Document ID: SEC-2022-0066-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Cboe Exchange, Inc.
Posted Date: 2022-01-19T05:00Z

[Federal Register Volume 87, Number 12 (Wednesday, January 19, 2022)]
[Notices]
[Pages 2971-2976]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00871]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93955; File No. SR-CBOE-2021-076]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Its Fees Schedule

January 12, 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 December 30, 2021, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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 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://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the 
Secretary, and at the Commission's Public Reference Room.

[[Page 2972]]

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 
certain surcharges, a trading floor-related fee and its Global Trading 
Hours (``GTH'') Cboe Volatility Index (``VIX'') options/VIX weekly 
(``VIXW'') options and S&P 500 Index (``SPX'') options/SPX weekly 
(``SPXW'') LMM Incentive Programs, effective January 2, 2022.
    First, the Exchange proposes to amend the Execution Surcharge fee 
in Rate Table--Underlying Symbol List A of the Fees Schedule applicable 
to non-Market-Maker orders \3\ executed electronically in SPXW options. 
Currently, a surcharge fee of $0.13 per contract is assessed for non-
Market-Maker orders executed electronically in SPXW. The proposed rule 
change slightly increases this surcharge fee from $0.13 per contract to 
$0.14 per contract. The Exchange notes that the proposed SPXW Execution 
Surcharge fee is still less than the Execution Surcharge fee assessed 
for SPX and SPESG transactions.\4\
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    \3\ Non-Market-Makers include Customers (capacity ``C''), 
Clearing Trading Permit Holders (capacity ``F''), Non-Clearing 
Trading Permit Holder Affiliates (capacity ``L''), Broker-Dealers 
(capacity ``B''), Joint Back-Offices (capacity ``J''), Non-Trading 
Permit Holder Market-Makers (capacity ``N''), and Professionals 
(capacity ``U''). Capacity ``M'' applies to Market-Makers.
    \4\ See Cboe Options Fees Schedule, Rate Table--Underlying 
Symbol List A, Execution Surcharge, SPX (not including SPXW) and 
SPESG, which assesses a surcharge fee of $0.21 per contract for non-
Market-Maker orders in SPX and SPESG.
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    Next, the Exchange proposes to marginally increase the Index 
License Surcharge fees currently applicable to orders executed in SPX 
(including SPXW) options in Rate Table--Underlying Symbol List A and to 
orders executed in MSCI Emerging Markets Index (``MXEF'') options and 
MSCI EAFE Index (``MXEA'') options (collectively, ``MSCI options'') in 
Rate Table--All Products Excluding Underlying Symbol List A. 
Specifically, the Exchange currently assesses an Index License 
Surcharge fee of $0.17 per contract for non-Customer orders executed in 
SPX/SPXW and an Index License Surcharge fee of $0.10 per contract for 
non-Customer orders executed in MSCI options. The proposed rule change 
increases the Index License Surcharge fee applicable to orders executed 
in SPX/SPXW from $0.17 per contract to $0.18 per contract and the Index 
License Surcharge fee applicable to orders executed in MSCI options 
from $0.10 per contract to $0.12 per contract. The Exchange notes that 
the Index License Surcharge fees in place for SPX/SPXW and MSCI options 
are designed to recoup some of the costs associated with the licenses 
for these indexes.\5\ The Exchange has recently renewed its license 
arrangements for its SPX and MSCI index licenses and, as a result, the 
proposed rule change amends the Index License Surcharge fees for SPX/
SPXW and MSCI options in order to continue to offset some of the costs 
associated with the licenses for these indexes.
