89752 Federal Register / Vol. 88, No. 248 / Thursday, December 28, 2023 / Notices 

30 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Each capitalized term not otherwise defined 

herein has its respective meaning as set forth the 

Rules, By-Laws and Organization Certificate of DTC 

(the ‘‘Rules’’), available at http://www.dtcc.com/ 

legal/rules-and-procedures.aspx. 

4Available at https://www.dtcc.com/-/media/ 

Files/Downloads/legal/service-guides/ 

Settlement.pdf. The Settlement Guide is a 

Procedure of DTC. Pursuant to the Rules, the term 

‘‘Procedures’’ means the Procedures, service guides, 

and regulations of DTC adopted pursuant to Rule 

27, as amended from time to time. See Rule 1, 

Section 1, supra note 3. Procedures are binding on 

DTC and each Participant in the same manner that 

they are bound by the Rules. See Rule 27, supra 

note 3. 

5Pursuant to Rule 1, supra note 3, the term ‘‘Net 

Debit Cap’’ of a Participant means an amount 

determined by the Corporation in the manner 

specified in the Procedures; provided, however, 

that the maximum Net Debit Cap of the Participant 

shall be the least of (i) a maximum amount 

applicable to all Participants based on the liquidity 

resources of the Corporation, (ii) the Settling Bank 

Net Debit Cap applicable to such Participant, or (iii) 

any other amount determined by the Corporation, 

in its sole discretion. 

6Pursuant to Rule 1, supra note 3, the term 

‘‘Affiliated Family’’ means each Participant that 

controls or is controlled by another Participant and 

each Participant that is under the common control 

of any Person. For purposes of this definition, 

‘‘control’’ means the direct or indirect ownership of 

more than 50% of the voting securities or other 

voting interests of any Person. 

7Pursuant to Rule 1, supra note 3, the term 

‘‘Collateral Monitor’’ of a Participant, as used with 

respect to its obligations to the Corporation, means, 

on any Business Day, the record maintained by the 

Corporation for the Participant which records, in 

the manner specified in Procedures, the algebraic 

sum of (i) the Net Credit or Debit Balance of the 

Participant and (ii) the aggregate Collateral Value of 

the Collateral of the Participant. 

8Pursuant to Rule 1, supra note 3, the term 

‘‘Delivery Versus Payment’’ means a Delivery 

against a settlement debit to the Account of the 

Receiver, as provided in Rule 9(A) and Rule 9(B) 

and as specified in the Procedures. 

9Pursuant to Rule 1, supra note 3, the term 

‘‘Receiver’’, as used with respect to a Delivery of a 

Security, means the Person which receives the 

Security. 

10Pursuant to Rule 1, supra note 3, the term 

‘‘Collateral’’ of a Participant, as used with respect 

to its obligations to the Corporation, means, on any 

Business Day, the sum of (i) the Actual Participants 

Fund Deposit of the Participant, (ii) the Actual 

Preferred Stock Investment of a Participant, (iii) all 

Net Additions of the Participant and (iv) any 

settlement progress payments (‘‘SPP’’) wired by the 

Participant to the account of the Corporation at the 

Federal Reserve Bank of New York in the manner 

specified in the Procedures. A SPP is Collateral that 

increases a Participant’s Collateral Monitor, but also 

reduces a Participant’s Net Debit Balance. See 

Settlement Guide, supra note 4, at 73. Instructions 

for submission of a SPP are provided in the 

Settlement Guide. See Settlement Guide, supra note 

4, at 69. Pursuant to Rule 1, supra note 3, the term 

‘‘Net Debit Balance’’ of a Participant means the 

amount by which the Gross Debit Balance of the 

Participant exceeds its Gross Credit Balance. Id. The 

term ‘‘Gross Credit Balance’’ of a Participant on any 

Business Day means the aggregate amount of money 

the Corporation credits to all the Accounts in all the 

Account Families of the Participant without 

accounting for any amount of money the 

Corporation debits or charges thereto. Id. The term 

‘‘Gross Debit Balance’’ of a Participant on any 

Business Day means the aggregate amount of money 

the Corporation debits or charges to all the 

Accounts in all the Account Families of the 

Participant without accounting for any amount of 

money the Corporation credits thereto. Id. 

