Document ID: SEC-2022-0658-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Cboe BYX Exchange, Inc.
Posted Date: 2022-05-12T04:00Z

[Federal Register Volume 87, Number 92 (Thursday, May 12, 2022)]
[Notices]
[Pages 29201-29205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10146]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94862; File No. SR-CboeBYX-2022-016]

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

May 6, 2022.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on May 2, 2022, Cboe BYX Exchange, Inc. (``Exchange'' or ``BYX'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the Exchange. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
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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 BYX Exchange, Inc. (the ``Exchange'' or ``BYX'' or ``BYX 
Equities'') is filing with the Securities and Exchange Commission 
(``Commission'') a proposed rule change to amend its Fee Schedule. The 
text of

[[Page 29202]]

the proposed rule change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the 
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/byx/), at the Exchange's Office of the Secretary, and at 
the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On March 26, 2021, the Commission approved the Exchange's proposed 
introduction of periodic auctions in U.S. equity securities (``Periodic 
Auctions'').\3\ Periodic Auctions, which will launch on the Exchange on 
April 14, 2022, will be conducted throughout the course of the trading 
day when there are matching buy and sell Periodic Auction orders that 
are available to trade in such an auction. They are price forming 
auctions that are executed at the price level that maximizes the total 
number of shares in both the auction book and the continuous book and 
are designed to enhance the ability for investors to source liquidity 
in all equity securities traded on the Exchange. The Exchange now 
proposes to introduce fees associated with orders executed in Periodic 
Auctions.\4\
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    \3\ See Securities Exchange Act Release No. 91423 (March 26, 
2021) 86 FR 17230 (April 1, 2021) (SR-CboeBYX-2020-021).
    \4\ The Exchange initially filed the proposed fee changes on 
April 14, 2022 (SR-CboeBYX-2022-012). On April 27, 2022, the 
Exchange withdrew that filing and re-submitted the proposed fee 
changes (SR-CboeBYX-2022-014). On April 29, 2022, the Exchange 
withdrew that filing and re-submitted the proposed fee changes (SR-
CboeBYX-2022-015). On May 2, 2022, the Exchange withdrew that filing 
and submitted this filing.
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    The Exchange operates a ``Taker-Maker'' model whereby it pays 
credits to members that remove liquidity and assesses fees to those 
that add liquidity. The Exchange's Fees Schedule sets forth the 
standard rebates and rates applied per share for orders that remove and 
provide liquidity, respectively. Particularly, for securities at or 
above $1.00, the Exchange provides a standard rebate of $0.00200 per 
share for orders that remove liquidity and assesses a fee of $0.00200 
per share for orders that add liquidity. For orders priced below $1.00, 
the Exchange does not assess a fee or provide a rebate for orders that 
add liquidity and assesses a fee of 0.10% of total dollar value for 
orders that remove liquidity. Additionally, in response to the 
competitive environment, the Exchange also offers tiered pricing which 
provides Members opportunities to qualify for higher rebates or reduced 
fees where certain volume criteria and thresholds are met. Tiered 
pricing provides an incremental incentive for Members to strive for 
higher tier levels, which provides increasingly higher benefits or 
discounts for satisfying increasingly more stringent criteria.
Proposed Fee Codes
    The Exchange proposes to introduce three new fee codes applicable 
to orders executed in a Periodic Auction. First, the Exchange proposes 
to adopt fee code AD,\5\ which would be appended to displayed orders 
executed in a Periodic Auction.\6\ Periodic Auction Only Orders \7\ or 
Periodic Auction Eligible Orders \8\ are non-displayed orders and 
therefore fee code AD would not be appended to such orders. However, 
