[Federal Register Volume 81, Number 220 (Tuesday, November 15, 2016)]
[Notices]
[Pages 80052-80053]
[FR Doc No: 2016-27379]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EL17-15-000]

Big Rivers Electric Corporation v. Midcontinent Independent
System Operator, Inc.; Notice of Complaint

    Take notice that on November 4, 2016, pursuant to section 206 of
the Federal Power Act, 16 U.S.C. 824e, and Rules 206 and 212 of the
Federal Energy Regulatory Commission's (Commission) Rules of Practice
and Procedure, 18 CFR 385.206 and 385.212 (2016), Big Rivers Electric
Corporation (Complainant) filed a formal complaint against Midcontinent
Independent System Operator, Inc. (Respondent) alleging that
Respondent's application of the relevant Open Access Transmission,
Energy and Operating Reserves Markets Tariff provisions to Complainant
is not just and reasonable, all as more fully explained in the
complaint.

    Complainant certifies that a copy of the complaint has been served
on MISO and on the Kentucky Public Service Commission.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211 and 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. The Respondent's
answer and all interventions, or protests must be filed on or before
the comment date. The Respondent's answer, motions to intervene, and
protests must be served on the Complainant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov. Persons unable to file electronically should submit an
original and 5 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the
``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive email
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please email
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.
    Comment Date: 5:00 p.m. Eastern Time on November 24, 2016.

    Dated: November 7, 2016.
Kimberly D. Bose,
Secretary.
[FR Doc. 2016-27379 Filed 11-14-16; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 85, Number 223 (Wednesday, November 18, 2020)]
[Notices]
[Pages 73533-73537]
[FR Doc No: 2020-25385]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90404; File No. SR-CBOE-2020-108]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Certain Fees Related to Transactions in Mini-SPX Index (``XSP'')
Options

