Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Sapphire Fee Schedule To Adopt New Fee Categories for the Exchange's Proprietary Market Data Feeds, 22415-22424 [2025-09409]
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Federal Register / Vol. 90, No. 100 / Tuesday, May 27, 2025 / Notices
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–NYSEARCA–2025–09 and should be
submitted on or before June 17, 2025.
Rebuttal comments should be submitted
by July 1, 2025.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025–09394 Filed 5–23–25; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–103093; File No. SR–
SAPPHIRE–2025–23]
Self-Regulatory Organizations; MIAX
Sapphire, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX
Sapphire Fee Schedule To Adopt New
Fee Categories for the Exchange’s
Proprietary Market Data Feeds
khammond on DSK9W7S144PROD with NOTICES
May 20, 2025.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’),1 and Rule 19b–4
thereunder,2 notice is hereby given that
on May 7, 2025, MIAX Sapphire, LLC
(‘‘MIAX Sapphire’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘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
18 17
CFR 200.30–3(a)(57).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend the MIAX Sapphire Options
Exchange Fee Schedule (the ‘‘Fee
Schedule’’) to adopt new fee categories
for the Exchange’s proprietary market
data feeds: (i) MIAX Sapphire Top of
Market (‘‘ToM’’) data feed; (ii) MIAX
Sapphire Complex Top of Market
(‘‘cToM’’) data feed; and (iii) MIAX
Sapphire Liquidity Feed (‘‘SLF’’)
(collectively, the ‘‘market data feeds’’).
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxglobal.com/markets/
us-options/all-options-exchanges/rulefilings, at MIAX Sapphire’s principal
office, 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 offers three standard
proprietary market data products, ToM,
cToM, and SLF. The ToM data feed is
a data feed that contains the Exchange’s
best bid and offer, with aggregate size,
and last sale information, based on
order and quoting interest on the
Exchange.3 The ToM data feed includes
data that is identical to the data sent to
the processor for the Options Price
Reporting Authority (‘‘OPRA’’). The
data for ToM and OPRA leave the
System 4 at the same time, as required
under Section 5.2(c)(iii)(B) of the
Limited Liability Company Agreement
3 See Securities Exchange Act Release No. 100588
(July 25, 2024), 89 FR 61554 (July 31, 2024) (SR–
SAPPHIRE–2024–01).
4 The term ‘‘System’’ means the automated
trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
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22415
of the Options Price Reporting
Authority LLC (the ‘‘OPRA Plan’’),
which prohibits the dissemination of
proprietary information on any more
timely basis than the same information
is furnished to the OPRA system for
inclusion in OPRA’s consolidated
dissemination of options information.
The cToM data feed includes the same
types of information as ToM, but for
Complex Orders 5 on the Exchange’s
Strategy Book.6 This information
includes the Exchange’s best bid and
offer for a complex strategy,7 with
aggregate size, based on displayable
orders in the complex strategy. The
cToM data feed also provides
subscribers with the following
information: (i) the identification of the
complex strategies currently trading on
the Exchange; (ii) complex strategy last
sale information; and (iii) the status of
securities underlying the complex
strategy (e.g., halted, open, or resumed).
The SLF data feed provides market
participants with a direct data feed that
allows subscribers to receive real-time
updates of options orders, products
traded on MIAX Sapphire, MIAX
Sapphire System status, and MIAX
Sapphire underlying trading status.8
When an order is received or an order
state changes, published order
information will be transmitted over
SLF, including time stamp, action,
product ID, order ID, order side, order
type, order price, original order size,
open order size, time in force, origin,
open or close, and route instruction. For
complex orders, complex strategy
definition notification and complex
order notice are also included.
Subscribers to the SLF will get a list of
all options symbols and strategies that
will be traded and sourced on that feed
at the start of every session.
Section 6 of the Fee Schedule, Market
Data Fees, provides fees for the ToM,
5 In sum, a ‘‘Complex Order’’ is ‘‘any order
involving the concurrent purchase and/or sale of
two or more different options in the same
underlying security (the ‘legs’ or ‘components’ of
the complex order), for the same account . . . .’’
See Exchange Rule 518(a)(5).
6 The ‘‘Strategy Book’’ is the Exchange’s
electronic book of complex orders and complex
quotes. See Exchange Rule 518(a)(19).
7 The term ‘‘complex strategy’’ means a particular
combination of components and their ratios to one
another. New complex strategies can be created as
the result of the receipt of a complex order or by
the Exchange for a complex strategy that is not
currently in the System. The Exchange may limit
the number of new complex strategies that may be
in the System at a particular time and will
communicate this limitation to Members via
Regulatory Circular. See Exchange Rule 518(a)(6).
8 The Exchange established the Definitions
section of the Fee Schedule in a separate rule filing.
See Securities Exchange Act Release No. 100683
(August 9, 2024), 89 FR 66467 (August 15, 2024)
(SR–SAPPHIRE–2024–13).
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Federal Register / Vol. 90, No. 100 / Tuesday, May 27, 2025 / Notices
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cToM, and SLF data feeds. The
Exchange waived such fees during an
Initial Waiver Period,9 which expired
on March 1, 2025.10 At the expiration of
the Initial Waiver Period, the Exchange
began to charge monthly fees to both
Internal and External Distributors
(proposed definitions below) of the
ToM, cToM, and SLF data feeds.
Specifically, the Exchange started to
charge Internal Distributors a monthly
fee of $1,200.00 for the ToM and cToM
data feeds, and $3,000.00 for the SLF
data feed. The Exchange also started to
charge External Distributors a monthly
fee of $2,000.00 for the ToM and cToM
data feeds, and $3,500.00 for the SLF
data feed.
The Exchange now proposes to amend
the Fee Schedule to, among other
things, adopt new fee categories for the
Exchange’s proprietary market data
feeds. The primary purpose of this
proposal is to adopt per User (defined
below) fees as well as fees for NonDisplay Usage (also defined below). The
Exchange also proposes to add a
‘‘Market Data Definitions’’ section to
Section 6 of the Fee Schedule as well as
modify how mid-month subscriptions
for Distributors are to be handled. The
Exchange believes that adopting the
same fee structure as its affiliated
exchanges would reduce administrative
burdens on market data subscribers that
also currently subscribe to market data
feeds from the Exchange’s affiliates.
Each of these proposed changes are
described below.
*
*
*
*
*
The Exchange believes that
exchanges, in setting fees of all types,
should meet very high standards of
transparency to demonstrate why each
new fee or fee increase meets the
requirements of the Act that fees be
reasonable, equitably allocated, not
unfairly discriminatory, and not create
an undue burden on competition among
Members 11 and markets. The Exchange
believes this high standard is especially
important when an exchange imposes
various fees for market participants to
access an exchange’s market data.
9 The term ‘‘Initial Waiver Period’’ means, for
each applicable fee, the period of time from the
initial effective date of the MIAX Sapphire Fee
Schedule plus an additional six (6) full calendar
months after the completion of the partial month of
the Exchange launch. See the Definitions section of
the Fee Schedule.
10 See Securities Exchange Act Release No.
102321 (February 3, 2025), 90 FR 9173 (February 7,
2025) (SR–SAPPHIRE–2025–04).
11 The term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associated with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
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Approximately 60% of Members
subscribe to one or more market data
feeds from the Exchange. Of those
Members, approximately 37% subscribe
to all four market data feeds,
approximately 22% subscribe to three
market data feeds, approximately 19%
subscribe to two market data feeds, and
approximately 22% subscribe to only
one market data feed. The Exchange
notes that there is no requirement that
any Member or market participant
subscribe to the ToM, cToM, or SLF
data feeds offered by the Exchange.
Instead, a Member may choose to
maintain subscriptions to the ToM,
cToM, or SLF data feeds based on their
own business needs and trading models.
Definitions
The Exchange proposes to include a
Definitions section at the beginning of
Section 6, Market Data Fees, of the Fee
Schedule. The purpose of the
Definitions section is to provide market
participants greater clarity and
transparency regarding the applicability
of fees by defining certain terms used in
connection with market data feeds
within the Fee Schedule in a single
location related to the Exchange’s
market data products. The Exchange
notes that it includes similar Definitions
in its fee schedule applicable to its own
equity trading platform, MIAX Pearl
Equities,12 and that each of the
proposed definitions are based on the
MIAX Pearl Equities Fee Schedule and
that of other exchanges. The Exchange
believes that including a Definitions
section for market data products makes
the Fee Schedule more user-friendly
and comprehensive.
The Exchange proposes to define the
following terms in Section 6 of the Fee
Schedule:
• Distributor. Any entity that receives
the Exchange data product directly from
the Exchange or indirectly through
another entity and then distributes it
internally or externally to a third party.
• External Distributor. A Distributor
that receives the Exchange data product
and then distributes that data to a third
party or one or more Users outside the
Distributor’s own entity.
• Internal Distributor. A Distributor
that receives the Exchange data product
12 See MIAX Pearl Equities Fee Schedule, Section
3), Market Data Fees, and Securities Exchange Act
Release No. 100319 (June 12, 2024), 89 FR 51562
(June 19, 2024) (SR–PEARL–2024–25). See also
Cboe BZX Exchange, Inc. (‘‘Cboe BZX Options’’)
Fee Schedule, Market Data Fees section, and Cboe
EDGX Exchange, Inc. (‘‘Cboe EDGX Options’’) Fee
Schedule, Market Data Fees section. See also
MEMX LLC (‘‘MEMX Options’’) Fee Schedule,
Market Data Fees section, and Securities Exchange
Act Release No. 101370 (October 17, 2024), 89 FR
84638 (October 23, 2024) (SR–MEMX–2024–40)
(‘‘MEMX Options Market Data Fee Proposal’’).
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Frm 00193
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and then distributes that data to one or
more Users within the Distributor’s own
entity.
Æ The Exchange notes that it proposes
to use the phrase ‘‘own entity’’ in the
definition of Internal Distributor and
External Distributor because a
Distributor would be permitted to share
data received from an exchange data
product to other legal entities affiliated
with the Distributor’s entity that have
been disclosed to the Exchange without
such distribution being considered
external to a third party. For instance,
if a company has multiple affiliated
broker-dealers under the same holding
company, that company could have one
of the broker-dealers or a non-brokerdealer affiliate subscribe to an exchange
data product and then share the data
with other affiliates that have a need for
the data. This sharing with affiliates
would not be considered external
distribution to a third party but instead
would be considered internal
distribution to data recipients within
the Distributor’s own entity.
Æ The Exchange also notes that the
explanatory paragraphs under the ToM,
cToM, and SLF data feed fee tables
includes the following language which
defines the terms Distributor, Internal
Distributors, and External Distributors:
MIAX Sapphire will assess Market Data
Fees applicable to ToM [cToM, AIS or SLF]
on Internal and External Distributors in each
month the Distributor is credentialed to use
ToM [cToM, AIS or SLF] in the production
environment. A Distributor of MIAX
Sapphire data is any entity that receives a
feed or file of data either directly from MIAX
Sapphire or indirectly through another entity
and then distributes it either internally
(within that entity) or externally (outside that
entity). All Distributors are required to
execute an Exchange Distributor Agreement.
The Exchange proposes to remove
these provisions from the Fee Schedule
because they: (i) duplicate the proposed
definitions of Distributor, External
Distributor, and External Distributor
proposed herein with no substantive
difference; and (ii) provide details that
are included in the Exchange’s market
data policies that are also not also
provided for in the fee schedules of
other options exchanges.13 Removing
these provisions would also harmonize
the definition and fee descriptions with
13 See Cboe BZX Options Fee Schedule, Market
Data Fees section and Cboe EDGX Options, Market
Data Fees section, both available at https://
www.cboe.com/us/options/membership/?_
gl=1*19q7zz0*_up*MQ..*_ga*NjY5OTA0Nz
E4LjE3MzQ1MzQzODk.*_ga_5Q99WB9X71*
MTczNDUzNzQ0Mi4yLjEuMTczNDUzNzQ5OC4w
LjAuMA. See also MEMX Options Fee Schedule
and Securities Exchange Act Release No. 101370
(October 17, 2024), 89 FR 84638 (October 23, 2024)
(SR–MEMX–2024–40).
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Federal Register / Vol. 90, No. 100 / Tuesday, May 27, 2025 / Notices
the fee schedule applicable to MIAX
Pearl Equities.14
• Non-Display Usage. Any method of
accessing an Exchange data product that
involves access or use by a machine or
automated device without access or use
of a display by a natural person or
persons.
• Non-Professional User. A natural
person or qualifying trust that uses
Exchange data only for personal
purposes and not for any commercial
purpose and, for a natural person who
works in the United States, is not: (i)
registered or qualified in any capacity
with the Securities and Exchange
Commission, the Commodities Futures
Trading Commission, any state
securities agency, any securities
exchange or association, or any
commodities or futures contract market
or association; (ii) engaged as an
‘‘investment adviser’’ as that term is
defined in Section 202(a)(11) of the
Investment Advisors Act of 1940
(whether or not registered or qualified
under that Act); or (iii) employed by a
bank or other organization exempt from
registration under federal or state
securities laws to perform functions that
would require registration or
qualification if such functions were
performed for an organization not so
exempt; or, for a natural person who
works outside of the United States, does
not perform the same functions as
would disqualify such person as a NonProfessional User if he or she worked in
the United States.
• Professional User. Any User other
than a Non-Professional User.
• User. A Professional User or NonProfessional User.
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Proposed Market Data Pricing
As described above, upon the
expiration of the Initial Waiver Period,
the Exchange began to charge Internal
Distributors a monthly fee of $1,200.00
for the ToM and cToM data feeds, and
$3,000.00 for the SLF data feed. The
Exchange also only currently charges
External Distributors a monthly fee of
$2,000.00 for the ToM and cToM data
feeds, and $3,500.00 for the SLF data
feed. The Exchange now proposes to
charge the below per User fees as well
as Non-Display Usage fees for the ToM,
cToM, and SLF data feeds, which, the
Exchange believes are generally similar
to or lower than market data fees
charged by other similarly situated
options exchanges. The Exchange does
not propose to adopt any additional fee
14 See MIAX Pearl Equities Fee Schedule, Section
3), Market Data Fees, and Securities Exchange Act
Release No. 100319 (June 12, 2024), 89 FR 51562
(June 19, 2024) (SR–PEARL–2024–25).
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categories in this proposal. Each of the
below capitalized terms are defined
above and would be included under the
proposed Definitions section under
Section 6, Market Data Fees, of the Fee
Schedule.
1. User Fees. For the ToM, cToM, and
SLF data feeds, the Exchange proposes
to charge a monthly fee of $20.00 for
each Professional User and $1.00 for
each Non-Professional User of each data
feed.15 The proposed User fees would
apply to each person that has access to
the ToM, cToM, or SLF data feeds that
is provided by a Distributor (either
Internal or External) for displayed
usage. Each Distributor’s User count
would include every individual that has
access to the data regardless of the
purpose for which the individual uses
the data. The above Professional or NonProfessional User fee would provide the
same Professional or Non-Professional
User access to all other MIAX Sapphire
Market Data feeds for no additional per
User charge.16 In other words, a User
would receive access to the ToM, cToM,
and SLF data feeds for the applicable
single per User fee and not have to pay
separate per User fees for each data feed.
