[Federal Register Volume 89, Number 61 (Thursday, March 28, 2024)]
[Notices]
[Pages 21640-21648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06588]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99839; File No. SR-CBOE-2024-014]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Update 
Its Fees Schedule in Connection With the Exchange's Plans To List and 
Trade Options That Overlie a Reduced Value of the MSCI World Index, the 
Full Value of the MSCI ACWI Index, and a Reduced Value of the MSCI USA 
Index

March 22, 2024.
    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 March 18, 2024, 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, 
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 update its Fees Schedule in connection with the Exchange's plans to 
list and trade options that overlie a reduced value of the MSCI World 
Index, the full value of the MSCI ACWI Index, and a reduced value of 
the MSCI USA Index. The text of the proposed rule change is provided in 
Exhibit 5.
    The text of the proposed rule change is available on the Exchange's 
website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 
at the Exchange's Office of the Secretary, and at the Commission's 
Public Reference Room.

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 in connection with 
its plans to list and trade options that overlie a reduced value of the 
MSCI World Index (``MXWLD options''), the full value of the MSCI ACWI 
Index (``MXACW options''), and a reduced value of the MSCI USA Index 
(``MXUSA options''), effective March 18, 2024.
Background
    Each of the MSCI World, ACWI, and USA Indexes is a free float-
adjusted market capitalization index designed to measure equity market 
performance throughout the world (MSCI World and ACWI Indexes) or the 
United States (MSCI USA Index). The MSCI World, ACWI, and USA Indexes 
are calculated by MSCI Inc. (``MSCI''), which is a provider of 
investment support tools.\3\ Each of these indexes is calculated in 
U.S. dollars on a real-time basis from the open of the first market on 
which the components are traded to the closing of the last market on 
which the components are traded. The methodology used to calculate each 
index is similar to the methodology used to calculate the value of 
other benchmark market-capitalization weighted indexes (including the 
MSCI MXEA and MXEF Indexes, on which the Exchange may currently list 
options).\4\
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    \3\ See Rule 4.12(c).
    \4\ See Rule 4.10(h); see also Securities Exchange Act Release 
No. 74681 (April 8, 2015), 80 FR 20032 (April 14, 2015) (SR-CBOE-
2015-023) (order approving proposed rule change to adopt rules to 
permit listing and trading of options on the MSCI EAFE Index (``MXEA 
options'') and the MSCI EM Index) (``MXEF options'').
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    MXACW options are options that are based on the value of the MSCI 
ACWI Index. The MSCI ACWI Index is a free float-adjusted market 
capitalization index that is designed to measure the equity performance 
of developed markets and emerging markets. The MSCI ACWI Index consists 
of component stocks from 23 developed markets \5\ and 24 emerging 
markets.\6\

[[Page 21641]]

