Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend its Fees Schedule and Exchange Rule 6.5

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

September 14, 2026

Issuing agencies

Securities and Exchange Commission

Full Text

<html>
<head>
<title>Federal Register, Volume 91 Issue 176 (Monday, September 14, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 176 (Monday, September 14, 2026)]
[Notices]
[Pages 58226-58228]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-18665]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106313; File No. SR-CBOE-2026-076]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
its Fees Schedule and Exchange Rule 6.5

September 9, 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 September 1, 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.
---------------------------------------------------------------------------

\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 Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend its Fees Schedule and Exchange Rule 6.5 to (i) add MX2 LLC
(``MX2'') to fee code RD, (ii) delete the Catastrophic Error Review Fee
from the Fees Schedule, and (iii) amend Exchange Rule 6.5 to eliminate
the fee currently applicable in connection with a catastrophic error
review and instead assess a reduced $500 fee when the Obvious Error
Panel or Catastrophic Error Panel votes to uphold the decision under
review. 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 and Exchange Rule
6.5, effective September 1, 2026, to (1) add MX2 to fee code RD \3\
within the Routing Fees section of the Fees Schedule; (2) delete the
Catastrophic Error Review Fee from the Miscellaneous section of the
Fees Schedule as duplicative of Exchange Rule 6.5; \4\ and (3) amend
Exchange Rule 6.5 to eliminate the $5,000 charge currently applicable
in connection with a catastrophic error review and adopt a reduced $500
fee when the Obvious Error Panel or Catastrophic Error Panel votes to
uphold the decision under review.
---------------------------------------------------------------------------

\3\ Fee code RD is appended to Customer orders routed to AMEX,
BOX, EDGX, MIAX, SPHR, or PHLX (excluding orders in SPY options
routed to PHLX), as well as ETF and Equity options, and is assessed
a charge of $0.25 per contract.
\4\ See Exchange Rule 6.5, Nullification and Adjustment of
Option Transactions Including Obvious Errors.
---------------------------------------------------------------------------

Addition of MX2 to Fee Code RD
The Exchange assesses fees in connection with orders routed away to
various options exchanges. The Fees Schedule currently lists fee codes
and their corresponding transaction fees for certain Customer \5\
orders routed to other options exchanges. Currently, under the Routing
Fees section of the Fees Schedule, fee code RD is appended to Customer
orders routed to NYSE American (``AMEX''), BOX Options Exchange
(``BOX''), Cboe EDGX Exchange, Inc. (``EDGX''), MIAX Options Exchange
(``MIAX''), MIAX Sapphire, LLC (``SPHR''), or Nasdaq PHLX LLC
(``PHLX'') (excluding orders in SPY options routed to PHLX), as well as
ETF and Equity options, and assesses a charge of $0.25 per contract.
---------------------------------------------------------------------------

\5\ ``Customer'' applies to any order for the account of a
Priority Customer.
---------------------------------------------------------------------------

The Exchange's current approach to routing fees is to set forth in
a simple manner certain sub-categories of fees that approximate the
cost of routing to other options exchanges based on the cost of
transaction fees assessed by each venue as well as costs to the
Exchange for routing (i.e., clearing fees, connectivity and other
infrastructure costs, membership fees, etc.) (collectively, ``Routing
Costs''). The Exchange monitors the fees charged as compared to the
costs of its routing services and adjusts its routing fees and/or sub-
categories to ensure that the Exchange's fees result in a rough
approximation of overall Routing Costs, and are not significantly
higher or lower in any area. Other options exchanges assess routing
fees in a similar manner.\6\
---------------------------------------------------------------------------

\6\ See MEMX Options Exchange Fee Schedule, available at <a href="https://www.memx.com/options/fee-schedule">https://www.memx.com/options/fee-schedule</a>; MIAX Options Exchange Fee
Schedule, available at <a href="https://www.miaxglobal.com/markets/us-options/miax-options/fees">https://www.miaxglobal.com/markets/us-options/miax-options/fees</a>; MIAX Pearl Fee Schedule, available at
<a href="https://www.miaxglobal.com/markets/us-options/miax-pearl/fees">https://www.miaxglobal.com/markets/us-options/miax-pearl/fees</a>; MIAX
Emerald Fee Schedule, available at <a href="https://www.miaxglobal.com/markets/us-options/miax-emerald/fees">https://www.miaxglobal.com/markets/us-options/miax-emerald/fees</a>.
---------------------------------------------------------------------------

