Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule, 32499-32503 [2024-08949]
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Federal Register / Vol. 89, No. 82 / Friday, April 26, 2024 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–08947 Filed 4–25–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–647, OMB Control No.
3235–0697]
ddrumheller on DSK120RN23PROD with NOTICES1
Proposed Collection; Comment
Request; Extension: Form SD
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Form SD (17 CFR 249b–400) is
required by section 13(p) (15 U.S.C.
78m(p)) of the Securities Exchange Act
of 1934 (15 U.S.C. 78a et seq.)
(‘‘Exchange Act’’) and Rule 13p–1
thereunder (17 CFR 240.13p–1) and is
filed by issuers to provide disclosures
regarding the source and chain of
custody of certain minerals used in their
products. Section 13(q) was added by
Section 1502 of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (‘‘Dodd-Frank Act’’). We estimate
that, when used by filers to comply with
section 13(p), Form SD takes
approximately 480.61265 hours per
response to prepare and is filed by
approximately 1,009 issuers. We
estimate that 75% of the 480.61265
hours per response (360.46 hours) is
prepared by the issuer internally for a
total annual burden of 363,704 hours
(360.46 hours per response × 1009
responses).
Form SD is also used by filers to
comply with section 13(q) of the
Exchange Act (15 U.S.C. 78m(q)) and
Rule 13q–1 thereunder (17 CFR
240.13q–1). Section 13(q) was added by
section 1504 of the Dodd-Frank Act.
Form SD is used by resource extraction
issuers to disclose information relating
to certain payments made by the issuer,
a subsidiary of the issuer, or an entity
21 17
CFR 200.30–3(a)(12).
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under the control of the issuer, to a
foreign government or the Federal
Government for the purpose of the
commercial development of oil, natural
gas, or minerals. We estimate that, when
used by filers to comply with section
13(q), Form SD takes approximately
296.9202 hours per response to prepare
and is filed by approximately 414
issuers. We estimate that 75% of the
296.9202 hours per response (222.69
hours) is prepared by the issuer
internally for a total annual burden of
192,194 hours (222.69 hours per
response × 414 issuers responses).
For purposes of the Paperwork
Reduction Act (‘‘PRA’’), we estimate
that Form SD take approximately
427.1701 hours per response to comply
with collection information
requirements of sections 13(p) and 13(q)
under the Exchange Act and is filed by
1,423 issuers. We estimate that 75% of
the 427.1701 of hours per response
(320.3775 hours) is prepared by the
issuer internally for a total annual
burden of 455,897 hours (320.3775
hours per response × 1,423 issuers). The
estimated burden hours are made solely
for the purposes of the Paperwork
Reduction Act and are not derived from
a comprehensive or even a
representative survey or study of the
costs of Commission rules and forms.
Written comments are invited on: (a)
whether this proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication by June 25, 2024.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Please direct your written comment to
David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov.
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32499
Dated: April 23, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–09035 Filed 4–25–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100010; File No. SR–
CBOE–2024–019]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Its Fees
Schedule
April 22, 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 April 10,
2024, 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.
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/CBOELegal
RegulatoryHome.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
1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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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.3 Specifically, the
Exchange proposes to amend the
Regular Trading Hours (‘‘RTH’’) XSP
Lead Market-Makers (‘‘LMMs’’)
Incentive Program (the ‘‘Program’’).
By way of background, the Exchange
offers several LMM Incentive Programs
which provide 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.4 The Exchange notes
that meeting or exceeding the quoting
standards in each of the LMM incentive
program products to receive the
applicable rebate 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., RTH or Global Trading Hours). 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.
The Exchange proposes to amend the
current Program. Currently, the Program
provides that if an LMM appointed to
the Program provides continuous
electronic quotes during RTH that meet
or exceed the proposed heightened
quoting standards (below) in at least
95% of the series 93% of the time in a
given month, the LMM will receive (i)
a payment for that month in the amount
of $40,000 (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) and
(ii) a rebate of $0.27 per XSP contract
that is executed in RTH in MarketMaker capacity and adds liquidity
electronically contra to non-customer
capacity.
