Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices 2265 

numerous alternative venues that compete for order 

flow, including SRO markets, internalizing BDs and 

various forms of alternative trading systems 

(‘‘ATSs’’), including dark pools and electronic 

communication networks (‘‘ECNs’’). Each SRO 

market competes to produce transaction reports via 

trade executions, and two FINRA-regulated TRFs 

compete to attract internalized transaction reports. 

It is common for BDs to further and exploit this 

competition by sending their order flow and 

transaction reports to multiple markets, rather than 

providing them all to a single market. Competitive 

markets for order flow, executions, and transaction 

reports provide pricing discipline for the inputs of 

proprietary data products. The large number of 

SROs, TRFs, BDs, and ATSs that currently produce 

proprietary data or are currently capable of 

producing it provides further pricing discipline for 

proprietary data products. Each SRO, TRF, ATS, 

and BD is currently permitted to produce 

proprietary data products, and many currently do 

or have announced plans to do so, including 

Nasdaq, NYSE, NYSE MKT, NYSE Arca, IEX, and 

BATS/Direct Edge. 

37 15 U.S.C. 78s(b)(3)(A)(ii). 

38 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

The proposed change is to increase 

the monthly subscription fee for 

FilterView from $500 to $750 per month 

per subset of data. The proposal will not 

impose any burden on competition 

because it is simply a price change that 

will not alter the overall market 

structure. Because the proposed fees 

will become one aspect of the total cost 

of interacting with the Exchange, the 

Exchange will lose revenue if these total 

costs prove to be excessive. 

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. 

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.37

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– 

NASDAQ–2017–134 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–NASDAQ–2017–134. 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–NASDAQ–2017–134 and 

should be submitted on or before 

February 6, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.38

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00524 Filed 1–12–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82472; File No. SR–ISE– 

2018–03] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Price Level 

Protection Rule 

January 9, 2018. 

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 January 2, 

2018, Nasdaq ISE, LLC (‘‘ISE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘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 

Rule 714(b)(4) (Price Level Protection) 

to clarify the operation of the Price 

Level Protection. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://ise.cchwallstreet.com/, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

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 


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2266 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices 

3Currently, this limit is set to five price levels. 

The Exchange will provide at least a two week 

notice to members via an Options Trader Alert prior 

to changing the price level limit to allow members 

the opportunity to perform any system changes. 

Any change to the price level limit would be subject 

to consultations with members. 

4See Securities Exchange Act Release No. 80432 

(April 11, 2017), 82 FR 18191 (April 17, 2017) (SR– 

ISE–2017–03) (Approval Order). 

5See Supplementary Material .03 to Rule 722. 

6See footnote 3 supra. 

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

8 15 U.S.C. 78f(b)(5). 

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 Rule 714(b)(4) (Price 

Level Protection) to specify that the 

Price Level Protection: (1) Only applies 

when there is no away market best bid 

or offer (‘‘ABBO’’), (2) does not apply to 

quotes on the complex order book, 

which are not eligible to trade with bids 

and offers for the component legs, and 

(3) determines the maximum number of 

price levels by reference to the 

component leg(s) where the protection 

has been triggered. The proposed 

changes will increase transparency 

around the operation of the Exchange 

with respect to the Price Level 

Protection, and no changes to the 

Exchange’s trading or other systems are 

being proposed. 

