Notice2026-00799
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule
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Published
January 16, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 11 (Friday, January 16, 2026)</title>
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[Federal Register Volume 91, Number 11 (Friday, January 16, 2026)]
[Notices]
[Pages 2219-2222]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-00799]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104585; File No. SR-CBOE-2026-002]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fees Schedule
January 13, 2026.
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 January 2, 2026, 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
The Exchange proposes to amend its Fees Schedule to update Access
Badges fees, amend the GTH Executing Agent Subsidy Program, and
eliminate certain LMM Incentive 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
[[Page 2220]]
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 amend its Fees Schedule, effective January
2, 2026.
Update to Access Badge Fees
The Exchange proposes to amend the Access Badges table in the Fees
Schedule. Currently, the Exchange assesses a $70.00 per month fee for
Clerk and other Trading Permit Holder (``TPH'') employee badges and a
$130.00 per month fee for Floor Manager badges. The Exchange proposes
to eliminate these two badge types and instead adopt a single Access
Badge at $100.00 per month, applicable to Clerks, other TPH employees,
and Floor Managers.
Further, the Exchange proposes to eliminate the replacement Access
Badge fee. Currently, the Exchange assesses a replacement fee of $100
per badge for lost Access Badges. The Exchange no longer wishes to
assess a fee for lost Access Badges and now proposes to eliminate this
replacement Access Badge fee.
Update to GTH Executing Agent Subsidy Program
Next, the Exchange proposes to amend the Global Trading Hours
(``GTH'') Executing Agent Subsidy Program, set forth in the Fees
Schedule. The GTH Executing Agent Subsidy Program offers a monthly
subsidy to TPHs with executing agent operations \3\ during the GTH
trading session. Pursuant to the current GTH Executing Agent Subsidy
Program, a designated GTH executing agent receives the monthly subsidy
amount that corresponds to the number of contracts executed on behalf
of customers (including professional, public and broker-dealer
customers) during GTH in a calendar month, as shown in the table below.
Qualifying customer volume is limited to SPX and VIX options.
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\3\ An executing agent operation is one that accepts orders from
customers (who may be public or broker-dealer customers) and submits
the orders for execution (either directly to the Exchange or through
another TPH).
------------------------------------------------------------------------
GTH monthly customer SPX and VIX options volume Subsidy
------------------------------------------------------------------------
0-19,999 contracts............................................ $0.00
20,000-99,999 contracts....................................... 15,000
100,000+ contracts............................................ 50,000
------------------------------------------------------------------------
To become a designated GTH executing agent, a TPH must submit a
form to the Exchange no later than 3:00 p.m. on the second to last
business day of a calendar month to be designated an GTH executing
agent under the program, and thus eligible for the subsidy, beginning
the following calendar month. The current criteria states that a TPH
must include on or with the form information demonstrating it maintains
an GTH executing agent operation: (1) physically staffed throughout
each entire GTH trading session and (2) willing to accept and execute
orders on behalf of customers. The designation will be effective the
first business day of the following calendar month, subject to the
Exchange's confirmation the TPH's GTH executing agent operations
satisfies these two conditions and will remain in effect until the
Exchange receives an email from the TPH terminating its designation or
the Exchange determines the TPH's GTH executing agent operation no
longer satisfies these two conditions.
The Exchange proposes to amend the GTH monthly customer volume
thresholds and corresponding subsidy amounts, as shown in the table
below.
------------------------------------------------------------------------
GTH monthly customer SPX and VIX options volume Subsidy
------------------------------------------------------------------------
0-24,999 contracts............................................ $0.00
25,000-49,999 contracts....................................... 15,000
50,000-74,999 contracts....................................... 25,000
75,000-99,999 contracts....................................... 35,000
100,000+ contracts............................................ 50,000
------------------------------------------------------------------------
The proposed changes introduce additional tiers in 25,000 contract
increments between the current tiers to better incentivize GTH growth
for firms at different GTH activity levels, and increases the minimum
volume threshold required to qualify for subsidy payments. Such changes
are designed to continue to encourage designated GTH executing agents
to increase their order flow executed as agent in SPX and VIX options
that trade during GTH, to meet the volume thresholds, as amended, and
receive the corresponding subsidies. The Exchange notes that
incentivizing TPHs to conduct executing agent operations willing to
accept orders from all customers during GTH is intended to increase
customer accessibility to the GTH trading session. The Exchange
believes that increased order flow through designated GTH executing
agents would allow the Exchange to grow participation during GTH, which
may benefit all market participants, as additional liquidity to the
Exchange during GTH would create more trading opportunities during GTH,
and in turn attract market participants to submit additional order flow
during GTH.
