64936 Federal Register / Vol. 88, No. 181 / Wednesday, September 20, 2023 / Notices 

21 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 98014 

(July 28, 2023), 88 FR 51376. Comment received by 

the Commission on the proposed rule change is 

available on the Commission’s website at: https:// 

www.sec.gov/comments/sr-nasdaq-2023-025/

srnasdaq2023025.htm. 

4 15 U.S.C. 78s(b)(2). 

5 Id. 

6 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

CboeBYX–2023–013 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–CboeBYX–2023–013. 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–CboeBYX–2023–013 and should be 

submitted on or before October 11, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–20310 Filed 9–19–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98386; File No. SR– 

NASDAQ–2023–025] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change Related to Notification 

and Disclosure of Reverse Stock Splits 

September 14, 2023. 

On July 21, 2023, The Nasdaq Stock 

Market LLC (‘‘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 

related to notification and disclosure of 

reverse stock splits. The proposed rule 

change was published for comment in 

the Federal Register on August 3, 2023.3

Section 19(b)(2) of the Act 4 provides 

that, within 45 days of the publication 

of notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding, or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is September 17, 

2023. The Commission is extending this 

45-day time period. 

The Commission finds that it is 

appropriate to designate a longer period 

within which to take action on the 

proposed rule change so that it has 

sufficient time to consider the proposed 

rule change. Accordingly, the 

Commission, pursuant to Section 

19(b)(2) of the Act,5 designates 

November 1, 2023, as the date by which 

the Commission shall either approve or 

disapprove, or institute proceedings to 

determine whether to disapprove, the 

proposed rule change (File No. SR– 

NASDAQ–2023–025). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–20305 Filed 9–19–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98385; File No. SR–BOX– 

2023–23] 

Self-Regulatory Organizations; BOX 

Exchange LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Fee 

Schedule for Trading on the BOX 

Options Market LLC Facility To Amend 

Certain Qualification Thresholds of 

Section IV.A.1 (Tiered Volume Rebate 

for Non-Auction Transactions) 

September 14, 2023. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on 

September 1, 2023, BOX Exchange LLC 

(‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Exchange filed the proposed rule change 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act,3 and Rule 19b–4(f)(2) thereunder,4

which renders the proposal effective 

upon filing with the Commission. 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 the Substance 

of the Proposed Rule Change 

The Exchange is filing with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

to amend the Fee Schedule to amend 

certain qualification thresholds of 

Section IV.A.1, (Tiered Volume Rebate 

for Non-Auction Transactions) on the 

BOX Options Market LLC (‘‘BOX’’) 

options facility. The text of the 

proposed rule change is available from 

the principal office of the Exchange, at 

the Commission’s Public Reference 

Room and also on the Exchange’s 

internet website at http:// 

boxexchange.com. 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 181 / Wednesday, September 20, 2023 / Notices 64937 

5The Exchange notes that Public Customers do 

not initiate transactions on BOX directly. BOX 

Participants initiate electronic Non-Auction 

Transactions on behalf of Public Customers and 

these BOX Participants are assessed fees or 

provided rebates by the Exchange for such 

transactions. 

6The Exchange notes that BOX Participants 

collect rebates on behalf of Public Customers and 

have independent fee arrangements with such 

Public Customers by which rebates provided by 

BOX would be taken into account. 

7See Securities Exchange Act Release No. 76447 

(November 16, 2015), 80 FR 72758 (November 20, 

2015) (SR–BOX–2015–36). 

8See Securities Exchange Act Release No. 83396 

(June 8, 2018), 83 FR 27807 (June 14, 2018) (SR– 

BOX–2018–21). 

9See infra note 11. 

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 the 

Fee Schedule for trading on BOX to 

amend certain qualification thresholds 

of Section IV.A.1, (Tiered Volume 

Rebate for Non-Auction Transactions). 

Currently, Public Customers 5 receive 

a per contract rebate for Electronic NonAuction Transactions according to the 

Tier achieved by the Public Customer as 

provided in the Percentage Thresholds 

of National Customer Volume in 

Multiply-Listed Options Classes table in 

Section IV.A.1 of the BOX Fee 

Schedule. Percentage thresholds are 

calculated on a monthly basis by 

totaling the Public Customer’s executed 

Auction and Non-Auction transaction 

volume on BOX, relative to the total 

national Customer volume in multiplylisted options classes. 

