Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Applicable to Various Market Data Products, 16277-16279 [2022-05982]
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Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Assistant Secretary.
Dated: March 17, 2022.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2022–06095 Filed 3–18–22; 11:15 am]
BILLING CODE 8011–01–P
[FR Doc. 2022–05977 Filed 3–21–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94432; File No. SR–
CboeBZX–2022–015]
Sunshine Act Meetings
2:00 p.m. on Thursday,
March 24, 2022.
PLACE: The meeting will be held via
remote means and/or at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
In the event that the time, date, or
location of this meeting changes, an
announcement of the change, along with
the new time, date, and/or place of the
meeting will be posted on the
Commission’s website at https://
www.sec.gov.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
The subject matter of the closed
meeting will consist of the following
topics:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Resolution of litigation claims; and
Other matters relating to examinations
and enforcement proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting agenda items that
may consist of adjudicatory,
examination, litigation, or regulatory
matters.
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
lotter on DSK11XQN23PROD with NOTICES1
TIME AND DATE:
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend the
Fees Applicable to Various Market
Data Products
March 16, 2022.
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 March 3,
2022, Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III 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 BZX Exchange, Inc. (‘‘BZX’’ or
the ‘‘Exchange’’) is filing with the
Securities and Exchange Commission
(the ‘‘Commission’’) a proposed rule
change to amend the fees applicable to
various market data products. 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://markets.cboe.com/us/
equities/regulation/rule_filings/bzx/), 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
(Authority: 5 U.S.C. 552b.)
1 15
14 17
CFR 200.30–3(a)(12).
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18:24 Mar 21, 2022
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00116
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Sfmt 4703
16277
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 the
Market Data section applicable to its
equities trading platform (‘‘BZX
Equities’’). Particularly, the Exchange
proposes to (i) adopt a New External
Distributor Credit applicable to Cboe
One Premium, and (ii) extend the New
External Distributor Credit applicable to
BZX Summary Depth Feed from one (1)
month to three (3) months.3
By way of background, Cboe One
Premium is a data feed that
disseminates, on a real-time basis, the
aggregate best bid and offer (‘‘BBO’’) of
all displayed orders for securities traded
on BZX and its affiliated exchanges (i.e.,
Cboe BYX Exchange, Inc. (‘‘BYX’’), Cboe
EDGX Exchange, Inc. (‘‘EDGX’’), and
Cboe EDGA Exchange, Inc. (‘‘EDGA’’))
and contains optional functionality
which enables recipients to receive
aggregated two-sided quotations from
BZX and its affiliated equities
exchanges for up to five (5) price levels.4
Currently, the Exchange charges an
external distribution fee of $12,500 per
month to External Distributors 5 of Cboe
One Premium. The Exchange now
proposes to adopt a New External
Distributor Credit which provide that
new External Distributors of the Cboe
One Premium Feed will not be charged
an External Distributor Fee for their first
three (3) months in order to allow them
to enlist new Users to receive the Cboe
One Premium Feed. The Exchange
believes the proposal will incentivize
External Distributors to enlist new users
to receive Cboe One Premium. To
3 The Exchange initially filed the proposed fee
changes on January 3, 2022 (SR-CboeBZX–2022–
001). On March 3, 2022 the Exchange withdrew that
filing and submitted this proposal.
4 The Cboe Aggregated Market (‘‘Cboe One’’) Feed
is a data feed that contains the aggregate best bid
and offer of all displayed orders for securities
traded on the Exchange and its affiliated exchanges
(i.e., BYX, EDGX, and EDGA). See Exchange Rule
11.22(j). The Cboe One Feed contains optional
functionality which enables recipients to receive
aggregated two-sided quotations from the Cboe
Equities Exchanges for up to five (5) price levels
(‘‘Cboe One Premium Feed’’). The Cboe One
Premium external distribution fee is equal to the
aggregate BZX Summary Depth, BYX Summary
Depth, EDGX Summary Depth, and EDGA Summary
Depth external distribution fees.
