Notice2026-02474
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
February 9, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 26 (Monday, February 9, 2026)</title>
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[Federal Register Volume 91, Number 26 (Monday, February 9, 2026)]
[Notices]
[Pages 5792-5795]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02474]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104767; File No. SR-CBOE-2026-014]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fees Schedule
February 4, 2026.
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 January 29, 2026, 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
The Exchange proposes to amend its Fees Schedule to add Russell
2000 Index (``RUT'') options to the GTH Executing Agent Subsidy
Program, amend certain quote widths of the GTH Cboe Volatility Index
(``VIX'') and VIX Weekly (``VIXW'') Lead Market-Maker (``LMM'')
Incentive Program, add RUT to Fees Schedule Footnotes describing GTH
and Curb, and to correct an inadvertent inconsistency within the Fees
Schedule. 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, effective
February 2, 2026.
Amendment to the GTH Executing Agent Subsidy Program
First, the Exchange proposes to amend the GTH Executing Agent
Subsidy Program, set forth in the Fees Schedule. The GTH Executing
Agent Subsidy Program offers a monthly subsidy to Exchange Trading
Permit Holders (``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.
Currently, qualifying customer volume is limited to S&P 500 Index
(``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
------------------------------------------------------------------------
0-24,999 contracts............................................ $0.00
25,000-49,000 contracts....................................... 15,000
50,000-74,999 contracts....................................... 25,000
75,000-99,999 contracts....................................... 35,000
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. A TPH must include on or with the form
information demonstrating it maintains a 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 becomes effective the first business day of the following
calendar month, subject to the Exchange's confirmation that 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 Executing Agent Subsidy
Program to add RUT options to qualifying customer volume under the GTH
Executing Agent Subsidy Program. As such, the Exchange proposes to add
language to its Fees Schedule to reflect that qualifying customer
volume under the program includes GTH monthly customer RUT options
volume, in addition to SPX and VIX options volume. The proposed
amendment is designed to encourage designated GTH executing agents to
increase their order flow executed as agents in RUT options that trade
during GTH and to meet the volume thresholds and receive the
corresponding subsidies. Additionally, the proposed amendment reflects
the overall growth of the GTH Executing Agent Subsidy Program and
customer demand for RUT options to be added to the program.
Amendment to the GTH VIX/VIXW LMM Incentive Program
Next, the Exchange proposes to amend its Fees Schedule in
connection with the GTH VIX/VIXW LMM Incentive Program by generally
decreasing certain of the VIX quote
[[Page 5793]]
width requirements. By way of background, the GTH VIX/VIXW LMM
Incentive Program provides a rebate to Trading Permit Holders with an
LMM appointment to the incentive program that meet certain quoting
standards in a month. The Exchange notes that meeting or exceeding the
quoting standards (both current and as proposed; described in further
detail below) in the VIX and VIXW to receive the applicable rebate
(both currently offered and as proposed; described in further detail
below) is optional for LMMs appointed to the program. Particularly, an
LMM appointed to the incentive program is eligible to receive the
corresponding rebate if it satisfies the applicable quoting standards,
which the Exchange believes encourages appointed LMMs to provide
liquidity in the VIX and VIXW during GTHs. The Exchange may consider
other exceptions to the program's quoting standards based on
demonstrated legal or regulatory requirements or other mitigating
circumstances. In calculating whether an LMM appointed to the incentive
program meets the program's quoting standards each month, the Exchange
excludes from the calculation in that month the business day in which
the LMM missed meeting or exceeding the quoting standards in the
highest number of the VIX and VIXW.
The current GTH VIX/VIXW LMM Incentive Program provides that, if
the appointed LMM provides continuous electronic quotes during GTH
(i.e., from 7:15 p.m. CST to 8:25 a.m. CST the next day) that meet or
exceed the VIX and VIXW basic quoting standards \4\ in at least 95% of
each of the VIX and VIXW series, 90% of the time in a given month, the
LMM will receive a rebate for that month in the amount of $30,000 for
VIX and $5,000 for VIXW (or pro-rated amount if an appointment begins
after the first trading day of the month or ends prior to the last
trading day of the month) for that month.
