMM
Incentive Program (‘‘GTH2 VIX/VIXW
LMM Incentive Program’’) provides that
if the appointed LMM provides
continuous electronic quotes during
GTH from 2:00 a.m. CST to 8:15 a.m.
CST (‘‘GTH2’’) that meet or exceed the
basic quoting standards 8 in at least 99%
of each of the VIX and VIXW series,
90% of the time in a given month, the
LMM will receive a rebate for that
month in the amount of $20,000 for VIX
and $15,000 for VIXW (or pro-rated
amount if an appointment begins after
the first trading day of the month or
ends prior to the last trading day of the
7 Id.
8 Located in the ‘‘GTH2 LMM Incentive Program’’
table in the Fees Schedule.
E:\FR\FM\16JAN1.SGM
16JAN1
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Federal Register / Vol. 89, No. 10 / Tuesday, January 16, 2024 / Notices
month) for that month. Additionally, if
the appointed LMM provides
continuous electronic quotes during
GTH that meet or exceed the heighted
quoting standards 9 in at least 99% of
the VIX series, 90% of the time in a
given month, the LMM will receive a
rebate for that month of $0.02 per VIX/
VIXW contract executed in its MarketMaker capacity during RTH.
The Exchange proposes to restructure
the GTH1 and GTH2 VIX/VIXW LMM
Incentive Programs by combining the
two GTH programs into a singular GTH
VIX/VIXW LMM Incentive Program,
with one set of basic quoting standards
for VIX options and one set of basic
quoting standards for VIXW options.
The proposed program provides that, if
the appointed LMM provides
Expiring less than 15 days
Premium level
Width
GTH1 basic quoting standards (i.e., the
proposed GTH basic quoting standards)
have slightly lower size requirements in
certain instances than the current GTH2
basic quoting standards) will be the
basic quoting standards for the new
combined GTH VIX/VIXW LMM
Incentive Program. The new proposed
rebate amounts represent a slight
increase of $5,000 for VIX options and
a slight decrease of $5,000 for VIXW
options, as compared to the current
rebates in place for the GTH1 and GTH2
VIX/VIXW LMM Incentive Programs.
There are no additional heightened
quoting standards with additional
rebate(s) under the proposed program.
The proposed basic quoting standards
for VIX options are as follows in the
table below:
continuous electronic quotes during
GTH (i.e., from 7:15 p.m. CT to 8:15 a.m.
CT the next day) that meet or exceed the
basic quoting standards 10 in at least
95% of each of the VIX and VIXW
series, 90% of the time in a given
month, the LMM will receive a rebate
for that month in the amount of $25,000
for VIX and $10,000 for VIXW (or prorated amount if an appointment begins
after the first trading day of the month
or ends prior to the last trading day of
the month) for that month.
The Exchange notes that the current
basic quoting standards for the GTH1
VIX/VIXW LMM Incentive Program
(which are substantially similar to the
basic quoting standards for the GTH2
VIX/VIXW LMM Incentive Program, the
only difference being that the current
Size
Near term 15 days to 60
days
Width
I
I
Mid term 61 days to 180
days
Size
Width
I
Size
Long term 181 days or
greater
Width
I
Size
VIX Value at Prior Close <18
$0.00–$1.00 .....................
$1.01–$3.00 .....................
$3.01–$5.00 .....................
$5.01–$10.00 ...................
$10.01–$30.00 .................
Greater than $30.00 .........
$0.35
0.50
0.60
1.00
2.00
5.00
30
15
15
10
5
3
$0.25
0.35
0.35
0.80
1.50
3.00
40
25
15
10
5
3
$0.35
0.50
0.60
1.30
2.00
5.00
30
15
10
10
5
3
$0.80
0.90
1.00
2.00
3.00
5.00
5
5
5
5
3
3
0.50
0.70
0.80
2.00
3.00
5.00
15
10
5
5
1
1
1.00
1.00
1.30
2.20
5.00
10.00
5
5
5
5
1
1
0.60
1.00
1.20
2.50
5.00
10.00
10
10
5
5
1
1
1.20
1.20
1.80
3.00
7.00
10.00
5
5
5
3
1
1
VIX Value at Prior Close from 18–25
$0.00–$1.00 .....................
$1.01–$3.00 .....................
$3.01–$5.00 .....................
$5.01–$10.00 ...................
$10.01–$30.00 .................
Greater than $30.00 .........
0.50
0.50
0.80
1.50
3.00
5.00
15
10
5
5
1
1
0.35
0.50
0.50
1.00
2.50
5.00
30
20
15
5
1
1
VIX Value at Prior Close from >25
$0.00–$1.00 .....................
$1.01–$3.00 .....................
$3.01–$5.00 .....................
$5.01–$10.00 ...................
$10.01–$30.00 .................
Greater than $30.00 .........
0.80
1.00
1.20
2.00
5.00
10.00
10
10
5
5
1
1
0.50
0.75
0.90
1.50
5.00
10.00
10
10
10
5
1
1
The proposed basic quoting standards
for VIXW options are as follows in the
table below:
Less than 21 days to
expiration
Premium level
ddrumheller on DSK120RN23PROD with NOTICES1
Width
$0.00–$1.00 .....................................................................................................................
$1.01–$3.00 .....................................................................................................................
$3.01–$5.00 .....................................................................................................................
$5.01–$10.00 ...................................................................................................................
$10.01–$30.00 .................................................................................................................
9 Id.
VerDate Sep<11>2014
Size
$1.00
1.50
2.50
4.00
6.00
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E:\FR\FM\16JAN1.SGM
Width
10
10
3
1
1
10 Located in the proposed ‘‘GTH VIX/VIXW
LMM Incentive Program’’ table in the Fees
Schedule.
18:57 Jan 12, 2024
21 days or greater to
expiration
16JAN1
$1.50
2.50
4.00
6.00
10.00
Size
10
10
3
1
1
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Federal Register / Vol. 89, No. 10 / Tuesday, January 16, 2024 / Notices
Less than 21 days to
expiration
Premium level
Width
Greater than $30.00 ........................................................................................................
21 days or greater to
expiration
Size
Width
Size
10.00
1
10.00
1
1.50
2.50
4.00
6.00
10.00
10.00
5
5
1
1
1
1
2.00
4.00
5.00
8.00
10.00
10.00
5
5
1
1
1
1
10.00
10.00
10.00
10.00
10.00
10.00
1
1
1
1
1
1
10.00
10.00
10.00
10.00
10.00
10.00
1
1
1
1
1
1
VIX Value at Prior Close from 18–25
$0.00–$1.00 .....................................................................................................................
$1.01–$3.00 .....................................................................................................................
$3.01–$5.00 .....................................................................................................................
$5.01–$10.00 ...................................................................................................................
$10.01–$30.00 .................................................................................................................
Greater than $30.00 ........................................................................................................
VIX Value at Prior Close from >25
$0.00–$1.00 .....................................................................................................................
$1.01–$3.00 .....................................................................................................................
$3.01–$5.00 .....................................................................................................................
$5.01–$10.00 ...................................................................................................................
