3604 Federal Register / Vol. 87, No. 15 / Monday, January 24, 2022 / Notices 

36 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 EDGX Top Feed is substantially 

similar to that offered through Nasdaq Basic, except 

that the Exchange disseminates information about 

quotes and trades on EDGX, 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 

offer substantially similar types of information 

through those top-of-book products. 

9See Exchange Rule 13.8(c). 10See Exchange Rule 1.5(cc). 11An 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. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.36

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01227 Filed 1–21–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93997; File No. SR– 

CboeEDGX–2022–002] 

Self-Regulatory Organizations; Cboe 

EDGX 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 EDGX Exchange, Inc. 

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

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/ 

options/regulation/rule_filings/edgx/), 

at the Exchange’s Office of the 

Secretary, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Market Data section applicable to its 

equities trading platform (‘‘EDGX 

Equities’’). Particularly, the Exchange 

proposes to (i) increase the External 

Distribution fee applicable to EDGX 

Top, (ii) modify the External Subscriber 

fees applicable to EDGX Top Derived 

Data API Service, (iii) adopt a New 

External Distributor Credit applicable to 

Cboe One Premium, (iv) extend the New 

External Distributor Credit applicable to 

EDGX Summary Depth Feed from one 

(1) month to three (3) months, and (v) 

eliminate the waiver of EDGX Top and 

EDGX Last Sale External Distribution 

fees for External Distributors of EDGX 

Depth. 

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 

EDGX Top Feed.8 Exchange top-of-book 

data is therefore widely available today 

from a number of different sources. 

Fees for External Distribution of EDGX 

Top 

The Exchange first proposes to 

increase the external distribution fee 

applicable to EDGX Top,9 which is an 

uncompressed data feed that offers topof-book quotations and execution 

information based on equity orders 

entered into the System.10 Currently, the 

Exchange charges an external 

distribution fee (i.e., distribution 

outside the distributor’s own firm) of 

$1,500 per month to External 

Distributors 11 of EDGX Top. The 


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12See Securities Exchange Act Release No. 77888 

(May 24, 2016) 81 FR 34384 (May 31, 2016) (SR– 

BatsEDGX–2016–18). 13See Exchange Rule 11.9.01. 14The Exchange notes that the fee for Cboe One 

Summary is equivalent to the aggregate EDGX Top, 

BZX, Top, BYX Top, and EDGA Top fees. The 

Exchange is not proposing to change the current 

Cboe One Summary external distribution fee. 

Instead, the Cboe BYX Exchange, Inc. (‘‘BYX’’) has 

simultaneously with this proposal proposed to 

decrease its fee for BYX Top by $750 in order to 

ensure the proposed fee will continue to not cause 

the combined cost of subscribing to EDGX, EDGA, 

BYX, and BZX individual Top and Last Sale feeds 

to be greater than those currently charged to 

subscribe to the Cboe One Summary fee. 

15See infra notes 38, 39, 41, and 42. 16See e.g., EDGX Fees Schedule, Small Retail 

Broker Distribution Program, which provides for a 

reduced EDGX Top Distribution Fee for small 

broker-dealers that operate a retail business and 

Retail Membership Program, which provides for 

discounted membership fees, logical and physical 

port fees, and market data fees and provides for an 

opportunity for Members to receive an enhanced 

rebate for retail volume. 

17An ‘‘API Service’’ is a type of data feed 

distribution in which a Distributor delivers an API 

or similar distribution mechanism to a third-party 

entity for use within one or more platforms. The 

service allows Distributors to provide Derived Data 

to a third-party entity for use within one or more 

downstream platforms that are operated and 

maintained by the third-party entity. The 

Distributor maintains control of the entitlements, 

but does not maintain technical control of the usage 

or the display. 

