Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule Relating to the Sale of Historical Intraday Open-Close Volume Data, 33446-33448 [2021-13283]
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Federal Register / Vol. 86, No. 119 / Thursday, June 24, 2021 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–13248 Filed 6–23–21; 8:45 am]
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92169; File No. SR–CBOE–
2021–038]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Its Fees
Schedule Relating to the Sale of
Historical Intraday Open-Close Volume
Data
June 14, 2021.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 1,
2021, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options) proposes to amend its
Fees Schedule relating to the sale of
historical Intraday Open-Close volume
data. The text of the proposed rule
change is provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/CBOELegalRegulatory
Home.aspx), at the Exchange’s Office of
the Secretary, and at the Commission’s
Public Reference Room.
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
31 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
1. Purpose
The Exchange proposes to amend its
Fees Schedule to offer a free trial during
the months of June and July 2021 for an
ad-hoc request of three (3) historical
months of Intraday Open-Close
historical data to all Cboe Options
Trading Permit Holders (‘‘TPHs’’) and
non-TPHs who have never before
subscribed to the Intraday Open-Close
historical files.
By way of background, the Exchange
historically offered Open-Close Data,
which is an end-of-day volume
summary of trading activity on the
Exchange at the option level by origin
(customer, professional customer,
broker-dealer, and market maker), side
of the market (buy or sell), price, and
transaction type (opening or closing).
The customer and professional customer
volume is further broken down into
trade size buckets (less than 100
contracts, 100–199 contracts, greater
than 199 contracts). The Open-Close
Data is proprietary Cboe Options trade
data and does not include trade data
from any other exchange. It is also a
historical data product and not a realtime data feed. The recently adopted
Intraday Open-Close Data provides
similar information to that of OpenClose Data but is produced and updated
every 10 minutes during the trading
day. Data is captured in ‘‘snapshots’’
taken every 10 minutes throughout the
trading day and is available to
subscribers within five minutes of the
conclusion of each 10-minute period.3
The Intraday Open-Close Data provides
a volume summary of trading activity on
the Exchange at the option level by
origin (customer, professional customer,
broker-dealer, and market maker), side
of the market (buy or sell), and
transaction type (opening or closing).
The customer and professional customer
volume are further broken down into
3 For example, subscribers to the intraday product
will receive the first calculation of intraday data by
approximately 9:42 a.m. ET, which represents data
captured from 9:30 a.m. to 9:40 a.m. Subscribers
will receive the next update at 9:52 a.m.,
representing the data previously provided together
with data captured from 9:40 a.m. through 9:50
a.m., and so forth. Each update will represent the
aggregate data captured from the current
‘‘snapshot’’ and all previous ‘‘snapshots.’’
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trade size buckets (less than 100
contracts, 100–199 contracts, greater
than 199 contracts). The Intraday OpenClose Data is also proprietary Cboe
Options trade data and does not include
trade data from any other exchange.
Cboe LiveVol, LLC (‘‘LiveVol’’), a
wholly owned subsidiary of the
Exchange’s parent company, Cboe
Global Markets, Inc., makes the Intraday
Open-Close Data available for purchase
to TPHs and non-TPHs on the LiveVol
DataShop website (datashop.cboe.com).
Customers may currently purchase
Intraday Open-Close Data on a
subscription basis (monthly or annually)
or by ad hoc request for a specified
month (e.g., request for Intraday OpenClose Data for month of January 2021).
The Exchange seeks only to adopt a free
trial for historical ad hoc requests for
Intraday Open-Close Data for new
purchasers. Currently, ad hoc requests
for historical Intraday Open-Close Data
are available to all customers at the
same price and in the same manner. The
current charge for this historical
Intraday Open-Close Data covering all of
the Exchange’s securities (Equities,
Indexes & ETF’s) is $1,000 per month.
