Federal Register / Vol. 89, No. 213 / Monday, November 4, 2024 / Notices 87675 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Exchange originally filed a proposed rule 

change to amend NYSE Rule 7.31(f)(1) on July 16, 

2024 (SR–NYSE–2024–40). SR–NYSE–2024–40 was 

withdrawn on October 24, 2024, and replaced by 

this filing. 

5All broker-dealer algorithms will operate on 

their respective systems, not on Exchange systems. 

The Exchange does not currently have and will not 

enter into any financial or other arrangements with 

any algorithm provider and will not enter into any 

such arrangement with any algorithm provider with 

respect to the proposed Directed Orders. The 

member organization initiating a Directed Order to 

an algorithm has ultimate responsibility for any 

transaction fees associated with the execution of 

such order. The Exchange may facilitate the process 

by which such fees are passed through from the 

algorithm providers to the member organizations 

utilizing Directed Orders, as proposed, but will not 

determine, subsidize, or benefit from any such fees. 

Subject to approval and implementation of this 

proposed rule change, the Exchange intends to 

adopt a routing fee for Directed Orders to an 

algorithm, similar to the existing routing fee for 

Directed Orders to an ATS. See New York Stock 

Exchange Price List 2024, available at https://

www.nyse.com/publicdocs/nyse/markets/nyse/ 

NYSE_Price_List.pdf (providing for Routing Fee for 

Directed Order to OneChronos LLC). 

6The ability to become an NYSE algorithm 

provider is open to all FINRA-registered brokerdealers, regardless of whether they are also 

Exchange members, on an equal and nondiscriminatory basis. 

7The Consolidated Audit Trail (‘‘CAT’’) for a 

Directed Order would reflect entry of the order at 

the Exchange; ArcaSec’s receipt of the order from 

the Exchange; ArcaSec’s routing of the order to the 

designated algorithm; and the algorithm’s routing of 

the order to the execution venue(s) selected to 

effectuate its strategy. The Exchange will not be 

involved in the clearing or settlement of Directed 

Orders, except to the extent that it may submit 

certain trades to clearing on behalf of member 

organizations (similar to the capacity in which it 

participates in the clearing process for orders that 

it routes for Regulation NMS purposes). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101471; File No. SR–NYSE– 

2024–67] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change To 

Amend Rule 7.31(f)(1) 

October 29, 2024. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on October 

24, 2024, New York Stock Exchange 

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

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rule 7.31(f)(1) regarding Directed 

Orders. The proposed rule change is 

available on the Exchange’s website at 

www.nyse.com, 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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Rule 7.31(f)(1) currently defines a 

Directed Order as a Limit Order with 

instructions to route on arrival at its 

limit price to a specified alternative 

trading system (‘‘ATS’’) with which the 

Exchange maintains an electronic 

linkage. Directed Orders are available 

for all securities eligible to trade on the 

Exchange. Directed Orders are not 

assigned a working time and do not 

interact with interest on the Exchange 

Book. Rule 7.31(f)(1) further provides 

that the ATS to which a Directed Order 

is routed is responsible for validating 

whether the order is eligible to be 

accepted, and if such ATS determines to 

reject the order, the order would be 

cancelled. 

Rule 7.31(f)(1)(A) provides that a 

Directed Order must be designated for 

the Exchange’s Core Trading Session. A 

Directed Order must be designated with 

a Time in Force modifier of IOC or Day 

and is routed to the specified ATS with 

such modifier. Rule 7.31(f)(1)(A) also 

provides that a Directed Order may not 

be designated with any other modifiers 

defined in Rule 7.31. 

Rule 7.31(f)(1)(B) provides that a 

Directed Order in a security to be 

opened in an initial public offering 

(‘‘IPO’’) or a Direct Listing will be 

rejected if received before the IPO 

Auction or Direct Listing Auction 

concludes. 

Rule 7.31(f)(1)(C) provides that an 

incoming Directed Order will be 

rejected if received during a trading halt 

or pause. 

