Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule Concerning the Sales Value Fee, 66748-66750 [2024-18341]
Download as PDF
<![CDATA[
66748
Federal Register / Vol. 89, No. 159 / Friday, August 16, 2024 / Notices
trade, remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and protect investors and the
public interest. Further, the Exchange
believes the proposed change is
reasonable, given that assessing a sales
fee to defray the cost of fees assessed
under Section 31 of the Act is common
practice among the national securities
exchanges and associations.10
As noted above, the proposed changes
to the Fees Schedule do not change how
the Exchange calculates or collects the
Sales Value Fee from its Members, i.e.,
there are no changes to the application
and assessment of the Sales Value Fee
as a result of the proposed changes.
Rather, the proposed changes will
provide a more complete and accurate
description of the Sales Value Fee
(including an explanation of the Fee and
how it is collected) to all Members. The
Exchange believes the proposed change
represents an equitable allocation of fees
and is not unfairly discriminatory
because it applies uniformly to all
Members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe the proposed
changes will impose any burden on
intramarket competition. Particularly,
the proposed change applies uniformly
to all Members, in that the Sales Value
Fee will continue to be applied
uniformly to all Members’ applicable
orders.
The Exchange does not believe that
the proposed rule changes will impose
any burden on intermarket competition
that is not necessary or appropriate in
furtherance of the purposes of the Act.
As noted above, assessing a sales fee to
defray the cost of fees assessed under
Section 31 of the Act is common
practice among the national securities
exchanges and associations.11
lotter on DSK11XQN23PROD with NOTICES1
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.
10 See, e.g., ISE Options 7, Section 12; NASDAQ
Options 7, Section 8; NYSE Rule 393; and Cboe
Options Fees Schedule, Sales Value Fee.
11 See, e.g., ISE Options 7, Section 12; NASDAQ
Options 7, Section 8; NYSE Rule 393; and Cboe
Options Fees Schedule, Sales Value Fee.
VerDate Sep<11>2014
17:33 Aug 15, 2024
Jkt 262001
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 12 and paragraph (f) of Rule
19b–4 13 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:
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–
CboeBZX–2024–073 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–CboeBZX–2024–073. 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–CboeBZX–2024–073 and should be
submitted on or before September 6,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–18342 Filed 8–15–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100694; File No. SR–
CboeEDGX–2024–049]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Its
Fees Schedule Concerning the Sales
Value Fee
August 12, 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 July 30,
2024, Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) 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 EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) 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
17 CFR 200.30–3(a)(12).
15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
14
15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f).
12
PO 00000
Frm 00081
Fmt 4703
1
Sfmt 4703
E:\FR\FM\16AUN1.SGM
16AUN1
Federal Register / Vol. 89, No. 159 / Friday, August 16, 2024 / Notices
website (https://markets.cboe.com/us/
options/regulation/rule_filings/edgx/),
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.
lotter on DSK11XQN23PROD with NOTICES1
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 to add language
concerning the application and
collection of the Sales Value Fee, as
described below. The proposed changes
to the Fees Schedule do not change how
the Exchange calculates or collects the
Sales Value Fee from its Members, i.e.,
there are no changes to the application
and assessment of the Sales Value Fee
as a result of the proposed changes.
By way of background, Section 31 of
the Securities Exchange Act of 1934 (the
‘‘Act’’) 3 requires each self-regulatory
organization (‘‘SRO’’) to pay the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) twice
annually a fee based on the aggregate
dollar amount of certain sales of
securities (i.e., ‘‘covered sales’’). A
covered sale is a ‘‘sale of a security,
other than an exempt sale or a sale of
a security future, occurring on a
national securities exchange or by or
through any member of a national
securities association otherwise than on
a national securities exchange.’’ 4
Assessing a sales fee to defray the cost
of these fees is common practice among
the national securities exchanges and
associations,5 and in fact the Exchange
currently assesses a fee on its Members
for covered sales on the Exchange to
recoup these amounts. The Exchange
now proposes to amend its Fees
17 CFR 240.31.
17 CFR 240.31(a)(6).
5 See, e.g., ISE Options 7, Section 12; NASDAQ
Options 7, Section 8; NYSE Rule 393; and Cboe
Options Fees Schedule, Sales Value Fee.
3
4
VerDate Sep<11>2014
17:33 Aug 15, 2024
Jkt 262001
Schedule to include information
regarding this fee, including an
explanation and description of the fee
and how it is collected.