The Exchange proposes to amend fee code RD to add applicable
Customer orders routed to MX2, a national securities exchange. The
charge assessed per contract for fee code RD remains the same ($0.25)
under the proposed rule change. The proposed change results in an
assessment of fees that, given the fees of an away options exchange, is
in line with the Exchange's current approach to routing fees--that is,
in a manner that approximates the cost of routing Customer orders to
other away options exchanges, based on the general cost of transaction
fees assessed by the sub-category of away options exchanges for such
orders (as well as the Exchange's Routing Costs). The Exchange notes
that routing through the Exchange is optional and that market
participants will continue to be able to choose where to route
applicable Customer orders.
Deletion of the Catastrophic Error Review Fee
The Miscellaneous section of the Fees Schedule currently includes a
``Catastrophic Error Review Fee'' of $5,000, which by its terms is
assessed only if, after a request for review with the Exchange of a
potential Catastrophic Error, an Official determines that a
Catastrophic Error has occurred. The substance of this fee is set forth
in

[[Page 58227]]

Exchange Rule 6.5, which governs the nullification and adjustment of
option transactions, including obvious errors and catastrophic errors.
The Exchange proposes to delete the Catastrophic Error Review Fee from
the Miscellaneous section of the Fees Schedule because it is
duplicative of the corresponding provision in Rule 6.5, and maintaining
the fee in both the Fees Schedule and Rule 6.5 may cause confusion. The
proposed deletion is administrative and, as discussed below, the
Exchange is separately proposing to amend Rule 6.5 to eliminate the
$5,000 charge currently applicable in connection with a catastrophic
error review and to adopt a reduced $500 fee for appeals in its place.
Amendments to Exchange Rule 6.5
Currently, Exchange Rule 6.5(d)(3) provides that, in connection
with a catastrophic error review, if an Official determines that a
Catastrophic Error has [sic] occurred, the Trading Permit Holder will
be subject to a charge of $5,000. The Exchange proposes to amend Rule
6.5(d)(3) to eliminate that $5,000 charge. In its place, the Exchange
proposes to adopt new Rule 6.5(k)(5) and Rule 6.5(l)(5), which provide
that if the Obvious Error Panel or Catastrophic Error Panel,
respectively, votes to uphold the decision made under Rule 6.5, the
Exchange will assess a $500 fee against the Trading Permit Holder(s)
who initiated the request for appeal. In addition, in instances where
the Exchange, on behalf of a Trading Permit Holder, requests a
determination by another market center that a transaction is clearly
erroneous, the Exchange will pass any resulting charges through to the
relevant Trading Permit Holder. The proposed change is designed to
eliminate the fee borne by Trading Permit Holders in connection with
the Exchange's initial error review and instead apply a fee at the
appeal stage of the process. The proposed $500 fee is a nominal
administrative charge associated with the appeal process that is
substantially lower than the $5,000 charge currently applicable in
connection with a catastrophic error review, and is designed to
discourage the initiation of unfounded appeals. The proposed $500 fee
is identical to the fee assessed under Cboe BZX Exchange, Inc.
(``BZX'') Rule 20.6 and EDGX Rule 20.6 when the Obvious Error Panel on
those exchanges votes to uphold a decision; the Exchange notes that BZX
and EDGX utilize a single Obvious Error Panel for appeals, whereas the
Exchange maintains separate Obvious Error and Catastrophic Error
Panels.
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.\7\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \8\ 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) requirement that the rules of an exchange not be
designed to permit unfair discrimination. The Exchange also believes
the proposed rule change is consistent with Section 6(b)(4) of the
Act,\9\ which requires that Exchange rules provide for the equitable
allocation of reasonable dues, fees, and other charges among its
Trading Permit Holders and other persons using its facilities.
---------------------------------------------------------------------------