11See Settlement Guide, supra note 4, at 5 and 

72. 

12See Settlement Guide, supra note 4, at 6. 

13Pursuant to Rule 1, supra note 3, the term 

‘‘Aggregate Affiliated Family Net Debit Cap’’ means 

the sum of the Net Debit Caps for the Participants 

that are part of an Affiliated Family in the manner 

subject to copyright protection. All 

submissions should refer to file number 

SR–CboeBYX–2023–019 and should be 

submitted on or before January 18, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

Christina Z. Milnor, 

Assistant Secretary. 

[FR Doc. 2023–28604 Filed 12–27–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99234; File No. SR–DTC– 

2023–013] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing of Proposed Rule Change To 

Modify the DTC Settlement Service 

Guide 

December 22, 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 December 

20, 2023, The Depository Trust 

Company (‘‘DTC’’) 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 

primarily by the clearing agency. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change 3 consists of 

amendments to the DTC Settlement 

Service Guide (‘‘Settlement Guide’’) 4 to 

increase the amount of the maximum 

Net Debit Cap for individual 

Participants,5 as described below. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, the 

clearing agency 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 

clearing agency has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

The proposed rule change would 

modify the Settlement Guide to increase 

the amount of the maximum Net Debit 

Cap for individual Participants, as 

described below. 

Background 

Through its settlement services, DTC 

provides book-entry transfer and pledge 

of interests in Eligible Securities and 

end-of-day net funds settlement. DTC 

maintains a liquidity structure designed 

to facilitate its maintenance of sufficient 

financial resources to complete 

settlement each business day 

notwithstanding the failure to settle of 

a defaulting Participant, or Affiliated 

Family of Participants,6 with the largest 

settlement obligation. In this regard, the 

Collateral Monitor 7 and Net Debit Cap 

risk controls are employed by DTC to 

provide that each Delivery Versus 

Payment 8 is contingent on the 

Participant that is the Receiver 9

satisfying its end-of-day net settlement 

obligation, if any. 

The Collateral Monitor prevents the 

completion of transactions that would 

cause a Participant’s Net Debit Balance 

to exceed the value of Collateral in its 

account.10 In this regard, the settlement 

obligation of each Participant must be 

fully collateralized, based on the 

Collateral Monitor, which is DTC’s 

process for measuring the sufficiency of 

the Collateral in a Participant’s account 

to cover the Participant’s net settlement 

obligation.11 This is designed so if a 

Participant fails to pay for its settlement 

obligation, DTC will have sufficient 

Collateral to obtain funding for 

settlement. 

The Net Debit Cap limits the Net 

Debit Balance that each Participant can 

incur to an amount, based upon activity 

level, which would be covered by DTC’s 

liquidity resources. The Net Debit Cap 

is structured so that DTC will have 

sufficient liquidity to complete 

settlement should any single Participant 

or Participant family fail to settle. The 

Net Debit Cap limits the Net Debit 

Balance of an individual Participant at 

any point during DTC’s processing 

day.12 The Aggregate Affiliated Family 

Net Debit Cap 13 limits the sum of Net 


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Federal Register / Vol. 88, No. 248 / Thursday, December 28, 2023 / Notices 89753 

specified in the Procedures; provided, however, 

that the maximum Aggregate Affiliated Family Net 

Debit Cap shall not exceed the total available 

liquidity resources of the DTC. 

14To determine a Participant’s Net Debit Cap, 

DTC records the Participant’s three highest intraday 

net debit peaks over a rolling 70-Business Day 

period. The Participant’s average of these net debit 

peaks is calculated and multiplied by a factor to 

determine the Participant’s Net Debit Cap, but not 

to exceed $1.80 BN. See Settlement Guide, supra 

note 4, at 73. The maximum Net Debit Cap for a 

Participant was increased to $1.80 BN from $1.5 BN 

in 2001, to reduce processing blockages relating to 

increased trading volumes and settlement values. 

