Notice2021-13283
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
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 24, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 119 (Thursday, June 24, 2021)</title>
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[Federal Register Volume 86, Number 119 (Thursday, June 24, 2021)]
[Notices]
[Pages 33446-33448]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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 (<a href="http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx">http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx</a>), 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 (<a href="http://datashop.cboe.com">datashop.cboe.com</a>). 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
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#b9cbccd5dc94dad6d4d4dcd7cdcaf9cadcda97ded6cf"><span class="__cf_email__" data-cfemail="acded9c0c981cfc3c1c1c9c2d8dfecdfc9cf82cbc3da">[email protected]</span></a>. Please include
File Number SR-CBOE-2021-038 on the subject line.
Paper Comments
<bullet> 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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
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