Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Allow Unlimited External Distribution of Derived Data From MRX Options Trade Outline, 86386-86389 [2024-25061]
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86386
Federal Register / Vol. 89, No. 210 / Wednesday, October 30, 2024 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–25147 Filed 10–29–24; 8:45 am]
BILLING CODE 8011–01–P
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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101423; File No. SR–MRX–
2024–40]
Self-Regulatory Organizations; Nasdaq
MRX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Allow Unlimited
External Distribution of Derived Data
From MRX Options Trade Outline
October 23, 2024.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
9, 2024, Nasdaq MRX, LLC (‘‘MRX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) a 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
The Exchange proposes to allow
unlimited external distribution of
Derived Data from MRX Options Trade
Outline.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/mrx/rules, at the principal
office of the Exchange, 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
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
31 17
CFR 200.30–3(a)(12), (59).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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The purpose of the proposed rule
change is to allow unlimited external
distribution of Derived Data from MRX
Options Trade Outline for a monthly fee
of $3,000.3
MRX Options Trade Outline
MRX Options Trade Outline provides
aggregate quantity and volume
information for trades on the Exchange
for all series 4 during a trading session.5
Information is provided on an End of
Day, Intra-Day, and historical basis in
the following categories: (i) total
exchange volume for Intra-Day
information and total exchange and
industry volume for End of Day
information for each reported series; (ii)
open interest for the series; (iii)
aggregate quantity of trades and
aggregate trade volume effected to open
a position,6 characterized by origin type
(Priority Customers,7 Broker-Dealers,8
Market Makers,9 Firm Proprietary,10 and
3 This proposal was initially filed on September
27, 2024, as SR–MRX–2024–038. On October 9,
2024, that filing was withdrawn and replaced with
the instant filing to provide further clarification.
4 Every options series trades as a distinct symbol;
the terms ‘‘series’’ and ‘‘symbol’’ are therefore
synonyms.
5 See Securities Exchange Act Release No. 100789
(August 21, 2024), 89 FR 68680 (August 27, 2024)
(SR–MRX–2024–31).
6 This includes the aggregate number of ‘‘opening
purchase transactions,’’ defined as an Exchange
Transaction that will create or increase a long
position in an options contract, see Options 1,
Section 1(a)(27), and the aggregate number of
‘‘opening writing transactions,’’ defined as an
Exchange Transaction that will create or increase a
short position in an options contract. See Options
1, Section 1(a)(28).
7 The term ‘‘Priority Customer’’ means a person
or entity that (i) is not a broker or dealer in
securities, and (ii) does not place more than 390
orders in listed options per day on average during
a calendar month for its own beneficial account(s).
See Options 1 § 1(a)(36).
8 A ‘‘Broker-Dealer’’ order is an order submitted
by a Member for a broker-dealer account that is not
its own proprietary account. See Options 7 § 1(c).
9 The term ‘‘Market Makers’’ refers to
‘‘Competitive Market Makers’’ and ‘‘Primary Market
Makers’’ collectively. See Options 1 § 1(a)(21). The
term ‘‘Competitive Market Maker’’ means a Member
that is approved to exercise trading privileges
associated with CMM Rights. See Options 1
§ 1(a)(12). The term ‘‘Primary Market Maker’’ means
a Member that is approved to exercise trading
privileges associated with PMM Rights. See Options
1 Section 1(a)(35).
10 A ‘‘Firm Proprietary’’ order is an order
submitted by a Member for its own proprietary
account. See Options 7 Section 1(c).
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Professional Customers 11); and (iv)
aggregate quantity of trades and
aggregate trade volume effected to close
a position,12 characterized by origin
type (Priority Customers, BrokerDealers, Market Makers, Firm
Proprietary, and Professional
Customers).13
End of Day Information
The MRX Trade Outline End of Day
file provides opening buy, closing buy,
opening sell and closing sell
information, including option first trade
price, option high trade price, option
low trade price, and option last trade
price. The End of Day file is updated
during an overnight process with
additional fields 14 and will be available
the following morning, providing
aggregate data for the entire trading
session.
Intra-Day Information
Intra-Day information will be released
in scheduled ‘‘snapshots’’ available
every 10 minutes for all options series
over the course of the trading day. These
snapshots will be updated to reflect
whatever activity occurred, or to
indicate that no activity occurred.15
Historical Information
Historical data will be available
through ad hoc requests for information
in both End of Day and Intra-Day
formats for all option series traded for
every calendar month after September
2017, based on specific request.16
11 A ‘‘Professional Customer’’ is a person or entity
that is not a broker/dealer and is not a Priority
Customer. See Options 7 Section 1(c).
12 This includes the aggregate number of ‘‘closing
purchase transactions’’ in the affected series,
defined as an Exchange Transaction that will
reduce or eliminate a short position in an options
contract, see Options 1, Section 1(a)(9), and the
aggregate number of ‘‘closing writing transactions,’’
defined as an Exchange Transaction that will
reduce or eliminate a long position in an options
contract. See Options 1, Section 1(a)(10).
13 These are the same types of information
available on PHOTO, and the other trade outline
products offered by Nasdaq exchanges.
14 The additional fields are: First Trade Price,
High Trade Price, Low Trade Price, Last Trade
Price, Underlying Close, Moneyness, Total
Exchange volume, Total Industry Volume for the
Series, and Open Interest.
15 Subscribers will receive the first snapshot at
9:42 a.m. ET, representing data captured from 9:30
a.m. to 9:40 a.m., and the second calculation at 9:52
a.m., representing data from both the most recent
snapshot and previous snapshots, and continuing
over the course of the trading day. The final IntraDay snapshot will be distributed at 4:15 p.m.
