16274 Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f). 15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

waivers 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. 

Other exchanges are free to adopt a 

similar waiver if they choose. 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 13 and paragraph (f) of Rule 

19b–4 14 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SRCboeEDGA–2022–003 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–2022–003. 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 

10:00 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–2022–003 and 

should be submitted on or before April 

12, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–05985 Filed 3–21–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94427; File No. SR–ISE– 

2022–06] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Market Maker 

Plus Tier 1b Rebate for SPY, QQQ, and 

IWM 

March 16, 2022. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on March 1, 

2022, Nasdaq ISE, LLC (‘‘ISE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

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 its 

Pricing Schedule at Options 7, Section 

3 to increase the Market Maker Plus Tier 

1b rebate for SPY, QQQ, and IWM. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/ise/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 

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 purpose of the proposed rule 

change is to amend the Exchange’s 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices 16275 

3 ‘‘Select Symbols’’ are options overlying all 

symbols listed on the Exchange that are in the 

Penny Interval Program. 

4 ‘‘Non-Select Symbols’’ are options overlying all 

symbols excluding Select Symbols. 

5The term ‘‘Market Makers’’ refers to Competitive 

Market Makers and Primary Market Makers, 

collectively. 

6See Options 7, Section 3, note 5. 

7Qualifying series are series trading between 

$0.03 and $3.00 (for options whose underlying 

stock’s previous trading day’s last sale price was 

less than or equal to $100) and between $0.10 and 

$3.00 (for options whose underlying stock’s 

previous trading day’s last sale price was greater 

than $100) in premium. 

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

9 15 U.S.C. 78f(b)(4) and (5). 

10NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. 

Cir. 2010) (quoting Securities Exchange Act Release 

No. 59039 (December 2, 2008), 73 FR 74770, 74782– 

83 (December 9, 2008) (SR–NYSEArca–2006–21)). 

11Securities Exchange Act Release No. 51808 

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

(‘‘Regulation NMS Adopting Release’’). 

Pricing Schedule at Options 7, Section 

3 to increase the Market Maker Plus Tier 

1b rebate for SPY, QQQ, and IWM. 

Today, the Exchange operates a 

Market Maker Plus program for regular 

orders in Select Symbols 3 and NonSelect Symbols 4 that provides tiered 

incentives to Market Makers 5 based on 

time spent quoting at the National Best 

Bid or National Best Offer (‘‘NBBO’’).6

This program is designed to reward 

Market Makers that contribute to market 

quality by maintaining tight markets in 

symbols traded on the Exchange. In 

particular, Market Makers that qualify 

for this program will not pay the maker 

fee of $0.18 per contract (in Select 

Symbols) or $0.70 per contract (in NonSelect Symbols), and will instead 

receive incentives based on the 

applicable Market Maker Plus Tier for 

which they qualify. Market Makers are 

evaluated each trading day for the 

percentage of time spent on the NBBO 

for qualifying series that expire in two 

successive thirty calendar day periods 

beginning on that trading day. A Market 

Maker Plus is a Market Maker who is on 

the NBBO a specified percentage of the 

time on average for the month based on 

daily performance in the qualifying 

series for each of the two successive 

periods described above.7

For SPY, QQQ, and IWM, the 

Exchange currently provides the below 

marker rebates based on the applicable 

Market Maker Plus tier for which the 

Market Maker qualifies. 

SPY, QQQ, AND IWM 

Market maker plus tier 

(specified percentage) 

Regular 

maker 

rebate 

Linked 

maker 

rebate 

Tier 1a (50% to less than 65%) .............................................................................................................................................. ($0.00) N/A 

Tier 1b (65% to less than 80%) or (over 50% and adds liquidity in the qualifying symbol that is executed at a volume of 

greater than 0.10% of Customer Total Consolidated Volume) ........................................................................................... ($0.05) N/A 

Tier 2 (80% to less than 85%) or (over 50% and adds liquidity in the qualifying symbol that is executed at a volume of 

greater than 0.20% of Customer Total Consolidated Volume) ........................................................................................... ($0.18) ($0.15) 

Tier 3 (85% to less than 90%) or (over 50% and adds liquidity in the qualifying symbol that is executed at a volume of 

greater than 0.25% of Customer Total Consolidated Volume) ........................................................................................... ($0.22) ($0.19) 

Tier 4 (90% or greater) or (over 50% and adds liquidity in the qualifying symbol that is executed at a volume of greater 

than 0.50% of Customer Total Consolidated Volume) ........................................................................................................ ($0.26) ($0.23) 

The Exchange now proposes to 

increase the Market Maker Plus Tier 1b 

rebate from $0.05 to $0.10 per contract. 

