Federal Register / Vol. 89, No. 225 / Thursday, November 21, 2024 / Notices 92243 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The proposed rule change establishing the 

NYSE Arca Agg Lite data feed was immediately 

effective on February 27, 2024. See Securities 

Exchange Act Release No. 99713 (March 12, 2024), 

89 FR 19381 (March 18, 2024) (SR–NYSEARCA– 

2024–22) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change To Establish 

the NYSE Arca Aggregated Lite Market Data Feed). 

5The Exchange originally filed to amend the Fee 

Schedule on May 13, 2024 (SR–NYSEARCA–2024– 

39). On July 11, 2024, the Exchange withdrew SR– 

NYSEARCA–2024–39 and replaced it with SR– 

NYSEARCA–2024–60. On September 6, the 

Exchange withdrew SR–NYSEARCA–2024–60 and 

replaced it with SR–NYSEARCA–2024–75. On 

November 4, 2024, the Exchange withdrew SR– 

NYSEARCA–2024–75 and replaced it with this 

filing. 

6See Securities Exchange Act Release No. 51808 

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

(File No. S7–10–04) (Final Rule) (‘‘Regulation 

NMS’’). 

7See Securities Exchange Act Release No. 61358, 

75 FR 3594, 3597 (January 21, 2010) (File No. S7– 

02–10) (Concept Release on Equity Market 

Structure). 

8See Cboe U.S Equities Market Volume 

Summary, available at https://markets.cboe.com/us/ 

equities/market_share. See generally https://

www.sec.gov/fastanswers/divisionsmarket

regmrexchangesshtml.html. 

9See FINRA ATS Transparency Data, available at 

https://otctransparency.finra.org/otctransparency/ 

AtsIssueData. A list of alternative trading systems 

registered with the Commission is available at 

https://www.sec.gov/foia/docs/atslist.htm. 

10See Cboe Global Markets, U.S. Equities Market 

Volume Summary, available at http://

markets.cboe.com/us/equities/market_share/. 

necessary to discharge Applicant’s 

obligations. In connection with any 

such default, the Applicant shall notify 

the SEC in writing of such default 

promptly upon ascertaining that a 

default has occurred. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

J. Matthew DeLesDernier, 

Deputy Secretary. 

[FR Doc. 2024–27229 Filed 11–20–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101636; File No. SR– 

NYSEARCA–2024–94] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Establish Fees for the 

NYSE Arca Aggregated Lite Data Feed 

November 15, 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 

November 4, 2024, NYSE Arca, Inc. 

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

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. 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 establish 

fees for the NYSE Arca Aggregated Lite 

data feed. 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 

The Exchange proposes to amend the 

NYSE Arca Equities Proprietary Market 

Data Fees Schedule (‘‘Fee Schedule’’) 

and establish fees for the NYSE Arca 

Aggregated Lite (‘‘NYSE Arca Agg Lite’’) 

data feed,4 effective November 4, 2024.5

In summary, the NYSE Arca Agg Lite 

is a NYSE Arca-only frequency-based 

depth of book market data feed of the 

NYSE Arca’s limit order book for up to 

ten (10) price levels on both the bid and 

offer sides of the order book for 

securities traded on the Exchange and 

for which the Exchange reports quotes 

and trades under the Consolidated Tape 

Association (‘‘CTA’’) Plan or the 

Nasdaq/UTP Plan. The NYSE Arca Agg 

Lite is a compilation of limit order data 

that the Exchange provides to vendors 

and subscribers. The NYSE Arca Agg 

Lite includes partial depth of book order 

data as well as security status messages. 

The security status message informs 

subscribers of changes in the status of a 

specific security, such as trading halts, 

short sale restriction, etc. In addition, 

the NYSE Arca Agg Lite includes order 

imbalance information prior to the 

opening and closing of trading. 

Background 

The Exchange operates in a highly 

competitive market. The Commission 

has repeatedly expressed its preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. 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.’’ 6

While Regulation NMS has enhanced 

competition, it has also fostered a 

‘‘fragmented’’ market structure where 

trading in a single stock can occur 

across multiple trading centers. When 

multiple trading centers compete for 

order flow in the same stock, the 

Commission has recognized that ‘‘such 

competition can lead to the 

fragmentation of order flow in that 

stock.’’ 7 Indeed, cash equity trading is 

currently dispersed across 16 

exchanges,8 numerous alternative 

trading systems,9 and broker-dealer 

internalizers and wholesalers, all 

competing for order flow. Based on 

publicly-available information, no 

single exchange currently has more than 

20% market share (whether including or 

excluding auction volume).10

Proposed NYSE Arca Agg Lite Data Feed 

Fees 

The Exchange proposes to establish 

the fees listed below for the NYSE Arca 

Agg Lite data feed. The Exchange 

proposes to charge fees for the same 

categories of market data use as its 

affiliated exchanges (namely, NYSE, 

NYSE American and NYSE National) 

currently charge. The Exchange believes 

that adopting the same fee structure as 

its affiliated exchanges would reduce 

administrative burdens on market data 

subscribers that also currently subscribe 

to market data feeds from the 

Exchange’s affiliates. 

1. Access Fee. For the receipt of 

access to the NYSE Arca Agg Lite data 

feed, the Exchange proposes to charge 

$1,500 per month. This proposed 

Access Fee would be charged to any 

data recipient that receives the NYSE 

Arca Agg Lite data feed. Data recipients 

that only use display devices to view 

NYSE Arca Agg Lite market data and do 


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92244 Federal Register / Vol. 89, No. 225 / Thursday, November 21, 2024 / Notices 

11See infra, note 15. 

12See Endnote 1 to the NYSE Proprietary Market 

Data Fees, available here: https://www.nyse.com/ 

publicdocs/nyse/data/NYSE_Market_Data_Fee_

Schedule.pdf; Endnote 1 to the NYSE American 

LLC Equities Proprietary Market Data Fees, 

available here: https://www.nyse.com/publicdocs/ 

nyse/data/NYSE_American_Equities_Market_Data_

Fee_Schedule.pdf; Endnote 1 to the NYSE National 

Equities Proprietary Market Data Fees, available 

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

NYSE_National_Market_Data_Fee_Schedule.pdf; 

not separately receive a data feed would 

not be charged an Access Fee. The 

proposed Access Fee would be charged 

only once per firm. 

2. User Fees. The Exchange proposes 

to charge a Professional User Fee (Per 

User) of $30 per month and a NonProfessional User Fee (Per User) of $4 

per month. These user fees would apply 

to each display device that has access to 

the NYSE Arca Agg Lite data feed. 

3. Redistribution Fee. For 

redistribution of the NYSE Arca Agg 

Lite data feed, the Exchange proposes to 

establish a fee of $250 per month. The 

proposed Redistribution Fee would be 

charged to any Redistributor of the 

NYSE Arca Agg Lite data feed, which is 

defined to mean a vendor or any person 

that provides a real-time NYSE Arca 

market data product externally to a data 

recipient that is not its affiliate or 

wholly-owned subsidiary, or to any 

system that an external data recipient 

uses, irrespective of the means of 

transmission or access. The proposed 

Redistribution Fee would be charged 

only once per Redistributor account. As 

an incentive to potential Redistributors 

to subscribe to the NYSE Arca Agg Lite 

data feed, the Exchange proposes to 

waive the Access Fee and Redistribution 

Fee for a Redistributor if the 

Redistributor provides NYSE Arca Agg 

Lite externally to at least one data feed 

recipient and reports such data feed 

recipient or recipients to the Exchange. 

For example, a Redistributor that 

subscribes to the NYSE Arca Agg Lite 

data feed will have the Access Fee and 

Redistribution Fee waived if such 

Redistributor provides NYSE Arca Agg 

Lite externally to at least one data feed 

recipient and reports such data feed 

recipient to the Exchange. 

By targeting this proposed fee waiver 

to Redistributors that provide external 

distribution of NYSE Arca Agg Lite, the 

Exchange believes that this would 

provide an incentive for Redistributors 

to make the NYSE Arca Agg Lite market 

data product available to its customers. 

Specifically, if a data recipient is 

interested in subscribing to NYSE Arca 

Agg Lite and relies on a Redistributor to 

obtain market data products from the 

Exchange, that data recipient would 

need its Redistributor to subscribe to 

and redistribute NYSE Arca Agg Lite. 

