76162 Federal Register / Vol. 89, No. 180 / Tuesday, September 17, 2024 / Notices 

1See Docket No. RM2018–3, Order Adopting 

Final Rules Relating to Non-Public Information, 

June 27, 2018, Attachment A at 19–22 (Order No. 

4679). 

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

2 17 CFR 240.19b–4. 

I. Introduction 

The Commission gives notice that the 

Postal Service filed request(s) for the 

Commission to consider matters related 

to negotiated service agreement(s). The 

request(s) may propose the addition or 

removal of a negotiated service 

agreement from the Market Dominant or 

the Competitive product list, or the 

modification of an existing product 

currently appearing on the Market 

Dominant or the Competitive product 

list. 

Section II identifies the docket 

number(s) associated with each Postal 

Service request, the title of each Postal 

Service request, the request’s acceptance 

date, and the authority cited by the 

Postal Service for each request. For each 

request, the Commission appoints an 

officer of the Commission to represent 

the interests of the general public in the 

proceeding, pursuant to 39 U.S.C. 505 

(Public Representative). Section II also 

establishes comment deadline(s) 

pertaining to each request. 

The public portions of the Postal 

Service’s request(s) can be accessed via 

the Commission’s website (http://

www.prc.gov). Non-public portions of 

the Postal Service’s request(s), if any, 

can be accessed through compliance 

with the requirements of 39 CFR 

3011.301.1

The Commission invites comments on 

whether the Postal Service’s request(s) 

in the captioned docket(s) are consistent 

with the policies of title 39. For 

request(s) that the Postal Service states 

concern Market Dominant product(s), 

applicable statutory and regulatory 

requirements include 39 U.S.C. 3622, 39 

U.S.C. 3642, 39 CFR part 3030, and 39 

CFR part 3040, subpart B. For request(s) 

that the Postal Service states concern 

Competitive product(s), applicable 

statutory and regulatory requirements 

include 39 U.S.C. 3632, 39 U.S.C. 3633, 

39 U.S.C. 3642, 39 CFR part 3035, and 

39 CFR part 3040, subpart B. Comment 

deadline(s) for each request appear in 

section II. 

II. Docketed Proceeding(s) 

1. Docket No(s).: MC2024–656 and 

CP2024–665; Filing Title: USPS Request 

to Add Priority Mail Express 

International, Priority Mail International 

& First-Class Package International 

Service Contract 46 to Competitive 

Product List and Notice of Filing 

Materials Under Seal; Filing Acceptance 

Date: September 11, 2024; Filing 

Authority: 39 U.S.C. 3642, 39 CFR 

3040.130 through 3040.135, and 39 CFR 

3035.105; Public Representative: Katalin 

K. Clendenin; Comments Due: 

September 19, 2024. 

This Notice will be published in the 

Federal Register. 

Erica A. Barker, 

Secretary. 

[FR Doc. 2024–21108 Filed 9–16–24; 8:45 am] 

BILLING CODE 7710–FW–P 

POSTAL SERVICE 

International Product Change—Priority 

Mail Express International, Priority Mail 

International & First-Class Package 

International Service Agreement 

AGENCY: Postal ServiceTM. 

ACTION: Notice. 

SUMMARY: The Postal Service gives 

notice of filing a request with the Postal 

Regulatory Commission to add a Priority 

Mail Express International, Priority Mail 

International & First-Class Package 

International Service contract to the list 

of Negotiated Service Agreements in the 

Competitive Product List in the Mail 

Classification Schedule. 

DATES: Date of notice: September 17, 

2024. 

FOR FURTHER INFORMATION CONTACT: 

Christopher C. Meyerson, (202) 268– 

7820. 

SUPPLEMENTARY INFORMATION: The 

United States Postal Service® hereby 

gives notice that, pursuant to 39 U.S.C. 

3642 and 3632(b)(3), on September 11, 

2024, it filed with the Postal Regulatory 

Commission a USPS Request to Add 

Priority Mail Express International, 

Priority Mail International & First-Class 

Package International Service Contract 

46 to Competitive Product List. 

Documents are available at 

www.prc.gov, Docket Nos. MC2024–656 

and CP2024–665. 

Colleen Hibbert-Kapler, 

Attorney, Ethics and Legal Compliance. 

[FR Doc. 2024–21118 Filed 9–16–24; 8:45 am] 

BILLING CODE 7710–12–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–100995; File No. SR–MRX– 

2024–35] 

Self-Regulatory Organizations; Nasdaq 

MRX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Initiate Distributor 

Fees for MRX Options Trade Outline 

September 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 

September 3, 2024, Nasdaq MRX, LLC 

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

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘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 

The Exchange proposes to initiate 

Distributor fees for MRX Options Trade 

Outline. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/mrx/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to initiate fees for the 

distribution of MRX Trade Outline. 

