[Federal Register Volume 87, Number 125 (Thursday, June 30, 2022)]
[Notices]
[Pages 39145-39153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13943]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95155; File No. SR-CBOE-2022-029]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Its Facility Fees Section in the Fees Schedule in Connection With the 
Exchange's New Trading Floor

June 24, 2022.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that on June 10, 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 
and II below, which Items have been prepared by Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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 amend its Facility Fees section in the Fees Schedule in connection 
with the Exchange's new trading floor. 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/CBOELegalRegulatoryHome.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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its Fees Schedule in connection with 
the opening of a new trading floor. Currently, the Exchange conducts 
open outcry trading at 400 S. LaSalle, Chicago, Illinois. On or about 
June 6, 2022, the Exchange intends to move its open outcry trading 
operations to a new trading floor located at 141 W Jackson Blvd., 
Chicago, Illinois. As a result of this transition, certain 
infrastructure and technology on the current trading floor will be 
rendered obsolete and the new trading floor will have new 
infrastructure and offer new technology. Accordingly, the Exchange 
proposes to adopt new, and/or update current, facility fees with 
respect to the new trading floor, as well as eliminate obsolete 
facility fees that are only applicable to the Exchange's current 
facility and trading floor which will no longer be in use as of June 6, 
2022.\4\
---------------------------------------------------------------------------

    \4\ The Exchange initially filed the proposed fee changes on 
June 1, 2022 (SR-CBOE-2022-026). On June 10, 2022, the Exchange 
withdrew that filing and submitted this filing.
---------------------------------------------------------------------------

Booth Fees
    The Exchange currently assesses monthly fees for ``standard 
Booths'', which refers to a portion of designated space on the trading 
floor of the Exchange adjacent to or in particular trading crowds, 
which may be occupied by a Trading Permit Holder (``TPH''), clerks, 
runners, or other support staff for operational and other business-
related activities. The Exchange assesses a monthly fee of $195 for 
standard Booths located along the perimeter of the trading floor, and 
$550 for standard Booths located in the OEX, Dow Jones, MNX and VIX 
trading crowds. The Exchange also assesses monthly fees for 
``nonstandard Booths'', which refers to space on the trading floor of 
the Exchange that is set off from a trading crowd, which may be rented 
by a TPH for whatever support, office, back-office, or any other 
business-related activities for which the TPH may choose to use the 
space. A TPH that rents non-standard booth space on the floor of the 
Exchange is subject to a base non-standard booth rental fee of $1,250 
per month in addition to a square footage fee of $1.70 per square foot 
per month based on the size of the TPH's non-standard booth. The 
Exchange proposes to modify and simplify its fees assessed for booth 
rentals. First, the Exchange proposes to eliminate the distinction 
between standard and non-standard Booths. The Exchange also proposes to 
adopt a tiered pricing schedule for Booths based on the number of 
Booths rented by a TPH. Particularly, the Exchange proposes to adopt 
the following fees for Booths that are set off from a trading crowd:

 
------------------------------------------------------------------------
                   Quantity of booths                       Monthly fee
------------------------------------------------------------------------
1-2.....................................................            $400
3-6.....................................................            $300
7-10....................................................            $200
11 or more..............................................            $100
------------------------------------------------------------------------

    The proposed tiered pricing provides discounted pricing for 
additional Booths. For example, if a TPH rented 4 Booths, the TPH would 
be assessed $1,400 a month (2 Booths at $400 and 2 Booths at $300). The 
Exchange also proposes to adopt a monthly fee of $750 per booth for any 
booth located in a trading crowd. The Booth Pass-Through Fee would 
remain unchanged.\5\ The Exchange notes that use of Booths, whether or 
located away from or in a trading crowd are optional and not necessary 
in order to conduct open outcry trading on the trading floor. Booth 
spaces are also uniform and nearly identical in size. The Exchange also 
notes that at this time, the Exchange has ample space on its new 
trading floor for booth space.
---------------------------------------------------------------------------

    \5\ Pursuant to the Booth Pass-Through Fee, TPHs bear 
responsibility for all costs associated with any modifications and 
alterations to any trading floor Booths leased by the TPH (or TPH 
organization) and must reimburse the Exchange for all costs incurred 
in connection therewith.
---------------------------------------------------------------------------

Policy
    The Exchange also proposes to update the Exchange's policy 
(``Policy'') regarding the rental and use of booth space on its trading 
floor by TPH organizations. The Exchange memorialized the Policy and 
filed it with the Commission in 1994.\6\ The Exchange proposes to 
update the Policy in a few respects. First, the Exchange proposes to 
change references to ``Chicago Board Options Exchange, Incorporated'' 
and ``CBOE'' to ``Cboe

[[Page 39146]]

Exchange, Inc.,'' and ``Cboe Options'', respectively to reflect the 
Exchange's current legal name which has been updated since the last 
update to the Policy. The Exchange also proposes to update the rule 
reference relating to the Appeals process from Chapter ``19'' to 
Chapter ``15'' to reflect recent updates to the Exchange's rulebook.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 33972 (April 28, 
1994), 59 FR 23242 (May 5, 1994).
---------------------------------------------------------------------------

    The Exchange notes the Policy includes a section that sets forth 
the requirement that all TPH organizations renting Booths execute a 
``Trading Floor Booth Rental Agreement'' (hereinafter, ``Agreement'') 
which sets forth the contractual terms, conditions and restrictions 
governing rental and use of Booths by TPH organizations.\7\ A copy of 
the Agreement was included in the Exchange's 1994 rule filing noted 
above for the Commission's information.\8\ The Agreement specifically 
sets forth the details of the parties' contractual relationship 
regarding rental and use of the Booths. Among other provisions, the 
Agreement includes specific provisions delineating the termination 
rights of both the TPH organization and the Exchange and sets forth a 
procedure for adding Booths to and deleting Booths from the Agreement. 
The Agreement also spells out requirements respecting the TPH's use of 
the Booths, such as those governing the installation of equipment, the 
conduct of business, and access of persons to the Booths.
---------------------------------------------------------------------------

