Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Fees for Its New Offering of Market Data Reports, 90807-90811 [2024-26748]
Download as PDF
<![CDATA[
Federal Register / Vol. 89, No. 222 / Monday, November 18, 2024 / Notices
• Send an email to rule-comments@
sec.gov. Please include file number SR–
NYSECHX–2024–31 on the subject line.
Paper Comments
Management, LLC, rduff@
redwoodim.com.
[Investment Company Act Release No.
35382; 812–15642]
FOR FURTHER INFORMATION CONTACT:
Redwood Real Estate Income Fund
and Redwood Investment
Management, LLC
All submissions should refer to file
number SR–NYSECHX–2024–31. 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–NYSECHX–2024–31 and should be
submitted on or before December 9,
2024.
AGENCY:
[FR Doc. 2024–26746 Filed 11–15–24; 8:45 am]
BILLING CODE 8011–01–P
lotter on DSK11XQN23PROD with NOTICES1
SECURITIES AND EXCHANGE
COMMISSION
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Sherry R. Haywood,
Assistant Secretary.
24 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:17 Nov 15, 2024
Jkt 265001
90807
November 12, 2024.
Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’).
ACTION: Notice.
Notice of an application under section
6(c) of the Investment Company Act of
1940 (the ‘‘Act’’) for an exemption from
sections 18(a)(2), 18(c) and 18(i) of the
Act, under sections 6(c) and 23(c) of the
Act for an exemption from rule 23c–3
under the Act, and for an order pursuant
to section 17(d) of the Act and rule 17d–
1 under the Act.
SUMMARY OF APPLICATION: Applicants
request an order to permit certain
registered closed-end investment
companies to issue multiple classes of
shares and to impose asset-based
distribution and/or service fees and
early withdrawal charges.
APPLICANTS: Redwood Real Estate
Income Fund and Redwood Investment
Management, LLC.
FILING DATES: The application was filed
on October 15, 2024.
HEARING OR NOTIFICATION OF HEARING: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing on any application by
emailing the SEC’s Secretary at
Secretarys-Office@sec.gov and serving
the Applicants 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 Commission
by 5:30 p.m. on December 9, 2024, and
should be accompanied by proof of
service on the 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 upon the desirability
of a hearing on the matter, the reason for
the request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
emailing the Commission’s Secretary.
ADDRESSES: The Commission:
Secretarys-Office@sec.gov. Applicants:
Joshua B. Deringer, Esq., Faegre Drinker
Biddle & Reath LLP, joshua.deringer@
faegredrinker.com, with a copy to
Richard Duff, Redwood Investment
PO 00000
Frm 00145
Fmt 4703
Sfmt 4703
Trace W. Rakestraw, Senior Special
Counsel, at (202) 551–6825 (Division of
Investment Management, Chief
Counsel’s Office).
SUPPLEMENTARY INFORMATION: For
Applicants’ representations, legal
analysis, and conditions, please refer to
Applicants’ application, dated October
15, 2024, which may be obtained via the
Commission’s website by searching for
the file number at the top of this
document, 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.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–26761 Filed 11–15–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101581; File No. SR–
CboeEDGA–2024–046]
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Adopt Fees
for Its New Offering of Market Data
Reports
November 12, 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 November
1, 2024, Cboe EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Securities and Exchange Commission
(‘‘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 EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) proposes to
adopt fees for its new offering of market
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
E:\FR\FM\18NON1.SGM
18NON1
90808
Federal Register / Vol. 89, No. 222 / Monday, November 18, 2024 / Notices
data reports. 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/edga/),
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.
lotter on DSK11XQN23PROD with NOTICES1
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
fee schedule to adopt fees for Cboe
Timestamping Service reports, effective
November 1, 2024. The Exchange
recently adopted a new data product
known as the Cboe Timestamping
Service.3 The Cboe Timestamping
Service provides timestamp information
for orders and cancels for market
participants. More specifically, the Cboe
Timestamping Service reports provide
various timestamps relating to the
message lifecycle throughout the
exchange system. The first report—the
Missed Liquidity Report—covers order
messages of the Member only and the
second report—Cancels Report—covers
cancel messages of the Member only.
The reports are optional products that
are available to all Members and
Members may opt to choose both
reports, one report, or neither report.
The Cancels Report provides response
time details for orders that rest on the
book where the Member attempted to
cancel that resting order or any other
resting order but was unable to do so as
the resting order was executed before
the system processed the cancel
message. The Cancels Report assists the
Member in determining by how much
time that order missed being canceled
instead of executing.
3 See Securities Exchange Act Release No. 100803
(August 28, 2024), 89 FR 68948 (August 22, 2024)
(SR–CboeEDGA–2024–034).
VerDate Sep<11>2014
17:17 Nov 15, 2024
Jkt 265001
The Missed Liquidity Report provides
time details for executions of orders that
rest on the book where the Member
attempted to execute against that resting
order within an Exchange-determined
amount of time (not to exceed 1
millisecond) after receipt of the first
attempt to execute against the resting
order and within an Exchangedetermined amount of time (not to
exceed 100 microseconds) before receipt
of the first attempt to execute against the
resting order.
Both the Missed Liquidity Report and
Cancels Report include the following
data elements for orders 4 and cancel
messages,5 respectively: (1) Member
Firm ID; (2) Symbol; (3) Execution ID; 6
(3) Exchange System Timestamps for
orders and cancels; 7 (4) Matching Unit
number; 8 (5) Queued; 9 (6) Port Type; 10
and (7) Aggressor Order Type.11 No
specific information about resting orders
on the Exchange book are provided.
