58334 Federal Register / Vol. 88, No. 164 / Friday, August 25, 2023 / Notices 

25 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The ETF Implied Liquidity Feed was adopted in 

2017. See Securities Exchange Act Release No. 

80580 (May 3, 2017), 82 FR 21585 (May 9, 2017) 

(SR–BatsBZX–2017–25) and Securities Exchange 

Act Release No. 80772 (May 25, 2017), 82 FR 25389 

(June 1, 2017) (SR–BatsBZX–2017–036). 

4The Exchange’s affiliates are Cboe EDGA 

Exchange, Inc., (‘‘EDGA’’), Cboe EDGX Exchange, 

Inc. (‘‘EDGX’’), and Cboe BYX Exchange, Inc. 

(‘‘BYX’’) (‘‘collectively, the ‘‘Bats Exchanges’’). 

5The securities underlying each of the U.S. 

equity ETFs included in the proposed feed must be 

considered NMS Securities as defined under Rule 

600(b)(46) of Regulation NMS. 17 CFR 

242.600(b)(46) 

6A ‘‘Distributor’’ is defined as ‘‘any entity that 

receives the Exchange Market Data product directly 

from the Exchange or indirectly through another 

entity and then distributes it internally or externally 

to a third party.’’ An ‘‘Internal Distributor’’ is 

defined as ‘‘a Distributor that receives the Exchange 

Market Data product and then distributes that data 

to one or more Users within the Distributor’s own 

entity.’’ An ‘‘External Distributor’’ is defined as ‘‘a 

Distributor that receives the Exchange Market Data 

product and then distributes that data to a third 

party or one or more Users outside the Distributor’s 

own entity.’’ 

7A Professional User of an Exchange Market Data 

product is any User other than a Non-Professional 

User. 

8A ‘‘Non-Professional User’’ of an Exchange 

Market Data product is a natural person or 

qualifying trust that uses Data only for personal 

purposes and not for any commercial purpose and, 

for a natural person who works in the United States, 

is not: (i) registered or qualified in any capacity 

with the Securities and Exchange Commission, the 

Commodities Futures Trading Commission, any 

state securities agency, any securities exchange or 

association, or any commodities or futures contract 

market or association; (ii) engaged as an 

‘‘investment adviser’’ as that term is defined in 

section 202(a)(11) of the Investment Advisors Act 

of 1940 (whether or not registered or qualified 

under that Act); or (iii) employed by a bank or other 

organization exempt from registration under federal 

or state securities laws to perform functions that 

would require registration or qualification if such 

functions were performed for an organization not so 

exempt; or, for a natural person who works outside 

of the United States, does not perform the same 

functions as would disqualify such person as a 

Non-Professional User if he or she worked in the 

United States. 

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–MRX–2023–14 and should be 

submitted on or before September 15, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–18306 Filed 8–24–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98183; File No. SR– 

CboeBZX–2023–060] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule To Eliminate Reference 

to the ETF Implied Liquidity Feed and 

Corresponding Fees 

August 21, 2023. 

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 August 8, 

2023, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) 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 BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’ or ‘‘BZX 

Equities’’) proposes to amend its Fee 

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://markets.cboe.com/us/ 

equities/regulation/rule_filings/bzx/), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Fee Schedule applicable to its equities 

trading platform (‘‘BZX Equities’’) to 

eliminate reference to the ETF Implied 

Liquidity Feed and corresponding fees, 

effective August 8, 2023. 

The Exchange proposes to amend the 

Market Data section of its fee schedule 

to eliminate reference to, and 

corresponding fees for, a market data 

product called the ETF Implied 

Liquidity Feed.3 The ETF Implied 

Liquidity feed is an optional data feed 

that provides the Exchange’s proprietary 

calculation of the implied liquidity and 

the aggregate best bid and offer (‘‘BBO’’) 

of all displayed orders on the Exchange 

and its affiliated exchanges 4 for all 

standard, non-leveraged U.S. equity 

Exchange Traded Funds (‘‘ETFs’’) 