The Exchange believes that this 

proposed fee waiver for Redistributors 

of NYSE Arca Agg Lite would provide 

an incentive for Redistributors to make 

NYSE Arca Agg Lite available to their 

customers, which will increase the 

availability of the Exchange’s market 

data products to a larger potential 

population of data recipients. 

Further, the Exchange proposes to 

adopt a credit that would be applicable 

to Redistributors that provide external 

distribution of NYSE Arca Agg Lite to 

Professional and Non-Professional 

Users. As proposed, such Redistributors 

would receive a credit equal to the 

amount of the monthly Professional 

User and Non-Professional User Fees for 

such external distribution, up to a 

maximum of the combination of the 

Access Fee and Redistribution Fee for 

NYSE Arca Agg Lite that the 

Redistributor would otherwise be 

required to pay to the Exchange. For 

example, a Redistributor that reports 

external Professional Users and NonProfessional Users in a month totaling 

$1,750 or more would receive a 

maximum credit of $1,750 for that 

month, which could effectively reduce 

its monthly fee for access and 

redistribution to zero. If that same 

Redistributor were to report external 

User quantities in a month totaling $600 

of monthly usage, that Redistributor 

would receive a credit of $600. The 

Exchange believes the proposed credit 

would provide Redistributors with an 

incentive to increase their redistribution 

of NYSE Arca Agg Lite because the 

credit they would be eligible to receive 

would increase if they report additional 

external User quantities. 

4. Enterprise Fees. 

The Exchange proposes to establish 

an enterprise license that will reduce 

Exchange fees and administrative costs 

for subscribers that disseminate NYSE 

Arca Agg Lite. Subscribers that are 

broker-dealers will be able to distribute 

the NYSE Arca Agg Lite data feed for 

display usage to an unlimited number of 

non-professional users for a monthly fee 

of $35,000, with an opportunity to lower 

that fee to $31,500 per month if they 

contract for twelve months of service in 

advance. Alternatively, subscribers that 

are broker-dealers will be able to 

distribute the NYSE Arca Agg Lite data 

feed for display usage to an unlimited 

number of recipients (professional users 

and non-professional users) for a 

monthly fee of $110,000, with an 

opportunity to lower that fee to $99,000 

per month if they contract for twelve 

months of service in advance. 

As proposed, the NYSE Arca Agg Lite 

data feed may be distributed pursuant to 

the proposed market data enterprise 

license only for display usage and in the 

context of a brokerage relationship with 

a broker-dealer through such brokerdealer’s own devices. Purchase of an 

enterprise license would eliminate per 

User subscriber fees for NYSE Arca Agg 

Lite. Further, the Exchange proposes to 

waive the Access Fee and the 

Redistribution Fee for NYSE Arca Agg 

lite for Redistributors that pay either the 

Non-Professional Enterprise Fee or the 

Professional and Non-Professional 

Enterprise Fee. The Exchange believes 

the proposed fee waiver would provide 

an incentive for Redistributors to 

subscribe to the NYSE Arca Agg Lite 

market data product at the enterprise 

level to reduce the fees it would pay to 

the Exchange and without having to 

report the number of users that receive 

the data feed from the Redistributor. 

Subscribers that intend to purchase a 

market data enterprise license for at 

least twelve months may elect to 

purchase this product in advance for a 

monthly fee of $31,500 for distribution 

of NYSE Arca Agg Lite to an unlimited 

number of non-professional users, or 

$99,000 per month for distribution to an 

unlimited number of professional users 

and non-professional users. This feature 

is intended to simplify cost projections 

and budgeting for both subscribers and 

the Exchange. Subscribers that elect not 

to purchase this particular feature will 

nevertheless be able to obtain all of the 

market data information offered by 

NYSE Arca Agg Lite by paying the 

standard fee of $35,000 per month for 

distribution of NYSE Arca Agg Lite to 

an unlimited number of nonprofessional users, or $110,000 per 

month for distribution to an unlimited 

number of professional users and nonprofessional users. Subscribers that elect 

to pay the monthly fee will be able to 

switch to the annual fee at any time, and 

those that elect to purchase the annual 

contract would be able to change to the 

monthly contract, with notice, at the 

end of the twelve-month period. 

The Exchange believes that the 

proposed market data enterprise license 

will reduce exchange fees, lower 

administrative costs for subscribers, and 

help expand the availability of market 

information to investors, and thereby 

increase participation in financial 

markets. 

5. Non-Display Use Fees. 

The Exchange proposes to establish 

non-display fees 11 for the NYSE Arca 

Agg Lite data feed that are based on the 

non-display use categories charged by 

NYSE, NYSE American, NYSE National, 

the CTA, and the UTP Plan for nondisplay use.12 Non-display use would 


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Federal Register / Vol. 89, No. 225 / Thursday, November 21, 2024 / Notices 92245 

Endnote 8 to the Schedule of Market Data Charges 

for the CTA, available here: https://

www.ctaplan.com/publicdocs/ctaplan/ 

notifications/trader-update/Schedule%20Of%20

Market%20Data%20Charges%20- 

%20January%201,%202015.pdf; and Non-Display 

Usage Fees as set forth in the UTP Plan Fee 

Schedule and Non-Display Policy, available here: 

http://utpplan.com/DOC/Datapolicies.pdf. See, e.g., 

Securities Exchange Act Release Nos. 69315 (April 

5, 2013), 78 FR 21668 (April 11, 2013) (SR– 

NYSEArca–2013–37) and 73011 (September 5, 

2014), 79 FR 54315 (September 11, 2014) (SR– 

NYSEARCA–2014–93). 

13 Data vendors currently report a unique Vendor 

Account Number for each location at which they 

provide a data feed to a data recipient. The 

Exchange considers each Vendor Account Number 

a location. For example, if a data recipient has five 

Vendor Account Numbers, representing five 

locations, for the receipt of the NYSE Arca Agg Lite 

data feed, that data recipient will pay the Multiple 

Data Feed fee with respect to three of the five 

locations. 

14See Fee Schedule. 

mean accessing, processing, or 

consuming the NYSE Arca Agg Lite data 

feed delivered directly or through a 

Redistributor, for a purpose other than 

in support of a data recipient’s display 

or further internal or external 

redistribution (‘‘Non-Display Use’’). 

Non-Display Use would include trading 

uses such as high frequency or 

algorithmic trading as well as any 

trading in any asset class, automated 

order or quote generation and/or order 

pegging, price referencing for 

algorithmic trading or smart order 

routing, operations control programs, 

investment analysis, order verification, 

surveillance programs, risk 

management, compliance, and portfolio 

management. 

Under the proposal, for Non-Display 

Use of NYSE Arca Agg Lite, there would 

be three categories of, and fees 

applicable, to data recipients. One, two, 

or three categories of Non-Display Use 

may apply to a data recipient. 

• As proposed, the Category 1 Fee 

would be $4,500 per month and would 

apply when a data recipient’s NonDisplay Use of the NYSE Arca Agg Lite 

data feed is on its own behalf, not on 

behalf of its clients. 

• As proposed, Category 2 Fees 

would be $4,500 per month and would 

apply to a data recipient’s Non-Display 

Use of the NYSE Arca Agg Lite data feed 

on behalf of its clients. 

• As proposed, Category 3 Fees 

would be $4,500 per month and would 

apply to a data recipient’s Non-Display 

Use of the NYSE Arca Agg Lite data feed 

for the purpose of internally matching 

buy and sell orders within an 

organization, including matching 

customer orders for a data recipient’s 

own behalf and/or on behalf of its 

clients. This category would apply to 

Non-Display Use in trading platforms, 

such as, but not restricted to, alternative 

trading systems (‘‘ATSs’’), broker 

crossing networks, broker crossing 

systems not filed as ATSs, dark pools, 

multilateral trading facilities, exchanges 

and systematic internalization systems. 

A data recipient will be charged $4,500 

per month for each platform on which 

it uses the Non-Display data internally 

to match buy and sell orders, up to a cap 

of $13,500 per month; even if the data 

recipient uses the NYSE Arca Agg Lite 

data feed for more than three platforms, 

it will not pay more than $13,500 for 

such Category 3 use per month. 

The description of the three nondisplay use categories is set forth in the 

Fee Schedule in endnote 1 and that 

endnote would be referenced in the 

NYSE Arca Agg Lite data feed fees on 

the Fee Schedule. The text in the 

endnote would remain unchanged. 