Continuous Book Orders \9\ may be displayed or non-displayed orders and 
therefore such displayed Continuous Book Orders would be appended with 
fee code AD. Orders appended with fee code AD would be assessed a fee 
of $0.00200 in securities priced equal to or greater than $1.00, and 
would be provided no charge or rebate in securities priced less than 
$1.00.\10\ The proposed fee is the same as other displayed fee codes 
that add liquidity to the Exchange, such as fee codes B,\11\ V,\12\ and 
Y.\13\
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    \5\ As discussed more fully below, the Exchange is also 
proposing to add footnotes 1 and 2 to fee code, AD.
    \6\ ``Continuous Book Orders'', as defined in Rule 11.25(a)(2), 
may be displayed or non-displayed orders. Continuous Book Orders 
will not initiate a Periodic Auction but are eligible to participate 
in such an auction when it is executed.
    \7\ A ``Periodic Auction Only Order'' is a non-displayed limit 
order entered with an instruction to participate solely in Periodic 
Auctions pursuant to this Rule 11.25. Periodic Auction Only Orders 
are not eligible for execution on the Continuous Book. See Exchange 
Rule 11.25(b)(1).
    \8\ A ``Periodic Auction Eligible Order'' is a non-displayed 
limit order eligible to trade on the Continuous Book that is entered 
with an instruction to also initiate a Periodic Auction, if 
possible, pursuant to this Rule 11.25. See Exchange Rule 11.25(b)(2)
    \9\ A ``Continuous Book Order'' is an order on the BYX Book that 
is not a Periodic Auction Order. See Exchange Rule 11.25(a)(2).
    \10\ Footnote 15 of the BYX Fee Schedule provides that ``[f]or 
securities priced below $1.00: no charge or rebate'' is applied. 
Therefore, the Exchange proposes to apply footnote 15 to proposed 
fee code AD.
    \11\ Fee code ``B'' is appended to displayed orders adding 
liquidity to BYX (Tape B).
    \12\ Fee code ``V'' is appended to displayed orders adding 
liquidity to BYX (Tape A).
    \13\ Fee code ``Y'' is appended to displayed orders adding 
liquidity to BYX (Tape C).
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    Second, the Exchange proposes to adopt fee code AU, which would be 
appended to Periodic Auction Only or Periodic Auction Eligible orders 
executed in a Periodic Auction. Orders appended with fee code AU would 
not be provided a rebate or assessed a fee, regardless of the price of 
the security.\14\
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    \14\ The Exchange proposes to apply footnote 15 to proposed fee 
code AU.
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    Third, the Exchange proposes to adopt fee AH, which would be 
appended to non-displayed orders executed in a Periodic Auction. As 
noted above, Continuous Book Orders may be displayed or non-displayed 
orders. Therefore, non-displayed orders that are not Periodic Auction 
Only or Periodic Auction Eligible Orders would be appended with fee 
code AH. Orders appended with fee code AH would be assessed a fee of 
$0.00100 in securities priced equal to or greater than $1.00 and would 
be provided no charge or rebate in securities priced less than 
$1.00.\15\ The proposed fee is the same as the fee assessed to non-
displayed midpoint peg orders (i.e., fee code MM).\16\
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    \15\ The Exchange proposes to apply footnote 15 to proposed fee 
code AH.
    \16\ Fee code ``MM'' is appended to non-displayed orders that 
add liquidity using a midpoint peg.
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Proposed Definitions
    The Exchange proposes to adopt two new definitions pertaining to 
auction volume executed on the Exchange. First, the Exchange proposes 
to adopt the term ``Auction ADV'' which would mean the average daily 
auction volume calculated as the number of shares executed in an 
auction per day. The Exchange also proposes to adopt the term ``Step-Up 
Auction ADV'' which would mean the Auction ADV in the relevant baseline 
month subtracted from current Auction ADV.
Proposed Tier Changes
    The Exchange proposes to modify the tiers in order to account for 
volume executed in a Periodic Auction. As noted above, the Exchange 
offers tiered pricing which provides Members opportunities to qualify 
for higher

