Notice2025-17333

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing of Amendment No. 1 and Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, To Amend Rule 11.21 To Allow an RMO To Enter a Retail Order Onto the Exchange in a Principal Capacity

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
September 10, 2025

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 90 Issue 173 (Wednesday, September 10, 2025)</title>
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[Federal Register Volume 90, Number 173 (Wednesday, September 10, 2025)]
[Notices]
[Pages 43668-43675]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17333]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-103878; File No. SR-CboeEDGX-2025-035]


Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice 
of Filing of Amendment No. 1 and Order Instituting Proceedings To 
Determine Whether To Approve or Disapprove a Proposed Rule Change, as 
Modified by Amendment No. 1, To Amend Rule 11.21 To Allow an RMO To 
Enter a Retail Order Onto the Exchange in a Principal Capacity

September 5, 2025.
    On May 21, 2025, Cboe EDGX Exchange, Inc. (``EDGX'' or the 
``Exchange'') filed with the Securities and Exchange Commission

[[Page 43669]]

(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to (i) amend Rule 11.21(a)(2) to allow a Retail 
Member Organization to enter a Retail Order onto the Exchange in a 
principal capacity, provided the requirements of proposed Rule 11.21(g) 
are satisfied; (ii) codify in proposed new Rule 11.21(g) additional 
requirements a Retail Member Organization must comply with in order to 
enter Retail Orders as principal; and (iii) amend Rule 11.21(b)(6) to 
require that Retail Member Organizations have in place policies and 
procedures reasonably designed to ensure compliance with proposed Rule 
11.21(g), as well as to ensure that the Retail Member Organization can, 
upon request by the Exchange, produce documentation evidencing 
compliance with the requirements of Rule 11.21(g). The proposed rule 
change was published for comment in the Federal Register on June 10, 
2025.\3\ On July 25, 2025, pursuant to Section 19(b)(2) of the Act,\4\ 
the Commission designated a longer period within which to approve the 
proposed rule change, disapprove the proposed rule change, or institute 
proceedings to determine whether to disapprove the proposed rule 
change.\5\ On September 4, 2025, the Exchange filed Amendment No. 1 to 
the proposed rule change, as described in Items I and II below, which 
Items have been prepared by the Exchange.\6\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 103182 (June 4, 
2025), 90 FR 24476. The Commission has not received any comments on 
the proposed rule change.
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 103546, 90 FR 35954 
(July 30, 2025). The Commission designated September 8, 2025 as the 
date by which the Commission shall approve or disapprove, or 
institute proceedings to determine whether to disapprove, the 
proposed rule change.
    \6\ Amendment No. 1 amends and supersedes the original filing in 
its entirety. Amendment No. 1 is available at srcboeedgx2025035-
648447-1943494.pdf.
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    The Commission is publishing this notice and order to solicit 
comment on the proposed rule change, as modified by Amendment No. 1, 
from interested persons and to institute proceedings under Section 
19(b)(2)(B) of the Act \7\ to determine whether to approve or 
disapprove the proposed rule change, as modified by Amendment No. 1.
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    \7\ 15 U.S.C. 78s(b)(2)(B).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') proposes to 
(i) amend Rule 11.21(a)(2), to allow a Retail Member Organization to 
enter a Retail Order onto the Exchange in a principal capacity, 
provided the requirements of proposed Rule 11.21(g) are satisfied; (ii) 
codify in proposed new Rule 11.21(g) additional requirements a Retail 
Member Organization must comply with in order to enter Retail Orders as 
principal; and (iii) amend Rule 11.21(b)(6) to require that Retail 
Member Organizations have in place policies and procedures reasonably 
designed to ensure compliance with proposed Rule 11.21(g), as well as 
to ensure that the Retail Member Organization can, upon request by the 
Exchange, produce documentation evidencing compliance with the 
requirements of Rule 11.21(g). The Exchange initially submitted this 
rule filing SR-CboeEDGX-2025-035 to the Securities and Exchange 
Commission (``Commission'') on May 21, 2025 (the ``Initial 
Filing'').\8\ This Amendment No. 1 supersedes the Initial Filing and 
replaces it in its entirety. The text of the proposed rule change is 
provided in Exhibit 5.
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    \8\ Securities Exchange Act Release No. 34-103182 (May 21, 
2025), 90 FR 24476 (June 10, 2025) (SR-CboeBYX-2025-035) (``Initial 
Filing'').
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    The text of the proposed rule change is also available on the 
Exchange's website (<a href="http://markets.cboe.com/us/options/regulation/rule_filings/edgx/">http://markets.cboe.com/us/options/regulation/rule_filings/edgx/</a>) and at the Exchange's Office of the Secretary.

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 (i) amend Rule 11.21(a)(2) to allow a 
Retail Member Organization (``RMO'') \9\ to enter a Retail Order \10\ 
onto the Exchange in a principal capacity, provided the requirements of 
Rule 11.21(g) are satisfied; (ii) codify in proposed new Rule 11.21(g) 
additional requirements a Retail Member Organization must comply with 
in order to enter Retail Orders as principal; and (iii) amend Rule 
11.21(b)(6) requiring that Retail Member Organizations have in place 
policies and procedures reasonably designed to ensure compliance with 
proposed Rule 11.21(g), as well to ensure that the Retail Member 
Organization can, upon request by the Exchange, produce documentation 
evidencing compliance with the requirements of Rule 11.21(g).
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    \9\ A ``Retail Member Organization'' or ``RMO'' is a Member (or 
a division thereof) that has been approved by the Exchange under 
Rule 11.21 to submit Retail Orders. See Rule 11.21(a)(1).
    \10\ A Retail Order is currently defined as ``an agency or 
riskless principal order that meets the criteria of FINRA Rule 
5320.03 that originates from a natural person and is submitted to 
the Exchange by a Retail Member Organization, provided that no 
change is made to the terms of the order with respect to price or 
side of market and the order does not originate from a trading 
algorithm or any other computerized methodology.'' See Rule 
11.21(a)(2).
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    These proposed amendments are in response to feedback received by 
the Exchange from certain RMOs that have stated that the ability to 
enter orders in a principal capacity would better enable them to 
provide their retail customers with better priced executions. 
Currently, RMOs are only able to enter Retail Orders onto the Exchange 
in either an agency or riskless principal capacity. Specifically, these 
RMOs have explained that the ability to handle Retail Orders in a 
principal capacity will enable them to provide their retail customers 
with post-execution price improvement that is in addition to any price 
improvement received on the Exchange. Because the price ultimately 
allocated to the retail customer by the RMO would be different from 
(and notably, would always be better priced than) the price the 
principal order received on the Exchange, such Retail Orders would not 
currently qualify as riskless principal transactions.\11\ Accordingly, 
because Exchange rules currently only permit the entry of Retail Orders 
in a riskless principal or agency

