Federal Register / Vol. 89, No. 35 / Wednesday, February 21, 2024 / Notices 13125 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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. 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–Phlx–2024–04, and 

should be submitted on or before March 

13, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Dated: February 14, 2024. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–03450 Filed 2–20–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99535; File No. SR– 

NASDAQ–2024–005] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Equity 7, Section 118 

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 February 

1, 2024, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

Exchange’s pricing schedule at Equity 7, 

Section 118, as described further below. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to (i) provide an additional 

calculation for purposes of determining 

whether a member qualifies for credits 

set forth in Equity 7, Section 118(a) that 

pertain to providing liquidity; and (ii) 

amend certain fees assessed for 

transactions in the Nasdaq Closing Cross 

and Nasdaq Opening Cross under Equity 

7, Section 118(d)(1) and Equity 7, 

Section 118(e)(1) respectively. 

Proposed Changes to Equity 7, Section 

118(a) 

Presently, the Exchange provides its 

members with various credits for 

executing orders that add liquidity to 

the Exchange and charges them various 

fees for executing orders that remove 

liquidity from the Exchange, as set forth 

in Equity 7, Section 118(a) of the 

Exchange’s Rules. The charges and 

credits in Equity 7, Section 118(a) apply 

to the use of the order execution and 

routing services of the Nasdaq Market 

Center by members for all securities 

priced at $1 or more that it trades. 

Members may qualify for tiers of 

discounted fees and premium credits 

based, in part, upon the volume of their 

activities on the Exchange as a 

percentage of total ‘‘Consolidated 

Volume.’’ 

Pursuant to Equity 7, Section 118(a), 

the term ‘‘Consolidated Volume’’ means 

the total consolidated volume reported 

to all consolidated transaction reporting 

plans by all exchanges and trade 

reporting facilities during a month in 

equity securities, excluding executed 

orders with a size of less than one round 

lot. For purposes of calculating 

Consolidated Volume and the extent of 

a member’s trading activity, the 

following are excluded from both total 

Consolidated Volume and the member’s 

trading activity: (1) the date of the 

annual reconstitution of the Russell 

Investments Indexes; (2) the dates on 

which stock options, stock index 

options, and stock index futures expire 

(i.e., the third Friday of March, June, 

September, and December); (3) the dates 

of the rebalance of the MSCI Equities 

Indexes (i.e., on a quarterly basis); (4) 

the dates of the rebalance of the S&P 

400, S&P 500, and S&P 600 Indexes (i.e., 

on a quarterly basis); and (5) the date of 

the annual reconstitution of the 

Nasdaq–100 and Nasdaq Biotechnology 

Indexes. For the purposes of calculating 

the extent of a member’s trading activity 

during the month on Nasdaq and 

determining the charges and credits 

applicable to such member’s activity, all 

M–ELO Orders that a member executes 

on Nasdaq during the month count as 

liquidity-adding activity on Nasdaq. In 

addition, volume from ETC Eligible LOC 

Orders and ETC Orders is not utilized 

to determine eligibility for any pricing 

tiers set forth in Section 118(a) to the 

extent that such eligibility is based upon 

MOC or LOC volume. 

Generally, the ratio of consolidated 

volumes in securities priced at or above 

$1 (‘‘dollar plus volume’’) relative to 

consolidated volumes inclusive of 

securities priced below a dollar is 

usually stable from month to month, 

such that ‘‘Consolidated Volume’’ has 

been a reasonable baseline for 

determining tiered incentives for 

members that execute dollar plus 

volume on the Exchange. However, 

there have been a few months where 

volumes in securities priced below a 

dollar (‘‘sub-dollar volume’’) have been 

elevated, thereby impacting the ratio 

mentioned above. 

Anomalous rises in sub-dollar volume 

stand to have a material adverse impact 

on members’ qualifications for pricing 

tiers/incentives because such 

qualifications depend members upon 

achieving threshold percentages of 

volumes as a percentage of Consolidated 

Volume, and an extraordinary rise in 

sub-dollar volume stands to elevate 

Consolidated Volume. As a result, 

members may find it more difficult, if 

not practically impossible, to qualify for 

or to continue to qualify for their 

existing incentives during months 

where there are such rises in sub-dollar 

volumes, even if their dollar plus 

volumes have not diminished relative to 

prior months. 