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    \5\ See Securities Exchange Release Nos. 74854 (April 30, 2015), 
80 FR 26124 (May 6, 2015) (SR-CBOE-2015-041); and 74422 (March 4, 
2015), 80 FR 12680 (March 10, 2015) (SR-CBOE-2015-020).
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    Next, the Exchange proposes to amend a badge type in the Access 
Badges table of the Fees Schedule. Currently, a $70.00 fee is assessed 
for Clerk badges to access the Exchange's trading floor. The Exchange 
proposes to extend this badge fee to clerks and other Trading Permit 
Hold (``TPH'') employees in order to cover TPH employees that also 
receive an access badge to the Exchange's trading floor (e.g., TPH 
technical support personnel). The Exchange notes that badge access is 
optional and other TPH employees may continue to be admitted to the 
trading floor if signed in by authorized TPH personnel.
    Finally, the Exchange proposes to amend the rebates provided under 
its GTH1 and GTH2 VIX/VIXW LMM Incentive Programs and amend certain 
quote width categories under its GTH2 SPX/SPXW LMM Incentive Program. 
In particular, the Exchange offers, among other LMM incentive programs, 
a GTH1 VIX/VIXW LMM Incentive Program that applies during GTH from 7:15 
p.m. CST to 2:00 a.m. CST (``GTH1'') and a GTH2 VIX/VIXW LMM Incentive 
Program and GTH2 SPX/SPXW LMM Incentive Program that apply during GTH 
from 2:00 a.m. CST to 8:15 a.m. CST (``GTH2''). The Exchange notes that 
these LMM incentive programs in the Fees Schedule provide a rebate to 
TPHs with LMM appointments to the respective incentive program that 
meet certain quoting standards in VIX/VIXW and SPX/SPXW, as applicable, 
in a month. The Exchange notes that meeting or exceeding the quoting 
standards in VIX/VIXW or SPX/SPXW to receive the applicable rebates (as 
currently offered and as proposed; described in further detail below) 
is optional for an LMM appointed to one of the GTH VIX/VIXW and SPX/
SPXW LMM Incentive Programs. Rather, an LMM appointed to an incentive 
program is eligible to receive the corresponding rebate if it satisfies 
the applicable quoting standards (as currently offered and as proposed, 
described in further detail below), which the Exchange believes 
encourages an LMM to provide liquidity in the applicable program's 
products during GTH. The Exchange may consider other exceptions to the 
programs' quoting standards based on demonstrated legal or regulatory 
requirements or other mitigating circumstances. In calculating whether 
an LMM appointed to a GTH VIX/VIXW or GTH2 SPX/SPXW incentive program 
meets the applicable program's quoting standards each month, the 
Exchange excludes from the calculation in that month the business day 
in which the LMM missed meeting or exceeding the quoting standards in 
the highest number of series.
    An LMM appointed to one of the GTH VIX/VIXW LMM Incentive Programs 
must provide continuous electronic quotes during GTH1 or GTH2, as 
applicable, that meet or exceed the quoting standards under the 
applicable program in at least 99% of each of the VIX and VIXW series, 
90% of the time in a given month in order to receive a rebate for that 
month in the amount of $15,000 for VIX and $10,000 for VIXW (or pro-
rated amount if an appointment begins after the first trading day of 
the month or ends prior to the last trading day of the month) for that 
month. The Exchange now proposes to increase each rebate amount 
received under the GTH1 and GTH2 VIX/VIXW LMM Incentive Programs for 
meeting the applicable quoting standards in a given month in VIX and 
VIXW, by slightly increasing the rebate amount for VIX from $15,000 to 
$20,000 and in VIXW, by slightly increasing the rebate amount from 
$10,000 to $15,000. The Exchange notes that no changes are being made 
to the quoting standards under the GTH1 or GTH2 VIX/VIXW LMM Incentive 
Programs. The Exchange wishes to

