<NOTICE>
SECURITIES AND EXCHANGE COMMISSION
<DEPDOC>[Release No. 34-103696; File No. SR-CBOE-2025-057]</DEPDOC>
<SUBJECT>Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Certain Lead Market-Maker (“LMM”) Incentive Programs by Increasing or Decreasing Quote Width and Size Requirements, and Increasing or Decreasing Rebate Amounts, as Applicable, and To Amend the Fees Schedule To Include Further Clarifying Information Regarding the Operation of Its LMM Incentive Programs</SUBJECT>
<DATE>August 13, 2025.</DATE>
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
<SU>1</SU>
<FTREF/>
and Rule 19b-4 thereunder,
<SU>2</SU>
<FTREF/>
notice is hereby given that on August 7, 2025, 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.
<FTNT>
<SU>1</SU>
15 U.S.C. 78s(b)(1).
</FTNT>
<FTNT>
<SU>2</SU>
17 CFR 240.19b-4.
</FTNT>
<HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
Cboe Exchange, Inc. (the “Exchange” or “Cboe Options”) proposes to amend certain Lead Market-Maker (“LMM”) Incentive Programs by increasing or decreasing quote width and size requirements, and increasing or decreasing rebate amounts, as applicable, and to amend the Fees Schedule to include further clarifying information regarding the operation of its LMM Incentive Programs. 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 (
<E T="03">https://www.cboe.com/us/options/regulation/rule_filings/</E>
) and at the Exchange's Office of the Secretary.
<HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
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.
<HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
<HD SOURCE="HD3">1. Purpose</HD>
The Exchange proposes to amend its Fees Schedule.
<SU>3</SU>
<FTREF/>
<FTNT>
<SU>3</SU>
The Exchange initially filed the proposed fee changes on August 1, 2025 (SR-CBOE-2025-052). On August 7, 2025, the Exchange withdrew that filing and submitted SR-CBOE-2025-057.
</FTNT>
The Exchange proposes to amend its Fees Schedule in connection with certain LMM Incentive Programs. Specifically, the Exchange proposes to amend its Global Trading Hours (“GTH”) Cboe Volatility Index (“VIX”) options and VIX Weekly (“VIXW”) options LMM Incentive Programs, GTH S&P 500 Index (“SPX”) options and SPX Weekly (“SPXW”) options LMM Incentive Programs, GTH Mini-SPX Index (“XSP”) options LMM Incentive Programs, Cboe Mini Bitcoin U.S. ETF Index (“MBTX”) options and MBTX Weekly (“MBTXW”) options LMM Incentive Program, Cboe Bitcoin U.S. ETF Index (“CBTX”) options and CBTX Weekly (“CBTXW”) options LMM Incentive Program, and S&P 500 Equal Weight Index (“SPEQX”) options LMM Incentive Program.
All LMM Incentive Programs provide a rebate to Trading Permit Holders (“TPHs”) with LMM appointments to the respective incentive program that meet certain quoting standards in the applicable series in a month. The Exchange notes that meeting or exceeding the quoting standards (both current and as proposed; described in further detail below) in each of the LMM Incentive Program products to receive the applicable rebate (both currently offered and as proposed; described in further detail below) is optional for an LMM appointed to a program. Particularly, an LMM appointed to an incentive program is eligible to receive the corresponding rebate if it satisfies the applicable quoting standards, which the Exchange believes encourages appointed LMMs to provide liquidity in the applicable class and trading session (
<E T="03">i.e.,</E>
Regular Trading Hours (“RTH”) or GTH). The Exchange may consider other exceptions to the programs' quoting standards based on demonstrated legal
or regulatory requirements or other mitigating circumstances. In calculating whether an LMM appointed to an incentive program meets the applicable program's quoting standards each month, the Exchange excludes from the calculation in that month the business day in which the LMM missed meeting or exceeding the quoting standards in the highest number of the applicable series.
