Federal Register / Vol. 88, No. 202 / Friday, October 20, 2023 / Notices 72541 

1SECURE 2.0 Act of 2022, Division T of the 

Consolidated Appropriations Act, 2023, Public Law 

117–328 (Dec. 29, 2022). 

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– 

076) [sic]. On October 4, 2023, the Exchange 

withdrew that filing and submitted this proposal. 

4See Cboe Global Markets U.S. Options Market 

Monthly Volume Summary (September 25, 2023), 

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

market_statistics/. 

and beneficiaries, to search for missing 

participants and beneficiaries, to 

determine the persons entitled to 

benefits that the plans transfer to PBGC 

and the forms and amounts of benefits 

payable, and to refer claimants of 

benefits being held elsewhere to the 

institutions holding the benefits. 

PBGC intends to make the following 

modifications to the information 

collection in this renewal: 

• PBGC is proposing a requirement 

for plans that are filing information 

about more than five missing 

individuals (participants or 

beneficiaries) to provide that 

information in a spreadsheet file. PBGC 

provides a user-friendly template that 

may be used for this purpose. 

• PBGC is adding a question to the 

DB plan forms (MP–100, 300, and 400) 

asking if the plan has a default 

beneficiary provision, and, if yes, 

requiring an attachment of it. (This 

question is already on the DC plan form 

(MP–200)). 

• PBGC is updating references on the 

DB plan forms and instructions that 

relate to de minimis benefit amounts of 

$5,000 or less to reflect the change 

under section 304 of the SECURE 2.0 

Act increasing that amount to $7,000 as 

of January 1, 2024.1

• PBGC is adding a box to the DC 

plan form for the person certifying the 

form to check whether they are the 

plan’s plan administrator or the plan’s 

qualified termination administrator. 

Finally, PBGC intends to make other 

clarifying and editorial changes to the 

forms and instructions, including listing 

common filing errors. 

PBGC estimates that it will receive 

over the next 3 years an annual average 

of 345 filings from plans under this 

collection of information. PBGC further 

estimates that the average annual 

burden of this collection of information 

is 70 hours and $498,000. The actual 

hour burden and cost burden per plan 

will vary depending on plan size and 

other factors. 

The existing collection of information 

was approved under OMB control 

number 1212–0069 (expires January 31, 

2024). On July 3, 2023, PBGC published 

in the Federal Register a notice at 88 FR 

42758 informing the public of its intent 

to request an extension of this collection 

of information and solicited public 

comment. No comments were received. 

PBGC intends to request that OMB 

extend its approval of this collection of 

information for three years. An agency 

may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information unless it 

displays a currently valid OMB control 

number. 

Issued in Washington, DC. 

Stephanie Cibinic, 

Deputy Assistant General Counsel for 

Regulatory Affairs, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2023–23248 Filed 10–19–23; 8:45 am] 

BILLING CODE 7709–02–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98761; File No. SR– 

CboeBZX–2023–081] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule 

October 16, 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 

4, 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’’) 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/ 

options/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.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 

17 options venues to which market 

participants may direct their order flow. 

Based on publicly available information, 

no single options exchange has more 

than 19% of the market share and 

currently the Exchange represents only 

approximately 4% of the market share.4

Thus, in such a low-concentrated and 

highly competitive market, no single 

options exchange, including the 

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. 

The Exchange’s Fee Schedule sets 

forth standard rebates and rates applied 

per contract. For example, the Exchange 

assesses a standard transaction fee of 

$0.48 per contract for Customer orders 

in Penny Securities, excluding SPY and 

IWM, that remove liquidity, yielding fee 

code ‘‘PC’’. The Exchange assesses a 

standard transaction fee of $0.45 per 

contract for Customer SPY and IWM 

orders that remove liquidity, yielding 

fee code ‘‘PR’’. The Fee Codes and 

Associated Fees section of the Fees 


ddrumheller on DSK120RN23PROD with NOTICES1
72542 Federal Register / Vol. 88, No. 202 / Friday, October 20, 2023 / Notices 

5Orders yielding fee code PD are Firm, Broker 

Dealer and Joint Back Office orders that remove 

liquidity in Penny Program Securities and are 

charged a standard transaction fee of $0.48. The 

Exchange proposes to make corresponding changes 

to the Standard Rates table included in the 

Exchange’s Fee Schedule. 

