Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 28681 

18 15 U.S.C. 78s(b)(3)(A)(ii). 19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

execution services are completely 

voluntary and subject to extensive 

competition both from other exchanges 

and from off-exchange venues. 

The proposed changes to the credits 

are reflective of a robust and 

competitive securities market, where 

trading venues must provide incentives 

to participants in the form of credits to 

attract order flow and adjust those 

incentives to make them more 

competitive or to allow the Exchange to 

provide other market-improving 

incentives elsewhere. 

Moreover, trading venues are free to 

adjust their fees and credits in response 

to any changes that the Exchange makes 

to its fees and credits. If any of 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. 

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.18

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2018–042 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–2018–042. 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 (http://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 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–NASDAQ–2018–042, and 

should be submitted on or before July 

11, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13163 Filed 6–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83431; File No. SR–ISE– 

2018–51] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Schedule 

of Fees Related to Complex Orders 

June 14, 2018. 

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 June 1, 

2018, Nasdaq ISE, LLC (‘‘ISE’’ 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 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 

Schedule of Fees related to Complex 

Orders traded on the Exchange. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://ise.cchwallstreet.com/, 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 purpose of the proposed rule 

change is to amend the Schedule of Fees 

related to Complex Orders traded on the 

Exchange. Specifically, the Exchange 


sradovich on DSK3GMQ082PROD with NOTICES
28682 Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 

3A ‘‘Priority Customer’’ is a person or entity that 

is not a broker/dealer in securities, and does not 

place more than 390 orders in listed options per day 

on average during a calendar month for its own 

beneficial account(s), as defined in Nasdaq ISE Rule 

100(a)(37A). 

4 ‘‘Market Maker’’ refers to ‘‘Competitive Market 

Makers’’ and ‘‘Primary Market Makers’’ collectively. 

See ISE Rule 100(a)(28). 

5 ‘‘Select Symbols’’ are options overlying all 

symbols listed on the Nasdaq ISE that are in the 

Penny Pilot Program. 

6 ‘‘Non-Select Symbols’’ are options overlying all 

symbols excluding Select Symbols. 

7An ‘‘Affiliated Member’’ is a Member that shares 

at least 75% common ownership with a particular 

Member as reflected on the Member’s Form BD, 

Schedule A. 

8A ‘‘Crossing Order’’ is an order executed in the 

Exchange’s Facilitation Mechanism, Solicited Order 

Mechanism, Price Improvement Mechanism (PIM) 

or submitted as a Qualified Contingent Cross order. 

For purposes of the Fee Schedule, orders executed 

in the Block Order Mechanism are also considered 

Crossing Orders. 

9A ‘‘Response to a Crossing Order’’ is any contraside interest submitted after the commencement of 

an auction in the Exchange’s Facilitation 

Mechanism, Solicited Order Mechanism, Block 

Order Mechanism or PIM. 

10 ‘‘Customer Total Consolidated Volume’’ means 

the total national volume cleared at The Options 

Clearing Corporation in the Customer range in 

equity and ETF options in that month. 

11Members will not receive rebates for net zero 

complex orders. For purposes of determining which 

complex orders qualify as ‘‘net zero’’ the Exchange 

will count all complex orders that leg in to the 

regular order book and are executed at a net price 

per contract that is within a range of $0.01 credit 

and $0.01 debit. 

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

proposes to: (1) Reduce the volume 

requirements for Priority Customer 3

Complex Tier 9, and (2) eliminate the 

discount for Market Maker 4 Complex 

Orders that trade against Priority 

Customer Complex Orders preferenced 

to them in the complex order book. 

