3462 Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Notices 

19 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed fee 

changes on January 2, 2024 (SR–CboeEDGX–2024– 

003). On January 10, 2024, the Exchange withdrew 

that filing and submitted SR–CboeEDGX–2024–008. 

4See Exchange Fee Schedule. Daily end-of-day 

delivery is provided via the DataShop SFTP. Files 

will typically become available after 8pm ET; see 

also Exchange Rule 1.5, which defines ‘‘System.’’ 

5See https://datashop.cboe.com/cboe-us-optionsmulticast-pitch. 

6See, e.g., https://www.nasdaqtrader.com/ 

Trader.aspx?id=DPPriceListOptions#nom; and 

https://www.nyse.com/publicdocs/nyse/data/ 

NYSE_Market_Data_Fee_Schedule.pdf. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

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–C2–2024–001 and should be 

submitted on or before February 8, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–00847 Filed 1–17–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Release No. 34–99328; File No. SR– 

CboeEDGX–2024–008] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule To Add Historical Depth 

Data Fee 

January 11, 2024. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on January 

10, 2024, Cboe EDGX Exchange, Inc. 

(the ‘‘Exchange’’ or ‘‘EDGX’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) proposes to 

amend its Fee Schedule. The text of the 

proposed rule change is provided in 

Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

options/regulation/rule_filings/edgx/), 

at the Exchange’s Office of the 

Secretary, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Fee Schedule.3 By way of background, 

the Exchange currently makes available 

for purchase Depth Data, which is a 

daily archive of the Exchange’s depth of 

book real-time feed, which provides 

depth-of-book quotations and execution 

information based on options orders 

entered into the System.4 The Exchange 

also offers Historical Depth Data, for no 

charge, which offers such data on a 

historical basis, i.e. T+1 or later, dating 

back to October 2019. The Depth Data 

and Historical Depth Data are available 

to Members and Non-Members on the 

Cboe LiveVol, LLC (‘‘LiveVol’’) 

website,5 for internal use only; LiveVol 

is a wholly owned subsidiary of the 

Exchange’s parent company, Cboe 

Global Markets, Inc. 

The Exchange’s equities platform 

(‘‘EDGX Equities’’) and affiliated 

equities and options exchanges (i.e., 

Cboe Exchange, Inc. (‘‘Cboe Options’’), 

Cboe C2 Exchange, Inc. (‘‘C2 Options’’), 

Cboe BYX Exchange, Inc. (‘‘BYX’’), Cboe 

BZX Exchange, Inc. (‘‘BZX’’), and Cboe 

EDGA Exchange, Inc. (‘‘EDGA’’) 

(collectively, ‘‘Affiliates’’) also offer 

similar data products. Particularly, each 

of the Exchange’s Affiliates offer a daily 

and historical archive of their depth of 

book real-time feed with execution 

information based on their trading 

activity that is substantially similar to 

the information provided by the 

Exchange through its Depth Data 

products. 

Currently, the Exchange provides 

Historical Depth Data to users without 

a charge. Since the Exchange first began 

offering access to historical quotation 

and transactions data, the Exchange has 

made a number of significant 

enhancements to its platform, including, 

among other things, implementing a 

more efficient means of data delivery 

(via SFTP rather than shipment of hard 

drives), which consequently increases 

the value of the market data product. 

The Exchange now proposes to amend 

its Fee Schedule and assess a fee of $500 

per month of Historical Depth Data 

accessed by a user. As is currently the 

case, the data will be provided to data 

recipients for internal use only, and 

thus, no redistribution will be 

permitted. 

The Exchange notes that the Depth 

Data products, including the Historical 

Depth Data, are completely voluntary 

products, in that the Exchange is not 

required by any rule or regulation to 

make the reports or services available 

and that potential subscribers may 

purchase it only if they voluntarily 

choose to do so. Further, the Exchange 

notes that other exchanges offer similar 

products for a fee.6

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.7 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 8 requirements that the rules of 

an exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 


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Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Notices 3463 

9 Id. 

10 15 U.S.C. 78f(b)(4). 