As such, Distributors should report the
number of Users per the Exchange, and
not per individual data feed. This would
be noted in Section 6 of the Fee
Schedule under footnote 1 following the
fee tables for the ToM, cToM, and SLF
data feeds. Distributors of the ToM,
cToM, or SLF data feeds would be
required to report all Professional and
Non-Professional Users in accordance
with the following:
• In connection with a Distributor’s
distribution of the ToM, cToM, or SLF
data feeds, the Distributor must count as
one User each unique User that the
Distributor is entitled for access to the
ToM, cToM, or SLF data feeds.
• Distributors must report each
unique individual person who receives
access through multiple devices or
multiple methods (e.g., a single User has
multiple passwords and user
identifications) as one User.
• If a Distributor entitles one or more
individuals to use the same device, the
Distributor must include only the
individuals, and not the device, in the
count. Thus, Distributors would not be
15 The Exchange does not propose to adopt an
Enterprise Fee at this time and may do so in the
future based on feedback from market participants.
16 The Exchange notes that similar reporting is
required by the Nasdaq options markets, The
Nasdaq Stock Market LLC (‘‘Nasdaq Options’’),
Nasdaq Phlx LLC (‘‘Nasdaq Phlx’’), and Nasdaq
MRX, LLC (‘‘Nasdaq MRX’’). See, e.g., https://
www.nasdaqtrader.com/Trader.aspx?id
=DPPriceListOptions (providing that ‘‘[t]he monthly
user fee should be reported once for Nasdaq
Options, not once per datafeed’’).
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22417
required to report User device counts
associated with a User’s display use of
the data feed.
2. Non-Display Usage Fees. The
Exchange proposes to establish a
monthly Non-Display Usage 17 fee of
$1,500.00 for the ToM, cToM, and SLF
data feeds.
• The Exchange proposes to provide
a discount to those that subscribe to two
or more MIAX Sapphire data feeds by
capping the Non-Display Usage fee for
Subscribers of two or more MIAX
Sapphire data feeds at $3,000.00. This
would be noted in Section 6 of the Fee
Schedule under footnote 2 following the
fee tables for the ToM, cToM, and SLF
data feeds.
Lastly, the Exchange proposes to no
longer pro-rate fees for Distributors who
subscribe or terminate mid-month. The
Exchange notes that there were no midmonth subscriptions or terminations
over the past twelve (12) months that
would have required the monthly fee to
be pro-rated. The Exchange also notes
that mid-month subscriptions and
terminations could place an increased
burden on Exchange staff and systems
that are in place to pro-rate the monthly
fee that are not justified by the little to
no mid-month subscriptions and
terminations that occurred over the past
year on its affiliated options exchanges
or that the Exchange anticipates going
forward based on its past experience.
This portion of the proposal should also
encourage subscribers to either begin a
new subscription or terminate an
existing subscription at the beginning or
end of a month, respectively. Lastly,
removing these provisions would also
harmonize the MIAX Sapphire Fee
Schedule with the MIAX Pearl Equities
fee schedule, which also does not
provide for pro-ration.18 Also, other
exchanges do not provide for the similar
pro-ration of market data fees.19
Therefore, the Exchange proposes to
remove the following language
providing for pro-rated month fees for
mid-month subscribers from the
17 Non-Display Usage would include trading uses
such as high frequency or algorithmic trading as
well as any trading in any asset class, automated
order or quote generation and/or order pegging,
price referencing for smart order routing, operations
control programs, investment analysis, order
verification, surveillance programs, risk
management, compliance, and portfolio
management.
18 See MIAX Pearl Equities Fee Schedule, Section
3), Market Data Fees, and Securities Exchange Act
Release No. 100319 (June 12, 2024), 89 FR 51562
(June 19, 2024) (SR–PEARL–2024–25).
19 See Cboe BZX Options Fee Schedule and Cboe
EDGX Options Fee Schedule, supra note 13. See
also MEMX Options Fee Schedule and Securities
Exchange Act Release No. 101370 (October 17,
2024), 89 FR 84638 (October 23, 2024) (SR–MEMX–
2024–40).
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explanatory paragraphs under the ToM,
cToM, and SLF data feed fee tables:
participants regarding the Exchange’s
market data fees.
Market Data Fees for [ToM/cToM/SLF] will
be reduced for new Distributors for the first
month during which they subscribe to [ToM/
cToM/SLF], based on the number of trading
days that have been held during the month
prior to the date on which they have been
credentialed to use [ToM/cToM/SLF] in the
production environment. Such new
Distributors will be assessed a pro-rata
percentage of the fees described above, which
is the percentage of the number of trading
days remaining in the affected calendar
month as of the date on which they have
been credentialed to use [ToM/cToM/SLF] in
the production environment, divided by the
total number of trading days in the affected
calendar month.
Implementation
Remove Initial Waiver Period Rule Text
The Exchange also proposes to
remove the rule text regarding the Initial
Waiver Period that is below the table of
fees in Sections 6)a) and b) of the Fee
Schedule. As noted above, the Exchange
established the Initial Waiver Period
when it launched operations on August
13, 2024 for a defined period of time.
The Initial Waiver Period was in effect
for the partial month in which the Fee
Schedule was established in August
2024, continuing in effect for six months
thereafter. Accordingly, the Initial
Waiver Period automatically expired at
the end of February 2025. The purpose
of this change is to remove text that no
longer applies from the Fee Schedule,
thereby providing clarity to market
Exchange
Market share *
(%)
MIAX Sapphire ...........
Nasdaq Options .........
Nasdaq MRX ..............
Cboe BZX Options .....
Cboe C2 .....................
3.23
5.34
2.77
4.21
2.89
The Exchange issued alerts publicly
announcing the proposed fees on
September 30, 2024 and December 17,
2024.20 The fees subject to this proposal
are immediately effective.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) 21 of the
Act in general, and furthers the
objectives of Section 6(b)(4) 22 of the
Act, in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees and other charges
among its Members and other persons
using its facilities. Additionally, the
Exchange believes that the proposed
fees are consistent with the objectives of
Section 6(b)(5) 23 of the Act in that they
are designed 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
a free and open market and national
market system, and, in general, to
protect investors and the public interest,
and, particularly, are not designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange notes that the ToM,
cToM, and SLF data feeds are entirely
optional. The Exchange is not required
to make the ToM, cToM, and SLF data
feeds available to any customers, nor is
any customer required to purchase the
ToM, cToM, and SLF data feeds.
The Proposed Fees Are Reasonable and
Comparable to the Fees Charged by
Other Exchanges for Similar Data
Products
Overall. The proposed fees are
comparable to those of other options
exchanges. Based on publicly-available
information, no single exchange had
more than 13.65% equity options
market share for all of 2024,24 and the
Exchange compared the fees proposed
herein to the fees charged by other
options exchanges with similar market
share. A more detailed discussion of the
comparison follows.
The Exchange assesses the market
share for each of the below referenced
options markets utilizing total equity
options contracts traded in April 2025,
as set forth in the following charts: 25
User Fees
The proposed per User fees for the
Exchange’s market data products are
comparable to or lower than those
charged by Nasdaq Options, Nasdaq
MRX, Cboe BZX Options, and Cboe C2
Exchange, Inc. (‘‘Cboe C2’’), as
summarized in the table below.
Monthly professional
user fee
Market data product
All .......................................................
NOM BONO, NOM ITTO ...................
MRX Top, MRX Depth, MRX Spread
BZX Depth .........................................
C2 Depth ............................................
C2 Complex .......................................
$20.00
$42.10
$25.25
$30.00
$50.00
$25.00
(per
(per
(per
(per
(per
(per
Exchange) ..........
exchange) ..........
exchange) ..........
feed) ...................
feed) ...................
feed) ...................
Monthly non-professional
user fee
$1.00 (per Exchange).
$1.00 (per exchange).
$1.00 (per exchange).
$1.00 (per feed).
$50.00 (per feed).
$25.00 (per feed).
* See supra note 24.
khammond on DSK9W7S144PROD with NOTICES
A more detailed discussion of the
comparison follows.
Nasdaq Options. Nasdaq Options,
with a market share of approximately
5.34% that is only slightly higher than
the Exchange, charges higher or
comparable Professional and Non20 See Fee Change Alert, MIAX Exchange Group—
January 1, 2025 and March 1, 2025 Market Data Fee
Changes (dated September 30, 2024), available at
https://www.miaxglobal.com/alert/2024/09/30/
miax-exchange-group-options-markets-january-12025-and-march-1-2025-market-1?nav=all and Fee
Change Alert, MIAX Exchange Group—Options
Markets—Reminder: January 1, 2025 and March 1,
2025 Market Data Fee Changes (dated December 17,
2024), available at https://www.miaxglobal.com/
alert/2024/12/17/miax-exchange-group-optionsmarkets-reminder-january-1-2025-and-march-12?nav=all.
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Jkt 265001
Professional User fees for its top of book
and depth of book feeds than proposed
by the Exchange. Further, like Nasdaq
Options, the Exchange proposes to
charge a single per User fee that would
provide access to all of its market data
products for a single fee.
21 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
23 15 U.S.C. 78f(b)(5).
24 See the Market Share section of the Exchange’s
website, U.S. Options, available at https://
www.miaxglobal.com/company/data/market-share
(last visited May 7, 2025). Unlike its affiliate
options exchanges that utilized full year 2024
market share numbers for their comparisons to
other exchanges in their related market data fee
filings, the Exchange chose the most recent full
month to compare market share because the
Exchange has not yet had a full year of operations.
22 15
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The Nasdaq Options Best of Nasdaq
Options (‘‘BONO’’) feed is an options
feed that provides Nasdaq Options’ best
bid and offer and last sale information.26
The Nasdaq Options BONO feed is
similar to the Exchange’s ToM data feed.
The Nasdaq Options ITCH to Trade
25 Market share is the percentage of volume on a
particular exchange relative to the total volume
across all exchanges, and indicates the amount of
order flow directed to that exchange. High levels of
market share enhance the value of trading and
ports. Total contracts include both multi-list
options and proprietary options products.
Proprietary options products are products with
intellectual property rights that are not multi-listed.
26 See Nasdaq Options Rules, Options 3, Section
23(a)(2).
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Options (‘‘ITTO’’) feed is an options
feed that provides full order and quote
depth information for individual orders
and quotes and last sale information.27
ITTO also provides, among other things,
product (option series) available for
trading on Nasdaq Options, the trading
status of such products (i.e., whether the
series is available for closing
transactions only), and order imbalances
on opening/reopenings. The ITTO feed
is similar to the Exchange’s SLF data
feed.28
Nasdaq Options charges Professional
Users $42.10 per month and NonProfessional Users $1.00 per month for
the BONO feed and ITTO feed.29 The
Exchange proposes to charge less than
Nasdaq Options for Professional Users
and the same as Nasdaq Options for
Non-Professional Users while also
providing access to all of its market data
feeds for a single per User fee.
Specifically, for both the ToM and SLF
data feeds, the Exchange proposes to
charge Professional Users $20.00 per
month and Non-Professional Users
$1.00 per month. The Exchange’s
proposed Professional User fee is lower
than Nasdaq Options and its NonProfessional User fee is equal to Nasdaq
Options. Despite having only
incrementally higher market share than
the Exchange, Nasdaq Options charges
much higher or comparable per User
fees than proposed by the Exchange
herein.
Nasdaq MRX. Nasdaq MRX, with a
market share of approximately 2.77%,
lower than the Exchange, charges higher
Professional and Non-Professional User
fees for its top of book and depth of
book feeds than the fees proposed by the
Exchange. Further, like Nasdaq MRX,
the Exchange proposes to charge a
single per User fee that would provide
access to all of its market data products
for a single fee.30
The Nasdaq MRX Top of Market feed
is an options feed that provides Nasdaq
MRX’s best bid and offer and last sale
27 See Nasdaq Options Rules, Options 3, Section
23(a)(1).
28 The Exchange is not comparing its cToM feed
to a comparable Nasdaq Options feed because the
Exchange understands Nasdaq Options does not
offer such a feed.
29 See Price List—U.S. Derivatives Data, available
at https://www.nasdaqtrader.com/
Trader.aspx?id=DPPriceListOptions. See also
Securities Exchange Act Release No. 73823
(December 11, 2014), 79 FR 75207 (December 17,
2014) (SR–NASDAQ–2014–119).
30 The Exchange notes that Nasdaq MRX also
offers the Nasdaq MRX Order Feed and Nasdaq
MRX Trades Feed, which are included in the
Nasdaq MRX per User fees. See Nasdaq MRX
Options Rules, Options 7, Pricing Schedule, Section
7, Market Data.
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Jkt 265001
information.31 The Nasdaq MRX Top of
Market feed is similar to the Exchange’s
ToM feed. The Nasdaq MRX Depth of
Market feed is an options feed that
provides full order and quote depth
information for individual orders and
quotes and last sale information.32 The
Nasdaq MRX Depth of Market feed is
similar to the Exchange’s SLF feed. The
Nasdaq MRX Spread feed is an options
feed that provides information for both
simple and complex orders.33 The
Nasdaq MRX Spread feed is similar to
the Exchange’s cToM data feed.
Nasdaq MRX charges Professional
Users $25.25 per month and NonProfessional Users $1.00 per month for
the Nasdaq MRX Top of Market feed,
the Nasdaq MRX Depth of Market Feed,
and the Nasdaq MRX Spread Feed.34
The Exchange proposes to charge less
than Nasdaq MRX for Professional Users
and the same as Nasdaq MRX for NonProfessional Users while also providing
access to all of its market data fees for
single per User fee. Specifically, for the
ToM, cToM, and SLF data feeds, the
Exchange proposes to charge
Professional Users $20.00 per month
and Non-Professional Users $1.00 per
month. The Exchange’s proposed
Professional User fee is lower than
Nasdaq MRX and its Non-Professional
User fee is equal to Nasdaq MRX.
Despite having lower market share than
the Exchange, Nasdaq MRX charges
higher or comparable per User fees than
the fees proposed by the Exchange
herein.
Cboe BZX Options. Cboe BZX
Options, with a market share of
approximately 4.21%, which is lower
than the Exchange’s market share,
charges higher Professional and NonProfessional User fees for its depth of
book feed than the fees proposed by the
Exchange. Further, Cboe BZX Options
also charges separate per User fees per
data product, whereas the Exchange
proposes to charge a single lower per
User fee that would provide access to all
of its market data products for a single
fee.
The Cboe BZX Options Top feed is an
options feed that provides top of book
quotations and execution information.35
31 See Nasdaq MRX Options Rules, Options 3,
Section 23(a)(3).
32 See Nasdaq MRX Options Rules, Options 3,
Section 23(a)(1).
33 See Nasdaq MRX Options Rules, Options 3,
Section 23(a)(2).
34 See Price List—U.S. Derivatives Data, available
at https://www.nasdaqtrader.com/Trader.aspx?
id=DPPriceListOptions.
35 For the Cboe BZX Options Top feed, Cboe BZX
Option charges Professional Users $5.00 per month
and Non-Professional Users $0.10 per month. For
ToM, cToM and SLF data feeds, the Exchange
proposes to charge Professional Users $20.00 per
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22419
The Cboe BZX Options Top feed is
similar to the Exchange’s ToM feed. The
Cboe BZX Options Depth feed is an
options feed that provides depth of book
quotations and execution information.
The Cboe BZX Options Depth feed is
similar to the Exchange’s SLF data feed.