The Exchange notes that Non-Auction 

Transactions where a Public Customer 

order interacts with another Public 

Customer order are exempt from a per 

contract rebate. However, these 

transactions still count toward the 

Public Customer’s monthly volume on 

BOX. The current thresholds and 

rebates are as follows: 

Tier 

Percentage thresholds of national 

customer volume in multiply-listed 

options classes 

(monthly) 

Per contract rebate 

Penny 

Interval 

Classes 

Non-Penny 

Interval 

Classes 

SPY 

Maker Taker Maker Taker Maker Taker 

1 ..................... 0.000%–0.129% .................................. $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 

2 ..................... 0.130%–0.339% .................................. (0.05) (0.15) (0.15) (0.27) (0.05) 0.00 

3 ..................... 0.340%–0.549% .................................. (0.10) (0.20) (0.30) (0.32) (0.10) 0.00 

4 ..................... 0.550% and Above .............................. (0.27) (0.27) (0.60) (0.40) (0.27) 0.00 

The Exchange now proposes to raise 

the percentage thresholds within the 

Percentage Thresholds of National 

Customer Volume in Multiply-Listed 

Options Classes table. The proposed 

rebate structure is as follows: 

Tier 

Percentage thresholds of national 

customer volume in multiply-listed 

options classes 

(monthly) 

Per contract rebate 

Penny 

Interval 

Classes 

Non-Penny 

Interval 

Classes 

SPY 

Maker Taker Maker Taker Maker Taker 

1 ..................... 0.000%–0.249% .................................. $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 

2 ..................... 0.250%–0.499% .................................. (0.05) (0.15) (0.15) (0.27) (0.05) 0.00 

3 ..................... 0.500%–0.749% .................................. (0.10) (0.20) (0.30) (0.32) (0.10) 0.00 

4 ..................... 0.750% and Above .............................. (0.27) (0.27) (0.60) (0.40) (0.27) 0.00 

The Exchange notes that the 

percentage thresholds in Tiers 1 through 

4 will be adjusted, however the rebate 

amounts will not change. For example, 

the Tier 2 rebates remain at $0.05 for 

Makers in Penny Interval Classes and 

$0.15 for Takers in Penny Interval 

Classes, but will require 0.250%– 

0.499% of national customer volume in 

multiply-listed options classes for 

Public Customers to qualify for the 

rebate. Similarly, the Tier 3 rebates 

remain at $0.10 for Makers in Penny 

Interval Classes and $0.20 for Takers in 

Penny Interval Classes, and the Tier 4 

rebates in Penny Interval Classes remain 

at $0.27 but the thresholds required to 

qualify for those rebates will be 

0.500%–0.749% and 0.750% and above 

of national customer volume in 

multiply-listed options classes, 

respectively. 

Although, the new volume thresholds 

will require greater volumes to qualify 

for such rebates, the Exchange believes 

that Public Customers will still benefit 

from the opportunity to obtain a rebate 

for their transactions.6 The Exchange 

recently reviewed its Tiered Volume 

Rebate structure for Non-Auction 

Transactions and determined that 

raising the percentage thresholds is 

appropriate at this time. The Exchange 

has not modified these volume 

thresholds since November of 2015 7

and the current rebate amounts have 

been in place since June of 2018.8

Further, the Exchange believes that the 

proposed volume tiers remain 

competitive with other exchanges 9 and 

notes that Public Customers may receive 

a rebate and will continue to pay no fees 


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64938 Federal Register / Vol. 88, No. 181 / Wednesday, September 20, 2023 / Notices 

10 15 U.S.C. 78f(b)(4) and (5). 

11See Nasdaq PHLX LLC (‘‘Nasdaq PHLX’’) 

Options 7, Section 2 (Customer Rebate Program) 

and Cboe Exchange, Inc. (‘‘CBOE’’) Fee Schedule 

(Volume Incentive Program). The Exchange notes 

that these programs use different tier structures, 

volume calculations, and rebate amounts, however, 

their rebate programs operate similarly to BOX’s. 