6The Exchange proposes to make corresponding 

changes to the Standard Rates table included in the 

Exchange’s Fee Schedule. 

7The Exchange proposes to make corresponding 

changes to the Standard Rates table included in the 

Exchange’s Fee Schedule. 

8Orders yielding fee code PM are Market Maker 

orders that add liquidity in Penny Program 

Securities and are offered a rebate of $0.29. 

9 ‘‘ADAV’’ means average daily added volume 

calculated as the number of contracts added, per 

day. 

10 ‘‘OCC Customer Volume’’ or ‘‘OCV’’ means the 

total equity and ETF options volume that clears in 

the Customer range at the Options Clearing 

Corporation (‘‘OCC’’) for the month for which the 

fees apply, excluding volume on any day that the 

Exchange experiences an Exchange System 

Disruption and on any day with a scheduled early 

market close. 

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

12 15 U.S.C. 78f(b)(5). 

13 Id. 

14 15 U.S.C. 78f(b)(4). 

Schedule also provides for certain fee 

codes associated with certain order 

types and market participants that 

provide for various other fees or rebates. 

In response to the competitive 

environment, the Exchange also offers 

tiered pricing, which provides Members 

with opportunities to qualify for higher 

rebates or reduced fees where certain 

volume criteria and thresholds are met. 

Tiered pricing provides an incremental 

incentive for Members to strive for 

higher tier levels, which provides 

increasingly higher benefits or discounts 

for satisfying increasingly more 

stringent criteria. 

The Exchange proposes to amend the 

standard transaction fee applicable to 

fee code PC from $0.48 per contract to 

$0.45 per contract (same as current fee 

code PR), and to amend the definition 

of fee code PC so that such fee code (and 

corresponding transaction fee) applies 

to all Customer orders in Penny 

Securities that remove liquidity 

(including SPY and IWM). The 

Exchange also proposes to eliminate fee 

code ‘‘PR’’. Additionally, the Exchange 

proposes to delete the Customer, Firm, 

Broker Dealer and Joint Back Office 

Penny Take Volume Tiers, set forth in 

Footnote 14 of the Fee Schedule and 

applicable to orders yielding fee code 

PD.5

Currently, the Exchange provides a 

rebate of $0.85 per contract for 

Customer orders in Non-Penny 

Securities that add liquidity, yielding 

fee code ‘‘NY’’. The Exchange now 

proposes to increase the rebate provided 

for Customer orders in Non-Penny 

Securities that add liquidity and yield 

fee code NY, to $1.05. The Exchange 

also proposes to delete the Customer 

Non-Penny Add Volume Tiers, set forth 

in Footnote 12 to the Fee Schedule and 

applicable to orders yielding fee code 

NY, since under the proposed rule 

change the Exchange is now providing 

a rebate for orders yielding fee code NY 

equal to the highest tier of the program.6

The Exchange currently assesses a 

standard transaction fee of $1.10 for 

Non-Customer orders in Non-Penny 

Securities that remove liquidity, 

yielding fee code ‘‘NP’’. The Exchange 

proposes to increase the standard 

transaction fee for Non-Customer orders 

in Non-Penny Securities that remove 

liquidity and yield fee code NP, to 

$1.15. The Exchange also proposes to 

eliminate the Non-Customer Non-Penny 

Take Volume Tiers program set forth in 

Footnote 13 to the Fee Schedule, 

applicable to orders yielding fee code 

NP.7

Finally, the Exchange currently offers 

five Market Maker Penny Add Volume 

Tiers under Footnote 6 of the Fee 

Schedule, including on Market Maker 

Cross-Asset Add Tier, which provide 

additional rebates between $0.31 and 

$0.43 per contract for qualifying Market 

Maker orders (i.e., that yield fee code 

PM) 8 where a Member meets certain 

liquidity thresholds. For example, 

current Tier 2 offers an enhanced rebate 

of $0.38 per contract for qualifying 

orders where a Member has an ADAV 9

in Market Maker orders greater than or 

equal to 0.25% of average OCV; 10 Tier 

3 offers an enhanced rebate of $0.39 per 

contract for qualifying orders where a 

Member has an ADAV in Market Maker 

orders greater than or equal to 0.40% of 

average OCV: and Tier 4 offers an 

enhanced rebate of $0.43 per contract 

for qualifying orders where a Member 

has an ADAV in Market Maker orders 

greater than or equal to 0.60% of 

average OCV. The Exchange now 

proposes to amend the Market Maker 

Penny Add Volume Tiers by updating 

the criteria for Tiers 2, 3, and 4. 