Distributor fees will be $750 per month 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 180 / Tuesday, September 17, 2024 / Notices 76163 

3A ‘‘Current Distributor’’ is any firm that 

purchases either the End of Day Product for the 

current month, or the Intra-Day Product for the 

current month in the same month that the 36 

months of historical End of Day or Intra-Day data 

is ordered. 

4The most recent 36 months is measured based 

on the date of purchase of the 36 months of data 

by a Current Distributor. 

5Every options series trades as a distinct symbol; 

the terms ‘‘series’’ and ‘‘symbol’’ are therefore 

synonyms. 

6See Securities Exchange Act Release No. 100789 

(August 21, 2024), 89 FR 68680 (August 27, 2024) 

(SR–MRX–2024–31). 

7This includes the aggregate number of ‘‘opening 

purchase transactions,’’ defined as an Exchange 

Transaction that will create or increase a long 

position in an options contract, see Options 1, 

Section 1(a)(27), and the aggregate number of 

‘‘opening writing transactions,’’ defined as an 

Exchange Transaction that will create or increase a 

short position in an options contract. See Options 

1, Section 1(a)(28). 

8The term ‘‘Priority Customer’’ means a person 

or entity that (i) is not a broker or dealer in 

securities, and (ii) does not place more than 390 

orders in listed options per day on average during 

a calendar month for its own beneficial account(s). 

See Options 1 § 1(a)(36). 

9A ‘‘Broker-Dealer’’ order is an order submitted 

by a Member for a broker-dealer account that is not 

its own proprietary account. See Options 7 § 1(c). 

10The term ‘‘Market Makers’’ refers to 

‘‘Competitive Market Makers’’ and ‘‘Primary Market 

Makers’’ collectively. See Options 1 § 1(a)(21). The 

term ‘‘Competitive Market Maker’’ means a Member 

that is approved to exercise trading privileges 

associated with CMM Rights. See Options 1 

§ 1(a)(12). The term ‘‘Primary Market Maker’’ means 

a Member that is approved to exercise trading 

privileges associated with PMM Rights. See Options 

1 § 1(a)(35). 

11A ‘‘Firm Proprietary’’ order is an order 

submitted by a Member for its own proprietary 

account. See Options 7 § 1(c). 12A ‘‘Professional Customer’’ is a person or entity 

that is not a broker/dealer and is not a Priority 

Customer. See Options 7 § 1(c). 13This includes the aggregate number of ‘‘closing 

purchase transactions’’ in the affected series, 

defined as an Exchange Transaction that will 

reduce or eliminate a short position in an options 

contract, see Options 1, Section 1(a)(9), and the 

aggregate number of ‘‘closing writing transactions,’’ 

defined as an Exchange Transaction that will 

reduce or eliminate a long position in an options 

contract. See Options 1, Section 1(a)(10). 

14These are the same types of information 

available on PHOTO, and the other trade outline 

products offered by Nasdaq exchanges. 15The additional fields are: First Trade Price, 

High Trade Price, Low Trade Price, Last Trade 

Price, Underlying Close, Moneyness, Total 

Exchange volume, Total Industry Volume for the 

Series, and Open Interest. 16Subscribers will receive the first snapshot at 

9:42 a.m. ET, representing data captured from 9:30 

a.m. to 9:40 a.m., and the second calculation at 9:52 

a.m., representing data from both the most recent 

snapshot and previous snapshots, and continuing 

over the course of the trading day. The final IntraDay snapshot will be distributed at 4:15 p.m. 

17See Infra, notes 21 through 23. 

18Market participants generally use historical 

files for model testing and research, and the period 

of time required by a particular market participant 

will depend on its unique testing and research 

needs as well as whether it is using End of Day or 

Intra-Day information. Some customers, for 

example, may request years of data, while others 

only months, or even a single month. The same 

principle applies to End of Day vs. Intra-Day 

information. 

19See PHLX Rules, Options 7, Section 10; 

Securities Exchange Act Release No. 62887 

(September 10, 2010), 75 FR 57092 (September 17, 

2010) (SR–Phlx–2010–121) (introducing PHOTO on 

September 1, 2010). 

20The underlying information for MRX Options 

Trade Outline will be the same as the other trade 

outline products offered by the Nasdaq exchanges. 

Presentation will differ, however, in that data will 

not be subdivided into categories. For example, the 

trade outline products offered by PHLX, ISE, GEMX 

and NOM subdivide the aggregate volume traded 

for each reported series into categories according to 

the quantity of contracts (less than 100, 100–199, 

and greater than 200). MRX Options Trade Outline 

will not separate this information into quantitative 

categories, but rather will provide the same 

aggregate volume information as PHOTO and the 

other Nasdaq exchanges without separating the 

information into categories according to the 

quantity of contracts. 

