[Federal Register Volume 89, Number 71 (Thursday, April 11, 2024)]
[Notices]
[Pages 25677-25681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-07641]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99913; File No. SR-BX-2024-012]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the 
Exchange's Pricing Schedule at Options 7, Section 2(1)

April 5, 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 April 1, 2024, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed with 
the Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule change 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\ CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Exchange's Pricing Schedule at 
Options 7, Section 2(1).
    The text of the proposed rule change is available on the Exchange's 
website at https://listingcenter.nasdaq.com/rulebook/bx/rules, at the 
principal office of the Exchange, 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 Pricing Schedule at Options 7, 
Section 2(1) to establish a number of incentives for Lead Market Makers 
(``LMMs''),\3\ Market Makers (``MMs''),\4\ and Customers.\5\
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    \3\ The term ``Lead Market Maker'' or (``LMM'') applies to a 
registered BX Options Market Maker that is approved pursuant to 
Options 2, Section 3 to be the LMM in an options class (options 
classes).
    \4\ The term ``BX Options Market Maker'' or (``M'') is a 
Participant that has registered as a Market Maker on BX Options 
pursuant to Options 2, Section 1, and must also remain in good 
standing pursuant to Options 2, Section 9. In order to receive 
Market Maker pricing in all securities, the Participant must be 
registered as a BX Options Market Maker in at least one security.
    \5\ The term ``Customer'' or (``C'') applies to any transaction 
that is identified by a Participant for clearing in the Customer 
range at The Options Clearing Corporation (``OCC'') which is not for 
the account of broker or dealer or for the account of a 
``Professional'' (as that term is defined in Options 1, Section 
1(a)(48)).
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    Today, the Exchange assesses the following fees and rebates in 
Penny and Non-Penny Symbols:

                              Penny Symbols
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           Market participant              Maker rebate      Taker fee
------------------------------------------------------------------------
Lead Market Maker.......................         ($0.24)           $0.50
Market Maker............................          (0.20)            0.50
Non-Customer............................          (0.12)            0.50
Firm....................................          (0.12)            0.50
Customer................................          (0.30)            0.40
------------------------------------------------------------------------


                            Non-Penny Symbols
------------------------------------------------------------------------
                                           Maker rebate/
           Market participant                   fee          Taker fee
------------------------------------------------------------------------
Lead Market Maker.......................         ($0.45)           $1.25
Market Maker............................          (0.40)            1.25
Non-Customer............................            0.45            1.25
Firm....................................            0.45            1.25

[[Page 25678]]

 
Customer................................          (1.10)            0.79
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Note 2 Incentive
    The Exchange now proposes to establish new incentives in note 2, 
which is currently reserved, that would be in addition to the Penny and 
Non-Penny Symbol Maker Rebates currently provided to LMMs and MMs. 
Specifically, note 2 would provide:

    Lead Market Makers and Market Makers that either (1) execute 
more than 0.45% Customer Total Consolidated Volume (``TCV'') per day 
which adds liquidity in a given month (excluding Lead Market Maker 
and Market Maker volume which adds liquidity in SPY), or (2) 
increase their combined Lead Market Maker and Market Maker volume 
which adds liquidity in a given month by at least 70% above their 
March 2024 volume as measured by a percentage of TCV (excluding Lead 
Market Maker and Market Maker volume which adds liquidity in SPY), 
will receive the following incentives: (i) an additional $0.05 per 
contract Maker Rebate in Penny Symbols excluding SPY, (ii) an 
additional $0.01 per contract Maker Rebate in SPY, and (iii) an 
additional $0.24 per contract Maker Rebate in Non-Penny Symbols. 
Lead Market Makers and Market Makers with no volume in the add 
liquidity segment for the month of March 2024 may qualify for the 
additional Maker Rebates by having any new volume (excluding SPY 
volume) considered as added volume. This note 2 incentive will be 
available through September 30, 2024.

