Notice2026-12029
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Market-Maker Tier Appointment Fees
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Published
June 16, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 115 (Tuesday, June 16, 2026)</title>
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[Federal Register Volume 91, Number 115 (Tuesday, June 16, 2026)]
[Notices]
[Pages 36219-36221]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-12029]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105664; File No. SR-CBOE-2026-050]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Market-Maker Tier Appointment Fees
June 11, 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 May 29, 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 Market-Maker tier appointment fees. 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/cone/">https://www.cboe.com/us/options/regulation/rule_filings/cone/</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 Fees Schedule.\3\
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\3\ The Exchange initially filed the proposed fee change, among
other changes, on April 1, 2026 (SR-CBOE-2026-031). On May 29, 2026,
the Exchange withdrew that filing and submitted this proposal.
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By way of background, Exchange Rule 5.50(g)(2) provides that the
Exchange may establish one or more types of tier appointments and
Exchange Rule 5.50(g)(2)(B) provides such tier appointments are subject
to such fees and charges the Exchange may establish. In 2011, the
Exchange established the VIX Floor Tier Appointment and adopted an
initial fee of $1,000 per Market-Maker trading permit, per month,\4\
and later increased this fee to from $1,000 to $2,000 per month.\5\ In
2016, the Exchange established the RUT Floor Tier Appointment and
adopted an initial fee of $1,000 per Market-Maker trading permit, per
month.\6\ In 2020, the Exchange established the separate VIX and RUT
Electronic Access Permit (``EAP'') Tier Appointment fees, which align
with the respective Floor Tier Appointment fees.\7\
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\4\ See Securities Exchange Act Release No. 63706 (January 12,
2011), 76 FR 3184 (January 19, 2011) (SR-CBOE-2011-004).
\5\ See Securities Exchange Act Release No. 66277 (January 30,
2012), 77 FR 5595 (February 3, 2012) (SR-CBOE-2012-008).
\6\ See Securities Exchange Act Release No. 76923 (January 15,
2016), 81 FR 3841 (January 22, 2016) (SR-CBOE-2016-002).
\7\ See Securities Exchange Act Release No. 90333 (November 4,
2020), 85 FR 71666 (November 10, 2020) (SR-CBOE-2020-105).
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Currently, these fees are assessed to any Market-Maker TPH that has
the respective VIX or RUT appointment at any time during a calendar
month and trades a specified number of contracts. The Exchange assesses
separate Tier Appointment Fees for each type of Market-Maker Trading
Permit (i.e., Market-Maker Floor Permit and Market-Maker Electronic
Access Permit (``EAP'')). Specifically, as it relates to Market-Maker
Floor Permits, the $2,000 per month VIX Tier Appointment is assessed to
any Market-Maker TPH that executes at least 1,000 contracts in VIX, and
the $1,000 per month RUT Tier Appointment is assessed to any Market-
Maker TPH that executes at least 1,000 contracts in RUT; both are
applied per Market-Maker Floor Permit. As it relates to Market-Maker
EAP, the $2,000 per month VIX Tier Appointment is assessed to any
Market-Maker TPH that executes at least 1,000 contracts in VIX
[[Page 36220]]
and the $1,000 per month RUT Tier Appointment is assessed to any
Market-Maker TPH that executes at least 1,000 contracts in RUT; both
are applied per TPH.
The Exchange proposes to amend the Tier Appointment Fee amounts.
Specifically, the Exchange proposes to increase the VIX Tier
Appointment fee to $2,500 (for both Market-Maker Floor Permits and
Market-Maker EAP) and to increase the RUT Tier Appointment Fee to
$1,500 (for both Market-Maker Floor Permits and Market-Maker EAP).
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.\8\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \9\ 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) \10\ 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) of the Act,\11\ which
requires that Exchange rules provide for the equitable allocation of
reasonable dues, fees, and other charges among its TPHs and other
persons using its facilities.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ Id.
\11\ 15 U.S.C. 78f(b)(4).
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The Exchange believes its proposal to amend its Market-Maker Tier
Appointment Fees for VIX and RUT is reasonable, equitable, and not
unfairly discriminatory.
The Exchange believes the proposed fees are reasonable as the
Exchange believes it remains commensurate with the value of operating
as a Market-Maker at the Exchange.
