106660 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 

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. 

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

4 17 CFR 240.19b–4(f)(6). 

5See CFTC Staff Advisory Relating to the 

Clearing of Options on Spot Commodity Exchange 

Traded Funds (ETFs), Letter No. 24–16 (Nov. 15, 

2024), available at https://www.cftc.gov/csl/24-16/ 

download. 

uniform manner, in the same way 

similar programs apply to appointed 

LMMs in other proprietary products 

today. To the extent appointed LMMs 

receive a benefit that other market 

participants do not, these LMMs in their 

role as Market-Makers on the Exchange 

have different obligations and are held 

to different standards. For example, 

Market-Makers play a crucial role in 

providing active and liquid markets in 

their appointed products, especially in 

the newly developing CBTX and MBTX 

market, thereby providing a robust 

market which benefits all market 

participants. Such Market-Makers also 

have obligations and regulatory 

requirements that other participants do 

not have. The Exchange also notes that 

an LMM appointed to an incentive 

program may undertake added costs 

each month to satisfy heightened 

quoting standards (e.g., having to 

purchase additional logical 

connectivity). The Exchange also notes 

that the LMM Incentive Programs, like 

the other LMM Incentive Programs, is 

designed to attract additional order flow 

to the Exchange, wherein greater 

liquidity benefits all market participants 

by providing more trading 

opportunities, tighter spreads, and 

added market transparency and price 

discovery, and signals to other market 

participants to direct their order flow to 

those markets, thereby contributing to 

robust levels of liquidity. 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on intermarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the proposed rule changes 

apply only to products exclusively 

listed on the Exchange. 

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– 

CBOE–2024–055 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–CBOE–2024–055. 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–CBOE–2024–055 and should be 

submitted on or before January 21, 2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–30902 Filed 12–27–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–102018; File No. SR–OCC– 

2024–018] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Update 

The Options Clearing Corporation’s 

By-Laws 

December 20, 2024. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule 

19b–4 thereunder,2 notice is hereby 

given that on December 19, 2024, the 

Options Clearing Corporation (‘‘OCC’’) 

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 primarily by OCC. 

OCC filed the proposed rule change 

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

Act and Rule 19b–4(f)(6) 4 thereunder. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change would 

amend the definition of ‘‘Fund Share’’ 

in Article I of OCC’s By-Laws (including 

the Interpretation and Policy), 

consistent with the staff advisory 

(‘‘Advisory’’) recently issued by the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) regarding the 

clearing of options on spot commodity 

exchange traded funds (‘‘ETFs’’) 5

(hereinafter ‘‘Proposed Rule Change’’). 

The proposed changes to OCC’s ByLaws are included [sic] in Exhibit 5 of 


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Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 106661 

6OCC’s By-Laws and Rules can be found on 

OCC’s public website: https://www.theocc.com/ 

Company-Information/Documents-and-Archives/ 

By-Laws-and-Rules. 7 In seeking comment to an OCC request to clear 

and settle options on streetTRACKS® Gold Trust 

Shares, the CFTC indicated that, ‘‘novel derivative 

products that implicate areas of overlapping 

regulatory concern should be permitted to trade in 

either or both a CFTC- or SEC- regulated 

environment [. . .]’’ The CFTC further noted that in 

considering the exemption, ‘‘the CFTC need not— 

and does not—find that [these options] are (or are 

not) subject to the CEA’’ and that the options were 

‘‘‘novel instruments’ and the ‘determination as to 

[their] jurisdiction is not straightforward.’ Given 

their potential usefulness to the market, however, 

the [CFTC] believes that this may be an appropriate 

case for issuing an exemption without making a 

finding as to the nature of these particular 

instruments.’’ See Proposal to Exempt the Trading 

and Clearing of Certain Products Related to 

streetTRACKS® Gold Trust Shares, 73 FR 21917, at 

21918 (Apr. 23, 2008). 

8 7 U.S.C. 7a–1. 

9See infra note 15. 

10See e.g., Securities Exchange Act Release Nos. 