    Proposed note 2 would provide LMMs and MMs two separate paths to 
receive the additional Maker Rebates described above. The first path 
would be based on liquidity adding volume on BX as a percentage of 
Customer Total Consolidated Volume, which will be defined as the total 
national volume cleared at The Options Clearing Corporation in the 
Customer range in equity and ETF options in that month.\6\ The Exchange 
is proposing to base the first path on a percentage of industry volume 
in recognition of the fact that the volume executed by a Member may 
rise or fall with industry volume.
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    \6\ The Exchange will add this definition in Options 7, Section 
1(a). The Exchange notes the proposed language is based on 
substantially similar definitions in the Pricing Schedules of its 
affiliates Nasdaq ISE (``ISE'') and Nasdaq MRX (``MRX''). See ISE 
Options 7, Section 1(c) and MRX Options 7, Section 1(c).
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    The second path would be a growth incentive aimed at rewarding LMMs 
and MMs to grow the extent of their liquidity adding activity on the 
Exchange over time, relative to a benchmark month. LMMs and MMs who did 
not have any combined Lead Market Maker and Market Maker add liquidity 
volume for the month of March 2024 (and therefore lack March 2024 
baseline volume against which to measure subsequent growth) would meet 
the proposed growth requirement through whatever volume of LMM and MM 
add liquidity activity (excluding in SPY) during the first month of 
use.\7\ Growth incentives in general are designed to further encourage 
Members to increase their order flow to the Exchange, which contributes 
to a deeper, more liquid market and provides even more execution 
opportunities for market participants. Increased overall order flow 
benefits all market participants by contributing towards a robust and 
well-balanced market ecosystem. Other options exchanges have adopted 
substantially similar growth incentives.\8\
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    \7\ As discussed below, the Exchange will sunset the note 2 
incentives (including the growth incentive) on September 30, 2024 
and will use this time period to evaluate the proposed growth 
incentive criteria to determine whether the parameters are 
appropriately designed to incentivize LMMs and MMs in the intended 
manner.
    \8\ See, e.g., Securities Exchange Act Release Nos. 97148 (March 
15, 2023), 88 FR 17068 (March 21, 2023) (SR-MRX-2023-07) 
(establishing growth incentive for MRX Market Makers); and 97440 
(May 5, 2023), 88 FR 30370 (May 11, 2023) (SR-MRX-2023-08) (adding 
an expiration date for the MRX growth incentive). MRX subsequently 
eliminated this growth incentive upon reaching the expiration date. 
See Securities Exchange Act Release No. 97800 (June 26, 2023), 88 FR 
42409 (June 30, 2023) (SR-MRX-2023-11).
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    The Exchange notes that it will exclude LMM and MM liquidity adding 
volume in SPY from both paths because SPY is the most actively traded 
symbol on BX, and Exchange believes that LMMs and MMs will continue to 
be incentivized to bring SPY liquidity adding volume on BX despite the 
exclusion of SPY volume from the note 2 qualifications. Further, the 
Exchange is encouraging SPY liquidity adding volume separately through 
the proposed additional $0.01 per contract Maker Rebate in SPY 
described above.
    The proposed note 2 incentives will be available through September 
30, 2024. The Exchange believes that this would ensure that the note 2 
incentives--notably the growth incentive using the benchmark month 
(i.e., March 2024) against which LMM and MM growth would be measured--
are timely and meet the intended purpose of encouraging increased order 
flow and liquidity adding activity.
Note 4 Incentive
    The Exchange also proposes to establish a growth incentive in new 
note 4 of Options 7, Section 2(1) that would have similar 
qualifications as the growth incentive proposed in new note 2 above in 
that Members would be measured relative to a benchmark month. 
Specifically, Members that increase their executed Customer volume 
which removes liquidity in a given month by at least 70% above their 
March 2024 volume as measured by a percentage of TCV will receive a 
Taker Fee discount of $0.05 per contract in Penny Symbols excluding 
SPY, QQQ, and IWM. Accordingly, qualifying Members would pay a Customer 
Taker Fee of $0.35 (instead of $0.40) per contract in Penny Symbols. 
The Exchange is proposing to exclude SPY, QQQ, and IWM from the note 4 
incentive because Members are already paying lower Customer Taker Fees 
of $0.33 per contract for those symbols today.\9\
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    \9\ See Options 7, Section 2(1), note 1.
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    The proposed note 4 incentive is aimed at rewarding Members to grow 
the extent of their Customer liquidity removing activity on the 
Exchange over time, relative to a benchmark month. The Exchange also 
proposes to make clear that Members with no Customer volume in the 
remove liquidity segment for the month of March 2024 may qualify for 
the Taker Fee discount by having any new volume considered as added 
volume. Similar to the note 2 incentive proposed above, Members who did 
not have the requisite volume for the month of March 2024 (and 
therefore lack March 2024 baseline volume against which to measure 
subsequent growth) would meet the proposed growth requirement through 
whatever volume in the required segment during the first month of use. 
The Exchange believes that the proposed growth incentive in note 4 will 
encourage increased Customer order flow to the Exchange, which 
contributes to a deeper, more liquid market and provides even more