Exchange also charges a professional 

user fee of $4.00 per month, a nonprofessional user fee of $0.10 per 

month, an enterprise fee of $15,000 per 

month, and a digital media enterprise 

fee of $2,500 per month that is 

applicable to External Distributors. The 

external distribution fees have been in 

place, without change, since June 1, 

2016.12 In the time since, the Exchange 

has made a number of significant 

enhancements to its platform, including, 

among other things, trading hours 

beginning at 4 a.m. Eastern time (which 

has required additional operational 

support) and the introduction of Retail 

Priority Orders.13 These enhancements 

have resulted in improved trading 

opportunities for investors and, 

consequently, more valuable market 

data. As such, the Exchange proposes to 

increase the monthly charge for external 

distribution of EDGX Top from $1,500 

to $2,250 per month (i.e., an increase of 

$750 per month),14 which would 

continue to be cheaper than similar 

products offered by the certain of the 

Exchange’s competitors.15 The 

Exchange proposes no changes to the 

professional, non-professional, 

enterprise and digital media enterprise 

fees associated with external 

distribution. Further, various incentive 

programs that the Exchange has adopted 

to facilitate the provision of lower-cost 

market data to retail and other investors 

would continue to apply.16 As a result, 

the Exchange believes that the proposed 

fee changes would allow it to be 

appropriately compensated for the value 

of its market data, particularly from 

professional financial services firms that 

use that data for external distribution, 

while simultaneously ensuring that its 

data would continue to be available to 

a wide range of investors and market 

participants at a cost that facilitates 

widespread availability of such data. 

EDGX Top Derived Data API Service 

External Subscriber Fees 

The Exchange next proposes to 

modify fees charged to Distributors that 

distribute EDGX Top Derived Data 

through an Application Programming 

Interface (‘‘API’’)—i.e., the Derived Data 

API Service.17 By way of background, 

‘‘Derived Data’’ is pricing data or other 

data that (i) is created in whole or in 

part from Exchange Data, (ii) is not an 

index or financial product, and (iii) 

cannot be readily reverse-engineered to 

recreate Exchange Data or used to create 

other data that is a reasonable facsimile 

or substitute for Exchange Data. The 

Derived Data API Service program offers 

discounted fees for Distributors that 

make Derived Data available through an 

API, thereby allowing Distributors to 

benefit from reduced fees when 

distributing Derived Data to subscribers 

that establish their own platforms 

(rather than relying on a hosted display 

solution). 

As discussed above, the Exchange 

currently charges a fee of $1,500 per 

month for external distribution of EDGX 

Top (which is proposed to be increased 

to $2,250). Instead of being assessed the 

flat regular fee for external distribution, 

Distributors that distribute Derived Data 

through an API are charged a tiered 

External Subscriber Fee based on the 

number of API Service Platforms (i.e., 

‘‘External Subscribers’’) that receive 

Derived Data from the Distributor 

through a Derived Data API Service. 

Currently, Distributors under this 

program continue to be charged a fee of 

$1,500 per month (the fee normally 

assessed to External Distributors for 

EDGX Top) for each External Subscriber 

if the Distributor makes Derived Data 

available to 1–5 External Subscribers. 

Distributors that make Derived Data 

available to additional External 

Subscribers however benefit from 

discounted pricing based on the number 

of subscribers. Specifically, the external 

distribution fee is lowered to $1,250 per 

month for each External Subscriber if 

the Distributor makes Derived Data 

available to 6–20 External Subscribers, 

and further lowered to $1,000 per 

month for each External Subscriber if 

the Distributor makes Derived Data 

available to 21 or more External 

Subscribers. In light of the proposed 

increase of the EDGX Top external 

distribution fee to $2,250, the Exchange 

proposes to make corresponding 

changes to the distribution fees for 

Distributors of Derived Data through a 

Derived API Service. Particularly, the 

Exchange proposes to modify the 

External Subscriber fees as follows: 

Number of 

external subscribers 

Current 

fee 

Proposed 

fee 

1–5 ...................................... $1,500 $2,250 

6–20 .................................... 1,250 1,800 

21 and above ...................... 1,000 1,500 

The Exchange notes that the External 

Subscriber Fee is non-progressive and 

based on the number of External 

Subscribers that receive Derived Data 

from the Distributor. To illustrate how 

the discount is applied, the Exchange 

has codified an example in the Fees 

Schedule under the notes section of the 

Derived Data Platform Service section, 

which it now proposes to update in 

connection with the proposed changes 

to the External Subscriber fees. 

