Notice2026-11809
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Fees for Its New Clock Service
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
June 12, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 113 (Friday, June 12, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 113 (Friday, June 12, 2026)]
[Notices]
[Pages 35753-35755]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11809]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105634; File No. SR-CboeBZX-2026-050]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt
Fees for Its New Clock Service
June 9, 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 May 28, 2026, Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'')
filed with the Securities and Exchange Commission (``SEC'' or
``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX Options'')
proposes to adopt fees for its new Clock Service. 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/equities/regulation/rule_filings/bzx/">https://www.cboe.com/us/equities/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 amend its fee schedule to adopt fees,
including a free trial, for its new Clock Service offering, effective
May 18, 2026.\3\ The Exchange recently adopted a new data product known
as the Clock Service.\4\ The Clock Service is an optional product
available to Members and non-Members alike. In sum, a subscriber is
able to utilize the Clock Service to synchronize their time recording
systems to those of the Exchange for correlated latency measurements
between the Exchange's and the subscriber's systems time measurements
related to the same message or order. Time synchronization services are
well established in the U.S. and utilized in many areas of the U.S.
economy and infrastructure. The Clock Service is not novel to the
securities markets and it is similar to the network time
synchronization service currently offered by MIAX Emerald, LLC (``MIAX
Emerald'').\5\ The Exchange is providing the Clock Service in response
to participant demand for more precise and more accurate clock
synchronization options with the Exchange's network.
---------------------------------------------------------------------------
\3\ The Exchange initially submitted the proposed rule change on
May 18, 2026 (SR-CboeBZX-2026-045). On May 28, 2026, the Exchange
withdrew that filing and submitted this filing.
\4\ Securities Exchange Act Release No. 105215 (April 13, 2026),
91 FR 20515 (April 16, 2026) (SR-CboeBZX-2026-028).
\5\ See Securities Exchange Act Release No. 94915 (May 16,
2022), 87 FR 31022 (May 20, 2022) (SR-EMERALD-2022-16).
---------------------------------------------------------------------------
Under the Clock Service, participants would be able to synchronize
their own primary clock devices to the Exchange's primary clock device,
by receiving White Rabbit time signals from the Exchange via a 1
gigabit per second (``Gbps'') Physical Port. The proposed Clock Service
simply provides participants with the ability to synchronize with the
Exchange's time signal at a more granular level, and, as part of the
Clock Service, participants will receive a single 1 Gbps Physical Port
connection offered by the Exchange in order to receive the signal.\6\
The improved time signal would tell the participant the Exchange's time
at a more granular level at a particular point in time. The subscribing
participant may then use that time signal to synchronize their own
primary clock to the Exchange's primary clock.
---------------------------------------------------------------------------
\6\ The Exchange notes that MIAX Emerald, LLC similarly requires
a 1 Gbps connection in order to utilize its respective clock
service.
---------------------------------------------------------------------------
As part of the Clock Service, the Exchange proposes to adopt three
fees. The first is for the Clock Service itself, while the two other
fees are ancillary fees as part of the Clock Service, both of which are
optional for subscribers of the Clock Service. The Exchange proposes a
fee of $7,500/month for the Clock Service itself. As part of the Clock
Service fee, the Exchange shall provide a 1 Gbps physical port for the
participant to use solely for receiving a signal from the Clock
Service.\7\
---------------------------------------------------------------------------
\7\ The Exchange notes that the 1 Gbps physical port that a
participant shall receive as part of this Service shall be used
solely for the purposes of the Clock Service and will not be able to
be used for any other purpose (e.g., order routing).
---------------------------------------------------------------------------
The second fee the Exchange proposes is a redundant Clock Service
connection--that includes a 1 Gbps physical port for a fee of $2,500/
month.\8\ The secondary connection is an optional offering that a
subscriber may choose to purchase to supplement their existing Clock
Service. This secondary connection can provide redundancy for a
subscriber.
---------------------------------------------------------------------------
\8\ The Exchange notes that nothing precludes a firm from
purchasing multiple secondary connections.
---------------------------------------------------------------------------
Lastly, the Exchange noted in its filing that customers will be
required to procure licensing, as applicable. As such, the Exchange is
also proposing a one-time High-Accuracy Timing IP Core (``HATI'')
licensing set-up fee of $5,000 for each physical connection.\9\ The
HATI license is for participants that do not use a White Rabbit-enabled
Safran switch. For example, a firm that utilizes a non-Safran White-
Rabbit enabled device must have a HATI license in order to utilize the
Clock Service and would be liable for this one-time fee.\10\ The one-
time fee is to enable the particular switch for White Rabbit so the
firm may use its switch in connection with the Clock Service.
