Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Fees Related to the Cboe Legacy Silexx Platform Versions, 22431-22434 [2025-09405]

Download as PDF Federal Register / Vol. 90, No. 100 / Tuesday, May 27, 2025 / Notices (6) specified the DLP’s responsibilities in the proposed Initial ETP Open; and (7) clarified that the IPO Indicator will provide the same information in the Order Imbalance Indicator under this proposal. The changes and clarifications in Amendment No. 1 assist the Commission in evaluating the Exchange’s proposal and do not materially change the terms of the Exchange’s original proposal. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,51 to approve the proposed rule change, as modified by Amendment No. 1 on an accelerated basis. VI. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,52 that the proposed rule change (SR–NASDAQ– 2025–011), as modified by Amendment No. 1, be, and it hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.53 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2025–09401 Filed 5–23–25; 8:45 am] and (10) and 17 CFR 200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10), permit consideration of the scheduled matters at the closed meeting. The subject matter of the closed meeting will consist of the following topics: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; Resolution of litigation claims; and Other matters relating to examinations and enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting agenda items that may consist of adjudicatory, examination, litigation, or regulatory matters. CONTACT PERSON FOR MORE INFORMATION: For further information, please contact Vanessa A. Countryman from the Office of the Secretary at (202) 551–5400. Authority: 5 U.S.C. 552b. Dated: May 22, 2025. Vanessa A. Countryman, Secretary. [FR Doc. 2025–09556 Filed 5–22–25; 4:15 pm] BILLING CODE 8011–01–P BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION SECURITIES AND EXCHANGE COMMISSION [Release No. 34–103089; File No. SR– CBOE–2025–036] Sunshine Act Meetings 3:00 p.m. on Thursday, May 29, 2025. PLACE: The meeting will be held via remote means and/or at the Commission’s headquarters, 100 F Street NE, Washington, DC 20549. STATUS: This meeting will be closed to the public. MATTERS TO BE CONSIDERED: Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the closed meeting. Certain staff members who have an interest in the matters also may be present. In the event that the time, date, or location of this meeting changes, an announcement of the change, along with the new time, date, and/or place of the meeting will be posted on the Commission’s website at https:// www.sec.gov. The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) khammond on DSK9W7S144PROD with NOTICES TIME AND DATE: Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Fees Related to the Cboe Legacy Silexx Platform Versions May 20, 2025. 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 May 12, 2025, 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 51 Id. 52 Id. 53 17 1 15 CFR 200.30–3(a)(12). VerDate Sep<11>2014 17:22 May 23, 2025 2 17 Jkt 265001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00208 Fmt 4703 Sfmt 4703 22431 fees related to the Cboe Legacy Silexx platform versions. The text of the proposed rule change is provided in Exhibit 5. The text of the proposed rule change is also available on the Exchange’s website (https://www.cboe.com/ AboutCBOE/CBOELegalRegulatory Home.aspx), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend fees related to the Cboe Legacy Silexx platform versions (collectively, the ‘‘Legacy Platforms’’ as further described herein) and to extend the time of a fee waiver currently offered for Cboe Silexx, effective May 1, 2025.3 By way of background, the Exchange offers several versions of its Silexx platform. Originally, the Exchange offered the following versions of the Silexx platform: Basic, Pro, Pro Plus Risk and Buy-Side Manager (‘‘Legacy Platforms’’). The Legacy Platforms are designed so that a User may enter orders into the platform to send to the executing broker, including TPHs, of its choice with connectivity to the platform. The executing broker can then send orders to Cboe Options (if the broker-dealer is a Trading Permit Holder (‘‘TPH’’)) or other U.S. exchanges (and trading centers) in accordance with the User’s instructions. Users cannot directly route orders through any of the Legacy Platforms to an exchange or trading center nor is the platform integrated into or directly connected to Cboe Option’s System. In 2019, the Exchange made available a new version of the Silexx 3 The Exchange initially submitted the proposed rule change on May 1, 2025 (SR–CBOE–2025–032). On May 12, 2025, the Exchange withdrew that filing and submitted this