106692 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange initially adopted this fee waiver 

on December 2, 2024 (SR–CboeEDGA–2024–049). 

On December 16, 2024, the Exchange withdrew that 

filing and submitted this filing. 

4For clarity, the Exchange also proposes to 

modify the applicable sections of its Fee Schedule 

for these data feeds to use numbered footnotes in 

lieu of asterisks. 

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– 

NASDAQ–2024–083 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–2024–083. 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–NASDAQ–2024–083 and should be 

submitted on or before January 21, 2025. 

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.18

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–31340 Filed 12–27–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101980; File No. SR– 

CboeEDGA–2024–050] 

Self-Regulatory Organizations; Cboe 

EDGA Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Update Its 

Fee Schedule Regarding Uncontrolled 

External Distributors 

December 19, 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 December 

16, 2024, Cboe EDGA Exchange, Inc. 

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

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGA’’) proposes to 

update its Fee Schedule. The text of the 

proposed rule change is provided in 

Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

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

equities/regulation/rule_filings/edga/), 

at the Exchange’s Office of the 

Secretary, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Market Data section of its Fee Schedule 

to adopt a new fee waiver for 

Uncontrolled External Distributors.3

Particularly, the Exchange proposes to: 

(i) adopt a waiver of External 

Distribution fees for Uncontrolled 

External Distributors of the Summary 

Depth Feed and (ii) adopt fee waiver of 

External Distribution fees and Data 

Consolidation fees for Uncontrolled 

External Distributors of the Cboe One 

Summary Feed and Cboe One Premium 

Feed.4

EDGA Top and Summary Depth Data 

By way of background, the Exchange 

offers the EDGA Top Data Feed, which 

is a data feed that offers top-of-book 

quotations and last sale information 

based on orders entered into the 

Exchange’s System. The EDGA Top Data 

Feed benefits investors by facilitating 

their prompt access to real-time top-ofbook information contained in EDGA 

Top Data. The Exchange’s affiliated 

equities exchanges (i.e., Cboe BYX, Inc. 

(‘‘BYX’’), Cboe BZX Exchange, Inc. 

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

(‘‘EDGX’’) (collectively, ‘‘Affiliates’’ and 

together with the Exchange, ‘‘Cboe 

Equities Exchanges’’) also offer similar 

top-of-book data feeds. Particularly, 

each of the Exchange’s Affiliates offer 

top-of-book quotation and last sale 

information based on their own 

quotation and trading activity that is 

substantially similar to the information 

provided by the Exchange through the 

EDGA Top Data Feed. 

In addition to EDGA Top Data Feed, 

the Exchange offers EDGA Summary 

Depth Data Feed, which is a data feed 

that offers aggregated two-sided 

quotations for all displayed orders 


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5See Exchange Rule 13.8(f). 

6See EDGA Fees Schedule noting a cost a 

monthly External Distribution cost of $0. 

7External Distribution Fees for EDGA Summary 

Depth is subject to the New External Distributor 

Credit and eligible for a free trial. See EDGA 

Equities Exchange Fees Schedule, Market Data Fees. 

8The Exchange defines a ‘‘User’’ of an Exchange 

Market Data Product as a natural person, a 

proprietorship, corporation, partnership or entity, 

or device (computer or other automated service), 

that is entitled to receive Exchange data. See EDGA 

Equities Exchange Fees Schedule, Market Data Fees. 

9Uncontrolled External Distributors will receive 

at least the New External Distributor credit of at 

least three months for EDGA Summary Depth. For 

example, if an Uncontrolled Distributor enlists a 

new subscriber of EDGA Summary Depth during its 

second month taking EDGA Summary Depth, the 

Uncontrolled External Distributor will still receive 

a credit for the remainder of the second month, as 

well as the third month under the existing New 

External Distributor Credit program. 

10See Cboe Global Markets North American Data 

Policies. The Exchange proposes to codify the 

definition of an ‘‘Uncontrolled External Distributor’’ 

in the Definitions section of the Market Data Fees 

schedule in the Exchange’s Fees Schedule for 

transparency and clarity. 

11The Exchange notes that it has a similar 18 

moth requirement for participants to be considered 

eligible for the New Member Program. See EDGA 

Equities Exchange Fees Schedule, New Member 

Program. 

12See e.g., EDGX Equities Exchange Fees 

Schedule, Market Data Fees. 

13See e.g., Id. 

