Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule To Add IEX Exchange, Inc. (“IEX”) to Fee Code RP

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<title>Federal Register, Volume 91 Issue 196 (Tuesday, October 13, 2026)</title>
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[Federal Register Volume 91, Number 196 (Tuesday, October 13, 2026)]
[Notices]
[Pages 64970-64971]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20802]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106627; File No. SR-CboeBZX-2026-083]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Its Fees Schedule To Add IEX Exchange, Inc. (``IEX'') to Fee Code RP

October 7, 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 October 1, 2026, Cboe BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') 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 BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') proposes to 
amend its Fees Schedule to add IEX Exchange, Inc. (``IEX'') to fee code 
RP. 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 Fees Schedule applicable to its 
options platform (``BZX Options''), effective October 1, 2026, to add 
IEX to fee code RP.\3\ 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.
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    \3\ Fee code RP is appended to Customer orders that are routed 
to and executed at to NYSE American (``AMEX''), BOX Options Exchange 
(``BOX''), Cboe Exchange, Inc. (``Cboe''), Cboe EDGX Exchange, Inc. 
(``EDGX''), MX2 LLC, (``MX2'') MIAX Options Exchange (``MIAX''), 
MIAX Sapphire, LLC (``SPHR''), or Nasdaq PHLX LLC (``PHLX'') 
(excluding orders in SPY options routed to PHLX), and is assessed a 
charge of $0.25 per contract.
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Addition of IEX to Fee Code RP
    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 \4\ 
orders routed to other options exchanges. Currently, under the Fee 
Codes and Associated Fees section of the Fee Schedule, fee code RP is 
appended to routed Customer orders to AMEX, BOX, Cboe, EDGX, MX2, MIAX, 
SPHR, or PHLX (excluding orders in SPY options routed to PHLX) and 
assesses a charge of $0.25 per contract.
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    \4\ ``Customer'' applies to any order for the account of a 
Priority Customer.
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    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.\5\
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    \5\ See e.g., 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>.
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    The Exchange proposes to amend fee code RP to add applicable 
Customer orders routed to IEX, a national securities exchange. The 
charge assessed per contract for fee code RP 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.
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.\6\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \7\ 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,\8\ which requires that Exchange rules provide for the equitable 
allocation of reasonable dues, fees, and

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other charges among its Members and other persons using its facilities.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes the proposed change to add IEX to fee code RP 
is reasonable because the charge assessed per contract for fee code RP 
remains the same, and the change is designed to assess routing fees for 
Customer orders routed to IEX 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 Members' Customer orders in non-penny (and, 
as applicable, penny) classes routed to IEX will automatically yield 
fee code RP and uniformly be assessed the corresponding fee.

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 change will impose any burden on intramarket 
competition. The proposed change to add IEX to fee code RP will apply 
automatically and uniformly to all Members' applicable Customer orders 
routed to IEX, which will be assessed the same $0.25 per contract 
charge that applies to other exchanges within fee code RP.
    The Exchange does not believe the proposed change will impose any 
burden on intermarket competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. 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. The proposed change is designed to allow the Exchange to 
recover its Routing Costs and to assess routing fees in a manner 
comparable to at least one other options exchange, thereby furthering 
the Commission's goal in adopting Regulation NMS of fostering 
competition among orders. Members 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 \9\ and paragraph (f) of Rule 19b-4 \10\ 
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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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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#e99b9c858cc48a8684848c879d9aa99a8c8ac78e869f"><span class="__cf_email__" data-cfemail="7d0f081118501e1210101813090e3d0e181e531a120b">[email&#160;protected]</span></a>. Please include 
file number SR-CboeBZX-2026-083 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-2026-083. 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-2026-083 and should be submitted 
on or before November 3, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-20802 Filed 10-9-26; 8:45 am]
BILLING CODE 8011-01-P


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