Notice2022-05374
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Emerald Fee Schedule To Adopt Fees for a New Data Product Called the Liquidity Taker Event Report-Complex Orders
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
March 15, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 50 (Tuesday, March 15, 2022)</title>
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[Federal Register Volume 87, Number 50 (Tuesday, March 15, 2022)]
[Notices]
[Pages 14603-14607]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-05374]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94386; File No. SR-EMERALD-2022-08]
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the MIAX Emerald Fee Schedule To Adopt Fees for a New Data Product
Called the Liquidity Taker Event Report--Complex Orders
March 9, 2022.
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 February 25, 2022, MIAX Emerald, LLC (``MIAX Emerald'' 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.
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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
The Exchange is filing a proposal to amend the MIAX Emerald Fee
Schedule (the ``Fee Schedule'') to adopt fees for a new data product
known as the Liquidity Taker Event Report--Complex Orders.\3\
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\3\ See, generally, Exchange Rule 531(b).
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The text of the proposed rule change is available on the Exchange's
website at <a href="http://www.miaxoptions.com/rule-filings/emerald">http://www.miaxoptions.com/rule-filings/emerald</a>, at MIAX's
principal office, 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 recently established a new data product known as the
Liquidity Taker Event Report--Complex Orders (the ``Complex Order
Report''),\4\ which will be available for purchase by Exchange Members
\5\ on a voluntary basis. The Exchange now proposes to adopt fees for
the Complex Order Report, which is described under Exchange Rule
531(b).\6\ The Complex Order Report is an optional product available to
Members. The Exchange notes that the proposed fees for the Complex
Order Report are identical to the fees the Exchange recently
established for subscribers to a similar report known as the Liquidity
Taker Event Report--Simple Orders (the ``Simple Order Report'').\7\ As
further described below, the Exchange proposes to also offer a
discounted combined fee for Members who purchase annual subscriptions
to both the Simple Order Report and Complex Order Report.
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\4\ See Securities Exchange Act Release No. 94136 (February 2,
2022), 87 FR 7223 (February 8, 2022) (SR-EMERALD-2022-02).
\5\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
the Definitions Section of the Fee Schedule and Exchange Rule 100.
\6\ See Exchange Rule 531(b).
\7\ See Securities Exchange Act Release Nos. 91787 (May 6,
2021), 86 FR 26111 (May 12, 2021) (SR-EMERALD-2021-09) (Order
Approving Proposed Rule Change To Adopt Exchange Rule 531(a),
Reports, To Provide for a New ``Liquidity Taker Event Report'');
92028 (May 26, 2021), 86 FR 29608 (June 2, 2021) (SR-EMERALD-2021-
19) (Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule To Adopt Fees for a New Data
Product Known as the Liquidity Taker Event Report). See Exchange
Rule 531(a) for the rule text of the Simple Order Report. See also
Fee Schedule, Section 7), Reports, for the fees for the Simple Order
Report.
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By way of background, the Complex Order Report is a daily report
that provides a Member (``Recipient Member'') with its liquidity
response time details for executions of a Complex Order resting on the
Strategy Book,\8\ where that Recipient Member attempted to execute
against such resting Complex Order \9\ within a certain timeframe. It
is important to note that the content of the Complex Order Report is
specific to the Recipient Member and the Complex
[[Page 14604]]
Order Report will not include any information related to any Member
other than the Recipient Member.
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\8\ The term ``Strategy Book'' means the Exchange's electronic
book of complex orders and complex quotes. See Exchange Rule
518(a)(17).
\9\ Only displayed orders will be included in the Complex Order
Report. The Exchange notes that it does not currently offer any non-
displayed orders types on its options trading platform.