The Exchange believes that it would 

be unfair for its members that execute 

significant dollar plus volumes on the 

Exchange to fail to achieve or to lose 

their existing incentives for such 

volumes due to anomalous behavior that 

is extraneous to them. Therefore, the 


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13126 Federal Register / Vol. 89, No. 35 / Wednesday, February 21, 2024 / Notices 

3For example, the Exchange provides a credit of 

$0.00305 per share executed for displayed orders 

(other than Supplemental Orders or Designated 

Retail Orders) to a member with shares of liquidity 

provided in all securities through one or more of 

its Nasdaq Market Center MPIDs that represent 

more than 1.50% of Consolidated Volume. See 

Equity 7, Section 118(a). Under the proposal, in 

addition to calculating the member’s volume and 

total Consolidated Volume exclusive of volume that 

consists of executions in securities priced less than 

$1, the distinct qualifying volume percentage 

threshold would be increased by 10%. Therefore, 

for purposes of this example, in order to qualify for 

the credit using volumes excluding sub-dollar 

activity, the member would need to demonstrate 

shares of liquidity provided in all securities through 

one or more of its Nasdaq Market Center MPIDs that 

represent more than 1.65% of Consolidated Volume 

(i.e., 1.5% + (10%)(1.5%)). 

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

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

6NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 

2010) (quoting Securities Exchange Act Release No. 

59039 (December 2, 2008), 73 FR 74770, 74782–83 

(December 9, 2008) (SR–NYSEArca–2006–21)). 

7Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(‘‘Regulation NMS Adopting Release’’). 

Exchange wishes to amend its Rules to 

help avoid extraordinary spikes in subdollar volumes from adversely affecting 

a member’s qualification of incentives 

for their dollar plus stock executions. 

Accordingly, the Exchange proposes 

to amend its pricing schedule at Equity 

7, Section 118(a) to state that, for 

purposes of calculating a member’s 

qualifications for credits that pertain to 

providing liquidity set forth in Section 

118(a), the Exchange will calculate a 

member’s volume and total 

Consolidated Volume twice. First, the 

Exchange will calculate a member’s 

volume and total Consolidated Volume 

as presently set forth in Equity 7, 

Section 118(a) (i.e., inclusive of volume 

that consists of executions in securities 

priced less than $1). Second, the 

Exchange will calculate a member’s 

volume and total Consolidated Volume 

exclusive of volume that consists of 

executions in securities priced less than 

$1, while also increasing the distinct 

qualifying volume percentage 

thresholds, as set forth in Section 

118(a), by 10%. Thereafter, the 

Exchange proposes to assess which of 

these two calculations would qualify the 

member for the most advantageous 

credits for the month and then it will 

apply those to the member. 

Although the Exchange wishes to 

avoid extraordinary spikes in sub-dollar 

volumes from adversely affecting a 

member’s qualification of incentives for 

their dollar plus stock executions, the 

Exchange proposes to include certain 

limits on the proposal to efficiently 

allocate the Exchange’s limited 

resources for incentives. Specifically, as 

noted above, the Exchange proposes to 

limit the application of the proposed 

calculation excluding sub-dollar 

volumes to those incentives in Section 

118(a) that pertain to providing 

liquidity. In addition, as noted above, 

the Exchange proposes to increase the 

distinct qualifying volume percentage 

thresholds set forth in Section 118(a) by 

10% for purposes of the proposed 

calculation excluding sub-dollar 

volumes.3 The Exchange wishes to 

impose such limitations in order to limit 

the cost impact on the Exchange, while 

still providing some relief to members 

in months with extraordinary spikes in 

sub-dollar volumes. The Exchange has 

limited resources to devote to incentive 

programs, and it is appropriate for the 

Exchange to reallocate these incentives 

periodically in a manner that best 

achieves the Exchange’s overall mix of 

objectives. 

Proposed Changes to Equity 7, Section 

118(d)(1) and (e)(1) 

Equity 7, Section 118(d)(2) provides 

pricing tiers applicable to Market-onClose and Limit-on-Close orders 

executed in the Nasdaq Closing Cross 

and ETC Eligible Limit-on-Close and 

ETC Orders executed in the Extended 

Trading Close, ranging from $0.0008 to 

$0.0016 per share executed. Equity 7, 

Section 118(d)(1) provides that the fee 

for all other quotes and orders executed 

in the Nasdaq Closing Cross is $0.00085 

per share executed. The Exchange 

proposes to increase the fee assessed 

members for all quotes and orders 

executed in the Nasdaq Closing Cross 

(other than Market-on-Close and Limiton-Close orders executed in the Nasdaq 

Closing Cross and ETC Eligible Limiton-Close and ETC Orders executed in 

the Extended Trading Close) from 

$0.00085 to $0.0011 per share executed. 

Increasing this fee to $0.0011 per share 

executed would bring the fee more in 

line with other pricing in the Nasdaq 

Closing Cross, which ranges from 

$0.0008 to $0.0016 per share executed. 

