Federal Register / Vol. 87, No. 90 / Tuesday, May 10, 2022 / Notices 28061 

69 17 CFR 200.30–3(a)(12) and (57). 

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

2 17 CFR 240.19b–4. 

3 RTH for transactions in equity options 

(including options on individual stocks, ETFs, 

ETNs, and other securities) are the normal business 

days and hours set forth in the rules of the primary 

market currently trading the securities underlying 

the options, except for options on ETFs, ETNs, 

Index Portfolio Shares, Index Portfolio Receipts, 

and Trust Issued Receipts the Exchange designates 

to remain open for trading beyond 4:00 p.m. Eastern 

Time (ET) but in no case later than 4:15 p.m. ET. 

RTH for transactions in index options are from 9:30 

a.m. to 4:15 p.m. ET, subject to certain exceptions. 

4 The GTH session currently begins at 8:15 p.m. 

(previous day) and goes until 9:15 a.m. ET on 

Monday through Friday. 

5 See Cboe Options Fees Schedule, Rate Table— 

Underlying Symbol List A (including all 

surcharges), Electronic Trading Permit Fees, Trade 

Processing Services fee and Regulatory Fees. 

6 See Cboe Options Fees Schedule, SPX/SPXW 

and SPESG Liquidity Provider Sliding Scale, Cboe 

Options Clearing Trading Permit Holder Proprietary 

Products Sliding Scale, Cboe Options Clearing 

Trading Permit Holder VIX Sliding Scale, Select 

Customer Options Reduction (‘‘SCORe’’) Program, 

Customer Large Trade Discount, Large Trade 

Discount, Trading Permit Holder Transaction Fee 

Policies and Rebate Programs, and Frequent Trader 

Program. 

7 Only applicable RTH fees, surcharges and 

programs will apply during Curb. For example, 

since Curb will operate as an all-electronic trading 

session, no floor related fees such as floor brokerage 

fees will apply during Curb. 

8 The Exchange notes that although its rulebook 

references time in Eastern Time, its Fees Schedule 

uses Central Standard Time (‘‘CST’’). 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

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

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File No. 

SR–NYSEArca–2021–90 and should be 

submitted on or before May 31, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.69

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–09957 Filed 5–9–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94848; File No. SR–CBOE– 

2022–022] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Update Its Fees 

Schedule in Connection With the 

Launch of the Curb Trading Hours 

Session 

May 4, 2022. 

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 April 25, 

2022, Cboe Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe Options’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

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

or ‘‘Cboe Options’’) proposes to update 

its Fees Schedule in connection with 

the launch of the Curb Trading Hours 

Session. 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://www.cboe.com/ 

AboutCBOE/CBOELegal

RegulatoryHome.aspx), 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Fees Schedule in connection with its 

plans to launch the Curb Trading Hours 

(‘‘Curb’’) session, effective April 25, 

2022. 

By way of background, the Exchange 

currently offers two trading sessions, the 

Regular Trading Hours session 

(‘‘RTH’’) 3 and the Global Trading Hours 

session (‘‘GTH’’).4 Beginning Monday, 

April 25, 2022, the Exchange will 

operate an additional trading session 

following RTH called the ‘‘Curb Trading 

Hours’’ or ‘‘Curb’’ session. The Curb 

session will provide an extra forty-fiveminute electronic only session for 

trading between 4:15 p.m. and 5:00 p.m. 

ET for designated classes, which will be 

added Monday through Friday. 

Currently, only SPX (including SPXW) 

and VIX options will be available for 

trading on the Exchange during the Curb 

session. FLEX Options with the same 

underlying index will also be deemed 

eligible for trading during the Curb 

session. Transactions effected during 

the Curb session will have the same 

trade date as the immediately preceding 

RTH session (i.e., the day on which the 

transactions were effected), whereas 

transactions effected during a GTH 

session have a different trade date than 

the immediately preceding RTH session 

(i.e., the trading day following the RTH 

session that immediately preceded it). 