57466 (Mar. 11, 2008), 73 FR 14297 (Mar. 17, 2008) 

and 57695 (Apr. 21, 2008), 73 FR 22452 (Apr. 25, 

2008) (SR–OCC–2008–07) (SPDR Gold Trust f/k/a 

streetTRACKS® Gold Shares); 59054 (Dec. 4, 2008), 

73 FR 75159 (Dec. 10, 2008) (SR–OCC–2008–13 and 

SR–OCC–2008–14) (iShares COMEX Gold Trust 

Shares and iShares Silver Trust Shares); 61254 

(Dec. 29, 2009), 75 FR 1093 (Jan. 8, 2010) (SR–OCC– 

2009–20) (ETFS Physical Swiss Gold Shares and 

ETFS Physical Silver Shares). 

11See supra note 5. 

12 Id. 

13 Id. 

14See e.g., Securities Exchange Act Release Nos. 

57895 (May 30, 2008), 73 FR 32066 (June 5, 2008) 

(SR–OCC–2008–07) (SPDR Gold Trust f/k/a 

streetTRACKS® Gold Trust Shares)); and 61591 

(Feb. 25, 2010), 75 FR 9981 (Mar. 4, 2010) (SR– 

OCC–2009–20) (ETFS Physical Swiss Gold Shares 

and ETFS Physical Silver Shares). 

15See e.g., 73 FR 31979 (Jun. 5, 2008) (SPDR®

Gold Futures Contracts (f/k/a streetTRACKS® Gold 

Trust Shares security futures)); 73 FR 31981 (Jun. 

5, 2008) (SPDR® Gold Trust Shares (f/k/a 

streetTRACKS® Gold Trust Shares options)); 73 FR 

79830 (Dec. 30, 2008) (iShares® COMEX Gold Trust 

Shares and iShares® Silver Trust Shares); and 75 FR 

37406 (Jun. 29, 2010) (ETFS Physical Swiss Gold 

Shares and ETFS Physical Silver Shares). 

File No. SR–OCC–2024–018. Material 

proposed to be added to OCC’s By-Laws 

as currently in effect is underlined and 

material proposed to be deleted is 

marked in strikethrough text. All 

capitalized terms not defined herein 

have the same meaning as set forth in 

the OCC By-Laws and Rules.6

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, 

OCC 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. OCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

OCC clears and settles options on 

ETFs. Such ETFs are classified under 

the definition of ‘‘Fund Share’’ in OCC’s 

By-Laws. An Interpretation and Policy 

to the fund share definition lists by 

name certain precious metals 

commodity-based ETFs for which OCC 

can provide clearance and settlement 

services on related options and security 

futures contracts. This practice began in 

2008 because of the uncertain 

jurisdictional status of options or 

security futures on precious metals 

commodity-based ETFs.7 As exchanges 

have launched more of these products 

since 2008, OCC has, for each product, 

(i) sought CFTC exemptive relief 

pursuant to Section 4(c) of the 

Commodity Exchange Act (‘‘CEA’’) 8

from regulations that would be 

inconsistent with the trading and 

clearing of these products if the 

underlying were considered a 

commodity that is not a security 9 and 

then (ii) filed a proposed rule change 

with the Commission to incorporate the 

name of the product for which relief 

was granted into the Interpretation and 

Policy of the fund share definition.10

On November 15, 2024, the CFTC 

issued the Advisory relating to the 

clearing of options on spot commodity 

ETFs. The Advisory provided that it is 

‘‘substantially likely’’ that these spot 

commodity ETF shares would be held to 

be securities.11 The Advisory further 

concluded that ‘‘these shares listed on 

SEC registered national securities 

exchanges do not implicate the [CFTC’s] 

jurisdiction, and therefore, the clearing 

of these options by OCC would be 

undertaken in its capacity as a 

registered clearing agency subject to 

SEC oversight.’’ 12 OCC believes the 

Advisory largely forecloses any 

potential liability under the CEA, as 

amended, including the argument that 

OCC’s clearance and settlement of 

options on spot commodity ETFs 

constitutes a violation of the CEA. 

In light of the Advisory, OCC will no 

longer seek product-by-product 

exemptive relief from the CFTC to clear 

spot commodity-based ETF products. 