[[Page 43670]]

capacity, such post-execution price improvement is not currently 
permitted.
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    \11\ A ``riskless principal'' transaction is a transaction in 
which a member, after having received an order to buy (sell) a 
security, purchases (sells) the security as principal and satisfies 
the original order by selling (buying) as principal at the same 
(emphasis added) price (the offsetting ``riskless'' leg). See FINRA 
Rule 5320.03--``Riskless Principal Exception'', available at: 
<a href="https://www.finra">https://www.finra</a>./rules-guidance/rulebooks/finra-rules/5320.
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    The Exchange notes that the ultimate determination as to whether an 
RMO may choose to execute in this manner is not something to which the 
Exchange has visibility. Indeed, such a decision will vary from RMO to 
RMO. Generally speaking, RMOs may choose to execute in this manner to 
satisfy certain execution quality and price improvement benchmarks RMOs 
have applied to their underlying retail order(s), as well as to simply 
provide additional price improvement as a service to their retail 
customer(s) or retail broker customers. Because principal orders 
entered in this manner are for the benefit of the underlying retail 
customer(s)--i.e., to provide retail orders with better priced 
executions--the Exchange believes that such transactions are consistent 
with the definition of Retail Order, and the purposes of EDGX's Retail 
Priority Program (discussed infra).
Current Definition of ``Retail Order''
    Currently, Rule 11.21(a)(2) provides that a Retail Order is an 
agency order, or a riskless principal order that meets the criteria of 
FINRA Rule 5320.03.\12\ A Retail Order must originate from a natural 
person and must be entered onto the Exchange by an RMO. The RMO is not 
permitted to change the terms of the order with respect to the price or 
side of the market, and a Retail Order may not originate from a trading 
algorithm or any other computerized methodology. An RMO is a Member (or 
a division thereof) that has been approved by the Exchange under EDGX 
Rule 11.21 to submit Retail Orders. Pursuant to EDGX Rule 11.21(b), 
which describes the qualification and application process for becoming 
a Retail Member Organization, any member may qualify as a Retail Member 
Organization if it conducts a retail business or routes retail orders 
on behalf of another broker-dealer.
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    \12\ See FINRA Rule 5320.3, Riskless Principal Exception, 
available at: <a href="https://www.finra">https://www.finra</a>.org/rules-guidance/rulebooks/finra-
rules/5320.
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Proposed Definition of Retail Order
    The Exchange believes that retail customers are a key part of the 
trading ecosystem, and as such, has designed products and programs to 
execute Retail Orders quickly, with high execution quality and at a 
low-cost, with added pricing incentives. For instance, EDGX's Retail 
Priority Program seeks to enhance execution quality for individual 
customers who trade U.S. equities on EDGX. Retail Priority offers a 
distinct allocation model, which differs from the traditional time-
based allocation model used by most U.S. equities market centers that 
allocate trades to orders that arrive first in time at each price 
point. Retail Priority focuses on improving execution quality and 
trading outcomes for individual customers, and the firms facilitating 
their orders, by reducing their time to execution. Under Retail 
Priority, individual customers' displayed limit orders will post at the 
front of the order queue for same-priced orders submitted on EDGX. 
Additionally, EDGX offers retail-only pricing incentives for low cost 
remove and premium rebates. EDGX also offers RMOs discounts on port 
fees and market data, and retail tiers give growing retail firms 
additional rebates.
    EDGX offers RMOs the ability to participate in the Exchange's 
Retail Priority program, which seeks to enhance execution quality for 
individual customers who trade U.S. equities on EDGX. Specifically, 
Retail Priority offers a distinct patent-pending allocation model, 
which differs from the traditional time-based allocation model used by 
most U.S. equities market centers that allocate trades to orders that 
arrive first in time at each price point. The Retail Priority model 
focuses on improving execution quality and trading outcomes for 
individual customers, and the firms facilitating their orders, by 
reducing their time to execution. Under the mechanism, the displayed 