12These rebates are referred to in Nasdaq PHLX 

Options 7, Section 2 as Category A rebates. The 

Exchange believes that Category A rebates and the 

volume used to determine which tiers are attained 

are comparable to BOX’s Tiered Volume Rebate for 

Non-Auction Transactions (Percentage Thresholds 

of National Customer Volume in Multiply-Listed 

Options Classes) with the exception that Nasdaq 

PHLX excludes volume associated with electronic 

QCC Orders. The Exchange also notes that SPY is 

rebated under Nasdaq PHLX Options 7, Section 3. 

13These rebates are for simple, Non-AIM 

transactions in the CBOE Fee Schedule, VIP. The 

Exchange believes that simple, Non-AIM 

transactions and the volume used to determine 

which tiers are attained are comparable to BOX’s 

Tiered Volume Rebate for Non-Auction 

Transactions (Percentage Thresholds of National 

Customer Volume in Multiply-Listed Options 

Classes). 

14See supra note 11. 

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

16 17 CFR 240.19b–4(f)(2). 

for Electronic Non-Auction transactions 

on BOX. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act, 

in general, and Section 6(b)(4) and 

6(b)(5) of the Act,10 in particular, in that 

it provides for the equitable allocation 

of reasonable dues, fees, and other 

charges among BOX Participants and 

other persons using its facilities and 

does not unfairly discriminate between 

customers, issuers, brokers or dealers. 

The Exchange believes it is 

reasonable, equitable and not unfairly 

discriminatory to adjust certain 

percentage thresholds in the volumebased thresholds for Public Customers 

in Electronic Non-Auction Transactions. 

The volume-based thresholds and 

applicable rebates are designed to 

incentivize Public Customers to direct 

order flow to the Exchange to obtain the 

benefit of the rebate, which will in turn 

benefit all market participants by 

increasing liquidity on the Exchange. 

While the Exchange proposes to 

increase the volume thresholds, thus 

requiring greater volumes to qualify for 

rebates, the Exchange believes that 

Public Customers will still benefit from 

the opportunity to obtain a rebate. The 

Exchange notes that other exchanges 

employ similar incentive programs; and 

the Exchange believes that the proposed 

changes to the volume based rebate 

thresholds are reasonable and 

competitive when compared to 

incentive structures at other 

exchanges.11 In particular, Nasdaq 

PHLX’s Customer Rebate Program has 

five tiers where Tier 1 is 0.00%–0.60% 

and Tier 5 is above 2.50% of national 

customer volume in multiply-listed 

equity and Exchange-Traded Fund 

(‘‘ETF’’) options with rebates that range 

from $0.00 to $0.21.12 Additionally, 

CBOE’s Volume Incentive Program has 

five tiers where Tier 1 is 0%–0.75% and 

Tier 5 is above 4.00% of national 

customer volume in all underlying 

symbols excluding certain index 

symbols, Nanos, and FLEX Micros with 

rebates that range from $0.00 to $0.15.13

The Exchange is proposing four tiers 

where Tier 1 is 0.000%–0.249% and 

Tier 4 is 0.750% and above with rebates 

that range from $0.00 to $0.27 for Penny 

Interval Classes. Thus, the Exchange 

believes that comparable rebates can 

still be attained on BOX, under the 

Exchange’s proposed thresholds, at 

lower volumes than on CBOE or Nasdaq 

PHLX. 

The proposed changes to the 

thresholds in Tiers 1 through 4 are 

equitable and not unfairly 

discriminatory as they are available to 

all BOX Participants that initiate 

electronic Non-Auction Transactions on 

the behalf of Public Customers, and 

Participants may choose whether or not 

to take advantage of the percentage 

thresholds and their applicable rebates 

on BOX. 

The Exchange continues to believe it 

is equitable and not unfairly 

discriminatory to have these rebate 

structures for Public Customers in 

Electronic Non-Auction Transactions. 

The securities markets generally, and 

BOX in particular, have historically 

aimed to improve markets for investors 

and develop various features within the 

market structure for Public Customer 

benefit. Accordingly, the Exchange 

believes that providing a rebate 

structure for Public Customers is 

appropriate and not unfairly 

discriminatory. Based on its review of 

competitor exchanges, the Exchange 

believes that the proposed rebate 

thresholds, although more difficult to 

obtain, will not disincentivize BOX 

Participants from sending Public 

Customer order flow to BOX. Rather, the 

Exchange believes that the proposed 

rebates will continue to help attract a 

high level of Public Customer order flow 

to the BOX Book and create liquidity, 

which the Exchange believes will 

ultimately benefit all Participants 

trading on BOX. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

The Exchange believes that amending 

the proposed rebate structure for Public 

Customer Electronic Non-Auction 

Transactions will not impose a burden 

on competition among various 

Participants. The Exchange believes that 

the proposed changes will result in 

Public Customers being rebated 

appropriately for these transactions. The 

Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing exchanges. In such an 

environment, the Exchange must 

continually review, and consider 

adjusting, its fees and credits to remain 

competitive with other exchanges. 