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The following information is included in the Complex Order Report
regarding the resting order: (A) The time the resting order was
received by the Exchange; (B) symbol; (C) order reference number, which
is a unique reference number assigned to a new Complex Order at the
time of receipt; (D) whether the Recipient Member is an Affiliate \10\
of the Member that entered the resting order; \11\ (E) origin type
(e.g., Priority Customer,\12\ Market Maker \13\); (F) side (buy or
sell); and (G) displayed price and size of the resting order.\14\
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\10\ The term ``affiliate'' of or person ``affiliated with''
another person means a person who, directly, or indirectly,
controls, is controlled by, or is under common control with, such
other person. See Exchange Rule 100.
\11\ The Report will simply indicate whether the Recipient
Member is Affiliate of the Member that entered the resting order and
not include any other information that may indicate the identity of
the Member that entered the resting order.
\12\ The term ``Priority Customer'' means a person or entity
that (i) is not a broker or dealer in securities, and (ii) does not
place more than 390 orders in listed options per day on average
during a calendar month for its own beneficial account(s). The
number of orders shall be counted in accordance with Interpretation
and Policy .01 to Exchange Rule 100. See Exchange Rule 100.
\13\ The term ``Market Maker'' refers to ``Lead Market Makers'',
``Primary Lead Market Makers'' and ``Registered Market Makers''
collectively. See Exchange Rule 100.
\14\ This is the same type of information included in the Simple
Order Report, with the only difference being the information is for
Complex Orders on the Strategy Book. The Exchange notes that the
displayed price and size are also disseminated via the Exchange's
proprietary data feeds. The Exchange also notes that the displayed
price of the resting order may be different than the ultimate
execution price. This may occur when a resting order is displayed
and ranked at different prices upon entry to avoid a locked or
crossed market.
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The following information is included in the Complex Order Report
regarding the execution of the resting order: (A) The Complex EBBO \15\
at the time of execution; \16\ (B) the Complex ABBO \17\ at the time of
execution; \18\ (C) the time first response that executes against the
resting order was received by the Exchange and the size of the
execution and type of the response; \19\ (D) the time difference
between the time the resting order was received by the Exchange and the
time the first response that executes against the resting order was
received by the Exchange; \20\ and (E) whether the response was entered
by the Recipient Member. If the resting order executes against multiple
contra-side responses, only the Complex EBBO and Complex ABBO at the
time of the execution against the first response will be included.
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\15\ The term ``EBBO'' means the Exchange's best bid or offer.
See Exchange Rule 100. The Complex EBBO is calculated using the
Implied Complex MIAX Emerald Best Bid or Offer (``icEBBO'') combined
with the best price currently available on the Strategy Book to
establish the Exchange's best net bid and offer for a Complex
Strategy. The icEBBO is calculated using the best price from the
Simple Order Book for each component of a Complex Strategy including
displayed and non-displayed trading interest. For stock-option
orders, the icEBBO for a Complex Strategy is calculated using the
best price (whether displayed or non-displayed) on the Simple Order
Book in the individual option component(s), and the NBBO in the
stock component. See Exchange Rule 518(a)(12).
\16\ Exchange Rule 531(b)(1)(ii)(A) provides that if the resting
order executes against multiple contra-side responses, only the
Complex EBBO at the time of the execution against the first response
will be included.
\17\ The term ``ABBO'' or ``Away Best Bid or Offer'' means the
best bid(s) or offer(s) disseminated by other Eligible Exchanges
(defined in Exchange Rule 1400(g)) and calculated by the Exchange
based on market information received by the Exchange from the
Options Price Reporting Authority (``OPRA''). See Exchange Rule 100.
The Complex ABBO is calculated using the ABBO for each component of
a Complex Strategy to establish the best net bid and offer for a
Complex Strategy.
\18\ Exchange Rule 531(b)(1)(ii)(B) further provides that if the
resting order executes against multiple contra-side responses, only
the Complex ABBO at the time of the execution against the first
response will be included.
\19\ The time the Exchange received the response order would be
in nanoseconds and would be the time the response was received by
the Exchange's network, which is before the time the response would
be received by the System.
\20\ The time difference would be provided in nanoseconds.
