88068 Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Notices 

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

2 17 CFR 240.19b–4. 

3See EDGA Equities Rules 1.5(r) and 1.5(s). The 

term ‘‘Post-Closing Session’’ shall mean the time 

between 4:00 p.m. and 8:00 p.m. Eastern Time. The 

term ‘‘Pre-Opening Session’’ shall mean the time 

between 8:00 a.m. and 9:30 a.m. Eastern Time. The 

Exchange notes that Post-Closing Session shall have 

the same meaning as ‘‘post market’’ on the EDGA 

Fee Schedule and Pre-Opening Session shall have 

the same meaning as ‘‘pre market’’ on the EDGA Fee 

Schedule. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101492; File No. SR– 

CboeEDGA–2024–045] 

Self-Regulatory Organizations; Cboe 

EDGA Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fees Schedule by Replacing Its 

Inverted Pricing Model With a MakerTaker Model for Its Equity Trading 

Platform 

October 31, 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 October 

28, 2024, Cboe EDGA Exchange, Inc. 

(the ‘‘Exchange’’ or ‘‘EDGA’’) 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 

Effective November 1, 2024, 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 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 

Many exchanges today utilize makertaker pricing under which a rebate is 

provided to orders that add liquidity 

and a fee is assessed to orders that 

remove liquidity. The Exchange 

currently utilizes an inverse of the 

maker-taker pricing model referred to as 

a taker-maker pricing model in which a 

fee is provided to orders that add 

liquidity and a rebate is provided to 

orders that remove liquidity. As 

described below, the Exchange proposes 

to amend its Fee Schedule applicable to 

its equities trading platform (‘‘EDGA 

Equities’’) by replacing its inverted 

pricing model with a maker-taker 

model. The Exchange proposes to 

implement these changes effective 

November 1, 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 

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 

responsibilities under the Securities 

Exchange Act of 1934 (the ‘‘Act’’), to 

which market participants may direct 

their order flow. The Exchange submits 

this proposal in response to industry 

feedback and for business and 

competitive reasons. Specifically, the 

Exchange notes that the market share of 

taker-maker exchanges has been steadily 

declining in recent years. The Exchange 

analyzed its internal data and found 

that, the market share of inverted 

markets has dropped from 

approximately 8% in April 2020 to 

2.6% in July 2024. Similarly, the 

average monthly notional volume of 

taker-maker exchanges has declined 

from approximately $528.0 billion in 

2021 to an average monthly notional 

volume of $267.4 billion in 2024 (yearto-date). In addition to the decline in 

taker-maker exchanges’ market share, 

the Exchange has received feedback 

from at least one Member that the 

economics of the inverted exchange 

model are no longer profitable, which 

has led to the Exchange to believe that 

a transition to a maker-taker model may 

help to improve the Exchange’s market 

share. Finally, in addition to replacing 

its inverted pricing model with a makertaker model, the Exchange also proposes 

to eliminate tiered pricing, which 

provides Members opportunities to 

qualify for higher rebates or reduced 

fees where certain volume criteria and 

thresholds are met. By eliminating 

tiered pricing incentives, the Exchange 

can instead redirect its resources and 

funding to focus on providing a 

simplified fee structure, whereby 

Members, regardless of their size or 

trading volume, can receive the same 

rebates and pay the same fees for certain 

order types. 

Fee Code Rate Changes 

In securities priced at or above $1.00, 

the Exchange currently charges a 

standard fee of $0.0030 per share for 

orders that add liquidity to EDGA and 

provides a standard rebate of $0.0016 

per share for orders that remove 

liquidity from EDGA. Currently, for 

securities priced below $1.00 the 

Exchange does not charge a standard fee 

to add or remove liquidity. The 

Exchange also assesses a standard fee of 

$0.0030 per share in orders that route 

liquidity away from EDGA in securities 

priced at or above $1.00 and assesses a 

standard fee of 0.30% of the dollar value 

of the transaction in orders that route 

liquidity away from EDGA in securities 

priced below $1.00. 

Effective November 1, 2024, the 

Exchange now proposes to provide a 

standard rebate of $0.0027 per share to 

all orders that add liquidity in securities 

priced at or above $1.00 and proposes 

to charge a standard fee of $0.0030 to all 

orders that remove liquidity in 

securities priced at or above $1.00. 

Certain order types that add liquidity to 

EDGA will receive lower rebates than 

the standard rate of $0.0027 (discussed 

infra). 

As a result of the proposed change, 

the Exchange proposes to make 

corresponding changes to the following 

fee codes for securities priced at or 

above $1.00: 

Adding Liquidity Fee Codes 

• Orders appended with fee code 3, 

which is appended to orders that add 

liquidity to EDGA in Tape A or Tape C 

securities during the pre and post 

market,3 are currently charged a fee of 

$0.00300 per share. The Exchange 

proposes that orders appended with fee 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Notices 88069 

4See EDGA Equities Rule 11.8(e). A MidPoint 

Discretionary Order (‘‘MDO’’) is a limit order to buy 

that is pegged to the NBB, with or without an offset, 

with discretion to execute at prices up to and 

including the midpoint of the NBBO, or a limit 

order to sell that is pegged to the NBO, with or 

without an offset, with discretion to execute at 

prices down to and including the midpoint of the 

NBBO. 

5See EDGA Equities Rule 11.8(e)(10). Quote 

Depletion Protection (‘‘QDP’’) is an optional 

instruction that a User may include on an MDO to 

limit the order’s ability to exercise discretion in 

certain circumstances. 

6See EDGA Equities Rule 11.6(e)(2). NonDisplayed is an instruction the User may attach to 

an order stating that the order is not to be displayed 

by the System on the EDGA Book. 

7See EDGA Equities Rule 11.8(d). A MidPoint 

Peg Order is a non-displayed Market Order or Limit 

Order with an instruction to execute at the 

midpoint of the NBBO, or, alternatively, pegged to 

the less aggressive of the midpoint of the NBBO or 

one minimum price variation inside the same side 

of the NBBO as the order. 

8See EDGA Equities Rule 11.8(g). A 

Supplemental Peg Order is a non-displayed Limit 

Order that is eligible for execution at the NBB for 

a buy order and NBO for a sell order against an 

order that is in the process of being routed to an 

away Trading Center if such order that is in the 

process of being routed away is equal to or less than 

the aggregate size of the Supplemental Peg Order 

interest available at that price. 

9See EDGA Equities Rule 11.8(e)(4). 