These reports are in response to
requests from Members for additional
data concerning the timeliness of their
incoming orders, cancel messages and
executions against resting orders. The
Exchange believes these reports will
increase transparency by providing
Members with an opportunity to learn
more about better opportunities to
access liquidity and receive better
execution rates and improve order
cancel success.
The Exchange notes that the data
included in the reports are based only
on the data of the market participant
that opts to subscribe to the reports
(‘‘Recipient Member’’) and do not
include information related to any
Member other than the Recipient
Member. Additionally, neither report
includes real-time market data. Rather,
the reports contain historical data from
the prior trading day and are available
after the end of the trading day,
generally on a T+1 basis.
The Exchange now proposes to assess
the following monthly fees for Members
that wish to purchase the Cancels
Report and/or the Missed Liquidity
Report. The Exchange proposes a
monthly flat fee of $1,000 for the
Cancels Report for a subscribing
Member. The Exchange also proposes a
progressive monthly fee structure for the
Missed Liquidity Report based on the
Member’s subscribing logical (FIX or
BOE) order entry ports (the ‘‘Ports’’) 12
with the following tiers: $1,500 for 1–10
Ports, $2,000 for 11–20 Ports and $2,500
for 21 and more Ports.13 For a midmonth subscription, the monthly fee(s)
shall be prorated based on the initial
date of the subscription.14
2. Statutory Basis
4 The Missed Liquidity Report only includes trade
events which are triggered by an order that removed
liquidity on entry and will exclude trade events
resulting from: elected stop orders, orders routed
and executed at away venues, and peg order
movements, and auctions.
5 Includes individual order cancellations, mass
cancels, and purge orders messages that are sent via
Financial Information Exchange (‘‘FIX’’) protocol or
Binary Order Entry (BOE) protocol by a subscriber.
6 The Execution ID is a unique reference number
assigned by the Exchange for each trade.
7 Includes Network Discovery Time (which is a
network hardware switch timestamp taken at the
network capture point); Order Handler NIC
Timestamp (which is a hardware timestamp that
represents when a BOE order handler server NIC
observed the message); Order Handler Received
Timestamp (which is software timestamp that
represents when the FIX or BOE order handler has
begun processing the order after the socket read);
Order Handler Send Timestamp (which represents
when the FIX or BOE order handler has finished
processing the order and begun sending to the
matching engine); Matching Engine NIC Timestamp
(which is a hardware timestamp that represents
when the target matching engine server NIC
observed the message); and Matching Engine
Transaction Timestamp (which is a software
timestamp that represents when the matching
engine has started processing an event).
8 Represents the matching unit number.
9 Flag to indicate whether a message was delayed
due to message in flight limits (i.e., a limit on the
total number of messages in flight between an order
handler and a matching engine).
10 Refers to the port type used by the session to
send the applicable message.
11 Indicates whether the order type of the
response order that executed against the resting
order was a new order or modify message.
PO 00000
Frm 00146
Fmt 4703
Sfmt 4703
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.15 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
12 Based on a Members’ unique needs, Members
may choose which Ports (if any) it would like to
subscribe to the Missed Liquidity Report. For
example, a Member that has 20 Ports, but is only
interested in receiving data on 10 of their Ports
would then be charged the $1,500 tier fee for its
subscribing Ports.
13 The Exchange proposes to make clear in the
Fees Schedule that the proposed fees are not
progressive (i.e., if a Member requests the Missed
Liquidity Report for 20 Ports, it will be assessed
$2,000 per month).
14 Fees will be assessed on a look-back basis
based on the maximum number of subscribing Ports
a Member had in the prior calendar month. For
example, if a Member had 10 Ports that were
subscribed to the Missed Liquidity Report from
September 1st–September 26th and the Member
added an additional Port to the Missed Liquidity
Report on September 27th (for a total of 11
subscribing Ports), the Member would then be
assessed a fee of $2,000 for the month of September
for the Missed Liquidity Report. Additionally, the
Exchange proposes to make clear in its fee schedule
that new subscribers will be charged a prorated fee
for a mid-month subscription based on the initial
date of the subscription.
15 15 U.S.C. 78f(b).
E:\FR\FM\18NON1.SGM
18NON1
lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 89, No. 222 / Monday, November 18, 2024 / Notices
6(b)(5) 16 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 17 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange also believes the
proposed rule change is consistent with
Section 6(b)(4) of the Act,18 which
requires that Exchange rules provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
Members and other persons using its
facilities.
In adopting Regulation NMS, the
Commission granted self-regulatory
organizations (‘‘SROs’’) and broker
dealers increased authority and
flexibility to offer new and unique
market data to consumers of such data.
It was believed that this authority would
expand the amount of data available to
users and consumers of such data and
also spur innovation and competition
for the provision of market data. The
Exchange believes that the proposed
reports are the sort of market data
product that the Commission
envisioned when it adopted Regulation
NMS.