16 Market participants generally use historical
files for model testing and research, and the period
of time required by a particular market participant
will depend on its unique testing and research
needs as well as whether it is using End of Day or
Intra-Day information. Some customers, for
example, may request years of data, while others
only months, or even a single month. The same
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Federal Register / Vol. 89, No. 210 / Wednesday, October 30, 2024 / Notices
MRX Options Trade Outline includes
proprietary Exchange trading data and
does not disseminate any intra-day
trading data from any other exchange.17
The information provided, both in
End of Day and Intra-Day formats, will
not be a real-time data feed.
MRX Options Trade Outline is a
completely voluntary product in that
the Exchange is not required by any rule
or regulation to make this data available
and potential subscribers may purchase
it only if they voluntarily choose to do
so.
Nasdaq’s experience is that
investment banks, market makers, asset
managers and other buy-side investors
purchase trade outline products.
Outline are in addition to fees for the
End of Day product or the Intraday
product, or both, as applicable.
The proposal is designed to promote
the dissemination of a variety of
analytical insights—generally used only
by investment banks, market makers,
asset managers and other buy-side
investors—to the general investing
public by creating an incentive for
market data vendors to identify,
develop, and sell sentiment indicators
and other products. The proposal will
spur competition among not only
exchanges, but vendors as well, thereby
promoting innovation and improving
the dissemination of information to the
general investing public.
Proposed Fees
The Exchange proposes to allow
unlimited external distribution of
Derived Data from MRX Options Trade
Outline for a monthly fee of $3,000.
This will encourage Distributors to
create and sell analytic products to the
general investing public. External
distribution of Derived Data is not
currently permitted. The same Derived
Data license is also offered by the
Nasdaq PHLX, LLC (‘‘Phlx’’),18 Nasdaq
ISE, LLC (‘‘ISE’’),19 and Nasdaq GEMX,
LLC (‘‘GEMX’’) 20 exchanges and the
Nasdaq Stock Market LLC (‘‘Nasdaq
Options Market’’ or ‘‘NOM’’).21 A
Derived Data license is also being
proposed for the BX exchange
concurrently with this proposal.
Derived Data is ‘‘any information
generated in whole or in part from
Exchange Information 22 such that the
information generated cannot be reverse
engineered to recreate Exchange
Information, or be used to create other
data that is recognizable as a reasonable
substitute for such Exchange
Information.’’
Fees for external distribution of
Derived Data from MRX Options Trade
2. Statutory Basis
principle applies to End of Day vs. Intra-Day
information.
17 The End of Day report includes a field that
presents Total Industry Volume for the Series.
18 See Securities Exchange Act Release No. 93293
(October 12, 2021), 86 FR 57716 (October 18, 2021)
(SR–Phlx–2021–58).
19 See ISE Options 7, Section 10(A).
20 See GEMX Options 7, Section 7(D).
21 See Nasdaq Options 7, Section 4.
22 ‘‘Exchange Information’’ is any data or
information that has been collected, validated,
processed and/or recorded by the Exchange and
made available for transmission relating to: (i)
eligible securities or other financial instruments,
markets, products, vehicles, indicators, or devices;
(ii) activities of the Exchange; or (iii) other
information or data from the Exchange. Information
includes, but is not limited to, any element of
information used or processed in such a way that
Exchange Information or a substitute for such
Information can be identified, recalculated or reengineered from the processed information.
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The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,23 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,24 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees, and other charges
among members and issuers and other
persons using any facility, and is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
Equitable Allocation of Reasonable
Dues, Fees and Other Charges
The proposed changes are an
equitable allocation of reasonable dues,
fees and other charges because: (i) the
trade profile products offered by
multiple exchanges are substitutes, and
customers are free to choose which
product they purchase; and (ii) the
proposed fees are comparable to the fees
charged by other exchanges, and
customers are free to purchase other
products if the Exchange has mistaken
the value of its product.
Substitution
Products similar to Trade Outline are
offered by many exchanges, including
Nasdaq affiliates such as Phlx,25 ISE,26
GEMX,27 and NOM,28 and options
markets not affiliated with Nasdaq such
23 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
25 See Securities Exchange Act Release No. 62887
(September 10, 2010), 75 FR 57092 (September 17,
2010) (SR–Phlx–2010–121) (introducing PHOTO on
September 1, 2010),
26 See Nasdaq ISE Rules, Options 7, Section 10(A)
and (B) (Nasdaq ISE Open/Close Trade Profile End
of Day; Nasdaq ISE Open/Close Trade Profile
Intraday).
27 See Nasdaq GEMX Rules, Options 7, Sections
7(D) (Nasdaq GEMX Open/Close End of Day Trade
Profile) and 7(E) (Nasdaq GEMX Open/Close
Intraday Trade Profile).
28 See Nasdaq Rules, Options 7, Section 4 (Nasdaq
Options Trade Outline (‘‘NOTO’’)).
24 15
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86387
as Cboe Options Exchange (‘‘Cboe’’),29
NYSE American Options (‘‘NYSE
American’’),30 NYSE Arca Options
(‘‘NYSE Arca’’),31 BOX Options Market
LLC (‘‘BOX’’),32 and MIAX Pearl
Options Exchange (‘‘Pearl’’).33
All of the trade outline products
offered by the Nasdaq-affiliated
exchanges include a license for the
unlimited external distribution of
Derived Data.34 As noted above, BX will
be proposing the same license together
with this proposal. All of these Derived
Data licenses are direct substitutes.