The MSCI ACWI Index consists of large- and mid-cap components across 
these markets, has 2,946 constituents, and covers approximately 85% of 
the global investable equity opportunity set.\7\
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    \5\ These developed markets include Australia, Austria, Belgium, 
Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, 
Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, 
Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the 
United States.
    \6\ These emerging markets include Brazil, Chile, China, 
Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, 
Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, 
Saudi Arabia, South Africa, Taiwan, Thailand, Turkey, and the United 
Arab Emirates.
    \7\ See MSCI ACWI Index fact sheet (dated November 30, 2023), 
available at MSCI ACWI Index.
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    MSWLD options are options that are based on 1/100th of the value of 
the MSCI World Index. The MSCI World Index is a free float-adjusted 
market capitalization index that is designed to measure the equity 
market performance of developed markets. The MSCI World Index consists 
of component stocks from 23 developed markets.\8\ The MSCI World Index 
consists of large- and mid-cap components across these markets, has 
1,509 constituents, and covers approximately 85% of the free float-
adjusted market capitalization in each country.\9\
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    \8\ These developed markets include Australia, Austria, Belgium, 
Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, 
Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, 
Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the 
United States.
    \9\ See MSCI World Index fact sheet (dated November 30, 2023), 
available at MSCI World Index.
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    MXUSA options are options that are based on 1/100th of the value of 
the MSCI USA Index. The MSCI USA Index is a free float-adjusted market 
capitalization index that is designed to measure the performance of the 
large- and mid-cap segments of the U.S. market. The MSCI USA Index 
consists of large- and mid-cap components from the United States, has 
625 constituents, and covers approximately 85% of the free float-
adjusted market capitalization in the United States.\10\
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    \10\ See MSCI USA Index fact sheet (dated November 30, 2023), 
available at MSCI USA Index.
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    With a smaller index value, MXWLD and MXUSA options may be more 
accessible to a broad base of customers with diverse investment 
objectives, ranging from asset owners aiming to track benchmark index 
exposure, registered investment advisers in search of new sources of 
yield, or individual investors seeking straightforward exposure to 
options linked to global benchmark indices. The Exchange believes that 
MXWLD and MXUSA options, with a smaller index value, will attract a 
greater source of customer business and may enhance investors' 
opportunities to hedge, or speculate on, the market risk associated 
with the stocks comprising the MSCI World Index and MSCI USA Index, 
respectively. Additionally, the Exchange believes investors will 
benefit from the availability of MXWLD and MXUSA options, as investors 
will be able to use this trading vehicle while extending a smaller 
outlay of capital. The Exchange believes this may attract additional 
investors, and, in turn, create a more active and liquid trading 
environment.
    The MSCI World Index, MSCI ACWI Index, and MSCI USA Index are 
calculated using methodology as the MSCI MXEA Index and the MSCI MXEF 
Index on which the Exchange currently lists options. The Exchange 
believes offering MXACW, MXWLD, and MXUSA options with similar terms as 
MXEA and MXEF options will benefit investors, as it will provide market 
participants with additional investment and hedging strategies 
consisting of options over each of these indexes.
    The Exchange now proposes to amend its Fees Schedule to accommodate 
the planned listing and trading of MXACW, MXUSA, and MXWLD options. The 
Exchange notes that because MXEA, MXEF, MXACW, MXUSA, and MXWLD options 
are intended for the same investor-base, the majority of the proposed 
changes amend the Fees Schedule in connection with trading in MXACW, 
MXUSA, and MXWLD options in a manner that is generally consistent with 
the way in which existing transactions fees and programs currently 
apply to trading in MXEA and MXEF options, with slight differences to 
account for the lower spot value of underlying indexes of MXACW, MXUSA, 
and MXWLD options, as compared to the underlying indexes of MXEA and 
MXEF options.
Standard Transaction Rates and Surcharges
    First, the Exchange proposes to adopt certain standard transaction 
fees in connection with MXWLD, MXACW, and MXUSA options. Specifically, 
the proposed rule change adopts certain fees for MXWLD, MXACW, and 
MXUSA options in the Rate Table for All Products Excluding Underlying 
Symbol A,\11\ as follows:
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    \11\ Underlying Symbol List A includes OEX, XEO, RUT, RLG, RLV, 
RUI, UKXM, SPX (includes SPXW), SPESG and VIX. See Exchange Fees 
Schedule, Footnote 34.
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     Adopts fee code CG, appended to all Customer (capacity 
``C'') orders in MXWLD, MXACW, and MXUSA options and assesses a fee of 
$0.05 per contract; \12\
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    \12\ Under the proposed changes, the Customer Large Trade 
Discount Program, set forth in the Exchange Fees Schedule, will 
apply to Customer orders in MXWLD, MXACW, and MXUSA (included in 
``Other Index Options'' under the program). Under the program, a 
customer large trade discount program in the form of a cap on 
customer (``C'' capacity code) transaction fees is in effect for the 
options set forth in the Customer Large Trade Discount table. For 
MXWLD, MXACW, and MXUSA options, regular customer transaction fees 
will only be charged for up to 5,000 contracts per order, similar to 
other index options other than VIX, SPX/SPXW, SPESG, and XSP.
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     Adopts fee code MG, which is appended to all Market-Maker 
(capacity ``M'') orders in MXWLD, MXACW, and MXUSA options and assesses 
a fee of $0.10 per contract;
     Adopts fee code FG, appended to all Firm (i.e., Clearing 
Trading Permit Holders (capacity ``F'')) and Non-Clearing Trading 
Permit Holder Affiliates (capacity ``L'')) orders in MXWLD, MXACW, and 
MXUSA options and assesses a fee of $0.15 per contract;
     Adopts fee code BG, appended to all non-Customer, non-
Market-Maker, non-Firm (i.e., Broker-Dealers (capacity ``B''), Joint 
Back-Offices (capacity ``J''), Non-Trading Permit Holder Market-Makers 
(capacity ``N''), and Professionals (capacity ``U'')) orders in MXWLD, 
MXACW, and MXUSA options and assesses a fee of $0.20 per contract.
    In addition to the above transaction fees, the proposed rule change 
also adopts certain surcharges to MXWLD and MXACW options transactions 
within the Rate Table--All Products Excluding Underlying Symbol List A. 
Currently, the MXEA and MXEF Index License Surcharge Fee assesses a 
$0.12 charge for transactions in MXEA and MXEF options. The proposed 
rule change applies the MXEA and MXEF Index License Surcharge Fee to 
all Firm, Market-Maker and Non-Customer transactions in MXWLD and MXACW 
options and amends the fee name accordingly. The proposed rule change 
also adds MXWLD, MXACW, and MXUSA options to the list of options for 
which the FLEX Surcharge Fee of $0.10 (capped at $250 per trade) 
applies to electronic FLEX orders executed by all capacity codes, 
except for Cboe Compression Services (``CCS'') and FLEX Micro 
transactions.\13\
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    \13\ The FLEX Surcharge Fee will only be charged up to the first 
2,500 contracts per trade. See Exchange Fees Schedule, Footnote 17.
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Fees Programs
    The Exchange proposes to exclude MXACW, MXUSA, and MXWLD options 
from the Liquidity Provider Sliding Scale, which offers credits on 
Market-Maker orders where a Market-Maker achieves certain volume 
thresholds based on total national Market-Maker volume in all 
underlying symbols, excluding Underlying Symbol List A, MRUT, NANOS, 
XSP, and FLEX Micros during the calendar month.

[[Page 21642]]