Specifically, the proposed rule change 

amends the criteria in Tier 2 so that a 

Member must have an ADAV in Market 

Maker orders greater than or equal to 

0.35% of average OCV; amends the 

criteria in Tier 3 so that a Member must 

have an ADAV in Market Maker orders 

greater than or equal to 0.35% of 

average OCV; and amends the criteria in 

Tier 4 so that a Member must have an 

ADAV in Market Maker orders greater 

than or equal to 0.65% of average OCV. 

The proposed rule change does not alter 

the enhanced rebates offered under each 

tier. 

The proposed changes to the criteria 

in Tiers 2, 3, and 4 are designed to 

continue to provide an incremental 

incentive for Members to strive for the 

highest tier levels, which provide 

increasingly higher rebates for such 

transactions. 

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.11 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 12 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) 13 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,14 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. 

As described above, the Exchange 

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. The 

proposed rule change reflects a 

competitive pricing structure designed 

to incentivize market participants to 

direct their order flow to the Exchange, 

which the Exchange believes would 

enhance market quality to the benefit of 

all Members. Additionally, competing 

exchanges offer similar tiered pricing 

structures, including schedules of 

rebates and fees that apply based upon 

similarly situated members achieving 

certain volume and/or growth 

thresholds, as well as assess similar fees 

or rebates for similar types of orders, to 

that of the Exchange. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 202 / Friday, October 20, 2023 / Notices 72543 

15See BZX Options Fee Schedule, Fee Codes and 

Associated Fees. See also Cboe C2 Options 

Exchange Fees Schedule, Transaction Fees. 

16See, e.g., NYSE Arca Fee Schedule, Transaction 

Fee for Electronic Executions—Per Contract, which 

provides that Firms and Broker Dealers that remove 

liquidity are assessed $1.10 per contract in NonPenny Issues. See also MIAX Pearl Options 

Exchange Fee Schedule, which provides NonPriority Customer, Firm, BD, and Non-MIAX Pearl 

Market Makers that remove liquidity are assessed 

between $1.09 and $1.10 per contract for NonPenny classes, depending on volume. 

In particular, the Exchange believes 

that proposed changes to fee code PC to 

reduce the standard transaction fee and 

make the fee code applicable to all 

customer orders in Penny Securities that 

remove liquidity (including SPY and 

IWM), is reasonable, equitable and not 

unfairly discriminatory. The current fee 

code PC already applies to customer 

orders in Penny Securities that remove 

liquidity, except for SPY and IWM 

(which yield fee code PR), and will 

apply in the same manner to liquidity 

removing IWM and SPY Customer 

orders. As amended, fee code PC 

assesses the same rate, $0.45, as fee code 

PR, which is eliminated under the 

proposed rule change. Thus, the 

Exchange believes the proposed change 

is reasonable as Members will continue 

to pay the same fee for liquidity 

removing IWM and SPY Customer 

orders. Further, the Exchange believes 

that the proposed rule change is 

equitable and not unfairly 

discriminatory as fee code PC applies 

automatically and uniformly to all 

Customer orders in Penny Securities 

that remove liquidity. 

The Exchange also believes that it is 

equitable and not unfairly 

discriminatory to assess a lower fee for 

Customer orders in Penny Securities 

that add liquidity, as compared to other 

market participants, because customer 

order flow enhances liquidity on the 

Exchange for the benefit of all market 

participants. Specifically, customer 

liquidity benefits all market participants 

by providing more trading 

opportunities, which attracts MarketMakers. An increase in the activity of 

these market participants in turn 

facilitates tighter spreads, which may 

cause an additional corresponding 

increase in order flow from other market 

participants. Moreover, the options 

industry has a long history of providing 

preferential pricing to customers, and 

the Exchange’s current Fee Schedule 

currently does so in many places, as do 

the fees structures of multiple other 

exchanges.15

The Exchange believes the proposed 

rule change to increase the rebate 

provided for Customer orders that add 

liquidity in Non-Penny Securities is 

reasonably designed to further 

incentivize Members to submit 

Customer orders that add liquidity in 

Non-Penny Securities, thereby 

providing liquid and active markets, 

which facilitates tighter spreads, 

increased trading opportunities, and 

overall enhanced market quality to the 

benefit of all market participants. 

