Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Notices 99925 

12 17 CFR 200.30–3(a)(12), (59). 

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

2 17 CFR 240.19b–4. 

3See Options 3, Section 23(a)(1) (‘‘Top of PHLX 

Options (‘TOPO’) is a direct data feed product that 

includes the Exchange’s best bid and offer price, 

with aggregate size, based on displayable order and 

quoting interest on Phlx and last sale information 

for trades executed on Phlx. The data contained in 

the TOPO data feed is identical to the data 

simultaneously sent to the processor for the OPRA 

and subscribers of the data feed. The data provided 

for each options series includes the symbols (series 

and underlying security), put or call indicator, 

expiration date, the strike price of the series, and 

whether the option series is available for trading on 

Phlx and identifies if the series is available for 

closing transactions only.’’). 

4See Options 3, Section 23(a)(1) (‘‘PHLX Orders 

is a real-time full Limit Order book data feed that 

provides pricing information for orders on the 

PHLX Order book for displayed order types as well 

as market participant capacity. PHLX Orders is 

currently provided as part of the TOPO Plus Orders 

data product. PHLX Orders provides real-time 

information to enable users to keep track of the 

single and complex order book(s). The data 

provided for each options series includes the 

symbols (series and underlying security), put or call 

indicator, expiration date, the strike price of the 

series, leg information on complex strategies and 

whether the option series is available for trading on 

Phlx and identifies if the series is available for 

closing transactions only. The feed also provides 

auction and exposure notifications and order 

imbalances on opening/reopening (size of matched 

contracts and size of the imbalance)’’). 

5The proposed changes were initially filed on 

November 16, 2023, as SR–Phlx–2023–51. On 

December 5, 2023, SR–Phlx–2023–51 was 

withdrawn and replaced with SR–Phlx–2023–57. 

On January 29, 2024, SR–Phlx–2023–57 was 

withdrawn and replaced with SR–Phlx 2024–03. On 

March 20, 2024, SR–Phlx–2024–03 was withdrawn 

and replaced with SR–Phlx–2024–15. On May 16, 

2024, the Commission instituted proceedings to 

determine whether to approve or disapprove the 

proposed rule change. See Securities Exchange Act 

Release No. 100160 (May 16, 2024), 89 FR 45036 

(May 22, 2024). On November 19, 2024, SR–Phlx– 

2024–15 was withdrawn and replaced with SR– 

Phlx–2024–60. On November 27, 2024, SR–Phlx– 

2024–60 was withdrawn and replaced with the 

instant filing. 

6The Best Bid and Offer includes aggregate size 

information based on displayable order and quoting 

interest on the Exchange. 

7See PHLX, ‘‘Top of Phlx Options,’’ available at 

https://www.nasdaqtrader.com/Micro.aspx?id=

TOPO#:∼:text=Top%20of%20PHLX%20Options

%20(TOPO,in%20the%20consolidated%20market

%20feed. 

8See Options 3 (Options Trading Rules), Section 

23(a)(1) (Data Feeds and Trade Information) (‘‘The 

data contained in the TOPO data feed is identical 

to the data simultaneously sent to the processor for 

the OPRA and subscribers of the data feed.’’). 

9See, e.g., Nasdaq, ‘‘Top of Phlx Options Interface 

Specifications, Version 3.4’’ Section 4.3 available at 

https://www.nasdaqtrader.com/content/ 

technicalsupport/specifications/dataproducts/ 

topofphlx.pdf (describing the start of day options 

directory message, which lists all symbols eligible 

for the auction process). 

All submissions should refer to file 

number SR–Phlx–2024–65. 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. Do not include 

personal identifiable information in 

submissions; you should submit only 

information that you wish to make 

available publicly. We may redact in 

part or withhold entirely from 

publication submitted material that is 

obscene or subject to copyright 

protection. All submissions should refer 

to file number SR–Phlx–2024–65, and 

should be submitted on or before 

December 31, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–29035 Filed 12–10–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101822; File No. SR–Phlx– 

2024–67] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing of 

Proposed Rule Change To Amend the 

Exchange’s Fees for Top of PHLX 

Options (TOPO), PHLX Orders, and 

TOPO Plus Orders 

December 5, 2024. 

