Federal Register / Vol. 87, No. 15 / Monday, January 24, 2022 / Notices 3597 

20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Cboe Aggregated Market (‘‘Cboe One’’) Feed 

is a data feed that contains the aggregate best bid 

and offer of all displayed orders for securities 

traded on the Exchange and its affiliated exchanges 

(i.e., BYX, BZX, and EDGX). See Exchange Rule 

13.8(b). The Cboe One Feed contains optional 

functionality which enables recipients to receive 

aggregated two-sided quotations from the Cboe 

Equities Exchanges for up to five (5) price levels 

(‘‘Cboe One Premium Feed’’). See Exchange Rule 

13.8(b)(i). The Cboe One Premium external 

distribution fee is equal to the aggregate EDGA 

Summary Depth, BYX Summary Depth, EDGA 

Summary Depth, and BZX Summary Depth external 

distribution fees. 

4An External Distributor of an Exchange Market 

Data product is a Distributor that receives the 

Exchange Market Data product and then distributes 

that data to a third party or one or more Users 

outside the Distributor’s own entity. 

5See Exchange Rule 13.8(b). 

6The Exchange notes that when it first adopted 

the New External Distributor Credit for Cboe One 

Summary, it similarly applied for a new External 

Distributor’s first three (3) months. See Securities 

Exchange Act Release No. 74283 (February 18, 

2015), 80 FR 9809 (February 24, 2015) (SR–EDGA– 

2015–09). 

post all comments on the Commission’s 

internet website (http://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 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–CBOE–2022–003 and 

should be submitted on or before 

February 14, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01222 Filed 1–21–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93995; File No. SR– 

CboeEDGA–2022–001] 

Self-Regulatory Organizations; Cboe 

EDGA Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend the 

Fees Applicable to Various Market 

Data Products 

January 18, 2022. 

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 January 4, 

2022, Cboe EDGA Exchange, Inc. 

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

Securities and Exchange Commission 

(‘‘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 EDGA Exchange, Inc. (‘‘EDGA’’ 

or the ‘‘Exchange’’) is filing with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) a proposed rule 

change to amend the fees applicable to 

various market data products. The text 

of the proposed rule change is provided 

in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

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

equities/regulation/rule_filings/edga/), 

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 amend the 

Market Data section applicable to its 

equities trading platform (‘‘EDGA 

Equities’’). Particularly, the Exchange 

proposes to (i) adopt a New External 

Distributor Credit applicable to Cboe 

One Premium, and (ii) extend the New 

External Distributor Credit applicable to 

EDGA Summary Depth Feed from one 

(1) month to three (3) months. 

By way of background, Cboe One 

Premium is a data feed that 

disseminates, on a real-time basis, the 

aggregate best bid and offer (‘‘BBO’’) of 

all displayed orders for securities traded 

on EDGA and its affiliated exchanges 

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

Cboe EDGX Exchange, Inc. (‘‘EDGX’’), 

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

and contains optional functionality 

which enables recipients to receive 

aggregated two-sided quotations from 

EDGA and its affiliated equities 

exchanges for up to five (5) price levels.3

Currently, the Exchange charges an 

external distribution fee of $12,500 per 

month to External Distributors 4 of Cboe 

One Premium. The Exchange now 

proposes to adopt a New External 

Distributor Credit which provide that 

new External Distributors of the Cboe 

One Premium Feed will not be charged 

an External Distributor Fee for their first 

three (3) months in order to allow them 

to enlist new Users to receive the Cboe 

One Summary[sic] Feed. The Exchange 

believes the proposal will incentivize 

External Distributors to enlist new users 

to receive Cboe One Premium. To 

ensure consistency across the Cboe 

Equity Exchanges, BZX, BYX, and 

EDGX will be filing companion 

proposals to reflect this proposal in 

their respective fee schedules. 

The Exchange notes that it offers 

similar credits for other market data 

products. For example, the Exchange 

currently offers a one (1) month New 

External Distributor Credit applicable to 

Cboe One Summary,5 which is a data 

feed that disseminates, on a real-time 

basis, the aggregate BBO of all displayed 

orders for securities traded on EDGA 

and its affiliated equities exchanges and 

also contains individual last sale 

information for the EDGA and its 

affiliated equities exchanges.6 It also 

offers a New External Distributor Credit 

of one (1) month for subscribers of 

EDGA Summary Depth, which is a data 

feed that offers aggregated two-sided 

quotations for all displayed orders 

entered into the System for up to five (5) 

price levels. EDGA Summary Depth also 

contains the individual last sale 

information, Market Status, Trading 


jspears on DSK121TN23PROD with NOTICES1
3598 Federal Register / Vol. 87, No. 15 / Monday, January 24, 2022 / Notices 

7See Exchange Rule 13.8(f). 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4). 

