71616 Federal Register / Vol. 88, No. 199 / Tuesday, October 17, 2023 / Notices 

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

2 17 CFR 240.19b–4. 

3The term ‘‘NOM Market Maker’’ or (‘‘M’’) is a 

Participant that has registered as a Market Maker on 

NOM pursuant to Options 2, Section 1, and must 

also remain in good standing pursuant to Options 

2, Section 9. In order to receive NOM Market Maker 

pricing in all securities, the Participant must be 

registered as a NOM Market Maker in at least one 

security. See Options 7, Section 1(a). 

Exchange Commission, c/o John 

Pezzullo, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. 

Dated: October 11, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–22815 Filed 10–16–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98721; File No. SR– 

NASDAQ–2023–040] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Options 7, Section 2 

October 11, 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 29, 2023, The Nasdaq Stock 

Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘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 

The Exchange proposes to amend The 

Nasdaq Options Market LLC (‘‘NOM’’) 

Pricing Schedule at Options 7, Section 

2. 

While the changes proposed herein 

are effective upon filing, the Exchange 

has designated the amendments become 

operative on October 2, 2023. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, at the principal 

office of the Exchange, 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 

NOM’s Pricing Schedule at Options 7, 

Section 2, Nasdaq Options Market— 

Fees and Rebates. Today, NOM Options 

7, Section 2(1) provides for various fees 

and rebates applicable to NOM 

Participants. 

Today, NOM Market Maker 3 Rebates 

to Add Liquidity in Penny Symbols are 

paid per the highest tier achieved 

among the below tiers. 

MONTHLY VOLUME

Tier 1 ...................... Participant adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols of up to 0.10% of total industry customer equity and ETF option average daily volume (‘‘ADV’’) contracts per day in a month. 

Tier 2 ...................... Participant adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols above 0.10% of total industry 

customer equity and ETF option ADV contracts per day in a month. 

Tier 3 ...................... Participant: (a) adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols above 0.20% of total industry customer equity and ETF option ADV contracts per day in a month; or (b)(1) adds NOM Market Maker liquidity in 

Penny Symbols and/or Non-Penny Symbols above 0.15% of total industry customer equity and ETF option ADV contracts per day in a month, (2) transacts in all securities through one or more of its Nasdaq Market Center MPIDs that 

represent (i) 0.50% or more of Consolidated Volume (‘‘CV’’) which adds liquidity in the same month on The Nasdaq 

Stock Market or (ii) 50 million shares or more ADV which adds liquidity in the same month on The Nasdaq Stock Market, and (3) executes 1.5 million shares or more ADV in the same month utilizing the M–ELO order type on The Nasdaq 

Stock Market. 

Tier 4 ...................... Participant adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols of above 0.60% of total industry customer equity and ETF option ADV contracts per day in a month. 

Tier 5 ...................... Participant adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols of above 0.40% of total industry customer equity and ETF option ADV contracts per day in a month and transacts in all securities through one or 

more of its Nasdaq Market Center MPIDs that represent 0.40% or more of Consolidated Volume (‘‘CV’’) which adds liquidity in the same month on The Nasdaq Stock Market. 

Tier 6 ...................... Participant: (a)(1) adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols above 0.95% of total 

industry customer equity and ETF option ADV contracts per day in a month, (2) executes Total Volume of 250,000 or 

more contracts per day in a month, of which 30,000 or more contracts per day in a month must be removing liquidity, 

and (3) adds Firm, Broker-Dealer and Non-NOM Market Maker liquidity in Non-Penny Symbols of 10,000 or more contracts per day in a month; or (b)(1) adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols 

above 1.50% of total industry customer equity and ETF option ADV contracts per day in a month, and (2) executes 

Total Volume of 250,000 or more contracts per day in a month, of which 15,000 or more contracts per day in a month 

must be removing liquidity. 

‘‘Total Volume’’ is defined as 

Customer, Professional, Firm, BrokerDealer, Non-NOM Market Maker and 

NOM Market Maker volume in Penny 

Symbols and/or Non-Penny Symbols 

which either adds or removes liquidity 

on NOM. 