[[Page 29203]]

rebates or reduced fees where certain volume criteria and thresholds 
are met. The Exchange offers three sets of tiers as set forth in 
footnotes 1 through 3 of the Fee Schedule. Specifically, under footnote 
1 \17\ of the Fee Schedule, the Exchange offers Add/Remove Volume 
Tiers, which offer various enhanced rebates and reduced fees for 
reaching certain, incrementally more challenging volume-based 
thresholds. Under footnote 2 \18\ of the Fee Schedule, the Step-Up 
Tiers offers a reduced fee to Members that increase their relative add 
volume order flow each month over a predetermined baseline as well as 
add liquidity over and established threshold. Last, under footnote 3 
\19\ of the Fee Schedule, the Exchange offers the Routing Tier which 
offers an enhanced rebate for orders routed to Nasdaq BX through the 
Destination Specific or TRIM routing strategies. Under each of 
footnotes 1 through 3, the required criteria of certain tiers reference 
a Member's ADV,\20\ ADAV,\21\ or Step-Up ADAV \22\ as follows:
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    \17\ Footnote 1, Add/Remove Volume Tiers, applies to fee codes 
B, V, and Y. The Exchange now proposes to add Footnote 1 to fee 
code, AD.
    \18\ Footnote 2, Step-Up Tiers, applies to fee codes B, V, and 
Y. The Exchange now proposes to add Footnote 2 to fee code, AD.
    \19\ Footnote 3, Routing Tier, applies to fee code, C (Routed to 
NASDAQ BX using Destination Specific, TRIM or SLIM routing 
strategies). AU/AH/AD are included in the calculations to qualify 
for the Routing Tier rebates.
    \20\ ``ADV'' means average daily volume calculated as the number 
of shares added or removed, combined, per day.
    \21\ ``ADAV'' means average daily volume calculated as the 
number of shares added per day.
    \22\ ``Step-Up ADAV'' means ADAV in the relevant baseline month 
subtracted from current ADAV.
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     The Add Volume Tiers 1 through 4 provide a reduced fee for 
each Member's qualifying orders that have an ADAV equal to or greater 
than a certain percentage of TCV;
     The Add Volume Tier 5 provides a reduced fee to each 
MPID's qualifying orders that have an ADAV equal to or greater than a 
certain percentage of the TCV; \23\
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    \23\ ``TCV'' means total consolidated volume calculated as the 
volume reported by all exchanges and trade reporting facilities to a 
consolidated transaction reporting plan for the month for which the 
fees apply.
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     The Remove Volume Tier 6 provides the applicable rebate to 
each Member's qualifying orders that have (1) an ADV equal to or 
greater than 0.08% of the TCV; and (2) an ADAV equal to or greater than 
500,00 shares meet the required criteria; \24\
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    \24\ The Exchange notes that Remove Volume Tiers 7 and 8 do not 
reference ADV or ADAV, but instead reference certain liquidity 
removing volume executed on the Exchange.
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     The Step-Up Tier provides a reduced fee to each Member's 
qualifying orders where a Member (1) adds a Step-Up ADAV from June 2021 
equal to or greater than 0.05% of TCV or adds a Step-Up ADAV from June 
2021 equal to or greater than 2,000,000; and (2) has a total add ADAV 
equal to or greater than 0.25% of TCV.
     The Routing Tier provides the applicable rebate to each 
Member's qualifying orders with an ADV equal to or greater than 0.10% 
of the TCV.
    Now, the Exchange proposes to modify each of the above referenced 
Tiers to include auction volume where ADV, ADAV, and Step-Up ADAV are 
referenced.\25\ Therefore, the Exchange proposes the required criteria 
of the above Tiers as follows:
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    \25\ The Exchange is not modifying the applicable fees and 
rebates associated with Tiers 1 through 4. Rather, the Exchange 
seeks only to add new types of volume that count toward the Tiers.