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\4\ Located in the ``GTH VIX/LMM Incentive Program'' table in
the Exchange's Fees Schedule.
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The Exchange proposes to amend the percentage of the time an
appointed LMM must provide continuous electronic quotes during GTH that
meet or exceed the basic quoting standards in a given month to receive
a rebate for that month, from 90% of the time to 85% of the time.
Additionally, the Exchange proposes to adopt a new set of VIX basic
quoting standards (below) under the GTH VIX/VIXW LMM Incentive Program.
All except one proposed change decreases quote widths (proposed
decreased widths are denoted with an asterisk; the proposed increased
width is denoted with two asterisks).
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Expiring Near term Mid term Long term
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Premium level Less than 15 days 15 days to 60 days 61 days to 180 days 181 days or greater
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Width Size Width Size Width Size Width Size
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VIX Value at Prior to Close <18
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$0.00-$1.00.................................................. $0.20 30 $0.16 40 $0.20 30 $0.50 5
$1.01-$3.00.................................................. * 0.25 20 * 0.20 25 0.25 15 0.70 5
$3.01-$5.00.................................................. * 0.35 15 ** 0.35 15 0.40 10 1.00 5
$5.01-$10.00................................................. * 0.60 10 * 0.60 10 * 1.00 10 2.00 5
$10.01-$30.00................................................ * 1.20 5 * 1.20 5 * 1.50 5 3.00 3
Greater than 30.............................................. * 3.00 3 * 3.00 3 * 3.00 3 5.00 3
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VIX Value at Prior Close From 18-25
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$0.00-$1.00.................................................. 0.30 15 0.30 30 0.30 15 * 0.75 5
$1.01-$3.00.................................................. 0.35 10 0.35 20 0.40 10 1.00 5
$3.01-$5.00.................................................. * 0.40 5 * 0.40 15 * 0.50 5 1.30 5
$5.01-$10.00................................................. * 0.75 5 * 0.75 5 * 1.20 5 2.20 5
$10.01-$30.00................................................ * 2.00 1 * 2.00 1 2.50 1 5.00 1
Greater than 30.............................................. * 4.00 1 * 4.00 1 * 4.00 1 8.00 1
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VIX Value at Prior Close From <ls-thn-eq>25
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$0.00-$1.00.................................................. 0.80 10 0.50 10 0.60 10 1.20 5
$1.01-$3.00.................................................. 1.00 10 0.75 10 1.00 10 1.20 5
$3.01-$5.00.................................................. 1.20 5 0.90 10 1.20 5 1.80 5
$5.01-$10.00................................................. 2.00 5 1.50 5 2.50 5 3.00 3
$10.01-$30.00................................................ 4.00 1 4.00 1 4.00 1 6.00 1
Greater than 30.............................................. * 8.00 1 * 8.00 1 * 8.00 1 10.00 1
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Additional Amendments Within the Fees Schedule
Next, the Exchange proposes to amend Footnotes 37 and 42 of the
Fees Schedule by adding RUT options to the description of GTH and Curb.
The GTH session is described in Footnote 37 of the Exchange's Fees
Schedule, which currently states that GTH is a trading session for VIX,
SPX, S&P 500 Index Weekly (``SPXW''), and Mini-SPX (``XSP'') options
from 7:15 p.m. CST to 8:25 a.m. CST. The Curb session is described in
Footnote 42 of the Exchange's Fees Schedule, which currently states
that Curb is a separate trading session from Regular Trading Hours and
GTH, for VIX, SPX, SPXW, and XSP options from 3:15 p.m. CST to 4:00
p.m. CST. The Exchange proposes to add RUT options to Footnote 37 and
42 in the Exchange's Fees Schedule to reflect that the GTH and Curb
trading sessions include RUT. The Exchange notes that RUT has already
been added to the GTH and Curb trading sessions in the Exchange's
Rulebook under Rule 5.1, Trading Days and Hours,\5\ and proposes to add
language to the Fees
[[Page 5794]]
Schedule to denote that the Exchange will offer RUT during GTH and
Curb.