Rule 7.31(f)(1)(D) provides that a 

request to cancel a Directed Order 

designated Day is routed to the ATS to 

which the order was routed. 

Proposed Rule Change 

The Exchange proposes to amend 

Rule 7.31(f)(1) to provide for Directed 

Orders routed to an algorithm. 

Specifically, the Exchange proposes to 

permit Directed Orders to be designated 

to route to a broker-dealer algorithm 

with which the Exchange has 

established connectivity. The Exchange 

proposes to route Directed Orders only 

to a range of broker-dealer algorithms 

that have completed its onboarding 

process and established routing 

connectivity with the Exchange.5 Any 

FINRA-registered broker-dealer 6 is 

eligible to complete this process, which 

is intended, among other things, to 

ensure that algorithm providers attest to 

compliance with applicable Exchange 

rules, FINRA rules, and federal 

securities laws and regulations and to 

confirm that they can meet the 

applicable technical specifications to 

connect to the Exchange. Algorithm 

providers will also be required to enter 

into routing agreements with the 

Exchange’s routing broker, Archipelago 

Securities LLC (‘‘ArcaSec’’), to facilitate 

ArcaSec’s routing of Directed Orders on 

behalf of member organizations to 

designated algorithms.7

As proposed, the member 

organization entering the Directed Order 

would select the algorithm to which the 

Directed Order would be routed and 

provide instructions for the handling of 

such order by the routing destination. 

Member organizations would select 

from the available algorithm providers 

without any input or control from the 

Exchange. As with the existing Directed 

Order routed to an ATS, the Exchange’s 

only role would be to route the order to 

the designated algorithm as instructed. 

Neither the Exchange nor ArcaSec will 

make any routing decisions and will 

only route Directed Orders to valid 

destinations as instructed by the 

member organization. The Exchange 

will not have any visibility into where 

or how a Directed Order is executed by 

an algorithm, including whether that 


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8Exchange systems would not be able to 

determine, upon receipt of a routed order, whether 

such order had originated in whole or in part from 

an algorithm or originated at the Exchange as a 

Directed Order to an algorithm. 

9The Exchange believes that this proposed rule 

change could be particularly beneficial for smaller 

member organizations that cannot, for various 

reasons including cost, connect to multiple 

algorithm providers on their own. 

10See NYSE American LLC (‘‘NYSE American’’) 

Rule 7.31E(f)(1); NYSE Arca, Inc. (‘‘NYSE Arca’’) 

Rule 7.31–E(f)(1); NYSE Chicago, Inc. (‘‘NYSE 

Chicago’’) Rule 7.31(f)(1); NYSE National, Inc. 

(‘‘NYSE National’’) Rule 7.31(f)(1). NYSE American, 

NYSE Arca, NYSE Chicago, and NYSE National also 

offer variations of the Primary Only Order, 

including the Primary Only Until 9:45 Order, which 

is a Limit or Inside Limit Order that, on arrival and 

until 9:45 a.m. Eastern Time, routes to the primary 

listing market, and the Primary Only Until 3:55 

Order, which is a Limit or Inside Limit Order 

entered on the Exchange until 3:55 p.m. Eastern 

Time, after which time the order is cancelled on the 

Exchange and routed to the primary listing market. 

See NYSE American Rules 7.31E(f)(2) and (f)(3); 

NYSE Arca Rules 7.31–E(f)(2) and (f)(3); NYSE 

Chicago Rules 7.31(f)(2) and (f)(3); NYSE National 

Rules 7.31(f)(2) and (f)(3). The Exchange further 

notes similarities between the Directed Order and 

various order types and routing options offered by 

other equities exchanges. See, e.g., Nasdaq Stock 

Market LLC (‘‘Nasdaq’’), Equity 4, Equity Trading 

Rules, Rule 4758(a)(ix) (defining the Nasdaq 

Directed Order as an order designed to use a routing 

strategy under which the order is directed to an 

automated trading center other than Nasdaq, as 

directed by the entering party, without checking the 

Nasdaq Book); Cboe EDGX Exchange, Inc. (‘‘EDGX’’) 