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The following information is included in the Complex Order Report
regarding response(s) sent by the Recipient Member: (A) Recipient
Member identifier; (B) the time difference between the time the first
response that executes against the resting order was received by the
Exchange and the time of each Complex Order sent by the Recipient
Member, regardless of whether it executed or not; \21\ (C) size and
type of each Complex Order submitted by Recipient Member; and (D)
response reference number, which is a unique reference number attached
to the response by the Recipient Member.
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\21\ For purposes of calculating this duration of time, the
Exchange will use the time the resting order and the Recipient
Member's response(s) is received by the Exchange's network, both of
which would be before the order and response(s) would be received by
the System. This time difference would be provided in nanoseconds.
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The Complex Order Report includes the data set for executions and
contra-side responses that occurred within 200 microseconds of the time
the resting order was received by the Exchange. The Complex Order
Report contains historical data from the prior trading day and will be
available after the end of the trading day, generally on a T+1 basis.
The Complex Order Report does not include real-time data.
The Exchange believes the additional data points from the matching
engine outlined above may help Members gain a better understanding
about their own interactions with the Exchange. The Exchange believes
the Complex Order Report will provide Members with an opportunity to
learn more about better opportunities to access liquidity and receive
better execution rates. The Complex Order Report will increase
transparency and democratize information so that all firms that
subscribe to the Complex Order Report have access to the same
information on an equal basis, even for firms that do not have the
appropriate resources to generate a similar report regarding
interactions with the Exchange.
Members generally would use a liquidity accessing Complex Order if
there is a high probability that it will execute against an order
resting on the Exchange's Strategy Book. The Complex Order Report
identifies by how much time an order that may have been marketable
missed an execution. The Complex Order Report will provide greater
visibility into the missed trading execution, which will allow Members
to optimize their models and trading patterns to yield better execution
results.
The Complex Order Report will be a Member-specific report and will
help Members to better understand by how much time a particular order
missed executing against a specific resting order, thus allowing that
Member to determine whether it wants to invest in the necessary
resources and technology to mitigate missed executions against certain
resting orders on the Exchange's Strategy Book.
The Exchange proposes to provide the Complex Order Report in
response to Member demand for data concerning the timeliness of their
incoming Complex Orders and executions against resting Complex Orders.
Members have periodically requested from the Exchange's trading
operations personnel information concerning the timeliness of their
incoming orders and efficacy of their attempts to execute against
resting liquidity on the Exchange's Strategy Book. The purpose of the
Complex Order Report is to provide Members the necessary data in a
standardized format on a T+1 basis to those that subscribe to the
Complex Order Report on an equal basis.
The product is offered to Members on a completely voluntary basis
in that the Exchange is not required by any rule or regulation to make
this data available and potential subscribers may purchase the Complex
Order Report only if they voluntarily choose to do so. It is a business
decision of each Member
[[Page 14605]]
whether to subscribe to the Complex Order Report or not.
The Exchange proposes to assess the same fees that it currently
charges for Members that subscribe to the similar Simple Order Report.
As such, the Exchange proposes to amend Section 7), Reports, of the Fee
Schedule to provide that Members may purchase the Complex Order Report
on a monthly or annual (12 month) basis. In particular, the Exchange
proposes to assess Members a fee of $4,000 per month or $24,000 per
year for a 12 month subscription to the Complex Order Report. Members
may cancel their subscription at any time. Just as it does for the
Simple Order Report, the Exchange proposes to specify that for mid-
month subscriptions to the Complex Order Report, new subscribers will
be charged for the full calendar month for which they subscribe and
will be provided Complex Order Report data for each trading day of the
calendar month prior to the day on which they subscribed.
The Exchange also proposes to provide a discounted rate of $40,000
per year to Members that purchase 12 month annual subscriptions to both
the Simple and Complex Order Reports (as compared to the 12 month
subscription rate of $24,000 for each report on an individual
subscription basis). The Exchange also proposes to pro-rate the
discounted 12 month subscription fee for Members that seek to add
either their Simple Order Report or the Complex Order Report to an
existing subscription. In particular, the Exchange proposes that for
those Members with an existing 12 month subscription to either the
Simple Order Report or Complex Order Report, but not both, may add a
subscription to the Simple Order Report or Complex Order Report during
their current 12 month subscription. In such case, the fee for the
added report will be pro-rated based on the $40,000 combined rate for
the 12 month subscription discount for the remainder of the
subscriber's current 12 month subscription, and the number of months
remaining in the existing subscription until the Member's renewal date.