Specifically, the proposed rule change updates the Liquidity Provider 
Sliding Scale table to provide that volume thresholds are based on 
total national Market-Maker volume in all underlying symbols excluding 
Underlying Symbol List A, MRUT, MXACW, MXUSA, MXWLD, NANOS, XSP, and 
FLEX Micros during the calendar month, and that it applies in all 
underlying symbols excluding Underlying Symbol List A, MRUT MXACW, 
MXUSA, MXWLD, NANOS, XSP, and FLEX Micros. The proposed rule change 
also updates Footnote 10 (appended to the Liquidity Provider Sliding 
Scale) to provide that the Liquidity Provider Sliding Scale applies to 
Liquidity Provider (Exchange Market-Maker, DPM and LMM) transaction 
fees in all products except (1) Underlying Symbol List A, MRUT, MXACW, 
MXUSA, MXWLD, NANOS, XSP, and FLEX Micros, (2) volume executed in open 
outcry, and, and (3) volume executed via AIM Responses.
    The proposed rule change updates the Volume Incentive Program 
(``VIP'') table to exclude MXWLD, MXACW, and MXUSA volume from the VIP, 
which currently offers a per contract credit for certain percentage 
threshold levels of monthly Customer volume in all underlying symbols, 
excluding Underlying Symbol List A, Sector Indexes, DJX, MRUT, MXEA, 
MXEF, NANOS, XSP and FLEX Micros. The proposed rule change also amends 
Footnote 36 (appended to the VIP table) to reflect the proposed 
exclusion of MXWLD, MXACW, and MXUSA from the VIP by providing (in 
relevant part) that: the Exchange shall credit each TPH the per 
contract amount resulting from each public customer (``C'' capacity 
code) order transmitted by that TPH which is executed electronically on 
the Exchange in all underlying symbols excluding Underlying Symbol List 
A, Sector Indexes, DJX, MRUT, MXACW, MXEA, MXEF, MXUSA, MXWLD, NANOS, 
XSP, FLEX Micros, QCC trades, public customer to public customer 
electronic complex order executions, and executions related to 
contracts that are routed to one or more exchanges in connection with 
the Options Order Protection and Locked/Crossed Market Plan referenced 
in Rule 5.67, provided the TPH meets certain percentage thresholds in a 
month as described in the Volume Incentive Program (VIP) table; the 
percentage thresholds are calculated based on the percentage of 
national customer volume in all underlying symbols excluding Underlying 
Symbol List A, Sector Indexes, MRUT, MXACW, MXEA, MXEF, MXUSA, MXWLD, 
NANOS, DJX, XSP, and FLEX Micros entered and executed over the course 
of the month; and in the event of a Cboe Options System outage or other 
interruption of electronic trading on Cboe Options, the Exchange will 
adjust the national customer volume in all underlying symbols excluding 
Underlying Symbol List A, Sector Indexes, MRUT, MXACW, MXEA, MXEF, 
MXUSA, MXWLD, NANOS, DJX, XSP, and FLEX Micros for the entire trading 
day.
    The proposed rule change excludes MXACW, MXUSA, and MXWLD options 
from the list of products eligible to receive Break-Up Credits in 
orders executed in AIM, SAM, FLEX AIM, and FLEX SAM, by amending the 
Break-Up Credits table to exclude MXACW, MXUSA, and MXWLD along with 
the products currently excluded--Underlying Symbol List A, Sector 
Indexes, DJX, MRUT, MXEA, MXEF, NANOS, XSP and FLEX Micros.
    The Exchange proposes to exclude MXACW, MXUSA, and MXWLD options 
from the Marketing Fee Program by updating the Marketing Fee table to 
provide that the marketing fee will be assessed on transactions of 
Market-Makers (including DPMs and LMMs), resulting from customer orders 
at the per contract rate provided above on all classes of equity 
options, options on ETFs, options on ETNs and index options, except 
that the marketing fee shall not apply to Sector Indexes, DJX, MRUT, 
MXEA, MXEF, MXACW, MXUSA, MXWLD, XSP, NANOS, FLEX Micros or Underlying 
Symbol List A. The Exchange notes that, in this way, MXACW, MXUSA, and 
MXWLD options will be treated as most of the Exchange's other 
exclusively listed products that are currently excluded from the 
Marketing Fee Program. The Exchange does believe that it is necessary 
at the point of newly listing and trading for MXACW, MXUSA, and MXWLD 
options to be eligible for the Marketing Fee Program and may determine 
in the future to submit a fee filing to add MRUT to the Marketing Fee 
Program if the Exchange believes it would potentially generate more 
customer order flow in MXACW, MXUSA, and MXWLD options.
    The proposed rule change also updates the Select Customer Options 
Reduction (``SCORe'') program table to include MXWLD, MXACW, and MXUSA 
volume in the SCORe program, which currently offers a per Retail 
contract discount for certain percentage threshold levels of monthly 
Retail,\14\ Non-FLEX Customer (``C'' origin code) volume in the 
following options classes: SPX (including SPXW), VIX, RUT, MXEA, MXEF & 
XSP (``Qualifying Classes''). The SCORe program is available to any 
Trading Permit Holder (``TPH'') Originating Clearing Firm or non-TPH 
Originating Clearing Firm that sign up for the program.\15\ The SCORe 
program utilizes Discount Tiers to determine the Originating Firm's 
applicable corresponding discounts. To determine the Discount Tier, an 
Originating Firm's Retail volume in the Qualifying Classes will be 
divided by total Retail volume in the Qualifying Classes executed on 
the Exchange. The program then provides a discount per retail contract, 
based on the determined Discount Tier thereunder. The proposed rule 
change also amends Footnote 48 (appended to the SCORe program table) to 
reflect the proposed inclusion of MXWLD, MXACW, and MXUSA in the SCORe 
program by providing (in relevant part) that: ``Qualifying Classes'' 
will be defined as SPX (including SPXW), VIX, RUT, MXEA, MXEF, MXWLD, 
MXACW & MXUSA.
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    \14\ For purposes of this program ``Retail'' orders will be 
defined as Customer orders for which the original order size (in the 
case of a simple order) or largest leg size (in the case of a 
complex order) is 100 contracts or less.
    \15\ For this program, an ``Originating Clearing Firm'' is 
defined as either (a) the executing clearing Options Clearing 
Corporation (``OCC'') number on any transaction which does not also 
include a Clearing Member Trading Agreement (``CMTA'') OCC clearing 
number or (b) the CMTA in the case of any transaction which does 
include a CMTA OCC clearing number.
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    The Exchange proposes to exclude MXACW, MXUSA, and MXWLD options 
from the Floor Broker Sliding Scale Rebate Program, which offers 
rebates for Firm Facilitated and non-Firm Facilitated orders that 
correspond to certain volume tiers and is designed to incentivize order 
flow in multiply-listed options to the Exchange's trading floor. The 
Exchange proposes to update the Floor Broker Sliding Scale Rebate 
Program to provide that the Floor Broker Sliding Scale Rebate Program 
applies to all products except Underlying Symbol List A, Sector 
Indexes, DJX, MRUT, MXEA, MXEF, MXACW, MXUSA, MXWLD, NANOS, XSP and 
FLEX Micros.
    The Exchange next proposes to exclude MXWLD, MXACW, and MXUSA 
options from eligibility for the Order Router Subsidy (``ORS'') and 
Complex Order Router Subsidy (``CORS'') Programs, in which 
Participating TPHs or Participating Non-Cboe TPHs may receive a payment 
from the Exchange for every executed contract routed to the Exchange 
through their system in certain classes. Specifically, the proposed 
rule change