5 An External Distributor of an Exchange Market
Data product is a Distributor that receives the
Exchange Market Data product and then distributes
that data to a third party or one or more Users
outside the Distributor’s own entity.
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Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices
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ensure consistency across the Cboe
Equity Exchanges, EDGA, EDGX, and
BYX will be filing companion proposals
to reflect this proposal in their
respective fee schedules.
The Exchange notes that it offers
similar credits for other market data
products. For example, the Exchange
currently offers a one (1) month New
External Distributor Credit applicable to
Cboe One Summary,6 which is a data
feed that disseminates, on a real-time
basis, the aggregate BBO of all displayed
orders for securities traded on BZX and
its affiliated equities exchanges and also
contains individual last sale information
for the BZX and its affiliated equities
exchanges.7 It also offers a New External
Distributor Credit of one (1) month for
subscribers of BZX Summary Depth,
which is a data feed that offers
aggregated two-sided quotations for all
displayed orders entered into the
System for up to five (5) price levels.
BZX Summary Depth also contains the
individual last sale information, Market
Status, Trading Status, and Trade Break
messages.8 As noted above, the External
Distribution fees for Cboe One Summary
is equivalent to the aggregate BZX
Summary Depth, BYX Summary Depth,
EDGA Summary Depth, and EDGX
Summary Depth External Distribution
fees. In order to alleviate any
competitive issues that may arise with
a vendor seeking to offer a product
similar to the Cboe One Premium Feed
based on the underlying data feeds, the
Exchange proposes to also extend the
current New External Distributor Credit
for BZX Summary Depth from one (1)
month to three (3) months and the
Exchange’s affiliates BYX, EDGA and
EDGX are also submitting similar
proposals to increase the length of their
respective Summary Depth New
External Distributor Credits from one (1)
month to three (3) months. The
respective proposals to extend these
credits to three months ensures the
proposed New External Distributor
Credit for Cboe One Premium will
continue to not cause the combined cost
of subscribing to BZX, BYX, EDGA, and
EDGX Summary Depth feeds for new
External Distributors to be greater than
those currently charged to subscribe to
the Cboe One Premium feed.
6 See
Exchange Rule 11.22(j).
Exchange notes that when it first adopted
the New External Distributor Credit for Cboe One
Summary, it similarly applied for a new External
Distributor’s first three (3) months. See Securities
Exchange Act Release No. 74285 (February 18,
2015), 80 FR 9828 (February 24, 2015) (SR–BATS–
2015–11).
8 See Exchange Rule 11.22(a).
7 The
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18:24 Mar 21, 2022
Jkt 256001
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,9
in general, and furthers the objectives of
Section 6(b)(4),10 in particular, as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its members and
other recipients of Exchange data. In
addition, the Exchange believes that the
proposed rule change is consistent with
Section 11(A) of the Act as it supports
(i) fair competition among brokers and
dealers, among exchange markets, and
between exchange markets and markets
other than exchange markets, and (ii)
the availability to brokers, dealers, and
investors of information with respect to
quotations for and transactions in
securities.11 Finally, the proposed rule
change is also consistent with Rule 603
of Regulation NMS,12 which provides
that any national securities exchange
that distributes information with respect
to quotations for or transactions in an
NMS stock do so on terms that are not
unreasonably discriminatory.
The Exchange believes that adopting
a New External Distributor Credit for
Cboe One Premium is equitable and
reasonable. As discussed above, a
similar New External Distributor Fee
Credit was initially adopted at the time
the Exchange began to offer the Cboe
One Summary to subscribers. It was
intended to incentivize new Distributors
to enlist Users to subscribe to Cboe One
Summary in an effort to broaden the
product’s distribution. Now, the
Exchange proposes to adopt a similar
credit for Cboe One Premium
subscribers for their first three (3)
months to similarly incentivize new
Distributors to enlist Users to subscribe
to Cboe One Premium in an effort to
broaden the product’s distribution.