11See Cboe Global Markets U.S. Options Market 

Volume Summary (December 18, 2023), available at 

https://markets.cboe.com/us/options/market_

statistics/. 

12See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(‘‘Regulation NMS Adopting Release’’). 13See supra note 5. 14See supra note 5. 

the Section 6(b)(5) 9 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange also believes the 

proposed rule change is consistent with 

Section 6(b)(4) of the Act,10 which 

requires that Exchange rules provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

Members and other persons using its 

facilities. 

The Exchange believes the proposed 

change to adopt a fee for Historical 

Depth Data is reasonable. In adopting 

Regulation NMS, the Commission 

granted self-regulatory organizations 

(‘‘SROs’’) and broker-dealers increased 

authority and flexibility to offer new 

and unique market data to the public. It 

was believed that this authority would 

expand the amount of data available to 

consumers, and also spur innovation 

and competition for the provision of 

market data. 

The Exchange also operates in a 

highly competitive environment. 

Indeed, there are currently 17 registered 

options exchanges that trade options. 

Based on publicly available information, 

no single options exchange has more 

than 12% of the market share.11 The 

Commission has repeatedly expressed 

its preference for competition over 

regulatory intervention in determining 

prices, products, and services in the 

securities markets. Particularly, in 

Regulation NMS, the Commission 

highlighted the importance of market 

forces in determining prices and SRO 

revenues and, also, recognized that 

current regulation of the market system 

‘‘has been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 12

Making similar data products available 

to market participants fosters 

competition in the marketplace, and 

constrains the ability of exchanges to 

charge supracompetitive fees. In the 

event that a market participant views 

one exchange’s data product as more or 

less attractive than the competition they 

can and do switch between similar 

products. The Exchange believes the 

proposed change will continue to 

broaden the availability of U.S. option 

market data to investors consistent with 

the principles of Regulation NMS. 

Additionally, the Exchange believes 

the proposed changes to the Historical 

Depth Data fee are reasonable, as the 

Exchange’s Historical Depth Data is a 

competitively priced alternative to 

historical depth of book data 

disseminated by other national 

securities exchanges. The Exchange’s 

Depth Data products, including 

Historical Depth Data, benefits a wide 

range of investors that participate in the 

national market system. As noted above, 

Nasdaq and NYSE have similar Depth 

Data offerings for a charge.13 The 

Exchange therefore believes that the 

proposed fees are reasonable and set at 

a level to compete with other exchanges 

that offer similar reports. Indeed, 

proposing fees that are excessively 

higher than established fees for similar 

data products would simply serve to 

reduce demand for the Exchange’s data 

product, which as noted, is entirely 

optional. As such, if a market 

participant views another exchange’s 

potential report as more attractive, then 

such market participant can merely 

choose not to purchase the Exchange’s 

Historical Depth Data offering and 

instead purchase another exchange’s 

similar data product, which offers 

similar data points, albeit based on 

other market’s trading activity. Further, 

the Exchange believes the fees are 

reasonable since, as proposed, they 

represent a relatively modest fee for 

historical depth of book data that has 

proven valuable for investors. 

The Exchange also believes that the 

proposed fee is reasonable because it is 

reasonably aligned with the value and 

benefits provided to users that choose to 

purchase Historical Depth Data from the 

Exchange. As discussed above, 

Historical Depth Data may be beneficial 

to Members and non-Members as it may 

provide helpful trading information 

regarding investor sentiment that may 

allow market participants to make more 

informed trading decisions and may be 

used to create and test trading models 

and analytical strategies and provide 

comprehensive insight into trading on 

the Exchange. As noted above, since 

first offering Historical Depth Data, the 

Exchange has made a number of 

significant enhancements to its 

platform, including, among other things, 

implementing a more efficient means of 

data delivery (via SFTP rather than 

shipment of hard drives), which 

consequently increases the value of the 

market data product. 