[[Page 21643]]

updates the ORS/CORS Program tables to provide that ORS/CORS 
participants whose total aggregate non-customer ORS and CORS volume is 
greater than 0.25% of the total national volume (excluding volume in 
options classes included in Underlying Symbol List A, Sector Indexes, 
DJX, MRUT, MXACW, MXEA, MXEF, MXUSA, MXWLD, NANOS, XSP or FLEX Micros) 
will receive an additional payment for all executed contracts exceeding 
that threshold during a calendar month, and updates Footnotes 29 \16\ 
and 30 (appended to the ORS/CORS Program tables) to accordingly provide 
that Cboe Options does not make payments under the program with respect 
to executed contracts in options classes included in Underlying Symbols 
List A, Sector Indexes, DJX, MRUT, MXACW, MXEA, MXEF, MXUSA, MXWLD, 
NANOS, XSP or FLEX Micros.
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    \16\ As part of the proposed rule change, the Exchange proposes 
a clarifying change to add MRUT and NANOS to the list of excluded 
options in Footnote 29; such options are listed in the ORS table, 
but were inadvertently not added to Footnote 29.
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    The Exchange also proposes to amend Footnote 6, which states that 
in the event of an Exchange System outage or other interruption of 
electronic trading on the Exchange that lasts longer than 60 minutes, 
the Exchange will adjust the national volume in all underlying symbols 
excluding Underlying Symbol List A, Sector Indexes, MRUT, MXEA, MXEF, 
NANOS, DJX, XSP and FLEX Micros for the entire trading day. The 
Exchange proposes to add MXACW, MXUSA, and MXWLD options to the list of 
options, similar to MXEA and MXEF options.
LMM Incentive Programs
    Finally, the Exchange proposes to adopt financial programs in 
connection with MXACW, MXUSA, and MXWLD options for LMMs appointed to 
the programs (collectively, the ``LMM Incentive Programs'').\17\ Each 
LMM Incentive Program provides a rebate to TPHs with LMM appointments 
to the respective incentive program that meet certain quoting standards 
in the applicable series in a month. The Exchange notes that meeting or 
exceeding the quoting standards (as proposed; described in further 
detail below) in each of the LMM Incentive Program products to receive 
the applicable rebate (as proposed; described in further detail below) 
is optional for an LMM appointed to a program. Rather, an LMM appointed 
to an incentive program is eligible to receive the corresponding rebate 
if it satisfies the applicable quoting standards, which the Exchange 
believes encourages the LMM to provide liquidity in the applicable 
class and trading session. The Exchange may consider other exceptions 
to the programs' quoting standards based on demonstrated legal or 
regulatory requirements or other mitigating circumstances. In 
calculating whether an LMM appointed to an incentive program meets the 
applicable program's quoting standards each month, the Exchange 
excludes from the calculation in that month the business day in which 
the LMM missed meeting or exceeding the quoting standards in the 
highest number of the applicable series. The heightened quoting 
requirements offered by each of the LMM Incentive Programs are designed 
to incentivize LMMs appointed to the LMM Incentive Programs to provide 
significant liquidity in MXACW, MXUSA, and MXWLD options during the 
trading day upon their listing and trading on the Exchange, which, in 
turn, would provide greater trading opportunities, added market 
transparency and enhanced price discovery for all market participants 
in MXACW, MXUSA, and MXWLD options.
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    \17\ See Exchange Rule 3.55(a). In advance of the LMM Incentive 
Program effective date, the Exchange will send a notice to solicit 
applications from interested TPHs for the LMM role and will, from 
among those applications, select the program LMMs. Factors to be 
considered by the Exchange in selecting LMMs include adequacy of 
capital, experience in trading options, presence in the trading 
crowd, adherence to Exchange rules and ability to meet the 
obligations specified in Rule 5.55.
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    The Exchange first proposes to adopt a MXACW LMM Incentive Program. 
As proposed, the MXACW LMM Incentive Program provides that if the LMM 
appointed to the MXACW LMM Incentive Program provides continuous 
electronic quotes during Regular Trading Hours that meet or exceed the 
proposed heightened quoting standards (below) in at least 90% of the 
series 90% of the time in a given month, the LMM will receive a payment 
for that month in the amount of $10,000 (or pro-rated amount if an 
appointment begins after the first trading day of the month or ends 
prior to the last trading day of the month).

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                                              Expiring          Near term         Mid term          Long term
                                         -----------------------------------------------------------------------
                                           6 days or less     7 days to 60     61 days to 270      271 days or
              Premium level              ------------------       days              days             greater
                                                           -----------------------------------------------------
                                            Width    Size     Width    Size     Width    Size     Width    Size
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$0.00-$1.00.............................     $0.35      10     $0.25      20     $0.40      10     $0.50       5
$1.01-$2.00.............................      0.40      10      0.35      15      0.60       7      1.00       5
$2.01-$4.00.............................      0.90       7      0.40      15      1.00       5      2.00       5
$4.01-$8.00.............................      1.00       5      0.80      10      2.00       4      3.00       4
$8.01-$16.00............................      2.50       3      1.30       5      3.50       3      5.00       3
$16.01-$32.00...........................      5.00       2      2.00       2      4.00       2      6.00       2
Greater than $32.00.....................     10.00       2      8.00       2     10.00       2     12.00       2
----------------------------------------------------------------------------------------------------------------