The Commission concluded that
Regulation NMS—by deregulating the
market in proprietary data—would itself
further the Act’s goals of facilitating
efficiency and competition:
‘‘[E]fficiency is promoted when brokerdealers who do not need the data
beyond the prices, sizes, market center
identifications of the NBBO and
consolidated last sale information are
not required to receive (and pay for)
such data. The Commission also
believes that efficiency is promoted
when broker-dealers may choose to
receive (and pay for) additional market
data based on their own internal
analysis of the need for such data.’’ 19
16 15
U.S.C. 78f(b)(5).
17 Id.
18 15
U.S.C. 78f(b)(4).
Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005)
(‘‘Regulation NMS Adopting Release’’).
By removing ‘‘unnecessary regulatory
restrictions’’ on the ability of exchanges
to sell their own data, Regulation NMS
advanced the goals of the Act and the
principles reflected in its legislative
history. The Cboe Timestamping Service
(i.e., the Missed Liquidity and Cancels
Reports) provides investors with new
options for receiving market data, which
was a primary goal of the market data
amendments adopted by Regulation
NMS.20
The reports are designed for Members
that are interested in gaining insight
into latency in connection with their
respective (1) orders that failed to
execute against an order resting on the
Exchange order book and/or (2) cancel
messages that failed to cancel resting
orders. The Exchange believes that
providing this optional data to
interested Members for a fee is
consistent with facilitating transactions
in securities, removing impediments to
and perfecting the mechanism of a free
and open market and a national market
system, and, in general, protecting
investors and the public interest
because it provides Members with an
opportunity to receive additional
information and insight into their
trading activity on the Exchange.
The Exchange believes the fee
proposals for both the Missed Liquidity
Report and Cancels Report are
reasonable as the Exchange is offering
any Member access to subscribe to one
or both report(s) in the Member’s sole
discretion based on their unique
business needs. The reports are optional
for Members to subscribe to if they
believe it to be helpful and are not
required for Members to purchase in
order to access the Exchange.
Additionally, Members may cancel their
usage of this report at any time.
The Exchange believes that the fee
structure for the Missing Liquidity
Report reflects an equitable allocation
and will not be unfairly discriminatory
as it is a voluntary product designed to
ensure that the amount of the charge is
tailored to the specific port usage
patterns of the Recipient Member. The
range of fee options further ensures that
Recipient Members are not charged a fee
that is inequitably disproportionate to
the use that they make of the product.
Additionally, Recipient Members aren’t
required to pay the set threshold for all
Ports it has in a given month, instead,
Members are able to select which Ports
(if any) they would like to subscribe to
the Missing Liquidity Report for a given
month in order to study its orders in the
market to be better informed market
19 See
VerDate Sep<11>2014
17:17 Nov 15, 2024
Jkt 265001
20 See Regulation NMS Adopting Release, supra,
at 37503.
PO 00000
Frm 00147
Fmt 4703
Sfmt 4703
90809
participants. Members are under no
obligation to subscribe to the Missing
Liquidity Report if it does not desire to
do so.
The fee structure for the Missing
Liquidity Report closely aligns to the fee
structure of the previously offered
Missed Opportunity—Latency report as
part of its NASDAQ Trader Insights
offering.21 However, the NASDAQ
Missed Opportunity—Latency report
included an additional tier with a
higher price than the Exchange’s
proposed fee structure.22 The NASDAQ
structure included an additional tier
level that imposes a monthly fee of
$3,500 for subscribers that have over 25
ports 23 while the Exchange fee structure
would provide its similar report for a fee
of $2,500 for a Recipient Member that
has 25 ports.
The Exchange believes its proposed
fee for the Cancels Report is reasonable
as it’s a modest, flat fee of $1,000/
month. As the Exchange offers mass
cancels through Purge Ports in addition
to standard cancels through the Ports,
and since cancels may occur through a
variety of port types as opposed to just
the Ports, the Exchange found a modest,
flat fee to be more appropriate for the
Cancels Report.
The proposed fees are also reasonable
as they are lower than the fees assessed
for similar reports offered by other
exchanges. For example, the MIAX
Emerald Liquidity Taker Event Report is
substantially similar to the Missed
Liquidity Report and Cancels Report 24
and has a monthly fee of $4,000 or an
annual fee of $24,000.25 A Member is
21 See Securities Exchange Act Release No. 78886
(September 20, 2016), 81 FR 66113 (September 26,
2016) (SR–NASDAQ–2016–101) (Order Granting
Approval of Proposed Rule Change, as Modified by
Amendment Nos. 1 and 2, To Add NASDAQ Rule
7046)(Nasdaq Trading Insights).
22 See Securities Exchange Act Release No. 79035
(October 11, 2016), 81 FR 70207 (October 4, 2016)
(SR–NASDAQ–2016–124).
23 Id.
24 See e.g., MIAX Emerald Rule 531. See also
Securities Exchange Act Release No. 91356 (March
18, 2021), 86 FR 15759 (March 24, 2021) (SR–
EMERALD–2021–09). Although not clearly defined,
the Exchange believes that MIAX Emerald’s
Liquidity Taker Event Report also provides
information relating to cancel messages.
Particularly, MIAX Emerald Liquidity Taker Event
Report provides, among other things, data relating
to the ‘‘type of each response submitted by the
Recipient Member.’’ See MIAX Emerald Rule
5.31(a)(iii)(C). MIAX Emerald’s technical
specifications outline the various types of available
liquidity messages including, Simple Mass Quote
Cancel Request and Mass Liquidity Cancel Request
See MIAX Express Interface for Quoting and
Trading Options, MEI Interface Specification,
Section 4.1 (Liquidity Messages), available at:
MIAX_Express_Interface_MEI_v2.2a.pdf
(miaxglobal.com).