Because competitors are free to modify 

their own fees and rebates in response, 

and because market participants may 

readily adjust their order routing 

practices, the Exchange believes that the 

degree to which fee or rebate changes in 

this market may impose any burden on 

competition is extremely limited. The 

Exchange notes that other exchanges 

provide programs to incentivize 

customer order flow and that the 

proposed changes to the volume 

thresholds remain competitive when 

compared to incentive structures at 

other exchanges.14 For the reasons 

described above, the Exchange believes 

that the proposed rule change reflects 

this competitive environment. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

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)(ii) of the Exchange Act 15

and Rule 19b–4(f)(2) thereunder,16

because it establishes or changes a due, 

or fee. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend the rule change if 

it appears to the Commission that the 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or would otherwise further 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 181 / Wednesday, September 20, 2023 / Notices 64939 

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 July 3, 2023 (SR–C2–2023–014). On 

September 1, 2023, the Exchange withdrew that 

filing and submitted this proposal. 

4See e.g., The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’), General 8, Connectivity to the 

Exchange. Nasdaq and its affiliated exchanges 

charge a monthly fee of $15,000 for each 10Gbps 

Ultra fiber connection to the respective exchange, 

which is analogous to the Exchange’s 10Gbps 

physical port. See also New York Stock Exchange 

LLC, NYSE American LLC, NYSE Arca, Inc., NYSE 

Chicago Inc., NYSE National, Inc. Connectivity Fee 

Schedule, which provides that 10 Gbps LX LCN 

Circuits (which are analogous to the Exchange’s 10 

Gbps physical port) are assessed $22,000 per 

month, per port. 

5The Affiliate Exchanges are also submitting 

contemporaneous identical rule filings. 

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– 

BOX–2023–23 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–BOX–2023–23. 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–BOX–2023–23 and should be 

submitted on or before October 11, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–20304 Filed 9–19–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98397; File No. SR–C2– 

2023–020] 

Self-Regulatory Organizations; Cboe 

C2 Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fees 

Schedule Related to Physical Port 

Fees 

September 14, 2023. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on 

September 1, 2023, Cboe C2 Exchange, 

Inc. (the ‘‘Exchange’’ or ‘‘C2’’) filed with 

the Securities and Exchange 

Commission (‘‘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 C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2 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://markets.cboe.com/us/ 

options/regulation/rule_filings/ctwo/), 

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 relating to physical 

connectivity fees.3

By way of background, a physical port 

is utilized by a Member or non-Member 

to connect to the Exchange at the data 

centers where the Exchange’s servers are 

located. The Exchange currently 

assesses the following physical 

connectivity fees for Trading Permit 

Holders (‘‘TPHs’’) and non-TPHs on a 

monthly basis: $2,500 per physical port 

for a 1 gigabit (‘‘Gbps’’) circuit and 

$7,500 per physical port for a 10 Gbps 

circuit. The Exchange proposes to 

increase the monthly fee for 10 Gbps 

physical ports from $7,500 to $8,500 per 

port. The Exchange notes the proposed 

fee change better enables it to continue 

to maintain and improve its market 

technology and services and also notes 

that the proposed fee amount, even as 

amended, continues to be in line with, 

or even lower than, amounts assessed by 

other exchanges for similar 

connections.4 The physical ports may 

also be used to access the Systems for 

the following affiliate exchanges and 

only one monthly fee currently (and 

will continue) to apply per port: Cboe 

BZX Exchange, Inc. (options and 

equities platforms), Cboe EDGX 

Exchange, Inc. (options and equities 

platforms), Cboe BYX Exchange, Inc., 

and Cboe EDGA Exchange, Inc. 

(‘‘Affiliate Exchanges’’).5

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 


lotter on DSK11XQN23PROD with NOTICES1