Currently, the example provides that a 

Distributor providing Derived Data 

based on EDGX Top to six (6) External 

Subscribers that are API Service 

Platforms would be charged a monthly 

fee of $7,500 (i.e., 6 External Subscribers 

× $1,250 each). The Exchange proposes 

to update the example to provide that 

Distributor providing Derived Data 

based on EDGX Top to six (6) External 

Subscribers that are API Service 

Platforms would be charged a monthly 

fee of $10,800 (i.e., 6 External 

Subscribers × $1,800 each). 

Cboe One Premium and EDGX Top 

Depth New External Distributor Credit 

The Exchange next proposes to adopt 

a New External Distributor Credit 

applicable to Cboe One Premium and 

extend the New External Distributor 

Credit applicable to EDGX 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 EDGX and its affiliated exchanges 

(i.e., BYX, Cboe EDGA Exchange, Inc. 

(‘‘EDGA’’), and Cboe BZX Exchange, 

Inc. (‘‘EDGX’’)) and contains optional 

functionality which enables recipients 

to receive aggregated two-sided 

quotations from EDGX and its affiliated 

equities exchanges for up to five (5) 


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18The 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, Cboe EDGA Exchange, Inc. (‘‘EDGA’’), 

and Cboe BZX Exchange, Inc. (‘‘EDGX’’)[sic]). 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 EDGX 

Summary Depth, BYX Summary Depth, EDGA 

Summary Depth, and BZX Summary Depth external 

distribution fees. 

19An 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. 

20See Exchange Rule 13.8(b). 

21The 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. 74282 (February 17, 

2015), 80 FR 9487 (February 23, 2015) (SR–EDGX– 

2015–09). 

22See Exchange Rule 13.8(f). 

23EDGX Depth is a data feed that contains all 

displayed orders for listed securities trading on the 

Exchange, order executions, order cancellations, 

order modifications, order identification numbers, 

and administrative messages. See Exchange Rule 

13.8(a). 

24EDGX Last Sale is an uncompressed data feed 

that offers only execution information based on 

orders entered into the System. See Exchange Rule 

13.8(d). 

25See Securities Exchange Act Release No. 77888 

(May 24, 2016) 81 FR 34384 (May 31, 2016) (SR– 

BatsEDGX–2016–18). 

26 15 U.S.C. 78f. 

27 15 U.S.C. 78f(b)(4). 

28 15 U.S.C. 78k–1. 

29See 17 CFR 242.603. 

price levels.18 Currently, the Exchange 

charges an external distribution fee of 

$12,500 per month to External 

Distributors 19 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 EDGA 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,20 which is a data 

feed that disseminates, on a real-time 

basis, the aggregate BBO of all displayed 

orders for securities traded on EDGX 

and its affiliated equities exchanges and 

also contains individual last sale 

information for the EDGX and its 

affiliated equities exchanges.21 It also 

offers a New External Distributor Credit 

of one (1) month for subscribers of 

EDGX 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. EDGX Summary Depth also 

contains the individual last sale 

information, Market Status, Trading 

Status, and Trade Break messages.22 The 

External Distribution fees for Cboe One 

Premium is equivalent to the aggregate 

EDGX Summary Depth, BZX Summary 

Depth, BYX Summary Depth, and EDGA 

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 EDGX Summary Depth from one (1) 

month to three (3) months and the 

Exchange’s affiliates BYX, BZX and 

EDGA 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 EDGX, EDGA, 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. 

Waiver of External Distribution Fees for 

EDGX Top and EDGX Last Sale 

The Exchange currently provides 

External Distributors of EDGX Depth,23

upon request and at no additional 

External Distribution Fee, access to the 

EDGX Top or EDGX Last Sale 24 feeds 

for External Distribution. This waiver 

was intended to encourage the 

distribution of the EDGX Top and Last 

Sale data products. The waiver has been 

in place, without change, since June 1, 

2016.25 The Exchange believes such 

waiver has been in place for ample time 

to allow External Distributors to grow 

their respective subscriber bases and no 

longer wishes to provide this waiver of 

the External Distribution fees for EDGX 

Top and EDGX Last Sale feeds. 

Accordingly, the Exchange proposes to 

strike this language from the fees 

schedule. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,26

in general, and furthers the objectives of 

Section 6(b)(4),27 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.28 Finally, the proposed rule 

change is also consistent with Rule 603 

of Regulation NMS,29 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 operates in a highly 

competitive environment. Indeed, there 

are now sixteen registered U.S equities 

exchanges, and with the exception of 

Long-Term Stock Exchange, Inc. 