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 November 

27, 2024, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) 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 

The Exchange proposes to amend the 

Exchange’s proprietary data fees for Top 

of PHLX Options (‘‘TOPO’’), PHLX 

Orders, and TOPO Plus Orders at 

Options 7, Section 10, as described 

further below. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/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 

proprietary data fees for Top of PHLX 

Options (‘‘TOPO’’),3 PHLX Orders,4 and 

TOPO Plus Orders at Options 7, Section 

10.5

Top of PHLX Options (‘‘TOPO’’) 

TOPO is a direct data feed that 

provides subscribers with PHLX Best 

Bid and Offer (‘‘BBO’’) 6 and last sale 

information.7 The data distributed on 

TOPO is identical to the data 

simultaneously sent to the Options Price 

Reporting Authority (‘‘OPRA’’).8 The 

TOPO feed also provides administrative 

information to facilitate trading on the 

Exchange such as, for example, the list 

of symbols trading on a particular day.9

TOPO reduces the transmission and 

processing latencies for top of book 

information relative to the OPRA feed 

by avoiding the latencies generated by 

the latter in consolidating data. 


lotter on DSK11XQN23PROD with NOTICES1
99926 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Notices 

10See Options 7, Section 10 (Proprietary Data 

Feed Fees) (Top of PHLX Options) (‘‘A ‘distributor’ 

of Nasdaq PHLX data is any entity that receives a 

feed or data file . . . directly from Nasdaq PHLX 

or indirectly through another entity and then 

distributes it either internally (within that entity) or 

externally (outside that entity). All distributors 

execute a Nasdaq PHLX distributor agreement.’’). 

11See id. 

12See id. (‘‘A Non-Professional Subscriber is a 

natural person who is neither: (i) registered or 

qualified in any capacity with the Commission, the 

Commodities Futures Trading Commission, any 

state securities agency, any securities exchange or 

association, or any commodities or futures contract 

market or association; (ii) engaged as an ‘investment 

adviser’ as that term is defined in Section 201(11) 

of the Investment Advisors Act of 1940 (whether or 

not registered or qualified under that Act); nor (iii) 

employed by a bank or other organization exempt 

from registration under federal or state securities 

laws to perform functions that would require 

registration or qualification if such functions were 

performed for an organization not so exempt. A 

Non-Professional Subscriber may only use the data 

provided for personal purposes and not for any 

commercial purpose.’’). 

13See id. (‘‘A Professional Subscriber is any 

Subscriber that is not a Non-Professional 

Subscriber. If the Nasdaq Subscriber agreement is 

signed in the name of a business or commercial 

entity, such entity would be considered a 

Professional Subscriber.’’). 

14See Securities Exchange Act Release No. 68576 

(January 3, 2013), 78 FR 1886 (January 9, 2013) (SR– 

Phlx–2012–145). 

15See Options 3 (Options Trading Rules), Section 

23(a)(2) (Data Feeds and Trade Information). 

16See Options 3 (Options Trading Rules), Section 

23(a)(2) (Data Feeds and Trade Information); 

Section 14(a)(i) (‘‘Complex Order. For purposes of 

the electronic trading of Complex Orders, a 

Complex Order is an order involving the 

simultaneous purchase and/or sale of two or more 

different options series in the same underlying 

security, priced as a net debit or credit based on the 

relative prices of the individual components, for the 

same account, for the purpose of executing a 

particular investment strategy.’’). 

17See Nasdaq, ‘‘PHLX Orders,’’ available at 

https://www.nasdaqtrader.com/

Micro.aspx?id=PHLXOrders. 