10 15 U.S.C. 78k–1. 

11See 17 CFR 242.603. 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f). 

Status, and Trade Break messages.7 As 

noted above, the External Distribution 

fees for Cboe One Summary is 

equivalent to the aggregate EDGA 

Summary Depth, BZX Summary Depth, 

BYX Summary Depth, and EDGX 

Summary Depth External Distribution 

fees. In order to alleviate any 

competitive issues that may arise with 

a vendor seeking to offer a product 

similar to the Cboe One Premium Feed 

based on the underlying data feeds, the 

Exchange proposes to also extend the 

current New External Distributor Credit 

for EDGA Summary Depth from one (1) 

month to three (3) months and the 

Exchange’s affiliates BYX, BZX and 

EDGX are also submitting similar 

proposals to increase the length of their 

respective Summary Depth New 

External Distributor Credits from one (1) 

month to three (3) months. The 

respective proposals to extend these 

credits to three months ensures the 

proposed New External Distributor 

Credit for Cboe One Premium will 

continue to not cause the combined cost 

of subscribing to EDGA, EDGX, BYX, 

and BZX Summary Depth feeds for new 

External Distributors to be greater than 

those currently charged to subscribe to 

the Cboe One Premium feed. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,8

in general, and furthers the objectives of 

Section 6(b)(4),9 in particular, as it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other recipients of Exchange data. In 

addition, the Exchange believes that the 

proposed rule change is consistent with 

Section 11(A) of the Act as it supports 

(i) fair competition among brokers and 

dealers, among exchange markets, and 

between exchange markets and markets 

other than exchange markets, and (ii) 

the availability to brokers, dealers, and 

investors of information with respect to 

quotations for and transactions in 

securities.10 Finally, the proposed rule 

change is also consistent with Rule 603 

of Regulation NMS,11 which provides 

that any national securities exchange 

that distributes information with respect 

to quotations for or transactions in an 

NMS stock do so on terms that are not 

unreasonably discriminatory. 

The Exchange believes that adopting 

a New External Distributor Credit for 

Cboe One Premium is equitable and 

reasonable. As discussed above, a 

similar New External Distributor Fee 

Credit was initially adopted at the time 

the Exchange began to offer the Cboe 

One Summary to subscribers. It was 

intended to incentivize new Distributors 

to enlist Users to subscribe to Cboe One 

Summary in an effort to broaden the 

product’s distribution. Now, the 

Exchange proposes to adopt a similar 

credit for Cboe One Premium 

subscribers for their first three (3) 

months to similarly incentivize new 

Distributors to enlist Users to subscribe 

to Cboe One Premium in an effort to 

broaden the product’s distribution. 

While this incentive is not available to 

Internal Distributors of Cboe One 

Premium, the Exchange believes it is 

appropriate as Internal Distributors have 

no subscribers outside of their own firm. 

The Exchange believes extending the 

New External Distributor Credit for 

EDGA Summary Depth from one (1) 

month to three (3) months is also 

equitable and reasonable, as it (along 

with simultaneous corresponding 

proposals by the Exchange’s affiliates) 

ensures the proposed New External 

Distributor Credit for Cboe One 

Premium will continue to not cause the 

combined cost of subscribing to EDGA, 

EDGX, BYX, and BZX Summary Depth 

feeds for new External Distributors to be 

greater than those currently charged to 

subscribe to the Cboe One Premium 

feed. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would result 

in any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange operates in a highly 

competitive environment, and its ability 

to price these data products is 

constrained by competition among 

exchanges that offer similar data 

products to their customers. The 

Exchange believes that the proposed 

fees do not put any market participants 

at a relative disadvantage compared to 

other market participants. As discussed, 

the proposed credits would apply to all 

External Distributors Cboe One 

Premium and EDGA Depth on an equal 

and non-discriminatory basis. Further, 

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 furtherance 

of the purposes of the Act. As discussed 

above, the proposed amendments are 

designed to enhance competition by 

providing an incentive to new 

Distributors to enlist new subscribers. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

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

of the Act 12 and paragraph (f) of Rule 

19b–4 13 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CboeEDGA–2022–001 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–CboeEDGA–2022–001. 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 (http://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 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 15 / Monday, January 24, 2022 / Notices 3599 

14 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. 51808 

(June 9, 2005), 70 FR 37495, 37499 (June 29, 2005) 

(S7–10–04) (Final Rule) (‘‘Regulation NMS 

Adopting Release’’). 

