Federal Register / Vol. 89, No. 212 / Friday, November 1, 2024 / Notices 87439 

62 15 U.S.C. 78o–3(b)(6). 

63 15 U.S.C. 78s(b)(2). 

64 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Rule 1.5(n) (‘‘Member’’). The term 

‘‘Member’’ shall mean any registered broker or 

dealer that has been admitted to membership in the 

Exchange. A Member will have the status of a 

‘‘member’’ of the Exchange as that term is defined 

in Section 3(a)(3) of the Act. Membership may be 

granted to a sole proprietor, partnership, 

corporation, limited liability company or other 

organization which is a registered broker or dealer 

pursuant to Section 15 of the Act, and which has 

been approved by the Exchange. 

application of the Document 

Productions Lists. By requiring that a 

customer respondent request that the 

Document Production Lists apply no 

later than the answer due date pursuant 

to Rule 12303, rather than any extended 

answer due date agreed to by the 

parties, the proposed rule change 

reasonably balances providing 

respondent customers with time to 

determine whether to apply the 

Document Production Lists with the 

expeditious nature of simplified 

proceedings. 

Further, in addition to the proposed 

rule change, FINRA has taken, and has 

stated that it will continue to take, 

measures that should further enhance 

awareness and transparency of the 

discovery process, as well as help 

customers evaluate whether to request 

application of the Document Production 

Lists. Specifically, FINRA updated its 

website to provide more direct access to 

FINRA guidance and rules related to 

simplified arbitration and the discovery 

process, including the Document 

Production Lists. In addition, FINRA 

stated that it will publish guidance 

about discovery that would assist 

customers in making informed decisions 

regarding whether to elect to use the 

Document Production Lists in their 

case. Moreover, the educational 

resources currently available to 

arbitrators should help ensure that 

arbitrators are well trained on the 

discovery process, including use of the 

Discovery Production Lists, so that they 

can foster simplified arbitration 

proceedings that are less susceptible to 

unsupported procedural objections 

regarding document production and that 

operate in a fair and expeditious 

manner. For these reasons, the proposed 

rule change is reasonably designed to 

protect investors and the public interest. 

IV. Conclusion 

The proposed rule change would 

provide customers in paper cases and 

special proceedings the option to elect 

whether they want the Document 

Production Lists to apply to all parties. 

In this way, the proposed rule change 

would facilitate discovery of the 

documents and information that are 

relevant to a customer’s arbitration, and 

thereby enhance the arbitration process. 

The proposed rule change would also 

codify existing guidance stating that the 

Document Production Lists are 

applicable in simplified customer 

arbitrations in which the customer 

requests a regular hearing. Codifying 

this guidance would enhance parties’ 

awareness and understanding of the 

discovery process in certain simplified 

customer arbitrations. 

For the reasons set forth above, the 

Commission finds that the proposed 

rule change, as modified by Partial 

Amendment No. 1, is consistent with 

Section 15A(b)(6) of the Exchange Act, 

which requires, among other things, that 

FINRA rules be designed to prevent 

fraudulent and manipulative acts and 

practices, promote just and equitable 

principles of trade, and, in general, 

protect investors and the public 

interest.62

It is therefore ordered pursuant to 

Section 19(b)(2) of the Exchange Act 63

that the proposed rule change (SR– 

FINRA–2024–008), as modified by 

Partial Amendment No. 1, be, and 

hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.64

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–25425 Filed 10–31–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101453; File No. SR– 

CboeBZX–2024–103] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule 

October 28, 2024. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on October 

18, 2024, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) proposes to 

amend its Fee Schedule. The text of the 

proposed rule change is provided in 

Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

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

equities/regulation/rule_filings/BZX/), 

at the Exchange’s Office of the 

Secretary, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to update its 

Fee Schedule to provide a temporary 

discount on fees assessed to BZX 

Members (‘‘Members’’) 3 and nonMembers that purchase $20,000 or more 

of ad hoc purchases of BZX Historical 

Depth Data (‘‘Historical Depth 

Reports’’), effective October 18, 2024 

through December 31, 2024. 

By way of background, the Exchange 

currently makes available for purchase 

Depth Data, which is a daily archive of 

the Exchange’s depth of book real-time 

feed, which provides depth-of-book 

quotations and execution information 

based on equity orders entered into the 

System. The Exchange also offers 

Historical Depth Data, which offers such 

data on a historical basis, i.e., T+1 or 

later. The Historical Depth Report is a 

completely voluntary product, in that 

the Exchange is not required by any rule 

or regulation to make this data available 

and that potential customers may 

purchase it on an ad-hoc basis only if 

they voluntarily choose to do so. 