    \7\ The Agreement is non-negotiable and its terms are the same 
for every TPH organization.
    \8\ See Securities Exchange Act Release No. 33972 (April 28, 
1994), 59 FR 23242 (May 5, 1994).
---------------------------------------------------------------------------

    The Exchange has updated the Agreement (which is now referred to as 
the Agreement for ``standard Booths''). In 2012, the Exchange also 
created a separate form of the Agreement for non-standard Booths.\9\ In 
connection with the proposal to eliminate non-standard Booths, the 
Exchange proposes to eliminate use of that agreement. A copy of the 
standard form of Agreement is included with this filing in Exhibit 3. 
The Exchange proposes to update this section of the Policy to eliminate 
references to the non-standard booth agreement. The Exchange also 
proposes to update the Agreement to (i) change references to ``Chicago 
Board Options Exchange, Incorporated'' and ``CBOE'' to ``Cboe Exchange, 
Inc.,'' and ``Cboe Options'', respectively; (ii) update the link to 
where the Cboe Options Fees Schedule can be found; (iii) eliminate the 
requirement for Cboe to provide TPH organizations with a copy of TPH 
Organization's current booth assignments, as it no longer believes such 
record is necessary or desired by TPHs; and (iv) eliminate Section 13, 
which prohibits TPH Organizations leasing SPX arbitrage Booths from 
installing data equipment in such Booths, as the Exchange does not 
intend to provide such Booths and to the extent it determines to do so 
in the future does not anticipate maintaining such prohibition. The 
Exchange will disseminate the updated Policy and forms of the Agreement 
to Trading Permit Holders by posting them on the Trading Permit Holder 
portion of the Cboe website.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 66727 (April 9, 
2012), 77 FR 21134 (April 3, 2012) (SR-CBOE-2012-025).
---------------------------------------------------------------------------

Line to Cboe Floor Network
    On the current trading floor, TPHs use various lines and 
telecommunications (``telco'') circuits to connect to the trading 
floor. Independent wiring must be used for each line or telco circuit, 
which means firms may need to relocate their lines or telco circuits if 
they move into, or relocate to, a new trading space or Booth. These 
telco circuits are also on a per device basis. The new trading floor 
will utilize a single floor network (i.e., ``Cboe Floor Network'') for 
TPHs' devices consisting of both wired jacks and wireless network 
access located at kiosks, in trading pits, and in Booths throughout the 
new trading floor. As such, unlike the current trading floor 
infrastructure, TPHs will not need to order lines from the Exchange to 
specific locations on the floor. Rather, a TPH only needs to order one 
Ethernet port (``Line'') (or a pair for redundancy) to connect to the 
Cboe Floor Network and will be able to connect their devices to the 
Exchange's network anywhere on the trading floor through wired jack 
ports or the wireless network. Additionally, firms will no longer need 
to provide network equipment to support dedicated lines to the floor, 
as on the new trading floor the Exchange will be providing the network 
switches and local area network (LAN) lines for all firms.
    The Exchange believes the new trading floor will provide TPHs more 
flexibility to move and relocate as needed, as compared to the current 
trading floor. If a TPH wishes to relocate trading spaces or trading 
booths on the current trading floor, it could trigger installation, 
relocation and removal of various lines and circuits, which 
subsequently triggers various installation, relocation and removal 
fees.\10\ For example, on the current trading floor, if a Market-Maker 
were to move to a new trading space, it may need relocate the lines or 
circuits from its current space to the new space and would be subject 
to relocation fees such as $129 relocation fee to relocate any 
Exchangefones and $200 relocation fee for relocation of any Market-
Maker Handheld Terminal.\11\ As another example, if a TPH were to 
relocate to a new Booth, they may be subject to relocation fees of $625 
for relocating lines from the trading floor to local carriers or the 
Communications Center.\12\ Since all network access will be wireless or 
plug and play at any location on the new trading floor, the new 
infrastructure eliminates the need for installation of multiple lines, 
as well as relocation and removal of connectivity lines to devices and 
also renders the following Lines fees (including fees relating to 
installation, relocation and removal) obsolete: Intra-Floor, Voice 
Circuits, Appearances, Data Circuits at Local Carrier, and Data 
Circuits at In-House Frame. The Exchange therefore proposes to instead 
adopt a monthly fee of $350 per Line and notes it does not expect TPHs 
to purchase more than one Line and one redundant Line. The Exchange 
also proposes to adopt a one-time $500 installation fee for the 
installation of the line to the Cboe Floor Network. The proposed $500 
installation fee would include installation of a redundant line at no 
additional cost and allows the Exchange to recoup the costs it incurs 
from third-party vendors for the installation of the Lines.
---------------------------------------------------------------------------

    \10\ See Cboe Options Fees Schedule, Lines Table.
    \11\ See Cboe Options Fees Schedule, Communications Table, 
Exchangefone and Miscellaneous Table, Market-Maker Handheld Terminal 
Tethering Services.
    \12\ See Cboe Options Fees Schedule, Lines Table, Lines Direct 
from Local Carrier to Trading Floor and Lines Between Communication 
Center and Trading Floor.
---------------------------------------------------------------------------

Co-Location and Meet-Me-Room
    For a monthly fee, the Exchange currently provides TPHs (and third-
party vendors, collectively ``firms'') with cabinet space in its 
building for placement of network and server hardware. Particularly, 
TPHs are charged a monthly fee of $50 per ``U'' of shelf space \13\ and 
Sponsored Users \14\ are assessed a monthly fee of $100 per ``U''. Fees 
are charged in increments of 4 ``U'' (i.e., a minimum of $200 per 4 
``U'' is charged or, for Sponsored Users, a minimum of $400 per 4 ``U'' 
is charged). A firm also receives power, cooling, security and 
assistance with installation and connection of the

[[Page 39147]]

equipment to the Exchange's servers, at no additional charge.
---------------------------------------------------------------------------