First, in regard to the floor tier appointments, in 2022, the
Exchange transitioned from its previous trading floor, which it had
occupied since the 1980s, to a brand new, modern and upgraded trading
floor facility. The Exchange believes customers continue to find value
in open outcry trading and rely on the floor for price discovery and
the deep liquidity provided by floor Market-Makers, particularly for
more complicated strategies and larger-sized orders. The build out of a
new modern trading floor reflects the Exchange's commitment to open
outcry trading and focus on providing the best possible trading
experience for its customers, including Market-Makers. For example, the
current trading floor provides a state-of-the-art environment and
technology and more efficient use of physical space, which the Exchange
believes better reflects and supports the current trading environment.
The Exchange also believes the infrastructure provides a cost-
effective, streamlined, and modernized approach to floor connectivity.
For example, the new trading floor has more than 330 individual kiosks,
equipped with top-of-the-line technology that enables floor
participants to plug in and use their devices with greater ease and
flexibility. The new trading floor provided by the Exchange also
provides floor Market-Makers with more space and increased capacity to
support additional floor-based traders on the trading floor. The
Exchange believes the new location, which was also home to the
Exchange's original trading floor in the 1970s and early 1980s, is also
able to support robust trading floor infrastructure as it currently
hosts several banks, trading firms and even trading floors (i.e.,
trading floors for the Chicago Mercantile Exchange and BOX Options
Market). The Exchange also believes the relocation to the new trading
floor resulted in a streamlined and simplified trading floor and
facility fee structure, as further described in the Exchange's proposal
to amend certain facility fees in connection with the new trading
floor.\12\ The Exchange also notes that is has not sought to pass
through a number of costs incurred in connection with the new trading
floor, including design, construction and other on-going maintenance
costs.\13\ The Exchange also offers free coffee and beverages on the
new trading floor, along with occasional breakfast events. Moreover,
the Exchange has not modified many of its facilities fees in several
years. The Exchange therefore believes the proposed increase to the VIX
and RUT Floor Market-Maker Tier Appointment fees is reasonable because
the Exchange's investment in its new modern cutting-edge trading floor
has improved the quality of the trading floor.
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\12\ See Securities Exchange Act Release No. 96001 (October 6,
2022), 87 FR 62129 (October 13, 2022) (SR-CBOE-2022-049).
\13\ The Exchanges notes that in 2023, the Exchange increased
the SPX (and SPXW) Floor Market-Maker Tier Appointment Fee (from
$3,000 per Market-Maker Floor Trading Permit to $5,000 per Market-
Maker Floor Trading Permit). See Securities Exchange Act Release No.
98406 (September 15, 2023), 88 FR 65218 (September 21, 2023) (SR-
CBOE-2023-047).
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Additionally, the Exchange further believes the proposal to
increase the fees is reasonable as the Exchange has provided further
value to Market-Makers by expanding the suite of RUT and VIX products
available to Market-Makers since the RUT and VIX Market-Maker Tier
Appointment fees were first adopted. For example, in 2016, the Exchange
began listing RUT Weekly options with Monday and Wednesday expirations;
\14\ in 2024, the Exchange began listing RUT options that expire on
Tuesday or Thursday; \15\ in 2024, the Exchange began listing RUT P.M.-
settled options that expire on the standard third Friday-of-the-month;
\16\ and in 2015, the Exchange began listing VIX Weekly options with
Wednesday expirations.\17\ The introduction of these products provides
Market-Makers with additional opportunities to trade RUT and VIX and
greater trading flexibility as compared to when the tier appointment
fees were first established. Moreover, overall average daily volume
(ADV) in VIX options has increased nearly 144% from 2011, while overall
average ADV in RUT options has increased nearly 5% from 2016. Further,
increased ADV in VIX and RUT options provides increased trading
opportunities for VIX and RUT Market-Makers which the Exchange believes
is commensurate with the value of the proposed increase of the tier
appointment fees.
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\14\ See Securities Exchange Act Release No. 76909 (January 14,
2016), 81 FR 3512 (January 21, 2016) (SR-CBOE-2015-106). See also
Securities Exchange Act Release No. 78531 (August 10, 2016), 81 FR
54643 (August 16, 2016) (SR-CBOE-2016-146).
\15\ See Securities Exchange Act Release No. 98957 (November 15,
2023), 88 FR 81130 (November 21, 2023) (SR-CBOE-2023-054).
\16\ See Securities Exchange Act Release No. 101197 (September
26, 2024), 89 FR 80291 (October 2, 2024) (SR-CBOE-2024-034).
