Notice2025-18938
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule
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 30, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 187 (Tuesday, September 30, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 187 (Tuesday, September 30, 2025)]
[Notices]
[Pages 47036-47037]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18938]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104048; File No. SR-CboeEDGX-2025-076]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Its Fees Schedule
September 25, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 23, 2025, Cboe EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') is filing
with the Securities and Exchange Commission (the ``Commission'') a
proposed rule change to amend its Fees Schedule to remove obsolete text
regarding the assessment of late fees. Specifically, the Exchange
proposes to eliminate from its Fee Schedule text indicating that a
charge of 1% per month will be assessed on past due portions of
Members' accounts and accompanying text describing the terms of the
assessment of such late fees. The text of the proposed rule change is
provided in Exhibit 5.
The text of the proposed rule change is also available on the
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/equities/regulation/rule_filings/bzx/">https://www.cboe.com/us/equities/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 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fees Schedule to remove obsolete
text regarding the assessment of late fees. Specifically, the Exchange
proposes to eliminate from its fee schedule text indicating that a
charge of 1% per month will be assessed on past due portions of a
Member's \3\ accounts and accompanying text describing the terms of the
assessment of such late fees.
---------------------------------------------------------------------------
\3\ See Exchange Rule 1.5(n). A ``Member'' is defined as ``any
registered broker or dealer that has been admitted to membership in
the Exchange.''
---------------------------------------------------------------------------
By way of background, the Exchange's fee schedule historically
included language regarding the assessment of late fees. The Exchange's
fee schedule indicated that a 1% per month charge on past due portions
of Members' balances would be assessed. Further, the Exchange's fee
schedule described the terms of the assessment of such late fees
including that the fees would accrue on a daily basis and that the fees
would be included as line items on a Member's invoices as they are
assessed. Moreover, Exchange Rule 15.1(a) states that the Exchange may
prescribe such reasonable dues, fees, assessments or other charges as
it may, in the Exchange's discretion, deem appropriate.\4\
---------------------------------------------------------------------------
\4\ Separately, paragraph 13 of the Exchange's User Agreement,
which is signed by all Members as part of their membership in the
Exchange, also provides that the Member agrees to pay the Exchange a
late charge of 1% per month on all past due amounts that are not the
subject of a legitimate and bona fide dispute. The Exchange also
intends amend its User Agreement to remove language regarding the
assessment of late fees on past due amounts.
---------------------------------------------------------------------------
The inclusion of late fees on the Exchange's fee schedule was
originally intended to incentivize Members to timely pay invoices.\5\
While the legacy Direct Edge Holdings LLC exchanges historically
assessed late fees, Cboe EDGX Exchange, Inc., after its merger with
BATS Global Markets Inc, discontinued this practice and no longer
assesses the late fees the Exchange now seeks to remove from its fee
schedule.\6\ Despite the inclusion of late fees on the Exchange's fee
schedule, the Exchange does not assess late fees on a Member's
accounts. Accordingly, the Exchange seeks to align its fee schedule
with the current practices of the Exchange. As a result of the proposed
amendment, the Exchange's fee schedule will accurately reflect the
practices of the Exchange and make clear to its Members that it does
not assess late fees on past due balances.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 67158 (June 7,
2012), 77 FR 35453 (June 13, 2012) (SR-EDGX-2012-19).
\6\ On February 3, 2014, BATS Global Markets Inc. completed its
purchase of Direct Edge Holdings LLC.
---------------------------------------------------------------------------
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
Section 6(b)(4) of the Act,\9\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Members and other persons using its facilities.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that its proposed fee schedule amendment is
reasonable because it is designed to align the Exchange's fee schedule
with its actual billing practices. As discussed above, the Exchange
does not assess late fees on a Member's accounts. Because the proposed
amendment aligns the Exchange's fee schedule with the services
currently provided by the Exchange by removing obsolete language and
eliminating (rather than
[[Page 47037]]
adding) a fee from its fee schedule, the Exchange believes the proposed
amendment is reasonable.
The Exchange believes the proposal to remove language regarding the
assessment of late fees from its fee schedule is equitable and not
unfairly discriminatory because it applies uniformly to all Members of
the exchange and all market participants will have further clarity as
to whether the Exchange assesses late fees. The proposed amendment to
eliminate language relating to the assessment late fees applies equally
to all of the Exchange's Members and other persons using or seeking to
use its facilities. As such, the proposed amendment is non-
discriminatory. Additionally, the Exchange believes that by eliminating
language regarding the assessment of late fees, the proposed amendment
will promote market transparency by accurately reflecting the
Exchange's current policy regarding the assessment of late fees. The
Exchange also believes the proposed amendment will provide clarity to
its Members and other market participants by accurately describing the
manner in which the Exchange assesses fees. As such, the Exchange
believes the proposed rule amendment is equitable.
The Exchange notes that it is not statutorily required to assess
late fees on the past due balances of its Members. The Exchange seeks
to align the language in its fee schedule with the current billing
practices of the Exchange. The Exchange believes that Members would
benefit from clear guidance in its fee schedule that accurately
describes the manner in which the Exchange assesses fees. The proposed
fee schedule amendment is intended to make the fee schedule clearer and
less confusing for Members and eliminate potential confusion, thereby
removing impediments to and perfecting the mechanism of a free and open
market and a national market system, and, in general, protecting
investors and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed amendment will
impose any burden on intramarket or intermarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act. The
Exchange does not believe that the proposed amendment will impose any
burden on intramarket competition because the proposed change applies
uniformly to all market participants.
As discussed above, the proposed amendment seeks to align the
Exchange's fee schedule with the current practices of the Exchange. The
Exchange does not believe that the proposed amendment will impose any
burden on intermarket competition because the Exchanges current
practices regarding the assessment of late fees is similar to practices
of other exchanges. Based on a review of other exchanges' fee
schedules, the Exchange is currently unaware of any late fees or
charges assessed by competitor exchanges such as NASDAQ Stock Market
LLC (``NASDAQ'') and MIAX Pearl LLC (``MIAX). Like the Exchange, NASDAQ
and MIAX retain the ability to prescribe reasonable dues, fees,
assessments or other charges as they may deem appropriate.\10\
---------------------------------------------------------------------------
\10\ Compare Exchange Rule 15.1(a), Authority to Prescribe Dues,
Fees, Assessments and Other Charges with Nasdaq Stock Market LLC
Rules, Nasdaq General 2, Sec. 2(a), Fees, Dues and Other Charges;
and MIAX Pearl Equities Exchange Rulebook, Section 3000(a),
Authority to Prescribe Dues, Fees, Assessments and Other Charges.
---------------------------------------------------------------------------
Additionally, the Exchange does not believe that the proposed
amendment creates an undue burden on competition because the Exchange
will continue to assess all other fees upon its Members as described in
its fee schedule and Rulebook. Further, the Exchange is currently
unaware of any late fees or charges assessed by competitor exchanges
such as NASDAQ and MIAX. Accordingly, the Exchange does not believe its
proposed fee schedule amendment imposes any burden on competition that
is not necessary or appropriate in furtherance of the purposes of the
Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<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#7c0e091019511f1311111912080f3c0f191f521b130a"><span class="__cf_email__" data-cfemail="4f3d3a232a622c2022222a213b3c0f3c2a2c61282039">[email protected]</span></a>. Please include
file number SR-CboeEDGX-2025-076 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-2025-076. 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-2025-076 and should be
submitted on or before October 21, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-18938 Filed 9-29-25; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on September 30, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.