Notice2026-03125
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule for Trading on the BOX Options Market LLC Facility Relating to Connectivity Fees
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
February 18, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 32 (Wednesday, February 18, 2026)</title>
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[Federal Register Volume 91, Number 32 (Wednesday, February 18, 2026)]
[Notices]
[Pages 7600-7602]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03125]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104828; File No. SR-BOX-2026-04]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee
Schedule for Trading on the BOX Options Market LLC Facility Relating to
Connectivity Fees
February 12, 2026.
Pursuant to Section 19(b)(1) under the Securities Exchange Act of
1934 (the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby
given that on January 30, 2026, BOX Exchange LLC (the ``Exchange'')
filed with the Securities and Exchange Commission (the ``Commission'')
the proposed rule change as described in Items I and II below, which
Items have been prepared by the Exchange. The Exchange filed the
proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange is filing with the Securities and Exchange Commission
(``Commission'') a proposed rule change to amend the Fee Schedule
relating to connectivity fees for the BOX Options Market LLC (``BOX'')
facility. Specifically, the Exchange proposes to amend Section III.A.2.
(BOX Connectivity Fees) of the Fee Schedule to amend the fees for its
10 gigabit (``Gb'') Connections. While changes to the fee schedule
pursuant to this proposal will be effective upon filing, the changes
will become operative on February 2, 2026. The text of the proposed
rule change is available from the principal office of the Exchange, and
on the Exchange's internet website at <a href="https://rules.boxexchange.com/rulefilings">https://rules.boxexchange.com/rulefilings</a>.
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 proposes to amend the Fee Schedule to increase
connectivity fees for 10 Gb Connections. Specifically, the Exchange
proposes to increase its fees for connectivity in Section III.A.2 of
the Fee Schedule.
By way of background, a physical connection is utilized by a
Participant or non-Participant to connect to BOX at the datacenters
where the servers are located. BOX currently assesses the following
physical connectivity fees for Participants and non-Participants on a
monthly basis: $1,080 per connection for a Non-10 Gb Connection and
$5,400 per connection for a 10 Gb Connection. The Exchange proposes to
increase the monthly fee for each 10 Gb Connection from $5,400 to
$6,000. The Exchange notes the proposed fee change will better enable
BOX to continue to maintain and improve its market technology and
services. BOX has expended, and will continue to expend, resources to
innovate and modernize technology so that it may benefit its
Participants and continue to compete among other options markets. BOX
regularly invests in efforts to support and optimize the systems to
support
[[Page 7601]]
system capacity, reliability, and performance.
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.\5\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \6\ 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) \7\ 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) \8\ of the Act,
which requires that Exchange rules provide for the equitable allocation
of reasonable dues, fees, and other charges among its Participants and
other persons using its facilities.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
\7\ Id.
\8\ 15 U.S.C. 78f(b)(4).
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The Exchange believes the proposed fee is reasonable as it is lower
than the amounts assessed by other exchanges for analogous market
access connections and which were similarly adopted via the rule filing
process and filed with the Commission. For instance, the Exchange notes
that Nasdaq PHLX LLC (``PHLX'') currently charges its members a $1,650
installation fee and an ongoing $18,500 monthly fee for its 10Gb Ultra
fiber connection.\9\ Similarly, PHLX also charges its members a $1,000
[sic] installation fee and an ongoing monthly fee of $11,000 for its
10Gb fiber connection.\10\ Comparatively, the Exchange's proposed fee
of $6,000 is $12,500 less than the ongoing monthly fee PHLX charges its
members for its 10Gb ultra fiber connection, and $5,000 less than the
ongoing monthly fee for PHLX's 10Gb fiber connection. Moreover, unlike
PHLX, the Exchange does not charge its Participants and non-
Participants an installation fee for its 10 Gb Connection.
Additionally, Cboe Exchange, Inc. (``CBOE'') currently charges its TPHs
and non-TPHs an ongoing $8,000 monthly fee for its 10 Gb physical port
connection.\11\ Comparatively, the Exchange's proposed fee of $6,000 is
$2,000 less than the ongoing monthly fee CBOE charges its TPHs and non-
TPHs for its 10 Gb physical port connection.
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\9\ See PHLX Rules, General 8 (Connectivity). The Exchange notes
that a market participant that purchases PHLX's 10 Gb ultra fiber
connection can also use such connection to connect to its various
affiliated exchanges. PHLX charges such market participant the
monthly fee of $18,500 regardless of how many of its affiliated
exchanges are accessed through the 10 Gb ultra fiber connection. See
Securities Exchange Act Release No. 104266 (November 25, 2025), 90
FR 55196 (December 1, 2025) (SR-PHLX-2025-60) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Modify the Price
of a 10Gb Ultra Fiber Connection to the Exchange).
\10\ Id.
\11\ See Cboe Options Fee Schedule.
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Further, the Exchange believes the proposed fee increase is
reasonable in light of BOX's continued expenditure in maintaining a
robust technology ecosystem. Furthermore, BOX continues to invest in
maintaining and enhancing its connectivity services--for the benefit
and often at the behest of its Participants. The goal of these
investments, among other things, is to provide faster and more
consistent order handling and matching performance for options, while
ensuring quicker processing time and supporting increasing volumes.
Accordingly, BOX continuously invests in improvements that enhance the
value of its connectivity services and will continue to expend
resources to innovate and modernize technology so that it may benefit
its Participants and non-Participants and continue to compete among
other options markets. BOX regularly invests in efforts to support and
optimize the systems to support system capacity, reliability, and
performance.
