8011-01p
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100260; File No. SR-CboeEDGX-2024-031]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change to Delay Implementation of a New
Connectivity Offering Through Dedicated Cores
June 3, 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 May 31, 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 and II below, which Items have
been prepared by the Exchange. The Exchange filed the proposal as a “non-controversial”
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act3 and Rule 19b-4(f)(6)
thereunder.4 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 delay

implementation of a new connectivity offering.
The text of the proposed rule change is also available on the Exchange’s website
(http://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.

15 U.S.C. 78s(b)(1).

17 CFR 240.19b-4.

15 U.S.C. 78s(b)(3)(A)(iii).

17 CFR 240.19b-4(f)(6).

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 delay the implementation of Dedicated Cores. The Exchange
previously filed SR-CboeEDGX-2024-026 to establish Dedicated Cores effective June 3, 2024.5
By way of background, SR-CboeEDGX-2024-026 proposed to introduce a new
connectivity offering relating to the use of Dedicated Cores. Historically, Central Processing
Units (“CPU Cores”) have been shared by logical order entry ports (i.e., multiple logical ports
from multiple firms may connect to a single CPU Core). The introduction of Dedicated Cores
would allow Users6 to assign a single Binary Order Entry (“BOE”) logical order entry port7 to a
single dedicated CPU Core (“Dedicated Core”).8 Use of Dedicated Cores can provide reduced
latency, enhanced throughput, and improved performance since a firm using a Dedicated Core is

See Securities Exchange Act Release No. 97658 (May 20, 2024), 89 FR 45930 (May 24, 2024) (SRCboeEDGX-2024-026) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Introduce a New Connectivity Offering Through Dedicated Cores) (“SR-CboeEDGX-2024-026”).

A User may be either a Member or Sponsored Participant. The term “Member” shall mean any registered
broker or dealer that has been admitted to membership in the Exchange, limited liability company or other
organization which is a registered broker or dealer pursuant to Section 15 of the Act, and which has been
approved by the Exchange. A Sponsored Participant may be a Member or non-Member of the Exchange
whose direct electronic access to the Exchange is authorized by a Sponsoring Member subject to certain
conditions. See Exchange Rule 11.3.

Users may currently connect to the Exchange using a logical port available through an application
programming interface (“API”), such as the Binary Order Entry (“BOE”) protocol. A BOE logical order
entry port is used for order entry.

The Exchange notes that firms will not have physical access to their Dedicated Core and thus cannot make
any modifications to the Dedicated Core or server. All Dedicated Cores (including servers used for this
service) are owned and operated by the Exchange.

utilizing the full processing power of a CPU Core instead of sharing that power with other firms.
This offering is completely voluntary and will be available to all Users.9 Users will also
continue to have the option to utilize BOE logical order entry ports on shared CPU Cores as they
do today, either in lieu of, or in addition to, their use of Dedicated Core(s). As such, Users will
be able to operate across a mix of shared and dedicated CPU Cores which the Exchange believes
provides additional risk and capacity management, especially during times of market volatility
and high message traffic. Further, Dedicated Cores are not required nor necessary to participate
on the Exchange and as such Users may opt not to use Dedicated Cores at all.
SR-CboeEDGX-2024-026 stated that the rule change would be implemented on June 3,
2024. At this time, the Exchange proposes to delay the implementation of SR-CboeEDGX2023-026 [sic] to on or after July 1, 2024 to permit the Exchange additional time to implement
Dedicated Cores in the Exchange’s data center. The Exchange would issue a Trade Desk Notice
announcing the exact implementation date to members and member organizations.
2.

Statutory Basis

The Exchange believes that its proposal is consistent with Section 6(b) of the Act,10 in
general, and furthers the objectives of Section 6(b)(5) of the Act,11 in particular, in that it is
designed to promote just and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system, and, in general to protect
investors and the public interest. The Exchange’s proposal to delay the implementation of SRCboeEDGX-2024-026 to on or after July 1, 2024 is consistent with the Act and the protection of
investors and the general public as it will permit the Exchange additional time to ensure the
Exchange’s data center can accommodate the proposed Dedicated Cores. As noted, the

The Exchange intends to submit a separate rule filing to adopt monthly fees related to the use of Dedicated
Cores.

15 U.S.C. 78f(b)

15 U.S.C. 78f(b)(5).

Exchange would issue a Trade Desk Notice announcing the exact implementation date to
members and member organizations.
B.

Self-Regulatory Organization’s Statement on Burden on Competition

The proposed rule change does not impose any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act. The Exchange’s proposal to
delay the implementation of SR-CboeEDGX-2024-026 to on or after July 1, 2024 does not
impose any burden on competition as it will permit the Exchange additional time to implement
Dedicated Cores.
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
Because the foregoing proposed rule change does not: (i) significantly affect the

protection of investors or the public interest; (ii) impose any significant burden on competition;
and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter
time as the Commission may designate, if consistent with the protection of investors and the
public interest, the proposed rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act12 and Rule 19b-4(f)(6) thereunder.13
A proposed rule change filed under Rule 19b-4(f)(6)14 normally does not become
operative prior to 30 days after the date of the filing. However, pursuant to Rule
19b-4(f)(6)(iii),15 the Commission may designate a shorter time if such action is consistent with
the protection of investors and the public interest.

15 U.S.C. 78s(b)(3)(A)(iii).

17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the
Commission written notice of its intent to file the proposed rule change, along with a brief description and
text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The Exchange has satisfied this
requirement.

17 CFR 240.19b-4(f)(6).

17 CFR 240.19b-4(f)(6)(iii).

The Exchange has asked the Commission to waive the 30-day operative delay so that the
proposal may become operative immediately upon filing. Waiver of the operative delay would
allow the Exchange to immediately delay the implementation of SR-CboeEDGX-2024-026 to
establish Dedicated Cores and provide the Exchange additional time to ensure readiness at the
Exchange’s data center for implementation of Dedicated Cores on or after July 1, 2024. The
Commission believes that the proposed rule change presents no novel legal or regulatory issues,
and that waiver of the 30-day operative delay is consistent with the protection of investors and
the public interest. Accordingly, the Commission hereby waives the 30-day operative delay and
designates the proposed rule change operative upon filing.16
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 shall institute proceedings under Section 19(b)(2)(B) of the Act17 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

For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed
rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f).

15 U.S.C. 78s(b)(2)(B).

SR-CboeEDGX-2024-031 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-2024-031. 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-2024-031 and should be
submitted on or before [INSERT DATE 21 DAYS AFTER DATE OF PUBLICATION IN THE
FEDERAL REGISTER].
For the Commission, by the Division of Trading and Markets, pursuant to delegated
authority.18

17 CFR 200.30-3(a)(12), (59).

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-12465 Filed: 6/6/2024 8:45 am; Publication Date: 6/7/2024]