Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 / Notices 93683 

11 17 CFR 200.30–3(a)(12), (59). 

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

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed fee 

change on November 1, 2024 (SR–CboeBYX–2024– 

040). On November 14, 2024, the Exchange 

withdrew that filing and submitted this filing. 

4The Exchange notes for securities priced below 

$1.00, there is no fee or rebate for removing 

liquidity from EDGA using the ALLB routing 

strategy. 

5ALLB is a routing option under which an order 

checks the System for available shares and is then 

sent to Cboe BZX Exchange, Inc., Cboe EDGA 

Exchange, Inc., and/or Cboe EDGX Exchange, Inc. 

in accordance with the System routing table. If 

shares remain unexecuted after routing, they are 

posted on the BYX Book, unless otherwise 

instructed by the User. See Rule 11.13(b)(3)(M). 

6There is no charge or rebate for securities priced 

below $1.00. 

7TRIM is a routing strategy under which an order 

checks EDGA for available shares if so instructed 

by the entering User, and then is sent to 

destinations on the applicable System routing table. 

See generally Rule 11.13(b)(3)(G)(iv). 

8SLIM is a routing strategy under which an order 

checks EDGA for available shares if so instructed 

by the entering User, and then is sent to 

destinations on the applicable System routing table. 

See generally Rule 11.13(b)(3)(G)(v). 

9See SR–CboeEDGA–2024–042; see also, SR– 

CboeEDGA–2024–045. 

10The inverted As such, orders that remove 

liquidity from EDGA will pay a remove fee, rather 

than receive a rebate. Because Members typically 

utilize routing options TRIM and SLIM, and fee 

code BJ, to seek low-cost executions, it does not 

make sense to maintain fee code, BJ, as Members 

would not expect to pay a fee for removing liquidity 

from EDGA. Therefore, the Exchange proposes to 

discontinue this fee code, as it is no longer 

necessary, and BYX does not desire to charge such 

orders a fee for removing liquidity from EDGA.fee 

model is a pricing structure in which a market, such 

as an exchange, charges its participants a fee to 

provide liquidity in securities, and provides a 

rebate to participants that remove liquidity in 

securities. See SEC Market Structure Advisory 

Committee, Memorandum on ‘‘Maker-Taker Fees on 

Equities Exchanges,’’ October 20, 2015, available at: 

https://www.sec.gov/spotlight/emsac/memo-makertaker-fees-on-equities-exchanges.pdf. 

11The maker-taker fee model is a pricing 

structure in which a market, such as an exchange, 

generally pays its members a per share rebate to 

provide (i.e., ‘‘make’’) liquidity in securities and 

assesses on them a fee to remove (i.e., ‘‘take’’) 

liquidity. Id. 

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 

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–NYSECHX–2024–32 and should be 

submitted on or before December 18, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–27746 Filed 11–26–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101700; File No. SR– 

CboeBYX–2024–042] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule Relating to Routing 

Codes 

November 21, 2024. 

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 November 

14, 2024, Cboe BYX Exchange, Inc. 

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

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

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 BYX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) 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/BYX/), 

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 

Effective November 1, 2024, the 

Exchange proposes to amend its BYX 

Fee Schedule applicable to its equities 

trading platform.3 By implementing a 

remove fee (as opposed to a rebate) for 

fee code, AA, removing fee code, BJ, and 

adding EDGA to the list of venues to 

which orders appended with fee code, 

PL, are routed. 

Fee Codes 

The Exchange proposes to implement 

a remove fee for fee code, AA. The 

proposed changes are as follows: 

• For securities priced above $1.00,4

fee code AA is appended to orders that 

are routed to EDGA using the ALLB 5

routing strategy. Currently, orders 

appended with fee code AA receive a 

rebate of $0.0018. 

The Exchange now proposes to amend 

fee code, AA, as follows: 

• For securities priced above $1.00, 

fee code AA will continue to be 

appended to orders that are routed to 

EDGA using the ALLB routing strategy. 

However, orders appended with fee 

code AA will now pay a fee of $0.0030. 

The Exchange does not propose to add 

a fee or rebate for removing liquidity for 

securities priced below $1.00. 

The Exchange also proposes to 

remove fee code, BJ. For securities 

priced above $1.00,6 fee code BJ is 

currently appended to orders that are 

routed to EDGA using the TRIM 7 or 

SLIM 8 routing strategies and receive a 

rebate of $0.0018. However, effective 

November 1, 2024,9 EDGA transitioned 

from an inverted fee model 10 to a 

maker-taker fee model.11

The Exchange also proposes to edit 

the description of fee code, PL. The BYX 

Fee Schedule currently describes PL, as 

a fee code appended to orders that are 

‘‘[r]outed to BZX, EDGX, NYSE, NYSE 

Arca or Nasdaq using RMPL routing 

strategy.’’ The Exchange now proposes 

to move EDGA to the list of high-cost 

destinations for the RMPL routing 


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93684 Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 / Notices 

12See SR–CboeEDGA–2024–045. 