The underlying trade outline data
provided by one exchange is generally
similar to that provided by other
exchanges because order flow can move
from one exchange to another, and
market sentiment trends that appear on
one exchange are likely to be similar to
the sentiment trends on other
exchanges. The key differentiator among
trade outline products depends on the
volume of transactions on a given
exchange; the greater the volume of
transactions, the greater the value of the
data. Customers generally purchase
sufficient data to provide a view of the
market, but not more, as the value of
data from each additional exchange
yields diminishing returns. Because
customers can substitute trade outline
products among exchanges, customers
can also substitute the proposed Derived
Data license for MRX with the Derived
Data licenses of any of its affiliates.
The proposed Derived Data license is
also subject to potential competition
from exchanges not affiliated with
Nasdaq. Although the Exchange is not
29 See, e.g., Securities Exchange Act Release No.
94913 (May 13, 2022), 87 FR 30534 (May 19, 2022)
(SR–Cboe–2022–023) (describing End of Day and
Intra-Day Open-Close Data as a summary of trading
activity on the exchange at the option level by
origin, side of the market, price, and transaction
type).
30 See, e.g., Securities Exchange Act Release No.
93803 (December 16, 2021, 86 FR 72647 (December
22, 2021) (SR–NYSEAMER–2021–46) (describing
the NYSE Options Open-Close Volume Summary as
a volume summary of trading activity on the
exchange at the option level by origin, side of the
market, contract volume and transaction type).
31 See, e.g., Securities Exchange Act Release No.
93132 (September 27, 2021), 86 FR 54499 (October
1, 2021) (SR–NYSEArca–2021–82) (describing the
NYSE Options Open-Close Volume Summary as a
volume summary of trading activity on the
exchange at the option level by origin, side of the
market, contract volume and transaction type).
32 See, e.g., Securities Exchange Act Release No.
97174 (March 21, 2023), 88 FR 18201 (March 27,
2023) (SR–BOX–2023–09) (describing the BOX
exchange Open-Close Data report as providing
volume by origin, buying/selling, and opening/
closing criteria).
33 See, e.g., Securities Exchange Act Release No.
91964 (May 21, 2021), 86 FR 28667 (May 27, 2021)
(SR–PEARL–2021–24) (introducing the Open-Close
Report).
34 See supra notes 24–27.
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aware of any exchanges offering a
Derived Data license for trade outline
other than its own affiliates, any
exchange that wishes to allow
distribution of a Derived Data product
based on options trading information
would be able to do so with an
immediately effective fee filing similar
to this proposal.
All trade outline products are
optional. Customers can, and do, choose
to forego the information from Trade
Outline or any of its competitor
products when making a trade, and the
same holds for Derived Data from trade
outline products.
As the Commission and courts 35 have
recognized, ‘‘[i]f competitive forces are
operative, the self-interest of the
exchanges themselves will work
powerfully to constrain unreasonable or
unfair behavior.’’ 36 Accordingly, ‘‘the
existence of significant competition
provides a substantial basis for finding
that the terms of an exchange’s fee
proposal are equitable, fair, reasonable,
and not unreasonably or unfairly
discriminatory.’’ 37 The Commission
and the courts have repeatedly
expressed their preference for
competition over regulatory
intervention in determining prices,
products, and services in the securities
markets. In Regulation NMS, while
adopting a series of steps to improve the
current market model, the Commission
highlighted the importance of market
forces in determining prices and SRO
revenues, and also recognized that
current regulation of the market system
‘‘has been remarkably successful in
promoting market competition in its
35 The decision of the United States Court of
Appeals for the District of Columbia Circuit in
NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010)
upheld the Commission’s reliance upon
competitive markets to set reasonable and equitably
allocated fees for market data. ‘‘In fact, the
legislative history indicates that the Congress
intended that the market system evolve through the
interplay of competitive forces as unnecessary
regulatory restrictions are removed and that the SEC
wield its regulatory power in those situations where
competition may not be sufficient, such as in the
creation of a consolidated transactional reporting
system.’’ NetCoalition I at 535 (quoting H.R. Rep.
No. 94–229, at 92 (1975), as reprinted in 1975
U.S.C.C.A.N. 321, 323) (internal quotation marks
omitted). The court agreed with the Commission’s
conclusion that ‘‘Congress intended that
competitive forces should dictate the services and
practices that constitute the U.S. national market
system for trading equity securities.’’ Id. (quoting
Securities Exchange Act Release No. 59039
(December 2, 2008), 73 FR 74770, 74771 (December
9, 2008) (SR–NYSEArca–2006–21)).
36 See Securities Exchange Act Release No. 59039
(December 2, 2008), 73 FR 74770 (December 9,
2008) (SR–NYSEArca–2006–21).
37 See id.
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broader forms that are most important to
investors and listed companies.’’ 38
Because the proposed Derived Data
license is currently subject to
competition from other Nasdaq
exchanges, and potentially subject to
competition from other exchanges, the
Exchange will be limited in what it is
able to charge for the license, and the
proposed fee is therefore a reasonable
allocation of dues, fees and other
charges.
Comparability
The proposed fees for the Derived
Data license are comparable to the fees
charged by similarly situated exchanges
for the same license.
All of the Nasdaq-affiliated exchanges
offer a Derived Data license for their
trade outline products. As explained
above, the value of any trade outline
product is determined in part by the
number of underlying transactions
reflected in the data.
The proposed fees for the Derived
Data license are the same as the fees
charged by similarly situated exchanges.