[[Page 25679]]

execution opportunities for market participants.
    Similar to the proposed note 2 incentive above, the Exchange 
proposes to sunset the new note 4 incentive on September 30, 2024. The 
Exchange believes that this would ensure that the proposed growth 
incentive is timely and meets the intended purpose of encouraging 
increased order flow and Customer liquidity removing activity.
Technical Amendments
    Lastly, the Exchange proposes a number of non-substantive, 
technical edits in Options 7. First, the Exchange proposes to title 
paragraph (a) in Options 7, Section 1 as ``Definitions'' to more 
clearly identify the applicable rules within this paragraph. Second, 
the Exchange proposes to amend Options 7, Section 2(1) to correct a 
formatting error by adding parentheses around the note 1 and note 3 
references appended to the Customer Taker Fee in Penny Symbols and 
Customer Maker Rebate in Non-Penny Symbols, respectively.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\10\ in general, and furthers the objectives of 
Sections 6(b)(4) and 6(b)(5) of the Act,\11\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among members and issuers and other persons using any 
facility, and is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange's proposed changes to its schedule of credits are 
reasonable in several respects. As a threshold matter, the Exchange is 
subject to significant competitive forces in the market for options 
securities transaction services that constrain its pricing 
determinations in that market. The fact that this market is competitive 
has 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'. . . .'' \12\
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    \12\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010) 
(quoting Securities Exchange Act Release No. 59039 (December 2, 
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
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    The Commission and the courts have repeatedly expressed their 
preference for competition over regulatory intervention in determining 
prices, products, and services in the securities markets. In Regulation 
NMS, while adopting a series of steps to improve the current market 
model, 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.'' \13\
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    \13\ Securities Exchange Act Release No. 51808 (June 9, 2005), 
70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting 
Release'').
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    Numerous indicia demonstrate the competitive nature of this market. 
For example, clear substitutes to the Exchange exist in the market for 
options security transaction services. The Exchange is only one of 
seventeen options exchanges to which market participants may direct 
their order flow. Within this environment, market participants can 
freely and often do shift their order flow among the Exchange and 
competing venues in response to changes in their respective pricing 
schedules. As such, the proposal represents a reasonable attempt by the 
Exchange to increase its liquidity and market share relative to its 
competitors.
Note 2 Incentive
    The Exchange believes that the proposed note 2 incentives are 
reasonable for several reasons. As discussed above, note 2 would 
provide LMMs and MMs two separate paths to receive the proposed 
additional Maker Rebates of (i) $0.05 per contract in Penny Symbols 
excluding SPY,\14\ (ii) $0.01 per contract in SPY,\15\ and (iii) $0.24 
per contract in Non-Penny Symbols.\16\ The first path would be based on 
liquidity adding volume on BX as a percentage of Customer Total 
Consolidated Volume (i.e., TCV).\17\ The Exchange believes that the 
total industry percentage threshold is reasonable in order to align 
with increasing LMM and MM activity on BX over time. The Exchange is 
proposing to base the first path on a percentage of industry volume in 
recognition of the fact that the volume executed by a Member may rise 
or fall with industry volume. A percentage of industry volume 
calculation allows the proposed qualifications in note 2 to be 
calibrated to current market volumes rather than requiring a static 
amount of volume regardless of market conditions. The proposed 
threshold of 0.45% Customer Total Consolidated Volume is generally 
intended to reward LMMs and MMs for executing more liquidity adding 
volume on BX. To the extent such activity is increased by this 
proposal, market participants may increasingly compete for the 
opportunity to trade on Exchange to the benefit of all market 
participants. As noted above, total industry percentage thresholds are 
established concepts within the Pricing Schedules of BX's 
affiliates.\18\
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    \14\ Accordingly, qualifying LMMs and MMs would receive a total 
of $0.29 per contract (LMMs) and $0.25 per contract (MMs) in Penny 
Symbols excluding SPY.
    \15\ Accordingly, qualifying LMMs and MMs would receive a total 
of $0.25 per contract (LMMs) and $0.21 per contract (MMs) in SPY.
    \16\ Accordingly, qualifying LMMs and MMs would receive a total 
of $0.69 per contract (LMMs) and $0.64 per contract (MMs) in Non-
Penny Symbols.
    \17\ In particular, LMMs and MMs that execute more than 0.45% 
Customer Total Consolidated Volume (``TCV'') per day which adds 
liquidity in a given month (excluding Lead Market Maker and Market 
Maker volume which adds liquidity in SPY) would receive the proposed 
note 2 incentives.
    \18\ See supra note 6.
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    As discussed above, the second path would be a growth incentive 
that would provide LMMs and MMs with the additional Maker Rebates 
outlined above if they increase their combined LMM and MM volume which 
adds liquidity in a given month by at least 70% above their March 2024 
volume as measured by a percentage of TCV (excluding LMM and MM volume 
which adds liquidity in SPY). The Exchange believes that its proposal 
is reasonable because it will provide extra incentives to LMMs and MMs 
to engage in substantial amounts of liquidity adding activity on the 
Exchange, as well as to substantially grow the extent to which they do 
so relative to a recent benchmark month. The Exchange believes that if 
the proposed growth incentive is effective, any ensuing increase in 
liquidity adding activity on BX will improve the quality of the market 
overall, to the benefit of all market participants. The Exchange also 
believes that it is reasonable to consider any new add liquidity volume 
(excluding SPY volume) for LMMs and MMs with no such volume for the 
month of March 2024 in order for those market participants to receive 
the proposed additional Maker Rebates in note 2. The proposed growth 
incentive is designed to attract additional liquidity from new LMMs and 
MMs as well as existing LMMs and MMs who

[[Page 25680]]