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\5\ See Securities Exchange Act Release No. 104228 (November 19,
2025), 90 FR 53013 (November 24, 2025) (SR-CBOE-2025-070).
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Finally, the Exchange proposes to amend its Fees Schedule to remove
an incompatible reference to a Footnote 49 contained in the ``Rate
Table-All Products Excluding Underlying Symbol List A'' (``Rate
Table'') of the Fees Schedule. The Rate Table refers viewers to
Footnote 49 with regard to the XSP options product. Footnote 49 does
not relate to the XSP options product; therefore, the Exchange proposes
to remove this incompatible reference from its 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.\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 amendment to add
the GTH Executing Agent Subsidy Program is reasonably designed to
encourage GTH executing agents to increase their customer flow in RUT
options traded during GTH. The Exchange believes that the proposed
change is reasonable because, as discussed above, the proposed
amendment reflects the overall growth of the GTH Executing Agent
Subsidy Program and customer demand for RUT options to be added to the
program. Thus, the proposed change supports the free and open market
and a national market system. Further, the proposed changes are
designed to encourage executing agents to increase their order flow in
RUT options that trade during GTH, meet the volume thresholds, and to
receive corresponding subsidies. The Exchange believes that increased
order flow would allow the Exchange to grow participation in the GTH
trading session to the benefit of all market participants that trade
during GTH by providing greater trading opportunities as a result of
increased liquidity, thereby attracting additional order flow from
market participants during GTH. The Exchange also believes that adding
RUT options to the GTH Executing Agent Subsidy Program is reasonable,
given the Exchange wishes to incentivize increased order flow in RUT
options, specifically during GTH.
Similarly, the Exchange believes the proposed changes to amend
certain of the basic VIX quote width requirements applicable to the GTH
VIX/VIXW LMM Incentive Program are reasonable. The proposed quoting
standards are overall reasonably designed to continue to encourage LMMs
appointed to the incentive programs to provide significant liquidity in
these options, which benefits investors overall by providing more
trading opportunities, tighter spreads, and added market transparency
and price discovery. The proposed changes adopt generally decreased
widths for VIX. The Exchange believes that by adopting heightened
quoting standards that provide for decreased widths, the proposed rule
change offers LMMs appointed to the programs a more challenging
opportunity, thus further incentive, to strive to meet the heightened
quoting standards in order to receive the additional rebate on their
VIX options orders. The proposed change to the percentage of the time
an appointed LMM must provide continuous electronic quotes during GTH
that meet or exceed the basic quoting standards in a given month to
receive a rebate from 90% of the time to 85% of the time also slightly
offsets the proposed decreased width for VIX, ensuring the rebates
offered by the program remain attainable. As noted above, the proposed
quoting standards are overall reasonably designed to continue to
encourage LMMs appointed to the incentive programs to provide
significant liquidity in these options, which benefits investors
overall by providing more trading opportunities, tighter spreads, and
added market transparency and price discovery.
The Exchange also notes that the proposed quoting standards for VIX
options and the proposed change to percentage of the time required to
meet or exceed the basic quoting standards in a given month do not
represent a significant departure from each of the program's current
quote width and size standards and remain generally aligned with the
current heightened standards in the programs, as the proposed width
sizes and percentage are only marginally changed in order to
incentivize an increase in quoting activity.
The Exchange believes the proposed change to add RUT options to the
GTH Executing Agent Subsidy Program is equitable and not unfairly
discriminatory because the change will uniformly apply to all
designated GTH executing agents that participate in the program.