The Exchange now proposes to adopt a
free trial available during the months of
June and July 2021 to provide up to
three (3) historical months of Intraday
Open-Close Data to any TPH or nonTPH that has not previously subscribed
to this offering.4 The Exchange believes
the proposed trial will serve as an
incentive for new users to start
purchasing Intraday Open-Close
historical data. Particularly, the
Exchange believes it will give potential
subscribers the ability to use and test
the data offering before signing up for
additional months. The Exchange also
notes another exchange offers a free trial
for new subscribers of a similar data
product.5 Lastly, the purchase of
Intraday Open-Close historical data is
discretionary and not compulsory.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
4 For example, if a TPH or non-TPH that has never
made an ad-hoc request for a specified month of
Intraday Open-Close historical data wishes to
purchase Intraday Open-Close Data for the months
of January, February and March 2021 during the
month of June 2021, the historical files for those
months would be provided free of charge. If a new
user wishes to purchase Intraday Open-Close
historical data for the months of January, February,
March and April 2021 during the month of June
2021, then the data for January, February and March
2021 would be provided free of charge, and the new
user would be charged $1,000 for the April 2021
historical file.
5 See Nasdaq ISE, Options 7 Pricing Schedule,
Section 10A., Nasdaq ISE Open/Close Trade Profile
End of Day.
E:\FR\FM\24JNN1.SGM
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Federal Register / Vol. 86, No. 119 / Thursday, June 24, 2021 / Notices
the objectives of Section 6 of the Act,6
in general, and furthers the objectives of
Section 6(b)(4),7 in particular, as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its Members and
issuers and other persons using its
facilities. The Exchange also believes
that the proposed rule change is
consistent with the objectives of Section
6(b)(5) 8 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest, and,
particularly, is not designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 9 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the Exchange believes
that the proposed free trial for any TPH
or non-TPH who has not previously
purchased Intraday Open-Close
historical data is reasonable because
such users would not be subject to fees
for up to 3 months’ worth of Intraday
Open-Close historical data. The
Exchange believes the proposed free
trial is also reasonable as it will give
potential subscribers the ability to use
and test the Intraday Open-Close
historical data prior to purchasing
additional months and will therefore
encourage and promote new users to
purchase the Intraday Open-Close
historical data. The Exchange believes
that the proposed discount is equitable
and not unfairly discriminatory because
it will apply equally to all TPHs and
non-TPHs who have not previously
purchased Intraday Open-Close
historical data. Lastly, as noted above,
another exchange offers a free trial to
new users for a similar data product 10
and purchase of this data product is
discretionary and not compulsory.
U.S.C. 78f.
U.S.C. 78f(b)(4).
8 15 U.S.C. 78f.(b)(5).
9 Id.
10 See Nasdaq ISE, Options 7 Pricing Schedule,
Section 10A., Nasdaq ISE Open/Close Trade Profile
End of Day.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
change should be approved or
disapproved.
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe that the
proposed rule change will impose any
burden on intramarket competition that
is not necessary or appropriate in
furtherance of the purposes of the Act
because the proposed rule change will
apply to all TPHs and non-TPHs who
have never made an ad-hoc request to
purchase Intraday Open-Close historical
data. Moreover, purchase of Intraday
Open-Close historical files is
discretionary and not compulsory.
The Exchange does not believe that
the proposed rule changes will impose
any burden on intermarket competition
that is not necessary or appropriate in
furtherance of the purposes of the Act
because the proposed change applies
only to Cboe Options. Furthermore,
another exchange currently offers a
similar free trial to new users of a
similar data product.11
IV. Solicitation of Comments
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 12 of the Act and
subparagraph (f)(2) of Rule 19b–4 13
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 14 of the Act to
determine whether the proposed rule
6 15
7 15
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11 See Nasdaq ISE, Options 7 Pricing Schedule,
Section 10A., Nasdaq ISE Open/Close Trade Profile
End of Day.
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(2).
14 15 U.S.C. 78s(b)(2)(B).
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33447
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CBOE–2021–038 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2021–038. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–CBOE–2021–038 and
should be submitted on or before July
15, 2021.