MRX has a market share of
approximately 4 percent, similar to that
of GEMX (at approximately 3 percent).39
The proposed monthly fee of $3,000 for
the unlimited external distribution of
Derived Data is identical to the fee
charged by GEMX.40
The volume of trading on the MRX
exchange is also similar to that on the
BX exchange, which has a market share
of approximately 2 percent.41 Together
with this filing, BX will propose the
same monthly fee of $3,000 as MRX for
the unlimited external distribution of
Derived Data.
The Nasdaq-affiliated exchanges with
larger market shares have comparably
higher fees for the unlimited external
distribution of Derived Data. Nasdaq
Options Market, with a market share of
approximately 5 percent,42 has a fee of
$4,000 per month for the unlimited
external distribution of Derived Data.43
ISE, with a market share of
approximately 7 percent,44 has a fee of
$4,500 per month for the unlimited
external distribution of Derived Data.45
PHLX, with a market share of
38 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(‘‘Regulation NMS Adopting Release’’).
39 See NasdaqTrader.com, ‘‘Options Market
Statistics,’’ available at https://
www.nasdaqtrader.com/
Trader.aspx?id=OptionsVolumeSummary.
40 See GEMX Options 7, Section 7(D).
41 See supra note 38.
42 See id.
43 See Nasdaq Options 7, Section 4.
44 See supra note 38.
45 See ISE Options 7, Section 10(A).
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approximately 9 percent,46 has a fee of
$5,000 per month for the unlimited
external distribution of Derived Data.47
The proposed fees are therefore
comparable to those charged by
similarly situated exchanges and
consistent with the fees for Derived Data
licenses in the market overall. If the
Exchange is wrong in its assessment of
fees, it will lose sales as a result.
The Proposal Does Not Permit Unfair
Discrimination
The proposed Derived Data license is
available to all market participants,
including members and non-members,
and all current and potential
distributors, on the same terms. Nothing
in the proposal treats any category of
market participant any differently from
any other category.
It is reasonable and not unfair
discrimination to charge an external
distributor of Derived Data a $3,000
licensing fee that is not charged for
internal usage. External distribution is
fundamentally different than internal
use. Vendors ordinarily charge a fee to
their downstream customers for this
service, and, even if the vendor is not
charging a specific fee for this particular
service, Derived Data products from the
Exchange will be part of a suite of
offerings that generally promote sales. It
is not unfair discrimination to charge a
licensing fee for a product that generates
downstream revenue.
It is also not unfair discrimination to
allow the redistribution of Derived Data,
but not the underlying information.
Neither exchanges nor vendors
ordinarily allow redistribution of
analytic products—such products are
typically designed solely for the use of
direct customers, not for redistribution
to the customers of customers in the
manner of a data feed.
The proposed licensing structure
provides an incentive for vendors to
innovate with new compelling and
varied analytic products for the general
investing public that will provide access
to market sentiment insights currently
available only to sophisticated
investors.
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 not
necessary or appropriate in furtherance
of the purposes of the Act. In terms of
inter-market competition, the Exchange
notes that it operates in a highly
competitive market in which market
46 See
47 See
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supra note 38.
PHLX Options 7, Section 10.
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participants can readily favor competing
venues if they deem fee levels at a
particular venue to be excessive, or
rebate opportunities available at other
venues to be more favorable. In such an
environment, the Exchange must
continually adjust its fees to remain
competitive with other exchanges and
with alternative trading systems that
have been exempted from compliance
with the statutory standards applicable
to exchanges. Because competitors are
free to modify their own fees in
response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited.
Intermarket Competition
Nothing in the proposal burdens
inter-market competition (the
competition among self-regulatory
organizations). As discussed above,
MRX Trade Outline is subject to direct
competition from other options
exchanges that offer similar products.
Any of these exchanges can replicate
this proposal in full or in part, and
nothing in the proposal would interfere
with the ability of any exchange to do
so.
Intramarket Competition
Nothing in the proposal burdens
intra-market competition (the
competition among consumers of
exchange data). Trade Outline is
available to any customer under the
same fee schedule as any other
customer, and any market participant
that wishes to purchase a license to
distribute Derived Data can do so on a
non-discriminatory basis.
Indeed, the proposal is designed to
foster competition for vendors as well as
exchanges by creating an incentive for
market data vendors to identify,
develop, and sell analytic indicators to
help investors inform their investments
strategies and analytic models.
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
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)(ii) of the Act.48 At any time
48 15
U.S.C. 78s(b)(3)(A)(ii).
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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: (i)
necessary or appropriate in the public
interest; (ii) for the protection of
investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–MRX–2024–40 and should be
submitted on or before November 20,
2024.
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:
[FR Doc. 2024–25061 Filed 10–29–24; 8:45 am]
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–
MRX–2024–40 on the subject line.
Deregistration Under Section 8(f) of the
Investment Company Act of 1940
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–MRX–2024–40. 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
PO 00000
Frm 00080
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.49
Sherry R. Haywood,
Assistant Secretary.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
35370]
October 25, 2024.
Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’).
ACTION: Notice of Applications for
Deregistration under Section 8(f) of the
Investment Company Act of 1940.
AGENCY:
The following is a notice of
applications for deregistration under
section 8(f) of the Investment Company
Act of 1940 for the month of October
2024. A copy of each application may be
obtained via the Commission’s website
by searching for the applicable file
number listed below, or for an applicant
using the Company name search field,
on the SEC’s EDGAR system. The SEC’s
EDGAR system may be searched at
https://www.sec.gov/edgar/searchedgar/
legacy/companysearch.html. You may
also call the SEC’s Public Reference
Room at (202) 551–8090. An order
granting each application will be issued
unless the SEC orders a hearing.