Similarly, the Exchange believes that the proposed changes to the GTH
VIX/VIXW LMM Incentive Program are equitable and not unfairly
discriminatory because the changes to the program will apply equally to
any and all TPHs with LMM appointments to the incentive program. To the
extent the LMMs appointed to the incentive program receive a benefit
that other market participants do not, these LMMs in their role as
Market-Makers on the Exchange have different obligations and are held
to different standards. For example, Market-Makers play a crucial role
in providing active and liquid markets in their appointed products,
thereby providing a robust market which benefits all market
participants. Such Market-Makers also have obligations and regulatory
requirements that other participants do not have. The Exchange also
notes that an LMM appointed to the GTH VIX/VIXW LMM Incentive Program
may undertake added costs each month to satisfy that heightened quoting
standards, such as having to purchase additional logical connectivity.
Finally, the Exchange believes that the proposed amendments to
Footnotes 37 and 42 and the proposal to remove the incompatible
reference to Footnote 49 from the Rate Table contained in its Fees
Schedule are reasonable as these proposed amendments are targeted
solely at clarifying the contents of the Fees Schedule and ensuring its
alignment with the current offerings of the Exchange. The Exchange
believes these proposed amendments will alleviate potential confusion,
thereby removing impediments to and perfecting the mechanism of a free
and open market and a national market system and protecting investors
and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition that is not necessary or appropriate
in furtherance
[[Page 5795]]
of the purposes of the Act. Specifically, as discussed above, the
Exchange believes that the proposed addition of RUT options the GTH
Executing Agent Subsidy Program would encourage the submission of
additional liquidity to the floor of a public exchange, thereby
promoting market depth, price discovery and transparency and enhancing
order execution and price improvement opportunities for all TPHs. As a
result, the Exchange believes that the proposed change will foster
competition among orders and promote more efficient pricing.
Additionally, the Exchange does not believe the proposed rule
changes regarding the GTH VIX/VIXW LMM Incentive Program will impose
any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because these
changes will apply to all LMMs appointed to the program in a uniform
manner. As noted above, to the extent the LMMs appointed to the
incentive program receive a benefit that other market participants do
not, these LMMs in their role as Market-Makers on the Exchange have
different obligations and are held to different standards. For example,
Market-Makers play a crucial role in providing active and liquid
markets in their appointed products, thereby providing a robust market
which benefits all market participants. Such Market-Makers also have
obligations and regulatory requirements that other participants do not
have. The Exchange also notes that an LMM appointed to the GTH VIX/VIXW
LMM Incentive Program may undertake added costs each month to satisfy
that heightened quoting standards, such as having to purchase
additional logical connectivity. As a result, the Exchange believes
that the proposed change furthers the Commission's goal in adopting
Regulation NMS of fostering competition among orders.
The Exchange also does not believe the proposed amendments to
Footnotes 37 and 42 to clarify that the GTH and Curb trading sessions
include RUT will impose any burden on competition because these
amendments are intended only to clarify and align the Exchange's Fees
Schedule with the current offerings of the Exchange. Similarly, the
Exchange does not believe the proposed amendment to remove the
incompatible reference to a Footnote 49 contained in the Rate Table of
the Fees Schedule will impose any burden on competition because the
proposed change is merely intended to correct an inadvertent marking
error made in a previous rule filing, which will alleviate potential
confusion.
Finally, 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.
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 \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#3341465f561e505c5e5e565d4740734056501d545c45"><span class="__cf_email__" data-cfemail="384a4d545d155b5755555d564c4b784b5d5b165f574e">[email protected]</span></a>. Please include
file number SR-CBOE-2026-014 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-2026-014. 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-2026-014 and should be submitted on
or before March 2, 2026.
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. 2026-02474 Filed 2-6-26; 8:45 am]
BILLING CODE 8011-01-P
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