Notice2024-18793
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Fees for a Data Product Known as the Open-Close Report
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
August 22, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 163 (Thursday, August 22, 2024)</title>
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[Federal Register Volume 89, Number 163 (Thursday, August 22, 2024)]
[Notices]
[Pages 68010-68014]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-18793]
[[Page 68010]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100751; File No. SR-SAPPHIRE-2024-09]
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt
Fees for a Data Product Known as the Open-Close Report
August 16, 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 August 6, 2024, MIAX Sapphire, LLC (``MIAX Sapphire'' or
``Exchange'') filed with the Securities and Exchange Commission
(``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
The Exchange proposes to amend the MIAX Sapphire Options Exchange
Fee Schedule (``Fee Schedule'') to adopt fees for a data product known
as the Open-Close Report.\3\
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\3\ See Exchange Rule 531(d)(1).
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While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative on August 12, 2024.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings">https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings</a>, at the Exchange'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 currently plans to offer a data product known as the
Open-Close Report, which will be available for purchase to Exchange
Members \4\ and non-Members.\5\ The Exchange now proposes to adopt fees
for the Open-Close Report. The Open-Close Report is described under
Exchange Rule 531(d)(1).
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\4\ The term ``Member'' means an individual or organization that
is registered with the Exchange pursuant to Chapter II of these
Rules for purposes of trading on the Exchange as an ``Electronic
Exchange Member'' or ``Market Maker.'' Members are deemed
``members'' under the Exchange Act. See Exchange Rule 100.
\5\ See Securities Exchange Act Release No. 100539 (July 15,
2024) (File No. 10-240) (In the Matter of the Application of MIAX
Sapphire, LLC for Registration as a National Securities Exchange;
Findings, Opinion, and Order of the Commission).
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By way of background, the Exchange plans to offer two versions of
the Open-Close Report, an End-of-Day summary and Intra-Day report.\6\
Members and non-Members may request, on an ad hoc basis, historical
End-of-Day and/or Intra-Day Open-Close Report data. An ad hoc request
may be for any number of months beginning with the month in which the
Exchange first made the Open-Close Report available.
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\6\ The Intra-Day Open-Close Report provides similar information
to that of End-of-Day Open-Close Report, but will be 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.
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The Exchange proposes to establish Section 6) of the Fee Schedule,
titled ``Market Data Fees.'' The Exchange proposes that Sections 6)a)-
b) will be marked as ``Reserved'' for other market data fees that the
Exchange plans to establish. Proposed Section 6)c) will be titled
``Open-Close Report'' and provide the fees described below.
End-of-Day Subscription
The Exchange proposes to assess a fee of $600 per month for
subscribing to the End-of-Day summary Open-Close Report. The End-of-Day
summary is a volume summary of trading activity on the Exchange at the
option level by origin (Priority Customer, Non-Priority Customer, Firm,
Broker-Dealer, and Market Maker \7\), side of the market (buy or sell),
contract volume, and transaction type (opening or closing). The
Priority Customer, Non-Priority Customer, Firm, Broker-Dealer, and
Market Maker volume is further broken down into trade size buckets
(less than 100 contracts, 100-199 contracts, greater than 199
contracts). The Open-Close Report data is proprietary Exchange trade
data and does not include trade data from any other exchange. It is a
historical data product and not a real-time data feed. The Exchange
notes that its affiliated markets offer similar data products that may
be purchased on a monthly basis for the same prices as proposed
herein.\8\ Further, other exchanges provide similar data products that
may be purchased on a monthly basis and are similarly priced.\9\
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\7\ See Exchange Rule 100.
\8\ See Miami International Securities Exchange, LLC (``MIAX'')
Fee Schedule, Section 6)e); MIAX PEARL, LLC (``MIAX Pearl'') Options
Fee Schedule, Section 6)d); and MIAX Emerald, LLC (``MIAX Emerald'')
Fee Schedule, Section 6)e).
\9\ See Nasdaq PHLX, LLC (``PHLX'') Options Pricing Schedule,
Section 10; The Nasdaq Stock Market, LLC (``Nasdaq'') Options
Pricing Schedule, Section 4; Nasdaq ISE, LLC (``ISE'') Options
Pricing Schedule, Section 10; Nasdaq GEMX, LLC (``GEMX'') Options
Pricing Schedule, Section 7; Cboe EDGX Exchange, Inc. (``EDGX'')
Options Fee Schedule, Cboe LiveVol, LLC Market Data Fees Section;
and Cboe BZX Exchange, Inc. (``BZX'') Options Fee Schedule, Cboe
LiveVol, LLC Market Data Fees Section.