The Exchange now proposes to amend
the time requirement for the Program.
Specifically, the Exchange proposes to
update the time requirement to require
an appointed LMM to provide
continuous electronic quotes during
RTH that meet or exceed the heightened
quoting standards in at least 95% of the
XSP series 90% of the time in a given
month in order to receive the rebate,
thereby decreasing the time requirement
by 3%.
Further, the Exchange proposes to
amend the heightened quoting
requirements offered by the Program.
The current heightened quoting
requirements are as follows in the table
below:
WIDTH
Moneyness *
Expiring option
VIX Value at Prior Close ≤30:
[>3% ITM) ...........................................
[3% ITM to 2% ITM) ...........................
[2% ITM to 0.25% ITM) ......................
[0.25% ITM to ATM) ...........................
[ATM to 1% OTM) ..............................
[>1% OTM] .........................................
VIX Value at Prior Close >30:
[>3% ITM) ...........................................
[3% ITM to 2% ITM) ...........................
[2% ITM to 0.25% ITM) ......................
[0.25% ITM to ATM) ...........................
[ATM to 1% OTM) ..............................
[>1% OTM] .........................................
1 day
2 days to 5 days
6 days to 14 days
15 days to 35 days
$0.20
0.10
0.04
0.02
0.02
0.02
$0.25
0.15
0.05
0.03
0.02
0.02
$0.25
0.15
0.05
0.04
0.02
0.02
$0.50
0.25
0.06
0.05
0.03
0.02
$1.00
0.75
0.10
0.08
0.06
0.04
0.25
0.15
0.05
0.03
0.03
0.03
0.30
0.20
0.06
0.04
0.03
0.03
0.30
0.20
0.06
0.05
0.03
0.03
0.55
0.30
0.07
0.06
0.04
0.03
1.05
0.80
0.11
0.09
0.07
0.05
* Moneyness is calculated as 1¥strike/index for calls, strike/index¥1 for puts. Negative numbers are Out of the Money (‘‘OTM’’) and positive
values are In the Money (‘‘ITM’’). A Moneyness value of zero for either calls or puts is considered At the Money (‘‘ATM’’). For example, if the
index is at 400, the 396 call = 1¥396/400 = 0.01 = 1% ITM, whereas the 396 put = 396/400¥1 = ¥0.01 = 1% OTM.
Moneyness
Size
(0 to 35 days to expiry)
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[>3% ITM) ....................................................................................................................................................................
[3% ITM to 2% ITM) ....................................................................................................................................................
[2% ITM to 0.25% ITM) ...............................................................................................................................................
[0.25% ITM to ATM) ....................................................................................................................................................
[ATM to 1% OTM) .......................................................................................................................................................
[>1% OTM] ..................................................................................................................................................................
The Exchange proposes to restructure
the Program and adopt a new set of
heightened quoting standards. The
heightened quoting standards proposed
for XSP options are as follows in the
table below:
3 The Exchange initially filed the proposed fee
changes on April 1, 2024 (SR–CBOE–2024–016). On
April 2, 2024, the Exchange withdrew that filing
and submitted SR–CBOE–2024–018. On April 10,
2024, the Exchange withdrew that filing and
submitted this proposal.
4 See Exchange Rule 3.55(a). In advance of the
LMM Incentive Program effective date, the
Exchange will send a notice to solicit applications
from interested TPHs for the LMM role and will,
from among those applications, select the program
LMMs. Factors to be considered by the Exchange in
selecting LMMs include adequacy of capital,
experience in trading options, presence in the
trading crowd, adherence to Exchange rules and
ability to meet the obligations specified in Rule
5.55.
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WIDTH
Moneyness
Expiring option
VIX Value at Prior Close ≤30:
[>3% ITM) ...........................................
[3% ITM to 2% ITM) ...........................
[2% ITM to 0.25% ITM) ......................
