Federal Register #Release No. 34-105960, File No. 600-47

SEC Review of Cboe Clear U.S., LLC Application for Temporary Clearing Agency Registration for Binary Options

The Securities and Exchange Commission (SEC) is reviewing an application from Cboe Clear U.S., LLC (CCUS) for temporary registration as a clearing agency to support binary options trading. - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEM/Vendor: - Cboe Clear U.S., LLC (subsidiary of Cboe Global Markets, Inc.) - Products/Services Requested: - Central counterparty clearing services for binary security options, including Binary KPI Options traded on Cboe Exchange - Temporary registration as a clearing agency under Section 17A of the Securities Exchange Act of 1934 - Risk management, technology infrastructure, and account structures for clearing binary options - Fee schedule: $0.0002 per contract for clearing binary options - Notable Requirements: - Clearing members must be registered broker-dealers - CCUS will offer customer, firm, and market-maker clearing accounts - Application includes request for regulatory relief from certain requirements - Public comments on the application are solicited - Only Cboe Clear U.S., LLC is named as the OEM/vendor

Description

The Securities and Exchange Commission has filed a notice regarding the application of Cboe Clear U.S., LLC, for temporary registration as a clearing agency under Section 17A of the Securities Exchange Act of 1934. The application seeks to register Cboe Clear U.S., LLC to provide central counterparty services for binary options that are securities. The notice includes details about the application, the proposed rules, risk management framework, fees, and requests for relief from certain regulatory requirements. The Commission is soliciting comments on the application and request for temporary registration.

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