Proposal 

At this time, the Exchange proposes to 

amend Tiers 5 and 6 of the NOM Market 


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Federal Register / Vol. 88, No. 199 / Tuesday, October 17, 2023 / Notices 71617 

4Of note, 1.50% equates to approximately 

490,000 contracts per day adding liquidity and 

1.40% equates to approximately 450,000 contracts 

per day adding liquidity. 

5NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 

2010). 

Maker Rebates to Add Liquidity in 

Penny Symbols. 

NOM Market Maker Tier 5 

Currently, the NOM Market Maker 

Tier 5 Rebate to Add Liquidity in Penny 

Symbols provides: 

Participant adds NOM Market Maker 

liquidity in Penny Symbols and/or NonPenny Symbols of above 0.40% of total 

industry customer equity and ETF option 

ADV contracts per day in a month and 

transacts in all securities through one or 

more of its Nasdaq Market Center MPIDs that 

represent 0.40% or more of Consolidated 

Volume (‘‘CV’’) which adds liquidity in the 

same month on The Nasdaq Stock Market. 

The Exchange proposes to amend the 

NOM Market Maker Tier 5 Rebate to 

Add Liquidity in Penny Symbols by 

adding an additional qualifier to achieve 

the rebate. The Exchange proposes to 

provide that a Participant may add 

NOM Market Maker liquidity in Penny 

Symbols and/or Non-Penny Symbols 

above 1.00% of total industry customer 

equity and ETF option ADV contracts 

per day in a month to qualify for the 

NOM Market Maker Tier 5 Rebate to 

Add Liquidity in Penny Symbols. In the 

alternative, as is the case today, a 

Participant may continue to add NOM 

Market Maker liquidity in Penny 

Symbols and/or Non-Penny Symbols of 

above 0.40% of total industry customer 

equity and ETF option ADV contracts 

per day in a month and transacts in all 

securities through one or more of its 

Nasdaq Market Center MPIDs that 

represent 0.40% or more of 

Consolidated Volume (‘‘CV’’) which 

adds liquidity in the same month on 

The Nasdaq Stock Market to qualify for 

the NOM Market Maker Tier 5 Rebate to 

Add Liquidity in Penny Symbols. 

Therefore, a Participant may qualify for 

the $0.44 per contract NOM Market 

Maker Tier 5 Rebate to Add Liquidity in 

Penny Symbols by either qualifying for 

the new tier qualifier that is denoted by 

an ‘‘a’’ or the current qualifier which is 

denoted by a ‘‘b.’’ As proposed, the 

NOM Market Maker Tier 5 Rebate to 

Add Liquidity in Penny Symbols would 

provide: 

Participant: (a) adds NOM Market Maker 

liquidity in Penny Symbols and/or NonPenny Symbols above 1.00% of total industry 

customer equity and ETF option ADV 

contracts per day in a month; or (b) adds 

NOM Market Maker liquidity in Penny 

Symbols and/or Non-Penny Symbols of 

above 0.40% of total industry customer 

equity and ETF option ADV contracts per day 

in a month and transacts in all securities 

through one or more of its Nasdaq Market 

Center MPIDs that represent 0.40% or more 

of Consolidated Volume (‘‘CV’’) which adds 

liquidity in the same month on The Nasdaq 

Stock Market. 

The Exchange believes the additional 

proposed qualifier for the NOM Market 

Maker Tier 5 Rebate to Add Liquidity in 

Penny Symbols will provide 

Participants an additional way to 

achieve the Tier 5 rebate. The new 

qualification criteria is intended to 

attract additional order flow to NOM. 

Any Participant may interact with the 

additional liquidity attracted by this 

incentive. 

