Notice2026-11924
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule by Removing the Note Appended to the RPI Add Tier
Primary source
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Published
June 15, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 114 (Monday, June 15, 2026)</title>
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[Federal Register Volume 91, Number 114 (Monday, June 15, 2026)]
[Notices]
[Pages 36020-36022]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11924]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105653; File No. SR-CboeEDGX-2026-044]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Its Fee Schedule by Removing the Note Appended to the RPI Add
Tier
June 10, 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 June 1, 2026, Cboe EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') proposes to
amend its Fee Schedule by removing the note appended to the RPI Add
Tier. 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/edgx/">https://www.cboe.com/us/equities/regulation/rule_filings/edgx/</a>), and at the principal office of the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fee Schedule applicable to its
equities trading platform (``EDGX Equities'') by removing the note
appended to the RPI Add Tier. The Exchange proposes to implement these
changes effective June 1, 2026.
The Exchange first notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. More specifically, the
Exchange is only one of 17 registered equities exchanges, as well as a
number of alternative trading systems and other off-exchange venues
that do not have similar self-regulatory responsibilities under the
Securities Exchange Act of 1934 (the ``Act''), to which market
participants may direct their order flow. Based on publicly available
information,\3\ no single registered equities exchange has more than
15% of the market share. Thus, in such a low-concentrated and highly
competitive market, no single equities exchange possesses significant
pricing power in the execution of order flow. The Exchange in
particular operates a ``maker-taker'' model whereby it pays rebates to
members that add liquidity and assesses fees to those that remove
liquidity.
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\3\ See Cboe Global Markets, U.S. Equities Market Volume
Summary, Month-to-Date (May 26, 2026), available at <a href="https://www.cboe.com/us/equities/_statistics/">https://www.cboe.com/us/equities/_statistics/</a>.
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The Exchange's Fee Schedule sets forth the standard rebates and
rates applied per share for orders that provide and remove liquidity,
respectively. Currently, for orders in securities priced at or above
$1.00, the Exchange provides a standard rebate of $0.00160 per share
for orders that add liquidity and assesses a fee of $0.0030 per share
for orders that remove liquidity.\4\ For orders in securities priced
below $1.00, the Exchange provides a standard rebate of 0.00003 per
share for orders that add liquidity and assesses a fee of 0.30% of the
dollar value for orders that remove liquidity.\5\ The Exchange offers
various fee codes applicable to orders that add or remove liquidity on
EDGX.
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\4\ See EDGX Equities Fee Schedule, Standard Rates.
\5\ Id.
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On March 19, 2026, the Commission approved the Exchange's proposed
adoption of the EDGX RPI Program.\6\ The EDGX RPI Program launched on
the Exchange on April 10, 2026. The EDGX RPI Program seeks to enable
Members to offer price improvement to eligible Retail Orders through
use of Retail Price Improvement Orders (``RPI Orders'') \7\ in
securities priced at or above $1.00. In anticipation of the EDGX RPI
Program's launch, the Exchange introduced fee code ZP to its Fee
Schedule on April 1, 2026.\8\ Rather than providing the standard
rebate, fee code ZP assesses a fee of $0.0002 to RPI Orders in
securities priced at or above $1.00 that add liquidity to the
Exchange.\9\
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\6\ See Securities Exchange Act Release No. 105052 (March 19,
2026), 91 FR 14052 (March 24, 2026) (SR-CboeEDGX-2025-072).
\7\ See Rule 11.21(a)(3). A ``Retail Price Improvement Order''
or ``RPI Order'' consists of nondisplayed interest on the Exchange
that is eligible to interact with incoming Retail Orders and that is
identified by the Retail Liquidity Identifier described in Rule
11.21(e). To be executable, an RPI Order for a security priced at or
above $1.00 must be priced at least $0.001 better than the Protected
NBB or Protected NBO and may be priced in $0.001 increments (e.g.,
$10.001). An RPI Order may not be entered in securities priced below
$1.00. An RPI Order is ineligible to execute at prices equal to or
inferior to the Protected NBB (for buy orders) or Protected NBO (for
sell orders). An RPI Order that is ineligible to execute because it
is priced equal to or inferior to the Protected NBB or Protected NBO
will not be canceled and will become eligible to execute against
incoming Retail Orders should the RPI Order become priced better
than the Protected NBB (for buy orders) or Protected NBO (for sell
orders) at a later time. An incoming RPI Order will not be eligible
to interact with a resting Retail Order on the EDGX Book and upon
entry will post to the EDGX Book to execute against later-arriving
Retail Orders.
\8\ See Securities Exchange Act Release No. 105321 (April 28,
2026), SR-CboeEDGX-2026-026.
