Notice2025-22859
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule in Connection With the Exchange's Plans To List and Trade Options That Overlie the Magnificent 10 Index (“MGTN 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
December 16, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 239 (Tuesday, December 16, 2025)</title>
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[Federal Register Volume 90, Number 239 (Tuesday, December 16, 2025)]
[Notices]
[Pages 58330-58334]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22859]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104363; File No. SR-CBOE-2025-089]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fees Schedule in Connection With the Exchange's Plans To List and
Trade Options That Overlie the Magnificent 10 Index (``MGTN Options'')
December 11, 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 December 8, 2025, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe
Options'') 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.
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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 update its Fees Schedule in connection with the Exchange's plans to
list and trade options that overlie the Magnificent 10 Index (``MGTN
options''); specifically, the Exchange proposes to adopt certain
standard transaction fees in connection with MGTN options, include/
exclude MGTN options from certain surcharges, and exclude MGTN options
from certain fees programs. 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/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 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 in connection with
its plans to list and trade MGTN options, effective December 8, 2025.
Standard Transaction Rates and Surcharges
First, the Exchange proposes to adopt certain standard transaction
fees in connection with MGTN options. Specifically, the proposed rule
change adopts certain fees for MGTN options in the Rate Table for All
Products Excluding Underlying Symbol A,\3\ as follows:
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\3\ Underlying Symbol List A includes OEX, XEO, RUT, RLG, RLV,
RUI, UKXM, SPX (includes SPXW), SPESG and VIX. See Exchange Fees
Schedule, Footnote 34.
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<bullet> Adopts fee code GO, appended to all Customer (capacity
``C'') orders in MGTN options and assesses a fee of $0.16 per contract;
\4\
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\4\ Under the proposed changes, the Customer Large Trade
Discount Program, set forth in the Exchange Fees Schedule, will
apply to Customer orders in MGTN options (included in ``Other Index
Options'' under the program). Under the program, a customer large
trade discount program in the form of a cap on customer (``C''
capacity code) transaction fees is in effect for the options set
forth in the Customer Large Trade Discount table. For MGTN options,
regular customer transaction fees will only be charged for up to
5,000 contracts per order, similar to other index options other than
VIX, SPX/SPXW, SPESG, and XSP.
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<bullet> Adopts fee code GT, appended to all Firm (i.e., Clearing
Trading Permit Holders (capacity ``F'')) and Professional Customer
(capacity ``U'') orders in MGTN options and assesses a fee of $0.20 per
contract;
<bullet> Adopts fee code GU, which is appended to Market-Maker
(capacity ``M'') orders in MGTN options contra Firm and Professional
Customer that add liquidity and that are executed electronically and
assesses a fee of $0.20 per contract;
<bullet> Adopts fee code GV, which is appended to Market-Maker
orders in MGTN options contra Non-Customer that add liquidity and that
are executed electronically and provides a rebate of $0.25 per
contract;
<bullet> Adopts fee code GW, which is appended to Market-Maker
orders in MGTN options contra Customer that add liquidity and that are
executed electronically and assesses no fee per contract;
<bullet> Adopts fee code GP, which is appended to Non-Customer,
Non-Firm, Non-Professional Customer, Non-Market-Maker orders in MGTN
options that add liquidity and that are executed electronically and
assesses a fee of $0.20 per contract;
<bullet> Adopts fee code GQ, which is appended to Non-Customer,
Non-Firm, Non-Professional Customer orders in MGTN options contra
Customer that remove and that are executed electronically and assesses
a fee of $0.20 per contract;
[[Page 58331]]
<bullet> Adopts fee code GR, which is appended to Non-Customer,
Non-Firm, Non-Professional Customer orders in MGTN options contra Non-
Customer that remove liquidity and that are executed electronically and
assesses a fee of $1.25 per contract; and
<bullet> Adopts fee code GS, which is appended to Non-Customer,
Non-Firm, Non-Professional Customer orders in MGTN options that are
executed manually (i.e., open outcry) and assesses a fee of $0.20 per
contract.
In addition to the above transaction fees, the proposed rule change
also adopts a surcharge to MGTN options transactions within the Rate
Table--All Products Excluding Underlying Symbol List A. Specifically,
the proposed rule change adds MGTN options to the list of options for
which the FLEX Surcharge Fee of $0.10 (capped at $250 per trade)
applies to electronic FLEX orders executed by all capacity codes,
except for Cboe Compression Services (``CCS'') and FLEX Micro
transactions.\5\
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\5\ The FLEX Surcharge Fee will only be charged up to the first
2,500 contracts per trade. See Exchange Fees Schedule, Footnote 17.