    The proposed rule change also adopts a performance payment under 
the MXACW LMM Incentive Program, which provides that, in addition to 
the above rebate, the LMM with the highest performance in satisfying 
the above heightened quoting standards in a month will receive a 
performance payment of $20,000 for that month. In order to be eligible 
to receive the performance payment in a month, an LMM must meet or 
exceed the above heightened quoting standards in that month. Highest 
performance is measured as the cumulative sum of series in which an LMM 
meets or exceeds the heightened quoting requirements by the total 
series each day (excluding the day in which an LMM missed meeting or 
exceeding the heightened quoting standard in the highest number of 
series).
    The Exchange next proposes to adopt a MXUSA LMM Incentive Program. 
As proposed, the MXUSA LMM Incentive Program provides that if the LMM 
appointed to the MXUSA LMM Incentive Program provides continuous 
electronic quotes during Regular Trading Hours that meet or exceed the 
proposed heightened quoting standards (below) in at least 85% of the 
series 80% of the time in a given month, the

[[Page 21644]]

LMM will receive a payment for that month in the amount of $10,000 (or 
pro-rated amount if an appointment begins after the first trading day 
of the month or ends prior to the last trading day of the month).

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                                              Expiring          Near term         Mid term          Long term
                                         -----------------------------------------------------------------------
                                           6 days or less     7 days to 60     61 days to 270      271 days or
              Premium level              ------------------       days              days             greater
                                                           -----------------------------------------------------
                                            Width    Size     Width    Size     Width    Size     Width    Size
----------------------------------------------------------------------------------------------------------------
$0.00-$3.00.............................     $0.50      10     $0.60      10     $0.80      10     $1.00      10
$3.01-$5.00.............................      1.00      10      0.80      10      1.20       5      1.50       5
$5.01-$10.00............................      1.50       5      1.20      10      2.50       5      2.00       5
$10.01-$20.00...........................      5.00       5      3.50       5      6.00       5      6.00       5
Greater than $20.00.....................     10.00       5     10.00       5     12.00       5     12.00       5
----------------------------------------------------------------------------------------------------------------

    The proposed rule change also adopts a performance payment under 
the MXUSA LMM Incentive Program, which provides that, in addition to 
the above rebate, the LMM with the highest performance in satisfying 
the above heightened quoting standards in a month will receive a 
performance payment of $15,000 for that month. In order to be eligible 
to receive the performance payment in a month, an LMM must meet or 
exceed the above heightened quoting standards in that month. Highest 
performance is measured as the cumulative sum of series in which an LMM 
meets or exceeds the heightened quoting requirements by the total 
series each day (excluding the day in which an LMM missed meeting or 
exceeding the heightened quoting standard in the highest number of 
series).
    Finally, the Exchange proposes to adopt a MXWLD LMM Incentive 
Program. As proposed, the MXWLD LMM Incentive Program provides that if 
the LMM appointed to the MXWLD LMM Incentive Program provides 
continuous electronic quotes during Regular Trading Hours that meet or 
exceed the proposed heightened quoting standards (below) in at least 
90% of the series 90% of the time in a given month, the LMM will 
receive a payment for that month in the amount of $15,000 (or pro-rated 
amount if an appointment begins after the first trading day of the 
month or ends prior to the last trading day of the month).

----------------------------------------------------------------------------------------------------------------
                                              Expiring          Near term         Mid term          Long term
                                         -----------------------------------------------------------------------
                                           6 days or less     7 days to 60     61 days to 270      271 days or
              Premium level              ------------------       days              days             greater
                                                           -----------------------------------------------------
                                            Width    Size     Width    Size     Width    Size     Width    Size
----------------------------------------------------------------------------------------------------------------
$0.00-$3.00.............................     $0.30      25     $0.25      25     $0.60      15     $0.80      10
$3.01-$5.00.............................      0.60      20      0.50      20      1.00      15      1.20      10
$5.01-$10.00............................      0.75      10      0.65      10      1.25      10      1.50      10
$10.01-$20.00...........................      2.00       5      1.50       5      3.00       5      4.00       5
Greater than $20.00.....................      5.00       5      3.00       5      5.00       5      7.00       5
----------------------------------------------------------------------------------------------------------------

    The proposed rule change also adopts a performance payment under 
the MXWLD LMM Incentive Program, which provides that, in addition to 
the above rebate, the LMM with the highest performance in satisfying 
the above heightened quoting standards in a month will receive a 
performance payment of $25,000 for that month. In order to be eligible 
to receive the performance payment in a month, an LMM must meet or 
exceed the above heightened quoting standards in that month. Highest 
performance is measured as the cumulative sum of series in which an LMM 
meets or exceeds the heightened quoting requirements by the total 
series each day (excluding the day in which an LMM missed meeting or 
exceeding the heightened quoting standard in the highest number of 
series).
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.\18\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
section 6(b)(5) \19\ 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) \20\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. The Exchange also believes the proposed rule 
change is consistent with section 6(b)(4) of the Act,\21\ which 
requires that Exchange rules provide for the equitable allocation of 
reasonable dues, fees, and other charges among its TPHs and other 
persons using its facilities.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(b).
    \19\ 15 U.S.C. 78f(b)(5).
    \20\ Id.
    \21\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

Standard Transaction Rates and Surcharges
    The Exchange believes that the proposed amendments to the Fees 
Schedule in connection with standard transaction rates and surcharges 
for MXACW, MXUSA, and MXWLD transactions are reasonable, equitable and 
not unfairly discriminatory. Specifically, the Exchange believes that 
it is reasonable to assess fees for Customer, Market-Maker, Firm and 
non-Market-Maker, non-Customer, non-Firm orders in MXACW, MXUSA, and 
MXWLD options that are based on, but slightly less than, those fees for 
transactions in MXEA and MXEF options (all of which overly MSCI 
benchmark market-capitalization

