Federal Register / Vol. 89, No. 185 / Tuesday, September 24, 2024 / Notices 77913 

25 17 CFR 200.30–3(a)(12), (59). 

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

2 17 CFR 240.19b–4. 

3The previously introduced fee proposal was 

initially filed on July 1, 2024, as SR–ISE–2024–25. 

On July 15, 2024, that filing was withdrawn and 

refiled as SR–ISE–2024–32. On July 29, 2024, that 

filing was withdrawn and refiled as SR–ISE–2024– 

36. On August 12, 2024, that proposal was 

withdrawn and replaced with SR–ISE–2024–40 to 

incorporate those fees into a filing that codifies the 

definition of ISE Open/Close Trade Profile. On 

August 23, 2024, SR–ISE–2024–40 was withdrawn 

and replaced with SR–ISE–2024–43 to provide 

additional information. On September 6, 2024, SR– 

ISE–2024–43 was withdrawn and replaced with the 

instant filing to provide further information. 

4See Securities Exchange Act Release No. 77907 

(May 25, 2016), 81 FR 35079 (June 1, 2016) (SR– 

ISE–2016–14) (adopting a flat fee for the Complete 

Set of historical data); Securities Exchange Act 

Release No. 76501 (November 20, 2015), 80 FR 

74181 (November 27, 2015) (SR–ISE–2015–40) 

(offering a one month free trial to new customers); 

Securities Exchange Act Release No. 67955 (October 

1, 2012), 77 FR 61037 (October 5, 2012) (SR–ISE– 

2012–76) (adopting reduced fees for historical data 

for academic institutions); Securities Exchange Act 

Release No. 61317 (January 8, 2010), 75 FR 2915 

(January 19, 2010) (SR–ISE–2009–103) (establishing 

the current fees for the end of day and intra-day 

products); Securities Exchange Act Release No. 

60859 (October 21, 2009), 74 FR 55610 (October 28, 

2009) (SR–ISE–2009–64) (adjusting fees for 

academic institutions); Securities Exchange Act 

Release No. 60654 (September 11, 2009), 74 FR 

47848 (September 17, 2009) (SR–ISE–2009–64) 

(adjusting fees for academic institutions); Securities 

Exchange Act Release No. 56957 (December 13, 

2007), 72 FR 71988 (December 19, 2007) (SR–ISE– 

2007–115) (establishing the sale of historical data); 

Securities Exchange Act Release No. 56254 (August 

15, 2007), 72 FR 47104 (August 22, 2007) (SR–ISE– 

2007–70) (initial offering of ISE Open/Close Trade 

Profile). 

5Every options series trades as a distinct symbol; 

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

synonyms. 

6A ‘‘Priority Customer’’ is a person or entity that 

is not a broker/dealer in securities, and does not 

place more than 390 orders in listed options per day 

on average during a calendar month for its own 

beneficial account(s), as defined in Nasdaq ISE 

Options 1, Section 1(a)(37). See Options 7, Section 

1(c). 

7A ‘‘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, Section 

1(c) 

8A ‘‘Firm Proprietary’’ order is an order 

submitted by a member for its own proprietary 

account. See Options 7, Section 1(c). 

9A ‘‘Professional Customer’’ is a person or entity 

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

Customer. See Options 7, Section 1(c). 

10The End of Day report includes a field that 

presents Total Industry Volume for the Series. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–21752 Filed 9–23–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101096; File No. SR–ISE– 

2024–46] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Codify the Definition 

of ISE Open/Close Trade Profile 

September 18, 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 6, 2024, Nasdaq ISE, LLC 

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

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II 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 codify the 

definition of ISE Open/Close Trade 

Profile in the ISE rulebook. This filing 

also incorporates previously proposed 

fee changes that: (i) adjusted fees for ISE 

Open/Close End of Day and Intraday 

Trade Profile; (ii) reduced fees for 36 

months of historical data for current 

customers; and (iii) allowed unlimited 

external distribution of ISE Open/Close 

End of Day and Intraday Trade Profile 

for a fixed monthly fee. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/ise/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 codify the definition of ISE 

Open/Close Trade Profile in the ISE 

rulebook. This filing also incorporates 

previously proposed fee changes that: (i) 

adjusted fees for ISE Open/Close End of 

Day and Intraday Trade Profile; (ii) 

reduced fees for 36 months of historical 

data for current customers; and (iii) 

allowed unlimited external distribution 

of ISE Open/Close End of Day and 

Intraday Trade Profile for a fixed 

monthly fee.3

ISE Open/Close Trade Profile 

ISE currently sells a market data 

offering comprised of the entire opening 

and closing trade data of ISE-listed 

options of both customers and firms, 

called the ISE Open/Close Trade 

Profile.4 This product is designed to 

provide data to subscribers regarding 

investor sentiment and trading activity. 