November 12, 2020.
    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 November 2, 2020, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend certain fees related to transactions in Mini-SPX Index
(``XSP'') options. The text of the proposed rule change is provided in
Exhibit 5.
    The text of the proposed rule change is also 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 to adopt and amend
certain transaction fees, surcharges and routing fees for XSP options,
and amend the Select Customer Options Reduction (``SCORe'') Program and
the Marketing Fee Program in connection with transactions in XSP,
effective November 2, 2020.
    First, the Exchange notes that it proposes to adopt and amend
certain fees in connection with XSP in order to more closely align the
fees assessed for XSP with that of the fees assessed for S&P 500 Index
(``SPX'') options. XSP options and SPX options track the same
underlying index, yet XSP options are 1/10 the size of standard SPX
options contracts. As such, the proposed rule change amends and adopts
certain fees for XSP in the Rate Table for All Products Excluding
Underlying Symbol A that are approximately 1/10 of the fees currently
assessed for SPX, as follows:
     Adopts fee code XF, appended to all Clearing Trading
Permit Holders (``TPHs'') (capacity ``F'') and for Non-Clearing TPH
Affiliates (capacity ``L'') (collectively, ``Firms'') orders in XSP and
assesses a fee of $0.06 per contract. The proposed fee is approximately
1/10 of the fees assessed for Firm orders in SPX ($0.26 transaction fee
per fee code FH + $0.17 Index License Surcharge + $0.21 SPX Execution
Surcharge);
     Amends fee code MX, which is currently appended to all
Market-Maker (capacity ``M'') orders in XSP and assesses a fee of $0.23
per contract, to assess a fee of $0.045 per contract. The proposed fee
is approximately 1/10 of the fees assessed for Market-Maker orders in
SPX ($0.28 transaction per fee code MS + $0.17 Index License
Surcharge); and
     Adopts fee code XB, appended to all Broker-Dealer
(capacity ``B''), Joint Back-Office (capacity ``J''), Non-TPH Market-
Maker (capacity ``N''), and Professional (capacity ``U'')
(collectively, ``Non-Customers'') orders in XSP and assesses a fee of
$0.08 per contract. The proposed fee is approximately 1/10 of the fees
assessed for Non-Customer orders in SPX ($0.42 transaction fee for fee
code BT + $0.17 Index License Surcharge + $0.21 SPX Execution
Surcharge).
    In addition to the above, the proposed rule change also amends the
Complex Surcharge, which currently assesses a $0.12 surcharge on
Market-Maker, Firm and Non-Customer orders in equity, ETF and ETN
options and all other index products. Footnote 35 provides that the
Complex Surcharge applies per contract per side for noncustomer complex
order executions that remove liquidity from the Complex Order Book
(``COB'') and auction responses in the Complex Order Auction (``COA'')
and the AIM in all classes except Sector Indexes and Underlying Symbol
List A (which includes SPX).\3\ Specifically, the Exchange amends
footnote 35 to also exclude complex transactions in XSP, along with
Sector Indexes and Underlying Symbol List A, from the Complex
Surcharge. By not assessing the Complex Surcharge for Market-Maker,
Firm and Non-Customer orders in XSP, the fees assessed for such orders,
as proposed, will be more consistent with fees currently assessed on
Market-Maker, Firm and Non-Customer orders in SPX. The Exchange also
amends Rate Table--All Products Excluding Underlying Symbol List A so
that the Automated Improvement Mechanism (``AIM'') Contra fee
(applicable to orders yielding fee code YB and assesses a fee of $0.07)
does not apply to orders in XSP. The Exchange amends footnote 18, which
is appended to the AIM Contra fee, to provide that applicable standard
transaction fees will apply to AIM, SAM, FLEX AIM and FLEX SAM
executions in XSP, Sector Indexes and Underlying Symbol List A (which
includes SPX). This proposed change will likewise provide consistency
between the fees assessed for orders in XSP and SPX. In addition to
this, because fee code XF will assess a fee of $0.06 for all Firm
orders in XSP, fee codes FA and FD, which assess a fee of $0.20 for
Firm orders in index products in open outcry and AIM, respectively, and
are eligible for the Clearing TPH Fee Cap, will no longer be applicable
to Firm orders in XSP. Therefore, the Exchange proposes to update
footnote 22, which is appended to the Clearing TPH Fee Cap table, to
exclude transactions in XSP from the cap. Specifically, it amends
footnote 22 to provide that all non-facilitation business executed in
AIM or open outcry, or as a QCC or FLEX transaction, transaction fees
for Clearing TPH Proprietary and/or their Non-TPH Affiliates in all
products except XSP, Sector Indexes and Underlying Symbol List A (which
includes SPX), in the aggregate, are capped at $55,000 per month per
Clearing TPH. It additionally updates footnote 11 (which is also
appended to the Clearing TPH Fee Cap table) to provide that the
Clearing TPH Fee Cap in all products except XSP, Underlying Symbol List
A and Sector Indexes (the ``Fee Cap''),\4\ among other programs, apply
to (i) Clearing TPH proprietary orders (``F'' capacity code), and (ii)
orders of Non-TPH Affiliates of a Clearing TPH. The Exchange notes that
the proposed change is consistent with the manner in which Firm
transaction fees in SPX are also excluded from the Clearing TPH Fee
Cap.
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    \3\ Underlying Symbol List A includes OEX, XEO, RUT, RLG, RLV,
RUI, UKXM, SPX (includes SPXW), SPESG and VIX.
    \4\ The Exchange notes that it also corrects an error in
footnote 11 by moving the abbreviated definition for the Clearing
TPH Fee Cap (``Fee Cap''), to the end of the clause describing the
cap.
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    The Exchange next proposes to amend and adopt a fee code for
Customer orders (capacity ``C'') in XSP. Specifically, the Exchange
proposes to amend CC, which is currently appended to all Customer
orders in XSP and assesses a fee of $0.04 per contract, to apply to all
Customer orders in XSP that are for greater than or equal to 10
contracts (the current fee assessed will remain the same for orders of
those size), and proposes to adopt fee code XC, appended to all
Customer orders in XSP that are for less than 10 contract and assesses
no charge to orders of those size. The Exchange notes that a separate
fee assessed for Customer orders containing up to a certain number of
contracts is consistent with the manner in which the Exchange currently
assesses Customer orders in ETF and ETN options.\5\ Also, in light of
this proposed change, the Exchange updates footnote 9, the purpose of
which is to prevent firms from dividing orders into multiple orders of
less than 100