    \13\ The term ``U'' is used to indicate an equipment unit 1.75'' 
high with a maximum power of 125 watts per U space. Per the Fees 
Schedule, Co-Location fees are charged in increments of 4 ``U'' (7 
inches).
    \14\ See Cboe Options Rule 3.60.
---------------------------------------------------------------------------

    The Exchange will continue to provide firms cabinet space in the 
new facility (``Meet-me-Room'') for placement of network and server 
hardware at the same rate of $50 per ``U'', billed in increments of 4 
``U''. The Exchange proposes however to eliminate the separate rate for 
Co-Location of Equipment Fee for Sponsored Users, as the Exchange does 
not currently have any Sponsored Users, nor has it had any Sponsored 
users in several years. As such, the Exchange no longer believes its 
necessary to maintain a separate rate for Sponsored Users.\15\ The 
Exchange also proposes to relocate the ``Co-Location'' section in the 
Fees Schedule to immediately follow the ``Lines'' section in the Fees 
Schedule, as it believes such fees are more appropriately grouped 
together and will make the Fees Schedule easier to read and follow. The 
Exchange also believes it will make the Fees Schedule easier to read 
and follow if it reflects the rate of the minimum increment charged, 
instead of a broken-out rate that can never be assessed. As noted 
above, the Fees Schedule currently sets forth the monthly rate per 
``U'' (i.e., ``$50 per ``U''), even though it states it only charges in 
increments of 4 ``U'' (i.e., fee is really $200 per 4 ``U''). The 
Exchange will continue to charge in increments of 4 ``U'' in the new 
facility and therefore proposes to update the fee language in the 
relocated line item to reflect the rate for the minimum increment of 4 
``U''. Despite this language change, the Exchange reiterates it is not 
changing the amount assessed for the Co-Location of Equipment Fee. 
Within the new Meet-me-Room however, the Exchange is proposing to limit 
firms to 8 ``U'' in order to ensure all firms can be accommodated in 
the Meet-me-Room.
---------------------------------------------------------------------------

    \15\ To the extent the Exchange has Sponsored Users in the 
future, such participants will be assessed the same rate as all 
other firms (i.e., $50 per ``U'', billed in minimum increments of 4 
``U'').
---------------------------------------------------------------------------

    The Exchange next proposes to adopt monthly and installation fees 
for cross connects, including telecommunication (i.e., telco) and Cboe 
Floor Network cross connects,\16\ within the Meet-Me-Room. 
Particularly, each cross connect will be subject to a $25 per month per 
cross connect fee. Additionally, firms will be subject to a one-time 
$500 installation fee for each cross connection. The Exchange notes 
that currently it assesses third-party vendors a $50 per month fee for 
``Data Circuits from Local Carrier to Equipment Shelf'' which offers 
similar cross-connectivity from Local Carriers (telco providers) to a 
firm's equipment shelf in the current meet-me-room. The Exchange no 
longer will use data circuits from Local Carriers to equipment on the 
shelf and proposes to therefore eliminate this fee (currently under the 
Vendor Services section) from the Fee Schedule.
---------------------------------------------------------------------------

    \16\ The Exchange offers fiber cross connect. The cross connects 
may run between a firm's hardware to a third-party 
telecommunications service or the Cboe Floor Network switches that 
will service the trading floor.
---------------------------------------------------------------------------

    The Exchange next proposes to adopt a fee relating to accessing the 
Meet-me-Room. Particularly, in order for a firm to access the Meet-me-
Room (e.g., if they need technical support), they must request access. 
The Exchange notes that because the Meet-me-Room now resides in a 
facility not owned by the Exchange, the Exchange is assessed a fee by a 
third-party for providing firms access to the Meet-me-Room. The 
Exchange therefore proposes to adopt a fee to recoup fees it is billed 
for providing this access (``Cboe Datacenter Services''). Specifically, 
the Exchange proposes to assess a fee of $100 per half-hour (with a 1 
hour minimum required). The Exchange also proposes to waive this fee 
for the month of June 2022. Particularly, the Exchange understands that 
firms may have a greater need during the first month of operations on 
the new trading floor to visit the Meet-me-Room. The proposed waiver 
therefore allows firms to respond to any potential issues that may 
arise in the Meet-me-Room during the first month at no additional cost. 
The Exchange anticipates that firm requests for this type of access 
will be infrequent thereafter. The Exchange also notes that it 
similarly assesses fees for various third-party technical support or 
vendor services on the current trading floor.\17\ However, these 
services will no longer be available in the new facility and the 
Exchange therefore proposes to eliminate the following corresponding 
fees: Technical Support Outside Normal Hours, IPC (vendor) Time & 
Material, IPC (vendor) Time & Material Overtime, After Hours Technician 
Service, Market-Maker Handheld Tethering Services, and Market-Maker 
Handheld Tethering Services For Indexes.
---------------------------------------------------------------------------

    \17\ See Cboe Options Fees Schedule, Vendor Services, Technical 
Support Outside Normal Hours, and Miscellaneous, IPC (vendor) Time & 
Material, IPC (vendor) Time & Material Overtime, After Hours 
Technician Service, Market-Maker Handheld Tethering Services, and 
Market-Maker Handheld Tethering Services For Indexes.
---------------------------------------------------------------------------

Trading Floor Device Fees
    The Exchange currently lists various fees under the Trading Floor 
Terminal Rentals section of the Facility Fees table.\18\ For example, 
TPHs are currently assessed $125 per month for ``PAR Workstations'' to 
help offset hardware costs incurred by the Exchange in making PAR 
workstations available to TPHs. A PAR (Public Automated Routing System) 
Workstation is an Exchange-provided order management tool for use on 
the Exchange's trading floor by TPHs and PAR Officials to manually 
handle orders pursuant to the Rules and facilitate open outcry trading. 
Access to PAR is only available on Exchange-provided tablets (currently 
Surface Tablets) and the current monthly fee covers both the Exchange-
provided tablet and PAR access. In connection with the transition to 
the new trading floor, the Exchange proposes to modify the way it 
assesses fees for use of PAR \19\ and also adopt fees for non-Exchange 
provided tablets that connect to the Exchange's network. Particularly, 
the Exchange proposes to adopt a separate monthly Exchange Tablet fee 
of $140 for any tablet provided by the Exchange and a separate monthly 
fee of $45 to access PAR. TPHs will continue to utilize PAR on the new 
trading floor, which will continue to only be available on Exchange-
provided tablets. Exchange tablets used for PAR may also be used for 
access to Silexx.\20\
---------------------------------------------------------------------------