Members would then receive the 12 month discount ($40,000 annually) for
subscribing to both reports on the renewal date of their original
subscription. For example, assume ``Member A'' previously subscribed to
the Simple Order Report on September 1, 2021 and paid $24,000 for a 12
month subscription to the Simple Order Report. ``Member A's'' current
subscription expires on August 31, 2022 for the Simple Order Report.
Before ``Member A's'' subscription to the Simple Order Report expires,
``Member A'' decides to subscribe to the Complex Order Report,
beginning March 1, 2022. Rather than being immediately charged $40,000
for the 12 month subscription discount for subscribing to both reports
(``Member A'' already paid $24,000 upfront for the Simple Order Report
12 month subscription), ``Member A'' would only be charged an
additional $8,000 to add the Complex Order Report for the remaining
months of ``Member A's'' current 12 month subscription to the Simple
Order Report. On September 1, 2022, assuming ``Member A'' decided to
keep both reports, ``Member A'' would then be charged the 12 month
discounted rate of $40,000 for both reports for the next year.
The Exchange proposes to determine the pro-rated fee described
above as follows: on the date that ``Member A'' wanted to begin
subscribing to the Complex Order Report (March 1, 2022), there were six
months remaining on ``Member A's'' existing 12 month subscription to
the Simple Order Report (March, April, May, June, July and August). The
added cost would be calculated as ((6 months remaining/12 months total)
* ($40,000 discounted annual subscription for both reports-$24,000 for
annual subscription to each report individually) = $8,000 for remaining
6 months. Beginning September 1, 2022 (the original renewal date for
the Simple Order Report), ``Member A'' would then be charged the
discounted 12 month subscription rate of $40,000, assuming ``Member A''
renews their subscriptions to both the Simple Order Report and the
Complex Order Report.
The Exchange intends to begin to offer the Complex Order Report and
charge the proposed fees on March 1, 2022.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\22\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\23\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and to protect investors and the public
interest, and that it is not designed to permit unfair discrimination
among customers, brokers, or dealers. The Exchange also believes that
its proposal to adopt fees for the Complex Order Report is consistent
with Section 6(b) of the Act \24\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \25\ in particular, in that it
is an equitable allocation of dues, fees and other charges among its
Members and other recipients of Exchange data.
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\22\ 15 U.S.C. 78f(b).
\23\ 15 U.S.C. 78f(b)(5).
\24\ 15 U.S.C. 78f(b).
\25\ 15 U.S.C. 78f(b)(4).
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In adopting Regulation NMS, the Commission granted self-regulatory
organizations (``SROs'') and broker-dealers increased authority and
flexibility to offer new and unique market data to the public. It was
believed that this authority would expand the amount of data available
to consumers, and also spur innovation and competition for the
provision of market data. The Exchange believes that the Report further
broadens the availability of U.S. option market data to investors
consistent with the principles of Regulation NMS. The Complex Order
Report also promotes increased transparency through the dissemination
of the Complex Order Report. Particularly, the Complex Order Report
will benefit investors by facilitating their prompt access to the value
added information that is included in the Complex Order Report. The
Complex Order Report will allow Members to access information regarding
their trading activity that they may utilize to evaluate their own
trading behavior and order interactions.
The Exchange operates in a highly competitive environment. Indeed,
there are currently 16 registered options exchanges that trade options.
Based on publicly available information, no single options exchange has
more than 12-13% of the equity options market share and currently the
Exchange represents only approximately 4.23% of the market share.\26\
The Commission has repeatedly expressed its preference for competition
over regulatory intervention in determining prices, products, and
services in the securities markets. Particularly, in Regulation NMS,
the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \27\ Making similar data
products available to market participants fosters competition in the
marketplace, and
[[Page 14606]]
constrains the ability of exchanges to charge supra-competitive fees.