18See Options 3 (Options Trading Rules), Section 

23(a)(2); Section 13 (Price Improvement XL) (‘‘A 

member may electronically submit for execution an 

order it represents as agent on behalf of a Public 

Customer, broker-dealer, or any other entity (‘PIXL 

Order’) against principal interest or against any 

other order (except as provided in sub-paragraph 

(a)(6) below) it represents as agent (an ‘Initiating 

Order’) provided it submits the PIXL Order for 

electronic execution into the PIXL Auction 

(‘Auction’) pursuant to this Rule.’’). 

19See Options 3, Section 14(e) (describing the 

process for the Complex Order Live Auction 

(‘‘COLA’’)). 

20Nasdaq, ‘‘PHLX Orders Interface 

Specification,’’ (Version 1.92) available at https://

www.nasdaqtrader.com/content/technicalsupport/ 

specifications/dataproducts/topoplusorders.pdf 

(describing auction notification message). 

21See Limited Liability Company Agreement of 

Options Price Reporting Authority, LLC Article V, 

Section 5.2(c)(i) (January 1, 2010), available at 

https://assets.website-files.com/

5ba40927ac854d8c97bc92d7/5d0bd57d87

d3ccca102102d7_OPRA%20Plan%20with%20

Updated%20Exhibit%20A%20-%2006-19-2019.pdf 

(describing last sale and best bid and offer 

information disseminated by OPRA). 

22See Options 3 (Options Trading Rules), Section 

23(a)(3) (Data Feeds and Trade Information) (‘‘PHLX 

Depth of Market is a data product that provides: (i) 

order and quotation information for individual 

quotes and orders on the order book . . .’’) 

(emphasis added); Section 4(b) (Entry and display 

of Quotes) (identifying the market participants 

authorized to submit quotes to the Exchange). 

23See Nasdaq, ‘‘December 2023 Bandwidth 

Report,’’ available at https://view.officeapps.live.

com/op/view.aspx?src=https%3A%2F%2

Fwww.nasdaqtrader.com%2Fcontent%2

Ftechnicalsupport%2Fspecifications%2

Fdataproducts%2Fbandwidthreport.xls&wdOrigin

=BROWSELINK. 

Monthly fees for TOPO are currently 

$2,000 for Internal Distributors,10

$2,500 for External Distributors,11 $1 for 

a Non-Professional Subscriber,12 and 

$40 for a Professional Subscriber.13

None of these fees have changed for 

over a decade, since January 2013.14

PHLX Orders 

PHLX Orders is a real-time order book 

feed with pricing information for 

displayed orders on the PHLX order 

book.15 The data provided for each 

options series includes the symbols 

(series and underlying security), a put or 

call indicator, expiration date, and the 

strike price of the series. It also provides 

the real-time status of simple and 

complex orders 16 on the order book, 

including new orders and changes to 

orders resting on the PHLX book for all 

PHLX-listed options.17 The PHLX 

Orders feed includes data on the 

opening imbalance, Price Improvement 

XL (PIXL),18 and Complex Order Live 

Auction (COLA).19 A notification 

message is sent for symbols entering an 

auction.20 PHLX Orders also furnishes 

an historical record of all simple and 

complex order message data from the 

PHLX Orders data feed. PHLX Orders 

information is not sent to OPRA.21

PHLX Orders is an alternative to 

PHLX Depth of Market. It is an 

optimized technical channel designed to 

lower technology costs, reduce 

processing time, and facilitate the 

ingestion of data while still providing 

customers insight beyond the top of 

book by viewing active buy and sell 

orders. PHLX Orders excludes 

quotations by market makers and other 

authorized entities that is included in 

PHLX Depth of Market.22

What is the utility of an orders-only 

data feed? It provides customers with 

the opportunity to reduce bandwidth 

(and therefore data processing costs) by 

several orders of magnitude relative to 

the full depth of book feed, while 

retaining a view of market participant 

orders (setting aside symbols where 

participants have not placed orders). 

The December 2023 bandwidth report 

shows that the PHLX Depth of Market 

feed transmitted a maximum of 14.3 

billion messages per day during the 

month of December,23 while the PHLX 

Orders feed transmitted a maximum of 

53.6 million messages over the same 

period (41.5 million messages for simple 

orders, and 12.1 million messages for 

complex orders). The Exchange’s full 

depth of book feed requires the 

customer to process over 200 times 

more messages than the orders feed over 

the course of a day; replacing a depth 

of book feed with an orders feed allows 

a customer to reduce the maximum 

number of daily messages it receives by 

99.6%. 