---------------------------------------------------------------------------
\9\ For example, if a participant chooses to purchase the
secondary connection as well and requires the licensing for both
connections, the firm will pay a one-time fee of $10,000.
\10\ The Exchange notes that the type of switch a firm purchases
is due to a firm's preference in how they optimize their physical
infrastructure.
---------------------------------------------------------------------------
For a mid-month subscription, the monthly fee(s) shall be prorated
based on the initial date of the subscription. For clarity, this does
not apply to one-time setup fee for the HATI license.
In connection with the launch of Cboe Clock Service, the Exchange
proposes to introduce a free trial for the first 30 days for new
subscribers. The free trial shall
[[Page 35754]]
only apply to the Cboe Clock Service fee and, if applicable, a
subscriber shall still be liable for (i) the one-time HATI set-up fee
per connection and (ii) any additional Clock Service connections. A
first-time subscriber would be any subscriber that has not previously
subscribed to Cboe Clock Service. The Exchange believes the proposed
trial will serve as an incentive for new subscribers to try the
proposed Clock Service to determine if it fits the subscriber's needs.
Particularly, the Exchange believes it will give potential subscribers
the ability to use and test the service to determine if it fits its
business needs.
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.\11\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \12\ 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) \13\ 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) \14\ of the Act, 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
\13\ Id.
\14\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Commission has repeatedly expressed its preference for
competition over regulatory intervention in determining prices,
products, and services in the securities markets. Particularly, in
Regulation NMS, the Commission highlighted the importance of market
forces in determining prices and SRO revenues and 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.'' \15\ The
Service provides subscribing participants with a tool to assist them in
recalibrating their own models and trading strategies to improve their
overall experience on the Exchange, thereby potentially improving
execution and order fill rates. This may improve the Exchange's overall
market quality through increased liquidity and improved execution
opportunities for resting orders, enhancing the Exchange's overall
competitive position. The proposed fees are a result of the competitive
environment of the U.S. options industry as the Exchange seeks to adopt
fees to attract purchasers of the recently introduced Clock Service.
---------------------------------------------------------------------------
\15\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
---------------------------------------------------------------------------
The Clock Service provides participants with the Exchange's time
signal. The time signal provided by the Clock Service could be
beneficial in multiple areas, one of which is enabling subscribers to
more precisely measure latency between their network and that of the
Exchange by utilizing technology that allows up to a sub-nanosecond
level. The Clock Service will allow them to better understand the times
at which their order or message reached certain points when traveling
from their network to the Exchange through more granular latency
measurements.
The Exchange believes the fee proposals for the Clock Service
(including the ancillary fees) are reasonable as the Exchange is
offering any market participants access to subscribe for the Clock
Service in the market participant's sole discretion based on their
unique business needs. Clock Service is optional for market
participants to subscribe to if they believe it to be helpful and are
not required for market participants to purchase in order to access the
Exchange. Additionally, subscribers may cancel their usage of the Clock
Service at any time.
As described above, the Exchange proposes to assess a monthly fee
of $7,500 for the Clock Service. This fee also includes a 1 Gbps
physical port. The Clock Service may be used for the Exchange and its
affiliated equities and options exchanges (meaning a customer can
receive this service for all eight Cboe exchanges). In comparison, as
noted above, MIAX Emerald offers a comparable service--the High
Precision Network Time Signal Service--at a fee of $3,800/month.
Customers purchase their 1 G physical connection separately (at a cost
of $1,500/month) in order to receive the High Precision Network Time
Signal Service, meaning that the total cost to use this service for
MIAX Emerald only is $5,300 ($3,800 for the service and $1,500 for the
physical connection). While the Exchange notes its fee is higher than
MIAX Emerald's, it is important to distinguish the fact that the
Exchange's comparable offering (as the Exchange noted previously, a 1
Gbps physical connection is included with its Clock Service) can be
obtained for a fee of $7,500 which can be used to access this service
for all eight exchanges, and thus, the Exchange believes it is
reasonable that its fee is higher than MIAX Emerald's.
