Notice2023-15263
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule for the Cboe Silexx Platform
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 19, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 137 (Wednesday, July 19, 2023)</title>
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[Federal Register Volume 88, Number 137 (Wednesday, July 19, 2023)]
[Notices]
[Pages 46291-46292]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-15263]
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SECURITIES AND EXCHANGE COMMISION
[Release No. 34-97895; File No. SR-CBOE-2023-032]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Fees Schedule for the Cboe Silexx Platform
July 13, 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 June 30, 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
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
amendments to the Fees Schedule for the Cboe Silexx platform. 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 (<a href="http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx">http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx</a>), 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 fees for the Cboe Silexx platform
(``Cboe Silexx''), effective July 3, 2023. By way of background, 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. From the Silexx platform (i.e., the collective
front-end and back-end platform), a Silexx user has the capability to
send option orders to U.S. options exchanges, send stock orders to U.S.
stock exchanges (and other trading centers), input parameters to
control the size, timing, and other variables of their trades, and also
includes access to real-time options and stock market data, as well as
access to certain historical data. The Silexx platform is designed so
that a user may enter orders into the platform to send to an executing
broker (including Trading Permit Holders (``TPHs'')) of its choice with
connectivity to the platform, which broker will then send the orders to
Cboe Options (if the broker is a TPH) or other U.S. exchanges (and
trading centers) in accordance with the user's instructions.
In 2020, the Exchange made a new version of the Silexx platform
available, Cboe Silexx, which supports the trading of non-FLEX Options
\3\ and allows authorized Users with direct access to the Exchange.\4\
The Silexx front-end and back-end platforms are a software application
that is installed locally on a user's desktop. Silexx grants users
licenses to use the platform, and a firm or individual does not need to
be a TPH to license the platform. Use of any version of the Silexx
platform is completely optional.
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\3\ In 2019, the Exchange made available an additional version
of the Silexx platform, Silexx FLEX, which supports the trading of
FLEX Options and allows authorized Users with direct access to the
Exchange. See Securities Exchange Act Release No. 87028 (September
19, 2019) 84 FR 50529 (September 25, 2019) (SR-CBOE-2019-061).
\4\ See Securities Exchange Act Release No. 88741 (April 24,
2020) 85 FR 24045 (April 30, 2020) (SR-CBOE-2020-040).
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The Exchange has established a tiered fee structure for Cboe
Silexx, based on Login IDs and set forth in the Silexx Fees
Schedule.\5\ Currently, there is a monthly fee of $399 per Login ID for
the first 8 Login IDs (i.e., Logins IDs 1-8), a fee of $299 per each
additional Login ID for the next 8 Login IDs (i.e., Login IDs 9-16),
and a fee of $199 per each additional Login ID thereafter (i.e., 17+
Login IDs).
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\5\ See Securities Exchange Act Release No. 89830 (September 11,
2020) 85 FR 58093 (September 17, 2020) (SR-CBOE-2020-085).
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The Exchange proposes to amend the quantity of Login IDs for each
monthly fee tier and to update the Silexx Fees Schedule to reflect the
new quantities. Particularly, the Exchange proposes to adopt a monthly
fee of $399 per Login ID for the first 16 Login IDs (i.e., Login IDs 1-
16), a fee of $299 per each additional Login ID for the next 16 Login
IDs (i.e., Login IDs 16-32), and a fee of $199 per each additional
Login ID thereafter (i.e., 33+ Login IDs). The fee will continue to be
waived for the first month for any new individual user; the waiver will
apply to the month the Login ID is first purchased.\6\
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\6\ For example, if an individual User subscribes to a Cboe
Silexx Login ID on July 15th, the Login ID fee would be waived for
the month of July only.
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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.\7\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \8\ 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) \9\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. Additionally, the Exchange also believes the
proposed rule change is consistent with Section 6(b)(4) of the Act,
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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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ Id.
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The Exchange believes that its proposed changes to the quantities
of
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Login IDs applicable to each monthly fee tier are reasonable and
appropriate, because even as amended, the fee structure remain
competitive with similar products available throughout the market,
including other available platform versions on Silexx and a similar
front-end order entry system offered by Nasdaq ISE (i.e., ISE's PrecISE
terminals).\10\ The Exchange understands that the proposed pricing
structure is also competitive with, and in some instances even lower
than, similar unregulated products (for which there is no requirement
for fees related to those products to be public). Additionally, use of
Cboe Silexx is discretionary and not compulsory, as users can choose to
route orders, including to Cboe Options, without the use of the
platform. The Exchange makes the platform available as a convenience to
market participants, who will continue to have the option to use any
order entry and management system available in the marketplace to send
orders to the Exchange and other exchanges; the platform is merely an
alternative offered by the Exchange. The Exchange believes the proposed
fees amendments are equitable and not unfairly discriminatory because
they apply to all market participants uniformly.
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\10\ See Silexx Fees Schedule, which assesses between $200-$600
per month for the remaining Silexx platforms, other than FLEX which
is assessed no fee. See also Nasdaq ISE's Pricing Schedule, Section
7, which provides for a PrecISE Trade Terminal monthly fee of $350
per user for each of the 1st 10 users and $100 per month for each
additional user.
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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 proposed change will not
impose any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because it
relates to an optional platform. The proposed fee amendments will apply
to similarly situated participants uniformly, as described in detail
above. As discussed, the use of the platform continues to be completely
voluntary and market participants will continue to have the flexibility
to use any entry and management tool that is proprietary or from third-
party vendors, and/or market participants may choose any executing
brokers to enter their orders. The Cboe Silexx platform is not an
exclusive means of trading, and if market participants believe that
other products, vendors, front-end builds, etc. available in the
marketplace are more beneficial than the Cboe Silexx platform, they may
simply use those products instead. Use of the functionality is
completely voluntary.
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 change applies only to Cboe Options. Additionally, Cboe Silexx
is similar to types of products that are widely available throughout
the industry, including from some exchanges, at similar prices. To the
extent that the proposed changes make Cboe Options a more attractive
marketplace for market participants at other exchanges, such market
participants are welcome to become Cboe Options market participants.
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 \11\ and paragraph (f) of Rule 19b-4 \12\
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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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#641611080149070b0909010a1017241701074a030b12"><span class="__cf_email__" data-cfemail="057770696028666a6868606b7176457660662b626a73">[email protected]</span></a>. Please include
file number
SR-CBOE-2023-032 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-2023-032. 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 (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). 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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-CBOE-2023-032 and should be
submitted on or before August 9, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-15263 Filed 7-18-23; 8:45 am]
BILLING CODE 8011-01-P
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