25 See MIAX Emerald Fee Schedule, Section 7,
Reports.
E:\FR\FM\18NON1.SGM
18NON1
90810
Federal Register / Vol. 89, No. 222 / Monday, November 18, 2024 / Notices
able to receive both the Cancels Report
and the Missed Liquidity Report for a
monthly fee no greater than $3,500 a
month—making the Cboe Timestamping
Reports less than the MIAX Emerald
report. With the Exchange’s approach of
(i) bifurcating the orders and cancels to
two separate and distinct offerings
(Missing Liquidity Report and Cancels
Report) and (ii) allowing Members to
select its subscribing Ports for the
Missed Liquidity Report, it allows
Members to further curb costs if they
choose to subscribe to one or both of
these reports. As such, the Exchange
believes that the proposed fees for the
both the Missed Liquidity Report and
Cancels Report are fair and reasonable
as they are set at a level either similar
to or lower than other exchanges that
offer similar reports.
The proposal would also not permit
unfair discrimination as both the
Cancels Report and Missed Liquidity
Report will be available to all Members,
who may opt to subscribe to one, both,
or neither, and will help to protect a free
and open market by continuing to
provide additional non-core data
(offered on an optional basis for a fee)
to the marketplace and by providing
investors with greater choices.26 As
such, the Exchange believes that the
proposed fees are reasonable and set at
a level to compete with other exchanges
that may choose to offer similar reports.
Moreover, if a market participant views
another exchange’s potential report as
more attractive, then such market
participant can merely choose not to
purchase the Exchange’s reports and
instead purchase another exchange’s
similar data product(s), which may offer
similar data points, albeit based on that
other market’s trading activity.
lotter on DSK11XQN23PROD with NOTICES1
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes the reports will
contribute to robust competition among
national securities exchanges. The
Missed Liquidity Report and Late
Cancels Report further enhances
competition between exchanges by
26 See Sec. Indus. Fin. Mkts. Ass’n (SIFMA),
Initial Decision Release No. 1015, 2016 SEC LEXIS
2278 (ALJ June 1, 2016) (finding the existence of
vigorous competition with respect to non-core
market data). See also 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) (‘‘NetCoalition I’’) (upholding the
Commission’s reliance upon competitive markets to
set reasonable and equitably allocated fees for
market data).
VerDate Sep<11>2014
17:17 Nov 15, 2024
Jkt 265001
allowing the Exchange to expand its
product offerings to include reports
similar to reports that are currently
offered by other exchanges.27
The Exchange also does not believe
the proposed fees would cause any
unnecessary or inappropriate burden on
intermarket competition as other
exchanges are free to introduce their
own comparable reports with lower
prices to better compete with the
Exchange’s offerings. The Exchange
operates in a highly competitive
environment, and its ability to price the
reports is constrained by competition
among exchanges who choose to adopt
similar products. The Exchange must
consider this in its pricing discipline in
order to compete for subscribers of the
Exchange’s market data via the reports.
For example, proposing fees that are
excessively higher than fees for
potentially similar data products would
simply serve to reduce demand for the
Exchange’s reports, which as discussed,
Members are under no obligation to
utilize. In this competitive environment,
potential purchasers are free to choose
which, if any, similar product to
purchase to satisfy their need for market
information. As a result, the Exchange
believes this proposed rule change
permits fair competition among national
securities exchanges.
The Exchange does not believe the
proposed rule change would cause any
unnecessary or inappropriate burden on
intramarket competition. Particularly,
the proposed fees apply uniformly to
any purchaser in that the Exchange does
not differentiate between the different
Members that may purchase the reports.
While the Exchange does propose to
implement tiered pricing for its Missed
Liquidity Report (similar to the pricing
used for NASDAQ Trader Insight
offering),28 the tiered pricing shall apply
to all Members that wish to purchase
the Missed Liquidity Report and this
proposed pricing structure is reflective
of the specific port usage patterns of the
Recipient Member. The proposed fees
are set at a modest level that would
allow any interested Member to
purchase such data based on their
business needs.
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.
27 See
e.g., MIAX Emerald Rule 531.
Securities Exchange Act Release No. 79035
(October 11, 2016), 81 FR 70207 (October 4, 2016)
(SR–NASDAQ–2016–124).
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 29 and paragraph (f) of Rule
19b–4 30 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
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:
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–
CboeEDGA–2024–046 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–CboeEDGA–2024–046. 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
28 See
PO 00000
Frm 00148
Fmt 4703
Sfmt 4703
29 15
30 17
E:\FR\FM\18NON1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
18NON1
Federal Register / Vol. 89, No. 222 / Monday, November 18, 2024 / Notices
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–CboeEDGA–2024–046 and should
be submitted on or before December 9,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–26748 Filed 11–15–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
The application was filed
on October 18, 2024.
FILING DATES:
Destra Multi-Alternative Fund and
Destra Capital Advisors LLC
November 12, 2024.
Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’).
ACTION: Notice.
lotter on DSK11XQN23PROD with NOTICES1
AGENCY:
Notice of an application under section
6(c) of the Investment Company Act of
1940 (the ‘‘Act’’) for an exemption from
section 19(b) of the Act and rule 19b–
1 under the Act to permit registered
closed-end investment companies to
make periodic distributions of long-term
capital gains more frequently than
permitted by section 19(b) or rule 19b–
1.
