Notice2026-08186
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule To Codify a User Fee Exemption and the Amended Definition of “Non-Display Usage” in Its Fee Schedule
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Published
April 28, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 81 (Tuesday, April 28, 2026)</title>
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[Federal Register Volume 91, Number 81 (Tuesday, April 28, 2026)]
[Notices]
[Pages 22881-22883]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-08186]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105301; File No. SR-CBOE-2026-040]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fee Schedule To Codify a User Fee Exemption and the Amended
Definition of ``Non-Display Usage'' in Its Fee Schedule
April 23, 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 21, 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 codify a User fee exemption and the
amended definition of ``Non-Display Usage'' in its Fee 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to codify (i) an existing User Fee exemption
to the Market Data section of its Fee Schedule and (ii) the amended
definition of ``Non-Display Usage'' under the Market Data section of
its Fee Schedule.\3\ As discussed further below, both the User Fee
exemption and the amended definition of Non-Display Usage are currently
contained in the Cboe Global Markets North American Data Policies, the
Exchange now proposes to codify both concepts in its Fee Schedule.
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\3\ The Exchange initially submitted the proposed rule change on
April 1, 2026 (SR-CBOE-2026-030). On April 13, 2026, the Exchange
withdrew that filing and submitted SR-CBOE-2026-031. On April 21,
2026, the Exchange withdrew that filing and submitted this filing.
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First, the Exchange proposes to codify that Controlled
Distributors, are exempt from Display Usage fees \4\ for the market
data products listed on the Exchange's Fee Schedule (each, a ``Data
Product'') where the sole purpose of receiving the data is for software
development, quality assurance, testing, sales support relating to
redistribution, or for technical monitoring of systems using a Product
and not in support of other commercial/business functions
(collectively, the ``Permitted Purposes). In connection with codifying
the Display Usage exemption, the Exchange also proposes to codify the
definitions of Controlled Distributor, Display Usage and Uncontrolled
Distributor \5\ within its Fee Schedule for clarity; both definitions
currently exist within the Cboe North American Data Policies. The
Exchange has previously applied the User Fee exemption, and while there
is no substantive change to how the Exchange applies this, it proposes
to formally codify this practice to be within its Fee Schedule.
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\4\ Display Usage means the access to and/or use of a Market
Data product by User via a graphical user interface, application or
other medium which displays data. See Cboe Global Markets North
American Data Policies. The Exchange proposes to codify the
definition of ``Displayed Usage'' in the Definitions section of the
Market Data Fees schedule in the Exchange's Fees Schedule for
transparency and clarity. Display Usage fees refer to Processional
and Non-Professional User fees, as well as Enterprise or Digital
Media fees, that are assessed for the Exchange Market Data products
set forth in the Exchange's Fee Schedule, as applicable.
\5\ Uncontrolled Distributors are defined as External
Distributors that do not control the entitlements of and display of
information to its Users. See Cboe Global Markets North American
Data Policies. The Exchange proposes to codify the definition of
``Uncontrolled Distributors'' in the Definitions section of the
Market Data Fees schedule in the Exchange's Fees Schedule for
transparency and clarity.
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By way of background, Controlled Distributors both (i) provide data
to a User and (ii) control the entitlements of and display of
information to such User.\6\ Meaning, Controlled Distributors entitle
individual Users to view the data on a pre-existing Display
application. Controlled Distributors are charged with tracking the
Users which it enables and, is assessed the appropriate corresponding
Professional and/or Non-Professional user fees, as applicable.\7\ The
Exchange now proposes to specify in its Fee schedule that when a Data
Product is used for a Permitted Purpose, Users shall not be charged a
Display Usage fee.
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\6\ See Cboe Global Markets North American Data Policies. The
Exchange proposes to codify the definition of an ``Controlled
Distributor'' in the Definitions section of the Market Data Fees
schedule in the Exchange's Fees Schedule for transparency and
clarity.
\7\ See Cboe Options Fee Schedule. As noted above, Display Usage
fees are assessed at different rates depending on (i) if the User is
a Professional user or a Non-Professional and (ii) for the specific
Data Product as set for the Exchange's Market Data.