I. Priority Customer Complex Order 

Rebates 

Currently, the Exchange has a fee 

structure in place for Complex Orders 

that provides rebates to Priority 

Customer Complex Orders in order to 

encourage Members to bring that order 

flow to the Exchange. Specifically, 

Priority Customer Complex Orders that 

trade with non-Priority Customer orders 

in the complex order book or trade with 

quotes and orders on the regular order 

book are provided rebates in Select 

Symbols 5 and Non-Select Symbols 6

(other than NDX and MNX) based on 

nine volume tiers, as shown in the table 

below. The Priority Customer Complex 

Tiers are based on Total Affiliated 

Member 7 Complex Order Volume 

(Excluding Crossing Orders 8 and 

Responses to Crossing Orders 9) 

Calculated as a Percentage of Customer 

Total Consolidated Volume 10

(hereinafter, ‘‘Complex Order Volume 

Percentage’’). All Complex Order 

volume executed on the Exchange, 

including volume executed by Affiliated 

Members, is included in the volume 

calculation, except for volume executed 

as Crossing Orders and Responses to 

Crossing Orders. Rebates are provided 

per contract per leg, and once the 

threshold has been reached the rebate 

for the highest tier is applied 

retroactively to all eligible Priority 

Customer Complex volume.11

Priority customer complex tier Complex order volume percentage Rebate for 

select symbols 

Rebate for 

non-select 

symbols 

Tier 1 ................................................ 0.000–0.200 ............................................................................................... ($0.25) ($0.40) 

Tier 2 ................................................ Above 0.200–0.400 ................................................................................... (0.30) (0.55) 

Tier 3 ................................................ Above 0.400–0.600 ................................................................................... (0.35) (0.70) 

Tier 4 ................................................ Above 0.600–0.800 ................................................................................... (0.40) (0.75) 

Tier 5 ................................................ Above 0.800–1.000 ................................................................................... (0.45) (0.80) 

Tier 6 ................................................ Above 1.000–1.600 ................................................................................... (0.46) (0.80) 

Tier 7 ................................................ Above 1.600–2.000 ................................................................................... (0.48) (0.80) 

Tier 8 ................................................ Above 2.000–3.500 ................................................................................... (0.50) (0.85) 

Tier 9 ................................................ Above 3.500 .............................................................................................. (0.50) (0.85) 

Currently, a Member must execute a 

Complex Order Volume Percentage of 

above 3.5% to qualify for Priority 

Customer Complex Tier 9. The 

Exchange now proposes to reduce the 

Complex Order Volume Percentage 

requirement to above 3.25%, thereby 

making Priority Customer Complex 

Order Tier 9 easier for Members to 

achieve. As proposed, Members with a 

Complex Order Volume Percentage 

above 2% and up to 3.25% will qualify 

for Priority Customer Complex Tier 8, 

while Members with a Complex Order 

Volume Percentage above 3.25% will 

qualify for Priority Customer Complex 

Tier 9. Although Priority Customer 

Complex Order Tier 8 and 9 are 

currently eligible for the same $0.50 per 

contract rebate in Select Symbols and 

$0.85 per contract rebate in Non-Select 

Symbols, the lower proposed volume 

requirements for Priority Customer 

Complex Tier 9 will benefit Market 

Makers that currently receive 

discounted Complex Order fees in 

Select Symbols if they achieve this 

Priority Customer Complex Tier. 

Specifically, Market Maker Complex 

Orders in Select Symbols are charged a 

fee of $0.44 per contract for either taking 

liquidity, or providing liquidity to a 

Priority Customer Complex Order, 

provided that the firm achieves Priority 

Customer Complex Tier 9. This fee is 

discounted from the regular taker fee of 

$0.50 per contract (reduced to $0.47 per 

contract for Priority Customer Complex 

Tier 8) and the maker fee of $0.47 per 

contract for trading against a Priority 

Customer. Thus, reducing the volume 

requirements for achieving Priority 

Customer Complex Tier 9 will make it 

easier for Market Makers to achieve the 

discounted $0.44 per contract rate. 

II. Preferenced Market Maker Complex 

Order Discount 

Currently, Market Makers making or 

taking liquidity in Select Symbols or 

Non-Select Symbols receive a discount 

of $0.02 when trading against Priority 

Customer orders preferenced to them in 

the complex order book in equity 

options that are able to be listed and 

traded on more than one options 

exchange. This discount does not apply 

to FX Options Symbols or to option 

classes designated by the Exchange to 

receive a guaranteed allocation pursuant 

to Nasdaq ISE Rule 722(b)(3)(i)(B). The 

Exchange now proposes to eliminate 

this discount. With the recent 

introduction of new pricing incentives 

for Complex Orders, which include the 

discounted Market Maker fees described 

in the section above, the Exchange does 

not believe that an additional incentive 

for preferenced orders is necessary to 

attract Complex Order flow. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,12 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 28683 

13 15 U.S.C. 78f(b)(4) and (5). 

