Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Remove the Silexx Fees From Its Fee Schedule in Accordance With SEC Exemptive Relief

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<title>Federal Register, Volume 91 Issue 208 (Thursday, October 29, 2026)</title>
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[Federal Register Volume 91, Number 208 (Thursday, October 29, 2026)]
[Notices]
[Pages 68205-68207]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22029]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106739; File No. SR-CBOE-2026-082]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Remove 
the Silexx Fees From Its Fee Schedule in Accordance With SEC Exemptive 
Relief

October 26, 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 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.
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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. (``Cboe'' or the ``Exchange'') is filing with 
the Securities and Exchange Commission (``Commission'' or ``SEC'') a 
proposed rule change to remove the Silexx fees from its Fee Schedule in 
accordance with SEC exemptive relief issued on May 1, 2026. 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 remove the Silexx Fee Schedule in its 
entirety pursuant to exemptive relief granted from the Commission.\3\
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    \3\ See Securities Exchange Act Release No. 105351 (May 1, 
2026), 91 FR 24631 (May 6, 2026) (Order Granting Conditional 
Exemptive Relief Pursuant to Section 36(a)(1) of the Securities 
Exchange Act of 1934 from Rule Filing Requirements under Section 
19(b) of the Exchange Act and Requirements under Section 6(b) of the 
Exchange Act for Order and Execution Management Systems).
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    By way of background, the Exchange's affiliate, Cboe Silexx, LLC, 
offers Silexx (an order entry management system or ``OEMS''). Silexx is 
deemed a ``facility'' of the Exchange as that term is defined in 
Section 3(a)(2) of the Exchange Act.\4\ Silexx allows authorized Users 
with direct access to the Exchange to establish connectivity and submit 
orders directly to the Exchange. Silexx Users may also send orders to 
other exchanges and are not required to send orders to the Exchange in 
order to use Silexx. Furthermore, TPHs are not required to use Silexx 
in order to access the Exchange; TPHs may also use an OEMS supported by 
a third-party to enter and route orders for execution to the Exchange 
and manage such executions.
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    \4\ See Securities Exchange Act Release No. 101491 (Oct. 31, 
2024), 89 FR 88080 (Nov. 6, 2024). Section 3(a)(2) of the Exchange 
Act states: The term ``facility'' when used with respect to an 
exchange includes its premises, tangible or intangible property 
whether on the property or not, any right to use of such premises or 
property or any service thereof for the purpose of effecting or 
reporting a transaction on an exchange (including, among other 
things, any system of communication to or from the exchange, by 
ticker or otherwise, maintained by or with the consent of the 
exchange), and any right of the exchange to the use of any property 
or service. 15 U.S.C. 78c(a)(2).
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    As a facility of the Exchange, Silexx must satisfy the regulatory 
requirements applicable to a national securities exchange, including 
certain rule filing requirements under Section 19(b) and the 
requirements under Section 6(b) of the Exchange Act.\5\ In compliance 
with these requirements, the Exchange has filed numerous proposed rule 
changes on behalf of Silexx.\6\ On May 1, 2026, the Securities and 
Exchange Commission (the ``Commission'' or the ``SEC'') granted 
conditional exemptive relief pursuant to its authority under Section 
36(a)(1) of the Exchange Act \7\ to the Exchange for Exchange-
Affiliated OEMSs (including Silexx) from the rule filing requirements 
under Section 19(b) of the Exchange Act and the requirements under 
Section 6(b) of the Exchange Act (the ``Exemptive Relief'').\8\ 
Meaning, that so long as the Exchange meets the conditions set out in 
the Exemptive Relief with respect to an Exchange-Affiliated OEMS, 
including Silexx, the Exchange (i) need not abide by the rule filing 
requirements under the Exemptive Relief pursuant to Section 19(b) and 
(ii) is not required to operate in accordance with Section 6(b) of the 
Exchange Act with respect to that Exchange-Affiliated OEMS, such as the 
requirement that fees are not unfairly discriminatory (under 6(b)(4)) 
or that fees do not impose an undue burden on competition (under 
6(b)(8)).
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    \5\ 15 U.S.C. 78s(b) and 78f(b).
    \6\ See, e.g., Securities Exchange Act Release Nos. 83266 (May 
14, 2018), 83 FR 23310 (May 18, 2018) (SR-CBOE-2018-035); 87028 
(Sept. 19, 2019), 84 FR 50529 (Sept. 25, 2019) (SR-CBOE-2025-061); 
89285 (July 10, 2020), 85 FR 43284 (July 16, 2020) (SR-CBOE-2020-
062); 90929 (Jan. 14, 2021), 86 FR 6705 (Jan. 22, 2021) (SR-CBOE-
2021-002); 99111 (Dec. 7, 2023), 88 FR 86411 (Dec. 13, 2023)(SR-
CBOE-2023-064).
    \7\ 15 U.S.C. 78mm(a)(1).
    \8\ 15 U.S.C. 78s(b) and 78f(b).
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    In particular, the Exemptive Relief specifies that the following 
conditions must be met with respect to an Exchange-Affiliated OEMS, 
including Silexx, in order for the Exchange to benefit from this 
relief:
    (i) The use of the Exchange-Affiliated OEMS is voluntary (i.e., 
solely within the discretion of an Exchange member or other user of the 
OEMS) and not required for an Exchange member to access the Exchange.
    (ii) There will be no differences between how third-party and 
Exchange-Affiliated OEMSs may connect to the Exchange.
    (iii) The Exchange-Affiliated OEMS (or the entity that owns the 
Exchange-Affiliated OEMS) is not a registered broker-dealer.
    (iv) For any order ultimately routed to the Exchange via an 
Exchange-Affiliated OEMS, the users of such OEMS and their brokers are 
solely responsible for routing decisions (i.e., the Exchange is not 
involved in such routing decisions). All orders received by the 
Exchange from a third-party or Exchange-Affiliated OEMS shall be 
processed by the Exchange in the same manner and pursuant to the 
Exchange's rules.
    (v) Any fees charged by the Exchange-Affiliated OEMS to a user 
thereof must not take into consideration any of that user's Exchange 
activity or Exchange fees set forth on the Exchange's fee schedule.
    (vi) Users of third-party OEMSs and Exchange-Affiliated OEMSs will 
have use of the Exchange facilities and services (e.g., Exchange market 
data) in the same manner pursuant to the same terms, conditions, and 
fees as set forth