[[Page 2973]]

further incentivize the LMMs appointed to the GTH VIX/VIXW LMM 
Incentive Programs to provide significant liquidity in VIX/VIXW options 
during all of GTH by meeting the applicable quoting standards currently 
under each program in order to receive the proposed increased rebates.
    An LMM appointed to the GTH2 SPX/SPXW LMM Incentive Program must 
provide continuous electronic quotes during GTH2 that meet or exceed 
the quoting standards, provided below, in at least 85% of each of the 
SPX and SPXW series, 90% of the time in a given month in order to 
receive a rebate for that month in the amount of $15,000 for SPX and 
$35,000 for SPXW (or pro-rated amount if an appointment begins after 
the first trading day of the month or ends prior to the last trading 
day of the month) for that month.

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                                                          Expiring                  Near term                 Mid term                  Long term
                                                 -------------------------------------------------------------------------------------------------------
                  Premium level                        7 days or less           8 days to 60 days        61 days to 270 days      271 days to 500 days
                                                 -------------------------------------------------------------------------------------------------------
                                                     Width         Size        Width         Size        Width         Size        Width         Size
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                                                              VIX Value at Prior Close <20
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$0.00-$5.00.....................................        $0.35           25        $0.40           15        $0.60            5        $1.20            5
$5.01-$15.00....................................         0.60           20         0.60           20         1.50           10         2.00            5
$15.01-$50.00...................................         1.20           15         2.00           15         2.00           10         4.00            5
$50.01-$100.00..................................         6.00           10         4.00           10         3.00           10         5.00            5
$100.01-$200.00.................................        15.00            1         5.00            5         4.00            5         6.00            5
Greater than $200.00............................        20.00            1         8.00            1        12.00            1        50.00            1
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           VIX Value at Prior Close from 20-30
--------------------------------------------------------------------------------------------------------------------------------------------------------
$0.00-$5.00.....................................         0.60           15         0.80           10         0.75            5         2.00            5
$5.01-$15.00....................................         1.00           15         1.00           15         2.20            5         3.00            5
$15.01-$50.00...................................         2.50           10         3.50           10          3.0            5         5.00            5
$50.01-$100.00..................................        10.00           10         7.00           10         3.50            5         7.00            5
$100.01-$200.00.................................        18.00            1         8.00            5         6.00            5        10.00            5
Greater than $200.00............................        25.00            1        12.00            1         2.00            1        60.00            1
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         VIX Value at Prior Close 30
--------------------------------------------------------------------------------------------------------------------------------------------------------
$0.00-$5.00.....................................         0.90           10         1.00           10         1.00            5         3.00            5
$5.01-$15.00....................................         2.50           10         2.50           10         3.00            5         4.00            5
$15.01-$50.00...................................         4.00           10         5.00           10         5.00            5         8.00            5
$50.01-$100.00..................................        12.00            5        10.00            5         4.50            3        10.00            1
$100.01-$200.00.................................        20.00            1        12.00            5        15.00            1        18.00            1
Greater than 200.00.............................        30.00            1        25.00            1        30.00            1        70.00            1
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    The Exchange proposes to marginally widen certain quotes widths 
applicable when the VIX Index value at the prior close is less than 20 
for SPX/SPXW options expiring in 7 days or less as follows: Widen the 
quote width that corresponds to the $5.01 to $15.00 premium level from 
$0.60 to $0.80; widen the quote width that corresponds to a premium 
level of $15.01 to $50.00 from $1.20 to $1.80; and widen the quote 
width that corresponds to the premium level of $50.01 to $100.00 from 
$6.00 to $7.50. The Exchange notes that, generally, demand for and 
participation in SPX/SPXW options decreases as time to expiration 
decreases and, as a result, it becomes more difficult for LMMs to quote 
within specified widths and sizes for SPX/SPXW options that expire in 7 
days or less. As such, the proposed rule change is designed to slightly 
ease the quoting requirements under the expiration category of 7 days 
or less (when the VIX Index value is less than 20 at the prior close) 
by marginally widen certain quote widths in order to better enable and 
encourage LMMs to satisfy the quoting standards to receive the current 
monthly rebate applicable to SPX and/or SPXW.
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.\6\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \7\ 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 
Section 6(b)(4) of the Act,\8\ which requires that Exchange rules 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its Trading Permit Holders and other persons using 
its facilities.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes amending the Execution Surcharge fee 
applicable to non-Market-Maker electronic orders in SPXW is reasonable 
as such fee is still lower than the Execution Surcharge fee applicable 
to non-Market-Maker orders transacted in SPX and SPESG.\9\ 
Additionally, the proposed increase helps to ensure that there is 
reasonable cost equivalence between the primary execution channels for 
SPXW. More specifically, the SPXW Surcharge fee was adopted to minimize 
the cost differentials between manual and electronic executions, which 
is in the interest of the Exchange as it must both maintain robust 
electronic systems as well as provide for economic opportunity for 
floor brokers to continue to conduct business, as they serve an 
important function in achieving price discovery and customer 
executions.\10\ The Exchange believes the proposed change is also 
equitable and not unfairly

