Federal Register / Vol. 89, No. 191 / Wednesday, October 2, 2024 / Notices 80287 

23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3This proposal was initially filed on September 

3, 2024, as SR–BX–2024–034. On September 13, 

2024, SR–BX–2024–034 was withdrawn and 

replaced with the instant filing to clarify the time 

period for availability of historical information. 

4A ‘‘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. 

5The most recent 36 months is measured based 

on the date of purchase of the 36 months of data 

by a Current Distributor. 

6Every options series trades as a distinct symbol; 

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

synonyms. 

7See Securities Exchange Act Release No. 100792 

(August 21, 2024), 89 FR 68676 (August 27, 2024) 

(SR–BX–2024–028). 

8This would include the aggregate number of 

‘‘opening purchase transactions,’’ defined as a BX 

Options Transaction that creates or increases a long 

position in an options contract, see Options 1, 

Section 1(a)(35), and the aggregate number of 

‘‘opening writing transactions,’’ defined as a BX 

Options Transaction that creates or increases a short 

position in an options contract. See Options 1, 

Section 1(a)(36). 

9The term ‘‘Customer’’ applies to any transaction 

that is identified by a Participant for clearing in the 

Customer range at The Options Clearing 

Corporation (‘‘OCC’’) which is not for the account 

of broker or dealer or for the account of a 

‘‘Professional’’ (as that term is defined in Options 

1, Section 1(a)(48)). See Options 7, Section 1(a). 

10The term ‘‘Broker-Dealer’’ applies to any 

transaction which is not subject to any of the other 

transaction fees applicable within a particular 

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

11The term ‘‘BX Options Market Maker’’ is a 

Participant that has registered as a Market Maker on 

BX Options pursuant to Options 2, Section 1, and 

must also remain in good standing pursuant to 

Options 2, Section 9. In order to receive Market 

Maker pricing in all securities, the Participant must 

be registered as a BX Options Market Maker in at 

least one security. See Options 7, Section 1(a). 

12The term ‘‘Firm’’ applies to any transaction that 

is identified by a Participant for clearing in the Firm 

range at OCC. See Options 7, Section 1(a). 

13The term ‘‘Professional’’ means any person or 

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

and (ii) places more than 390 orders in listed 

options per day on average during a calendar month 

for its own beneficial account(s) pursuant to 

Options 1, Section 1(a)(48). All Professional orders 

shall be appropriately marked by Participants. See 

Options 7, Section 1(a). 

14This would include the aggregate number of 

‘‘closing purchase transactions’’ in the affected 

series, defined as a BX Options Transaction that 

reduces or eliminates a short position in an options 

contract, see Options 1, Section 1(a)(19), and the 

aggregate number of ‘‘closing writing transactions,’’ 

defined as a BX Options Transaction that reduces 

or eliminates a long position in an options contract. 

See Options 1, Section 1(a)(20). 

15These are the same types of information 

available on PHOTO, and the other trade outline 

products offered by Nasdaq exchanges. 

16The 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. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–22563 Filed 10–1–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101195; File No. SR–BX– 

2024–036] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Initiate Fees for the 

Distribution of BX Trade Outline 

September 26, 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 13, 2024, Nasdaq BX, Inc. 

(‘‘BX’’ 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 fees 

for the distribution of BX Trade Outline. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/bx/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 BX Trade Outline. 

Distributor fees will be $750 per month 

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

per month for the Intra-Day product.3

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 4 will also be able to 

purchase the most recent 36 months of 

historical data 5 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 December 2014. 

BX Options Trade Outline 

BX Options Trade Outline will 

provide aggregate quantity and volume 

information for trades on the Exchange 

for all series 6 during a trading session.7

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,8 characterized by origin type 

(Customers,9 Broker-Dealers,10 BX 

Options Market Makers,11 Firms,12 and 

Professionals 13); and (iv) aggregate 

quantity of trades and aggregate trade 

volume effected to close a position,14

characterized by origin type (Customers, 

Broker-Dealers, BX Options Market 

Makers, Firms, and Professionals).15

Information will be provided on an 

End of Day, Intra-Day, and historical 

basis. 

End of Day Information 

The BX Trade Outline End of Day file 

will 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 16 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 


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17Subscribers 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. 

18See Infra, notes 21 through 23. 

19Market 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. 

20See 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). 

21The underlying information for BX 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). BX 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. 

22See 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). 

23See 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). 

24See Nasdaq Rules, Options 7, Section 4 (Nasdaq 

Options Trade Outline (‘‘NOTO’’)). 

25See, 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). 

26See, 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). 

27See, 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). 

28See, 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). 

29See, 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). 

30The End of Day report includes a field that 

presents Total Industry Volume for the Series. 

31The most recent 36 months is measured based 

on the date of purchase of the 36 months of data 

by a Current Distributor. 

32A ‘‘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. 