Currently, Rule 714(b)(4), which 

applies to complex orders executed on 

the Exchange, provides that ‘‘[t]here is 

a limit on the number of price levels at 

which an incoming order or quote to 

sell (buy) will be executed automatically 

with the bids or offers of each 

component leg.’’ Furthermore, as 

currently written, Rule 714(b)(4) also 

provides that ‘‘orders and quotes are 

executed at each successive price level 

until the maximum number of price 

levels is reached, and any balance is 

canceled.’’ The number of price levels 

for the component leg, which may be 

between one (1) and ten (10), is 

determined by the Exchange from timeto-time on a class-by-class basis.3

Previously, this rule, which applied to 

both simple and complex orders 

executed on the Exchange, provided 

additionally that the protection applied 

‘‘when there are no bids (offers) from 

other exchanges at any price for the 

options series.’’ This language was 

inadvertently removed in SR–ISE–2017– 

03, when the Exchange adopted its 

Acceptable Trade Range (‘‘ATR’’) 

protection for simple orders and 

retained the Price Level Protection for 

complex orders in connection with the 

migration of the Exchange’s trading 

system to Nasdaq INET.4 The Exchange 

proposes to re-introduce this language 

to clarify that the trading system 

continues to apply this protection only 

when there is no ABBO available. 

Furthermore, Rule 714(b)(4) also 

contains references to quotes that were 

not removed when the Exchange filed 

SR–ISE–2017–03 to apply the Price 

Level Protection solely to complex 

orders. Although the previous version of 

the Price Level Protection for simple 

orders applied to both orders and 

quotes, quotes have never been included 

in the Price Level Protection for 

complex orders. Specifically, quotes are 

excluded from the Price Level 

Protection for complex orders because 

quotes are not permitted to leg into the 

regular market to trade with bids and 

offers on the Exchange for the 

individual legs of the complex strategy.5

Because quotes on the complex order 

book do not leg into the regular market, 

they are excluded from the Price Level 

Protection, which applies when a 

complex order is executed with bids 

and offers for the component legs of the 

complex strategy. The Exchange 

therefore proposes to amend Rule 

714(b)(4) by removing outdated 

references to quotes. In addition, to 

further reinforce that the Price Level 

Protection applies to complex orders 

and not simple orders, the Exchange 

also proposes to add the word 

‘‘complex’’ before references to orders 

contained in Rule 714(b)(4). 

Finally, the Exchange proposes to add 

language to the rule that specifies that 

complex orders are executed at each 

successive price level until the 

maximum number of price levels is 

reached on a component leg where the 

protection has been triggered. For 

example, assume a member enters a 

complex order to buy 20 contracts of 

series A and 20 contracts of series B. If 

there is no ABBO at any price in series 

B and the complex order legs into the 

regular order book, the complex order 

would be able to trade up to five price 

levels in series B (e.g., $1.00, $1.05, 

$1.10, $1.15, and $1.20 but not $1.25 or 

greater).6

The complex order would also trade 

with the corresponding number of 

contracts of series A but there would be 

no restriction on the number of price 

levels that could be traded in series A 

if there is sufficient quantity available at 

the five price levels permitted to trade 

in series B and the executions in series 

A are at or inside the ABBO for the 

series (e.g., if the ABBO in series A is 

$1.30 and all 20 contracts can be traded 

at permitted prices in series B, the 

corresponding 20 contracts in series A 

could be executed at $0.95, $1.00, $1.05, 

$1.10, $1.15, $1.20, $1.25, and $1.30 

without triggering the protection). 

Although currently implied by the rule, 

the Exchange believes that it is 

appropriate to explicitly reference that 

the number of price levels is determined 

based on a component leg where the 

protection has been triggered to avoid 

any potential member confusion. 

Although a complex order that legs into 

the regular market must trade with all 

component legs to satisfy the complex 

order, the Price Level Protection is 

applied solely on component legs that 

trigger the protection—i.e., where there 

is no away market as discussed earlier 

in this proposed rule change. As such, 

the maximum number of price levels 

discussed in Rule 714(b)(4) is computed 

by reference to component legs where 

the protection has been triggered. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,7 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,8

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest. The 

Exchange believes that the proposed 

rule change is consistent with the 

protection of investors and the public 

interest as it will increase transparency 

around the operation of the Exchange 

and, in particular, the Price Level 

Protection for complex orders. 