OCC will, therefore, no longer need to 

specifically identify commodity-based 

products in the fund share definition. 

OCC proposes to make clarifications to 

the fund share definition based on the 

contents of the Advisory and delete the 

Interpretation and Policy to the fund 

share definition, which is no longer 

relevant or necessary, as further 

described below. 

1. Purpose 

The purpose of the Proposed Rule 

Change is to amend the definition of 

‘‘Fund Share’’ in Article I of OCC’s ByLaws (including the Interpretation and 

Policy), consistent with the Advisory 

recently issued by the CFTC regarding 

the clearing of options on spot 

commodity ETFs.13 Currently, Article I, 

Section 1, of OCC’s By-Laws defines 

‘‘Fund Share’’ as a publicly traded 

security (as defined in Section 3(a)(10) 

of the Act, as amended) that represents 

an interest in a trust, investment 

company, commodity pool, or similar 

entity holding and/or trading in one or 

more investments. Where the 

investments are commodities, the 

amended definition would clarify that 

such term is subject to any applicable 

advisory, exemption or other relief or 

guidance issued by the CFTC. This 

proposed change is intended to facilitate 

the clearance of these products in a 

manner that is consistent with the 

Advisory and applicable regulations. 

Additionally, the Interpretation and 

Policy to the fund share definition 

currently identifies on a product-byproduct basis specific precious metals 

commodity-based ETFs that OCC 

includes within the definition of fund 

share. The Commission previously 

approved proposed rule changes by 

OCC in which OCC added these 

precious metals commodity-based ETFs 

to the Interpretation and Policy.14 As 

discussed above, the purpose of adding 

specific ETF names to the Interpretation 

and Policy was to clarify the 

jurisdictional status of options or 

security futures on these products, and 

was done in conjunction with the 

CFTC’s issuance of a 4(c) order 

exempting the trading and clearing of 

the specific ETF names from CFTC 

regulations with which trading and 

clearing would be inconsistent if the 

products were commodities that were 

not securities.15 Because the Advisory 

finds it ‘‘substantially likely’’ likely that 

spot commodity ETF shares would be 

held to be securities, OCC believes that 

it no longer needs to seek product-byproduct exemptive relief from the CFTC 

to clear spot commodity-based ETF 

products, including precious metals 

commodity-based ETFs. OCC will no 

longer need to specifically identify 

commodity-based products in the fund 

share definition. OCC thus proposes a 

clean-up change to delete in its entirety 

the Interpretation and Policy to the fund 

share definition, which is no longer 


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16 15 U.S.C. 78q–1. 

17 15 U.S.C. 78q–1(b)(3)(F). 

18 17 CFR 240.17ad–22(e)(21). 

19 15 U.S.C. 78q–1(b)(3)(F). 

20 17 CFR 240.17ad–22(e)(21). 

21 15 U.S.C. 78q–1(b)(3)(I). 

22 15 U.S.C. 78s(b)(3)(A). 

23 17 CFR 240.19b–4(f)(6). 

24Notwithstanding its immediate effectiveness, 

implementation of this rule change will be delayed 

until this change is deemed certified under CFTC 

Regulation 40.6. 

relevant or necessary, to avoid potential 

confusion. 

In general, OCC believes that the 

proposed changes would provide 

additional certainty to market 

participants regarding OCC’s treatment 

of fund shares, including commoditybased ETF products, in accordance with 

applicable regulatory requirements and 

guidance. OCC believes that this 

proposed rule change does not make 

any substantive modifications to the 

fund share definition. Instead, the 

proposed changes update the definition 

with current details and remove those 

details that have become irrelevant due 

to the Advisory. Such changes would 

further ensure that OCC’s By-Laws 

remain up-to-date, clear, and 

transparent. 

2. Statutory Basis 

OCC believes the Proposed Rule 

Change is consistent with Section 17A 

of the Exchange Act 16 and the rules and 

regulations thereunder applicable to 

OCC. In particular, OCC believes that 

the Proposed Rule Change is consistent 

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

and Rule 17Ad–22(e)(21) 18 thereunder, 

for the reasons described below. 