14The 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., EDGX, EDGA, and BZX). See Exchange Rule 

13.8(b). The Cboe One Feed contains optional 

functionality which enables recipients to receive 

aggregated two-sided quotations from the Cboe 

Equities Exchanges for up to five (5) price levels 

(‘‘Cboe One Premium Feed’’). The Cboe One 

Premium external distribution fee is equal to the 

aggregate EDGX Summary Depth, BYX Summary 

Depth, EDGA Summary Depth, and BZX Summary 

Depth external distribution fees. 

15The Exchange notes that when it first adopted 

the New External Distributor Credit for Cboe One 

Summary, it similarly applied for a new External 

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

Exchange Act Release No. 74283 (February 18, 

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

2015–09. 

16See EDGA Fee Schedule. 

17External Distribution Fees for both Cboe One 

Summary and Cboe One Premium are subject to the 

New External Distribution Credit and eligible for a 

free trial. See EDGA Equities Exchange Fees 

Schedule. 

18The proposed waivers of the External 

Distribution fees for each of Cboe One Summary 

and Cboe One Premium will be applied separately. 

For example, when an Uncontrolled External 

Distributor that is receiving a fee waiver for both 

Cboe One Summary and Cboe One Premium enlists 

a first User for Cboe One Summary, the 

Uncontrolled External Distributor will no longer 

Continued 

entered into the System for up to five (5) 

price levels. The EDGA Summary Depth 

Data Feed also contains the individual 

last sale information, Market Status, 

Trading Status, and Trade Break 

messages.5 The EDGA Summary Depth 

Data Feed benefits investors by 

facilitating their prompt access to realtime market depth information 

contained in EDGA Summary Depth 

Data. The Exchange’s Affiliates also 

offer similar depth-of-book data feeds. 

Particularly, each of the Exchange’s 

Affiliates offer depth-of-book quotations 

up to five (5) price levels based on their 

own quotation and trading activity that 

is substantially similar to the 

information provided by the Exchange 

through the EDGA Summary Depth. 

The Exchange proposes to make the 

following fee changes relating to EDGA 

Summary Depth. 