21See Nasdaq ISE Rules, Options 7, Section 10(A) 

and (B) (Nasdaq ISE Open/Close Trade Profile End 

of Day; Nasdaq ISE Open/Close Trade Profile 

Intraday). 

22See Nasdaq GEMX Rules, Options 7, Sections 

7(D) (Nasdaq GEMX Open/Close End of Day Trade 

Profile) and 7(E) (Nasdaq GEMX Open/Close 

Intraday Trade Profile). 

23See Nasdaq Rules, Options 7, Section 4 (Nasdaq 

Options Trade Outline (‘‘NOTO’’)). 

for the End of Day product, and $1,500 

per month for the Intra-Day product. 

Historical data will be available 

through ad hoc requests for information 

for $500 per month of End of Day 

information, and $750 per month for 

historical information. Current 

Distributors 3 will also be able to 

purchase the most recent 36 months of 

historical data 4 at the discounted price 

of $6,000 for End of Day information, 

and $9,000 for Intra-Day information. 

Historical information will be available 

starting in September 2017. 

MRX Options Trade Outline 

MRX Options Trade Outline will 

provide aggregate quantity and volume 

information for trades on the Exchange 

for all series 5 during a trading session.6

Information is provided in the following 

categories: (i) total exchange volume for 

Intra-Day information and total 

exchange and industry volume for End 

of Day information for each reported 

series; (ii) open interest for the series; 

(iii) aggregate quantity of trades and 

aggregate trade volume effected to open 

a position,7 characterized by origin type 

(Priority Customers,8 Broker-Dealers,9

Market Makers,10 Firm Proprietary,11

and Professional Customers 12); and (iv) 

aggregate quantity of trades and 

aggregate trade volume effected to close 

a position,13 characterized by origin 

type (Priority Customers, BrokerDealers, Market Makers, Firm 

Proprietary, and Professional 

Customers).14

Information will be provided on an 

End of Day, Intra-Day, and historical 

basis. 

End of Day Information 

The MRX Trade Outline End of Day 

file will also provide opening buy, 

closing buy, opening sell and closing 

sell information, including option first 

trade price, option high trade price, 

option low trade price, and option last 

trade price. 

The End of Day file will be updated 

during an overnight process with 

additional fields 15 and will be available 

the following morning, providing 

aggregate data for the entire trading 

session. 

Intra-Day Information 

Intra-Day information will be released 

in scheduled ‘‘snapshots’’ available 

every 10 minutes for all options series 

over the course of the trading day. These 

snapshots will be updated to reflect 

whatever activity occurred, or to 

indicate that no activity occurred.16

This is the same schedule currently 

offered on PHLX, ISE, GEMX, and 

Nasdaq Options Market.17

Historical Information 

Historical data will be available 

through ad hoc requests for information 

in both End of Day and Intra-Day 

formats for all option series traded for 

every calendar month after September 

2017, based on specific request.18

Historical data is useful in analyzing 

option trade and volume data, 

evaluating historical trends in the 

trading activity of a particular option 

series, and creating and testing trading 

models and analytical strategies. In 

Nasdaq’s experience, historical 

information is often purchased 

concurrently with a new subscription to 

a trade outline product. 

Patterned after PHLX Options Trade 

Outline ‘‘PHOTO,’’ 19 MRX Options 

Trade Outline will replicate in 

substance 20 PHOTO and the other trade 

outline products currently offered by 

Nasdaq ISE, LLC (‘‘ISE’’),21 Nasdaq 

GEMX, LLC (‘‘GEMX’’),22 and the 

options market operated by the Nasdaq 

Stock Market LLC (‘‘Nasdaq Options 

Market’’ or ‘‘NOM’’).23 Similar products 

are also available from options markets 

not affiliated with Nasdaq such as Cboe 


ddrumheller on DSK120RN23PROD with NOTICES1
76164 Federal Register / Vol. 89, No. 180 / Tuesday, September 17, 2024 / Notices 

24See, e.g., Securities Exchange Act Release No. 

94913 (May 13, 2022), 87 FR 30534 (May 19, 2022) 

(SR–Cboe–2022–023) (describing End of Day and 

Intra-Day Open-Close Data as a summary of trading 

activity on the exchange at the option level by 

origin, side of the market, price, and transaction 

type). 

25See, e.g., Securities Exchange Act Release No. 

93803 (December 16, 2021, 86 FR 72647 (December 

22, 2021) (SR–NYSEAMER–2021–46) (describing 

the NYSE Options Open-Close Volume Summary as 

a volume summary of trading activity on the 

exchange at the option level by origin, side of the 

market, contract volume and transaction type). 

26See, e.g., Securities Exchange Act Release No. 