Equity 7, Section 118(e)(1) provides 

that Market-on-Open, Limit-on-Open, 

Good-till-Cancelled, and Immediate-orCancel orders executed in the Nasdaq 

Opening Cross are assessed a fee of 

$0.0015 per share executed. Equity 7, 

Section 118(e)(1) provides that the fee 

for all other quotes and orders executed 

in the Nasdaq Opening Cross is 

$0.00085 per share executed. The 

Exchange proposes to increase the fee 

assessed members for all quotes and 

orders (other than Market-on-Open, 

Limit-on-Open, Good-till-Cancelled, and 

Immediate-or-Cancel orders) executed 

in the Nasdaq Opening Cross from 

$0.00085 to $0.0011 per share executed. 

Increasing this fee to $0.0011 per share 

executed would bring the fee more in 

line with other pricing in the Nasdaq 

Opening Cross, which is set at $0.0015 

per share executed. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with section 6(b) 

of the Act,4 in general, and furthers the 

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

of the Act,5 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. 

The Exchange’s proposed changes to 

its schedule of credits and fees are 

reasonable in several respects. As a 

threshold matter, the Exchange is 

subject to significant competitive forces 

in the market for equity securities 

transaction services that constrain its 

pricing determinations in that market. 

The fact that this market is competitive 

has long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, 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’. . . .’’ 6

The Commission and the courts have 

repeatedly expressed their preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, while 

adopting a series of steps to improve the 

current market model, 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.’’ 7

Numerous indicia demonstrate the 

competitive nature of this market. For 

example, clear substitutes to the 

Exchange exist in the market for equity 

security transaction services. The 


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Federal Register / Vol. 89, No. 35 / Wednesday, February 21, 2024 / Notices 13127 

8As noted above, in considering whether a 

member meets qualifying credit criteria using the 

proposed calculation excluding sub-dollar volumes, 

the distinct qualifying volume percentage 

thresholds would be increased by 10%. 

Exchange is only one of several equity 

venues to which market participants 

may direct their order flow. Competing 

equity exchanges offer similar tiered 

pricing structures to that of the 

Exchange, including schedules of 

rebates and fees that apply based upon 

members achieving certain volume 

thresholds. 

Within this environment, market 

participants can freely and often do shift 

their order flow among the Exchange 

and competing venues in response to 

changes in their respective pricing 

schedules. 

The Exchange believes that the 

proposal to amend Equity 7, Section 

118(a) is reasonable and equitable 

because, in its absence, members may 

experience material adverse impacts on 

their ability to qualify for certain 

incentives during a month with an 

anomalous rise in sub-dollar volumes. 

The Exchange does not wish to penalize 

members that execute significant 

volumes on the Exchange due to 

anomalous and extraneous trading 

activities of a small number of firms in 

sub-dollar securities. The proposed rule 

would seek to provide a means for 

members that provide liquidity to avoid 

such a penalty by determining whether 

calculating member volume and total 

Consolidated Volume to include or 

exclude sub-dollar volume 8 would 

result in Exchange members qualifying 

for the most advantageous credits, and 

then applying the calculations that 

would result in the incentives for 

providing liquidity that are most 

advantageous to each member. The 

Exchange believes it is reasonable to 

limit the proposal by applying the 

proposed calculation to incentives that 

pertain to providing liquidity and 

increasing the distinct qualifying 

volume percentage thresholds by 10% 

when using the proposed calculation 

excluding sub-dollar volumes because 

the Exchange has limited resources to 

devote to incentive programs, and it is 

appropriate for the Exchange to 

reallocate these incentives periodically 

in a manner that best achieves the 

Exchange’s overall mix of objectives. 

The Exchange believes that the 

proposed rule change is an equitable 

allocation and is not unfairly 

discriminatory because the Exchange 

does not intend for the proposal to 

advantage any particular member and 

the Exchange will apply the proposed 

calculation to all similarly situated 

members. 

The Exchange also believes it is 

reasonable, equitable, and not unfairly 

discriminatory for the Exchange to 

increase certain fees assessed for 

transactions in the Nasdaq Closing Cross 

and Nasdaq Opening Cross under Equity 

7, Section 118(d)(1) and Equity 7, 

Section 118(e)(1) respectively, as 

described above. The Exchange has 

limited resources to devote to incentive 

programs, and it is appropriate for the 

Exchange to reallocate these incentives 

periodically in a manner that best 

achieves the Exchange’s overall mix of 

objectives. The proposed increase in 

fees would better align the fees with 

other pricing in the Opening and 

Closing Crosses. Specifically, the 

Exchange’s proposal to increase the fee 

assessed members for all quotes and 

orders (other than Market-on-Close and 

Limit-on-Close orders executed in the 

Nasdaq Closing Cross and ETC Eligible 

Limit-on-Close and ETC Orders 

executed in the Extended Trading Close) 

executed in the Nasdaq Closing Cross to 

$0.0011 per share executed is 

reasonable because the proposed fee is 

comparable to other pricing in the 

Nasdaq Closing Cross, which ranges 

from $0.0008 to $0.0016 per share 

executed. Similarly, the Exchange’s 

proposal to increase the fee assessed 

members for all quotes and orders (other 

than Market-on-Open, Limit-on-Open, 

Good-till-Cancelled, and Immediate-orCancel orders) executed in the Nasdaq 

Opening Cross to $0.0011 per share 

executed is reasonable because the 

proposed fee is comparable to other 

pricing in the Nasdaq Opening Cross, 

which is $0.0015 per share executed. 