Interested persons may request a
hearing on any application by emailing
the SEC’s Secretary at SecretarysOffice@sec.gov and serving the relevant
applicant with a copy of the request by
email, if an email address is listed for
the relevant applicant below, or
personally or by mail, if a physical
address is listed for the relevant
applicant below. Hearing requests
should be received by the SEC by 5:30
p.m. on November 19, 2024, and should
be accompanied by proof of service on
applicants, in the form of an affidavit or,
for lawyers, a certificate of service.
Pursuant to Rule 0–5 under the Act,
hearing requests should state the nature
of the writer’s interest, any facts bearing
49 17
E:\FR\FM\30OCN1.SGM
CFR 200.30–3(a)(12).
30OCN1
]]>Agencies
[Federal Register Volume 89, Number 210 (Wednesday, October 30, 2024)]
[Notices]
[Pages 86386-86389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-25061]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101423; File No. SR-MRX-2024-40]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Allow Unlimited
External Distribution of Derived Data From MRX Options Trade Outline
October 23, 2024.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 9, 2024, Nasdaq MRX, LLC (``MRX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
a 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to allow unlimited external distribution of
Derived Data from MRX Options Trade Outline.
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/mrx/rules, at the
principal office of the Exchange, 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 purpose of the proposed rule change is to allow unlimited
external distribution of Derived Data from MRX Options Trade Outline
for a monthly fee of $3,000.\3\
---------------------------------------------------------------------------
\3\ This proposal was initially filed on September 27, 2024, as
SR-MRX-2024-038. On October 9, 2024, that filing was withdrawn and
replaced with the instant filing to provide further clarification.
---------------------------------------------------------------------------
MRX Options Trade Outline
MRX Options Trade Outline provides aggregate quantity and volume
information for trades on the Exchange for all series \4\ during a
trading session.\5\
---------------------------------------------------------------------------
\4\ Every options series trades as a distinct symbol; the terms
``series'' and ``symbol'' are therefore synonyms.
\5\ See Securities Exchange Act Release No. 100789 (August 21,
2024), 89 FR 68680 (August 27, 2024) (SR-MRX-2024-31).
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Information is provided on an End of Day, Intra-Day, and historical
basis in the following categories: (i) total exchange volume for Intra-
Day information and total exchange and industry volume for End of Day
information for each reported series; (ii) open interest for the
series; (iii) aggregate quantity of trades and aggregate trade volume
effected to open a position,\6\ characterized by origin type (Priority
Customers,\7\ Broker-Dealers,\8\ Market Makers,\9\ Firm
Proprietary,\10\ and Professional Customers \11\); and (iv) aggregate
quantity of trades and aggregate trade volume effected to close a
position,\12\ characterized by origin type (Priority Customers, Broker-
Dealers, Market Makers, Firm Proprietary, and Professional
Customers).\13\
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\6\ This includes the aggregate number of ``opening purchase
transactions,'' defined as an Exchange Transaction that will create
or increase a long position in an options contract, see Options 1,
Section 1(a)(27), and the aggregate number of ``opening writing
transactions,'' defined as an Exchange Transaction that will create
or increase a short position in an options contract. See Options 1,
Section 1(a)(28).
\7\ The term ``Priority Customer'' means a person or entity that
(i) is not a broker or dealer in securities, and (ii) does not place
more than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s). See Options 1
Sec. 1(a)(36).
\8\ A ``Broker-Dealer'' order is an order submitted by a Member
for a broker-dealer account that is not its own proprietary account.
See Options 7 Sec. 1(c).
\9\ The term ``Market Makers'' refers to ``Competitive Market
Makers'' and ``Primary Market Makers'' collectively. See Options 1
Sec. 1(a)(21). The term ``Competitive Market Maker'' means a Member
that is approved to exercise trading privileges associated with CMM
Rights. See Options 1 Sec. 1(a)(12). The term ``Primary Market
Maker'' means a Member that is approved to exercise trading
privileges associated with PMM Rights. See Options 1 Section
1(a)(35).
\10\ A ``Firm Proprietary'' order is an order submitted by a
Member for its own proprietary account. See Options 7 Section 1(c).
\11\ A ``Professional Customer'' is a person or entity that is
not a broker/dealer and is not a Priority Customer. See Options 7
Section 1(c).
\12\ This includes the aggregate number of ``closing purchase
transactions'' in the affected series, defined as an Exchange
Transaction that will reduce or eliminate a short position in an
options contract, see Options 1, Section 1(a)(9), and the aggregate
number of ``closing writing transactions,'' defined as an Exchange
Transaction that will reduce or eliminate a long position in an
options contract. See Options 1, Section 1(a)(10).
\13\ These are the same types of information available on PHOTO,
and the other trade outline products offered by Nasdaq exchanges.
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End of Day Information
The MRX Trade Outline End of Day file provides opening buy, closing
buy, opening sell and closing sell information, including option first
trade price, option high trade price, option low trade price, and
option last trade price. The End of Day file is updated during an
overnight process with additional fields \14\ and will be available the
following morning, providing aggregate data for the entire trading
session.
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\14\ The additional fields are: First Trade Price, High Trade
Price, Low Trade Price, Last Trade Price, Underlying Close,
Moneyness, Total Exchange volume, Total Industry Volume for the
Series, and Open Interest.
---------------------------------------------------------------------------
Intra-Day Information
Intra-Day information will be released in scheduled ``snapshots''
available every 10 minutes for all options series over the course of
the trading day. These snapshots will be updated to reflect whatever
activity occurred, or to indicate that no activity occurred.\15\
---------------------------------------------------------------------------
\15\ Subscribers will receive the first snapshot at 9:42 a.m.