The ISE Open/Close Trade Profile 

provides aggregate quantity and volume 

information for trades on the Exchange 

for all series 5 during a trading session. 

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, characterized by origin type 

(Priority Customer,6 Broker-Dealer,7

Firm Proprietary,8 and Professional 

Customer 9), and for Priority Customers 

and Professional Customers, further 

subdivided by trade size buckets; and 

(iv) aggregate quantity of trades and 

aggregate trade volume effected to close 

a position, characterized by origin type 

(Priority Customer, Broker-Dealer, Firm 

Proprietary, and Professional Customer), 

and for Priority Customers and 

Professional Customers, further 

subdivided by trade size buckets. 

ISE Open/Close Trade Profile End of 

Day also provides opening buy, closing 

buy, opening sell and closing sell 

information, which includes underlying 

close, option close, and moneyness. 

End of Day information is available 

the next business day. Intra-Day 

information is updated at 10-minute 

intervals over the course of the trading 

day. Historical information is available 

upon request. 

The ISE Open/Close Trade Profile 

provides proprietary Exchange trade 

data and does not include any intraday 

trade data from any other exchange.10

The information provided, both in End 

of Day and Intraday formats, is not a 

real-time data feed. 


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77914 Federal Register / Vol. 89, No. 185 / Tuesday, September 24, 2024 / Notices 

11The additional fields are: First Trade Price, Last 

Trade Price, Underlying Close, Moneyness, Total 

Exchange volume, and Total Industry Volume for 

the Series. 

12See Securities Exchange Act Release No. 61317 

(January 8, 2010), 75 FR 2915 (January 19, 2010) 

(SR–ISE–2009–103) (establishing the current fees 

for the end of day and intra-day products). 

13The current ISE rulebook states that historical 

End of Day information is available starting in May 

2005. The Exchange is updating this information to 

correct the starting date to January 2006. 

14See 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), 

15See Nasdaq Stock Market Rules, Options 7, 

Section 4 (Nasdaq Options Market Data Distributor 

Fees). 

16See 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) 

17See, 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). 

18See, 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). 

19See, 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). 

20See, 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). 

21See, 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). 

ISE Open/Close Trade Profile is a 

completely voluntary product in that 

the Exchange is not required by any rule 

or regulation to make this data available 

and potential subscribers may purchase 

it only if they voluntarily choose to do 

so. 

This information is available to all 

market participants, including both 

members and non-members, for all 

series and symbols in End of Day, IntraDay, and historical files (upon request). 

The information provided is designed 

to provide the ability to analyze option 

trade and volume data and create and 

test trading models and analytical 

strategies, as well as build customized 

sentiment indicators. 

The End of Day file is updated during 

an overnight process with additional 

fields 11 and is available the following 

morning. 

The Intraday product is captured in 

‘‘snapshots’’ taken every 10 minutes 

throughout the trading day, available to 

subscribers within 2 minutes of the 

conclusion of each period. Subscribers 

receive the first calculation at 9:42 a.m. 

ET, representing data captured from 

9:30 a.m. to 9:39 a.m., and the second 

calculation at 9:52 a.m., representing 

data from both the most recent snapshot 

and previous snapshots, continuing over 

the course of the trading day. 

The current subscription rate for both 

members and non-members for ISE 

Trade Profile Open/Close End of Day is 

$750 per month. The current fee for ISE 

Open/Close Trade Profile Intraday is 

$2,000 per month. An annual 

subscription for end of day and Intraday 

Trade Profile is $2,500 per month. 

These fees have not changed since 

2010.12

ISE also sells historical ISE Open/ 

Close Trade Profile data about the past 

activity of all option series traded on the 

Exchange for each trading session 

conducted during a prior calendar 

month selected by the subscriber. This 

data is intended to enhance a 

purchaser’s ability to analyze option 

trade and volume data, evaluate 

historical trends in the trading activity 

of a particular option series, and create 

and test trading models and analytical 

strategies. Historical Trade Profile 

provides the same fields of information 

as the End of Day and Intraday files, 

respectively. This market data offering 

is comprised of the entire opening and 

closing trade data of both customers and 

firms starting in January 2006 for End of 

Day and October 2009 for Intraday.13

Ad-hoc subscribers can purchase this 

data for any number of months through 

the current month. 

