Cboe C2 Exchange reduces catastrophic error fee to $500

On September 1 2026 Cboe C2 Exchange filed a proposed rule change with the SEC to amend Exchange Rule 6.5. The amendment eliminates the $5,000 charge that currently applies to a catastrophic error review and replaces it with a $500 fee when the Obvious Error Panel or Catastrophic Error Panel upholds the decision under review. The change becomes effective September 1 2026 under Section 19(b)(3)(A).

The new Rule 6.5(k)(5) and Rule 6.5(l)(5) would assess the $500 fee against the Trading Permit Holder(s) who initiated the appeal. The fee mirrors the $500 assessed under Cboe BZX Exchange and Cboe EDGX Exchange Rule 20.6 for similar panel decisions. The Exchange describes the fee as a nominal administrative charge intended to discourage unfounded appeals.

The filing, identified as Release No. 34-106312 and File No. SR-C2-2026-025, was published in the Federal Register on September 14 2026. The SEC may summarily suspend the rule change within 60 days of filing if it deems such action necessary for the public interest or investor protection. If suspended, the Commission will commence proceedings to determine approval.

Interested persons may submit comments electronically via the SEC's internet comment form or by email, referencing file number SR-C2-2026-025. Paper comments may be sent in triplicate to the SEC Secretary. All comments will be posted on the SEC website.