10See EDGA Equities Rule 11.6(d). 

code 3 will now receive a rebate of 

$0.00270 per share. 

• Orders appended with fee code 4, 

which is appended to orders that add 

liquidity to EDGA in Tape B securities 

during the pre and post market, are 

currently charged a fee of $0.00300 per 

share. The Exchange proposes that 

orders appended with fee code 4 will 

now receive a rebate of $0.00270 per 

share. 

• Orders appended with fee code B, 

which is appended to orders that add 

liquidity to EDGA in Tape B securities, 

are currently charged a fee of $0.00300 

per share. The Exchange proposes that 

orders appended with fee code B will 

now receive a rebate of $0.00270 per 

share. 

• Orders appended with fee code DM, 

which is appended to orders that add 

liquidity to EDGA using MidPoint 

Discretionary orders (‘‘MDOs’’) 4 within 

the discretionary range, are currently 

charged a fee of $0.00300 per share. The 

Exchange proposes that orders 

appended with fee code DM will now 

receive a rebate of $0.00200 per share. 

• Orders appended with fee code DQ, 

which is appended to QDP Orders 5 that 

add liquidity to EDGA, are currently 

charged a fee of $0.001800 per share. 

The Exchange proposes that orders 

appended with fee code DQ will now 

receive a rebate of $0.00200 per share. 

• Orders appended with fee code HA, 

which is appended to non-displayed 

orders 6 that add liquidity to EDGA, are 

currently charged a fee of $0.00300 per 

share. The Exchange proposes that 

orders appended with fee code HA will 

now receive a rebate of $0.00250 per 

share. 

• Orders appended with fee code 

MM, which is appended to nondisplayed orders that add liquidity to 

EDGA using Mid-Point Peg, 7 are 

currently charged a fee of $0.00100 per 

share. The Exchange proposes that 

orders appended with fee code MM will 

now receive a rebate of $0.00250 per 

share. 

• Orders appended with fee code RP, 

which is appended to non-displayed 

orders that add liquidity to EDGA using 

Supplemental Peg, 8 are currently 

charged a fee of $0.00300 per share. The 

Exchange proposes that orders 

appended with fee code RP will now 

receive a rebate of $0.00250 per share. 

• Orders appended with fee code V, 

which is appended to orders that add 

liquidity to EDGA in Tape A securities, 

are currently charged a fee of $0.00300 

per share. The Exchange proposes that 

orders appended with fee code V will 

now receive a rebate of $0.00270 per 

share. 

• Orders appended with fee code Y, 

which is appended to orders that add 

liquidity to EDGA in Tape C securities, 

are currently charged a fee of $0.00300 

per share. The Exchange proposes that 

orders appended with fee code Y will 

now receive a rebate of $0.00270 per 

share. 

The Exchange notes that certain fee 

codes will receive a rebate that is less 

than the proposed standard rebate of 

$0.00270 per share. In the case of fee 

codes DM and DQ, these fee codes are 

appended to MDOs that add liquidity 

and execute within a discretionary 

range or MDOs utilizing the optional 

QDP instruction and will receive a 

proposed rebate of $0.00200, which is 

lower than the standard rebate. In both 

instances, the order being added to 

EDGA executes at a non-displayed price 

and the Exchange provides lower 

rebates to non-displayed orders in order 

to incentivize adding displayed 

liquidity to EDGA. The same rationale is 

true for non-displayed orders appended 

with fee codes HA, MM, and RP. For fee 

codes HA, MM, and RP, the Exchange 

proposes to provide a lower rebate of 

$0.00250 per share as these fee codes 

are appended to various non-displayed 

orders that add liquidity to EDGA. 

Given the Exchange seeks to encourage 

displayed liquidity, the Exchange 

believes it is reasonable to offer the 

proposed lower rebate for non-displayed 

liquidity-adding orders. 

In addition to the proposed rate 

changes for existing fee codes described 

above, the Exchange proposes to 

introduce two new fee codes for orders 

that add liquidity and discontinue an 

existing fee code used for liquidityadding orders. First, the Exchange 

proposes to introduce fee codes DD and 

DN A description of each is provided 

below: 

• Fee code DD will be appended to 

orders that add liquidity to EDGA using 

a displayed MDO that executes at a 

price not within the discretionary range. 

Orders appended with fee code DD will 

receive a rebate of $0.00270 per share. 

There will be no rebates for securities 

priced below $1.00. 

• Fee code DN will be appended to 

orders that add liquidity to EDGA using 

a non-displayed MDO that executes at a 

price not within the discretionary range. 

Orders appended with fee code DN will 

receive a rebate of $0.00200 per share. 

There will no rebates for securities 

priced below $1.00. 

Next, the Exchange proposes to 

discontinue fee code DA, which is 

appended to an order that adds liquidity 

to EDGA using an MDO and executes 

outside the discretionary range. The 

Exchange proposes to discontinue this 

fee code as it has introduced fee codes 

DD and DN, which provide additional 

granularity into how an MDO may be 

entered and execute on EDGA. 

Specifically, an MDO may be entered as 

either a displayed or non-displayed 

order and may execute at a price within 

or outside the discretionary range.9 The 

discretionary range appended to an 

MDO is always non-displayed.10 As 

such, when an MDO executes at a price 

within the discretionary range, it 

executes at a non-displayed price, will 

be appended with fee code DM, and will 

receive a lower rebate ($0.00200) than a 

displayed order ($0.00270). However, an 

MDO that executes at a price outside the 

discretionary range may be displayed or 

non-displayed. As such, introducing fee 

codes DD and DN will allow the 

Exchange to provide the standard rebate 

of $0.00270 to displayed MDOs that 

execute outside the discretionary range 

and a lower rebate of $0.00200 to nondisplayed MDOs that execute outside 

the discretionary range. The lower, nondisplayed rebate is commensurate with 

the rebate received by orders appended 

with fee code DM, which are similarly 

not displayed. 

Removing Liquidity Fee Codes 

• Orders appended with fee code 6, 

which is appended to orders that 

remove liquidity from EDGA during the 

pre and post market, currently receive a 


khammond on DSKJM1Z7X2PROD with NOTICES
88070 Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Notices 

11The Exchange notes that in connection with 

transitioning EDGA to a maker-taker fee model, 

certain order types, including MDOs, will behave 

differently. Here, MDOs entered onto EDGA will 

now act as liquidity providers and will not remove 

liquidity. The Exchange has filed a separate 

proposal codifying the change in behavior of MDOs, 

and certain other order types, as well as the removal 

of certain routing options. See SR–CboeEDGA– 

2024–042. 

