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

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<title>Federal Register, Volume 91 Issue 202 (Wednesday, October 21, 2026)</title>
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[Federal Register Volume 91, Number 202 (Wednesday, October 21, 2026)]
[Notices]
[Pages 66591-66596]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21480]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106680; File No. SR-CBOE-2026-080]


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

October 16, 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 8, 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 its Fees Schedule to (i) replace the fixed, premium-based 
transaction fees applicable to Customer, Clearing Trading Permit Holder 
Proprietary, Broker-Dealer (including Joint Back-Office, Non-Trading 
Permit Holder Market Maker, and Professional), and Cboe Options Market-
Maker/DPM/LMM orders executed electronically and removing liquidity in 
Mini-S&P 500 Index (``XSPBX'') binary options with a tier-based 
constant transaction fee methodology applicable to Index Binaries, as 
defined in new footnote 55, while retaining the existing per-contract 
transaction fees for Cboe Options Market-Maker/DPM/LMM liquidity-adding 
and manual orders, and (ii) add Investors Exchange LLC (``IEX'') to fee 
code RD. The text of the proposed rule change is provided in Exhibit 5.

[[Page 66592]]

    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, effective October 
1, 2026,\3\ to (1) amend the Binary Options \4\ rate table to replace 
the fixed, premium-based transaction fees currently applicable to XSPBX 
options with a tier-based constant transaction fee methodology 
applicable to Index Binaries \5\ for Customer, Clearing Trading Permit 
Holder Proprietary,\6\ Broker-Dealer \7\ (including Joint Back-Office, 
Non-Trading Permit Holder Market Maker, and Professional), and Cboe 
Options Market-Maker/DPM/LMM \8\ orders executed electronically and 
removing liquidity, while retaining the existing per-contract 
transaction fees for Cboe Options Market-Maker/DPM/LMM liquidity-adding 
and manual orders, together with new footnote 55; and (2) add IEX to 
fee code RD \9\ within the Routing Fees section of the Fees Schedule.
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    \3\ The Exchange initially filed the proposed fee change on 
October 1, 2026 (SR CBOE-2026-079). On October 8, 2026, the Exchange 
withdrew that filing and submitted this proposal.
    \4\ The term ``Binary Option'' means an option contract having 
an exercise settlement amount that is established at the creation of 
an option and only two possible payoff outcomes: either a fixed 
amount equal to the exercise payout amount or nothing at all. See 
Cboe Rule 1.1.
    \5\ The Exchange proposes to adopt new footnote 55, as described 
below, which provides that Index Binaries include XSPBX, and to 
append footnote 55 to each ``Index Binaries'' product designation in 
the proposed Rate Table--Binary Options. For purposes of the Fees 
Schedule, ``Index Binaries'' are binary index options, as defined in 
Rule 4.70, that are listed for trading on the Exchange and 
identified in footnote 55. As proposed, footnote 55 identifies only 
binary options that overlie the Mini-S&P 500 Index (``XSPBX''). The 
Exchange anticipates adding other binary index options to footnote 
55 in future amendments to the Fees Schedule as it plans to list 
binary index options on additional indexes. Each such amendment will 
be the subject of a separate rule filing submitted to the Commission 
pursuant to Section 19(b) of the Act and Rule 19b-4 thereunder.
    \6\ ``Clearing Trading Permit Holder Proprietary'' orders are 
orders for an OCC clearing member firm proprietary account (capacity 
``F'') and orders for the account of a non-Trading Permit Holder 
Affiliate of a Clearing Trading Permit Holder (capacity ``L''). See 