This increase was facilitated by a coinciding 

increase to DTC’s liquidity resources. See Securities 

Exchange Act Release No. 44509 (July 3, 2001), 66 

FR 36350 (July 11, 2001) (File No. SR–DTC–2001– 

09). 

15 17 CFR 240.17Ad–22(e)(14). 

16See Settlement Guide, supra note 4, at 73–74. 

17 Id. at 62 and 73. Prior to processing, the 

transaction must also satisfy the Collateral Monitor 

risk management control and be approved by the 

Receiver via the Receiver Authorized Delivery 

function. Id. at 70–72 and 59–60. 

18The aggregate Participants Fund includes four 

component amounts, as set forth below: the ‘‘Core 

Fund,’’ the ‘‘Base Fund,’’ the ‘‘Incremental Fund’’ 

and the ‘‘Liquidity Fund.’’ The Core Fund is set by 

DTC at an aggregate amount of $450 MM and is 

comprised of the Base Fund and the Incremental 

Fund. The Base Fund is the sum of minimum 

deposits by all Participants, i.e., the amount that is 

$7,500, times the number of Participants, at any 

time. The Incremental Fund is the balance of the 

Core Fund up to $450 MM; this is the amount that 

must be ratably allocated among Participants that 

are required to pay more than a minimum deposit, 

as described in the Settlement Guide. The Liquidity 

Fund component (set at $700 MM) applies to 

Participants whose Affiliated Families have Net 

Debit Caps that exceed $2.15 BN. See Settlement 

Guide, supra note 4, at 53–56. 

19The Liquidity Fund (set at $700 MM) is not 

included because that amount only applies to 

Participants whose Affiliated Families have Net 

Debit Caps that exceed $2.15 BN. 

20The $200 MM buffer is an amount greater than 

the contribution of any lender to the DTC LOC. 21 15 U.S.C. 78q–1(b)(3)(F). 

Debit Balances an Affiliated Family of 

Participants at any point during the 

processing day [sic]. The Net Debit Cap 

of each Participant and the Aggregate 

Affiliated Family Net Debit Cap of each 

Affiliated Family of Participants are 

each set to an amount at or below DTC’s 

liquidity resources.14

DTC maintains two key liquidity 

resources that are considered 

‘‘qualifying liquid resources,’’ as 

defined by Rule 17Ad–22(a)(14) 

promulgated under the Act: 15

specifically, (i) Required Participants 

Fund Deposits across all Participants of 

$1.15 BN and (ii) a committed line of 

credit facility (‘‘LOC’’) of $1.9 BN, to 

which DTC may pledge Securities that 

are Collateral of the defaulting 

Participant in order to complete 

settlement. 

Taken together, the Participants Fund 

and line of credit provide DTC with 

$3.05 BN in total liquidity resources. 

Current Net Debit Cap Amounts 

As noted above, the Net Debit Cap for 

an individual Participant is $1.80 BN. 

DTC has established the maximum 

Aggregate Affiliated Family Net Debit 

Cap at $2.85 BN, which is below DTC’s 

total available liquidity resources 

maintained by DTC to account for the 

possibility that a defaulting Participant 

that is part of an Affiliated Family may 

be a lender to the line of credit. 

Together, the Net Debit Cap and 

Aggregate Affiliated Family Net Debit 

Cap control the total settlement 

obligation that any Participant or 

Affiliated Family, respectively, may 

incur. Any transaction that would cause 

a Participant or an Affiliated Family to 

exceed its Net Debit Cap or Aggregate 

Affiliated Family Net Debit Cap, as 

applicable, will not be processed.16

Instead, the transaction will remain in a 

pending status until the Net Debit 

Balance is reduced sufficiently to allow 

processing.17 The Net Debit Balance 

may be reduced during the processing 

day by, among other things, receipt of a 

Delivery Versus Payment, which 

generates credits to the Participant’s 

settlement account, or by a SPP, which 

are funds that may be wired to DTC 

during the processing day, in order to 

avoid a Participant having its receipts of 

Securities blocked by its Net Debit Cap. 