[[Page 21645]]

weighted indexes) because the underlying indexes of MXACW, MXUSA, and 
MXWLD options have a lower spot value than the underlying indexes of 
MXEA and MXEF options (and therefore, more contracts would need to be 
traded to achieve an equivalent notional size position).
    Additionally, the Exchange believes it is reasonable to charge 
different fee amounts to different user types in the manner proposed 
because the proposed fees are consistent with the price differentiation 
that exists today for other index products. The Exchange also believes 
that the proposed fee amounts for MXACW, MXUSA, and MXWLD options 
orders are reasonable because the proposed fee amounts are within the 
range of amounts assessed for the Exchange's other index products, 
excluding Underlying Symbol List A.\22\
---------------------------------------------------------------------------

    \22\ See Exchange Fees Schedule, Rate Table--All Products 
Excluding Underlying Symbol List A.
---------------------------------------------------------------------------

    Moreover, the Exchange believes it is reasonable to apply the MXEA 
and MXEF Index License Surcharge Fee to all non-public customer (i.e. 
Cboe Options and non-Trading Permit Holder market-maker, Clearing 
Trading Permit Holder, JBO participant, and broker-dealer), including 
professional, transactions in MXWLD and MXACW options because the 
proposed surcharge helps recoup some of the costs associated with the 
license for MXWLD and MXACW options. Additionally, the Exchange notes 
that the surcharge amount will provide consistency between the fees 
assessed for orders in MXEA and MXEF options, which, like MXWLD and 
MXACW, all of which overly MSCI benchmark market-capitalization 
weighted indexes and are designed to offer investors lower cost options 
to obtain the potential benefits of options on a broad-based index 
option and intended for a similar investor-base. Given current trading 
practices, the Exchange believes that MXUSA options may have a smaller 
initial trading volume (as compared to MXWLD and MXACW options), and as 
such, wishes to incentivize trading in MXUSA. Therefore, the Exchange 
believes it is reasonable to not assess an Index License Surcharge fee 
for MXUSA options, as a way to encourage market participants to trade 
the newly listed product. The Exchange believes it is reasonable to 
apply the FLEX Surcharge Fee to MXWLD, MXACW, and MXUSA options, as the 
FLEX Surcharge Fee assists the Exchange in recouping the cost of 
developing and maintaining the FLEX system.
    The Exchange believes the proposed standard transaction rates and 
exclusion from certain surcharges are equitable and not unfairly 
discriminatory because they will apply automatically and uniformly to 
all capacities as applicable (i.e., Customer, Market-Maker, Firm and 
non-Market-Maker, non-Customer, non-Firm), in MXWLD, MXACW, and MXUSA 
options. The Exchange also believes that it is equitable and not 
unfairly discriminatory to assess lower fees to Customers as compared 
to other market participants because Customer order flow enhances 
liquidity on the Exchange for the benefit of all market participants. 
Specifically, customer liquidity benefits all market participants by 
providing more trading opportunities, which attracts Market-Makers. An 
increase in the activity of these market participants in turn 
facilitates tighter spreads, which may cause an additional 
corresponding increase in order flow from other market participants. 
The fees offered to customers are intended to attract more customer 
trading volume to the Exchange. Moreover, the options industry has a 
long history of providing preferential pricing to Customers, and the 
Exchange's current Fees Schedule currently does so in many places, as 
do the fees structures of many other exchanges. Finally, all fee 
amounts listed as applying to Customers will be applied equally to all 
Customers (meaning that all Customers will be assessed the same 
amount).
    The Exchange believes that it is equitable and not unfairly 
discriminatory to assess lower fees to Market-Makers as compared to 
other market participants other than Customers because Market-Makers, 
unlike other market participants, take on a number of obligations, 
including quoting obligations, that other market participants do not 
have. Further, these lower fees offered to Market-Makers are intended 
to incent Market-Makers to quote and trade more on the Exchange, 
thereby providing more trading opportunities for all market 
participants. Additionally, the proposed fee for Market-Makers will be 
applied equally to all Market-Makers (meaning that all Market-Makers 
will be assessed the same amount). The Exchange also notes that all fee 
amounts described herein are intended to attract greater order flow to 
the Exchange in MXWLD, MXACW, and MXUSA options, which should therefore 
serve to benefit all Exchange market participants. Similarly, it is 
equitable and not unfairly discriminatory to assess lower fees to Firm 
orders than those of other market participants (except Customers and 
Market-Makers) because Firms also have a number of obligations (such as 
membership with the OCC), significant regulatory burdens, and financial 
obligations, that other market participants do not need to take on. 
Finally, the proposed surcharges will be assessed uniformly to all 
market participants to whom the FLEX Surcharge and Index License 
Surcharge Fee apply.
Fees Programs
    The Exchange believes that the proposed updates to the Fees 
Schedule in connection with the application of certain fees programs to 
transactions in MXWLD, MXACW, and MXUSA options are reasonable, 
equitable and not unfairly discriminatory. The Exchange believes it is 
reasonable to exclude MXWLD, MXACW, and MXUSA options from the 
Liquidity Provider Sliding Scale, the VIP, Break-Up Credits applicable 
to Customer Agency Orders in AIM and SAM, the Marketing Fee, the Floor 
Broker Sliding Scale Rebate Program, and the ORS/CORS program because 
other proprietary index products are also excepted from these 
programs.\23\ Moreover, the Exchange notes that the proposed rule 
change does not alter any of the existing programs, but instead, merely 
proposes not to include transactions in MXWLD, MXACW, and MXUSA options 
in those programs. Similarly, the Exchange believes it is reasonable to 
include transactions in MXWLD, MXACW, and MXUSA options in the SCORe 
program because other proprietary index products, including MXEA and 
MXEF options, are also included in this program.\24\
---------------------------------------------------------------------------

    \23\ See Exchange Fees Schedule, Liquidity Provider Sliding 
Scale, Volume Incentive Program, Break-Up Credits, Marketing Fee, 
Floor Broker Sliding Scale Rebate Program, Order Router Subsidy 
Program and Complex Order Router Subsidy Program.
    \24\ See Exchange Fees Schedule, Select Customer Options 
Reduction (``SCORe'') Program.
---------------------------------------------------------------------------