Specifically, the Exchange proposes to
add a section to the Fees Schedule
labeled ‘‘Sales Value Fee’’. The
proposed new section defines the Sales
Value Fee (‘‘Fee’’) as the fee assessed by
the Exchange to each Member for sales
in securities when a sale in option
securities occurs with respect to which
the Exchange is obligated to pay a fee
to the SEC under Section 31 of the
Exchange Act or when a sell order in
option securities is routed for execution
at a market other than the Exchange,
resulting in a covered sale on that
market and an obligation of the routing
broker providing Routing Services for
the Exchange, as described in Exchange
Rule 21.9, to pay the related sales fee of
that market. The proposed section
provides that to the extent the Exchange
may collect more from Members under
the section than is due from the
Exchange to the Commission under
Section 31 of the Act, for example due
to rounding differences, the excess
monies collected may be used by the
Exchange to fund its general operating
expenses. The Exchange may reimburse
its routing broker for all Section 31related fees incurred by the routing
broker in connection with the Routing
Services it provides.
The proposed section explains that
the transactions to which the Fee
applies are sales of options (other than
options on a security index). The Fee is
collected indirectly from Members
through their clearing firms by the
Options Clearing Corporation (‘‘OCC’’)
on behalf of the Exchange with respect
to options sales and options exercises.
The proposed section also sets forth
the formula for calculating the Fee.
Specifically, the Fee with respect to
options sales and options exercises is
equal to (i) the Section 31 fee rate
multiplied by (ii) the Member’s
aggregate dollar amount of covered sales
resulting from options transactions
occurring on the Exchange during any
computational period. The Exchange
notes that if the SEC’s Section 31 fee
rate changes in the middle of a month,
the Exchange will perform a separate
calculation with respect to covered sales
under the new fee rate for the remaining
portion of the month.
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
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
66749
Section 6(b) of the Act.6 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 7 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) 8 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,9 which
requires that Exchange rules provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
Members and other persons using its
facilities.
The Exchange believes that the
proposed rule change is consistent with
these requirements because the
proposed amended Fees Schedule text
provides Members with detail regarding
the circumstances under which the
Exchange assesses a Sales Value Fee,
and the current process by which the
Fee is collected. As such, the proposed
changes will increase transparency, help
avoid Member confusion and foster
better understanding of the application
of the Fee. Accordingly, the Exchange
believes the proposed rule change will
promote just and equitable principles of
trade, remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and protect investors and the
public interest. Further, the Exchange
believes the proposed change is
reasonable, given that assessing a sales
fee to defray the cost of fees assessed
under Section 31 of the Act is common
practice among the national securities
exchanges and associations.10
As noted above, the proposed changes
to the Fees Schedule do not change how
the Exchange calculates or collects the
Sales Value Fee from its Members, i.e.,
there are no changes to the application
15 U.S.C. 78f(b).
15 U.S.C. 78f(b)(5).
Id.
9 15 U.S.C. 78f(b)(4).
10 See, e.g., ISE Options 7, Section 12; NASDAQ
Options 7, Section 8; NYSE Rule 393; and Cboe
Options Fees Schedule, Sales Value Fee.
6
7
8
E:\FR\FM\16AUN1.SGM
16AUN1
66750
Federal Register / Vol. 89, No. 159 / Friday, August 16, 2024 / Notices
and assessment of the Sales Value Fee
as a result of the proposed changes.
Rather, the proposed changes will
provide a more complete and accurate
description of the Sales Value Fee
(including an explanation of the Fee and
how it is collected) to all Members. The
Exchange believes the proposed change
represents an equitable allocation of fees
and is not unfairly discriminatory
because it applies uniformly to all
Members.
to determine whether the proposed rule
change should be approved or
disapproved.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe the proposed
changes will impose any burden on
intramarket competition. Particularly,
the proposed change applies uniformly
to all Members, in that the Sales Value
Fee will continue to be applied
uniformly to all Members’ applicable
orders.
The Exchange does not believe that
the proposed rule changes will impose
any burden on intermarket competition
that is not necessary or appropriate in
furtherance of the purposes of the Act.
As noted above, assessing a sales fee to
defray the cost of fees assessed under
Section 31 of the Act is common
practice among the national securities
exchanges and associations.11
Electronic Comments
lotter on DSK11XQN23PROD with NOTICES1
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 12 and paragraph (f) of Rule
19b–4 13 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
11 See, e.g., ISE Options 7, Section 12; NASDAQ
Options 7, Section 8; NYSE Rule 393; and Cboe
Options Fees Schedule, Sales Value Fee.