To reduce transaction blockage and the 

need to make SPPs, Participants have 

requested that DTC raise the maximum 

Net Debit Cap. 

Proposed Increase of the Net Debit Cap 

DTC proposes to increase the 

maximum Net Debit Cap for an 

individual Participant from $1.80 BN to 

$2.15 BN. (DTC is not proposing to 

change the maximum Aggregate 

Affiliated Family Net Debit Cap of $2.85 

BN.) The proposed increase of $350 MM 

is supported by available liquidity 

resources from the $450 MM Core 

Fund,18 to which all Participants 

contribute, and the $1.90 BN LOC, 

which is collectively $2.35 BN.19

Proposing to raise the maximum Net 

Debit Cap for an individual Participant 

to $2.15 BN and not $2.35 BN allows for 

a $200 MM buffer to account for the 

possibility that a defaulted Participant 

may also be a lender to the LOC.20

The proposed maximum Net Debit 

Cap increase better aligns the maximum 

Net Debit Cap for an individual 

Participant with DTC’s available 

liquidity resources, as described above. 

DTC expects that increasing the 

maximum Net Debit Cap would benefit 

Participants generally. An impact study 

(‘‘Impact Study’’) conducted by DTC for 

the period January 3, 2022, through 

December 30, 2022, showed that a 

number of Participants that are 

currently capped at a $1.80 BN Net 

Debit Cap would realize an immediate 

benefit from the proposed Net Debit Cap 

increase. The liquidity needs across 

legal entities were determined by 

looking at Participants reaching 90% of 

the current $1.80 BN maximum Net 

Debit Cap, identifying the transactions 

pending under Net Debit Cap limits, and 

any incoming SPPs. By increasing the 

maximum Net Debit Cap, the proposed 

rule change would help improve 

transaction processing by enabling more 

transactions to process without the need 

for a Receiving Participant to wait for 

Delivery Versus Payment credits or 

submit SPPs to reduce its intraday Net 

Debit Balance. Moreover, any 

Participant that is a Deliverer of a 

Delivery Versus Payment may see less of 

its Deliveries pend because the Receiver 

may maintain a higher Net Debit Cap. 

Meanwhile, as described above, the 

proposed Net Debit Cap increase would 

continue to be supported by adequate 

DTC liquidity resources available to 

complete system-wide settlement in the 

event of a failure to settle by the largest 

Participant or Affiliated Family. 

Proposed Rule Change 

Pursuant to the proposed rule change, 

the Settlement Guide will be revised to 

reflect the proposed increase to the Net 

Debit Cap. Specifically, two references 

to the existing $1.80 BN Net Debit Cap 

will be revised to reflect the proposed 

$2.15 BN Net Debit Cap. 

Effective Date 

DTC would implement the proposed 

changes no later than 60 Business Days 

after the approval of the proposed rule 

change by the Commission. 

2. Statutory Basis 

Section 17A(b)(3)(F) 21 of the Act 

requires that the rules of the clearing 

agency be designed, inter alia, to 

promote the prompt and accurate 

clearance and settlement of securities 

transactions. DTC believes the proposed 

rule change is consistent with the 

section 17A(b)(3)(F) of the Act. 

The Impact Study results indicate that 

by increasing the maximum Net Debit 

Cap, as described above, the proposed 

rule change would help improve 

transaction processing by enabling more 

transactions to process without the need 

for a Receiving Participant to wait for 

Delivery Versus Payment-related credits 

or submit SPPs to reduce its intraday 

Net Debit Balance. Moreover, any 

Participant that is a Deliverer of a 


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22 17 CFR 240.17Ad–22(e)(7)(i). 23 15 U.S.C. 78q–1(b)(3)(I). 

Delivery Versus Payment may see less of 

its deliveries pend because the Receiver 

may maintain a higher Net Debit Cap. 

Meanwhile, the proposed Net Debit Cap 

increase would continue to be 

supported by adequate DTC liquidity 

resources available to complete systemwide settlement in the event of a failure 

to settle by the largest Participant or 

Affiliated Family. Therefore, DTC 

believes the proposed rule change is 

consistent with section 17A(b)(3)(F) of 

the Act, cited above, by helping to 

promote the prompt and accurate 

clearance and settlement of securities 

transactions. 