    \18\ The Exchange proposes to rename this section ``Trading 
Floor Device Fees''.
    \19\ The Exchange proposes to replace the reference to ``PAR 
Workstation'' to ``PAR Access''. Particularly, the current version 
of PAR is no longer a physical touch screen terminal (i.e., 
workstation) but an order management tool that can be accessed on a 
tablet such as a Surface.
    \20\ Silexx is a User-optional order entry and management 
trading platform. The Silexx platform consists of a ``front-end'' 
order entry and management trading platform (also referred to as the 
``Silexx terminal'') for listed stocks and options that supports 
both simple and complex orders, and a ``back-end'' platform which 
provides a connection to the infrastructure network. The Silexx 
front-end and back-end platforms are a software application that is 
installed locally on a user's laptop.
---------------------------------------------------------------------------

    The Exchange also proposes to adopt a separate Exchange Tablet fee 
as TPHs will have the option of using Exchange-provided tablets for 
Cloud9, which is the new telecommunication system that will be offered 
by the Exchange on the new trading floor.\21\ The Exchange notes that 
TPHs have the option of using their own tablet to access Cloud9 in lieu 
of using an Exchange-provided tablet. Such tablets would be subject to 
the

[[Page 39148]]

``TPH-Owned Device Authentication Fee'' described more fully below.
---------------------------------------------------------------------------

    \21\ Cloud9 is the voice communication solution for the new 
trading floor. Cloud9 is a VoIP cloud-based service offering a 
traditional turret, the Cloud Hub. The Cloud Hub will be provided by 
Cboe and will need to connect to a laptop or device provided either 
by the TPH or by Cboe. TPHs may not use the same Exchange Tablet for 
both PAR and Cloud9.
---------------------------------------------------------------------------

    On the new trading floor TPHs will be able to use a variety of 
devices such as tablets, laptops, Market-Maker handheld devices, 
printers, and phone systems. TPHs will be able to connect these devices 
to the Exchange's network anywhere on the trading floor through wired 
jack ports or the wireless network on the trading floor, as long as 
they are onboarded to the Cboe Network Authentication System. The 
Exchange proposes to assess a fee for TPH-owned devices that connect to 
the Exchange's network on the new trading floor (``TPH-Owned Device 
Authentication Fee''). Particularly, the Exchange proposes to assess a 
fee of $100 per authenticated connection (i.e., when a device connects 
to the wired jack and/or wireless network on the trading floor).\22\ 
The proposed fee will be based on the maximum number of concurrent 
authenticated connections made during market hours during the calendar 
month. As discussed above, the Exchange believes the new trading floor 
provides TPHs more flexibility to move and relocate any of their 
devices by eliminating the need for installation, relocation and 
removal of connectivity lines to devices. Consequently, corresponding 
monthly, installation, relocation and removal fees will also be 
eliminated on the new trading floor.
---------------------------------------------------------------------------

    \22\ For example, a TPH that connects to Cloud9 using its own 
laptop would be assessed $100 per month for that connection. If that 
same TPH chooses to connect an additional laptop and a printer to 
the network, that TPH will be assessed a total of $300 per month 
(i.e., $100 for each of the tablet used for Cloud9, the laptop and 
the printer).
---------------------------------------------------------------------------

Replacement Fees
    The Exchange currently assesses fees related for certain hardware 
that needs to be replaced because of loss or because of non-normal wear 
and tear. Particularly, the Exchange assesses the following replacement 
fees:

 
 
 
Replacement Tablet........................  $1,300 each.
Replacement Stylus Pen....................  $100 each.
Replacement Chargers......................  $75 each.
Replacement Adapters and Protective Cases.  $50 each
 

    The Exchange proposes to maintain these replacement fees on the new 
trading floor. However, the Exchange proposes to increase the fee to 
replace a table from $1,300 per tablet to $1,400 per tablet to reflect 
increased costs to the Exchange. The Exchange also proposes to adopt a 
new replacement fee for lost Access Badges at the rate of $100 per 
badge in order to encourage TPHs to hold onto their badges and not 
misplace them.
Obsolete Fees
    The Exchange next proposes to eliminate fees assessed for 
technology and infrastructure and related services that will be 
rendered obsolete upon the transition to the new trading floor. 
Particularly, the Exchange proposes to eliminate the following fees 
that have not otherwise been discussed above:

------------------------------------------------------------------------
              Description                              Fee
------------------------------------------------------------------------
Arbitrage Phone Positions.............  $550/month.
HP Laser Printer Paper................  $5.00 per packet of 500 sheets.
Zebra Printer Papers..................  $19.50 per roll.
Zebra Printer Ink.....................  $19.50 per roll.
Forms Storage.........................  $11.
Exchangefone..........................  $935/installation; $129/
                                         relocation; $100/removal.
Exchangefone--Maintenance.............  $57/month.
Exchangefone--With Recorded Coupler     $126/relocation.
 Between Booths.
Exchangefone--Within Booth............  $25/relocation.
Single Line--Maintenance..............  $11.50/month
Phone Rentals--Monthly Fee............  $110/month.
Phone Rentals--Replacement Repairs....  cost.
Lines--Intra Floor....................  $57.75/per month.
Lines--Voice Circuits.................  $16/month; $52.50/installation;
                                         $36.75/removal.
New Circuits--First...................  $120/installation; $50/removal.
New Circuits--@Additional.............  $18/installation; $18/removal.
Existing Line Appearance--First.......  $50/installation; $25/removal.
Existing Line Appearance--A Additional  $18/installation: $18/removal.
Data Circuits (DC) at Local Carrier     $16/month; $52.50/installation;
 (entrance).                             $36.75 removal.
DC @In-House Frame--Lines between       $12.75/month; $550/installation.
 Local Carrier and Comms Center.
DC @In-House Frame- Lines Between       $12.75/month; $725/installation;
 Comms Center and Trading Floor.         $625/relocation.
DC @In-House Frame--Lines Direct from   $12.75/month; $725/installation;
 Local Carrier to Trading Floor.         $625/relocation
Shelf for Equipment...................  $100/month.
Lines from Equipment to Floor.........  $50/month.
Handsets..............................  $79/installation.
Headset Jack..........................  $131/installation; $58
                                         relocation; $28/removal.
Recorder Coupler......................  $150 new/$50 existing
                                         installation; $25/relocation;
                                         $25/removal.
Thomson/Other (Basic Service).........  $425/month.
Satellite TV..........................  $50/month.
Cboe Options Trading Floor Terminal...  $250/month; $175/installation;
                                         $225 relocation; $125/removal.
Trading Floor Printer Maintenance \23\  $75/month.
------------------------------------------------------------------------