[0.25% ITM to ATM) ...........................
[ATM to 1% OTM) ..............................
[>1% OTM] .........................................
VIX Value at Prior Close >30:
[>3% ITM) ...........................................
[3% ITM to 2% ITM) ...........................
[2% ITM to 0.25% ITM) ......................
[0.25% ITM to ATM) ...........................
[ATM to 1% OTM) ..............................
[>1% OTM] .........................................
1 day
2 days to 5 days
6 days to 14 days
$0.20
0.10
0.08
0.05
0.03
0.02
$0.25
0.13
0.10
0.06
0.04
0.03
$0.30
0.20
0.13
0.08
0.05
0.04
$0.40
0.25
0.16
0.10
0.06
0.05
$0.75
0.50
0.25
0.15
0.10
0.06
0.30
0.15
0.12
0.08
0.05
0.03
0.40
0.20
0.15
0.09
0.06
0.04
0.50
0.25
0.19
0.12
0.07
0.05
0.60
0.30
0.23
0.15
0.09
0.06
1.00
0.75
0.40
0.20
0.10
0.07
Moneyness
Size
[>3% ITM) ....................................................................................................................................................................
[3% ITM to 2% ITM) ....................................................................................................................................................
[2% ITM to 0.25% ITM) ...............................................................................................................................................
[0.25% ITM to ATM) ....................................................................................................................................................
[ATM to 1% OTM) .......................................................................................................................................................
[>1% OTM] ..................................................................................................................................................................
The amended time requirement and
proposed heightened quoting standards
are designed to incentivize LMMs
appointed to the Program to provide
significant liquidity in XSP options
during the RTH session, which, in turn,
would provide greater trading
opportunities, added market
transparency and enhanced price
discovery for all market participants in
XSP.
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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.5 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 6 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
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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the Section 6(b)(5) 7 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,8 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 it is reasonable
to decrease the time requirement for the
Program, as the change is reasonably
designed to slightly ease the difficulty
in meeting the heightened quoting
standards offered under the Program (for
which an appointed LMM receives the
respective rebates), which, in turn,
provides increased incentive for LMMs
appointed to the program to provide
significant liquidity in XSP 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
the market, thereby contributing to
robust levels of liquidity.
Additionally, the Exchange believes
that it is reasonable to amend the
Program’s heightened quoting
standards, as the proposed new quoting
requirements are overall reasonably
designed to continue to encourage
LMMs appointed to the Program to
7 Id.
8 15
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U.S.C. 78f(b)(4).
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(0 to 35 days to expiry)
5
5
10
20
20
20
provide significant liquidity in XSP
options, which benefits investors overall
by providing more trading
opportunities, tighter spreads, and
overall enhanced market quality to the
benefit of all market participants.
The Exchange believes that the
proposed changes to width and quote
sizes for the Program’s heightened
quoting requirements eases the
heightened quoting standards in a
manner that makes it easier for
appointed LMMs to achieve such
requirements and will incentivize an
increase in quoting activity in XSP
options. Particularly, by increasing
certain quote widths and decreasing
certain quote sizes, the Exchange
believes the proposed changes will
encourage appointed LMMs to post
more aggressive quotes in XSP options,
in order to meet the heightened quoting
standards, as amended, and receive the
rebates offered under the incentive
program, resulting in tighter spreads
and increased liquidity to the benefits of
investors. The Exchange also believes
that the proposed width and quote sizes
are reasonable because they remain
generally aligned with the current
heightened standards in each program,
as the proposed width and quote sizes
are only marginally changed in order to
incentivize an increase in quoting
activity.
The Exchange believes that the
proposed changes to the Program are
equitable and not unfairly
discriminatory. Specifically, the
changes to the Program will apply
equally to any and all TPHs with LMM
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appointments to the Program that seek
to meet the Programs’ quoting standards
in order to receive the rebates offered.
The Exchange additionally notes that, if
an LMM appointed to the Program does
not satisfy the corresponding
heightened quoting standard for any
given month, then it simply will not
receive the rebate offered by the
Program for that month.