(‘‘LTSE’’), which has determined to not 

offer any proprietary market data feeds, 

each of these exchanges offer associated 

market data products to their customers, 

either with or without a fee. It is in this 

robust and competitive market in which 

the Exchange is proposing to increase its 

fees, while still providing its data at a 

significantly lower price than competing 

products offered by other national 

securities exchanges with similar data 

quality. 

The Commission has repeatedly 

expressed its preference for competition 

over regulatory intervention in 

determining prices, products, and 

services in the securities markets. 

Further, 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 


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30NetCoalition 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). 

31 Id. at 535. 

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 

(May16, 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. 

33See CTA Quarterly Population Metrics (Q1 

2021), available at https://www.ctaplan.com/ 

publicdocs/ctaplan/CTAPLAN_Population_

Metrics_3Q2021.pdf; UTP Quarterly Population 

Metrics (Q1 2021), available at https://

www.utpplan.com/DOC/UTP_2021_Q1_Stats_with_

Processor_Stats.pdf. 

34This statistic reflects the number of External 

Distributors that purchase EDGX Top divided by 

the number of External Distributors that purchase 

consolidated market data from the SIPs, as reflected 

in publicly available information. Id. The Exchange 

does not have similar information about the number 

of External Distributors that purchase top-of-book 

data from other exchanges as competing exchanges 

do not typically make this information publicly 

available due to the commercially sensitive nature 

of such information. 

35Although the Exchange does not have access to 

the customer lists for other competing products, it 

understands based on conversations with 

subscribers to EDGX Top that they typically view 

exchange top-of-book products as substitutes and 

do not generally look to purchase such data from 

more than one national securities exchange. 

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.’ ’’ 30 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.’ ’’ 31 As discussed in 

this filing, significant competitive forces 

constrain the ability of the Exchange to 

charge supra-competitive fees. 

EDGX Top and EDGX Top Derived Data 

API Service 

i. The EDGX Top Feed Is an Optional 

Market Data Product, and the Exchange 

Is Constrained in Its Pricing by 

Significant Competitive Forces 

Subscribing to EDGX Top is entirely 

optional. The Exchange is not required 

to make EDGX Top available to any 

customers, nor is any customer required 

to purchase EDGX Top.32 A customer’s 

decision as to whether to purchase 

EDGX Top is therefore entirely 

discretionary and is based on that firms 

individual business needs. Generally, 

firms that choose to subscribe to EDGX 

Top do so because they believe that it 

is a cost-effective source for top-of-book 

data that provides valuable information 

about the market for national market 

system (‘‘NMS’’) stocks traded on the 

Exchange, where a consolidated display 

covering all U.S. equities exchanges is 

not required. Such firms are able to 

determine for themselves whether 

EDGX Top helps them to achieve their 

business goals, and if so, whether or not 

it is attractively priced compared to 

other similar top-of-book products 

offered by competing exchanges. 

Indeed, if EDGX Top does not provide 

sufficient value 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 EDGX Top. In fact, 