may not have a large footprint on BX today. To the extent this proposal 
attracts such LMM and MM add liquidity volume to BX, all market 
participants should benefit through more trading opportunities and 
tighter spreads. An overall increase in activity would deepen the 
Exchange's liquidity pool, support the quality of price discovery, 
promote market transparency and improve market quality for all 
investors. As discussed above, the Exchange intends for the proposed 
note 2 incentives, including the growth incentive, to sunset on 
September 30, 2024, and will use this time to evaluate suitable 
parameters for such market participants in the targeted segment. The 
Exchange believes that this will ensure that the proposed incentives 
are timely and meet the intended purpose of encouraging increased order 
flow and liquidity adding activity. As noted above, other options 
exchanges (including the Exchange's affiliate) have previously adopted 
substantially similar growth incentives.\19\
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    \19\ See supra note 8.
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    The Exchange further believes that it is reasonable to exclude LMM 
and MM liquidity adding volume in SPY from both paths because SPY is 
the most actively traded symbol on BX, and Exchange believes that LMMs 
and MMs will continue to be incentivized to bring SPY liquidity adding 
volume on BX despite the exclusion of SPY volume from the note 2 
qualifications. Further, the Exchange is encouraging SPY liquidity 
adding volume separately through the proposed additional $0.01 per 
contract Maker Rebate in SPY described above.
    The Exchange believes that the proposed note 2 incentives are 
equitable and not unfairly discriminatory for the reasons that follow. 
As a general matter, the Exchange believes that it is equitable and not 
unfairly discriminatory to provide the note 2 incentives to only LMMs 
and MMs because these market participants have different requirements 
and additional obligations to the Exchange that other market 
participants do not (such as quoting requirements). As noted above, 
LMMs would ultimately receive higher Maker Rebates than MMs when 
combining the current base rebates with the proposed additional 
rebates.\20\ Nevertheless, the Exchange continues to believe that it is 
equitable and not unfairly discriminatory to provide more favorable 
pricing to LMMs compared to MMs given that LMMs are subject to 
heightened quoting obligations compared to Market Makers.\21\ The 
higher rebates therefore recognize the differing contributions made to 
the liquidity and trading environment on the Exchange by LMMs. Overall, 
the Exchange believes that incentivizing both LMMs and MMs to provide 
greater liquidity benefits all market participants through the quality 
of order interaction.
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    \20\ See supra notes 14-16.
    \21\ See Options 2, Section 4(j) (setting forth the 90% or 
higher quoting obligations for LMMs) and Section 5(d) (setting forth 
the 60% or higher quoting obligations for MMs).
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    The Exchange also believes that it is equitable and not unfairly 
discriminatory to consider any new add liquidity volume (excluding SPY 
volume) for LMMs and MMs with no such volume in March 2024 in order for 
those market participants to receive the proposed additional Maker 
Rebates because this is designed to attract additional liquidity and 
order flow from new and existing LMMs and MMs to the Exchange, as 
discussed above. In turn, this additional liquidity should benefit all 
market participants through increased liquidity and order interaction. 
Furthermore, the proposed growth incentive will be temporary and sunset 
on September 30, 2024 to ensure that the incentive is timely and meets 
the intended purpose of encouraging increased order flow and liquidity 