contracts in ETN and ETF options for purposes of qualifying for the fee
waiver and avoiding transaction fees. Specifically, the Exchange amends
footnote 9 to provide (as it similarly does in connection with ETF/ETN
transaction fees) that transaction fees are waived for all customer
orders that are of less than 10 contracts in XSP options, that
transaction fees will be assessed on all customer orders that are of 10
contracts or more in XSP options, and that the Exchange will charge any
leg of a complex order in XSP options that equals or exceeds 10
contracts, even if the leg is only partially executed below the 10
contract threshold.\6\
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    \5\ See Cboe U.S. Options Fee Schedules, Fees Codes and
Associated Fees, which provides that fee code CA is appended to
Customer orders for greater than or equal to 100 contracts that
remove liquidity in ETF [sic] options and are assessed a fee of
$0.18, and that fee code CD is appended to Customer orders for less
than 100 contracts that remove liquidity in ETF [sic] options and
are assessed no fee.
    \6\ The Exchange also specifies which provisions apply
specifically to fees for ETF and ETN options throughout footnote 9.
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    The Exchange also proposes to update its routing fees in connection
with Customer orders in XSP. The Exchange currently assesses routing
fees that combine the cost of the away market transaction fees, the
transaction fees applicable on the Exchange plus a standard $0.15 per
contract routing charge.\7\ Additionally, the Exchange currently waives
the away market fee and the $0.15 charge for Customer orders that were
originally transmitted to the Exchange from the trading floor through
an Exchange[hyphen]sponsored terminal.\8\ The Exchange notes that XSP
is a proprietary product which is traded exclusively on the Exchange
and, beginning on November 2, 2020, the Exchange's affiliated options
exchange, Cboe BZX Exchange, Inc. (``BZX Options'') will also begin
listing and trading XSP.\9\ BZX Options plans to submit a proposal to
update its fees schedule to reflect fees for orders in XSP, effective
November 2, 2020. In light of the proposed fee codes for Customer
orders in XSP on the Exchange (as described above) and the fees being
implemented for orders in XSP executed on BZX Options, the Exchange
proposes to update its routing fees for orders in XSP in the Routing
Fees table, as follows:
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    \7\ See Securities Exchange Act Release No. 87873 (December 31,
2019), 85 FR 754 (January 7, 2020) (SR-CBOE-2019-127), which
explains that Cboe Options combines away market transaction fees,
applicable transaction fees on Cboe Options and a $0.15 routing
charge for routed orders.
    \8\ See Securities Exchange Act Release No. 88243 (February 19,
2020), 85 FR 10760 (February 25, 2020) (SR-CBOE-2020-011), which
explains that the Exchange does not pass through or otherwise charge
customer orders (of any size) routed to other exchanges that were
originally transmitted to the Exchange from the trading floor
through an Exchange[hyphen]sponsored terminal (e.g., a PULSe
Workstation).
    \9\ The Exchange notes that, on November 2, 2020, BZX Options
plans to begin listing and trading XSP options and the Exchange's
affiliated options exchange, Cboe EDGX Exchange, Inc. (``EDGX
Options''), plans to delist XSP options. The Exchange's affiliated
options exchange, Cboe C2 Exchange, Inc. (``C2''), may list and
trade XSP options but does not currently do so.
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     Amends fee code RX, which is appended to routed Customer
orders in XSP and assesses a fee of $0.19, to be appended to routed
Customer orders in XSP for 10 contracts or more and asseses a fee of
$0.69;
     Adopts fee code RY, appended to routed Customer orders in
XSP for less than 10 contracts and assesses a fee of $0.65;
     Amends fee code TX, which is appended to routed Customer
orders in XSP originating on an Exchange-sponsored terminal and
assesses a fee of $0.04, to be appended to routed Customer orders in
XSP for 10 contracts or more originating on an Exchange-sponsored
terminal (the current rate does not change); and
     Adopts fee code TY, appended to routed Customer orders in
XSP for less than 10 contracts originating on an Exchange-sponsored
terminal and assesses no charge.
    The Exchange notes that the proposed routing fees for Customer
orders in XSP are consistent with the manner in which the Exchange
calculates its routing fees, including the manner in which it waives
the away market fees and $0.15 routing fee for orders originating on an
Exchange-sponsored terminal (i.e., applicable to orders yielding fee
codes TY and TX). For example, the proposed routing fee for orders
yielding fee code RX is a combination of the $0.50 transaction fee for
Customer orders on BZX Options, the $0.04 transaction fee for Customer
orders (for over 10 contracts, as proposed) on the Exchange and the
$0.15 additional routing fee.
    Finally, the Exchange proposes to amend the SCORe Program and the
Marketing Fee Program in connection with transactions in XSP. First,
the Exchange proposes to remove XSP from eligibility under the SCORe
Program. The SCORe Program is a discount program for Retail, Non-FLEX
Customer (``C'' origin code) volume in SPX (including SPXW), VIX, RUT,
MXEA, MXEF & XSP (``Qualifying Classes''), and is available to any TPH
Originating Clearing Firm or non-TPH Originating Clearing Firm that
sign up for the program. Specifically, the Exchange proposes to remove
XSP from the list of Qualifying Classes under the SCORe Program table,
as well as from the list of SCORe Program Qualifying Classes provided
in footnote 48. The Exchange next proposes to add XSP to the Marketing
Fee Program. Currently, the Marketing Fee is assessed on transactions
of Market-Makers, 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, MXEA, MXEF, XSP or Underlying Symbol
List A. A Designated Primary Market-Maker (``DPM''), a ``Preferred
Market[hyphen]Maker (``PMM''), or a Lead Market-Maker (``LMM'')
(collectively ``Preferenced Market[hyphen]Maker'') are given access to
the marketing fee funds generated from a Preferenced order. The funds
collected via this Marketing Fee are then put into pools controlled by
the Preferenced Market-Maker. The Preferenced Market-Maker controlling
a certain pool of funds can then determine the order flow provider(s)
to which the funds should be directed in order to encourage such order
flow provider(s) to send orders to the Exchange. Each month,
undisbursed marketing fees in excess of $250,000 are reimbursed to the
Market-Makers that contributed to the pool based upon a one month look
back and their pro-rata portion of the entire amount of marketing fee
collected during that month. The Exchange proposes to remove XSP from
the list of options classes in the Marketing Fee table to which the
Marketing Fee does not apply and add it to the Marketing Fee table to
be assessed a $0.25 collection per contract, which is the current
collection fee for Penny Program classes.\10\ Because not all Firms are
registered for the SCORe Program, the Exchange believes that removing
XSP from SCORe Program eligibility and, instead, adding it as eligible
for the Marketing Fee Program (which automatically applies) would
potentially generate more customer order flow in XSP by providing
incentive to Market-Makers to submit Customer orders in XSP in order to
then receive reimbursement for such orders.
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    \10\ The Exchange also updates ``Penny Pilot'' in the Marketing
Fees table to state ``Penny Program'' as the Exchange recently
adopted the program on a permanent basis. See Securities Exchange
Act Release No. 89075 (June 16, 2020), 85 FR 37479 (June 22, 2020)
(SR-CBOE-2020-054).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\11\ in general, and
furthers the objectives of Section 6(b)(4),\12\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members and issuers and other persons
using its facilities. The Exchange also believes

