Notice2026-19863
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Cboe Bitcoin U.S. ETF Index Options (“CBTX”) and Cboe Mini Bitcoin U.S. ETF Index Options (“MBTX”) Standard Transaction Fees
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 29, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 187 (Tuesday, September 29, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 187 (Tuesday, September 29, 2026)]
[Notices]
[Pages 61494-61497]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19863]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106481; File No. SR-CBOE-2026-077]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Cboe Bitcoin U.S. ETF Index Options (``CBTX'') and Cboe Mini Bitcoin
U.S. ETF Index Options (``MBTX'') Standard Transaction Fees
September 24, 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 15, 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.
---------------------------------------------------------------------------
[[Page 61495]]
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 Cboe Bitcoin U.S. ETF Index options (``CBTX'') and Cboe Mini
Bitcoin U.S. ETF Index options (``MBTX'') standard transaction 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\
---------------------------------------------------------------------------
\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 SR-CBOE-2026-051. On
July 20, 2026, the Exchange withdrew that filing and submitted this
proposal. On September 15, 2026, the Exchange withdrew that filing
and submitted this proposal. The Exchange intends to withdraw this
filing on October 1, 2026, as of which date MBTX and CBTX
transaction fees will revert back to the rates that were effective
as of March 31, 2026. The Exchange notes that subsequent to SR-CBOE-
2026-031 and SR-CBOE-2026-051, the Exchange amended its Fees
Schedule to make changes in connection with the fees related to
certain orders executed in Automated Improvement Mechanism (``AIM'')
Auctions, to amend the Customer Volume Incentive Program and
Affiliated Volume Plan, to amend the fee structure related to DJX
and RUT FLEX Micro orders, to eliminate references to MSCI Index
Products, to adopt certain standard transaction fees in connection
with binary options that overlie the Mini-S&P 500 Index (``XSP
binary options'') and exclude XSP binary options from certain fees
programs; such changes are incorporated into Exhibit 5 to this
filing, as applicable.
---------------------------------------------------------------------------
CBTX
The Exchange proposes to amend and adopt certain fees related to
transactions in CBTX. Specifically, the proposed rule change amends and
adopts certain fees for CBTX in the Rate Table for All Products
Excluding Underlying Symbol List A, as follows:
<bullet> Amends fee code B2, currently appended to all Market-Maker
(capacity ``M''), Clearing TPHs (capacity ``F''), Non-Clearing TPH
Affiliates (capacity ``L''), Broker-Dealer (capacity ``B''), Joint
Back-Office (capacity ``J''), Non-TPH Market-Maker (capacity ``N''),
and Professional (capacity ``U'') (collectively, ``Non-Customer'')
orders in CBTX and assesses a fee of $1.00 per contract, to apply to
all Non-Customer orders in CBTX that are executed manually (i.e., open
outcry).\4\
---------------------------------------------------------------------------
\4\ For avoidance of doubt, there are no practical changes to
fee rates assessed for Non-Customer orders in CBTX that are executed
manually as a result of the proposed rule change.
---------------------------------------------------------------------------
<bullet> Adopts fee code B3, appended to all Non-Customer orders in
CBTX contra to non-customers that remove liquidity and that are
executed electronically and assesses a fee of $1.50 per contract.
<bullet> Adopts fee code B4, appended to all Market-Maker (capacity
``M'') orders in CBTX contra to non-customers that add liquidity and
that are executed electronically and provides a rebate of $0.75 per
contract.
<bullet> Adopts fee code B5, appended to all electronically
executed Non-Customer orders in CBTX contra to customers and all
electronically executed Non-Customer, Non-Market Maker orders in CBTX
contra to non-customers that add liquidity, and assesses a fee of $1.00
per contract.\5\
---------------------------------------------------------------------------
\5\ For avoidance of doubt, there are no practical changes to
fee rates assessed for electronically executed Non-Customer orders
in CBTX contra to customers and electronically executed Non-
Customer, Non-Market Maker orders in CBTX contra to non-customers
that add liquidity as a result of the proposed rule change.
---------------------------------------------------------------------------
MBTX
The Exchange proposes to amend and adopt certain fees related to
transactions in MBTX. Specifically, the proposed rule change amends and
adopts certain fees for MBTX in the Rate Table for All Products
Excluding Underlying Symbol List A, as follows:
<bullet> Amends fee code M2, currently appended to all Non-Customer
orders in CBTX and assesses a fee of $0.50 per contract, to apply to
all Non-Customer orders in MBTX that are executed manually (i.e., open
outcry).\6\
---------------------------------------------------------------------------
\6\ For avoidance of doubt, there are no practical changes to
fee rates assessed for Non-Customer orders in MBTX that are executed
manually as a result of the proposed rule change.
---------------------------------------------------------------------------
<bullet> Adopts fee code M3, appended to all Non-Customer orders in
MBTX contra to non-customers that remove liquidity and that are
executed electronically and assesses a fee of $1.00 per contract.