Cboe BZX Options charges
Professional Users $30.00 per month
and Non-Professional Users $1.00 per
month for the Cboe BZX Options Depth
feed. The Exchange proposes to charge
less than Cboe BZX Options and
provide access to all of its market data
fees for single, and still lower, per User
fee. Specifically, for ToM, cToM, and
SLF data feeds, the Exchange proposes
to charge Professional Users $20.00 per
month and Non-Professional Users
$1.00 per month. The Exchange’s
proposed Professional User fee is lower
than Cboe BZX Options and its NonProfessional User fee is equal to Cboe
BZX Options. However, both of the
Exchange’s proposed fees can be lower
than Cboe BZX Options because a User
may receive access to each of the
Exchange’s data feeds for a single per
User fee and, unlike Cboe BZX Options,
not be required to pay a separate per
User fee for each data product.36
Cboe C2. Cboe C2, with a market
share of approximately 2.89% that is
lower than the Exchange, charges higher
Professional and Non-Professional User
fees for its C2 Options Depth and C2
COB feed than proposed by the
Exchange. Unlike Cboe C2, the
Exchange proposes to charge a single
per User fee that would provide access
to all of its market data products for a
single fee.
The Cboe C2 Options Depth feed is an
options feed that provides depth of book
quotations and execution information.
The Cboe C2 Options Depth feed is
similar to the Exchange’s SLF data feed.
The Cboe C2 COB feed is an options
data feed that provides information for
complex strategies (multi-leg trades,
such as spreads, straddles and buywrites).37 The Cboe C2 COB feed is
month and Non-Professional Users $1.00 per
month. Although higher, the Exchange’s proposed
Professional and Non-Professional User fees are not
necessarily comparable to Cboe BZX Options Top
fees because a User may receive access to each of
the Exchange’s three data feeds for a single per User
fee and, unlike Cboe BZX Options, not be required
to pay a separate per User fee for each data product
and Cboe BZX Options only provides two data
feeds that provide only Cboe BZX Options data.
Cboe BZX Options also offers the Cboe One Options
Feed, which provides information for not only Cboe
BZX Options, but also its three affiliated options
markets, Cboe EDGX Options, Cboe, and Cboe C2.
See Cboe BZX Options Rule 21.15(b)(6).
36 Id.
37 See https://www.cboe.com/market_data_
services/us/options/.
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similar to the Exchange’s cToM data
feed.38 Cboe C2 charges all Users, both
Professional Users and Non-Professional
Users, $25.00 per month for the Cboe C2
COB feed and $50.00 for the Depth
feed.39 The Exchange proposes to charge
less than Cboe C2 for Professional Users
and Non-Professional Users while also
providing access to all of its market data
feeds for a single per User fee.
Specifically, for the cToM data feed, the
Exchange proposes to charge
Professional Users $20.00 per month
Market share †
(%)
Exchange
MIAX Sapphire ...............................
Nasdaq Options ..............................
Nasdaq MRX ..................................
khammond on DSK9W7S144PROD with NOTICES
† See
and Non-Professional Users $1.00 per
month. The Exchange’s proposed
Professional User and Non-Professional
User fees are lower than the fees for the
Cboe C2 COB feed. Despite having
slightly higher market share than the
Exchange, Cboe C2 charges higher or
comparable per User fees than proposed
by the Exchange herein.
*
*
*
*
*
Each of the above examples of other
exchanges’ market data fees support the
3.23
5.34
2.77
proposition that the Exchange’s
proposed User fees are comparable to
those of other exchanges and therefore
reasonable.
Non-Display Usage Fee
The proposed Non-Display Usage fee
for the Exchange’s market data products
is comparable to those charged by
Nasdaq Options and Nasdaq MRX, as
summarized in below table.
Market data products
Monthly non-display usage fee
All .................................................................
NOM BONO, NOM ITTO .............................
MRX Top, MRX Depth, MRX Spread ..........
$1,500.00 (per feed (capped at $3,000.00).
$10,530.00 (per exchange).
$7,575.00 (per exchange).
supra note 24.
A more detailed discussion of the
comparison follows.
Nasdaq Options. Nasdaq Options,
with a market share of approximately
5.34%, which is higher than the
Exchange’s market share, charges higher
Non-Display Usage fees for its top of
book and depth of book feeds than
proposed by the Exchange. Further,
Nasdaq Options also charges the full
Non-Display Usage fees to receive all of
its data products, whereas the Exchange
proposes to cap the Non-Display Usage
fee at $3,000.00, which would provide
a discount to subscribers that choose to
subscribe to multiple Exchange data
feeds for Non-Display Usage.40
As discussed above, the Nasdaq
Options BONO feed is an options feed
that provides Nasdaq Options’ best bid
and offer and last sale information.41
The Nasdaq Options BONO feed is
similar to the Exchange’s ToM data feed.
The Nasdaq Options ITTO feed is an
options feed that provides full order and
quote depth information for individual
orders and quotes and last sale
information.42 Nasdaq Options ITTO
also provides, among other things,
product (option series) available for
trading on Nasdaq Options, the trading
status of such products (i.e., whether the
series is available for closing
transactions only), and order imbalances
on opening/reopenings. The Nasdaq
Options ITTO feed is similar to the
Exchange’s SLF data feed.43
Nasdaq Options charges a monthly fee
of $10,530.00 for Non-Display Usage of
the Nasdaq Options BONO feed and
Nasdaq Options ITTO feed.44 The
Exchange proposes to charge less than
Nasdaq Options while also proposing to
cap the Non-Display Usage fee at
$3,000.00, which would provide a
discount to subscribers that choose to
subscribe to multiple Exchange data
feeds for Non-Display Usage.
Specifically, for the ToM, cToM, and
SLF data feeds, the Exchange proposes
to charge a monthly fee of $1,500.00 for
Non-Display Usage and to cap the NonDisplay Usage fee at $3,000.00 for those
that wish to receive two or more of the
Exchange’s data feeds for Non-Display
Usage. This cap would be in lieu of
paying the full Non-Display Usage Fee
for each data product, which would
total $6,000.00 per month. Despite
having incrementally lower market
share than the Exchange, Nasdaq
Options charges higher Non-Display
Usage fees than the fees proposed by the
Exchange herein.
Nasdaq MRX. Nasdaq MRX, with a
market share of approximately 2.77%,
which is lower than the Exchange’s
market share, charges higher NonDisplay Usage fees for its top of book,
depth of book, and order feeds than the
fees proposed by the Exchange. Like the
Exchange proposes herein, Nasdaq MRX
charges the full single Non-Display
Usage fee for access to all of its market
data feeds. The Exchange proposes to
cap the Non-Display Usage fee at
$3,000.00, which would provide a
discount to subscribers that choose to
subscribe to multiple Exchange data
feeds for Non-Display Usage, similar to
Nasdaq MRX.
The Nasdaq MRX Top of Market feed
is an options feed that provides Nasdaq
MRX’s best bid and offer and last sale
information.45 The Nasdaq MRX Top of
Market feed is similar to the Exchange’s
ToM data feed. The Nasdaq MRX Depth
of Market feed is an options feed that
provides full order and quote depth
information for individual orders and
38 Cboe C2 also provides the Cboe C2 Top feed,
which provides top of book quotations and
execution information. Cboe C2 Top is similar to
the Exchange’s ToM feed. Cboe C2 charges
Professional Users $5.00 per month and NonProfessional Users $0.10 per month. For ToM,
cToM and SLF data feeds, the Exchange proposes
to charge Professional Users $20.00 per month and
Non-Professional Users $1.00 per month. Although
higher, the Exchange’s proposed Professional and
Non-Professional User fees are not necessarily
comparable to Cboe C2 Top fees because a User may
receive access to each of the Exchange’s three data
feeds for a single per User fee and, unlike Cboe C2,
not be required to pay a separate per User fee for
each data product and Cboe C2 also provides three
data feeds that provide only Cboe C2 data. It is
reasonable, however, to compare the Exchange’s
data feeds to Cboe C2 data feeds with higher per
User fees because they charge the higher fee for a
single data product whereas the Exchange includes
each of its data products for a single fee. Cboe C2
also offers the Cboe One Options Feed, which
provides information for not only Cboe C2, but also
its three affiliated options markets, Cboe EDGX
Options, Cboe, and Cboe BZX Options.
39 See Cboe C2 Fee Schedule, available at https://
www.cboe.com/us/options/membership/fee_
schedule/ctwo/.
40 The Exchange notes that not all options
exchanges charge non-display fees for options data.
For example, Cboe, Cboe C2, Cboe EDGX Options,
Cboe BZX Options, BOX, and MEMX Options do
not charge non-display fees. Therefore, the
Exchange compared its fees to two comparable
exchanges, Nasdaq Options and Nasdaq MRX,
which charge non-display fees.
41 See Nasdaq Options Rules, Options 3, Section
23(a)(2).
42 See Nasdaq Options Rules, Options 3, Section
23(a)(1).
43 The Exchange proposes to cap the amount of
Non-Display Usage fees for those that subscribe to
multiple Exchange data feeds.
44 See Price List—U.S. Derivatives Data, available
at https://www.nasdaqtrader.com/Trader.aspx?id
=DPPriceListOptions. See also Securities Exchange
Act Release No. 73823 (December 11, 2014), 79 FR
75207 (December 17, 2014) (SR–NASDAQ–2014–
119).
45 See Nasdaq MRX Options Rules, Options 3,
Section 23(a)(3).
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quotes and last sale information.46 The
Nasdaq MRX Depth of Market feed is
similar to the Exchange’s SLF feed. The
Nasdaq MRX Spread feed is an options
feed that provides information for both
simple and complex orders.47 The
Nasdaq MRX Spread feed is similar to
the Exchange’s cToM data feed.
Nasdaq MRX charges a monthly fee of
$7,575.00 for Non-Display Usage of the
Nasdaq MRX Top of Market feed,
Nasdaq MRX Depth of Market feed, and
Nasdaq MRX Spread feed.48 The
Exchange proposes to charge less than
Nasdaq MRX while also proposing to
cap the Non-Display Usage fee at
$3,000.00, which would provide a
Market
share ‡
(%)
Exchange
MIAX Sapphire ...........
3.23
Nasdaq Options .........
5.34
Nasdaq MRX ..............
2.77
Cboe BZX Options .....
Cboe C2 .....................
4.21
2.89
khammond on DSK9W7S144PROD with NOTICES
‡ See
Market data
product
discount to subscribers that choose to
subscribe to multiple Exchange data
feeds for Non-Display Usage.
Specifically, for all of the Exchange’s
data feeds, the Exchange proposes to
charge a monthly fee of $1,500.00 and
to cap the Non-Display Usage fee at
$3,000.00 for those that wish to receive
two or more of the Exchange’s data
feeds for Non-Display Usage. This cap
would be in lieu of paying the full NonDisplay Usage Fee for each data
product, which would total $6,000.00
per month. Despite having lower market
share than the Exchange, Nasdaq MRX
charges higher Non-Display Usage fees
Internal
distributors
ToM ...................
cToM .................
SLF ....................
NOM BONO ......
NOM ITTO .........
MRX Top ...........
MRX Depth ........
MRX Spread ......
BZX Depth .........
C2 Complex ......
C2 Depth ...........
External
distributors
$1,200.00
1,200.00
3,000.00
1,566.00
1,566.00
1,515.00
1,515.00
1,010.00
3,000.00
1,000.00
2,500.00
$2,000.00
2,000.00
3,500.00
2,089.00
2,089.00
2,020.00
2,020.00
1,515.00
2,000.00
1,000.00
2,500.00
than the fees proposed by the Exchange
herein.
*
*
*
*
*
Each of the above examples of other
exchanges’ market data fees support the
proposition that the Exchange’s
proposed Non-Display Usage fees lower
than those of other exchanges and
therefore reasonable.
The below table sets forth each
exchanges’ distributor fees for each data
feed that the Exchange includes in its
above comparisons. The below table
also includes applicable per User and
Non-Display Usage fees that are
discussed above.49
Pro-user
Non-pro user
Non-display fee
$20.00 (per Exchange) ...
$1.00 (per Exchange) .....
$1,500.00 (per feed
capped at $3,000.00).
$42.10 (per exchange) ...
$1.00 (per exchange) .....
$25.25 (per exchange) ...
$1.00 (per exchange) .....
($10,530.00 (per exchange, no cap).
$7,575.00 (per exchange,
no cap).
$30.00 (per feed) ............
$25.00 (per feed) ............
$50.00 (per feed) ............
$1.00 (per feed) ..............
$25.00 (per feed) ............
$50.00 (per feed) ............
N/A.
N/A.
N/A.
supra note 24.
As illustrated by the above table,
while distributor fees may vary across
exchanges, and in some instances are
higher on the Exchange, the per User
fees of other exchanges are generally
higher than that proposed by the
Exchange and can quickly make up for
any difference in distributor fees due to
an increased number of Users
permissioned to view other exchanges’
data feeds when compared to the Users
permissioned to view data from the
Exchange. In addition, Nasdaq Options
and Nasdaq MRX charge materially
higher fees for Non-Display Usage.
Meanwhile, Cboe BZX Options and
Cboe C2 would charge non-display
users their applicable distribution fee,
which are not capped and are either
higher than, or comparable to, the fees
proposed by the Exchange. Furthermore,
the Exchange proposes to only charge
fees to Internal and External Distributors
for the ToM, cToM and SLF feeds,
which, when combined with the above
proposed fees, result in fee packages
that are generally comparable to the fee
packages charged by Nasdaq Options,
Nasdaq MRX, Cboe BZX Options, and
Cboe C2 due to those exchanges
charging higher or similar User and
Non-Display Usage fees, as set forth
above.
Lastly, the proposed discount to
charge per User fees at the Exchange
level, and not per data feed, as well as
capping the monthly Non-Display Usage
fee for use of multiple data feeds, is
reasonable and cause the Exchange’s
proposed fees to be even lower for
subscribers to multiple Exchange data
products.
Pro-Rata Distribution of Fees. The
Exchange believes its proposal to
remove the text that the Exchange will
pro-rate mid-month changes to
subscriptions is reasonable because the
Exchange’s affiliates had no mid-month
subscriptions or terminations over the
past twelve (12) months that would
have required the monthly fee to be prorated and no other options exchanges
provides for the similar pro-ration of
market data fees.50 Also, removing these
provisions would harmonize the MIAX
Sapphire Fee Schedule with the MIAX
Pearl Equities Fee Schedule, which does
not provide for pro-ration of market data
fees.51
46 See Nasdaq MRX Options Rules, Options 3,
Section 23(a)(1).
47 See Nasdaq MRX Options Rules, Options 3,
Section 23(a)(2).
48 See Price List—U.S. Derivatives Data, available
at https://www.nasdaqtrader.com/Trader.aspx?
id=DPPriceListOptions.
49 The Exchange notes that other exchanges offer
an enterprise license fee that provides access to an
unlimited number of users for a single price. This
fee covers all of the applicable exchange’s market
data feeds for a single enterprise license fee. The
Exchange does not propose to offer an enterprise
license fee at this time because customers have not
requested it and, at this time, no individual
subscriber distributes Exchange market data to a
population of individual users that would
necessitate purchasing an enterprise license.
50 See Cboe BZX Fee Schedule, Market Data Fees
section and Cboe EDGX Options Fee Schedule,
supra note 13. See also MEMX Options Fee
Schedule, Market Data Fees section and Securities
Exchange Act Release No. 101370 (October 17,
2024), 89 FR 84638 (October 23, 2024) (SR–MEMX–
2024–40).
