FR 2025-03076

The document under review is a notification from the Federal Register concerning a proposal submitted by Cboe EDGX Exchange, Inc. This document communicates the exchange's intention to increase the monthly fee for their 10 Gb physical ports. Filed on February 14, 2025, the proposal has been deemed immediately effective, and the Securities and Exchange Commission (SEC) is seeking public feedback on whether this fee adjustment aligns with the Securities Exchange Act of 1934.

General Summary

Cboe EDGX Exchange, Inc. has proposed an increase in the monthly fees associated with their 10 Gb physical ports. The filing has been made under the Securities Exchange Act and has been given immediate effect, pending any potential intervention from the SEC. The SEC has invited the public to comment on this proposal to ascertain its compliance with the legal frameworks governing fair practices within securities exchanges.

Significant Issues and Concerns

One major concern is the lack of detail regarding the specifics of the fee increase. The document does not state how much the fees will rise, making it challenging for stakeholders and the public to gauge the potential financial implications. Additionally, the document does not clarify why the increase is necessary or how the additional revenue will be used, which may raise questions about the fairness or necessity of the fee hike.

Moreover, the proposal lacks an analysis of its potential impact on various stakeholders, particularly smaller entities that might find these increased costs more burdensome compared to larger firms. This absence of detailed rationale and supporting data may also indicate a lack of transparency, possibly fueling skepticism or concern among those affected.

Impact on the Public

Broadly, the public might perceive this document as an example of how fees in financial markets can change with little notice and minimal explanation. For consumers who engage in trading through these exchanges, any increase in operational costs for brokers might indirectly lead to higher trading fees or service costs—expenses that could eventually be passed down to end-users.

Impact on Specific Stakeholders

For larger firms or frequent users of the exchange's services, the increased fees might be absorbed as part of normal operational costs. These stakeholders often have the resources to manage such adjustments without significant disruption. Conversely, smaller firms or startups that rely on these ports for accessing trading networks might face a disproportionate financial challenge. Such firms typically operate with tighter budget constraints and might have limited capacity to absorb additional costs without impacting their operations or competitiveness.

Conclusion

While the SEC's invitation for public comment is a step toward ensuring transparency and regulatory compliance, the document would benefit from providing more comprehensive details about the scope and implications of the proposed fee increase. Stakeholders and interested members of the public are encouraged to provide feedback and seek further clarification on this matter, considering both the immediate and long-term impacts of such regulatory changes.