No other changes are being made to the 

Market Maker Plus program under this 

proposal. 

By increasing the Tier 1b rebate, the 

Exchange seeks to further incentivize 

Market Makers to participate in the 

Market Maker Plus program for SPY, 

QQQ, and IWM. By fortifying 

participation in this program, the 

Exchange believes that the proposed 

changes will continue to encourage 

Market Makers to post quality markets 

in SPY, QQQ, and IWM, thereby 

improving trading conditions for all 

market participants through narrower 

bid-ask spreads and increased depth of 

liquidity available at the inside market. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,8 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,9 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Exchange’s proposed changes to 

its Pricing Schedule are reasonable in 

several respects. As a threshold matter, 

the Exchange is subject to significant 

competitive forces in the market for 

options securities transaction services 

that constrain its pricing determinations 

in that market. The fact that this market 

is competitive has long been recognized 

by the courts. In NetCoalition v. 

Securities and Exchange Commission, 

the D.C. Circuit stated as follows: ‘‘[n]o 

one disputes that competition for order 

flow is ‘fierce.’ . . . As the SEC 

explained, ‘[i]n the U.S. national market 

system, buyers and sellers of securities, 

and the broker-dealers that act as their 

order-routing agents, have a wide range 

of choices of where to route orders for 

execution’; [and] ‘no exchange can 

afford to take its market share 

percentages for granted’ because ‘no 

exchange possesses a monopoly, 

regulatory or otherwise, in the execution 

of order flow from broker 

dealers’. . . .’’ 10

The Commission and the courts have 

repeatedly expressed their preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, while 

adopting a series of steps to improve the 

current market model, 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.’’ 11

Numerous indicia demonstrate the 

competitive nature of this market. For 

example, clear substitutes to the 

Exchange exist in the market for options 

security transaction services. The 

Exchange is only one of sixteen options 

exchanges to which market participants 

may direct their order flow. Within this 

environment, market participants can 

freely and often do shift their order flow 

among the Exchange and competing 

venues in response to changes in their 

respective pricing schedules. As such, 

the proposal represents a reasonable 


lotter on DSK11XQN23PROD with NOTICES1
16276 Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices 

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

13 17 CFR 240.19b–4(f)(2). 

attempt by the Exchange to increase its 

liquidity and market share relative to its 

competitors. 

In particular, the Exchange’s proposal 

to increase the SPY, QQQ, and IWM 

Tier 1b rebate from $0.05 to $0.10 per 

contract is a reasonable attempt to 

fortify participation in the Market Maker 

Plus program and improve market 

quality on ISE. The Exchange will apply 

the proposed changes to SPY, QQQ, and 

IWM as they are three of the most 

actively traded symbols on ISE, so the 

Exchange believes that further 

incentivizing liquidity in these three 

names will have a significant and 

beneficial impact on market quality on 

ISE. 

The Exchange also believes that the 

proposed changes are equitable and not 

unfairly discriminatory as all Market 

Makers would be eligible to receive the 

increased Tier 1b rebate in SPY, QQQ, 

and IWM by meeting the quoting 

requirements described above. 

Furthermore, the Exchange continues to 

believe that it is not unfairly 

discriminatory to offer this program’s 

incentives to Market Makers only. 

Market Makers, and in particular, those 

Market Makers that participate in and 

qualify for the Market Maker Plus 

program, add value through continuous 

quoting, and are subject to additional 

requirements and obligations (such as 

quoting obligations) that other market 

participants are not. Lastly, the 

proposed changes will further 

encourage Market Makers to maintain 

tight markets in SPY, QQQ, and IWM, 

thereby increasing liquidity and 

attracting additional order flow to the 

Exchange, which will benefit all market 

participants in the quality of order 

interaction. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

In terms of intra-market competition, 

while the proposed increase to the SPY, 

QQQ, and IWM Tier 1b rebate would 

apply directly to Market Makers that 

participate in the Market Maker Plus 

program, the Exchange believes that the 

proposed changes will further 

strengthen participation in the program, 

ultimately to the benefit of all market 

participants. As discussed above, 

continuing to encourage participation in 

the Market Maker Plus program will 

improve market quality by incentivizing 

Market Makers to provide significant 

quoting at the NBBO. This, in turn, 

improves trading conditions for all 

market participants through narrower 

bid-ask spreads and increased depth of 

liquidity available at the inside market, 

thereby attracting additional order flow 

to the Exchange. 