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Intra-Day Subscription
The Exchange proposes to assess a monthly fee of $2,000 for
subscribing to the Intra-Day Open-Close Report. The Exchange also
proposes that subscribers who purchase an Intra-Day subscription may
request an End-of-Day subscription for no additional charge. The Intra-
Day Open-Close Report provides similar information to the End-of-Day
summary Open-Close Report but will be 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. For example, subscribers to the Intra-Day Open-Close Report
receive the first calculation of intra-day data by no later than 9:45
a.m. ET, which represents data captured from 9:30 a.m. to 9:40 a.m.
Subscribers receive the next update by 9:55 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 represents the aggregate data
captured from the current ``snapshot'' and all previous ``snapshots.''
The Intra-Day Open-Close Report data provides a volume summary of
trading activity on the Exchange at the option level by origin
(Priority Customer, Non-Priority Customer, Firm, Broker-Dealer, and
Market Maker), side of the market (buy or sell), and transaction type
(opening or closing). All volume is further broken down into
[[Page 68011]]
trade size buckets (less than 100 contracts, 100-199 contracts, greater
than 199 contracts). The Exchange notes that its affiliated markets
offer similar Intra-Day Open-Close Reports for their market data, which
may be purchased on a monthly basis for the same price as proposed
herein.\10\ Further, other exchanges provide similar data products that
may be purchased on a monthly basis and are similarly priced.\11\
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\10\ See supra note 8.
\11\ See supra note 9.
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End-of-Day Ad-Hoc Request (Historical Data)
The Exchange proposes to provide Members and non-Members who
request on an ad hoc basis historical End-of-Day Open-Close Report data
for a fee of $500 per request per month. An ad hoc request may be for
any number of months beginning with the month in which the Exchange
first made the Open-Close Report available. The Exchange notes that its
affiliated markets offer similar historical End-of-Day Open-Close
Report data, which may also be purchased on a per request per month
basis for the same price as proposed herein.\12\ Further, other
exchanges that provide similar data products allow for ad hoc requests
of their End-of-Day data for a fee \13\ and, like the Exchange proposes
herein, allow for ad hoc requests back to a certain month.\14\
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\12\ See supra note 8.
\13\ See supra note 9.
\14\ See EDGX Options Fee Schedule, Cboe LiveVol, LLC Market
Data Fees Section, and BZX Options Fee Schedule, Cboe LiveVol, LLC
Market Data Fees Section. (Both EDGX and BZX allow for ad-hoc
requests to be for any number of months beginning with January 2018
for which the data is available.)
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Intra-Day Ad-Hoc Request (Historical Data)
The Exchange proposes to provide Members and non-Members who
request on an ad hoc basis historical Intra-Day Open-Close Report data
for a fee of $1,000 per request per month. The Exchange also proposes
that subscribers who purchase an Intra-Day Ad-hoc Request (historical
data) may submit an End-of-Day Ad-hoc Request (historical data) for the
same date or date range for no additional charge. As it specifies for
historical End-of-Day Open-Close Report data, an ad hoc request may be
for any number of months beginning with the month in which the Exchange
first made the Open-Close Report available. Similarly, the Exchange
provides historical Intra-Day Open-Close Report data for the same time
period. The Exchange notes that its affiliated markets offer similar
historical Intra-Day Open-Close Report data, which may also be
purchased on a per request per month basis for the same price as
proposed herein.\15\ Further, other exchanges that provide similar data
products allow for ad hoc requests of their Intra-Day data for a
fee.\16\
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\15\ See supra note 8.
\16\ See supra note 14.
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Academic Discounts for Ad Hoc Historical End-of-Day and Intra-Day Open-
Close Report Data
The Exchange also proposes to adopt an academic discount for ad hoc
requests of historical months of these data sets. Specifically, the
Exchange proposes to charge qualifying academic purchasers per request
$1,500 per year for the first year (instead of $6,000 per year) and
$125 per month thereafter for historical End-of-Day Open-Close Report
data covering all of the Exchange's securities. Further, the Exchange
proposes to charge qualifying academic purchasers per request $3,000
per year for the first year (instead of $12,000 per year) and $250 per
month thereafter for historical Intra-Day Open-Close Report data
covering all of the Exchange's securities.