93132 (September 27, 2021), 86 FR 54499 (October 

1, 2021) (SR–NYSEArca–2021–82) (describing the 

NYSE Options Open-Close Volume Summary as a 

volume summary of trading activity on the 

exchange at the option level by origin, side of the 

market, contract volume and transaction type). 

27See, e.g., Securities Exchange Act Release No. 

97174 (March 21, 2023), 88 FR 18201 (March 27, 

2023) (SR–BOX–2023–09) (describing the BOX 

exchange Open-Close Data report as providing 

volume by origin, buying/selling, and opening/ 

closing criteria). 

28See, e.g., Securities Exchange Act Release No. 

91964 (May 21, 2021), 86 FR 28667 (May 27, 2021) 

(SR–PEARL–2021–24) (introducing the Open-Close 

Report). 

29The End of Day report includes a field that 

presents Total Industry Volume for the Series. 

30The most recent 36 months is measured based 

on the date of purchase of the 36 months of data 

by a Current Distributor. 

31A ‘‘Current Distributor’’ is any firm that 

purchases either the End of Day Product for the 

current month, or the Intra-Day Product for the 

current month in the same month that the 36 

months of historical End of Day or Intra-Day data 

is ordered. 

32A customer may use the proposed historical 

data discount more than once. For example, a 

Current Distributor that purchases 36 months of 

historical data at a discount, but later terminates 

that subscription, would be eligible to purchase 

another 36 months of historical data (based on the 

date of purchase) upon renewing that subscription. 

(Current Distributors that never terminate would 

have no need for a second purchase, as they would 

already possess the most recent months of historical 

data.). 

33 15 U.S.C. 78f(b). 

34 15 U.S.C. 78f(b)(4) and (5). 

35See Securities Exchange Act Release No. 62887 

(September 10, 2010), 75 FR 57092 (September 17, 

Options Exchange (‘‘Cboe’’),24 NYSE 

American Options (‘‘NYSE 

American’’),25 NYSE Arca Options 

(‘‘NYSE Arca’’),26 BOX Options Market 

LLC (‘‘BOX’’),27 MIAX Pearl Options 

Exchange (‘‘Pearl’’),28 and others. MRX 

Options Trade Outline, like all of these 

other trade outline products, provides 

data to help market participants 

understand market sentiment on the 

Exchange and to support the creation of 

trading models useful in both options 

and equities markets. 

Nasdaq’s experience is that 

investment banks, market makers, asset 

managers and other buy-side investors 

purchase trade outline products. In 

general, the relative value of these 

products depends on the volume of 

transactions included; the greater the 

volume of transactions, the greater the 

value of the data. 

MRX Options Trade Outline will 

provide proprietary Exchange trading 

data and will not include any intra-day 

trading data from any other exchange.29

The information provided, both in End 

of Day and Intra-Day formats, will not 

be a real-time data feed. 

Proposed Fees 

End of Day and Intra-Day Information 

The Exchange proposes to offer the 

End of Day product for $750 per month 

and the Intra-Day product at $1,500 per 

month. 

Historical Information 

The Exchange proposes to offer 

historical data for $500 per month for 

End of Day data, and $750 per month for 

Intra-Day information based on ad hoc 

requests for particular months of 

information. 

The Exchange also proposes to offer a 

discounted fee of $9,000 in total for the 

most recent 36 months 30 of historical 

Intra-Day data for Current 

Distributors,31 and a discounted fee of 

$6,000 in total for the most recent 36 

months of End of Day data for Current 

Distributors. 

This is a substantial discount from the 

proposed fees for ad hoc data requests. 

With respect to End of Day data, ad hoc 

requests are $500 per month. Thirty-six 

months would cost a total of $18,000. 

The proposed discounted fee of $6,000 

is two-thirds less than the standard rate. 

With respect to Intra-Day information, 

ad hoc requests are $750 per month. 

Thirty-six months would cost a total of 

$27,000. The proposed discounted fee of 

$9,000 for Intra-Day information is also 

two-thirds less than the standard rate. 

Eligibility for the discount will 

depend on the type of current 

subscription. A current purchaser of 

End of Day data would be eligible for 

the historical End of Day product at the 

reduced rate. A current purchaser of the 

Intra-Day product would similarly be 

able to purchase the historical Intra-Day 

product at the reduced rate. A purchaser 

of both the current End of Day and IntraDay products would be entitled to 

purchase both types of history at the 

reduced rate. The fees for historical data 

are linked to the current product 

because effective historical testing 

requires a comparison of similar 

licenses. Effective testing of the End of 

Day product, for example, requires End 

of Day historical data, and the same 

would hold true for Intra-Day data. 