portion of an individual customers' Retail Priority Order \13\ will 
post at the front of the order queue for same-priced orders submitted 
on EDGX. While Exchange rules currently permit the routing of Retail 
Orders, the Exchange does not currently identify Retail Orders as such 
when routing to away exchanges, and the Exchange does not propose to do 
so with this current proposal.
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    \13\ A Retail Priority Order is a Retail Order, as defined in 
Rule 11.21(a)(2), that is entered on behalf of a person that does 
not place more than 390 equity orders per day on average during a 
calendar month for its own beneficial account(s). See Exchange Rule 
11.9, Interpretations and Policies .01. The 390 order count is 
considered for each distinct beneficial retail account, and where a 
Retail Order is entered on behalf of multiple retail customers, the 
390 order limitation is considered for each beneficial retail 
account For the purposes of calculating the 390 equity order count, 
the Exchange rules contemplate parent and child orders. 
Specifically, a parent order that is broken into multiple ``child'' 
orders by an RMO counts as one order even if the child orders are 
routed across multiple exchanges. Exchange rules also contemplate 
Cancel/Replace messages when calculating the 390 order count. Any 
order that cancels and replaces an existing order, counts as a 
separate order, except that an order that cancels and replaces any 
child order resulting from a parent order that is broken into 
multiple child orders does not count as a new order. Importantly, 
the Exchange notes that this current proposal will not change how 
the Exchange determines whether a beneficial account has exceeded 
the 390 order count.
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    The Exchange now seeks to amend Rule 11.21(a)(2) to provide that an 
RMO may also enter a Retail Order in a principal capacity, provided the 
RMO satisfies the conditions codified in proposed Rule 11.21(g). As 
noted above, some RMOs have expressed a desire to enter Retail Orders 
onto the Exchange on behalf of their retail customers in a principal 
capacity and subsequently provide such orders with post-execution price 
improvement in addition to any price improvement received on the 
Exchange. Because the RMO will allocate its Exchange execution to its 
retail customer at a different (and better) price than it received on 
the Exchange, such transaction can only be done in a principal 
capacity. To better illustrate the order flow of a Retail Order being 
executed in a principal capacity by an RMO, consider the following 
example:
    <bullet> An RMO has an order in hand from its retail customer to 
sell 100 shares of stock XYZ.
    <bullet> The RMO elects to send a Retail Order to the Exchange on 
behalf of its retail customer;
    <bullet> The Retail Order is accepted and executed by the Exchange 
at a price improved price of $10.005;
    <bullet> The Exchange sends the execution message back to the RMO 
with the execution price of $10.005;
    <bullet> Based on their own internal best execution practices, or 
execution quality metrics, the RMO may then elect to provide their 
retail customer's order with price improvement in addition to that 
already received on the Exchange.
    <bullet> For the purposes of this example, assume that the RMO 
indeed chooses to provide their retail customer with additional price 
improvement of $0.005, for a final execution price of $10.01.\14\ This 
transaction is executed as principal, and is a separate \15\ 
transaction executed off-exchange by and between the RMO and its retail 
customer.
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    \14\ Here, the RMO is not permitted to execute this transaction 
in a riskless principal capacity, because the RMO is not providing 
its retail customer with the same execution price it received on the 
Exchange. By permitting the RMO to use a principal order, though, 
the RMO would be able to provide its retail customer with price 
improvement in addition to that already received on the Exchange.
    \15\ The Exchange notes that for the purposes of determining the 
390 order count, the Exchange will only count the on-Exchange 
transaction. The off-exchange transaction, printed to the TRF will 
not be counted; i.e., a Retail Order entered principally on the 
Exchange will only count as one transaction.
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    <bullet> This transaction and its execution price of $10.01 will be 
reported to the Transaction Reporting Facility (``TRF'')

