Notice2026-07258
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule To Establish a New “Retail Broker” Definition and Related Pricing for the Exchange's Complex Order Book Data Feed
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
April 15, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 72 (Wednesday, April 15, 2026)</title>
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[Federal Register Volume 91, Number 72 (Wednesday, April 15, 2026)]
[Notices]
[Pages 20204-20207]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07258]
[[Page 20204]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105198; File No. SR-CBOE-2026-033]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fee Schedule To Establish a New ``Retail Broker'' Definition and
Related Pricing for the Exchange's Complex Order Book Data Feed
April 10, 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 April 7, 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
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend its fee schedule to establish a new ``Retail Broker''
definition and related pricing for the Exchange's Complex Order Book
data feed. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange desires to incentivize retail brokers to utilize
Exchange data products, with an initial focus on increasing access to
the Cboe Options' C1 Complex Order Book \3\ Data Feed (``C1 COB Data
Feed''). The Exchange seeks to accomplish this goal by: (1) codifying a
definition of ``Retail Broker'' (discussed infra) on its fee schedule;
(2) introducing Exchange Enterprise Tiers for Non-Professional Users
\4\ of the Exchange's C1 COB Data Feed; \5\ and (3) introducing a
waiver program for Retail Brokers that subscribe to C1 COB Data Feed
(the ``C1 COB Retail Broker Waiver Program'' or the ``Program'').\6\
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\3\ The terms ``Complex Order Book'' and ``COB'' mean the
Exchange's electronic book of complex orders used for all trading
sessions. See Rule. 5.33. Complex Orders.
\4\ A ``Non-Professional User of an Exchange Market Data product
is a natural person or qualifying trust that uses Data for only
personal purposes and not for any commercial purpose and, for a
natural person who works in the United States, is not: (i)
registered or qualified in any capacity with the Securities and
Exchange Commission, the Commodities Futures Trading Commission, any
state securities agency, any securities exchange or association, or
any commodities or futures contract market or association; (ii)
engaged as an ``investment adviser'' as that term is defined in
Section 202(a)(11) of the Investment Advisors Act of 1940 (whether
or not registered or qualified under that Act); or (iii) employed by
a bank or other organization exempt from registration under federal
or state securities laws to perform functions that would require
registration or qualification if such functions were performed for
an organization not so exempt; or, for a nature person who works
outside of the United States, does not perform the same functions as
would disqualify such person as a Non-Professional User if he or she
worked in the United States. See Cboe Exchange, Inc., Fee Schedule,
Footnote 49, available at: <a href="https://cdn.cboe.com/resources/membership/_FeeSchedule.pdf">https://cdn.cboe.com/resources/membership/_FeeSchedule.pdf</a>.
\5\ The Exchange notes that, if desired, a firm may continue to
pay the applicable Non-Professional User fees (calculated on a per
user basis) if it finds greater benefit in doing so in comparison to
the applicable Enterprise Fee tier.
\6\ The Exchange initially filed the proposed fee changes on
April 1, 2026 (SR-CBOE-2026-029). On April 7, 2026, the Exchange
withdrew that filing and submitted this proposal.
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Background
The Exchange currently offers for subscription its C1 COB Data
Feed, which is a real-time data feed that includes data regarding the
Exchange's COB and related complex order information. The C1 COB Data
Feed contains the following information for all C1-traded complex order
strategies (multi-leg strategies such as spread, straddles, and buy-
writes): (i) outstanding quotes and standing orders on each side of the
market with aggregate size; (ii) last sale data; and (iii) totals of
customer versus non-customer contracts.
Currently, the feeds for subscribing to the C1 COB Data Feed are as
follows:
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Cboe options complex order book Monthly fee Notes
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Internal Distribution Fee............... $3,000..................... Distributor will be subject to the
greater of the two Distribution fees
when receiving the Cboe Options Complex
Order Book Feed for both Internal and
External Distribution.
External Distribution Fee............... $1,500..................... Distributor will be subject to the
greater of the two Distribution fees
when receiving the Cboe Options Complex
Order Book Feed for both Internal and
External Distribution.
Professional User Fee................... $25 per Device or User ID.. User Fee applies for both ``internal''
Professional Users (Devices or user IDs
of employees of a Distributor) and
``external'' Professional Users (Devices
or user IDs of Professional Users who
receive the Data from a Distributor and
are not employed by the Distributor).
Non-Professional User Fee............... $1.00/month/per User.......