In connection with the launch of the 

Curb session, the Exchange proposes to 

update its Fees Schedule to reflect and 

incorporate references to the Curb 

session and make clear which fees, 

surcharges and programs also apply 

during Curb. Specifically, the fees 

(including surcharges) 5 and programs 6

applicable during RTH for SPX, SPXW 

and VIX will apply in the same manner 

during Curb. To make clear that such 

fees, surcharges and programs also 

apply during Curb, the Exchange 

proposes to adopt and append Footnote 

42 to all applicable fees, surcharges and 

programs.7 Footnote 42 would also 

make clear that Curb is a separate 

trading session from RTH and GTH for 

VIX, SPX and SPW and commences at 

3:15PM CST and terminates at 4:00PM 

CST,8 and is conducted on an allelectronic trading model with no open 

outcry capability. 

The Exchange also proposes to update 

the notes sections of certain tables in the 

Fees Schedule to incorporate references 

to the Curb session. First, the Exchange 


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28062 Federal Register / Vol. 87, No. 90 / Tuesday, May 10, 2022 / Notices 

9 15 U.S.C. 78f. 

10 15 U.S.C. 78f(b)(4). 

11 15 U.S.C. 78f.(b)(5). 

proposes to make clear in the tables of 

the Clearing Trading Permit Holder 

Proprietary Products Sliding Scale and 

Clearing Trading Permit Holder VIX 

Sliding Scale that volume in Curb, in 

addition to GTH and RTH, will all be 

aggregated for purposes of calculating 

the volume thresholds. The Exchange 

also proposes to add a reference to the 

Curb session in the Frequent Trader 

Program making clear that Customers 

can obtain unique Frequent Trader IDs 

which can be appended by executing 

agents to orders submitted to the 

Exchange during Curb, in addition to 

RTH and GTH. The Exchange lastly 

proposes to update the notes section of 

the Electronic Trading Permit Fees table 

to make clear that Market-Maker 

Electronic Access Permits, Electronic 

Access Permits, and Clearing TPH 

Permits all entitle the holder to access 

the Exchange in the respective capacity 

during Curb, in addition to RTH and 

GTH. 

The Exchange also proposes to make 

clarifying updates to the Fees Schedule 

as it relates to fees assessed during GTH. 

First, the Exchange proposes to update 

Footnote 37 of the Fees Schedule, which 

currently provides that GTH is a 

separate trading session from RTH for 

VIX, SPX and SPW and also that GTH 

commences at 7:15 p.m. CST and 

terminates at 8:15AM CST and is 

conducted on an all-electronic trading 

model with no open outcry capability. 

Specifically, the Exchange proposes to 

update Footnote 37 to clarify that GTH 

is a separate trading session from both 

RTH and Curb trading sessions. The 

Exchange also proposes to modify the 

way Footnote 37 is appended to various 

fees, surcharges and programs. 

Currently anywhere that Footnote 37 is 

appended, the Exchange also states 

‘‘(Also applies to GTH)’’ immediately 

preceding the appended Footnote 37 

reference. The Exchange proposes to 

eliminate this language in order to 

streamline the Fees Schedule and make 

it easier to read. The Exchange does not 

believe this language is necessary or 

needed to understand when a fee, 

surcharge or program applies during 

GTH since the Exchange will still 

maintain all appended references to 

Footnote 37 itself. However, to alleviate 

any potential confusion, the Exchange 

also proposes to add the language 

‘‘[a]pplies during Global Trading Hours 

(‘‘GTH’’)’’ to the Footnote 37 

Description. 

The Exchange next proposes to 

append Footnote 37 to the SPX/SPXW 

and SPESG Liquidity Provider Sliding 

Scale, SCORe Program, and Frequent 

Trader Program tables as it was 

inadvertently not added to the headers 

of those tables previously, 

notwithstanding its application during 

GTH as well as RTH. Lastly, the 

Exchange proposes to update the header 

relating to AIM Agency/Primary and 

AIM Contra fees included in the Rate 

Table—Underlying Symbol List A. 