filing. E:\FR\FM\27MYN1.SGM 27MYN1 22432 Federal Register / Vol. 90, No. 100 / Tuesday, May 27, 2025 / Notices khammond on DSK9W7S144PROD with NOTICES platform, Silexx FLEX, which supports the trading of FLEX Options and allows authorized Users with direct access to the Exchange to establish connectivity and submit orders directly to the Exchange.4 In 2020, the Exchange made an additional version of the Silexx platform available, Cboe Silexx, which supports the trading of non-FLEX Options and allows authorized Users with direct access to the Exchange to establish connectivity and submit orders directly to the Exchange.5 Cboe Silexx is essentially the same platform as Silexx FLEX, with the same applicable functionality, except that it additionally supports non-FLEX trading. As noted in previous filings, the Exchange is in the process of transitioning the Legacy Platforms to the current version of Cboe Silexx and Silexx FLEX.6 As the Exchange is actively transitioning away from the Legacy Platforms, and in the meantime is expending time and resources to maintain both platforms, the Exchange previously proposed to increase the fees for the Legacy Platforms.7 For this same reason, the 4 See Securities Exchange Act Release No. 87028 (September 19, 2019) 84 FR 50529 (September 25, 2019) (SR–CBOE–2019–061). Only Users authorized for direct access and who are approved to trade FLEX Options may trade FLEX Options via Cboe Silexx. Only authorized Users and associated persons of Users may establish connectivity to and directly access the Exchange, pursuant to Rule 5.5 and the Exchange’s technical specifications. 5 See Securities Exchange Act Release No. 88741 (April 24, 2020) 85 FR 24045 (April 30, 2020) (SR– CBOE–2020–040). Only authorized Users and associated persons of Users may establish connectivity to and directly access the Exchange, pursuant to Rule 5.5 and the Exchange’s technical specifications. 6 See Securities Exchange Release No. 98722 (October 11, 2023) 88 FR 71619 (October 17, 2023) (SR–CBOE–2023–060). Only authorized Users and associated persons of Users will continue to be able to establish connectivity to and directly access the Exchange, pursuant to Rule 5.5 and the Exchange’s technical specifications. Unauthorized Users will not be able to connect directly to the Exchange. The new Cboe Silexx platform will function in the same manner as the Legacy Platforms versions currently available to Users: it will be completely voluntary; orders entered through the platform will receive no preferential treatment as compared to orders electronically sent to Cboe Options in any other manner; orders entered through the platform will be subject to current trading rules in the same manner as all other orders sent to the Exchange, which is the same as orders that are sent through the Exchange’s System today; the Exchange’s System will not distinguish between orders sent from Silexx and orders sent in any other manner; and Silexx will provide technical support, maintenance and user training for the new platform version upon the same terms and conditions for all Users. The Exchange plans to decommission the Legacy Platforms at a future to-be-determined date, at which time the Legacy Platforms will be unavailable to users. 7 See Securities Exchange Release No. 102185 (January 14, 2025) 90 FR 7200 (January 21, 2025) (SR–CBOE–2025–001); Securities Exchange Release No. 102398 (February 11, 2025) 90 FR 9781 (February 18, 2025) (SR–CBOE–2025–005); and VerDate Sep<11>2014 17:22 May 23, 2025 Jkt 265001 Exchange now proposes to increase the API fee for the Legacy Platforms from a $200/month/login ID fee to $2,000/ month/login ID for logins 1–5 and a fee of $0/month/login ID for logins 6–10 for a firm and shall be capped at 10 login IDs. The Exchange previously introduced a fee waiver of two months to allow users of Cboe Silexx to transition to the new version of the platform without incurring duplicative Login ID and Market Data Feed fees for access to both the old and new versions of Cboe Silexx during this transitional period.8 The Exchange further noted that it believed not assessing duplicative fees for Users transitioning to Cboe Silexx would serve as an incentive to market participants to start using the Cboe Silexx platform, while also providing time and flexibility for such Users to become familiar with and fully acclimated to the new platform.9 For this same reason, the Exchange now proposes to extend the existing fee waiver for Cboe Silexx Login ID fees that are incurred during the migration from a period of two months to three months, which does not need to be consecutive. 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.10 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 11 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) 12 requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. Securities Exchange Release No. 102724 (March 13, 2025) 90 FR 14288 (March 31, 2025) (SR–CBOE– 2025–016). 