Cboe EDGX adds fee-credit program for backup logical ports
Exchange members receive credits for redundant ports during protocol migrations, effective immediately upon filing on Aug. 20, 2026
The Cboe EDGX Exchange, Inc. filed a proposed rule change on August 20, 2026 (Release No. 34-106251; File No. SR-CboeEDGX-2026-056) that amends its fee schedule to implement an Order Entry Protocol Migration Program. The notice, published September 1, 2026 in the Federal Register (Vol. 91, No. 171, pp. 56926-56928, FR Doc No. 2026-18109), states that the amendment is effective immediately.
Under the program, a Member - defined as any registered broker or dealer admitted to membership - may establish a "Redundant Logical Port" as a backup during an Exchange-initiated migration from a prior protocol (e.g., BOEv2) to a new protocol (e.g., BOEv3). The Member must (i) notify the Exchange's Trade Desk that the port is for backup use, (ii) cancel the port within 30 calendar days, (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 after cancellation. If the Exchange confirms compliance, it will credit the monthly logical-port fee to the Member's invoice for the billing cycle following confirmation.
The Exchange asserts the rule change is consistent with Section 6(b)(5) of the Securities Exchange Act of 1934, emphasizing that the credit is tied to Exchange-driven migrations and not to Member-initiated changes. By limiting credits to backup ports created because of Exchange-initiated protocol updates, the Exchange aims to offset fees that would otherwise be assessed for ports that are not used under normal circumstances.
Comments on the proposed rule change are being solicited from interested persons as required by Section 19(b)(1) of the Act and Rule 19b-4.
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