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f).
VerDate Sep<11>2014
17:33 Aug 15, 2024
Jkt 262001
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
CboeEDGX–2024–049 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–CboeEDGX–2024–049. 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–CboeEDGX–2024–049 and should be
submitted on or before September 6,
2024.
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–18341 Filed 8–15–24; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Information on SBA Secondary Market
Program
U.S. Small Business
Administration.
ACTION: Update to secondary market
program.
AGENCY:
The purpose of this Notice is
to inform the public that the Small
Business Administration (SBA) is
making a change to its Secondary
Market Loan Pooling Program. SBA is
decreasing the minimum maturity ratio
for both SBA Standard Pools and
Weighted-Average Coupon (WAC) Pools
by 300 basis points, to 89.0%. The
minimum maturity ratio covers the
estimated cost of the timely payment
guaranty for newly formed SBA 7(a)
loan pools. This update will be
incorporated, as needed, into the SBA
Secondary Market Program Guide and
all other appropriate SBA Secondary
Market documents.
DATES: The update will apply to SBA
7(a) loan pools with an issue date on or
after October 1, 2024.
ADDRESSES: Address comments
concerning this Notice to David Parrish,
Chief Secondary Market Division, Office
of Financial Assistance, U.S. Small
Business Administration, 409 3rd Street
SW, Washington, DC 20416; or
david.parrish@sba.gov.
FOR FURTHER INFORMATION CONTACT:
David Parrish, Chief Secondary Market
Division, Office of Financial Assistance
at (202) 205–6346; or david.parrish@
sba.gov. If you are deaf, hard of hearing,
or have a speech disability, please dial
7–1–1 to access telecommunications
relay services.
SUPPLEMENTARY INFORMATION: The
Secondary Market Improvements Act of
1984, 15 U.S.C. 634(f) through (h),
authorized SBA to guarantee the timely
payment of principal and interest on
Pool Certificates. A Pool Certificate
represents a fractional undivided
interest in a ‘‘Pool,’’ which is an
aggregation of SBA guaranteed portions
of loans made by SBA Lenders under
section 7(a) of the Small Business Act,
15 U.S.C. 636(a). In order to support the
SUMMARY:
14
17 CFR 200.30–3(a)(12).
E:\FR\FM\16AUN1.SGM
16AUN1
]]>Agencies
[Federal Register Volume 89, Number 159 (Friday, August 16, 2024)]
[Notices]
[Pages 66748-66750]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-18341]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100694; File No. SR-CboeEDGX-2024-049]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Its Fees Schedule Concerning the Sales Value Fee
August 12, 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 July 30, 2024, Cboe EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') 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 EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') 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
[[Page 66749]]
website (https://markets.cboe.com/us/options/regulation/rule_filings/edgx/), 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 to add language
concerning the application and collection of the Sales Value Fee, as
described below. The proposed changes to the Fees Schedule do not
change how the Exchange calculates or collects the Sales Value Fee from
its Members, i.e., there are no changes to the application and
assessment of the Sales Value Fee as a result of the proposed changes.
By way of background, Section 31 of the Securities Exchange Act of
1934 (the ``Act'') \3\ requires each self-regulatory organization
(``SRO'') to pay the Securities and Exchange Commission (``SEC'' or
``Commission'') twice annually a fee based on the aggregate dollar
amount of certain sales of securities (i.e., ``covered sales''). A
covered sale is a ``sale of a security, other than an exempt sale or a
sale of a security future, occurring on a national securities exchange
or by or through any member of a national securities association
otherwise than on a national securities exchange.'' \4\ Assessing a
sales fee to defray the cost of these fees is common practice among the
national securities exchanges and associations,\5\ and in fact the
Exchange currently assesses a fee on its Members for covered sales on
the Exchange to recoup these amounts. The Exchange now proposes to
amend its Fees Schedule to include information regarding this fee,
including an explanation and description of the fee and how it is
collected.
---------------------------------------------------------------------------
\3\ 17 CFR 240.31.
\4\ 17 CFR 240.31(a)(6).
\5\ See, e.g., ISE Options 7, Section 12; NASDAQ Options 7,
Section 8; NYSE Rule 393; and Cboe Options Fees Schedule, Sales
Value Fee.