Rules 11.8(c)(7) (defining the Routing/Directed ISO 

order type as an ISO that bypasses the EDGX system 

and is immediately routed by EDGX to a specified 

away trading center for execution) and 11.11(g)(2) 

order may be routed back to the 

Exchange or one of its affiliated 

exchanges, at the time of execution.8

Consistent with current rules governing 

the Directed Order to an ATS, a Directed 

Order designated for an algorithm 

would not interact with the Exchange 

Book, and the Exchange would not 

exercise any discretion in determining 

where the order is routed. Similarly, the 

algorithm selected by the member 

organization entering the Directed Order 

would be responsible for validating 

whether the order is eligible to be 

accepted, and if the algorithm 

determines to reject the order, the 

Directed Order would be cancelled. 

To effect this change, the Exchange 

first proposes to amend the definition of 

a Directed Order in Rule 7.31(f)(1) to 

provide that a Directed Order is a Limit 

Order with instructions to route on 

arrival to an ATS or algorithm with 

which the Exchange maintains an 

electronic linkage. Directed Orders will 

continue to be available for all securities 

eligible to trade on the Exchange and 

will not be assigned a working time or 

interact with interest on the Exchange 

Book. The Exchange further proposes to 

amend Rule 7.31(f)(1) to specify that the 

ATS or algorithm to which the Directed 

Order is routed, as applicable, will 

validate whether the order is eligible to 

be accepted, and if it rejects the order, 

the order will be cancelled. 

In amending Rule 7.31(f)(1) to allow 

for the routing of Directed Orders to an 

algorithm, the Exchange also proposes 

to permit Directed Orders designated to 

route to an algorithm to be Market 

Orders. The Exchange believes that 

permitting Directed Orders routed to 

algorithms to be entered as Market 

Orders would facilitate market 

participants’ existing functional 

workflows when routing to algorithms. 

A member organization routing a 

Directed Order to an algorithm may, for 

example, wish to send a parent order 

with Market Order instructions for 

execution via smaller limited child 

orders over several hours of the trading 

day. 

The Exchange next proposes to delete 

the first sentence of current Rule 

7.31(f)(1)(A), which provides that 

Directed Orders must be designated for 

the Exchange’s Core Trading Session. 

Consistent with this proposed change, 

the Exchange also proposes to delete 

current Rule 7.34(c)(1)(E), which 

provides that Directed Orders 

designated for the Early Trading Session 

will be rejected, and to make a 

conforming change in Rule 7.34(c)(1) to 

reference ‘‘paragraphs (c)(1)(A) through 

(D)’’ to reflect the deletion of Rule 

7.34(c)(1)(E). The Exchange’s proposal 

to permit Directed Orders to be routed 

during any trading session is intended 

to allow the routing destinations 

receiving such orders to determine 

whether they are eligible to trade in a 

given trading session. The Exchange 

will pass on the instructions provided 

by the member organization entering the 

Directed Order, and the routing 

destination will be responsible for 

validating whether the order will be 

accepted or rejected, as contemplated by 

Rule 7.31(f)(1). 

The Exchange further proposes to 

amend Rule 7.31(f)(1)(A) to provide that 

a Directed Order to an ATS must be 

designated as IOC or Day and will be 

routed as such, whereas a Directed 

Order to an algorithm may only be 

designated as Day and routed as such, 

consistent with market participants’ 

existing functional workflows when 

routing to algorithms. The Exchange 

also proposes to clarify language 

currently in Rule 7.31(f)(1)(A) providing 

that Directed Orders may not be 

combined with any other modifiers set 

forth in this Rule, to instead provide 

that Directed Orders will not be 

processed with any other modifiers set 

forth in this Rule. 

The Exchange next proposes to amend 

Rule 7.31(f)(1)(C) to specify that, during 

a trading halt or pause, Directed Orders 

routed to an ATS would continue to be 

rejected, whereas Directed Orders to an 

algorithm would be routed as specified. 