Regarding the Program generally, the
Exchange believes it is reasonable,
equitable and not unfairly
discriminatory to continue to offer
financial incentives to LMMs appointed
to the Program, because it benefits all
market participants trading in XSP
options during RTH. The incentive
program encourages the appointed
LMMs 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 XSP options, which can lead to
increased volume, providing robust
markets. The Exchange ultimately offers
the Program, as amended, to sufficiently
incentivize LMMs appointed to the
Program to provide key liquidity and
active markets in the XSP options
during RTH and believes that the
incentive program, as amended, will
continue to encourage increased quoting
to add liquidity in XSP options, 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 not 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 the Program
will apply to all appointed LMMs in a
uniform manner. To the extent LMMs
appointed to the incentive program
receive a benefit that other market
participants do not, as stated, these
LMMs in their role as Market-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
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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.’’ 9
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 Program applies only to
transactions in a product exclusively
listed on the Exchange. As noted above,
the incentive program is 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 offexchange venues, where competitive
products are available for trading. Based
on publicly available information, no
single options exchange has more than
15% of the market share.10 Therefore,
no exchange possesses significant
pricing power in the execution of option
9 See Securities Exchange Act Release No. 51808,
70 FR 37495, 37498–99 (June 29, 2005) (S7–10–04)
(Final Rule).
10 See Cboe Global Markets U.S. Options Market
Volume Summary, Month-to-Date (March 26, 2024),
available at https://markets.cboe.com/us/options/
market_statistics/.
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order flow. Indeed, participants can
readily choose to send their orders to
other exchanges, and, additionally offexchange 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.’’ 11 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’. . . .’’.12 Accordingly, the
Exchange does not believe its proposed
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 13 and paragraph (f) of Rule
19b–4 14 thereunder. At any time within
60 days of the filing of the proposed rule
11 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
12 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)).
13 15 U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f).
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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–2024–019 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–2024–019. 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
VerDate Sep<11>2014
20:31 Apr 25, 2024
Jkt 262001
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–CBOE–2024–019 and should be
submitted on or before May 17, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–08949 Filed 4–25–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100005; File No. SR–
CboeBZX–2024–027]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Its
Fees Schedule Related to Physical
Port Fees
April 22, 2024.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 9,
2024, Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
(‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX Equities’’)
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://markets.cboe.com/us/
equities/regulation/rule_filings/BZX/),
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
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
32503
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
fee schedule relating to physical
connectivity fees.3
By way of background, a physical port
is utilized by a Member or non-Member
to connect to the Exchange at the data
centers where the Exchange’s servers are
located. The Exchange currently
assesses the following physical
connectivity fees for Members and nonMembers on a monthly basis: $2,500 per
physical port for a 1 gigabit (‘‘Gb’’)
circuit and $7,500 per physical port for
a 10 Gb circuit. The Exchange proposes
to increase the monthly fee for 10 Gb
physical ports from $7,500 to $8,500 per
port. The Exchange notes the proposed
fee change better enables it to continue
to maintain and improve its market
technology and services and also notes
that the proposed fee amount, even as
amended, continues to be in line with,
or even lower than, amounts assessed by
other exchanges for similar
connections.4 The physical ports may
3 The Exchange initially filed the proposed fee
changes on July 3, 2023 (SR–CboeBZX–2023–046).
On September 1, 2023, the Exchange withdrew that
filing and submitted SR–CboeBZX–2023–067. On
September 29, 2023, the Securities and Exchange
Commission issued a Suspension of and Order
Instituting Proceedings to Determine whether to
Approve or Disapprove a Proposed Rule Change to
Amend its Fees Schedule Related to Physical Port
Fees (the ‘‘OIP’’). On October 2, 2023, the Exchange
filed the proposed fee change (SR–CboeBZX–2023–
080). On October 13, 2023, the Exchange withdrew
that filing and on business date October 16, 2023
submitted SR–CboeBZX–2023–084. On December
12, 2023, the Exchange withdrew that filing and
submitted SR–CboeBZX–2023–103. On February 9,
2024, the Exchange withdrew that filing and
submitted SR–CboeBZX–2024–016. On April 9,
2024, the Exchange withdrew that filing and
submitted this filing.