comparing the number of External 

Distributors that currently subscribe to 

EDGX Top, based on data compiled by 

the Exchange as of November 2021, to 

the total number of External Distributors 

that subscribe to core data offered by the 

CTA and UTP SIPs, as published on 

plan websites for Q1 2021,33 less than 

7.37% of External Distributors that 

purchase U.S. equities data choose to 

subscribe to EDGX Top.34 The EDGX 

Top Feed therefore represents an 

insignificant proportion of the market 

for such market data, and significantly 

more External Distributors choose not to 

purchase this product than those that 

do. Given the insignificant percentage of 

External Distributors that consume 

EDGX Top, it is clear that such firms 

can and do exercise their right to choose 

to purchase, or not purchase, this 

particular market data product. And, as 

discussed later in this filing, any 

External Distributor of top-of-book data 

that does not wish to purchase EDGX 

Top, due to the price of that data or for 

any other reason, can choose to 

substitute similar information from 

other exchanges. Although the Exchange 

is not required to make any data, 

including top-of-book data, available 

through its proprietary market data 

platform, the Exchange believes that 

making such data available increases 

investor choice, and contributes to a fair 

and competitive market. Specifically, 

making such data publicly available 

through proprietary data feeds allows 

investors to choose alternative, 

potentially less costly, market data 

based on their business needs. For 

example, a broker or fintech firm may 

choose to purchase EDGX Top, or a 

similar product from another exchange, 

in order to perform investment analysis, 

or to provide general information about 

the market for U.S. equity securities, 

respectively. In either case the choice to 

purchase EDGX Top would be based on 

the firm’s determination of the value of 

the data offered by their chosen product 

compared to the cost of acquiring this 

data instead of receiving similar data 

from other sources. EDGX Top serves as 

a valuable reference for investors that do 

not require a consolidated display. 

Making alternative products available to 

market participants ultimately ensures 

competition in the marketplace, and 

constrains the ability of exchanges to 

charge supra-competitive fees. Further, 

in the event that a market data customer 

views one exchange’s top-of-book data 

product and/or fees as more or less 

attractive than a competitor’s offerings 

they can and often do switch between 

competing products. As discussed, 

similar top-of-book information is 

available from a number of competing 

U.S. equities exchanges.35 This includes 

a number of large established exchanges 

that charge for access to such top-ofbook data, as well as certain smaller or 

new exchange entrants that provide 

similar data without charge, in many 

cases as a way of attracting customers to 

their exchange while they seek to grow 

market share. In this way, EDGX Top 

and other top-of-book products offered 

by a number of U.S. equities exchanges, 

are all substitutes. The availability of 

these substitute products constrains the 

Exchange’s ability to charge supracompetitive prices as market 

participants can easily obtain similar 

data from one of the Exchange’s many 

competitors. In fact, the impact of 

competition on the market in which 

EDGX Top is offered to market 

participants and investors is showcased 

by Exchange affiliates’ other recent fee 

changes related to this product, which 

involved the reduction of fees to 

facilitate the Exchange affiliates’ ability 

to compete for customers. 

Distributors can discontinue use of 

EDGX Top at any time and for any 

reason, including due to an assessment 

of the reasonableness of fees charged. 

Other External Distributors are free to 

similarly cancel their subscriptions in 

favor of a competitor offering, or 

cheaper or free data offered by the 

Exchange’s affiliated U.S. equities 

exchanges, if they believe that the fees 

are too high given their particular use 

case for obtaining the data that the 

Exchange provides over EDGX Top. The 

Exchange offers all of its proprietary 

market data products pursuant to a 

month-to-month contract that allows 

subscribers to choose to terminate their 

subscription at any time. As a result, 

there are no contractual or other legal 

impediments for firms that wish to 

cancel their subscription to the 

Exchange’s market data products, 


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3608 Federal Register / Vol. 87, No. 15 / Monday, January 24, 2022 / Notices 

36Market data vendors typically establish 

connectivity to a number of national securities 

exchanges to be able to offer their market data to 

customers. 

37See Nasdaq Equity Rules, Equity 7, Pricing 

Schedule, Section 147(c)(1). In addition, Nasdaq 

also charges distributors a $100 monthly 

administrative fee. See Nasdaq Equity Rules, Equity 

7, Pricing Schedule, Section 135. 

38See NYSE PDP Market Data Pricing, Section 

1.3, NYSE BBO. 

39See NYSE PDP Market Data Pricing, Section 

1.4, NYSE Trades. 

40Supra note 3. 

41See NYSE PDP Market Data Pricing, Section 

3.3, NYSE Arca BBO; NYSE PDP Market Data 

Pricing, Section 3.4, NYSE Arca Trades. 

42See Nasdaq Equity Rules, Equity 7, Pricing 

Schedule, Section 147(c)(1). In addition, Nasdaq 

also charges distributors a $100 monthly 

administrative fee. See Nasdaq Equity Rules, Equity 

7, Pricing Schedule, Section 135. 

43See generally, the Nasdaq Basic fees at http:// 

www.nasdaqtrader.com/TraderB.aspx?

id=MDDPricingALLN. 