\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

The Exchange believes the proposed change to add MX2 to fee code RD
is reasonable because the charge assessed per contract for fee code RD
remains the same, and the change is designed to assess routing fees for
Customer orders routed to MX2 in a manner consistent with the
Exchange's current approach to routing fees--i.e., in the most
appropriate sub-category of fees that approximates the cost of routing
to a group of away options exchanges based on the cost of transaction
fees assessed by each venue as well as the Exchange's Routing Costs.
The Exchange believes the proposed change is equitable and not unfairly
discriminatory because all Customer orders routed to MX2 will
automatically yield fee code RD and uniformly be assessed the
corresponding fee. The Exchange operates in a highly competitive
market. The Commission has repeatedly expressed its preference for
competition over regulatory intervention in determining prices,
products, and services in the securities markets. 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. Accordingly, competitive forces constrain the Exchange's
transaction fees, and market participants can readily trade on
competing venues if they deem pricing levels at those other venues to
be more favorable.
The Exchange believes the proposed deletion of the Catastrophic
Error Review Fee from the Miscellaneous section of the Fees Schedule is
reasonable, equitable, and not unfairly discriminatory. The deletion is
administrative and is intended to avoid duplication and potential
confusion between the Fees Schedule and Exchange Rule 6.5. The
substance of the fee applicable in connection with the Exchange's
error-review process is, and will continue to be, addressed in Rule
6.5, as proposed to be amended.
The Exchange believes the proposed amendments to Exchange Rule 6.5
to eliminate the $5,000 charge currently applicable in connection with
a catastrophic error review and to adopt a reduced $500 fee assessed
against a Trading Permit Holder who initiates a request for appeal that
is upheld by the Obvious Error Panel or Catastrophic Error Panel are
reasonable. The proposed $500 fee is a nominal administrative charge
associated with the appeal process that is substantially lower than the
$5,000 charge currently applicable in connection with a catastrophic
error review, and is designed to discourage the initiation of unfounded
appeals. The Exchange notes that the proposed $500 fee is identical to
the fee assessed under BZX Rule 20.6 and EDGX Rule 20.6 when the
Obvious Error Panel on those exchanges votes to uphold a decision. The
Exchange believes the proposed changes are equitable and not unfairly
discriminatory because the proposed $500 fee will apply uniformly to
any Trading Permit Holder(s) who initiate a request for appeal that is
upheld by the applicable Panel, and the elimination of the $5,000
charge applies uniformly to all Trading Permit Holders.

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.
Intramarket Competition. The Exchange does not believe the proposed
changes will impose any burden on intramarket competition. The proposed
change to add MX2 to fee code RD will

[[Page 58228]]

apply automatically and uniformly to all Trading Permit Holders'
applicable Customer orders routed to MX2, which will be assessed the
same $0.25 per contract charge that applies to orders routed to other
exchanges within fee code RD. The proposed deletion of the Catastrophic
Error Review Fee from the Fees Schedule is administrative and is
intended to avoid duplication with Exchange Rule 6.5. The proposed
amendments to Rule 6.5 to eliminate the $5,000 charge currently
applicable in connection with a catastrophic error review and to adopt
a reduced $500 fee assessed when the Obvious Error Panel or
Catastrophic Error Panel votes to uphold the decision under review will
apply uniformly to all Trading Permit Holders that initiate a request
for appeal under Rule 6.5.
Intermarket Competition. The Exchange does not believe the proposed
changes will impose any burden on intermarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act.
With respect to the addition of MX2 to fee code RD, the Exchange
operates in a highly competitive market in which market participants
can readily direct order flow to competing venues, including 17 other
options exchanges and off-exchange venues; routing through the Exchange
is optional; and the charge assessed under fee code RD is unchanged.
The proposed deletion of the Catastrophic Error Review Fee and the
proposed amendments to Exchange Rule 6.5 concern the Exchange's own
error-review process and do not impose any burden on intermarket
competition. Trading Permit Holders may readily direct their order flow
to competing venues if they deem the Exchange's fees to be excessive.

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 \10\ and paragraph (f) of Rule 19b-4 \11\
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.
---------------------------------------------------------------------------

\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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#ef9d9a838ac28c8082828a819b9caf9c8a8cc1888099"><span class="__cf_email__" data-cfemail="3341465f561e505c5e5e565d4740734056501d545c45">[email&#160;protected]</span></a>. Please include
file number
SR-CBOE-2026-076 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-2026-076. 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-2026-076 and should be submitted on
or before October 5, 2026.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-18665 Filed 9-11-26; 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>

View on FederalRegister.gov →Plain-text source

Indexed from Federal Register on September 14, 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.