ET, representing data captured from 9:30 a.m. to 9:40 a.m., and the
second calculation at 9:52 a.m., representing data from both the
most recent snapshot and previous snapshots, and continuing over the
course of the trading day. The final Intra-Day snapshot will be
distributed at 4:15 p.m.
---------------------------------------------------------------------------
Historical Information
Historical data will be available through ad hoc requests for
information in both End of Day and Intra-Day formats for all option
series traded for every calendar month after September 2017, based on
specific request.\16\
---------------------------------------------------------------------------
\16\ Market participants generally use historical files for
model testing and research, and the period of time required by a
particular market participant will depend on its unique testing and
research needs as well as whether it is using End of Day or Intra-
Day information. Some customers, for example, may request years of
data, while others only months, or even a single month. The same
principle applies to End of Day vs. Intra-Day information.
---------------------------------------------------------------------------
[[Page 86387]]
MRX Options Trade Outline includes proprietary Exchange trading
data and does not disseminate any intra-day trading data from any other
exchange.\17\
---------------------------------------------------------------------------
\17\ The End of Day report includes a field that presents Total
Industry Volume for the Series.
---------------------------------------------------------------------------
The information provided, both in End of Day and Intra-Day formats,
will not be a real-time data feed.
MRX Options Trade Outline is a completely voluntary product in that
the Exchange is not required by any rule or regulation to make this
data available and potential subscribers may purchase it only if they
voluntarily choose to do so.
Nasdaq's experience is that investment banks, market makers, asset
managers and other buy-side investors purchase trade outline products.
Proposed Fees
The Exchange proposes to allow unlimited external distribution of
Derived Data from MRX Options Trade Outline for a monthly fee of
$3,000. This will encourage Distributors to create and sell analytic
products to the general investing public. External distribution of
Derived Data is not currently permitted. The same Derived Data license
is also offered by the Nasdaq PHLX, LLC (``Phlx''),\18\ Nasdaq ISE, LLC
(``ISE''),\19\ and Nasdaq GEMX, LLC (``GEMX'') \20\ exchanges and the
Nasdaq Stock Market LLC (``Nasdaq Options Market'' or ``NOM'').\21\ A
Derived Data license is also being proposed for the BX exchange
concurrently with this proposal.
---------------------------------------------------------------------------
\18\ See Securities Exchange Act Release No. 93293 (October 12,
2021), 86 FR 57716 (October 18, 2021) (SR-Phlx-2021-58).
\19\ See ISE Options 7, Section 10(A).
\20\ See GEMX Options 7, Section 7(D).
\21\ See Nasdaq Options 7, Section 4.
---------------------------------------------------------------------------
Derived Data is ``any information generated in whole or in part
from Exchange Information \22\ such that the information generated
cannot be reverse engineered to recreate Exchange Information, or be
used to create other data that is recognizable as a reasonable
substitute for such Exchange Information.''
---------------------------------------------------------------------------
\22\ ``Exchange Information'' is any data or information that
has been collected, validated, processed and/or recorded by the
Exchange and made available for transmission relating to: (i)
eligible securities or other financial instruments, markets,
products, vehicles, indicators, or devices; (ii) activities of the
Exchange; or (iii) other information or data from the Exchange.
Information includes, but is not limited to, any element of
information used or processed in such a way that Exchange
Information or a substitute for such Information can be identified,
recalculated or re-engineered from the processed information.
---------------------------------------------------------------------------
Fees for external distribution of Derived Data from MRX Options
Trade Outline are in addition to fees for the End of Day product or the
Intraday product, or both, as applicable.
The proposal is designed to promote the dissemination of a variety
of analytical insights--generally used only by investment banks, market
makers, asset managers and other buy-side investors--to the general
investing public by creating an incentive for market data vendors to
identify, develop, and sell sentiment indicators and other products.
The proposal will spur competition among not only exchanges, but
vendors as well, thereby promoting innovation and improving the
dissemination of information to the general investing public.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\23\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\24\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees, and
other charges among members and issuers and other persons using any
facility, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\23\ 15 U.S.C. 78f(b).
\24\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
Equitable Allocation of Reasonable Dues, Fees and Other Charges
The proposed changes are an equitable allocation of reasonable
dues, fees and other charges because: (i) the trade profile products
offered by multiple exchanges are substitutes, and customers are free
to choose which product they purchase; and (ii) the proposed fees are
comparable to the fees charged by other exchanges, and customers are
free to purchase other products if the Exchange has mistaken the value
of its product.
Substitution
Products similar to Trade Outline are offered by many exchanges,
including Nasdaq affiliates such as Phlx,\25\ ISE,\26\ GEMX,\27\ and
NOM,\28\ and options markets not affiliated with Nasdaq such as Cboe
Options Exchange (``Cboe''),\29\ NYSE American Options (``NYSE
American''),\30\ NYSE Arca Options (``NYSE Arca''),\31\ BOX Options
Market LLC (``BOX''),\32\ and MIAX Pearl Options Exchange
(``Pearl'').\33\
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\25\ See Securities Exchange Act Release No. 62887 (September
10, 2010), 75 FR 57092 (September 17, 2010) (SR-Phlx-2010-121)
(introducing PHOTO on September 1, 2010),
\26\ See Nasdaq ISE Rules, Options 7, Section 10(A) and (B)
(Nasdaq ISE Open/Close Trade Profile End of Day; Nasdaq ISE Open/
Close Trade Profile Intraday).
