Federal Register / Vol. 89, No. 10 / Tuesday, January 16, 2024 / Notices 2659 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 97898 (Jul. 13, 

2023), 88 FR 46204. 

4See Letter from Adam Arkel, Associate General 

Counsel, FINRA, to Sheila Swartz, Division of 

Trading and Markets, Commission (Aug. 31, 2023). 

5See Exchange Act Release No. 34–98628 (Sep. 

28, 2023), 88 FR 68855 (Oct. 4, 2023). All comments 

received on the proposed rule change are available 

at https://www.sec.gov/comments/sr-finra-2023- 

010/srfinra2023010.htm. 

6 15 U.S.C. 78s(b)(2). 

7See supra note 3 and accompanying text. 

8 15 U.S.C. 78s(b)(2). 

9 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b–4. 

3See Cboe Global Markets U.S. Options Market 

Monthly Volume Summary (December 19, 2023), 

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

market_statistics/. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99304; File No. SR–FINRA– 

2023–010] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Designation 

of a Longer Period for Commission 

Action on Proceedings To Determine 

Whether To Approve or Disapprove a 

Proposed Rule Change To Provide 

Relief Relating to Specified Option 

Transactions Under FINRA Rule 4210 

(Margin Requirements) 

January 9, 2024. 

On June 30, 2023, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities and Exchange 

Act of 1934 (‘‘Exchange Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to amend FINRA Rule 4210 

(Margin Requirements) to provide 

margin relief for specified index option 

transactions, known as ‘‘protected 

options,’’ and to make other minor 

conforming revisions with regard to the 

margin relief. The proposed rule change 

was published for comment in the 

Federal Register on July 19, 2023.3

On August 31, 2023, FINRA extended 

the time period in which the 

Commission must approve the proposed 

rule change, disapprove the proposed 

rule change, or institute proceedings to 

determine whether to approve or 

disapprove the proposed rule change to 

October 17, 2023.4 On September 28, 

2023, the Commission instituted 

proceedings to determine whether to 

approve or disapprove the proposed 

rule change.5

Section 19(b)(2) of the Exchange Act 6

provides that, after initiating 

proceedings, the Commission shall issue 

an order approving or disapproving the 

proposed rule change not later than 180 

days after the date of publication of 

notice of filing of the proposed rule 

change. The Commission may extend 

the period for issuing an order 

approving or disapproving the proposed 

rule change, however, by not more than 

60 days if the Commission determines 

that a longer period is appropriate and 

publishes reasons for such 

determination. The proposed rule 

change was published for notice and 

comment in the Federal Register on July 

19, 2023.7 The 180th day after 

publication of the proposed rule change 

is January 15, 2024. The Commission is 

extending the time period for approving 

or disapproving the proposed rule 

change for an additional 60 days. 

The Commission finds it appropriate 

to designate a longer period within 

which to issue an order approving or 

disapproving the proposed rule change 

so that it has sufficient time to consider 

the proposed rule change and the issues 

raised therein. Accordingly, the 

Commission, pursuant to Section 

19(b)(2) of the Exchange Act,8

designates March 15, 2024, as the date 

by which the Commission shall either 

approve or disapprove the proposed 

rule change (File No. SR–FINRA–2023– 

010). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–00631 Filed 1–12–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99302; File No. SR– 

CboeEDGX–2024–001] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule 

January 9, 2024. 

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 January 2, 

2024, Cboe EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) 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 EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) 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/edgx/), 

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, effective January 2, 2024. 

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 12% of 

the market share.3 Thus, in such a lowconcentrated 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 


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