The 36-month period will be based on 

the date of purchase of the 36 months 

of data by a Current Distributor. For 

example, a customer that buys the End 

of Day product for the first time in 

September 2024 would also be able to 

purchase historical End of Day data for 

the period September 2021 through 

September 2024 (inclusive) at the 

discounted rate. Similarly, a customer 

with an existing End of Day 

subscription in September 2024 would 

be able to purchase the historical End of 

Day data from September 2021 through 

September 2024 at the discounted rate. 

The same reasoning would apply to 

Intra-Day customers.32

Many customers use historical data to 

test their strategies and models, and our 

discussions with current and former 

customers and experience indicate that 

36 months of data is sufficient for most 

customer needs, and is an effective 

baseline for review. 

For customers that request historical 

information outside of the three year 

period, end of day historical 

information can be purchased through 

ad hoc requests for monthly information 

for $500 per request per month, and 

Intra-Day information can be purchased 

at $750 per request per month. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,33 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,34 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

Equitable Allocation of Reasonable 

Dues, Fees and Other Charges 

The proposed changes are an 

equitable allocation of reasonable dues, 

fees and other charges because: (i) the 

trade outline products offered by 

multiple exchanges are substitutes, and 

customers are free to choose which 

product they purchase; and (ii) the 

proposed fees are comparable to the fees 

charged by other exchanges, and 

customers are free to purchase other 

products if the Exchange has mistaken 

the value of its product. 

Substitution 

Trade outline products have been 

available on multiple exchanges for 

many years and are well known in the 

market and used by many market 

participants. PHLX Options Trade 

Outline, which is a model for MRX 

Options Trade Outline, has been 

available for well over a decade.35


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 180 / Tuesday, September 17, 2024 / Notices 76165 

2010) (SR–Phlx–2010–121) (introducing PHOTO on 

September 1, 2010). 

36See Nasdaq ISE Rules, Options 7, Section 10(A) 

and (B) (Nasdaq ISE Open/Close Trade Profile End 

of Day; Nasdaq ISE Open/Close Trade Profile 

Intraday). 

37See Nasdaq GEMX Rules, Options 7, Sections 

7(D) (Nasdaq GEMX Open/Close End of Day Trade 

Profile) and 7(E) (Nasdaq GEMX Open/Close 

Intraday Trade Profile). 

38See Nasdaq Rules, Options 7, Section 4 (Nasdaq 

Options Trade Outline (‘‘NOTO’’)). 

39See, e.g., Securities Exchange Act Release No. 

94913 (May 13, 2022), 87 FR 30534 (May 19, 2022) 

(SR–Cboe–2022–023) (describing End-of-Day and 

Intraday Open-Close Data as a summary of trading 

activity on the exchange at the option level by 

origin, side of the market, price and transaction 

type). 

40See, e.g., Securities Exchange Act Release No. 

93803 (December 16, 2021, 86 FR 72647 (December 

22, 2021) (SR–NYSEAMER–2021–46) (describing 

the NYSE Options Open-Close Volume Summary as 

a volume summary of trading activity on the 

exchange at the option level by origin, side of the 

market, contract volume and transaction type). 

41See, e.g., Securities Exchange Act Release No. 

93132 (September 27, 2021), 86 FR 54499 (October 

1, 2021) (SR–NYSEArca–2021–82) (describing the 

NYSE Options Open-Close Volume Summary as a 

volume summary of trading activity on the 

exchange at the option level by origin, side of the 

market, contract volume and transaction type). 

42See, e.g., Securities Exchange Act Release No. 

97174 (March 21, 2023), 88 FR 18201 (March 27, 

2023) (SR–BOX–2023–09) (describing the BOX 

exchange Open-Close Data report as providing 

volume by origin, buying/selling, and opening/ 

closing criteria). 

43See, e.g., Securities Exchange Act Release No. 

91964 (May 21, 2021), 86 FR 28667 (May 27, 2021) 

(SR–PEARL–2021–24) (introducing the Open-Close 

Report). 

44The decision of the United States Court of 

Appeals for the District of Columbia Circuit in 

NetCoalition v. SEC 615 F.3d 525 (D.C. Cir. 2010). 

upheld the Commission’s reliance upon 

competitive markets to set reasonable and equitably 

allocated fees for market data. ‘‘In fact, the 

legislative history indicates that the Congress 

intended that the market system evolve through the 

interplay of competitive forces as unnecessary 

regulatory restrictions are removed and that the SEC 

wield its regulatory power in those situations where 

competition may not be sufficient, such as in the 

creation of a consolidated transactional reporting 

system.’’ NetCoalition I at 535. (quoting H.R. Rep. 