SUMMARY OF APPLICATION: Applicants
request an order to permit certain
registered closed-end management
investment companies to pay as
frequently as twelve times in any one
taxable year in respect of its common
stock and as often as specified by, or
determined in accordance with the
terms of, any preferred stock issued by
the investment company subject to the
terms and conditions stated in the
application.
APPLICANTS: Destra Multi-Alternative
Fund and Destra Capital Advisors LLC.
An order granting the requested relief
will be issued unless the Commission
orders a hearing. Interested persons may
request a hearing on any application by
emailing the SEC’s Secretary at
Secretarys-Office@sec.gov and serving
the Applicants 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 Commission
by 5:30 p.m. on December 9, 2024, and
should be accompanied by proof of
service on the 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 upon the desirability
of a hearing on the matter, the reason for
the request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
emailing the Commission’s Secretary.
The Commission:
Secretarys-Office@sec.gov. Applicants:
Joshua B. Deringer, Esq., Faegre Drinker
Biddle & Reath LLP, joshua.deringer@
faegredrinker.com, with a copy to
Robert A. Watson, Destra Capital
Advisors LLC, rob.watson@
destracapital.com.
FOR FURTHER INFORMATION CONTACT:
Trace W. Rakestraw, Senior Special
Counsel, at (202) 551–6825 (Division of
Investment Management, Chief
Counsel’s Office).
For
Applicants’ representations, legal
analysis, and conditions, please refer to
Applicants’ application, dated October
18, 2024, which may be obtained via the
Commission’s website by searching for
the file number at the top of this
document, 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.
SUPPLEMENTARY INFORMATION:
For the Commission, by the Division of
Investment Management, under delegated
authority.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–26760 Filed 11–15–24; 8:45 am]
31 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:17 Nov 15, 2024
BILLING CODE 8011–01–P
Jkt 265001
SECURITIES AND EXCHANGE
COMMISSION
HEARING OR NOTIFICATION OF HEARING:
ADDRESSES:
[Investment Company Act Release No.
35381; 812–15645]
90811
PO 00000
Frm 00149
Fmt 4703
Sfmt 9990
[Release No. 34–101587; File No. SR–
CboeBZX–2024–026]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of
Withdrawal of a Proposed Rule Change
To Permit the Generic Listing and
Trading of Multi-Class ETF Shares
November 12, 2024.
On April 15, 2024, Cboe BZX
Exchange, Inc. (‘‘BZX’’ or ‘‘Exchange’’)
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 amend BZX Rule 14.11(l) to
permit the generic listing and trading of
Multi-Class ETF Shares. The proposed
rule change was published for comment
in the Federal Register on May 1, 2024.3
On May 30, 2024, pursuant to Section
19(b)(2) of the Act,4 the Commission
designated a longer period within which
to approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether to disapprove the proposed
rule change.5 On July 12, 2024, the
Commission instituted proceedings
pursuant to Section 19(b)(2)(B) of the
Act 6 to determine whether to
disapprove the proposed rule change,7
and on October 23, 2024, the
Commission designated a longer period
for Commission action on the proposed
rule change.8 On November 8, 2024, the
Exchange withdrew the proposed rule
change (SR–CboeBZX–2024–026).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–26753 Filed 11–15–24; 8:45 am]
BILLING CODE 8011–01–P
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 100034
(April 25, 2024), 89 FR 35255.
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No.
100248, 89 FR 48202 (June 5, 2024).
6 15 U.S.C. 78s(b)(2)(B).
7 See Securities Exchange Act Release No.
100522, 89 FR 58463 (July 18, 2024).
8 See Securities Exchange Act Release No.
101422, 89 FR 86393 (October 30, 2024).
9 17 CFR 200.30–3(a)(12).
2 17
E:\FR\FM\18NON1.SGM
18NON1
]]>Agencies
[Federal Register Volume 89, Number 222 (Monday, November 18, 2024)]
[Notices]
[Pages 90807-90811]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26748]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101581; File No. SR-CboeEDGA-2024-046]
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Adopt Fees for Its New Offering of Market Data Reports
November 12, 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 November 1, 2024, Cboe EDGA Exchange, Inc. (the ``Exchange'' or
``EDGA'') filed with the Securities and Exchange Commission
(``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 EDGA Exchange, Inc. (the ``Exchange'' or ``EDGA'') proposes to
adopt fees for its new offering of market
[[Page 90808]]
data reports. 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/edga/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its fee schedule to adopt fees for
Cboe Timestamping Service reports, effective November 1, 2024. The
Exchange recently adopted a new data product known as the Cboe
Timestamping Service.\3\ The Cboe Timestamping Service provides
timestamp information for orders and cancels for market participants.
More specifically, the Cboe Timestamping Service reports provide
various timestamps relating to the message lifecycle throughout the
exchange system. The first report--the Missed Liquidity Report--covers
order messages of the Member only and the second report--Cancels
Report--covers cancel messages of the Member only. The reports are
optional products that are available to all Members and Members may opt
to choose both reports, one report, or neither report.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 100803 (August 28,
2024), 89 FR 68948 (August 22, 2024) (SR-CboeEDGA-2024-034).
