Notice2025-10530
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule To Increase Its Fees for Certain Cboe Legacy Silexx Platform Versions
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Published
June 11, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 111 (Wednesday, June 11, 2025)</title>
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[Federal Register Volume 90, Number 111 (Wednesday, June 11, 2025)]
[Notices]
[Pages 24680-24682]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-10530]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103200; File No. SR-CBOE-2025-041]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fee Schedule To Increase Its Fees for Certain Cboe Legacy Silexx
Platform Versions
June 5, 2025.
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 2, 2025, 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 fees for specific Cboe Legacy Silexx platform versions. 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="https://www.cboe.com/us/options/regulation/rule_filings/">https://www.cboe.com/us/options/regulation/rule_filings/</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 specific Cboe Legacy Silexx
platform versions (collectively, the ``Legacy Platforms'' as further
described herein), effective June 2, 2025. By way of background, the
Exchange offers several versions of its Silexx platform. Originally,
the Exchange offered the following versions of the Silexx platform:
Basic, Pro, Pro Plus Risk and Buy-Side Manager (``Legacy Platforms'').
The Legacy Platforms are designed so that a User may enter orders into
the platform to send to the executing broker, including TPHs, of its
choice with connectivity to the platform. The executing broker can then
send orders to Cboe Options (if the broker-dealer is a TPH) or other
U.S. exchanges (and trading centers) in accordance with the User's
instructions. Users cannot directly route orders through any of the
Legacy Platforms to an exchange or trading center nor is the platform
integrated into or directly connected to Cboe Option's System. In 2019,
the Exchange made available a new version of the Silexx platform,
Silexx FLEX, which supports the trading of FLEX Options and allows
authorized Users with direct access to the Exchange to establish
connectivity and submit orders directly to the Exchange.\3\ In 2020,
the Exchange made an additional version of the Silexx platform
available, Cboe Silexx, which supports the trading of non-FLEX Options
and allows authorized Users with direct access to the Exchange to
establish connectivity and submit orders directly to the Exchange.\4\
Cboe Silexx is essentially the same platform as Silexx FLEX, with the
same applicable functionality, except that it additionally supports
non-FLEX trading. As noted in previous filings, the Exchange is in the
process of transitioning the Legacy Platforms to the current version of
Cboe Silexx and
[[Page 24681]]
Silexx FLEX.\5\ As the Exchange is actively transitioning away from the
Legacy Platforms, and in the meantime is expending time and resources
to maintain both platforms, the Exchange previously proposed to
increase the fees for the Legacy Platforms.\6\ For this same reason,
the Exchange now proposes to increase the fees again for the Legacy
Platforms.
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\3\ See Securities Exchange Act Release No. 87028 (September 19,
2019) 84 FR 50529 (September 25, 2019) (SR-CBOE-2019-061). Only
Users authorized for direct access and who are approved to trade
FLEX Options may trade FLEX Options via Cboe Silexx. Only authorized
Users and associated persons of Users may establish connectivity to
and directly access the Exchange, pursuant to Rule 5.5 and the
Exchange's technical specifications.
\4\ See Securities Exchange Act Release No. 88741 (April 24,
2020) 85 FR 24045 (April 30, 2020) (SR-CBOE-2020-040). Only
authorized Users and associated persons of Users may establish
connectivity to and directly access the Exchange, pursuant to Rule
5.5 and the Exchange's technical specifications.
\5\ See Securities Exchange Release No. 98722 (October 11, 2023)
88 FR 71619 (October 17, 2023) (SR-CBOE-2023-060). Only authorized
Users and associated persons of Users will continue to be able to
establish connectivity to and directly access the Exchange, pursuant
to Rule 5.5 and the Exchange's technical specifications.
Unauthorized Users will not be able to connect directly to the
Exchange. The new Cboe Silexx platform will function in the same
manner as the Legacy Platforms versions currently available to
Users: it will be completely voluntary; orders entered through the
platform will receive no preferential treatment as compared to
orders electronically sent to Cboe Options in any other manner;
orders entered through the platform will be subject to current
trading rules in the same manner as all other orders sent to the
Exchange, which is the same as orders that are sent through the
Exchange's System today; the Exchange's System will not distinguish
between orders sent from Silexx and orders sent in any other manner;
and Silexx will provide technical support, maintenance and user
training for the new platform version upon the same terms and
conditions for all Users. The Exchange plans to decommission the
Legacy Platforms at a future to-be-determined date, at which time
the Legacy Platforms will be unavailable to users.
\6\ See Securities Exchange Release No. 102185 (January 14,
2025) 90 FR 7200 (January 21, 2025) (SR-CBOE-2025-001); Securities
Exchange Release No. 102398 (February 11, 2025) 90 FR 9781 (February
18, 2025) (SR-CBOE-2025-005); and Securities Exchange Release No.
102724 (March 25, 2025) 90 FR 14288 (March 31, 2025) (SR-CBOE-2025-
016).