44Supra note 10. 

including EDGX Top. In addition, the 

Exchange notes that a majority of 

External Distributors of EDGX Top 

either receive this data through a market 

data vendor, as opposed to directly from 

the Exchange, or is a market data vendor 

itself. Thus, firms can seamlessly switch 

to any other competitor product offered 

by their chosen vendor without 

incurring additional switching costs, 

such as the cost of establishing 

connectivity to another exchange to 

receive its market data.36

In setting the proposed fees for EDGX 

Top, the Exchange considered the 

competitiveness of the market for 

proprietary data and all of the 

implications of that competition. 

Indeed, the Exchange is not in a 

position to charge unreasonable fees for 

its top-of-book data as there are a 

number of competing products in the 

market, including products that are 

currently offered free of charge by 

certain other exchanges that have 

determined not to charge for their 

market data. The existence of 

alternatives to EDGX Top ensures that 

the Exchange cannot set unreasonable 

fees when vendors and subscribers can 

freely elect these alternatives or choose 

not to purchase a specific proprietary 

data product if the attendant fees are not 

justified by the returns that any 

particular vendor or data recipient 

would achieve through the purchase. 

Similarly, in an effort to widen 

distribution to market participants that 

use equities market data to compute 

pricing for certain derivatives 

instruments, national securities 

exchanges, including for example the 

Exchange and The Nasdaq Stock Market 

LLC (‘‘Nasdaq’’),37 offer discounted 

pricing for Derived Data that is created 

using their top of book products. 

Derived Data is largely used to create 

derivative instruments, such as 

contracts for difference, rather than to 

trade equity securities, and is often 

purchased by market data customers 

outside of the U.S. where such 

derivative instruments are more 

commonly offered. As a result, 

customers that purchase top of book 

data to create Derived Data do not need 

a consolidated quotation, and typically 

only purchase top of book data to create 

Derived Data from one source. If a 

competing exchange were to charge less 

for a similar product than the Exchange 

proposes to charge under the EDGX Top 

Derived Data API Service fee structure, 

prospective subscribers may choose not 

subscribe to, or cease subscribing to, the 

EDGX Top Derived Data API Service. 

The existence of alternatives ensures 

that the Exchange cannot set 

unreasonable or unfairly discriminatory 

fees, as subscribers are free to elect such 

alternatives. 

ii. The Proposed Fees Are Reasonable 

Given the Value of the Data Provided to 

Customers, and When Compared to 

Competing Market Data Products 

The proposed fees are also reasonable 

as even with the proposed fee increase 

they would continue to represent a 

relatively modest fee for top-of-book 

data that has proven valuable for 

investors. EDGX Top is a competitivelypriced alternative to top-of-book data 

disseminated by other national 

securities exchanges. It is purchased by 

a wide variety of market participants 

and vendors, including data platforms, 

websites, fintech firms, buy-side 

investors, retail brokers, regional banks, 

and securities firms inside and outside 

of the U.S. that desire low cost, high 

quality, real-time U.S. equity market 

data. By providing lower cost access to 

U.S. equity market data, EDGX Top 

benefits a wide range of investors that 

participate in the national market 

system. As discussed, the decision to 

purchase a particular market data 

product from a particular exchange is 

largely based on two factors: (1) The 

quality of the data, and (2) the price 

charged for access to that data. The 

Exchange believes that EDGX Top is 

competitive on both of these factors. 

First, EDGX Top would remain 

competitively priced compared to 

similar products offered by other 

comparable U.S. equities exchanges. 

Although EDGX Top is not offered free 

of charge like certain other competitor 

offerings, particularly those offered by 

newer U.S. equities exchanges that are 

seeking to grow market share, it is made 

available at a price that is less than the 

prices charged by the Exchange’s main 

competitors—i.e., those with 

comparable market shares and data 

quality. Notably, even with the 

proposed fee increase, EDGX Top would 

remain significantly cheaper than 

similar products offered by New York 

Stock Exchange LLC (‘‘NYSE’’) and 

Nasdaq in terms of the fees charged for 

external distribution. For example, 

NYSE charges a total of $4,000 per 

month for access and redistribution of 

their equivalent products, i.e., $1,500 

per month for applicable top-of-book 

quotation information,38 and an 

additional $1,500 per month for 

transaction information,39 both of which 

are included in EDGX Top for a single 

fee.40 In addition, a $1,000 per month 

redistribution fee is applied. NYSE 

Arca, Inc. (‘‘Arca’’), which has a similar 

pricing model to NYSE, charges a rate 

of $2,250 per month for access and 

redistribution of its equivalent products, 

separated into a $750 per month charge 

for top-of-book quotation information, 

an additional $750 per month charge for 

transaction information, and $750 per 

month for redistribution.41 Therefore, 

while Arca’s fees are slightly less than 

the proposal, the proposed fees are inline with those charged by Arca. 