EDGA Summary Depth Data Feed New 

Uncontrolled External Distributor 

External Distribution Fee Waiver 

Currently, the Exchange does not 

assess an External Distribution fee to 

any External Distributor 6 of the EDGA 

Top Data Feed and as such, the 

Exchange does not propose a fee waiver 

for this. However, all External 

Distributors of EDGA Summary Depth 

Data Feed are charged an External 

Distribution fee of $2,500 per month.7

The Exchange proposes to adopt a new 

waiver which will provide that new 

Uncontrolled External Distributors of 

the EDGA Summary Depth feed will not 

be charged the External Distributor fee 

until such time they enlist one or more 

Users 8 to receive the EDGA Summary 

Depth Feed (the ‘‘New Uncontrolled 

External Distributor EDGA Depth Fee 

Waiver’’).9 ‘‘Uncontrolled External 

Distributors’’ distribute data externally 

to a User that is not an affiliate of the 

Uncontrolled Distributor and is unable 

to control the entitlements of and 

display of information to such User (i.e., 

a data feed subscriber).10 To be eligible 

for the New Uncontrolled External 

Distributor EDGA Depth Fee Waiver, a 

new Uncontrolled External Distributor 

must not have received EDGA Summary 

Depth feed within the last 18 months.11

As discussed further below, the 

Exchange seeks to adopt the proposed 

New Uncontrolled External Distributor 

EDGA Depth Fee Waiver to incentivize 

vendors to adopt the EDGA Summary 

Depth feed proactively without having 

to wait for customer demand to start 

development and integration of data 

feeds. The Exchange notes that both the 

Exchange and its Affiliates currently 

offer similar credits to External 

Distributors (which both Uncontrolled 

and Controlled External Distributors are 

eligible for) for the purposes of allowing 

them time to enlist new users to receive 

certain data feeds. For example, the 

Exchange and its Affiliates currently 

offer a one (1) month New External 

Distributor Credit applicable to External 

Distributors of top-of-book data feeds.12

They also offer a three (3) month new 

External Credit applicable to External 

Distributors of summary depth-of-book 

feeds.13

Cboe One Summary and Premium 

By way of background, Cboe One 

Premium is a data feed that 

disseminates, on a real-time basis, the 

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

all displayed orders for securities traded 

on EDGA and its Affiliates and contains 

optional functionality which enables 

recipients to receive aggregated twosided quotations from EDGA and its 

Affiliates for up to five (5) price levels.14

The Cboe One Premium Data Feed is 

created using the data from the 

Exchange and its Affiliates’ Summary 

Depth data feeds. In contract, Cboe One 

Summary is a data feed that 

disseminates, on a real-time basis, the 

aggregate BBO of all displayed orders 

for securities traded on EDGA and its 

affiliated equities exchanges and also 

contains individual last sale information 

for the EDGA and its affiliated equities 

exchanges.15 The Cboe One Summary 

Data Feed is created using the data from 

the Exchange and its Affiliates’ Top data 

feeds. Currently, the Exchange offers the 

New External Distributor Credit which 

provide that new External Distributors 

of the Cboe One Premium Feed and 

Cboe One Summary Feed will not be 

charged an External Distributor Fee for 

their first three (3) months and one (1) 

month, respectively, in order to allow 

them to enlist new Users to receive the 

respective feed.16 The Exchange 

proposes to make the following fee 

change relating to both the Cboe One 

Summary Data Feed and the Cboe One 

Premium Data Feed. 

Cboe One Summary and Premium New 

Uncontrolled External Distributor 

External Distribution and Data 

Consolidation Fee Waivers 

Currently, the Exchange assesses all 

External Distributors of Cboe One 

Summary an External Distribution fee of 

$5,000 per month and External 

Distributors of Cboe One Premium an 

External Distribution fee of $12,500 per 

month.17 The Exchange proposes to 

adopt fee waivers which will provide 

that new Uncontrolled External 

Distributors of the Cboe One Summary 

and Cboe One Premium feeds will not 

be charged either the (i) External 

Distribution fees nor (ii) Data 

Consolidation fee until such time they 

enlist one or more Users to receive the 

Cboe One Summary or Cboe One 

Premium Feeds (the ‘‘New Uncontrolled 

External Distributor Cboe One Summary 

and Cboe One Premium Fee Waiver’’).18


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eligible to receive the waiver for Cboe One 

Summary, but will still receive the waiver for Cboe 

One Premium until and unless it enlists a new 

subscriber for Cboe One Premium. Additionally 

Uncontrolled External Distributors will receive at 

least the one month New External Distributor Credit 

for Cboe One Summary and the New External 

Distributor credit of at least three months for Cboe 

One Premium. For example, if an Uncontrolled 

Distributor enlists a new subscriber of Cboe One 

Premium during its second month taking Cboe One 

Premium, the Uncontrolled External Distributor 

will still receive a credit for the remainder of the 

second month, as well as the third month under the 

existing New External Distributor Credit program. 

19See supra note 11. 

20See Cboe EDGA Fee Schedule. If a vendor 

distributes the Cboe One Options Feed to another 

firm, who then re-distributes the Cboe One Options 

Feed, both entities would be subject to the Data 

Consolidation Fee. A vendor will only be assessed 

a single Data Consolidated Fee, even if it distributes 

Cboe One Options Feed to more than one entity. 

21 15 U.S.C. 78f(b). 

22 15 U.S.C. 78f(b)(5). 

23 15 U.S.C. 78f(b)(8). 

24 15 U.S.C. 78k–1. 

25Controlled Distributors may be Internal or 

External Distributors. See supra note 10. 

‘‘Controlled External Distributors’’ provide data to 

an unaffiliated User (i.e., externally distribute) and 

unlike Uncontrolled External Distributors, they 

control the entitlement of and display of info to 

such User. 

26 Id. 

To be eligible for either fee waiver for 

the applicable feed(s) (Cboe One 

Summary and/or Cboe One Premium), 

the new Uncontrolled Data Distributor 

must not have received the applicable 

data feed(s) for which it seeks a waiver 

in the last 18 months.19 For clarity, 

similar to the New Uncontrolled 

External Distributor EDGA Depth Fee 

Waiver, while the Uncontrolled External 

Distributor receives the New 

Uncontrolled External Distributor Cboe 

One Summary and Cboe One Premium 

Fee Waiver, the Uncontrolled External 

Distributor will not have any customers 

receiving this data. As described herein, 

once the New Uncontrolled External 

Distributor enlists its first User, it is no 

longer eligible to receive the New 

Uncontrolled External Distributor Cboe 

One Summary and Cboe One Premium 

Fee Waiver. 