$10.01–$30.00 .................................................................................................................
Greater than $30.00 ........................................................................................................
GTH1 and GTH2 XSP LMM Incentive
Programs
Lastly, the Exchange proposes to
amend the XSP LMM Incentive
Programs. The GTH1 XSP LMM
Incentive Program provides that if the
appointed LMM provides continuous
electronic quotes during GTH1 that
meet or exceed the heightened quoting
standards 11 in at least 85% of the series
90% of the time in a given month, the
LMM will receive (i) a rebate for that
month in the amount of $20,000 (or prorated amounts if an appointment begins
after the first trading day of the month
or ends prior to the last trading day of
the month) and (ii) a rebate for that
month of $0.03 per XSP contract
executed in a Market-Maker capacity
which provide liquidity in the Simple
Book during RTH. The GTH2 XSP LMM
Incentive Program provides that if an
LMM appointed to the Program
provides continuous electronic quotes
during GTH2 that meet or exceed the
heightened quoting standards 12 (which
are the same as the heightened quoting
standards in the GTH1 XSP LMM
Incentive Program) in at least 85% of
the series 90% of the time in a given
month, the LMM will receive a payment
for that month in the amount of $25,000
(or pro-rated amount if an appointment
begins after the first trading day of the
month or ends prior to the last trading
Expiring 7 days or less
Near term 8 days to 60
days
Premium level
Width
I
Size
Width
I
day of the month). For each of the XSP
LMM Incentives Programs, the
heightened quoting standards are based
on the VIX Index value at the prior
market close, with three separate value
categories (i.e., VIX value at prior close
less than 20, VIX value at prior close
from 20 to 30, and VIX value at prior
close greater than 30).
The Exchange proposes to restructure
the GTH1 and GTH2 XSP LMM
Incentive Programs and adopt a new set
of heightened quoting standards (which
will apply to both programs). The
proposed VIX Index value categories
and heightened quoting standards for
XSP options during each of GTH1 and
GTH2 are as follows in the table below:
Mid term 61 days to 270
days
Size
Width
I
Long term 271 to 500
days
Size
Width
I
Size
VIX Value at Prior Close <30
$0.01–$1.00 .....................
$1.01–$5.00 .....................
$5.01–$8.00 .....................
$8.01–$12.00 ...................
$12.01–$20.00 .................
Greater than $20.00 .........
$0.10
0.15
0.25
0.60
1.00
2.00
5
5
5
5
5
5
$0.11
0.15
0.30
0.80
1.30
2.40
5
5
5
5
5
5
$0.15
0.20
0.40
1.10
1.80
2.80
5
5
5
5
5
5
$0.25
0.30
0.60
1.35
2.20
3.60
5
5
5
5
5
5
0.20
0.25
0.45
1.20
2.00
3.20
5
5
5
5
5
5
0.30
0.40
0.70
1.50
2.40
4.00
5
5
5
5
5
5
ddrumheller on DSK120RN23PROD with NOTICES1
VIX Value at Prior Close ≥30
$0.01–$1.00 .....................
$1.01–$5.00 .....................
$5.01–$8.00 .....................
$8.01–$12.00 ...................
$12.01–$20.00 .................
Greater than $20.00 .........
0.15
0.18
0.25
0.60
1.20
2.40
11 Located in the ‘‘GTH1 XSP LMM Incentive
Program’’ table in the Fees Schedule.
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19:44 Jan 12, 2024
Jkt 262001
5
5
5
5
5
5
0.16
0.20
0.30
0.90
1.50
2.80
5
5
5
5
5
5
12 Located in the ‘‘GTH2 XSP LMM Incentive
Program’’ table in the Fees Schedule.
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Federal Register / Vol. 89, No. 10 / Tuesday, January 16, 2024 / Notices
ddrumheller on DSK120RN23PROD with NOTICES1
The Exchange also proposes to
increase the rebates offered by the GTH1
and GTH2 XSP LMM Incentive
Programs to an LMM appointed to the
program for meeting the heightened
quoting standards in a given month. The
Exchange proposes to decrease such
rebates from $20,000 to $15,000 for the
GTH1 XSP LMM Incentive Program, and
from $25,000 to $15,000 for the GTH2
XSP LMM Incentive Program.
Additionally, for the GTH1 XSP LMM
Incentive Program, the Exchange
proposes to eliminate the additional
credit of $0.03 per contract applied to
all XSP contracts executed in a MarketMaker capacity which provide liquidity
in the Simple Book during RTH.
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.13 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 14 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) 15 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange also believes the
proposed rule change is consistent with
Section 6(b)(4) of the Act,16 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 it is
reasonable to amend the monthly rebate
amounts applicable to the MRUT,
NANOS, GTH VIX/VIXW, and GTH1
and GTH2 XSP LMM Incentive
Programs. The Exchange notes that
LMMs appointed to the respective
13 15
14 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
15 Id.
16 15
U.S.C. 78f(b)(4).
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18:57 Jan 12, 2024
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programs will continue to receive a
monthly rebate. The Exchange believes
that the proposed rebate amounts are
reasonably designed to continue to
incentivize an LMM appointed to the
respective program to meet the
applicable quoting standards for MRUT,
NANOS, VIX/VIXW, and XSP options,
thereby providing liquid and active
markets, which facilitates tighter
spreads, increased trading
opportunities, and overall enhanced
market quality to the benefit of all
market participants.
The Exchange further believes that the
proposed rule change to amend the
rebate amounts received for MRUT
($5,000), NANOS ($5,000), VIX
($25,000), VIXW ($10,000), XSP
($15,000 for each of GTH1 and GTH2)
options is reasonable because they are
comparable to the rebates offered by
other LMM Incentive Programs offered
by the Exchange. For example, the
SPESG LMM Program currently offers
$10,000 to appointed LMMs for SPESG
options if the heightened quoting
standards are met in a given month. The
Exchange believes the amount of the
rebate for each LMM Program remains
commiserate with the quoting
requirements of each of the LMM
Incentive Programs, of which some
standards are being restructured, as
proposed.
Similarly, the Exchange believes that
the proposed rule changes to eliminate
the volume incentive pool programs for
the MRUT and NANOS LMM Incentive
Programs and to eliminate the
additional per contract credit incentives
for the GTH VIX/VIXW and GTH1 XSP
LMM Incentive Programs are reasonable
because it is consistent with the rebate
structures currently in place for other
LMM Incentive Programs, in that most
do not offer a volume incentive pool
program or additional per contract
credit incentive. The Exchange notes
that it is not required to maintain the
volume incentive pool or additional per
contract credit incentive, and now
wishes to eliminate them from the
respective programs.
The Exchange believes it is reasonable
to decrease the series requirement for
the NANOS and VIX/VIXW LMM
Incentive Programs, and decrease the
time requirement for MRUT LMM
Incentive Program, as such changes are
reasonably designed to slightly ease the
difficulty in meeting the heightened
quoting standards offered under these
programs (for which an appointed LMM
receives the respective rebates), which,
in turn, provides increased incentive for
LMMs appointed to these programs to
provide significant liquidity in NANOS,
VIX/VIXW, and MRUT options. Such
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Fmt 4703
Sfmt 4703
2685
liquidity benefits all market participants
by providing more trading
opportunities, tighter spreads, and
added market transparency and price
discovery, and signals to other market
participants to direct their order flow to
those markets, thereby contributing to
robust levels of liquidity.