Further, the Exchange believes that the 

proposed rule change is equitable and 

not unfairly discriminatory as all 

Members that submit Customer orders 

that add liquidity in Non-Penny 

Securities and yield fee code NY will 

receive the rebate. 

The Exchange believes eliminating 

the Customer Non-Penny Add Volume 

Tiers under Footnote 12 is reasonable 

because the Exchange is not required to 

maintain this program. While the 

Exchange is not required to provide 

Members an opportunity to receive 

reduced fees or enhanced rebates, 

Members may still have other 

opportunities to obtain enhanced 

rebates for orders in Non-Penny 

Securities, such as via the Non-Penny 

Add Volume Tiers (via Footnotes 7, 8, 

and 11 of the Fee Schedule). Further, 

the Exchange believes the Customer 

Non-Penny Add Volume Tiers may no 

longer incentivize Members, as the 

rebate offered under amended fee code 

NY is equal to the highest rebate 

available under the Customer NonPenny Add Volume Tiers. The Exchange 

believes that eliminating the Customer 

Non-Penny Add Volume Tiers is 

equitable and not unfairly 

discriminatory because it applies 

uniformly to all Members. Further, the 

Exchange notes that the proposed 

changes will not adversely impact any 

Member’s ability to otherwise qualify 

for reduced fees or enhanced rebates 

offered under other programs in the Fee 

Schedule. 

The Exchange believes the proposed 

rule change to increase the standard fee 

for Non-Customer orders that remove 

liquidity in Non-Penny Securities is 

reasonable because it is a modest 

increase in this transaction rate for these 

orders. Additionally, the increased fee is 

in line with fees assessed for similar 

transactions at other exchanges.16 The 

Exchange believes the proposed change 

is equitable and not unfairly 

discriminatory because it applies 

uniformly to all Members. 

The Exchange believes eliminating 

the Non-Customer Non-Penny Take 

Volume Tiers under Footnote 13 and 

Customer, Firm, Broker Dealer and Joint 

Back Office Penny Take Volume Tiers 

under Footnote 14 is reasonable because 

the Exchange is not required to maintain 

these programs or provide Members an 

opportunity to receive reduced fees or 

enhanced rebates. The Exchange 

believes that eliminating the Customer, 

Firm, Broker Dealer and Joint Back 

Office Penny Take Volume Tiers and 

Non-Customer Non-Penny Take Volume 

Tiers is equitable and not unfairly 

discriminatory because it applies 

uniformly to all Members, in that, such 

programs will not be available for any 

Member. Further, the Exchange notes 

that the proposed changes will not 

adversely impact any Member’s ability 

to otherwise qualify for reduced fees or 

enhanced rebates offered under other 

programs in the Fee Schedule. 

Finally, the Exchange believes 

updating the criteria for Tiers 2, 3, and 

4 of the Market Maker Penny Add 

Volume Tiers is reasonable as it is 

designed to encourage Market Makers to 

increase their order flow to the 

Exchange to achieve each tiers’ criteria, 

as amended. More specifically, the 

Exchange believes that updating the 

criteria for Tiers 2, 3, and 4 may 

encourage Members to increase their 

ADAV in Market Makers orders, over a 

modestly higher percentage of average 

OCV, and encourage Members to strive 

to achieve higher tiers (and 

corresponding higher rebates) by 

submitting the requisite add volume 

order flow. An increase in Market Maker 

add volume, particularly, facilitates 

tighter spreads and an increase in 

overall liquidity provider activity, both 

of which signal additional 

corresponding increase in order flow 

from other market participants, 

contributing towards a robust, wellbalanced market ecosystem. Indeed, 

increased overall order flow benefits 

investors by continuing to deepen the 

Exchange’s liquidity pool, potentially 

providing even greater execution 

incentives and opportunities, offering 

additional flexibility for all investors to 

enjoy cost savings, supporting the 

quality of price discovery, promoting 

market transparency and improving 

investor protection. The Exchange also 

believes that the proposed criteria in 

Tiers 2, 3, and 4 continues to reasonably 

reflect the incremental difficulty in 

achieving the Market Maker Penny Add 

Volume Tiers. 