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Second, the Exchange also proposes to codify the amended definition
of ``Non-Display Usage'' as any method of accessing, or facilitating
access to, a Market Data product that involves access or use by a
machine or automated device for a purpose that is not solely in support
of display for a natural person or persons.\8\ The Exchange previously
applied the prior definition of Non-Display Usage that was in the Cboe
Global Markets North American Data Policies. This definition stated
that Non-Display Usage meant any method of accessing a Market Data
product that involved access or use by a machine or automated device
without access or use of a display by a natural person or persons. This
definition was also previously in the Exchange's affiliated equities
exchanges fee schedules.
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\8\ The term ``Non-Display Usage'' is defined in Cboe Global
Markets' North American Data Policies. See Cboe Global Markets North
American Data Policies. The term is also defined in the fee
schedules of the Exchange's affiliated equities exchanges. See e.g.,
Cboe BYX Equities Fee Schedule. The Exchange now proposes to codify
the definition of ``Non-Display Usage'' in the Definitions section
of Market Data Fees in the Exchange's Fees Schedule for transparency
and clarity. The Exchange seeks to adopt the definition of ``Non-
Display Usage'' contained in Cboe Global Markets' North American
Data Policies.
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[[Page 22882]]
The proposed definition adopted in Cboe Global Markets North
American Data Policies (effective April 1, 2026) now states that, Non-
Display Usage means any method of accessing, or facilitating access to,
a Market Data product that involves access or use by a machine or
automated device for a purpose that is not solely in support of display
for a natural person or persons. As discussed further below, the
proposed definition is intended to capture changes in the evolving
landscape of technology with firms more frequently leveraging Large
Language Models (``LLMs'').
In conjunction with the proposed revision to the Non-Display Usage
definition, the Exchange proposes to codify this amended, up-to-date
version to be within its Fee Schedule. The Exchange's affiliated
options and equities exchanges are also codifying and amending this
definition (as applicable) in their respective fee schedules.
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.\9\ Specifically, the
Exchange also believes the proposed rule change is consistent with
Section 6(b)(4) of the Act,\10\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Members and other persons using its facilities.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \11\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
\11\ 15 U.S.C. 78f(b)(5).
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User Fee Exemption
In particular, the proposed exemption is designed to provide for
the equitable allocation of reasonable dues, fees and other charges
among its members and other recipients of Exchange data. For example,
Display Usage of Data Products solely for the enumerated Permitted
Purposes does not directly generate revenue. As such, the Exchange
believes it equitable to not charge for such usage. Other exchanges and
market data offerings have also taken a similar approach when charging
for these uses \12\ and such exemptions for these purposes are
generally accepted within the industry to not be fee liable. The
Exchange believes that codifying this exemption is reasonable as no
fees will be assessed where there are Permitted Purposes.
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\12\ See e.g., MIAX Exchange Group Market Data Policies, Section
10 and UTP Plan Administration Data Policies, Administrative Usage
Policy--Internal Use Only.
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The Exchange notes that all of the Data Products are 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.
Additionally, the Exchange believes the proposed exemption is
equitable and non-discriminatory in that it applies uniformly to
similarly situated market participants (i.e., all Controlled
Distributors whose Users use a Data Product solely for a Permitted
Purpose). Further, the Exchange notes that it is equitable and not
unfairly discriminatory for this to only apply to Display Usage fees of
Controlled Distributors, as Uncontrolled Distributors only distribute
Data Products where Display Usage fees are not applicable.
The Exchange believes that codifying the definitions of Display
Usage Controlled Distributor, and Uncontrolled Distributor in its Fee
Schedule provides further clarity for market participants. With all
relevant terms for the Display Usage exemption defined within the Fee
Schedule, market participants will be better able to ascertain if this
exemption is applicable to them and the specific terms of this
exemption.
Non-Display Usage Definition
In particular, the codification of the amended definition of ``Non-
Display Usage'' contained in Cboe Global Markets' North American Data
Policies is designed to (i) provide transparency by including this
definition in the Fee Schedule directly (as opposed to only having this
within the Cboe Global Markets North American Data Policies) and (ii)
provide for the equitable allocation of reasonable dues, fees and other
charges among its members and other recipients of Exchange Data through
the proposed amendments to the prior definition that was applied (and
was previously in the Cboe Global Markets North American Data
Policies).