To cite another example, the 

1millisecond bandwidth peak for PHLX 

Depth of Market was 13.96 million 

messages; the comparable number of 

messages for orders was 1.45 million 

(891 thousand for simple and 561 

thousand for complex orders). Replacing 

depth of book with orders can therefore 

reduce the number of messages 

processed at peak at the 1 millisecond 

bandwidth by nearly 90%. 

Approximately 56% of customers 

who take any data feed at all from the 

PHLX exchange take an orders feed 

(either Orders only or TOPO Plus 

Orders) without depth of book. Another 

38% of customers take both orders and 

depth feeds. The remaining 6% take 

either top of book or depth of book 

alone. 

What type of customer takes an orders 

feed in lieu of depth? In general, firms 

that only need information on actively 

trading options do so. There are a great 

number of use cases that fit this broad 

description, but, for purposes of 

illustration, the Exchange is aware of at 

least two such types of customers. 

The first is the market participant that 

does not engage in order routing. These 

are broker dealers that use third parties 

to route orders, either because the 

originating broker-dealer is not a 

member of the exchange or to save costs. 

Without the need for additional 

information to inform routing decisions, 

such customers often focus on active 

trading alone, and therefore purchase 

the orders feed. 

A second category of customers are 

those that use options data to analyze 

trends in other markets. One example of 

this type of customer is the equity trader 

that analyzes equity-based options 

orders to gauge market sentiment in the 

underlying equity. For such customers, 

there is relatively little utility in the full 

depth feed. 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Notices 99927 

24See Securities Exchange Act Release No. 68576 

(January 3, 2013), 78 FR 1886 (January 9, 2013) (SR– 

Phlx–2012–145). 

25See PHLX, TOPO Plus PHLX Orders, available 

at https://www.nasdaqtrader.com/ 

Micro.aspx?id=TOPOPlusOrders. 

26See Securities Exchange Act Release No. 82495 

(January 12, 2018), 83 FR 2839 (January 19, 2018) 

(SR–Phlx–2018–08). 

27See Securities Exchange Act Release No. 68576 

(January 3, 2013), 78 FR 1886 (January 9, 2013) (SR– 

Phlx–2012–145). 

28We do not include ‘‘High Frequency Trading 

Firm’’ as a distinct category because many market 

participants may engage in low latency trading 

strategies to some degree, but the Exchange does not 

have sufficient information to be able to 

characterize any particular firm as a high frequency 

trader. 

29 15 U.S.C. 78f(b). 

30 15 U.S.C. 78f(b)(4) and (5). 

As noted above, there are some 

customers that purchase both orders and 

depth. Vendors are one example of this 

type of customer. They purchase market 

data solely for resale, not for trading on 

behalf of themselves or others. Another 

example is the firm that uses orders for 

analysis and depth for order routing. As 

noted above, the orders feed can be 

useful for assessing sentiment in equity 

markets, while depth is often used in 

order routing decisions. Firms that 

engage in both functions can lower 

overall processing requirements by 

using orders for analytics and depth for 

routing. 

Customers can obtain all of the data 

contained in PHLX Orders from PHLX 

Depth of Market feed and may purchase 

the latter if they do not realize the cost 

savings offered by PHLX Orders. 

PHLX Orders is a derivative product 

designed as a lower-cost alternative to a 

depth of book feed. It is not a 

complement to any other product 

offered by the Exchange or any of its 

competitors. Customers are free to 

purchase PHLX Orders or not, and can 

reject the feed for any reason, including 

the fee charged. 

