Document ID: SEC-2021-0872-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Cboe Exchange, Inc.
Posted Date: 2021-06-24T04:00Z

[Federal Register Volume 86, Number 119 (Thursday, June 24, 2021)]
[Notices]
[Pages 33446-33448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13283]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92169; File No. SR-CBOE-2021-038]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Its Fees Schedule Relating to the Sale of Historical Intraday Open-
Close Volume Data

June 14, 2021.
    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 June 1, 2021, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe 
Options'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the Exchange. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options) proposes 
to amend its Fees Schedule relating to the sale of historical Intraday 
Open-Close volume data. 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/CBOELegalRegulatoryHome.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 its Fees Schedule to offer a free 
trial during the months of June and July 2021 for an ad-hoc request of 
three (3) historical months of Intraday Open-Close historical data to 
all Cboe Options Trading Permit Holders (``TPHs'') and non-TPHs who 
have never before subscribed to the Intraday Open-Close historical 
files.
    By way of background, the Exchange historically offered Open-Close 
Data, which is an end-of-day volume summary of trading activity on the 
Exchange at the option level by origin (customer, professional 
customer, broker-dealer, and market maker), side of the market (buy or 
sell), price, and transaction type (opening or closing). The customer 
and professional customer volume is further broken down into trade size 
buckets (less than 100 contracts, 100-199 contracts, greater than 199 
contracts). The Open-Close Data is proprietary Cboe Options trade data 
and does not include trade data from any other exchange. It is also a 
historical data product and not a real-time data feed. The recently 
adopted Intraday Open-Close Data provides similar information to that 
of Open-Close Data but is produced and updated every 10 minutes during 
the trading day. Data is captured in ``snapshots'' taken every 10 
minutes throughout the trading day and is available to subscribers 
within five minutes of the conclusion of each 10-minute period.\3\ The 
Intraday Open-Close Data provides a volume summary of trading activity 
on the Exchange at the option level by origin (customer, professional 
customer, broker-dealer, and market maker), side of the market (buy or 
sell), and transaction type (opening or closing). The customer and 
professional customer volume are further broken down into trade size 
buckets (less than 100 contracts, 100-199 contracts, greater than 199 
contracts). The Intraday Open-Close Data is also proprietary Cboe 
Options trade data and does not include trade data from any other 
exchange.
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    \3\ For example, subscribers to the intraday product will 
receive the first calculation of intraday data by approximately 9:42 
a.m. ET, which represents data captured from 9:30 a.m. to 9:40 a.m. 
Subscribers will receive the next update at 9:52 a.m., representing 
the data previously provided together with data captured from 9:40 
a.m. through 9:50 a.m., and so forth. Each update will represent the 
aggregate data captured from the current ``snapshot'' and all 
previous ``snapshots.''
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    Cboe LiveVol, LLC (``LiveVol''), a wholly owned subsidiary of the 
Exchange's parent company, Cboe Global Markets, Inc., makes the 
Intraday Open-Close Data available for purchase to TPHs and non-TPHs on 
the LiveVol DataShop website (datashop.cboe.com). Customers may 
currently purchase Intraday Open-Close Data on a subscription basis 
(monthly or annually) or by ad hoc request for a specified month (e.g., 
request for Intraday Open-Close Data for month of January 2021). The 
Exchange seeks only to adopt a free trial for historical ad hoc 
requests for Intraday Open-Close Data for new purchasers. Currently, ad 
hoc requests for historical Intraday Open-Close Data are available to 
all customers at the same price and in the same manner. The current 
charge for this historical Intraday Open-Close Data covering all of the 
Exchange's securities (Equities, Indexes & ETF's) is $1,000 per month. 
The Exchange now proposes to adopt a free trial available during the 
months of June and July 2021 to provide up to three (3) historical 
months of Intraday Open-Close Data to any TPH or non-TPH that has not 
previously subscribed to this offering.\4\ The Exchange believes the 
proposed trial will serve as an incentive for new users to start 
purchasing Intraday Open-Close historical data. Particularly, the 
Exchange believes it will give potential subscribers the ability to use 
and test the data offering before signing up for additional months. The 
Exchange also notes another exchange offers a free trial for new 
subscribers of a similar data product.\5\ Lastly, the purchase of 
Intraday Open-Close historical data is discretionary and not 
compulsory.
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    \4\ For example, if a TPH or non-TPH that has never made an ad-
hoc request for a specified month of Intraday Open-Close historical 
data wishes to purchase Intraday Open-Close Data for the months of 
January, February and March 2021 during the month of June 2021, the 
historical files for those months would be provided free of charge. 
If a new user wishes to purchase Intraday Open-Close historical data 
for the months of January, February, March and April 2021 during the 
month of June 2021, then the data for January, February and March 
2021 would be provided free of charge, and the new user would be 
charged $1,000 for the April 2021 historical file.
    \5\ See Nasdaq ISE, Options 7 Pricing Schedule, Section 10A., 
Nasdaq ISE Open/Close Trade Profile End of Day.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with