Data recipients that receive the NYSE 

Arca Agg Lite data feed for Non-Display 

Use would be required to complete and 

submit a Non-Display Use Declaration 

before they would be authorized to 

receive the feed. A firm subject to 

Category 3 Fees would be required to 

identify each platform that uses the 

NYSE Arca Agg Lite data feed for a 

Category 3 Non-Display Use basis, such 

as ATSs and broker crossing systems not 

registered as ATSs, as part of the NonDisplay Use Declaration. 

6. Non-Display Use Declaration Late 

Fee. Data recipients that receive the 

NYSE Arca Agg Lite data feed for NonDisplay Use would be required to 

complete and submit a Non-Display Use 

Declaration before they would be 

authorized to receive the feed. 

Beginning in 2025, NYSE Arca Agg Lite 

data feed recipients would be required 

to submit, by January 31 of each year, 

the Non-Display Use Declaration. The 

requirement to submit a Non-Display 

Use Declaration applies to all real-time 

NYSE Arca data feed product recipients. 

The Exchange proposes to charge a NonDisplay Use Declaration Late Fee of 

$1,000 per month to any data recipient 

that pays an Access Fee for the NYSE 

Arca Agg Lite data feed that has failed 

to timely complete and submit a NonDisplay Use Declaration. Specifically, 

with respect to the Non-Display Use 

Declaration due by January 31 of each 

year, the Non-Display Use Declaration 

Late Fee would apply to data recipients 

that fail to complete and submit the 

Non-Display Use Declaration by the 

January 31 due date, and would apply 

beginning February 1 and for each 

month thereafter until the data recipient 

has completed and submitted the 

annual Non-Display Use Declaration. 

The proposed Non-Display Use 

Declaration Late Fee applicable to NYSE 

Arca Agg Lite data feed would be set 

forth in endnote 2 on the Fee Schedule. 

As proposed, endnote 2 would be 

amended with the proposed addition of 

the following new text: ‘‘The NonDisplay Declaration Late Fee will apply, 

beginning in 2025, to NYSE Arca 

Aggregated Lite data recipients that fail 

to complete and submit the annual NonDisplay Use Declaration by the January 

31st due date, and applies beginning 

February 1st and for each month 

thereafter until the data recipient has 

completed and submitted the annual 

Non-Display use Declaration.’’ 

In addition, if a data recipient’s use of 

the NYSE Arca Agg Lite data feed 

changes at any time after the data 

recipient submits a Non-Display Use 

Declaration, the data recipient must 

inform the Exchange of the change by 

completing and submitting at the time 

of the change an updated declaration 

reflecting the change of use. 

7. Multiple Data Feed Fee. The 

Exchange proposes to establish a 

monthly fee, the ‘‘Multiple Data Feed 

Fee,’’ that would apply to data 

recipients that take a data feed for a 

market data product in more than two 

locations. Data recipients taking the 

NYSE Arca Agg Lite data feed in more 

than two locations would be charged 

$200 per additional location per month. 

No new reporting would be required.13

8. Three-Month Fee Waiver. The 

Exchange currently provides a onemonth free trial to any firm that 

subscribes to a particular NYSE Arca 

market data product for the first time. 

Under the current one-month trial, a 

first-time subscriber is not charged the 

Access Fee, Non-Display Fee, any 

applicable Professional and NonProfessional User Fee and 

Redistribution Fee for one calendar 

month.14 The Exchange now proposes 

an additional three-month fee waiver for 

any Redistributor that subscribes to a 

particular NYSE Arca market data 

product for the first time for external 

redistribution. As proposed, a first-time 

Redistributor would be any firm that has 

not previously subscribed to and 

externally redistributed a particular 

NYSE Arca market data product listed 

on the Fee Schedule. As proposed, a 

first-time Redistributor that subscribes 

to a particular NYSE Arca market data 

product would not be charged the 

Access Fee and the Redistribution Fee 

for that product for three calendar 

months. Any other fees, including but 

not limited to, Non-Display Fee, any 

applicable Professional and NonProfessional User Fee, and Enterprise 

Fee would be billable after the first 

calendar month after a first-time 


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92246 Federal Register / Vol. 89, No. 225 / Thursday, November 21, 2024 / Notices 

15The Exchange does not anticipate that data 

recipients would use NYSE Arca Agg Lite for nondisplay purpose. However, the Exchange is 

adopting Non-Display use fees so that the proposed 

fees for NYSE Arca Agg Lite are consistent with the 

Exchange’s fee structure for its other proprietary 

market data products. 

16See NYSE Arca Equities Proprietary Market 

Data Fees at https://www.nyse.com/publicdocs/ 

nyse/data/NYSE_Arca_Equities_Proprietary_Data_

Fee_Schedule.pdf. 

17 15 U.S.C. 78f(b). 

18 15 U.S.C. 78f(b)(4), (5). 

19See Regulation NMS Adopting Release, 70 FR 

37495, at 37499. 

20NetCoalition v. SEC, 615 F.3d 525, 535 (D.C. 

Cir. 2010) (‘‘NetCoalition I’’) (quoting H.R. Rep. No. 

94–229 at 92 (1975), as reprinted in 1975 

U.S.C.C.A.N. 323). 

21 Id. at 535. 

22See Securities Exchange Act Release No. 34– 

90217 (October 16, 2020), 85 FR 67392 (October 22, 

2020) (SR–NYSENAT–2020–05) (‘‘National IF 

Approval Order’’) (internal quotation marks 

omitted), quoting Securities Exchange Act Release 

No. 59039 (December 2, 2008), 73 FR 74770, 74781 

(December 9, 2008). 

23NetCoalition I, 615 F.3d at 544 (internal 

quotation omitted). 

Redistributor subscribes to a particular 

NYSE Arca market data product. For 

example, a first-time Redistributor that 

chooses to subscribe to NYSE Arca Agg 

Lite on September 24, 2024 would not 

be charged the Access Fee and the 

Redistribution Fee for the months of 

October, November, and December 

2024. The proposed fee waiver would be 

for the three calendar months following 

the date a Redistributor is approved to 

receive access to the particular NYSE 

Arca market data product. The 

Exchange would provide the threemonth fee waiver for each particular 

product to each Redistributor once. 

The Exchange believes that providing 

a three-month fee waiver to NYSE Arca 

market data products listed on the Fee 

Schedule would enable potential 

Redistributors to determine whether a 

particular NYSE Arca market data 

product is useful to their business 

models before fully committing to 

expend development and 

implementation costs related to the 

receipt of that product, and is intended 

to encourage increased use of the 

Exchange’s market data products by 

defraying some of the development and 

implementation costs Redistributors 

would ordinarily have to expend before 

using a product. The proposed threemonth fee waiver would also provide 

Redistributors with time to begin 

onboarding new clients prior to being 

liable to the Access Fee and the 

Redistribution Fee, allowing time to 

choose how to allocate costs and 

increase revenues to defray costs 

associated with providing a new feed to 

its customers. 

Application of Proposed Fees 

The Exchange is not required to make 

the NYSE Arca Agg Lite data feed 

available or to offer any specific pricing 

alternatives to any customers, nor is any 

firm required to purchase the NYSE 

Arca Agg Lite data feed. Firms that 

choose to purchase the NYSE Arca Agg 

Lite data feed do so for the primary 

goals of using it to increase their 

revenues, reduce their expenses, and in 

some instances to compete directly with 

the Exchange (including for order flow). 

Those firms are able to determine for 

themselves whether or not the NYSE 

Arca Agg Lite data feed or any other 

similar products are attractively priced. 

The Exchange believes the proposed 

rule change would provide an incentive 

both for data subscribers to subscribe to 

NYSE Arca Agg Lite and for 

Redistributors to subscribe to the 

product for purposes of providing 

external distribution of NYSE Arca Agg 

Lite. The Exchange believes that this 

proposed rule change also has the 

potential to attract new Redistributors 

for NYSE Arca Agg Lite. 