[[Page 43671]]

consistent with FINRA off-exchange reporting rules and guidance.\16\
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    \16\ See ``Trade Reporting Frequently Asked Questions'', Section 
309: Reporting Customer Price Adjustment Transactions, available at: 
<a href="https://www.finra">https://www.finra</a>.org/filing-reporting/market-transparency-
reporting/trade-reporting-faq#309.
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    Importantly, the Exchange intends for Retail Orders to be entered 
on behalf of only bona fide retail customers. As such, the Exchange now 
also proposes to introduce new Rule 11.21(g), Retail Orders Entered as 
Principal, to codify requirements designed to ensure that Retail Orders 
by RMOs in a principal capacity are in fact on behalf of retail 
customers. Specifically, the Exchange seeks to codify that any Retail 
Orders entered onto the Exchange in a principal capacity by an RMO on 
behalf of its retail customer(s) must meet the following criteria, 
which are similar to the requirements under FINRA Rule 5320.03's, 
Riskless Principal Exception: (i) the RMO must be in receipt of and 
actively managing, at the time of order entry onto the Exchange, a 
Retail Order it seeks to execute on behalf of a retail customer (ii) 
the Retail Order entered by an RMO as principal must solely be for the 
purpose of providing post-execution price improvement \17\ to the 
retail customer(s) in addition to any price improvement received on the 
Exchange; (iii) the size of the principal order shall not be greater 
than that of the underlying order(s) entered on behalf of the retail 
customer(s); and (iv) the total number of shares executed in a 
principal capacity must be fully allocated to the underlying retail 
customer(s) in a consistent manner and within 60-seconds of execution.
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    \17\ Should an RMO enter a Retail Order principally but elect 
not to provide post-execution price improvement the Exchange would 
expect that the RMO would allocate that execution back to their 
retail customer(s) in a riskless principal capacity, in which case 
such transaction must comply with existing Exchange Rule 11.21(a)(2) 
and FINRA Rule 5320.03.
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    The monitoring for compliance with these requirements will occur 
post-trade, as part of the Exchange's surveillance functions. 
Importantly, the Exchange's Regulatory and Surveillance departments 
already possess the capability to review Retail Orders to ensure that 
those entered in either a principal or riskless principal transaction 
were indeed entered and executed by the RMO on behalf of a retail 
customer.\18\ For instance, the Exchange's Regulatory and Surveillance 
teams currently review Retail Orders entered as principal to determine 
whether such orders were in fact ultimately executed as riskless 
principal \19\ and fully allocated to the RMO's end retail customer, at 
the same price, in accordance with FINRA Rule 5320.03. While the 
proposed amendment would enable RMOs to allocate a trade to their end 
retail customer at a different price, this would not diminish the 
Exchange's Regulatory and Surveillance teams' ability to effectively 
regulate RMOs' compliance with the Exchange's Retail Order rules. 
Rather, the Regulatory and Surveillance functions would instead need 
only monitor for Retail Orders that were entered principally, but not 
ultimately executed as riskless principal, and further inquire with the 
RMO that (i) the RMO was in receipt of and actively managing, at the 
time of order entry onto the Exchange, a Retail Order it sought to 
execute on behalf of a retail customer (ii) the Retail Order entered by 
an RMO as principal was solely be for the purpose of providing post-
execution price improvement to the retail customer(s) in addition to 
any price improvement received on the Exchange; (iii) the size of the 
principal order was not greater than that of the underlying order(s) 
entered on behalf of the retail customer(s); and (iv) the total number 
of shares executed in a principal capacity was fully allocated to the 
underlying retail customer(s) in a consistent manner and within 60-
seconds of execution.
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    \18\ The Exchange permits RMOs to enter Retail Orders onto the 
Exchange in an agency, principal, or riskless principal capacity. 
See ``Capacity'' in ``Cboe US Equities BOE Specification'', pg. 62, 
available at: <a href="https://cdn.cboe.com/resources/membership/Cboe_US_Equities_BOE_Specification.pdf">https://cdn.cboe.com/resources/membership/Cboe_US_Equities_BOE_Specification.pdf</a>; see also ``Order Capacity'' 
in ``Cboe US Equities FIX Specification,'' p. 21, available at: 
<a href="https://cdn.cboe.com/resources/membership/Cboe_US_Equities_FIX_Specification.pdf">https://cdn.cboe.com/resources/membership/Cboe_US_Equities_FIX_Specification.pdf</a>.
    \19\ As a general matter the exchange notes that riskless 
principal transactions are typically entered into the marketplace as 
principal orders, buying the security for itself and then, post-
execution, selling the security to its end-customer. If the broker-
dealer sells its customer the security at the same price for which 
it purchased the security, this is typically called a riskless 
principal transaction. This transaction is known as ``riskless'' 
because the broker-dealer purchases the security, knowing that it 
will sell the security to its customer at the same price. See 
generally SEC Office of Education and Advocacy, ``Investor Bulletin: 
How to Read Confirmation Statements,'' available at: <a href="https://www.sec.gov/investor/alerts/ib_confirmations.pdf">https://www.sec.gov/investor/alerts/ib_confirmations.pdf</a>.
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    In this regard, whether the order is executed principally or as 
riskless principal, the Exchange will still have the ability to 
effectively enforce its rules. Indeed, the Exchange's Regulatory and 
Surveillance functions already monitor for Retail Orders that are 
entered as riskless principal as well as principal. Notably, for the 
full year 2024, 25.5% of all Retail Orders entered across each of 
Cboe's four equities exchanges, were entered as principal, compared to 
only 6.4% entered as riskless principal. Therefore, as a practical 
matter, the Exchange is accustomed to conducting surveillance of Retail 
Orders entered as principal, and the proposed amendment should not pose 
any additional issues.
    Importantly, for the purpose of determining whether an order should 
qualify as a Retail Order, the Exchange believes that from a 
surveillance perspective, principal orders and riskless principal 
orders are essentially the same order type. In addition to how it 
monitors and surveils Retails Orders (discussed directly above), EDGX 
notes that there is no difference between a Retail Order entered as a 
riskless principal order that meets the requirements of FINRA Rule 
5320.03, and a principal order, that meets the requirements of the 
proposed rule. As noted above, a riskless principal order is a 
transaction in which a Member, after having received an order to buy 
(sell) a security, purchases (sells) the security as principal and, 
contemporaneously, satisfies the original order by selling (buying) as 
principal at the same price. A riskless principal order involves two 
orders, the execution of one being dependent upon the receipt of the 
execution of the other. As such, there is no ``risk'' in the 
interdependent transactions when completed. Notably, riskless principal 
orders are typically entered onto exchanges in a principal capacity, 
and the riskless principal leg of the transaction is reflected only via 
a corresponding non-media trade report to a FINRA Facility.\20\ In this 
regard, the Exchange believes that the results of a riskless principal 
transaction and a principal transaction are the same: the customer will 
receive an execution while the involved Member acts as an intermediary 
to effect the transaction. However, instead of receiving the same 
Exchange execution price, the retail customer will now receive a better 
priced execution because the RMO is now able to commit capital to that 
order, as principal. Existing rule text does not permit this scenario 
because the current definition of Retail Order only permits an RMO to 
trade in an agency or riskless principal capacity.

[[Page 43672]]