Specifically, the amended definition of Non-Display Usage means any
method of accessing, or facilitating access to, a Market Data product
that involves access or use by a machine or automated device for a
purpose that is not solely in support of display for a natural person
or persons. As noted above, the prior definition that was used (and was
contained in Cboe Global Markets' North American Data Policies) stated
that: Non-Display Usage means any method of accessing a Market Data
product that involves access or use by a machine or automated device
without access or use of a display by a natural person or persons.
The codification of the amended definition of ``Non-Display
Usage,'' and other terms,\13\ are intended to add transparency and
clarity to the Exchange's Fee Schedule. The proposed amended definition
is intended to capture changes in the evolving landscape of technology
with firms more frequently leveraging Large Language Models (``LLMs'').
Firms that facilitate the transmission of Data Products into ``black
box'' solutions (which include LLMs), may now need to obtain non-
display licensing for usage of the Data Product.
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\13\ Supra notes 4, 5 and 6.
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For example, the prior definition in Cboe Global Markets North
American Data Policies did not include ``facilitating access to'' in
the Non-Display Usage definition. This meant that if a firm directly
ingested a Data Product for the purpose of feeding the data directly
into an automated trading strategy, it would be required to procure a
license for Non-Display. However, under the prior definition, a firm
that ingested a Data Product for training or operating a LLM or that
facilitated transmission of a Data Product may not explicitly fall
under the definition of Non-Display Usage, despite the firm ingesting
the data for a non-display purpose. In order to facilitate more
equitable outcomes between firms, the Exchange proposes to include this
in its amended definition to ensure that Non-Display Usage better
covers the intended audience.
The intent of this revised definition is not to introduce a new or
novel concept, it is instead intended to provide further clarity on
firms that should be covered under this license with new uses of Data
Products in mind. The Exchange notes
[[Page 22883]]
that this update better aligns itself with industry standards as
well.\14\
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\14\ See e.g., NASDAQ Data--Artificial Intelligence Policy
(Market Data--Data_AI_Policy-NASDAQ.pdf--All Documents), stating
that ``Any use of or access to Nasdaq Information including for
training of AI models must strictly adhere to the terms of the
license governing access to such Nasdaq Information, including
maintaining appropriate licenses with redistributors and service
facilitators. This includes any use that would subject the data to
the following environments outside the license.''
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The Exchange notes that all the Data Products are 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.
Additionally, the Exchange believes the amended definition of
``Non-Display Usage'' that it proposes to include in its Fee Schedule
is equitable and non-discriminatory in that it applies uniformly to
similarly situated market participants. Adding this definition to the
Fee Schedule only provides further clarity and transparency for market
participants. As noted above, the Exchange's affiliated equities
exchanges already have a ``Non-Display Usage'' definition codified
within their respective schedules. In conjunction with this filing, the
Exchange's affiliated equities exchanges are also proposing to amend
the existing Non-Display Usage definition within their fee schedules to
align with the revised Cboe North America Market Data Policies and with
the Exchange's proposed definition. The Exchange's affiliated options
exchanges are also proposing to adopt this updated definition within
their fee schedules as well.
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 changes are grounded in the Exchange's efforts to
compete more effectively (e.g., by updating its definition of Non-
Display to conform with changes in the industry). As a result, the
Exchange believes this proposed rule change permits fair competition
among national securities exchanges. Further, the Exchange believes
that these changes will not cause any unnecessary or inappropriate
burden on intramarket competition, as the exemption applies uniformly
to all Controlled Distributors, and in turn, the ultimate end Users are
not utilizing the applicable Data Product(s) for commercial or business
purposes. Further, the proposed change to codify the User Fee exemption
is not designed to address any competitive issues. Indeed, this
proposal does not create an unnecessary or inappropriate inter-market
burden on competition because it merely clarifies the Exchange's
internal process (as stated in the Cboe Global Markets North American
Data Policies) on applying the User Fee exemption.
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 \15\ and paragraph (f) of Rule 19b-4 \16\
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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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 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#e290978e87cf818d8f8f878c9691a2918781cc858d94"><span class="__cf_email__" data-cfemail="d8aaadb4bdf5bbb7b5b5bdb6acab98abbdbbf6bfb7ae">[email protected]</span></a>. Please include
file number SR-CBOE-2026-040 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-2026-040. 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-2026-040 and should be submitted on
or before May 19, 2026.
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\17\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-08186 Filed 4-27-26; 8:45 am]
BILLING CODE 8011-01-P
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