12 Id. 

13See EDGA Equities Rule 11.11(g)(13). 

Destination Specific is a routing option under 

which an order checks the System for available 

shares and then is sent to an away trading center 

or centers specified by the User. 

14See EDGA Equities Rule 11.11(g)(1). ROUC is 

a routing option under which an order checks the 

System for available shares and then is sent to 

destinations on the System routing table, Nasdaq 

OMX BX, and NYSE. If shares remain unexecuted 

after routing, they are posted on the EDGX (sic) 

Book, unless otherwise instructed by the User. 

15See EDGA Equities Rule 11.11(g)(3)(D). ROBB 

checks the System for available shares and then 

sends the order to destinations on the System 

routing table. If shares remain unexecuted after 

routing, they are posted on the book, unless 

otherwise instructed by the User. See also Cboe US 

Equities FIX Specification, at p. 26, available at: 

https://cdn.cboe.c/resources/membership/Cboe_

US_Equities_FIX_Specification.pdf. 

16See EDGA Equities Rule 11.11(g)(3)(E). ROCO 

checks the System for available shares and then 

sends the order to destinations on the System 

routing table. If shares remain unexecuted after 

routing, they are posted on the book, unless 

otherwise instructed by the User. See also Cboe US 

Equities FIX Specification, at p. 26, available at: 

https://cdn.cboe.c/resources/membership/Cboe_

US_Equities_FIX_Specification.pdf. 

17See EDGA Equities Rule 11.11(g)(3)(C). ROUZ 

checks the System for available shares and then 

sends the order to destinations on the System 

routing table. If shares remain unexecuted after 

routing, they are posted on the book, unless 

otherwise instructed by the User. See also Cboe US 

Equities FIX Specification, at p. 26, available at: 

https://cdn.cboe.c/resources/membership/Cboe_

US_Equities_FIX_Specification.pdf. 

18Fee code PA is appended to orders that add 

liquidity to EDGA using the RMPT or RMPL routing 

strategies. 

19Fee code PL is appended to orders routed to 

BZX, EDGX, NYSE, NYSE Arca or Nasdaq using the 

RMPL routing strategy. 

20Fee code PT is appended to orders that remove 

liquidity from EDGA using the RMPT or RMPL 

routing strategies. 

21Fee code PX is appended to orders routed using 

the RMPL routing strategy to a destination not 

covered by Fee Code PL or routing using the RMPT 

routing strategy. 

22See EDGA Equities Rule 11.11(g)(12)(A). RMPT 

utilizes a MidPoint Peg Order to check the System 

for available shares and any remaining shares are 

then sent to destinations on the System routing 

table that support midpoint eligible orders. If any 

shares remain unexecuted after routing, they are 

posted on the EDGA Book as a MidPoint Peg Order, 

unless otherwise instructed by the User. See also 

Cboe US Equities FIX Specification, at p. 26, 

available at: https://cdn.cboe.c/resources/ 

membership/Cboe_US_Equities_FIX_

Specification.pdf. 

23See EDGA Equities Rule 11.11(g)(12)(B). RMPL 

utilizes a MidPoint Peg Order to check the System 

for available shares and any remaining shares are 

then sent to destinations on the System routing 

table that support midpoint eligible orders. If any 

shares remain unexecuted after routing, they are 

posted on the EDGA Book as a MidPoint Peg Order, 

unless otherwise instructed by the User. See also 

Cboe US Equities FIX Specification, at p. 26, 

available at: https://cdn.cboe.c/resources/ 

membership/Cboe_US_Equities_FIX_

Specification.pdf. 

rebate of $0.00160 per share. The 

Exchange proposes that orders 

appended with fee code 6 will now be 

charged a fee of $0.00300 per share. 

• Orders appended with fee code BB, 

which is appended to orders that 

remove liquidity from EDGA in Tape B 

securities, currently receive a rebate of 

$0.00160 per share. The Exchange 

proposes that orders appended with fee 

code BB will now be charged a fee of 

$0.00300 per share. 

• Orders appended with fee code DX, 

which is appended to QDP orders that 

remove liquidity from EDGA, are 

currently charged a fee of $0.00040 per 

share. The Exchange proposes that 

orders appended with fee code DX will 

now be charged a fee of $0.00300 per 

share. 

• Orders appended with fee code HR, 

which is appended to non-displayed 

orders that remove liquidity from 

EDGA, currently execute at no cost. The 

Exchange proposes that orders 

appended with fee code HR will now be 

charged a fee of $0.00300 per share. 

• Orders appended with fee code MT, 

which is appended to orders that 

remove liquidity designated as MidPoint Peg from EDGA, currently execute 

at no cost. The Exchange proposes that 

orders appended with fee code MT will 

now be charged a fee of $0.00300 per 

share. 

• Orders appended with fee code N, 

which is appended to orders that 

remove liquidity from EDGA in Tape C 

securities, currently receive a rebate of 

$0.00160 per share. The Exchange 

proposes that orders appended with fee 

code N will now be charged a fee of 

$0.00300 per share. 

• Orders appended with fee code W, 

which is appended to orders that 

remove liquidity from EDGA in Tape A 

securities, currently receive a rebate of 

$0.00160 per share. The Exchange 

proposes that orders appended with fee 

code W will now be charged a fee of 

$0.00300 per share. 

Next, the Exchange proposes to 

discontinue fee codes, DR and DT. The 

fee code DR is appended to orders that 

remove liquidity from EDGA using an 

MDO and that executes outside the 

discretionary range. The fee code DT is 

appended to orders that remove 

liquidity from EDGA using an MDO that 

executes within the discretionary range. 

Based on the proposal to transition 

EDGA to a maker-taker exchange, and 

the proposed changes to MDO order 

behavior on Exchange,11 MDOs can only 

act as liquidity providing orders, unless 

they have a QDP instruction. Because 

MDOs without a QDP instruction will 

only add liquidity, and a separate fee 

code (i.e., DX) already exists for MDOs 

with QDP instructions that remove 

liquidity, fee codes DR and DT are no 

longer necessary. 