Trade Profile is designed to enhance 

the ability of customers to understand 

market sentiment on the Exchange and 

to create and test trading models and 

analytical strategies useful in both 

options and equities markets. It is not 

necessary to execute a trade, but it 

supplies the customer with information 

about underlying market trends 

designed to improve the quality of that 

customer’s investment decisions. 

Customers can, and often do, elect to 

forego this information. 

Products similar to Trade Profile have 

been available on multiple exchanges 

for many years and are well-established 

in the market. Such products are 

available from Nasdaq Phlx LLC 

(‘‘Phlx’’),14 Nasdaq Options Market 

(‘‘NOM’’),15 Nasdaq GEMX LLC 

(‘‘GEMX’’),16 Cboe Options Exchange,17

NYSE American Options,18 NYSE Arca 

Options,19 BOX Options Market LLC,20

MIAX Pearl Options Exchange,21 and 

others. 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. The current 

purchasers of Trade Profile are 

investment banks, market makers, asset 

managers and other buy-side investors. 

Proposed Changes 

Definition of ISE Open/Close Trade 

Profile 

The Exchange proposes to codify the 

definition of ISE Open/Close Trade 

Profile. Nothing in this codification is 

intended to change the product in any 

way, but rather is intended to describe 

the product exactly as it exists. 

Specifically, the Exchange proposes the 

following definition: 

ISE Open/Close Trade Profile provides 

aggregate quantity and volume information 

for trades on the Exchange for all series 

during a trading session. 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, 

characterized by origin type (Priority 

Customer, Broker-Dealer, Firm Proprietary, 

and Professional Customer), and for Priority 

Customers and Professional Customers, 

further subdivided by trade size buckets; and 

(iv) aggregate quantity of trades and aggregate 

trade volume effected to close a position, 

characterized by origin type (Priority 

Customer, Broker-Dealer, Firm Proprietary, 

and Professional Customer), and for Priority 

Customers and Professional Customers, 

further subdivided by trade size buckets. 

ISE Open/Close Trade Profile End of Day 

will also provide opening buy, closing buy, 

opening sell and closing sell information, 

which shall include option first trade price, 

underlying close, option close, and 

moneyness. 

End of Day information will be available 

the next business day. Intra-Day information 

is updated at 10-minute intervals over the 

course of the trading day. Historical 

information will be available upon request. 

The purpose of the proposed change is to 

add clarity and specificity to the ISE 

rulebook. 

Previously Introduced Fee Changes 

Fee Changes for End of Day and 

Intraday Products 

The Exchange proposes to increase 

the fee for the End of Day product from 

$750 to $850, and the Intraday Product 

from $2,000 to $2,500. The discounted 

rate of $2,500 per month for both end 

of day and intraday information will be 

increased to $3,100 to reflect the new 

fees while preserving the $250 discount. 

In addition, the Exchange proposes to 

insert a comma after the phrase ‘‘or the 


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Federal Register / Vol. 89, No. 185 / Tuesday, September 24, 2024 / Notices 77915 

22The Exchange proposes to define ‘‘Current 

Distributor’’ as any firm that purchases either the 

End of Day Product for the current month, or the 

Intraday Product for the current month in the same 

month that the 36 months of historical End of Day 

or Intraday data is ordered. 

23A 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.). 

24 ‘‘Exchange Information’’ is any data or 

information that has been collected, validated, 

processed and/or recorded by the Exchange and 

made available for transmission relating to: (i) 

Eligible securities or other financial instruments, 

markets, products, vehicles, indicators, or devices; 

(ii) activities of the Exchange; or (iii) other 

information or data from the Exchange. Information 

includes, but is not limited to, any element of 

information used or processed in such a way that 

Exchange Information or a substitute for such 

Information can be identified, recalculated or reengineered from the processed information. 

Intraday Product for the current month’’ 

into the definition of Current 

Distributor. The revised sentence will 

read as follows: 

A ‘‘Current Distributor’’ is any firm that 

purchases either the End of Day Product for 

the current month, or the Intraday Product 

for the current month, in the same month 

that the 36 months of historical End of Day 

or Intraday data is ordered. 