14 15 U.S.C. 78s(b)(3)(A)(ii). 

15 17 CFR 240.19b–4(f)(2). 

of the Act,13 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

I. Priority Customer Complex Order 

Rebates 

The Exchange believes it is reasonable 

and equitable to reduce the volume 

requirements for Priority Customer 

Complex Order Tier 9 as this change 

will make it easier for Members to 

achieve this tier. The proposed change 

is designed to incentivize Members to 

trade Complex Orders on the Exchange. 

While the proposed change will not 

have any impact on Priority Customer 

Complex Order rebates since the rebates 

are currently the same for Priority 

Customer Complex Tier 8 and 9, the 

Exchange also offers discounted 

Complex Order fees in Select Symbols 

for Market Makers that achieve higher 

Priority Customer Complex Tiers. With 

the proposed change, Market Makers 

may find it easier to achieve the higher 

tier of discounted fee, and thereby lower 

their execution costs when trading on 

the Exchange. Furthermore, the 

Exchange believes that the proposed 

change to the Priority Customer 

Complex Order Tiers is equitable and 

not unfairly discriminatory as this 

change is designed to increase trading 

by Market Makers, which may benefit 

other market participants that will have 

an increased opportunity to trade in 

Complex Orders. Market Makers are 

subject to additional requirements and 

obligations (such as quoting 

requirements) that other market 

participants are not. The Exchange 

believes that the mix of incentives that 

it provides will encourage an active 

market in Complex Orders from Market 

Makers and other market participants. 

II. Preferenced Market Maker Complex 

Order Discount 

The Exchange believes that it is 

reasonable and equitable to eliminate 

the preferenced Market Maker Complex 

Order discount as the Exchange has 

recently introduced new incentives for 

Market Makers that trade Complex 

Orders. Specifically, Market Makers are 

now eligible for tiered Complex Order 

taker fees based on achieving Priority 

Customer Complex Tier 8 or 9. With the 

changes to the Priority Customer 

Complex Tier 9 volume requirements 

discussed above, the highest tier of 

discount will be even easier for Market 

Makers to achieve. The Exchange 

therefore believes that an additional 

discount based on receiving preferenced 

Priority Customer Complex Orders is no 

longer necessary. Furthermore, the 

Exchange believes that eliminating this 

fee discount is equitable and not 

unfairly discriminatory as this discount 

will no longer be available for any 

Market Makers. Market Makers may 

instead qualify for the other Complex 

Order discounts based on meeting the 

applicable volume requirements. 

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 its Complex 

Order fees and rebates remain 

competitive with those on other options 

markets, and will continue to attract 

order flow to the Exchange, thereby 

encouraging additional volume and 

liquidity to the benefit of all market 

participants. The Exchange operates in 

a highly competitive market in which 

market participants can readily direct 

their order flow to competing venues. In 

such an environment, the Exchange 

must continually review, and consider 

adjusting, its fees and rebates to remain 

competitive with other exchanges. For 

the reasons described above, the 

Exchange believes that the proposed fee 

changes reflect 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 Act,14 and Rule 

19b–4(f)(2) 15 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: (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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

ISE–2018–51 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–ISE–2018–51. 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 (http://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 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–ISE–2018–51 and should be 

submitted on or before July 11, 2018. 


sradovich on DSK3GMQ082PROD with NOTICES
28684 Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 

16 17 CFR 200.30–3(a)(12). 

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). 

5The term ‘‘Member’’ is defined as ‘‘any 

registered broker or dealer that has been admitted 

to membership in the Exchange.’’ See Exchange 

Rule 1.5(n). 

6See e.g., NYSE Arca Equities Fees and Charges, 

NYSE Arca Marketplace: Other Fees and Charges, 

Connectivity Fees. See also, Nasdaq Phlx LLC 

Pricing Schedule, Section XI, Direct Connectivity to 

Phlx. 