Cboe Rule 1.1 (definition of ``Capacity''). A ``Clearing Trading 
Permit Holder'' is a Trading Permit Holder that has been admitted to 
membership in the Clearing Corporation pursuant to the provisions of 
the Rules of the Clearing Corporation and is self-clearing or that 
clears transactions for other Trading Permit Holders. See Cboe Rule 
1.1. A ``non-Trading Permit Holder Affiliate'' is a 100% wholly 
owned affiliate or subsidiary of a Clearing Trading Permit Holder 
that is registered as a United States or foreign broker-dealer and 
that is not a Trading Permit Holder. See Fees Schedule, footnote 11.
    \7\ ``Broker-Dealer'' orders are orders for the account of a 
broker or dealer, including a Foreign Broker-Dealer (capacity 
``B''). See Rule 1.1 (definition of ``Capacity''). A ``broker-
dealer'' is a Trading Permit Holder, a non-Trading Permit Holder 
broker or dealer in securities (including a foreign broker-dealer), 
or a joint venture with a Trading Permit Holder and non-Trading 
Permit Holder participants. See Rule 1.1. Broker-Dealer transaction 
fees apply to broker-dealer orders (capacity ``B''), non-Trading 
Permit Holder market-maker orders (capacity ``N''), and certain 
orders with ``F'' or ``L'' capacity codes (i.e., orders from OCC 
numbers that are not from Cboe Options Trading Permit Holders or are 
not registered with the Exchange). See Fees Schedule, footnote 16.
    \8\ Cboe Options Market-Maker/DPM/LMM'' orders are orders for 
the account of a Market-Maker (capacity ``M''), including a 
Designated Primary Market-Maker (``DPM'') or Lead Market-Maker 
(``LMM''). See Cboe Rule 1.1 (definition of ``Capacity''). A 
``Market-Maker'' is a Trading Permit Holder registered with the 
Exchange pursuant to Rule 3.52 for the purpose of making markets in 
option contracts traded on the Exchange and that has the rights and 
responsibilities set forth in Chapter 5, Section D of the Rules. A 
``DPM'' is a TPH organization that is approved by the Exchange to 
function in appointed securities as a Market-Maker per trading 
session and is subject to the obligations under Cboe Rule 5.54 or as 
otherwise provided under the Rules. See Rules 1.1 and 3.53. An 
``LMM'' is a Market-Maker in good standing with an appointment in a 
class for which a DPM has not been appointed that the Exchange has 
designated as a Lead Market-Maker. See Rules 1.1 and 3.55.
    \9\ Fee code RD is appended to Customer orders routed to NYSE 
American LLC (``AMEX''), BOX Exchange LLC (``BOX''), Cboe EDGX 
Exchange, Inc. (``EDGX''), Miami International Securities Exchange, 
LLC (``MIAX''), MIAX Pearl, LLC (``MX2''), 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 is 
assessed a charge of $0.25 per contract.
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Index Binaries Transaction Fees
    The Fees Schedule currently includes a Rate Table--Binary Options, 
which sets forth transaction fees for XSPBX options. The current table 
assesses fixed per-contract transaction fees that vary by capacity and 
across seven premium ranges (less than $0.04; $0.04-$0.09; $0.10-$0.24; 
$0.25-$0.75; $0.76-$0.90; $0.91-$0.96; and greater than $0.96). 
Specifically, Customer orders are assessed $0.04 (fee code D1),\10\ 
$0.08 (fee code D2),\11\ $0.20 (fee code D3),\12\ and $0.30 (fee code 
D4) \13\ per contract, with the fee increasing as the premium 
approaches $0.50 and decreasing symmetrically as the premium approaches 
$0.00 or $1.00. Clearing Trading Permit Holder Proprietary and Broker-
Dealer orders (including Joint Back-Office, Non-Trading Permit Holder 
Market Maker, and Professional orders) are assessed $0.10 (fee code 
N1),\14\ $0.15 (fee code N2),\15\ $0.25 (fee code N3),\16\ and $0.35 
(fee code N4) \17\ per contract across the same premium ranges. Cboe 
Options Market-Maker/DPM/LMM orders are assessed $0.10 (fee code 
H1),\18\ $0.15 (fee code H2),\19\ $0.25 (fee