The proposed fee structure is not 

novel as it is based on the fee structure 

currently in place for the NYSE 

ArcaBook feed. The Exchange is 

proposing fees for the NYSE Arca Agg 

Lite data feed that are based on the 

existing fee structure and rates that data 

recipients already pay for the NYSE 

ArcaBook feed. Specifically, the fees for 

the NYSE ArcaBook feed—which like 

the NYSE Arca Agg Lite data feed, 

includes depth of book, auction 

imbalances, and security status 

messages—consist of an Access Fee of 

$2,000 per month, a Professional User 

Fee (Per User) of $60 per month, a NonProfessional User Fee (Per User) that 

ranges between $3 per month to $10 per 

month, Non-Display Fees 15 of $6,000 

per month for each of Categories 1, 2 

and 3, and a Redistribution Fee of 

$2,000 per month. The Exchange also 

charges a Non-Display Use Declaration 

Late Fee of $1,000 per month and a 

Multiple Data Feed Fee of $200 per 

month for NYSE ArcaBook.16

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,17

in general, and Sections 6(b)(4) and 

6(b)(5) of the Act,18 in particular, in that 

it provides an equitable allocation of 

reasonable fees among users and 

recipients of the data and is not 

designed to permit unfair 

discrimination among customers, 

issuers, and brokers. 

The Proposed Rule Change Is 

Reasonable 

In adopting Regulation NMS, the 

Commission granted SROs and brokerdealers increased authority and 

flexibility to offer new and unique 

market data to the public. The 

Commission has repeatedly expressed 

its preference for competition over 

regulatory intervention in determining 

prices, products, and services in the 

securities markets. Specifically, 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.’’ 19

With respect to market data, the 

decision of the United States Court of 

Appeals for the District of Columbia 

Circuit in NetCoalition v. SEC upheld 

the Commission’s reliance on the 

existence of competitive market 

mechanisms to evaluate the 

reasonableness and fairness of fees for 

proprietary 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.’’ 20

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.’ ’’ 21

More recently, the Commission 

confirmed that it applies a ‘‘marketbased’’ test in its assessment of market 

data fees, and that under that test: 

the Commission considers whether the 

exchange was subject to significant 

competitive forces in setting the terms of its 

proposal for [market data], including the 

level of any fees. If an exchange meets this 

burden, the Commission will find that its fee 

rule is consistent with the Act unless there 

is a substantial countervailing basis to find 

that the terms of the rule violate the Act or 

the rules thereunder.22

As discussed below, the Exchange 

believes that its proposed fees are 

constrained by competitive forces. 

As the D.C. Circuit recognized in 

NetCoalition I, ‘‘[n]o one disputes that 

competition for order flow is fierce.’’ 23

The court further noted that ‘‘no 

exchange possesses a monopoly, 

regulatory or otherwise, in the execution 

of order flow from broker dealers,’’ and 


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24 Id. 

25See Securities Exchange Act Release No. 61358, 

75 3594, 3597 (January 21, 2010) (File No. S7–02– 

10) (Concept Release on Equity Market Structure). 

26See Cboe Global Markets, U.S. Equities Market 

Volume Summary, available at http://

markets.cboe.com/us/equities/market_share/. 

27See FINRA ATS Transparency Data, available 

at https://otctransparency.finra.org/ 

otctransparency/AtsIssueData. A list of alternative 

trading systems registered with the Commission is 

available at https://www.sec.gov/foia/docs/ 

atslist.htm. 

28See Cboe Global Markets, U.S. Equities Market 

Volume Summary, available at http://

markets.cboe.com/us/equities/market_share/. 

29See LTSE Market Announcement: MA–2020– 

020, dated August 14, 2020, announcing LTSE 

production securities phase-in planned for August 

28, available here: https://assets-global.websitefiles.com/6462417e8db99f8baa06952c/ 

6462417e8db99f8baa0698e7_MA-2020-020__

Production_Securities_Launching_August_28_-_

Google_Docs.pdf and LTSE Market Announcement: 

MA–2020–025, available here: https://assetsglobal.website-files.com/ 

6462417e8db99f8baa06952c/ 

6462417e8db99f8baa069873_MA-2020-025.pdf. 

30As of October 29, 2020, MEMX is trading all 

NMS symbols. See https://info.memxtrading.com/ 

trader-alert-20-10-memx-trading-symbols-update/. 

31See MIAX Pearl Press release, dated September 

29, 2020, available here: https://

www.miaxoptions.com/sites/default/files/alert-files/ 

MIAX_Press_Release_09292020.pdf. 

32The Exchange notes that broker-dealers are not 

required to purchase proprietary market data to 

comply with their best execution obligations. See In 

the Matter of the Application of Securities Industry 

and Financial Markets Association for Review of 

Actions Taken by Self-Regulatory Organizations, 

Release Nos. 34–72182; AP–3–15350; AP–3–15351 

(May 16, 2014). Similarly, there is no requirement 

in Regulation NMS or any other rule that 

proprietary data be utilized for order routing 

decisions, and some broker-dealers and ATSs have 

chosen not to do so. 

33For example, in the National IF Approval 

Order, the Commission recognized that for some 

customers, the best bid and offer information from 

consolidated data feeds may function as a substitute 

for the NYSE National Integrated Feed product, 

which contains order by order information. See 

National IF Approval Order, supra note 22, at 67397 

[release p. 21] (‘‘[I]nformation provided by NYSE 

National demonstrates that a number of executing 

broker-dealers do not subscribe to the NYSE 

National Integrated Feed and executing brokerdealers can otherwise obtain NYSE National best 

bid and offer information from the consolidated 

data feeds.’’ (internal quotations omitted)). 

34See BZX Rule 11.22(m) BZX Summary Depth; 

BYX Rule 11.22(k) BYX Summary Depth; EDGA 

Rule 13.8(f) EDGA Summary Depth; and EDGX Rule 

13.8(f) EDGX Summary Depth. The Cboe Summary 

Depth offered by BZX, BYX, EDGA and EDGX are 

each a data feed that offers aggregated two-sided 

quotations for all displayed orders for up to five (5) 

price levels and contains the individual last sale 

information, market status, trading status and trade 

break messages. 

that an exchange ‘‘must compete 

vigorously for order flow to maintain its 

share of trading volume.’’ 24

As noted above, while Regulation 

NMS has enhanced competition, it has 

also fostered a ‘‘fragmented’’ market 

structure where trading in a single stock 

can occur across multiple trading 

centers. When multiple trading centers 

compete for order flow in the same 

stock, the Commission has recognized 

that ‘‘such competition can lead to the 

fragmentation of order flow in that 

stock.’’ 25 Indeed, today, equity trading 

is currently dispersed across 16 

exchanges,26 numerous alternative 

trading systems,27 broker-dealer 

internalizers and wholesalers, all 

competing for order flow. Based on 

publicly-available information, no 

single exchange currently has more than 

20% market share.28

Further, low barriers to entry mean 

that new exchanges may rapidly and 

inexpensively enter the market to 

compete with the Exchange. For 

example, since 2020, three new ones 

have entered the market: Long Term 

Stock Exchange (LTSE), which began 

operations as an exchange on August 28, 

2020; 29 Members Exchange (MEMX), 

which began operations as an exchange 

on September 29, 2020; 30 and Miami 

International Holdings (MIAX), which 

began operations of its first equities 

exchange on September 29, 2020.31

More specifically, in setting fees for 

the NYSE Arca Agg Lite data feed, the 

Exchange is constrained by the fact that, 

if its pricing is unattractive to 

customers, customers have their pick of 

alternatives to purchase similar data 

from instead of purchasing it from the 

Exchange. The existence of alternatives 

to the Exchange’s data product ensures 

that the Exchange cannot set 

unreasonable market data fees without 

suffering the negative effects of that 

decision in the competitive market for 

non-latency—sensitive proprietary 

partial depth of book market data. 

The Exchange notes that the NYSE 

Arca Agg Lite is entirely optional. The 

Exchange is not required to make the 

NYSE Arca Agg Lite available to any 

customers, nor is any customer required 

to purchase the NYSE Arca Agg Lite 

market data feed. Unlike some other 

data products (e.g., the consolidated 

quotation and last-sale information 

feeds) that firms are required to 

purchase in order to fulfil regulatory 

obligations,32 a customer’s decision 

whether to purchase the NYSE Arca Agg 

Lite is entirely discretionary. The 

Exchange believes NYSE Arca Agg Lite 

would provide high-quality, 

comprehensive partial depth of book 

data that an anticipated end user might 

use for purposes of identifying an 

indicative price of Tape A, B and C 

securities without having to purchase 

consolidated data and thus it would not 

be a latency-sensitive product. The 

Exchange does not anticipate that an 

end user would, or could, use NYSE 

Arca Agg Lite data for purposes of 

making order-routing or trading 

decisions. Firms that choose to 

subscribe to NYSE Arca Agg Lite are 

able to determine for themselves 

whether the NYSE Arca Agg Lite data 

feed is necessary for their business 

needs, and if so, whether or not it is 

attractively priced. If the NYSE Arca 

Agg Lite data feed does not provide 

sufficient benefit to firms based on the 

uses those firms may have for it, such 

firms may simply choose to conduct 

their business operations in ways that 

do not use the NYSE Arca Agg Lite data 

feed. 

