Federal Register #SR-CBOE-2026-075

SEC Notice: Cboe and Nasdaq Propose Rule Changes for Protocol Migration and Disciplinary Proceedings

This notice summarizes proposed regulatory changes by Cboe Exchange, Inc. and The Nasdaq Stock Market LLC, as published by the Securities and Exchange Commission (SEC): - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors Mentioned: - Cboe Exchange, Inc. - The Nasdaq Stock Market LLC - Products/Services Requested: - No physical products or part numbers are requested; the notice concerns regulatory programs and amendments - Cboe Exchange proposes an Order Entry Protocol Migration Program, offering fee credits to Trading Permit Holders (TPHs) who establish redundant logical ports as backup connections during Exchange-initiated protocol migrations - Fee credits apply only if the backup port is used solely for migration, the Exchange is notified, and the port is cancelled within 30 days - Nasdaq proposes a rule amendment allowing its Regulation Department staff, in addition to FINRA staff, to initiate summary disciplinary proceedings - Unique or Notable Requirements: - Cboe's program is designed to reduce operational risk and migration costs for TPHs, ensuring continuity of access during protocol changes - Fee credits are contingent on strict compliance with notification and cancellation requirements - Nasdaq's amendment expands authority for initiating disciplinary proceedings, requiring written authorization from the Chief Regulatory Officer - **No procurement of goods or services is involved; this is a regulatory notice, not a purchasing opportunity.

Description

This notice announces a proposed rule change by Cboe Exchange, Inc. to amend its fee schedule by implementing an Exchange Order Entry Protocol Migration Program. The program provides fee credits to Trading Permit Holders (TPHs) who establish redundant logical ports as backup connections during an Exchange-initiated order entry protocol migration. The credits apply under specific conditions to support continuity of access and reduce migration-related costs for TPHs. The rule change aims to promote equitable treatment, reduce operational risk, and foster competition among exchanges.

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