Notice2025-23939

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 14.13 (Company Listing Fees)

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Published
December 30, 2025

Issuing agencies

Securities and Exchange Commission

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<title>Federal Register, Volume 90 Issue 246 (Tuesday, December 30, 2025)</title>
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[Federal Register Volume 90, Number 246 (Tuesday, December 30, 2025)]
[Notices]
[Pages 61192-61194]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23939]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-104493; File No. SR-CboeBZX-2025-166]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 14.13 (Company Listing Fees)

December 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 December 16, 2025, Cboe BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') 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 BZX Exchange, Inc. (``BZX'' or the ``Exchange'') is filing 
with the Securities and Exchange Commission (``Commission'' or ``SEC'') 
a proposal to amend 14.13 (Company Listing Fees) to (1) explicitly 
state that an issuer will be charged the lowest of the applicable 
annual listing fees when multiple fee categories could apply to the 
issuer's securities, and (2) clarify the timing of annual fee 
assessments by specifying that the Exchange assesses all annual fees 
upon initial listing and annually in the first quarter of each calendar 
year. 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to amend Rule 14.13 (Company Listing 
Fees) to provide clarification and codify existing Exchange practices 
regarding the assessment of annual listing fees. Specifically, the 
proposed amendments will: (1) explicitly state that an issuer will be 
charged the lowest of the applicable annual listing fees when multiple 
fee categories could apply to the issuer's securities, and (2) clarify 
the timing of annual fee assessments by specifying that the Exchange 
assesses all annual fees upon initial listing and annually in the first 
quarter of each calendar year.
    These amendments are intended to address potential ambiguity in the 
current rule text and ensure that the Exchange's fee schedule is 
transparent and easily understood by current and prospective issuers. 
The proposed changes do not alter the Exchange's existing fee structure 
or introduce new fees; rather, they codify practices that the Exchange 
has consistently applied in administering annual listing fees.
    First, the clarification that issuers will be charged the lowest 
applicable annual listing fee addresses situations where an issuer's 
securities may fall into multiple fee categories under Rule 14.13. By 
explicitly stating that the Exchange will apply the most favorable fee 
structure, the proposed amendment eliminates any potential confusion 
and ensures consistent, predictable treatment of all issuers. This 
practice is already followed by the Exchange and aligning the rule text 
with operational practice benefits issuers by providing certainty 
regarding their fee obligations.
    Second, the clarification regarding the timing of annual fee 
assessments provides issuers with clear guidance on when fees will be 
invoiced and due. This timing has been the Exchange's longstanding 
practice and codifying it in the rule text enhances transparency and 
allows issuers to better plan and budget for their listing expenses. 
The proposed language does not change when or how fees are assessed; it 
simply makes the existing practice explicit in the rule.
    Listed and prospective issuers will benefit from increased clarity 
and transparency regarding annual listing fees. The explicit statement 
that the lowest applicable fee will be charged provides certainty and 
may reduce inquiries or disputes regarding fee assessments. The timing 
clarification allows issuers to anticipate when annual fees will be 
invoiced, facilitating financial planning. No issuer will experience an 
increase in fees as a result of these amendments.
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.\3\ Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \4\ 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

[[Page 61193]]

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) \5\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers as well as Section 6(b)(4) \6\ as it is designed to 
provide for the equitable allocation of reasonable dues, fees and other 
charges among its Members and other persons using its facilities.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
    \5\ Id.
    \6\ 15 U.S.C. 78f(b)(4).
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    In particular, the proposed rule change promotes just and equitable 
principles of trade and removes impediments to a free and open market 
by enhancing transparency and eliminating potential ambiguity in the 
Exchange's annual listing fee structure. By explicitly codifying that 
issuers will be charged the lowest applicable annual listing fee when 
multiple fee categories could apply, the proposed amendment ensures 
that all issuers receive consistent and predictable treatment. This 
clarity reduces the potential for confusion or disputes regarding fee 
assessments and ensures that issuers are not subject to arbitrary or 
inconsistent fee determinations. Transparent and predictable fee 
structures facilitate informed decision-making by issuers when 
selecting a listing venue, thereby promoting competition among 
exchanges and contributing to the efficient operation of the national 
market system.
    The proposed rule change protects investors and the public interest 
by ensuring that listed companies have clear visibility into their 
ongoing listing obligations and costs. This stability benefits 
investors by reducing the risk of unexpected delistings or financial 
strain on issuers due to unanticipated fee assessments. Additionally, 
by codifying the timing of annual fee assessments the proposed 
amendment provides issuers with the information necessary to plan for 
these obligations, further contributing to listing stability and 
investor protection.
    The proposed rule change is consistent with Section 6(b)(4) of the 
Act because it provides for the equitable allocation of reasonable fees 
among issuers using the Exchange's listing facilities. By explicitly 
stating that the Exchange will charge the lowest applicable fee when 
multiple categories could apply, the amendment ensures that no issuer 
is disadvantaged or charged a higher fee than warranted by the 
characteristics of its securities. This approach treats similarly 
situated issuers consistently and ensures that fee assessments are 
based on objective criteria rather than subjective interpretation. The 
clarification of fee timing similarly promotes equitable treatment by 
ensuring all issuers are assessed fees on the same schedule, 
eliminating any potential for preferential or discriminatory treatment 
in the timing of fee invoicing.
    The proposed rule change does not permit unfair discrimination 
between customers, issuers, brokers, or dealers in accordance with 
Section 6(b)(5) of the Act. The amendments apply uniformly to all 
issuers listed on the Exchange and do not create different standards or 
treatment for different classes of issuers. By codifying that the 
lowest applicable fee will be charged, the Exchange is ensuring that 
all issuers benefit equally from this clarification, regardless of 
size, industry, or other characteristics. The timing clarification 
similarly applies uniformly to all issuers, ensuring consistent 
treatment across the Exchange's listing population.
    Finally, the proposed rule change removes impediments to and 
perfects the mechanism of a free and open market by reducing 
administrative burdens and potential friction in the listing process. 
Clear, unambiguous rules regarding fee assessments allow issuers to 
focus on their business operations and capital formation activities 
rather than navigating uncertainty about listing costs. This efficiency 
benefits the broader market by facilitating capital formation and 
ensuring that exchanges can attract and retain listings based on the 
merits of their services rather than confusion about fee structures. 
Moreover, because the proposed amendments codify existing Exchange 
practices rather than introducing new requirements, they impose no new 
burdens on issuers while providing the benefits of enhanced clarity and 
transparency.