8 See supra[sic] note 13. 9 Id. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). 12 Id. PO 00000 Frm 00209 Fmt 4703 Sfmt 4703 Additionally, the Exchange also believes the proposed rule change is consistent with Section 6(b)(4) of the Act, which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its TPHs and other persons using its facilities. In particular, the Exchange also believes the proposed fee increase for the API for the Legacy Platforms is reasonable, equitable, and not unfairly discriminatory because the fee will apply to all users of the Legacy Platforms who utilize the API. Additionally, the Exchange believes the proposed fee is reasonable as it accounts for administrative costs that Cboe Silexx is incurring, but not charging users, to maintain support for Legacy Platforms while Cboe Silexx transitions away from the Legacy Platforms. As noted earlier, the Exchange is in the process of transitioning the Legacy Platforms to the current version of Cboe Silexx and Silexx FLEX. The Exchange believes that increasing the API fee for the Legacy Platforms also serves as an incentive to market participants to transition to the current version of Cboe Silexx from the Legacy Platforms.13 Further, the Exchange notes that the proposed, new fee structure for the API for the Legacy Platforms maxes out at a monthly fee of $10,000. While the Exchange would like to incentivize market participants to transition to the current version of Cboe Silexx, it does not want the increase in the API fee to be overly prohibitive for firms that may have a larger number of users that they are working to transition. The Exchange also believes that capping the number of API Login IDs a firm may utilize will further incentivize market participants to transition to the current version of Cboe Silexx. The Exchange reiterates that the Silexx, including the Legacy Platforms and Cboe Silexx, is entirely optional for participants and such connectivity is not required to access the Exchange. Of further note, the API feature is an additional optional feature on top of the optional connectivity the Exchange offers to connect. For the above reasons, the Exchange believes that proposed fee increase is reasonable, 13 The Exchange has previously introduced incentives to assist in the migration from the Legacy Platforms to the current version of Cboe Silexx and Silexx Flex by introducing a Data Management fee for users of Legacy Platforms and waiving duplicative Login ID and Market Data Feed fees for Cboe Silexx during a user’s transition period. See Securities Exchange Release No. 99111 (December 7, 2023) 88 FR 86411 (December 13, 2023) (SR– CBOE–2023–064) and Securities Exchange Release No. 98722 (October 11, 2023) 88 FR 71619 (October 17, 2023) (SR–CBOE–2023–060). E:\FR\FM\27MYN1.SGM 27MYN1 Federal Register / Vol. 90, No. 100 / Tuesday, May 27, 2025 / Notices equitable, and not unfairly discriminatory. Next, the Exchange believes that increasing the time permitted for waivers is also reasonable, equitable and not unfairly discriminatory because the waiver applies to users who are already subject to a monthly Login ID fee (albeit for the Legacy Platform), as well as Market Data Feed fees (for those receiving it on the Legacy Platform). Additionally, the fee waiver period will be limited to the timeframe during which such Users have access to the old and new version of Cboe Silexx and would otherwise result in duplicative fees. The Exchange further believes a fee waiver of three months is an appropriate and reasonable amount of time for Users to become familiar with and fully acclimated to the new platform and therefore able to terminate their connection to the Legacy Platforms. The Exchange notes that a timeline of three months is more fitting now, as many of the users who are some of the final users to transition from the Legacy Platforms may have more nuanced issues to address while they are migrating to Cboe Silexx. Finally, the Exchange notes that use of the platform is discretionary and not compulsory, as users can choose to route orders, including to Cboe Options, without the use of the platform. Indeed, the Legacy Platforms are not an exclusive means of trading, and if market participants believe that other products, vendors, front-end builds, etc. available in the marketplace are more beneficial or cost effective than the Legacy Platforms (or the current version of Cboe Silexx and Silexx FLEX), they may simply use those products instead, including for routing orders to the Exchange (indirectly or directly if they are authorized Users). The Exchange makes the platform available as