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The Exchange currently charges the following monthly fees per Login
ID for the following platforms: $625 for Basic, $625 for Pro, $950 for
Pro Plus Risk and $475 for Buy-Side Manager. The Exchange proposes to
amend these fees to the following monthly fee per Login ID: $938 for
Basic, $938 for Pro, $950 for Pro Plus Risk and $715 for Buy-Side
Manager. As explained further herein, the Exchange will not be
increasing the monthly price for the Pro Plus Risk Users.
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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In particular, the Exchange believes the proposed fee increases for
the Legacy Platforms are reasonable, equitable, and not unfairly
discriminatory because the fee will apply to all users of the Legacy
Platforms. The Exchange notes that it is not increasing the price for
Pro Plus Risk at this time, as many Pro Plus Risk Users have not moved
yet due to managing other users. Pro Plus Risk Users are unable to
``turn-off'' their logins until all of its Basic, Pro, and/or Buy-Side
Managers users are no longer active on the Legacy Platforms. To account
for this nuance and to mitigate costs for Pro Plus Risk Users, the
Exchange is proposing to leave the cost as is at this time.
Additionally, the Exchange believes the proposed fee is reasonable
as it accounts for administrative costs that Cboe Silexx is incurring,
but not charging users, to maintain support for Legacy Platforms while
Cboe Silexx transitions away from the Legacy Platforms. The Exchange
still maintains fixed overhead costs for maintain two technology stacks
(e.g., server space and rack space) even as there are fewer users on
the Legacy Platforms. The Exchange is also dedicating increased
personnel resources as it supports these optional platforms. As noted
earlier, the Exchange is in the process of transitioning the Legacy
Platforms to the current version of Cboe Silexx and Silexx FLEX. The
Exchange believes that increasing the fees for the Legacy Platforms
also serves as an incentive to market participants to transition to the
current version of Cboe Silexx from the Legacy Platforms.\10\ The
Exchange believes that increasing the fees for the Legacy Platforms, as
opposed to announcing a hard cut-off date at this time, is a better
practice to not over exhaust personnel resources that are assisting
with the migration to prevent an influx of users transitioning coming
in at the last minute prior to a cut-over date. The Exchange notes that
use of Cboe Silexx and the Legacy Platforms are entirely optional--this
is simply one method to connect to the Exchange and there are a wide
variety of alternative order entry management systems (both offered by
other exchange and non-exchanges alike) to access the Exchange.\11\
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\10\ The Exchange has previously introduced incentives to assist
in the migration from the Legacy Platforms to the current version of
Cboe Silexx and Silexx Flex by introducing a Data Management fee for
users of Legacy Platforms and waiving duplicative Login ID and
Market Data Feed fees for Cboe Silexx during a user's transition
period. See Securities Exchange Release No. 99111 (December 7, 2023)
88 FR 86411 (December 13, 2023) (SR-CBOE-2023-064) and Securities
Exchange Release No. 98722 (October 11, 2023) 88 FR 71619 (October
17, 2023) (SR-CBOE-2023-060).
\11\ See e.g., Trafix, WEX, Fidessa, Bloomberg Dash OMS.
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Finally, the Exchange reiterates that use of the platform is
discretionary and not compulsory, as users can choose to route orders,
including to Cboe Options, without the use of the platform. Indeed, the
Legacy Platforms are 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 or cost effective
than the Legacy Platforms (or the current version of Cboe Silexx and
Silexx FLEX), they may simply use those products instead, including for
routing orders to the Exchange (indirectly or directly if they are
authorized Users). 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.
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 the
proposed rule change will
[[Page 24682]]
apply to similarly situated participants uniformly, as described in
detail above.
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, as noted
herein, the Legacy Platforms are similar to types of products that are
widely available throughout the industry, including from some exchanges
and the current version of Cboe Silexx and Silexx FLEX, at similar
prices. Further, the proposed rule change relates to an optional
platform--access to the Exchange is not contingent accessing any
version of Cboe Silexx. 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 Legacy
Platforms are 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 Legacy
Platforms (or the current version of Cboe Silexx and Silexx FLEX), they
may simply use those products instead, including for routing orders to
the Exchange (indirectly or directly if they are authorized Users). Use
of the functionality is completely voluntary. In fact, some Users may
choose at this time to switch to a different vendor for order entry
management system at this time as opposed to choosing to migrate.
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 \12\ and paragraph (f) of Rule 19b-4 \13\
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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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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#b2c0c7ded79fd1dddfdfd7dcc6c1f2c1d7d19cd5ddc4"><span class="__cf_email__" data-cfemail="2a585f464f07494547474f445e596a594f49044d455c">[email protected]</span></a>. Please include
file number SR-CBOE-2025-041 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-2025-041. 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-2025-041 and should be
submitted on or before July 2, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-10530 Filed 6-10-25; 8:45 am]
BILLING CODE 8011-01-P
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