Routing Fee Codes 

Fee Code Description Changes and 

Removal 

In addition to the proposed rate 

changes for certain fee codes associated 

with the switch to maker-taker pricing, 

the Exchange also proposes to amend 

certain fee code descriptions associated 

with fee codes used for routing 

strategies. The Exchange notes that 

certain routing strategies are being 

discontinued 12 and as such, will no 

longer be referenced in certain fee code 

descriptions. The proposed changes are 

as follows: 

• Fee code BY, which is appended to 

orders that are routed to BYX using 

Destination Specific (‘‘DIRC’’),13

ROUC,14 ROBB15 or ROCO 16 routing 

strategies will be amended to remove 

the references to the ROBB and ROCO 

routing strategies, as these strategies are 

being removed from EDGA. 

• Fee code NX, which is appended to 

orders routed to NYSE National using 

ROBB, ROCO or ROUC routing 

strategies will be amended to remove 

the references to the ROBB and ROCO 

routing strategies, as these strategies are 

being removed from EDGA. 

• Fee code Z, which is appended to 

orders routed to a non-exchange 

destination using ROCO or ROUZ17

routing strategies will be amended to 

remove the reference to the ROCO 

routing strategy, as this strategy is being 

removed from EDGA. 

In addition to the description changes 

proposed above, the Exchange also 

proposes to discontinue fee codes PA,18

PL,19 PT,20 and PX 21 as the RMPT22

and RMPL 23 routing strategies are being 

discontinued. 

Routing Tier Changes 

Pursuant to footnote 1 of the Fee 

Schedule, the Exchange currently offers 

two Routing Tiers that provide a 

reduced fee to Members’ qualifying 

orders where (i) a Member adds or 

removes a specific level of volume using 

certain routing strategies (‘‘Routing Tier 

1’’) or (ii) routes a specified level of 

volume using the ROUT routing option 

(‘‘Routing Tier 2’’). However, the 

Exchange no longer wishes to, nor is 

required to, maintain such tiers. As 

such, the Exchange now proposes to 


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24 15 U.S.C. 78f(b). 

25 15 U.S.C. 78f(b)(5). 

26 Id. 

27 15 U.S.C. 78f(b)(4) 

28Source: Cboe internal data. 

29For instance, LTSE pays adders of liquidity a 

standard rebate of $0.0028 ($0.0001 more than the 

Exchange’s proposed standard rebate), and charges 

removers of liquidity a standard fee of $0.0030 (the 

same as the Exchange’s proposed standard remove 

fee). See LTSE Fee Schedule, Transaction Fees, 

available at: https://ltse.com/trading/fee-schedules. 

discontinue Routing Tier 1 and Routing 

Tier 2. This proposed change will 

enable the Exchange to redirect future 

resources and funding into a standard 

rebate that is achievable by all Members, 

regardless of their size or trading 

volume, thereby diversifying the mix of 

liquidity and deepening the Exchange’s 

liquidity pool, as well as enhancing 

execution opportunities and price 

discovery and transparency for all 

Members. In this regard, the Exchange 

believes that the proposed changes 

further the Commission’s goal in 

adopting Regulation NMS of fostering 

competition among orders, which 

promotes ‘‘more efficient pricing of 

individual stocks for all types of orders, 

large and small.’’ 

Add/Remove Volume Tier Changes 

Pursuant to footnote 7 of the Fee 

Schedule, the Exchange currently offers 

certain Add/Remove Volume Tiers that 

provide an enhanced rebate or a 

reduced fee for Members’ qualifying 

orders. Specifically, the Exchange offers 

four Add/Remove Volume Tiers 

applicable to fee codes 3, 4, B, V, and 

Y that each provide a reduced fee to 

Members’ qualifying orders where a 

Member reaches certain add or remove 

volume-based criteria (the ‘‘Add 

Volume Tiers’’). In addition, the 

Exchange offers one Add/Remove 

Volume Tier applicable to fee codes N, 

W, 6, and BB that provides an enhanced 

rebate to Members’ qualifying orders 

where a Member reaches certain add or 

remove volume-based criteria (the 

‘‘Remove Volume Tier’’). The Exchange 

now proposes to discontinue the Add 

Volume Tiers and the Remove Volume 

Tier as the Exchange no longer wishes 

to, nor is required to, maintain such 

tiers. More specifically, this proposed 

change will enable the Exchange to 

redirect future resources and funding 

into a standard rebate that is achievable 

by all Members, regardless of their size 

or trading volume, thereby diversifying 

the mix of liquidity on the Exchange, 

promoting market depth, execution 

incentives and enhanced execution 

opportunities, as well as price discovery 

and transparency for all Members. 

Other Conforming Changes 

Commensurate with the proposed 

changes discussed earlier in the 

proposal, the Exchange proposes to: (1) 

remove the ‘‘Definitions’’ section of the 

Fee Schedule; (2) modify the ‘‘General 

Notes’’ section of the Fee Schedule; and 

(3) mark as ‘‘Reserved’’, Footnote 1. As 

the Exchange has proposed to 

discontinue the Routing Tier 1 and 

Routing Tier 2 and the Add/Remove 

Volume Tiers under footnotes 1 and 7, 

respectively, the Exchange now 

proposes to remove the Definitions 

section of the Fee Schedule because it 

is no longer applicable to the remaining 

footnotes of the Fee Schedule. 

Additionally, because the Exchange 

proposes to discontinue Routing Tier 1 

and Routing Tier 2, as well as the Add/ 

Remove Volume Tiers, the Exchange is 

removing certain notes regarding 

Routing Tier 1 and Routing Tier 2, and 

Add/Remove Tiers, from the General 

Notes section of the Fee Schedule. 

Finally, because the Exchange proposes 

to discontinue Routing Tier 1 and 

Routing Tier 2 under Footnote 1, the 

Exchange seeks to mark Footnote 1 as 

‘‘Reserved.’’ 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.24 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 25 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) 26 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers as 

well as Section 6(b)(4) 27 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. 

As described above, the Exchange 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive or 

incentives to be insufficient. As 

previously discussed, the overall market 

share of exchanges offering a takermaker pricing model has significantly 

declined. According to data analyzed by 

the Exchange, the average market share 

of taker-maker exchanges has declined 

from approximately 8% in April 2020 to 

approximately 2.6% in July 2024.28 This 

trend is also seen in volumes on takermaker exchanges, which have declined 

from approximately 10 billion shares 

per month in 2022 to approximately 7.7 

billion shares year-to-date in 2024. The 

Exchange believes that its proposal to 

replace its current taker-maker pricing 

model with a maker-taker pricing model 

without volume-based pricing 

incentives reflects a competitive pricing 

structure designed to incentivize market 

participants to direct their order flow to 

the Exchange, which the Exchange 

believes would enhance market quality 

to the benefit of all Members. 

