Document ID: SEC-2023-0050-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Cboe Exchange, Inc.
Posted Date: 2023-01-19T05:00Z

[Federal Register Volume 88, Number 12 (Thursday, January 19, 2023)]
[Notices]
[Pages 3444-3446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00908]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96644; File No. SR-CBOE-2023-002]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
the Exchange's Fee Schedule To Reflect Adjustments to the Financial 
Industry Regulatory Authority, Inc. General Registration Fees, 
Fingerprinting Fees, and Continuing Education Fees

January 12, 2023.
    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 January 3, 2023, 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

[[Page 3445]]

proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 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 the Exchange's Fee Schedule (``Fee Schedule'') to reflect 
adjustments to the Financial Industry Regulatory Authority, Inc. 
(``FINRA'') General Registration Fees, Fingerprinting Fees, and 
Continuing Education Fees. 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 Fee Schedule regarding 
Regulatory Fees to reflect updates to the FINRA Disclosure Processing 
Fee, Annual System Processing Fee, Fingerprint Processing Fees, and 
Continuing Education Fees.\3\ The applicable fees are collected and 
retained by FINRA via Web CRD \4\ for the registration of associated 
persons of Exchange Trading Permit Holder (``TPH'') organizations that 
are not FINRA members (``Non-FINRA members''). The Exchange is merely 
listing these fees on its Fee Schedule and does not collect or retain 
the fees.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Releases No. 34-90176 (October 
14, 2020), 85 FR 66592 (October 20, 2020) (SR-FINRA-2020-032) 
(Notice of Filing and Immediate Effectiveness of a Proposed Rule 
Change to Adjust FINRA Fees to Provide Sustainable Funding for 
FINRA's Regulatory Mission); and 93928 (January 7, 2022), 87 FR 2193 
(January 13, 2022) (SR-FINRA-2021-034) (Notice of Filing and 
Immediate Effectiveness of a Proposed Rule Change to Amend Section 4 
of Schedule A to the FINRA By-Laws Relating to the Continuing 
Education Fees).
    \4\ FINRA operates Web CRD, the central licensing and 
registration system for the U.S. securities industry. FINRA uses Web 
CRD to maintain the qualification, employment, and disciplinary 
histories of registered associated persons of broker-dealers.
---------------------------------------------------------------------------

    Specifically, the Exchange proposes to amend: (1) the $110 fee for 
the additional processing of each initial or amended Form U-4, Form U-
5, Form BD and amendments that include the initial reporting, 
amendment, certification, or one or more disclosure events or 
proceedings to $155; (2) the $45 FINRA Annual System Processing Fee 
assessed only during Renewals to $70; \5\ and (3) the current $55 per 
continuing education exam fee to $18 per exam. These amendments are 
being made in accordance with a FINRA rule change and a FINRA amendment 
to its By-Laws to adjust these fees.\6\
---------------------------------------------------------------------------

    \5\ This fee change will not be effective until January 2, 2024.
    \6\ Supra note 3.
---------------------------------------------------------------------------

    The Exchange also proposes to amend the following Fingerprint Fees: 
(1) the $29.50 Initial Submission (Electronic) fee to $31.25; \7\ (2) 
the $15 Second Submission (Electronic) Fingerprint Processing Fee to 
$20; (3) the $29.50 Third Submission (Electronic) fee to $31.25; \8\ 
(4) the $44.50 Initial Submission (Paper) fee to $41.25; \9\ and (5) 
the $44.50 Third Submission (Paper) fee to $41.25.\10\ Specifically, 
today, the FBI fingerprint charge is $11.25 \11\ and the FINRA 
electronic Fingerprint Fee will increase from $15 to $20 in 2023.\12\ 
While FINRA did not amend the paper Fingerprint Fee, previously the FBI 
fee was reduced from $14.50 to $11.25.\13\ The paper Fingerprint Fees 
are not currently reflecting the amount assessed by FINRA. The 
amendment to the paper Fingerprint Fees will conform these fees with 
those of FINRA.
---------------------------------------------------------------------------

    \7\ This fee includes a $20.00 FINRA fee and $11.25 FBI fee. See 
https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees.
    \8\ This fee includes a $20.00 FINRA fee and $11.25 FBI fee. See 
https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees.
    \9\ This fee includes a $30.00 FINRA fee and a $11.25 FBI fee. 
See https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees.
    \10\ This fee includes a $30.00 FINRA fee and a $11.25 FBI fee. 
See https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees.
    \11\ See Securities Exchange Act Release No. 34-67247 (June 25, 
2012), 77 FR 38866 (June 29, 2012) (SR-FINRA-2012-030) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change to Amend 
Sections 4 and 6 of Schedule A to the FINRA By-Laws Regarding Fees 
Relating to the Central Registration Depository) (``2012 Rule 
Change'').
    \12\ Supra note 3.
    \13\ See 2012 Rule Change at note 11. The FBI does not charge 
its fee on a second fingerprint transaction when it identifies the 
first set of fingerprints as illegible for the same individual.
---------------------------------------------------------------------------

    The FINRA Web CRD Fees are user-based, and there is no distinction 
in the cost incurred by FINRA if the user is a FINRA-member itself, 
associated with a FINRA-member organization, or a Non-FINRA member. 
Accordingly, the proposed fees mirror those currently assessed by 
FINRA.\14\
---------------------------------------------------------------------------

    \14\ Supra note 3.
---------------------------------------------------------------------------

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.\15\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \16\ 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) \17\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. All similarly situated FINRA-Member organizations 
are subject to the same fee structure, and all must use the CRD system 
for registration and disclosure.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
    \17\ Id.
---------------------------------------------------------------------------

    The Exchange believes the proposed changes to the FINRA Disclosure 
Processing Fee, Annual System Processing Fee, Fingerprint Fees, and 
continuing education fee are reasonable because they are identical to 
the fee changes adopted by FINRA for use of the Web CRD system for 
disclosure, registration, and continuing education of associated 
persons of FINRA Members and their associated persons.\18\ The costs 
are borne by FINRA when a non-FINRA member uses Web CRD for these 
purposes. Thus, the Exchange's Fee Schedule will reflect the current

[[Page 3446]]

rates that will be assessed by FINRA as of January 2, 2023 and January 
2, 2024, as applicable, for use of Web CRD by any Trading Permit 
Holders that are not also FINRA members for the additional processing 
of each initial or amended Form U4, Form U5 or Form BD, (Electronic) 
Fingerprint Processing, registration, and continuing education. The 
Exchange believes the proposed fee changes are equitable and not 
unfairly discriminatory, because the Exchange will not be collecting or 
retaining these fees, and therefore, the Exchange will not be in a 
position to apply them in an inequitable or unfairly discriminatory 
manner.
---------------------------------------------------------------------------

    \18\ Supra note 3.
---------------------------------------------------------------------------

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 believes that 
its proposal will not impose an undue burden on competition because the 
Exchange will not be collecting or retaining these fees, therefore, the 
Exchange will not be in a position to apply them in an inequitable or 
unfairly discriminatory manner. The proposal will reflect the fees that 
will be assessed by FINRA to all market participants (FINRA and non-
FINRA members) for these uses of Web CRD.

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 \19\ and paragraph (f) of Rule 19b-4 \20\ 
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.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78s(b)(3)(A).
    \20\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-2023-002 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-2023-002. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-CBOE-2023-002 and should be submitted on 
or before February 9, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-00908 Filed 1-18-23; 8:45 am]
BILLING CODE 8011-01-P