[[Page 66593]]

code H3),\20\ and $0.35 (fee code H4) \21\ per contract across the same 
premium ranges when executed electronically and taking liquidity, $0.05 
per contract (fee code HA) \22\ when executed electronically and adding 
liquidity, and $0.15 per contract (fee code HM) \23\ when executed 
manually.
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    \10\ Fee code D1 is appended to all Customer (capacity ``C'') 
orders in XSPBX with a premium price less than $0.04 or greater than 
$0.96 and assesses a fee of $0.04 per contract.
    \11\ Fee code D2 is appended to all Customer (capacity ``C'') 
orders in XSPBX with a premium price of $0.04 to $0.09 or $0.91 to 
$0.96 and assesses a fee of $0.08 per contract.
    \12\ Fee code D3 is appended to all Customer (capacity ``C'') 
orders in XSPBX with a premium price of $0.10 to $0.24 or $0.76 to 
$0.90 and assesses a fee of $0.20 per contract.
    \13\ Fee code D4 is appended to all Customer (capacity ``C'') 
orders in XSPBX with a premium price of $0.25 to $0.75 and assesses 
a fee of $0.30 per contract.
    \14\ Fee code N1 is appended to all Clearing Trading Permit 
Holder (capacity ``F''), non-Clearing Trading Permit Holder 
Affiliate (capacity ``L''), Broker-Dealer (capacity ``B''), Joint 
Back-Office (capacity ``J''), non-Trading Permit Holder Market-Maker 
(capacity ``N''), and Professional (capacity ``U'') (collectively, 
``non-Customer, non-Market-Maker'') orders in XSPBX with a premium 
price less than $0.04 or greater than $0.96 and assesses a fee of 
$0.10 per contract.
    \15\ Fee code N2 is appended to all non-Customer, non-Market-
Maker orders in XSPBX with a premium price of $0.04 to $0.09 or 
$0.91 to $0.96 and assesses a fee of $0.15 per contract.
    \16\ Fee code N3 is appended to all non-Customer, non-Market-
Maker orders in XSPBX with a premium price of $0.10 to $0.24 or 
$0.76 to $0.90 and assesses a fee of $0.25 per contract.
    \17\ Fee code N4 is appended to all non-Customer, non-Market-
Maker orders in XSPBX with a premium price of $0.25 to $0.75 and 
assesses a fee of $0.35 per contract.
    \18\ Fee code H1 is appended to all electronic Cboe Options 
Market-Maker/Designated Primary Market-Maker (``DPM'')/Lead Market-
Maker (``LMM'') (collectively, ``Market-Maker'') (capacity ``M'') 
orders in XSPBX taking liquidity with a premium price less than 
$0.04 or greater than $0.96 and assesses a fee of $0.10 per 
contract.
    \19\ Fee code H2 is appended to all electronic Market-Maker 
(capacity ``M'') orders in XSPBX taking liquidity with a premium 
price of $0.04 to $0.09 or $0.91 to $0.96 and assesses a fee of 
$0.15 per contract.
    \20\ Fee code H3 is appended to all electronic Market-Maker 
(capacity ``M'') orders in XSPBX taking liquidity with a premium 
price of $0.10 to $0.24 or $0.76 to $0.90 and assesses a fee of 
$0.25 per contract.
    \21\ Fee code H4 is appended to all electronic Market-Maker 
(capacity ``M'') orders in XSPBX taking liquidity with a premium 
price of $0.25 to $0.75 and assesses a fee of $0.35 per contract.
    \22\ Fee code HA is appended to all Market-Maker (capacity 
``M'') orders in XSPBX that add liquidity and that are executed 
electronically, and assesses a fee of $0.05 per contract.
    \23\ Fee code HM is appended to all Market-Maker (capacity 
``M'') orders in XSPBX that are executed manually (i.e., open 
outcry) and assesses a fee of $0.15 per contract.
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    The Exchange proposes to amend the Rate Table--Binary Options to 
replace the fixed, premium-based transaction fees currently applicable 
to XSPBX options with a tier-based constant transaction fee methodology 
applicable to ``Index Binaries,'' under which transaction fees for 
Customer, Clearing Trading Permit Holder Proprietary, Broker-Dealer 
(including Joint Back-Office, Non-Trading Permit Holder Market Maker, 
and Professional), and Cboe Options Market-Maker/DPM/LMM orders 
executed electronically and removing liquidity, will be calculated 
using the following formula:

Transaction Fee = ((k*p*(1-p)*c)*m)

where k is the tier-based constant for the applicable capacity; p is 
the contract price ($0.01-$1.00); c is the number of contracts traded; 
and m is the contract multiplier (i.e., 100). The proposed tier-based 
constants (k) are as follows:
    <bullet> Customer (capacity code C): 1.2% (fee code HC);
    <bullet> Clearing Trading Permit Holder Proprietary, Broker-Dealer, 
Joint Back-Office, Non-Trading Permit Holder Market Maker, and 
Professional (capacity codes F, L, B, N, U, and J): 1.4% (fee code HD); 
and
    <bullet> Cboe Options Market-Maker/DPM/LMM (capacity code M), 
Electronic, Removing Liquidity: 1.4% (fee code HB).
    Cboe Options Market-Maker/DPM/LMM orders executed electronically 
and adding liquidity and executed manually will continue to be assessed 
flat per-contract transaction fees of $0.05 (fee code HA) and $0.15 
(fee code HM), respectively, which are unchanged from the current fees. 
The Exchange believes it is reasonable to continue to assess these 
orders flat per-contract fees rather than fees under the proposed 
price-based methodology because Market-Makers, DPMs, and LMMs, unlike 
other market participants, are subject to continuous quoting and other 
obligations under the Exchange's Rules that require them to provide 
liquidity across the full range of contract prices, including in 
contracts priced near $0.50, where the proposed methodology would 
otherwise result in the highest fees. A flat, low per-contract fee for 
liquidity-adding electronic executions and manual executions provides 
Market-Makers, DPMs, and LMMs with fee certainty that does not vary 
with the price at which they are obligated to quote, which the Exchange 
believes encourages them to continue to provide tighter and deeper 
markets in Index Binaries, to the benefit of all market participants. 
Market-Maker/DPM/LMM electronic orders that remove liquidity do not 
further these obligations in the same manner and will therefore be 
subject to the proposed methodology (fee code HB), consistent with 
other non-Customer capacities. Maintaining the current flat fees for 
liquidity-adding and manual Market-Maker/DPM/LMM executions also avoids 
any fee increase for these participants as a result of the proposed 
change. The Exchange also proposes to adopt new footnote 55, which 
provides that ``Index Binaries include XSPBX,'' and to append footnote 
55 to each ``Index Binaries'' product designation in the new rate 
table. XSPBX will therefore continue to be the only binary option 
subject to the rate table following the proposed change.
    Under the proposed methodology, the transaction fee for an Index 
Binary is a function of p*(1-p), which is greatest when the contract 
price is $0.50 and declines symmetrically as the contract price 
approaches $0.00 or $1.00. The proposed methodology therefore preserves 
the general shape of the current premium-range fee structure, under 
which the highest fees apply to contracts priced near $0.50 and the 
lowest fees apply to contracts priced near $0.00 or $1.00, while 
replacing seven discrete premium ranges with a continuous calculation 
based on the actual contract price. The proposed constants are 
calibrated so that the maximum per-contract fee for each capacity is 
unchanged. For example, a Customer executing one contract at a price of 
$0.50 would be assessed ((0.012 x 0.50 x 0.50 x 1) x 100) = $0.30, 
which is identical to the current $0.30 fee applicable to Customer 
orders priced between $0.25 and $0.75 (fee code D4). Similarly, a 
Clearing Trading Permit Holder Proprietary order executing one contract 
at $0.50 would be assessed ((0.014 x 0.50 x 0.50 x 1) x 100) = $0.35, 
identical to the current $0.35 fee applicable to such orders priced 
between $0.25 and $0.75 (fee code N4). At other contract prices, the 
fee under the proposed methodology will generally be lower than the fee 
currently assessed for the applicable premium range. For example, a 
Customer order executing one contract at $0.25 would be assessed $0.225 
rather than $0.30; at $0.10, $0.108 rather than $0.20; and at $0.02, 
approximately $0.024 rather than $0.04. A Clearing Trading Permit 
Holder Proprietary order executing one contract at $0.25 would be 
assessed approximately $0.26 rather than $0.35; at $0.10, $0.126 rather 
than $0.25; and at $0.02, approximately $0.027 rather than $0.10. 
Because the proposed fee is calculated continuously rather than by 
premium range, the fee for contracts priced at the upper end of a 
current premium range may be modestly higher than the current fixed fee 
for that range (e.g., a Customer order executing one contract at $0.24 
would be assessed approximately $0.219 rather than $0.20), but will 
never exceed the current maximum per-contract fee for the applicable 
capacity.
    The following examples illustrate the per-contract transaction fee 
that would be assessed under the proposed methodology for a single 
contract (i.e., c = 1 and m = 100) at various contract prices, by 
capacity:

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                                                                                   Clearing TPH proprietary, broker-
                         Contract price                            Customer (k =       dealer, JBO, Non-TPH MM,         Cboe Options Market- Maker/DPM/
                                                                       1.2%)            Professional (k = 1.4%)        LMM electronic remove (k = 1.4%)
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$0.01...........................................................        $0.01188                            $0.01386                            $0.01386
0.05............................................................         0.05700                             0.06650                             0.06650
0.10............................................................         0.10800                             0.12600                             0.12600
0.25............................................................         0.22500                             0.26250                             0.26250

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0.50............................................................         0.30000                             0.35000                             0.35000
0.75............................................................         0.22500                             0.26250                             0.26250
0.90............................................................         0.10800                             0.12600                             0.12600
0.99............................................................         0.01188                             0.01386                             0.01386
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    At each contract price, Cboe Options Market-Maker/DPM/LMM orders 
executed electronically and adding liquidity would continue to be 
assessed $0.05 per contract (fee code HA), and Cboe Options Market-
Maker/DPM/LMM orders executed manually would continue to be assessed 
$0.15 per contract (fee code HM). Because the transaction fee is 
calculated on a per-contract basis, the total fee for an execution of 
multiple contracts equals the applicable per-contract fee multiplied by 
the number of contracts traded. For example, a Customer order executing 
ten contracts at a contract price of $0.25 would be assessed ((0.012 x 
0.25 x 0.75 x 10) x 100) = $2.25.
    The Exchange believes that the proposed methodology will simplify 
and add transparency to binary option pricing on the Exchange by 
applying a single, objective calculation based on the contract price in 
place of multiple premium ranges, and will more closely align the 
transaction fee with the price of the contract at the time of 
execution. Additionally, by applying the new rate table to Index 
Binaries as a category, as defined in new footnote 55, the Exchange 
will be able to apply a consistent fee methodology across index binary 
options. Any future addition of a product to the definition of Index 
Binaries in footnote 55 would be the subject of a separate rule filing.
Addition of IEX 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 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 AMEX, BOX, EDGX, MIAX, MX2, SPHR, or 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.
    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.
    The Exchange proposes to amend fee code RD to add applicable 
Customer orders routed to IEX, a national securities exchange that is 
launching an options market on October 2, 2026. As proposed, the 
description of fee code RD would read: ``Routed to AMEX, BOX, EDGX, 
IEX, MIAX, MX2, SPHR, PHLX (excluding SPY), ETF, Equity.'' 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, i.e., 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.\24\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \25\ 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,\26\ 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.
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    \24\ 15 U.S.C. 78f(b).
    \25\ 15 U.S.C. 78f(b)(5).
    \26\ 15 U.S.C. 78f(b)(4).
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    As a general matter, the Exchange operates in a highly competitive 
market. The Securities and Exchange Commission (the ``Commission'')has 
repeatedly expressed its preference for competition over regulatory 
intervention in determining prices, products, and services in the 
securities markets. 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.'' \27\ 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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    \27\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496, 37499 (June 29, 2005).
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    Index Binaries Transaction Fees. The Exchange believes the proposed 
tier-