In setting the proposed fees for the 

NYSE Arca Agg Lite data feed, the 

Exchange considered the 

competitiveness of the market for nonlatency-sensitive proprietary partial 

depth of book data and all of the 

implications of that competition. The 

Exchange believes that it has considered 

all relevant factors and has not 

considered irrelevant factors in order to 

establish reasonable fees. The proposed 

fees are therefore reasonable because in 

setting them, the Exchange is 

constrained by the availability of 

substitute partial depth of book market 

data products. The Commission has 

been clear that substitute products need 

not be identical, but only substantially 

similar to the product at hand.33

The NYSE Arca Aggregated Lite 

market data feed is subject to significant 

competitive forces that constrain its 

pricing. Specifically, the NYSE Arca 

Agg Lite data feed competes head-tohead with similar market data products 

currently offered by the four U.S. 

equities exchanges operated by Cboe 

Exchange, Inc.—Cboe BZX Exchange, 

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

(‘‘BYX’’), Cboe EDGA Exchange, Inc. 

(‘‘EDGA’’), and Cboe EDGX Exchange, 

Inc. (‘‘EDGX’’), each of which offers a 

market data product called BZX 

Summary Depth, BYX Summary Depth, 

EDGA Summary Depth and EDGX 

Summary Depth, respectively 

(collectively, the ‘‘Cboe Summary 

Depth’’).34 Similar to Cboe Summary 

Depth, NYSE Arca Agg Lite can be 

utilized by vendors and subscribers to 

quickly access and distribute aggregated 

order book data. As noted above, NYSE 

Arca Agg Lite, similar to Cboe Summary 

Depth, would provide aggregated depth 

per security, including the bid, ask and 

share quantity for orders received by 

NYSE Arca, except unlike Cboe 

Summary Depth, which provides 

aggregated depth per security for up to 

five price levels, NYSE Arca Agg Lite 

would provide aggregated depth per 

security for up to ten price levels on 

both the bid and offer sides of the NYSE 


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35See https://cdn.cboe.com/resources/ 

membership/US_Market_Data_Product_Price_

List.pdf. 

36 Id. 

37See Fee Schedule. 

38See supra, note 35. 

39For example, the Commission has permitted 

pricing discounts for market data under Nasdaq 

Rules 7023(c) and 7047(b). See also Securities 

Exchange Act Release No. 82182 (November 30, 

2017), 82 FR 57627 (December 6, 2017) (SR–NYSE– 

2017–60) (changing an enterprise fee for NYSE BBO 

and NYSE Trades). 

40See supra, note 15. 

41See Fee Schedule. 

Arca limit order book as well as auction 

imbalance data. 

The specific fees that the Exchange 

proposes for the NYSE Arca Agg Lite 

data feed are reasonable for the 

following additional reasons. 

Overall. The Exchange believes that 

the proposed fees for the NYSE Arca 

Agg Lite data feed are reasonable 

because they would provide vendors 

and subscribers with the option to 

subscribe to a market data product that 

integrates a subset of data from existing 

products and where such aggregated 

data is published at a pre-defined 

interval, thus lowering bandwidth, 

infrastructure and operational 

requirements. 

The Exchange believes the proposed 

fees for the NYSE Arca Agg Lite data 

feed are also reasonable when compared 

to fees for comparable products, such as 

the Cboe Summary Depth.35

Additionally, the Exchange is proposing 

fees for the NYSE Arca Agg Lite data 

feed that are based on the existing fee 

structure that data recipients already 

pay for the NYSE Arca’s other market 

data products. The Exchange believes 

that adopting the same fee structure 

would reduce administrative burdens 

on NYSE Arca data subscribers that also 

currently subscribe to market data feeds 

from NYSE Arca. 

Access Fee. The Exchange believes 

that the proposed monthly Access Fee 

of $1,500 for the NYSE Arca Aggregated 

Lite data feed is reasonable because it is 

lower than the fees charged by BZX, 

BYX, EDGA, and EDGX, each of which 

charges between $2,500 per month to 

$5,000 per month for both Internal 

Distribution and External Distribution of 

the Cboe Summary Depth market data 

product.36

User Fees. The Exchange believes that 

having separate Professional and NonProfessional User fees for the NYSE 

Arca Agg Lite data feed is reasonable 

because it will make the product more 

affordable and result in greater 

availability to Professional and NonProfessional Users. Setting a modest 

Non-Professional User fee is reasonable 

because it provides an additional 

method for Non-Professional Users to 

access the NYSE Arca Agg Lite data feed 

by providing the same data that is 

available to Professional Users. The 

proposed monthly Professional User Fee 

(Per User) of $30 and monthly NonProfessional User Fee (Per User) of $4 

are reasonable because they are 

comparable to user fees generally 

charged by exchanges. For example, 

NYSE Arca charges a monthly 

Professional User Fee (Per User) of $60 

and a monthly Non-Professional User 

Fee (Per User) of up to $10 for the NYSE 

ArcaBook feed.37 Although the 

proposed User Fees for Professional and 

Non-Professional Users are higher than 

those charged by BZX, BYX, EDGA and 

EDGX, the Exchange notes that User fees 

are only a subset of the total fees that 

vendors and subscribers pay and the 

lower fees proposed to access and 

redistribute NYSE Arca Agg Lite would 

provide such market data recipients 

with a more affordable alternative to 

existing substitutes offered by the 

Exchange and its competitors. 

Redistribution Fees. The Exchange 

believes that charging a Redistribution 

Fee is reasonable because the vendors 

that would be charged such a fee profit 

by re-transmitting the Exchange’s 

market data to their customers. This fee 

would be charged only once per month 

to each vendor account that 

redistributes the NYSE Arca Agg Lite 

data feed, regardless of the number of 

customers to which that vendor 

redistributes the data. The Exchange 

believes the proposed monthly 

Redistribution Fee of $250 for the NYSE 

Arca Agg Lite data feed is reasonable 

because it is nominal and lower than the 

fees charged by BZX, BYX, EDGA and 

EDGX, each of which charges 

considerably more for both Internal 

Distribution and External Distribution of 

the Cboe Summary Depth market data 

feed.38

Enterprise Fees. The Exchange 

believes the proposed enterprise license 

is reasonable because it would reduce 

exchange fees, lower administrative 

costs for subscribers that are brokerdealers and help expand the availability 

of market information to investors, and 

thereby increase participation in 

financial markets. Subscribers that are 

broker-dealers would be able to 

disseminate the NYSE Arca Agg Lite 

data feed for display usage to an 

unlimited number of non-professional 

users for a monthly fee of $35,000, or 

$31,500 if they contract for twelve 

months of service in advance. 

Alternatively, subscribers that are 

broker-dealers would be able to 

disseminate the NYSE Arca Agg Lite 

data feed for display usage to an 

unlimited number of professional users 

and non-professional users for a 

monthly fee of $110,000, or $99,000 if 

they contract for twelve months of 

service in advance. The proposed 

enterprise license would result in lower 

fees for subscribers able to reach the 

largest audience of investors, including 

retail investors. Discounts for broader 

dissemination of market data 

information have routinely been 

adopted by exchanges and permitted by 

the Commission as equitable allocations 

of reasonable dues, fees and charges.39

Non-Display Use Fees.40 Non-display 

data can be used by data recipients for 

a wide variety of uses, including 

proprietary and agency trading and 

smart order routing, as well as by data 

recipients that operate order matching 

and execution platforms. Non-display 

data also can be used for a variety of 

non-trading purposes that indirectly 

support trading, such as risk 

management and compliance. Although 

some of these non-trading uses do not 

directly generate revenues, they can 

nonetheless substantially reduce a 

recipient’s costs by automating such 

functions so that they can be carried out 

in a more efficient and accurate manner 

and reduce errors and labor costs, 

thereby benefiting recipients. The 

Exchange believes that charging for nontrading uses is reasonable because data 

recipients can derive substantial benefit 

from such uses, for example, by 

automating tasks so that they can be 

performed more quickly and accurately 

and less expensively than if they were 

performed manually. 