The Exchange believes that proposal is 

an equitable allocation and is not 

unfairly discriminatory because the 

Exchange will apply the same fees to all 

similarly situated members. 

Those participants that are 

dissatisfied with the changes to the 

Exchange’s schedule of credits and fees 

are free to shift their order flow to 

competing venues that provide more 

favorable fees or generous incentives. 

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. 

Intramarket Competition 

The Exchange does not believe that its 

proposal will place any category of 

Exchange participant at a competitive 

disadvantage. 

The Exchange intends for its proposed 

changes to its credits and fees to 

reallocate its limited resources more 

efficiently and to align them with the 

Exchange’s overall mix of objectives. 

The Exchange intends for its proposed 

change in Equity 7, Section 118(a) to 

help avoid pricing disadvantages due to 

anomalous spikes in sub-dollar volumes 

and is not intended to provide a 

competitive advantage to any particular 

member. The Exchange intends for its 

proposed fee changes in Equity 7, 

Section 118(d)(1) and (e)(1) to bring 

such fees more in line with other fees 

for orders executed in the Nasdaq 

Opening and Closing Crosses, as 

described above. The Exchange notes 

that its members are free to trade on 

other venues to the extent they believe 

that the proposal is not attractive. As 

one can observe by looking at any 

market share chart, price competition 

between exchanges is fierce, with 

liquidity and market share moving 

freely between exchanges in reaction to 

fee and credit changes. 

Intermarket Competition 

In terms of inter-market competition, 

the Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

credits and fees to remain competitive 

with other exchanges and with 

alternative trading systems that have 

been exempted from compliance with 

the statutory standards applicable to 

exchanges. Because competitors are free 

to modify their own credits and fees in 

response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which credit 

or fee changes in this market may 

impose any burden on competition is 

extremely limited. The proposal is 

reflective of this competition. 

Even as one of the largest U.S. 

equities exchanges by volume, the 

Exchange has less than 20% market 

share, which in most markets could 

hardly be categorized as having enough 

market power to burden competition. 

Moreover, as noted above, price 

competition between exchanges is 

fierce, with liquidity and market share 

moving freely between exchanges in 

reaction to fee and credit changes. This 

is in addition to free flow of order flow 

to and among off-exchange venues, 

which comprises upwards of 40% of 

industry volume. 


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13128 Federal Register / Vol. 89, No. 35 / Wednesday, February 21, 2024 / Notices 

9 15 U.S.C. 78s(b)(3)(A)(ii). 

10 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 

change on February 1, 2024 (SR–CboeEDGA–2024– 

004). On February 7, 2024, the Exchange withdrew 

that filing and submitted this proposal. 

In sum, if the changes proposed 

herein are unattractive to market 

participants, it is likely that the 

Exchange will lose market share as a 

result. Accordingly, the Exchange does 

not believe that the proposed changes 

will impair the ability of members or 

competing order execution venues to 

maintain their competitive standing in 

the financial markets. 

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.9

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is: (i) necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NASDAQ–2024–005 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–2024–005. 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 

10:00 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. Do not include 

personal identifiable information in 

submissions; you should submit only 

information that you wish to make 

available publicly. We may redact in 

part or withhold entirely from 

publication submitted material that is 

obscene or subject to copyright 

protection. All submissions should refer 

to file number SR–NASDAQ–2024–005, 

and should be submitted on or before 

March 13, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Dated: February 14, 2024. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–03451 Filed 2–20–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99540; File No. SR– 

CboeEDGA–2024–005] 

Self-Regulatory Organizations; Cboe 

EDGA Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule 

February 14, 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 February 

7, 2024, Cboe EDGA Exchange, Inc. 

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

‘‘Exchange’’ or ‘‘EDGA’’) 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/ 

equities/regulation/rule_filings/edga/), 

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 applicable to its equities 

trading platform (‘‘EDGA Equities’’) by: 

(1) modifying the rate associated with 

fee code DQ; and (2) modifying certain 

Add/Remove Volume Tiers. The 

Exchange proposes to implement these 

changes effective February 1, 2024.3

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 

16 registered equities exchanges, as well 

as a number of alternative trading 

systems and other off-exchange venues 

that do not have similar self-regulatory 


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