In the event that a market participant views one exchange's data
product as more attractive than the competition, that market
participant can, and often does, switch between similar products. The
proposed fees are a result of the competitive environment of the U.S.
options industry as the Exchange seeks to adopt fees to attract
purchasers of the recently introduced Complex Order Report.
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\26\ See ``The Market at a Glance,'' (last visited January 11,
2022), available at <a href="https://www.miaxoptions.com/">https://www.miaxoptions.com/</a>.
\27\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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The Exchange believes the proposed fees are reasonable as the
proposed fees are both modest and identical to the fees assessed by the
Exchange for its substantially similar Simple Order Report.\28\ Indeed,
if the Exchange proposed fees that market participants viewed as
excessively high, then the proposed fees would simply serve to reduce
demand for the Exchange's data product, which as noted, is entirely
optional. Other options exchanges are also free to introduce their own
comparable data products with lower prices to better compete with the
Exchange's offering. As such, the Exchange believes that the proposed
fees are reasonable and set at a level to compete with other options
exchanges that may choose to offer similar reports. Moreover, if a
market participant views another exchange's potential report as more
attractive, then such market participant can merely choose not to
purchase the Exchange's Complex Order Report and instead purchase
another exchange's similar data product, which may offer similar data
points, albeit based on that other market's trading activity.
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\28\ See supra note 7.
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The Exchange also believes providing an annual subscription for an
overall lower fee than a monthly subscription is equitable and
reasonable because it would enable the Exchange to gauge long-term
interest in the Complex Order Report. A lower annual subscription fee
would also incentivize Members to subscribe to the Complex Order Report
on a long-term basis, thereby improving the efficiency by which the
Exchange may deliver the Complex Order Report by doing so on a regular
basis over a prolonged and set period of time. The Exchange notes it
provides an identical annual subscription for its Simple Order Report
data and that other exchanges provide annual subscriptions for reports
concerning their data product offerings.\29\
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\29\ Cboe Exchange, Inc. (``Cboe'') assesses a $24,000 annual
fee for an intra-day subscription to Open-Close Data. See <a href="https://datashop.cboe.com/options-summary-subscription">https://datashop.cboe.com/options-summary-subscription</a>.
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The Exchange also believes the proposed fees are reasonable as they
would support the introduction of a new market data product to Members
that are interested in gaining insight into latency in connection with
Complex Orders that failed to execute against a Complex Order resting
on the Exchange's Strategy Book. The Complex Order Report accomplishes
this by providing those Members data to analyze by how much time their
order may have missed an execution against a contra-side order resting
on the Strategy Book. Members may use this data to optimize their
models and trading patterns in an effort to yield better execution
results by calculating by how much time their order may have missed an
execution.
Selling market data, such as the Complex Order Report, is also a
means by which exchanges compete to attract business. To the extent
that the Exchange is successful in attracting subscribers for the
Complex Order Report, it may earn trading revenues and further enhance
the value of its data products. If the market deems the proposed fees
to be unfair or inequitable, firms can diminish or discontinue their
use of the data. The Exchange therefore believes that the proposed fees
for the Complex Order Report reflect the competitive environment and
would be properly assessed on Member users. The Exchange also believes
the proposed fees are equitable and not unfairly discriminatory as the
fees would apply equally to all users who choose to purchase such data.
It is a business decision of each Member that chooses to purchase the
Complex Order Report. The Exchange's proposed fees would not
differentiate between subscribers that purchase the Complex Order
Report and are set at a modest level that would allow any interested
Member to purchase such data based on their business needs.