4 See e.g., The Nasdaq Stock Market LLC
(‘‘Nasdaq’’), General 8, Connectivity to the
Exchange. Nasdaq and its affiliated exchanges
charge a monthly fee of $15,000 for each 10Gb Ultra
fiber connection to the respective exchange, which
is analogous to the Exchange’s 10Gb physical port.
See also New York Stock Exchange LLC, NYSE
American LLC, NYSE Arca, Inc., NYSE Chicago
Inc., NYSE National, Inc. Connectivity Fee
Schedule, which provides that 10 Gb LX LCN
Circuits (which are analogous to the Exchange’s 10
Continued
E:\FR\FM\26APN1.SGM
26APN1
]]>Agencies
[Federal Register Volume 89, Number 82 (Friday, April 26, 2024)]
[Notices]
[Pages 32499-32503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08949]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100010; File No. SR-CBOE-2024-019]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fees Schedule
April 22, 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 April 10, 2024, 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
[[Page 32500]]
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.\3\ Specifically,
the Exchange proposes to amend the Regular Trading Hours (``RTH'') XSP
Lead Market-Makers (``LMMs'') Incentive Program (the ``Program'').
---------------------------------------------------------------------------
\3\ The Exchange initially filed the proposed fee changes on
April 1, 2024 (SR-CBOE-2024-016). On April 2, 2024, the Exchange
withdrew that filing and submitted SR-CBOE-2024-018. On April 10,
2024, the Exchange withdrew that filing and submitted this proposal.
---------------------------------------------------------------------------
By way of background, the Exchange offers several LMM Incentive
Programs which provide 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.\4\ The
Exchange notes that meeting or exceeding the quoting standards in each
of the LMM incentive program products to receive the applicable rebate
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., RTH or
Global Trading Hours). 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.
---------------------------------------------------------------------------
\4\ See Exchange Rule 3.55(a). In advance of the LMM Incentive
Program effective date, the Exchange will send a notice to solicit
applications from interested TPHs for the LMM role and will, from
among those applications, select the program LMMs. Factors to be
considered by the Exchange in selecting LMMs include adequacy of
capital, experience in trading options, presence in the trading
crowd, adherence to Exchange rules and ability to meet the
obligations specified in Rule 5.55.
---------------------------------------------------------------------------
The Exchange proposes to amend the current Program. Currently, the
Program provides that if an LMM appointed to the Program provides
continuous electronic quotes during RTH that meet or exceed the
proposed heightened quoting standards (below) in at least 95% of the
series 93% of the time in a given month, the LMM will receive (i) a
payment for that month in the amount of $40,000 (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) and (ii) a rebate of $0.27
per XSP contract that is executed in RTH in Market-Maker capacity and
adds liquidity electronically contra to non-customer capacity.
The Exchange now proposes to amend the time requirement for the
Program. Specifically, the Exchange proposes to update the time
requirement to require an appointed LMM to provide continuous
electronic quotes during RTH that meet or exceed the heightened quoting
standards in at least 95% of the XSP series 90% of the time in a given
month in order to receive the rebate, thereby decreasing the time
requirement by 3%.