The Price Level Protection is designed 

to ensure that complex orders that leg 

into the regular order book and trade 

against bids and offers for the 

component legs are protected from 

trading at unreasonable prices when 

there is no away market. Thus, this 

protection only applies when there are 

no bids (offers) from other exchanges at 

any price for the options series, as stated 

in the previous version of the rule. The 

Exchange believes that applying this 

protection when there is no away 

market promotes just and equitable 

principles of trade as executions are 

prevented only when there is no ABBO 

to establish reasonable execution 

bounds. When there is an away market, 

the Exchange believes that this 


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Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices 2267 

9See Supplementary Material .03 to Rule 722. 

10 15 U.S.C. 78s(b)(3)(A)(iii). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6)(iii). 

14For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

protection is not necessary, as 

executions on the regular order book, 

including the execution of complex 

orders that leg in to access liquidity on 

the bids and offers for the individual 

legs, must occur at or inside the ABBO. 

The Exchange believes that it is 

appropriate to re-introduce the 

proposed language described above so 

that members are properly apprised of 

when the Price Level Protection will 

prevent the execution of complex orders 

that leg into the regular order book. 

The proposed rule change also 

clarifies that the Price Level Protection 

applies only to complex orders and not 

to quotes entered on the complex order 

book. The Exchange believes that this 

change is consistent with the protection 

of investors and the public interest 

because quotes are not permitted to leg 

into the regular market 9 and therefore 

are not eligible to trigger the Price Level 

Protection, which only affects complex 

orders that trade with bids and offers for 

the component legs. The Exchange 

therefore believes that this change better 

reflects functionality offered on the 

Exchange and will increase 

transparency for members. 

Finally, the proposed rule change 

makes clear that the maximum number 

of price levels described in Rule 

714(b)(4) is determined by reference to 

component leg(s) where the protection 

is triggered. Although all legs of a 

complex order must be executed in 

order for the complex order to be traded, 

the Price Level Protection is designed to 

prevent executions at unreasonable 

prices when there is no away market in 

one or more component legs. As such, 

the maximum number of price levels is 

determined by reference to the 

component leg(s) that trigger the 

protection by virtue of there being no 

away market prices to constrain 

executions in that particular options 

series. Once this limit has been 

exceeded on a component leg where the 

protection has been triggered, no further 

executions can take place, and any 

remaining balance of the complex order 

is cancelled. The Exchange believes that 

adding the proposed language will 

increase transparency and avoid 

potential confusion about when a 

complex order that legs into the regular 

market will trigger the Price Level 

Protection. The Exchange therefore 

believes that this change is consistent 

with the protection of investors and the 

public interest. 

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. The 

proposed rule change would increase 

transparency around the operation of 

the Exchange and, in particular, the 

Price Level Protection by re-introducing 

inadvertently deleted language about 

when the protection is triggered, 

eliminating outdated references to 

quotes, and reinforcing that the 

maximum number of price levels is 

determined by reference to the 

component leg(s) that trigger the 

protection. The Exchange therefore 

believes that the proposed rule change 

will have no impact on competition. 

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 10 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.11

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 12 normally does not become 