that the proposed rule change is consistent with the objectives of
Section 6(b)(5) \13\ 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, and,
particularly, is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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    \11\ 15 U.S.C. 78f.
    \12\ 15 U.S.C. 78f(b)(4).
    \13\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed amendments to the Fees
Schedule are reasonable, equitable and not unfairly discriminatory.
Specifically, the Exchange believes that it is reasonable to assess
fees for Market-Maker (MX), Firm (XF), and Non-Customer (XB) orders in
XSP that reflect approximately 1/10 of the transactions fees assessed
for corresponding orders in SPX because of the relation between XSP
options and SPX options, wherein XSP options overlie an index 1/10 the
value of the index that underlies SPX options. Additionally, the
Exchange believes it is reasonable to exclude XSP from the Complex
Surcharge and to apply the standard transaction fees for XSP orders in
lieu of the AIM Contra fee because these proposed rule changes will
likewise provide consistency between the fees assessed for orders in
XSP and SPX, in that, the proposed fees for XSP will remain
approximately 1/10 the fees for SPX. The Exchange notes too that it is
reasonable to exclude Firm Orders in XSP from the Clearing TPH Fee Cap
because fee code FA and FD, orders of which are eligible for the
Clearing TPH Fee Cap, will no longer be applicable to Firm orders in
XSP as a result of the new fee code XF, and resulting fee of $0.06,
applicable to all Firm orders in XSP. The Exchange notes that the
proposed change is consistent with the manner in which Firm transaction
fees in SPX are currently excluded from the Clearing TPH Fee Cap. The
Exchange believes that the proposed fees for Market-Maker, Firm and
Non-Customer orders are equitable and not unfairly discriminatory
because the proposed fee codes will apply automatically and uniformly
to all Market-Maker, Firm and Non-Customer orders, respectively, in
XSP. Likewise, all such orders in XSP per respective market participant
will be equally excluded from the Complex Surcharge, AIM Contra fee and
Clearing TPH Fee Cap, which will provide additional consistency with
the corresponding transaction fees assessed for market participants'
orders in SPX.
    The Exchange also believes that the proposed fee codes for Customer
orders in XSP are reasonable because applying a fee waiver for Customer
orders for less than 10 contracts is reasonably designed to encourage
Customer order flow in XSP options. The Exchange believes that
increased Customer order flow benefits all market participants because
it attracts liquidity to the Exchange by providing more trading
opportunities. This, in turn, attracts Market-Makers, signaling
additional corresponding increase in order flow from other market
participants, and, as a result, contributing towards a robust, well-
balanced market ecosystem. The Exchange also believes that the waiver
of fees for Customer orders that are less than a specified number of
contracts is reasonable because it is consistent with fees currently in
place for Customer orders in ETF options (including the same
preventative measures regarding the breaking up of orders in footnote
9).\14\ Additionally, the Exchange believes that the proposed routing
fees for Customer orders in XSP are reasonable because they represent
an approximation of the anticipated cost to the Exchange for routing
orders to BZX Options and is consistent with the manner in which fee
codes for routed Customer orders are currently calculated \15\
(including the waiver for those Customer orders originating on an
Exchange-sponsored terminal),\16\ and provided for, in the Fees
Schedule.\17\ The Exchange notes too that routing through the Exchange
is voluntary. The Exchange believes that the proposed transaction fees
and routing fees for Customer orders in XSP are equitable and not
unfairly discriminatory because they will apply automatically and
uniformly to all qualifying (that is, routed, greater than or equal to
10 contracts, etc.) Customer orders. Further, the Exchange believes
that it is equitable and not unfairly discriminatory to provide a lower
transaction and routing rate for Customer orders because, as described
above, Customer liquidity benefits all market participants by providing
more execution opportunities, in turn, attracting Market Maker order
flow, which ultimately enhances market quality on the Exchange to the
benefit of all market participants. The Exchange also notes that 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 multiple other
exchanges.\18\
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    \14\ See supra note 5.
    \15\ See supra note 7.
    \16\ See supra note 8.
    \17\ See generally Cboe Options Fees Schedule, Routing Fees
table; see also Securities Exchange Act Release No. 87873 (December
31, 2019), 85 FR 754 (January 7, 2020) (SR-CBOE-2019-127), which
provides explanation of the exchange's combined calculation of
transaction fees for routed orders.
    \18\ See e.g., NYSE American Options Fee Schedule, Section I.A,
Options Transaction Fees and Credits: Rates for Options
transactions; and MIAX Options Fee Schedule, Section (b)(1),
Proprietary Products Exchange Fees: SPIKES, each of which assesses a
lower transaction fee for customer orders than that of other market
participants.
---------------------------------------------------------------------------