Specifically, the Exchange believes its 

proposal to remove existing volumebased pricing tiers and switch to a 

maker-taker pricing model, with a 

standard rebate achievable by all 

Members, regardless of their size or 

trading volume, will help to incentivize 

and diversify the mix of liquidity on the 

Exchange, thereby promoting market 

depth, execution incentives and 

enhanced execution opportunities, as 

well as price discovery and 

transparency for all Members. As such, 

the proposed changes further the 

Commission’s goal in adopting 

Regulation NMS of fostering 

competition among orders, which 

promotes ‘‘more efficient pricing of 

individual stocks for all types of orders, 

large and small.’’ Competing equity 

exchanges provide similar rebates or 

assess similar fees for similar types of 

orders, to that of the Exchange.29 In this 

regard, the rebates and fees proposed by 

the Exchange are intended to compete 

with the rebates and fees of other 

competing equities exchanges while 

continuing to encourage Members to 

submit order flow to the Exchange. 

Additionally, the Exchange notes that 

the proposed rebates and fees are 

reasonable, equitable and nondiscriminatory because they are open to 

all Members on an equal basis, wherein 

all Members will have the same 

opportunity to receive the same rebate 

and pay the same fees without needing 

to satisfy volume-based criteria. 

The proposed introduction of a 

$0.0027 standard rebate for fee codes B, 

V, Y, 3, and 4 is reasonable as it is 

designed to be the only standard rebate 


khammond on DSKJM1Z7X2PROD with NOTICES
88072 Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Notices 

30See MIAX Pearl Equities Fee Schedule, 

Transaction Rebates/Fees, Standard Rates, available 

at https://www.miaxglobal.com/sites/default/files/ 

fee_schedule-files/MIAX_Pearl_Equities_Fee_

Schedule_07012024.pdf (MIAX Pearl offers a 

standard rebate of $0.0022 per share in securities 

priced at or above $1.00); see also Nasdaq Price List, 

Add Remove Rates, available at https://www.nasdaq

trader.com/Trader.aspx?id=PriceListTrading2 

(Nasdaq offers a standard rebate of $0.0018 per 

share in securities priced at or above $1.00). 

31See Cboe BZX Equity Fee Schedule, Standard 

Rates, available at https://www.cboe.com/us/ 

equities/membership/fee_schedule/bzx/. See also 

Cboe EDGX Equity Fee Schedule, Standard Rates, 

available at https://www.cboe.com/us//

membership/fee_schedule/edgx/. 

32MidPoint Discretionary Order (‘‘MDO’’). A 

limit order to buy that is pegged to the NBB, with 

or without an offset, with discretion to execute at 

prices up to and including the midpoint of the 

NBBO, or a limit order to sell that is pegged to the 

NBO, with or without an offset, with discretion to 

execute at prices down to and including the 

midpoint of the NBBO. An MDO’s pegged price and 

Discretionary Range are bound by its limit price. An 

MDO to buy or sell with a limit price that is less 

(higher) than its pegged price, including any offset, 

is posted to the EDGA Book at its limit price. The 

pegged prices of an MDO are derived from the NBB 

or NBO, and cannot independently establish or 

maintain the NBB or NBO. An MDO in a stock 

priced at $1.00 or more can only be executed in 

sub-penny increments when it executes at the 

midpoint of the NBBO or against a contra-side order 

pursuant to Rule 11.10(a)(4)(D). Notwithstanding 

that an MDO Order may be a Limit Order, its 

operation and available modifiers are limited to 

those available in Rule 11.8(e). See Rule 11.8(e). 

33Quote Depletion Protection (‘‘QDP’’). QDP is an 

optional instruction that a User may include on an 

MDO to limit the order’s ability to exercise 

discretion in certain circumstances. A ‘‘QDP Active 

Period’’ will be enabled or refreshed for buy (sell) 

MDOs if the best bid (offer) displayed on the EDGA 

Book is executed below one round lot. During the 

QDP Active Period, an MDO entered with a QDP 

instruction will not exercise discretion, and is 

executable only at its ranked price. When a QDP 

Active Period is initially enabled, or refreshed by 

a subsequent execution or cancellation of the best 

bid (offer) then displayed on the EDGA Book, it will 

remain enabled for two milliseconds. Unless the 

User chooses otherwise, an MDO to buy (sell) 

entered with a QDP instruction will default to a 

Non-Displayed instruction and will include an 

Offset Amount equal to one Minimum Price 

Variation below (above) the NBB (NBO). See Rule 

11.8(e)(10). 

available to Members on the Exchange. 

The Exchange is increasing EDGA’s 

standard rebate from its current rebate 

of $0.0016 to $0.0027, in order to 

provide a rebate that is higher than most 

other competing maker-taker 

exchanges 30 and that is equally 

attainable by all Members regardless of 

their size or trading volume. In doing so, 

the Exchange believes the proposed 

standard rebate will incentivize 

liquidity provision and diversify its 

pool of liquidity providers, thereby 

promoting market depth, execution 

incentives and enhanced execution 

opportunities, as well as price discovery 

and transparency for all Members. 

Furthermore, the Exchange believes that 

its proposal to introduce a standard rate 

of $0.0030 applicable to fee codes N, W, 

6, and BB is reasonable as it is equal to 

the standard fee assessed to Members on 

the Exchange’s affiliate maker-taker 

exchanges.31 The proposed $0.0030 

standard fee is also unchanged from the 

add fee assessed by the Exchange under 

its current inverted pricing model. As 

such, Members will not have to consider 

an increased EDGA remove fee when 

routing their orders to the marketplace. 

The Exchange continues to believe 

that volume-based pricing provides for 

benefits or discounts that are reasonably 

related to: (i) the value to an exchange’s 

market quality; (ii) associated higher 

levels of market activity, such as higher 

levels of liquidity provision and/or 

growth patterns; and (iii) the 

introduction of higher volumes of orders 

into the price and volume discovery 

processes. However, given the decline 

in the inverted market share (discussed 

above), and feedback from Members that 

the inverted fee model is no longer as 

desirable (discussed above), the 

Exchange believes that shifting its 

resources and funding from tiered 

pricing to a simplified maker-taker 

model, and implementing a simplified 

rebate more easily attainable by all 

Member, regardless of size or trading 

volume, will help to diversify and 

deepen the Exchange’s liquidity 

providers and liquidity pool, thereby 

promoting market depth, execution 

incentives and enhanced execution 

opportunities, as well as price discovery 

and transparency for all Members. In 

this regard, the Exchange believes that 

the proposed changes further the 

Commission’s goal in adopting 

Regulation NMS of fostering 

competition among orders, which 

promotes ‘‘more efficient pricing of 

individual stocks for all types of orders, 

large and small.’’ 

