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Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices a TPH to license the platform. Use of Silexx is completely optional.
The Exchange recently adopted a fee for CAT Files.5 Particularly, Silexx makes Consolidated Audit Trail CAT-formatted files available to Silexx users for orders processed by the user via Silexx applications. Users may also elect to have Silexx, which is a CAT Reporter Agent, submit these files to CAT on their behalf. The Exchange assesses a monthly fee of $250 per CAT
Industry Member ID IMID,6 payable by the trading firm, for CAT Files. The Exchange however currently waives the CAT Files fee for Silexx FLEX and Cboe Silexx. The Exchange now wishes to eliminate the current CAT Files fee waiver and assess the monthly $250 fee to all Silexx users, including Silexx FLEX and Cboe Silexx users. The Exchange proposes to also provide that the CAT Files fee will be assessed per trading firm, instead of per IMID.

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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 6b of the Act.7 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6b5 8 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 6b4 of the Act,9 which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities.
In particular, the Exchange believes eliminating the current CAT File fee waiver for Silexx FLEX and Cboe Silexx 5 See Securities Exchange Release No. 89285 July 10, 2020 85 FR 43284 July 16, 2020 SRCBOE
2020062.
6 CAT uses the IMID to determine the firm for which data is submitted and to facilitate event linkages within a firm and between venues.
7 15 U.S.C. 78fb.
8 15 U.S.C. 78fb5.
9 15 U.S.C. 78fb4.

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users is reasonable as the Exchange believes the CAT File fee is substantially lower than the cost assessed by third-party vendors for similar CAT files and is the same rate for other similar reports i.e., Equity Order Reports. The Exchange notes it is not changing the amount of the CAT
File fee, but rather eliminating the current waiver for Silexx FLEX and Cboe Silexx users. The Exchange believes the elimination of the waiver is reasonable, equitable and not unfairly discriminatory because all users who elect to receive CAT Files will now be subject to the same monthly fee.
Additionally, the Exchange originally adopted the CAT Files fee waiver for Silexx FLEX and Cboe Silexx as such platforms at the time were still relatively new and the Exchange wished to incentivize their use to market participants.10 The Exchange notes that both platforms have now been available to market participants for over a year and therefore the Exchange no longer believes its necessary to continue to provide market participants this particular incentive. The Exchange also believes its reasonable, equitable and not unfairly discriminatory to assess the CAT File fee per trading firm instead of IMID. Particularly, the Exchange notes its reasonable as trading firms with more than one IMID would be subject to less fees for CAT Files.11 Moreover, charging on a per trading firm basis is consistent with how the Exchange assesses fees for other similar reports i.e., Equity Order Reports.
Additionally, the proposed change applies to all users that elect to receive CAT Files. The proposal is equitable and not unfairly discriminatory as it applies to all users of Silexx FLEX and Cboe Silexx uniformly. Finally, the Exchange notes receipt of the CAT Files is completely voluntary and not compulsory. Indeed, all users of Silexx are able to extract the necessary data from Silexx to create a CAT report themselves to comply with their reporting obligations even if they choose not to purchase the optional CAT Files.
B. Self-Regulatory Organizations Statement on Burden on Competition Cboe Options does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The 10 See Securities Exchange Release No. 89285
July 10, 2020 85 FR 43284 July 16, 2020 SR
CBOE2020062.
11 For example, if a trading firm has 2 IMIDs, that trading firm will only be assessed $250 per month, as proposed, as compared to $500 per month under the current methodology 2 $250.

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Exchange believes that the proposed rule change will not impose any burden on intramarket competition because the proposed rule changes apply to all similarly situated users of Silexx uniformly. The Exchange notes that CAT Files are available to all Silexx users, and users have discretion to determine which, if any, types of reports to purchase.
The Exchange does not believe that the proposed rule changes will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed change applies only to Cboe Options and to the ability to receive certain reports from an Exchange system. To the extent that the proposed changes make Cboe Options a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become Cboe Options market participants.
C. Self-Regulatory Organizations 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 19b3A
of the Act 12 and paragraph f of Rule 19b4 13 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.
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:
12 15
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U.S.C. 78sb3A.
CFR 240.19b4f.

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