Notice2025-18554
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Add Options on the Cboe Magnificent 10 Index to Certain Rules and To Change the Market-Maker Appointment Tier for Certain Index Options
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 25, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 184 (Thursday, September 25, 2025)</title>
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[Federal Register Volume 90, Number 184 (Thursday, September 25, 2025)]
[Notices]
[Pages 46297-46299]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18554]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104010; File No. SR-CBOE-2025-067]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Add
Options on the Cboe Magnificent 10 Index to Certain Rules and To Change
the Market-Maker Appointment Tier for Certain Index Options
September 22, 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 September 10, 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
(1) to update certain Rules regarding the listing of options on the
Cboe Magnificent 10 Index (``MGTN options''), which are eligible to be
listed for trading pursuant to Rule 4.13(b) and Rule 19b-4(e) under the
Securities Exchange Act (the ``Act'') \3\ to those rules; and (2) to
update Rule 5.50 regarding the Market-Maker appointment costs of
certain index options. The text of the proposed rule change is provided
in Exhibit 5.
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\3\ See 17 CFR 240.19b-4(e).
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The text of the proposed rule change is also available on the
Commission's website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>), the
Exchange's website (<a href="https://www.cboe.com/us/options/regulation/rule_filings/bzx/">https://www.cboe.com/us/options/regulation/rule_filings/bzx/</a>), and at the principal office of the Exchange.
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
[[Page 46298]]
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 (1) to update certain Rules regarding the
listing of options on the Cboe Magnificent 10 Index (``MGTN options''),
which are eligible to be listed for trading pursuant to Rule 4.13(b)
and Rule 19b-4(e) of the Act; and (2) to update Rule 5.50 regarding the
Market-Maker appointment costs of certain index options.
First, the proposed rule change amends various Rules to add the
Cboe Magnificent 10 Index to those Rules. The Cboe Magnificent 10 Index
is a narrow-based index (as defined in Rule 4.11) that satisfies the
initial listing criteria of a narrow-based index set forth in Rule
4.10(b). Therefore, in accordance with Rule 4.10(b) and Rule 19b-4(e)
under the Act, options on the Cboe Magnificent 10 Index are eligible
for trading on the Exchange without a rule filing.\4\ The proposed rule
change makes the following administrative changes in connection with
the eligibility of MGTN options for trading on the Exchange:
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\4\ The Exchange intends to submit a Form 19b-4(e) to the
Securities and Exchange Commission (the ``Commission'') regarding
the listing of MGTN options no later than five days after the
Exchange begins listing those options for trading.
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<bullet> add the reporting authority (Cboe Global Indices, LLC) for
the Cboe Magnificent 10 Index to Rule 4.12(c);
<bullet> add Cboe Magnificent 10 Index to the list of index options
that will be European-style index in Rule 4.13(a)(3);
<bullet> add Cboe Magnificent 10 Index to the list of index options
that will be A.M.-settled in Rule 4.13(a)(4); and
<bullet> add MGTN options to the list of options that are part of
appointment unit tier AA and assign MGTN options a Market-Maker
appointment weight of .001 in Rule 5.50(g).\5\
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\5\ This is the appointment weight these options would initially
receive upon listing if they were not part of appointment unit tier
AA pursuant to Rule 5.50(g), and therefore this proposed rule change
has no impact on the appointment weight of MGTN options.
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These proposed changes are administrative and have no impact on how
MGTN options may trade on the Exchange.
Second, the proposed rule change amends Rule 5.50(g) to add the
following index options to appointment unit tier AA and assign each of
those options a Market-Maker appointment weight of .001: the Cboe
Bitcoin U.S. ETF Index (CBTX), the Cboe Mini Bitcoin U.S. ETF Index
(MBTX), the S&P Equal Weight Index (SPEQF) (full-value), and the S&P
Equal Weight Index (SPEQX) (1/10th). These index options currently have
a Market-Maker appointment weight of .001, and thus this proposed rule
change has no impact on these options.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\6\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \7\ 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) \8\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
\8\ Id.
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In particular, the Exchange believes the proposed rule change will
remove impediments to and perfect the mechanism of a free and open
market and a national market system, because it will add transparency
to the rules regarding certain indexes on which the Exchange may list
options for trading. The proposed rule changes to add the Cboe
Magnificent 10 Index to certain Rules will further add transparency to
the Rules regarding an index on which the Exchange may list options in
accordance with Rule 19b-4(e) under the Exchange Act and regarding
certain terms (e.g., type, settlement) of the options on this index,
which transparency ultimately benefits investors. The proposed rule
change to add certain other index options to Market-Maker appointment
unit tier AA with a fixed .001 appointment cost will 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, as all other index options the Exchange lists are currently
part of that same appointment unit tier. Therefore, this proposed rule
change will add consistency and transparency to the Rules regarding
Market-Maker appointment weights of index options. As noted above,
these options currently have a Market-Maker appointment weight of .001,
so the proposed rule change has no practical impact on these options.
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 rule changes to
update certain rules to add the Cboe Magnificent 10 Index, options on
which are eligible to be listed for trading pursuant to Rule 4.13(b)
and Rule 19b-4(e) under the Act, to those rules will impose no burden
on intramarket or intermarket competition that is not necessary or
appropriate in furtherance of the purpose of the Act, as there are
solely administrative changes that have no impact on how options
overlying this index may trade on the Exchange. The proposed rule
change to add certain index options to appointment unit tier AA with an
appointment cost of .001 will impose no burden on intramarket or
intermarket competition that is not necessary or appropriate in
furtherance of the purpose of the Act, as they are merely codifying the
current appointment weight for these options and have no impact on how
options overlying those indexes may trade. Additionally, all Market-
Makers will continue to be subject to the same appointment weight for
these options.
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 written 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)
[[Page 46299]]
of the Act \9\ and paragraph (f) of Rule 19b-4 \10\ 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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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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#2755524b420a44484a4a424953546754424409404851"><span class="__cf_email__" data-cfemail="6012150c054d030f0d0d050e1413201305034e070f16">[email protected]</span></a>. Please include
file number SR-CBOE-2025-067 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-2025-067. 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-CBOE-2025-067 and should be submitted on
or before October 16, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-18554 Filed 9-24-25; 8:45 am]
BILLING CODE 8011-01-P
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