The Exchange proposes that Directed 

Orders routed to an algorithm would be 

routed during a trading halt or pause, 

consistent with market participants’ 

existing functional workflows when 

routing to algorithms. The Exchange 

believes that the proposed elimination 

of certain restrictions on Directed 

Orders currently set forth in Rules 

7.31(f)(1)(A) and (C) would provide 

member organizations with additional 

flexibility when entering Directed 

Orders, which would remain subject to 

the rules and specifications of the 

destinations to which such orders are 

routed. As provided in Rule 7.31(f)(1), 

as amended, the ATS or algorithm to 

which a Directed Order is routed would 

validate whether the order is eligible to 

be accepted. 

Finally, the Exchange proposes to 

amend Rule 7.31(f)(1)(D) to provide that 

a request to cancel a Directed Order 

designated Day will be routed to the 

ATS or algorithm to which the order 

was routed. 

The proposed change would provide 

member organizations with a technology 

solution to leverage their existing 

Exchange connectivity to route Directed 

Orders to either an ATS or algorithm, 

thereby affording them increased access 

to execution tools and enhanced 

operational efficiency.9 The Exchange 

believes the proposed change would 

offer member organizations greater 

choice and flexibility, and further 

believes that the proposed change could 

create efficiencies for member 

organizations by enabling them to send 

orders that they wish to route to an 

alternate destination through the 

Exchange, thereby leveraging order 

entry protocols and specifications 

already configured for their interactions 

with the Exchange. The Exchange notes 

that Directed Orders designated to route 

to an algorithm would generally operate 

in the same manner as Directed Orders 

that are currently eligible to be routed 

to an ATS selected by the member 

organization entering the order (except 

as proposed above). The Exchange 

further believes that the Directed Order 

would continue to provide functionality 

similar to order types with specific 

execution instructions (such as the 

Auction Only Order defined in NYSE 

Rule 7.31(c)) or routing instructions 

(such as Primary Only Orders that route 

to the primary market, as available on 

the Exchange’s affiliated equities 

exchanges).10


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(providing for the DRT routing option, in which an 

order is routed to an alternative trading system as 

instructed); Cboe EDGA Exchange, Inc. (‘‘EDGA’’) 

Rules 11.8(c)(7) (defining the Routing/Directed ISO 

order type as an ISO that bypasses the EDGA system 

and is immediately routed by EDGA to a specified 

away trading center for execution) and 11.11(g)(2) 

(providing for the DRT routing option, in which an 

order is routed to an alternative trading system as 

instructed); Cboe BZX Exchange, Inc. (‘‘BZX’’) 

Rules 11.13(b)(3)(D) (providing for the DRT routing 

option, in which an order is routed to an alternative 

trading system as instructed) and 11.13(b)(3)(F) 

(defining the Directed ISO routing option, under 

which an ISO order would bypass the BZX system 

and be sent to a specified away trading center); 

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

11.13(b)(3)(D) (providing for the DRT routing 

option, in which an order is routed to an alternative 

trading system as instructed) and 11.13(b)(3)(F) 

(defining the Directed ISO routing option, under 

which an ISO order would bypass the BYX system 

and be sent to a specified away trading center). The 

Exchange also believes that the Directed Order 

would provide functionality similar to the C–LNK 

routing strategy formerly offered by EDGA, in 

which C–LNK orders bypassed EDGA’s local book 

and routed directly to a specified Single Dealer 

Platform destination. See Securities Exchange Act 

Release No. 82904 (March 20, 2018), 83 FR 12995 

(March 26, 2018) (SR–CboeEDGA–2018–004) 

(Notice of Filing and Immediate Effectiveness of a 

Proposed Rule Change To Expand an Offering 

Known as Cboe Connect To Provide Connectivity to 

Single-Dealer Platforms Connected to the 

Exchange’s Network and To Propose a Per Share 

Executed Fee for Such Service). 