    The Exchange believes that excluding MXWLD, MXACW, and MXUSA 
options transactions from certain fees programs is equitable and not 
unfairly discriminatory because the programs will equally not apply to, 
or exclude in the same manner, all market participants' orders in 
MXWLD, MXACW, and MXUSA options. Similarly, the Exchange believes that 
including MXWLD, MXACW, and MXUSA options transactions in the SCORe 
program is equitable and not unfairly discriminatory because the 
program will equally apply to, or include in the same manner, all 
market participants' orders in MXWLD, MXACW, and MXUSA options. The

[[Page 21646]]

Exchange notes that the proposed rule change does not alter any of the 
existing program rates or volume calculations, but instead, merely 
proposes include (or not to) include transactions in MXWLD, MXACW, and 
MXUSA options in those programs and volume calculations in the same way 
that transactions in MXEA and MXEF options are (or are not) currently 
included.
LMM Incentive Programs
    The Exchange believes the proposed LMM Incentive Programs are 
reasonable, equitable and not unfairly discriminatory. Particularly, 
the proposed MXWLD, MXACW, and MXUSA LMM Incentive Programs are 
reasonable financial incentive programs because the proposed heightened 
quoting standards and rebate amount for meeting the heightened quoting 
standards in each MXWLD, MXACW, and MXUSA series, as applicable, are 
reasonably designed to incentivize LMMs appointed to the Programs to 
meet the proposed heightened quoting standards during RTH for MXWLD, 
MXACW, and MXUSA, as applicable, thereby providing liquid and active 
markets, which facilitates tighter spreads, increased trading 
opportunities, and overall enhanced market quality to the benefit of 
all market participants, particularly in newly listed and traded 
products on the Exchange during the trading day.
    The Exchange believes that the proposed heightened quoting 
standards are reasonable because they are similar to the detail and 
format (corresponding premiums, quote widths, and sizes) of the quoting 
standards currently in place for LMM Incentive Programs for other 
proprietary Exchange products.\25\ The Exchange also believes that 
proposed heightened quoting requirements are reasonably tailored to 
reflect market characteristics of MXWLD, MXACW, and MXUSA. The Exchange 
believes the generally smaller premium levels and widths appropriately 
reflect the lower-priced MXWLD, MXACW, and MXUSA product. The Exchange 
believes the proposed finer premiums, smaller quote widths and smaller 
sizes (comparatively) in the proposed heightened quoting standards for 
the MXWLD, MXACW, and MXUSA LMM Incentive Programs reasonably reflect 
what the Exchanges believes will be typical market characteristics in 
MXWLD, MXACW, and MXUSA options, given their smaller spot value, their 
smaller notional value and general anticipated retail base, thus 
smaller, retail-sized orders. quoting requirements in the future to 
accommodate expiry categories.
---------------------------------------------------------------------------

    \25\ See Exchange Fees Schedule, ``MRUT LMM Incentive Program'', 
``MSCI LMM Incentive Program'', ``NANOS LMM Incentive Program'', 
``GTH VIX/VIXW LMM Incentive Program'', ``GTH1 SPX/SPXW LMM 
Incentive Program'', ``GTH2 SPX/SPXW LMM Incentive Program'', ``RTH 
XSP LMM Incentive Program'', ``GTH1 XSP LMM Incentive Program'', 
``GTH2 XSP LMM Incentive Program'', and ``RTH SPESG LMM Incentive 
Program''.
---------------------------------------------------------------------------

    The Exchange further believes that the proposed rebate amounts 
received for MXACW ($10,000), MXUSA ($10,000), and MXWLD ($15,000) 
options is reasonable because they are comparable to the rebates 
offered by other LMM Incentive Programs offered by the Exchange. For 
example, the LMM Program for MXEA and MXEF options (the ``MSCI LMM 
Program'') currently offers $15,000 per class, per month to appointed 
LMMs for MXEA and MXEF options if the heightened quoting standards are 
met in a given month. The Exchange believes that the proposed rebate 
amounts are reasonably designed to continue to incentivize an LMM 
appointed to the respective program to meet the applicable quoting 
standards for MXACW, MXUSA, and MXWLD options, thereby providing liquid 
and active markets, which facilitates tighter spreads, increased 
trading opportunities, and overall enhanced market quality to the 
benefit of all market participants.
    Similarly, the Exchange believes that the proposed performance 
payments for MXACW ($20,000), MXUSA ($15,000), and MXWLD ($25,000) 
options provided to the LMM with the highest performance in satisfying 
the relevant heightened quoting standards for each of the proposed LMM 
Programs is reasonable and equitable as the LMM Incentive Program for 
MXEA and MXEF options offers a similar performance payment. All 
appointed LMMs are eligible for the performance payment, which is 
designed to incentivize LMMs in these newly listed products to provide 
liquid and active markets in these products to encourage their growth.
    Finally, the Exchange believes it is equitable and not unfairly 
discriminatory to offer the financial incentive to LMMs appointed to 
the LMM Incentive Programs, because it will benefit all market 
participants trading in MXWLD, MXACW, and MXUSA during RTH by 
encouraging the appointed LMMs to satisfy the heightened quoting 
standards, which incentivizes continuous increased liquidity and 
thereby may provide more trading opportunities and tighter spreads. 
Indeed, the Exchange notes that these LMMs serve a crucial role in 
providing quotes and the opportunity for market participants to trade 
MXWLD, MXACW, and MXUSA, which can lead to increased volume, providing 
for robust markets. The Exchange ultimately proposes to offer the 
MXWLD, MXACW, and MXUSA LMM Incentive Programs to sufficiently 
incentivize the appointed LMMs to provide key liquidity and active 
markets in the newly listed and traded NANOS options during the trading 
day to encourage liquidity, thereby protecting investors and the public 
interest. The Exchange also notes that an LMM appointed to the Programs 
may undertake added costs each month to satisfy that heightened quoting 
standards (e.g., having to purchase additional logical connectivity). 
The Exchange believes the proposed programs are equitable and not 
unfairly discriminatory because similar programs currently exist for 
LMMs appointed to programs in other proprietary products,\26\ and the 
proposed programs will equally apply to any TPH that is appointed as an 
LMM to the each of the LMM Incentive Programs, as applicable. 
Additionally, if an appointed LMM does not satisfy the heightened 
quoting standards in MXWLD, MXACW, and MXUSA (as applicable) for any 
given month, then it simply will not receive the offered payment for 
that month.
---------------------------------------------------------------------------