Further, the Exchange proposes to amend the heightened quoting
requirements offered by the Program. The current heightened quoting
requirements are as follows in the table below:
Width
--------------------------------------------------------------------------------------------------------------------------------------------------------
Moneyness * Expiring option 1 day 2 days to 5 days 6 days to 14 days 15 days to 35 days
--------------------------------------------------------------------------------------------------------------------------------------------------------
VIX Value at Prior Close <=30:
[>3% ITM)............................................... $0.20 $0.25 $0.25 $0.50 $1.00
[3% ITM to 2% ITM)...................................... 0.10 0.15 0.15 0.25 0.75
[2% ITM to 0.25% ITM)................................... 0.04 0.05 0.05 0.06 0.10
[0.25% ITM to ATM)...................................... 0.02 0.03 0.04 0.05 0.08
[ATM to 1% OTM)......................................... 0.02 0.02 0.02 0.03 0.06
[>1% OTM]............................................... 0.02 0.02 0.02 0.02 0.04
VIX Value at Prior Close >30:
[>3% ITM)............................................... 0.25 0.30 0.30 0.55 1.05
[3% ITM to 2% ITM)...................................... 0.15 0.20 0.20 0.30 0.80
[2% ITM to 0.25% ITM)................................... 0.05 0.06 0.06 0.07 0.11
[0.25% ITM to ATM)...................................... 0.03 0.04 0.05 0.06 0.09
[ATM to 1% OTM)......................................... 0.03 0.03 0.03 0.04 0.07
[>1% OTM]............................................... 0.03 0.03 0.03 0.03 0.05
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Moneyness is calculated as 1-strike/index for calls, strike/index-1 for puts. Negative numbers are Out of the Money (``OTM'') and positive values are
In the Money (``ITM''). A Moneyness value of zero for either calls or puts is considered At the Money (``ATM''). For example, if the index is at 400,
the 396 call = 1-396/400 = 0.01 = 1% ITM, whereas the 396 put = 396/400-1 = -0.01 = 1% OTM.
------------------------------------------------------------------------
Size (0 to 35 days to
Moneyness expiry)
------------------------------------------------------------------------
[>3% ITM).................................. 5
[3% ITM to 2% ITM)......................... 10
[2% ITM to 0.25% ITM)...................... 15
[0.25% ITM to ATM)......................... 20
[ATM to 1% OTM)............................ 20
[>1% OTM].................................. 20
------------------------------------------------------------------------
The Exchange proposes to restructure the Program and adopt a new
set of heightened quoting standards. The heightened quoting standards
proposed for XSP options are as follows in the table below:
[[Page 32501]]
Width
--------------------------------------------------------------------------------------------------------------------------------------------------------
Moneyness Expiring option 1 day 2 days to 5 days 6 days to 14 days 15 days to 35 days
--------------------------------------------------------------------------------------------------------------------------------------------------------
VIX Value at Prior Close <=30:
[>3% ITM)............................................... $0.20 $0.25 $0.30 $0.40 $0.75
[3% ITM to 2% ITM)...................................... 0.10 0.13 0.20 0.25 0.50
[2% ITM to 0.25% ITM)................................... 0.08 0.10 0.13 0.16 0.25
[0.25% ITM to ATM)...................................... 0.05 0.06 0.08 0.10 0.15
[ATM to 1% OTM)......................................... 0.03 0.04 0.05 0.06 0.10
[>1% OTM]............................................... 0.02 0.03 0.04 0.05 0.06
VIX Value at Prior Close >30:
[>3% ITM)............................................... 0.30 0.40 0.50 0.60 1.00
[3% ITM to 2% ITM)...................................... 0.15 0.20 0.25 0.30 0.75
[2% ITM to 0.25% ITM)................................... 0.12 0.15 0.19 0.23 0.40
[0.25% ITM to ATM)...................................... 0.08 0.09 0.12 0.15 0.20
[ATM to 1% OTM)......................................... 0.05 0.06 0.07 0.09 0.10
[>1% OTM]............................................... 0.03 0.04 0.05 0.06 0.07
--------------------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------
Size (0 to 35 days to
Moneyness expiry)
------------------------------------------------------------------------
[>3% ITM).................................. 5
[3% ITM to 2% ITM)......................... 5
[2% ITM to 0.25% ITM)...................... 10
[0.25% ITM to ATM)......................... 20
[ATM to 1% OTM)............................ 20
[>1% OTM].................................. 20
------------------------------------------------------------------------
The amended time requirement and proposed heightened quoting
standards are designed to incentivize LMMs appointed to the Program to
provide significant liquidity in XSP options during the RTH session,
which, in turn, would provide greater trading opportunities, added
market transparency and enhanced price discovery for all market
participants in XSP.
