Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Definition of Clearing Corporation in its Rules and Make Corresponding Changes Throughout its Rules

Issuing agencies

Full Text

<html>
<head>
<title>Federal Register, Volume 91 Issue 215 (Monday, November 9, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 215 (Monday, November 9, 2026)]
[Notices]
[Pages 70928-70931]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22751]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106809; File No. SR-CBOE-2026-084]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
the Definition of Clearing Corporation in its Rules and Make 
Corresponding Changes Throughout its Rules

November 4, 2026.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on October 23, 2026, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe 
Options'') filed with the Securities and Exchange Commission (``SEC'' 
or ``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes 
to amend the definition of Clearing Corporation in its Rules and make 
corresponding changes throughout its Rules, as well as update Rule 5.2 
regarding units of trading. 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.

[[Page 70929]]

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 the definition of Clearing 
Corporation in its Rules and make corresponding changes throughout its 
Rules, as well as update Rule 5.2 regarding units of trading. For 
background, Rule 1.1 currently defines the ``Clearing Corporation and 
OCC'' as The Options Clearing Corporation. Prior to October 22, OCC was 
the only clearing corporation registered under Section 17A of the 
Securities and Exchange Act to clear options listed on a national 
securities exchange.\3\ However, the Securities and Exchange Commission 
(the ``Commission'') recently approved an application of Cboe Clear US, 
LLC (``CCUS'') seeking temporary registration as a clearing agency 
under Section 17A of the Act.\4\ Further, it is possible additional 
entities could register as a clearing agency under the Act to clear 
listed options. As indicated in a separate Exchange rule filing the 
Commission recently approved,\5\ the Exchange intends to clear certain 
options through CCUS. This proposed rule change would accommodate the 
clearing of options listed for trading on the Exchange and cleared by 
either OCC or CCUS (or any other clearing agencies that become 
registered under Section 17A of the Act).
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78q-1.
    \4\ See Securities Exchange Act Release No. 106723 (October 22, 
2026) (Order Granting an Application, as Amended, for Temporary 
Registration as a Clearing Agency under Section 17A of the 
Securities Exchange Act of 1934).
    \5\ See Securities Exchange Act Release No. 106659 (October 13, 
2026), 91 FR 65854 (October 16, 2026) (SR-CBOE-2026-061).
---------------------------------------------------------------------------

    The proposed rule change amends the definition of Clearing 
Corporation in Rule 1.1 to mean the clearing agency registered to clear 
listed options under Section 17A of the Act that is the issuer of and 
clearing agency for the applicable option or at which a Clearing 
Trading Permit Holder \6\ is a clearing member. The proposed rule 
change separately defines OCC as The Options Clearing Corporation, as 
the Exchange retains certain references to OCC with respect to certain 
options that will continue to be issued and cleared by OCC. 
Additionally, the proposed Rule change amends the definition of Rules 
of the Clearing Corporation in Rule 1.1 to mean the governing documents 
and rules of the Clearing Corporation, and all written interpretations 
thereof, as they may be in effect from time to time; in other words, 
the rules of the Clearing Corporation will refer to the governing 
documents and rules of the applicable registered clearing agency. The 
proposed rule change amends various other rule provisions to refer to 
the Clearing Corporation rather than OCC and to otherwise modify those 
provisions so they contemplate multiple registered clearing agencies 
(e.g., add that a reference to Clearing Corporation means the 
``applicable'' Clearing Corporation or the Clearing Corporation ``that 
is the issuer of the applicable options'').\7\ Pursuant to the proposed 
definition of Clearing Corporation, these Rules, as well as current 
Rules that reference Clearing Corporation, will refer to the applicable 
registered clearing agency in the context of the Rule rather than OCC.
---------------------------------------------------------------------------

    \6\ A Clearing Trading Permit Holder is a Trading Permit Holder 
(as defined in the Exchange's Bylaws) (``TPH'') 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 Rule 1.1. Pursuant to the proposed rule change, a 
Clearing TPH is a TPH admitted to membership in any registered 
clearing agency and could clear transactions in options issued and 
cleared by that registered clearing agency. The proposed rule change 
makes minor updates to the definition of Clearing TPH in Rule 1.1 to 
account for the possibility of multiple registration clearing 
agencies that clear options listed on the Exchange.
    \7\ See Rules 1.1 (definitions of Capacity and Rules of the 
Clearing Corporation), 3.61(a) and (d), 4.5, Interpretation and 
Policy .04, 4.6, 5.2 (the Exchange notes there are certain instances 
in which the Exchange may establish the unit of trading for an 
option rather than the applicable Clearing Corporation, as set forth 
in the Exchange and Clearing Corporation Rules), 5.10, 5.11, 
5.53(a)(2) (the proposed rule change also makes nonsubstantive 
changes to this provision to provide that Market-Makers must comply 
with ``applicable'' Rules of the Exchange and adds the phrase 
``rules of'' before ``the Federal Reserve Board,'' in addition 
streamlining the provision by replacing ``as well as the'' with a 
comma), 5.65 (which leaves the reference to OCC but adds that an 
exchange may clear options through any other Clearing Corporation to 
account for the possibility that options trading on a national 
securities exchange that would be subject to linkage rules may clear 
through a registered clearing agency other than OCC), 6.3, 6.4 
(modifying the name of the Rule), 8.30, Interpretation and Policy 
.04(a)(9) (which also makes the term ``national securities 
exchange'' lower-cased since it is not a defined term), 10.3(a)(9) 
and Interpretations and Policies .03 and .06
---------------------------------------------------------------------------