Current monthly fees for PHLX Orders 

are $3,000 for Internal Distributors, 

$3,500 for External Distributors, $1 for 

a Non-Professional Subscriber, and $40 

for a Professional Subscriber. None of 

these fees have changes for over a 

decade, since January 2013.24

TOPO Plus Orders 

TOPO Plus is a direct market data 

product that offers subscribers both 

TOPO and PHLX Orders for a 

consolidated fee that is less than the 

combined fee of the two products.25

Monthly fees for TOPO Plus Orders 

are currently $4,500 for Internal 

Distributors, $5,000 for External 

Distributors, $1 for a Non-Professional 

Subscriber, and $40 for a Professional 

Subscriber. 

Internal Distributor fees for TOPO 

Plus Orders were modified in January 

2018, over five years ago,26 but the other 

TOPO Plus Orders fees have not 

changed since January 2013.27

Usage of TOPO, PHLX Orders, and 

TOPO Plus Orders 

Different types of market participants 

purchase TOPO, PHLX Orders and 

TOPO Plus Orders, including market 

makers, vendors, banks, proprietary 

traders, agency brokers (brokers that 

route trades on behalf of other market 

participants), hedge funds, index 

providers and other firms. 

In characterizing market participants, 

we must be clear that firms use data 

feeds for multiple tasks. A market 

maker, for example, may use market 

data for order routing, or for risk 

analysis used in quoting in their 

assigned option series. Banks may use 

market data for prime brokerage 

services, proprietary trading, or risk 

management. Market data vendors do 

not directly use the data at all, but 

rather disseminate data to market 

participants that use the data for a 

multiplicity of purposes. Other firms 

purchase options data to assess the 

value of equity securities.28

Characterizing firms based on what 

we understand to be their primary 

market activity, and understanding that 

firms play multiple roles, we estimate 

that approximately half of the customers 

that take top of book data in any form, 

in combination with other products or 

alone, are market makers, and the 

remaining half are market data vendors, 

banks, proprietary traders, agency 

brokers, hedge funds, index providers, 

and others. Roughly the same 

distribution applies to customers that 

purchase PHLX Orders, whether alone 

or in combination with other products. 

Although the distributions are roughly 

similar, different customers are 

purchasing different products in 

different combinations. 

As explained above, firms generally 

purchase PHLX Orders rather than 

depth of book data to lower technology 

costs and reduce processing time, while 

still providing customers insight into 

open executable orders that could 

impact the BBO. 

A more specific explanation of how 

TOPO, PHLX Orders and TOPO Plus 

Orders is used will vary based on use 

case, with many firms employing 

multiple use cases. Market makers, 

banks, hedge funds, and proprietary 

traders often use top of book and orders 

feeds for trading, order routing and 

analysis. Banks may use market data for 

prime brokerage services, proprietary 

trading, or risk management. The clients 

of market data vendors will utilize the 

data for many different purposes. We do 

not have sufficient visibility into our 

customers’ businesses and proprietary 

processes to be able to determine 

precise data usage by customer category. 

Proposed Changes 

For TOPO, the Exchange proposes to 

increase the monthly charge for Internal 

Distributors from $2,000 to $2,500, and 

the monthly charge for External 

Distributors from $2,500 to $3,000. No 

changes are proposed for NonProfessional and Professional Subscriber 

fees. 

For PHLX Orders, the Exchange 

proposes to increase the monthly charge 

for Internal Distributors from $3,000 to 

$3,500, and the monthly charge for 

External Distributors from $3,500 to 

$4,000. No changes are proposed for 

Non-Professional and Professional 

Subscriber fees. 

For TOPO Plus Orders, the Exchange 

proposes to increase the monthly charge 

for Internal Distributors from $4,500 to 

$5,500, and the monthly charge for 

External Distributors from $5,000 to 

$6,000. No changes are proposed for 

Non-Professional and Professional 

Subscriber fees. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,29 in general, and furthers the 

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

of the Act,30 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 proposal provides for the 

equitable allocation of reasonable dues, 

fees and other charges because the 

proposed fees are comparable to, and in 

some cases less than, those of similarly 

situated exchanges. 