[[Page 2974]]

discriminatory as it will continue to apply uniformly to all non-
Market-Maker orders executed electronically in SPXW.
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    \9\ See supra note 4.
    \10\ See Securities Exchange Act Release No. 71295 (January 14, 
2014) 79 FR 3443 (January 21, 2014) (SR-CBOE-2013-129).
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    The Exchange believes that it is reasonable to increase the amount 
of the Index License Surcharge fees for orders in SPX/SPXW and MSCI 
options as the proposed increases are consistent with the purpose of 
such surcharge fees as they are intended to continue to help recoup 
some of the costs associated with the license for such products in 
light of recently renewed license arrangements between the Exchange and 
the applicable index providers. The proposed Index License Surcharge 
fees are also equitable and not unfairly discriminatory because the 
surcharge fees will continue to be assessed uniformly for all non-
Customer orders in SPX/SPXW and MSCI options, as applicable.
    The Exchange believes the proposed rule change to extend the access 
badge fee to other TPH employees, in addition to clerks, is reasonable 
as it is designed to cover TPH employees that also receive an access 
badge to the Exchange's trading floor (e.g., TPH technical support 
personnel). The Exchange again notes that badge access is optional and 
other TPH employees may continue to be admitted to the trading floor if 
signed in by TPH personnel with badge access. The extension of the 
access badge fee to other TPH employees is equitable and not unfairly 
discriminatory because it will apply uniformly to all TPH employees 
that opt to receive an access badge.
    Regarding the GTH VIX/VIXW LMM Incentive Programs and the GTH2 SPX/
SPXW LMM Incentive Program, generally, the Exchange believes it is 
reasonable, equitable and not unfairly discriminatory to continue to 
offer these financial incentives, including as amended, to LMMs 
appointed to the programs, because it benefits all market participants 
trading in the corresponding products during GTH. These incentive 
programs encourage the LMMs appointed to such programs to satisfy the 
applicable quoting standards, which may increase liquidity and provide 
more trading opportunities and tighter spreads. Indeed, the Exchange 
notes that these LMMs serve a crucial role in providing quotes and the 
opportunity for market participants to trade VIX/VIXW and SPX/SPXW 
options, as applicable, which can lead to increased volume, providing 
for robust markets. The Exchange ultimately offers the LMM Incentive 
Programs, as amended, to sufficiently incentivize LMMs appointed to 
each incentive program to provide key liquidity and active markets in 
the corresponding program products during the corresponding trading 
sessions. The Exchange believes that these incentive programs, as 
amended, will continue to encourage increased quoting to add liquidity 
in each of the corresponding program products, thereby protecting 
investors and the public interest. The Exchange also notes that an LMM 
appointed to an incentive program may undertake added costs each month 
to satisfy that heightened quoting standards (e.g., having to purchase 
additional logical connectivity).
    In particular, the Exchange believes that the proposed increases to 
the rebates applicable to VIX and VIXW provided under the GTH VIX/VIXW 
LMM Incentive programs are reasonably designed to continue to 
incentivize an appointed LMM to meet the applicable quoting standards 
for VIX/VIXW options during GTH, thereby providing liquid and active 
markets, which facilitates tighter spreads, increased trading 
opportunities, and overall enhanced market quality to the benefit of 
all market participants. The Exchange further believes that the 
proposed rule change to amend the rebate amount received for VIX 
($20,000) and VIXW options ($15,000) is reasonable because it is 
comparable to and within the range of the rebates offered by other LMM 
Incentive Programs. For example, the GTH SPX/SPXW LMM Programs 
currently offers $15,000 for SPX and $35,000 SPXW options in which the 
applicable quoting standards are met in a given month. The Exchange 
believes the proposed rebates applicable to the GTH VIX/VIXW LMM 
Incentive Programs are equitable and not unfairly discriminatory 
because they will continue to apply equally to any TPH that is 
appointed as an LMM to the GTH1 and GTH2 VIX/VIXW LMM Incentive 
Programs.
    The Exchange believes that it is reasonable to slightly ease the 
quoting requirements under the GTH2 SPX/SPXW LMM Incentive Program by 
marginally widen certain quote widths for SPX/SPXW options that expire 
in 7 days or less, wherein it becomes more difficult for LMMs to quote 
within specified widths, in order to better enable and encourage LMMs 
to satisfy the quoting standards to receive the current monthly rebate 
applicable to SPX and/or SPXW. As such, the Exchange believes the 
slightly wider quote widths are reasonably designed to facilitate LMMs 
appointed to the GTH2 SPX/SPXW LMM Incentive Program in meeting the 
heightened quoting standards (in order to receive the current rebate 
offered under the program) by increasing their quoting activity and 
posting tighter spreads and more aggressive quotes in SPX/SPXW options 
during GTH2. An increase in quoting activity and tighter quotes tends 
to signal additional corresponding increase in order flow from other 
market participants, which benefits all investors by deepening the 
Exchange's liquidity pool, potentially providing even greater execution 
incentives and opportunities, offering additional flexibility for all 
investors to enjoy cost savings, supporting the quality of price 
discovery, promoting market transparency and improving investor 
protection. The Exchange also believes that the proposed widths are 
reasonable because they remain generally aligned with the current 
heightened quoting standards in the program, as the proposed widths are 
only marginally larger than the current widths. The Exchange believes 
that the proposed increase in certain quote widths under the GTH2 SPX/
SPXW LMM Incentive Program is equitable and not unfairly discriminatory 
because such quote widths will continue to apply equally to any and all 
TPHs with LMM appointments to the GTH2 SPX/SPXW LMM Incentive Program 
that seek to meet the program's heightened quoting standards in order 
to receive the current rebates offered under the program.
    Additionally, the Exchange notes if an LMM appointed to the GTH 
VIX/VIXW LMM Incentive Programs or the GTH2 SPX/SPXW LMM Incentive 
Program does not satisfy the corresponding quoting standards for any 
given month, then it simply will not receive the rebate(s) offered by 
the respective program for that month.