The Exchange believes the proposed 

change is also equitable and not unfairly 

discriminatory because it applies 

uniformly to all Members, who will 

have the opportunity to meet the tiers’ 

new criteria and receive the 

corresponding rebate for the tier if such 

criteria is met. Without having a view of 

activity on other markets and offexchange venues, the Exchange has no 

way of knowing whether this proposed 


ddrumheller on DSK120RN23PROD with NOTICES1
72544 Federal Register / Vol. 88, No. 202 / Friday, October 20, 2023 / Notices 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f). 

rule change would definitively result in 

any changes to particular Market Makers 

qualifying for the proposed tiers, the 

Exchange believes that that at least two 

Market Makers will reasonably be able 

to achieve the proposed criteria in Tier 

2, one Market Maker may be able to 

achieve the proposed criteria in Tier 3, 

and one Market Maker may be able to 

achieve the proposed criteria in Tier 4; 

however, the proposed tiers are open to 

any Market-Maker that satisfies the tier’s 

criteria. Additionally, all Members are 

able to increase their Market Maker 

order flow to attempt to achieve the new 

tiers’ criteria. Should a Member not 

meet the proposed new criteria, the 

Member will merely not receive that 

corresponding enhanced rebate. 

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 believes the proposed rule 

change does not impose any burden on 

intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

The Exchange believes the proposed 

change to apply fee code PC to all 

Customer orders that remove liquidity 

in all Penny Securities, including IWM 

and SPY, will not impose any burden on 

intramarket competition because it will 

apply uniformly to all Members. 

Further, the Exchange believes the 

proposal to reduce the standard fee for 

Customer orders that remove liquidity 

in Penny Securities will not impose any 

burden on intramarket competition 

because it will apply uniformly to all 

Members, in that all Members that 

submit orders yielding fee codes PC will 

pay the same transaction fee. As 

discussed above, the Exchange believes 

the proposed change to reduce the 

transaction fee would attract additional 

Customer orders that remove liquidity, 

thereby promoting market depth, price 

discovery and transparency and 

enhancing order execution 

opportunities for all Members. As a 

result, the Exchange believes that the 

proposed change furthers the Securities 

and Exchange Commission’s (the 

‘‘Commission’s’’) goal in adopting 

Regulation NMS of fostering 

competition among orders, which 

promotes ‘‘more efficient pricing of 

individual stocks for all types of orders, 

large and small.’’ 

Additionally, the Exchange believes 

the proposal to increase the rebate 

offered for Customer orders in NonPenny Securities that add liquidity and 

to increase the standard transaction fee 

for Non-Customer orders in Non-Penny 

Securities that remove liquidity will not 

impose any burden on intramarket 

competition, as the changes will apply 

uniformly to all Members. Further, the 

Exchange believes the proposal to 

eliminate the Customer, Firm, Broker 

Dealer and Joint Back Office Penny Take 

Volume Tiers, Non-Customer NonPenny Take Volume Tiers, and 

Customer Non-Penny Add Volume Tiers 

will not impose any burden on 

intramarket competition because they 

will no longer be available to any 

Members. 

The Exchange believes the proposals 

to amend the criteria for Tiers 2, 3, and 

4 of the Market Maker Penny Add 

Volume Tiers will also not impose any 

burden on intramarket competition, as 

they will also apply to all Members. All 

Members will continue to have an 

opportunity to receive rebates under 

various tiers. Market Maker Volume 

Add Tiers are generally designed to 

increase the competitiveness of BZX 

and incentivize participants to increase 

their order flow on the Exchange, 

providing for additional execution 

opportunities for market participants 

and improved price transparency. An 

overall increase in add activity may 

provide for deeper, more liquid markets 

and execution opportunities at 

improved prices. 