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The Exchange also proposes to exclude Non-Customer complex orders
in MGTN options from the Complex Surcharge by amending Footnote 35
(appended to the Complex Surcharge) to provide that the Complex
Surcharge applies per contract per side surcharge for noncustomer
complex order executions that remove liquidity from the Complex Order
Book (``COB'') and auction responses in the Complex Order Auction
(``COA'') and AIM in all classes except CBTX, MBTX, MGTN, MRUT, NANOS,
SPEQX, XSP, FLEX Micros, Sector Indexes and Underlying Symbol List A.
Fees Programs
The Exchange proposes to exclude MGTN options from the Liquidity
Provider Sliding Scale, which offers credits on Market-Maker orders
where a Market-Maker achieves certain volume thresholds based on total
national Market-Maker volume in all underlying symbols, excluding
Underlying Symbol List A, CBTX, MBTX, MRUT, MXACW, MXUSA, MXWLD, NANOS,
XSP and FLEX Micros during the calendar month. Specifically, the
proposed rule change updates the Liquidity Provider Sliding Scale table
to provide that volume thresholds are based on total national Market-
Maker volume in all underlying symbols excluding Underlying Symbol List
A, CBTX, MBTX, MGTN, MRUT, MXACW, MXUSA, MXWLD, NANOS, SPEQX, XSP and
FLEX Micros during the calendar month, and that it applies in all
underlying symbols excluding Underlying Symbol List A, CBTX, MBTX,
MGTN, MRUT, MXACW, MXUSA, MXWLD, NANOS, SPEQX, XSP and FLEX Micros. The
proposed rule change also updates Footnote 10 (appended to the
Liquidity Provider Sliding Scale) to provide that the Liquidity
Provider Sliding Scale applies to Liquidity Provider (Exchange Market-
Maker, DPM and LMM) transaction fees in all products except (1)
Underlying Symbol List A, CBTX, MBTX, MGTN, MRUT, MXACW, MXUSA, MXWLD,
NANOS, SPEQX, XSP and FLEX Micros, (2) volume executed in open outcry,
and (3) volume executed via AIM Responses.
The proposed rule change also updates Footnote 44 (appended to the
Liquidity Provider Sliding Scale Adjustment Table) to exclude MGTN
volume from the program by providing (in relevant part) that the Make
Rate under the Liquidity Provider Sliding Scale Adjustment Table be
derived from a Liquidity Provider's electronic volume the previous
month in all symbols excluding Underlying Symbol List A, CBTX, MBTX,
MGTN, SPEQX, and XSP.
The proposed rule change updates the Volume Incentive Program
(``VIP'') table to also exclude MGTN volume from the VIP, which
currently offers a per contract credit for certain percentage threshold
levels of monthly Customer volume in all underlying symbols, excluding
Underlying Symbol List A, Sector Indexes, DJX, CBTX, MBTX, MRUT, MXEA,
MXEF, MXACW, MXUSA, MXWLD, NANOS, SPEQX, XSP and FLEX Micros. The
proposed rule change also amends Footnote 36 (appended to the VIP
table) to reflect the proposed exclusion of MGTN from the VIP by
providing (in relevant part) that: the Exchange shall credit each TPH
the per contract amount resulting from each public customer (``C''
capacity code) order transmitted by that TPH which is executed
electronically on the Exchange in all underlying symbols excluding
Underlying Symbol List A, Sector Indexes, DJX, CBTX, MBTX, MGTN, MRUT,
MXEA, MXEF, MXACW, MXUSA, MXWLD, NANOS, SPEQX, XSP, FLEX Micros, QCC
trades, public customer to public customer electronic complex order
executions, and executions related to contracts that are routed to one
or more exchanges in connection with the Options Order Protection and
Locked/Crossed Market Plan referenced in Rule 5.67, provided the
Trading Permit Holder (``TPH'') meets certain percentage thresholds in
a month as described in the Volume Incentive Program (VIP) table; the
percentage thresholds are calculated based on the percentage of
national customer volume in all underlying symbols excluding Underlying
Symbol List A, Sector Indexes, CBTX, MBTX, MGTN, MRUT, MXEA, MXEF,
MXACW, MXUSA, MXWLD, NANOS, SPEQX, DJX, XSP and FLEX Micros entered and
executed over the course of the month; and in the event of a Cboe
Options System outage or other interruption of electronic trading on
Cboe Options, the Exchange will adjust the national customer volume in
all underlying symbols excluding Underlying Symbol List A, Sector
Indexes, CBTX, MBTX, MGTN, MRUT, MXEA, MXEF, MXACW, MXUSA, MXWLD,
NANOS, SPEQX, DJX, XSP and FLEX Micros for the entire trading day.