To start, the Exchange’s proposal to 

waive the External Distributor fee for 

New Uncontrolled External Distributors 

until a User is enlisted, will prevent the 

combined cost of subscribing to BYX, 

EDGA, EDGX, and BZX Summary Depth 

feeds for new Uncontrolled External 

Distributors to be greater than those 

currently charged to subscribe to the 

Cboe One Premium feed. Similarly, the 

proposed External Distributor fee waiver 

for Cboe One Summary will prevent the 

combined cost of subscribing to BYX, 

EDGA, EDGX, and BZX Top feeds for 

new Uncontrolled External Distributors 

to be greater than those currently 

charged to subscribe to the Cboe One 

Summary feed. 

Next, the Exchange proposes to waive 

the Data Consolidation fee for New 

Uncontrolled External Distributors until 

its first User enlists for the Cboe One 

feeds. The Exchange currently charges 

Distributors of the Cboe One Feeds a 

separate Data Consolidation Fee of 

$1,000 per month, which reflects the 

value of the aggregation and 

consolidation function the Exchange 

performs in creating the Cboe One 

Options Feed.20 As stated above, the 

Exchange creates the Cboe One feeds 

from data derived from the Cboe 

Equities Exchanges. Distributors 

(including vendors) could similarly 

create a competing product to the Cboe 

One feeds based on these individual 

data feeds offered by the Exchanges and 

could charge its clients a fee that it 

believes reflects the value of the 

aggregation and consolidation function. 

The Exchange proposes to adopt this 

fee waiver to similarly prevent new 

Uncontrolled External Distributors of 

the Cboe One Summary or Cboe One 

Premium feeds from being charged a 

Data Consolidation Fee until such time 

they enlist one or more Users to receive 

the Cboe One Premium or Cboe One 

Summary feeds. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.21 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 22 requirements that the rules of 

an exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, 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. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) requirement that the 

rules of an exchange not be designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange also believes this 

proposal is consistent with Section 

6(b)(8) of the Act, which requires that 

the rules of an exchange not impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act.23 In addition, 

the Exchange believes that the proposed 

rule change is consistent with Section 

11(A) of the Act as it supports (i) fair 

competition among brokers and dealers, 

among exchange markets, and between 

exchange markets and markets other 

than exchange markets, and (ii) the 

availability to brokers, dealers, and 

investors of information with respect to 

quotations for and transactions in 

securities.24

First, the Exchange notes that the 

EDGA Summary Depth Feed, Cboe One 

Summary Data Feed and Cboe One 

Premium Data Feed (together, the 

‘‘Applicable Feeds’’) are distributed and 

purchased on a voluntary basis, in that 

neither the Exchange nor market data 

distributors are required by any rule or 

regulation to make these data products 

available. Distributors (including 

vendors) and Users can therefore 

discontinue use at any time and for any 

reason, including due to an assessment 

of the reasonableness of fees charged. 

Further, the Exchange is not required to 

make any proprietary data products 

available or to offer any specific pricing 

alternatives to any customers. 

The Exchange proposes that the 

proposed waivers applicable to EDGA 

Depth and Cboe One Feeds (together, 

the ‘‘New Uncontrolled External 

Distributor Fee Waivers’’) only apply to 

Uncontrolled External Distributors for 

two reasons. The first is to account for 

Uncontrolled External Distributors 

needing to develop to the data feed 

itself. By way of background, the other 

category of External Data Distributors 

are Controlled Distributors.25 Controlled 

Distributors both (i) provides data to a 

User and (ii) controls the entitlements of 

and display of information to such 

User.26 Therefore, the key distinction 

between Uncontrolled Distributors and 

Controlled Distributors is that 

Uncontrolled Distributors distribute a 

data feed and Controlled Distributors 

enable visible data for one of its Users. 

The proposed fee waivers will allow 

Uncontrolled External Distributors the 

necessary time to develop to the data 

feed itself and program all of the 

different messages, fields and flags and 

not subject them to any fees until such 

time they are able to recoup their costs 

from end-users. Additionally, once the 

data feed is setup on the Uncontrolled 

External Distributors end, there are 

typically long lead times for 

Uncontrolled External Distributors to 

onboard new downstream data feed 

customers. The lead times, or sales 

cycles, are vastly different for 


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27The Exchange notes that its Affiliates will also 

be proposing to adopt these same credits. 