51 See MIAX Pearl Equities Fee Schedule, Section
3), Market Data Definitions, and Securities
Exchange Act Release No. 100319 (June 12, 2024),
89 FR 51562 (June 19, 2024) (SR–PEARL–2024–25).
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The Proposed Fees Are Equitably
Allocated
Overall. The Exchange believes that
its proposed fees are reasonable,
equitable, and not unfairly
discriminatory because they are
designed to align fees with services
provided. The Exchange believes that
the proposed fees for the market data
feeds are allocated fairly and equitably
among the various categories of users of
the data feeds, and any differences
among categories of users are justified
and appropriate.
The Exchange believes that the
proposed fees are equitably allocated
because they will apply uniformly to all
data recipients that choose to subscribe
to the market data feeds. Any market
participant that chooses to subscribe to
the market data feeds is subject to the
same Fee Schedule, regardless of what
type of business they operate, and the
decision to subscribe to one or more
market data feeds is based on objective
differences in usage of market data feeds
E:\FR\FM\27MYN1.SGM
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among different Members, which are
still ultimately in the control of any
particular Member. The Exchange
believes the proposed pricing of the
market data feeds is equitably allocated
because it is based, in part, upon the
amount of information contained in
each data feed, which may have
additional value to market participants.
Pro-Rata Distribution of Fees. The
Exchange believes its proposal to
remove the text that the Exchange will
pro-rate mid-month changes to
subscriptions is equitably allocated
because the Exchange’s affiliates had no
subscriber utilize pro-ration via a midmonth subscription or termination over
the past twelve (12) months, nor does it
foresee a subscriber doing so in the near
future. The Exchange believes it is
equitable to remove the text that the
Exchange will pro-rate fees for
Distributors who subscribe mid-month
because other options exchanges do not
provide for the similar pro-ration of
market data fees.52 Also, removing these
provisions would harmonize the MIAX
Sapphire Fee Schedule with the MIAX
Pearl Equities Fee Schedule, which does
not provide for pro-ration of market data
fees.53
User Fees. The Exchange believes that
the proposed fee, fee levels, and
structure that differentiates between
Professional User fees from NonProfessional User fees for display use
are equitable. This structure has long
been used by other exchanges and
OPRA to reduce the price of data to
Non-Professional Users and make it
more broadly available.54 Offering the
market data feeds to Non-Professional
Users at a lower cost than Professional
Users results in greater equity among
data recipients, as Professional Users are
categorized as such based on their
employment and participation in
financial markets, and thus, are
compensated to participate in the
markets. While Non-Professional Users
too can receive significant financial
52 See Cboe BZX Options Fee Schedule, Market
Data Fees section and Cboe EDGX Options Fee
Schedule, Market Data Fees section, supra note 13.
See also MEMX Options Fee Schedule, Market Data
Fees section and Securities Exchange Act Release
No. 101370 (October 17, 2024), 89 FR 84638
(October 23, 2024) (SR–MEMX–2024–40).
53 See MIAX Pearl Equities Fee Schedule, Section
3), Market Data Definitions, and Securities
Exchange Act Release No. 100319 (June 12, 2024),
89 FR 51562 (June 19, 2024) (SR–PEARL–2024–25).
54 See, e.g., Securities Exchange Act Release No.
59544 (March 9, 2009), 74 FR 11162 (March 16,
2009) (SR–NYSE–2008–131) (establishing the $15
Non-Professional User Fee (Per User) for NYSE
OpenBook); Securities Exchange Act Release No.
20002, File No. S7–433 (July 22, 1983), 48 FR 34552
(July 29, 1983) (establishing Non-Professional fees
for CTA data); NASDAQ BX Equity 7 Pricing
Schedule, Section 123.
VerDate Sep<11>2014
17:22 May 23, 2025
Jkt 265001
benefits through their participation in
the markets, the Exchange believes it is
reasonable to charge more to those Users
who are more directly engaged in the
markets.
Non-Display Usage Fees. The
Exchange believes the proposed NonDisplay Usage fees are equitably
allocated because they would require
Distributors to pay fees only for the uses
they actually make of the data. As noted
above, non-display data can be used by
data recipients for a wide variety of
profit-generating purposes (including
trading and order routing) as well as
purposes that do not directly generate
revenues (such as risk management and
compliance) but nonetheless
substantially reduce the recipient’s costs
by automating certain functions. The
Exchange believes that it is equitable to
charge non-display data Distributors
that use the market data feeds because
all such Distributors would have the
ability to use such data for as many nondisplay uses as they wish for one low
fee. As noted above, this structure is
comparable to that in place for the
exchanges referenced above and several
other exchanges charge multiple nondisplay fees to the same client to the
extent they use a data feed in several
different trading platforms or for several
types of non-display use.55
*
*
*
*
*
For all of the foregoing reasons, the
Exchange believes that the proposed
fees for the market data feeds are
equitably allocated.
The Proposed Fees Are Not Unfairly
Discriminatory
The Exchange believes the proposed
fees are not unfairly discriminatory
because any differences in the
application of the fees are based on
meaningful distinctions between
customers, and those meaningful
distinctions are not unfairly
discriminatory between customers.
Overall. The Exchange believes that
the proposed fees are not unfairly
discriminatory because they would
apply to all data recipients that choose
to subscribe to the same market data
55 See Cboe BZX Options Fee Schedule, available
at https://www.cboe.com/us/options/membership/
fee_schedule/bzx/ (providing fees of $2,000.00 to
$3,000.00 for Distribution, which includes NonDisplay use); Cboe C2 Fee Schedule, available at
https://www.cboe.com/us/options/membership/fee_
schedule/ctwo/ (providing a fee $2,500.00 for
Distribution, which includes Non-Display use);
Nasdaq Options Fee Schedule, available at, https://
www.nasdaqtrader.com/Trader.aspx?id=DPPrice
ListOptions (providing a fee of $10,000.00 for NonDisplay Use); and the NYSE American fee schedule,
available at https://www.nyse.com/publicdocs/
nyse/data/NYSE_Market_Data_Pricing.pdf
(providing a fee of $5,000.00 for Non-Display Use).
PO 00000
Frm 00199
Fmt 4703
Sfmt 4703
feed(s). Any market participant,
including market data vendors, that
chooses to subscribe to the market data
feeds is subject to the same Fee
Schedule, regardless of what type of
business they operate. Market
participants seeking lower cost options
may instead choose to receive data from
OPRA or another potentially lower cost
option such as a market data vendor.
The Exchange notes that market
participants can also choose to
subscribe to a combination of data feeds
for redundancy purposes or to use
different feeds for different purposes. In
sum, each market participant has the
ability to choose the best business
solution for itself. The Exchange does
not believe it is unfairly discriminatory
to base pricing upon the amount of
information contained in each data feed
and the importance of that information
to market participants. As described
above, the ToM data feed can be utilized
to trade on the Exchange but contains
less information than available on the
SLF data feed. Thus, the Exchange
believes it is not unfairly discriminatory
for the products to be priced as
proposed, with the same fees being
proposed for each data feed coupled
with the discounts and caps discussed
above.
Pro-Rata Distribution of Fees. The
Exchange believes that the proposal to
remove the text that the Exchange will
pro-rate mid-month changes to market
data subscriptions is not unfairly
discriminatory because the Exchange’s
affiliates had no mid-month
subscriptions or terminations over the
past twelve (12) months that would
have required the monthly fee to be prorated. The Exchange notes that other
options exchanges do not provide for
the similar pro-ration of market data
fees.56 Also, removing these provisions
would harmonize the MIAX Sapphire
Fee Schedule with the MIAX Pearl
Equities Fee Schedule, which does not
provide for pro-ration.57
User Fees. The Exchange believes that
the proposed fee, fee levels, and
structure that differentiates between
Professional User fees from NonProfessional User fees for display use
are not unfairly discriminatory. This
structure has long been used by other
exchanges and OPRA to reduce the
56 See Cboe BZX Options Fee Schedule, Market
Data Fees section and Cboe EDGX Options Fee
Schedule, Market Data Fees section, supra note 13.
See also MEMX Options Fee Schedule, Market Data
Fees section and Securities Exchange Act Release
No. 101370 (October 17, 2024), 89 FR 84638
(October 23, 2024) (SR–MEMX–2024–40).
57 See MIAX Pearl Equities Fee Schedule, Section
3), Market Data Definitions and Securities Exchange
Act Release No. 100319 (June 12, 2024), 89 FR
51562 (June 19, 2024) (SR–PEARL–2024–25).
E:\FR\FM\27MYN1.SGM
27MYN1
Federal Register / Vol. 90, No. 100 / Tuesday, May 27, 2025 / Notices
price of data to Non-Professional Users
and make it more broadly available.
Offering the market data feeds to NonProfessional Users with the same data as
is available to Professional Users, albeit
at a lower cost, results in greater equity
among data recipients. These User fees
would be charged uniformly to all
individuals that have access to the
market data feeds based on the category
of User.
The Exchange also believes the
proposed User fees are not unfairly
discriminatory, with higher fees for
Professional Users than NonProfessional Users, because NonProfessional Users may have less ability
to pay for such data than Professional
Users as well as less opportunity to
profit from their usage of such data.
Non-Display Usage Fees. The
Exchange believes that the proposed
Non-Display Usage fees are not unfairly
discriminatory because they would
require Distributors for non-display use
to pay fees depending on their use of the
data. As noted above, non-display data
can be used by data recipients for a
wide variety of profit-generating
purposes as well as purposes that do not
directly generate revenues but
nonetheless substantially reduce the
recipient’s costs by automating certain
functions.
*
*
*
*
*
For all of the foregoing reasons, the
Exchange believes that the proposed
fees for the Exchange’s market data
feeds are not unfairly discriminatory.
*
*
*
*
*
khammond on DSK9W7S144PROD with NOTICES
Remove Initial Waiver Period Rule Text
The Exchange believes its proposal to
remove the rule text regarding the Initial
Waiver Period below the table of fees in
Sections 6)a) and b) of the Fee Schedule
is reasonable, equitable and not unfairly
discriminatory because the Initial
Waiver Period automatically expired at
the end of February 2025. Upon the
expiration of the Initial Waiver Period,
effective March 1, 2025, the market data
fees in Sections 6)a)–b) of the Fee
Schedule began to apply to all market
participants equally who subscribe to
the ToM, cToM, and/or SLF data feeds.
This proposed change will also remove
impediments to and perfect the
mechanism of a free and open market
because it will remove text that no
longer apples from the Fee Schedule,
thereby providing clarity to market
participants regarding the Exchange’s
market data fees. It is in the public
interest for the Fee Schedule to be clear.
VerDate Sep<11>2014
17:22 May 23, 2025
Jkt 265001
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,58 the Exchange does not believe
that the proposed rule change would
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
Intra-Market Competition
The Exchange does not believe that
the proposed fees place certain market
participants at a relative disadvantage to
other market participants because, as
noted above, the proposed fees are
associated with usage of the data feed by
each market participant, which are still
ultimately in the control of any
particular Member, and such fees do not
impose a barrier to entry to smaller
participants. Accordingly, the proposed
fees do not favor certain categories of
market participants in a manner that
would impose a burden on competition;
rather, the allocation of the proposed
fees reflects the types of data consumed
by various market participants and their
usage thereof. The Exchange also
believes that the proposed fees neither
favor nor penalize one or more
categories of market participants in a
manner that would impose an undue
burden on competition.
The Exchange believes its proposal to
no longer pro-rate mid-month changes
to market data subscriptions does not
place an undue burden on intra-market
competition because all market
participants will be subject to the same
Fee Schedule, regardless of which point
in the month they subscribe. As noted
above, the Exchange’s affiliates had no
mid-month subscriptions or
terminations over the past twelve (12)
months that would have required the
monthly fee to be pro-rated. The
Exchange notes that other options
exchanges do not provide for the similar
pro-ration of market data fees.59 Also,
removing these provisions would
harmonize the MIAX Sapphire Fee
Schedule with the MIAX Pearl Equities
Fee Schedule, which does not provide
for pro-ration.60
Inter-Market Competition
The Exchange does not believe the
proposed fees place an undue burden on
58 15
U.S.C. 78f(b)(8).
Cboe BZX Options Fee Schedule, Market
Data Fees section and Cboe EDGX Options Fee
Schedule, Market Data Fees section. See also
MEMX Options Fee Schedule, Market Data Fees
section and Securities Exchange Act Release No.
101370 (October 17, 2024), 89 FR 84638 (October
23, 2024) (SR–MEMX–2024–40).
60 See MIAX Pearl Equities Fee Schedule, Section
3), Market Data Definitions and Securities Exchange
Act Release No. 100319 (June 12, 2024), 89 FR
51562 (June 19, 2024) (SR–PEARL–2024–25).
59 See
PO 00000
Frm 00200
Fmt 4703
Sfmt 4703
22423
competition on other SROs that is not
necessary or appropriate. In particular,
market participants are not forced to
subscribe to either data feed, as
described above. An exchange that
overprices its market data products
stands a high risk that users may
purchase another market’s market data
product. These competitive pressures
ensure that no one exchange’s market
data fees can impose an unnecessary
burden on competition, and the
Exchange’s proposed fees do not do so
here. Additionally, other exchanges
have similar market data fees with
comparable rates in place for their
participants. Other options exchanges
are free to adopt comparable fee
structures subject to the Commission’s
rule filing process.
The Exchange believes its proposal to
remove the rule text regarding the Initial
Waiver Period below the table of fees in
Sections 6)a) and b) of the Fee Schedule
will not impose any burden on
competition because the Initial Waiver
Period automatically expired at the end
of February 2025. Upon the expiration
of the Initial Waiver Period, effective
March 1, 2025, the market data fees in
Sections 6)a)–b) of the Fee Schedule
began to apply to all market participants
equally who subscribe to the ToM,
cToM, and/or SLF data feeds. This
proposed change is not competitive;
rather it is to remove text that no longer
apples from the Fee Schedule, thereby
providing clarity to market participants
regarding the Exchange’s market data
fees.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor 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,61 and Rule
19b–4(f)(2) 62 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 shall
institute proceedings to determine
61 15
62 17
E:\FR\FM\27MYN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
27MYN1
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Federal Register / Vol. 90, No. 100 / Tuesday, May 27, 2025 / Notices
whether the proposed rule should be
approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
SAPPHIRE–2025–23 on the subject line.
Paper Comments
khammond on DSK9W7S144PROD with NOTICES
• 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–SAPPHIRE–2025–23. 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–SAPPHIRE–2025–23 and should be
submitted on or before June 17, 2025.
17:22 May 23, 2025
[FR Doc. 2025–09409 Filed 5–23–25; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–103085; File No. SR–
NASDAQ–2025–011]
Electronic Comments
VerDate Sep<11>2014
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.63
Sherry R. Haywood,
Assistant Secretary.
Jkt 265001
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing of Amendment No. 1, and Order
Granting Accelerated Approval of a
Proposed Rule Change, as Modified by
Amendment No. 1, To Introduce
Functionality To Initiate a Trading Halt
for Exchange-Traded Products on
Launch Day
May 20, 2025.