Rule 17Ad–22(e)(7)(i) 22 promulgated 

under the Act requires, inter alia, that 

DTC, a covered clearing agency, 

establish, implement, maintain and 

enforce written policies and procedures 

reasonably designed to, as applicable, 

effectively measure, monitor, and 

manage the liquidity risk that arises in 

or is borne by the covered clearing 

agency, including measuring, 

monitoring, and managing its settlement 

and funding flows on an ongoing and 

timely basis, and its use of intraday 

liquidity by, at a minimum maintaining 

sufficient liquid resources to effect 

same-day settlement of payment 

obligations with a high degree of 

confidence under a wide range of 

foreseeable stress scenarios that 

includes, but is not limited to, the 

default of the participant family that 

would generate the largest aggregate 

payment obligation for the covered 

clearing agency in extreme but plausible 

market conditions (i.e., the ‘‘Cover One 

standard’’). 

DTC’s liquidity needs for settlement 

are driven by protecting DTC against the 

possibility that a Participant may fail to 

pay its settlement obligations on a 

Business Day. The tools available to 

DTC under its Rules, including the Net 

Debit Cap, allow it to regularly test the 

sufficiency of liquid resources on an 

intraday and end-of-day basis and adjust 

to stressed circumstances during a 

settlement day to protect itself and 

Participants against liquidity exposure 

under normal and stressed market 

conditions. DTC calculates its liquidity 

needs per Participant (at a legal entity 

level) and further aggregates these 

amounts at a family level (that is, 

including all affiliated Participants, 

based on the assumption that all such 

affiliates may fail simultaneously). In 

this regard, DTC monitors settlement 

flows and net-debit obligations daily, 

and its current available liquidity 

resources are sufficient to satisfy the 

Cover One standard. 

As described above, the proposed rule 

change would only increase the 

maximum Net Debit Cap for individual 

Participants from $1.80 BN to $2.15 BN, 

which is below DTC’s available 

liquidity when considering the Core 

Fund and LOC collectively, and it 

would not otherwise alter the way DTC 

monitors settlement flows and net-debit 

obligations. Therefore, DTC believes the 

proposal is consistent with Rule 17Ad– 

22(e)(7)(i), cited above, because the 

proposed increase would remain 

aligned with DTC’s continued 

maintenance of sufficient liquid 

resources to satisfy its Cover One 

standard and not change DTC’s 

monitoring of settlement flows and netdebit obligations. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

DTC does not believe that the 

proposed rule change would impose a 

burden on competition.23 The proposed 

rule change would increase the 

maximum Net Debit Cap from $1.80 BN 

to $2.15 BN, and would apply to each 

Participant equally to the extent a 

Participant’s Net Debit Balance, barring 

the effect of the Net Debit Cap control, 

could exceed the existing $1.80 BN. 

DTC believes the proposed rule 

change may promote competition 

because it alleviates the need for some 

Participants to wait for Delivery Versus 

Payment credits or submit SPPs for their 

transactions to process. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

DTC has not received or solicited any 

written comments relating to this 

proposal. If any written comments are 

received, they would be publicly filed 

as an Exhibit 2 to this filing, as required 

by Form 19b–4 and the General 

Instructions thereto. 

Persons submitting comments are 

cautioned that, according to Section IV 

(Solicitation of Comments) of the 

Exhibit 1A in the General Instructions to 

Form 19b–4, the Commission does not 

edit personal identifying information 

from comment submissions. 

Commenters should submit only 

information that they wish to make 

available publicly, including their 

name, email address, and any other 

identifying information. 

All prospective commenters should 

follow the Commission’s instructions on 

how to submit comments, available at 

https://www.sec.gov/regulatory-actions/ 

how-to-submitcomments. General 

questions regarding the rule filing 

process or logistical questions regarding 

this filing should be directed to the 

Main Office of the Commission’s 

Division of Trading and Markets at 

tradingandmarkets@sec.gov or 202– 

551–5777. 