LMM Program Updates
Finally, the Exchange propose to eliminate the MSCI, MXACW, MSUSA,
and MXWLD LMM Incentive Programs (the ``LMM Incentive Programs''), set
forth in the Fees Schedule. By way of background, each LMM Incentive
Program provides a rebate to TPHs with LMM appointments to the
respective incentive program that meet certain quoting standards in the
applicable series in a month. Meeting or exceeding the quoting
standards in each of the LMM Incentive Program products to receive the
applicable rebate is optional for an LMM appointed to a program.
Rather, an LMM appointed to an incentive program is eligible to receive
the corresponding rebate if it satisfies the applicable quoting
standards.
The Exchange is not required to offer these LMM Incentive Programs
and no longer desires to do so, as of January 2, 2026. As such, the
Exchange proposes deleting each of the LMM Incentive Program details
set forth in the Fees Schedule.
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.\4\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \5\ 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) \6\ requirement that
[[Page 2221]]
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,\7\ 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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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
\6\ Id.
\7\ 15 U.S.C. 78F(b)(4).
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The Exchange believes the proposed rule change to consolidate the
Clerk and other TPH employee badge and Floor Manager badge types into a
single Access Badge is reasonable, as it simplifies the Exchange's fee
structure and streamlines the badge administration process. Further,
the proposed $100.00 monthly fee, which is the midpoint between the
current $70.00 and $130.00 monthly fee for Clerk and other TPH employee
badges and Floor Manager badges, respectively, reflects a balanced
approach that moderately increases costs for some badge holders while
decreasing costs for others. The Exchange believes this pricing is
reasonable given the costs associated with maintaining floor
operations. The fee is designed to recover the Exchange's costs of
providing and administering physical access to the trading floor. The
Exchange believes the proposed rule change is equitable and not
unfairly discriminatory, as the proposed Access Badge fee applies
uniformly to all TPHs. Further, the proposed badge fee changes align
the Exchange's fee structure with at least one other options exchange,
which assesses a $100.00 per month badge fee for other registered on-
floor persons employed by or associated with a Floor Market Maker or
Floor Broker.\8\
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\8\ See BOX Exchange Fee Schedule, Section I (D)(c).
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The Exchange believes eliminating the replacement Access Badge fee
is reasonable because it reduces administrative costs for both the
Exchange and TPHs while simplifying the badge fee structure. While the
Exchange originally adopted the replacement fee to incentivize badge
retention, the Exchange has determined that the administrative burden
of assessing replacement fees is no longer justified by the fee. The
Exchange believes eliminating the replacement Access Badge fee is
equitable and not unfairly discriminatory because it applies uniformly
to all TPHs, in that no TPHs will be required to pay a replacement
Access Badge fee and all TPHs will benefit from the elimination of a
potential cost associated with lost badges.
Additionally, the Exchange believes that the proposed amendments to
the GTH Executing Agent Subsidy Program are reasonable. The GTH
Executing Agent Subsidy Program is overall designed to encourage
designated GTH executing agents to increase their customer order flow
in SPX and VIX options traded during GTH. As noted above, such changes
are designed to continue to encourage designated GTH executing agents
to increase their order flow executed as agent in SPX and VIX options
that trade during GTH, to meet the volume thresholds, as amended, and
receive the corresponding subsidies. The Exchange notes that
incentivizing TPHs to conduct executing agent operations willing to
accept orders from all customers during GTH is intended to increase
customer accessibility to the GTH trading session. The Exchange
believes that increased order flow through designated GTH executing
agents would allow the Exchange to grow participation during GTH, which
may benefit all market participants, as additional liquidity to the
Exchange during GTH would create more trading opportunities during GTH,
and in turn attract market participants to submit additional order flow
during GTH.
Further, the Exchange believes such changes are reasonable, as the
volume thresholds, as amended, remain commensurate with the
corresponding subsidy amounts. The proposed changes effectively
introduce additional tiers in 25,000 contract increments between the
current tiers to better incentivize GTH growth for firms at different
GTH activity levels, and increases the minimum volume threshold
required to qualify for subsidy payments. The amended tiers, as
proposed, present the opportunity for designated GTH executing agents
submitting 50,000 to 99,999 customer contracts in SPX or VIX options to
receive slightly larger subsidies than that which are currently offered
by the program. While the amended tiers, as proposed, increase the
minimum volume threshold required to qualify for subsidy payments (from
20,000 to 25,000 customer contracts in SPX or VIX options), the
Exchange believes the proposed change is reasonable, as the proposed
change is designed to encourage designated GTH executing agents to
increase their order flow executed as agent in SPX and VIX options that
trade during GTH. Further, the proposed changes reallocate program
resources to provide enhanced subsidies to designated GTH executing
agents submitting 50,000 to 99,999 customer contracts in SPX or VIX
options.