operative prior to 30 days after the date 

of the filing. However, Rule 19b– 

4(f)(6)(iii) under the Act 13 permits the 

Commission to designate a shorter time 

if such action is consistent with the 

protection of investors and the public 

interest. ISE has asked the Commission 

to waive the 30-day operative delay so 

that it may implement the proposed rule 

change immediately. In support of its 

request, ISE notes that the proposed rule 

change would clarify the operation of 

the Exchange by re-introducing 

inadvertently deleted rule language 

indicating that the Price Level 

Protection only applies when there is no 

away market, eliminating outdated 

references to quotes, and reinforcing 

that the maximum number of price 

levels is determined by reference to the 

component leg(s) that trigger the 

protection. The Commission believes 

that waiving the 30-day operative delay 

is consistent with the protection of 

investors and the public interest. By reintroducing inadvertently deleted rule 

language indicating that the Price Level 

Protection applies only when there is no 

ABBO, eliminating references to quotes, 

which do not execute against the 

individual legs of a complex strategy, 

and indicating that the maximum 

number of price levels is determined by 

reference to the component leg(s) that 

trigger the protection, the proposal will 

correct errors and provide additional 

clarity to the rule, thereby helping to 

assure that ISE’s rule clearly and 

accurately describes the operation of the 

Price Level Protection. Accordingly, the 

Commission waives the 30-day 

operative delay and designates the 

proposed rule change operative upon 

filing.14

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–2018–03 on the subject line. 


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15 17 CFR 200.30–3(a)(12) and (59). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5See the Exchange’s fee schedule available at 

http://markets.cboe.com/us/equities/membership/ 

fee_schedule/edgx/. 

6See Exchange Rule 13.8(a). 7A Trading Platform is defined as ‘‘any execution 

platform operated as or by a registered National 

Securities Exchange (as defined in Section 3(a)(1) 

of the Exchange Act), an Alternative Trading 

System (as defined in Rule 300(a) of Regulation 

ATS), or an Electronic Communications Network 

(as defined in Rule 600(b)(23) of Regulation NMS).’’ 

See the Exchange’s fee schedule available at http:// 

markets.cboe.com/us/equities/membership/fee_

schedule/edgx/. 

8See the Exchange’s fee schedule available at 

http://markets.cboe.com/us/equities/membership/ 

fee_schedule/edgx/. 

9See e.g., Nasdaq Rule IM–7023–1(c), U.S. NonDisplay Information. 

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–2018–03. 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–2018–03, and should 

be submitted on or before February 6, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00529 Filed 1–12–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82469; File No. SR– 

CboeEDGX–2017–006] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to Fees 

for the EDGX Depth Market Data 

Product 

January 9, 2018. 

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 December 

27, 2017, Cboe EDGX Exchange, Inc. 

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

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Exchange has designated the 

proposed rule change as one 

establishing or changing a member due, 

fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the 

proposed rule change effective upon 

filing with the Commission. 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 filed a proposal to 

amend the Market Data section of its fee 

schedule to introduce new fees for NonDisplay Usage of EDGX Depth. 

The text of the proposed rule change 

is available at the Exchange’s website at 

www.markets.cboe.com, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

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 parts 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 of its fee schedule 

to introduce new fees for Non-Display 

Usage 5 of EDGX Depth. EDGX Depth is 

an uncompressed market data feed that 

provides depth-of-book quotations and 

execution information based on equity 

orders entered into the System.6 The 

Exchange currently charges subscribers 

to EDGX Depth a fee of $5,000 per 

month for Non-Display Usage of EDGX 

Depth by its Trading Platforms.7 NonDisplay Usage is defined as ‘‘any 

method of accessing a Market Data 

product that involves access or use by 

a machine or automated device without 

access or use of a display by a natural 

person or persons.’’ 8 Trading Platforms 

include registered National Securities 

Exchanges, Alternative Trading Systems 

(‘‘ATSs’’), and Electronic 

Communications Networks (‘‘ECNs’’) as 

those terms are defined in the Exchange 

Act and regulations and rules 

thereunder. Previously, subscribers of 

EDGX Depth that used the feed for NonDisplay purposes but did not utilize the 

feed within a Trading Platform were 

charged the existing Distributors fees. 

Forms of Non-Display Use include, 

but are not limited to, algorithmic or 

automated trading, order routing, 

surveillance, order management, risk 

management, clearance and settlement 

activities, and account maintenance.9

Non-Display Usage does not include any 

use of EDGX Depth that relates solely to 

transportation, dissemination, and 

redistribution of EDGX Depth, or that 

results in the output of EDGX Depth 

solely for display. Non-display uses of 

data for non-trading purposes benefits 

data recipients by allowing users to 

automate functions, to achieve greater 


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