The proposed rule change excludes MGTN options from the list of
products eligible to receive Break-Up Credits in orders executed in
AIM, SAM, FLEX AIM, and FLEX SAM, by amending the Break-Up Credits
table to exclude MGTN along with the products currently excluded--
Underlying Symbol List A, Sector Indexes, DJX, CBTX, MBTX, MRUT, MXEA,
MXEF, MXACW, MXUSA, MXWLD, NANOS, SPEQX, XSP and FLEX Micros.
The Exchange proposes to exclude MGTN options from the Marketing
Fee Program by updating the Marketing Fee table to provide that the
marketing fee will be assessed on transactions of Market-Makers
(including DPMs and LMMs), resulting from customer orders at the per
contract rate provided above on all classes of equity options, options
on ETFs, options on ETNs and index options, except that the marketing
fee shall not apply to Sector Indexes, DJX, CBTX, MBTX, MGTN, MRUT,
MXEA, MXEF, MXACW, MXUSA, MXWLD, XSP, SPEQX, NANOS, FLEX Micros or
Underlying Symbol List A. The Exchange notes that, in this way, MGTN
options will be treated as most of the Exchange's other exclusively
listed products that are currently excluded from the Marketing Fee
Program. The Exchange does believe that it is necessary at the point of
newly listing and trading for MGTN options to be eligible for the
Marketing Fee Program and may determine in the future to submit a fee
filing to add MGTN to the Marketing Fee Program if the Exchange
believes it would potentially generate more customer order flow in MGTN
options.
The Exchange proposes to exclude MGTN options from the Floor Broker
Sliding Scale Rebate Program, which offers rebates for Firm Facilitated
and non-Firm Facilitated orders that correspond to certain volume tiers
and
[[Page 58332]]
is designed to incentivize order flow in multiply listed options to the
Exchange's trading floor. The Exchange proposes to update the Floor
Broker Sliding Scale Rebate Program to provide that the Floor Broker
Sliding Scale Rebate Program applies to all products except Underlying
Symbol List A, Sector Indexes, DJX, CBTX, MBTX, MGTN, MRUT, MXEA, MXEF,
MXACW, MXUSA, MXWLD, NANOS, SPEQX, XSP and FLEX Micros. Similarly, the
Exchange proposes to exclude MGTN options from the Floor Broker Sliding
Scale Supplemental Rebate Program, which offers rebates based on
qualifying volumes for non-Firm Facilitated orders processed through
the Floor Broker Sliding Scale Rebate Program. The Exchange proposes to
update the Floor Broker Sliding Scale Supplemental Rebate Program to
provide that the Floor Broker Sliding Scale Supplemental Rebate Program
applies to all products except Underlying Symbol List A, Sector
Indexes, DJX, CBTX, MBTX, MGTN, MRUT, MXEA, MXEF, MXACW, MXUSA, MXWLD,
NANOS, SPEQX, XSP and FLEX Micros.
The Exchange next proposes to exclude MGTN options from eligibility
for the Order Router Subsidy (``ORS'') and Complex Order Router Subsidy
(``CORS'') Programs, in which Participating TPHs or Participating Non-
Cboe TPHs may receive a payment from the Exchange for every executed
contract routed to the Exchange through their system in certain
classes. Specifically, the proposed rule change updates the ORS/CORS
Program tables to provide that ORS/CORS participants whose total
aggregate non-customer ORS and CORS volume is greater than 0.25% of the
total national volume (excluding volume in options classes included in
Underlying Symbol List A, Sector Indexes, DJX, CBTX, MBTX, MGTN, MRUT,
MXEA, MXEF, MXACW, MXUSA, MXWLD, NANOS, SPEQX, XSP or FLEX Micros) will
receive an additional payment for all executed contracts exceeding that
threshold during a calendar month. The proposed rule change also
updates Footnote 29 (appended to the ORS Program table) to provide that
Cboe Options does not make payments under the program with respect to
executed contracts in options classes included in Underlying Symbols
List A, Sector Indexes, DJX, CBTX, MBTX, MGTN, MRUT, MXEA, MXEF, MXACW,
MXUSA, MXWLD, NANOS, SPEQX, XSP or FLEX Micros or with respect to
complex orders or spread orders; and updates Footnote 30 (appended to
the CORS Program table) to provide that Cboe Options does not make
payments under the program with respect to executed contracts in
options classes included in Underlying Symbols List A, Sector Indexes,
DJX, CBTX, MBTX, MGTN, MRUT, MXEA, MXEF, MXACW, MXUSA, MXWLD, NANOS,
SPEQX, XSP or FLEX Micros.