The Exchange believes that the 

proposed fees of $4,500 per month for 

each of Categories 1, 2, and 3 is 

reasonable. These fees are comparable to 

non-display use fees generally charged 

by exchanges. For example, the fees for 

Non-Display Use of NYSE ArcaBook for 

Categories 1, 2 and 3 is $6,000 per 

month.41 The Exchange believes that it 

is reasonable to cap non-display use fees 

for Category 3 at $13,500 per month per 

data recipient, because a higher monthly 

fee may potentially dissuade subscribers 

from buying the NYSE Arca Agg Lite 

data feed. 

The proposed Non-Display Use fees 

for the NYSE Arca Agg Lite data feed are 

also reasonable because they take into 

account the usefulness of receiving the 

data for Non-Display Use on an 

integrated basis. 

Non-Display Use Declaration Late 

Fee. The Exchange believes that it is 

reasonable to require annual 

submissions of the Non-Display Use 


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

94432 (March 16, 2022), 87 FR 16277 (March 22, 

2022) (SR–CboeBZX–2022–015) (Notice of Filing 

and Immediate Effectiveness of a Proposed Rule 

Change To Amend the Fees Applicable to Various 

Market Data Products). 

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

72560 (July 8, 2014), 79 FR 40801 (July 14, 2014) 

(SR–NYSEARCA–2014–72) (establishing tiered 

Non-Professional User Fees (Per User) for NYSE 

ArcaBook); Securities Exchange Act Release No. 

20002, File No. S7–433 (July 22, 1983), 48 FR 34552 

(July 29, 1983) (establishing Non-Professional fees 

for CTA data); NASDAQ BX Equity 7 Pricing 

Schedule, Section 123. 

Declaration so that the Exchange will 

have current and accurate information 

about the use of the NYSE Arca Agg Lite 

data feed and can correctly assess fees 

for the uses of the NYSE Arca Agg Lite 

data feed. Requiring annual submissions 

of such declarations is reasonable 

because it also allows users to re-assess 

their own usage each year. 

The Exchange believes that it is 

reasonable to impose a late fee in 

connection with the submission of the 

Non-Display Use Declaration. In order 

to correctly assess fees for the nondisplay use of the NYSE Arca Agg Lite 

data feed, the Exchange needs to have 

current and accurate information about 

the use of the NYSE Arca Agg Lite data 

feed. The failure of data recipients to 

submit the Non-Display Use Declaration 

on time leads to potentially incorrect 

billing and administrative burdens, 

including tracking and obtaining late 

Non-Display Use Declarations and 

correcting and following up on 

payments owed in connection with late 

Non-Display Use Declarations. The 

purpose of the late fee is to incent data 

recipients to submit the Non-Display 

Use Declaration promptly to avoid the 

administrative burdens associated with 

the late submission of Non-Display Use 

Declarations. 

Multiple Data Feed Fee. The Exchange 

believes that it is reasonable to require 

data recipients to pay a modest fee for 

taking a data feed for a market data 

product in more than two locations. In 

addition, there are administrative 

burdens associated with tracking each 

location at which a data recipient 

receives the product. The Multiple Data 

Feed Fee is designed to encourage data 

recipients to better manage their 

requests for additional data feeds and to 

monitor their usage of data feeds. The 

proposed fee is designed to apply to 

data feeds received in more than two 

locations so that each data recipient can 

have one primary and one backup data 

location before having to pay a multiple 

data feed fee. 

Three-Month Fee Waiver. The 

Exchange believes the proposal to waive 

the Access Fee and the Redistribution 

Fee for the NYSE Arca Agg Lite data 

feed to new Redistributors for three 

calendar months is reasonable because 

it would enable potential Redistributors 

to determine whether a particular NYSE 

Arca market data product is useful to 

their business models before fully 

committing to expend development and 

implementation costs related to the 

receipt of that product, and is intended 

to encourage increased use of the 

Exchange’s market data products by 

defraying some of the development and 

implementation costs Redistributors 

would ordinarily have to expend before 

using a product. The proposed fee 

waiver would also allow Redistributors 

to become familiar with the feed and 

determine whether it suits their needs 

without incurring fees. Making a new 

market data product available without 

charging a fee for three months is 

consistent with offerings of other 

exchanges. For example, BZX offers 

subscribers of BZX Summary Depth a 

three-month credit for external 

distribution, which is akin to the threemonth fee waiver proposed by the 

Exchange.42

For all of the foregoing reasons, the 

Exchange believes that the proposed 

fees for the NYSE Arca Agg Lite data 

feed are reasonable. 

The Proposed Fees Are Equitably 

Allocated 

The Exchange believes the proposed 

fees for the NYSE Arca Agg Lite data 

feed are allocated fairly and equitably 

among the various categories of users of 

the feed, and any differences among 

categories of users are justified. 

Overall. The Exchange believes that 

the proposed fees are equitably 

allocated because they will apply to all 

data recipients that choose to subscribe 

to the NYSE Arca Agg Lite data feed. 

Any subscriber or vendor that chooses 

to subscribe to the NYSE Arca Agg Lite 

data feed is subject to the same Fee 

Schedule, regardless of what type of 

business they operate or the use they 

plan to make of the data feed. 

Subscribers and vendors are not 

required to purchase the NYSE Arca 

Agg Lite data feed and may choose to 

receive the data on the NYSE Arca Agg 

Lite data feed regardless of what type of 

business they operate or the use they 

plan to make of the data feed. 

Access Fee. The Exchange believes 

the proposed monthly Access Fee of 

$1,500 for the NYSE Arca Agg Lite data 

feed is equitably allocated because it 

would be charged on an equal basis to 

all data recipients that receive a data 

feed of the NYSE Arca Agg Lite data 

feed, regardless of what type of business 

they operate or the use they plan to 

make of the data feed. 

User Fees. The Exchange believes that 

the fee structure differentiating 

Professional User fees ($30 per month 

per user) from Non-Professional User 

fees ($4 per month per user) for display 

device access to the NYSE Arca Agg Lite 

data feed is equitable. This structure has 

long been used by the Exchange to 

reduce the price of data to NonProfessional Users and make it more 

broadly available.43 Offering the NYSE 

Arca Agg Lite data feed to NonProfessional Users with the same data as 

is available to Professional Users results 

in greater equity among data recipients. 

These user fees would be charged 

uniformly to all display devices that 

have access to the NYSE Arca Agg Lite 

data feed. 

Redistribution Fees. The Exchange 

believes the proposed monthly fee of 

$250 for redistributing the NYSE Arca 

Agg Lite data feed is equitably allocated 

because it would be charged on an equal 

basis to those Redistributors that choose 

to redistribute the feed. 

Enterprise Fees. The Exchange 

believes the proposed enterprise license 

is equitably allocated because it would 

be available on an equal basis to all 

subscribers that are broker-dealers, each 

of whom would benefit from reduced 

exchange fees and from lower 

administrative costs. Moreover, the 

specific feature of the proposed 

enterprise license that will allow 

subscribers to lower fees by subscribing 

to a twelve-month contract is also an 

equitable allocation because all 

subscribers will have the same option of 

choosing between the stability of a 

fixed, lower rate, and the more flexible 

option of maintaining the ability to 

change market data products after a 

month of service. Subscribers will be 

free to move from the monthly to the 

annual rate at any time, or from annual 

to a monthly fee, with notice, at the 

expiration of the twelve-month period. 

Non-Display Use Fees. The Exchange 

believes the proposed Non-Display Use 

fees are equitably allocated because they 

would require subscribers to pay fees 

only for the uses they actually make of 

the data. As noted above, non-display 

data can be used by data recipients for 

a wide variety of purposes (including 

trading, risk management, and 

compliance) as well as purposes that 

reduce the recipient’s costs by 

automating certain functions. The 

Exchange believes that it is equitable to 

charge non-display data subscribers a 

$4,500 fee for each category of use they 

make of such data—namely, using the 

data on their own behalf (Category 1), 

on behalf of their clients (Category 2), 


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44 Id. 

45See e.g., Securities Exchange Act Release No. 

83751 (July 31, 2018), 83 FR 38428 (August 6, 2018) 

(SR–NASDAQ–2018–058) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

To Lower Fees and Administrative Costs for 

Distributors of Nasdaq Basic, Nasdaq Last Sale, NLS 

Plus and the Nasdaq Depth-of-Book Products 

Through a Consolidated Enterprise License). 

and to internally match buy and sell 

orders within an organization (Category 

3)—because this fee structure results in 

subscribers with greater uses of the data 

paying higher fees, and subscribers with 

fewer uses of the data paying lower fees. 