The Exchange believes that academic institutions and researchers
provide a valuable service for the Exchange in studying and promoting
the options markets. Though academic institutions and researchers have
need for granular options data sets, they do not trade upon the data
for which they subscribe. The Exchange believes the proposed reduced
fees for qualifying academic purchasers of historical End-of-Day Open-
Close Report data and Intra-Day Open-Close Report data will encourage
and promote academic studies of its market data by academic
institutions. In order to qualify for the academic pricing, an academic
purchaser must: (1) be an accredited academic institution or member of
the faculty or staff of such an institution, and (2) use the data in
independent academic research, academic journals and other
publications, teaching and classroom use, or for other bona fide
educational purposes (i.e., academic use). Furthermore, use of the data
must be limited to faculty and students of an accredited academic
institution, and any commercial or profit-seeking usage is excluded.
Academic pricing will not be provided to any purchaser whose research
is funded by a securities industry participant. Academic users
interested in qualifying will be required to submit a brief
application.\17\ Exchange Business Development personnel will have the
discretion to review and approve such applications and request
additional information when it deems necessary.
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\17\ The Exchange notes that it will have an academic user
application available on the Exchange's website.
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The Exchange notes that its affiliates--MIAX, MIAX Pearl Options,
and MIAX Emerald \18\--as well as competing exchanges currently offer
academic discounts for similar data sets on those exchanges.\19\ The
Exchange recognizes the high value of academic research and educational
instruction and publications, and believes that the proposed academic
discounts for historical End-of-Day Open-Close Report data and Intra-
Day Open-Close Report data will encourage the promotion of academic
research of the options industry, which will serve to benefit all
market participants while also opening up a new potential user base
among students. Finally, the Exchange notes that academic purchasers'
ad hoc requests of historical End-of-Day Open-Close and Intra-Day Open-
Close Report data would be educational in use and purpose, and not
vocational.
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\18\ See supra note 8.
\19\ See supra note 9 (ISE offers academic discounts for Open/
Close Trade Profile End of Day and Open/Close Trade Profile
Intraday; EDGX and BZX also offer academic discounts for Open-Close
Data).
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The Exchange anticipates a wide variety of market participants to
purchase the Open-Close Report, including, but not limited to,
individual customers, buy-side investors, and investment banks. The
Exchange believes the Open-Close Report may also provide helpful
trading information regarding investor sentiment that may allow market
participants to make better trading decisions throughout the day and
may be used to create and test trading models and analytical strategies
and provides comprehensive insight into trading on the Exchange. For
example, Intra-Day Open-Close Report data may allow a market
participant to identify new interest or possible risks throughout the
trading day, while End-of-Day Open-Close Report data may allow a market
participant to identify fading interests in a security. The Open-Close
Report is a completely voluntary product in that the Exchange is not
required by any rule or regulation to make this data available and that
potential subscribers may purchase it only if they voluntarily choose
to do so. The Exchange notes that its affiliates--MIAX, MIAX Pearl
Options, and MIAX
[[Page 68012]]
Emerald--as well as competing exchanges offer similar data
products.\20\
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\20\ See supra notes 8 and 9.
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The Exchange proposes to waive the Open-Close Report fees for the
Initial Waiver Period.\21\ Even though the Exchange proposes to waive
these particular fees during the Initial Waiver Period, the Exchange
believes that it is appropriate to provide market participants with the
overall structure of the fees by outlining the structure and amounts in
the Fee Schedule so that there is general awareness that the Exchange
intends to assess such fees upon expiration of the defined term of the
Initial Waiver Period.
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\21\ The term ``Initial Waiver Period'' means, for each
applicable fee, the period of time from the initial effective date
of the MIAX Sapphire Fee Schedule plus an additional six (6) full
calendar months after the completion of the partial month of the
Exchange launch. See the Definitions Section of the Fee Schedule.
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The Exchange also proposes to specify that for mid-month
subscriptions, new subscribers will be charged for the full calendar
month for which they subscribe and will be provided Open-Close Report
data for each trading day of the calendar month prior to the day on
which they subscribed. The proposed fees will apply both to Members and
non-Members. The Exchange notes that other exchanges provide similar
data products that may be purchased on a monthly basis and are
similarly priced.\22\
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\22\ See supra note 9.
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The Exchange intends to begin to offer the Open-Close Report on
August 12, 2024.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\23\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\24\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
promote just and equitable principles of trade, remove impediments to
and perfect the mechanism of a free and open market and a national
market system, and protect investors and the public interest, and is
not designed to permit unfair discrimination among customers, brokers,
or dealers. The Exchange also believes that its proposal to adopt fees
for the reports is consistent with Section 6(b) of the Act \25\ in
general, and furthers the objectives of Section 6(b)(4) of the Act \26\
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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\23\ 15 U.S.C. 78f(b).