[[Page 68206]]

in the Exchange's Rules, technical specifications, and Fees Schedule.
    (vii) The Exchange has established and maintains procedures and 
internal controls reasonably designed to prevent the Exchange-
Affiliated OEMS from receiving any advantage or benefit as a result of 
its affiliation/relationship with the Exchange, including the provision 
of Exchange information to the entity or personnel operating the 
Exchange-Affiliated OEMS regarding updates to the Exchange trading 
system (such as technical specifications) until such information is 
available generally to similarly situated market participants.
    Importantly, in compliance with the terms of the Exemptive Relief, 
the Exchange has established and maintains procedures and internal 
controls reasonably designed to ensure compliance with the terms of the 
Exemptive Relief. Based on the Exemptive Relief, with respect to 
Exchange-Affiliated OEMSs, including Silexx, the Exchange is no longer 
required to undergo the rule filing process and is not required to 
operate in accordance with Section 6(b) obligations which, among other 
items, requires that fees are not unfairly discriminatory and, as such, 
the Exchange may consider having different pricing for its customers.
    Accordingly, the Exchange proposes to remove the Silexx Fee 
Schedule in its entirety. Going forward, fees will be established as 
part of a contract, as opposed to residing within the Exchange's Fee 
Schedule. To avoid confusion between having pricing within a customer's 
contract and potentially differing prices within the Silexx Fee 
Schedule, the Exchange proposes to remove this Fee Schedule from its 
website and notes that these fees are no longer applicable--instead, 
customers will be bound by the fees within their contracts.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange. Specifically, the Exchange believes the proposed rule change 
is consistent with the Exemptive Relief granted by the Commission with 
respect to Exchange-Affiliated OEMSs, including Silexx. The purpose of 
this filing is to implement the Exemptive Relief. With respect to 
Exchange-Affiliated OEMSs, including Silexx, the Exchange is not 
required to comply with Section 6(b) obligations, such as the Section 
6(b)(5) \9\ requirement that the rules of an exchange not be designed 
to permit unfair discrimination between customers, issuers, brokers, or 
dealers, as well as Section 6(b)(4) \10\ as it is designed to provide 
for the equitable allocation of reasonable dues, fees, and other 
charges among its Members and other persons using its facilities.
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    \9\ Id.
    \10\ 15 U.S.C. 78f(b)(4).
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    By removing Silexx fees from its Fee Schedule, the Exchange 
provides clarity for Silexx Users as they will be bound by the pricing 
within their contract, as opposed to an online fee schedule. As such, 
removing potentially conflicting fees prevents confusion between stale 
online fees and fees within a contract. This is consistent with the 
Exemptive Relief, which permits fees charged by an Exchange-Affiliated 
OEMS to be competitively established and to vary among users of such 
Exchange-Affiliated OEMS.
    While the Exchange may consider charging Silexx Users different 
fees, this is in compliance with its Exemptive Relief. In the Exemptive 
Relief, the Commission explicitly notes that, ``fees charged by an 
Exchange-Affiliated OEMS may be competitively established and may vary 
among users of such Exchange-Affiliated OEMS.'' \11\ While pricing may 
vary between Silexx Users, this is permitted under the Exemptive Relief 
received.
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    \11\ See supra note 3.
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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 rule change will impose any burden on intramarket 
and intermarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The purpose of this filing is 
to implement the Exemptive Relief with respect to Exchange-Affiliated 
OEMSs, including Silexx. The Exchange's removal of the Silexx fees from 
the Silexx Fee Schedule is consistent with the Exemptive Relief granted 
by the Commission, which permits fees charged by an Exchange-Affiliated 
OEMS to be established competitively and vary among users.

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 \12\ and paragraph (f) of Rule 19b-4 \13\ 
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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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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#1062657c753d737f7d7d757e6463506375733e777f66"><span class="__cf_email__" data-cfemail="582a2d343d753b3735353d362c2b182b3d3b763f372e">[email&#160;protected]</span></a>. Please include 
file number SR-CBOE-2026-082 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-2026-082. 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-2026-082 and should be submitted on 
or before November 19, 2026.


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    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-22029 Filed 10-28-26; 8:45 am]
BILLING CODE 8011-01-P


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