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     The Add Volume Tiers 1 through 4 provide a reduced fee to 
each Member's qualifying orders that have a combined Auction ADV and 
ADAV equal to or greater than a certain percentage of the TCV;
     The Add Volume Tier 5 provides a reduced fee to each 
MPID's qualifying orders that have a combined Auction ADV and ADAV 
equal to or greater than a certain percentage of the TCV;
     The Remove Volume Tier 6 would provide the applicable 
rebate to Members' qualifying orders that have (1) a combined Auction 
ADV and ADV equal to or greater than 0.08% of the TCV; and (2) a 
combined Auction ADV and ADAV equal to or greater than 500,000 shares 
would meet the required criteria; and
     The Step-Up Tier would provide a reduced fee to each 
Member's qualifying orders with (1) a combined Step-Up Auction ADV and 
Step-Up ADAV from June 2021 equal to or greater than 0.05% of TCV or a 
combined Step-Up Auction ADV and Step-Up ADAV from June 2021 equal to 
or greater than 2,000,000; and (2) a combined Auction ADV and ADAV 
equal to or greater than 0.25% of TCV; and
     The Routing Tier would provide the applicable rebate to 
Members' qualifying orders with a combined Auction ADV and ADV of equal 
to or greater than 0.10% of the TCV.
    As discussed above, orders yielding fee code AD will represent 
displayed Continuous Book Orders that add liquidity to the Exchange. 
Therefore, if such orders did not execute in a Periodic Auction, they 
would be appended with fee code B, V, or Y, as applicable, and those 
executions would qualify towards the Add Volume Tiers 1 through 5 and 
the Step-Up Tier. Continuous Book Orders that add liquidity to the 
Exchange will participate in a Periodic Auction, if eligible. 
Therefore, to ensure such orders are not disincentivized to participate 
in such a Periodic Auction, the Exchange proposes to allow orders 
yielding fee code AD to qualify towards the Add Volume Tiers 1 through 
5 and Step-Up Tier, as well qualify for the reduced fees or rebates 
provided by such Tiers.\26\
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    \26\ Based on the proposal to allow orders yielding fee code AD 
to qualify towards the Add Volume Tiers 1 through 5 and Step-Up 
Tier, the Exchange also proposes to append footnotes 1 and 2 to Fee 
Code AD.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\27\ in general, and 
furthers the objectives of Section 6(b)(4),\28\ in particular, as it is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its members and other persons using its 
facilities. Specifically, the Exchange believes that the proposed rule 
change is consistent with the requirements of the Act as it is designed 
to compensate the Exchange for the development of new and innovative 
market features, i.e., Periodic Auctions, while continuing to provide a 
pricing model that the Exchange believes is competitive with pricing 
models offered by other national securities exchanges that offer 
auctions to their customers. The Exchange operates in a highly-
competitive market in which market participants can readily direct 
order flow to competing venues if they deem fee levels at a particular 
venue to be excessive. The proposed rule change reflects a competitive 
pricing structure designed both to compensate the Exchange for the 
introduction of innovative features and allow it to continue to compete 
aggressively with other market centers.
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    \27\ 15 U.S.C. 78f.
    \28\ 15 U.S.C. 78f(b)(4).
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    As discussed, the proposed rule change would introduce pricing that 
is specific to orders executed in a Periodic Auction. Generally, orders 
executed in an auction on other market centers are subject to a 
fee.\29\ However, the Exchange proposes to charge no fee for orders 
that may initiate a Periodic Auction (i.e., orders yielding fee code 
AU) in order to incentivize Members to enter such orders on the 
Exchange. As proposed, orders yielding fee code AD will represent 
displayed Continuous