28As noted above, Distributors may still receive 

this credit for any of the applicable feeds of which 

there are no Users (i.e., the Uncontrolled Distributor 

may still receive this credit for Cboe One Summary 

if there is a User subscribed for EDGA Summary 

Depth). 29See e.g., EDGX Equities Exchange Fees 

Schedule, Market Data Fees. 30The Exchange notes that in addition to the 

existing New External Distributor Credit offered by 

it and its affiliates, other exchanges have offered 

similar waivers for external redistribution. See 

EDGA Equities Exchange Fees Schedule, Market 

Data Fees and Securities Exchange Act Release No. 

90407 (November 12, 2020), 85 FR 73570 

(November 18, 2020 (SR–NYSE–2020–91). 

Uncontrolled versus Controlled 

Distributors, as Uncontrolled 

Distributors are attempting to locate 

Users who need to receive a real-time 

market data feed for downstream 

ingestion on their side (whether this be 

for trading, analysis, or application 

development). In contrast, Controlled 

Distributors are only entitling 

individual Users to view the data on a 

pre-existing Display application. For an 

Uncontrolled Distributor to both set up 

and find its first User as a data feed 

subscriber, it can easily take several 

months. As there is more uncertainty 

with the viability of both developing a 

data feed and finding Users for this data 

feed after the Uncontrolled External 

Distributor develops it, the Exchange 

believes it is therefore reasonable, 

equitable and not unfairly 

discriminatory for this discount to only 

apply to Uncontrolled External 

Distributors to encourage development 

of their data offerings. 

The Exchange has also taken into 

consideration its affiliated relationship 

with its Affiliates in its design of the 

proposed waivers 27 to ensure that 

vendors would be able to offer similar 

products to its Cboe One Summary and 

Cboe One Premium Feeds on the same 

terms as the Exchange from a cost 

perspective. While the Cboe Equities 

Exchanges are the exclusive distributors 

of the individual data feeds from which 

certain data elements may be taken to 

create the Cboe One feeds, they are not 

the exclusive distributors of the 

aggregated and consolidated 

information that comprises the Cboe 

One feeds. Any entity that receives, or 

elects to receive, the individual data 

feeds would be able to, if it so chooses, 

to create a data feed with the same 

information included in either of the 

Cboe One feeds and sell and distribute 

it to its clients so that it could be 

received by those clients as quickly as 

the Cboe One feeds would be received 

by those same clients. Such entities 

would also not be assessed any greater 

fees by the Exchange than the Exchange 

assess for the Cboe One feeds (i.e., those 

who elect to distribute and consolidate 

the individual data fees and those who 

elect to distribute the Cboe One feeds 

will all be eligible for the proposed fee 

waivers offered by the Exchange). 

New External Distributor Credit 

The Exchange believes it is reasonable 

to not charge Uncontrolled External 

Distributors of an Applicable Feed(s) 

until such time they enlist one or more 

Users to receive the applicable feed as 

such Distributors will not be subject to 

the External Distribution Fees for the 

applicable product(s) during this 

period.28 Additionally, the Exchange 

and its Affiliates offer a similar credit 

now that all External Distributors, 

including Controlled External 

Distributors, may receive.29 The 

proposed credit is intended to 

incentivize new Uncontrolled External 

Distributors to enlist Users to subscribe 

to the Applicable Feeds in an effort to 

broaden the products’ distribution to 

data feed Users. While this incentive is 

not available to Internal Distributors of 

these products, the Exchange believes it 

is appropriate as Internal Distributors 

have no Users outside of their own firm. 

Furthermore, External Distributors are 

subject to higher risks of launch as the 

data is provided outside their own firm. 

In contrast, Internal Distributors who 

only subscribe to a specific Exchange 

offered market data product when there 

is a need as they themselves are using 

the information, External Distributors 

do not use the data themselves, but as 

noted, take the risk of onboarding the 

data to sell as a service to downstream 

customers.30 For these reasons, the 

Exchange believes it is appropriate, 

equitable and not unfairly 

discriminatory to provide additional 

incentives to External Distributors so 

they have sufficient time to test the data 

within their own systems prior to going 

live externally. As discussed above, the 

Exchange also believes it is appropriate 

to limit this specific credit to 

Uncontrolled External Distributors 

given the longer development times 

associated with both the integration of 

the data feed and onboarding Users. 