The change is designed to clarify that 

the phrase ‘‘the same month that the 36 

months of historical End of Day or 

Intraday data is ordered’’ applies to both 

firms that purchase End of Day data in 

the current month and firms that 

purchase Intraday data for the current 

month. The clarification will not change 

how the fee is charged. 

Discount for Historical Data 

The Exchange proposes to alter 

discounts for historical end of day and 

intraday data for Current Distributors.22

Specifically, the Exchange proposes to 

offer the most recent 36 months of end 

of day data for $7,200, and the most 

recent 36 months intraday data for 

$12,000. 

Ad-hoc requests for historical end of 

day data are currently $600 per request 

per month. A complete set of historical 

end of day data is $27,500 per request. 

For intraday data, there is a sliding scale 

of charges: $1,000 per request per 

month; $2,000 per request per quarter; 

and $8,000 per request per year. 

The proposed rates are a substantial 

discount from current fees. With respect 

to end of day data, ad hoc requests are 

$600 per request per month. Three years 

of such data would cost $21,600. The 

proposed rate of $7,200 is far below this 

level. With respect to intraday 

information, the current rates are $1,000 

per request per month, $2,000 per 

request per quarter, and $8,000 per 

request per year. Using the lowest rate 

of $8,000 per request per year, the most 

recent 36 months of intraday 

information would cost $24,000. The 

proposed rate of $12,000 for the most 

recent 36 months of intraday data is a 

substantial discount from the current 

rate. 

For customers that request more than 

three years of information, end of day 

historical information can still be 

purchased for $600 per request per 

month, and intraday information can be 

purchased at $1,000 per request per 

month. The discount for a complete set 

of historical end of day data is $27,500 

per request is being removed because 

the Exchange has found that the most 

recent three years of data is sufficient 

for most customer needs. 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. 

The historical data will continue to 

provide the same categories of 

information available for current 

subscribers under the new proposal. 

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 

Intraday product would similarly be 

able to purchase the historical Intraday 

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 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 July 

2024 would also be able to purchase 

historical End of Day data for the period 

July 2021 through July 2024 (inclusive) 

at the discounted rate. Similarly, a 

customer with an existing End of Day 

subscription in July 2024 would be able 

to purchase the historical End of Day 

data from July 2021 through July 2024 

at the discounted rate. The same 

reasoning would apply to Intraday 

customers.23

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 Intraday 

data. 

Historical data for Intraday 

information is currently offered in three 

tiers, depending on the time period 

requested: $1,000 per request per 

month, $2,000 per request per quarter, 

and $8,000 per request per year. The 

Exchange receives almost no requests 

for information on a quarterly or yearly 

basis. If a potential customer were 

interested in quarterly or yearly data, 

the Exchange believes that such a 

customer would be able to obtain more 

data at a lower cost using the proposed 

36-month discount. As such, the 

Exchange expects that removal of the 

quarterly and yearly pricing tiers will 

have no material impact on customers. 

The monthly tier will remain for 

customers who wish to purchase data 

outside of the 36-month window. 

The Exchange proposes to remove the 

fee of $2,000 per request per quarter and 

$8,000 per request per year as no longer 

useful in light of the much lower 

discount being proposed for 36 months 

of historical data. 

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, and is 

often purchased concurrently with a 

new subscription to ISE Open/Close 

Trade Profile. Many customers use 

historical data to test their strategies and 

models, and our discussions with 

current and past customers and 

experience indicate that 36 months of 

data is sufficient for most customer 

needs, and is an effective baseline for 

review. 

External Distribution of Derived Data 

The Exchange proposes to offer a 

license for the unlimited external 

distribution of Derived Data from ISE 

Trade Profile for $4,500 per month. 

Derived Data is ‘‘any information 

generated in whole or in part from 

Exchange Information 24 such that the 

information generated cannot be reverse 

engineered to recreate Exchange 

Information, or be used to create other 

data that is recognizable as a reasonable 

substitute for such Exchange 

Information.’’ 

Fees for external distribution of 

Derived Data from ISE Trade Profile are 

in addition to fees for the End of Day 

product or the Intraday product, or both, 

as applicable. 