7For example, if a market participant uses a 1 

gigabyte Disaster Recovery Physical Port to connect 

to the Disaster Recovery Systems for both BYX and 

EDGX, the market participant would only be 

assessed one monthly fee of $2,000. 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13161 Filed 6–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83441; File No. SR– 

CboeBYX–2018–006] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change Related to 

Physical Port Fees for BYX 

June 14, 2018. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on June 1, 

2018, Cboe BYX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) 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 has 

designated the proposed rule change as 

one establishing or changing a member 

due, fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the 

proposed rule change 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 Substance of 

the Proposed Rule Change 

The Exchange filed a proposal to 

amend its fees and rebates applicable to 

Members 5 and non-Members of the 

Exchange pursuant to BYX Rule 15.1(a) 

and (c) to modify its fees for physical 

ports. 

The text of the proposed rule change 

is available at the Exchange’s website at 

www.markets.cboe.com, 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to implement 

proposed changes to its fee schedule 

relating to physical connectivity fees, 

effective June 1, 2018. 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 

maintains a presence in two third-party 

data centers: (i) The primary data center 

where the Exchange’s business is 

primarily conducted on a daily basis, 

and (ii) a secondary data center, which 

is predominantly maintained for 

business continuity purposes. The 

Exchange currently assesses the 

following physical connectivity fees for 

Members and non-Members on a 

monthly basis: $2,000 per physical port 

for a 1 gigabyte circuit and $7,000 per 

physical port for a 10 gigabyte circuit. 

The Exchange proposes to increase the 

fees per physical ports from (i) $2,000 

to $2,500 per month, per port for a 1 

gigabyte circuit and (ii) $7,000 to $7,500 

per month, per port for a 10 gigabyte 

circuit. The Exchange notes the 

proposed fees enable it to continue to 

maintain and improve its market 

technology and services and also notes 

that the proposed fee changes are in line 

with the amounts assessed by other 

exchanges for similar connections.6

The Exchange also proposes to adopt 

separate physical port fees for 

connection to its secondary data center, 

which is predominantly maintained for 

business continuity purposes (‘‘Disaster 

Recovery Systems’’). Particularly, the 

Disaster Recovery Systems can be 

accessed via physical ports in Chicago. 

Members and Non-Members may 

maintain physical ports in order to be 

able to connect to the Disaster Recovery 

Systems in case of a disaster. Currently, 

physical ports that are used to connect 

to the Disaster Recovery Systems are 

assessed the same fees as physical ports 

used to connect to the Exchange’s 

trading system. The Exchange proposes 

to establish separate pricing for physical 

ports that are used to connect to the 

Disaster Recovery Systems (‘‘Disaster 

Recovery Physical Ports’’). Specifically, 

the Exchange proposes to assess a 

monthly fee of $2,000 per 1 gigabyte 

Disaster Recovery Physical Port and a 

monthly fee of $6,000 per 10 gigabyte 

Disaster Recovery Physical Port. This 

amount will continue to enable the 

Exchange to maintain the Disaster 

Recovery Physical Ports in case they 

become necessary. The Exchange notes 

that the Disaster Recovery Physical 

Ports may also be used to access the 

Disaster Recovery Systems for the 

following affiliate exchanges Cboe BZX 

Exchange, Inc., Cboe EDGX Exchange, 

Inc., Cboe EDGA Exchange, Inc., Cboe 

C2 Exchange, Inc., Cboe Exchange, Inc. 

and Cboe Futures Exchange, LLC as 

well. The Exchange proposes to provide 

that market participants will only be 

assessed a single fee for any Disaster 

Recovery Physical Port that also 

accesses the Disaster Recover Systems 

for these exchanges.7

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,8

in general, and furthers the objectives of 

Section 6(b)(4),9 in particular, as it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its Members and 

other persons using its facilities. The 

Exchange also 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. The proposed rule change 

reflects a competitive pricing structure 

designed to incent market participants 

to direct their order flow to the 

Exchange. 

The Exchange believes that the 

proposed changes are equitable and 

non-discriminatory in that it applies 

uniformly to all Members. Members and 


sradovich on DSK3GMQ082PROD with NOTICES