Particularly, the header currently 

provides that such fees apply to ‘‘VIX 

Only’’ and in ‘‘SPX (incl[uding] SPXW 

in GTH Only’’. The Exchange notes that 

previously AIM was only activated for 

SPX and SPXW during GTH (and not 

RTH). The Exchange notes however, 

that currently SPX and SPXW are 

currently eligible to participate in AIM 

during either session, and will also be 

eligible to participate in AIM during 

Curb. As such, the Exchange proposes to 

eliminate this reference and provide 

instead that the rates (which currently 

are the same as non-AIM rates) apply to 

VIX and SPX (including SPXW), as well 

as append Footnotes 37 and 42 to clarify 

the applicability to each trading session. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,9

in general, and furthers the objectives of 

Section 6(b)(4),10 in particular, as it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its Members and 

issuers and other persons using its 

facilities. The Exchange also believes 

that the proposed rule change is 

consistent with the objectives of Section 

6(b)(5) 11 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, and, 

particularly, is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

First, the Exchange believes that the 

proposed rule change is reasonable, 

equitable and not unfairly 

discriminatory because all applicable 

fees, surcharges and programs that 

apply to SPX, SPWX and VIX during 

RTH will also apply during Curb, which 

although is a separate trading session 

from RTH, merely provides an 

additional 45 minutes of trading in 

these products during which 

transactions effected will have the same 

trade date as the immediately preceding 

RTH session. The Exchange believes 

proposed Footnote 42 will add clarity 

and transparency to the Fees Schedule 

by providing details around the Curb 

session as well as making clear that the 

fees, surcharges, and programs listed in 

the Fees Schedule apply to Curb just as 

they apply to RTH. The proposed 

updates related to Footnote 37 are also 

meant to streamline the Fees Schedule, 

make it easier to read and alleviate 

potential confusion as to the 

applicability of certain fees and 

programs. 

The Exchange believes that the 

proposed rule change is equitable and 

not unfairly discriminatory because 

current fees, surcharges and programs 

currently applicable during RTH for 

SPX, SPXW and VIX will apply in the 

same manner during Curb. Also, the fee 

amounts for each separate type of 

market participant will continue to be 

assessed equally for each product to all 

such market participants (i.e. all BrokerDealer orders will be assessed the same 

amount, all Joint Back-Office orders will 

be assessed the same amount, etc.). The 

Exchange lastly notes that the newly 

adopted Curb session will apply equally 

to all market participants, in that, all 

market participants may choose to trade 

during Curb. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange believes the proposed 

amendments to its Fee Schedule will 

not impose any burden on competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act. 

The Exchange does not believe that the 

proposed rule change will impose any 

burden on intramarket competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the proposed changes apply 

uniformly to all market participants that 

choose to participate in the new Curb 

session. As discussed, all fees, 

surcharges and programs applicable 

during RTH will also apply in the same 

manner during the Curb session. 

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. Additionally, 

the Exchange notes it operates in a 

highly competitive market. In addition 

to Cboe Options, TPHs have numerous 

alternative venues that they may 


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Federal Register / Vol. 87, No. 90 / Tuesday, May 10, 2022 / Notices 28063 

12 See Cboe Global Markets, U.S. Options Market 

Volume Summary by Month (April 21, 2022), 

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

market_share/. 

13 See Securities Exchange Act Release No. 51808 

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

14 NetCoalition v. SEC, 615 F.3d 525, 539 (DC Cir. 

2010) (quoting Securities Exchange Act Release No. 

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

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

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

16 17 CFR 240.19b–4(f). 17 17 CFR 200.30–3(a)(12). 

participate on and direct their order 

flow, including 15 other options 

exchanges, as well as off-exchange 

venues, where competitive products are 

available for trading. Based on publicly 

available information, no single options 

exchange has more than 16% of the 

market share of executed volume of 

options trades.12 Therefore, no exchange 

possesses significant pricing power in 

the execution of option order flow. 

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.’’ 13 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’. . ..’’.14 Accordingly, the 

Exchange does not believe its proposed 

changes to the incentive programs 

impose 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 has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any written 

comments from members or other 

interested parties. 

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 15 and paragraph (f) of Rule 

19b–4 16 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2022–022 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–2022–022. 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 (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

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

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–CBOE–2022–022 and 

should be submitted on or before May 

31, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–09959 Filed 5–9–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–247, OMB Control No. 

3235–0259] 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Extension: 

Rule 19h–1 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.) the 

Securities and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 

Rule 19h–1 (17 CFR 240.19h–1), under 

the Securities Exchange Act of 1934 (15 

U.S.C. 78a et seq.). 

Rule 19h–1 prescribes the form and 

content of notices and applications by 

self-regulatory organizations (‘‘SROs’’) 

regarding proposed admissions to, or 

continuances in, membership, 

participation or association with a 

member of any person subject to a 

statutory disqualification. 


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