In addition to the proposed standard 

rebate of $0.0027 applicable to fee codes 

3, 4, B, V, and Y, the Exchange has also 

proposed lower rebates for certain order 

types. Specifically, orders yielding fee 

codes DM, DN, and DQ will receive a 

lower rebate of $0.00200 per share, 

while orders yielding fee codes HA, 

MM, and RP will receive a lower rebate 

of $0.00250 per share. In general, as 

discussed above, the Exchange believes 

that providing slightly lower rebates to 

non-displayed orders and MDOs that 

utilize QDP or execute at a nondisplayed price is reasonable as it is 

consistent with the Exchange’s overall 

pricing philosophy of encouraging 

added, displayed liquidity to EDGA. 

More specifically, the Exchange 

proposes that orders yielding fee codes 

DM, DN, and DQ receive a slightly 

lower rebate than orders yielding fee 

codes HA, MM, and RP, because the 

former fee codes are assigned to nondisplayed orders designated with order 

features designed to prevent a Member’s 

orders from executing at more 

aggressive prices—such as, Midpoint 

Discretionary Orders (‘‘MDOs’’) 32 and 

Quote Depletion Protection 

(‘‘QDP’’) 33—thereby potentially limiting 

the instances in which they may 

provide liquidity on the Exchange. In 

contrast, orders yielding fee codes HA, 

MM, and RP, are assigned to nondisplayed orders not entered as MDOs 

or with the Exchange’s QDP feature, and 

as such, are more likely to add liquidity 

to the Exchange’s order book. 

Together, with the proposed standard 

rebate, the Exchange believes that its 

proposed fee structure will provide a 

reasonable means to encourage liquidity 

adding displayed and non-displayed 

orders in Members’ order flow to the 

Exchange and to incentivize Members to 

continue to provide liquidity adding 

volume to the Exchange by offering 

them an opportunity to receive a rebate. 

By providing higher rebates for 

displayed liquidity, and slightly lower 

rebates for non-displayed liquidity, the 

Exchange believes the proposed fees 

will help encourage the entry of 

displayed orders, thereby deepening the 

Exchange’s displayed liquidity pool, 

fostering price discovery, promoting 

market transparency, and improving 

market quality, for all investors. 

The Exchange believes that its 

proposal to modify the description of 

fee codes BY, NX, and Z as well as its 

proposal to eliminate fee codes PA, PL, 

PT, and PX is reasonable, equitable, and 

non-discriminatory as the Exchange is 

discontinuing certain routing strategies 

as part of its transition from a takermaker pricing structure to a maker-taker 

pricing structure. The revised 

descriptions in fee codes BY, NX, and 

Z will provide an accurate description 

of the routing strategies eligible for 

certain fee codes, which will be 

available to all Members on an equal 

basis. Further, the elimination of fee 

codes PA, PL, PT, and PX will remove 

these fee codes from the Fee Schedule 

for all Members as the routing strategies 

will no longer be supported. 

Similarly, the Exchange believes that 

its proposal to eliminate fee code DA 

and introduce fee codes DD and DN is 

reasonable, equitable, and nondiscriminatory as the Exchange is 

seeking to utilize fee codes that provide 

additional granularity into the usage of 

MDOs on the Exchange. By eliminating 

fee code DA and replacing it with fee 

codes DD and DN, the Exchange will be 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Notices 88073 

34As the Exchange seeks to discontinue Routing 

Tier 1 and Routing Tier 2, noted under Footnote 1, 

the Exchange is marking Footnote 1 as, ‘‘Reserved.’’ 

able to provide rebates commensurate 

with either displayed MDOs or nondisplayed MDOs. This change benefits 

all Members equally in that fee code DA 

will no longer be available to any 

Member and all Members utilizing 

MDOs will have their orders appended 

with the appropriate fee code for the 

display option chosen for its MDO. The 

Exchange notes that the usage of the 

MDO order type is optional, and 

Members may choose to submit (or not 

submit) MDOs as part of their order flow 

to the Exchange. Additionally, the 

Exchange believes that its proposal to 

eliminate fee codes DR and DT is 

reasonable, equitable, and nondiscriminatory, because as noted above, 

MDOs will now act only as liquidity 

providers, unless they have a QDP 

instruction. Because MDOs without a 

QDP instruction will only add liquidity, 

and a separate fee code (i.e., DX) already 

exists for MDOs with QDP instructions 

that remove liquidity, fee codes DR and 

DT are no longer necessary. This change 

benefits all Members equally in that fee 

codes DR and DT will no longer be 

available to any Member and Members 

that enter MDOs with a QDP instruction 

permitting such orders to remove 

liquidity, can append their orders with 

fee code, DX. Finally, removing fee 

codes DA, DR, and DT will help to 

streamline the fee schedule, and make 

the fee schedule clearer and more 

accurate. 

In addition, the Exchange does not 

propose to change the standard fee 

(Free) or standard rebate (Free) for 

securities priced below $1.00, or the 

standard fee for routing orders in 

securities priced above $1.00 or below 

$1.00. The Exchange believes that these 

proposed standard rebates and fees are 

reasonable, equitable, and nondiscriminatory, as Members have 

indicated that a Free/Free structure is 

currently a viable incentive for them to 

add or remove liquidity on EDGA, 

today. Moreover, the routing fees for 

both above $1.00 and below $1.00, are 

remaining unchanged, because they 

remain consistent with the fees typically 

assessed to the Exchange by other 

venues for routing liquidity and are also 

the routing fees Members are 

accustomed to be assessed on EDGA, 

today. Additionally, because theses 

proposed fees remain unchanged, they 

do raise any new or novel issues not 

already considered by the Commission. 