The Exchange also proposes to amend Footnote 6, which states that
in the event of an Exchange System outage or other interruption of
electronic trading on the Exchange that lasts longer than 60 minutes,
the Exchange will adjust the national volume in all underlying symbols
excluding Underlying Symbol List A, Sector Indexes, CBTX, MBTX, MRUT,
MXEA, MXEF, MXACW, MXUSA, MXWLD, NANOS, DJX, SPEQX, XSP and FLEX Micros
for the entire trading day. The Exchange proposes to add MGTN options
to the list of options.
The Exchange also proposes to exclude Firm (i.e., Clearing Trading
Permit Holders (capacity ``F'') and Non-Clearing Trading Permit Holder
Affiliates (capacity ``L'')) transactions in MGTN from the Clearing TPH
Fee Cap. Specifically, it amends footnote 22 (appended to the Clearing
TPH Fee Cap table) to provide that all non-facilitation business
executed in AIM or open outcry, or as a QCC or FLEX transaction,
transaction fees for Clearing TPH Proprietary and/or their Non-TPH
Affiliates in all products except CBTX, MBTX, MGTN, MRUT, NANOS, XSP,
SPEQX, FLEX Micros, Sector Indexes and Underlying Symbol List A, in the
aggregate, are capped at $65,000 per month per Clearing TPH. The
proposed rule change additionally updates Footnote 11 (which is also
appended to the Clearing TPH Fee Cap table) to provide that the
Clearing TPH Fee Cap in all products except CBTX, MBTX, MGTN, MRUT,
NANOS, XSP, SPEQX, FLEX Micros, Underlying Symbol List A and Sector
Indexes (the ``Fee Cap''), the Cboe Options Proprietary Products
Sliding Scale for Clearing TPH Proprietary Orders, and the Clearing TPH
Proprietary VIX Sliding Scale apply to (i) Clearing TPH proprietary
orders (``F'' capacity code), and (ii) orders of Non-TPH Affiliates of
a Clearing TPH.
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.\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. The Exchange also 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 TPHs and other persons using
its facilities.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
\8\ Id.
\9\ 15 U.S.C. 78f(b)(4).
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Standard Transaction Rates and Surcharges
The Exchange believes that the proposed amendments to the Fees
Schedule in connection with standard transaction rates and surcharges
for MGTN options transactions are reasonable, equitable and not
unfairly discriminatory. The Exchange believes that the proposed
standard transaction rates for Customer; Firm; Market-Maker; Non-
Customer, Non-Firm, Non-Professional Customer; and Professional
Customer orders in MGTN options are reasonable, as the proposed fee
structure is designed to attract liquidity and encourage trading of a
new Exchange product, which benefits market participants through
tighter markets and improved price discovery. Further, the proposed
fees are in-line with fees for transactions in other Exchange
proprietary products. Additionally, the Exchange believes it is
reasonable to charge different fee amounts to different user types in
the manner proposed because the proposed fees are consistent with the
price differentiation that exists today for other index products. The
Exchange also believes that the proposed fee amounts for MGTN options
orders are reasonable because
[[Page 58333]]
the proposed fee amounts are within the range of amounts assessed for
the Exchange's other index products, excluding Underlying Symbol List
A.
The Exchange believes it is reasonable to apply the FLEX Surcharge
Fee to MGTN options, as the FLEX Surcharge Fee assists the Exchange in
recouping the cost of developing and maintaining the FLEX system.
Moreover, the Exchange believes it is reasonable to exclude MGTN
options from the Complex Surcharge because the proposed surcharge
exclusions will provide consistency between the fees assessed for
orders in other proprietary products, including CBTX, MBTX, MRUT,
NANOS, SPEQX, XSP, FLEX Micros, Sector Indexes and Underlying Symbol
List A.
The Exchange believes the proposed standard transaction rates and
inclusion/exclusion from certain surcharges are equitable and not
unfairly discriminatory because they will apply automatically and
uniformly to all capacities as applicable (i.e., Customer; Firm;
Market-Maker; Non-Customer, Non-Firm, Non-Professional Customer; and
Professional Customer) in MGTN options.
The Exchange also believes that it is equitable and not unfairly
discriminatory to assess lower fees to Customers as compared to other
market participants because Customer order flow enhances liquidity on
the Exchange for the benefit of all market participants. Specifically,
Customer liquidity benefits all market participants by providing more
trading opportunities, which attracts Market-Makers. An increase in the
activity of these market participants in turn facilitates tighter
spreads, which may cause an additional corresponding increase in order
flow from other market participants. The fees offered to Customers are
intended to attract more Customer trading volume to the Exchange.