I. Introduction
On January 31, 2025, The Nasdaq
Stock Market LLC (the ‘‘Exchange’’ or
‘‘Nasdaq’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to introduce an
optional functionality for ExchangeTraded Products to initiate a trading
halt on the launch day of an ExchangeTraded Product, similar to the halt used
in initial public offerings (‘‘IPOs’’). The
proposed rule change was published for
comment in the Federal Register on
February 20, 2025.3 On March 6, 2025,
pursuant to Section 19(b)(2) of the
Exchange 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 May 6, 2025, the
Exchange filed Amendment No. 1,
which amends and replaces the
proposed rule change in its entirety.6
63 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 102413
(February 13, 2025), 90 FR 10001.
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No.
102537, 90 FR 11866 (March 12, 2025). The
Commission designated May 21, 2025, as the date
by which the Commission shall approve or
disapprove, or institute proceedings to determine
whether to disapprove, the proposed rule change.
6 In Amendment No. 1, the Exchange added
clarifying or corrective changes that, among other
things: (1) provides additional background on how
an ETP opens today and rationale on why the
1 15
PO 00000
Frm 00201
Fmt 4703
Sfmt 4703
The Commission has received no
comments on the proposed rule change.
The Commission is publishing this
notice to solicit comments on
Amendment No. 1 to the proposed rule
change from interested persons, and is
approving the proposed rule change, as
modified by Amendment No. 1, on an
accelerated basis.
II. Exchange’s Description of the
Proposed Rule Change, as Modified by
Amendment No. 1
In its filing with the Commission, the
self-regulatory organization 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 those 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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
Equity 1—Equity Definitions and Equity
4—Equity Trading Rules to allow
Exchange-Traded Products (‘‘ETPs’’) 7 to
utilize an optional new halt on launch
day (hereinafter, the ‘‘Initial ETP
Open’’), and resume trading using the
Nasdaq Halt Cross.8 As discussed in
detail below, the proposed Initial ETP
Open is designed to operate similarly to
Nasdaq’s IPO opening process for
Exchange is proposing the Initial ETP Open; (2)
specifies that the Exchange would only assign one
DLP per ETP in the context of the proposed Initial
ETP Open; (3) deletes the Regulation M statement
relating to the DLP in proposed Rule 4120(c)(11)(A)
because the Exchange inadvertently included this
statement when it does not apply in the context of
this proposal; (4) adds more granularity in proposed
Rule 4120(c)(11)(B)(i) about the DLP notifying the
Exchange that the ETP is ready to trade; (5) clarifies
that price bands would be set exchange-wide and
not on a security-by-security basis; (6) specifies the
DLP’s responsibilities in the proposed Initial ETP
Open; and (7) clarifies that the IPO Indicator will
provide the same information in the Order
Imbalance Indicator under this proposal.
Amendment No. 1 to the proposed rule change is
available on the Commission’s website at: https://
www.sec.gov/comments/sr-nasdaq-2025-011/
srnasdaq2025011.htm.
7 As discussed later in this filing, the Exchange
will add ‘‘Exchange-Traded Products’’ as a defined
term in Equity 1, Section 1(a).
8 The ‘‘Nasdaq Halt Cross’’ is the process for
determining the price at which Eligible Interest
shall be executed at the open of trading for a halted
security and for executing that Eligible Interest. See
Rule 4753(a)(4). ‘‘Eligible Interest’’ shall mean any
quotation or any order that has been entered into
the system and designated with a time-in-force that
would allow the order to be in force at the time of
the Halt Cross. See Equity 4, Rule 4753(a)(5).
E:\FR\FM\27MYN1.SGM
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]]>Agencies
[Federal Register Volume 90, Number 100 (Tuesday, May 27, 2025)]
[Notices]
[Pages 22415-22424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-09409]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103093; File No. SR-SAPPHIRE-2025-23]
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the MIAX Sapphire Fee Schedule To Adopt New Fee Categories for the
Exchange's Proprietary Market Data Feeds
May 20, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on May 7, 2025, MIAX Sapphire, LLC (``MIAX
Sapphire'' or ``Exchange'') filed with the Securities and Exchange
Commission (``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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend the MIAX Sapphire
Options Exchange Fee Schedule (the ``Fee Schedule'') to adopt new fee
categories for the Exchange's proprietary market data feeds: (i) MIAX
Sapphire Top of Market (``ToM'') data feed; (ii) MIAX Sapphire Complex
Top of Market (``cToM'') data feed; and (iii) MIAX Sapphire Liquidity
Feed (``SLF'') (collectively, the ``market data feeds'').
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings, at MIAX Sapphire's principal office, 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 offers three standard proprietary market data
products, ToM, cToM, and SLF. The ToM data feed is a data feed that
contains the Exchange's best bid and offer, with aggregate size, and
last sale information, based on order and quoting interest on the
Exchange.\3\ The ToM data feed includes data that is identical to the
data sent to the processor for the Options Price Reporting Authority
(``OPRA''). The data for ToM and OPRA leave the System \4\ at the same
time, as required under Section 5.2(c)(iii)(B) of the Limited Liability
Company Agreement of the Options Price Reporting Authority LLC (the
``OPRA Plan''), which prohibits the dissemination of proprietary
information on any more timely basis than the same information is
furnished to the OPRA system for inclusion in OPRA's consolidated
dissemination of options information. The cToM data feed includes the
same types of information as ToM, but for Complex Orders \5\ on the
Exchange's Strategy Book.\6\ This information includes the Exchange's
best bid and offer for a complex strategy,\7\ with aggregate size,
based on displayable orders in the complex strategy. The cToM data feed
also provides subscribers with the following information: (i) the
identification of the complex strategies currently trading on the
Exchange; (ii) complex strategy last sale information; and (iii) the
status of securities underlying the complex strategy (e.g., halted,
open, or resumed). The SLF data feed provides market participants with
a direct data feed that allows subscribers to receive real-time updates
of options orders, products traded on MIAX Sapphire, MIAX Sapphire
System status, and MIAX Sapphire underlying trading status.\8\ When an
order is received or an order state changes, published order
information will be transmitted over SLF, including time stamp, action,
product ID, order ID, order side, order type, order price, original
order size, open order size, time in force, origin, open or close, and
route instruction. For complex orders, complex strategy definition
notification and complex order notice are also included. Subscribers to
the SLF will get a list of all options symbols and strategies that will
be traded and sourced on that feed at the start of every session.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 100588 (July 25,
2024), 89 FR 61554 (July 31, 2024) (SR-SAPPHIRE-2024-01).
\4\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
\5\ In sum, a ``Complex Order'' is ``any order involving the
concurrent purchase and/or sale of two or more different options in
the same underlying security (the `legs' or `components' of the
complex order), for the same account . . . .'' See Exchange Rule
518(a)(5).
\6\ The ``Strategy Book'' is the Exchange's electronic book of
complex orders and complex quotes. See Exchange Rule 518(a)(19).
\7\ The term ``complex strategy'' means a particular combination
of components and their ratios to one another. New complex
strategies can be created as the result of the receipt of a complex
order or by the Exchange for a complex strategy that is not
currently in the System. The Exchange may limit the number of new
complex strategies that may be in the System at a particular time
and will communicate this limitation to Members via Regulatory
Circular. See Exchange Rule 518(a)(6).
\8\ The Exchange established the Definitions section of the Fee
Schedule in a separate rule filing. See Securities Exchange Act
Release No. 100683 (August 9, 2024), 89 FR 66467 (August 15, 2024)
(SR-SAPPHIRE-2024-13).
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Section 6 of the Fee Schedule, Market Data Fees, provides fees for
the ToM,
[[Page 22416]]
cToM, and SLF data feeds. The Exchange waived such fees during an
Initial Waiver Period,\9\ which expired on March 1, 2025.\10\ At the
expiration of the Initial Waiver Period, the Exchange began to charge
monthly fees to both Internal and External Distributors (proposed
definitions below) of the ToM, cToM, and SLF data feeds. Specifically,
the Exchange started to charge Internal Distributors a monthly fee of
$1,200.00 for the ToM and cToM data feeds, and $3,000.00 for the SLF
data feed. The Exchange also started to charge External Distributors a
monthly fee of $2,000.00 for the ToM and cToM data feeds, and $3,500.00
for the SLF data feed.
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\9\ The term ``Initial Waiver Period'' means, for each
applicable fee, the period of time from the initial effective date
of the MIAX Sapphire Fee Schedule plus an additional six (6) full
calendar months after the completion of the partial month of the
Exchange launch. See the Definitions section of the Fee Schedule.
\10\ See Securities Exchange Act Release No. 102321 (February 3,
2025), 90 FR 9173 (February 7, 2025) (SR-SAPPHIRE-2025-04).
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The Exchange now proposes to amend the Fee Schedule to, among other
things, adopt new fee categories for the Exchange's proprietary market
data feeds. The primary purpose of this proposal is to adopt per User
(defined below) fees as well as fees for Non-Display Usage (also
defined below). The Exchange also proposes to add a ``Market Data
Definitions'' section to Section 6 of the Fee Schedule as well as
modify how mid-month subscriptions for Distributors are to be handled.
The Exchange believes that adopting the same fee structure as its
affiliated exchanges would reduce administrative burdens on market data
subscribers that also currently subscribe to market data feeds from the
Exchange's affiliates. Each of these proposed changes are described
below.
* * * * *
The Exchange believes that exchanges, in setting fees of all types,
should meet very high standards of transparency to demonstrate why each
new fee or fee increase meets the requirements of the Act that fees be
reasonable, equitably allocated, not unfairly discriminatory, and not
create an undue burden on competition among Members \11\ and markets.
The Exchange believes this high standard is especially important when
an exchange imposes various fees for market participants to access an
exchange's market data.
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\11\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
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Approximately 60% of Members subscribe to one or more market data
feeds from the Exchange. Of those Members, approximately 37% subscribe
to all four market data feeds, approximately 22% subscribe to three
market data feeds, approximately 19% subscribe to two market data
feeds, and approximately 22% subscribe to only one market data feed.
The Exchange notes that there is no requirement that any Member or
market participant subscribe to the ToM, cToM, or SLF data feeds
offered by the Exchange. Instead, a Member may choose to maintain
subscriptions to the ToM, cToM, or SLF data feeds based on their own
business needs and trading models.
Definitions
The Exchange proposes to include a Definitions section at the
beginning of Section 6, Market Data Fees, of the Fee Schedule. The
purpose of the Definitions section is to provide market participants
greater clarity and transparency regarding the applicability of fees by
defining certain terms used in connection with market data feeds within
the Fee Schedule in a single location related to the Exchange's market
data products. The Exchange notes that it includes similar Definitions
in its fee schedule applicable to its own equity trading platform, MIAX
Pearl Equities,\12\ and that each of the proposed definitions are based
on the MIAX Pearl Equities Fee Schedule and that of other exchanges.
The Exchange believes that including a Definitions section for market
data products makes the Fee Schedule more user-friendly and
comprehensive.
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\12\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Fees, and Securities Exchange Act Release No. 100319 (June 12,
2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25). See also Cboe
BZX Exchange, Inc. (``Cboe BZX Options'') Fee Schedule, Market Data
Fees section, and Cboe EDGX Exchange, Inc. (``Cboe EDGX Options'')
Fee Schedule, Market Data Fees section. See also MEMX LLC (``MEMX
Options'') Fee Schedule, Market Data Fees section, and Securities
Exchange Act Release No. 101370 (October 17, 2024), 89 FR 84638
(October 23, 2024) (SR-MEMX-2024-40) (``MEMX Options Market Data Fee
Proposal'').
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The Exchange proposes to define the following terms in Section 6 of
the Fee Schedule:
Distributor. Any entity that receives the Exchange data
product directly from the Exchange or indirectly through another entity
and then distributes it internally or externally to a third party.
External Distributor. A Distributor that receives the
Exchange data product and then distributes that data to a third party
or one or more Users outside the Distributor's own entity.
Internal Distributor. A Distributor that receives the
Exchange data product and then distributes that data to one or more
Users within the Distributor's own entity.
[cir] The Exchange notes that it proposes to use the phrase ``own
entity'' in the definition of Internal Distributor and External
Distributor because a Distributor would be permitted to share data
received from an exchange data product to other legal entities
affiliated with the Distributor's entity that have been disclosed to
the Exchange without such distribution being considered external to a
third party. For instance, if a company has multiple affiliated broker-
dealers under the same holding company, that company could have one of
the broker-dealers or a non-broker-dealer affiliate subscribe to an
exchange data product and then share the data with other affiliates
that have a need for the data. This sharing with affiliates would not
be considered external distribution to a third party but instead would
be considered internal distribution to data recipients within the
Distributor's own entity.
[cir] The Exchange also notes that the explanatory paragraphs under
the ToM, cToM, and SLF data feed fee tables includes the following
language which defines the terms Distributor, Internal Distributors,
and External Distributors:
MIAX Sapphire will assess Market Data Fees applicable to ToM
[cToM, AIS or SLF] on Internal and External Distributors in each
month the Distributor is credentialed to use ToM [cToM, AIS or SLF]
in the production environment. A Distributor of MIAX Sapphire data
is any entity that receives a feed or file of data either directly
from MIAX Sapphire or indirectly through another entity and then
distributes it either internally (within that entity) or externally
(outside that entity). All Distributors are required to execute an
Exchange Distributor Agreement.
The Exchange proposes to remove these provisions from the Fee
Schedule because they: (i) duplicate the proposed definitions of
Distributor, External Distributor, and External Distributor proposed
herein with no substantive difference; and (ii) provide details that
are included in the Exchange's market data policies that are also not
also provided for in the fee schedules of other options exchanges.\13\
Removing these provisions would also harmonize the definition and fee
descriptions with
[[Page 22417]]
the fee schedule applicable to MIAX Pearl Equities.\14\
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\13\ See Cboe BZX Options Fee Schedule, Market Data Fees section
and Cboe EDGX Options, Market Data Fees section, both available at
https://www.cboe.com/us/options/membership/?_gl=1*19q7zz0*_up*MQ..*_ga*NjY5OTA0NzE4LjE3MzQ1MzQzODk.*_ga_5Q99WB9X71*MTczNDUzNzQ0Mi4yLjEuMTczNDUzNzQ5OC4wLjAuMA. See also MEMX Options
Fee Schedule and Securities Exchange Act Release No. 101370 (October
17, 2024), 89 FR 84638 (October 23, 2024) (SR-MEMX-2024-40).
\14\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Fees, and Securities Exchange Act Release No. 100319 (June 12,
2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25).
---------------------------------------------------------------------------
Non-Display Usage. Any method of accessing an Exchange
data product that involves access or use by a machine or automated
device without access or use of a display by a natural person or
persons.
Non-Professional User. A natural person or qualifying
trust that uses Exchange data only for personal purposes and not for
any commercial purpose and, for a natural person who works in the
United States, is not: (i) registered or qualified in any capacity with
the Securities and Exchange Commission, the Commodities Futures Trading
Commission, any state securities agency, any securities exchange or
association, or any commodities or futures contract market or
association; (ii) engaged as an ``investment adviser'' as that term is
defined in Section 202(a)(11) of the Investment Advisors Act of 1940
(whether or not registered or qualified under that Act); or (iii)
employed by a bank or other organization exempt from registration under
federal or state securities laws to perform functions that would
require registration or qualification if such functions were performed
for an organization not so exempt; or, for a natural person who works
outside of the United States, does not perform the same functions as
would disqualify such person as a Non-Professional User if he or she
worked in the United States.