<HD SOURCE="HD3">GTH VIX/VIXW LMM Incentive Program</HD>
The Exchange proposes to amend the GTH VIX/VIXW LMM Incentive Program. The proposed program provides that, if the appointed LMM provides continuous electronic quotes during GTH (
<E T="03">i.e.,</E>
from 7:15pm CST to 8:25am CST the next day) that meet or exceed the VIXW and VIX basic quoting standards
<SU>4</SU>
<FTREF/>
in at least 95% of each of the VIX and VIXW series, 90% of the time in a given month, the LMM will receive a rebate for that month in the amount of $25,000 for VIX and $10,000 for VIXW (or pro-rated amount if an appointment begins after the first trading day of the month or ends prior to the last trading day of the month) for that month.
<FTNT>
<SU>4</SU>
Located in the “GTH VIX/VIXW LMM Incentive Program” table in the Fees Schedule.
</FTNT>
The Exchange proposes to adopt a new set of VIX heightened basic quoting standards (below) under the GTH VIX/VIXW LMM Incentive Program (new proposed widths are denoted with an asterisk).
<GPOTABLE COLS="9" OPTS="L2,tp0,i1" CDEF="s25,10,10,10,10,10,10,10,10">
<TTITLE> </TTITLE>
<CHED H="1">Premium level</CHED>
<CHED H="1">Expiring</CHED>
<CHED H="2">Less than 15 days</CHED>
<CHED H="3">Width</CHED>
<CHED H="3">Size</CHED>
<CHED H="1">Near term</CHED>
<CHED H="2">15 days to 60 days</CHED>
<CHED H="3">Width</CHED>
<CHED H="3">Size</CHED>
<CHED H="1">Mid term</CHED>
<CHED H="2">61 days to 180 days</CHED>
<CHED H="3">Width</CHED>
<CHED H="3">Size</CHED>
<CHED H="1">Long term</CHED>
<CHED H="2">181 days or Greater</CHED>
<CHED H="3">Width</CHED>
<CHED H="3">Size</CHED>
<ROW EXPSTB="08" RUL="s">
<ENT I="21">
<E T="02">VIX Value at Prior Close <18</E>
</ENT>
</ROW>
<ROW EXPSTB="00">
<ENT I="01">$0.00-$1.00</ENT>
<ENT>$0.20</ENT>
<ENT>30</ENT>
<ENT>$0.16</ENT>
<ENT>40</ENT>
<ENT>$0.20</ENT>
<ENT>30</ENT>
<ENT>$0.50</ENT>
<ENT>5</ENT>
</ROW>
<ROW>
<ENT I="01">$1.01-$3.00</ENT>
<ENT>0.30</ENT>
<ENT>20</ENT>
<ENT>0.25</ENT>
<ENT>25</ENT>
<ENT>0.25</ENT>
<ENT>15</ENT>
<ENT>0.70</ENT>
<ENT>5</ENT>
</ROW>
<ROW>
<ENT I="01">$3.01-$5.00</ENT>
<ENT>0.40</ENT>
<ENT>15</ENT>
<ENT>0.30</ENT>
<ENT>15</ENT>
<ENT>0.40</ENT>
<ENT>10</ENT>
<ENT>1.00</ENT>
<ENT>5</ENT>
</ROW>
<ROW>
<ENT I="01">$5.01-$10.00</ENT>
<ENT>0.80</ENT>
<ENT>10</ENT>
<ENT>* 0.90</ENT>
<ENT>10</ENT>
<ENT>2.00</ENT>
<ENT>10</ENT>