E:\FR\FM\24JNN1.SGM
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33448
Federal Register / Vol. 86, No. 119 / Thursday, June 24, 2021 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–13283 Filed 6–23–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92207; File Nos. SR–BX–
2021–018; SR–C2–2021–008; SR–CBOE–
2021–030; SR-CboeBYX–2021–011; SRCboeBZX–2021–034; SR-CboeEDGA–2021–
010; SR-CboeEDGX–2021–024; SR–GEMX–
2021–03; SR–ISE–2021–08; SR–MRX–2021–
05; SR–NASDAQ–2021–029; SR–PHLX–
2021–25]
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Cboe BZX
Exchange, Inc.; Cboe C2 Exchange,
Inc.; Cboe EDGA Exchange, Inc.; Cboe
EDGX Exchange, Inc.; Cboe Exchange,
Inc.; NASDAQ BX, Inc.; Nasdaq GEMX,
LLC; Nasdaq ISE, LLC; Nasdaq MRX,
LLC; NASDAQ PHLX LLC and The
NASDAQ Stock Market LLC;
Suspension of and Order Instituting
Proceedings To Determine Whether To
Approve or Disapprove Proposed Rule
Changes To Adopt a Fee Schedule To
Establish Fees for Industry Members
Related to the National Market System
Plan Governing the Consolidated Audit
Trail
June 17, 2021.
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I. Introduction
On April 21, 2021, Cboe BYX
Exchange, Inc. (‘‘CboeBYX’’), Cboe BZX
Exchange, Inc. (‘‘CboeBZX’’), Cboe C2
Exchange, Inc. (‘‘C2’’), Cboe EDGA
Exchange, Inc. (‘‘Cboe EDGA’’), Cboe
EDGX Exchange, Inc. (‘‘Cboe EDGX’’),
Cboe Exchange, Inc. (‘‘Cboe’’), NASDAQ
BX, Inc. (‘‘BX’’), Nasdaq GEMX, LLC
(‘‘GEMX’’), Nasdaq ISE, LLC (‘‘ISE’’),
Nasdaq MRX, LLC (‘‘MRX’’), NASDAQ
PHLX LLC (‘‘Phlx’’), The NASDAQ
Stock Market LLC (‘‘Nasdaq’’)
(collectively, the ‘‘Nasdaq and Cboe
Participants’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 proposed rule changes 3 to
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release Nos. 91750
(May 4, 2021), 86 FR 25045 (May 10, 2021) (SR–
BX–2021–018) (‘‘Notice’’); 91751 (May 4, 2021), 86
FR 24941 (May 10, 2021) (SR–PHLX–2021–25);
91752 (May 4, 2021), 86 FR 24921 (May 10, 2021)
(SR–NASDAQ–2021–029); 91753 (May 4, 2021), 86
FR 24994 (May 10, 2021) (SR–MRX–2021–05);
1 15
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19:19 Jun 23, 2021
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adopt a fee schedule to establish fees for
Industry Members 4 related to the
National Market System Plan Governing
the Consolidated Audit Trail (‘‘CAT
NMS Plan’’ or ‘‘Plan’’).5 The proposed
rule changes were immediately effective
upon filing with the Commission
pursuant to Section 19(b)(3)(A) of the
Act.6 The proposed rule changes were
published for comment in the Federal
Register on May 10, 2021.7 The
Commission has received no comments
on the proposed rule changes.
Pursuant to Section 19(b)(3)(C) of the
Act, the Commission is hereby: (1)
Temporarily suspending the proposed
rule changes; and (2) instituting
proceedings to determine whether to
approve or disapprove the proposals.
II. Summary of the Proposed Rule
Changes 8
In July 2012, the Commission adopted
Rule 613 of Regulation NMS, which
required national securities exchanges
and national securities associations
(‘‘Participants’’) 9 to jointly develop and
91755 (May 4, 2021), 86 FR 25035 (May 10, 2021)
(SR–ISE–2021–08); 91756 (May 4, 2021), 86 FR
24979 (May 10, 2021) (SR–GEMX–2021–03); 91757
(May 4, 2021), 86 FR 24911 (May 10, 2021) (SR–
C2–2021–008); 91758 (May 4, 2021), 86 FR 25004
(May 10, 2021) (SR-CboeEDGX–2021–024); 91759
(May 4, 2021), 86 FR 24956 (May 10, 2021) (SRCboeEDGA–2021–010); 91760 (May 4, 2021), 86 FR
24966 (May 10, 2021) (SR–CBOE–2021–030); 91761
(May 4, 2021), 86 FR 25016 (May 10, 2021) (SRCboeBYX–2021–011); and 91762 (May 4, 2021), 86
FR 24931 (May 10, 2021) (SR-CboeBZX–2021–034).