No. 94–229, at 92 (1975), as reprinted in 1975 

U.S.C.C.A.N. 321, 323) (internal quotation marks 

omitted). The court agreed with the Commission’s 

conclusion that ‘‘Congress intended that 

competitive forces should dictate the services and 

practices that constitute the U.S. national market 

system for trading equity securities.’’ Id. (quoting 

Securities Exchange Act Release No. 59039 

(December 2, 2008), 73 FR 74770, 74771 (December 

9, 2008) (SR–NYSEArca–2006–21)). 

45See Securities Exchange Act Release No. 59039 

(December 2, 2008), 73 FR 74770 (December 9, 

2008) (SR–NYSEArca–2006–21). 

46See id. 

47See Securities Exchange Act Release No. 51808 

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

(‘‘Regulation NMS Adopting Release’’). 

48These substitute products include NOTO, ISE 

Trade Profile, GEMX Trade Profile data; open-close 

data from Cboe C1, C2, BZX, and EDGX; and Open 

Close Reports from MIAX Options, Pearl, and 

Emerald. 

49See NasdaqTrader.com, ‘‘Options Market 

Statistics,’’ available at https://www.nasdaq

trader.com/Trader.aspx?id=OptionsVolume

Summary. 

50See MIAX Emerald Options Exchange Fee 

Schedule as of April 18, 2024,’’ available at https:// 

www.miaxglobal.com/sites/default/files/fee_

schedule-files/MIAX_Emerald_Fee_Schedule_

04182024.pdf. 

51See Cboe DataShop, ‘‘Cboe Open-Close Volume 

Summary,’’ available at https://datashop.cboe.com/ 

cboe-options-open-close-volume-summary. 

52See MIAX Emerald Options Exchange Fee 

Schedule as of April 18, 2024,’’ available at https:// 

www.miaxglobal.com/sites/default/files/fee_

schedule-files/MIAX_Emerald_Fee_Schedule_

04182024.pdf. 

53See Cboe DataShop, ‘‘Cboe Open-Close Volume 

Summary,’’ available at https://datashop.cboe.com/ 

cboe-options-open-close-volume-summary. 

Similar products available on other 

Nasdaq exchanges include ISE Trade 

Profile,36 GEMX Trade Profile,37 and 

Nasdaq Options Trade Outline.38 Trade 

outline products are also offered by 

competitor exchanges such a Cboe,39

NYSE American,40 NYSE Arca,41

BOX,42 and MIAX PEARL.43 The trade 

outline products offered by the Nasdaqaffiliated exchanges provide exactly the 

same information as MRX Options 

Trade outline, and those offered by 

other exchanges provide substantially 

the same information, including both 

Intra-Day and End of Day data. 

The information provided by one 

exchange in its trade outline product is 

generally similar to that provided by 

other exchanges for competing products 

because order flow can move from one 

exchange to another, and market 

sentiment trends that appear on one 

exchange are likely to be similar to the 

sentiment trends on other exchanges. 

The key differentiator in the quality of 

the data depends on the volume of 

transactions on a given exchange; the 

greater the volume of transactions, the 

greater the value of the data. Customers 

can choose not to purchase the trade 

outline product of one exchange and 

substitute it for that of another 

exchange. This applies to both current 

and historical data. 

Customers can also choose not to 

purchase a trade outline product at all. 

Trade outline products are designed to 

help investors understand underlying 

market trends to improve the quality of 

investment decisions, but are not 

necessary to execute a trade. Customers 

may choose to forego the information 

from MRX Options Trade Outline or any 

of its competitor products when making 

a trade. 

Nasdaq and its affiliates have 

observed that customers purchase 

sufficient data to provide a view of the 

market, but not more, as the value of 

data from each additional exchange 

yields diminishing returns. As a result, 

all exchanges are limited in what they 

will be able to charge for Trade Outline. 

As the Commission and courts 44 have 

recognized, ‘‘[i]f competitive forces are 

operative, the self-interest of the 

exchanges themselves will work 

powerfully to constrain unreasonable or 

unfair behavior.’’ 45 Accordingly, ‘‘the 

existence of significant competition 

provides a substantial basis for finding 

that the terms of an exchange’s fee 

proposal are equitable, fair, reasonable, 

and not unreasonably or unfairly 

discriminatory.’’ 46 The Commission 

and the courts have repeatedly 

expressed their preference for 

competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, while 

adopting a series of steps to improve the 

current market model, the Commission 

highlighted the importance of market 

forces in determining prices and SRO 

revenues, and also recognized that 

current regulation of the market system 

‘‘has been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 47

MRX Options Trade Outline is in direct 

competition with multiple exchanges 

that offer similar products in end of day 

and intra-day formats.48

The discounted fees for historical 

data, like the purchase of the end of day, 

Intra-Day and Derived Data licenses, is 

also subject to competition. Any 

exchange that wishes to provide 

discounts for historical data would be 

able to do so with an immediately 

effective fee filing in response. 