a convenience to market participants, who will continue to have the option to use any order entry and management system available in the marketplace to send orders to the Exchange and other exchanges; the platform is merely an alternative offered by the Exchange. khammond on DSK9W7S144PROD with NOTICES B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change will not impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed rule change will VerDate Sep<11>2014 17:22 May 23, 2025 Jkt 265001 apply to similarly situated participants uniformly, as described in detail above. The Exchange does not believe that the proposed rule changes will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed change applies only to Cboe Options. Additionally, the Legacy Platforms are similar to types of products that are widely available throughout the industry, including from some exchanges and the current version of Cboe Silexx and Silexx FLEX, at similar prices. Further, the proposed rule change relates to (i) an optional feature on an optional platform as it pertains to the proposed fee increase for the API for Legacy Platforms and (ii) further assisting participants in their migration efforts by waiving the Cboe Silexx Login ID fees for an additional month for this optional platform. As discussed, the use of the platform continues to be completely voluntary and market participants will continue to have the flexibility to use any entry and management tool that is proprietary or from third-party vendors, and/or market participants may choose any executing brokers to enter their orders. The Legacy Platforms are not an exclusive means of trading, and if market participants believe that other products, vendors, front-end builds, etc. available in the marketplace are more beneficial than the Legacy Platforms (or the current version of Cboe Silexx and Silexx FLEX), they may simply use those products instead, including for routing orders to the Exchange (indirectly or directly if they are authorized Users). Use of the functionality is completely voluntary. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 14 and paragraph (f) of Rule 19b–4 15 thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of 14 15 15 17 PO 00000 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f). Frm 00210 Fmt 4703 Sfmt 4703 22433 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– CBOE–2025–036 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–2025–036. 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 E:\FR\FM\27MYN1.SGM 27MYN1 22434 Federal Register / Vol. 90, No. 100 / Tuesday, May 27, 2025 / Notices SR–CBOE–2025–036 and should be submitted on or before June 17, 2025. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2025–09405 Filed 5–23–25; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–103090; File No. SR– NYSEARCA–2025–08] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade Shares of the Grayscale XRP Trust Under NYSE Arca Rule 8.201–E, Commodity-Based Trust Shares May 20, 2025. I. Introduction On January 30, 2025, NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to list and trade shares (‘‘Shares’’) of the Grayscale XRP Trust (‘‘Trust’’) under NYSE Arca Rule 8.201– E, Commodity-Based Trust Shares. On February 10, 2025, the Exchange filed Amendment No. 1 to the proposed rule change, which replaced and superseded the original filing in its entirety. The proposed rule change, as modified by Amendment No. 1, was published for comment in the Federal Register on February 20, 2025.3 On March 11, 2025, pursuant to Section 19(b)(2) of the Act,4 the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.5 This order 16 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 102420 (Feb. 13, 2025), 90 FR 10007 (‘‘Notice’’). Comments received on the proposed rule change are available at: https://www.sec.gov/comments/sr-nysearca2025-08/srnysearca202508.htm. 4 15 U.S.C. 78s(b)(2). 5 See Securities Exchange Act Release No. 102584, 90 FR 12408 (Mar. 17, 2025). The Commission designated May 21, 2025, as the date by which the Commission shall approve or disapprove, or institute proceedings to determine khammond on DSK9W7S144PROD with NOTICES 1 15 VerDate Sep<11>2014 17:22 May 23, 2025 Jkt 265001 time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, the II. Summary of the Proposal, as Commission seeks and encourages Modified by Amendment No. 1 interested persons to provide comments As described in more detail in the on the proposed rule change. Notice,7 the Exchange proposes to list Pursuant to Section 19(b)(2)(B) of the and trade the Shares of the Trust under Act,15 the Commission is providing NYSE Arca Rule 8.201–E, which notice of the grounds for disapproval governs the listing and trading of under consideration. The Commission is instituting proceedings to allow for Commodity-Based Trust Shares on the additional analysis of the proposed rule Exchange. According to the Exchange, the change’s consistency with Section investment objective of the Trust is for 6(b)(5) of the Act, which requires, the value of the Shares to reflect the among other things, that the rules of a value of the XRP held by the Trust,8 national securities exchange be determined by reference to the ‘‘Index ‘‘designed to prevent fraudulent and Price,’’ less the Trust’s expenses and manipulative acts and practices’’ and ‘‘to protect investors and the public other liabilities.9 The ‘‘Index Price’’ is interest.’’ 