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 intramarket or intermarket 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 in connection 
with surcharge fees will impose any burden on intramarket competition 
because each applies uniformly to all similarly situated TPHs in a 
uniform manner (i.e., to all non-Market-Maker electronic executions in 
SPXW and to all non-Customer executions in SPX/SPXW or MSCI options). 
Additionally, the access badge fee will apply uniformly to all other 
TPH employees in the same manner as it applies to all clerk badges 
today. The Exchange again notes that badge access is optional and

[[Page 2975]]

other TPH employees may continue to be admitted to the trading floor if 
signed in by TPH personnel with badge access. Additionally, the 
proposed changes to existing GTH VIX/VIXW and SPX/SPXW LMM Incentive 
Programs will apply to all LMMs appointed to the applicable program 
classes (i.e., VIX/VIXW and SPX/SPXW) in a uniform manner. To the 
extent these LMMs appointed to an incentive program receive a benefit 
that other market participants do not, as stated, these LMMs in their 
role as Mark-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, 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 that it needs to satisfy that heightened quoting 
standards (e.g., having to purchase additional logical connectivity). 
The Exchange also notes that the incentive programs are 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 changes will 
impose any burden on intermarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act because the 
proposed amendments to the surcharges and the LMM Incentive Programs, 
apply only to Exchange proprietary products, which are traded 
exclusively on Cboe Options. Additionally, the Exchange notes that at 
least one other options exchange assesses a badge fee for employees of 
on-floor registrants.\11\
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    \11\ See BOX FEE Schedule, Section VIII C, Trading Floor 
Participant Fees, which assesses a $100 badge fee for ``all other 
registered on-floor persons employed by or associated with a Floor 
Market Maker or Floor Broker''.
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    Additionally, the Exchange notes that it operates in a highly 
competitive market. TPHs have numerous alternative venues that they may 
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 15% of the market share.\12\ 
Therefore, no exchange possesses significant pricing power in the 
execution of option order flow. Indeed, participants can readily choose 
to send their orders to other exchange, and, additionally off-exchange 
venues, if they deem fee levels at those other venues to be more 
favorable. Moreover, the Commission has repeatedly expressed its 
preference for competition over regulatory intervention in determining 
prices, products, and services in the securities markets. Specifically, 
in Regulation NMS, the Commission highlighted the importance of market 
forces in determining prices and SRO revenues and, also, recognized 
that current regulation of the market system ``has been remarkably 
successful in promoting market competition in its broader forms that 
are most important to investors and listed companies.'' \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 
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'. . . .''.\14\ 
Accordingly, the Exchange does not believe its proposed fee change 
imposes any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.
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    \12\ See Cboe Global Markets U.S. Options Market Volume Summary, 
Month-to-Date (December 17, 2021), available at https://www.cboe.com/us/options/market_statistics/.
    \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 (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)).
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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 \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.
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    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4(f).
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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 [email protected]. Please include 
File Number SR-CBOE-2021-076 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-2021-076. 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

[[Page 2976]]

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-2021-076 and should be submitted on or before February 9, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-00871 Filed 1-18-22; 8:45 am]
BILLING CODE 8011-01-P