Section 17A(b)(3)(F) 19 of the Act 

requires, among other things, that the 

rules of a clearing agency be designed to 

remove impediments to and perfect the 

mechanism of a national system for the 

prompt and accurate clearance and 

settlement of securities transactions. 

OCC believes the proposed changes 

would facilitate the clearance of spot 

commodity-based ETF products in a 

manner that is consistent with 

regulatory requirements and guidance. 

OCC believes the proposed changes 

would provide additional certainty to 

market participants regarding OCC’s 

treatment of such products, which 

would reduce the likelihood that OCC 

Clearing Members would have 

jurisdictional concerns over trading 

these products. Reducing jurisdictional 

concerns that could impede the trading 

of new products would remove 

impediments to and perfect the 

mechanism of a national system for the 

prompt and accurate clearance and 

settlement of securities transactions by 

providing certainty regarding the 

treatment of fund shares. 

Commission Rule 17Ad–22(e)(21) 

requires OCC to establish, implement, 

maintain, and enforce written policies 

and procedures reasonably designed to 

‘‘be efficient and effective in meeting 

the requirements of its [clearing 

members] and the markets it serves 

. . . .’’ 20 OCC believes the Proposed 

Rule Change is consistent with this 

provision because, as described above, 

by providing clarity in its By-Laws, it 

will (i) reduce the likelihood that OCC 

Clearing Members would have 

jurisdictional concerns over trading 

these products and (ii) ensure that 

OCC’s By-Laws remain up-to-date and 

transparent. The proposed changes to 

the fund share definition are intended to 

facilitate the clearance of commoditybased ETF products in a manner that is 

consistent with the Advisory and 

applicable regulations and to provide 

additional certainty regarding OCC’s 

treatment of such products. The 

proposed deletion of the Interpretation 

and Policy to the fund share definition 

would prevent potential confusion, as 

this provision is no longer relevant or 

necessary. Moreover, the Proposed Rule 

Change is not inconsistent with the ByLaws and Rules of OCC. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

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

requires that the rules of a clearing 

agency not impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. OCC does not 

believe that the proposed amendments 

to the fund share definition, including 

the Interpretation and Policy, would 

impose any burden on competition 

because they would merely establish 

clear treatment of fund shares in a 

manner that is consistent with 

regulatory requirements and guidance. 

OCC believes that this Proposed Rule 

Change does not make any substantive 

modifications to the fund share 

definition but, instead, updates the 

definition with current details and 

removes those details that have become 

irrelevant due to the Advisory. The 

proposed changes would not inhibit 

access to OCC’s services in any way, 

would apply to all Clearing Members 

uniformly and would not disadvantage 

or favor any particular user in 

relationship to another user. 

Accordingly, OCC does not believe that 

the Proposed Rule Change would have 

any impact or impose a burden on 

competition. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments were not and are 

not intended to be solicited with respect 

to the Proposed Rule Change, and none 

have been received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: 

(i) significantly affect the protection of 

investors or the public interest; 

(ii) impose any significant burden on 

competition; and 

(iii) become operative for 30 days 

from the date on which it was filed, or 

such shorter time as the Commission 

may designate, it has become effective 

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

Act 22 and Rule 19b–4(f)(6) 23

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. 

The proposal shall not take effect 

until all regulatory actions required 

with respect to the proposal are 

completed.24

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– 

OCC–2024–018 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–OCC–2024–018. This file 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 106663 

25 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed fee 

changes on July 3, 2023 (SR–CboeEDGX–2023–045). 