adding activity.
Note 4 Incentive
    The Exchange believes that the proposed growth incentive in new 
note 4 of Options 7, Section 2(1) is reasonable for the reasons that 
follow. As discussed above, Members that increase their executed 
Customer volume which removes liquidity in a given month by at least 
70% above their March 2024 volume as measured by a percentage of TCV 
will receive a Taker Fee discount of $0.05 per contract in Penny 
Symbols excluding SPY, QQQ, and IWM. Accordingly, qualifying Members 
would pay a Customer Taker Fee of $0.35 (instead of $0.40) per contract 
in Penny Symbols excluding SPY, QQQ, and IWM. The Exchange believes it 
is reasonable to exclude SPY, QQQ, and IWM from the note 4 incentive 
because Members are already paying lower Customer Taker Fees of $0.33 
per contract for those symbols today.\22\
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    \22\ See Options 7, Section 2(1), note 1.
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    The Exchange believes that the proposed growth incentive is 
reasonable because it will provide extra incentives to Members to 
engage in substantial amounts of Customer liquidity removing activity 
on the Exchange, as well as to substantially grow the extent to which 
they do so relative to a recent benchmark month. The Exchange believes 
that if the proposed growth incentive is effective, any ensuing 
increase in liquidity removing activity on BX will increase trading 
opportunities for all market participants. The Exchange also believes 
that it is reasonable to consider any new Customer remove liquidity 
volume for Members with no such volume for the month of March 2024 in 
order for those Members to receive the proposed Taker Fee discount in 
note 4. The proposed growth incentive is designed to attract additional 
Customer order flow from new Members as well as existing Members who 
may not have a large footprint on BX today. To the extent this proposal 
attracts such order flow to BX, all market participants should benefit 
through more trading opportunities. As discussed above, the Exchange 
intends for the proposed growth incentive in note 4 to sunset on 
September 30, 2024, and will use this time to evaluate suitable 
parameters for such market participants in the targeted segment. The 
Exchange believes that this will ensure that the proposed incentive is 
timely and meets the intended purpose of encouraging increased order 
flow and Customer liquidity removing activity. As noted above, other 
options exchanges (including the Exchange's affiliate) have previously 
adopted similar growth incentives.\23\
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    \23\ See supra note 8.
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    Further, the Exchange believes that the proposed note 4 incentive 
is equitable and not unfairly discriminatory for the reasons that 
follow. As a general matter, the Exchange believes that it is equitable 
and not unfairly discriminatory to provide the note 4 incentive to only 
Customer orders because the proposed changes are intended to increase 
Customer order follow, particularly Customer remove liquidity order 
flow, to BX. An increase in Customer order flow enhances liquidity on 
the Exchange to the benefit of all market participants by providing 
more trading opportunities, which in turn attracts other market 
participants that may interact with this order flow.
    The Exchange also believes that it is equitable and not unfairly 
discriminatory to consider any new Customer remove liquidity volume for 
Members with no such volume in March 2024 in order for those Members to 
receive the proposed Taker Fee discount because this is designed to 
attract additional liquidity and order flow from new and existing 
Members to the Exchange, as discussed above. In turn, this additional 
liquidity should benefit