    The Exchange also proposes to eliminate all PULSe Workstation fees 
as PULSe was decommissioned in January 2021, but the Exchange 
inadvertently did not delete references to PULSe-related fees at that 
time.
---------------------------------------------------------------------------

    \23\ The Exchange proposes to eliminate a corresponding 
reference in Footnote [sic] 40 to Trading Floor Printer Maintenance 
in light of the proposal to eliminate this fee.
---------------------------------------------------------------------------

Temporary Fees
    In June 2020, the Exchange adopted Footnote 24 of the Fees Schedule 
to govern pricing changes that would apply for the duration of time the 
Exchange trading floor was being operated in a modified manner in 
connection with the COVID-19 pandemic. By way of background, the 
Exchange closed its trading floor on March 16, 2020 due to the COVID-19

[[Page 39149]]

pandemic and reopened its trading floor on June 15, 2020, but with a 
modified configuration of trading crowds in order to implement social 
distancing and other measures consistent with local and state health 
and safety guidelines to help protect the safety and welfare of 
individuals accessing the trading floor. As a result, the Exchange 
relocated and modified the physical area of certain trading crowds and 
also determined and reduced how many floor participants may access the 
trading floor. In connection with these changes, the Exchange proposed 
a number of modified billing changes that would remain in place for the 
duration of the time the Exchange operated in a modified manner. 
Particularly, the following fees are modified when the Exchange is 
operating in a modified state due to the COVID-19 pandemic:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Trading Permits...............  Floor trading permit fees are not be
                                 assessed on the total number of floor
                                 trading permits a TPH organization
                                 holds, and instead are based on the
                                 floor trading permits used by nominees
                                 of the TPH each day during the month
                                 using the following formula: (i) the
                                 number of floor trading permits that
                                 have a nominee assigned to it in the
                                 Customer Web Portal system (``Portal'')
                                 in a given month, multiplied by the
                                 number of trading days that the floor
                                 is open and that a nominee is assigned
                                 to each respective trading permit in
                                 that month, divided by (ii) the total
                                 number of trading days in a month. The
                                 Exchange rounds up to determine the
                                 total number of trading permits
                                 assessed the fees set forth in the
                                 Floor Trading Permit Sliding Scales.
SPX Tier Appointment Fee......  The monthly fee for the SPX/SPXW Floor
                                 Market-Maker Tier Appointment Fee will
                                 be increased to $5,000 per Trading
                                 Permit from $3,000 per Trading Permit.
Inactive Nominee Status         $300 Parking Space Fees is not applied.
 (Parking Space).
Inactive Nominee Status Change  $100 Trading Permit Swap Fee is not
 (Trading Permit Swap).          applied.
SPX/SPXW and SPESG Floor        SPX/SPXW and SPESG Floor Brokerage Fees
 Brokerage Fees.                 are be assessed the rate of $0.05 per
                                 contract for non-crossed orders and
                                 $0.03 per contract for crossed order
                                 instead of $0.04 and $0.02,
                                 respectively.
Facility Fees.................  Monthly fees are waived for the
                                 following facilities fees: arbitrage
                                 phone positions and satellite tv. If a
                                 TPH is unable to utilize designated
                                 facility services while the trading
                                 floor is operating in a modified state,
                                 corresponding fees, including for
                                 standard and non-standard booth
                                 rentals, Exchangefone maintenance,
                                 single line maintenance, intra floor
                                 lines, voice circuits, data circuits at
                                 local carrier (entrance), and data
                                 circuits at in-house frame, are waived.
------------------------------------------------------------------------

    The Exchange notes that while the current floor still utilizes 
social distancing and reconfigured trading crowds (and therefore is 
considered to be operating in a modified manner), it does not believe 
it to be necessary to implement such safety measures on the new trading 
floor at the time of transition given recent developments relating to 
the COVID-19 pandemic. As such, upon moving to the new trading floor on 
June 6, 2022, the Exchange will no longer be operating in a modified 
manner and Footnote 24 would not apply. The Exchange notes that absent 
a proposed rule change however, the Exchange would have to apply 
certain billing modifications under Footnote 24 for the first three 
business days of the calendar month. The Exchange therefore proposes to 
provide in Footnote 24 that it will not apply between June 1, 2022 
through June 3, 2022 in order to provide seamless billing in the month 
of June 2022. Accordingly, effective June 1, 2022: (1) Floor Trading 
Permit fees will be assessed based on the total number of floor trading 
permits a TPH holds each month; (2) Parking Space and Trading Swap fees 
will no longer be waived; and (3) SPX/SPXW and SPESG Floor Brokerage 
fees will be assessed $0.04 per contract for non-crossed orders 
(instead of $0.05 per contract) and $0.02 per contract for crossed 
orders (instead of $0.03 per contract). As noted above, arbitrage phone 
positions, satellite tv, Exchangefone maintenance, single line 
maintenance, intra floor lines, voice circuits, data circuits at local 
carrier (entrance), and data circuits at in-house frame are being 
eliminated as of June 1, 2022 so the Exchange proposes to also 
eliminate references to such fees from Footnote 24. The Exchange also 
proposes to maintain the current modified rate of $5,000 for the SPX 
Floor Tier Appointment Fee under Footnote 24 (i.e., increase the fee 
from $3,000 per permit to $5,000 permit regardless of whether the 
Exchange is operating in a modified state due to COVID-19 pandemic). 
The Exchange notes that it has not amended the original Tier 
Appointment Fee since its inception almost twelve years ago in July 
2010.\24\
---------------------------------------------------------------------------