Data Consolidation Fee 

The Exchange believes it is reasonable 

to not charge Uncontrolled External 

Distributors of Cboe One Summary and 

Cboe One Premium a Data 

Consolidation Fee until such time they 

enlist one or more Users to receive the 

applicable feed as such Distributors will 

not be subject to the Data Consolidation 

Fee for the applicable product(s) during 

this period. For the avoidance of doubt, 

once an Uncontrolled External 

Distributor enlists its first User, this 

waiver will no longer be applicable—at 

no time will an Uncontrolled External 

Distributor receive this waiver while it 

has customers receiving the applicable 

data feed. As previously discussed, the 

Exchange believes the proposed Data 

Consolidation Fee Waiver for 

Uncontrolled External Distributors is 

not designed to permit unfair 

discrimination against Controlled 

External Distributors because of the 

longer lead times in the development 

Uncontrolled External Distributors 

experience. Further, as previously 

discussed, the Exchange believes only 

applying this to a subset of External 

Distributors and not any Internal 

Distributors is equitable and not 

unfairly discriminatory given the 

additional risk External Distributors 

assume when building out a product for 

which they have no existing use cases. 

Therefore, the Exchange believes the 

proposed application of the Data 

Consolidation Fee Waiver is reasonable 

and would not permit unfair 

discrimination. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

The proposed rule changes are 

grounded in the Exchange’s efforts to 

compete more effectively and to assist 

in mitigating business costs (i.e., the 

costs associated with the development 

of data feeds and seeking Users to 

onboard for such data feeds) for 

Uncontrolled External Distributors. 

Further, as previously discussed, the 

Exchange believes the proposed Data 

Consolidation Fee Waiver for 

Uncontrolled External Distributors is 

not designed to permit unfair 

discrimination against Controlled 

External Distributors because of the 

longer lead times in the development 

Uncontrolled External Distributors 

experience. As a result, the Exchange 

believes this proposed rule change 

permits fair competition among national 

securities exchanges. Further, the 

Exchange believes that these changes 

will not cause any unnecessary or 

inappropriate burden on intermarket 

competition, as the proposed incentive 

program applies uniformly to all 

Uncontrolled External Distributors. 


ddrumheller on DSK120RN23PROD with NOTICES1
106696 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 

31 15 U.S.C. 78s(b)(3)(A). 

32 17 CFR 240.19b–4(f). 

33 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 July 3, 2023 (SR–CboeBZX–2023–046). 

On September 1, 2023, the Exchange withdrew that 

filing and submitted SR–CboeBZX–2023–067. On 

September 29, 2023, the Securities and Exchange 

Commission issued a Suspension of and Order 

Instituting Proceedings to Determine whether to 

Approve or Disapprove a Proposed Rule Change to 

Amend its Fees Schedule Related to Physical Port 

Fees (the ‘‘OIP’’) in anticipation of a possible U.S. 

government shutdown. On October 2, 2023, the 

Exchange filed the proposed fee change (SR– 

CboeBZX–2023–080). On October 13, 2023, the 

Exchange withdrew that filing and on business date 

October 16, 2023 submitted SR–CboeBZX–2023– 

084. On December 12, 2023, the Exchange withdrew 

that filing and submitted SR–CboeBZX–2023–103. 

On February 9, 2024, the Exchange withdrew that 

filing and submitted SR–CboeBZX–2024–016. On 

April 9, 2024, the Exchange withdrew that filing 

and submitted SR–CboeBZX–2024–027. On June 7, 

2024, the Exchange withdrew that filing and 

submitted SR–CboeBZX–2024–051. On August 29, 

2024, the Exchange withdrew that filing and 

submitted SR–CboeBZX–2024–079. On October 25, 

2024, the Exchange withdrew that filing and 

submitted SR–CboeBZX–2024–106. On October 28, 

2024, the Exchange withdrew that filing and 

submitted SR–CboeBZX–2024–108. On December 

18, 2024, the Exchange withdrew that filing and 

submitted this filing. 

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 31 and paragraph (f) of Rule 

19b–4 32 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 SR– 

CboeEDGA–2024–050 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–2024–050. 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–CboeEDGA–2024–050 and should 

be submitted on or before January 21, 

2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.33

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–30900 Filed 12–27–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101997; File No. SR– 

CboeBZX–2024–127] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fees Schedule Related to Physical 

Port Fees 

December 19, 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 December 

18, 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 

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. (the 

‘‘Exchange’’ or ‘‘BZX Equities’’) 

proposes to amend its Fees Schedule. 

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 its 

fee schedule relating to physical 

connectivity fees.3

By way of background, a physical port 

is utilized by a Member or non-Member 


ddrumheller on DSK120RN23PROD with NOTICES1