When trading as agent, the RMO is simply passing the execution back to 
its retail customer(s) at the price received on-Exchange. If trading as 
riskless principal, the RMO trades principally on the Exchange, but 
then allocates to the execution, at the same price, back to its retail 
customer in a riskless transaction.\21\ In this regard, by trading 
principally, an RMO may instead use its financial balance sheet and 
principal trading account to provide additional price improvement to a 
retail customer's order in a separate transaction. Here, the RMO is not 
permitted to execute this transaction in a riskless principal capacity, 
because the RMO is not providing its retail customer with the same 
execution price it received on the Exchange. By permitting the RMO to 
use a principal order, though, the RMO would be able to provide its 
retail customer with price improvement in addition to that already 
received on the Exchange.
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    \20\ FINRA Members can report riskless principal transactions by 
submitting a single tape report to a FINRA Facility in the same 
manner as an agency transaction, marked with a ``riskless 
principal'' capacity indicator, excluding the mark-up or mark-down, 
commission-equivalent or other fee. Alternatively, members can 
report an OTC riskless principal transaction by submitting two (or 
more, as necessary) reports: (1) a tape report to reflect the 
initial leg of the transaction with a capacity of principal; and (2) 
a non-tape (regulatory or clearing-only) report to reflect the 
offsetting ``riskless'' leg of the transaction with a capacity of 
riskless principal.
    \21\ Id.
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Existing RMO Application Process/Requirements & Proposed Policies and 
Procedures
    The Exchange also notes that the proposed amendment does not 
present any new or material risks that the Exchange has not already 
mitigated through its RMO application process for orders entered onto 
the Exchange as Retail Orders on behalf of retail customers. Currently, 
Rule 11.21(b)(1)-(6) sets forth an objective process by which a Member 
organization applies to become an RMO. First, to qualify as a Retail 
Member Organization, a Member must conduct a retail routing business or 
route retail orders on behalf of another broker-dealer.\22\ To become 
an RMO, a Member is required to submit an application form,\23\ 
supporting documentation (e.g., marketing literature, website 
screenshots, and other publicly disclosed materials) confirming that 
the applicant's order flow would meet the requirements of the Retail 
Order definition,\24\ and an attestation \25\ in a form prescribed by 
the Exchange, that substantially all orders submitted as Retail Orders 
will qualify as such under the Rule.\26\ After submission of these 
materials, various Exchange functions, including legal and operations, 
review the application to assess whether the applicant's order flow 
complies with Exchange rules.\27\ Applicants are then notified, in 
writing, of the Exchange's decision.\28\
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    \22\ See Rule 11.21(b)(1).
    \23\ See Rule 11.21(b)(2)(A).
    \24\ See Rule 11.21(b)(2)(B).
    \25\ See, ``Retail Member Organization--Broker-Dealer Customer 
Agreement'', and ``Broker-Dealer Customer Annual Attestation'' of 
``Cboe EDGX Exchange, Inc., Retail Member Organization 
Application'', available at: <a href="https://cdn.cboe.com/resources/membership/_Retail_Member_Organization_Application.pdf">https://cdn.cboe.com/resources/membership/_Retail_Member_Organization_Application.pdf</a>. Following 
approval of this proposal, the Exchange will make conforming edits 
to the attestation reflecting the changes to the definition of 
``Retail Order'', as well as the amendments made to the 
Interpretations and Policies to Rule 11.21.
    \26\ See Rule 11.21(b)(2)(C).
    \27\ See Rule 11.21(b)(3).
    \28\ Id.
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    Furthermore, all RMOs must have in place policies and procedures 
reasonably designed to ensure that it will only designate orders as 
Retail Orders if all requirements of a Retail Order are met.\29\ These 
policies and procedures must require the Member to (i) exercise due 
diligence before entering a Retail Order to ensure that entry as a 
Retail Order is in compliance with the requirements of the Rule, and 
(ii) monitor whether orders entered as Retail Orders meet the 
applicable requirements.\30\ If an RMO does not itself conduct a retail 
business but routes Retail Orders on behalf of another broker-dealer, 
the RMO's supervisory procedures must be reasonably designed to ensure 
that the orders it receives from the other broker-dealer that are 
designated as Retail Orders meets the definition of a Retail Order.\31\ 
In these cases, the RMO must (i) obtain an annual written 
representation, in a form acceptable to the Exchange, from each other 
broker-dealer that sends the RMO orders to be designated as Retail 
Orders that the entry of such orders as Retail Orders will be in 
compliance with the requirements of Rule 11.21; and (ii) monitor 
whether Retail Order flow routed on behalf of other such broker-dealers 
meets the applicable requirements.\32\ Importantly, the Exchange's 
regulatory and surveillance functions provide appropriate oversight by 
the Exchange by monitoring for continued compliance with the terms of 
these provisions. If an RMO fails to abide by the Retail Order 
requirements, the Exchange in its sole discretion may disqualify a 
Member from its status as an RMO.\33\ The proposed amendment will not 
eliminate or diminish the strength of the existing protections 
currently codified in Rule 11.21.
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    \29\ See Rule 11.21(b)(6).
    \30\ Id.
    \31\ Id.
    \32\ Id.
    \33\ See Rule 11.21(b)(d)(1).
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    In addition, as noted further above, the Exchange has proposed 
requirements pursuant to proposed Rule 11.21(g) designed to ensure that 
Retail Orders entered in a principal capacity are in fact entered on 
behalf of bona fide retail customers, and that such principal orders 
comply with specific requirements. Namely, when entering a Retail Order 
onto the Exchange for execution in a principal capacity, an RMO must 
comply with the following requirements, which are similar to those 
required by FINRA Rule 5320.03's Riskless Principal Exception 
requirements: (i) the RMO must be in receipt of and actively managing, 
at the time of order entry onto the Exchange, a Retail Order it seeks 
to execute on behalf of a retail customer (ii) the Retail Order entered 
by an RMO as principal must solely be for the purpose of providing 
post-execution price improvement \34\ to the retail customer(s) in 
addition to any price improvement received on the Exchange; (iii) the 
size of the principal order shall not be greater than that of the 
underlying order(s) entered on behalf of the retail customer(s); and 
(iv) the total number of shares executed in a principal capacity must 
be fully allocated to the underlying retail customer(s) in a consistent 
manner and within 60-seconds of execution.
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    \34\ Should an RMO enter a Retail Order principally but elect 
not to provide post-execution price improvement the Exchange would 
expect that the RMO would allocate that execution back to their 
retail customer(s) in a riskless principal capacity, in which case 
such transaction must comply with existing Exchange Rule 11.21(a)(2) 
and FINRA Rule 5320.03.
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    In conjunction with these requirements, the Exchange also proposes 
to amend Rule 11.21(b)(6), to codify the requirements that RMOs 
choosing to enter Retail Orders in a principal capacity must have in 
place policies and procedures reasonably designed to ensure compliance 
with the requirements of 11.21(g), and to ensure the RMO is able to, 
upon request, provide the Exchange with documentation evidencing 
compliance with such requirements. Moreover, if a Retail Member 
Organization does not itself conduct a retail business, but chooses to 
execute in a principal capacity Retail Orders it manages on behalf of 
another broker-dealer, the Retail Member Organization's supervisory 
procedures must be reasonably designed to ensure that the orders it 
receives from such other broker-dealer that are designated as Retail 
Orders meet the definition of a Retail Order. The Retail Member 
Organization must: (i) obtain an annual written representation, in a 
form acceptable to the Exchange, from each other broker-dealer that 
sends the Retail Member Organization orders to be designated as Retail 
Orders that entry of