The Exchange also proposes to 

increase the remove fee for fee codes 

DX, HR, and MT. The Exchange believes 

that these proposed fees are reasonable, 

equitable, and non-discriminatory 

because they are intended to reflect the 

Exchange’s transition to a maker-taker 

fee model and reflect a fee structure 

typical of a maker-taker model where 

standard remove fees are utilized to 

provide rebates to Members adding 

liquidity. Accordingly, because orders 

appended with these fee codes all 

remove liquidity, the Exchange 

proposes to assess them the standard 

remove fee of $0.0030. In turn, the 

Exchange proposes to pay a standard 

rebate of $0.0027 to orders appended 

with fee codes DD, DM, and DN, as 

these orders add liquidity. The 

Exchange similarly believes that its 

proposal to eliminate the Routing Tiers 

and the Add/Remove Volume Tiers is 

reasonable because the Exchange is not 

required to maintain these tiers or 

provide Members an opportunity to 

receive enhanced rebates or reduced 

fees. The Exchange believes its proposal 

to eliminate these tiers is also equitable 

and not unfairly discriminatory because 

the change applies to all Members 

equally, in that the tiers will no longer 

be available for any Member. The 

Exchange notes that the proposed 

change to remove the Routing Tiers and 

the Add/Remove Volume Tiers merely 

results in Members not receiving an 

enhanced rebate or paying a reduced fee 

which, as noted above, the Exchange is 

not required to offer or maintain. 

Further, the proposed change to 

eliminate the Routing Tiers and the 

Add/Remove Volume Tiers enables the 

Exchange to redirect resources and 

funding into the Exchange’s proposed 

fee structure, which is intended to 

incentivize increased order flow 

without the use of volume-based 

criteria. 

The Exchange does not propose to 

make any changes to fee codes 7–AZ, C– 

D, F–G, I–J, NA, O, P, Q, RX–SW, and 

X. These fee codes append to routed 

orders and the fees associated with 

these codes align with the fees assessed 

to the Exchange by the each of the 

recipient trading venues. These fees are 

not impacted by the transition to a 

maker-taker fee model, and as such, the 

Exchange does not propose to any 

changes. Fee code, OO, appends to 

EDGA opening or re-opening orders, 

and the economics of such orders are 

not impacted by a transition from an 

inverted fee model to a maker-taker fee 

model. Accordingly, the Exchange does 

not propose any changes to fee code, 

OO. Similarly, fee code, S, appends to 

directed ISOs, which the Exchange 

routes to away trading venues. The 

current fee is not impacted by a 

transition from an inverted fee model to 

a maker-taker fee model, and as such, 

the Exchange is not proposing a change 

to fee code, S. Finally, the Exchange 

believes that the proposed removal of 

the ‘‘Definitions’’ section of the Fee 

Schedule and proposed removal of 

content regarding Routing Tier 1 and 

Routing Tier 2,34 and the Add/Remove 

Volume Tiers from the ‘‘General Notes’’ 

section of the Fee Schedule is 

reasonable as the changes are intended 

to remove references to terms and tiers 

that are no longer applicable due to the 

Exchange’s elimination of the Routing 

Tiers, Add/Remove Volume Tiers, and 

certain routing strategies. The proposed 

changes are equitable and nondiscriminatory as they will apply to all 

Members equally, in that the revised 

‘‘General Notes’’ section of the Fee 

Schedule will be available to all 

Members and the ‘‘Definitions’’ section 

of the Fee Schedule will no longer be 

available to any Member. Additionally, 

these proposed changes will help to 

make the fee schedule clearer and more 

accurate. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Rather, as 

discussed above, the Exchange believes 

that the proposed changes would 

encourage the submission of additional 

order flow to a public exchange, thereby 

promoting market depth, execution 

incentives and enhanced execution 

opportunities, as well as price discovery 

and transparency for all Members. As a 

result, the Exchange believes that the 

proposed changes further the 

Commission’s goal in adopting 

Regulation NMS of fostering 

competition among orders, which 

promotes ‘‘more efficient pricing of 

individual stocks for all types of orders, 

large and small.’’ 

The Exchange believes the proposed 

rule changes do not impose any burden 

on intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Particularly, 

the proposed change to a maker-taker 

fee structure, proposed fee code 

changes, elimination of Routing Tiers, 

and elimination of Add/Remove 

Volume Tiers will apply to all Members 

equally in that all Members are eligible 

for the revised fee structure and 

proposed fee code changes and all 

Members will no longer be eligible for 

the Routing Tiers or Add/Remove 

Volume Tiers. The Exchange does not 

believe the proposed changes burden 


khammond on DSKJM1Z7X2PROD with NOTICES
88074 Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Notices 

35See Cboe Global Markets, U.S. Equities Market 

Volume Summary, Month-to-Date (August 20, 

2024), available at https://www.cboe.com/us/ 

equities/market_statistics/. 

36See Securities Exchange Act Release No. 51808 

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

37NetCoalition 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)). 

38 15 U.S.C. 78s(b)(3)(A). 

39 17 CFR 240.19b–4(f). 

competition, but rather, enhances 

competition as it is intended to increase 

the competitiveness of EDGA by 

amending existing pricing incentives in 

order to attract order flow and 

incentivize a more diverse mix of 

liquidity providers to increase their 

participation on the Exchange, thereby 

promoting market depth, execution 

incentives and enhanced execution 

opportunities, as well as price discovery 

and transparency for all Members. 

Greater overall order flow, trading 

opportunities, and pricing transparency 

benefits all market participants on the 

Exchange by enhancing market quality 

and continuing to encourage Members 

to send orders, thereby contributing 

towards a robust and well-balanced 

market ecosystem. 

The Exchange further believes that the 

proposed rule change will not impose 

any burden on intramarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act 

because, while in some circumstances 

different fees are assessed and different 

rebates are paid, these different fees and 

rebates are not based on the type of 

Member entering the orders that match 

or on the volume of orders submitted by 

a Member but on the type of order 

entered, and all Members may submit 

any type of order for any type of 

security and will be subject to the same 

fee or rebate for that type of order and 

security. EDGA believes that applying a 

simplified fee and rebate structure, that 

is not based on tiered volume and is 

equally attainable by all types of 

participants, avoids imposing a burden 

on competition by ensuring that 

individual Members do not gain a 

competitive advantage over other 

Members based solely on their size or 

volume of orders they are able to submit 

to the Exchange. 

Next, the Exchange believes the 

proposed rule changes do not impose 

any burden on intermarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act. 

As previously discussed, the Exchange 

operates in a highly competitive market. 

Members have numerous alternative 

venues that they may participate on and 

direct their order flow, including other 

equities exchanges, off-exchange 

venues, and alternative trading systems. 

Additionally, the Exchange represents a 

small percentage of the overall market. 

