Statement Summary
Cboe C2 Exchange, Inc. has proposed a rule change to increase the monthly fee for 10 Gb physical ports from $7,500 to $8,500, effective May 20, 2025. This increase aims to maintain and enhance market technology and services amid rising operational costs tied to inflation. Despite the hike, Cboe's rates remain competitive compared to other exchanges, like Nasdaq and NYSE, which charge significantly higher fees. This adjustment is crucial for recouping the Exchange's infrastructure investments and accommodating growing demand for bandwidth, which predominantly features 10 Gb ports. The Exchange emphasizes that this fee structure promotes fairness as it uniformly affects all participants and seeks to uphold competitive integrity in the market. Public comments on the proposal are welcome for review by the Securities and Exchange Commission (SEC). The filing is cataloged under SR-C2-2025-010.
Original Statement
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103084; File No. SR-C2-2025-010]
Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Increase the Monthly fee for 10 Gb Physical Ports
May 20, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) and Rule 19b-4 thereunder, notice is hereby given that on May 9, 2025, Cboe C2 Exchange, Inc. (“Exchange” or “C2”) filed with the SEC the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The SEC is publishing this notice to solicit comments on the proposed rule change from interested persons.
Self-Regulatory Organization’s Statement of the Purpose and Statutory Basis
The Exchange proposes to increase the monthly fee for 10 Gb physical ports. 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, at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room.
1. Purpose
The Exchange proposes to amend its fee schedule relating to physical connectivity fees. A physical port is utilized by a Member or non-Member to connect to the Exchange at the data centers where the Exchange’s servers are located. The Exchange currently assesses the following physical connectivity fees for Trading Permit Holders (“TPHs”) and non-TPHs on a monthly basis: $2,500 per physical port for a 1 gigabit (“Gb”) circuit and $7,500 per physical port for a 10 Gb circuit. The Exchange proposes to increase the monthly fee for 10 Gb physical ports from $7,500 to $8,500 per port.
The proposed fee change better enables the Exchange to continue to maintain and improve its market technology and services and also notes that the proposed fee amount, even as amended, continues to be in line with, or even lower than, amounts assessed by other exchanges for similar connections.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 and the rules and regulations thereunder applicable to the Exchange, and in particular, the requirements of Section 6(b) of the Act. Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 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, and to protect investors and the public interest. Moreover, it believes the proposed rule change is also consistent with Section 6(b)(4) of the Act, which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Members and other persons using its facilities.
The Exchange believes that this proposal is reasonable as it reflects a moderate increase in physical connectivity fees for 10 Gb physical ports and its offering, even as amended, continues to be more affordable compared to analogous physical connectivity offerings at competitor exchanges.
Public Comments and Commission Action
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 the following methods:
- Electronic Comments:
Use the Commission’s internet comment form or send an email to rule-comments. Please include file number SR-C2-2025-010 on the subject line. - Paper Comments:
Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-C2-2025-010 and should be submitted on or before [INSERT DATE 21 DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL REGISTER].
Conclusion
The proposed increase in the fee for 10 Gb physical ports is aimed at supporting the ongoing operational costs and investments in market technology, while remaining competitive within the market context. As the Exchange continually evolves, public feedback is welcomed to ensure transparency and maintain trust within the financial ecosystem.
