Federal Register #SR-CboeBZX-2026-058

SEC Notice: Proposed Rule Changes by Cboe BZX Exchange and MIAX Emerald on Order Reviews and Regulatory Fees

This notice details proposed rule changes by two major securities exchanges, as published by the Securities and Exchange Commission (SEC): - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors: - No Original Equipment Manufacturers (OEMs) or commercial vendors are referenced - Products/Services Requested: - Amendment to the definition of 'Professional' by Cboe BZX Exchange, Inc.: - Requires monthly (instead of quarterly) reviews of customer orders to determine 'Professional' status for those averaging more than 390 orders per day - Aims to improve the timeliness and accuracy of order designations for compliance purposes - Options Regulatory Fee (ORF) Amendment by MIAX Emerald, LLC: - Sets the ORF rate to $0.0220 per contract side - Clarifies the methodology for fee collection on options transactions cleared in the customer range at the Options Clearing Corporation (OCC) - Unique or Notable Requirements: - Both proposals are procedural and regulatory in nature, focusing on internal compliance, order classification, and fee methodology - No procurement of products, hardware, or commercial services is involved - No part numbers or purchase quantities are specified

Description

The Securities and Exchange Commission has announced the filing and immediate effectiveness of a proposed rule change by Cboe BZX Exchange, Inc. to amend the definition of Professional to require monthly reviews of orders. The proposal shortens the review period from quarterly to monthly for determining whether orders should be designated as Professional orders based on the average number of orders per day. This change aims to ensure more timely and accurate designation of Professional orders, maintaining fair competition and market integrity. The rule change does not impose additional burdens on Options Members as the necessary calculations are already performed daily.

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