Comparability 

The proposed fees are comparable to 

the fees charged by similarly situated 

exchanges. 

As explained above, the value of a 

trade outline product is determined in 

part by the number of underlying 

transactions reflected in the data. MRX 

has a market share comparable to Cboe 

C2 and MIAX Emerald, in the range of 

approximately 2% to 4% at the time of 

this filing.49 For intra-day products, 

MIAX Emerald charges $2,000 50 and 

Cboe C2 charges $1,000.51 The proposed 

fee of $1,500 is within that range and 

comparable to those fees. 

For End of Day products, MIAX 

Emerald charges $600,52 and Cboe C2 

charges $500.53 Although the proposed 

fees of $750 are above that range, MRX 

believes that the relative value of IntraDay and End of Day fees should be in 

the ratio of 2:1, and therefore MIAX 

Emerald and Cboe C2 have somewhat 

undervalued their end of day products. 

If Nasdaq is incorrect in that 


ddrumheller on DSK120RN23PROD with NOTICES1
76166 Federal Register / Vol. 89, No. 180 / Tuesday, September 17, 2024 / Notices 

54The fee for an ad hoc request for one month 

of End of Day data on the GEMX exchange is $400, 

and the discounted fee for 12 months of data is 

$400 × 12, or $4,800. The fee for an ad hoc request 

for one month of End of Day data on the BX and 

MRX exchanges is $500, and the discounted fee for 

12 months of data is $500 × 12, or $6,000. 55 15 U.S.C. 78s(b)(3)(A)(ii). 

assessment, customers will purchase the 

products of its competitors. 

Nasdaq is not aware of another 

exchange that provides a discount for 

historical data other than its own 

affiliates. Volume on MRX is 

comparable to volume on BX and 

GEMX. The proposed discounted prices 

of $6,000 for 36 months of historical 

End of Day data and $9,000 for 36 

months of historical Intra-Day data for 

MRX are identical to the proposed 

discounts for the BX exchange, 

submitted congruently with this filing. 

The proposed discounted prices for 

Intra-Day data for MRX and BX are also 

identical to that of GEMX. Although 

proposed fees for 36 months of End of 

Day data for MRX and BX ($6,000) are 

higher than those for GEMX ($4,800), 

the overall pricing methodology of 

offering three years of historical data for 

the price of one year of ad hoc requests 

for information is consistent across all 

of these exchanges, and therefore 

comparable.54

With respect to ad hoc requests for 

information, MRX provides a discount 

from current requests. Current End of 

Day information is available for $750 

per month, while ad hoc requests for 

historical End of Day information is 

available for $500 per month. Similarly, 

Current Intra-Day information is 

available for $1,500 per month, while ad 

hoc requests for historical Intra-Day 

information is available for $750 per 

month. This is identical to the fee 

structure proposed for the BX exchange, 

and comparable to the fee structure for 

the GEMX exchange (which offers 

current End of Day data for $575 per 

month and historical End of Day data 

for $400 per month; current Intra-Day 

data is offered for $1,500 per month, 

and historical Intra-Day data is offered 

for $750 per month). 

If the Exchange is incorrect in its 

assessments for any of these fees, 

current and prospective customers will 

elect not to purchase Trade Outline. 

The Proposal Does Not Permit Unfair 

Discrimination 

Nothing in the proposal treats any 

category of market participant any 

differently from any other category of 

market participant. 

The proposed fees, including both 

current and historical information, 

apply equally to all current and 

potential distributors. Trade Outline is 

available to all market participants, 

including members and non-members, 

and all market participants receive the 

same information. 

It is not unfair discrimination to 

provide a discount for 36 months of 

historical data to Current Distributors, 

but not former distributors or firms that 

have never purchased the product. Any 

firm would be able to become a Current 

Distributor at any time by subscribing to 

Trade Outline, and would be able to 

cancel the subscription at any time after 

receiving the 36 months of historical 

data for the proposed discounted fee. 

More specifically, a firm that is not a 

Current Distributor may obtain access to 

the 36 months of historical data at a 

discount by becoming a Current 

Distributor for a limited time and then 

terminating the subscription. 

It is not unfair discrimination to limit 

the discount for 36 months of historical 

data to Current Distributors. Historical 

information is generally used by Current 

Distributors to test their strategies and 

trading models, and Current Distributors 

are therefore in the best position to 

benefit from the historical data. Outside 

of the 36 month period, all firms will 

have the opportunity to purchase 

historical data on an ad hoc basis. 