11The Exchange will provide information 

regarding the algorithm(s) to which a Directed 

Order may be designated to route in technical 

specifications and/or by Trader Update. 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(5). 

Because of the technology changes 

associated with this proposed rule 

change, the Exchange will announce the 

implementation date by Trader 

Update.11 Subject to approval of this 

proposed rule change, the Exchange will 

implement the proposed change at the 

earliest in the fourth quarter of 2024 or 

at the latest in the second quarter of 

2025. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934,12 in 

general, and furthers the objectives of 

Section 6(b)(5),13 in particular, because 

it is 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 

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. 

The Exchange believes that the 

proposed rule change is designed to 

remove impediments to and perfect the 

mechanism of a free and open market 

and promote just and equitable 

principles of trade because the Directed 

Order, as proposed, would offer member 

organizations access to additional 

execution tools and trading 

opportunities by permitting them to 

designate orders submitted to the 

Exchange to be routed directly to a 

specified algorithm for execution. In 

particular, the Exchange believes that 

amending the Directed Order to include 

routing to an algorithm would provide 

greater choice and flexibility for 

member organizations and their 

customers. The Exchange further 

believes that the proposed change 

would remove impediments to and 

perfect the mechanism of a free and 

open market by offering member 

organizations a technology solution that 

would provide them with the option to 

send orders that they wish to route to 

an alternate destination for execution 

through the Exchange, thereby 

promoting operational efficiencies 

through leveraging their existing 

protocols and specifications for 

Exchange connectivity. Finally, the 

Exchange notes that the proposed 

functionality is not novel as a Directed 

Order to an algorithm would otherwise 

generally function in the same way as 

the existing Directed Order to an ATS, 

and the proposed change would simply 

facilitate member organizations’ existing 

ability to direct orders to be executed 

via an algorithm. 

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 believes that the proposed 

change to the rules governing Directed 

Orders would promote competition 

because it would enhance an order type 

on the Exchange that would provide 

access to additional execution tools and 

trading opportunities for market 

participants. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) by order approve or disapprove 

the proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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– 

NYSE–2024–67 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–NYSE–2024–67. 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 


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14 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. 

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. 

5The 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). 

6See Securities Exchange Act Release No. 99026 

(November 28, 2023), 88 FR 84023 (December 1, 

2023) (SR–CboeEDGX–2023–070) and Securities 

Exchange Act Release No. 100352 (June 17, 2024), 

89 FR 52521 (June 24, 2024) (SR–CboeEDGX–2024– 

033). 

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

submissions should refer to file number 

SR–NYSE–2024–67 and should be 

submitted on or before November 25, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–25530 Filed 11–1–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101466; File No. SR– 

CboeEDGX–2024–069] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule 

October 29, 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 EDGX Exchange, Inc. 

(the ‘‘Exchange’’ or ‘‘EDGX’’) 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 EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX Options’’) 

proposes to amend its Fee Schedule. 

The text of the proposed rule change is 

provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

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

options/regulation/rule_filings/edgx/), 

at the Exchange’s Office of the 

Secretary, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to update its 

Fee Schedule to provide a temporary 

20% discount on fees assessed to 

Exchange Members 3 and non-Members 

that purchase $20,000 or more of ad hoc 

purchases of EDGX Options 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 options 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 

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 $500. 

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 equities platform 

(‘‘EDGX Equities’’) and affiliated 

equities and options exchanges (i.e., 

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

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

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

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

EDGA Exchange, Inc. (‘‘EDGA’’) 

(collectively, ‘‘Affiliates’’) also offer 

similar data products. Particularly, each 

of the Exchange’s Affiliates offer a daily 

and historical archive of their depth of 

book real-time feed with execution 

information based on their trading 

activity that is substantially similar to 

the information provided by the 

Exchange through its Depth Data 

products. 

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 temporary 20% discount for 

ad-hoc purchases of Historical Depth 

Data of $20,000 or more.5 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.6

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

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

the Exchange believes the proposed rule 


lotter on DSK11XQN23PROD with NOTICES1