[[Page 66595]]

based constant fee methodology for Index Binaries is reasonable. The 
proposed constants are calibrated so that the maximum per-contract fee 
for each capacity ($0.30 for Customer orders and $0.35 for Clearing 
Trading Permit Holder Proprietary, Broker-Dealer (including Joint Back-
Office, Non-Trading Permit Holder Market Maker, and Professional), and 
Cboe Options Market-Maker/DPM/LMM orders, other than Cboe Options 
Market-Maker/DPM/LMM orders adding liquidity or executed manually) is 
unchanged from the maximum fee under the current premium-range 
structure. At most contract prices, the proposed methodology will 
result in fees that are lower than those currently assessed for the 
applicable premium range, and while fees for contracts priced at the 
upper end of certain current premium ranges may be modestly higher, 
they will not exceed the current maximum fee for the applicable 
capacity. The proposed methodology is also reasonable because it bases 
the transaction fee on an objective, transparent calculation using the 
actual contract price, the number of contracts, and the contract 
multiplier, which more closely aligns the fee with the price of the 
contract at execution than a fixed fee applicable across a broad 
premium range. The Exchange believes it is reasonable to continue to 
assess Cboe Options Market-Maker/DPM/LMM orders executed electronically 
and adding liquidity, and Cboe Options Market-Maker/DPM/LMM orders 
executed manually, the existing flat fees of $0.05 and $0.15 per 
contract, respectively, which are unchanged. Market-Makers, DPMs, and 
LMMs are subject to continuous quoting and other obligations under the 
Exchange's Rules that other market participants are not, and those 
obligations require them to provide liquidity across the full range of 
contract prices, including in contracts priced near $0.50, where the 
proposed methodology would otherwise assess the highest fees. A flat, 
low per-contract fee gives these participants fee certainty that does 
not vary with the price at which they are obligated to quote, which the 
Exchange believes encourages them to continue to provide tighter and 
deeper markets in Index Binaries, to the benefit of all market 
participants. Market-Maker/DPM/LMM electronic orders that remove 
liquidity do not further these obligations in the same manner and are 
therefore subject to the proposed methodology, consistent with other 
non-Customer capacities. Retaining the current flat fees also ensures 
that Market-Makers, DPMs, and LMMs will not experience a fee increase 
as a result of the proposed change. The Exchange believes it is 
reasonable to adopt footnote 55 to define Index Binaries, as it makes 
clear the products to which the new rate table applies and currently 
includes only XSPBX, the product to which the current rate table 
applies.
    The Exchange believes the proposed methodology is equitable and not 
unfairly discriminatory because the same formula and the same tier-
based constant will apply to all market participants within each 
applicable capacity. The Exchange believes it is equitable and not 
unfairly discriminatory to apply a lower constant to Customer orders 
(1.2%) than to Clearing Trading Permit Holder Proprietary, Broker-
Dealer (including Joint Back-Office, Non-Trading Permit Holder Market 
Maker, and Professional), and Cboe Options Market-Maker/DPM/LMM orders 
(1.4%), which is consistent with the current structure, under which 
Customer orders are generally assessed lower fees than other capacities 
in each premium range,\28\ and with the longstanding practice of the 
Exchange and other options exchanges of assessing lower fees to 
Customer orders, which enhance liquidity for the benefit of all market 
participants. The Exchange believes it is equitable and not unfairly 
discriminatory to apply the same 1.4% constant to Clearing Trading 
Permit Holder Proprietary, Broker-Dealer, Joint Back-Office, Non-
Trading Permit Holder Market Maker, and Professional orders, and to 
Cboe Options Market-Maker/DPM/LMM orders executed electronically and 
removing liquidity, because each of these capacities is currently 
assessed identical fees in each premium range (fee codes N1 through N4 
and H1 through H4, respectively), and the proposed change preserves 
that parity. The Exchange believes it remains equitable and not 
unfairly discriminatory to assess lower flat fees to Cboe Options 
Market-Maker/DPM/LMM orders executed electronically and adding 
liquidity, as is the case today, in light of the value that Cboe 
Options Market-Maker/DPM/LMM liquidity provides to the market and the 
obligations to which Cboe Options Market-Makers/DPMs/LMMs are subject 
that other market participants are not.
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    \28\ This is generally the case today, other than in the premium 
range below $0.04, in which Customer orders are not currently 
assessed lower fees than other capacities.
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    Addition of IEX to Fee Code RD. The Exchange believes the proposed 
change to add IEX 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 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 applicable 
Customer orders routed to IEX will automatically yield fee code RD and 
uniformly be assessed the corresponding fee. The Exchange notes that 
routing through the Exchange is voluntary, and market participants may 
choose to route orders to IEX directly or through other means.