For all of these reasons, the proposal 

does not permit unfair discrimination. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. In terms of 

inter-market competition, the Exchange 

notes that it operates in a highly 

competitive market in which market 

participants can readily favor competing 

venues if they deem fee levels at a 

particular venue to be excessive, or 

rebate opportunities available at other 

venues to be more favorable. In such an 

environment, the Exchange must 

continually adjust its fees to remain 

competitive with other exchanges and 

with alternative trading systems that 

have been exempted from compliance 

with the statutory standards applicable 

to exchanges. Because competitors are 

free to modify their own fees in 

response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. 

Intermarket Competition 

Nothing in the proposal burdens 

inter-market competition (the 

competition among self-regulatory 

organizations). 

As discussed above, Trade Outline is 

subject to direct competition from other 

options exchanges that offer substitutes. 

Any of these exchanges can replicate 

this proposal in full or in part, and 

nothing in the proposal would interfere 

with the ability of any exchange to do 

so. 

Intra-Market Competition 

Nothing in the proposal burdens 

intra-market competition (the 

competition among consumers of 

exchange data). Trade Outline is 

available to any customer under the 

same fee schedule as any other 

customer, and any market participant 

that wishes to purchase these products 

can do so on a non-discriminatory basis. 

Offering the 36 months of historical 

data to Current Distributors, but not 

former distributors or firms that have 

never purchased the product, will not 

burden competition because nonsubscribers are free to purchase a 

current subscription. Moreover, a firm 

that is not a Current Distributor may 

become a Current Distributor and then 

cancel the product after receiving the 

historical discount. As such, firms that 

are not Current Distributors will have an 

opportunity to pay the same fees for the 

most recent 36 months of historical data 

as Current Distributors. Outside of the 

36 month period, all firms will have the 

opportunity to purchase historical data 

on an ad hoc basis. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.55 At any time 

within 60 days of the filing of the 

proposed rule change, the Commission 

summarily may temporarily suspend 

such rule change if it appears to the 

Commission that such action is: (i) 

necessary or appropriate in the public 

interest; (ii) for the protection of 

investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 180 / Tuesday, September 17, 2024 / Notices 76167 

56 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Exchange Rule 1.5(p). 

4The Exchange initially filed the proposed Fee 

Schedule changes on August 30, 2024 (SR–MEMX– 

2024–35). On September 6, 2024, the Exchange 

withdrew that filing and submitted this proposal. 

5Market share percentage calculated as of 

September 6, 2024. The Exchange receives and 

processes data made available through consolidated 

data feeds (i.e., CTS and UTDF). 

6 Id. 

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– 

MRX–2024–35 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–MRX–2024–35. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–MRX–2024–35 and should be 

submitted on or before October 8, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.56

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–21034 Filed 9–16–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–100999; File No. SR– 

MEMX–2024–36] 

Self-Regulatory Organizations; MEMX 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend the Exchange’s Fee 

Schedule Concerning Transaction 

Pricing 

September 11, 2024. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on 

September 6, 2024, MEMX LLC 

(‘‘MEMX’’ 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 Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing with the 

Commission a proposed rule change to 

amend the Exchange’s fee schedule 

applicable to Members 3 (the ‘‘Fee 

Schedule’’) pursuant to Exchange Rules 

15.1(a) and (c). The Exchange proposes 

to implement the changes to the Fee 

Schedule pursuant to this proposal 

immediately. The text of the proposed 

rule change is provided in Exhibit 5. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend the Fee Schedule to 

(i) modify the required criteria under 

Liquidity Provision Tier 1; and (ii) 

reduce the fee and modify the required 

criteria under Liquidity Removal Tier 1, 

as further described below.4

The Exchange first notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive or 

incentives to be insufficient. More 

specifically, the Exchange is only one of 

16 registered equities exchanges, as well 

as a number of alternative trading 

systems and other off-exchange venues, 

to which market participants may direct 

their order flow. Based on publicly 

available information, no single 

registered equities exchange currently 

has more than approximately 15.77% of 

the total market share of executed 

volume of equities trading.5 Thus, in 

such a low-concentrated and highly 

competitive market, no single equities 

exchange possesses significant pricing 

power in the execution of order flow, 

and the Exchange currently represents 

approximately 2.59% of the overall 

market share.6 The Exchange in 

particular operates a ‘‘Maker-Taker’’ 

model whereby it provides rebates to 

Members that add liquidity to the 

Exchange and charges fees to Members 

that remove liquidity from the 

Exchange. The Fee Schedule sets forth 

the standard rebates and fees applied 

per share for orders that add and remove 

liquidity, respectively. Additionally, in 

response to the competitive 

environment, the Exchange also offers 

tiered pricing, which provides Members 

with opportunities to qualify for higher 

rebates or lower fees where certain 

volume criteria and thresholds are met. 

Tiered pricing provides an incremental 

incentive for Members to strive for 

higher tier levels, which provides 


ddrumheller on DSK120RN23PROD with NOTICES1