The Exchange also believes that the proposed rule changes related
to the GTH Executing Agent Subsidy Program are equitable and not
unfairly discriminatory. In particular, the Exchange believes that
amending the volume thresholds and corresponding subsidies for the GTH
Executing Agent Subsidy Program is equitable and not unfairly
discriminatory because all TPHs that conduct this type of operation
during GTH will continue to have the opportunity to become a designated
GTH executing agent and thus eligible for the monthly subsidy
commensurate with applicable customer volumes. As noted above, the
proposed changes reflect the growth of the GTH trading session and are
designed to continue to encourage designated GTH executing agents to
increase their order flow executed as agent in SPX and VIX symbols that
trade during GTH, to meet the volume thresholds, as amended, and
receive corresponding subsidies. TPHs that conduct executing agent
operations willing to accept orders from all customers take on
additional risks and potential costs (including those related to
staffing and clearing) associated with this type of business. Such TPHs
also provide benefits to investors during GTH, including increased
customer accessibility to the GTH trading session and increased order
flow. While the Exchange has no way of predicting with certainty how
the changes will impact TPH activity, the Exchange anticipates that
approximately two TPHs may be able to achieve the 25,000 to 49,000
contracts volume threshold, approximately one TPH may be able to
achieve the 50,00 to 74,999 contracts volume threshold, no TPHs would
currently meet the 75,000 to 99,999 contracts threshold, and
approximately one TPH may be able to achieve the 100,000+ contracts
threshold. However, all TPHs that conduct this type of operation during
GTH will continue to have the opportunity to become a designated GTH
executing agent and increase their order applicable order flow to meet
the volume thresholds, as amended, and receive corresponding subsidies.
Finally, the Exchange believes the proposed change to eliminate the
LMM Incentive Programs is reasonable, equitable and not unfairly
discriminatory. As noted above, the Exchange is not required to offer
these LMM Incentive Programs and no longer desires to do so. The
proposed change is reasonable, as the Exchange wishes to reallocate
resources to its other pricing programs, as well as to developing other
[[Page 2222]]
pricing programs that may benefit market participants.
The Exchange believes the proposed change is equitable and is not
unfairly discriminatory, as the proposed change applies to all Market-
Makers equally. While no Market-Maker will be or continue to be
eligible for the eliminated LMM Incentive Programs, all Market-Makers
remain eligible to participate in the Exchange's other pricing
programs, including other LMM Incentive Programs offered by the
Exchange.
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. As noted above, the proposed
Access Badge fee applies uniformly to all TPHs. Similarly, the Exchange
the proposed change to eliminate the replacement Access Badge fee
applies uniformly to all TPHs, in that no TPHs will be required to pay
a replacement Access Badge fee and all TPHs will benefit from the
elimination of a potential cost associated with lost badges.
Further, in regard to the proposed changes to the GTH Executing
Agent Subsidy Program, all TPHs that conduct executing agent operations
willing to accept orders from all customers will continue to have an
opportunity to be eligible for the GTH Executing Agent Subsidy program.
Also, such TPHs that conduct this type of operation take on additional
risks and potential costs (including those related to staffing and
clearing) associated with this type of business, and may provide
benefits to investors during GTH, including increased customer
accessibility to, and liquidity and trading opportunities during, the
GTH trading session. The proposed changes are designed to continue to
encourage designated GTH executing agents to increase their order flow
executed as agent in SPX and VIX symbols that trade during GTH, to meet
the proposed amended volume threshold and receive the proposed
corresponding subsidies.
Finally, the proposed change to eliminate the LMM Incentive
Programs applies to all Market-Makers equally. While no Market-Maker
will be or continue to be eligible for the eliminated LMM Incentive
Programs, all Market-Makers remain eligible to participate in the
Exchange's other pricing programs, including other LMM Incentive
Programs offered by the Exchange.
The Exchange also does not believe that the proposed changes will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the Act. As noted above, the proposed
badge fee changes align the Exchange's fee structure with at least one
other options exchange, which assesses a $100.00 per month badge fee
for other registered on-floor persons employed by or associated with a
Floor Market Maker or Floor Broker \9\ and which does not charge a
replacement badge fee.\10\
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\9\ See BOX Exchange Fee Schedule, Section I (D)(c).
\10\ See BOX Exchange Fee Schedule, Section I (Trading
Participant Fees).
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Further, in regard to the proposed changes to the GTH Executing
Agent Subsidy Program and the LMM Incentive Programs, the Exchange does
not believe 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, as the proposed changes apply
only to fees and programs applicable to transactions in products that
are currently exclusively listed on the Exchange.
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#5220273e377f313d3f3f373c2621122137317c353d24"><span class="__cf_email__" data-cfemail="691b1c050c440a0604040c071d1a291a0c0a470e061f">[email protected]</span></a>. Please include
file number SR-CBOE-2026-002 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-2026-002. 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-2026-002 and should be submitted on
or before February 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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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-00799 Filed 1-15-26; 8:45 am]
BILLING CODE 8011-01-P
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