Additionally, the Exchange believes
that it is reasonable to restructure the
VIX Index value categories and amend
widths and sizes in the heightened
quoting standards under the NANOS,
VIX/VIXW and XSP LMM Incentive
Programs, as these proposed new
quoting requirements are overall
reasonably designed to continue to
encourage LMMs appointed to the
respective incentive programs to
provide significant liquidity in NANOS,
VIX/VIXW and XSP options, which
benefits investors overall by providing
more trading opportunities, tighter
spreads, and added market transparency
and price discovery. Further, by
restructuring the programs, the
Exchange believes that the proposed
rule changes are reasonably designed to
reflect then-current market conditions
and market characteristics in NANOS,
VIX/VIXW and XSP options where the
VIX Index may be experiencing higher
volatility, and thus encourage LMMs
appointed to the programs to meet the
quoting standards to receive a rebate.
Additionally, the proposed rule change
is, in light of the restructuring of VIX
Index value categories, generally
designed to further align the lesser
premium quote widths and size
standards for NANOS, VIX/VIXW and
XSP options with the more expensive
premium quote width and size
standards, in order to incentivize an
increase in quoting activity and the
provision of tighter markets for all
premium levels.
The Exchange also believes the
proposed change to adopt a singular
GTH VIX/VIXW LMM Incentive
Program (as compared to separate GTH1
and GTH2 VIX/VIXW LMM Incentive
Programs) is reasonable. The Exchange
believes the proposed changes are
reasonably designed to continue to
incentivize appointed LMMs to meet the
proposed quoting standards for VIX/
VIXW, thereby providing liquid and
active markets, which facilitates tighter
spreads, increased trading
opportunities, and overall enhanced
market quality to the benefit of all
market participants. Additionally, the
Exchange believes that the proposed
widths and sizes for the singular
program are reasonable because they
remain aligned with the current
heightened standards in each program.
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ddrumheller on DSK120RN23PROD with NOTICES1
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Federal Register / Vol. 89, No. 10 / Tuesday, January 16, 2024 / Notices
The Exchange believes that the
proposed changes to the LMM Incentive
Programs are equitable and not unfairly
discriminatory. Specifically, the
changes to the LMM Incentive Program
will apply equally to any and all TPHs
with LMM appointments to the MRUT,
NANOS, GTH VIX/VIXW, and GTH1
and GTH2 XSP LMM Incentive
Programs, as applicable, that seek to
meet the programs’ quoting standards in
order to receive the rebates (as
proposed) offered under each respective
program. The Exchange additionally
notes that, if an LMM appointed to any
of the LMM Incentive Programs does not
satisfy the corresponding heightened
quoting standard for any given month,
then it simply will not receive the rebate
offered by the respective program for
that month.
Regarding each of the LMM Incentive
Programs generally, the Exchange
believes it is reasonable, equitable and
not unfairly discriminatory to continue
to offer these financial incentives,
including as amended, to LMMs
appointed to the programs, because it
benefits all market participants trading
in the corresponding products during
RTH (for MRUT and NANOS) and GTH
(for VIX/VIXW and XSP). These
incentive programs encourage the
LMMs appointed to such programs to
satisfy the applicable quoting standards,
which may increase liquidity and
provide more trading opportunities and
tighter spreads. Indeed, the Exchange
notes that these LMMs serve a crucial
role in providing quotes and the
opportunity for market participants to
trade MRUT, NANOS, VIX/VIXW, and
XSP options, as applicable, which can
lead to increased volume, providing for
robust markets. The Exchange
ultimately offers the LMM Incentive
Programs, as amended, to sufficiently
incentivize LMMs appointed to each
incentive program to provide key
liquidity and active markets in the
corresponding program products during
the corresponding trading sessions, and
believes that these incentive programs,
as amended, will continue to encourage
increased quoting to add liquidity in
each of the corresponding program
products, thereby protecting investors
and the public interest. The Exchange
also notes that an LMM appointed to an
incentive program may undertake added
costs each month to satisfy that
heightened quoting standards (e.g.,
having to purchase additional logical
connectivity).
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
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18:57 Jan 12, 2024
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any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. First, the
Exchange believes the proposed rule
change does impose any burden on
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Particularly,
the proposed changes to existing LMM
Incentive Programs will apply to all
LMMs appointed to the applicable
program classes (i.e., MRUT, NANOS,
VIX/VIXW, and XSP) in a uniform
manner. To the extent these LMMs
appointed to an incentive program
receive a benefit that other market
participants do not, as stated, these
LMMs in their role as Mark-Makers on
the Exchange have different obligations
and are held to different standards. For
example, Market-Makers play a crucial
role in providing active and liquid
markets in their appointed products,
thereby providing a robust market
which benefits all market participants.
Such Market-Makers also have
obligations and regulatory requirements
that other participants do not have. The
Exchange also notes that an LMM
appointed to an incentive program may
undertake added costs each month to
satisfy that heightened quoting
standards (e.g., having to purchase
additional logical connectivity). The
Exchange also notes that the incentive
programs are designed to attract
additional order flow to the Exchange,
wherein greater liquidity benefits all
market participants by providing more
trading opportunities, tighter spreads,
and added market transparency and
price discovery, and signals to other
market participants to direct their order
flow to those markets, thereby
contributing to robust levels of liquidity.
As a result, the Exchange believes that
the proposed change furthers the
Commission’s goal in adopting
Regulation NMS of fostering
competition among orders, which
promotes ‘‘more efficient pricing of
individual stocks for all types of orders,
large and small.’’ 17
The Exchange does not believe that
the proposed rule change will impose
any burden on intermarket competition
that is not necessary or appropriate in
furtherance of the purposes of the Act
as the LMM Incentive Programs apply
only to transactions in products
exclusively listed on the Exchange. As
noted above, the incentive programs are
designed to attract additional order flow
to the Exchange, wherein greater
liquidity benefits all market participants
17 See Securities Exchange Act Release No. 51808,
70 FR 37495, 37498–99 (June 29, 2005) (S7–10–04)
(Final Rule).
PO 00000
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Fmt 4703
Sfmt 4703
by providing more trading
opportunities, tighter spreads, and
added market transparency and price
discovery, and signals to other market
participants to direct their order flow to
those markets, thereby contributing to
robust levels of liquidity. The Exchange
notes that it operates in a highly
competitive market. TPHs have
numerous alternative venues that they
may participate on and direct their
order flow, including 16 other options
exchanges, as well as off-exchange
venues, where competitive products are
available for trading. Based on publicly
available information, no single options
exchange has more than 12% of the
market share.18 Therefore, no exchange
possesses significant pricing power in
the execution of option order flow.