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.17

This is the same schedule currently 

offered on PHLX, ISE, GEMX, and 

Nasdaq Options Market.18

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 December 

2014, based on specific request.19

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,’’ 20 BX Trade Options 

Outline replicates in substance 21

PHOTO and the other trade outline 

products currently offered by Nasdaq 

ISE, LLC (‘‘ISE’’),22 Nasdaq GEMX, LLC 

(‘‘GEMX’’),23 and the options market 

operated by the Nasdaq Stock Market 

LLC (‘‘Nasdaq Options Market’’ or 

‘‘NOM’’).24 Similar products are also 

available from options markets not 

affiliated with Nasdaq such as Cboe 

Options Exchange (‘‘Cboe’’),25 NYSE 

American Options (‘‘NYSE 

American’’),26 NYSE Arca Options 

(‘‘NYSE Arca’’),27 BOX Options Market 

LLC (‘‘BOX’’),28 MIAX Pearl Options 

Exchange (‘‘Pearl’’),29 and others. BX 

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. 

BX Options Trade Outline will 

include proprietary Exchange trading 

data and will not disseminate any intraday trading data from any other 

exchange.30 The information provided, 

both in End of Day and Intra-Day 

formats, will not be a real-time data 

feed. 

BX Options Trade Outline will be 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. 

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 31 of historical 

Intra-Day data for Current 

Distributors,32 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 


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33A 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.). 

34 15 U.S.C. 78f(b). 

35 15 U.S.C. 78f(b)(4) and (5). 

36See 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). 

37See 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). 

38See 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). 

39See Nasdaq Rules, Options 7, Section 4 (Nasdaq 

Options Trade Outline (‘‘NOTO’’)). 

40See, 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). 

41See, 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). 

42See, 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). 

43See, 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). 

44See, 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). 

45The 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)). 

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.33

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,34 in general, and furthers the 

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

of the Act,35 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 BX 

Options Trade Outline, has been 

available for well over a decade.36

Similar products available on other 

Nasdaq exchanges include ISE Trade 

Profile,37 GEMX Trade Profile,38 and 

Nasdaq Options Trade Outline.39 Trade 

outline products are also offered by 

competitor exchanges such a Cboe,40

NYSE American,41 NYSE Arca,42

BOX,43 and MIAX PEARL.44 The trade 

outline products offered by the Nasdaqaffiliated exchanges provide exactly the 

same information as BX Options Trade 

outline, and those offered by other 

exchanges provide substantially the 

same information, including both IntraDay 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 BX 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 45 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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46See Securities Exchange Act Release No. 59039 

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

2008) (SR–NYSEArca–2006–21). 

47See id. 

48See Securities Exchange Act Release No. 51808 

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

(‘‘Regulation NMS Adopting Release’’). 

49These 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. 

50See NasdaqTrader.com, ‘‘Options Market 

Statistics,’’ available at https://

www.nasdaqtrader.com/ 

Trader.aspx?id=OptionsVolumeSummary. 

51See 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. 

52See Cboe DataShop, ‘‘Cboe Open-Close Volume 

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

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

53See 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. 

54See Cboe DataShop, ‘‘Cboe Open-Close Volume 

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

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

55The 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. 

unfair behavior.’’ 46 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.’’ 47 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.’’ 48 BX 

Options Trade Outline is in direct 

competition with multiple exchanges 

that offer similar products in end of day 

and intra-day formats.49

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. BX 

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.50 For intra-day products, 

MIAX Emerald charges $2,000 51 and 

Cboe C2 charges $1,000.52 The proposed 

fee of $1,500 is within that range and 

comparable to those fees. 

For End of Day products, MIAX 

Emerald charges $600,53 and Cboe C2 

charges $500.54 Although the proposed 

fees of $750 are above that range, BX 

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 

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 BX is comparable 

to volume on MRX 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 BX are 

identical to the proposed discounts for 

the MRX exchange, submitted 

congruently with this filing. The 

proposed discounted prices for IntraDay data for BX and MRX are also 

identical to that of GEMX. Although 

proposed fees for 36 months of End of 

Day data for BX and MRX ($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.55

With respect to ad hoc requests for 

information, BX 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 MRX 

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 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 89, No. 191 / Wednesday, October 2, 2024 / Notices 80291 

56 15 U.S.C. 78s(b)(3)(A)(ii). 

57 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 100671 

(August 8, 2024), 89 FR 66163. The Commission has 

not received any comments. 

4The full text of Amendment No. 1 is available 

on the Commission’s website at: https:// 

Continued 

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.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: (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. 

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–BX–2024–036 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–BX–2024–036. 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–BX–2024–036 and should be 

submitted on or before October 23, 2024 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.57

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–22564 Filed 10–1–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101197; File No. SR– 

CBOE–2024–034] 

Self-Regulatory Organizations; CBOE 

Exchange, Inc.; Notice of Filing of 

Amendment No. 1 and Order Granting 

Accelerated Approval of a Proposed 

Rule Change, as Modified by 

Amendment No. 1, To Adopt Rules To 

List P.M.-Settled Russell 2000 Index 

Options With Expirations on the Third 

Friday-of-the-Month 

September 26, 2024. 

I. Introduction 

On August 2, 2024, Cboe Exchange, 

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

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to list p.m.-settled broad-based 

Index options with expirations on the 

third Friday-of-the-month. The 

proposed rule change was published for 

comment in the Federal Register on 

August 14, 2024.3 On September 13, 

2024, the Exchange filed Amendment 

No. 1 to the proposed rule change, 

described in Item II below, which Item 

has been prepared by the Exchange.4


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