[[Page 33447]]

the objectives of Section 6 of the Act,\6\ in general, and furthers the 
objectives of Section 6(b)(4),\7\ in particular, as it is designed to 
provide for the equitable allocation of reasonable dues, fees and other 
charges among its Members and issuers and other persons using its 
facilities. The Exchange also believes that the proposed rule change is 
consistent with the objectives of Section 6(b)(5) \8\ 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, and, particularly, is not 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. Additionally, the Exchange believes the proposed 
rule change is consistent with the Section 6(b)(5) \9\ requirement that 
the rules of an exchange not be designed to permit unfair 
discrimination between customers, issuers, brokers, or dealers.
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
    \8\ 15 U.S.C. 78f.(b)(5).
    \9\ Id.
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    In particular, the Exchange believes that the proposed free trial 
for any TPH or non-TPH who has not previously purchased Intraday Open-
Close historical data is reasonable because such users would not be 
subject to fees for up to 3 months' worth of Intraday Open-Close 
historical data. The Exchange believes the proposed free trial is also 
reasonable as it will give potential subscribers the ability to use and 
test the Intraday Open-Close historical data prior to purchasing 
additional months and will therefore encourage and promote new users to 
purchase the Intraday Open-Close historical data. The Exchange believes 
that the proposed discount is equitable and not unfairly discriminatory 
because it will apply equally to all TPHs and non-TPHs who have not 
previously purchased Intraday Open-Close historical data. Lastly, as 
noted above, another exchange offers a free trial to new users for a 
similar data product \10\ and purchase of this data product is 
discretionary and not compulsory.
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    \10\ See Nasdaq ISE, Options 7 Pricing Schedule, Section 10A., 
Nasdaq ISE Open/Close Trade Profile End of Day.
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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 Exchange does not 
believe that the proposed rule change will impose any burden on 
intramarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act because the proposed rule change 
will apply to all TPHs and non-TPHs who have never made an ad-hoc 
request to purchase Intraday Open-Close historical data. Moreover, 
purchase of Intraday Open-Close historical files is discretionary and 
not compulsory.
    The Exchange does not believe that the proposed rule changes will 
impose any burden on intermarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act because the 
proposed change applies only to Cboe Options. Furthermore, another 
exchange currently offers a similar free trial to new users of a 
similar data product.\11\
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    \11\ See Nasdaq ISE, Options 7 Pricing Schedule, Section 10A., 
Nasdaq ISE Open/Close Trade Profile End of Day.
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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 is effective upon filing pursuant to 
Section 19(b)(3)(A) \12\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \13\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such 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 shall institute proceedings under 
Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \14\ 15 U.S.C. 78s(b)(2)(B).
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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-CBOE-2021-038 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-CBOE-2021-038. 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-CBOE-2021-038 and should be submitted on 
or before July 15, 2021.

[[Page 33448]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-13283 Filed 6-23-21; 8:45 am]
BILLING CODE 8011-01-P