16 the U.S. dollar value of a XRP derived The Commission asks that from the ‘‘Digital Asset Trading commenters address the sufficiency of Platforms’’ 10 that are reflected in the the Exchange’s statements in support of CoinDesk XRP Price Index (XRX) the proposal, which are set forth in the (‘‘Index’’), calculated at 4:00 p.m., New Notice, in addition to any other York time, on each business day.11 The comments they may wish to submit Trust’s assets will consist solely of XRP.12 The Trust will create and redeem about the proposed rule change. In particular, the Commission seeks Shares in cash with authorized comment on whether the proposal to list participants on an ongoing basis in one and trade Shares of the Trust, which or more blocks of 10,000 Shares.13 would hold XRP, is designed to prevent III. Proceedings To Determine Whether fraudulent and manipulative acts and To Approve or Disapprove SR– practices or raises any new or novel NYSEARCA–2025–08 and Grounds for concerns not previously contemplated Disapproval Under Consideration by the Commission. The Commission is instituting IV. Procedure: Request for Written proceedings pursuant to Section Comments 19(b)(2)(B) of the Act 14 to determine The Commission requests that whether the proposed rule change, as interested persons provide written modified by Amendment No. 1, should be approved or disapproved. Institution submissions of their views, data, and arguments with respect to the issues of proceedings is appropriate at this identified above, as well as any other concerns they may have with the whether to disapprove, the proposed rule change, as modified by Amendment No. 1. proposal. In particular, the Commission 6 15 U.S.C. 78s(b)(2)(B). invites the written views of interested 7 See Notice, supra note 3. persons concerning whether the 8 The Exchange states that XRP is a decentralized proposal, as modified by Amendment network of computers that operates on No. 1, is consistent with Section 6(b)(5) cryptographic protocols. See id. at 10009. or any other provision of the Act, and 9 See id. at 10008. Grayscale Operating, LLC and Grayscale Investments Sponsors, LLC are the the rules and regulations thereunder. sponsors of the Trust and are indirect wholly Although there do not appear to be any owned subsidiaries of Digital Currency Group, Inc. issues relevant to approval or The Exchange states that as of May 3, 2025, disapproval that would be facilitated by Grayscale Operating, LLC will cease to act as sponsor of the Trust and Grayscale Investment an oral presentation of views, data, and Sponsors, LLC will be sole sponsor of the Trust. arguments, the Commission will Delaware Trust Company is the trustee of the Trust, consider, pursuant to Rule 19b–4, any and Coinbase Custody Trust Company, LLC is the request for an opportunity to make an custodian for the Trust’s XRP. See id. 10 According to the Exchange, a ‘‘Digital Asset oral presentation.17 institutes proceedings under Section 19(b)(2)(B) of the Act 6 to determine whether to approve or disapprove the proposed rule change, as modified by Amendment No. 1. Trading Platform’’ is an electronic marketplace where trading participants may trade, buy, and sell XRP based on bid-ask trading. See id. at 10008 n.14. 11 See id. at 10008 n.10. The index provider for the Trust is CoinDesk Indices, Inc. See id. at 10008. 12 See id. 13 See id. at 10017–18. 14 15 U.S.C. 78s(b)(2)(B). PO 00000 Frm 00211 Fmt 4703 Sfmt 4703 15 Id. 16 15 U.S.C. 78f(b)(5). 19(b)(2) of the Act, as amended by the Securities Acts Amendments of 1975, Public Law 94–29 (June 4, 1975), grants the Commission flexibility to determine what type of proceeding— either oral or notice and opportunity for written 17 Section E:\FR\FM\27MYN1.SGM 27MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 90, Number 100 (Tuesday, May 27, 2025)]
[Notices]
[Pages 22431-22434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-09405]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-103089; File No. SR-CBOE-2025-036]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Fees Related to the Cboe Legacy Silexx Platform Versions

May 20, 2025.