Moreover, the options industry has a long history of providing
preferential pricing to Customers, and the Exchange's current Fees
Schedule currently does so in many places, as do the fees structures of
many other exchanges. Finally, all fee amounts listed as applying to
Customers will be applied equally to all Customers (meaning that all
Customers will be assessed the same amount).
The Exchange believes that it is equitable and not unfairly
discriminatory to differentiate fees for Non-Customer, Non-Firm, and
Non-Professional Customers based on the contra-party and depending on
if the order is removing or adding liquidity. Overall, the proposed
fees are intended to incent Non-Customer, Non-Firm, and Non-
Professional Customers, including Market-Makers, to quote and trade
more on the Exchange, thereby providing more trading opportunities for
all market participants. The Exchange believes assessing rates in-line
or lower than the rates proposed for other participants or offering
rebates for liquidity-adding transactions may incentivize order flow in
MGTN options, which may lead to an increase in trading activity on the
Exchange. An increase in trading activity, including Market-Maker
activity, in turn facilitates tighter spreads, which may cause an
additional corresponding increase in order flow from other market
participants. The Exchange also believes assessing slightly higher
rates for liquidity-removing transactions contra Non-Customers may
incentivize market participants, including Market-Makers, to add rather
than remove liquidity, thus improving overall market quality for a new
Exchange product.
Fees Programs
The Exchange believes that the proposed updates to the Fees
Schedule in connection with the application of certain fees programs to
transactions in MGTN options are reasonable, equitable and not unfairly
discriminatory. The Exchange believes it is reasonable to exclude MGTN
options from the Liquidity Provider Sliding Scale, the VIP, Break-Up
Credits applicable to Customer Agency Orders in AIM and SAM, the
Marketing Fee, the Floor Broker Sliding Scale Rebate Program, and the
ORS/CORS program because other proprietary index products are also
excepted from these programs.\10\ Moreover, the Exchange notes that the
proposed rule change does not alter any of the existing programs, but
instead, merely proposes not to include transactions in MGTN options in
those programs.
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\10\ See Exchange Fees Schedule, Liquidity Provider Sliding
Scale, Volume Incentive Program, Break-Up Credits, Marketing Fee,
Floor Broker Sliding Scale Rebate Program, Order Router Subsidy
Program and Complex Order Router Subsidy Program.
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The Exchange believes that excluding MGTN options transactions from
certain fees programs is equitable and not unfairly discriminatory
because the programs will equally not apply to, or exclude in the same
manner, all market participants' orders in MGTN options. The Exchange
notes that the proposed rule change does not alter any of the existing
program rates or volume calculations, but instead, merely proposes to
include (or not to) include transactions in MGTN options in those
programs and volume calculations in the same way that transactions in
proprietary index products are (or are not) currently included.
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 Exchange does not
believe that the proposed rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act because the proposed MGTN
transaction fees for the separate types of market participants will be
assessed automatically and uniformly to all such market participants,
as applicable. As discussed above, while different fees are assessed to
different market participants in some circumstances, these different
market participants have different obligations and different
circumstances as discussed above. For example, preferential pricing to
Customers is a long-standing options industry practice which serves to
enhance Customer order flow, thereby attracting Market-Makers to
facilitate tighter spreads and trading opportunities to the benefit of
all market participants. Additionally, the proposed surcharge will be
assessed uniformly to all market participants to whom the FLEX
Surcharge applies.
Further, the proposed rule change will uniformly exclude all
transactions in MGTN options from certain programs and surcharge (i.e.,
Liquidity Provider Sliding Scale, the VIP, Break-Up Credits applicable
to Customer Agency Orders in AIM and SAM, the Marketing Fee, the Floor
Broker Sliding Scale Rebate Program, the ORS/CORS program, and the
Complex Surcharge), as it currently does for many of the Exchange's
other proprietary products. Overall, the proposed rule change is
designed to increase incentivize for customer order flow providers to
submit customer order flow in a newly listed and traded product, which,
as indicated above, contributes to a more robust market ecosystem to
the benefit of all market participants.
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 because the
proposed rule changes apply only to products exclusively listed on the
Exchange.
[[Page 58334]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#c0b2b5aca5eda3afadada5aeb4b380b3a5a3eea7afb6"><span class="__cf_email__" data-cfemail="c1b3b4ada4eca2aeacaca4afb5b281b2a4a2efa6aeb7">[email protected]</span></a>. Please include
file number SR-CBOE-2025-089 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-2025-089. 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-2025-089 and should be submitted on
or before January 6, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-22859 Filed 12-15-25; 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 December 16, 2025.
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