The proposed fee change is an equitable allocation of fees because
it reflects the substantial value that the 10 Gb Connection provides to
Participants and non-Participants. This connectivity option is
particularly attractive to Participants and non-Participants that
desire low latency connectivity to BOX because it provides sufficient
capacity to support most of their activities on BOX and does so at a
reasonable comparative price point.
The Exchange notes that Participants and non-Participants will
continue to choose the method of connectivity based on their specific
needs and no broker-dealer is required to become a Participant of, let
alone connect directly to, BOX. The proposed fee change is an equitable
allocation of fees because it reflects the substantial value that the
10 Gb Connection provides to Participants and non-Participants. This
connectivity option is particularly attractive to Participants and non-
Participants that desire low latency connectivity to BOX because it
provides sufficient capacity to support most of their activities on BOX
and does so at a reasonable comparative price point. The proposal is
not unfairly discriminatory because 10 Gb Connections will be available
to all customers at the same price. Furthermore, a 10 Gb Connection is
an optional connectivity product, and Participants and non-Participants
are not required to purchase a 10 Gb Connection in order to access BOX.
Moreover, direct connectivity is not a requirement to participate on
BOX. Participants may choose to connect indirectly to BOX via a third-
party reseller of connectivity. This indirect connectivity is a viable
alternative for market participants to send orders or consume market
data without connecting directly to BOX (and thus not pay the
Exchange's connectivity fees), which alternative is already being used
by both Participants and non-Participants.
The Exchange believes that the proposed fee change is equitably
allocated and not unfairly discriminatory because the fee increase
would be applied uniformly across all market participants that
voluntarily subscribe to or purchase connectivity. Finally, the
Exchange believes that the proposed fee change is not unfairly
discriminatory because the fees would be assessed uniformly across all
market participants, that voluntarily purchase connectivity, in the
same manner they are today. While the proposed price increase will
impact users of the 10 Gb Connection, the Exchange believes this is
fair because users of a 10 Gb Connection generally consume more
resources from BOX than other participants. The Exchange also notes
that BOX's connectivity services remain available for purchase by all
market participants.
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 not necessary or appropriate in
furtherance of the purposes of the Act. The proposed fee change will
not impact intramarket competition because it will apply to all
similarly situated Participants and non-Participants
[[Page 7602]]
equally (i.e., all market participants that choose to purchase a 10 Gb
Connection). The Exchange does not believe its proposed pricing will
impose a barrier to entry to smaller participants and notes that its
proposed connectivity pricing is associated with relative usage of the
various market participants. For example, market participants with
modest capacity needs or which are less latency sensitive can continue
to buy the less expensive Non-10 Gb Connection (which cost is not
changing), or they may choose to connect via a third-party vendor.
While pricing for the 10 Gb Connection will increase, such option
provides for more capacity and is purchased by those that consume more
resources from the network. Accordingly, the proposed connectivity fee
does not favor certain categories of market participants in a manner
that would impose a burden on competition; rather, the allocation
reflects the network resources consumed by the various size of market
participants--lowest bandwidth consuming members pay the least, and
highest bandwidth consuming members pay the most.
The Exchange believes that the proposed fees do not impose a burden
on intermarket competition that is not necessary or appropriate. As
described above, in establishing its proposed fee change the Exchange
compared its proposed fee increase to those of competitor exchanges'
analogous offerings. As noted above, PHLX currently charges its members
a $1,650 installation fee and an ongoing $18,500 monthly fee for its 10
Gb Ultra fiber connection.\12\ Similarly, PHLX also charges its members
a $1,000 installation fee and an ongoing monthly fee of $11,000 for its
10 Gb fiber connection.\13\ Comparatively, the Exchange's proposed fee
of $6,000 is $12,500 less than the ongoing monthly fee PHLX charges its
members for its 10 Gb Ultra fiber connection, and $5,000 less than the
ongoing monthly fee for PHLX's 10Gb fiber connection. Moreover, unlike
PHLX, the Exchange does not charge its Participants and non-
Participants an installation fee for its 10 Gb Connection.
Additionally, CBOE currently charges its TPHs and non-TPHs an ongoing
$8,000 monthly fee for its 10 Gb physical port connection.\14\
Comparatively, the Exchange's proposed fee of $6,000 is $2,000 less
than the ongoing monthly fee CBOE charges its TPHs and non-TPHs for its
10 Gb physical port connection.
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\12\ See supra note 9.
\13\ Id.
\14\ See supra note 11.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
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)(ii) of the Exchange Act \15\ and Rule 19b-4(f)(2)
thereunder,\16\ because it establishes or changes a due, or fee.
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\15\ 15 U.S.C. 78s(b)(3)(A)(ii).
\16\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend the rule
change if it appears to the Commission that the action is necessary or
appropriate in the public interest, for the protection of investors, or
would otherwise further the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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#2b595e474e06484446464e455f586b584e48054c445d"><span class="__cf_email__" data-cfemail="2153544d440c424e4c4c444f5552615244420f464e57">[email protected]</span></a>. Please include
file number SR-BOX-2026-04 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-BOX-2026-04. 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-BOX-2026-04 and should be submitted on
or before March 11, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-03125 Filed 2-17-26; 8:45 am]
BILLING CODE 8011-01-P
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