4 The CAT NMS Plan defines ‘‘Industry Member’’
as ‘‘a member of a national securities exchange or
a member of a national securities association.’’ See
CAT NMS Plan, infra note 5, at Section 1.1.
5 The CAT NMS Plan is a national market system
plan approved by the Commission pursuant to
Section 11A of the Act and the rules and
regulations thereunder. See Securities Exchange Act
Release No. 79318 (November 15, 2016), 81 FR
84696 (November 23, 2016). The CAT NMS Plan
functions as the limited liability company
agreement of the jointly owned limited liability
company formed under Delaware state law through
which the Participants conduct the activities of the
CAT (‘‘Company’’). On August 29, 2019, the
Participants replaced the CAT NMS Plan in its
entirety with the limited liability company
agreement of a new limited liability company
named Consolidated Audit Trail, LLC, which
became the Company. See Securities Exchange Act
Release No. 87149 (September 27, 2019), 84 FR
52905 (October 3, 2019).
6 15 U.S.C. 78s(b)(3)(A). A proposed rule change
may take effect upon filing with the Commission if
it is designated by the exchange as ‘‘establishing or
changing a due, fee, or other charge imposed by the
self-regulatory organization on any person, whether
or not the person is a member of the self-regulatory
organization.’’ 15 U.S.C. 78s(b)(3)(A)(ii).
7 See supra note 3.
8 For a more detailed description of the proposed
rule changes, see Notice, supra note 3.
9 The Participants include BOX Exchange LLC,
Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc.,
Cboe C2 Exchange, Inc., Cboe EDGA Exchange, Inc.,
Cboe EDGX Exchange, Inc., Cboe Exchange, Inc.,
Financial Industry Regulatory Authority, Inc.,
Investors’ Exchange LLC, Long-Term Stock
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Frm 00243
Fmt 4703
Sfmt 4703
submit to the Commission a national
market system plan (‘‘NMS plan’’) to
create, implement, and maintain a
consolidated audit trail (‘‘CAT’’) 10 that
would capture customer and order event
information for orders in NMS
securities. On November 15, 2016, the
Commission approved the CAT NMS
Plan required by Rule 613.11 Under the
CAT NMS Plan, the Operating
Committee of a newly formed
company—CAT NMS, LLC, of which
each Participant is a member—has the
discretion (subject to the funding
principles set forth in the CAT NMS
Plan) to establish funding for the
Company to operate the CAT, including
establishing fees to be paid by the
Participants and Industry Members.12
The Plan specified that, in
establishing the funding of the
Company, the Operating Committee
shall establish ‘‘a tiered fee structure in
which the fees charged to: (i) CAT
Reporters that are Execution Venues,
including ATSs, are based upon the
level of market share; (ii) Industry
Members’ non-ATS activities are based
upon message traffic; and (iii) the CAT
Reporters with the most CAT-related
activity (measured by market share and/
or message traffic, as applicable) are
generally comparable (where, for these
comparability purposes, the tiered fee
structure takes into consideration
affiliations between or among CAT
Reporters, whether Execution Venues
and/or Industry Members).’’ 13 Under
the Plan, such fees are to be
implemented in accordance with
various funding principles, including an
‘‘allocation of the Company’s related
costs among Participants and Industry
Members that is consistent with the
Exchange Act taking into account . . .
distinctions in the securities trading
operations of Participants and Industry
Members and their relative impact upon
the Company resources and operations’’
and the ‘‘avoid[ance of] any
disincentives such as placing an
inappropriate burden on competition
and reduction in market quality.’’ 14
Exchange, Inc., MEMX LLC, Miami International
Securities Exchange LLC, MIAX Emerald, LLC,
MIAX PEARL, LLC, Nasdaq BX, Inc., Nasdaq
GEMX, LLC, Nasdaq ISE, LLC, Nasdaq MRX, LLC,
Nasdaq PHLX LLC, The Nasdaq Stock Market LLC,
New York Stock Exchange LLC, NYSE American
LLC, NYSE Arca, Inc., NYSE Chicago, Inc., and
NYSE National, Inc.