The Exchange reiterates that the decision as to whether or not to
purchase the Complex Order Report is entirely optional for all
potential subscribers. Indeed, no market participant is required to
purchase the Complex Order Report, and the Exchange is not required to
make the Complex Order Report available to all investors. It is
entirely a business decision of each Member to subscribe to the Complex
Order Report. The Exchange offers the Complex Order Report as a
convenience to Members to provide them with additional information
regarding trading activity on the Exchange on a delayed basis after the
close of regular trading hours. A Member that chooses to subscribe to
the Complex Order Report may discontinue receiving the Complex Order
Report at any time if that Member determines that the information
contained in the Complex Order Report is no longer useful.
The Exchange also believes providing a 12 month discounted fee for
subscribers of both the Simple and Complex Order Reports is equitable
and reasonable because it would enable the Exchange to gauge long-term
interest in both reports. The Exchange believes that a lower annual
combined subscription fee may incentivize Members to subscribe to both
reports on a long-term basis, thereby allowing the Exchange to better
gauge demand for both reports over a longer period of time. Doing so
will enable the Exchange to better predict the future demand for both
reports. This will allow the Exchange to better prepare and adjust
resources for the production and delivery of both reports to Members,
improving the efficiency by which the Exchange may deliver both reports
over a prolonged and set period of time. The Exchange also believes
that it is reasonable, equitable and not unfairly discriminatory to
offer a 12 month discounted fee for Members that subscribe to both
reports because all Members may subscribe to both reports and receive
the discounted rate.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
made the Complex Order Report available in order to keep pace with
changes in the industry and evolving customer needs and demands, and
believes the data product will contribute to robust competition among
national securities exchanges. As a result, the Exchange believes this
proposed rule change permits fair competition among national securities
exchanges.
The Exchange believes the proposed fees would not cause any
unnecessary or inappropriate burden on intermarket competition as other
exchanges are free to introduce their own comparable data product with
lower prices to better compete with the Exchange's offering. The
Exchange operates in a highly competitive environment, and its ability
to price the Complex Order Report is constrained by competition among
exchanges who choose to adopt a similar product. The Exchange must
consider this in its pricing discipline in
[[Page 14607]]
order to compete for the market data. For example, proposing fees that
are excessively higher than fees for potentially similar data products
would simply serve to reduce demand for the Exchange's data product,
which as discussed, market participants are under no obligation to
utilize. In this competitive environment, potential purchasers are free
to choose which, if any, similar product to purchase to satisfy their
need for market information. As a result, the Exchange believes this
proposed rule change permits fair competition among national securities
exchanges.
The Exchange also believes that the proposed fees do not cause any
unnecessary or inappropriate burden on intermarket competition because
the latency information that would be provided in the Complex Order
Report would enhance competition between exchanges that offer complex
order functionality. Members that subscribe to the Complex Order Report
could use the information in the report to recalibrate their models and
trading strategies to improve their overall trading experience on the
Exchange. This may improve the Exchange's overall trading environment
resulting in increased liquidity and order flow on the Exchange. In
response, other exchanges may similarly seek ways to provide latency
related data in an effort to improve their own market quality for
complex orders.
The Exchange does not believe the proposed rule change would cause
any unnecessary or inappropriate burden on intramarket competition.
Particularly, the proposed product and fees apply uniformly to any
purchaser in that the Exchange does not differentiate between
subscribers that purchase the Complex Order Report. The proposed fees
are set at a modest level that would allow any interested Member to
purchase such data based on their business needs.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
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)(ii) of the Act,\30\ and Rule 19b-4(f)(2) \31\ 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 shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.
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\30\ 15 U.S.C. 78s(b)(3)(A)(ii).
\31\ 17 CFR 240.19b-4(f)(2).
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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#592b2c353c743a3634343c372d2a192a3c3a773e362f"><span class="__cf_email__" data-cfemail="80f2f5ece5ade3efedede5eef4f3c0f3e5e3aee7eff6">[email protected]</span></a>. Please include
File Number SR-EMERALD-2022-08 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-EMERALD-2022-08. 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-EMERALD-2022-08, and should be submitted
on or before April 5, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
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\32\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-05374 Filed 3-14-22; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on March 15, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.