This segmented fee structure is also 

equitable because no subscriber of nondisplay data would be charged a fee for 

a category of use in which it did not 

actually engage. 

The Exchange believes that it is 

equitable to cap non-display use fees for 

Category 3 at $13,500 per month per 

data recipient, because a higher monthly 

fee may potentially dissuade subscribers 

from buying the NYSE Arca Agg Lite 

data feed. 

Non-Display Use Declaration Late 

Fee. The Exchange believes that the 

proposed fee of $1,000 per month for a 

late Non-Display Use Declaration is 

equitably allocated because it applies to 

any data recipient that pays an Access 

Fee for the NYSE Arca Agg Lite data 

feed but has failed to complete and 

submit a Non-Display Use Declaration. 

In addition, the Exchange believes that 

it is equitable to charge a late fee to 

subscribers who fail to timely submit 

their Non-Display Use Declarations 

because their failure to do so leads to 

potentially incorrect billing and 

administrative burdens on the part of 

the Exchange. The Exchange believes it 

is equitable to defray these 

administrative costs by imposing a late 

fee only on subscribers’ whose 

declarations were late, as opposed to all 

subscribers. 

Multiple Data Feed Fee. The Exchange 

believes that the $200 per month per 

location fee to data recipients taking the 

NYSE Arca Agg Lite data feed in more 

than two locations is equitable because 

it would apply to all such customers, 

regardless of what type of business they 

operate or the use they make of the data 

feed. In addition, the Exchange believes 

that it is equitable to charge a fee to 

subscribers for taking a data feed in 

more than two locations because there 

are administrative burdens on the part 

of the Exchange associated with tracking 

each location at which a data recipient 

receives the product. The Exchange 

believes that it is equitable for it to 

defray these administrative costs by 

imposing a modest fee only on 

subscribers who seek to take the feed in 

more than two locations, as opposed to 

all subscribers. 

Three-Month Fee Waiver. The 

Exchange believes the proposal to waive 

the Access Fee and the Redistribution 

Fee for the NYSE Arca Agg Lite data 

feed to new Redistributors for three 

calendar months is equitable because it 

would apply to any first-time 

Redistributor, regardless of the use they 

plan to make of the feed. As proposed, 

any first-time Redistributor of the NYSE 

Arca Agg Lite data feed would not be 

charged the Access Fee and the 

Redistribution Fee for three calendar 

months. The Exchange believes it is 

equitable to restrict the availability of 

this three-month fee waiver to 

Redistributors that have not previously 

subscribed to and redistributed the 

NYSE Arca Agg Lite data feed, since 

customers who are current or previous 

subscribers of the feed are already 

familiar with it and are able to 

determine whether it suits their needs. 

For all of the foregoing reasons, the 

Exchange believes that the proposed 

fees for the NYSE Arca Agg Lite data 

feed are equitably allocated. 

The Proposed Fees Are Not Unfairly 

Discriminatory 

The Exchange believes the proposed 

fees for the NYSE Arca Agg Lite data 

feed are not unfairly discriminatory 

because any differences in the 

application of the fees are based on 

meaningful distinctions between 

customers, and those meaningful 

distinctions are not unfairly 

discriminatory between customers. 

Overall. The Exchange believes that 

the proposed fees are not unfairly 

discriminatory because they would 

apply to all data recipients that choose 

to subscribe to the NYSE Arca Agg Lite 

data feed. Any subscriber, including 

Redistributor, that chooses to subscribe 

to the NYSE Arca Agg Lite data feed is 

subject to the same Fee Schedule, 

regardless of what type of business they 

operate or the use they plan to make of 

the data feed. Subscribers, including 

Redistributors, may choose to receive 

the data on the NYSE Arca Agg Lite data 

feed regardless of what type of business 

they operate or the use they plan to 

make of the data feed. 

Access Fee. The Exchange believes 

the proposed monthly Access Fee of 

$1,500 for the NYSE Arca Agg Lite data 

feed is not unfairly discriminatory 

because it would be charged on an equal 

basis to all data recipients that receive 

a data feed of the NYSE Arca Agg Lite, 

regardless of what type of business they 

operate or the use they plan to make of 

the data feed. 

User Fees. The Exchange believes that 

the fee structure differentiating 

Professional User fees ($30 per month 

per user) from Non-Professional User 

fees ($4 per month per user) for display 

device access to the NYSE Arca Agg Lite 

data feed is not unfairly discriminatory. 

This structure has long been used by the 

Exchange to reduce the price of data to 

Non-Professional Users and make it 

more broadly available.44 Offering the 

NYSE Arca Agg Lite data feed to NonProfessional Users with the same data as 

is available to Professional Users results 

in greater equity among data recipients. 

These user fees would be charged 

uniformly to all display devices that 

have access to the NYSE Arca Agg Lite 

data feed. 

Redistribution Fees. The Exchange 

believes the proposed monthly fee of 

$250 for redistributing the NYSE Arca 

Agg Lite data feed is not unfairly 

discriminatory because it would be 

charged on an equal basis to those 

Redistributors that choose to 

redistribute the feed. 

Enterprise Fees. The Exchange 

believes the proposed enterprise license 

will not unfairly discriminate between 

customers, issuers, brokers or dealers. 

The Act does not prohibit all 

distinctions among customers, but only 

discrimination that is unfair, and it is 

not unfair discrimination to charge 

those subscribers that are able to reach 

the largest audiences of investors, 

including retail investors, a lower fee for 

incremental investors in order to 

encourage the widespread distribution 

of market data. This principle has been 

repeatedly endorsed by the 

Commission, as evidenced by the 

approval of enterprise licenses for other 

market data products.45 Moreover, the 

proposed enterprise license will be 

subject to significant competition, and 

that competition will ensure that there 

is no unfair discrimination. Each 

subscriber will be able to accept or 

reject the license depending on whether 

it will or will not lower costs for that 

particular subscriber, and, if the license 

is not sufficiently competitive, the 

Exchange may lose market share. The 

proposed enterprise license will 

compete with other enterprise licenses 

of the Exchange, underlying fee 

schedules promulgated by the 

Exchange, and enterprise licenses and 

fee structures implemented by other 

exchanges. As such, it is a voluntary 

product for which market participants 

can readily find substitutes. 

Accordingly, the Exchange is 

constrained from introducing a fee that 

would be inequitable or unfairly 

discriminatory. 


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Federal Register / Vol. 89, No. 225 / Thursday, November 21, 2024 / Notices 92251 

46See supra, note 15. 

Non-Display Use Fees.46 The 

Exchange believes the proposed NonDisplay Use fees are not unfairly 

discriminatory because they would 

require subscribers for non-display use 

to pay fees only for the categories of use 

they actually make of the data. As noted 

above, non-display data can be used by 

data recipients for a wide variety of 

purposes (including trading, risk 

management, and compliance) as well 

as purposes that reduce the recipient’s 

costs by automating certain functions. 

The Exchange believes that it is not 

unfairly discriminatory to charge nondisplay data subscribers a $4,500 per 

month fee for each category of use they 

make of such data—namely, using the 

data on their own behalf (Category 1), 

on behalf of their clients (Category 2), 

and to internally match buy and sell 

orders within an organization (Category 

3)—because this fee structure results in 

subscribers with greater uses for the 

data paying higher fees, while 

subscribers with fewer uses of the data 

pay lower fees. This segmented fee 

structure is not unfairly discriminatory 

because no subscriber of non-display 

data would be charged a fee for a 

category of use in which it did not 

actually engage. 

The Exchange believes that it is not 

unreasonably discriminatory to cap nondisplay use fees for Category 3 at 

$13,500 per month per data recipient, 

because a higher monthly fee may 

potentially dissuade subscribers from 

buying the NYSE Arca Agg Lite data 

feed. 

Non-Display Use Declaration Late 

Fee. The Exchange believes that the 

proposed fee of $1,000 per month for a 

late Non-Display Use Declaration is not 

unfairly discriminatory because it 

applies to any data recipient that pays 

an Access Fee for the NYSE Arca Agg 

Lite data feed but has failed to complete 

and submit a Non-Display Use 

Declaration. In addition, the Exchange 

believes that it is not unfairly 

discriminatory to charge a late fee to 

subscribers who fail to timely submit 

their Non-Display Use Declarations 

because their failure to do so leads to 

potentially incorrect billing and 

administrative burdens on the part of 

the Exchange. Nor is it unfairly 

discriminatory for the Exchange to 

defray these administrative costs by 

imposing a late fee only on subscribers’ 

whose declarations were late, as 

opposed to all subscribers. 