4See Securities Exchange Act Release No. 84875, 

84 FR 5202, 5253 (February 20, 2019) (File No. S7– 

05–18) (Transaction Fee Pilot for NMS Stocks Final 

Rule) (‘‘Transaction Fee Pilot’’). 

5See FINRA ATS Transparency Data, available at 

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

AtsData. A list of alternative trading systems 

registered with the Commission is available at 

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

6See Cboe Global Markets, U.S. Equities Market 

Volume Summary, Month-to-Date (December 10, 

2021) available at http://markets.cboe.com/us/ 

equities/market_share/. 

7Competing top-of-book products include, 

Nasdaq Basic, BX Basic, PSX Basic, NYSE BQT, 

NYSE BBO/Trades, NYSE Arca BQT, NYSE Arca 

BBO/Trades, NYSE American BBO/Trades, NYSE 

Chicago BBO/Trades, IEX TOPS, MIAX PEARL 

Equities Top of Market Feed, and MEMX MEMOIR 

Top. 

8For example, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’) offers ‘‘Nasdaq Basic’’ which is a realtime market data product that offers best bid and 

offer and last sale information for all U.S. exchangelisted securities based on liquidity within the 

Nasdaq market center and trades reported to the 

FINRA/Nasdaq Trade Reporting Facility (‘‘Nasdaq 

TRF’’). See Nasdaq Equity Rules, Equity 7, Pricing 

Schedule, Section 147(a). The type of information 

contained on the BYX Top Feed is substantially 

similar to that offered through Nasdaq Basic, except 

that the Exchange disseminates information about 

quotes and trades on BYX, whereas Nasdaq Basic 

provides information about quotes and trades on 

Nasdaq and the Nasdaq TRF. Other national 

securities with competing top-of-book products also 

Continued 

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 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–CboeEDGA–2022–001 and 

should be submitted on or before 

February 14, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01226 Filed 1–21–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93996; File No. SR– 

CboeBYX–2022–001] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend the 

Fees Applicable to Various Market 

Data Products 

January 18, 2022. 

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 January 4, 

2022, Cboe BYX Exchange, Inc. 

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

Securities and Exchange Commission 

(‘‘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 BYX Exchange, Inc. (‘‘BYX’’ or 

the ‘‘Exchange’’) is filing with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) a proposed rule 

change to amend the fees applicable to 

various market data products. The text 

of the proposed rule change is provided 

in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

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

equities/regulation/rule_filings/byx/), 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 amend the 

Market Data section applicable to its 

equities trading platform (‘‘BYX 

Equities’’). Particularly, the Exchange 

proposes to (i) decrease the External 

Distribution fee applicable to BYX Top, 

(ii) adopt a New External Distributor 

Credit applicable to Cboe One Premium, 

and (iii) extend the New External 

Distributor Credit applicable to BYX 

Summary Depth Feed from one (1) 

month to three (3) months. 

Market Background 

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.’’ 3 As 

the Commission itself recognized, the 

market for trading services in NMS 

stocks has become ‘‘more fragmented 

and competitive.’’ 4

Equity trading is currently dispersed 

across sixteen exchanges, more than 50 

alternative trading systems,5 and 

numerous broker-dealer internalizers 

and wholesalers, all competing fiercely 

for order flow. Based on publiclyavailable information, no single U.S. 

equities exchange has more than 17% 

market share.6 In turn, the market for 

top-of-book quotation and transaction 

data is highly competitive as national 

securities exchanges compete vigorously 

with each other to provide efficient, 

reliable, and low-cost data to a wide 

range of investors and market 

participants. In fact, there are twelve 

competing products offered by other 

national securities exchanges today,7

not counting products offered by the 

Exchange’s affiliates, and each of the 

Exchange’s affiliated U.S. equities 

exchanges also offers similar top-ofbook data. Each of those exchanges offer 

top-of-book quotation and last sale 

information based on their own 

quotation and trading activity that is 

substantially similar to the information 

provided by the Exchange through the 

BYX Top Feed.8 Exchange top-of-book 


jspears on DSK121TN23PROD with NOTICES1