22998 Federal Register / Vol. 87, No. 74 / Monday, April 18, 2022 / Notices 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3For example, if a User that has elected to 

participate in the free trial program for BZX Options 

Top data is approved on April 15, 2022, that User 

will not be subject to any applicable fees (i.e., User 

Fee) through May 14, 2022. 

4See The Nasdaq Stock Market LLC (‘‘Nasdaq’’) 

Equity 7 Pricing Schedule, Section 112(b)(1) and 

New York Stock Exchange LLC (‘‘NYSE’’) 

Proprietary Market Data Fees Schedule, General. 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(4). 

7 15 U.S.C. 78k–1. 

8See Nasdaq Equity 7 Pricing Schedule, Section 

112(b)(1) and NYSE Proprietary Market Data Fees 

Schedule, General. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08163 Filed 4–15–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94689; File No. SR– 

CboeBZX–2022–025] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend the 

Fees Applicable to Various Market 

Data Products 

April 12, 2022. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on April 1, 

2022, Cboe BZX Exchange, Inc. (the 

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

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe BZX Exchange, Inc. (‘‘BZX’’ or 

the ‘‘Exchange’’) is filing with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) a proposed rule 

change to amend the fees applicable to 

various market data products. The text 

of the proposed rule change is provided 

in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://www.cboe.com/ 

AboutCBOE/CBOELegalRegulatory

Home.aspx), 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 Fees Schedule 

for its options trading platform (‘‘BZX 

Options’’). Particularly, the Exchange 

proposes to adopt a free trial program 

for Exchange market data products, 

effective April 1, 2022. 

The Exchange proposes a 30-day free 

trial for any User or Distributor that 

subscribes to or distributes, 

respectively, an Exchange real-time 

market data product (‘‘Product’’) listed 

on the Fee Schedule for the first time. 

As proposed, a first-time User would be 

any entity or individual that has not 

previously subscribed to a particular 

Product and a first-time Distributor 

would be any entity that has not 

previously distributed, internally or 

externally, a particular Product. A firsttime User or Distributor of a particular 

Exchange market data product would 

not be charged any applicable fees listed 

in the Fee Schedule for that product for 

the duration of the 30 days.3 For 

example, a firm that currently 

subscribes to BZX Options Top would 

be eligible to receive a free 30-day trial 

of BZX Options Depth, whether in a 

display-only format or for non-display 

use. However, a firm that currently 

receives BZX Options Depth for nondisplay use would not be eligible to 

receive a free 30-day trial of BZX 

Options Depth in a display-only format. 

The Exchange would provide the 30-day 

free trial for each particular product to 

each first-time User or Distributor once. 

The Exchange believes that providing 

a 30-day free trial to Exchange real-time 

market data products listed on the 

Exchange’s Fee Schedule would enable 

potential Users and Distributors to 

determine whether a particular 

Exchange market data product provides 

value to their business models or 

investment strategies, as applicable, 

before fully committing to expend 

development and implementation costs 

related to the receipt or distribution of 

that product, and is intended to 

encourage increased use of the 

Exchange’s market data products by 

defraying some of the development and 

implementation costs Users or 

Distributors would ordinarily have to 

expend before using a product. The 

Exchange notes that other exchanges 

have similar free trial programs.4

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,5

in general, and furthers the objectives of 

Section 6(b)(4),6 in particular, as it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other recipients of Exchange data. In 

addition, the Exchange believes that the 

proposed rule change is consistent with 

Section 11(A) of the Act as it supports 

(i) fair competition among brokers and 

dealers, among exchange markets, and 

between exchange markets and markets 

other than exchange markets, and (ii) 

the availability to brokers, dealers, and 

investors of information with respect to 

quotations for and transactions in 

securities.7

The Exchange believes that adopting 

a free trial program for real-time market 

data products listed in its Fees Schedule 

is equitable and reasonable. Particularly, 

providing Exchange real-time market 

data products to new Users and 

Distributors free-of-charge for the first 

30 days is reasonable because it would 

allow vendors and subscribers to 

become familiar with the feeds and 

determine whether they suit their needs 

without incurring fees. It is also 

intended to incentivize Distributors to 

enlist more Users to subscribe to 

Exchange market data products in an 

effort to broaden the products’ 

