Cboe BYX updates Trading Platform definition in fee schedule
The amendment, effective immediately upon filing on October 19, 2026, binds all Cboe BYX members and users of platforms now classified as Trading Platforms.
On October 19, 2026, Cboe BYX Exchange, Inc. filed a proposed rule change (File No. SR-CboeBYX-2026-040; Release No. 34-106712) to amend its Fee Schedule and update the definition of "Trading Platform." The notice, published in the Federal Register on October 21, 2026 (Vol. 91, No. 205, pp. 67373-67375; FR Doc No. 2026-21747), solicits comments and states that the change is effective immediately.
The current definition limits a Trading Platform to a registered National Securities Exchange, an Alternative Trading System, or an Electronic Communications Network. The proposed amendment adds a functional, use-based category: any other system, facility, or platform - such as a broker crossing system not filed as an ATS, a systematic internalization system, or a decentralized blockchain-based or tokenized environment - through which orders of persons other than the operator are systematically executed by electronic means. The text of the amendment is set forth in Exhibit 5 and is available on the SEC and Exchange websites.
The Exchange explains that the change is intended to capture emerging execution venues that perform the same function as legacy platforms, ensuring consistent fee treatment. Under the existing schedule, a Trading Platform incurs a fee of $2,000/month for BYX Depth for Non-Display Usage, whereas a non-Trading Platform is charged $1,000/month. By expanding the definition, the Exchange seeks to apply the higher fee uniformly to functionally equivalent venues.
Statutorily, the Exchange cites Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4, along with Sections 6(b), 6(b)(4) and 6(b)(5) of the Act (15 U.S.C. 78f(b), 78f(b)(4), 78f(b)(5)), to support the equitable allocation of dues and the prohibition of unfair discrimination among members and users.
The amendment supersedes an earlier filing submitted on September 1, 2026 (SR-CboeBYX-2026-031), which the Exchange withdrew on October 19, 2026 before submitting the revised proposal.
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