traded on the System.5 An ETF’s 

implied liquidity disseminated via the 

feed consists of the ETF’s implied BBO 

(including the implied size) calculated 

via a proprietary methodology based on 

the national best bid and offer 

(‘‘NBBO’’), the number of shares of 

securities underlying one creation unit 

of the ETF, and the estimated cash 

included in one creation unit of the 

ETF. The Exchange disseminates the 

aggregate BBO through the ETF Implied 

Liquidity feed no earlier than it 

provides its BBO to the processors 

under the CTA Plan or the Nasdaq/UTP 

Plan. The Exchange currently assesses 

(i) Distribution Fees for both Internal 

and External, Distributors 6 (ii) Usage 

Fees for both Professional 7 and NonProfessional 8 Users; and a (iii) Data 

Consolidation fee. Specifically, the 

Exchange assesses (i) Internal 

Distributors a monthly fee of $1,500 and 

External Distributors a monthly fee of 

$5,000; (ii) Professional Users a monthly 

fee of $0.25 (if receiving internally) or 

$25 (if receiving externally); (iii) NonProfessional Users a monthly fee of 

$1.00 (whether receiving internally or 

externally); and a monthly Data 

Consolidation Fee of $500. The Fee 

Schedule currently provides that 

Distributors of the Cboe One Feed (as 

described in Rule 11.22(j)) may also 

receive upon request access to the ETF 

Implied Liquidity Feed without 

incurring an additional Logical Port fee 

for the ETF Implied Liquidity Feed. It 

also provides that External Distributors 

of the Cboe One Feed will also receive 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 164 / Friday, August 25, 2023 / Notices 58335 

9The Exchange intends to also submit a 

corresponding rule filing to eliminate reference to 

this feed in the Exchange’s Rulebook under 

Exchange Rule 11.22(n). See SR–CboeBZX–2023– 

059. 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

12 Id. 

13 15 U.S.C. 78f(b)(4) 

14See Exchange Notice C2023073104, ‘‘Cboe 

Equities Fee Schedule Updates Effective August 1, 

2023’’ issued on July 31, 2023 available at https:// 

cdn.cboe.com/resources/fee_schedule/2023/CboeEquities-Exchanges-Fee-Schedule-UpdatesEffective-August-1-2023.pdf. 

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

16 17 CFR 240.19b–4(f). 

upon request access to the ETF Implied 

Liquidity Feed for external distribution 

only without incurring an additional 

Distributor fee or, if an External 

Distributor, the Data Consolidation fee 

for the ETF Implied Liquidity Feed. 

Currently there are no market 

participants that are taking the ETF 

Implied Liquidity feed. As such, the 

Exchange no longer wishes to maintain 

or offer this product and therefore 

proposes to decommission the ETF 

Implied Liquidity feed and delete the 

corresponding reference to the product 

from its Fee Schedule.9

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with 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 as 

well as section 6(b)(4) 13 as it is designed 

to provide for the equitable allocation of 

reasonable dues, fees and other charges 

among its Members and other persons 

using its facilities. 

In particular, the Exchange believes 

that the proposal to decommission the 

ETF Implied Liquidity feed and remove 

reference to the feed and corresponding 

fees in the Fee Schedule is appropriate 

given the non-usage of the product 

among market participants. Further, the 

ETF Implied Liquidity feed is optional, 

and its use is not a prerequisite for 

trading on the Exchange. The Exchange 

also notes that is not required to 

maintain or offer any one proprietary 

market data product, including the ETF 

Implied Liquidity feed. The Exchange 

also believes that the proposed rule 

change is fair and equitable and is not 

designed to permit unfair 

discrimination as it applies uniformly to 

all Members (i.e., the product will no 

longer be available for any Member). 

Eliminating reference to this feed in the 

Exchange’s Fee Schedule will promote 

clarity in the rules as to what data 

products may or may not be available. 

The Exchange has also provided notice 

of such termination.14

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 ETF 

Implied Liquidity feed is an optional 

data feed offered by the Exchange, it is 

not a prerequisite to trading on the 

Exchange, and the Exchange is not 

required to offer or maintain such feed. 

The Exchange believes that the 

proposed deletion does impose any 

intramarket competition as it applies to 

all Members (i.e. the product will no 

longer be available to any Member). The 

Exchange believes that the proposed 

rule change also does not impose any 

undue burden on intermarket 

competition. The ETF Implied Liquidity 

feed is an optional data product offered 

by the Exchange and market 

participants are not required to 

subscribe to it and the Exchange is not 

required to offer it. Moreover, the 

proposed change is not being submitted 

for competitive reasons, but rather to 

eliminate a data product that is not 

being actively used by market 

participants today. 