NOM Market Maker Tier 6 

Currently, the NOM Market Maker 

Tier 6 Rebate to Add Liquidity in Penny 

Symbols provides: 

Participant: (a)(1) adds NOM Market Maker 

liquidity in Penny Symbols and/or NonPenny Symbols above 0.95% of total industry 

customer equity and ETF option ADV 

contracts per day in a month, (2) executes 

Total Volume of 250,000 or more contracts 

per day in a month, of which 30,000 or more 

contracts per day in a month must be 

removing liquidity, and (3) adds Firm, 

Broker-Dealer and Non-NOM Market Maker 

liquidity in Non-Penny Symbols of 10,000 or 

more contracts per day in a month; or (b)(1) 

adds NOM Market Maker liquidity in Penny 

Symbols and/or Non-Penny Symbols above 

1.50% of total industry customer equity and 

ETF option ADV contracts per day in a 

month, and (2) executes Total Volume of 

250,000 or more contracts per day in a 

month, of which 15,000 or more contracts per 

day in a month must be removing liquidity. 

Currently, there are two ways to 

qualify for the $0.48 per contract NOM 

Market Maker Tier 6 Rebate to Add 

Liquidity in Penny Symbols. A 

Participant may add NOM Market 

Maker liquidity in Penny Symbols and/ 

or Non-Penny Symbols above 0.95% of 

total industry customer equity and ETF 

option ADV contracts per day in a 

month, (2) execute Total Volume of 

250,000 or more contracts per day in a 

month, of which 30,000 or more 

contracts per day in a month must be 

removing liquidity, and (3) add Firm, 

Broker-Dealer and Non-NOM Market 

Maker liquidity in Non-Penny Symbols 

of 10,000 or more contracts per day in 

a month to qualify for the NOM Market 

Maker Tier 6 Rebate to Add Liquidity in 

Penny Symbols. This option is denoted 

as ‘‘a.’’ In the alternative, a Participant 

may add NOM Market Maker liquidity 

in Penny Symbols and/or Non-Penny 

Symbols above 1.50% of total industry 

customer equity and ETF option ADV 

contracts per day in a month, and (2) 

execute Total Volume of 250,000 or 

more contracts per day in a month, of 

which 15,000 or more contracts per day 

in a month must be removing liquidity 

to qualify for the NOM Market Maker 

Tier 6 Rebate to Add Liquidity in Penny 

Symbols. This option is denoted as ‘‘b.’’ 

At this time, the Exchange proposes to 

amend the qualifier in ‘‘b’’ of the NOM 

Market Maker Tier 6 Rebate to Add 

Liquidity in Penny Symbols by lowering 

the (b)(1) qualifier from 1.50% to 1.40%. 

The proposed amended (b)(1) qualifier 

would require a Participant to add NOM 

Market Maker liquidity in Penny 

Symbols and/or Non-Penny Symbols 

above 1.40%4 of total industry customer 

equity and ETF option ADV contracts 

per day in a month. As proposed, the 

amended NOM Market Maker Tier 6 

Rebate to Add Liquidity in Penny 

Symbols would provide: 

Participant: (a)(1) adds NOM Market Maker 

liquidity in Penny Symbols and/or NonPenny Symbols above 0.95% of total industry 

customer equity and ETF option ADV 

contracts per day in a month, (2) executes 

Total Volume of 250,000 or more contracts 

per day in a month, of which 30,000 or more 

contracts per day in a month must be 

removing liquidity, and (3) adds Firm, 

Broker-Dealer and Non-NOM Market Maker 

liquidity in Non-Penny Symbols of 10,000 or 

more contracts per day in a month; or (b)(1) 

adds NOM Market Maker liquidity in Penny 

Symbols and/or Non-Penny Symbols above 

1.40% of total industry customer equity and 

ETF option ADV contracts per day in a 

month, and (2) executes Total Volume of 

250,000 or more contracts per day in a 

month, of which 15,000 or more contracts per 

day in a month must be removing liquidity. 

The Exchange believes that lowering 

part of the NOM Market Maker Tier 6 

Rebate to Add Liquidity in Penny 

Symbols qualifier will attract additional 

order flow to NOM by allowing 

additional Participants to qualify for 

this tier. 