This is a new license to be offered by 

the Exchange; external distribution of 


lotter on DSK11XQN23PROD with NOTICES1
77916 Federal Register / Vol. 89, No. 185 / Tuesday, September 24, 2024 / Notices 

25See Securities Exchange Act Release No. 93293 

(October 12, 2021), 86 FR 57716 (October 18, 2021) 

(SR–Phlx–2021–58). 

26 15 U.S.C. 78f(b). 

27 15 U.S.C. 78f(b)(5). 

28 15 U.S.C. 78f(b). 

29 15 U.S.C. 78f(b)(4) and (5). 

30See 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), 

31See 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). 

32See 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) 

33See, 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). 

34See, 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). 

35See, 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). 

36See, 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). 

37See, 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). 

38The 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)). 

Derived Data is not currently permitted. 

The proposal, based on a similar license 

offered by the Phlx Exchange,25 will 

allow the external distribution of 

analytic products derived from ISE 

Trade Profile to the general investing 

public. A similar product is also being 

proposed for the Nasdaq Options Market 

and the GEMX Exchange. 

Experience with the Phlx Exchange 

indicates that this license provides an 

effective mechanism for market data 

vendors to identify, develop, and sell 

derived market data products, such as 

sentiment indicators, harnessing the 

power of the competitive marketplace to 

promote innovation. The Exchange 

expects that this product will have the 

greatest utility for the general investing 

public. 

2. Statutory Basis 

The Exchange believes that its 

proposal to codify the definition of ISE 

Open/Close Trade Profile is consistent 

with Section 6(b) of the Act,26 in 

general, and furthers the objectives of 

Section 6(b)(5) of the Act,27 in 

particular, in that it is designed to 

promote just and equitable principles of 

trade, 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. 

Adding the definition of ISE Open/ 

Close Trade Profile will provide 

additional clarity and specificity to the 

ISE rulebook. Nothing in this 

codification is intended to change the 

product or the way it functions, but 

rather is intended to describe the 

product exactly as it exists today. 

Providing additional clarity about an 

exchange product will help investors 

make better informed decisions about 

ISE Open/Close Trade Profile, and 

therefore will help protect investors and 

promote the public interest. 

Similarly, clarifying the definition of 

Current Distributor will also add clarity 

and specificity to the rulebook without 

changing the underlying fees. This 

additional clarity will help investors 

make better informed decisions about 

ISE Open/Close Trade Profile, and 

thereby help protect investors and 

promote the public interest. 

The Exchange also believes that its 

proposal to change fees is consistent 

with Section 6(b) of the Act,28 in 

general, and furthers the objectives of 

Sections 6(b)(4) and 6(b)(5) of the Act,29

in particular, in that it provides for the 

equitable allocation of reasonable dues, 

fees, and other charges among members 

and issuers and other persons using any 

facility, and is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

Equitable Allocation of Reasonable 

Dues, Fees and Other Charges 

The proposed changes are an 

equitable allocation of reasonable dues, 

fees and other charges because: (i) the 

trade profile products offered by 

multiple exchanges are substitutes, and 

customers are free to choose which 

product they purchase; and (ii) the 

proposed fees are comparable to the fees 

charged by other exchanges, and 

customers are free to purchase other 

products if the Exchange has mistaken 

the value of its product. 

Substitution 

As noted above, products similar to 

Trade Profile have been available on 

multiple exchanges for many years and 

are well-established in the market. Such 

products are available from Phlx,30

ISE,31 GEMX,32 Cboe,33 NYSE 

American,34 NYSE Arca,35 BOX,36

MIAX Pearl,37 and others. 

Trade outline products offer the same 

categories of data through end of day or 

intraday reports. The information 

provided by one exchange is generally 

similar to that provided by other 

exchanges because order flow can move 

from one exchange to another, and 

market sentiment trends that appear on 

one exchange are likely to be similar to 

the sentiment trends on other 

exchanges. The key differentiator 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. 

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 is not 

necessary to execute a trade. Customers 

can, and do, choose to forego the 

information from Trade Profile 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 a trade outline 

product. 

As the Commission and courts 38 have 

recognized, ‘‘[i]f competitive forces are 

operative, the self-interest of the 

exchanges themselves will work 

powerfully to constrain unreasonable or 


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Federal Register / Vol. 89, No. 185 / Tuesday, September 24, 2024 / Notices 77917 

39See Securities Exchange Act Release No. 59039 

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

2008) (SR–NYSEArca–2006–21). 

40See id. 