13NYSE Arca charges a removal fee of $0.0030. 

See Section III—Standard Rates—Transactions 

(applicable when Tier Rates do not apply), 

Removing Liquidity, pg. 3, available at: https://

www.nyse.com/publicdocs/nyse/markets/nyse-arca/ 

NYSE_Arca_Marketplace_Fees.pdf; NYSE charges a 

removal fee of $0.0030 for orders that remove 

midpoint liquidity. See NYSE Stock Exchange Price 

List, ‘‘Equity per Share Charge—per transaction— 

MPL orders that remove liquidity from the NYSE 

(Adding Tier Credits do not apply) and with no 

Retail Modifier, as defined in Rule 13 (‘‘Retail 

Modifier’’)), pg. 5, available at https://

www.nyse.com/publicdocs/nyse/markets/nyse/ 

NYSE_Price_List.pdf; Nasdaq charges a removal fee 

of $0.0030. See Fees to Remove Liquidity, Shares 

Executed at or above $1.00, available at: https://

www.nasdaqtrader.com/ 

Trader.aspx?id=PriceListTrading2. 

14 15 U.S.C. 78f(b). 

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

16 Id. 

17 15 U.S.C. 78f(b)(4). 

strategy that are assigned the PL fee 

code, by amending the description in 

the Fee Schedule to read as follow: 

‘‘Routed to BZX, EDGX, EDGA, NYSE, 

NYSE Arca or Nasdaq using RMPL 

routing strategy.’’ Previously, orders 

appended with fee code, PX, utilized 

routing option, RMPL, which is a 

midpoint liquidity seeking strategy that 

first targets low-cost executions at 

certain lower-cost venues, including 

EDGA. However, because EDGA is now 

transitioning to a maker-taker fee model, 

EDGA will now be assessing a full 

remove fee of $0.0030 for orders that 

remove liquidity from EDGA.12 As such, 

the Exchange believes that current fee 

code, PL—which charges a $0.0030 for 

routing orders to other exchanges—is 

now the more appropriate fee code to be 

appended to midpoint liquidity seeking 

orders that are routed to other major 

exchanges. Similar to EDGA, the other 

exchanges targeted by RMPL—NYSE, 

NYSE Arca, and Nasdaq—also charge a 

high remove fee to liquidity removing 

orders.13

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.14 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 15 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) 16 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) 17 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. 

Adjusting fee code AA and removing 

fee code, BJ, is necessary to reflect the 

transition of EDGA to a maker-taker fee 

model, effective November 1, 2024. 

Prior to the November 1, 2024, orders 

entered onto BYX, that were appended 

with fee code, AA, and were routed to 

EDGA using routing option ALLB, 

received a rebate of $0.0018 for 

removing liquidity from the EDGA Book 

for securities priced at or above $1.00. 

However, given EDGA’s transition to a 

maker-taker fee model, orders that 

remove liquidity will now need to pay 

a liquidity removal fee, rather than 

receive a rebate. Accordingly, removal 

of the current $0.00180 rebate 

associated with fee code, AA, and 

implementation of a $0.0030 remove fee 

is appropriate and consistent with the 

economics of a maker-taker model, as 

well as the expectations of Members 

that remove liquidity from EDGA (i.e., 

Members would expect to pay a fee to 

remove liquidity). Moreover, the 

proposed fee is not unfairly 

discriminatory because it applies to all 

Members equally, in that all Members 

will pay the same fee for orders routed 

to EDGA using the ALLB routing 

strategy, and appended with fee code, 

AA. 

The Exchange also believes that its 

removal of fee code, BJ, is reasonable, 

equitable, and not unfairly 

discriminatory as it does not change the 

fees or rebates assessed by the 

Exchange, but rather updates the BYX 

Fee Schedule to remove a fee code that 

the Exchange no longer desires to, nor 

is required to, offer to its Members. 

Therefore, the proposed rule change is 

reasonably designed to update the Fee 

Schedule to accurately reflect the 

Exchange’s current product offerings 

and is designed to reduce any potential 

confusion regarding the routing of 

orders with fee code, BJ, from BYX to 

EDGA. Furthermore, as noted above, 

orders appended with fee code, BJ, 

entered onto BYX and routed to EDGA 

using the routing option TRIM or SLIM, 

previously received a rebate of $0.0018 

for removing liquidity from the EDGA 

Book. However, effective November 1, 

2024, EDGA transitioned from an 

inverted fee model to a maker-taker fee 

model. As such, orders that remove 

liquidity from EDGA will pay a remove 

fee, rather than receive a rebate. Because 

Members typically utilize routing 

options TRIM and SLIM, and fee code 

BJ, to seek low-cost executions, it does 

not make sense to maintain the BJ fee 

code, as Members utilizing this fee code 

would not expect to pay a fee for 

removing liquidity from EDGA. 