Finally, Nasdaq charges its External 

Distributors a fee of $2,000 per month 

for Nasdaq Basic, which includes both 

top-of-book quotation information and 

transaction information for the same fee, 

a $350 per month Data Consolidation 

fee, and a $100 per month Monthly 

Administrative Fee.42 The external 

distribution charges associated with 

obtaining comparable U.S. equities 

market data from NYSE and Nasdaq 

runs more than the proposed fee to be 

charged by the Exchange, meaning that 

the Exchange would continue to be 

offering its data at a price that is 

attractive compared to the prices 

charged by its competitors. The fee for 

EDGX Top Derived Data API Service 

would remain competitively priced 

compared to Nasdaq which also offers 

pricing discounts for Derived Data.43

Second, the proposed fees are 

reasonable given the value of the data 

provided in EDGX and used by data 

recipients in their profit-generating 

activities. EDGX Top provides top-ofbook quotations and transactions 

executed on the Exchange, and provides 

a valuable window into the market for 

securities traded on a market that 

accounts for about 5% of U.S. equity 

market volume today.44 As discussed, 

the Exchange offers EDGX Top in a 

competitive environment where firms 

may freely choose which market data 


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Federal Register / Vol. 87, No. 15 / Monday, January 24, 2022 / Notices 3609 

45See e.g., Cboe EDGA Exchange, Inc., Fee 

Schedule, EDGA Top. 

46See https://www.cboe.com/us/equities/market_

statistics/market_quality/. 47Supra note 16. 

products best suit their business needs. 

Invariably, firms that choose to 

purchase EDGX Top instead of receiving 

one of the many free products offered by 

other exchanges,45 have decided that the 

value of EDGX Top is greater than that 

offered by those other products. The 

Exchange consistently ranks among the 

top U.S. equities exchanges in terms of 

various market quality measures, e.g., 

NBBO quote quality and NBBO market 

share.46 In turn, investors may choose to 

rely on the Exchange’s market data 

products instead of other competitor 

offerings based on the value they 

provide in relation to any additional 

cost associated with obtaining that 

market data from the Exchange. For 

example, investors may wish to obtain 

market data from an exchange that has 

a higher time at the inside, as data 

obtained from an exchange that is 

quoting more often at the NBBO may 

better reflect the applicable market for 

securities it trades. Similarly, an 

exchange with greater overall market 

share will produce more transaction 

information that may be valuable to 

consumers of its data. Improvements in 

market quality will therefore directly 

impact the value of the market data that 

an exchange is able to offer to investors. 

iii. The Proposed Fees Are Equitable 

and Not Unfairly Discriminatory as 

External Distributors Will Be Subject to 

Uniform Pricing Based on Their Usage 

of the Data and Differences Between the 

Fees Charged for Internal and External 

Distribution are Appropriate 

The Exchange believes the proposed 

fees for external distribution of EDGX 

Top will continue to be allocated fairly 

and equitably among subscribers, and 

are not unfairly discriminatory, as the 

proposed fees will apply equally to all 

data recipients that choose to subscribe 

to EDGX Top and distribute that data to 

external subscribers. As proposed, all 

External Distributors of EDGX Top will 

continue to be subject to the same 

external distribution fee, regardless of 

the type of business that they operate, 

or the use they plan to make of the data 

feed. Thus, all External Distributors 

would have access to EDGX Top on the 

same equitable and non-discriminatory 

terms. 

The Exchange believes that it is also 

fair and equitable, and not unfairly 

discriminatory to continue to charge 

different fees for internal and external 

distribution of the EDGX Top. As is 

common practice, the Exchange charges 

lower fees to distributors that use its 

market data products for internal 

distribution only than to distributors 

that redistribute that data externally to 

their customers. In the case of EDGX 

Top, External Distributors are subject to 

a higher distribution fee, and are also 

subject to professional user fees, nonprofessional user fees, an enterprise fee, 

and a digital media enterprise fee. The 

Exchange continues to believe that it is 

appropriate to distinguish between 

internal and External Distributors in 

setting fees for EDGX Top as External 

Distributors can redistribute the 

Exchange’s market data to its clients for 

a fee, whereas Internal Distributors are 

not allowed to redistribute the data. 