Multiple Data Feed Fee. The Exchange 

believes that the $200 per month per 

location fee to data recipients taking the 

NYSE Arca Agg Lite data feed in more 

than two locations is not unfairly 

discriminatory because it would apply 

to all such customers, regardless of what 

type of business they operate or the use 

they make of the data feed. In addition, 

the Exchange believes that it is not 

unfairly discriminatory to charge a fee 

to subscribers for taking a data feed in 

more than two locations because there 

are administrative burdens on the part 

of the Exchange associated with tracking 

each location at which a data recipient 

receives the product. The Exchange 

believes that it is not unfairly 

discriminatory for it to defray these 

administrative costs by imposing a 

modest fee only on subscribers who 

seek to take the feed in more than two 

locations, as opposed to all subscribers. 

Three-Month Fee Waiver. The 

Exchange believes the proposal to waive 

the Access Fee and the Redistribution 

Fee for the NYSE Arca Agg Lite data 

feed to new Redistributors for three 

months is not unfairly discriminatory 

because it would apply to any first-time 

Redistributor, regardless of the use they 

plan to make of the feed. As proposed, 

any first-time Redistributor of the NYSE 

Arca Agg Lite data feed would not be 

charged the Access Fee and the 

Redistribution Fee for three calendar 

months. The Exchange believes it is not 

unfairly discriminatory to restrict the 

availability of this three-month fee 

waiver to Redistributors that have not 

previously subscribed to the NYSE Arca 

Agg Lite data feed, since Redistributors 

who are current or previous subscribers 

of the feed are already familiar with it 

and are able to determine whether it 

suits their needs. 

For all of the foregoing reasons, the 

Exchange believes that the proposed 

fees for the NYSE Arca Agg Lite data 

feed are not unfairly discriminatory. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed fees will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Intramarket Competition. The 

Exchange believes that the proposed 

fees do not put any market participants 

at a relative disadvantage compared to 

other market participants. As noted 

above, the proposed fees would apply to 

all subscribers, including Redistributors, 

of the NYSE Arca Agg Lite data feed, 

and customers may choose whether to 

subscribe to the feed at all. The 

Exchange also believes that the 

proposed fees neither favor nor penalize 

one or more categories of market 

participants in a manner that would 

impose an undue burden on 

competition. As shown above, to the 

extent that particular proposed fees 

apply to only a subset of subscribers 

(e.g., Category 2 fees apply only to those 

making non-display use on behalf of 

clients; late fees apply only to customers 

who fail to timely submit their 

declarations), those distinctions are not 

unfairly discriminatory and do not 

unfairly burden one set of customers 

over another. To the contrary, by 

tailoring the proposed fees in this 

manner, the Exchange believes that it 

has eliminated the potential burden on 

competition that might result from 

unfairly asking subscribers to pay fees 

for services they did not use, or late fees 

they did not actually incur. 

Intermarket Competition. The 

Exchange believes that the proposed 

fees do not impose a burden on 

competition or on other SROs that is not 

necessary or appropriate. In setting the 

proposed fees, the Exchange is 

constrained by the availability of 

substitute partial depth of book market 

data products and by the fact that if its 

pricing is unattractive, customers will 

have their pick of alternative nonlatency-sensitive partial depth of book 

market data products to purchase 

instead of purchasing the Exchange’s 

products. 

Specifically, the Exchange believes 

that the proposed fees do not impose a 

burden on competition or on other 

exchanges that is not necessary or 

appropriate because of the availability 

of substitute partial depth of book 

market data products. As noted above, 

BZX, BYX, EDGA, and EDGX each offers 

a proprietary data feed like the NYSE 

Arca Agg Lite data feed, supplying 

partial depth of book order data, 

security status updates, stock summary 

messages, and the exchange’s best bid 

and offer at any given time, on a realtime basis. Because market data users 

can find suitable substitute feeds, an 

exchange that overprices its market data 

products stands a high risk that users 

may purchase another market’s market 

data product. These competitive 

pressures ensure that no one exchange’s 

market data fees can impose an 

unnecessary burden on competition, 

and the Exchange’s proposed fees do not 

do so here. 

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. 


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92252 Federal Register / Vol. 89, No. 225 / Thursday, November 21, 2024 / Notices 

47 15 U.S.C. 78s(b)(3)(A). 

48 17 CFR 240.19b–4(f)(2). 

49 15 U.S.C. 78s(b)(2)(B). 

50 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. 99801 

(Mar. 20, 2024), 89 FR 21104. The Commission 

received only one comment on the proposed rule 

change, which is available at: https://www.sec.gov/ 

comments/sr-nysearca-2024-27/ 

srnysearca202427.htm. The comment letter was not 

germane to the proposed rule change and instead 

concerned voluntary carbon markets more broadly. 

See Letter from James D. Milas (Mar. 27, 2024). As 

stated below, the Exchange represents that the Fund 

will not provide exposure to voluntary carbon 

markets. 

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

5See Securities Exchange Act Release No. 

100050, 89 FR 38932 (May 8, 2024). 

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

7See Securities Exchange Act Release No. 

100390, 89 FR 53466 (June 26, 2024). 

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

9See Securities Exchange Act Release No. 

100896, 89 FR 73135 (Sept. 9, 2024). The 

Commission, pursuant to Section 19(b)(2) of the 

Act, designated Nov. 21, 2024 as the date by which 

the Commission shall either approve or disapprove 

the proposed rule change. 

10Amendment No. 1 is available on the 

Commission’s website at: https://www.sec.gov/ 

comments/sr-nysearca-2024-27/srnysearca202427- 

527675-1515762.pdf. 

11Partial Amendment No. 2 is available on the 

Commission’s website at: https://www.sec.gov/ 

comments/sr-nysearca-2024-27/srnysearca202427- 

527695-1515782.pdf. 

12Amendment No. 3 is available on the 

Commission’s website at: https://www.sec.gov/ 

comments/sr-nysearca-2024-27/srnysearca202427- 

530955-1525482.pdf. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 47 of the Act and 

subparagraph (f)(2) of Rule 19b–4 48

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 49 of the Act 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– 

NYSEARCA–2024–94 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–NYSEARCA–2024–94. 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–NYSEARCA–2024–94 and should be 

submitted on or before December 12, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.50

Stephanie J. Fouse, 

Assistant Secretary. 

[FR Doc. 2024–27217 Filed 11–20–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101641; File No. SR– 

NYSEARCA–2024–27] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of 

Amendment No. 4 and Order Granting 

Accelerated Approval of a Proposed 

Rule Change, as Modified by 

Amendment No. 4, To List and Trade 

Shares of the 7RCC Spot Bitcoin and 

Carbon Credit Futures ETF Under 

NYSE Arca Rule 8.500–E (Trust Units) 

November 15, 2024. 

I. Introduction 

On March 13, 2024, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’ or 

‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

list and trade shares of the 7RCC Spot 

Bitcoin and Carbon Credit Futures ETF 

under NYSE Arca Rule 8.500–E (Trust 

Units). The proposed rule change was 

published for comment in the Federal 

Register on March 26, 2024.3

On May 2, 2024, pursuant to Section 

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

designated a longer period within which 

to approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether to disapprove the proposed 

rule change.5 On June 20, 2024, the 

Commission instituted proceedings 

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

Act 6 to determine whether to approve 

or disapprove the proposed rule 

change.7 On September 3, 2024, 

pursuant to Section 19(b)(2) of the Act,8

the Commission designated a longer 

period for Commission action on the 

proposed rule change.9

On September 30, 2024, the Exchange 

filed Amendment No. 1 to the proposed 

rule change, which amended and 

replaced the proposed rule change in its 

entirety as originally filed.10 On October 

3, 2024, the Exchange filed Partial 

Amendment No. 2, which amended the 

proposed rule change, as modified by 

Amendment No. 1.11 On October 18, 

2024, the Exchange filed Amendment 

No. 3 to the proposed rule change, 

which amended and replaced the 

proposed rule change in its entirety, as 

modified by Amendment No. 1 and 

Partial Amendment No. 2.12 On October 

24, 2024, the Exchange filed 

Amendment No. 4 to the proposed rule 

change, which amended and replaced 


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