The proposal is not designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers 

because: (i) it is not unfair 

discrimination to charge external 

distributors more for the product 

because external distributors receive 

additional value not available to 

internal distributors by disseminating 

information externally and typically 

charging for the service; and (ii) the 

market data feeds subject to the 

proposed fee will be available to 


lotter on DSK11XQN23PROD with NOTICES1
31Market share is the percentage of volume on a 

market share enhance the value of trading and 

order flow directed to that exchange. High levels of 

across all exchanges, and indicates the amount of 

particular exchange relative to the total volume 

BX does not list proprietary products. 

intellectual property rights that are not multi-listed. 

Proprietary options products are products with 

options and proprietary options products. 

ports. Total contracts include both multi-list 32See MIAX Options Exchange Fee Schedule 

(October 1, 2024), available at https:// 

www.miaxglobal.com/sites/default/files/fee_

schedule-files/MIAX_Options_Fee_Schedule_

10012024.pdf. 

The proposed fees for Top of PHLX 

charged by Miami International 

Options are comparable to those 

external distribution) and Cboe 

MIAX Emerald (for both internal and 

Securities Exchange, LLC (‘‘MIAX’’), 

distribution), as summarized in Table 1: 

Exchange, Inc. (‘‘Cboe’’) (for external 

TABLE 1 

Exchange 

Market 

share 

% 

Monthly fees (top of book) 

Internal distribution External distribution 

PHLX ...................................................................... 9.1 $2,500 ................................................................... $3,000. 

MIAX ...................................................................... 5.7 $4,000 ...................................................................

($2,000 for simple orders; $2,000 for complex orders).($3,000 for simple orders; $3,000 for complex or-

$6,000 

ders). 

MIAX Emerald ........................................................ 3.6 $2,500 ...................................................................

($1,250 for simple orders; $1,250 for complex orders).($1,750 for simple orders; $1,750 for complex or-

$3,500. 

ders). 

Cboe ...................................................................... 17.9 N/A ........................................................................

(fee is part of a package of multiple products) ..... ($5,000 for simple orders; $3,000 for complex or-

$8,000. 

ders). 

A more detailed discussion of the 

MIAX 

comparison follows. 

MIAX, with a market share of 

than the PHLX proposal. 

PHLX, yet charges more for those feeds 

information in its top of book feeds than 

approximately 5.7%, provides less 

MIAX charges different fees for 

a total of $4,000.

for its complex Top of Market feed, for 

Top of Market feed, and another $2,000 

complex top of book feeds: $2,000 for its 

internal distribution of its simple and 

32 PHLX TOPO 

orders in a single feed, and therefore the 

includes both simple and complex 

information. 

$4,000 charged by MIAX for less 

distribution is much less than the 

proposed fee of $2,500 for internal 

For external distribution, MIAX 

and another $3,000 for its complex top 

charges $3,000 for Top of Market feed, 


EN11DE24.030</GPH>lotter on DSK11XQN23PROD with NOTICES1

2024 Market Share 

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Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Notices 99929 

33See id. 34See MIAX Emerald Options Schedule 

(December 8, 2022), available at https://

www.miaxglobal.com/sites/default/files/fee_

schedule-files/MIAX_Emerald_Fee_Schedule_

12082022c.pdf. 

35See id. 

36See Nasdaq, Options Market Statistics (Last 

updated November 3, 2023), available at https://

www.nasdaqtrader.com/ 

Trader.aspx?id=OptionsVolumeSummary. 

37See id. 

38As explained in note 32, Cboe waives its 

Complex Order Book feed for internal distribution 

of top of book and depth, but not for external 

distribution of top of book. 

39See MIAX Options Exchange Fee Schedule 

(October 1, 2024), available at https://

www.miaxglobal.com/sites/default/files/fee_

schedule-files/MIAX_Options_Fee_Schedule_

10012024.pdf. 

40See id. 

41See MIAX Emerald Options Schedule 

(December 8, 2022), available at https://

www.miaxglobal.com/sites/default/files/fee_

schedule-files/MIAX_Emerald_Fee_Schedule_

12082022c.pdf. 

42See id. 