41See Securities Exchange Act Release No. 51808 

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

(‘‘Regulation NMS Adopting Release’’). 

42These 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. 

43See NasdaqTrader.com, ‘‘Options Market 

Statistics,’’ available at https://

www.nasdaqtrader.com/Trader.aspx?id=

OptionsVolumeSummary. 

44See NYSE American, ‘‘NYSE American Options 

Proprietary Market Data Fees as of November 1, 

2023,’’ available at https://www.nyse.com/ 

publicdocs/nyse/data/NYSE_American_Options_

Market_Data_Fee_Schedule.pdf 

45See MIAX Options Exchange, ‘‘Fee Schedule as 

of April 23, 2024,’’ available at https://

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

schedule-files/MIAX_Options_Fee_Schedule_

04232024.pdf 

46See MIAX Pearl Options Exchange, ‘‘Fee 

Schedule as of April 15, 2024,’’ available at https:// 

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

schedule-files/MIAX_Pearl_Options_Fee_Schedule_

04152024.pdf 

47See NasdaqTrader.com, ‘‘Options Market 

Statistics,’’ available at https://

www.nasdaqtrader.com/Trader.aspx?id=

OptionsVolumeSummary. 

48See Cboe DataShop, ‘‘Cboe Open-Close Volume 

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

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

49See NYSE American, ‘‘NYSE American Options 

Proprietary Market Data Fees as of November 1, 

2023,’’ available at https://www.nyse.com/ 

publicdocs/nyse/data/NYSE_American_Options_

Market_Data_Fee_Schedule.pdf. 

50See MIAX Options Exchange, ‘‘Fee Schedule as 

of April 23, 2024,’’ available at https://

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

schedule-files/MIAX_Options_Fee_Schedule_

04232024.pdf. 

51See MIAX Pearl Options Exchange, ‘‘Fee 

Schedule as of April 15, 2024,’’ available at https:// 

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

schedule-files/MIAX_Pearl_Options_Fee_Schedule_

04152024.pdf. 

unfair behavior.’’ 39 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.’’ 40 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.’’ 41

Trade Profile is in direct competition 

with multiple exchanges that offer 

similar products in end of day and 

intraday formats.42

The license to allow the external 

distribution of Derived Data, like the 

purchase of the end of day and intraday 

licenses, is also subject to competition. 

Any exchange that wishes to allow 

distribution of a Derived Data product 

based on options trading information 

would be able to do so with an 

immediately effective fee filing similar 

to this proposal. 

Moreover, as explained above, the 

proposal is designed to promote the 

dissemination of a variety of analytical 

insights—generally used only by 

investment banks, market makers, asset 

managers and other buy-side investors— 

to the general investing public by 

creating an incentive for market data 

vendors to identify, develop, and sell 

such indicators. As such, the proposal 

will spur competition among not only 

exchanges, but vendors as well. 

The discounted fees for historical data 

and the $250 discount for the purchase 

of both end of day and intraday data 

together, like the purchase of the end of 

day, intraday and Derived Data licenses, 

is also subject to competition. Any 

exchange that wishes to provide 

discounts for historical data or the joint 

usage of end of day and intraday 

information would be able to do so with 

an immediately effective fee filing in 

response. 

Comparability of Proposed Fees 

The proposed fees are comparable to 

the fees charged by similarly situated 

exchanges. 

As explained above, the value of 

Trade Profile is determined in part by 

the number of underlying transactions 

reflected in the data. 

ISE has a market share comparable to 

NYSE American, MIAX, and MIAX 

Pearl at approximately 6% to 7% in the 

second quarter of 2024.43 For intraday 

products, NYSE American charges 

$2,000,44 MIAX charges $2,000,45 and 

MIAX Pearl charges $2,000.46 The 

proposed fees of $2,500 for ISE are 

above this because ISE believes that the 

other exchanges are not accurately 

reflecting the value of the data. CBOE 

C1, at a slightly larger market share of 

approximately 9%,47 charges $3,000 for 

intraday data,48 and we believe the 

proposed fee of $2,500 is more in line 

with the overall market for trade outline 

information than the $2,000 charged by 

other exchanges. 

For end of day data, NYSE American 

charges $750,49 MIAX charges $600,50

and MIAX Pearl charges $600.51 The 

proposed fees of $850 are higher than 

this range, but the Exchange believes 

that its competitors are underestimating 

the value of the product. 