Based on publicly available information, 

no single equities exchange has more 

than 17% of the market share.35

Therefore, no exchange possesses 

significant pricing power in the 

execution of order flow. Indeed, 

participants can readily choose to send 

their orders to other exchange and offexchange venues if they deem fee levels 

at those other venues to be more 

favorable. Moreover, the Commission 

has repeatedly expressed its preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. Specifically, in Regulation 

NMS, the Commission highlighted the 

importance of market forces in 

determining prices and SRO revenues 

and, also, recognized that current 

regulation of the market system ‘‘has 

been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 36 The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, the D.C. Circuit 

stated as follows: ‘‘[n]o one disputes 

that competition for order flow is 

‘fierce.’ . . . As the SEC explained, ‘[i]n 

the U.S. national market system, buyers 

and sellers of securities, and the brokerdealers that act as their order-routing 

agents, have a wide range of choices of 

where to route orders for execution’; 

[and] ‘no exchange can afford to take its 

market share percentages for granted’ 

because ‘no exchange possesses a 

monopoly, regulatory or otherwise, in 

the execution of order flow from broker 

dealers’. . . .’’ 37 Accordingly, the 

Exchange does not believe its proposed 

fee change imposes any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 38 and paragraph (f) of Rule 

19b–4 39 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

CboeEDGA–2024–045 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–CboeEDGA–2024–045. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

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

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 89, No. 215 / Wednesday, November 6, 2024 / Notices 88075 

40 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)(iii). 

4 17 CFR 240.19b–4(f)(6). 

5The Exchange initially filed the proposed 

changes on October 16, 2024 (SR–CboeEDGX–2024– 

066). On October 29, 2024, the Exchange submitted 

this proposal. 

6Today, the Exchange permits the listing of two 

Wednesday expirations for options on United States 

Oil Fund, LP (‘‘USO’’), United States Natural Gas 

Fund, LP (‘‘UNG’’), GLD, SLV, and TLT. See 

Securities Exchange Act Release No. 99037 

(November 29, 2023), 88 FR 84370 (December 5, 

2023) (SR–CboeEDGX–2023–071) (‘‘Wednesday 

Notice’’). The Exchange began listing Wednesday 

expirations on these five symbols on November 21, 

2023. See Exchange Notice, Reference ID: 

C2023111702. 

7See Securities Exchange Act Release No. 100837 

(August 27, 2024) (SR–ISE–2024–21) (Notice of 

Filing of Amendment No. 1 and Order Granting 

Accelerated Approval of a Proposed Rule Change, 

as Modified by Amendment No. 1, to Adopt Rules 

to Permit the Listing of Two Monday Expirations 

for Options on SPDR Gold Shares, iShares Silver 

Trust, and iShares 20+ Year Treasury Bond ETF) 

(‘‘Nasdaq ISE Approval’’). 

8As set forth in Table 1, the Exchange currently 

only permits Wednesday expirations for USO, UNG, 

GLD, SLV, and TLT. 

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–CboeEDGA–2024–045 and should 

be submitted on or before November 27, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.40

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–25732 Filed 11–5–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101490; File No. SR– 

CboeEDGX–2024–066] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend the 

Short Term Option Series Program in 

Rule 19.6, Interpretation and Policy .05 

October 31, 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 October 

29, 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 and II below, which Items have 

been prepared by the Exchange. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 3 and Rule 19b–4(f)(6) 

thereunder.4 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 

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

or ‘‘EDGX Options’’) proposes to amend 

the Short Term Option Series Program 

in Rule 19.6, Interpretation and Policy 

.05.5 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 the 

Short Term Option Series Program in 

Rule 19.6, Interpretation and Policy .05 

(Series of Options Contracts Open for 

Trading). Specifically, the Exchange 

proposes to expand the Short Term 

Option Series Program to permit the 

listing of two Monday expirations for 

options on SPDR Gold Shares (‘‘GLD’’), 

iShares Silver Trust (‘‘SLV’’), and 

iShares 20+ Year Treasury Bond ETF 

(‘‘TLT’’) (collectively ‘‘Exchange Traded 

Products’’ or ‘‘ETPs’’).6 This is a 

competitive filing that is based on a 

proposal submitted by Nasdaq ISE, LLC 

(‘‘ISE’’) and recently approved by the 

Commission.7

Currently, as set forth in Rule 19.6, 

Interpretation and Policy .05, after an 

option class has been approved for 

listing and trading on the Exchange as 

a Short Term Option Series, the 

Exchange may open for trading on any 

Thursday or Friday that is a business 

day (‘‘Short Term Option Opening 

Date’’) series of options on that class 

that expire at the close of business on 

each of the next five Fridays that are 

business days and are not Fridays in 

which standard expiration options 

series, Monthly Options Series, or 

Quarterly Options Series expire 

(‘‘Friday Short Term Option Expiration 

Dates’’). The Exchange may have no 

more than a total of five Short Term 

Option Expiration Dates. Further, if the 

Exchange is not open for business on 

the respective Thursday or Friday, the 

Short Term Option Opening Date for 

Short Term Option Weekly Expirations 

will be the first business day 

immediately prior to that respective 

Thursday or Friday. Similarly, if the 

Exchange is not open for business on a 

Friday, the Short Term Option 

Expiration Date for Short Term Option 

Weekly Expirations will be the first 

business day immediately prior to that 

Friday. 

Additionally, the Exchange may open 

for trading series of options on the 

symbols provided in Table 1 of Rule 

19.6, Interpretation and Policy .05(h) 

that expire at the close of business on 

each of the next two Mondays, 

Tuesdays, Wednesdays, and Thursdays, 

respectively, that are business days and 

are not business days in which monthly 

options series or Quarterly Options 

Series expire (‘‘Short Term Option Daily 

Expirations’’).8 For those symbols listed 

in Table 1, the Exchange may have no 

more than a total of two Short Term 

Option Daily Expirations beyond the 

current week for each of Monday, 

Tuesday, Wednesday, and Thursday 

expirations, as applicable, at one time. 

Proposal 

At this time, the Exchange proposes to 

expand the Short Term Option Daily 

Expirations to permit the listing and 

trading of options on GLD, SLV, and 

TLT expiring on Mondays. The 

Exchange proposes to permit two Short 

Term Option Expiration Dates beyond 

the current week for each Monday 

expiration at one time, and would 

update Table 1 in Rule 19.6, 

Interpretation and Policy .05(h) for each 

of those symbols accordingly. 

The proposed Monday GLD, SLV, and 

TLT expirations will be similar to the 

current Monday SPY, QQQ, and IWM 

Short Term Option Daily Expirations set 

forth in Rule 19.6, Interpretation and 


khammond on DSKJM1Z7X2PROD with NOTICES