Indeed, participants can readily choose
to send their orders to other exchange,
and, additionally off-exchange venues,
if they deem fee levels at those other
venues to be more favorable. Moreover,
the Commission has repeatedly
expressed its preference for competition
over regulatory intervention in
determining prices, products, and
services in the securities markets.
Specifically, in Regulation NMS, the
Commission highlighted the importance
of market forces in determining prices
and SRO revenues and, also, recognized
that current regulation of the market
system ‘‘has been remarkably successful
in promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 19 The
fact that this market is competitive has
also long been recognized by the courts.
In NetCoalition v. Securities and
Exchange Commission, the D.C. Circuit
stated as follows: ‘‘[n]o one disputes
that competition for order flow is
‘fierce.’ . . . As the SEC explained, ‘[i]n
the U.S. national market system, buyers
and sellers of securities, and the brokerdealers that act as their order-routing
agents, have a wide range of choices of
where to route orders for execution’;
[and] ‘no exchange can afford to take its
market share percentages for granted’
because ‘no exchange possesses a
monopoly, regulatory or otherwise, in
the execution of order flow from broker
dealers’. . . .’’.20 Accordingly, the
Exchange does not believe its proposed
18 See Cboe Global Markets U.S. Options Market
Volume Summary, Month-to-Date (December 18,
2023), available at https://markets.cboe.com/us/
options/market_statistics/.
19 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
20 See NetCoalition v. SEC, 615 F.3d 525, 539
(D.C. Cir. 2010) (quoting Securities Exchange Act
Release No. 59039 (December 2, 2008), 73 FR
74770, 74782–83 (December 9, 2008) (SR–
NYSEArca–2006–21)).
E:\FR\FM\16JAN1.SGM
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Federal Register / Vol. 89, No. 10 / Tuesday, January 16, 2024 / Notices
fee change imposes any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
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 21 and paragraph (f) of Rule
19b–4 22 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.
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:
ddrumheller on DSK120RN23PROD with NOTICES1
Electronic Comments
• 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–2024–001 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–2024–001. 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
21 15
22 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Sep<11>2014
18:57 Jan 12, 2024
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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–CBOE–2024–001 and should be
submitted on or before February 6, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–00639 Filed 1–12–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No. IC–
35087; 812–15495]
Elevation Series Trust and Sovereign’s
Capital Management, LLC
January 9, 2024.
Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’).
ACTION: Notice.
AGENCY:
Notice of an application under section
6(c) of the Investment Company Act of
1940 (‘‘Act’’) for an exemption from
section 15(a) of the Act, as well as from
certain disclosure requirements in rule
20a–1 under the Act, Item 19(a)(3) of
Form N–1A, Items 22(c)(1)(ii),
22(c)(1)(iii), 22(c)(8) and 22(c)(9) of
Schedule 14A under the Securities
Exchange Act of 1934, and Sections 6–
07(2)(a), (b), and (c) of Regulation S–X
(‘‘Disclosure Requirements’’).
SUMMARY OF APPLICATION: The requested
exemption would permit Applicants to
23 17
Jkt 262001
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Frm 00106
Fmt 4703
Sfmt 4703
2687
enter into and materially amend
subadvisory agreements with certain
subadvisors without shareholder
approval and grant relief from the
Disclosure Requirements as they relate
to fees paid to the subadvisors.
APPLICANTS: Elevation Series Trust and
Sovereign’s Capital Management, LLC.
FILING DATES: The application was filed
on August 10, 2023, and amended on
November 30, 2023.
HEARING OR NOTIFICATION OF HEARING: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing on any application by
emailing the SEC’s Secretary at
Secretarys-Office@sec.gov and serving
the Applicants with a copy of the
request by email, if an email address is
listed for the relevant Applicant below,
or personally or by mail, if a physical
address is listed for the relevant
Applicant below. Hearing requests
should be received by the Commission
by 5:30 p.m. on February 5, 2024, and
should be accompanied by proof of
service on the Applicants, in the form
of an affidavit, or, for lawyers, a
certificate of service. Pursuant to rule 0–
5 under the Act, hearing requests should
state the nature of the writer’s interest,
any facts bearing upon the desirability
of a hearing on the matter, the reason for
the request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
emailing the Commission’s Secretary.
ADDRESSES: The Commission:
Secretarys-Office@sec.gov. Applicants:
JoAnn M. Strasser, JoAnn.Strasser@
thompsonhine.com and Christopher
Moore, Elevation Series Trust c/o
Sovereign’s Capital Management, LLC,
1700 Broadway, Suite 1850, Denver, CO
80290.
FOR FURTHER INFORMATION CONTACT: Jean
E. Minarick, Senior Counsel, or Kyle R.
Ahlgren, Branch Chief, at (202) 551–
6825 (Division of Investment
Management, Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: For
Applicants’ representations, legal
analysis, and conditions, please refer to
Applicants’ amended application, dated
November 30, 2023, which may be
obtained via the Commission’s website
by searching for the file number at the
top of this document, or for an
Applicant using the Company name
search field on the SEC’s EDGAR
system.
The SEC’s EDGAR system may be
searched at https://www.sec.gov/edgar/
searchedgar/legacy/
companysearch.html. You may also call
the SEC’s Public Reference Room at
(202) 551–8090.
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]]>Agencies
[Federal Register Volume 89, Number 10 (Tuesday, January 16, 2024)]
[Notices]
[Pages 2681-2687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00639]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99301; File No. SR-CBOE-2024-001]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fees Schedule
January 9, 2024.
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 January 2, 2023, 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 amend its Fees Schedule. 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 amend its Fees Schedule in connection with
certain Lead Market-Maker (``LMM'') Incentive Programs, effective
January 2, 2024. Specifically, the Exchange proposes to amend the
following: the Mini Russell 2000 Index (``MRUT'') options LMM Incentive
Program; the Nanos S&P 500 (``NANOS'') Index options LMM Incentive
Program; the Global Trading Hours (``GTH'') Cboe Volatility Index
(``VIX'') options and VIX Weekly (``VIXW'') options LMM Incentive
Programs; and the GTH Mini-SPX Index (``XSP'') LMM Incentive Programs.
Each LMM Incentive Program provides a rebate to Trading Permit
Holders (``TPHs'') with LMM appointments to the respective incentive
program that meet certain quoting standards in the applicable series in
a month. The Exchange notes that meeting or exceeding the quoting
standards (both current and as proposed; described in further detail
below) in each of the LMM Incentive Program products to receive the
applicable rebate (both currently offered and as proposed; described in
further detail below) is optional for an LMM appointed to a program.
Particularly, an LMM appointed to an incentive program is eligible to
receive the corresponding rebate if it satisfies the applicable quoting
standards, which the Exchange believes encourages appointed LMMs to
provide liquidity in the applicable class and trading session (i.e.,
Regular Trading Hours (``RTH'') or GTH). The Exchange may consider
other exceptions to the programs' quoting standards based on
demonstrated legal or regulatory requirements or other mitigating
circumstances. In calculating whether an LMM appointed to an incentive
program meets the applicable program's quoting standards each month,
the Exchange excludes from the calculation in that month the business
day in which the LMM missed meeting or exceeding the quoting standards
in the highest number of the applicable series.