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.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ 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) \7\ 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,\8\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
\7\ Id.
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes it is reasonable to decrease the time
requirement for the Program, as the change is reasonably designed to
slightly ease the difficulty in meeting the heightened quoting
standards offered under the Program (for which an appointed LMM
receives the respective rebates), which, in turn, provides increased
incentive for LMMs appointed to the program to provide significant
liquidity in XSP 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 the market, thereby
contributing to robust levels of liquidity.
Additionally, the Exchange believes that it is reasonable to amend
the Program's heightened quoting standards, as the proposed new quoting
requirements are overall reasonably designed to continue to encourage
LMMs appointed to the Program to provide significant liquidity in XSP
options, which benefits investors overall by providing more trading
opportunities, tighter spreads, and overall enhanced market quality to
the benefit of all market participants.
The Exchange believes that the proposed changes to width and quote
sizes for the Program's heightened quoting requirements eases the
heightened quoting standards in a manner that makes it easier for
appointed LMMs to achieve such requirements and will incentivize an
increase in quoting activity in XSP options. Particularly, by
increasing certain quote widths and decreasing certain quote sizes, the
Exchange believes the proposed changes will encourage appointed LMMs to
post more aggressive quotes in XSP options, in order to meet the
heightened quoting standards, as amended, and receive the rebates
offered under the incentive program, resulting in tighter spreads and
increased liquidity to the benefits of investors. The Exchange also
believes that the proposed width and quote sizes are reasonable because
they remain generally aligned with the current heightened standards in
each program, as the proposed width and quote sizes are only marginally
changed in order to incentivize an increase in quoting activity.
The Exchange believes that the proposed changes to the Program are
equitable and not unfairly discriminatory. Specifically, the changes to
the Program will apply equally to any and all TPHs with LMM
[[Page 32502]]
appointments to the Program that seek to meet the Programs' quoting
standards in order to receive the rebates offered. The Exchange
additionally notes that, if an LMM appointed to the Program does not
satisfy the corresponding heightened quoting standard for any given
month, then it simply will not receive the rebate offered by the
Program for that month.
Regarding the Program generally, the Exchange believes it is
reasonable, equitable and not unfairly discriminatory to continue to
offer financial incentives to LMMs appointed to the Program, because it
benefits all market participants trading in XSP options during RTH. The
incentive program encourages the appointed LMMs 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 XSP options, which can
lead to increased volume, providing robust markets. The Exchange
ultimately offers the Program, as amended, to sufficiently incentivize
LMMs appointed to the Program to provide key liquidity and active
markets in the XSP options during RTH and believes that the incentive
program, as amended, will continue to encourage increased quoting to
add liquidity in XSP options, 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 not 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 the Program
will apply to all appointed LMMs in a uniform manner. To the extent
LMMs appointed to the incentive program receive a benefit that other
market participants do not, as stated, these LMMs in their role as
Market-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.'' \9\
---------------------------------------------------------------------------
\9\ 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 Program
applies only to transactions in a product exclusively listed on the
Exchange. As noted above, the incentive program is 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 15% of the market share.\10\
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 exchanges, 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.'' \11\ 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'. . . .''.\12\
Accordingly, the Exchange does not believe its proposed fee change
imposes any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\10\ See Cboe Global Markets U.S. Options Market Volume Summary,
Month-to-Date (March 26, 2024), available at https://markets.cboe.com/us/options/market_statistics/.
\11\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
\12\ 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 \13\ and paragraph (f) of Rule 19b-4 \14\
thereunder. At any time within 60 days of the filing of the proposed
rule
[[Page 32503]]
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\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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-2024-019 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-2024-019. 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-2024-019 and should be
submitted on or before May 17, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-08949 Filed 4-25-24; 8:45 am]
BILLING CODE 8011-01-P