    Lastly, the Exchange believes that the proposed rule change to
remove transactions in XSP from eligibility under the SCORe Program and
add transactions in XSP to, instead, apply under the Marketing Fees
Program, is reasonable because not all Firms are registered for the
SCORe Program. Therefore, removing XSP from SCORe Program eligibility
and, instead, adding it as eligible for the Marketing Fee Program
(which automatically applies to all options unless specifically
excluded, as XSP currently is) is reasonably designed to generate more
customer order flow in XSP by providing incentive to Market-Makers to
submit Customer orders in XSP in order to ultimately receive
reimbursement for such orders. The proposed rule change is reasonable
in that it redirects Exchange resources and funding from the SCORe
Program into the Marketing Fee Program in order to increase incentive
for customer order flow providers to submit customer order flow in XSP,
which, as indicated above, tends to signal an increase in overall
market activity, contributing to deeper, more liquid markets and a
robust market ecosystem that benefits all market participants. The
Exchange believes that assessing a collection fee of $0.25 for XSP
orders in the Marketing Fee Program is reasonable because it is the
same collection fee assessed for Pilot Program classes, which, like
XSP, trade in penny increments. The Exchange believes the proposed rule
change is equitable and not unfairly discriminatory because the
proposed rule change will apply equally to all applicable transactions
in XSP, in that, all Firm orders in XSP will, uniformly, not be
eligible for the SCORe program and all Market-Maker orders in XSP will
be uniformly assessed under, and