[[Page 29204]]

Book Orders that add liquidity to the Exchange. Therefore, if such 
orders did not execute in a Periodic Auction, they would be appended 
with fee code B, V, or Y, as applicable, and would be charged a fee of 
$0.00200. Given this, the Exchange proposes that orders yielding fee 
code AD also be charged a fee of $0.00200 so that the fee is congruent 
with orders with the same order instruction that did not execute in a 
Periodic Auction. As discussed above, non-displayed orders that are not 
Periodic Auction Only or Periodic Auction Eligible Orders would be 
appended with fee code AH. Such non-displayed orders would include 
orders that would otherwise yield fee codes HA,\30\ HI,\31\ or MM \32\ 
had they not executed in a Periodic Auction. Orders yielding fee code 
HA are assessed a fee of $0.00240 per share, orders yielding fee code 
HI are assessed a fee of $0.00300 per share, and orders yielding fee 
code MM are assessed a fee of $0.00100 per share. Given this, the 
Exchange proposes to assess a fee of $0.00100 per share to orders 
yielding fee code AH so that there is no disadvantage for a non-
displayed order to have executed in a Periodic Auction rather than on 
the Continuous Book.
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    \29\ See e.g., the Cboe BZX U.S. Equities Fee Schedule, which 
charges fees ranging from $0.00060 up to $0.00100 for orders 
executed in an auction.
    \30\ Fee code ``HA'' is appended to non-displayed orders adding 
liquidity to BYX.
    \31\ Fee code ``HI'' is appended to non-displayed orders adding 
liquidity to BYX that receive price improvement.
    \32\ Fee code ``MM'' is appended to non-displayed orders adding 
liquidity to BYX using a midpoint peg.
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    The Exchange believes that the proposed fees associated with orders 
executed in a Periodic Auction are equitable and not unfairly 
discriminatory because they would apply equally to all orders executed 
in a Periodic Auction and meeting the applicable execution description. 
As discussed, Periodic Auction Only and Periodic Auction Eligible order 
instructions are optional, and a market participant can choose to 
include such an instruction in order to benefit from a free execution 
in the Periodic Auction. Furthermore, while orders entered on the 
Continuous Book that are eligible to participate in a Periodic Auction 
must participate in the Periodic Auction, the proposed fees are 
designed to ensure that such executions occur at a fee that is equal or 
favorable to the fee they would have otherwise been assessed had the 
order not executed in a Periodic Auction.
    The Exchange believes the proposed modifications to the various 
Tiers are equitable and reasonable. As discussed above, if orders 
yielding fee code AD did not execute in a Periodic Auction, they would 
be appended with fee code B, V, or Y, as applicable, and such 
executions would have counted towards the Add Volume Tiers 1 through 5 
and Step-Up Tier. The proposal to include fee code AD to the applicable 
fee codes of the Add Volume Tiers 1 through 5 and Step-Up Tier is 
designed to ensure that orders yielding such fee codes are not 
disadvantaged for having executed in a Periodic Auction rather than the 
Continuous Book. Additionally, the proposed modifications to the 
various required criteria of the Tiers is designed to ensure that 
shares executed in a Periodic Auction are considered in conjunction 
with any volume added to the Exchange. As discussed above, certain 
types of orders that may be executed in a Periodic Auction would be 
included in the Member's or MPID's ADV, ADAV, and Step-Up ADAV if they 
had otherwise not executed in a Periodic Auction (e.g., orders appended 
with fee code B, V, or Y). Therefore, so as not to disadvantage Members 
or MPIDs participating in a Periodic Auction, the Exchange proposes 
that such orders executed in a Periodic Auction will count toward any 
required criteria of a Tier involving ADV, ADAV, or Step-Up ADAV. The 
Exchange believes it is reasonable and equitable not to include volume 
executed in a Periodic Auction in a Member's remove volume because such 
orders would not have removed volume on the Exchange had they not 
executed in a Periodic Auction.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. Rather, the Exchange 
believes that the proposed changes to its fees would promote continued 
competition between the Exchange, other national securities exchanges, 
and off-exchange venues that must continuously compete to offer both 
competitive pricing and services to members and investors. As proposed, 
the Exchange would charge fee ranging from free up to $0.0020 per share 
for orders executed in a Periodic Auction. Charging fees for the use of 
this instruction would both compensate for the development and 
introduction of new and innovative features, and provide continued 
incentives for the Exchange to compete on both cost and the quality of 
its products and services.
    The Exchange believes the proposed new fee codes would not impose 
any burden on intramarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The proposed fee 
codes would apply to all Members equally in that all Members would be 
subject to the applicable fee for executing in the Periodic Auction 
based on its order instruction. The Exchange's proposed pricing is 
based on the characteristics of the order that is executed and has been 
proposed to reflect that no order will be disadvantaged by 
participating in a Periodic Auction as opposed to executing on the 
Exchange's continuous book. In fact, certain orders may benefit from 
executing in a Periodic Auction by receiving a reduced fee than it 
would not have otherwise received had it executed on the Exchange's 
Continuous Book.\33\
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    \33\ For example, orders that would have been appended with fee 
code HA or HI had they not executed in a Periodic Auction would be 
assessed a lesser fee if executed in a Periodic Auction (and thus 
appended with fee code AH).
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    Similarly, the Exchange does not believe the proposed changes to 
the Exchange's tiers will impose any burden on intramarket competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. The revised tiers will continue to be available to all Members 
equally in that all Members are eligible for these tiers, have a 
reasonable opportunity to meet the tiers' criteria, and will receive 
the reduced fee or enhanced rebate on their qualifying orders if such 
criteria is met. The proposed changes to the Exchange's tiers are 
simply designed to ensure that no orders executed in a Periodic Auction 
are excluded from a tier for which they otherwise would have counted 
towards had the order not executed in a Periodic Auction. The Exchange 
does not believe the proposed change to modify the tiers burdens 
competition, but rather, enhances competition as it is intended to 
increase the competitiveness of BYX by ensuring Members are not 
disincentivized to participate in Periodic Auctions and thus may 
increase their participation on the Exchange, providing for additional 
execution opportunities for market participants and improved price 
transparency. Greater overall order flow, trading opportunities, and 
pricing transparency benefits all market participants on the Exchange 
by enhancing market quality and continuing to encourage Members to send 
orders, thereby contributing towards a robust and well-balanced market 
ecosystem.
    Next, the Exchange believes the proposed rule change does not 
impose any burden on intermarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act.