<ENT>2.00</ENT>
<ENT>5</ENT>
</ROW>
<ROW>
<ENT I="01">$10.01-$30.00</ENT>
<ENT>* 1.80</ENT>
<ENT>5</ENT>
<ENT>* 1.40</ENT>
<ENT>5</ENT>
<ENT>* 1.80</ENT>
<ENT>5</ENT>
<ENT>3.00</ENT>
<ENT>3</ENT>
</ROW>
<ROW RUL="s">
<ENT I="01">Greater than $30.00</ENT>
<ENT>* 4.50</ENT>
<ENT>3</ENT>
<ENT>* 4.50</ENT>
<ENT>3</ENT>
<ENT>* 4.50</ENT>
<ENT>3</ENT>
<ENT>5.00</ENT>
<ENT>3</ENT>
</ROW>
<ROW EXPSTB="08" RUL="s">
<ENT I="21">
<E T="02">VIX Value at Prior Close from 18-25</E>
</ENT>
</ROW>
<ROW EXPSTB="00">
<ENT I="01">$0.00-$1.00</ENT>
<ENT>0.30</ENT>
<ENT>15</ENT>
<ENT>0.30</ENT>
<ENT>30</ENT>
<ENT>0.30</ENT>
<ENT>15</ENT>
<ENT>1.00</ENT>
<ENT>5</ENT>
</ROW>
<ROW>
<ENT I="01">$1.01-$3.00</ENT>
<ENT>0.35</ENT>
<ENT>10</ENT>
<ENT>0.35</ENT>
<ENT>20</ENT>
<ENT>0.40</ENT>
<ENT>10</ENT>
<ENT>1.00</ENT>
<ENT>5</ENT>
</ROW>
<ROW>
<ENT I="01">$3.01-$5.00</ENT>
<ENT>0.50</ENT>
<ENT>5</ENT>
<ENT>0.50</ENT>
<ENT>15</ENT>
<ENT>0.60</ENT>
<ENT>5</ENT>
<ENT>1.30</ENT>
<ENT>5</ENT>
</ROW>
<ROW>
<ENT I="01">$5.01-$10.00</ENT>
<ENT>* 1.00</ENT>
<ENT>5</ENT>
<ENT>* 1.00</ENT>
<ENT>5</ENT>
<ENT>1.50</ENT>
<ENT>5</ENT>
<ENT>2.20</ENT>
<ENT>5</ENT>
</ROW>
<ROW>
<ENT I="01">$10.01-$30.00</ENT>
<ENT>* 2.50</ENT>
<ENT>1</ENT>
<ENT>* 2.50</ENT>
<ENT>1</ENT>
<ENT>* 2.50</ENT>
<ENT>1</ENT>
<ENT>5.00</ENT>
<ENT>1</ENT>
</ROW>
<ROW RUL="s">
<ENT I="01">Greater than $30.00</ENT>
<ENT>* 5.00</ENT>
<ENT>1</ENT>
<ENT>* 5.00</ENT>
<ENT>1</ENT>
<ENT>* 5.00</ENT>
<ENT>1</ENT>
<ENT>* 8.00</ENT>
<ENT>1</ENT>
</ROW>
<ROW EXPSTB="08" RUL="s">
<ENT I="21">
<E T="02">VIX Value at Prior Close from >25</E>
</ENT>
</ROW>
<ROW EXPSTB="00">
<ENT I="01">$0.00-$1.00</ENT>
<ENT>0.80</ENT>
<ENT>10</ENT>
<ENT>0.50</ENT>
<ENT>10</ENT>
<ENT>0.60</ENT>
<ENT>10</ENT>
<ENT>1.20</ENT>
<ENT>5</ENT>
</ROW>
<ROW>
<ENT I="01">$1.01-$3.00</ENT>
<ENT>1.00</ENT>
<ENT>10</ENT>
<ENT>0.75</ENT>
<ENT>10</ENT>
<ENT>1.00</ENT>
<ENT>10</ENT>
<ENT>1.20</ENT>
<ENT>5</ENT>
</ROW>
<ROW>
<ENT I="01">$3.01-$5.00</ENT>
<ENT>1.20</ENT>
<ENT>5</ENT>
<ENT>0.90</ENT>
<ENT>10</ENT>
<ENT>1.20</ENT>
<ENT>5</ENT>
<ENT>1.80</ENT>
<ENT>5</ENT>
</ROW>
<ROW>
<ENT I="01">$5.01-$10.00</ENT>
<ENT>2.00</ENT>
<ENT>5</ENT>
<ENT>1.50</ENT>
<ENT>5</ENT>
<ENT>2.50</ENT>
<ENT>5</ENT>
<ENT>3.00</ENT>
<ENT>3</ENT>
</ROW>
<ROW>
<ENT I="01">$10.01-$30.00</ENT
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