otherwise a part of, the Marketing Fee Program.

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

    The Exchange believes the proposed amendments to its Fee Schedule
will not 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 XSP transaction and
routing fee amounts for each separate type of market participant will
be assessed automatically and uniformly to all such market
participants, i.e., all qualifying (that is, routed, greater than or
equal to 10 contracts, etc.). Customer orders in XSP will be assessed
the same amount, all Market-Maker orders in XSP will be assessed the
same amount, and so on. While lower fees are assessed to Customers,
Customer order flow, importantly, provides increased trading
opportunities signaling additional liquidity and ultimately enhancing
overall market quality. As noted above, preferential pricing to
Customers is a long-standing options industry practice. In addition to
this, the proposed rule change to remove XSP from the SCORe Program and
add it to the Marketing Fee Program will apply equally to all
applicable transactions in XSP, in that, all Firm orders in XSP will,
uniformly, not be eligible for the SCORe program and all Market-Maker
orders in XSP will be uniformly assessed under, and otherwise a part
of, the Marketing Fee Program (as almost all other options trading on
the Exchange are). Overall, the proposed rule change is designed to
increase incentive for customer order flow providers to submit customer
order flow in XSP, which, as indicated above, contributes to a more
robust market ecosystem to the benefit of all market participants.
    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
propose fees assessed and rebates offered apply to an Exchange
proprietary product, which are traded exclusively on the Exchange and
the Exchange's affiliated options exchange, BZX Options.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written comments from members or other interested parties.

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 \19\ and paragraph (f) of Rule 19b-4 \20\
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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    \19\ 15 U.S.C. 78s(b)(3)(A).
    \20\ 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2020-108 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-2020-108. 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 (http://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. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2020-108 and should be submitted on
or before December 9, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-25385 Filed 11-17-20; 8:45 am]
BILLING CODE 8011-01-P