Cboe LiveVol, LLC (‘‘LiveVol’’), a 

wholly owned subsidiary of the 


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87440 Federal Register / Vol. 89, No. 212 / Friday, November 1, 2024 / Notices 

4See, e.g., https://www.nasdaqtrader.com/ 

Trader.aspx?id=DPPriceListOptions#nom; and 

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

NYSE_Market_Data_Fee_Schedule.pdf. 

5See, for example, EDGX Fee Schedule, BYX Fee 

Schedule, EDGA Fee Schedule. 

6The discount will apply on an order-by-order 

basis. The discount will apply to the total purchase 

price, once the $20,000 minimum purchase is 

satisfied (for example, a qualifying order of $25,000 

would be discounted to $20,000, i.e. receive a 20% 

discount of $5,000). 

7See Securities Exchange Act Release No. 99182 

(December 14, 2023), 88 FR 88173 (December 20, 

2023) (SR–CboeBZX–2023–093) and Securities 

Exchange Act Release No. 100330 June13, 2024), 89 

FR 51931 (June 20, 2024) (SR–CboeBZX–2024–048). 

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

9 15 U.S.C. 78f(b)(5). 

10 Id. 

11 15 U.S.C. 78f(b)(4). 

12See supra note 4. 

13See Cboe Global Markets, U.S. Equities Market 

Volume Summary, Month-to-Date (October 3, 2024), 

available at https://www.cboe.com/us/equities/ 

market_statistics/. 

14See Securities Exchange Act Release No. 51808 

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

(‘‘Regulation NMS Adopting Release’’). 

Exchange’s parent company, Cboe 

Global Markets, Inc., makes the 

Historical Depth Report available for 

purchase to Users on the LiveVol 

DataShop website (datashop.cboe.com). 

The Historical Depth Data is available 

for purchase to Members and NonMembers; the Exchange charges a fee 

per month of historical data of $1,000. 

The Historical Depth Report provided 

on a historical basis is only provided to 

data recipients for internal use only, and 

thus, no redistribution will be 

permitted. The Exchange notes that the 

Historical Depth Report is subject to 

direct competition from other 

exchanges, as other exchanges offer 

similar products for a fee.4

The Exchange’s options platform 

(‘‘BZX Options’’) and affiliated equities 

and options exchanges (i.e., Cboe 

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

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

EDGX Exchange, Inc. (‘‘EDGX’’), Cboe 

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

EDGA Exchange, Inc. (‘‘EDGA’’) 

(collectively, ‘‘Affiliates’’) also offer 

similar data products.5 Particularly, 

each of the Exchange’s Affiliates offer a 

daily and historical archive of their 

depth of book real-time feed with 

execution information based on their 

trading activity that is substantially 

similar to the information provided by 

the Exchange through its Depth Data 

products. 

The Exchange proposes to provide a 

temporary pricing incentive program in 

which Members or Non-Members that 

purchase Historical Depth Reports will 

receive a percentage fee discount where 

specific purchase thresholds are met. 

Specifically, the Exchange proposes to 

provide a 20% discount for ad-hoc 

purchases of Historical Depth Data of 

$20,000 or more.6 The proposed 

program will apply to all market 

participants irrespective of whether the 

market participant is a new or current 

purchaser; however, the discount 

cannot be combined with any other 

discounts offered by the Exchange. The 

Exchange intends to introduce the 

discount program beginning October 18, 

2024, with the program remaining in 

effect through December 31, 2024. The 

Exchange also notes that it previously 

adopted similar discount programs for 

other historical data products offered by 

the Exchange.7

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.8 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 9 requirements that the rules of 

an exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 10 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange also believes the 

proposed rule change is consistent with 

Section 6(b)(4) of the Act,11 which 

requires that Exchange rules provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

Members and other persons using its 

facilities. 

In adopting Regulation NMS, the 

Commission granted self-regulatory 

organizations (‘‘SROs’’) and brokerdealers increased authority and 

flexibility to offer new and unique 

market data to the public. It was 

believed that this authority would 

expand the amount of data available to 

consumers, and also spur innovation 

and competition for the provision of 

market data. The Exchange believes that 

the proposed fee changes will further 

broaden the availability of U.S. equity 

market data to investors consistent with 

the principles of Regulation NMS. The 

Exchange believes the dissemination of 

historical depth of book data via 

Historical Depth Reports benefits 

investors through increased 

transparency and may promote better 

informed trading, as well as research 

and studies of the equities industry. 

Nevertheless, the Exchange notes that 

such data is not necessary for trading 

and as noted above, is entirely optional. 