\17\ See Securities Exchange Act Release No. 75501 (July 21,
2015), 80 FR 44403 (July 27, 2015) (SR-CBOE-2015-050).
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Moreover, the Exchange also believes its proposal to increase the
VIX and RUT Market-Maker Tier Appointment fees is reasonable as each
respective fee amount has not been increased since the
[[Page 36221]]
VIX fee was last changed in 2012 and the RUT fee was adopted in 2016.
Particularly, since the time that the VIX Market-Maker Tier Appointment
fee was last changed in 2012 and the RUT Market-Maker Tier Appointment
fee was adopted in 2016, respectively, there has been notable
inflation.
Indeed, the dollar has had an average inflation rate of 2.7% per
year between 2012 and today, thus producing a cumulative price increase
of approximately 46% inflation since 2012, when the VIX Market-Maker
Tier Appointment was last changed.\18\ For nearly fourteen years with
respect to the VIX Market-Maker Tier Appointment fee, Market-Makers
were only subject to the rate that was adopted in 2012 (i.e., $2,000)
notwithstanding an average inflation rate of 2.7% per year. The
Exchange acknowledges its proposed fee is an increase of 25%. However,
the Exchange believes such increase is reasonable given many Market-
Makers for nearly 14 years did not have to pay increased fees
notwithstanding yearly inflation.
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\18\ See <a href="https://www.bls.gov/data/inflation_calculator.htm">https://www.bls.gov/data/inflation_calculator.htm</a>.
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The dollar has had an average inflation rate of 3.38% per year
between 2016 and today, thus producing a cumulative price increase of
approximately 40% inflation since 2016 when the RUT Market-Maker Tier
Appointment was first adopted.\19\ For nearly ten years with respect to
the RUT Market-Maker Tier Appointment fee, Market-Makers were only
subject to the rate that was adopted in 2016 (i.e., $1,000)
notwithstanding an average inflation rate of 3.38% per year. The
Exchange acknowledges its proposed fee is an increase of 50%. However,
the Exchange believes such increase is reasonable given many Market-
Makers for nearly 10 years did not have to pay increased fees
notwithstanding yearly inflation. Moreover, the Exchange historically
does not increase fees every year, notwithstanding inflation. The
Exchange therefore believes that proposing a fee in excess of the
cumulative 40% inflation rate is still reasonable, especially when
considered in conjunction with all of the additional and further
rationale discussed above. The Exchange is also unaware of any standard
that suggests any fee proposal that exceeds a yearly or cumulative
inflation rate is unreasonable.
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\19\ See <a href="https://www.bls.gov/data/inflation_calculator.htm">https://www.bls.gov/data/inflation_calculator.htm</a>.
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Further, the Exchange believes the proposed changes are equitable
and not unfairly discriminatory. The increased Market-Maker Tier
Appointment Fees apply uniformly to all Market-Maker TPHs with a VIX or
RUT appointment who meet the 1,000-contract execution threshold.
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 does not believe the proposed changes related to the
Market-Maker Tier Appointment Fees for VIX and RUT will impose any
burden on intramarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The increased Market-Maker
Tier Appointment Fees apply uniformly to all Market-Maker TPHs with a
VIX or RUT appointment who meet the 1,000-contract execution threshold.
The Exchange believes the fee increases are modest and proportionate
relative to the current rates and notes that it operates in a
competitive environment in which Market-Maker TPHs may evaluate the
costs and benefits of maintaining appointments in particular products.
The Exchange does not believe that the proposed floor fee changes
will impose an unnecessary or inappropriate burden on intermarket
competition because they only apply to Cboe Options. To the extent that
the changes prove attractive to market participants on other options
exchanges, or its results prove attractive to market participants on
other exchanges, such market participants may elect to become Floor
Brokers or market participants at the Exchange.
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 \20\ and paragraph (f) of Rule 19b-4 \21\
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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\20\ 15 U.S.C. 78s(b)(3)(A).
\21\ 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#c0b2b5aca5eda3afadada5aeb4b380b3a5a3eea7afb6"><span class="__cf_email__" data-cfemail="1a686f767f37797577777f746e695a697f79347d756c">[email protected]</span></a>. Please include
file number SR-CBOE-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-CBOE-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-CBOE-2026-050 and
should be submitted on or before July 7, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2026-12029 Filed 6-15-26; 8:45 am]
BILLING CODE 8011-01-P
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