Cboe BZX Implements Fee Credit Program for Backup Logical Ports
Effective immediately, the rule change credits BZX members for backup logical-port fees incurred during exchange-initiated order-entry protocol migrations.
On August 28, 2026, Cboe BZX Exchange, Inc. filed a proposed rule change (Release No. 34-106221; File No. SR-CboeBZX-2026-068) with the Securities and Exchange Commission under Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4. The filing, made on August 20, 2026, amends the Exchange's fee schedule to establish an Order Entry Protocol Migration Program.
The Program provides a credit of the monthly logical-port fee for any "Redundant Logical Port" a Member creates solely as a backup during an Exchange-initiated migration from a prior protocol (e.g., BOEv2) to a new protocol (e.g., BOEv3). To qualify, the Member must (i) notify the Exchange's Trade Desk that the port is a backup, (ii) cancel the port within 30 calendar days of designation, (iii) use the port only for orders or quotes caused by an Exchange issue related to the migration, and (iv) submit a credit request within 30 days of cancellation.
Upon receipt of the request, the Exchange reviews the port's usage to confirm compliance with the four conditions. If satisfied, the Exchange applies the fee credit to the Member's invoice for the billing cycle following the Exchange's confirmation.
The Exchange cites statutory authority under the Act, specifically Section 6(b)(5) and 6(b)(4), asserting that the rule change promotes equitable fee allocation, prevents unfair discrimination, and supports a free and open market by removing a financial disincentive for Members to maintain backup connectivity during a migration.
The notice is published for comment under the Commission's standard procedures, but the rule change is effective immediately upon filing.
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