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The Exchange now seeks to amend its fee schedule to (i) implement a
Retail Broker definition and corresponding fee and waiver structure
that is designed to incentivize both existing and new Retail Broker's
that trade on the Exchange to begin utilizing the Exchange's C1 COB
Data Feed and (ii) introduce a tiered Enterprise License pricing
structure that
[[Page 20205]]
firms may pay as an alternative to the Non-Professional User fees
(where the fee is a per-user fee). Below, the Exchange discuses each
aspect of its proposal.
Codify a ``Retail Broker'' Definition
The Exchange seeks to add a ``Retail Broker'' definition to its fee
schedule. Specifically, the Exchange seeks to define a ``Retail
Broker'' as a Data Recipient that meets each of the following criteria:
(1) The Retail Broker is a Distributor (as that term is currently
defined on the Exchange's fee schedule) that is distributing data to
Non-Professional Data Users with whom the Retail Broker has a brokerage
relationship and (2) at least 90% of the Distributor's total subscriber
population must consist of Non-Professional Users, inclusive of any
subscribers receiving any other real-time, proprietary equities or
options data feed, offered by Cboe's equities and options exchanges.\7\
The Distributor must attest to such percentages annually and are
subject to audit by the Exchange.
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\7\ This shall include any market data feed listed on the
Exchange or its affiliated options and equities exchanges' fee
schedules. The Exchange notes that its affiliated equities exchanges
also base this off of a firm's subscribers holistically, as opposed
to subscribers for a single data feed offering (see e.g., EDGX
Equities Fee Schedule, noting for its Small Retail Broker Program
that, ``at least 90% of the Distributor's total subscriber
population must consist of Non-Professional subscribers, inclusive
of any subscribers not receiving EDGX Top Data.'')
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Introduce an Enterprise License
The Exchange proposes to implement an Enterprise License Fee which
would serve as an alternative to firms paying a per-user Non-
Professional User fee. The Enterprise License fee shall be based on the
Non-Professional User Count as noted below. A Distributor must pay a
separate Enterprise Fee for each entity for which it controls the
display of the C1 COB Data Feed if it wishes for such entity's Non-
Professional Users to be covered by the Enterprise Fee.\8\ As is the
case now for a distributor paying Non-Professional User Fees, a
distributor that pays an Enterprise fee for its Non-Professional Users
will still be responsible for paying (i) Professional User Fees (as
applicable) and (ii) the Distributor Fee.
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\8\ For example, if a Distributor (e.g., Refinitiv) that
distributes Cboe Options Top to Retail Brokerage Firm A and Retail
Brokerage Firm B (which ``entities'' redistribute BZX Options Top to
its respective Users) and wishes to have the Users under each firm
covered by an Enterprise license, the Distributor would be subject
to two Enterprise Fees. The Exchange notes that this same
application is used for Enterprise Licenses for other Exchange
offered feeds, see Cboe Fee Schedule.
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Monthly
Non-professional user count enterprise fee
(per month)
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Up to 25,000 Users...................................... $2,500
25,001-100,000 Users.................................... $5,000
100,001+ Users.......................................... $7,500
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Implement a Retail Broker Waiver Program
In connection with the proposed introduction of the Enterprise
License Fee, the Exchange is proposing to establish the C1 COB Retail
Broker Waiver Program for new External Distributors of C1 COB Data
Feed. Qualifying Retail Brokers enrolled in the Program will receive
the following fee waivers for a period of two (2) years from the date
of enrollment: (i) Enterprise Fee and (ii) External Distributor Fee.
In order to qualify for the proposed Program, a firm must meet the
definition of a Retail Broker (as specified above) and must not have
been an External Distributor for the C1 COB Data Feed within the past
18 months.
2. Statutory Basis
Enterprise Tier Fee License
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\9\ in general, and
furthers the objectives of Section 6(b)(4),\10\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its members and other recipients of
Exchange data.
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\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(4).
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In particular, the Exchange believes that by allowing the
Enterprise Tier Fee License, in lieu of a per-user fee for Non-
Professional Users, provides distributors with greater flexibility and
cost savings as any distributor may take advantage of this tiered
structure if it benefits them.\11\
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\11\ For example, some smaller distributors that have less than
2,500 Non-Professional User fees will have larger cost savings by
continuing to pay the Non-Professional user fee of $1.00 per user
that they do now as opposed to paying $2,500.
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For example, under the current model, a distributor with 3,000 Non-
Professional Users pays $3,000 in Non-Professional User fees in a given
month (3,000 Users x $1.00 per Non-Professional User). Under the new
model, a distributor would instead have the option to purchase the Non-
Professional Enterprise License where they would pay the lowest License
Tier of $2,500 and they could remain in this tier for up to 25,000
users (at its peak, costing them only $0.10 per user ($2,500/25,000
Non-Professional Users)).