distribution. Making a new market data 

product available for free for a trial 

period is also consistent with offerings 

of other exchanges. For example, NYSE 

and Nasdaq offer similar free trial 

programs.8

The Exchange believes the proposal to 

provide the Exchange market data 

products to new Users or Distributors 

free-of-charge for their first 30 days 

subscribing or distributing the data, as 

applicable, is equitable and not unfairly 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 87, No. 74 / Monday, April 18, 2022 / Notices 22999 

9See Nasdaq Equity 7 Pricing Schedule, Section 

112(b)(1) and NYSE Proprietary Market Data Fees 

Schedule, General. 

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

11 17 CFR 240.19b–4(f). 12 17 CFR 200.30–3(a)(12). 

discriminatory because it applies to any 

first-time User or Distributor, regardless 

of the use they plan to make of the feed. 

As proposed, any first-time User or 

Distributor would not be charged any 

applicable fee listed in the Fee Schedule 

for any of the Exchange’s real-time 

market data products listed in the Fee 

Schedule for 30 days. The Exchange 

believes it is equitable to restrict the 

availability of this free trial to Users or 

Distributors that have not previously 

subscribed to, or distributed, 

respectively the particular market data 

product, since Users or Distributors who 

are current or previous subscribers or 

Distributors, respectively of that product 

are already familiar with the product 

and whether it would suit their needs. 

The Exchange believes that the 

proposed rule change providing for a 

free trial period to test is not unfairly 

discriminatory because the financial 

benefit of the fee waiver would be 

available to all Users subscribing to, and 

all Distributors distributing, an 

Exchange Product for the first time on 

a free-trial basis. The Exchange believes 

there is a meaningful distinction 

between Users and Distributors that are 

subscribing to or distributing a market 

data product for the first time, who may 

benefit from a period within which to 

set up and test use of the product before 

it becomes fee liable, and Users and 

Distributors that are already receiving or 

distributing the Exchange’s market data 

products and are deriving value from 

such use. The Exchange believes that 

the limited period of the free trial would 

not be unfairly discriminatory to other 

users of the Exchange’s market data 

products because it is designed to 

provide a reasonable period of time to 

set up and test a new market data 

product. The Exchange further believes 

that providing a free trial for 30 days 

would ease administrative burdens for 

data recipients to subscribe to or 

distribute a new data product and 

eliminate fees for a period before such 

users are able to derive any benefit from 

the data. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would result 

in any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange operates in a highly 

competitive environment, and its ability 

to price these data products is 

constrained by competition among 

exchanges that offer similar data 

products to their customers. The 

Exchange believes that the proposed 

free trial program does not put any 

market participants at a relative 

disadvantage compared to other market 

participants. As discussed, the proposed 

trial would apply to first time Users and 

Distributors on an equal and nondiscriminatory basis. Further, the 

Exchange believes that the proposed 

program does not impose a burden on 

competition or on other SROs that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that the 

proposal would cause any unnecessary 

or inappropriate burden on intermarket 

competition as other exchanges are free 

to lower their prices or provide a free 

trial to better compete with the 

Exchange’s offering. Indeed, other 

national securities exchanges already 

offer similar free trial programs today.9

The proposed amendments are also 

designed to enhance competition by 

providing an incentive to Distributors to 

enlist new subscribers and Users to 

subscribe to Exchange real-time market 

data products. 

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 10 and paragraph (f) of Rule 

19b–4 11 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CboeBZX–2022–025 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–CboeBZX–2022–025. 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–CboeBZX–2022–025 and 

should be submitted on or before May 

9, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08168 Filed 4–15–22; 8:45 am] 

BILLING CODE 8011–01–P 


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