Nasdaq is not aware of another 

exchange that provides a similar 

discount for historical data other than 

its own affiliates. The Phlx exchange, 

which is affiliated with Nasdaq, offers 

the most recent 36 months of historical 

End of Day data to Current Distributors 

for $6,000, and the most recent 36 

months of Intraday data for $12,000. 

Nasdaq believes that the proposed ISE 

fees are reasonable in comparison to 

Phlx because, although Phlx has a 

somewhat larger market share 

(approximately 9% for Phlx vs. about 

7% for ‘‘ISE), the historical Phlx data is 

somewhat undervalued. As such, ISE’s 

proposed fees of $7,200 for 36 months 

of ISE’s historical End of Day data and 

$12,000 for 36 months of ISE’s Intraday 

data are reasonable. 

If the Exchange is wrong in these 

assessments, it will lose sales as a result. 

As noted above, clarifying the 

definition of Current Distributor will not 

change fees, and therefore will not 

impact the equitable allocation of 

reasonable dues, fees and other charges. 

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. On the contrary, the 

proposal expands distribution of Trade 

Profile beyond investment banks, 

market makers, asset managers and 

other buy-side investors to market data 

vendors and the general investing 

public. Allowing the distribution of 

Derived Data to the general investing 

public will broaden the availability of 

such information while not treating any 

current recipient of the product 

differently in any way. The new fee 

structure, which modifies fees to reflect 

current market value and offers 

historical data at a discount, applies 

equally to all current and potential 

distributors. Trade Profile is available to 

all market participants, including 

members and non-members, and all 

market participants receive the same 

information in the Trade Profile data 

feed. 

With respect to the specific fee 

changes, it is reasonable and not unfair 

discrimination to charge an external 

distributor of Derived Data a $4,500 

licensing fee. Vendors will ordinarily 

charge a fee to their downstream 

customers for this service, and, even if 

the vendor is not charging a specific fee 

for this particular service, Derived Data 

products from the Exchange will be part 

of a suite of offerings that generally 


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77918 Federal Register / Vol. 89, No. 185 / Tuesday, September 24, 2024 / Notices 

52 15 U.S.C. 78s(b)(3)(A). 

53 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 

54 17 CFR 240.19b–4(f)(6). 

55 17 CFR 240.19b–4(f)(6)(iii). 

promote sales. External distribution is 

fundamentally different than internal 

use, in that the former generates revenue 

from external sales while the latter does 

not. It is not unfair discrimination to 

charge a licensing fee for a product that 

generates downstream revenue. 

Nor is it unfair discrimination to 

allow the redistribution of Derived Data, 

but not the underlying information, to 

the general investing public. As 

explained above, neither exchanges nor 

vendors ordinarily allow redistribution 

of analytic products—such products are 

typically designed solely for the use of 

direct customers, not for redistribution 

to the customers of customers in the 

manner of a data feed. Allowing the 

redistribution of Derived Data provides 

an incentive for vendors to innovate 

with new compelling and varied 

analytic products for the general 

investing public that will provide access 

to market sentiment insights currently 

available only to sophisticated 

investors. This proposal is therefore not 

unfair discrimination, but rather allows 

for more equitable access to market 

sentiment information for the general 

investing public. 

It is also 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 Profile, 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 historical data discount 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 

intermarket 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. 

Adding the definition of ISE Open/ 

Close Trade Profile will promote 

competition by helping investors make 

better informed decisions about ISE 

Open/Close Trade Profile. Nothing 

about the addition of a definition will 

impact inter-market competition or 

intra-market competition negatively. 

Intermarket Competition 

Nothing in the proposal burdens 

inter-market competition (the 

competition among self-regulatory 

organizations). 

As discussed above, ISE Open/Close 

Trade Profile 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 Profile 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. 

Indeed, the proposal will foster 

competition by expanding 

dissemination of data to vendors and 

the general investing public, and by 

encouraging more market participants to 

use Trade Profile data to help inform 

their investments strategies and analytic 

models. 

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. 

Adding language to clarify the 

definition of Current Distributor will not 

change fees, and will promote 

competition by better informing 

investors. 