On September 1, 2023, the Exchange withdrew that 

filing and submitted SR–CboeEDGX–2023–058. On 

September 29, 2023, the Securities and Exchange 

Commission issued a Suspension of and Order 

Instituting Proceedings to Determine whether to 

Approve or Disapprove a Proposed Rule Change to 

Amend its Fees Schedule Related to Physical Port 

Fees (the ‘‘OIP’’)in anticipation of a possible U.S. 

government shutdown. ’’). On September 29, 2023, 

the Exchange filed the proposed fee change (SR– 

CboeEDGX–2023–063). On October 13, 2023, the 

Exchange withdrew that filing and submitted SR– 

CboeEDGX–2023–064. On December 12, 2023, the 

Exchange withdrew that filing and submitted SR– 

CboeEDGX–2023–080. On February 12, 2024, the 

Exchange withdrew that filing and submitted SR– 

CboeEDGX–2024–014. On April 9, 2024, the 

Exchange withdrew that filing and submitted SR– 

CboeEDGX–2024–021. On June 7, 2024, the 

Exchange withdrew that filing and submitted SR– 

CboeEDGX–2024–036. On August 29, 2024, the 

Exchange withdrew that filing and submitted SR– 

CboeEDGX–2024–057. On October 25, 2024, the 

Exchange withdrew that filing and submitted SR– 

CboeEDGX–2024–072. On December 18, 2024, the 

Exchange withdrew that filing and submitted this 

filing. 

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

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

Exchange. Nasdaq and its affiliated exchanges 

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

fiber connection to the respective exchange, which 

is analogous to the Exchange’s 10Gb physical port. 

See also New York Stock Exchange LLC, NYSE 

American LLC, NYSE Arca, Inc., NYSE Chicago 

Inc., NYSE National, Inc. Connectivity Fee 

Schedule, which provides that 10 Gb LX LCN 

Circuits (which are analogous to the Exchange’s 10 

Gb physical port) are assessed $22,000 per month, 

per port. 

5The Affiliate Exchanges are also submitting 

contemporaneous identical rule filings. 

6The Exchange notes that conversely, other 

exchange groups charge separate port fees for access 

to separate, but affiliated, exchanges. See e.g., 

Securities and Exchange Release No. 99822 (March 

21, 2024), 89 FR 21337 (March 27, 2024) (SR– 

MIAX–2024–016). 

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 such filing 

also will be available for inspection and 

copying at the principal office of OCC 

and on OCC’s website at https://

www.theocc.com/CompanyInformation/Documents-and-Archives/ 

By-Laws-and-Rules. 

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–OCC–2024–018 and 

should be submitted on or before 

January 21, 2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

J. Matthew DeLesDernier, 

Deputy Secretary. 

[FR Doc. 2024–31094 Filed 12–27–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–102017; File No. SRCboeEDGX–2024–086] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend its 

Fees Schedule Related to Physical 

Port Fees 

December 20, 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 December 

18, 2024, Cboe EDGX Exchange, Inc. 

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

‘‘Exchange’’ or ‘‘EDGX Options’’) 

proposes to amend its Fees Schedule. 

The text of the proposed rule change is 

provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

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

options/regulation/rule_filings/edgx/), 

at the Exchange’s Office of the 

Secretary, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

fee schedule relating to physical 

connectivity fees.3

By way of background, a physical port 

is utilized by a Member or non-Member 

to connect to the Exchange at the data 

centers where the Exchange’s servers are 

located. The Exchange currently 

assesses the following physical 

connectivity fees for Members and nonMembers on a monthly basis: $2,500 per 

physical port for a 1 gigabit (‘‘Gb’’) 

circuit and $7,500 per physical port for 

a 10 Gb circuit. The Exchange proposes 

to increase the monthly fee for 10 Gb 

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

port. The Exchange notes the proposed 

fee change better enables it to continue 

to maintain and improve its market 

technology and services and also notes 

that the proposed fee amount, even as 

amended, continues to be in line with, 

or even lower than, amounts assessed by 

other exchanges for similar 

connections.4 The Exchange also notes 

that a single 10 Gb physical port can be 

used to access the Systems of the 

following affiliate exchanges: the Cboe 

BYX Exchange, Inc., Cboe BZX 

Exchange, Inc. (options and equities 

platforms), Cboe EDGA Exchange, Inc., 

and Cboe C2 Exchange, Inc., (‘‘Affiliate 

Exchanges’’).5 Notably, only one 

monthly fee currently (and will 

continue) to apply per 10 Gb physical 

port regardless of how many affiliated 

exchanges are accessed through that one 

port.6


ddrumheller on DSK120RN23PROD with NOTICES1