---------------------------------------------------------------------------
The Cancels Report provides response time details for orders that
rest on the book where the Member attempted to cancel that resting
order or any other resting order but was unable to do so as the resting
order was executed before the system processed the cancel message. The
Cancels Report assists the Member in determining by how much time that
order missed being canceled instead of executing.
The Missed Liquidity Report provides time details for executions of
orders that rest on the book where the Member attempted to execute
against that resting order within an Exchange-determined amount of time
(not to exceed 1 millisecond) after receipt of the first attempt to
execute against the resting order and within an Exchange-determined
amount of time (not to exceed 100 microseconds) before receipt of the
first attempt to execute against the resting order.
Both the Missed Liquidity Report and Cancels Report include the
following data elements for orders \4\ and cancel messages,\5\
respectively: (1) Member Firm ID; (2) Symbol; (3) Execution ID; \6\ (3)
Exchange System Timestamps for orders and cancels; \7\ (4) Matching
Unit number; \8\ (5) Queued; \9\ (6) Port Type; \10\ and (7) Aggressor
Order Type.\11\ No specific information about resting orders on the
Exchange book are provided.
---------------------------------------------------------------------------
\4\ The Missed Liquidity Report only includes trade events which
are triggered by an order that removed liquidity on entry and will
exclude trade events resulting from: elected stop orders, orders
routed and executed at away venues, and peg order movements, and
auctions.
\5\ Includes individual order cancellations, mass cancels, and
purge orders messages that are sent via Financial Information
Exchange (``FIX'') protocol or Binary Order Entry (BOE) protocol by
a subscriber.
\6\ The Execution ID is a unique reference number assigned by
the Exchange for each trade.
\7\ Includes Network Discovery Time (which is a network hardware
switch timestamp taken at the network capture point); Order Handler
NIC Timestamp (which is a hardware timestamp that represents when a
BOE order handler server NIC observed the message); Order Handler
Received Timestamp (which is software timestamp that represents when
the FIX or BOE order handler has begun processing the order after
the socket read); Order Handler Send Timestamp (which represents
when the FIX or BOE order handler has finished processing the order
and begun sending to the matching engine); Matching Engine NIC
Timestamp (which is a hardware timestamp that represents when the
target matching engine server NIC observed the message); and
Matching Engine Transaction Timestamp (which is a software timestamp
that represents when the matching engine has started processing an
event).
\8\ Represents the matching unit number.
\9\ Flag to indicate whether a message was delayed due to
message in flight limits (i.e., a limit on the total number of
messages in flight between an order handler and a matching engine).
\10\ Refers to the port type used by the session to send the
applicable message.
\11\ Indicates whether the order type of the response order that
executed against the resting order was a new order or modify
message.
---------------------------------------------------------------------------
These reports are in response to requests from Members for
additional data concerning the timeliness of their incoming orders,
cancel messages and executions against resting orders. The Exchange
believes these reports will increase transparency by providing Members
with an opportunity to learn more about better opportunities to access
liquidity and receive better execution rates and improve order cancel
success.
The Exchange notes that the data included in the reports are based
only on the data of the market participant that opts to subscribe to
the reports (``Recipient Member'') and do not include information
related to any Member other than the Recipient Member. Additionally,
neither report includes real-time market data. Rather, the reports
contain historical data from the prior trading day and are available
after the end of the trading day, generally on a T+1 basis.
The Exchange now proposes to assess the following monthly fees for
Members that wish to purchase the Cancels Report and/or the Missed
Liquidity Report. The Exchange proposes a monthly flat fee of $1,000
for the Cancels Report for a subscribing Member. The Exchange also
proposes a progressive monthly fee structure for the Missed Liquidity
Report based on the Member's subscribing logical (FIX or BOE) order
entry ports (the ``Ports'') \12\ with the following tiers: $1,500 for
1-10 Ports, $2,000 for 11-20 Ports and $2,500 for 21 and more
Ports.\13\ For a mid-month subscription, the monthly fee(s) shall be
prorated based on the initial date of the subscription.\14\
---------------------------------------------------------------------------
\12\ Based on a Members' unique needs, Members may choose which
Ports (if any) it would like to subscribe to the Missed Liquidity
Report. For example, a Member that has 20 Ports, but is only
interested in receiving data on 10 of their Ports would then be
charged the $1,500 tier fee for its subscribing Ports.
\13\ The Exchange proposes to make clear in the Fees Schedule
that the proposed fees are not progressive (i.e., if a Member
requests the Missed Liquidity Report for 20 Ports, it will be
assessed $2,000 per month).
\14\ Fees will be assessed on a look-back basis based on the
maximum number of subscribing Ports a Member had in the prior
calendar month. For example, if a Member had 10 Ports that were
subscribed to the Missed Liquidity Report from September 1st-
September 26th and the Member added an additional Port to the Missed
Liquidity Report on September 27th (for a total of 11 subscribing
Ports), the Member would then be assessed a fee of $2,000 for the
month of September for the Missed Liquidity Report. Additionally,
the Exchange proposes to make clear in its fee schedule that new
subscribers will be charged a prorated fee for a mid-month
subscription based on the initial date of the subscription.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\15\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section
[[Page 90809]]
6(b)(5) \16\ requirements that the rules of an exchange be designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. Additionally, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) \17\ requirement that the rules of an exchange not be designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers. The Exchange also believes the proposed rule change is
consistent with Section 6(b)(4) of the Act,\18\ which requires that
Exchange rules provide for the equitable allocation of reasonable dues,
fees, and other charges among its Members and other persons using its
facilities.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(5).