Finally, the Exchange believes that 

the proposed change to the Exchange’s 

Historical Depth Data offerings is 

equitable and not unfairly 

discriminatory because the change to 

the offering applies to all current and 

potential subscribers of the products 

uniformly, in that all subscribers will be 

assessed the new proposed fee for 

purchases of Historical Depth Data. As 

stated, purchase of Historical Depth 

Data is completely optional and not 

necessary for trading. Rather, the 

Exchange voluntarily makes Historical 

Depth Data available, and users may 

choose to purchase the data based on 

their own individual business needs. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. As discussed 

above, the Exchange’s Historical Depth 

Data offering is subject to direct 

competition from several other 

exchanges that offer similar data 

products. The proposed rule changes are 

grounded in the Exchange’s efforts to 

compete more effectively. In this 

competitive environment, potential 

purchasers are free to choose which, if 

any, similar product to purchase to 

satisfy their need for market 

information. As a result, the Exchange 

believes the proposed rule changes 

permit fair competition among national 

securities exchanges. 

Additionally, the Exchange believes 

the proposed rule change does not 

impose any burden on intramarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. The change to the 

Historical Depth Data offering applies to 

all current and potential subscribers of 

the product uniformly, in that all 

subscribers will be assessed the same 

fee for subscribing to receive Historical 

Depth Data. Moreover, purchase of 

Historical Depth Data is optional. 

Further, the Exchange also does not 

believe that the proposed rule changes 

will impose any burden on intermarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. As noted above, 

other exchanges offer similar data 

products, which are similarly priced.14

As previously discussed, the Exchange 

operates in a highly competitive market. 

Members have numerous alternative 

venues that they may participate on and 

direct their order flow, including 16 

other options exchanges and offexchange venues. Additionally, the 

Exchange represents a small percentage 


khammond on DSKJM1Z7X2PROD with NOTICES
3464 Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Notices 

15See supra note 10. 

16See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005). 

17NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. 

Cir. 2010) (quoting Securities Exchange Act Release 

No. 59039 (December 2, 2008), 73 FR 74770, 74782– 

83 (December 9, 2008) (SR–NYSEArca-2006–21)). 

18 15 U.S.C. 78s(b)(3)(A). 

19 17 CFR 240.19b–4(f). 

20 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

of the overall market. Based on publicly 

available information, no single options 

exchange has more than 12% of the 

market share.15 Therefore, no exchange 

possesses significant pricing power in 

the execution of option order flow. 

Indeed, participants can readily choose 

to send their orders to other exchange 

and off-exchange venues if they deem 

fee levels at those other venues to be 

more favorable. Moreover, the 

Commission has repeatedly expressed 

its preference for competition over 

regulatory intervention in determining 

prices, products, and services in the 

securities markets. Specifically, in 

Regulation NMS, the Commission 

highlighted the importance of market 

forces in determining prices and SRO 

revenues and, also, recognized that 

current regulation of the market system 

‘‘has been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 16 The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, the D.C. Circuit 

stated as follows: ‘‘[n]o one disputes 

that competition for order flow is 

‘fierce.’ . . . As the SEC explained, ‘[i]n 

the U.S. national market system, buyers 

and sellers of securities, and the brokerdealers that act as their order-routing 

agents, have a wide range of choices of 

where to route orders for execution’; 

[and] ‘no exchange can afford to take its 

market share percentages for granted’ 

because ‘no exchange possesses a 

monopoly, regulatory or otherwise, in 

the execution of order flow from broker 

dealers’. . . .’’.17 Accordingly, the 

Exchange does not believe its proposed 

fee change imposes any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 18 and paragraph (f) of Rule 

19b–4 19 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

CboeEDGX–2024–008 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–CboeEDGX–2024–008. 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–CboeEDGX–2024–008 and should be 

submitted on or before February 8, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–00850 Filed 1–17–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99323; File No. SR–NYSE– 

2024–02] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Its 

Price List 

January 11, 2024. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on January 2, 

2024, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Price List to (1) extend a fee waiver for 

new firm application fees for applicants 

seeking only to obtain a bond trading 

license (‘‘BTL’’) for 2024; and (2) waive 

the BTL fee for 2024. The Exchange 

proposes to implement the fee changes 

effective January 2, 2024. The proposed 

rule change is available on the 

Exchange’s website at www.nyse.com, at 

the principal office of the Exchange, and 


khammond on DSKJM1Z7X2PROD with NOTICES