The Exchange believes that permitting a tiered structure, such as
this, allows for greater growth of a distributor's Non-Professional
user base by allowing a flat monthly fee, and ultimately can lead to
greater cost savings for a distributor's Non-Professional User fees.
While a distributor will still need to separately pay for its
Professional Users (if any), the Exchange does not believe this is
unfairly discriminatory as this is intended to encourage broader retail
participation by allowing for lower costs for these users. The Exchange
notes that the Commission has long stressed the need to ensure that the
equities markets are structured in a way that meets the needs of
ordinary investors. For example, the Commission's strategic plan for
fiscal years 2018-2022 touts ``focus on the long-term interests of our
Main Street investors'' as the Commission's number one strategic
goal.\12\ The Program would be consistent with the Commission's stated
goal of improving the retail investor experience in the public markets.
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\12\ See U.S. Securities and Exchange Commission, Strategic
Plan, Fiscal Years 2018-2022, available at <a href="https://www.sec.gov/files/SEC_Strategic_Plan_FY18-FY22_FINAL_0.pdf">https://www.sec.gov/files/SEC_Strategic_Plan_FY18-FY22_FINAL_0.pdf</a>.
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C1 COB Retail Broker Waiver Program
The Exchange believes that the proposed Program (and with it, the
new definition of Retail Broker) is consistent with the objectives of
Section 6 of the Act,\13\ in general, and furthers the objectives of
Section 6(b)(4),\14\ in particular, as it is designed to provide for
the equitable allocation of reasonable dues, fees and other charges
among its members and other recipients of Exchange data.
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\13\ 15 U.S.C. 78f.
\14\ 15 U.S.C. 78f(b)(4).
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The Exchange also believes that the proposed Program is consistent
with Section 11(A) of the Act.\15\ Specifically, the proposed program
supports (i) fair competition among brokers and dealers, among exchange
markets, and between exchange markets and markets other than exchange
markets, and (ii) the availability to brokers, dealers, and investors
of information with respect to quotations for and transactions in
securities. In addition, the proposed rule change is consistent with
Rule 603 of Regulation NMS,\16\ which provides that any national
securities exchange that distributes information with respect to
quotations for or transactions in an
[[Page 20206]]
NMS stock do so on terms that are not unreasonably discriminatory.
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\15\ 15 U.S.C. 78k-1.
\16\ See 17 CFR 242.603.
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In adopting Regulation NMS, the Commission granted SROs and broker-
dealers increased authority and flexibility to offer new and unique
market data to the public. It was believed that this authority would
expand the amount of data available to consumers, and also spur
innovation and competition for the provision of market data. The
Exchange believes that the proposed fee change would further broaden
the availability of U.S. equity market data to investors, and in
particular retail investors, consistent with the principles of
Regulation NMS.
The Exchange operates in a highly competitive environment. Indeed,
there are eighteen registered national securities exchanges that trade
U.S. options and offer associated market data products to their
customers. The Commission has repeatedly expressed its preference for
competition over regulatory intervention in determining prices,
products, and services in the securities markets. Specifically, in
Regulation NMS, the Commission highlighted the importance of market
forces in determining prices and SRO revenues and, also, recognized
that current regulation of the market system ``has been remarkably
successful in promoting market competition in its broader forms that
are most important to investors and listed companies.'' \17\ The
proposed fee change is a result of the competitive environment, as the
Exchange seeks to amend its fees to attract additional subscribers for
its proprietary data offerings.
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\17\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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Making alternative data products available to market participants
ultimately ensures increased competition in the marketplace and
constrains the ability of exchanges to charge prohibitive fees. If a
market participant views one exchange's data feeds as more or less
attractive than the competition they can, and frequently do, switch
between competing products. In fact, the competitiveness of the market
for such data products is one of the primary factors animating this
proposed rule change, which is designed to allow the Exchange to
further compete for this business.
The Exchange notes that the C1 COB Data Feed is distributed and
purchased on a voluntary basis, in that neither the Exchange nor market
data distributors are required by any rule or regulation to make these
data products available. Distributors (including vendors) and Users can
therefore discontinue use at any time and for any reason, including due
to an assessment of the reasonableness of fees charged. Further, the
Exchange is not required to make any proprietary data products
available or to offer any specific pricing alternatives to any
customers.
The Commission has long stressed the need to ensure that the
equities markets are structured in a way that meets the needs of
ordinary investors. For example, the Commission's strategic plan for
fiscal years 2018-2022 touts ``focus on the long-term interests of our
Main Street investors'' as the Commission's number one strategic
goal.\18\ The Program would be consistent with the Commission's stated
goal of improving the retail investor experience in the public markets.