[[Page 43673]]

such orders as Retail Orders will be in compliance with the 
requirements of this Rule; and (ii) monitor whether Retail Order flow 
routed on behalf of such other broker-dealers meets the applicable 
requirements.
    Finally, the Exchange believes it important to note that as Members 
of the Exchange, RMOs must be registered brokers or dealers. As 
registered brokers or dealers, RMOs are subject to a panoply of rules, 
such as FINRA Rule 2010 (Standards of Commercial Honor and Principles 
of Trade), EDGX Rule 2.2 (Obligation of Members and the Exchange), and 
EDGX Rule 3.1 (Business Conduct of Members). These rules require, 
amongst other things, that as brokers or dealers, Members are required 
to conduct business with the highest standards of commercial honor, and 
obligate Members to comply with all Exchange rules, by-laws, and 
regulations.\35\ While the Exchange has an obligation to maintain fair 
and orderly markets and carry out it its duties as a self-regulatory 
organization, RMOs are also obligated to ensure that only orders that 
comply with Exchange rules are routed to the Exchange and designated as 
Retail Orders.
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    \35\ While the RMO application process discussed above does rely 
on information provided by the applicant, the Exchange believes that 
ultimately it must be allowed to rely on representations made by 
registered brokers or dealers that are obligated to conduct their 
securities business consistent with the highest standards of 
commercial honor, and in submitting their application, have attested 
to the accuracy of the information provided to the Exchange.
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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.\36\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \37\ 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) \38\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \36\ 15 U.S.C. 78f(b).
    \37\ 15 U.S.C. 78f(b)(5).
    \38\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes that the proposed rule change 
is consistent with these principles because it would increase 
competition among execution venues, encourage additional on-exchange 
retail liquidity, and in turn, increase the opportunities for retail 
customers to receive even greater levels of price improvement from RMOs 
that trade principally and choose to commit additional capital to their 
Retail Orders. The Exchange notes that a significant percentage of the 
orders of individual customers are executed over the counter.\39\ By 
providing RMOs with an additional order capacity in which they may 
submit their retail orders to the Exchange, EDGX believes that more 
retail flow may be directed to the Exchange and have the opportunity to 
execute on a regulated, transparent market. Indeed, even the Commission 
has noted that ``a very large percentage of marketable (immediately 
executable) order flow of individual customers is `executed' or 
`internalized' by broker-dealers in the [over-the-counter-markets].'' 
\40\ The Commission has also noted that a review of the order flow of 
eight retail brokers revealed that nearly 100% of their customer market 
orders were routed to over-the-counter market makers, often pursuant to 
payment for order flow arrangements.\41\ By making clear to retail 
broker-dealers that, subject to the conditions discussed herein, they 
can enter and execute Retail Orders on the Exchange in a principal 
capacity, such market participants may be encouraged to seek on-
Exchange price improvement opportunities. The Exchange believes that 
the proposed change is likely to increase the number of Retail Orders 
entered onto the Exchange. Based on feedback from Members that manage 
retail orders, they already trade retail orders on-exchange in a 
principal capacity. However, because Exchange rules do not currently 
permit the execution and allocation of a Retail Order in a principal 
capacity, such Members simply enter their principal retail orders as 
non-retail attested order flow--i.e., they do not enter Retail Orders 
as RMOs, onto the Exchange. As such, these Members' retail customer 
orders are not eligible to avail themselves to the benefits EDGX offers 
to retail firms and Retail Orders. By making clear that such Members 
can now enter such orders as Retail Orders, the Exchange believes the 
volume of Retail Orders entered onto the Exchange will increase. In 
turn, an increase in the number of Retail Orders submitted onto the 
Exchange will encourage more retail liquidity provision, thereby 
deepening EDGX's retail liquidity pool, fostering enhanced price 
discovery, and offering Retail Orders more price improvement 
opportunities as the number of liquidity providers competing to trade 
with Retail Orders increases.
---------------------------------------------------------------------------

    \39\ Ninety-plus percent (90%) of retail marketable orders are 
routed to wholesalers and executed off-exchange. See Chair Gensler's 
remarks, ``Market Structure and the Retail Investors: Remarks Before 
the Piper Sandler Global Exchange Conference'', (June 2, 2022), 
available at: <a href="https://www.sec.gov/news/speech/gensler-remarks-piper-sandler-global-exchange-conference-060822">https://www.sec.gov/news/speech/gensler-remarks-piper-sandler-global-exchange-conference-060822</a>).
    \40\ See Securities Exchange Act Release No. 61358 (January 14, 
2010), 75 FR 3594, 3600 (January 21, 2010) (``Concept Release on 
Equity Market Structure'').
    \41\ Id.
---------------------------------------------------------------------------

    The Exchange also believes that the proposed amendment to add 
principal orders to the definition of Retail Order, promotes just and 
equitable principles of trade and is not unfairly discriminatory. All 
RMOs are permitted to utilize the proposed principal order capacity and 
doing so is not mandatory. While some RMOs may choose not to provide 
additional price improvement to executions they receive on the 
Exchange, such possibility does not make the proposed amendment 
discriminatory. Indeed, to prevent all RMOs from trading in a principal 
capacity to provide their retail customers with additional price 
improvement, simply because some RMOs may choose not to do so, only 
disadvantages the retail customer. Moreover, each RMO has its own 
rationale and strategies in how to provide their retail orders with 
best execution, and the proposed amendment to merely permit trading in 
a principal capacity should not be germane to a consideration of 
whether certain RMOs are better positioned to trade in this manner, 
than others.
    Moreover, proposed Rule 11.21(g) and the proposed amendment to Rule 
11.21(b)(6) are designed to prevent fraudulent and manipulative acts 
and practices, and to promote just and equitable principles of trade. 
Specifically, the proposed requirements under Rule 11.21(g) are 
designed to ensure that RMOs trade principally only on behalf of bona 
fide retail customers, and not the RMOs own trading account. 
Furthermore, the requirement that RMOs have in place policies and 
procedures reasonably designed to ensure compliance with Rule 
11.21(g)(1) will also help to ensure that RMOs are cognizant of their 
regulatory obligations, thereby better ensuring their compliance