Professional User. Any User other than a Non-Professional
User.
User. A Professional User or Non-Professional User.
Proposed Market Data Pricing
As described above, upon the expiration of the Initial Waiver
Period, the Exchange began to charge Internal Distributors a monthly
fee of $1,200.00 for the ToM and cToM data feeds, and $3,000.00 for the
SLF data feed. The Exchange also only currently charges External
Distributors a monthly fee of $2,000.00 for the ToM and cToM data
feeds, and $3,500.00 for the SLF data feed. The Exchange now proposes
to charge the below per User fees as well as Non-Display Usage fees for
the ToM, cToM, and SLF data feeds, which, the Exchange believes are
generally similar to or lower than market data fees charged by other
similarly situated options exchanges. The Exchange does not propose to
adopt any additional fee categories in this proposal. Each of the below
capitalized terms are defined above and would be included under the
proposed Definitions section under Section 6, Market Data Fees, of the
Fee Schedule.
1. User Fees. For the ToM, cToM, and SLF data feeds, the Exchange
proposes to charge a monthly fee of $20.00 for each Professional User
and $1.00 for each Non-Professional User of each data feed.\15\ The
proposed User fees would apply to each person that has access to the
ToM, cToM, or SLF data feeds that is provided by a Distributor (either
Internal or External) for displayed usage. Each Distributor's User
count would include every individual that has access to the data
regardless of the purpose for which the individual uses the data. The
above Professional or Non-Professional User fee would provide the same
Professional or Non-Professional User access to all other MIAX Sapphire
Market Data feeds for no additional per User charge.\16\ In other
words, a User would receive access to the ToM, cToM, and SLF data feeds
for the applicable single per User fee and not have to pay separate per
User fees for each data feed. As such, Distributors should report the
number of Users per the Exchange, and not per individual data feed.
This would be noted in Section 6 of the Fee Schedule under footnote 1
following the fee tables for the ToM, cToM, and SLF data feeds.
Distributors of the ToM, cToM, or SLF data feeds would be required to
report all Professional and Non-Professional Users in accordance with
the following:
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\15\ The Exchange does not propose to adopt an Enterprise Fee at
this time and may do so in the future based on feedback from market
participants.
\16\ The Exchange notes that similar reporting is required by
the Nasdaq options markets, The Nasdaq Stock Market LLC (``Nasdaq
Options''), Nasdaq Phlx LLC (``Nasdaq Phlx''), and Nasdaq MRX, LLC
(``Nasdaq MRX''). See, e.g., https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions (providing that ``[t]he monthly
user fee should be reported once for Nasdaq Options, not once per
datafeed'').
---------------------------------------------------------------------------
In connection with a Distributor's distribution of the
ToM, cToM, or SLF data feeds, the Distributor must count as one User
each unique User that the Distributor is entitled for access to the
ToM, cToM, or SLF data feeds.
Distributors must report each unique individual person who
receives access through multiple devices or multiple methods (e.g., a
single User has multiple passwords and user identifications) as one
User.
If a Distributor entitles one or more individuals to use
the same device, the Distributor must include only the individuals, and
not the device, in the count. Thus, Distributors would not be required
to report User device counts associated with a User's display use of
the data feed.
2. Non-Display Usage Fees. The Exchange proposes to establish a
monthly Non-Display Usage \17\ fee of $1,500.00 for the ToM, cToM, and
SLF data feeds.
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\17\ Non-Display Usage would include trading uses such as high
frequency or algorithmic trading as well as any trading in any asset
class, automated order or quote generation and/or order pegging,
price referencing for smart order routing, operations control
programs, investment analysis, order verification, surveillance
programs, risk management, compliance, and portfolio management.
---------------------------------------------------------------------------
The Exchange proposes to provide a discount to those that
subscribe to two or more MIAX Sapphire data feeds by capping the Non-
Display Usage fee for Subscribers of two or more MIAX Sapphire data
feeds at $3,000.00. This would be noted in Section 6 of the Fee
Schedule under footnote 2 following the fee tables for the ToM, cToM,
and SLF data feeds.
Lastly, the Exchange proposes to no longer pro-rate fees for
Distributors who subscribe or terminate mid-month. The Exchange notes
that there were no mid-month subscriptions or terminations over the
past twelve (12) months that would have required the monthly fee to be
pro-rated. The Exchange also notes that mid-month subscriptions and
terminations could place an increased burden on Exchange staff and
systems that are in place to pro-rate the monthly fee that are not
justified by the little to no mid-month subscriptions and terminations
that occurred over the past year on its affiliated options exchanges or
that the Exchange anticipates going forward based on its past
experience. This portion of the proposal should also encourage
subscribers to either begin a new subscription or terminate an existing
subscription at the beginning or end of a month, respectively. Lastly,
removing these provisions would also harmonize the MIAX Sapphire Fee
Schedule with the MIAX Pearl Equities fee schedule, which also does not
provide for pro-ration.\18\ Also, other exchanges do not provide for
the similar pro-ration of market data fees.\19\ Therefore, the Exchange
proposes to remove the following language providing for pro-rated month
fees for mid-month subscribers from the
[[Page 22418]]
explanatory paragraphs under the ToM, cToM, and SLF data feed fee
tables:
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\18\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Fees, and Securities Exchange Act Release No. 100319 (June 12,
2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25).
\19\ See Cboe BZX Options Fee Schedule and Cboe EDGX Options Fee
Schedule, supra note 13. See also MEMX Options Fee Schedule and
Securities Exchange Act Release No. 101370 (October 17, 2024), 89 FR
84638 (October 23, 2024) (SR-MEMX-2024-40).
Market Data Fees for [ToM/cToM/SLF] will be reduced for new
Distributors for the first month during which they subscribe to
[ToM/cToM/SLF], based on the number of trading days that have been
held during the month prior to the date on which they have been
credentialed to use [ToM/cToM/SLF] in the production environment.
Such new Distributors will be assessed a pro-rata percentage of the
fees described above, which is the percentage of the number of
trading days remaining in the affected calendar month as of the date
on which they have been credentialed to use [ToM/cToM/SLF] in the
production environment, divided by the total number of trading days
in the affected calendar month.
Remove Initial Waiver Period Rule Text
The Exchange also proposes to remove the rule text regarding the
Initial Waiver Period that is below the table of fees in Sections 6)a)
and b) of the Fee Schedule. As noted above, the Exchange established
the Initial Waiver Period when it launched operations on August 13,
2024 for a defined period of time. The Initial Waiver Period was in
effect for the partial month in which the Fee Schedule was established
in August 2024, continuing in effect for six months thereafter.
Accordingly, the Initial Waiver Period automatically expired at the end
of February 2025. The purpose of this change is to remove text that no
longer applies from the Fee Schedule, thereby providing clarity to
market participants regarding the Exchange's market data fees.
Implementation
The Exchange issued alerts publicly announcing the proposed fees on
September 30, 2024 and December 17, 2024.\20\ The fees subject to this
proposal are immediately effective.
---------------------------------------------------------------------------
\20\ See Fee Change Alert, MIAX Exchange Group--January 1, 2025
and March 1, 2025 Market Data Fee Changes (dated September 30,
2024), available at https://www.miaxglobal.com/alert/2024/09/30/miax-exchange-group-options-markets-january-1-2025-and-march-1-2025-market-1?nav=all and Fee Change Alert, MIAX Exchange Group--Options
Markets--Reminder: January 1, 2025 and March 1, 2025 Market Data Fee
Changes (dated December 17, 2024), available at https://www.miaxglobal.com/alert/2024/12/17/miax-exchange-group-options-markets-reminder-january-1-2025-and-march-1-2?nav=all.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \21\ of the Act in general, and
furthers the objectives of Section 6(b)(4) \22\ of the Act, in
particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees and other charges among its Members
and other persons using its facilities. Additionally, the Exchange
believes that the proposed fees are consistent with the objectives of
Section 6(b)(5) \23\ of the Act in that they are designed 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 a free and open market and
national market system, and, in general, to protect investors and the
public interest, and, particularly, are not designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.
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\21\ 15 U.S.C. 78f.
\22\ 15 U.S.C. 78f(b)(4).
\23\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange notes that the ToM, cToM, and SLF data feeds are
entirely optional. The Exchange is not required to make the ToM, cToM,
and SLF data feeds available to any customers, nor is any customer
required to purchase the ToM, cToM, and SLF data feeds.
The Proposed Fees Are Reasonable and Comparable to the Fees Charged by
Other Exchanges for Similar Data Products
Overall. The proposed fees are comparable to those of other options
exchanges. Based on publicly-available information, no single exchange
had more than 13.65% equity options market share for all of 2024,\24\
and the Exchange compared the fees proposed herein to the fees charged
by other options exchanges with similar market share. A more detailed
discussion of the comparison follows.
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\24\ See the Market Share section of the Exchange's website,
U.S. Options, available at https://www.miaxglobal.com/company/data/market-share (last visited May 7, 2025). Unlike its affiliate
options exchanges that utilized full year 2024 market share numbers
for their comparisons to other exchanges in their related market
data fee filings, the Exchange chose the most recent full month to
compare market share because the Exchange has not yet had a full
year of operations.
---------------------------------------------------------------------------
The Exchange assesses the market share for each of the below
referenced options markets utilizing total equity options contracts
traded in April 2025, as set forth in the following charts: \25\
---------------------------------------------------------------------------
\25\ Market share is the percentage of volume on a particular
exchange relative to the total volume across all exchanges, and
indicates the amount of order flow directed to that exchange. High
levels of market share enhance the value of trading and ports. Total
contracts include both multi-list options and proprietary options
products. Proprietary options products are products with
intellectual property rights that are not multi-listed.
---------------------------------------------------------------------------
User Fees
The proposed per User fees for the Exchange's market data products
are comparable to or lower than those charged by Nasdaq Options, Nasdaq
MRX, Cboe BZX Options, and Cboe C2 Exchange, Inc. (``Cboe C2''), as
summarized in the table below.
----------------------------------------------------------------------------------------------------------------
Monthly non-
Exchange Market share * Market data product Monthly professional professional user
(%) user fee fee
----------------------------------------------------------------------------------------------------------------
MIAX Sapphire.................. 3.23 All................. $20.00 (per $1.00 (per
Exchange). Exchange).
Nasdaq Options................. 5.34 NOM BONO, NOM ITTO.. $42.10 (per $1.00 (per
exchange). exchange).
Nasdaq MRX..................... 2.77 MRX Top, MRX Depth, $25.25 (per $1.00 (per
MRX Spread. exchange). exchange).
Cboe BZX Options............... 4.21 BZX Depth........... $30.00 (per feed)... $1.00 (per feed).
Cboe C2........................ 2.89 C2 Depth............ $50.00 (per feed)... $50.00 (per feed).
C2 Complex.......... $25.00 (per feed)... $25.00 (per feed).
----------------------------------------------------------------------------------------------------------------
* See supra note 24.
A more detailed discussion of the comparison follows.
Nasdaq Options. Nasdaq Options, with a market share of
approximately 5.34% that is only slightly higher than the Exchange,
charges higher or comparable Professional and Non-Professional User
fees for its top of book and depth of book feeds than proposed by the
Exchange. Further, like Nasdaq Options, the Exchange proposes to charge
a single per User fee that would provide access to all of its market
data products for a single fee.
The Nasdaq Options Best of Nasdaq Options (``BONO'') feed is an
options feed that provides Nasdaq Options' best bid and offer and last
sale information.\26\ The Nasdaq Options BONO feed is similar to the
Exchange's ToM data feed. The Nasdaq Options ITCH to Trade
[[Page 22419]]
Options (``ITTO'') feed is an options feed that provides full order and
quote depth information for individual orders and quotes and last sale
information.\27\ ITTO also provides, among other things, product
(option series) available for trading on Nasdaq Options, the trading
status of such products (i.e., whether the series is available for
closing transactions only), and order imbalances on opening/reopenings.
The ITTO feed is similar to the Exchange's SLF data feed.\28\
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\26\ See Nasdaq Options Rules, Options 3, Section 23(a)(2).
\27\ See Nasdaq Options Rules, Options 3, Section 23(a)(1).
\28\ The Exchange is not comparing its cToM feed to a comparable
Nasdaq Options feed because the Exchange understands Nasdaq Options
does not offer such a feed.
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Nasdaq Options charges Professional Users $42.10 per month and Non-
Professional Users $1.00 per month for the BONO feed and ITTO feed.\29\
The Exchange proposes to charge less than Nasdaq Options for
Professional Users and the same as Nasdaq Options for Non-Professional
Users while also providing access to all of its market data feeds for a
single per User fee. Specifically, for both the ToM and SLF data feeds,
the Exchange proposes to charge Professional Users $20.00 per month and
Non-Professional Users $1.00 per month. The Exchange's proposed
Professional User fee is lower than Nasdaq Options and its Non-
Professional User fee is equal to Nasdaq Options. Despite having only
incrementally higher market share than the Exchange, Nasdaq Options
charges much higher or comparable per User fees than proposed by the
Exchange herein.
---------------------------------------------------------------------------
\29\ See Price List--U.S. Derivatives Data, available at https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions. See also
Securities Exchange Act Release No. 73823 (December 11, 2014), 79 FR
75207 (December 17, 2014) (SR-NASDAQ-2014-119).
---------------------------------------------------------------------------
Nasdaq MRX. Nasdaq MRX, with a market share of approximately 2.77%,
lower than the Exchange, charges higher Professional and Non-
Professional User fees for its top of book and depth of book feeds than
the fees proposed by the Exchange. Further, like Nasdaq MRX, the
Exchange proposes to charge a single per User fee that would provide
access to all of its market data products for a single fee.\30\
---------------------------------------------------------------------------
\30\ The Exchange notes that Nasdaq MRX also offers the Nasdaq
MRX Order Feed and Nasdaq MRX Trades Feed, which are included in the
Nasdaq MRX per User fees. See Nasdaq MRX Options Rules, Options 7,
Pricing Schedule, Section 7, Market Data.
---------------------------------------------------------------------------
The Nasdaq MRX Top of Market feed is an options feed that provides
Nasdaq MRX's best bid and offer and last sale information.\31\ The
Nasdaq MRX Top of Market feed is similar to the Exchange's ToM feed.
The Nasdaq MRX Depth of Market feed is an options feed that provides
full order and quote depth information for individual orders and quotes
and last sale information.\32\ The Nasdaq MRX Depth of Market feed is
similar to the Exchange's SLF feed. The Nasdaq MRX Spread feed is an
options feed that provides information for both simple and complex
orders.\33\ The Nasdaq MRX Spread feed is similar to the Exchange's
cToM data feed.
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\31\ See Nasdaq MRX Options Rules, Options 3, Section 23(a)(3).
\32\ See Nasdaq MRX Options Rules, Options 3, Section 23(a)(1).
\33\ See Nasdaq MRX Options Rules, Options 3, Section 23(a)(2).