While this incentive is not available to
Internal Distributors of Cboe One
Premium, the Exchange believes it is
appropriate as Internal Distributors have
no subscribers outside of their own firm.
Furthermore, External Distributors are
subject to higher risks of launch as the
data is provided outside their own firm.
For these reasons, the Exchange believes
it is appropriate to provide this
incentive so that External Distributors
have sufficient time to test the data
within their own systems prior to going
live externally. The Exchange believes
extending the New External Distributor
Credit for BZX Summary Depth from
one (1) month to three (3) months is also
9 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
11 15 U.S.C. 78k–1.
12 See 17 CFR 242.603.
equitable and reasonable, as it (along
with simultaneous corresponding
proposals by the Exchange’s affiliates)
ensures the proposed New External
Distributor Credit for Cboe One
Premium will continue to not cause the
combined cost of subscribing to BZX,
BYX, EDGA, and EDGX Summary Depth
feeds for new External Distributors to be
greater than those currently charged to
subscribe to the Cboe One Premium
feed.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would result
in any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that the proposed
fees do not put any market participants
at a relative disadvantage compared to
other market participants. As discussed,
the proposed credits would apply to all
External Distributors Cboe One
Premium and BZX Depth on an equal
and non-discriminatory basis. Further,
the Exchange believes that the proposed
fees do not impose a burden on
competition or on other SROs that is not
necessary or appropriate in furtherance
of the purposes of the Act. Other
exchanges are free to adopt a similar
waiver if they choose. As discussed
above, the proposed amendments are
designed to enhance competition by
providing an incentive to new
Distributors to enlist new subscribers.
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 has become
effective pursuant to Section 19(b)(3)(A)
of the Act 13 and paragraph (f) of Rule
19b–4 14 thereunder. At any time within
60 days of the filing of the 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 will institute proceedings
to determine whether the proposed rule
10 15
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13 15
14 17
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E:\FR\FM\22MRN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
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Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices
change should be approved or
disapproved.
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:
• 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–
CboeBZX–2022–015 on the subject line.
Paper Comments
lotter on DSK11XQN23PROD with NOTICES1
• 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–CboeBZX–2022–015. 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–CboeBZX–2022–015 and
should be submitted on or before April
12, 2022.
18:24 Mar 21, 2022
[FR Doc. 2022–05982 Filed 3–21–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94431; File No. SR–
NASDAQ–2022–006]
Electronic Comments
VerDate Sep<11>2014
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Assistant Secretary.
Jkt 256001
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Order
Approving Proposed Rule Change To
Enable Exchange Participants To Enter
Midpoint Extended Life Orders and M–
ELO Plus Continuous Book Orders
With an Immediate-or-Cancel Time-inForce Instruction
March 16, 2022.
I. Introduction
On January 19, 2022, The Nasdaq
Stock Market LLC (‘‘Exchange’’ or
‘‘Nasdaq’’) 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 a
proposed rule change to enable
Exchange participants to enter Midpoint
Extended Life Orders (‘‘M–ELOs’’) and
M–ELO Plus Continuous Book Orders
(‘‘M–ELO+CBs’’) with an immediate-orcancel (‘‘IOC’’) Time-in-Force (‘‘TIF’’)
instruction. The proposed rule change
was published for comment in the
Federal Register on February 2, 2022.3
The Commission has not received any
comment letters on the proposed rule
change. This order approves the
proposed rule change.
II. Description of the Proposal
M–ELO is an order type with a nondisplay order attribute that is priced at
the midpoint between the national best
bid and national best offer (‘‘NBBO’’)
and that will not be eligible to execute
until a holding period of 10
milliseconds (‘‘Holding Period’’) has
passed after acceptance of the order by
the Exchange system.4 Once a M–ELO
becomes eligible to execute, the order
may only execute against other eligible
M–ELOs and M–ELO+CBs.5
M–ELO+CB is an order type that has
all of the characteristics and attributes
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 No. 94076
(January 27, 2022), 87 FR 5926 (‘‘Notice’’).