In terms of inter-market competition, 

the Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees and rebates to remain competitive 

with other exchanges. Because 

competitors are free to modify their own 

fees in response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. 

In sum, if the changes proposed 

herein are unattractive to market 

participants, it is likely that the 

Exchange will lose market share as a 

result. Accordingly, the Exchange does 

not believe that the proposed changes 

will impair the ability of members or 

competing order execution venues to 

maintain their competitive standing in 

the financial markets. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

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)(ii) of the Act 12 and Rule 

19b–4(f)(2) 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: (i) 

Necessary or appropriate in the public 

interest; (ii) for the protection of 

investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

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– 

ISE–2022–06 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–ISE–2022–06. 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–ISE–2022–06 and should be 

submitted on or before April 12, 2022. 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices 16277 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed fee 

changes on January 3, 2022 (SR-CboeBZX–2022– 

001). On March 3, 2022 the Exchange withdrew that 

filing and submitted this proposal. 4The 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, EDGX, and EDGA). See Exchange Rule 

11.22(j). 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’’). The Cboe One 

Premium external distribution fee is equal to the 

aggregate BZX Summary Depth, BYX Summary 

Depth, EDGX Summary Depth, and EDGA Summary 

Depth external distribution fees. 

5An 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.14

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–05977 Filed 3–21–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

TIME AND DATE: 2:00 p.m. on Thursday, 

March 24, 2022. 

PLACE: The meeting will be held via 

remote means and/or at the 

Commission’s headquarters, 100 F 

Street NE, Washington, DC 20549. 

STATUS: This meeting will be closed to 

the public. 

MATTERS TO BE CONSIDERED: 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the closed meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

In the event that the time, date, or 

location of this meeting changes, an 

announcement of the change, along with 

the new time, date, and/or place of the 

meeting will be posted on the 

Commission’s website at https://

www.sec.gov. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) 

and (10) and 17 CFR 200.402(a)(3), 

(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and 

(a)(10), permit consideration of the 

scheduled matters at the closed meeting. 

The subject matter of the closed 

meeting will consist of the following 

topics: 

Institution and settlement of 

injunctive actions; 

Institution and settlement of 

administrative proceedings; 

Resolution of litigation claims; and 

Other matters relating to examinations 

and enforcement proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting agenda items that 

may consist of adjudicatory, 

examination, litigation, or regulatory 

matters. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information; please contact 

Vanessa A. Countryman from the Office 

of the Secretary at (202) 551–5400. 

(Authority: 5 U.S.C. 552b.) 

Dated: March 17, 2022. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2022–06095 Filed 3–18–22; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94432; File No. SR– 

CboeBZX–2022–015] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend the 

Fees Applicable to Various Market 

Data Products 

March 16, 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 March 3, 

2022, Cboe BZX Exchange, Inc. (the 

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

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe BZX Exchange, Inc. (‘‘BZX’’ 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/bzx/), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Market Data section applicable to its 

equities trading platform (‘‘BZX 

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 

BZX Summary Depth Feed from one (1) 

month to three (3) months.3

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 BZX and its affiliated exchanges (i.e., 

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

EDGX Exchange, Inc. (‘‘EDGX’’), and 

Cboe EDGA Exchange, Inc. (‘‘EDGA’’)) 

and contains optional functionality 

which enables recipients to receive 

aggregated two-sided quotations from 

BZX and its affiliated equities 

exchanges for up to five (5) price levels.4

Currently, the Exchange charges an 

external distribution fee of $12,500 per 

month to External Distributors 5 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 Premium Feed. The Exchange 

believes the proposal will incentivize 

External Distributors to enlist new users 

to receive Cboe One Premium. To 


lotter on DSK11XQN23PROD with NOTICES1