8011-01P
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100426; File No. SR-CBOE-2024-027]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change to Amend its Fees Schedule
June 25, 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 June 12, 2024, Cboe Exchange, Inc. (the
“Exchange” or “Cboe Options”) filed with the Securities and Exchange Commission (the
“Commission”) the proposed rule change as described in Items I, II, and III below, which Items
have been prepared by the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
I.

Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule
Change
Cboe Exchange, Inc. (the “Exchange” or “Cboe Options”) proposes to amend its Fees

Schedule. The text of the proposed rule change is provided in Exhibit 5.
The text of the proposed rule change is also available on the Exchange’s website
(http://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

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

17 CFR 240.19b-4.

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, effective June 3, 2024.3 Specifically,
the Exchange proposes to adopt and amend certain fees related to transactions in Mini-SPX
Index (“XSP”) options. Specifically, the proposed rule change amends and adopts certain fees
for XSP in the Rate Table for All Products Excluding Underlying Symbol List A, as follows:
•

Adopts fee code MP, appended to all Market-Maker (capacity “M”) orders in
XSP that are executed manually (i.e., open outcry) and assesses a fee of $0.15 per
contract; and amends fee code MC, currently appended to all Market-Maker
(capacity “M”) orders in XSP that are contra customer (executed manually and
electronically) and assesses a fee of $0.15 per contract, to apply only to MarketMaker (capacity “M”) orders in XSP that are contra customer and that are
executed electronically.

•

Amends fee code MX, currently appended to all Market-Maker (capacity “M”)
orders in XSP contra to non-customers and assesses a fee of $0.09 per contract, to
apply to all Market-Maker orders in XSP contra to non-customers that add
liquidity and that are executed electronically.

•

Adopts fee code MY, appended to all Market-Maker (capacity “M”) in XSP
contra to non-customers that remove liquidity and that are executed electronically
and assesses a fee of $0.14 per contract.

The Exchange initially filed the proposed fee changes on June 3, 2024 (SR-CBOE-2024-024). On June 11,
2024, the Exchange withdrew that filing and submitted SR-CBOE-2024-026. On June 12, 2024, the
Exchange withdrew that filing and submitted this proposal.

•

Amends fee code XF, appended to all Clearing Trading Permit Holders (“TPHs”)
(capacity “F”) and Non-Clearing TPH Affiliates (capacity “L”) orders in XSP and
assesses a fee of $0.13, to apply to all Clearing Trading Permit Holders (“TPHs”)
(capacity “F”), Non-Clearing TPH Affiliates (capacity “L”), Broker-Dealer
(capacity “B”), Joint Back-Office (capacity “J”), Non-TPH Market-Maker
(capacity “N”), and Professional (capacity “U”) (collectively, “Non-Market
Makers, Non-Customers”) orders in XSP contra to a customer or contra to a noncustomer that add liquidity and to assess a fee of $0.30 per contract.

•

Amends fee code XB, appended to all Broker-Dealer (capacity “B”), Joint BackOffice (capacity “J”), Non-TPH Market-Maker (capacity “N”), and Professional
(capacity “U”) orders in XSP and assesses a fee of $0.17 per contract, to apply to
all Non-Market Maker, Non-Customer orders in XSP contra to a non-customer
that remove liquidity and to assess a fee of $0.50 per contract.

Adopts fee code XN, appended to all Non-Market Maker, Non-Customer orders in XSP
that are executed manually (i.e., open outcry) and assesses a fee of $0.30 per contract.
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.4 Specifically, the
Exchange believes the proposed rule change is consistent with the Section 6(b)(5)5 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

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

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

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)6 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,7 which
requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and
other charges among its Trading Permit Holders and other persons using its facilities.
The Exchange believes that the proposed fees for Market-Maker and Non-Customer, NonMarket Maker orders in XSP are reasonable, equitable and not unfairly discriminatory.
The Exchange believes the proposed changes to the fee structure for Market-Maker orders in XSP
are reasonable. The proposed fees, in general, align with current fees for Market-Maker orders in
XSP, with minor distinctions based on execution method, capacity of the contra-party, and orders
that add liquidity and those that remove liquidity. The Exchange notes that it is not novel to charge
different fees based on capacity of contra-party, and that current fees for Market-Maker orders in
XSP contain such a distinction. Further, other exchanges offer varying fees based on whether an
order adds or removes liquidity.8
The Exchange believes it is reasonable to assess lower fees for Market-Maker orders in XSP
that are contra to a non-customer and add liquidity, and are executed electronically, as such changes
are designed to incentivize an increase in non-customer liquidity-adding volume in XSP on the
Exchange. The Exchange believes that incentivizing more non-customer orders in XSP will create
more trading opportunities, which, in turn attracts Market-Makers. A resulting increase in MarketMaker activity facilitates tighter spreads, which may lead to additional increase of order flow in
XSP from other market participants, further contributing to a deeper, more liquid market to the

Id.