43See Nasdaq ISE, LLC Rules, Options 7, Section 

10(G) (Nasdaq ISE Order Feed). The ISE Order feed 

differs from the PHLX Orders feed in that it 

provides information only on simple orders, 

whereas the PHLX Orders feed provides 

information on both simple and complex orders. 

44See id. 

of market feed,33 for a total of $6,000. 

The proposed fees of $3,000 for the 

PHLX TOPO feed, which includes both 

simple and complex orders, is far less 

than the fees charged by MIAX for less 

information. 

MIAX Emerald 

The same analysis applies to MIAX 

Emerald, with a market share of 3.6%. 

Similar to MIAX, MIAX Emerald 

charges different fees for simple and 

complex top of book feeds: $1,250 for 

internal distribution of its Top of Market 

feed, and another $1,250 for internal 

distribution of its Complex Top of 

Market feed, for a total of $2,500.34 This 

is the same amount proposed for TOPO 

internal distribution, for less 

information. 

MIAX Emerald charges $1,750 for 

external distribution of its Top of 

Market feed, and another $1,750 for 

external distribution of its complex Top 

of Market feed, for a total of $3,500.35

MIAX Emerald therefore charges more 

than PHLX’s proposed monthly charges 

of $3,000 for external distribution of 

TOPO, notwithstanding the fact that 

MIAX Emerald provides less market 

information. 

This supports the proposition that the 

proposed PHLX fees are comparable to 

those of other exchanges and therefore 

reasonable. 

Cboe 

Cboe has an approximately 17.9% 

market share, nearly twice the PHLX 

market share of 9.1%.36

The Cboe fee for external distribution 

of the top of book feed is $5,000 per 

month.37 If a customer also wants 

Cboe’s Complex Order Book (‘‘COB’’), 

the customer would pay an additional 

$3,000.38 These fees are comparable to 

the proposed PHLX fee of $3,000 per 

month for external distribution of a 

combined simple and complex orders 

feed because the higher fee for Cboe 

reflects the higher market share of the 

Cboe exchange. 

PHLX Orders 

The proposed fees for PHLX Orders 

are comparable to the fees charged by 

MIAX, MIAX Emerald, and Nasdaq ISE, 

LLC (‘‘ISE’’), an affiliate of PHLX, as set 

forth in Table 2 below. 

TABLE 2 

Exchange 

Market 

share 

% 

Monthly fees (orders) 

Internal distribution External distribution 

PHLX .......................................................... 9.1 $3,500 ........................................................ $4,000. 

MIAX ........................................................... 5.7 3,000 .......................................................... $3,500. 

MIAX Emerald ............................................ 3.6 3,000 .......................................................... $3,500. 

ISE .............................................................. 6.2 3,000 .......................................................... $3,000 per month plus $20 per month per 

controlled device. 

MIAX 

MIAX has a market share of 

approximately 5.7%, somewhat more 

than half of PHLX’s market share of 

9.1%. 

MIAX charges $3,000 for internal 

distribution of its orders feed.39 PHLX, 

with a market share over 50 percent 

more than MIAX, proposes to charge 

$3,500 for the same service. The PHLX 

fee is only about 17% more than the 

MIAX fee. 

MIAX charges $3,500 for external 

distribution of its orders feed.40 PHLX, 

with a market share over 50 percent 

more than MIAX, proposes to charge 

$4,000 for the same service. The PHLX 

fee is only about 14% more than the 

MIAX fee. 

MIAX Emerald 

MIAX Emerald also has a market 

share of 3.6%, less than half of PHLX’s 

market share of 9.1%. 

Like MIAX, MIAX Emerald charges 

$3,000 for internal distribution of its 

orders feed.41 PHLX, with a market 

share over twice that of MIAX Emerald, 

proposes to charge $3,500 for the same 

service. The PHLX fee is only about 

17% more than the MIAX fee. 

MIAX Emerald also charges $3,500 for 

external distribution of its orders feed.42

PHLX, with a market share over twice 

that of MIAX Emerald, proposes to 

charge $4,000 for the same service. The 

PHLX fee is only about 14% more than 

the MIAX Emerald fee. 