4 See Nasdaq Equity 4, Rule (‘‘Rule’’) 4702(b)(14).
5 See id.
1 15
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16279
of a M–ELO, except that after satisfying
its Holding Period, in addition to
executing against other eligible M–
ELO+CBs and M–ELOs, it may also
execute against certain orders on the
Exchange’s continuous book.6
Specifically, a M–ELO+CB may also
execute against non-displayed orders
with midpoint pegging and midpoint
peg post-only orders (collectively,
‘‘Midpoint Orders’’) resting on the
Exchange’s continuous book, if: (1) The
Midpoint Order has the midpoint trade
now order attribute enabled; (2) the
Midpoint Order has rested on the
continuous book for at least 10
milliseconds after the NBBO midpoint
falls within the limit price set by the
participant; (3) no other order is resting
on the continuous book that has a more
aggressive price than the current NBBO
midpoint; and (4) the Midpoint Order
satisfies any minimum quantity
requirement of the M–ELO+CB.7
Currently, M–ELOs and M–ELO+CBs
may not be entered with a TIF of IOC.8
The Exchange now proposes to amend
Nasdaq Rule 4702(b)(14) to enable
Exchange participants to enter M–ELOs
and M–ELO+CBs with an IOC
instruction.9 As proposed, if a M–ELO
or M–ELO+CB is entered with a TIF of
IOC, it would execute against eligible
resting interest immediately upon the
expiration of the Holding Period.10 If no
eligible resting interest is available, or
shares of the order remain unexecuted
after trading against available eligible
resting interest, then the system would
automatically cancel the order or the
remaining shares of the order, as
applicable.11 If the order is ineligible to
begin the Holding Period upon entry
(i.e., the NBBO is crossed at the time of
order entry, there is no NBB or NBO at
the time of order entry, or the order is
entered with a limit price that is not at
or better than the NBBO midpoint), then
the system would cancel the order
immediately.12
As proposed, M–ELOs and M–
ELO+CBs with a TIF of IOC would be
subject to real-time surveillance to
determine if they are being abused by
6 See
Nasdaq Rule 4702(b)(15).
id.
8 See Nasdaq Rule 4702(b)(14)(B), (b)(15). An
order with a TIF of IOC is one that is designated
to deactivate immediately after determining
whether the order is marketable. See Nasdaq Rule
4703(a)(1).
9 See proposed Nasdaq Rule 4702(b)(14)(B).
Because Nasdaq Rule 4702(b)(15) incorporates by
reference the M–ELO characteristics and attributes
set forth in Nasdaq Rule 4702(b)(14), the proposed
rule change would also allow M–ELO+CBs to be
entered with a TIF of IOC.
10 See proposed Nasdaq Rule 4702(b)(14)(B).
11 See id.
12 See id.; Notice, supra note 3, at 5928.
7 See
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]]>Agencies
[Federal Register Volume 87, Number 55 (Tuesday, March 22, 2022)]
[Notices]
[Pages 16277-16279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05982]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94432; File No. SR-CboeBZX-2022-015]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Fees Applicable to Various Market Data Products
March 16, 2022.
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 March 3, 2022, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III 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 BZX Exchange, Inc. (``BZX'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (the ``Commission'') a
proposed rule change to amend the fees applicable to various market
data products. 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://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), 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 the Market Data section applicable
to its equities trading platform (``BZX Equities''). Particularly, the
Exchange proposes to (i) adopt a New External Distributor Credit
applicable to Cboe One Premium, and (ii) extend the New External
Distributor Credit applicable to BZX Summary Depth Feed from one (1)
month to three (3) months.\3\
---------------------------------------------------------------------------
\3\ The Exchange initially filed the proposed fee changes on
January 3, 2022 (SR-CboeBZX-2022-001). On March 3, 2022 the Exchange
withdrew that filing and submitted this proposal.