    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 May 12, 2025, 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 fees related to the Cboe Legacy Silexx platform versions. The 
text of the proposed rule change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the 
Exchange's website (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the 
Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend fees related to the Cboe Legacy 
Silexx platform versions (collectively, the ``Legacy Platforms'' as 
further described herein) and to extend the time of a fee waiver 
currently offered for Cboe Silexx, effective May 1, 2025.\3\ By way of 
background, the Exchange offers several versions of its Silexx 
platform. Originally, the Exchange offered the following versions of 
the Silexx platform: Basic, Pro, Pro Plus Risk and Buy-Side Manager 
(``Legacy Platforms''). The Legacy Platforms are designed so that a 
User may enter orders into the platform to send to the executing 
broker, including TPHs, of its choice with connectivity to the 
platform. The executing broker can then send orders to Cboe Options (if 
the broker-dealer is a Trading Permit Holder (``TPH'')) or other U.S. 
exchanges (and trading centers) in accordance with the User's 
instructions. Users cannot directly route orders through any of the 
Legacy Platforms to an exchange or trading center nor is the platform 
integrated into or directly connected to Cboe Option's System. In 2019, 
the Exchange made available a new version of the Silexx

[[Page 22432]]

platform, Silexx FLEX, which supports the trading of FLEX Options and 
allows authorized Users with direct access to the Exchange to establish 
connectivity and submit orders directly to the Exchange.\4\ In 2020, 
the Exchange made an additional version of the Silexx platform 
available, Cboe Silexx, which supports the trading of non-FLEX Options 
and allows authorized Users with direct access to the Exchange to 
establish connectivity and submit orders directly to the Exchange.\5\ 
Cboe Silexx is essentially the same platform as Silexx FLEX, with the 
same applicable functionality, except that it additionally supports 
non-FLEX trading. As noted in previous filings, the Exchange is in the 
process of transitioning the Legacy Platforms to the current version of 
Cboe Silexx and Silexx FLEX.\6\ As the Exchange is actively 
transitioning away from the Legacy Platforms, and in the meantime is 
expending time and resources to maintain both platforms, the Exchange 
previously proposed to increase the fees for the Legacy Platforms.\7\ 
For this same reason, the Exchange now proposes to increase the API fee 
for the Legacy Platforms from a $200/month/login ID fee to $2,000/
month/login ID for logins 1-5 and a fee of $0/month/login ID for logins 
6-10 for a firm and shall be capped at 10 login IDs.
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    \3\ The Exchange initially submitted the proposed rule change on 
May 1, 2025 (SR-CBOE-2025-032). On May 12, 2025, the Exchange 
withdrew that filing and submitted this filing.
    \4\ See Securities Exchange Act Release No. 87028 (September 19, 
2019) 84 FR 50529 (September 25, 2019) (SR-CBOE-2019-061). Only 
Users authorized for direct access and who are approved to trade 
FLEX Options may trade FLEX Options via Cboe Silexx. Only authorized 
Users and associated persons of Users may establish connectivity to 
and directly access the Exchange, pursuant to Rule 5.5 and the 
Exchange's technical specifications.
    \5\ See Securities Exchange Act Release No. 88741 (April 24, 
2020) 85 FR 24045 (April 30, 2020) (SR-CBOE-2020-040). Only 
authorized Users and associated persons of Users may establish 
connectivity to and directly access the Exchange, pursuant to Rule 
5.5 and the Exchange's technical specifications.
    \6\ See Securities Exchange Release No. 98722 (October 11, 2023) 
88 FR 71619 (October 17, 2023) (SR-CBOE-2023-060). Only authorized 
Users and associated persons of Users will continue to be able to 
establish connectivity to and directly access the Exchange, pursuant 
to Rule 5.5 and the Exchange's technical specifications. 