10 See Securities Exchange Act Release No. 67457
(July 18, 2012), 77 FR 45722 (August 1, 2012).
11 See supra note 5.
12 See CAT NMS Plan, supra note 5, at Section
11.1(b).
13 Id. at Section 11.2(c). See Article XI of the CAT
NMS Plan for additional detail. Id. at Article XI.
14 Id. at Section 11.2(b) and (e).
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]]>Agencies
[Federal Register Volume 86, Number 119 (Thursday, June 24, 2021)]
[Notices]
[Pages 33446-33448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13283]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92169; File No. SR-CBOE-2021-038]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fees Schedule Relating to the Sale of Historical Intraday Open-
Close Volume Data
June 14, 2021.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on June 1, 2021, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options) proposes
to amend its Fees Schedule relating to the sale of historical Intraday
Open-Close volume data. The text of the proposed rule change is
provided in Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fees Schedule to offer a free
trial during the months of June and July 2021 for an ad-hoc request of
three (3) historical months of Intraday Open-Close historical data to
all Cboe Options Trading Permit Holders (``TPHs'') and non-TPHs who
have never before subscribed to the Intraday Open-Close historical
files.
By way of background, the Exchange historically offered Open-Close
Data, which is an end-of-day volume summary of trading activity on the
Exchange at the option level by origin (customer, professional
customer, broker-dealer, and market maker), side of the market (buy or
sell), price, and transaction type (opening or closing). The customer
and professional customer volume is further broken down into trade size
buckets (less than 100 contracts, 100-199 contracts, greater than 199
contracts). The Open-Close Data is proprietary Cboe Options trade data
and does not include trade data from any other exchange. It is also a
historical data product and not a real-time data feed. The recently
adopted Intraday Open-Close Data provides similar information to that
of Open-Close Data but is produced and updated every 10 minutes during
the trading day. Data is captured in ``snapshots'' taken every 10
minutes throughout the trading day and is available to subscribers
within five minutes of the conclusion of each 10-minute period.\3\ The
Intraday Open-Close Data provides a volume summary of trading activity
on the Exchange at the option level by origin (customer, professional
customer, broker-dealer, and market maker), side of the market (buy or
sell), and transaction type (opening or closing). The customer and
professional customer volume are further broken down into trade size
buckets (less than 100 contracts, 100-199 contracts, greater than 199
contracts). The Intraday Open-Close Data is also proprietary Cboe
Options trade data and does not include trade data from any other
exchange.
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\3\ For example, subscribers to the intraday product will
receive the first calculation of intraday data by approximately 9:42
a.m. ET, which represents data captured from 9:30 a.m. to 9:40 a.m.
Subscribers will receive the next update at 9:52 a.m., representing
the data previously provided together with data captured from 9:40
a.m. through 9:50 a.m., and so forth. Each update will represent the
aggregate data captured from the current ``snapshot'' and all
previous ``snapshots.''
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Cboe LiveVol, LLC (``LiveVol''), a wholly owned subsidiary of the
Exchange's parent company, Cboe Global Markets, Inc., makes the
Intraday Open-Close Data available for purchase to TPHs and non-TPHs on
the LiveVol DataShop website (datashop.cboe.com). Customers may
currently purchase Intraday Open-Close Data on a subscription basis
(monthly or annually) or by ad hoc request for a specified month (e.g.,
request for Intraday Open-Close Data for month of January 2021). The
Exchange seeks only to adopt a free trial for historical ad hoc
requests for Intraday Open-Close Data for new purchasers. Currently, ad
hoc requests for historical Intraday Open-Close Data are available to
all customers at the same price and in the same manner. The current
charge for this historical Intraday Open-Close Data covering all of the
Exchange's securities (Equities, Indexes & ETF's) is $1,000 per month.