    The proposed rule change similarly amends Rule 3.61 regarding 
letters of guarantee and authorization to account for the existence of 
multiple registered clearing agencies that clear options listed on the 
Exchange and Clearing TPHs being Clearing Members of more than one of 
such clearing agencies. First, subparagraph (a)(4) currently provides 
if the Clearing Corporation restricts the activities of a Clearing TPH 
or suspends a Clearing TPH as a Clearing Member of the Clearing 
Corporation, the Exchange may take action as necessary to give effect 
to the restriction or suspension. For example, if the Clearing 
Corporation restricts transactions cleared by a clearing Trading Permit 
Holder that is a Clearing Member of that Clearing Corporation to 
``closing only'' transactions, the Exchange may similarly restrict 
transactions on the Exchange for clearance by that Clearing TPH as a 
Clearing Member of the Clearing Corporation to ``closing only'' 
transactions. Similarly, if the Clearing Corporation suspends a 
Clearing TPH, the Exchange may prevent access and connectivity to the 
Exchange by the suspended Clearing TPH. The proposed rule change amends 
this provision so actions the Exchange may take against a Clearing TPH 
pursuant to this provision are in response to actions taken by the 
specific Clearing Corporation that took action against the Clearing 
TPH. While the proposed rule change provides that the Exchange may 
restrict transactions to closing only in options a Clearing Corporation 
issues if that Clearing Corporation similarly restricts that Clearing 
TPH, the proposed rule change does not prevent the Exchange from 
exercising its authority to impose restrictions on a Clearing TPH 
provided by other Rules. Further, if the Exchange prevents access and 
connectivity to the Exchange by a Clearing TPH that is suspended by one 
Clearing Corporation, that Clearing TPH will not be able to access and 
connect to the Exchange to participate in transactions in options 
issued by another Clearing Corporation. If a CTPH is suspended as a 
Clearing Member by one Clearing Corporation in accordance with rules of 
that Clearing Corporation, the Exchange believes such action by that 
Clearing Corporation makes it appropriate for the Exchange to prevent 
access to the Exchange in all options, even if another Clearing 
Corporation does not take similar action against that CTPH.

[[Page 70930]]

    Similarly, the proposed rule change amends subparagraphs (a)(5) and 
(6) to account for the possibility of multiple clearing agencies by 
providing that the effectiveness of a Clearing TPH's letters of 
guarantee and authorization is tied to that Clearing TPH's status as a 
Clearing Member at the Clearing Corporation to which those letters 
relate. In other words, if a Clearing TPH is a Clearing Member of two 
Clearing Corporations, it will have letters of guarantee and 
authorization on file with the Exchange for each such Clearing 
Corporation. If the Clearing TPH's status as a Clearing Member of one 
Clearing Corporation is terminated or suspended (but the Clearing TPH 
remains an active Clearing Member the other Clearing Corporation), only 
the letters of guarantee and authorization on file with the Exchange 
with respect to the Clearing Corporation at which the Clearing TPH's 
membership was terminated will be invalidated. The Exchange believes it 
is appropriate for the effectiveness of a Clearing TPH's letters of 
guarantee and authorization to be dependent on the Clearing TPH's 
membership at the Clearing Corporation to which those letters apply. 
This ultimately results in the same action that occurs today and merely 
applies these rule provisions to each Clearing Corporation 
separately.\8\
---------------------------------------------------------------------------

    \8\ The additional language that if a Clearing TPH's status as a 
TPH is terminated or suspended, then all existing letters of 
guarantee and authorization from that Clearing TPH for all Clearing 
Corporations are invalid, is within current subparagraphs (a)(5) and 
(6). The proposed rule change merely separates it out, but has no 
substantive impact on how that authority will be applied.
---------------------------------------------------------------------------