Unauthorized Users will not be able to connect directly to the 
Exchange. The new Cboe Silexx platform will function in the same 
manner as the Legacy Platforms versions currently available to 
Users: it will be completely voluntary; orders entered through the 
platform will receive no preferential treatment as compared to 
orders electronically sent to Cboe Options in any other manner; 
orders entered through the platform will be subject to current 
trading rules in the same manner as all other orders sent to the 
Exchange, which is the same as orders that are sent through the 
Exchange's System today; the Exchange's System will not distinguish 
between orders sent from Silexx and orders sent in any other manner; 
and Silexx will provide technical support, maintenance and user 
training for the new platform version upon the same terms and 
conditions for all Users. The Exchange plans to decommission the 
Legacy Platforms at a future to-be-determined date, at which time 
the Legacy Platforms will be unavailable to users.
    \7\ See Securities Exchange Release No. 102185 (January 14, 
2025) 90 FR 7200 (January 21, 2025) (SR-CBOE-2025-001); Securities 
Exchange Release No. 102398 (February 11, 2025) 90 FR 9781 (February 
18, 2025) (SR-CBOE-2025-005); and Securities Exchange Release No. 
102724 (March 13, 2025) 90 FR 14288 (March 31, 2025) (SR-CBOE-2025-
016).
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    The Exchange previously introduced a fee waiver of two months to 
allow users of Cboe Silexx to transition to the new version of the 
platform without incurring duplicative Login ID and Market Data Feed 
fees for access to both the old and new versions of Cboe Silexx during 
this transitional period.\8\ The Exchange further noted that it 
believed not assessing duplicative fees for Users transitioning to Cboe 
Silexx would serve as an incentive to market participants to start 
using the Cboe Silexx platform, while also providing time and 
flexibility for such Users to become familiar with and fully acclimated 
to the new platform.\9\ For this same reason, the Exchange now proposes 
to extend the existing fee waiver for Cboe Silexx Login ID fees that 
are incurred during the migration from a period of two months to three 
months, which does not need to be consecutive.
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    \8\ See supra[sic] note 13.
    \9\ Id.
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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.\10\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \11\ 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) \12\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. Additionally, the Exchange also believes the 
proposed rule change is consistent with Section 6(b)(4) of the Act, 
which requires that Exchange rules provide for the equitable allocation 
of reasonable dues, fees, and other charges among its TPHs and other 
persons using its facilities.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
    \12\ Id.
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    In particular, the Exchange also believes the proposed fee increase 
for the API for the Legacy Platforms is reasonable, equitable, and not 
unfairly discriminatory because the fee will apply to all users of the 
Legacy Platforms who utilize the API. Additionally, the Exchange 
believes the proposed fee is reasonable as it accounts for 
administrative costs that Cboe Silexx is incurring, but not charging 
users, to maintain support for Legacy Platforms while Cboe Silexx 
transitions away from the Legacy Platforms. As noted earlier, the 
Exchange is in the process of transitioning the Legacy Platforms to the 
current version of Cboe Silexx and Silexx FLEX. The Exchange believes 
that increasing the API fee for the Legacy Platforms also serves as an 
incentive to market participants to transition to the current version 
of Cboe Silexx from the Legacy Platforms.\13\ Further, the Exchange 
notes that the proposed, new fee structure for the API for the Legacy 
Platforms maxes out at a monthly fee of $10,000. While the Exchange 
would like to incentivize market participants to transition to the 
current version of Cboe Silexx, it does not want the increase in the 
API fee to be overly prohibitive for firms that may have a larger 
number of users that they are working to transition. The Exchange also 
believes that capping the number of API Login IDs a firm may utilize 
will further incentivize market participants to transition to the 
current version of Cboe Silexx. The Exchange reiterates that the 
Silexx, including the Legacy Platforms and Cboe Silexx, is entirely 
optional for participants and such connectivity is not required to 
access the Exchange. Of further note, the API feature is an additional 
optional feature on top of the optional connectivity the Exchange 
offers to connect. For the above reasons, the Exchange believes that 
proposed fee increase is reasonable,

[[Page 22433]]

equitable, and not unfairly discriminatory.