[[Page 43674]]

with Rule 11.21(g). Additionally, Rule 11.21(b)(6)'s requirement that 
RMOs also have policies and procedures in place reasonably designed to 
ensure that RMOs can, upon request, provide the Exchange with 
documentation of their compliance with Rule 11.21(g) will help to 
ensure the Exchange can properly surveil and regulate its RMOs.
    Finally, the Exchange also believes that this proposal is not 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. As noted above, while the proposed definition will 
help to ensure that only bona fide retail customers receive the 
benefits afforded to Retail Orders, the segmentation afforded Retail 
Orders is not a novel concept in the securities market. The Commission 
has long recognized that U.S. capital markets should be structured with 
the interests of retail customers in mind \42\ and recently proposed a 
series of rules designed, in part, to attempt to bring order flow back 
to the exchanges from off-exchange trading venues.\43\
---------------------------------------------------------------------------

    \42\ See U.S. Securities and Exchange Commission, Strategic 
Plan, Fiscal Years 2018-2022, available at <a href="https://www.sec.gov/files/SEC_Strategic_Plan_FY18-FY22_FINAL_0.pdf">https://www.sec.gov/files/SEC_Strategic_Plan_FY18-FY22_FINAL_0.pdf</a>.
    \43\ See Securities Exchange Act Release No. 96495 (December 14, 
2022), 88 FR 128 (January 3, 2023) (``Order Competition Rule''); 
Securities Exchange Act Release No. 96494 (December 14, 2022), 87 FR 
80266 (December 29, 2022) (``Tick Size Proposal''); Securities 
Exchange Act Release No. 96496 (December 14, 2022), 88 FR 5440 
(January 27, 2023) (``Regulation Best Execution''); Securities 
Exchange Act Release No. 96493 (December 14, 2022), 88 FR 3786 
(January 20, 2023) (``Disclosure of Order Execution Information''). 
The Exchange notes that while such proposals have since been 
withdrawn by the Commission, the underlying principles of investor 
protection and protection of the interests of retail investors, 
remain a critical focus of the SEC, today.
---------------------------------------------------------------------------

    Additionally, while certain RMOs may elect to trade principally and 
other RMOs may choose not to do so, the Exchange is not privy to such 
decision making and the Exchange does not dictate how RMOs may choose 
to enhance the execution quality of their Retail Orders. Just as some 
RMOs choosing to enter their Retail Orders onto the Exchange with more 
marketable or more conservative limit prices is non-discriminatory, the 
mere fact that the Exchange now seeks to permit an RMO to trade 
principally should not raise such concerns. Moreover, any RMO that 
satisfies the requirements of Rule 11.21(g) may enter Retail Orders 
onto the Exchange in a principal capacity, regardless of their size or 
trading volume. Likewise, trading principally is not a requirement to 
enter orders onto the Exchange as principal, and RMOs are free to do 
so, or not, consistent with their business models and order handling 
practices.

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 intermarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange 
believes the proposed amendment will help to enhance the submission of 
Retail Orders to the Exchange by providing RMOs with additional 
flexibility in how they choose to execute their retail customers' 
orders on the Exchange. In turn, greater overall order flow and trading 
opportunities benefits all market participants on the Exchange. An 
increase in RMO activity and liquidity providing orders will serve to 
enhance the Exchange's available liquidity. Deeper liquidity pools 
will, in turn, enhance price discovery, as well as price improvement 
opportunities for retail customers as liquidity providers compete for 
retail executions. Liquidity providers also benefit by being able to 
interact with retail order flow that is often executed off-exchange, 
and therefore generally inaccessible to those trading in the lit 
markets.
    While the proposed definition will help to ensure that only bona 
fide retail customers receive the benefits afforded to Retail Orders, 
the segmentation afforded Retail Orders is not a novel concept in the 
securities market. The Commission has long recognized that U.S. capital 
markets should be structured with the interests of retail customers in 
mind \44\ and has recently proposed a series of rules designed, in 
part, to attempt to bring order flow back to the exchanges from off-
exchange trading venues.\45\ In this regard, the proposed amendments 
should not result in any new or novel issues to be considered by the 
Commission or that have not already been contemplated by today's market 
participants. For example, many exchanges, including the Exchange's 
affiliate, Cboe BYX Exchange, Inc., offer retail price improvement 
programs designed to attract retail order flow to regulated markets and 
provide retail order flow with price improvement opportunities.\46\ 
Additionally, as noted in Amendment 1 of EDGX's Retail Priority 
filing,\47\ customer priority has a long tradition in the options 
market where orders entered on behalf of non-broker dealer public 
customers have historically been afforded priority over orders 
submitted by registered broker dealers. The aforementioned retail price 
improvement programs and Retail Priority program each provide benefits 
to Retail Orders not afforded to other customers by segmenting retail 
order flow from traditional order flow. The Exchange's proposal does 
not encourage additional segmentation, but rather seeks to enhance 
existing benefits to retail customers by codifying that RMOs may 
utilize a principal order type in order to provide additional post-
execution price improvement to Retail Orders.
---------------------------------------------------------------------------

    \44\ Supra note 41.
    \45\ Supra note 42.
    \46\ See, e.g., Cboe BYX Exchange Rule 11.24 (Retail Price 
Improvement Program); NYSE National, Inc. Rule 7.44 (Retail 
Liquidity Program); Investors Exchange Inc. Rule 11.232 (Retail 
Price Improvement Program).
    \47\ See Securities Exchange Act Release No. 86280 (July 2, 
2019), 84 FR 32808 (July 9, 2019) (``Notice of Amendment No. 1'').
---------------------------------------------------------------------------