The Exchange does not believe that 

the proposed changes represent a 

significant departure from pricing 

currently offered by the Exchange or 

pricing offered by other options 

exchanges. Members may opt to disfavor 

the Exchange’s pricing if they believe 

that alternatives offer them better value. 

Accordingly, the Exchange does not 

believe that the proposed changes will 

impair the ability of Members or 

competing venues to maintain their 

competitive standing in the financial 

markets. 

The Exchange also believes the 

proposed rule change does not impose 

any burden on intermarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act. 

As previously discussed, the Exchange 

operates in a highly competitive market. 

Members have numerous alternative 

venues they may participate on and 

direct their order flow, including 17 

other options exchanges. Additionally, 

the Exchange represents a small 

percentage of the overall market. Based 

on publicly available information, no 

single options exchange has more than 

19% of the market share. Therefore, no 

exchange possesses significant pricing 

power in the execution of order flow. 

Indeed, participants can readily choose 

to send their orders to other exchanges 

if they deem fee levels at those other 

venues to be more favorable. Moreover, 

the Commission has repeatedly 

expressed its preference for competition 

over regulatory intervention in 

determining prices, products, and 

services in the securities markets. 

Specifically, in Regulation NMS, the 

Commission highlighted the importance 

of market forces in determining prices 

and SRO revenues and, also, recognized 

that current regulation of the market 

system ‘‘has been remarkably successful 

in promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, the D.C. Circuit 

stated as follows: ‘‘[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 brokerdealers that act as their order-routing 

agents, have a wide range of choices of 

where to route orders for execution’; 

[and] ‘no exchange can 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’. . . .’’. Accordingly, the 

Exchange does not believe its proposed 

fee change imposes any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

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 17 and paragraph (f) of Rule 

19b–4 18 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 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 202 / Friday, October 20, 2023 / Notices 72545 

19 17 CFR 200.30–3(a)(12). 

1See 17 CFR 240.17g–1 and 17 CFR 249b.300. 

2 10 currently registered NRSROs × 275 hours = 

2,750 hours 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

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–2023–081 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–2023–081. 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–CboeBZX–2023–081 and should be 

submitted on or before November 13, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–23141 Filed 10–19–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–563, OMB Control No. 

3235–0625] 

Submission for OMB Review; 

Comment Request; Extension: Rule 

17g–1 and Form NRSRO 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 

Rule 17g–1, Form NRSRO and 

Instructions to Form NRSRO under the 

Securities Exchange Act of 1934 (15 

U.S.C. 78a et seq.).1

Rule 17g–1, Form NRSRO and the 

Instructions to Form NRSRO contain 

certain recordkeeping and disclosure 

requirements for NRSROs. Currently, 

there are 10 credit rating agencies 

registered as NRSROs with the 

Commission. Based on staff experience, 

the Commission estimates that the 

revised ongoing annual burden for 

respondents to comply with Rule 17g– 

1 and Form NRSRO is 2,750 hours.2 In 

addition, the Commission estimates an 

industry-wide annual external cost to 

NRSROs of $4,000 to comply with the 

requirements. 

Written comments are invited on: (a) 

whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimates of the burden of the proposed 

collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information on respondents; and 

(d) ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

The Commission may not conduct or 

sponsor a collection of information 

unless it displays a currently valid 

control number. No person shall be 

subject to any penalty for failing to 

comply with a collection of information 

subject to the PRA that does not display 

a valid Office of Management and 

Budget (OMB) control number. 

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice by November 20, 2023 to (i) 

MBX.OMB.OIRA.SEC_desk_officer@

omb.eop.gov and (ii) Dave Bottom, 

Director/Chief Information Officer, 

Securities and Exchange Commission, c/ 

o John Pezzullo, 100 F St NE, 

Washington, DC 20549 or send an email 

to: PRA_Mailbox@sec.gov. 

Dated: October 16, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–23136 Filed 10–19–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98765; File No. SR– 

NYSEARCA–2023–71] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To List and Trade Shares 

of the John Hancock Fundamental All 

Cap Core ETF Under Rule 8.601–E, 

Active Proxy Portfolio Shares 

October 17, 2023. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on October 

13, 2023, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Commission is publishing this notice to 


ddrumheller on DSK120RN23PROD with NOTICES1