<bullet> Adopts fee code M4, appended to all Market-Maker (capacity
``M'') orders in MBTX contra to non-customers that add liquidity and
that are executed electronically and provides a rebate of $0.50 per
contract.
<bullet> Adopts fee code M5, appended to all electronically
executed Non-Customer orders in MBTX contra to customers and all
electronically executed Non-Customer, Non-Market Maker orders in MBTX
contra to non-customers that add liquidity, and assesses a fee of $0.50
per contract.\7\
---------------------------------------------------------------------------
\7\ For avoidance of doubt, there are no practical changes to
fee rates assessed for electronically executed Non-Customer orders
in MBTX contra to customers and electronically executed Non-
Customer, Non-Market Maker orders in MBTX contra to non-customers
that add liquidity as a result of the proposed rule change.
---------------------------------------------------------------------------
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
[[Page 61496]]
TPHs and other persons using its facilities.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
The Exchange believes that the proposal to amend fee codes for
transactions in CBTX and MBTX is reasonable, equitable and not unfairly
discriminatory. The proposed changes differentiate rates based on
capacity, execution method, capacity of contra-party, and whether the
order adds or removes liquidity. The Exchange notes that it is not
novel to charge different fees for different market participants based
such on these differences and notes that options exchanges have
routinely recognized such differences in their fee schedules.\12\
Moreover, the Exchange believes that it is reasonable to assess lower
fees for MBTX options orders (as compared to CBTX options orders),
because of the relation between CBTX options and MBTX options, wherein
MBTX options overlie an index with \1/10\th the value of the index that
underlies CBTX options.
---------------------------------------------------------------------------
\12\ See, e.g., Exchange Fees Schedule, fee code XF, appended to
electronic Non-Customer, Non-Market Maker orders in XSP, MRUT, or
DJX, Contra Customer or Contra Non-Customer, which add liquidity,
and fee code XB, appended to electronic Non-Customer, Non-Market
Maker orders in XSP, MRUT, or DJX, Contra Customer or Contra Non-
Customer, which remove liquidity. See also EDGX Options Fee
Schedule, fee code PM, which is specific to Market-Maker orders in
Penny Securities that add liquidity, and fee code PT, which is
specific to Market-Maker orders in Penny Securities that remove
liquidity. See also Exchange Fees Schedule.
---------------------------------------------------------------------------
The Exchange believes the proposed rebate for Market-Maker orders
in CBTX and MBTX that add liquidity contra a non-customer, and the
corresponding fee assessed on non-customer orders that remove liquidity
contra a non-customer in those products are reasonable, equitably
allocated, and not unfairly discriminatory. Market-Makers on the
Exchange are obligated to post continuous two-sided quotes, which
represent standing commitments to trade at stated prices. In some
instances identified by the Exchange, these resting quotes are accessed
by non-bona fide non-customer order activity, which seek to put that
passive Market-Maker at a disadvantage (via an identified price
discrepancy or informational advantage, for example). The Exchange has
observed that this activity has, over time, led to these Market-Makers
widening quotes to avoid repeatedly being ``picked off.'' Wider quotes
result in less competitive markets for all market participants.
The proposed fee structure addresses this problem in two ways. By
assessing a fee on non-customer orders that remove liquidity contra a
non-customer, the Exchange makes the opportunistic behavior described
above less attractive, as any perceived advantage being obtained is
offset by higher transaction fees. Further, by providing a rebate to
Market-Makers whose resting quotes are accessed by a non-customer, the
Exchange seeks to offset a portion of the adverse selection risk that
these passive Market-Makers may bear, thereby reducing the incentive to
widen quotes defensively. Overall, Market-Makers are encouraged to
maintain tight quotes, and potential aggressors face a pricing
disincentive that is calibrated to the market quality harm their
behavior produces.
The Exchange believes the proposed fee structure reasonably
addresses a recognized pattern of trading that impairs market quality,
namely opportunistic non-customer aggression against passive Market-
Maker quotes. The Exchange believes the proposed fee structure is
reasonable because the removal fee is a targeted and proportionate
response to a recognized form of market quality degradation, set at a
level designed to discourage opportunistic aggression without
penalizing legitimate trading activity. Further, the rebate is
calibrated to compensate passive Market-Makers for the adverse
selection risk which may lead to wider spreads and reduced market depth
to the detriment of all market participants.
The Exchange believes the proposed fee structure is equitably
allocated and not unfairly discriminatory. The rebate is available to
all CBTX and MBTX Market-Maker orders that meet the applicable
criteria. The removal fee applies uniformly to all non-customer orders
removing liquidity contra a non-customer in those products. The
differential treatment between these categories reflects meaningful and
well-recognized distinctions in market function. Market-Makers are
subject to affirmative quoting obligations, including requirements to
maintain continuous two-sided markets, that impose ongoing regulatory
and financial burdens not shared by other participants. Compensating
Market-Makers for those obligations through a rebate is equitable
because the liquidity they provide benefits the entire market.