Therefore, the Exchange proposes to 

discontinue this fee code, as it is no 

longer necessary, and BYX does not 

desire to charge such orders a fee for 

removing liquidity from EDGA. 

Finally, the Exchange believes that 

moving EDGA to the list of high-cost 

destinations for the RMPL routing 

strategy that are assigned the PL fee 

code, and assessing such orders a fee of 

$0.0030, is necessary and appropriate. 

Members appending their orders with 

the PL fee code already expect to pay a 

remove fee for removing liquidity from 

exchanges accessed by RMPL, rather 

than receive a rebate for removing 

liquidity as they do with liquidity 

removing orders appended with the PX 

fee code. Additionally, the remove fee of 

$0.0030 per share represents an 

equitable allocation of reasonable dues, 

fees, and other charges. The proposed 

change would enable the Exchange to 

charge a rate reasonably related to the 

rate that Cboe Trading, Inc. (‘‘Cboe 

Trading’’), the Exchange’s affiliated 

routing broker-dealer, would be charged 

for routing orders to destinations 

described in fee codes PL. As a result, 

when Cboe Trading is charged a fee 

when it routes an order which removes 

liquidity from a destination described in 

fee codes PL, Cboe Trading will pass 

through these rates to the Exchange and 

the Exchange, in turn, will charge the 

rate under fee codes PL. The proposed 

fee under fee code, PL, for orders routed 

pursuant to the RMPL routing strategy 

would enable the Exchange to equitably 

allocate its costs among all Members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule changes will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Given 

EDGA’s transition to a maker-taker fee 

model, orders that remove liquidity will 

now need to pay a liquidity removal fee, 

rather than receive a rebate. 

Accordingly, removing the current 

$0.0018 rebate associated with fee code, 

AA, and implementing a $0.0030 

remove fee is appropriate and consistent 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 / Notices 93685 

18 15 U.S.C. 78s(b)(3)(A). 

19 17 CFR 240.19b–4(f). 

20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

with the economics of a maker-taker 

model, as well as the expectations of 

Members that remove liquidity from 

EDGA (i.e., Members would expect to 

pay a fee to remove liquidity). 

Moreover, moving EDGA to the list of 

high-cost destinations for the RMPL 

routing strategy that are assigned the PL 

fee code simply reflects the fact that 

orders routed to EDGA that remove 

liquidity will now—just as they do on 

other exchanges accessed with the PL 

fee code—pay a remove fee instead of 

receiving a rebate. In addition, the BJ fee 

code was typically appended to orders 

utilizing the TRIM or SLIM strategies, 

which are designed to seek low-cost 

executions. Given EDGA’s transition to 

a maker-taker fee model, though, 

removers of liquidity will now pay a 

remove fee. As such, it is appropriate to 

remove the BJ fee code as Member’s 

utilizing this fee code would expect to 

receive a rebate and not expect to pay 

a fee. Accordingly, these proposed 

changes are necessary and appropriate 

in order to align Members’ expectations 

with the economics of EDGA’s new 

maker-taker fee model and will not have 

any impact on competition. 

Additionally, moving EDGA from fee 

code, PX, to fee code is PL, will not 

have any impact on competition. Rather, 

it is necessary and appropriate given 

EDGA’s transition to a maker-taker fee 

model. Users of the PL fee code already 

expect to pay fees for removing liquidity 

from exchanges, whereas users of the PX 

fee code would expect lower-cost 

executions for removing liquidity from 

exchanges, including EDGA. 

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 18 and paragraph (f) of Rule 

19b–4 19 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– 

CboeBYX–2024–042 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–CboeBYX–2024–042. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (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 

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–CboeBYX–2024–042 and should be 

submitted on or before December 18, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–27765 Filed 11–26–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101686; File No. SR–MRX– 

2024–43] 

Self-Regulatory Organizations; Nasdaq 

MRX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend its Fees for 

Connectivity and Co-location Services 

November 21, 2024. 

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 November 

8, 2024, Nasdaq MRX, LLC (‘‘MRX’’ or 

‘‘Exchange’’) 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 

The Exchange proposes to amend the 

Exchange’s fees for connectivity and colocation services, as described further 

below. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/mrx/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 


ddrumheller on DSK120RN23PROD with NOTICES1