15 U.S.C. 78f(b)(4).

See EDGX Options Fees Schedule and BZX Options Fees Schedule.

benefit of all market participants by creating a more robust and well-balanced market ecosystem.
Further, the Exchange believes that the changes are reasonable and that the fees, even as amended,
will continue to incentivize TPHs to send additional Market-Maker orders to the Exchange.
Additionally, the Exchange believes that it is equitable and not unfairly discriminatory to
assess lower fees, in general, to Market-Makers as compared to other market participants other than
Customers because Market-Makers, unlike other market participants, take on a number of
obligations, including quoting obligations, that other market participants do not have. Further, these
lower fees offered to Market-Makers are intended to incent Market-Makers to quote and trade more
on the Exchange, thereby providing more trading opportunities for all market participants.
The Exchange also believes the proposed changes to the fee structure for Non-Customer,
Non-Market Maker orders in XSP are reasonable. As noted above, it is not novel to charge different
fees based on capacity of contra-party, and other exchanges offer varying fees based on whether an
order adds or removes liquidity.9 The Exchange believes assessing higher fees in general for NonCustomer, Non-Market Maker orders is reasonable, equitable, and non-discriminatory because, as
noted above, the obligations and circumstances between market participants differ. The Exchange
believes assessing a higher fee for Non-Customer, Non-Market Maker XSP orders contra a noncustomer that remove liquidity and are executed electronically is reasonable because it provides an
incentive to maintain non-customer liquidity at the Exchange, thereby promoting price discovery
and enhancing order execution opportunities for all TPHs. Similarly, the Exchange believes
assessing a lower fee for Non-Customer, Non-Market Maker XSP orders contra to a customer or
contra to a non-customer that add liquidity and are executed electronically is reasonable because it
provides an incentive to add liquidity at the Exchange, including in customer volume, thereby
promoting price discovery and enhancing order execution opportunities for all TPHs. Finally, while
the fees proposed apply to an Exchange proprietary product, which are traded exclusively on the

See EDGX Options Fees Schedule and BZX Options Fees Schedule.

Exchange, the Exchange notes that the proposed fees are generally in line with the options trading
fees of at least one other exchange.10
The Exchange believes that the proposed fees for Market-Maker and Non-Customer,
Non-Market Maker orders in XSP are equitable and not unfairly discriminatory because the
proposed fees will apply automatically and uniformly to all Market-Maker and Non-Customer,
Non-Market Maker orders in XSP, as applicable. The Exchange notes that all fee amounts
applicable to Market-Makers will be applied equally to all Market-Makers, i.e., all Market
Makers will be assessed the same amount. Similarly, the Exchange notes that the XSP fee
amounts for each separate type of other market participant will be assessed equally to all such
market participants, i.e., all Non-Customer and Non-Market-Maker orders will be assessed the
same amount.
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 that the proposed rule change will impose any burden on intramarket
competition that is not necessary or appropriate in furtherance of the purposes of the Act because
the XSP fee amounts for each separate type of market participants will be assessed equally to all
such market participants. While different fees are assessed to different market participants in
some circumstances, the obligations and circumstances between these market participants differ,
as discussed above. For example, Market-Makers have quoting obligations that are not
applicable to other market participants. Further, the proposed fees structure for XSP is intended
to encourage more trading of XSP, which brings liquidity to the Exchange and benefits all
market participants.
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
See BOX Fees Schedule, Section IV(A).

Act because the proposed fees assessed apply to an Exchange proprietary product, which are
traded exclusively on the Exchange.
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

Act11 and paragraph (f) of Rule 19b-412 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-CBOE-2024-027 on the subject line.

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

17 CFR 240.19b-4(f).

Paper Comments:
•

Send paper comments in triplicate to Secretary, Securities and Exchange
Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number SR-CBOE-2024-027. This file number
should be included on the subject line if email is used. To help the Commission process and
review your comments more efficiently, please use only one method. The Commission will post
all comments on the Commission’s internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written statements with respect to the
proposed rule change that are filed with the Commission, and all written communications
relating to the proposed rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission’s Public Reference Room, 100 F
Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3
p.m. Copies of the filing also will be available for inspection and copying at the principal office
of the Exchange. Do not include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We may redact in part or
withhold entirely from publication submitted material that is obscene or subject to copyright
protection. All submissions should refer to file number SR-CBOE-2024-027 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.13
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-14385 Filed: 6/28/2024 8:45 am; Publication Date: 7/1/2024]

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