Conversely, the Exchange believes assessing a fee on non-customer
removal flow may disincentivize opportunistic aggression against
passive Market-Makers, which imposes potential costs on the market that
are allocated to contra-parties whose trading behavior generates such
potential costs.
The Exchange believes the proposed rates, including the $1.50 per
contract fee assessed on non-customer orders removing liquidity contra
a non-customer in CBTX, are reasonable and consistent with fees charged
by other options exchanges for comparable order flow in Non-Penny
products. The Exchange notes that multiple registered options exchanges
currently assess standard transaction rates for non-customer orders in
Non-Penny classes at or above $1.20 per contract.\13\ The proposed CBTX
fee for non-customer orders that remove liquidity contra a non-customer
of $1.50 per contract is therefore within the range of fees currently
assessed by competing venues for comparable activity. The Exchange
further notes that the $1.50 per contract rate applies only in the
specific circumstance where a non-customer order removes liquidity
contra another non-customer in CBTX, which is a targeted application
reflecting the market quality rationale described above. The Exchange
acknowledges that CBTX and MBTX are proprietary products available
exclusively on the Exchange. However, the Exchange notes that market
participants retain the ability to migrate activity to economically
similar products available at other venues,\14\ and that the proposed
rates must therefore be set at levels that reflect the value of trading
these products, not at levels that would drive participants toward
substitutes.
---------------------------------------------------------------------------
\13\ See NYSE Arca Options Fees and Charges, TRANSACTION FEE FOR
ELECTRONIC EXECUTIONS--PER CONTRACT, which assesses a standard
transaction fee of $1.20 per contract for Non-Customer Electronic
Executions in Non-Penny Issues that Take Liquidity; MEMX Options Fee
Schedule, which assesses a standard transaction fee of $1.21 per
contract for Non-Customer Executions in Non-Penny Issues that Remove
Liquidity; and The Nasdaq Stock Market Rules, Options 7 Pricing
Schedule, which assesses a standard transaction fee of $1.25 per
contract for Non-Customer orders that remove liquidity in Non-Penny
Symbols. See also MEMX Options Fee Schedule, which assesses a
Routing Fee of $1.63 per contract for Non-Penny Orders.
\14\ Options overlying the components of the Cboe Bitcoin U.S.
ETF Index, Cboe Mini Bitcoin U.S. ETF Index (and the underlying
exchange-traded funds (``ETFs'')) are actively traded (as are the
underlying ETFs) (for example, IBIT options).
---------------------------------------------------------------------------
With respect to MBTX, the Exchange recognizes that MBTX is a Penny
class and has considered the proposed fee in circumstances when the
spread may be tight. The Exchange reviewed average bid-ask spreads for
MBTX options for April through June 2026 across a range of moneyness
and expiration buckets. The Exchange observed that in the bucket with
the narrowest spreads (0-2% out-of-the-money, same-day-to-expiration
options in May 2026), average spreads were approximately $1.40 (i.e.,
$0.40 greater than the highest proposed fee for standard transactions
in MBTX options), and spreads in all
[[Page 61497]]
other moneyness categories and expirations reviewed were notably wider.
Accordingly, the Exchange believes the proposed MBTX fee remains
appropriately calibrated relative to prevailing spreads in the product,
and does not believe the proposed fee is disproportionate to, or likely
to exceed, the bid-ask spread of MBTX options.\15\
---------------------------------------------------------------------------
\15\ The Exchange monitors market quality metrics for options
listed for trading on the Exchange (including MBTX options) on an
ongoing basis and may consider adjustments to its transaction fees
as appropriate in light of then-prevailing market conditions.
---------------------------------------------------------------------------
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 that the proposed rule changes
related to standard transaction fees for CBTX or MBTX will impose any
burden on intramarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act because the fee amounts for
each separate type of market participants will be assessed equally to
all such market participants. While different fees are assessed to
different market participants in some circumstances, the obligations
and circumstances between these market participants differ, as
discussed above.
The Exchange does not believe that the proposed rule changes will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed fees assessed apply to Exchange proprietary products, which
are traded exclusively on the Exchange. As stated above, the Exchange
notes that market participants retain the ability to migrate activity
to economically similar products available at other venues.
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 \16\ and paragraph (f) of Rule 19b-4 \17\
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.
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 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#bbc9ced7de96d8d4d6d6ded5cfc8fbc8ded895dcd4cd"><span class="__cf_email__" data-cfemail="a9dbdcc5cc84cac6c4c4ccc7dddae9daccca87cec6df">[email protected]</span></a>. Please include
file number SR-CBOE-2026-077 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-2026-077. 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-2026-077 and should be submitted on
or before October 20, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------
\18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-19863 Filed 9-28-26; 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 September 29, 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.