\27\ See Nasdaq GEMX Rules, Options 7, Sections 7(D) (Nasdaq
GEMX Open/Close End of Day Trade Profile) and 7(E) (Nasdaq GEMX
Open/Close Intraday Trade Profile).
\28\ See Nasdaq Rules, Options 7, Section 4 (Nasdaq Options
Trade Outline (``NOTO'')).
\29\ See, e.g., Securities Exchange Act Release No. 94913 (May
13, 2022), 87 FR 30534 (May 19, 2022) (SR-Cboe-2022-023) (describing
End of Day and Intra-Day Open-Close Data as a summary of trading
activity on the exchange at the option level by origin, side of the
market, price, and transaction type).
\30\ See, e.g., Securities Exchange Act Release No. 93803
(December 16, 2021, 86 FR 72647 (December 22, 2021) (SR-NYSEAMER-
2021-46) (describing the NYSE Options Open-Close Volume Summary as a
volume summary of trading activity on the exchange at the option
level by origin, side of the market, contract volume and transaction
type).
\31\ See, e.g., Securities Exchange Act Release No. 93132
(September 27, 2021), 86 FR 54499 (October 1, 2021) (SR-NYSEArca-
2021-82) (describing the NYSE Options Open-Close Volume Summary as a
volume summary of trading activity on the exchange at the option
level by origin, side of the market, contract volume and transaction
type).
\32\ See, e.g., Securities Exchange Act Release No. 97174 (March
21, 2023), 88 FR 18201 (March 27, 2023) (SR-BOX-2023-09) (describing
the BOX exchange Open-Close Data report as providing volume by
origin, buying/selling, and opening/closing criteria).
\33\ See, e.g., Securities Exchange Act Release No. 91964 (May
21, 2021), 86 FR 28667 (May 27, 2021) (SR-PEARL-2021-24)
(introducing the Open-Close Report).
---------------------------------------------------------------------------
All of the trade outline products offered by the Nasdaq-affiliated
exchanges include a license for the unlimited external distribution of
Derived Data.\34\ As noted above, BX will be proposing the same license
together with this proposal. All of these Derived Data licenses are
direct substitutes.
---------------------------------------------------------------------------
\34\ See supra notes 24-27.
---------------------------------------------------------------------------
The underlying trade outline data provided by one exchange is
generally similar to that provided by other exchanges because order
flow can move from one exchange to another, and market sentiment trends
that appear on one exchange are likely to be similar to the sentiment
trends on other exchanges. The key differentiator among trade outline
products depends on the volume of transactions on a given exchange; the
greater the volume of transactions, the greater the value of the data.
Customers generally purchase sufficient data to provide a view of the
market, but not more, as the value of data from each additional
exchange yields diminishing returns. Because customers can substitute
trade outline products among exchanges, customers can also substitute
the proposed Derived Data license for MRX with the Derived Data
licenses of any of its affiliates.
The proposed Derived Data license is also subject to potential
competition from exchanges not affiliated with Nasdaq. Although the
Exchange is not
[[Page 86388]]
aware of any exchanges offering a Derived Data license for trade
outline other than its own affiliates, any exchange that wishes to
allow distribution of a Derived Data product based on options trading
information would be able to do so with an immediately effective fee
filing similar to this proposal.
All trade outline products are optional. Customers can, and do,
choose to forego the information from Trade Outline or any of its
competitor products when making a trade, and the same holds for Derived
Data from trade outline products.
As the Commission and courts \35\ have recognized, ``[i]f
competitive forces are operative, the self-interest of the exchanges
themselves will work powerfully to constrain unreasonable or unfair
behavior.'' \36\ Accordingly, ``the existence of significant
competition provides a substantial basis for finding that the terms of
an exchange's fee proposal are equitable, fair, reasonable, and not
unreasonably or unfairly discriminatory.'' \37\ The Commission and the
courts have repeatedly expressed their preference for competition over
regulatory intervention in determining prices, products, and services
in the securities markets. In Regulation NMS, while adopting a series
of steps to improve the current market model, the Commission
highlighted the importance of market forces in determining prices and
SRO revenues, and also recognized that current regulation of the market
system ``has been remarkably successful in promoting market competition
in its broader forms that are most important to investors and listed
companies.'' \38\
---------------------------------------------------------------------------
\35\ The decision of the United States Court of Appeals for the
District of Columbia Circuit in NetCoalition v. SEC, 615 F.3d 525
(D.C. Cir. 2010) upheld the Commission's reliance upon competitive
markets to set reasonable and equitably allocated fees for market
data. ``In fact, the legislative history indicates that the Congress
intended that the market system evolve through the interplay of
competitive forces as unnecessary regulatory restrictions are
removed and that the SEC wield its regulatory power in those
situations where competition may not be sufficient, such as in the
creation of a consolidated transactional reporting system.''
NetCoalition I at 535 (quoting H.R. Rep. No. 94-229, at 92 (1975),
as reprinted in 1975 U.S.C.C.A.N. 321, 323) (internal quotation
marks omitted). The court agreed with the Commission's conclusion
that ``Congress intended that competitive forces should dictate the
services and practices that constitute the U.S. national market
system for trading equity securities.'' Id. (quoting Securities
Exchange Act Release No. 59039 (December 2, 2008), 73 FR 74770,
74771 (December 9, 2008) (SR-NYSEArca-2006-21)).
\36\ See Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770 (December 9, 2008) (SR-NYSEArca-2006-21).
\37\ See id.
\38\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
---------------------------------------------------------------------------
Because the proposed Derived Data license is currently subject to
competition from other Nasdaq exchanges, and potentially subject to
competition from other exchanges, the Exchange will be limited in what
it is able to charge for the license, and the proposed fee is therefore
a reasonable allocation of dues, fees and other charges.