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 will impose any burden on intramarket 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. The proposed tier-based constant fee methodology 
for Index Binaries will apply the same formula and the same constant to 
all market participants within each applicable capacity, and maintains 
the relative relationships among capacities that exist under the 
current premium-range structure. The proposed addition of IEX to fee 
code RD will apply automatically and uniformly to all Trading Permit 
Holders' applicable Customer orders routed to IEX, which will be 
assessed the same $0.25 per contract charge that applies to orders 
routed to other exchanges within fee code RD. To the extent Customer 
orders continue to be assessed lower fees than non-Customer orders, and 
Market-Maker orders adding liquidity in Index Binaries continue to be 
assessed lower flat fees, the Exchange believes such differentiation is 
consistent with longstanding industry practice and reflects the value 
that Customer order flow and Market-Maker liquidity provide to the 
market.
    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. As previously discussed, the 
Exchange operates in a highly competitive market in which market 
participants can

[[Page 66596]]

readily direct order flow to competing venues, including 17 other 
options exchanges and off-exchange venues, if they deem fee levels at a 
particular venue to be excessive or incentives to be insufficient. With 
respect to the proposed changes to the Index Binaries transaction fees, 
the Exchange notes that Index Binaries, which currently include only 
XSPBX, are proprietary products exclusively listed on the Exchange. 
Because Index Binaries are not listed or traded on any other exchange, 
the proposed changes to the Index Binaries transaction fees do not 
implicate intermarket competition. With respect to the addition of IEX 
to fee code RD, routing through the Exchange is optional, and the 
charge assessed under fee code RD is unchanged. The Exchange notes that 
its market share in the options market is subject to competition, and 
that, in such an environment, the Exchange must continually adjust its 
fees to remain competitive with other exchanges and to attract order 
flow. Moreover, the Commission has recognized that competition for 
order flow among exchanges is robust. In NetCoalition v. SEC, the D.C. 
Circuit stated that ``[n]o one disputes that competition for order flow 
is `fierce,''' and that, ``[a]s 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' . . . .'' \29\ 
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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    \29\ 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 \30\ and paragraph (f) of Rule 19b-4 \31\ 
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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    \30\ 15 U.S.C. 78s(b)(3)(A).
    \31\ 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#fa888f969fd7999597979f948e89ba899f99d49d958c"><span class="__cf_email__" data-cfemail="384a4d545d155b5755555d564c4b784b5d5b165f574e">[email&#160;protected]</span></a>. Please include 
file number SR-CBOE-2026-080 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-2026-080. 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-2026-080 and should be submitted on or 
before November 12, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\32\
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    \32\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-21480 Filed 10-20-26; 8:45 am]
BILLING CODE 8011-01-P


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