    \24\ See Securities Exchange Act Release No. 62386 (June 25, 
2010), 75 FR 38566 (July 2, 2010) (SR-CBOE-2010-060).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\25\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \26\ 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) \27\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78f(b).
    \26\ 15 U.S.C. 78f(b)(5).
    \27\ Id.
---------------------------------------------------------------------------

    As discussed above, the proposed changes are prompted by the 
Exchange's upcoming transition from its current trading floor, which it 
has occupied since the 1980s, to a brand new, modern and upgraded 
trading floor in a new facility. The Exchange believes the build out of 
a new modern trading floor is consistent with its commitment to open 
outcry trading and focus on providing the best possible trading 
experience for its customers. Indeed, the new trading floor provides a 
state-of-the-art

[[Page 39150]]

environment and technology and more efficient use of physical space, 
which the Exchange believes better reflects and supports the current 
trading environment. The Exchange also believes the new infrastructure 
provides a cost-effective, streamlined, and modernized approach to 
floor connectivity. As described above, the upcoming transition will 
render much of the Exchange's current trading floor technology and 
infrastructure obsolete, as it will be replaced by new infrastructure 
in a new location (not owned by the Exchange). As such, the Exchange 
believes the proposed modifications to corresponding facility fees are 
not only necessary, but reasonable, equitable and not unfairly 
discriminatory as further discussed below. The Exchange also believes 
the proposed rule change results in a streamlined and simplified 
trading floor and facility fee structure.
Booth Fees
    The Exchange believes the proposed Booth Fees are reasonable as 
they are not a significant departure from fees currently assessed for 
Booths on the current trading floor (and in some instances are even 
lower than currently assessed). Additionally, the Booths on the new 
trading floor will be slightly larger than the standard Booths 
available on the current trading floor. The proposed fees are also in 
line with similar fees charged currently and historically at other 
exchanges with a physical trading floor.\28\ The Exchange believes that 
the proposed booth space fee is equitable and not unfairly 
discriminatory because it applies uniformly to trading floor 
participants who choose to rent Booths (and all booths are uniform and 
nearly identical in size). Moreover, the use of Booths, whether located 
away from or in a trading crowd, are optional and not necessary in 
order to conduct open outcry trading on the trading floor.
---------------------------------------------------------------------------

    \28\ In 2011, Nasdaq PHLX charged a flat $300 per month fee for 
Trading/Administrative Booth paid by floor brokers and clearing 
firms. See Securities Exchange Act Release No. 34-66086 (January 3, 
2012), 77 FR 1111 (January 9, 2012) (SR-Phlx-2011-181). NYSE 
American currently assesses $40 per linear foot per month for all 
booth space utilized by such Floor Broker.
---------------------------------------------------------------------------

    The Exchange believes the proposed rule changes to the Booth Policy 
and Agreement make non-substantive changes that merely clarify the 
Policy and Agreement, make it more accurate, and alleviate potential 
confusion, thereby removing impediments to and perfecting the mechanism 
of a free and open market and a national market system, and, in 
general, protecting investors and the public interest. The Exchange 
believes that notwithstanding any of the proposed changes, the Booth 
Policy and Agreement continues to ensure that trading floor Booths are 
leased to TPH organizations on equal and non-discriminatory terms.
Line to Cboe Floor Network
    The Exchange believes the proposed Line to Cboe Floor Network fee 
is reasonable as TPHs will not be subject to the current lines and 
circuit fees set forth in the Fees Schedule, including for relocation 
and removal, that are assessed on the current trading floor for similar 
connectivity to the trading floor network. Additionally, unlike the 
current floor which requires independent wiring be used for each line 
or circuit and on a per device basis, the new trading floor will allow 
TPHs to maintain one Line (or 2 for redundancy purposes). Moreover, as 
discussed above, firms will no longer need to provide network equipment 
to support dedicated lines to the floor, as on the new trading floor, 
the Exchange will be providing the network switches and local area 
network (LAN) lines for all firms. Accordingly, the new trading floor 
will provide TPHs more flexibility to move and relocate as needed and 
be able to do so without incurring additional relocation and removal 
fees. The Exchange also notes other exchanges assess a variety of 
facility fees relating to connectivity and equipment in order to 
maintain their trading floor facilities.\29\ The Exchange believes the 
proposed installation fee is also reasonable as the Exchange is 
recouping costs it incurs from a third party with respect to the 
installation of such Lines. The proposed fee also includes a redundant 
Line at no additional cost. The Exchange believes the proposed monthly 
and installation Line fees are equitable and not unfairly 
discriminatory as they will apply uniformly to all trading floor 
participants.
---------------------------------------------------------------------------

    \29\ For example, Nasdaq PHLX assesses a Floor Facility Fee of 
$330 per month for such purpose. See Securities Exchange Act Release 
No 69672 (June 5, 2013), 78 FR 33873 (May 30, 2013) (SR-PHLX-2013-
58). Nasdaq PHLX also assesses a variety of options trading floor 
fees including for equipment services and relocation requests. See 
Nasdaq PHLX Options 7 Pricing Schedule, Section 9. Other Member 
Fees, A. Option Trading Floor Fees. See also NYSE America Options 
Fees Schedule, Section IV, Monthly Floor Communication, 
Connectivity, Equipment and Booth or Podia Fees and NYSE Price List, 
Equipment Fees.
---------------------------------------------------------------------------

