[Federal Register Volume 91, Number 56 (Tuesday, March 24, 2026)]
[Notices]
[Pages 14063-14065]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-05677]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104567; File No. SR-CBOE-2026-001]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fee Schedule To Reflect Adjustments to Certain FINRA Fees
January 9, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 2, 2026, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The text of the proposed rule change is also available on the
Commission's website (https://www.sec.gov/rules/sro.shtml), the
Exchange's website (https://www.cboe.com/us/options/regulation/rule_filings/bzx/), and at the principal office of the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fee Schedule regarding
Regulatory Fees to reflect updates to the FINRA Annual System
Processing Fee Assessed only during Renewals (``FINRA Annual System
Processing Fee'') and Continuing Education Fee.\3\ By way of
background, FINRA proposed, and the Commission approved, a proposed
rule change to increase fees related to FINRA's core regulatory
functions and use of its programs and services.\4\ The proposed rule
change will occur through phased implementation over several years
between 2025 and 2029.\5\ Beginning in 2026, FINRA will assess amended
fees for Annual System Processing and Continuing Education.\6\ The
Exchange proposes to amend its Fee Schedule to mirror the amended FINRA
fees. The applicable fees are collected and retained by FINRA via Web
CRD \7\ for the registration of associated persons of the Exchange
Trading Permit Holder \8\ (``TPH'') and TPH organizations that are not
also FINRA members (``Non-FINRA members''). The Exchange merely lists
these fees on its Fee Schedule and does not collect or retain the fees.
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\3\ See Securities Exchange Act Release No. 34-101696 (November
8, 2024), 85 FR 66592 (November 27, 2024) (SR-FINRA-2024-019)
(Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change to Adjust FINRA Fees to Provide Sustainable Funding for
FINRA's Regulatory Mission).
\4\ See id.
\5\ See id.
\6\ See id.
\7\ FINRA operates Web CRD, the central licensing and
registration system for the U.S. securities industry. FINRA uses Web
CRD to maintain the qualification, employment, and disciplinary
histories of registered associated persons of broker-dealers.
\8\ See Bylaws of Cboe Exchange, Inc. Section 1.1 Definitions.
``The term ``Trading Permit Holder'' means any individual,
corporation, partnership, limited liability company or other entity
authorized by the Rules that holds a Trading Permit. . . . A Trading
Permit Holder is a ``member'' solely for purposes of the Act;
however, one's status as a Trading Permit Holder does not confer on
that Person any ownership interest in the Exchange.''
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Specifically, the Exchange proposes to amend the current $70 FINRA
Annual System Processing Fee to create a tiered fee structure based on
the total number of securities regulators with which each registered
person of a TPH is registered, excluding registration as an investment
advisor representative. Under the current fee structure, as of January
2, 2024, a flat $70 fee applies to each registered person of a TPH that
is not also a FINRA member.\9\ FINRA's costs and resources allocated to
processing information for TPHs' registered persons depends, in part,
on the number of securities regulators with which each registered
person is registered.\10\ To account for the variability in costs
incurred, FINRA will replace the current flat fee structure with the
tiered rate structure described above beginning in 2026.\11\ This
change to the Exchange's Fee Schedule is proposed in accordance with
the FINRA rule change adjusting its Annual System Processing Fee.\12\
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\9\ As part of the proposed change, the Exchange also proposes
to remove reference to the $45 fee that was in effect through
December 21, 2023.
\10\ Supra note 3.
\11\ Supra note 3.
\12\ Supra note 3.
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The proposed fee structure is as follows: a $70 fee for registered
persons of a TPH with 1-5 securities regulators, a $95 fee for
registered persons of a TPH with 6-20 securities regulators; a $110 fee
for associated [sic] persons of a TPH with 21-40 securities regulators;
and a $125 fee for associated [sic] persons of a TPH with 41 or more
securities regulators. Thus, the Annual System Processing Fee for Non-
FINRA members will be calculated based on the total number of
securities regulators with which each registered person of a TPH is
registered.
Additionally, the Exchange proposes to amend the Continuing
Education Fee for all registration from the current $18 to $25. FINRA,
in conjunction with other Self-Regulatory Organizations and the
Securities Industry/Regulatory
[[Page 14064]]
Council on Continuing Education, administers the continuing education
program for the securities industry.\13\ The Regulatory Element of the
continuing education program provides training on significant rule
changes and other regulatory developments relevant to each registration
category. FINRA will begin assessing an increased fee of $25 beginning
in 2026 for the Regulatory Element of the continuing education
program.\14\ Thus, the Exchange proposes to amend its Fee Schedule to
change the Continuing Education Fee to $25 beginning in 2026.
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\13\ Supra note 3.
\14\ Supra note 3.
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The FINRA Web CRD Fees are user-based, and there is no distinction
in the cost incurred by FINRA if the user is a FINRA member itself,
associated with a FINRA member organization, or a Non-FINRA member.
Accordingly, the proposed fees mirror those fees FINRA will begin
assessing in 2026.
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.\15\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \16\ 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
Section 6(b)(4) of the Act,\17\ 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.
All similarly situated FINRA member organizations are subject to the
same fees structure, and all must use the CRD system for registration
and disclosure.
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\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(5).
\17\ 15 U.S.C. 78f(b)(4).
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The Exchange believes the proposed changes to the FINRA Annual
System Processing Fee is reasonable because the proposed fee structure
is identical to tiered fee structure adopted by FINRA for use of the
Web CRD system.\18\ FINRA bears the costs of processing information for
TPHs' registered persons through Web CRD. The cost borne depends, in
part, on the number of securities regulators with which each registered
person is registered.\19\ Additionally, the Exchange believes the
proposed changes to the FINRA Continuing Education Fee is reasonable
because the amended fee will also become identical to the fee adopted
by FINRA beginning in 2026 for the provision of continuing
education.\20\ Thus, the Exchange's Fee Schedule will reflect the
current rates that will be assessed by FINRA as of 2026 for use of Web
CRD by any TPHs' registered person that is not also a FINRA member. The
Exchange believes the proposed fee changes are equitable and not
unfairly discriminatory, because the Exchange will not be collecting or
retaining these fees, and therefore, the Exchange will not be in a
position to apply them in an inequitable or unfairly discriminatory
manner.
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\18\ Supra note 3.
\19\ Supra note 3.
\20\ Supra note 3.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on intramarket or intermarket 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 because as the proposed change
applies uniformly to all market participants. The proposal will reflect
the fees that will be assessed by FINRA to all market participants
(FINRA and Non-FINRA members) for uses of Web CRD. Additionally, the
Exchange believes that its proposal will not impose an undue burden on
competition because the Exchange will not be collecting or retaining
these fees, therefore, the Exchange will not be in a position to apply
them in an inequitable or unfairly discriminatory manner.
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 \21\ and paragraph (f) of Rule 19b-4 \22\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\21\ 15 U.S.C. 78s(b)(3)(A).
\22\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
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-2026-001 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-2026-001. 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 filing will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to file number SR-CBOE-2026-001 and should be submitted on
or before April 14, 2026.
[[Page 14065]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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\23\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-05677 Filed 3-23-26; 8:45 am]
BILLING CODE 8011-01-P