[[Page 25681]]

all market participants through increased liquidity and order 
interaction. Furthermore, the proposed growth incentive will be 
temporary and sunset on September 30, 2024 to ensure that the incentive 
is timely and meets the intended purpose of encouraging increased 
Customer order flow and liquidity removing activity.
Technical Amendments
    The Exchange believes that the non-substantive, technical edits in 
Options 7 are consistent with the Act because they will promote clarity 
so that market participants can more easily locate the relevant rules 
in the Pricing Schedule, and they are also intended to correct 
formatting errors in the Pricing Schedule.

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 not necessary or appropriate in 
furtherance of the purposes of the Act.
    In terms of intra-market competition, the Exchange does not believe 
that its proposal will place any category of market participant at a 
competitive disadvantage. As it relates to the proposed note 2 
incentives offered to LMMs and MMs, the Exchange believes that the 
additional Maker Rebates should encourage the provision of liquidity 
from both existing and new LMMs and MMs that enhances the quality of 
the Exchange's market and increases the number of trading opportunities 
on the Exchange for all market participants who will be able to compete 
for such opportunities. Similarly, for the proposed note 4 incentive 
offered to Customers, the Exchange likewise believes that the Taker Fee 
discount should encourage additional Customer order flow from both 
existing and new Members, which would enhance BX's market quality and 
increase trading opportunities to the benefit of all market 
participants.
    In terms of inter-market competition, the Exchange notes that it 
operates in a highly competitive market in which market participants 
can readily favor competing venues if they deem fee levels at a 
particular venue to be excessive, or rebate opportunities available at 
other venues to be more favorable. In such an environment, the Exchange 
must continually adjust its fees to remain competitive with other 
options exchanges. Because competitors are free to modify their own 
fees in response, and because market participants may readily adjust 
their order routing practices, the Exchange believes that the degree to 
which fee changes in this market may impose any burden on competition 
is extremely limited. In sum, if the changes proposed herein are 
unattractive to market participants, it is likely that the Exchange 
will lose market share as a result. Accordingly, the Exchange does not 
believe that the proposed changes will impair the ability of members or 
competing order execution venues to maintain their competitive standing 
in the financial markets.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

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)(ii) of the Act.\24\
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    \24\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    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: (i) 
necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

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-BX-2024-012 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-BX-2024-012. 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 (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 
a.m. and 3 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-BX-2024-012 and should be 
submitted on or before May 2, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
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    \25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-07641 Filed 4-10-24; 8:45 am]
BILLING CODE 8011-01-P