Moreover, several other exchanges offer 

a similar data product which offer the 

same type of data content through 

similar reports.12

The Exchange operates in a highly 

competitive environment. Indeed, there 

are currently 16 registered equities 

exchanges that trade equities. Based on 

publicly available information, no single 

equities exchange has more than 13% of 

the equity market share.13 The 

Commission has repeatedly expressed 

its preference for competition over 

regulatory intervention in determining 

prices, products, and services in the 

securities markets. Particularly, in 

Regulation NMS, the Commission 

highlighted the importance of market 

forces in determining prices and SRO 

revenues and, also, recognized that 

current regulation of the market system 

‘‘has been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 14

Making similar data products available 

to market participants fosters 

competition in the marketplace, and 

constrains the ability of exchanges to 

charge supercompetitive fees. In the 

event that a market participant views 

one exchange’s data product as more 

attractive than the competition, that 

market participant can, and often does, 

switch between similar products. The 

proposed fees are a result of the 

competitive environment of the U.S. 

equities industry as the Exchange seeks 

to adopt fees to attract purchasers of 

Historical Depth Reports. 

The Exchange believes that the 

proposed incentive program for any 

Member or non-Member who purchases 

Historical Depth Reports is reasonable 

because such purchasers would receive 

a 20% discount for purchasing $20,000 

or more worth of Historical Depth 

Reports. The Exchange believes the 

proposed discount is reasonable as it 

will give purchasers the ability to use 

and test the Historical Depth Reports at 

a discounted rate, prior to purchasing 

additional months or a monthly 

subscription, and will therefore 

encourage users to purchase Historical 


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Federal Register / Vol. 89, No. 212 / Friday, November 1, 2024 / Notices 87441 

15See Securities Exchange Act Release No. 99182 

(December 14, 2023), 88 FR 88173 (December 20, 

2023) (SR–CboeBZX–2023–093) and Securities 

Exchange Act Release No. 100330 June 13, 2024), 

89 FR 51931 (June 20, 2024) (SR–CboeBZX–2024– 

048). 

16 15 U.S.C. 78s(b)(3)(A). 

17 17 CFR 240.19b–4(f). 18 17 CFR 200.30–3(a)(12). 

Depth Reports. Further, the proposed 

discount is intended to promote 

increased use of the Exchange’s 

Historical Depth Reports by defraying 

some of the costs a purchaser would 

ordinarily have to expend before using 

the data product. The Exchange believes 

that the proposed discount is equitable 

and not unfairly discriminatory because 

it will apply equally to all Members and 

non-Members who purchase Historical 

Depth Reports. Lastly, the purchase of 

this data product is discretionary and 

not compulsory. Indeed, no market 

participant is required to purchase the 

Historical Depth Reports, and the 

Exchange is not required to make 

Historical Depth Reports available to all 

investors. Potential purchasers may 

request the data at any time if they 

believe it to be valuable or may decline 

to purchase such data. As noted above, 

the Exchange previously adopted 

similar discount programs for other 

historical data products offered by the 

Exchange.15

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange operates in a highly 

competitive environment in which the 

Exchange must continually adjust its 

fees to remain competitive. Because 

competitors are free to modify their own 

fees in response, including the adoption 

of similar discounts to those fees, the 

Exchange believes that the degree to 

which fee changes (including discounts 

and rebates) in this market may impose 

any burden on competition is extremely 

limited. As discussed above, the 

Exchange’s Historical Depth Reports 

offering is subject to direct competition 

from several other options exchanges 

that offer similar data products. 

Moreover, purchase of Historical Depth 

Reports is optional. It is designed to 

help investors understand underlying 

market trends to improve the quality of 

investment decisions, but is not 

necessary to execute a trade. 

The proposed rule changes are 

grounded in the Exchange’s efforts to 

compete more effectively. In this 

competitive environment, potential 

purchasers are free to choose which, if 

any, similar product to purchase to 

satisfy their need for market 

information. As a result, the Exchange 

believes this proposed rule change 

permits fair competition among national 

securities exchanges. Further, the 

Exchange believes that these changes 

will not cause any unnecessary or 

inappropriate burden on intermarket 

competition, as the proposed incentive 

program applies uniformly to any 

purchaser of Historical Depth Reports. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

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

of the Act 16 and paragraph (f) of Rule 

19b–4 17 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

CboeBZX–2024–103 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–CboeBZX–2024–103. 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–CboeBZX–2024–103 and should be 

submitted on or before November 22, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–25428 Filed 10–31–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101454; File No. SR–FICC– 

2024–007] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing of Partial Amendment No. 1 to 

Proposed Rule Change To Modify the 

GSD Rules (i) Regarding the Separate 

Calculation, Collection and Holding of 

Margin for Proprietary Transactions 

and That for Indirect Participant 

Transactions, and (ii) To Address the 

Conditions of Note H to Rule 15c3–3a 

October 28, 2024. 

On March 14, 2024, Fixed Income 

Clearing Corporation (‘‘FICC’’) filed 

with the Securities and Exchange 


khammond on DSKJM1Z7X2PROD with NOTICES