DTC reserves the right to not respond 

to any comments received. 

III. Date of Effectiveness of the 

Proposed Rule Change, and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) by order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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– 

DTC–2023–013 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to file 

number SR–DTC–2023–013. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 


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Federal Register / Vol. 88, No. 248 / Thursday, December 28, 2023 / Notices 89755 

24 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed fee 

changes on July 3, 2023 (SR–C2–2023–014). On 

September 1, 2023, the Exchange withdrew that 

filing and submitted SR–C2–2023–020. On 

September 29, 2023, the Securities and Exchange 

Commission issued a Suspension of and Order 

Instituting Proceedings to Determine whether to 

Approve or Disapprove a Proposed Rule Change to 

Amend its Fees Schedule Related to Physical Port 

Fees (the ‘‘OIP’’). On September 29, 2023, the 

Exchange filed the proposed fee change (SR–C2– 

2023–021). On October 13, 2023, the Exchange 

withdrew that filing and submitted SR–C2–2023– 

022. On December 12, 2023, the Exchange withdrew 

that filing and submitted this filing. 

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

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

Exchange. Nasdaq and its affiliated exchanges 

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

Ultra fiber connection to the respective exchange, 

which is analogous to the Exchange’s 10Gbps 

physical port. See also New York Stock Exchange 

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

Chicago Inc., NYSE National, Inc. Connectivity Fee 

Schedule, which provides that 10 Gbps LX LCN 

Circuits (which are analogous to the Exchange’s 10 

Gbps physical port) are assessed $22,000 per 

month, per port. 

5The Affiliate Exchanges are also submitting 

contemporaneous identical rule filings. 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(5). 

8 Id. 

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

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 DTC

and on DTCC’s website (dtcc.com/legal/

sec-rule-filings). 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–DTC–2023–013 and

should be submitted on or before

January 18, 2024.

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.24

Christina Z. Milnor, 

Assistant Secretary. 

[FR Doc. 2023–28706 Filed 12–27–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99220; File No. SR–C2– 

2023–025] 

Self-Regulatory Organizations; Cboe 

C2 Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fees 

Schedule Related to Physical Port 

Fees 

December 21, 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 December 

12, 2023, Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2 Options’’) proposes 

to amend its Fees Schedule. The text of 

the proposed rule change is provided in 

Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

options/regulation/rule_filings/ctwo/), 

at the Exchange’s Office of the 

Secretary, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

The Exchange proposes to amend its

fee schedule relating to physical 

connectivity fees.3

By way of background, a physical port 

is utilized by a Member or non-Member 

to connect to the Exchange at the data 

centers where the Exchange’s servers are 

located. The Exchange currently 

assesses the following physical 

connectivity fees for Trading Permit 

Holders (‘‘TPHs’’) and non-TPHs on a 

monthly basis: $2,500 per physical port 

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

$7,500 per physical port for a 10 Gbps 

circuit. The Exchange proposes to 

increase the monthly fee for 10 Gbps 

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

port. The Exchange notes the proposed 

fee change better enables it to continue 

to maintain and improve its market 

technology and services and also notes 

that the proposed fee amount, even as 

amended, continues to be in line with, 

or even lower than, amounts assessed by 

other exchanges for similar 

connections.4 The physical ports may 

also be used to access the Systems for 

the following affiliate exchanges and 

only one monthly fee currently (and 

will continue) to apply per port: Cboe 

BZX Exchange, Inc. (options and 

equities platforms), Cboe EDGX 

Exchange, Inc. (options and equities 

platforms), Cboe BYX Exchange, Inc., 

and Cboe EDGA Exchange, Inc. 

(‘‘Affiliate Exchanges’’).5

2. Statutory Basis

The Exchange believes the proposed

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

section 6(b) of the Act.6 Specifically, the 

Exchange believes the proposed rule 

change is consistent with the section 

6(b)(5) 7 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) 8 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) 9 of the Act, which 

requires that Exchange rules provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 


khammond on DSKJM1Z7X2PROD with NOTICES