Comparability
The proposed fees for the Derived Data license are comparable to
the fees charged by similarly situated exchanges for the same license.
All of the Nasdaq-affiliated exchanges offer a Derived Data license
for their trade outline products. As explained above, the value of any
trade outline product is determined in part by the number of underlying
transactions reflected in the data.
The proposed fees for the Derived Data license are the same as the
fees charged by similarly situated exchanges. MRX has a market share of
approximately 4 percent, similar to that of GEMX (at approximately 3
percent).\39\ The proposed monthly fee of $3,000 for the unlimited
external distribution of Derived Data is identical to the fee charged
by GEMX.\40\
---------------------------------------------------------------------------
\39\ See NasdaqTrader.com, ``Options Market Statistics,''
available at https://www.nasdaqtrader.com/Trader.aspx?id=OptionsVolumeSummary.
\40\ See GEMX Options 7, Section 7(D).
---------------------------------------------------------------------------
The volume of trading on the MRX exchange is also similar to that
on the BX exchange, which has a market share of approximately 2
percent.\41\ Together with this filing, BX will propose the same
monthly fee of $3,000 as MRX for the unlimited external distribution of
Derived Data.
---------------------------------------------------------------------------
\41\ See supra note 38.
---------------------------------------------------------------------------
The Nasdaq-affiliated exchanges with larger market shares have
comparably higher fees for the unlimited external distribution of
Derived Data. Nasdaq Options Market, with a market share of
approximately 5 percent,\42\ has a fee of $4,000 per month for the
unlimited external distribution of Derived Data.\43\ ISE, with a market
share of approximately 7 percent,\44\ has a fee of $4,500 per month for
the unlimited external distribution of Derived Data.\45\ PHLX, with a
market share of approximately 9 percent,\46\ has a fee of $5,000 per
month for the unlimited external distribution of Derived Data.\47\
---------------------------------------------------------------------------
\42\ See id.
\43\ See Nasdaq Options 7, Section 4.
\44\ See supra note 38.
\45\ See ISE Options 7, Section 10(A).
\46\ See supra note 38.
\47\ See PHLX Options 7, Section 10.
---------------------------------------------------------------------------
The proposed fees are therefore comparable to those charged by
similarly situated exchanges and consistent with the fees for Derived
Data licenses in the market overall. If the Exchange is wrong in its
assessment of fees, it will lose sales as a result.
The Proposal Does Not Permit Unfair Discrimination
The proposed Derived Data license is available to all market
participants, including members and non-members, and all current and
potential distributors, on the same terms. Nothing in the proposal
treats any category of market participant any differently from any
other category.
It is reasonable and not unfair discrimination to charge an
external distributor of Derived Data a $3,000 licensing fee that is not
charged for internal usage. External distribution is fundamentally
different than internal use. Vendors ordinarily charge a fee to their
downstream customers for this service, and, even if the vendor is not
charging a specific fee for this particular service, Derived Data
products from the Exchange will be part of a suite of offerings that
generally promote sales. It is not unfair discrimination to charge a
licensing fee for a product that generates downstream revenue.
It is also not unfair discrimination to allow the redistribution of
Derived Data, but not the underlying information. Neither exchanges nor
vendors ordinarily allow redistribution of analytic products--such
products are typically designed solely for the use of direct customers,
not for redistribution to the customers of customers in the manner of a
data feed.
The proposed licensing structure provides an incentive for vendors
to innovate with new compelling and varied analytic products for the
general investing public that will provide access to market sentiment
insights currently available only to sophisticated investors.
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 not necessary or appropriate in
furtherance of the purposes of the Act. In terms of inter-market
competition, the Exchange notes that it operates in a highly
competitive market in which market
[[Page 86389]]
participants can readily favor competing venues if they deem fee levels
at a particular venue to be excessive, or rebate opportunities
available at other venues to be more favorable. In such an environment,
the Exchange must continually adjust its fees to remain competitive
with other exchanges and with alternative trading systems that have
been exempted from compliance with the statutory standards applicable
to exchanges. Because competitors are free to modify their own fees in
response, and because market participants may readily adjust their
order routing practices, the Exchange believes that the degree to which
fee changes in this market may impose any burden on competition is
extremely limited.
Intermarket Competition
Nothing in the proposal burdens inter-market competition (the
competition among self-regulatory organizations). As discussed above,
MRX Trade Outline is subject to direct competition from other options
exchanges that offer similar products. Any of these exchanges can
replicate this proposal in full or in part, and nothing in the proposal
would interfere with the ability of any exchange to do so.
Intramarket Competition
Nothing in the proposal burdens intra-market competition (the
competition among consumers of exchange data). Trade Outline is
available to any customer under the same fee schedule as any other
customer, and any market participant that wishes to purchase a license
to distribute Derived Data can do so on a non-discriminatory basis.
Indeed, the proposal is designed to foster competition for vendors
as well as exchanges by creating an incentive for market data vendors
to identify, develop, and sell analytic indicators to help investors
inform their investments strategies and analytic models.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
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)(ii) of the Act.\48\ 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: (i) necessary or appropriate in the public
interest; (ii) for the protection of investors; or (iii) otherwise in
furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.
---------------------------------------------------------------------------
\48\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
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-MRX-2024-40 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-MRX-2024-40. 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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-MRX-2024-40 and should be
submitted on or before November 20, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\49\
---------------------------------------------------------------------------
\49\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-25061 Filed 10-29-24; 8:45 am]
BILLING CODE 8011-01-P