2. Statutory Basis 

The proposed changes to its Pricing 

Schedule are reasonable in several 

respects. As a threshold matter, the 

Exchange is subject to significant 

competitive forces in the market for 

options transaction services that 

constrain its pricing determinations in 

that market. The fact that this market is 

competitive has long been recognized by 

the courts. In NetCoalition v. Securities 

and Exchange Commission 5

(‘‘NetCoalition’’), the D.C. Circuit stated, 

‘‘[n]o one disputes that competition for 

order flow is ‘fierce.’ . . . As the SEC 

explained, ‘[i]n the U.S. national market 

system, buyers and sellers of securities, 

and the broker-dealers that act as their 

order-routing agents, have a wide range 

of choices of where to route orders for 

execution’; [and] ‘no exchange can 


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71618 Federal Register / Vol. 88, No. 199 / Tuesday, October 17, 2023 / Notices 

6 Id. at 539 (quoting Securities Exchange Act 

Release No. 59039 (December 2, 2008), 73 FR 

74770, 74782–83 (December 9, 2008) (SR– 

NYSEArca–2006–21)). 7 15 U.S.C. 78s(b)(3)(A)(ii). 

afford to take its market share 

percentages for granted’ because ‘no 

exchange possesses a monopoly, 

regulatory or otherwise, in the execution 

of order flow from broker 

dealers’. . . .’’ 6

Numerous indicia demonstrate the 

competitive nature of this market. For 

example, clear substitutes to the 

Exchange exist in the market for options 

transaction services. The Exchange is 

only one of seventeen options 

exchanges to which market participants 

may direct their order flow. Within this 

environment, market participants can 

freely and often do shift their order flow 

among the Exchange and competing 

venues in response to changes in their 

respective pricing schedules. Within the 

foregoing context, the proposal 

represents a reasonable attempt by the 

Exchange to attract additional order 

flow to the Exchange and increase its 

market share relative to its competitors. 

NOM Market Maker Tier 5 

The Exchange’s proposal to amend 

the NOM Market Maker Tier 5 Rebate to 

Add Liquidity in Penny Symbols by 

adding an additional qualifier is 

reasonable because it will provide 

Participants another way to qualify for 

the Tier 5 rebate. NOM Participants that 

currently qualify for the NOM Market 

Maker Tier 5 Rebate to Add Liquidity in 

Penny Symbols will continue to qualify 

for this rebate because the current 

qualifications are not being amended. 

With this proposal, additional NOM 

Participants may be able to qualify for 

the NOM Market Maker Tier 5 Rebate to 

Add Liquidity in Penny Symbols 

utilizing the proposed new qualifier. 

The new qualification criteria is 

intended to attract additional order flow 

to NOM. Any Participant may interact 

with the additional liquidity attracted 

by this incentive. 

The Exchange’s proposal to amend 

the NOM Market Maker Tier 5 Rebate to 

Add Liquidity in Penny Symbols by 

adding an additional qualifier is 

equitable and not unfairly 

discriminatory because the proposed 

tier qualifier will be applied uniformly 

to all qualifying NOM Participants. 

NOM Market Maker Tier 6 

The Exchange’s proposal to amend 

part ‘‘b’’ of the NOM Market Maker Tier 

6 Rebate to Add Liquidity in Penny 

Symbols by lowering the (b)(1) qualifier 

from 1.50% to 1.40% is reasonable 

because it will attract additional order 

flow to NOM by allowing additional 

Participants to qualify for this tier. NOM 

Participants who currently qualify for 

the NOM Market Maker Tier 6 Rebate to 

Add Liquidity in Penny Symbols will 

continue to qualify for this rebate. With 

this proposal, additional Participants 

may be able to qualify for the NOM 

Market Maker Tier 6 Rebate to Add 

Liquidity in Penny Symbols with the 

proposed lower (b)(1) qualifier. The 

proposed lower (b)(1) qualification 

criteria is intended to attract additional 

order flow to NOM. Any Participant 

may interact with the additional 

liquidity attracted by this incentive. 

The Exchange’s proposal to amend 

part ‘‘b’’ of the NOM Market Maker Tier 

6 Rebate to Add Liquidity in Penny 

Symbols by lowering the (b)(1) qualifier 

from 1.50% to 1.40% is equitable and 

not unfairly discriminatory because the 

proposed tier qualifier will be applied 

uniformly to all qualifying NOM 

Participants. 