ISE 

ISE has a market share of 

approximately 6.2%, below PHLX’s 

market share of 9.1%. 

ISE charges $3,000 for internal 

distribution of its Order Feed.43 This is 

comparable to the proposed PHLX 

Orders feed for internal distribution of 

$3,500 because PHLX has a larger share 

and the ISE feed does not include 

information on complex orders. 

For external distribution, ISE charges 

$3000 per month, plus an additional 

$20 per month for each controlled 

device, up to a maximum fee of $5,000 

per month.44 This is comparable to the 

proposed PHLX fee of $4,000 (the ISE 

fee may be above or below the PHLX 

fee, depending on the number of 

controlled devices) and the proposed fee 

is reasonable given PHLX’s larger 

market share. 

TOPO Plus Orders 

The separate fees for TOPO and PHLX 

Orders are each reasonable because, as 

shown above, they are comparable to 

other SRO fees. The TOPO Plus Orders 

product offers a discount for the 

purchase of these two separate feeds 

together. A discount from fees that have 

already been shown to be reasonable is 


lotter on DSK11XQN23PROD with NOTICES1
99930 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Notices 

45 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

reasonable and consistent with the 

Exchange Act. 

In summary, (i) the proposed fees for 

Top of PHLX Options are comparable to 

those of MIAX, MIAX Emerald and 

Cboe; (ii) the proposed fees for PHLX 

Orders are comparable to those of 

MIAX, MIAX Emerald, and ISE; and (iii) 

the proposed PHLX TOPO Plus Orders 

fees offer a discount from the amount 

the customer would pay for TOPO and 

Orders separately, and, because these 

separate fees are comparable to those 

charged by other exchanges, the 

proposed discount for TOPO Plus 

Orders is reasonable. 

No Unfair Discrimination Between 

Customers, Issuers, Brokers, or Dealers 

The proposal is not designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers 

because: (i) external distributors receive 

additional value not available to 

internal distributors; and (ii) these 

market data feeds will be available on a 

non-discriminatory basis. 

External Distributors receive 

additional value not available to 

Internal Distributors by disseminating 

information externally and typically 

charging for the service. This additional 

value supports higher fees for external 

distribution for TOPO, PHLX Orders, 

and TOPO Plus Orders. Higher fees for 

external distribution of data are 

common throughout the industry, and 

nearly universal among exchanges. The 

difference in value between internal and 

external distribution is also reflected in 

the current fee schedule, which has 

previously been shown to be consistent 

with the Exchange Act. 

The three market data feeds at issue 

here—TOPO, PHLX Orders, and TOPO 

Plus Orders—are used by a variety of 

market participants for a variety of 

purposes. Users include regulators, 

market makers, competing exchanges, 

media, retail, academics, portfolio 

managers. Market data feeds will be 

available to members of all of these 

groups on a non-discriminatory basis. 

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. 

Nothing in the Proposal burdens 

inter-market competition (the 

competition among self-regulatory 

organizations) because approval of the 

Proposal does not impose any burden 

on the ability of other options exchanges 

to compete. PHLX fees are comparable 

to, and in some cases less than, those of 

other exchanges, as discussed above. 

Nothing in the Proposal burdens 

intra-market competition (the 

competition among consumers of 

exchange data) because PHLX market 

data is available to any customer under 

the same fee schedule as any other 

customer, and any market participant 

that wishes to purchase PHLX market 

data can do so on a non-discriminatory 

basis. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission shall: (a) by order 

approve or disapprove such proposed 

rule change, or (b) institute proceedings 

to determine whether the proposed rule 

change should be disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

Phlx–2024–67 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–Phlx–2024–67. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–Phlx–2024–67 and should be 

submitted on or before December 31, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.45

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–29040 Filed 12–10–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101825; File No. SR– 

CboeBZX–2024–122] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule Regarding Dedicated 

Cores 

December 5, 2024 

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 November 

26, 2024, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) 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 


lotter on DSK11XQN23PROD with NOTICES1