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 15 and paragraph (f) of Rule 

19b–4 16 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–2023–060 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–2023–060. 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 


ddrumheller on DSK120RN23PROD with NOTICES1
58336 Federal Register / Vol. 88, No. 164 / Friday, August 25, 2023 / Notices 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed fee 

changes on August 1, 2023 (SR–CBOE–2023–037). 

On August 2, 2023, the Exchange withdrew that 

filing and submitted SR–CBOE–2023–039. On 

August 11, 2023 the Exchange withdrew SR–CBOE– 

2023–039 and submitted this proposal. 

4See Cboe Global Markets U.S. Options Monthly 

Market Volume Summary (July 26, 2023), available 

at https://markets.cboe.com/us/options/market_

statistics/. 

5For this program, an ‘‘Originating Clearing 

Firm’’ is defined as either (a) the executing clearing 

Options Clearing Corporation (‘‘OCC’’) number on 

any transaction which does not also include a 

Clearing Member Trading Agreement (‘‘CMTA’’) 

OCC clearing number or (b) the CMTA in the case 

of any transaction which does include a CMTA 

OCC clearing number. 

6See Securities Exchange Act Release No. 96856 

(February 9, 2023), 88 FR 9938 (February 15, 2023) 

(SR–CBOE–2023–011). 

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–2023–060 and should be 

submitted on or before September 15, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–18305 Filed 8–24–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98187; File No. SR–CBOE– 

2023–040] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fees 

Schedule Relating to the Select 

Customer Options Reduction Program, 

Livevol Fees, and Routing Fee Codes 

August 21, 2023. 

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 August 

11, 2023, 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 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.3

The Exchange first notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive or 

incentives to be insufficient. More 

specifically, the Exchange is only one of 

16 options venues to which market 

participants may direct their order flow. 

Based on publicly available information, 

no single options exchange has more 

than 16% of the market share.4 Thus, in 

such a low-concentrated and highly 

competitive market, no single options 

exchange possesses significant pricing 

power in the execution of option order 

flow. The Exchange believes that the 

ever-shifting market share among the 

exchanges from month to month 

demonstrates that market participants 

can shift order flow or discontinue to 

reduce use of certain categories of 

products in response to fee changes. 

Accordingly, competitive forces 

constrain the Exchange’s transaction 

fees, and market participants can readily 

trade on competing venues if they deem 

pricing levels at those other venues to 

be more favorable. In response to 

competitive pricing, the Exchange, like 

other options exchanges, offers rebates 

and assesses fees for certain order types 

executed on or routed through the 

Exchange. 

Select Customer Options Reduction 

Program Changes 

The Exchange first proposes to amend 

the Select Customer Options Reduction 

program (‘‘SCORe’’). By way of 

background, SCORe is a discount 

program for Retail, Non-FLEX Customer 

(‘‘C’’ origin code) volume in the 

following options classes: SPX 

(including SPXW), VIX, RUT, MXEA, & 

MXEF (‘‘Qualifying Classes’’). The 

SCORe program is available to any 

Trading Permit Holder (‘‘TPH’’) 

Originating Clearing Firm or non-TPH 

Originating Clearing Firm that sign up 

for the program.5

Under the program, to determine the 

Discount Tier, an Originating Firm’s 

Retail volume in the Qualifying Classes 

will be divided by total Retail volume 

in the Qualifying Classes executed on 

the Exchange. The program then 

provides a discount per retail contract, 

based on the determined Discount Tier 

thereunder. The program sets forth four 

discount tiers, with applicable 

discounts ranging from $0.00 to $0.14 

per retail contract. Under the current 

program, and as set forth in Footnote 48 

to the Fees Schedule, ‘‘Retail’’ volume is 

defined as Customer order (‘‘C’’ capacity 

code) for which the original order size 

(in the case of a simple order) or largest 

leg size (in the case of a complex order) 

is 100 contracts or less. The Exchange 

proposes amending Footnote 48 to the 

Fees Schedule, to define ‘‘Retail’’ 

volume as Customer order (‘‘C’’ capacity 

code) for which the original order size 

(in the case of a simple order) or the 

largest leg size (in the case of a complex 

order) is 20 contracts or less. 

Additionally, the Exchange proposes 

to remove outdated language from 

Footnote 48 related to the SCORe 

program. Effective February 1, 2023, the 

Exchange amended the program by 

eliminating the Qualifying Tiers 

construct.6 As amended, SCORe utilizes 

only one measure for participation and 

discount (i.e., the Discount Tiers). As 

such, the Exchange proposes to remove 

the outdated language related to the 


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