    Additionally, the Exchange does not believe its proposal unfairly 
discriminates between Retail Orders--i.e., between Retail Orders that 
are executed principally, and Retail Orders executed in an agency or 
riskless principal capacity. While Retail Orders entered in a principal 
capacity must satisfy additional requirements compared to Retail Orders 
entered as agent or riskless principal, these requirements are designed 
to ensure that the benefits of the Exchange's Retail Order program 
accrue only to bona retail brokers and their retail customers. 
Moreover, treating Retail Orders entered principally in the same manner 
as Retail Orders entered as agent or riskless principal equally does 
not unfairly discriminate between Retail Orders. The choice to enter a 
Retail Order principally or as agent or riskless principal, does not 
provide a Retail Order with any additional on-Exchange benefits--i.e., 
whether entered as principal, riskless principal, or agent, the Retail 
Order will be handled in the same manner. The additional price 
improvement received by principal Retail Orders is fully accrued off-
Exchange, when the RMO chooses to provide additional price improvement 
to their retail customers post-execution on the Exchange.
    The Exchange further believes that the proposed rule change will 
increase intermarket competition by enabling the Exchange to better 
compete with other exchanges and off-exchange trading venues for retail 
order flow. The Commission has spoken about ``increasing competition 
and enhancing the direct exposure of individual customer orders to a 
broader spectrum of market participants'' \48\ and the Exchange 
believes its proposed amendment to the definition of Retail Order will 
help to encourage RMOs to

[[Page 43675]]

submit additional retail order flow to the Exchange. In turn, retail 
customers will have additional opportunities to receive executions on a 
transparent, regulated, national securities exchange in addition to the 
currently available off-exchange trading venues, and could also create 
additional incentives for regulated exchanges to develop additional 
liquidity programs designed at providing additional benefits to retail 
customers, thus promoting additional intermarket competition.
---------------------------------------------------------------------------

    \48\ See Order Competition Rule at 178.
---------------------------------------------------------------------------

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. Proceedings To Determine Whether To Approve or Disapprove SR-
CboeEDGX-2025-035, as Modified by Amendment No. 1, and Grounds for 
Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section 
19(b)(2)(B) of the Act \49\ to determine whether the proposed rule 
change, as modified by Amendment No. 1, should be approved or 
disapproved. Institution of proceedings is appropriate at this time in 
view of the legal and policy issues raised by the proposal. Institution 
of proceedings does not indicate that the Commission has reached any 
conclusions with respect to any of the issues involved. Rather, as 
described below, the Commission seeks and encourages interested persons 
to provide comments on the proposed rule change.
---------------------------------------------------------------------------

    \49\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(2)(B) of the Act,\50\ the Commission is 
providing notice of the grounds for disapproval under consideration. As 
described above, the Exchange has proposed to allow a Retail Member 
Organization to enter a Retail Order onto the Exchange in a principal 
capacity. The Commission is instituting proceedings to allow for 
additional analysis of, and input from commenters with respect to, the 
proposal's consistency with the Act, and in particular with Sections 
6(b)(5) \51\ and 6(b)(8) \52\ of the Act. Section 6(b)(5) of the Act 
requires that the rules of a national securities exchange be designed, 
among other things, to promote just and equitable principles of trade, 
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, and not be designed to permit unfair 
discrimination between customers, issuers, brokers, or dealers. Section 
6(b)(8) of the Act requires that the rules of a national securities 
exchange not impose any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \50\ Id.
    \51\ 15 U.S.C. 78f(b)(5).
    \52\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

    The Commission asks that commenters address the sufficiency of the 
Exchange's statements in support of the proposal, which are set forth 
above, in addition to any other comments they may wish to submit about 
the proposed rule change. In particular, the Commission seeks comment 
on whether the proposed rule change would enhance the ability of bona 
fide retail trading interest to compete for executions and whether the 
proposed rule change would ensure that only bona fide retail orders 
benefit from retail-only incentives provided by the Exchange.

IV. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written 
submissions of their data, views, and arguments with respect to the 
issues identified above, as well as any other concerns they may have 
with the proposal. In particular, the Commission invites the written 
views of interested persons concerning whether the proposed rule 
change, as modified by Amendment No. 1, is consistent with Sections 
6(b)(5) and 6(b)(8) or any other provision of the Act, and the rules 
and regulations thereunder. Although there do not appear to be any 
issues relevant to approval or disapproval that would be facilitated by 
an oral presentation of data, views, and arguments, the Commission will 
consider, pursuant to Rule 19b-4 under the Act,\53\ any request for an 
opportunity to make an oral presentation.\54\
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    \53\ 17 CFR 240.19b-4.
    \54\ Section 19(b)(2) of the Act, as amended by the Securities 
Acts Amendments of 1975, Public Law 94-29 (Jun. 4, 1975), grants to 
the Commission flexibility to determine what type of proceeding--
either oral or notice and opportunity for written comments--is 
appropriate for consideration of a particular proposal by a self-
regulatory organization. See Securities Acts Amendments of 1975, 
Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75, 
94th Cong., 1st Sess. 30 (1975).
---------------------------------------------------------------------------

    Interested persons are invited to submit written data, views, and 
arguments regarding whether the proposed rule change, as modified by 
Amendment No. 1, should be approved or disapproved by October 1, 2025. 
Any person who wishes to file a rebuttal to any other person's 
submission must file that rebuttal by October 15, 2025.
    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#3143445d541c525e5c5c545f4542714254521f565e47"><span class="__cf_email__" data-cfemail="2052554c450d434f4d4d454e5453605345430e474f56">[email&#160;protected]</span></a>. Please include 
file number SR-CboeEDGX-2025-035 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-CboeEDGX-2025-035. 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 filing 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-CboeEDGX-2025-035 and should be 
submitted by October 1, 2025. Rebuttal comments should be submitted by 
October 15, 2025.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\55\
---------------------------------------------------------------------------

    \55\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-17333 Filed 9-9-25; 8:45 am]
BILLING CODE 8011-01-P


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