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 amendments are 
clarifications that codify existing Exchange practices and do not alter 
the substantive fee structure or create new obligations for any market 
participant.
    The proposed rule change does not impose any burden on intramarket 
competition. The amendments apply uniformly to all issuers listed or 
seeking to list on the Exchange, regardless of issuer size, industry, 
security type, or other characteristics. By explicitly codifying that 
the Exchange will charge the lowest applicable annual listing fee when 
multiple fee categories could apply, the proposed rule change ensures 
consistent and equitable treatment of all issuers. No category of 
issuer is advantaged or disadvantaged relative to other issuers as a 
result of these clarifications. The timing clarification similarly 
applies uniformly to all issuers, ensuring that annual fees are 
assessed on the same schedule for all market participants. Because the 
amendments codify existing practices rather than introducing new 
requirements or fee structures, no issuer will experience any change in 
competitive position relative to other issuers on the Exchange.
    The proposed rule change does not impose any burden on intermarket 
competition. The amendments enhance transparency and clarity regarding 
the Exchange's annual listing fee structure and assessment timing, 
which may make the Exchange's fee schedule more easily understood by 
prospective issuers comparing listing venues. To the extent that 
increased transparency benefits issuers listed on the Exchange, this 
reflects legitimate competition among exchanges based on the clarity 
and predictability of their fee structures. Issuers are free to choose 
among competing listing venues based on their evaluation of fees, 
services, and other factors. Other exchanges remain free to adopt 
similar clarifications to their own fee schedules or to compete on 
other dimensions of listing services. The proposed amendments do not 
create barriers to competition or prevent other exchanges from offering 
competitive listing services.
    The proposed rule change does not involve the Exchange undertaking 
activities usually performed by other market participants. The 
amendments relate solely to the Exchange's administration of its own 
listing fee schedule, which is a core exchange function. No broker-
dealer, service provider, or other market participant is displaced or 
burdened by these clarifications.
    The Exchange believes that the proposed rule change will relieve 
any burden on, or otherwise promote, competition. By enhancing 
transparency and eliminating potential ambiguity in

[[Page 61194]]

the Exchange's fee structure, the proposed amendments facilitate more 
informed decision-making by issuers when selecting a listing venue. 
Clear, predictable fee structures allow issuers to compare listing 
costs across exchanges more easily, thereby promoting competition among 
exchanges based on the merits of their services and fee structures. The 
explicit codification that the Exchange will charge the lowest 
applicable fee when multiple categories could apply demonstrates the 
Exchange's commitment to fair and transparent pricing, which may 
enhance the Exchange's competitive position based on the quality and 
clarity of its fee schedule rather than on confusion or ambiguity. This 
type of competition--based on transparency, predictability, and fair 
treatment--benefits issuers and contributes to the efficient operation 
of the national market system.

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 \7\ and paragraph (f) of Rule 19b-4 \8\ 
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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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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#0e7c7b626b236d6163636b607a7d4e7d6b6d20696178"><span class="__cf_email__" data-cfemail="5c2e293039713f3331313932282f1c2f393f723b332a">[email&#160;protected]</span></a>. Please include 
file number SR-CboeBZX-2025-166 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-CboeBZX-2025-166. 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-CboeBZX-2025-166 and should be submitted 
on or before January 20, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-23939 Filed 12-29-25; 8:45 am]
BILLING CODE 8011-01-P


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