---------------------------------------------------------------------------
By way of background, Cboe One Premium is a data feed that
disseminates, on a real-time basis, the aggregate best bid and offer
(``BBO'') of all displayed orders for securities traded on BZX and its
affiliated exchanges (i.e., Cboe BYX Exchange, Inc. (``BYX''), Cboe
EDGX Exchange, Inc. (``EDGX''), and Cboe EDGA Exchange, Inc.
(``EDGA'')) and contains optional functionality which enables
recipients to receive aggregated two-sided quotations from BZX and its
affiliated equities exchanges for up to five (5) price levels.\4\
Currently, the Exchange charges an external distribution fee of $12,500
per month to External Distributors \5\ of Cboe One Premium. The
Exchange now proposes to adopt a New External Distributor Credit which
provide that new External Distributors of the Cboe One Premium Feed
will not be charged an External Distributor Fee for their first three
(3) months in order to allow them to enlist new Users to receive the
Cboe One Premium Feed. The Exchange believes the proposal will
incentivize External Distributors to enlist new users to receive Cboe
One Premium. To
[[Page 16278]]
ensure consistency across the Cboe Equity Exchanges, EDGA, EDGX, and
BYX will be filing companion proposals to reflect this proposal in
their respective fee schedules.
---------------------------------------------------------------------------
\4\ The Cboe Aggregated Market (``Cboe One'') Feed is a data
feed that contains the aggregate best bid and offer of all displayed
orders for securities traded on the Exchange and its affiliated
exchanges (i.e., BYX, EDGX, and EDGA). See Exchange Rule 11.22(j).
The Cboe One Feed contains optional functionality which enables
recipients to receive aggregated two-sided quotations from the Cboe
Equities Exchanges for up to five (5) price levels (``Cboe One
Premium Feed''). The Cboe One Premium external distribution fee is
equal to the aggregate BZX Summary Depth, BYX Summary Depth, EDGX
Summary Depth, and EDGA Summary Depth external distribution fees.
\5\ An External Distributor of an Exchange Market Data product
is a Distributor that receives the Exchange Market Data product and
then distributes that data to a third party or one or more Users
outside the Distributor's own entity.
---------------------------------------------------------------------------
The Exchange notes that it offers similar credits for other market
data products. For example, the Exchange currently offers a one (1)
month New External Distributor Credit applicable to Cboe One
Summary,\6\ which is a data feed that disseminates, on a real-time
basis, the aggregate BBO of all displayed orders for securities traded
on BZX and its affiliated equities exchanges and also contains
individual last sale information for the BZX and its affiliated
equities exchanges.\7\ It also offers a New External Distributor Credit
of one (1) month for subscribers of BZX Summary Depth, which is a data
feed that offers aggregated two-sided quotations for all displayed
orders entered into the System for up to five (5) price levels. BZX
Summary Depth also contains the individual last sale information,
Market Status, Trading Status, and Trade Break messages.\8\ As noted
above, the External Distribution fees for Cboe One Summary is
equivalent to the aggregate BZX Summary Depth, BYX Summary Depth, EDGA
Summary Depth, and EDGX Summary Depth External Distribution fees. In
order to alleviate any competitive issues that may arise with a vendor
seeking to offer a product similar to the Cboe One Premium Feed based
on the underlying data feeds, the Exchange proposes to also extend the
current New External Distributor Credit for BZX Summary Depth from one
(1) month to three (3) months and the Exchange's affiliates BYX, EDGA
and EDGX are also submitting similar proposals to increase the length
of their respective Summary Depth New External Distributor Credits from
one (1) month to three (3) months. The respective proposals to extend
these credits to three months ensures the proposed New External
Distributor Credit for Cboe One Premium will continue to not cause the
combined cost of subscribing to BZX, BYX, EDGA, and EDGX Summary Depth
feeds for new External Distributors to be greater than those currently
charged to subscribe to the Cboe One Premium feed.