\9\ See Rule 11.21(a)(3). Securities with executions priced
below $1.00 are not eligible to be appended with fee code ZP, as an
RPI Order may not be entered in securities priced below $1.00.
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Under footnote 6 of the Fee Schedule, the Exchange offers RPI Add
Tier 1. Specifically, this tier provides a reduced fee for qualifying
orders (e.g., orders appended with fee code ZP \10\) that satisfy the
RPI Add ADV criteria.
[[Page 36021]]
Additionally, RPI Add Tier 1 contains a note, which provided that for
May 2026, RPI Add Tier 1 is only available for qualification and shall
utilize quoting and trading activity from May 2026 for its volume
calculations. Payment for this tier shall not begin until June 2026 for
those Members that satisfy the criteria during May 2026. The Exchange
now proposes to remove the note appended to RPI Add Tier 1 as the tier
will utilize the prior month's quoting and trading activity to derive
volume figures, in accordance with the General Notes section of the Fee
Schedule.
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\10\ Fee code ZP is appended to Retail Price Improving Orders
that add liquidity to the EDGX Book.
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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.\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 as well as Section 6(b)(4) \14\
as it is designed to provide for the equitable allocation of reasonable
dues, fees and other charges among its Members and other persons using
its facilities.
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\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)
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The Exchange believes removing the text accompanying RPI Add Tier 1
promotes just and equitable principles of trade, provides for the
equitable allocation of reasonable dues, fees and other charges, and is
not unfairly discriminatory because it applies to all Members equally,
in that any Member seeking to achieve the criteria of RPI Add Tier 1
will be utilizing quoting and trading activity from the prior month, in
accordance with the General Notes section of the Fee Schedule. No
Member shall be permitted to use quoting and trading activity from the
current month when seeking to achieve the criteria of RPI Add Tier 1.
Providing this additional clarity on the Exchange's Fee Schedule
ensures that all market participants have information regarding the
quoting and trading activity being utilized to determine qualification
for RPI Add Tier 1, which provides for the equitable allocation of
reasonable fees among the Exchange's Members.
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. Rather, as discussed above,
the Exchange believes that the proposed changes will encourage the
submission of additional order flow to a public exchange, thereby
promoting market depth, execution incentives and enhanced execution
opportunities, as well as price discovery and transparency for all
Members. As a result, the Exchange believes that the proposed changes
further the Commission's goal in adopting Regulation NMS of fostering
competition among orders, which promotes ``more efficient pricing of
individual stocks for all types of orders, large and small.''
The Exchange believes the proposed rule change does not impose any
burden on intramarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Particularly, the proposed
removal of the note associated with RPI Add Tier 1 is not being made
for competitive reasons, but rather to appropriately define the
applicable time period for which the Exchange will utilize quoting and
trading activity for the tier's volume calculations.
Next, the Exchange believes the proposed rule changes do not impose
any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. As previously
discussed, the Exchange operates in a highly competitive market.
Members have numerous alternative venues that they may participate on
and direct their order flow, including other equities exchanges, off-
exchange venues, and alternative trading systems. Additionally, the
Exchange represents a small percentage of the overall market. Based on
publicly available information, no single equities exchange has more
than 15% of the market share.\15\ Therefore, no exchange possesses
significant pricing power in the execution of order flow. Indeed,
participants can readily choose to send their orders to other exchange
and off-exchange venues if they deem fee levels at those other venues
to be more favorable. Moreover, 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.'' \16\ The fact that this market is competitive has also
long been recognized by the courts. In NetCoalition v. Securities and
Exchange Commission, the D.C. Circuit stated as follows: ``[n]o one
disputes that competition for order flow is `fierce.' . . . As the SEC
explained, `[i]n the U.S. national market system, buyers and sellers of
securities, and the broker-dealers that act as their order-routing
agents, have a wide range of choices of where to route orders for
execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . . .''.\17\ Accordingly, the Exchange does not believe its
proposed fee changes impose any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act.
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\15\ Supra note 4.
\16\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
\17\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
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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 \18\ and paragraph (f) of Rule 19b-4 \19\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may
[[Page 36022]]
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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\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 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#5022253c357d333f3d3d353e2423102335337e373f26"><span class="__cf_email__" data-cfemail="9be9eef7feb6f8f4f6f6fef5efe8dbe8fef8b5fcf4ed">[email protected]</span></a>. Please include
file number SR-CboeEDGX-2026-044 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-CboeEDGX-2026-044. 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-CboeEDGX-2026-044 and should be
submitted on or before July 6, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2026-11924 Filed 6-12-26; 8:45 am]
BILLING CODE 8011-01-P
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