MRUT LMM Incentive Program
The Exchange first proposes to amend the current MRUT LMM Incentive
Program. Currently, the program provides that if the appointed LMM in
MRUT provides continuous electronic quotes during RTH that meet or
exceed the program's heightened quoting standards \3\ in at least 97%
of the series 90% of the time in a given month, the LMM will receive a
rebate for that month in the amount of $15,000 (or pro-rated amount if
an appointment begins after the first trading day of the month or ends
prior to the last trading day of the month). In addition to the rebate,
if the appointed LMM meets or exceeds the above heightened quoting
standards in a given month, the LMM will receive the Monthly average
daily volume (``ADV'') Payment amount that corresponds to the level of
ADV provided by the LMM in MRUT for that
[[Page 2682]]
month per the program's Volume Incentive Pool.
---------------------------------------------------------------------------
\3\ Located in the ``MRUT LMM Incentive Program'' table in the
Fees Schedule.
---------------------------------------------------------------------------
The Exchange now proposes to amend the time qualification
requirement for the MRUT LMM Incentive Program. Specifically, the
Exchange proposes to update the time qualification requirement to
require the appointed LMM to provide continuous electronic quotes
during RTH that meet or exceed the heightened quoting standards in at
least 97% the MRUT series 88% of the time in a given month in order to
receive the rebate, thereby decreasing the time qualification
requirement by 2%.
The Exchange also proposes to update the rebate amount received for
meeting the heightened quoting standards, as proposed, in a given month
in MRUT, by decreasing the rebate amount from $15,000 to $5,000.
Additionally, the Exchange proposes to remove the MRUT Volume
Incentive Pool program from the Fees Schedule, as the Exchange no
longer wishes to offer the additional volume-based incentive program.
NANOS LMM Incentive Program
Next, the Exchange proposes to amend the current NANOS LMM
Incentive Program.\4\ Currently, the NANOS LMM Incentive Program
provides that, for NANOS, if the appointed LMM provides continuous
electronic quotes during RTH that meet or exceed the heightened quoting
standards \5\ in at least 98% of the NANOS series 90% of the time in a
given month, the LMM will receive a rebate for that month in the amount
of $17,500 (or pro-rated amount if an appointment begins after the
first trading day of the month or ends prior to the last trading day of
the month). The heightened quoting standards are based on the VIX Index
value at the prior market close, with three separate value categories
(i.e., VIX value at prior close less than 20, VIX value at prior close
from 20 to 30, and VIX value at prior close greater than 30). In
addition to the rebate, if the appointed LMM meets or exceeds the above
heightened quoting standards in a given month, the LMM will receive the
Monthly ADV Payment amount that corresponds to the level of ADV
provided by the LMM in NANOS for that month per the program's Volume
Incentive Pool.
---------------------------------------------------------------------------
\4\ As part of the proposed changes, the Exchange proposes to
remove a reference to heightened quoting standards specific to March
2022, as such reference is now outdated.
\5\ Located in the ``NANOS LMM Incentive Program'' table in the
Fees Schedule.
---------------------------------------------------------------------------
The Exchange proposes to restructure the NANOS LMM Incentive
Program and adopt a new set of heightened quoting standards. The VIX
Index value categories and heightened quoting standards proposed for
NANOS options are as follows in the table below:
------------------------------------------------------------------------
Premium level Width Size
------------------------------------------------------------------------
VIX Value at Prior Close <30
------------------------------------------------------------------------
$0.00-$2.00................................... $0.10 500
$2.01-$5.00................................... 0.12 500
$5.01-$15.00.................................. 0.20 250
Greater than $15.00........................... 0.31 100
------------------------------------------------------------------------
VIX Value at Prior Close from >=30
------------------------------------------------------------------------
$0.00-$2.00................................... 0.16 300
$2.01-$5.00................................... 0.17 300
$5.01-$15.00.................................. 0.31 150
Greater than $15.00........................... 0.38 100
------------------------------------------------------------------------
The Exchange also proposes to amend the series qualification
requirement for the NANOS LMM Incentive Program. Specifically, the
Exchange proposes to update the series qualification requirement to
require the appointed LMM to provide continuous electronic quotes
during RTH that meet or exceed the heightened quoting standards in at
least 97% the NANOS series 90% of the time in a given month in order to
receive the rebate, thereby decreasing the series qualification
requirement by 1%.
The Exchange proposes to update the rebate amount received for
meeting the heightened quoting standards in a given month in NANOS
options, by decreasing the rebate amount from $17,500 to $5,000.
Additionally, the Exchange proposes to remove the NANOS Volume
Incentive Pool program from the Fees Schedule, as the Exchange no
longer wishes to offer the additional volume-based incentive program.
VIX/VIXW LMM Incentive Programs
The Exchange proposes to amend its GTH VIX/VIXW LMM Incentive
Programs. Currently, the first GTH VIX/VIXW LMM Incentive Program
(``GTH1 VIX/VIXW LMM Incentive Program'') provides that if an LMM in
VIX/VIXW provides continuous electronic quotes during GTH from 7:15
p.m. CST to 2:00 a.m. CST (``GTH1'') that meet or exceed the basic
quoting standards \6\ in at least 99% of each of the VIX and VIXW
series, 90% of the time in a given month, the LMM will receive a rebate
for that month in the amount of $20,000 for VIX and $15,000 for VIXW
(or pro-rated amount if an appointment begins after the first trading
day of the month or ends prior to the last trading day of the month)
for that month. Additionally, if the appointed LMM provides continuous
electronic quotes during GTH that meet or exceed the heightened quoting
standards \7\ in at least 99% of the VIX series, 90% of the time in a
given month, the LMM will receive a rebate for that month of $0.02 per
VIX/VIXW contract executed in its Market-Maker capacity during RTH.
---------------------------------------------------------------------------
\6\ Located in the ``GTH1 VIX/VIXW LMM Incentive Program'' table
in the Fees Schedule.
\7\ Id.
---------------------------------------------------------------------------
The second GTH VIX/VIXW LMM Incentive Program (``GTH2 VIX/VIXW LMM
Incentive Program'') provides that if the appointed LMM provides
continuous electronic quotes during GTH from 2:00 a.m. CST to 8:15 a.m.
CST (``GTH2'') that meet or exceed the basic quoting standards \8\ in
at least 99% of each of the VIX and VIXW series, 90% of the time in a
given month, the LMM will receive a rebate for that month in the amount
of $20,000 for VIX and $15,000 for VIXW (or pro-rated amount if an
appointment begins after the first trading day of the month or ends
prior to the last trading day of the
[[Page 2683]]
month) for that month. Additionally, if the appointed LMM provides
continuous electronic quotes during GTH that meet or exceed the
heighted quoting standards \9\ in at least 99% of the VIX series, 90%
of the time in a given month, the LMM will receive a rebate for that
month of $0.02 per VIX/VIXW contract executed in its Market-Maker
capacity during RTH.
---------------------------------------------------------------------------
\8\ Located in the ``GTH2 LMM Incentive Program'' table in the
Fees Schedule.
\9\ Id.