Finally, the Exchange believes the 

proposed changes to the distribution 

fees for Distributors of EDGX Top 

Derived Data through a Derived API 

Service is equitable and not unfairly 

discriminatory because the Exchange 

will apply the same fees to any similarly 

situated Distributors that elect to 

participate in the program based on the 

number of External Subscribers 

provided access to the Derived Data 

through an API Service. The Exchange 

believes that it is equitable and not 

unfairly discriminatory to continue to 

provide discounted rates to Distributors 

that provide access to at least six 

External Subscribers as the discounted 

rates are designed to incentivize firms to 

grow the number of External 

Subscribers that purchase Derived Data 

from the Exchange. 

New External Distributor Fee Credit 

The Exchange also 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 

EDGX 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 EDGX, 

EDGA, 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. 

EDGX Top and EDGX Last Sale External 

Distribution Fee Waiver for Fees for 

External Distributors of EDGX Depth 

Finally, the Exchange amending the 

fee waiver of EDGX Top and EDGX Last 

Sale feeds for External Distributors of 

EDGX Depth is equitable and 

reasonable. The Exchange believes 

eliminating the fee waiver is equitable 

and reasonable because it has been 

available, without change, since June 1, 

2016 47 providing External Distributors 

with ample time to grow their 

subscriber bases. Moreover, the 

Exchange is not required to provide any 

such waiver to External Distributors of 

EDGX Depth. 

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. Top-ofbook data, depth-of-book data, and 

derived data is broadly disseminated by 

competing U.S. equities exchanges. 

There are therefore a number of 

alternative products available to market 

participants and investors, including 

products offered by certain competing 

exchanges without charge. In this 

competitive environment potential 

subscribers are free to choose which 

competing product to purchase to 

satisfy their need for market 

information. Often, the choice comes 

down to price, as market data customers 

look to purchase cheaper data products, 

and quality, as market participants seek 

to purchase data that represents 

significant market liquidity. 

Intramarket Competition. The 

Exchange believes that the proposed 

fees do not put any market participants 

at a relative disadvantage compared to 


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3610 Federal Register / Vol. 87, No. 15 / Monday, January 24, 2022 / Notices 

48 15 U.S.C. 78s(b)(3)(A). 

49 17 CFR 240.19b–4(f). 

50 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

other market participants. As discussed, 

the proposed fees, credit, and 

eliminated waiver would apply to all 

External Distributors of EDGX Top, 

Cboe One Premium, and EDGX Depth, 

respectively, on an equal and nondiscriminatory basis. The continued 

difference in fees for internal and 

external distribution of EDGX Top are 

appropriate given the ability for 

External Distributors to redistribute data 

externally to their clients. Similarly, the 

credit applicable to only External 

Distributors is appropriate as it 

incentivizes such External Distributors 

to enlist subscribers, whereas Internal 

Distributors have no subscribers outside 

their firm. The Exchange therefore 

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. 

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 furtherance 

of the purposes of the Act. In setting the 

proposed fees, the Exchange is 

constrained by the availability of 

numerous substitute products offered by 

other national securities exchanges. 

Because market data customers can find 

suitable substitute feeds, an exchange 

that overprices its market data products 

stands a high risk that users may 

substitute another product. These 

competitive pressures ensure that no 

one exchange’s market data fees can 

impose an undue 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 

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 48 and paragraph (f) of Rule 

19b–4 49 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– 

CboeEDGX–2022–002 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–CboeEDGX–2022–002. 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 

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–CboeEDGX–2022–002 and 

should be submitted on or before 

February 14, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.50

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01228 Filed 1–21–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93987; File No. SR– 

NASDAQ–2022–001] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

NOM Pricing Schedule at Options 7, 

Section 2 

January 18, 2022. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on January 

3, 2022, The Nasdaq Stock Market LLC 

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

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

Nasdaq Options Market (‘‘NOM’’) 

Pricing Schedule at Options 7, Section 

2. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 


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