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\6\ See Exchange Rule 11.22(j).
\7\ The Exchange notes that when it first adopted the New
External Distributor Credit for Cboe One Summary, it similarly
applied for a new External Distributor's first three (3) months. See
Securities Exchange Act Release No. 74285 (February 18, 2015), 80 FR
9828 (February 24, 2015) (SR-BATS-2015-11).
\8\ See Exchange Rule 11.22(a).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\9\ in general, and
furthers the objectives of Section 6(b)(4),\10\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its members and other recipients of
Exchange data. In addition, the Exchange believes that the proposed
rule change is consistent with Section 11(A) of the Act as it supports
(i) fair competition among brokers and dealers, among exchange markets,
and between exchange markets and markets other than exchange markets,
and (ii) the availability to brokers, dealers, and investors of
information with respect to quotations for and transactions in
securities.\11\ Finally, the proposed rule change is also consistent
with Rule 603 of Regulation NMS,\12\ which provides that any national
securities exchange that distributes information with respect to
quotations for or transactions in an NMS stock do so on terms that are
not unreasonably discriminatory.
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\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(4).
\11\ 15 U.S.C. 78k-1.
\12\ See 17 CFR 242.603.
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The Exchange believes that adopting a New External Distributor
Credit for Cboe One Premium is equitable and reasonable. As discussed
above, a similar New External Distributor Fee Credit was initially
adopted at the time the Exchange began to offer the Cboe One Summary to
subscribers. It was intended to incentivize new Distributors to enlist
Users to subscribe to Cboe One Summary in an effort to broaden the
product's distribution. Now, the Exchange proposes to adopt a similar
credit for Cboe One Premium subscribers for their first three (3)
months to similarly incentivize new Distributors to enlist Users to
subscribe to Cboe One Premium in an effort to broaden the product's
distribution. While this incentive is not available to Internal
Distributors of Cboe One Premium, the Exchange believes it is
appropriate as Internal Distributors have no subscribers outside of
their own firm. Furthermore, External Distributors are subject to
higher risks of launch as the data is provided outside their own firm.
For these reasons, the Exchange believes it is appropriate to provide
this incentive so that External Distributors have sufficient time to
test the data within their own systems prior to going live externally.
The Exchange believes extending the New External Distributor Credit for
BZX Summary Depth from one (1) month to three (3) months is also
equitable and reasonable, as it (along with simultaneous corresponding
proposals by the Exchange's affiliates) ensures the proposed New
External Distributor Credit for Cboe One Premium will continue to not
cause the combined cost of subscribing to BZX, BYX, EDGA, and EDGX
Summary Depth feeds for new External Distributors to be greater than
those currently charged to subscribe to the Cboe One Premium feed.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
believes that the proposed fees do not put any market participants at a
relative disadvantage compared to other market participants. As
discussed, the proposed credits would apply to all External
Distributors Cboe One Premium and BZX Depth on an equal and non-
discriminatory basis. Further, the Exchange believes that the proposed
fees do not impose a burden on competition or on other SROs that is not
necessary or appropriate in furtherance of the purposes of the Act.
Other exchanges are free to adopt a similar waiver if they choose. As
discussed above, the proposed amendments are designed to enhance
competition by providing an incentive to new Distributors to enlist new
subscribers.
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 has become effective pursuant to Section
19(b)(3)(A) of the Act \13\ and paragraph (f) of Rule 19b-4 \14\
thereunder. At any time within 60 days of the filing of the 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 will institute proceedings to
determine whether the proposed rule
[[Page 16279]]
change should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f).
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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-CboeBZX-2022-015 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-CboeBZX-2022-015. 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-CboeBZX-2022-015 and should be submitted
on or before April 12, 2022.
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. 2022-05982 Filed 3-21-22; 8:45 am]
BILLING CODE 8011-01-P