---------------------------------------------------------------------------
The Exchange proposes to restructure the GTH1 and GTH2 VIX/VIXW LMM
Incentive Programs by combining the two GTH programs into a singular
GTH VIX/VIXW LMM Incentive Program, with one set of basic quoting
standards for VIX options and one set of basic quoting standards for
VIXW options. The proposed program provides that, if the appointed LMM
provides continuous electronic quotes during GTH (i.e., from 7:15 p.m.
CT to 8:15 a.m. CT the next day) that meet or exceed the basic quoting
standards \10\ in at least 95% of each of the VIX and VIXW series, 90%
of the time in a given month, the LMM will receive a rebate for that
month in the amount of $25,000 for VIX and $10,000 for VIXW (or pro-
rated amount if an appointment begins after the first trading day of
the month or ends prior to the last trading day of the month) for that
month.
---------------------------------------------------------------------------
\10\ Located in the proposed ``GTH VIX/VIXW LMM Incentive
Program'' table in the Fees Schedule.
---------------------------------------------------------------------------
The Exchange notes that the current basic quoting standards for the
GTH1 VIX/VIXW LMM Incentive Program (which are substantially similar to
the basic quoting standards for the GTH2 VIX/VIXW LMM Incentive
Program, the only difference being that the current GTH1 basic quoting
standards (i.e., the proposed GTH basic quoting standards) have
slightly lower size requirements in certain instances than the current
GTH2 basic quoting standards) will be the basic quoting standards for
the new combined GTH VIX/VIXW LMM Incentive Program. The new proposed
rebate amounts represent a slight increase of $5,000 for VIX options
and a slight decrease of $5,000 for VIXW options, as compared to the
current rebates in place for the GTH1 and GTH2 VIX/VIXW LMM Incentive
Programs. There are no additional heightened quoting standards with
additional rebate(s) under the proposed program.
The proposed basic quoting standards for VIX options are as follows
in the table below:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Expiring less than 15 Near term 15 days to 60 Mid term 61 days to 180 Long term 181 days or
days days days greater
Premium level -------------------------------------------------------------------------------------------------------
Width Size Width Size Width Size Width Size
--------------------------------------------------------------------------------------------------------------------------------------------------------
VIX Value at Prior Close <18
--------------------------------------------------------------------------------------------------------------------------------------------------------
$0.00-$1.00..................................... $0.35 30 $0.25 40 $0.35 30 $0.80 5
$1.01-$3.00..................................... 0.50 15 0.35 25 0.50 15 0.90 5
$3.01-$5.00..................................... 0.60 15 0.35 15 0.60 10 1.00 5
$5.01-$10.00.................................... 1.00 10 0.80 10 1.30 10 2.00 5
$10.01-$30.00................................... 2.00 5 1.50 5 2.00 5 3.00 3
Greater than $30.00............................. 5.00 3 3.00 3 5.00 3 5.00 3
--------------------------------------------------------------------------------------------------------------------------------------------------------
VIX Value at Prior Close from 18-25
--------------------------------------------------------------------------------------------------------------------------------------------------------
$0.00-$1.00..................................... 0.50 15 0.35 30 0.50 15 1.00 5
$1.01-$3.00..................................... 0.50 10 0.50 20 0.70 10 1.00 5
$3.01-$5.00..................................... 0.80 5 0.50 15 0.80 5 1.30 5
$5.01-$10.00.................................... 1.50 5 1.00 5 2.00 5 2.20 5
$10.01-$30.00................................... 3.00 1 2.50 1 3.00 1 5.00 1
Greater than $30.00............................. 5.00 1 5.00 1 5.00 1 10.00 1
--------------------------------------------------------------------------------------------------------------------------------------------------------
VIX Value at Prior Close from 25
--------------------------------------------------------------------------------------------------------------------------------------------------------
$0.00-$1.00..................................... 0.80 10 0.50 10 0.60 10 1.20 5
$1.01-$3.00..................................... 1.00 10 0.75 10 1.00 10 1.20 5
$3.01-$5.00..................................... 1.20 5 0.90 10 1.20 5 1.80 5
$5.01-$10.00.................................... 2.00 5 1.50 5 2.50 5 3.00 3
$10.01-$30.00................................... 5.00 1 5.00 1 5.00 1 7.00 1
Greater than $30.00............................. 10.00 1 10.00 1 10.00 1 10.00 1
--------------------------------------------------------------------------------------------------------------------------------------------------------
The proposed basic quoting standards for VIXW options are as
follows in the table below:
----------------------------------------------------------------------------------------------------------------
Less than 21 days to 21 days or greater to
expiration expiration
Premium level ---------------------------------------------------
Width Size Width Size
----------------------------------------------------------------------------------------------------------------
$0.00-$1.00................................................. $1.00 10 $1.50 10
$1.01-$3.00................................................. 1.50 10 2.50 10
$3.01-$5.00................................................. 2.50 3 4.00 3
$5.01-$10.00................................................ 4.00 1 6.00 1
$10.01-$30.00............................................... 6.00 1 10.00 1
[[Page 2684]]
Greater than $30.00......................................... 10.00 1 10.00 1
----------------------------------------------------------------------------------------------------------------
VIX Value at Prior Close from 18-25
----------------------------------------------------------------------------------------------------------------
$0.00-$1.00................................................. 1.50 5 2.00 5
$1.01-$3.00................................................. 2.50 5 4.00 5
$3.01-$5.00................................................. 4.00 1 5.00 1
$5.01-$10.00................................................ 6.00 1 8.00 1
$10.01-$30.00............................................... 10.00 1 10.00 1
Greater than $30.00......................................... 10.00 1 10.00 1
----------------------------------------------------------------------------------------------------------------
VIX Value at Prior Close from 25
----------------------------------------------------------------------------------------------------------------
$0.00-$1.00................................................. 10.00 1 10.00 1
$1.01-$3.00................................................. 10.00 1 10.00 1
$3.01-$5.00................................................. 10.00 1 10.00 1
$5.01-$10.00................................................ 10.00 1 10.00 1
$10.01-$30.00............................................... 10.00 1 10.00 1
Greater than $30.00......................................... 10.00 1 10.00 1
----------------------------------------------------------------------------------------------------------------
GTH1 and GTH2 XSP LMM Incentive Programs
Lastly, the Exchange proposes to amend the XSP LMM Incentive
Programs. The GTH1 XSP LMM Incentive Program provides that if the
appointed LMM provides continuous electronic quotes during GTH1 that
meet or exceed the heightened quoting standards \11\ in at least 85% of
the series 90% of the time in a given month, the LMM will receive (i) a
rebate for that month in the amount of $20,000 (or pro-rated amounts if
an appointment begins after the first trading day of the month or ends
prior to the last trading day of the month) and (ii) a rebate for that
month of $0.03 per XSP contract executed in a Market-Maker capacity
which provide liquidity in the Simple Book during RTH. The GTH2 XSP LMM
Incentive Program provides that if an LMM appointed to the Program
provides continuous electronic quotes during GTH2 that meet or exceed
the heightened quoting standards \12\ (which are the same as the
heightened quoting standards in the GTH1 XSP LMM Incentive Program) in
at least 85% of the series 90% of the time in a given month, the LMM
will receive a payment for that month in the amount of $25,000 (or pro-
rated amount if an appointment begins after the first trading day of
the month or ends prior to the last trading day of the month). For each
of the XSP LMM Incentives Programs, the heightened quoting standards
are based on the VIX Index value at the prior market close, with three
separate value categories (i.e., VIX value at prior close less than 20,
VIX value at prior close from 20 to 30, and VIX value at prior close
greater than 30).