[[Page 29205]]

As previously discussed, the Exchange operates in a highly competitive 
market. In such an environment, the Exchange must continually review, 
and consider adjusting, its fees and rebates to remain competitive with 
other exchanges. Members have numerous alternative venues that they may 
participate on and direct their order flow, including other equities 
exchanges, off-exchange venues, and alternative trading systems. 
Additionally, the Exchange represents a small percentage of the overall 
market. Based on publicly available information, no single equities 
exchange has more than 17% of the market share.\34\ Therefore, no 
exchange possesses significant pricing power in the execution of order 
flow. Indeed, participants can readily choose to send their orders to 
other exchange and 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.'' \35\ 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'. . . .''.\36\ Accordingly, the Exchange does not believe its 
proposed fee changes imposes any burden on competition that is not 
necessary or appropriate in furtherance of the purposes of the Act.
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    \34\ See Cboe Global Markets, U.S. Equities Market Volume 
Summary, Month-to-Date (April 11, 2022), available at: https://markets.cboe.com/us/equities/market_statistics/.
    \35\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496, 37499 (June 29, 2005).
    \36\ 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 \37\ and paragraph (f) of Rule 19b-4 \38\ 
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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    \37\ 15 U.S.C. 78s(b)(3)(A).
    \38\ 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-CboeBYX-2022-016 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-CboeBYX-2022-016. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-CboeBYX-2022-016, and should be 
submitted on or before June 2, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\39\
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    \39\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-10146 Filed 5-11-22; 8:45 am]
BILLING CODE 8011-01-P