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. 

Intermarket Competition 

The Exchange operates in a highly 

competitive market in which market 

participants can readily favor competing 

venues if they deem fee levels at a 

particular venue to be excessive, or 

rebate opportunities available at other 

venues to be more favorable. In such an 

environment, the Exchange must 

continually adjust its pricing to remain 

competitive with other exchanges. 

Because competitors are free to modify 

their pricing in response, and because 

market participants may readily adjust 

their order routing practices, the 

Exchange believes that the degree to 

which pricing changes in this market 

may impose any burden on competition 

is extremely limited because other 

options exchanges offer similar pricing. 

Moreover, as noted above, price 

competition between exchanges is 

fierce, with liquidity and market share 

moving freely between exchanges in 

reaction to fee and rebate changes. In 

sum, if the changes proposed herein are 

unattractive to market participants, it is 

likely that the Exchange will lose 

market share as a result. Accordingly, 

the Exchange does not believe that the 

proposed changes will impair the ability 

of members or competing order 

execution venues to maintain their 

competitive standing in the financial 

markets. 

Intramarket 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. 

NOM Market Maker Tier 5 

The Exchange’s proposal to amend 

the NOM Market Maker Tier 5 Rebate to 

Add Liquidity in Penny Symbols by 

adding an additional qualifier does not 

impose an undue burden on 

competition because the proposed tier 

qualifier will be applied uniformly to all 

qualifying NOM Participants. 

NOM Market Maker Tier 6 

The Exchange’s proposal to amend 

part ‘‘b’’ of the NOM Market Maker Tier 

6 Rebate to Add Liquidity in Penny 

Symbols by lowering the (b)(1) qualifier 

from 1.50% to 1.40% does not impose 

an undue burden on competition 

because the proposed tier qualifier will 

be applied uniformly to all qualifying 

NOM Participants. 

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 Act.7

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: (i) necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of 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. 

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 


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Federal Register / Vol. 88, No. 199 / Tuesday, October 17, 2023 / Notices 71619 

8 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 September 29, 2023 (SR–CBOE–2023– 

059). On October 5, 2023, the Exchange withdrew 

that filing and submitted this proposal. 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NASDAQ–2023–040 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–NASDAQ–2023–040. 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–NASDAQ–2023–040 and should be 

submitted on or before November 7, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–22811 Filed 10–16–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98722; File No. SR–CBOE– 

2023–060] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Fees for the 

Cboe Silexx Platform 

October 11, 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 October 

5, 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 

fees for the Cboe Silexx platform. 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 fees 

for the Cboe Silexx platform (‘‘Cboe 

Silexx’’), effective September 29, 2023.3

By way of background, the Silexx 

platform consists of a ‘‘front-end’’ order 

entry and management trading platform 

(also referred to as the ‘‘Silexx 

terminal’’) for listed stocks and options 

that supports both simple and complex 

orders, and a ‘‘back-end’’ platform 

which provides a connection to the 

infrastructure network. From the Silexx 

platform (i.e., the collective front-end 

and back-end platform), a Silexx user 

has the capability to send option orders 

to U.S. options exchanges, send stock 

orders to U.S. stock exchanges (and 

other trading centers), input parameters 

to control the size, timing, and other 

variables of their trades, and also 

includes access to real-time options and 

stock market data, as well as access to 

certain historical data. The Silexx 

platform is designed so that a user may 

enter orders into the platform to send to 

an executing broker (including Trading 

Permit Holders (‘‘TPHs’’)) of its choice 

with connectivity to the platform, which 

broker will then send the orders to Cboe 

Options (if the broker is a TPH) or other 

U.S. exchanges (and trading centers) in 

accordance with the user’s instructions. 

The Silexx front-end and back-end 

platforms are a software application that 

is installed locally on a user’s desktop. 

Silexx grants users licenses to use the 

platform, and a firm or individual does 

not need to be a TPH to license the 

platform. 

The Exchange offers several versions 

of its Silexx platform. Originally, the 

Exchange offered the following versions 

of the Silexx platform: Basic, Pro, SellSide, 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 

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 


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