---------------------------------------------------------------------------
\11\ Located in the ``GTH1 XSP LMM Incentive Program'' table in
the Fees Schedule.
\12\ Located in the ``GTH2 XSP LMM Incentive Program'' table in
the Fees Schedule.
---------------------------------------------------------------------------
The Exchange proposes to restructure the GTH1 and GTH2 XSP LMM
Incentive Programs and adopt a new set of heightened quoting standards
(which will apply to both programs). The proposed VIX Index value
categories and heightened quoting standards for XSP options during each
of GTH1 and GTH2 are as follows in the table below:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Expiring 7 days or less Near term 8 days to 60 Mid term 61 days to 270 Long term 271 to 500
-------------------------- days days days
Premium level -----------------------------------------------------------------------------
Width Size Width Size Width Size Width Size
--------------------------------------------------------------------------------------------------------------------------------------------------------
VIX Value at Prior Close <30
--------------------------------------------------------------------------------------------------------------------------------------------------------
$0.01-$1.00..................................... $0.10 5 $0.11 5 $0.15 5 $0.25 5
$1.01-$5.00..................................... 0.15 5 0.15 5 0.20 5 0.30 5
$5.01-$8.00..................................... 0.25 5 0.30 5 0.40 5 0.60 5
$8.01-$12.00.................................... 0.60 5 0.80 5 1.10 5 1.35 5
$12.01-$20.00................................... 1.00 5 1.30 5 1.80 5 2.20 5
Greater than $20.00............................. 2.00 5 2.40 5 2.80 5 3.60 5
--------------------------------------------------------------------------------------------------------------------------------------------------------
VIX Value at Prior Close =30
--------------------------------------------------------------------------------------------------------------------------------------------------------
$0.01-$1.00..................................... 0.15 5 0.16 5 0.20 5 0.30 5
$1.01-$5.00..................................... 0.18 5 0.20 5 0.25 5 0.40 5
$5.01-$8.00..................................... 0.25 5 0.30 5 0.45 5 0.70 5
$8.01-$12.00.................................... 0.60 5 0.90 5 1.20 5 1.50 5
$12.01-$20.00................................... 1.20 5 1.50 5 2.00 5 2.40 5
Greater than $20.00............................. 2.40 5 2.80 5 3.20 5 4.00 5
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 2685]]
The Exchange also proposes to increase the rebates offered by the
GTH1 and GTH2 XSP LMM Incentive Programs to an LMM appointed to the
program for meeting the heightened quoting standards in a given month.
The Exchange proposes to decrease such rebates from $20,000 to $15,000
for the GTH1 XSP LMM Incentive Program, and from $25,000 to $15,000 for
the GTH2 XSP LMM Incentive Program. Additionally, for the GTH1 XSP LMM
Incentive Program, the Exchange proposes to eliminate the additional
credit of $0.03 per contract applied to all XSP contracts executed in a
Market-Maker capacity which provide liquidity in the Simple Book during
RTH.
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.\13\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \14\ 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) \15\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. The Exchange also believes the proposed rule
change is consistent with Section 6(b)(4) of the Act,\16\ 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.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
\15\ Id.
\16\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that it is reasonable to amend the monthly
rebate amounts applicable to the MRUT, NANOS, GTH VIX/VIXW, and GTH1
and GTH2 XSP LMM Incentive Programs. The Exchange notes that LMMs
appointed to the respective programs will continue to receive a monthly
rebate. The Exchange believes that the proposed rebate amounts are
reasonably designed to continue to incentivize an LMM appointed to the
respective program to meet the applicable quoting standards for MRUT,
NANOS, VIX/VIXW, and XSP options, thereby providing liquid and active
markets, which facilitates tighter spreads, increased trading
opportunities, and overall enhanced market quality to the benefit of
all market participants.
The Exchange further believes that the proposed rule change to
amend the rebate amounts received for MRUT ($5,000), NANOS ($5,000),
VIX ($25,000), VIXW ($10,000), XSP ($15,000 for each of GTH1 and GTH2)
options is reasonable because they are comparable to the rebates
offered by other LMM Incentive Programs offered by the Exchange. For
example, the SPESG LMM Program currently offers $10,000 to appointed
LMMs for SPESG options if the heightened quoting standards are met in a
given month. The Exchange believes the amount of the rebate for each
LMM Program remains commiserate with the quoting requirements of each
of the LMM Incentive Programs, of which some standards are being
restructured, as proposed.
Similarly, the Exchange believes that the proposed rule changes to
eliminate the volume incentive pool programs for the MRUT and NANOS LMM
Incentive Programs and to eliminate the additional per contract credit
incentives for the GTH VIX/VIXW and GTH1 XSP LMM Incentive Programs are
reasonable because it is consistent with the rebate structures
currently in place for other LMM Incentive Programs, in that most do
not offer a volume incentive pool program or additional per contract
credit incentive. The Exchange notes that it is not required to
maintain the volume incentive pool or additional per contract credit
incentive, and now wishes to eliminate them from the respective
programs.
The Exchange believes it is reasonable to decrease the series
requirement for the NANOS and VIX/VIXW LMM Incentive Programs, and
decrease the time requirement for MRUT LMM Incentive Program, as such
changes are reasonably designed to slightly ease the difficulty in
meeting the heightened quoting standards offered under these programs
(for which an appointed LMM receives the respective rebates), which, in
turn, provides increased incentive for LMMs appointed to these programs
to provide significant liquidity in NANOS, VIX/VIXW, and MRUT options.
Such liquidity benefits all market participants by providing more
trading opportunities, tighter spreads, and added market transparency
and price discovery, and signals to other market participants to direct
their order flow to those markets, thereby contributing to robust
levels of liquidity.
Additionally, the Exchange believes that it is reasonable to
restructure the VIX Index value categories and amend widths and sizes
in the heightened quoting standards under the NANOS, VIX/VIXW and XSP
LMM Incentive Programs, as these proposed new quoting requirements are
overall reasonably designed to continue to encourage LMMs appointed to
the respective incentive programs to provide significant liquidity in
NANOS, VIX/VIXW and XSP options, which benefits investors overall by
providing more trading opportunities, tighter spreads, and added market
transparency and price discovery. Further, by restructuring the
programs, the Exchange believes that the proposed rule changes are
reasonably designed to reflect then-current market conditions and
market characteristics in NANOS, VIX/VIXW and XSP options where the VIX
Index may be experiencing higher volatility, and thus encourage LMMs
appointed to the programs to meet the quoting standards to receive a
rebate. Additionally, the proposed rule change is, in light of the
restructuring of VIX Index value categories, generally designed to
further align the lesser premium quote widths and size standards for
NANOS, VIX/VIXW and XSP options with the more expensive premium quote
width and size standards, in order to incentivize an increase in
quoting activity and the provision of tighter markets for all premium
levels.