Co-Location and Meet-Me-Room
    The Exchange believes it is reasonable to cap all TPHs and non-TPHs 
to 8 ``U'' because the Exchange no longer owns the premises in which 
the Meet-me-Room resides and there is finite amount of space. The 
proposed cap however applies to all TPHs and non-TPHs uniformly. 
Additionally, the Exchange believes 8 ``U'' should be sufficient amount 
of space for any TPH or non-TPH and that with such cap in place there 
is sufficient space to accommodate all TPHs or non-TPHs who request co-
location service. The Exchange believes it's reasonable, equitable and 
not unfairly discriminatory to eliminate the Co-Location of Equipment 
Fee for Sponsored Users as it has not had any Sponsored Users in 
several years. If the Exchange were to approve a Sponsored User, such 
participant would merely be subject to the remaining (and lower) Co-
Location of Equipment Fee (i.e., $200 per 4 ``U''). The Exchange 
believes the proposed relocation and language updates to the current 
Co-Location fee are reasonable as the Exchange is not proposing to 
change the amount assessed but is merely updating and simplifying the 
Fees Schedule and making it easier to read.
    The Exchange believes the proposed $25 per cross-connect monthly 
fee is reasonable as it is a modest fee that is a pass-through of the 
fee the Exchange is assessed by a third-party to maintain such cross 
connect. Additionally, the Exchange notes third-party vendors such as 
telecommunication providers will no longer be subject to the $50 per 
month fee for ``Data Circuits from Local Carrier to Equipment Shelf''. 
Additionally, the Exchange believes the proposed amount is in line (and 
lower than) the amount assessed by another exchange for similar cross 
connects.\30\ The proposed cross connect installation fee is also 
reasonable as it is intended to recoup the fees incurred by the 
Exchange by third-party vendors for establishing the cross connects. 
The Exchange believes the proposed monthly and installation cross 
connect fees are also reasonable, equitable and not unfairly 
discriminatory as they apply uniformly to similarly situated market 
participants.
---------------------------------------------------------------------------

    \30\ See Nasdaq PHLX Options 7 Pricing Schedule, Section 9. 
Other Member Fees, A. Option Trading Floor Fees, Cabinet-to-Cabinet 
Connectivity and Cabinet-to-Cabinet MPOE Connectivity, which are 
both subject to a $50 per month fee.
---------------------------------------------------------------------------

    The Exchange believes the proposed Cboe Datacenter Services fee is 
reasonable as it recoups the costs the Exchange incurs for providing 
access to the Meet-me-Room for firms for purposes such as on-site 
support.

[[Page 39151]]

Additionally, the Exchange proposes to waive the fee for the month of 
June 2022, so that visits to the Meet-me-Room to address any onboarding 
questions or issues that may arise during the first month in the new 
facility are free of charge. Moreover, as noted above, the Exchange 
does not anticipate that access to the Meet-me-Room will be needed on a 
frequent basis. The Exchange believes the proposed fee is also 
equitable and not unfairly discriminatory as it will apply uniformly to 
all market participants that request this service, and the fee will be 
waived for all market participants for the month of June 2022.
Trading Floor Devices
    The Exchange believes the proposed changes related to the PAR fee 
are reasonable as the combined proposed fees for using PAR (i.e., 
Exchange Tablet fee and PAR Access fee) are modestly higher than the 
fee TPHs are currently assessed for use of PAR. The Exchange notes that 
although TPHs that use PAR will be subject to a modestly higher fee, 
the PAR Workstation fee has remained unchanged for over eleven years, 
notwithstanding technology changes and improvements over the last 
decade, including for example, the ability to also access Silexx from 
the same tablet on which PAR is accessed.\31\ Moreover, the Exchange 
notes the proposed fee is still lower than fees assessed at other 
exchanges for trading floor terminals. For example, NYSE American 
assesses $450 per device per month for Floor Broker Handheld and an 
additional $215 per month per Exchange sponsored Floor Broker order 
entry system.\32\ The Exchange believes the proposed Exchange Tablet 
fee is also reasonable as TPHs may, but do not have to, use an Exchange 
Tablet to access Cloud9. Indeed, they may use their own TPH-owned 
device for purposes of accessing Cloud9 and be subject to the 
alternative, and lower, TPH-Owned Device Authentication Fee.
---------------------------------------------------------------------------

    \31\ See Securities Exchange Act Release No. 63701 (January 11, 
2011), 76 FR 2934 (January 18, 2011) (SR-CBOE-2010-116).
    \32\ See also NYSE America Options Fees Schedule, Section IV, 
Monthly Floor Communication, Connectivity, Equipment and Booth or 
Podia Fees.
---------------------------------------------------------------------------

    The Exchange believes the proposed PAR Access fee is equitable and 
not unfairly discriminatory as it applies to all TPHs using PAR. 
Moreover, the proposed changes enable the Exchange to offer Exchange-
provided tablets for a separate monthly fee to TPHs that wish to use 
them for Cloud9, which is the Exchange's new telecommunications system 
that it will offer on the new trading floor. Currently, TPHs are 
subject to various communication fees including monthly fees, 
installation fees, relocation fees and removal fees which will no 
longer be assessed by the Exchange as the Exchange's current 
communications offerings will be rendered obsolete upon the transition 
to the new trading floor.\33\
---------------------------------------------------------------------------

    \33\ See Cboe Options Fee Schedule, Communications Fees.
---------------------------------------------------------------------------