\17\ Id.
\18\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
In adopting Regulation NMS, the Commission granted self-regulatory
organizations (``SROs'') and broker dealers increased authority and
flexibility to offer new and unique market data to consumers of such
data. It was believed that this authority would expand the amount of
data available to users and consumers of such data and also spur
innovation and competition for the provision of market data. The
Exchange believes that the proposed reports are the sort of market data
product that the Commission envisioned when it adopted Regulation NMS.
The Commission concluded that Regulation NMS--by deregulating the
market in proprietary data--would itself further the Act's goals of
facilitating efficiency and competition: ``[E]fficiency is promoted
when broker-dealers who do not need the data beyond the prices, sizes,
market center identifications of the NBBO and consolidated last sale
information are not required to receive (and pay for) such data. The
Commission also believes that efficiency is promoted when broker-
dealers may choose to receive (and pay for) additional market data
based on their own internal analysis of the need for such data.'' \19\
---------------------------------------------------------------------------
\19\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (``Regulation NMS Adopting
Release'').
---------------------------------------------------------------------------
By removing ``unnecessary regulatory restrictions'' on the ability
of exchanges to sell their own data, Regulation NMS advanced the goals
of the Act and the principles reflected in its legislative history. The
Cboe Timestamping Service (i.e., the Missed Liquidity and Cancels
Reports) provides investors with new options for receiving market data,
which was a primary goal of the market data amendments adopted by
Regulation NMS.\20\
---------------------------------------------------------------------------
\20\ See Regulation NMS Adopting Release, supra, at 37503.
---------------------------------------------------------------------------
The reports are designed for Members that are interested in gaining
insight into latency in connection with their respective (1) orders
that failed to execute against an order resting on the Exchange order
book and/or (2) cancel messages that failed to cancel resting orders.
The Exchange believes that providing this optional data to interested
Members for a fee is consistent with facilitating transactions in
securities, removing impediments to and perfecting the mechanism of a
free and open market and a national market system, and, in general,
protecting investors and the public interest because it provides
Members with an opportunity to receive additional information and
insight into their trading activity on the Exchange.
The Exchange believes the fee proposals for both the Missed
Liquidity Report and Cancels Report are reasonable as the Exchange is
offering any Member access to subscribe to one or both report(s) in the
Member's sole discretion based on their unique business needs. The
reports are optional for Members to subscribe to if they believe it to
be helpful and are not required for Members to purchase in order to
access the Exchange. Additionally, Members may cancel their usage of
this report at any time.
The Exchange believes that the fee structure for the Missing
Liquidity Report reflects an equitable allocation and will not be
unfairly discriminatory as it is a voluntary product designed to ensure
that the amount of the charge is tailored to the specific port usage
patterns of the Recipient Member. The range of fee options further
ensures that Recipient Members are not charged a fee that is
inequitably disproportionate to the use that they make of the product.
Additionally, Recipient Members aren't required to pay the set
threshold for all Ports it has in a given month, instead, Members are
able to select which Ports (if any) they would like to subscribe to the
Missing Liquidity Report for a given month in order to study its orders
in the market to be better informed market participants. Members are
under no obligation to subscribe to the Missing Liquidity Report if it
does not desire to do so.
The fee structure for the Missing Liquidity Report closely aligns
to the fee structure of the previously offered Missed Opportunity--
Latency report as part of its NASDAQ Trader Insights offering.\21\
However, the NASDAQ Missed Opportunity--Latency report included an
additional tier with a higher price than the Exchange's proposed fee
structure.\22\ The NASDAQ structure included an additional tier level
that imposes a monthly fee of $3,500 for subscribers that have over 25
ports \23\ while the Exchange fee structure would provide its similar
report for a fee of $2,500 for a Recipient Member that has 25 ports.
---------------------------------------------------------------------------
\21\ See Securities Exchange Act Release No. 78886 (September
20, 2016), 81 FR 66113 (September 26, 2016) (SR-NASDAQ-2016-101)
(Order Granting Approval of Proposed Rule Change, as Modified by
Amendment Nos. 1 and 2, To Add NASDAQ Rule 7046)(Nasdaq Trading
Insights).
\22\ See Securities Exchange Act Release No. 79035 (October 11,
2016), 81 FR 70207 (October 4, 2016) (SR-NASDAQ-2016-124).
\23\ Id.
---------------------------------------------------------------------------
The Exchange believes its proposed fee for the Cancels Report is
reasonable as it's a modest, flat fee of $1,000/month. As the Exchange
offers mass cancels through Purge Ports in addition to standard cancels
through the Ports, and since cancels may occur through a variety of
port types as opposed to just the Ports, the Exchange found a modest,
flat fee to be more appropriate for the Cancels Report.
The proposed fees are also reasonable as they are lower than the
fees assessed for similar reports offered by other exchanges. For
example, the MIAX Emerald Liquidity Taker Event Report is substantially
similar to the Missed Liquidity Report and Cancels Report \24\ and has
a monthly fee of $4,000 or an annual fee of $24,000.\25\ A Member is
[[Page 90810]]
able to receive both the Cancels Report and the Missed Liquidity Report
for a monthly fee no greater than $3,500 a month--making the Cboe
Timestamping Reports less than the MIAX Emerald report. With the
Exchange's approach of (i) bifurcating the orders and cancels to two
separate and distinct offerings (Missing Liquidity Report and Cancels
Report) and (ii) allowing Members to select its subscribing Ports for
the Missed Liquidity Report, it allows Members to further curb costs if
they choose to subscribe to one or both of these reports. As such, the
Exchange believes that the proposed fees for the both the Missed
Liquidity Report and Cancels Report are fair and reasonable as they are
set at a level either similar to or lower than other exchanges that
offer similar reports.