---------------------------------------------------------------------------
Nasdaq MRX charges Professional Users $25.25 per month and Non-
Professional Users $1.00 per month for the Nasdaq MRX Top of Market
feed, the Nasdaq MRX Depth of Market Feed, and the Nasdaq MRX Spread
Feed.\34\ The Exchange proposes to charge less than Nasdaq MRX for
Professional Users and the same as Nasdaq MRX for Non-Professional
Users while also providing access to all of its market data fees for
single per User fee. Specifically, for the ToM, cToM, and SLF data
feeds, the Exchange proposes to charge Professional Users $20.00 per
month and Non-Professional Users $1.00 per month. The Exchange's
proposed Professional User fee is lower than Nasdaq MRX and its Non-
Professional User fee is equal to Nasdaq MRX. Despite having lower
market share than the Exchange, Nasdaq MRX charges higher or comparable
per User fees than the fees proposed by the Exchange herein.
---------------------------------------------------------------------------
\34\ See Price List--U.S. Derivatives Data, available at https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions.
---------------------------------------------------------------------------
Cboe BZX Options. Cboe BZX Options, with a market share of
approximately 4.21%, which is lower than the Exchange's market share,
charges higher Professional and Non-Professional User fees for its
depth of book feed than the fees proposed by the Exchange. Further,
Cboe BZX Options also charges separate per User fees per data product,
whereas the Exchange proposes to charge a single lower per User fee
that would provide access to all of its market data products for a
single fee.
The Cboe BZX Options Top feed is an options feed that provides top
of book quotations and execution information.\35\ The Cboe BZX Options
Top feed is similar to the Exchange's ToM feed. The Cboe BZX Options
Depth feed is an options feed that provides depth of book quotations
and execution information. The Cboe BZX Options Depth feed is similar
to the Exchange's SLF data feed.
---------------------------------------------------------------------------
\35\ For the Cboe BZX Options Top feed, Cboe BZX Option charges
Professional Users $5.00 per month and Non-Professional Users $0.10
per month. For ToM, cToM and SLF data feeds, the Exchange proposes
to charge Professional Users $20.00 per month and Non-Professional
Users $1.00 per month. Although higher, the Exchange's proposed
Professional and Non-Professional User fees are not necessarily
comparable to Cboe BZX Options Top fees because a User may receive
access to each of the Exchange's three data feeds for a single per
User fee and, unlike Cboe BZX Options, not be required to pay a
separate per User fee for each data product and Cboe BZX Options
only provides two data feeds that provide only Cboe BZX Options
data. Cboe BZX Options also offers the Cboe One Options Feed, which
provides information for not only Cboe BZX Options, but also its
three affiliated options markets, Cboe EDGX Options, Cboe, and Cboe
C2. See Cboe BZX Options Rule 21.15(b)(6).
---------------------------------------------------------------------------
Cboe BZX Options charges Professional Users $30.00 per month and
Non-Professional Users $1.00 per month for the Cboe BZX Options Depth
feed. The Exchange proposes to charge less than Cboe BZX Options and
provide access to all of its market data fees for single, and still
lower, per User fee. Specifically, for ToM, cToM, and SLF data feeds,
the Exchange proposes to charge Professional Users $20.00 per month and
Non-Professional Users $1.00 per month. The Exchange's proposed
Professional User fee is lower than Cboe BZX Options and its Non-
Professional User fee is equal to Cboe BZX Options. However, both of
the Exchange's proposed fees can be lower than Cboe BZX Options because
a User may receive access to each of the Exchange's data feeds for a
single per User fee and, unlike Cboe BZX Options, not be required to
pay a separate per User fee for each data product.\36\
---------------------------------------------------------------------------
\36\ Id.
---------------------------------------------------------------------------
Cboe C2. Cboe C2, with a market share of approximately 2.89% that
is lower than the Exchange, charges higher Professional and Non-
Professional User fees for its C2 Options Depth and C2 COB feed than
proposed by the Exchange. Unlike Cboe C2, the Exchange proposes to
charge a single per User fee that would provide access to all of its
market data products for a single fee.
The Cboe C2 Options Depth feed is an options feed that provides
depth of book quotations and execution information. The Cboe C2 Options
Depth feed is similar to the Exchange's SLF data feed. The Cboe C2 COB
feed is an options data feed that provides information for complex
strategies (multi-leg trades, such as spreads, straddles and buy-
writes).\37\ The Cboe C2 COB feed is
[[Page 22420]]
similar to the Exchange's cToM data feed.\38\ Cboe C2 charges all
Users, both Professional Users and Non-Professional Users, $25.00 per
month for the Cboe C2 COB feed and $50.00 for the Depth feed.\39\ The
Exchange proposes to charge less than Cboe C2 for Professional Users
and Non-Professional Users while also providing access to all of its
market data feeds for a single per User fee. Specifically, for the cToM
data feed, the Exchange proposes to charge Professional Users $20.00
per month and Non-Professional Users $1.00 per month. The Exchange's
proposed Professional User and Non-Professional User fees are lower
than the fees for the Cboe C2 COB feed. Despite having slightly higher
market share than the Exchange, Cboe C2 charges higher or comparable
per User fees than proposed by the Exchange herein.
---------------------------------------------------------------------------
\37\ See https://www.cboe.com/market_data_services/us/options/.
\38\ Cboe C2 also provides the Cboe C2 Top feed, which provides
top of book quotations and execution information. Cboe C2 Top is
similar to the Exchange's ToM feed. Cboe C2 charges Professional
Users $5.00 per month and Non-Professional Users $0.10 per month.
For ToM, cToM and SLF data feeds, the Exchange proposes to charge
Professional Users $20.00 per month and Non-Professional Users $1.00
per month. Although higher, the Exchange's proposed Professional and
Non-Professional User fees are not necessarily comparable to Cboe C2
Top fees because a User may receive access to each of the Exchange's
three data feeds for a single per User fee and, unlike Cboe C2, not
be required to pay a separate per User fee for each data product and
Cboe C2 also provides three data feeds that provide only Cboe C2
data. It is reasonable, however, to compare the Exchange's data
feeds to Cboe C2 data feeds with higher per User fees because they
charge the higher fee for a single data product whereas the Exchange
includes each of its data products for a single fee. Cboe C2 also
offers the Cboe One Options Feed, which provides information for not
only Cboe C2, but also its three affiliated options markets, Cboe
EDGX Options, Cboe, and Cboe BZX Options.
\39\ See Cboe C2 Fee Schedule, available at https://www.cboe.com/us/options/membership/fee_schedule/ctwo/.
---------------------------------------------------------------------------
* * * * *
Each of the above examples of other exchanges' market data fees
support the proposition that the Exchange's proposed User fees are
comparable to those of other exchanges and therefore reasonable.
Non-Display Usage Fee
The proposed Non-Display Usage fee for the Exchange's market data
products is comparable to those charged by Nasdaq Options and Nasdaq
MRX, as summarized in below table.
----------------------------------------------------------------------------------------------------------------
Market share Monthly non-display usage
Exchange [dagger] (%) Market data products fee
----------------------------------------------------------------------------------------------------------------
MIAX Sapphire........................... 3.23 All....................... $1,500.00 (per feed
(capped at $3,000.00).
Nasdaq Options.......................... 5.34 NOM BONO, NOM ITTO........ $10,530.00 (per exchange).
Nasdaq MRX.............................. 2.77 MRX Top, MRX Depth, MRX $7,575.00 (per exchange).
Spread.
----------------------------------------------------------------------------------------------------------------
[dagger] See supra note 24.
A more detailed discussion of the comparison follows.
Nasdaq Options. Nasdaq Options, with a market share of
approximately 5.34%, which is higher than the Exchange's market share,
charges higher Non-Display Usage fees for its top of book and depth of
book feeds than proposed by the Exchange. Further, Nasdaq Options also
charges the full Non-Display Usage fees to receive all of its data
products, whereas the Exchange proposes to cap the Non-Display Usage
fee at $3,000.00, which would provide a discount to subscribers that
choose to subscribe to multiple Exchange data feeds for Non-Display
Usage.\40\
---------------------------------------------------------------------------
\40\ The Exchange notes that not all options exchanges charge
non-display fees for options data. For example, Cboe, Cboe C2, Cboe
EDGX Options, Cboe BZX Options, BOX, and MEMX Options do not charge
non-display fees. Therefore, the Exchange compared its fees to two
comparable exchanges, Nasdaq Options and Nasdaq MRX, which charge
non-display fees.
---------------------------------------------------------------------------
As discussed above, the Nasdaq Options BONO feed is an options feed
that provides Nasdaq Options' best bid and offer and last sale
information.\41\ The Nasdaq Options BONO feed is similar to the
Exchange's ToM data feed. The Nasdaq Options ITTO feed is an options
feed that provides full order and quote depth information for
individual orders and quotes and last sale information.\42\ Nasdaq
Options ITTO also provides, among other things, product (option series)
available for trading on Nasdaq Options, the trading status of such
products (i.e., whether the series is available for closing
transactions only), and order imbalances on opening/reopenings. The
Nasdaq Options ITTO feed is similar to the Exchange's SLF data
feed.\43\
---------------------------------------------------------------------------
\41\ See Nasdaq Options Rules, Options 3, Section 23(a)(2).
\42\ See Nasdaq Options Rules, Options 3, Section 23(a)(1).
\43\ The Exchange proposes to cap the amount of Non-Display
Usage fees for those that subscribe to multiple Exchange data feeds.
---------------------------------------------------------------------------
Nasdaq Options charges a monthly fee of $10,530.00 for Non-Display
Usage of the Nasdaq Options BONO feed and Nasdaq Options ITTO feed.\44\
The Exchange proposes to charge less than Nasdaq Options while also
proposing to cap the Non-Display Usage fee at $3,000.00, which would
provide a discount to subscribers that choose to subscribe to multiple
Exchange data feeds for Non-Display Usage. Specifically, for the ToM,
cToM, and SLF data feeds, the Exchange proposes to charge a monthly fee
of $1,500.00 for Non-Display Usage and to cap the Non-Display Usage fee
at $3,000.00 for those that wish to receive two or more of the
Exchange's data feeds for Non-Display Usage. This cap would be in lieu
of paying the full Non-Display Usage Fee for each data product, which
would total $6,000.00 per month. Despite having incrementally lower
market share than the Exchange, Nasdaq Options charges higher Non-
Display Usage fees than the fees proposed by the Exchange herein.
---------------------------------------------------------------------------
\44\ See Price List--U.S. Derivatives Data, available at https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions. See also
Securities Exchange Act Release No. 73823 (December 11, 2014), 79 FR
75207 (December 17, 2014) (SR-NASDAQ-2014-119).
---------------------------------------------------------------------------
Nasdaq MRX. Nasdaq MRX, with a market share of approximately 2.77%,
which is lower than the Exchange's market share, charges higher Non-
Display Usage fees for its top of book, depth of book, and order feeds
than the fees proposed by the Exchange. Like the Exchange proposes
herein, Nasdaq MRX charges the full single Non-Display Usage fee for
access to all of its market data feeds. The Exchange proposes to cap
the Non-Display Usage fee at $3,000.00, which would provide a discount
to subscribers that choose to subscribe to multiple Exchange data feeds
for Non-Display Usage, similar to Nasdaq MRX.
The Nasdaq MRX Top of Market feed is an options feed that provides
Nasdaq MRX's best bid and offer and last sale information.\45\ The
Nasdaq MRX Top of Market feed is similar to the Exchange's ToM data
feed. The Nasdaq MRX Depth of Market feed is an options feed that
provides full order and quote depth information for individual orders
and
[[Page 22421]]
quotes and last sale information.\46\ The Nasdaq MRX Depth of Market
feed is similar to the Exchange's SLF feed. The Nasdaq MRX Spread feed
is an options feed that provides information for both simple and
complex orders.\47\ The Nasdaq MRX Spread feed is similar to the
Exchange's cToM data feed.
---------------------------------------------------------------------------
\45\ See Nasdaq MRX Options Rules, Options 3, Section 23(a)(3).
\46\ See Nasdaq MRX Options Rules, Options 3, Section 23(a)(1).
\47\ See Nasdaq MRX Options Rules, Options 3, Section 23(a)(2).
---------------------------------------------------------------------------
Nasdaq MRX charges a monthly fee of $7,575.00 for Non-Display Usage
of the Nasdaq MRX Top of Market feed, Nasdaq MRX Depth of Market feed,
and Nasdaq MRX Spread feed.\48\ The Exchange proposes to charge less
than Nasdaq MRX while also proposing to cap the Non-Display Usage fee
at $3,000.00, which would provide a discount to subscribers that choose
to subscribe to multiple Exchange data feeds for Non-Display Usage.
Specifically, for all of the Exchange's data feeds, the Exchange
proposes to charge a monthly fee of $1,500.00 and to cap the Non-
Display Usage fee at $3,000.00 for those that wish to receive two or
more of the Exchange's data feeds for Non-Display Usage. This cap would
be in lieu of paying the full Non-Display Usage Fee for each data
product, which would total $6,000.00 per month. Despite having lower
market share than the Exchange, Nasdaq MRX charges higher Non-Display
Usage fees than the fees proposed by the Exchange herein.
---------------------------------------------------------------------------
\48\ See Price List--U.S. Derivatives Data, available at https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions.
---------------------------------------------------------------------------
* * * * *
Each of the above examples of other exchanges' market data fees
support the proposition that the Exchange's proposed Non-Display Usage
fees lower than those of other exchanges and therefore reasonable.
The below table sets forth each exchanges' distributor fees for
each data feed that the Exchange includes in its above comparisons. The
below table also includes applicable per User and Non-Display Usage
fees that are discussed above.\49\
---------------------------------------------------------------------------
\49\ The Exchange notes that other exchanges offer an enterprise
license fee that provides access to an unlimited number of users for
a single price. This fee covers all of the applicable exchange's
market data feeds for a single enterprise license fee. The Exchange
does not propose to offer an enterprise license fee at this time
because customers have not requested it and, at this time, no
individual subscriber distributes Exchange market data to a
population of individual users that would necessitate purchasing an
enterprise license.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Market
share Internal External
Exchange [Dagger] Market data product distributors distributors Pro-user Non-pro user Non-display fee
(%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
MIAX Sapphire.............. 3.23 ToM................... $1,200.00 $2,000.00 $20.00 (per $1.00 (per $1,500.00 (per feed
cToM.................. 1,200.00 2,000.00 Exchange). Exchange). capped at
SLF................... 3,000.00 3,500.00 $3,000.00).
Nasdaq Options............. 5.34 NOM BONO.............. 1,566.00 2,089.00 $42.10 (per $1.00 (per ($10,530.00 (per
NOM ITTO.............. 1,566.00 2,089.00 exchange). exchange). exchange, no cap).
Nasdaq MRX................. 2.77 MRX Top............... 1,515.00 2,020.00 $25.25 (per $1.00 (per $7,575.00 (per
MRX Depth............. 1,515.00 2,020.00 exchange). exchange). exchange, no cap).
MRX Spread............ 1,010.00 1,515.00
Cboe BZX Options........... 4.21 BZX Depth............. 3,000.00 2,000.00 $30.00 (per feed).. $1.00 (per feed)... N/A.
Cboe C2.................... 2.89 C2 Complex............ 1,000.00 1,000.00 $25.00 (per feed).. $25.00 (per feed).. N/A.
C2 Depth.............. 2,500.00 2,500.00 $50.00 (per feed).. $50.00 (per feed).. N/A.
--------------------------------------------------------------------------------------------------------------------------------------------------------
[Dagger] See supra note 24.