The Exchange now proposes to adopt a free trial available during the
months of June and July 2021 to provide up to three (3) historical
months of Intraday Open-Close Data to any TPH or non-TPH that has not
previously subscribed to this offering.\4\ The Exchange believes the
proposed trial will serve as an incentive for new users to start
purchasing Intraday Open-Close historical data. Particularly, the
Exchange believes it will give potential subscribers the ability to use
and test the data offering before signing up for additional months. The
Exchange also notes another exchange offers a free trial for new
subscribers of a similar data product.\5\ Lastly, the purchase of
Intraday Open-Close historical data is discretionary and not
compulsory.
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\4\ For example, if a TPH or non-TPH that has never made an ad-
hoc request for a specified month of Intraday Open-Close historical
data wishes to purchase Intraday Open-Close Data for the months of
January, February and March 2021 during the month of June 2021, the
historical files for those months would be provided free of charge.
If a new user wishes to purchase Intraday Open-Close historical data
for the months of January, February, March and April 2021 during the
month of June 2021, then the data for January, February and March
2021 would be provided free of charge, and the new user would be
charged $1,000 for the April 2021 historical file.
\5\ See Nasdaq ISE, Options 7 Pricing Schedule, Section 10A.,
Nasdaq ISE Open/Close Trade Profile End of Day.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with
[[Page 33447]]
the objectives of Section 6 of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(4),\7\ in particular, as it is designed to
provide for the equitable allocation of reasonable dues, fees and other
charges among its Members and issuers and other persons using its
facilities. The Exchange also believes that the proposed rule change is
consistent with the objectives of Section 6(b)(5) \8\ requirements that
the rules of an exchange be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest, and, particularly, is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. Additionally, the Exchange believes the proposed
rule change is consistent with the Section 6(b)(5) \9\ requirement that
the rules of an exchange not be designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.
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\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
\8\ 15 U.S.C. 78f.(b)(5).
\9\ Id.
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In particular, the Exchange believes that the proposed free trial
for any TPH or non-TPH who has not previously purchased Intraday Open-
Close historical data is reasonable because such users would not be
subject to fees for up to 3 months' worth of Intraday Open-Close
historical data. The Exchange believes the proposed free trial is also
reasonable as it will give potential subscribers the ability to use and
test the Intraday Open-Close historical data prior to purchasing
additional months and will therefore encourage and promote new users to
purchase the Intraday Open-Close historical data. The Exchange believes
that the proposed discount is equitable and not unfairly discriminatory
because it will apply equally to all TPHs and non-TPHs who have not
previously purchased Intraday Open-Close historical data. Lastly, as
noted above, another exchange offers a free trial to new users for a
similar data product \10\ and purchase of this data product is
discretionary and not compulsory.
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\10\ See Nasdaq ISE, Options 7 Pricing Schedule, Section 10A.,
Nasdaq ISE Open/Close Trade Profile End of Day.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act because the proposed rule change
will apply to all TPHs and non-TPHs who have never made an ad-hoc
request to purchase Intraday Open-Close historical data. Moreover,
purchase of Intraday Open-Close historical files is discretionary and
not compulsory.
The Exchange does not believe that the proposed rule changes will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed change applies only to Cboe Options. Furthermore, another
exchange currently offers a similar free trial to new users of a
similar data product.\11\
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\11\ See Nasdaq ISE, Options 7 Pricing Schedule, Section 10A.,
Nasdaq ISE Open/Close Trade Profile End of Day.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \12\ of the Act and subparagraph (f)(2) of Rule
19b-4 \13\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CBOE-2021-038 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2021-038. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2021-038 and should be submitted on
or before July 15, 2021.
[[Page 33448]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-13283 Filed 6-23-21; 8:45 am]
BILLING CODE 8011-01-P