Furthermore, national securities exchanges commonly charge reduced fees
and offer market structure benefits to retail investors, and the
Commission has consistently held that such incentives are consistent
with the Act. The Exchange believes that the Program is consistent with
longstanding precedent indicating that it is consistent with the Act to
provide reasonable incentives to retail investors that rely on the
public markets for their investment needs.
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\18\ See U.S. Securities and Exchange Commission, Strategic
Plan, Fiscal Years 2018-2022, available at <a href="https://www.sec.gov/files/SEC_Strategic_Plan_FY18-FY22_FINAL_0.pdf">https://www.sec.gov/files/SEC_Strategic_Plan_FY18-FY22_FINAL_0.pdf</a>.
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The Exchange does not believe the proposed program is unfairly
discriminatory as it allows for all new Retail Brokers to be eligible
for this program. The Exchange notes that its proposed definition of
Retail Broker is consistent with the Exchange's affiliated equities
exchanges in that it requires (i) at least 90% of its subscriber base
to be Non-Professional Users and (ii) that the Distributor is a broker-
dealer distributing the data to Non-Professional Data users with whom
the broker-dealer has a brokerage relationship.\19\ The Exchange
believes that by having consistent definitions across its exchanges,
that it allows for better clarity and certainty as firms navigate each
exchange and their eligibility to participate in different programs.
The Exchange does not believe it is unfairly discriminatory to only
provide this Program to Retail Brokers as the Commission has
consistently held that such incentives are consistent with the Act and
the Exchange's affiliated equities exchanges currently offer various
retail broker programs.\20\
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\19\ While the Exchange notes that it does not have a Retail
Broker definition yet for its equities exchanges, the Small Retail
Broker definition, among other criteria, requires that 90% of the
Distributor's total subscriber population must consist of Non-
Professional subscribers and that the Distributor is a broker-dealer
distributing the data to Non-Professional Data Users with whom the
broker-dealer has a brokerage relationship. The only distinction
between the proposed definition for the Retail Broker and the
existing Small Retail Broker definition is that a Small Retail
Broker must not have more than 10,000 Non-Professional Data Users--
no such requirement is applicable here for the Retail Broker
definition.
\20\ See e.g., EDGX Equities Fee Schedule, specifying the
criteria and program details for both the Small Retail Broker
Distribution Program and Small Retail Broker Hosted Solutions
Program.
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Lastly, this proposed program is only available to participants who
have not been an External Distributor for C1 COB Data Feed within the
past 18 months. This 18-month requirement is consistent with the
Exchange's affiliated equities exchanges' programs for new
participants.\21\ The Exchange believes that having consistent timing
requirements across its affiliated exchanges provides clear and
transparent requirements to its market participants.
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\21\ See e.g., EDGX Equities Fee Schedule where an 18-month
timeline is noted for the Retail Equities Membership Program and the
New Internal Distributor Waiver as examples of this.
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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 rule change is
grounded in the Exchange's efforts to assist in mitigating business
costs for both new and existing Retail Brokers (i.e., the costs
associated to distribute market data to Non-Professional Users). The
Exchange does not believe that the proposed rule change will impose any
burden on intramarket competition because (i) the proposed Enterprise
License Tiers for Non-Professional Users apply to all distributors who
may then choose to continue paying the per-user fee or the applicable
tier and (ii) the proposed Program applies uniformly to all market
participants that are Retail Brokers who haven't externally distributed
the C1 COB Data Feed previously. The Exchange does not believe that the
proposed Enterprise Tiers for C1 COB Data Feed nor the Program will
create an undue burden on intermarket competition because use of the C1
COB Data Feed is optional and based on the business needs of each
market participant. As a result, the Exchange believes this proposed
rule change permits fair competition among national securities
exchanges.
[[Page 20207]]
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 \22\ and paragraph (f) of Rule 19b-4 \23\
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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\22\ 15 U.S.C. 78s(b)(3)(A).
\23\ 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#d4a6a1b8b1f9b7bbb9b9b1baa0a794a7b1b7fab3bba2"><span class="__cf_email__" data-cfemail="becccbd2db93ddd1d3d3dbd0cacdfecddbdd90d9d1c8">[email protected]</span></a>. Please include
file number SR-CBOE-2026-033 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-2026-033. 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-2026-033 and should be submitted on
or before May 6, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-07258 Filed 4-14-26; 8:45 am]
BILLING CODE 8011-01-P
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