As illustrated by the above table, while distributor fees may vary
across exchanges, and in some instances are higher on the Exchange, the
per User fees of other exchanges are generally higher than that
proposed by the Exchange and can quickly make up for any difference in
distributor fees due to an increased number of Users permissioned to
view other exchanges' data feeds when compared to the Users
permissioned to view data from the Exchange. In addition, Nasdaq
Options and Nasdaq MRX charge materially higher fees for Non-Display
Usage. Meanwhile, Cboe BZX Options and Cboe C2 would charge non-display
users their applicable distribution fee, which are not capped and are
either higher than, or comparable to, the fees proposed by the
Exchange. Furthermore, the Exchange proposes to only charge fees to
Internal and External Distributors for the ToM, cToM and SLF feeds,
which, when combined with the above proposed fees, result in fee
packages that are generally comparable to the fee packages charged by
Nasdaq Options, Nasdaq MRX, Cboe BZX Options, and Cboe C2 due to those
exchanges charging higher or similar User and Non-Display Usage fees,
as set forth above.
Lastly, the proposed discount to charge per User fees at the
Exchange level, and not per data feed, as well as capping the monthly
Non-Display Usage fee for use of multiple data feeds, is reasonable and
cause the Exchange's proposed fees to be even lower for subscribers to
multiple Exchange data products.
Pro-Rata Distribution of Fees. The Exchange believes its proposal
to remove the text that the Exchange will pro-rate mid-month changes to
subscriptions is reasonable because the Exchange's affiliates had no
mid-month subscriptions or terminations over the past twelve (12)
months that would have required the monthly fee to be pro-rated and no
other options exchanges provides for the similar pro-ration of market
data fees.\50\ Also, removing these provisions would harmonize the MIAX
Sapphire Fee Schedule with the MIAX Pearl Equities Fee Schedule, which
does not provide for pro-ration of market data fees.\51\
---------------------------------------------------------------------------
\50\ See Cboe BZX Fee Schedule, Market Data Fees section and
Cboe EDGX Options Fee Schedule, supra note 13. See also MEMX Options
Fee Schedule, Market Data Fees section and Securities Exchange Act
Release No. 101370 (October 17, 2024), 89 FR 84638 (October 23,
2024) (SR-MEMX-2024-40).
\51\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Definitions, and Securities Exchange Act Release No. 100319
(June 12, 2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25).
---------------------------------------------------------------------------
The Proposed Fees Are Equitably Allocated
Overall. The Exchange believes that its proposed fees are
reasonable, equitable, and not unfairly discriminatory because they are
designed to align fees with services provided. The Exchange believes
that the proposed fees for the market data feeds are allocated fairly
and equitably among the various categories of users of the data feeds,
and any differences among categories of users are justified and
appropriate.
The Exchange believes that the proposed fees are equitably
allocated because they will apply uniformly to all data recipients that
choose to subscribe to the market data feeds. Any market participant
that chooses to subscribe to the market data feeds is subject to the
same Fee Schedule, regardless of what type of business they operate,
and the decision to subscribe to one or more market data feeds is based
on objective differences in usage of market data feeds
[[Page 22422]]
among different Members, which are still ultimately in the control of
any particular Member. The Exchange believes the proposed pricing of
the market data feeds is equitably allocated because it is based, in
part, upon the amount of information contained in each data feed, which
may have additional value to market participants.
Pro-Rata Distribution of Fees. The Exchange believes its proposal
to remove the text that the Exchange will pro-rate mid-month changes to
subscriptions is equitably allocated because the Exchange's affiliates
had no subscriber utilize pro-ration via a mid-month subscription or
termination over the past twelve (12) months, nor does it foresee a
subscriber doing so in the near future. The Exchange believes it is
equitable to remove the text that the Exchange will pro-rate fees for
Distributors who subscribe mid-month because other options exchanges do
not provide for the similar pro-ration of market data fees.\52\ Also,
removing these provisions would harmonize the MIAX Sapphire Fee
Schedule with the MIAX Pearl Equities Fee Schedule, which does not
provide for pro-ration of market data fees.\53\
---------------------------------------------------------------------------
\52\ See Cboe BZX Options Fee Schedule, Market Data Fees section
and Cboe EDGX Options Fee Schedule, Market Data Fees section, supra
note 13. See also MEMX Options Fee Schedule, Market Data Fees
section and Securities Exchange Act Release No. 101370 (October 17,
2024), 89 FR 84638 (October 23, 2024) (SR-MEMX-2024-40).
\53\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Definitions, and Securities Exchange Act Release No. 100319
(June 12, 2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25).
---------------------------------------------------------------------------
User Fees. The Exchange believes that the proposed fee, fee levels,
and structure that differentiates between Professional User fees from
Non-Professional User fees for display use are equitable. This
structure has long been used by other exchanges and OPRA to reduce the
price of data to Non-Professional Users and make it more broadly
available.\54\ Offering the market data feeds to Non-Professional Users
at a lower cost than Professional Users results in greater equity among
data recipients, as Professional Users are categorized as such based on
their employment and participation in financial markets, and thus, are
compensated to participate in the markets. While Non-Professional Users
too can receive significant financial benefits through their
participation in the markets, the Exchange believes it is reasonable to
charge more to those Users who are more directly engaged in the
markets.
---------------------------------------------------------------------------
\54\ See, e.g., Securities Exchange Act Release No. 59544 (March
9, 2009), 74 FR 11162 (March 16, 2009) (SR-NYSE-2008-131)
(establishing the $15 Non-Professional User Fee (Per User) for NYSE
OpenBook); Securities Exchange Act Release No. 20002, File No. S7-
433 (July 22, 1983), 48 FR 34552 (July 29, 1983) (establishing Non-
Professional fees for CTA data); NASDAQ BX Equity 7 Pricing
Schedule, Section 123.
---------------------------------------------------------------------------
Non-Display Usage Fees. The Exchange believes the proposed Non-
Display Usage fees are equitably allocated because they would require
Distributors to pay fees only for the uses they actually make of the
data. As noted above, non-display data can be used by data recipients
for a wide variety of profit-generating purposes (including trading and
order routing) as well as purposes that do not directly generate
revenues (such as risk management and compliance) but nonetheless
substantially reduce the recipient's costs by automating certain
functions. The Exchange believes that it is equitable to charge non-
display data Distributors that use the market data feeds because all
such Distributors would have the ability to use such data for as many
non-display uses as they wish for one low fee. As noted above, this
structure is comparable to that in place for the exchanges referenced
above and several other exchanges charge multiple non-display fees to
the same client to the extent they use a data feed in several different
trading platforms or for several types of non-display use.\55\
---------------------------------------------------------------------------
\55\ See Cboe BZX Options Fee Schedule, available at https://www.cboe.com/us/options/membership/fee_schedule/bzx/ (providing fees
of $2,000.00 to $3,000.00 for Distribution, which includes Non-
Display use); Cboe C2 Fee Schedule, available at https://www.cboe.com/us/options/membership/fee_schedule/ctwo/ (providing a
fee $2,500.00 for Distribution, which includes Non-Display use);
Nasdaq Options Fee Schedule, available at, https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions (providing a
fee of $10,000.00 for Non-Display Use); and the NYSE American fee
schedule, available at https://www.nyse.com/publicdocs/nyse/data/NYSE_Market_Data_Pricing.pdf (providing a fee of $5,000.00 for Non-
Display Use).
---------------------------------------------------------------------------
* * * * *
For all of the foregoing reasons, the Exchange believes that the
proposed fees for the market data feeds are equitably allocated.
The Proposed Fees Are Not Unfairly Discriminatory
The Exchange believes the proposed fees are not unfairly
discriminatory because any differences in the application of the fees
are based on meaningful distinctions between customers, and those
meaningful distinctions are not unfairly discriminatory between
customers.
Overall. The Exchange believes that the proposed fees are not
unfairly discriminatory because they would apply to all data recipients
that choose to subscribe to the same market data feed(s). Any market
participant, including market data vendors, that chooses to subscribe
to the market data feeds is subject to the same Fee Schedule,
regardless of what type of business they operate. Market participants
seeking lower cost options may instead choose to receive data from OPRA
or another potentially lower cost option such as a market data vendor.
The Exchange notes that market participants can also choose to
subscribe to a combination of data feeds for redundancy purposes or to
use different feeds for different purposes. In sum, each market
participant has the ability to choose the best business solution for
itself. The Exchange does not believe it is unfairly discriminatory to
base pricing upon the amount of information contained in each data feed
and the importance of that information to market participants. As
described above, the ToM data feed can be utilized to trade on the
Exchange but contains less information than available on the SLF data
feed. Thus, the Exchange believes it is not unfairly discriminatory for
the products to be priced as proposed, with the same fees being
proposed for each data feed coupled with the discounts and caps
discussed above.
Pro-Rata Distribution of Fees. The Exchange believes that the
proposal to remove the text that the Exchange will pro-rate mid-month
changes to market data subscriptions is not unfairly discriminatory
because the Exchange's affiliates had no mid-month subscriptions or
terminations over the past twelve (12) months that would have required
the monthly fee to be pro-rated. The Exchange notes that other options
exchanges do not provide for the similar pro-ration of market data
fees.\56\ Also, removing these provisions would harmonize the MIAX
Sapphire Fee Schedule with the MIAX Pearl Equities Fee Schedule, which
does not provide for pro-ration.\57\
---------------------------------------------------------------------------
\56\ See Cboe BZX Options Fee Schedule, Market Data Fees section
and Cboe EDGX Options Fee Schedule, Market Data Fees section, supra
note 13. See also MEMX Options Fee Schedule, Market Data Fees
section and Securities Exchange Act Release No. 101370 (October 17,
2024), 89 FR 84638 (October 23, 2024) (SR-MEMX-2024-40).
\57\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Definitions and Securities Exchange Act Release No. 100319
(June 12, 2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25).
---------------------------------------------------------------------------
User Fees. The Exchange believes that the proposed fee, fee levels,
and structure that differentiates between Professional User fees from
Non-Professional User fees for display use are not unfairly
discriminatory. This structure has long been used by other exchanges
and OPRA to reduce the
[[Page 22423]]
price of data to Non-Professional Users and make it more broadly
available. Offering the market data feeds to Non-Professional Users
with the same data as is available to Professional Users, albeit at a
lower cost, results in greater equity among data recipients. These User
fees would be charged uniformly to all individuals that have access to
the market data feeds based on the category of User.
The Exchange also believes the proposed User fees are not unfairly
discriminatory, with higher fees for Professional Users than Non-
Professional Users, because Non-Professional Users may have less
ability to pay for such data than Professional Users as well as less
opportunity to profit from their usage of such data.
Non-Display Usage Fees. The Exchange believes that the proposed
Non-Display Usage fees are not unfairly discriminatory because they
would require Distributors for non-display use to pay fees depending on
their use of the data. As noted above, non-display data can be used by
data recipients for a wide variety of profit-generating purposes as
well as purposes that do not directly generate revenues but nonetheless
substantially reduce the recipient's costs by automating certain
functions.
* * * * *
For all of the foregoing reasons, the Exchange believes that the
proposed fees for the Exchange's market data feeds are not unfairly
discriminatory.
* * * * *
Remove Initial Waiver Period Rule Text
The Exchange believes its proposal to remove the rule text
regarding the Initial Waiver Period below the table of fees in Sections
6)a) and b) of the Fee Schedule is reasonable, equitable and not
unfairly discriminatory because the Initial Waiver Period automatically
expired at the end of February 2025. Upon the expiration of the Initial
Waiver Period, effective March 1, 2025, the market data fees in
Sections 6)a)-b) of the Fee Schedule began to apply to all market
participants equally who subscribe to the ToM, cToM, and/or SLF data
feeds. This proposed change will also remove impediments to and perfect
the mechanism of a free and open market because it will remove text
that no longer apples from the Fee Schedule, thereby providing clarity
to market participants regarding the Exchange's market data fees. It is
in the public interest for the Fee Schedule to be clear.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\58\ the Exchange
does not believe that the proposed rule change would impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of the Act.
---------------------------------------------------------------------------
\58\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
Intra-Market Competition
The Exchange does not believe that the proposed fees place certain
market participants at a relative disadvantage to other market
participants because, as noted above, the proposed fees are associated
with usage of the data feed by each market participant, which are still
ultimately in the control of any particular Member, and such fees do
not impose a barrier to entry to smaller participants. Accordingly, the
proposed fees do not favor certain categories of market participants in
a manner that would impose a burden on competition; rather, the
allocation of the proposed fees reflects the types of data consumed by
various market participants and their usage thereof. The Exchange also
believes that the proposed fees neither favor nor penalize one or more
categories of market participants in a manner that would impose an
undue burden on competition.
The Exchange believes its proposal to no longer pro-rate mid-month
changes to market data subscriptions does not place an undue burden on
intra-market competition because all market participants will be
subject to the same Fee Schedule, regardless of which point in the
month they subscribe. As noted above, the Exchange's affiliates had no
mid-month subscriptions or terminations over the past twelve (12)
months that would have required the monthly fee to be pro-rated. The
Exchange notes that other options exchanges do not provide for the
similar pro-ration of market data fees.\59\ Also, removing these
provisions would harmonize the MIAX Sapphire Fee Schedule with the MIAX
Pearl Equities Fee Schedule, which does not provide for pro-ration.\60\
---------------------------------------------------------------------------
\59\ See Cboe BZX Options Fee Schedule, Market Data Fees section
and Cboe EDGX Options Fee Schedule, Market Data Fees section. See
also MEMX Options Fee Schedule, Market Data Fees section and
Securities Exchange Act Release No. 101370 (October 17, 2024), 89 FR
84638 (October 23, 2024) (SR-MEMX-2024-40).
\60\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Definitions and Securities Exchange Act Release No. 100319
(June 12, 2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25).
---------------------------------------------------------------------------
Inter-Market Competition
The Exchange does not believe the proposed fees place an undue
burden on competition on other SROs that is not necessary or
appropriate. In particular, market participants are not forced to
subscribe to either data feed, as described above. An exchange that
overprices its market data products stands a high risk that users may
purchase another market's market data product. These competitive
pressures ensure that no one exchange's market data fees can impose an
unnecessary burden on competition, and the Exchange's proposed fees do
not do so here. Additionally, other exchanges have similar market data
fees with comparable rates in place for their participants. Other
options exchanges are free to adopt comparable fee structures subject
to the Commission's rule filing process.
The Exchange believes its proposal to remove the rule text
regarding the Initial Waiver Period below the table of fees in Sections
6)a) and b) of the Fee Schedule will not impose any burden on
competition because the Initial Waiver Period automatically expired at
the end of February 2025. Upon the expiration of the Initial Waiver
Period, effective March 1, 2025, the market data fees in Sections 6)a)-
b) of the Fee Schedule began to apply to all market participants
equally who subscribe to the ToM, cToM, and/or SLF data feeds. This
proposed change is not competitive; rather it is to remove text that no
longer apples from the Fee Schedule, thereby providing clarity to
market participants regarding the Exchange's market data fees.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor 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,\61\ and Rule 19b-4(f)(2) \62\ 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 shall institute proceedings to determine
[[Page 22424]]
whether the proposed rule should be approved or disapproved.
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\61\ 15 U.S.C. 78s(b)(3)(A)(ii).
\62\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-SAPPHIRE-2025-23 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-SAPPHIRE-2025-23. 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-SAPPHIRE-2025-23 and should
be submitted on or before June 17, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\63\
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\63\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-09409 Filed 5-23-25; 8:45 am]
BILLING CODE 8011-01-P