    \26\ Id.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange does not 
believe that the proposed rule change will impose any burden on 
intramarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act because the proposed MXWLD, 
MXACW, and MXUSA transaction fees for the separate types of market 
participants will be assessed automatically and uniformly to all such 
market participants, i.e., all qualifying Customer orders in MXWLD, 
MXACW, and MXUSA will be assessed the same amount, all Market-Maker 
orders in MXWLD, MXACW, and MXUSA will be assessed the same amount, all 
Firm orders in MXWLD, MXACW, and MXUSA will be assessed the same 
amount, and all non-Customer, non-Market-Maker, non-Firm orders in 
MXWLD, MXACW, and MXUSA will be assessed the same amount. As discussed 
above, while different fees are assessed to different market 
participants in some

[[Page 21647]]

circumstances, these different market participants have different 
obligations and different circumstances as discussed above. For 
example, Market-Makers have quoting obligations that other market 
participants do not have. Additionally, the proposed surcharges will be 
assessed uniformly to all market participants to whom the FLEX 
Surcharge and Index License Surcharge Fee apply.
    Further, the proposed rule change will uniformly exclude all 
transactions in MXWLD, MXACW, and MXUSA from certain programs (i.e., 
the VIP and ORS/CORS Programs), as it currently does for MXEA and MXEF 
options, and as it does for many of the Exchange's other proprietary 
products. In addition to this, the proposed rule change to include 
MXWLD, MXACW, and MXUSA in the SCORe program will apply equally to all 
applicable transactions in MXWLD, MXACW, and MXUSA. Overall, the 
proposed rule change is designed to increase incentive for customer 
order flow providers to submit customer order flow in a newly listed 
and traded product, which, as indicated above, contributes to a more 
robust market ecosystem to the benefit of all market participants.
    The Exchange also does not believe that the proposed LMM Incentive 
Programs for MXWLD, MXACW, and MXUSA options would impose any burden on 
intramarket competition because it applies to all LMMs appointed to 
each of the LMM Incentive Programs in a uniform manner, in the same way 
similar programs apply to appointed LMMs in other proprietary products 
today. To the extent appointed LMMs receive a benefit that other market 
participants do not, these LMMs in their role as Market-Makers on the 
Exchange have different obligations and are held to different 
standards. For example, Market-Makers play a crucial role in providing 
active and liquid markets in their appointed products, especially in 
the newly developing MXWLD, MXACW, and MXUSA market, thereby providing 
a robust market which benefits all market participants. Such Market-
Makers also have obligations and regulatory requirements that other 
participants do not have. The Exchange also notes that an LMM appointed 
to an incentive program may undertake added costs each month to satisfy 
that heightened quoting standards (e.g., having to purchase additional 
logical connectivity). The Exchange also notes that the LMM Incentive 
Programs, like the other LMM Incentive Programs, is designed to attract 
additional order flow to the Exchange, wherein greater liquidity 
benefits all market participants by providing more trading 
opportunities, tighter spreads, and added market transparency and price 
discovery, and signals to other market participants to direct their 
order flow to those markets, thereby contributing to robust levels of 
liquidity.
    The Exchange does not believe that the proposed rule change will 
impose any burden on intermarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act because the 
proposed rule changes apply only to products exclusively listed on the 
Exchange. Additionally, the Exchange notes it operates in a highly 
competitive market. In addition to Cboe Options, TPHs have numerous 
alternative venues that they may participate on and director their 
order flow, including 16 other options exchanges, as well as off-
exchange venues, where competitive products are available for trading. 
Based on publicly available information, no single options exchange has 
more than 13% of the market share of executed volume of options 
trades.\27\ Therefore, no exchange possesses significant pricing power 
in the execution of option order flow. Moreover, the Commission has 
repeatedly expressed its preference for competition over regulatory 
intervention in determining prices, products, and services in the 
securities markets. Specifically, 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.'' \28\ The fact that this market is competitive 
has also long been recognized by the courts. In NetCoalition v. 
Securities and Exchange Commission, the D.C. Circuit stated as follows: 
``[n]o one disputes that competition for order flow is `fierce.' . . . 
As 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 changes to the incentive programs impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act.
---------------------------------------------------------------------------

    \27\ See Cboe Global Markets, U.S. Options Market Volume Summary 
by Month (March 6, 2024), available at http://markets.cboe.com/us/options/market_share/.
    \28\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496, 37499 (June 29, 2005).
    \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)).
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78s(b)(3)(A).
    \31\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-CBOE-2024-014 on the subject line.

Paper Comments

     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-2024-014. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your

[[Page 21648]]

comments more efficiently, please use only one method. The Commission 
will post all comments on the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent 
amendments, all written statements with respect to the proposed rule 
change that are filed with the Commission, and all written 
communications relating to the proposed rule change between the 
Commission and any person, other than those that may be withheld from 
the public in accordance with the provisions of 5 U.S.C. 552, will be 
available for website viewing and printing in the Commission's Public 
Reference Room, 100 F Street NE, Washington, DC 20549 on official 
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of 
the filing also 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-2024-014, and should be submitted on or before April 18, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\32\
---------------------------------------------------------------------------

    \32\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-06588 Filed 3-27-24; 8:45 am]
BILLING CODE 8011-01-P