In connection with the Clock Service, the Exchange also proposes
two ancillary fees. The Exchange proposes to assess a fee for an
optional, additional connection for participants. This is an additional
Clock Service connection that includes a 1 Gbps physical port for which
participants may use as a back-up connection to receive the Exchange's
time signal through the Clock Service. If a firm wanted to purchase the
equivalent setup for MIAX Emerald, a firm would be required to purchase
MIAX's service at a fee of $5,300 and two 1 Gb connections (as MIAX
offers a secondary signal at no cost already with its product). The
total cost for this would be $6,800 ($3,800 (for the service) + $1,500
(for the 1 Gb physical connection) + $1,500 (for the additional 1 Gb
physical connection to access the secondary/redundant signal)). Again,
while the Exchange notes that purchasing an optional, additional
connection separately is higher, a total cost of $10,000 when combined
with the monthly fee of the Clock Service ($7,500 (for the Clock
Service) + $2,500 (for the redundant signal)), the Exchange's Clock
Service permits you to connect to all of Cboe's options and equities
exchanges. Meaning, that for less than double the cost of MIAX
Emerald's service, which is only for one Exchange, a participant is
able to use the Exchange's Clock Service for eight Cboe exchanges.
Lastly, the Exchange believes the one-time ancillary fee of $5,000
per connection for the HATI license set-up is appropriate. The Exchange
proposes to charge a fee to participants to enable their connections
for the Clock Service, if required. For participants that do not use
Safran White Rabbit switches, a HATI license is required. Specifically,
a participant that has a non-Safran White-Rabbit enabled device must
have a
[[Page 35755]]
HATI license in order to utilize the Clock Service. As such, the
Exchange is providing the HATI license (and set-up) for $5,000 per
physical connection in order for a participant to be enabled to utilize
the Clock Service. The one-time cost of $5,000 per physical connection
reflects both the license itself as well as the workflow for installing
the HATI solution.
The Exchange believes that the proposed free trial for any new
Clock Service subscriber is reasonable because such users would not be
subject to fees for the first 30 days of subscribing. The Exchange
believes the proposed free trial is also reasonable as it will give
potential subscribers the ability to use and test Cboe Clock Service
prior to subscribing for additional months and will therefore encourage
and promote new users to purchase the Cboe Clock Service
The proposal would also not permit unfair discrimination as the
proposed Clock Service is available to all market participants, who may
opt to subscribe to the Clock Service and will help to protect a free
and open market by continuing to provide additional services (offered
on an optional basis for a fee) to the marketplace and by providing
investors with greater choices. The Exchange believes that the proposed
trial is equitable and not unfairly discriminatory because it will
apply equally to all new subscribers to the Clock Service. As such, the
Exchange believes that the proposed fees are reasonable and set at a
level to compete with other exchanges that may choose to offer a
similar service.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes the
reports will contribute to robust competition among national securities
exchanges. The Clock Service further enhances competition between
exchanges by allowing the Exchange to expand its product offerings to
include services similar to services that are currently offered by
other exchanges.\16\
---------------------------------------------------------------------------
\16\ See e.g., MIAX Emerald Rule 531.
---------------------------------------------------------------------------
The Exchange also does not believe the proposed fees would cause
any unnecessary or inappropriate burden on intermarket competition as
other exchanges are free to introduce their own comparable offerings
with lower prices to better compete with the Exchange's offerings. The
Exchange operates in a highly competitive environment, and its ability
to price the reports is constrained by competition among exchanges who
choose to adopt similar products. The Exchange must consider this in
its pricing discipline in order to compete for subscribers of the
Exchange's market data via the reports. For example, proposing fees
that are excessively higher than fees for potentially similar offerings
would simply serve to reduce demand for the Exchange's Clock Service,
which as discussed, market participants are under no obligation to
utilize. In this competitive environment, potential purchasers are free
to choose which, if any, similar product to purchase to satisfy their
need for market information. As a result, the Exchange believes this
proposed rule change permits fair competition among national securities
exchanges.
The Exchange does not believe the proposed rule change would cause
any unnecessary or inappropriate burden on intramarket competition.
Particularly, the proposed fees apply uniformly to any purchaser in
that the Exchange does not differentiate between the different
participants that may purchase Clock Service.
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 \17\ and paragraph (f) of Rule 19b-4 \18\
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.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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#2351564f460e404c4e4e464d5750635046400d444c55"><span class="__cf_email__" data-cfemail="1e6c6b727b337d7173737b706a6d5e6d7b7d30797168">[email protected]</span></a>. Please include
file number SR-CboeBZX-2026-050 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-CboeBZX-2026-050. 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-CboeBZX-2026-050 and
should be submitted on or before July 6, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-11809 Filed 6-11-26; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on June 12, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.