The Exchange also believes the proposed change to adopt a singular
GTH VIX/VIXW LMM Incentive Program (as compared to separate GTH1 and
GTH2 VIX/VIXW LMM Incentive Programs) is reasonable. The Exchange
believes the proposed changes are reasonably designed to continue to
incentivize appointed LMMs to meet the proposed quoting standards for
VIX/VIXW, thereby providing liquid and active markets, which
facilitates tighter spreads, increased trading opportunities, and
overall enhanced market quality to the benefit of all market
participants. Additionally, the Exchange believes that the proposed
widths and sizes for the singular program are reasonable because they
remain aligned with the current heightened standards in each program.
[[Page 2686]]
The Exchange believes that the proposed changes to the LMM
Incentive Programs are equitable and not unfairly discriminatory.
Specifically, the changes to the LMM Incentive Program will apply
equally to any and all TPHs with LMM appointments to the MRUT, NANOS,
GTH VIX/VIXW, and GTH1 and GTH2 XSP LMM Incentive Programs, as
applicable, that seek to meet the programs' quoting standards in order
to receive the rebates (as proposed) offered under each respective
program. The Exchange additionally notes that, if an LMM appointed to
any of the LMM Incentive Programs does not satisfy the corresponding
heightened quoting standard for any given month, then it simply will
not receive the rebate offered by the respective program for that
month.
Regarding each of the LMM Incentive Programs generally, the
Exchange believes it is reasonable, equitable and not unfairly
discriminatory to continue to offer these financial incentives,
including as amended, to LMMs appointed to the programs, because it
benefits all market participants trading in the corresponding products
during RTH (for MRUT and NANOS) and GTH (for VIX/VIXW and XSP). These
incentive programs encourage the LMMs appointed to such programs to
satisfy the applicable quoting standards, which may increase liquidity
and provide more trading opportunities and tighter spreads. Indeed, the
Exchange notes that these LMMs serve a crucial role in providing quotes
and the opportunity for market participants to trade MRUT, NANOS, VIX/
VIXW, and XSP options, as applicable, which can lead to increased
volume, providing for robust markets. The Exchange ultimately offers
the LMM Incentive Programs, as amended, to sufficiently incentivize
LMMs appointed to each incentive program to provide key liquidity and
active markets in the corresponding program products during the
corresponding trading sessions, and believes that these incentive
programs, as amended, will continue to encourage increased quoting to
add liquidity in each of the corresponding program products, thereby
protecting investors and the public interest. The Exchange also notes
that an LMM appointed to an incentive program may undertake added costs
each month to satisfy that heightened quoting standards (e.g., having
to purchase additional logical connectivity).
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. First, the Exchange believes
the proposed rule change does impose any burden on intramarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Particularly, the proposed changes to existing LMM
Incentive Programs will apply to all LMMs appointed to the applicable
program classes (i.e., MRUT, NANOS, VIX/VIXW, and XSP) in a uniform
manner. To the extent these LMMs appointed to an incentive program
receive a benefit that other market participants do not, as stated,
these LMMs in their role as Mark-Makers on the Exchange have different
obligations and are held to different standards. For example, Market-
Makers play a crucial role in providing active and liquid markets in
their appointed products, thereby providing a robust market which
benefits all market participants. Such Market-Makers also have
obligations and regulatory requirements that other participants do not
have. The Exchange also notes that an LMM appointed to an incentive
program may undertake added costs each month to satisfy that heightened
quoting standards (e.g., having to purchase additional logical
connectivity). The Exchange also notes that the incentive programs are
designed to attract additional order flow to the Exchange, wherein
greater liquidity benefits all market participants by providing more
trading opportunities, tighter spreads, and added market transparency
and price discovery, and signals to other market participants to direct
their order flow to those markets, thereby contributing to robust
levels of liquidity. As a result, the Exchange believes that the
proposed change furthers the Commission's goal in adopting Regulation
NMS of fostering competition among orders, which promotes ``more
efficient pricing of individual stocks for all types of orders, large
and small.'' \17\
---------------------------------------------------------------------------
\17\ See Securities Exchange Act Release No. 51808, 70 FR 37495,
37498-99 (June 29, 2005) (S7-10-04) (Final Rule).
---------------------------------------------------------------------------
The Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act as the LMM
Incentive Programs apply only to transactions in products exclusively
listed on the Exchange. As noted above, the incentive programs are
designed to attract additional order flow to the Exchange, wherein
greater liquidity benefits all market participants by providing more
trading opportunities, tighter spreads, and added market transparency
and price discovery, and signals to other market participants to direct
their order flow to those markets, thereby contributing to robust
levels of liquidity. The Exchange notes that it operates in a highly
competitive market. TPHs have numerous alternative venues that they may
participate on and direct their order flow, including 16 other options
exchanges, as well as off-exchange venues, where competitive products
are available for trading. Based on publicly available information, no
single options exchange has more than 12% of the market share.\18\
Therefore, no exchange possesses significant pricing power in the
execution of option order flow. Indeed, participants can readily choose
to send their orders to other exchange, and, additionally off-exchange
venues, if they deem fee levels at those other venues to be more
favorable. Moreover, the Commission has repeatedly expressed its
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. Specifically,
in Regulation NMS, the Commission highlighted the importance of market
forces in determining prices and SRO revenues and, also, recognized
that current regulation of the market system ``has been remarkably
successful in promoting market competition in its broader forms that
are most important to investors and listed companies.'' \19\ The fact
that this market is competitive has also long been recognized by the
courts. In NetCoalition v. Securities and Exchange Commission, the D.C.
Circuit stated as follows: ``[n]o one disputes that competition for
order flow is `fierce.' . . . As the SEC explained, `[i]n the U.S.
national market system, buyers and sellers of securities, and the
broker-dealers that act as their order-routing agents, have a wide
range of choices of where to route orders for execution'; [and] `no
exchange can afford to take its market share percentages for granted'
because `no exchange possesses a monopoly, regulatory or otherwise, in
the execution of order flow from broker dealers'. . . .''.\20\
Accordingly, the Exchange does not believe its proposed
[[Page 2687]]
fee change imposes any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\18\ See Cboe Global Markets U.S. Options Market Volume Summary,
Month-to-Date (December 18, 2023), available at https://markets.cboe.com/us/options/market_statistics/.
\19\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
\20\ See NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
---------------------------------------------------------------------------
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 \21\ and paragraph (f) of Rule 19b-4 \22\
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.
---------------------------------------------------------------------------
\21\ 15 U.S.C. 78s(b)(3)(A).
\22\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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-2024-001 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-2024-001. 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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-CBOE-2024-001 and should be
submitted on or before February 6, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
---------------------------------------------------------------------------
\23\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-00639 Filed 1-12-24; 8:45 am]
BILLING CODE 8011-01-P