\24\ 15 U.S.C. 78f(b)(5).
\25\ 15 U.S.C. 78f(b).
\26\ 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. Particularly, the Open-Close Report further
broadens the availability of U.S. option market data to investors
consistent with the principles of Regulation NMS. The data product also
promotes increased transparency through the dissemination of the Open-
Close Report. Particularly, information regarding opening and closing
activity across different option series during the trading day may
indicate investor sentiment, which may allow market participants to
make better informed trading decisions throughout the day. Subscribers
to the data may also be able to enhance their ability to analyze option
trade and volume data and create and test trading models and analytical
strategies. The Exchange believes the Open-Close Report provides a
valuable tool that subscribers can use to gain comprehensive insight
into the trading activity in a particular series, but also emphasizes
such data is not necessary for trading. Moreover, other exchanges offer
similar data products.\27\
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\27\ See supra note 9.
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The Exchange operates in a highly competitive environment. Indeed,
there are currently 17 registered options exchanges that trade options.
For the month of June 2024, based on publicly available information, no
single options exchange had more than approximately 14-15% of the
equity options market share.\28\ 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.'' \29\ Making similar data products available to market
participants fosters competition in the marketplace, and 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 Open-Close Report.
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\28\ See the ``Market Share'' section of the Exchange's website,
available at <a href="https://www.miaxglobal.com/">https://www.miaxglobal.com/</a>.
\29\ 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 identical to the fees charged for the Open-Close
Report by the Exchange's affiliates, MIAX, MIAX Pearl Options, and MIAX
Emerald.\30\ In addition, the Exchange believes the proposed fees are
both modest and similar to, or even lower than, the fees assessed by
other exchanges that provide similar data products.\31\ Indeed,
proposing fees that are excessively higher than established fees for
similar data products would simply serve to reduce demand for the
Exchange's data products, which as noted, is entirely optional. Like
the Exchange's Open-Close Report, other exchanges offer similar data
products that each provide insight into trading on those markets and
may likewise aid in assessing investor sentiment. Although each of
these similar Open-Close Report data products provide only proprietary
trade data and not trade data from other exchanges, it is possible
investors are still able to gauge overall investor sentiment across
different option series based on open and closing interest on any one
exchange.\32\ Similarly, market participants may be able to analyze
option trade and volume data, and create and test trading models and
analytical strategies using only Open-Close Report data relating to
trading activity on one or more of the other markets that provide
similar data products. As such, if a market participant views another
exchange's Open-Close Report data as more attractive than the
Exchange's Open-Close Report, then such market participant can merely
choose not to purchase the Exchange's Open-Close Report and instead
purchase another exchange's Open-Close Report data product, which
offers similar data points, albeit based on that market's trading
activity.
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\30\ See supra note 8.
\31\ See supra note 9.
\32\ The Exchange notes that its Open-Close Report data product
does not include data on any exclusive, singly-listed option series.
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The Exchange also believes the proposed fees are reasonable as they
[[Page 68013]]
would support the introduction of a new market data product that is
designed to aid investors by providing insight into trading on the
Exchange. The recently adopted Open-Close Report would provide options
market participants with valuable information about opening and closing
transactions executed on the Exchange throughout the trading day,
similar to other trade data products offered by competing options
exchanges. In turn, this data would assist market participants in
gauging investor sentiment and trading activity, resulting in
potentially better informed trading decisions. As noted above, users
may also use such data to create and test trading models and analytical
strategies.
The Exchange believes that the discount for qualifying academic
purchasers of the ad hoc historical End-of-Day Open-Close and Intra-Day
Open-Close Report data is reasonable because academic users are not
able to monetize access to the data as they do not trade on the data
set. The Exchange believes the proposed discount will allow for more
academic institutions and faculty members to purchase historical End-
of-Day Open-Close and Intra-Day Open-Close Report data, and, as a
result, promote research and studies of the options industry to the
benefit of all market participants. The Exchange believes that the
proposed discount is equitable and not unfairly discriminatory because
it will apply equally to all academic users that submit applications
and meet the accredited academic institution or faculty member and
academic use criteria. As stated above, qualified academic users will
subscribe to the data set for educational use and purposes and are not
permitted to use the data for commercial or monetizing purposes, nor
can qualify if they are funded by an industry participant. As a result,
the Exchange believes the proposed discount is equitable and not
unfairly discriminatory because it maintains equal treatment for all
industry participants or other subscribers that use the data for
vocational, commercial or other for-profit purposes.