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    \13\ The Exchange has previously introduced incentives to assist 
in the migration from the Legacy Platforms to the current version of 
Cboe Silexx and Silexx Flex by introducing a Data Management fee for 
users of Legacy Platforms and waiving duplicative Login ID and 
Market Data Feed fees for Cboe Silexx during a user's transition 
period. See Securities Exchange Release No. 99111 (December 7, 2023) 
88 FR 86411 (December 13, 2023) (SR-CBOE-2023-064) and Securities 
Exchange Release No. 98722 (October 11, 2023) 88 FR 71619 (October 
17, 2023) (SR-CBOE-2023-060).
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    Next, the Exchange believes that increasing the time permitted for 
waivers is also reasonable, equitable and not unfairly discriminatory 
because the waiver applies to users who are already subject to a 
monthly Login ID fee (albeit for the Legacy Platform), as well as 
Market Data Feed fees (for those receiving it on the Legacy Platform). 
Additionally, the fee waiver period will be limited to the timeframe 
during which such Users have access to the old and new version of Cboe 
Silexx and would otherwise result in duplicative fees. The Exchange 
further believes a fee waiver of three months is an appropriate and 
reasonable amount of time for Users to become familiar with and fully 
acclimated to the new platform and therefore able to terminate their 
connection to the Legacy Platforms. The Exchange notes that a timeline 
of three months is more fitting now, as many of the users who are some 
of the final users to transition from the Legacy Platforms may have 
more nuanced issues to address while they are migrating to Cboe Silexx.
    Finally, the Exchange notes that use of the platform is 
discretionary and not compulsory, as users can choose to route orders, 
including to Cboe Options, without the use of the platform. Indeed, the 
Legacy Platforms are not an exclusive means of trading, and if market 
participants believe that other products, vendors, front-end builds, 
etc. available in the marketplace are more beneficial or cost effective 
than the Legacy Platforms (or the current version of Cboe Silexx and 
Silexx FLEX), they may simply use those products instead, including for 
routing orders to the Exchange (indirectly or directly if they are 
authorized Users). The Exchange makes the platform available as a 
convenience to market participants, who will continue to have the 
option to use any order entry and management system available in the 
marketplace to send orders to the Exchange and other exchanges; the 
platform is merely an alternative offered by the Exchange.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed change will not 
impose any burden on intramarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act because the 
proposed rule change will apply to similarly situated participants 
uniformly, as described in detail above.
    The Exchange does not believe that the proposed rule changes will 
impose any burden on intermarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act because the 
proposed change applies only to Cboe Options. Additionally, the Legacy 
Platforms are similar to types of products that are widely available 
throughout the industry, including from some exchanges and the current 
version of Cboe Silexx and Silexx FLEX, at similar prices. Further, the 
proposed rule change relates to (i) an optional feature on an optional 
platform as it pertains to the proposed fee increase for the API for 
Legacy Platforms and (ii) further assisting participants in their 
migration efforts by waiving the Cboe Silexx Login ID fees for an 
additional month for this optional platform. As discussed, the use of 
the platform continues to be completely voluntary and market 
participants will continue to have the flexibility to use any entry and 
management tool that is proprietary or from third-party vendors, and/or 
market participants may choose any executing brokers to enter their 
orders. The Legacy Platforms are not an exclusive means of trading, and 
if market participants believe that other products, vendors, front-end 
builds, etc. available in the marketplace are more beneficial than the 
Legacy Platforms (or the current version of Cboe Silexx and Silexx 
FLEX), they may simply use those products instead, including for 
routing orders to the Exchange (indirectly or directly if they are 
authorized Users). Use of the functionality is completely voluntary.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \14\ and paragraph (f) of Rule 19b-4 \15\ 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f).
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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-2025-036 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-2025-036. 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

[[Page 22434]]

SR-CBOE-2025-036 and should be submitted on or before June 17, 2025.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-09405 Filed 5-23-25; 8:45 am]
BILLING CODE 8011-01-P

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