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 

Because the foregoing proposed rule 

change does not: (i) significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, it has become effective 

pursuant to Section 19(b)(3)(A) of the 

Act 52 and Rule 19b–4(f)(6) 53

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 54 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),55 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposed 

rule change may become operative upon 

filing. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposed 

rule change may become operative upon 

filing. The Exchange states that adding 


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Federal Register / Vol. 89, No. 185 / Tuesday, September 24, 2024 / Notices 77919 

56For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

57 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Self-Regulatory Organizations; LCH SA; Notice 

of Filing of Proposed Rule Change Relating to the 

CDSClear Select Membership Model, Exchange Act 

Release No. 34–99847 (Mar. 22, 2024); 89 FR 21579 

(Mar. 28, 2024) (SR–LCH SA–2024–002) (‘‘Notice’’). 

4 15 U.S.C. 78s(b)(2). 

5Exchange Act Release No. 100094 (May 9, 2024), 

89 FR 42515 (May 15, 2024) (File No. SR–LCH SA– 

2024–002). 

6 15 U.S.C. 78s(b)(2)(B). 

7Securities Exchange Act Release No. 100394 

(June 21, 2024), 89 FR 53685 (June 27, 2024) (File 

No. SR–LCH SA–2024–002). 

8 15 U.S.C. 78s(b)(2). 

9 15 U.S.C. 78s(b)(2)(B)(ii)(II). 

10 Id. 

the definition of ISE Open/Close Trade 

Profile will provide additional clarity 

and specificity to the ISE rulebook, and 

nothing in the clarification changes the 

product or the way it functions, but 

rather describes the product exactly as 

it exists today. The Exchange also states 

that the fees included in this filing have 

been in effect since July 1, 2024, and 

waiver of the operative delay will allow 

application of those fees to continue 

uninterrupted. For these reasons, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. Therefore, the 

Commission hereby waives the 

operative delay and designates the 

proposal operative upon filing.56

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 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: 

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– 

ISE–2024–46 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–ISE–2024–46. 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–ISE–2024–46 and should be 

submitted on or before October 15, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.57

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–21744 Filed 9–23–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101094; File No. SR–LCH 

SA–2024–002] 

Self-Regulatory Organizations; LCH 

SA; Notice of Designation of Longer 

Period for Commission Action on 

Proceedings To Determine Whether To 

Approve or Disapprove a Proposed 

Rule Change Relating to the CDSClear 

Select Membership Model 

September 18, 2024. 

On March 13, 2024, Banque Centrale 

de Compensation, which conducts 

business under the name LCH SA (‘‘LCH 

SA’’), filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change SR–LCH SA– 

2024–002 (the ‘‘Proposed Rule Change’’) 

pursuant to Section 19(b) of the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’) 1 and Rule 19b–4 2

thereunder to amend its CDS Clearing 

Rule Book and CDS Clearing Procedures 

to incorporate new terms and to make 

conforming, clarifying, and clean-up 

changes to implement a new model of 

CDSClear select membership. The 

Proposed Rule Change was published 

for public comment in the Federal 

Register on March 28, 2024.3 The 

Commission has not received comments 

regarding the Proposed Rule Change. 

On May 9, 2024, pursuant to Section 

19(b)(2) of the Exchange Act,4 the 

Commission designated a longer period 

within which to approve, disapprove, or 

institute proceedings to determine 

whether to approve or disapprove the 

Proposed Rule Change, until June 26, 

2024.5 On June 21, 2024, the 

Commission instituted proceedings, 

pursuant to Section 19(b)(2)(B) of the 

Exchange Act,6 to determine whether to 

approve or disapprove the Proposed 

Rule Change.7

Section 19(b)(2) of the Exchange Act 8

provides that proceedings to determine 

whether to approve or disapprove a 

proposed rule change must be 

concluded within 180 days of the date 

of publication of notice of filing of the 

proposed rule change. The time for 

conclusion of the proceedings may be 

extended for up to 60 days if the 

Commission determines that a longer 

period is appropriate and publishes the 

reasons for such determination.9 The 

180th day after publication of the Notice 

in the Federal Register is September 24, 

2024. 

The Commission is extending the 

period for Commission action on the 

Proposed Rule Change. The Commission 

finds that it is appropriate to designate 

a longer period within which to take 

action on the Proposed Rule Change so 

that the Commission has sufficient time 

to consider the issues raised by the 

Proposed Rule Change and to take 

action on the Proposed Rule Change. 

Accordingly, pursuant to Section 

19(b)(2)(B)(ii)(II) of the Exchange Act,10

the Commission designates November 

23, 2024, as the date by which the 

Commission should either approve or 


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