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.\9\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \10\ 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) \11\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes the proposed rule change will 
promote just and equitable principles of trade, foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, 
protect investors and the public interest because it render the 
Exchange's Rules clearing agency-neutral. Specifically, the proposed 
rule change will accommodate the clearing of options listed for trading 
on the Exchange by any registered clearing agency, rather than just 
OCC. As noted above, the CCUS recently became temporarily registered 
under the Act to clear listed options, including certain options the 
Exchange intends to list soon. To the extent the Commission approves 
CCUS's application, or the application for registration as an options 
clearing agency under Section 17A of the Act of any other entity, the 
proposed rule change will update the Exchange's Rules to account for 
clearing of any options the Exchange lists for trading that may be 
issued and cleared by any such entity.
    The Exchange also believes the proposed rule changes to Rule 3.61 
will promote just and equitable principles of trade, foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, remove impediments to and perfect the 
mechanism of a free and open market and a national market system. 
Specifically, the proposed rule change will allow the Exchange to take 
the same actions it may take against a Clearing TPH today in response 
to actions taken by a Clearing Corporation against the Clearing TPH but 
aligns the Exchange's actions with the actions of the specific Clearing 
Corporation that took actions against the Clearing TPH. Further, the 
proposed rule change ties the effectiveness of a Clearing TPH's letters 
of guarantee and authorization at the Exchange to the Clearing TPH's 
membership at the specific Clearing Corporation to which those letters 
apply. This ultimately results in the same action that occurs today and 
merely applies these rule provisions to each Clearing Corporation 
separately.

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 to amend the definition of Clearing 
Corporation (and make conforming changes) will impose any burden on 
intramarket competition, because it applies to all clearing agencies 
registered to clear options pursuant to Section 17A of the Act 
(including OCC) in the same manner. Any Rules referencing a Clearing 
Corporation or the Rules of the Clearing Corporation will apply to that 
entity in the same manner as they do to OCC today. Thus, any TPH that 
decides to become a clearing member of any Clearing Corporation other 
than OCC will have the same responsibilities and obligations under the 
Exchange's Rules applicable to Clearing TPHs as Clearing TPHs that are 
clearing members of OCC. The Exchange does not believe the proposed 
rule change to amend the definition of Clearing Corporation (and make 
conforming changes) will impose any burden on intermarket competition, 
and in fact may relieve any burden on or otherwise promote competition, 
because it may facilitate competition with respect to clearing listed 
options, which may benefit market participants.
    The Exchange does not believe the proposed rule changes to Rule 
3.61 will impose any burden on intramarket competition because they 
will apply to all Clearing TPHs in the same manner. The proposed rule 
change does not permit the Exchange to take action against a Clearing 
TPH the Rules do not already permit in response to action taken by the 
Clearing Corporation; rather, the proposed rule change ties these 
permissible Exchange actions to actions taken by the specific Clearing 
Corporation(s) against the Clearing TPH. Further, the Exchange does not 
believe the proposed rule changes to Rule 3.61 will impose any burden 
on intermarket competition, because it ties actions the Exchange may 
take against a Clearing TPH to actions a specific Clearing Corporation 
took action against the Clearing TPH.

[[Page 70931]]

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 written comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\ 
Because the proposed rule change does not: (i) significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-
4(f)(6) thereunder.\15\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\17\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay to immediately 
account for the existence of two registered clearing agencies that 
clear options listed on the Exchange. The proposal would render the 
Exchange's Rules clearing agency-neutral, and thereby accommodate the 
clearing of options listed for trading on the Exchange by any 
registered clearing agency, rather than just OCC. The Exchange states 
that its proposed rule will have no impact on how options currently 
listed for trading on the Exchange are cleared. To the extent the 
Exchange lists options cleared by a registered clearing agency other 
than OCC, such options will trade on the Exchange in the same manner as 
they do with other options today and the Exchange will submit options 
for clearing to such entity as set forth in its Rules (and thus as it 
currently does for OCC). For these reasons, the Commission finds that 
waiving the 30-day operative delay is consistent with the protection of 
investors and the public interest. Accordingly, the Commission hereby 
waives the 30-day operative delay and designates the proposed rule 
change as operative upon filing.\18\
---------------------------------------------------------------------------

    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
    \18\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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 under 
Section 19(b)(2)(B) \19\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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#b1c3c4ddd49cd2dedcdcd4dfc5c2f1c2d4d29fd6dec7"><span class="__cf_email__" data-cfemail="aad8dfc6cf87c9c5c7c7cfc4ded9ead9cfc984cdc5dc">[email&#160;protected]</span></a>. Please include 
file number SR-CBOE-2026-084 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-2026-084. 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-2026-084 and should be submitted on 
or before November 30, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
---------------------------------------------------------------------------

    \20\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-22751 Filed 11-6-26; 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>