    The Exchange believes the proposed TPH-Owned Device Authentication 
Fee is reasonable as the proposed fee is lower than the proposed fee 
assessed for Exchange Tablets which may alternatively be used if a TPH 
is looking to access Silexx or Cloud9. Additionally, the Exchange 
believes it's reasonable to assess TPHs a monthly fee for access to its 
network. Moreover, the Exchange believes the new trading floor provides 
TPHs more flexibility to move and relocate any of their devices by 
eliminating the need for installation, relocation and removal of 
connectivity lines to devices and consequently, corresponding monthly, 
installation, relocation and removal fees. The proposed fee also 
applies to all TPHs accessing the Cboe floor Network from their own 
device.
Replacement Items
    The Exchange believes the proposed change to increase the tablet 
replacement fee is reasonable as the proposed amount better reflects 
the approximate cost to the Exchange to provide a replacement tablet to 
TPHs. Additionally, the Exchange believes adopting a $100 fee for 
replaced access badges is reasonable as the Exchange believes it will 
incentivize TPHs to keep track of their access badges and reduce the 
need for the Exchange to expend resources to print additional 
replacement badges. The Exchange believes these changes are also 
reasonable, equitable and not unfairly discriminatory because TPHs that 
lose these items or damage these items from non-normal wear or tear 
should be responsible for the cost of replacement. The Exchange 
believes the proposed fees will encourage TPHs to take proper care and 
track of these items. Additionally, the Exchange notes that it will not 
charge TPHs to replace defective items (that were not the result of 
non-normal wear and tear).
Obsolete Fees
    The Exchange believes eliminating the facility fees discussed above 
is reasonable as such corresponding services and architecture will be 
rendered obsolete upon transitioning to the new trading floor. 
Additionally, the Exchange believes the proposed new fee structure as 
compared to the fees being eliminated provides for a more streamlined 
and simplified approach to facility fees. The Exchange believes the 
proposed elimination of these fees is equitable and not unfairly 
discriminatory as it will apply uniformly to all TPHs. The proposal to 
eliminate references to these fees in Footnote 12, 24 and 50 also 
maintains clarity in the Fees Schedule and avoids potential confusion.
Footnote 24
    The Exchange believes it's reasonable to provide that Footnote 24 
will not apply during the period of June 1-June 3, 2022 in order to 
provide seamless billing in the month of June 2022. Particularly, as 
discussed above, on June 6, 2022, the Exchange will no longer be 
operating in a modified state due to the COVID-19 pandemic as the 
Exchange will no longer be maintaining a modified configuration of 
trading crowds to implement social distancing nor will it reduce or 
limit how many floor participants may access the trading floor. 
Accordingly, because the Exchange will not be considered to be 
operating in a modified configuration as of June 6, 2022, Footnote 24 
will no longer be applicable and the modified billing practices will 
revert back to original billing. However, because the Exchange will be 
operating in a modified state between June 1-June 3, 2022, absent a 
proposed rule change, Footnote 24 would still apply thereby subjecting 
TPHs to disparate billing for only three trading days of the month. The 
Exchange therefore believes the proposed change is reasonable, 
especially given the short amount of time Footnote 24 would otherwise 
apply. The Exchange believes its proposal to maintain the current 
modified rate of $5,000 for the SPX Floor Tier Appointment Fee under 
Footnote 24 (i.e., increase the fee from $3,000 per permit to $5,000 
permit regardless of whether the Exchange is operating in a modified 
state due to COVID-19 pandemic) \34\ is reasonable because the proposed 
amount is not significantly higher than was previously assessed. 
Additionally, the Exchange notes that it has not amended the Market-
Maker SPX Tier Appointment Fee since such fee was adopted nearly

[[Page 39152]]

twelve years ago in July 2010.\35\ The proposed change also is 
equitable and not unfairly discriminatory as it applies to all 
similarly situated TPHs.
---------------------------------------------------------------------------

    \34\ The Exchange proposes to eliminate this language from 
Footnote 24 as it will no longer be considered a ``modified'' rate, 
and instead update the rate reflected in the Market-Maker Tier 
Appointment Fees table.
    \35\ See Securities Exchange Act Release No. 62386 (June 25, 
2010), 75 FR 38566 (July 2, 2010) (SR-CBOE-2010-060).
---------------------------------------------------------------------------

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. The Exchange does not 
believe that the proposed rule changes 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 
would be applied in the same manner to all similarly situated 
participants and as such, would not impose a disparate burden on 
competition among the same classes of market participants. As described 
in further detail above, the proposed fees are also applicable only to 
market participants that choose to avail themselves to the 
corresponding facility services. For example, only firms that choose to 
rent Booths (which are optional and not required for open-outcry 
trading) will be subject to the proposed Booth Fees. Similarly, only 
firms that choose to purchase Exchange-provided tablets are subject to 
the tablet fee, and firms may otherwise choose to purchase and provide 
their own tablets.
    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 fees relating to the Exchange's 
floor facility. Further, as described in detail above, the Exchange 
believes its proposed facilities fees are in line with facility fees 
assessed at other exchanges that maintain physical trading floors. 
Additionally, the Exchange notes it operates in a highly competitive 
market. In addition to Cboe Options, TPHs have numerous alternative 
venues that they may participate on and director their order flow, 
including 15 other options exchanges (four of which also maintain 
physical trading floors), 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.\36\ 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.'' \37\ 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 broker-dealers 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'. . . .''.\38\ 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.
---------------------------------------------------------------------------

    \36\ See Cboe Global Markets, U.S. Options Market Volume Summary 
by Month (May 31, 2022), available at http://markets.cboe.com/us/options/market_share/.
    \37\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496, 37499 (June 29, 2005).
    \38\ NetCoalition 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)).
---------------------------------------------------------------------------

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 is effective upon filing pursuant to 
Section 19(b)(3)(A) \39\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \40\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
---------------------------------------------------------------------------

    \39\ 15 U.S.C. 78s(b)(3)(A).
    \40\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such 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 shall institute proceedings under 
Section 19(b)(2)(B) \41\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \41\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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

    <bullet> Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#e99b9c858cc48a8684848c879d9aa99a8c8ac78e869f"><span class="__cf_email__" data-cfemail="d5a7a0b9b0f8b6bab8b8b0bba1a695a6b0b6fbb2baa3">[email protected]</span></a>. Please include 
File Number SR-CBOE-2022-029 on the subject line.

Paper Comments

    <bullet> 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-2022-029. 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

[[Page 39153]]

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-2022-029, and should be 
submitted on or before July 21, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\42\
---------------------------------------------------------------------------

    \42\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-13943 Filed 6-29-22; 8:45 am]
BILLING CODE 8011-01-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>