Selling market data, such as the Open-Close 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 Open-Close
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
and/or avail themselves of similar products offered by other
exchanges.\33\ The Exchange therefore believes that the proposed fees
for the Open-Close Report reflect the competitive environment and would
be properly assessed on Member and non-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. The Exchange's proposed fees would not
differentiate between subscribers that purchase the Open-Close Report
and are set at a modest level that would allow any interested Member or
non-Member to purchase such data based on their business needs.
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\33\ See supra note 9.
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As noted above, the Exchange anticipates a wide variety of market
participants to purchase the Open-Close Report, including but not
limited to individual customers, buy-side investors and investment
banks. The Exchange reiterates that the decision as to whether or not
to purchase the Open-Close Report is entirely optional for all
potential subscribers. Indeed, no market participant is required to
purchase the Open-Close Report, and the Exchange is not required to
make the Open-Close Report available to all investors. Rather, the
Exchange is voluntarily making the Open-Close Report available, and
market participants may choose to receive (and pay for) this data based
on their own business needs. Potential purchasers may request the data
at any time if they believe it to be valuable or may decline to
purchase such data.
The Exchange proposes to waive the fees for the proposed Open-Close
Reports for the Initial Waiver Period in order to encourage market
participants to subscribe to the reports. The Exchange believes it is
reasonable to waive the fees for the reports for the Initial Waiver
Period in order for market participants and academic users to determine
whether they realize value from the reports prior to the expiration of
the Initial Waiver Period. The believes that it is reasonable to
provide market participants with the overall structure of the fees by
outlining the structure and amounts in the Fee Schedule so that there
is general awareness that the Exchange intends to assess such fees upon
expiration of the defined term of the Initial Waiver Period. The
Exchange believes the proposed fee waiver is equitable and not unfairly
discriminatory because all subscribers to the Open-Close Reports will
receive the fee waiver throughout the defined period of time of the
Initial Waiver Period.
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. Rather, the
Exchange believes that the proposal will promote competition by
permitting the Exchange to sell a data product similar to those offered
by other competitor options exchanges.\34\ The Exchange will make Open-
Close Report data available in order to keep pace with changes in the
industry and evolving customer needs, and believes the data product
will contribute to robust competition among national securities
exchanges. At least six other U.S. options exchanges offer a market
data product that is substantially similar to the Open-Close
Report.\35\ As a result, the Exchange believes this proposed rule
change permits fair competition among national securities exchanges.
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\34\ Id.
\35\ See supra notes 8 and 9.
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Furthermore, the Exchange operates in a highly competitive
environment, and its ability to price the Open-Close Report is
constrained by competition among exchanges that offer similar data
products to their customers. As discussed, there are currently a number
of similar products available to market participants and investors. At
least eight other U.S. options exchanges offer a market data product
that is substantially similar to the Open-Close Report, which the
Exchange must consider in its pricing discipline in order to compete
for the market data.\36\ For example, proposing fees that are
excessively higher than established fees for 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. While the proposed academic discount is a fee reduction that
applies only to qualifying academic purchasers, the Exchange believes
that academic purchasers' research and publications as a result of
access to historical market data benefits all market participants.
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\36\ See id.
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The Exchange also does not believe the proposed fees would cause
any unnecessary or inappropriate burden on intermarket competition as
other
[[Page 68014]]
exchanges are free to introduce their own comparable data product and
lower their prices to better compete with the Exchange's offering. 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 it does not differentiate between subscribers that
purchase the Open-Close Report, other than for qualifying academic
users. The proposed fees are set at a modest level that would allow any
interested Member or non-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,\37\ and Rule 19b-4(f)(2) \38\ 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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\37\ 15 U.S.C. 78s(b)(3)(A)(ii).
\38\ 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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#6a181f060f47090507070f041e192a190f09440d051c"><span class="__cf_email__" data-cfemail="8dfff8e1e8a0eee2e0e0e8e3f9fecdfee8eea3eae2fb">[email protected]</span></a>. Please include
file number SR-SAPPHIRE-2024-09 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-SAPPHIRE-2024-09. 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="https://www.sec.gov/rules/sro.shtml">https://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
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-SAPPHIRE-2024-09 and should
be submitted on or before September 12, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\39\
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\39\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-18793 Filed 8-21-24; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on August 22, 2024.
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.