---------------------------------------------------------------------------
Specifically, the Exchange proposes to add a section to the Fees
Schedule labeled ``Sales Value Fee''. The proposed new section defines
the Sales Value Fee (``Fee'') as the fee assessed by the Exchange to
each Member for sales in securities when a sale in option securities
occurs with respect to which the Exchange is obligated to pay a fee to
the SEC under Section 31 of the Exchange Act or when a sell order in
option securities is routed for execution at a market other than the
Exchange, resulting in a covered sale on that market and an obligation
of the routing broker providing Routing Services for the Exchange, as
described in Exchange Rule 21.9, to pay the related sales fee of that
market. The proposed section provides that to the extent the Exchange
may collect more from Members under the section than is due from the
Exchange to the Commission under Section 31 of the Act, for example due
to rounding differences, the excess monies collected may be used by the
Exchange to fund its general operating expenses. The Exchange may
reimburse its routing broker for all Section 31-related fees incurred
by the routing broker in connection with the Routing Services it
provides.
The proposed section explains that the transactions to which the
Fee applies are sales of options (other than options on a security
index). The Fee is collected indirectly from Members through their
clearing firms by the Options Clearing Corporation (``OCC'') on behalf
of the Exchange with respect to options sales and options exercises.
The proposed section also sets forth the formula for calculating
the Fee. Specifically, the Fee with respect to options sales and
options exercises is equal to (i) the Section 31 fee rate multiplied by
(ii) the Member's aggregate dollar amount of covered sales resulting
from options transactions occurring on the Exchange during any
computational period. The Exchange notes that if the SEC's Section 31
fee rate changes in the middle of a month, the Exchange will perform a
separate calculation with respect to covered sales under the new fee
rate for the remaining portion of the month.
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.\6\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \7\ 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) \8\ 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,\9\ which requires
that Exchange rules provide for the equitable allocation of reasonable
dues, fees, and other charges among its Members and other persons using
its facilities.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
\8\ Id.
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change is consistent
with these requirements because the proposed amended Fees Schedule text
provides Members with detail regarding the circumstances under which
the Exchange assesses a Sales Value Fee, and the current process by
which the Fee is collected. As such, the proposed changes will increase
transparency, help avoid Member confusion and foster better
understanding of the application of the Fee. Accordingly, the Exchange
believes the proposed rule change will promote just and equitable
principles of trade, remove impediments to and perfect the mechanism of
a free and open market and a national market system, and protect
investors and the public interest. Further, the Exchange believes the
proposed change is reasonable, given that assessing a sales fee to
defray the cost of fees assessed under Section 31 of the Act is common
practice among the national securities exchanges and associations.\10\
---------------------------------------------------------------------------
\10\ See, e.g., ISE Options 7, Section 12; NASDAQ Options 7,
Section 8; NYSE Rule 393; and Cboe Options Fees Schedule, Sales
Value Fee.
---------------------------------------------------------------------------
As noted above, the proposed changes to the Fees Schedule do not
change how the Exchange calculates or collects the Sales Value Fee from
its Members, i.e., there are no changes to the application
[[Page 66750]]
and assessment of the Sales Value Fee as a result of the proposed
changes. Rather, the proposed changes will provide a more complete and
accurate description of the Sales Value Fee (including an explanation
of the Fee and how it is collected) to all Members. The Exchange
believes the proposed change represents an equitable allocation of fees
and is not unfairly discriminatory because it applies uniformly to all
Members.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe the proposed changes will impose any burden on intramarket
competition. Particularly, the proposed change applies uniformly to all
Members, in that the Sales Value Fee will continue to be applied
uniformly to all Members' applicable orders.
The Exchange does not believe that the proposed rule changes will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. As noted above,
assessing a sales fee to defray the cost of fees assessed under Section
31 of the Act is common practice among the national securities
exchanges and associations.\11\
---------------------------------------------------------------------------
\11\ See, e.g., ISE Options 7, Section 12; NASDAQ Options 7,
Section 8; NYSE Rule 393; and Cboe Options Fees Schedule, Sales
Value Fee.
---------------------------------------------------------------------------
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 \12\ and paragraph (f) of Rule 19b-4 \13\
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.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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-CboeEDGX-2024-049 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-CboeEDGX-2024-049. 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-CboeEDGX-2024-049 and should
be submitted on or before September 6, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-18341 Filed 8-15-24; 8:45 am]
BILLING CODE 8011-01-P