---------------------------------------------------------------------------
\24\ See e.g., MIAX Emerald Rule 531. See also Securities
Exchange Act Release No. 91356 (March 18, 2021), 86 FR 15759 (March
24, 2021) (SR-EMERALD-2021-09). Although not clearly defined, the
Exchange believes that MIAX Emerald's Liquidity Taker Event Report
also provides information relating to cancel messages. Particularly,
MIAX Emerald Liquidity Taker Event Report provides, among other
things, data relating to the ``type of each response submitted by
the Recipient Member.'' See MIAX Emerald Rule 5.31(a)(iii)(C). MIAX
Emerald's technical specifications outline the various types of
available liquidity messages including, Simple Mass Quote Cancel
Request and Mass Liquidity Cancel Request See MIAX Express Interface
for Quoting and Trading Options, MEI Interface Specification,
Section 4.1 (Liquidity Messages), available at:
MIAX_Express_Interface_MEI_v2.2a.pdf (miaxglobal.com).
\25\ See MIAX Emerald Fee Schedule, Section 7, Reports.
---------------------------------------------------------------------------
The proposal would also not permit unfair discrimination as both
the Cancels Report and Missed Liquidity Report will be available to all
Members, who may opt to subscribe to one, both, or neither, and will
help to protect a free and open market by continuing to provide
additional non-core data (offered on an optional basis for a fee) to
the marketplace and by providing investors with greater choices.\26\ As
such, the Exchange believes that the proposed fees are reasonable and
set at a level to compete with other exchanges that may choose to offer
similar reports. Moreover, if a market participant views another
exchange's potential report as more attractive, then such market
participant can merely choose not to purchase the Exchange's reports
and instead purchase another exchange's similar data product(s), which
may offer similar data points, albeit based on that other market's
trading activity.
---------------------------------------------------------------------------
\26\ See Sec. Indus. Fin. Mkts. Ass'n (SIFMA), Initial Decision
Release No. 1015, 2016 SEC LEXIS 2278 (ALJ June 1, 2016) (finding
the existence of vigorous competition with respect to non-core
market data). See also 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) (``NetCoalition I'') (upholding the
Commission's reliance upon competitive markets to set reasonable and
equitably allocated fees for market data).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes the
reports will contribute to robust competition among national securities
exchanges. The Missed Liquidity Report and Late Cancels Report further
enhances competition between exchanges by allowing the Exchange to
expand its product offerings to include reports similar to reports that
are currently offered by other exchanges.\27\
---------------------------------------------------------------------------
\27\ See e.g., MIAX Emerald Rule 531.
---------------------------------------------------------------------------
The Exchange also does not believe the proposed fees would cause
any unnecessary or inappropriate burden on intermarket competition as
other exchanges are free to introduce their own comparable reports with
lower prices to better compete with the Exchange's offerings. The
Exchange operates in a highly competitive environment, and its ability
to price the reports is constrained by competition among exchanges who
choose to adopt similar products. The Exchange must consider this in
its pricing discipline in order to compete for subscribers of the
Exchange's market data via the reports. For example, proposing fees
that are excessively higher than fees for potentially similar data
products would simply serve to reduce demand for the Exchange's
reports, which as discussed, Members are under no obligation to
utilize. In this competitive environment, potential purchasers are free
to choose which, if any, similar product to purchase to satisfy their
need for market information. As a result, the Exchange believes this
proposed rule change permits fair competition among national securities
exchanges.
The Exchange does not believe the proposed rule change would cause
any unnecessary or inappropriate burden on intramarket competition.
Particularly, the proposed fees apply uniformly to any purchaser in
that the Exchange does not differentiate between the different Members
that may purchase the reports. While the Exchange does propose to
implement tiered pricing for its Missed Liquidity Report (similar to
the pricing used for NASDAQ Trader Insight offering),\28\ the tiered
pricing shall apply to all Members that wish to purchase the Missed
Liquidity Report and this proposed pricing structure is reflective of
the specific port usage patterns of the Recipient Member. The proposed
fees are set at a modest level that would allow any interested Member
to purchase such data based on their business needs.
---------------------------------------------------------------------------
\28\ See Securities Exchange Act Release No. 79035 (October 11,
2016), 81 FR 70207 (October 4, 2016) (SR-NASDAQ-2016-124).
---------------------------------------------------------------------------
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 \29\ and paragraph (f) of Rule 19b-4 \30\
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 change should be approved or
disapproved.
---------------------------------------------------------------------------
\29\ 15 U.S.C. 78s(b)(3)(A).
\30\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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-CboeEDGA-2024-046 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-CboeEDGA-2024-046. 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
[[Page 90811]]
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-CboeEDGA-2024-046 and should
be submitted on or before December 9, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
---------------------------------------------------------------------------
\31\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-26748 Filed 11-15-24; 8:45 am]
BILLING CODE 8011-01-P
