Notice2025-09184
Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule To Provide a Temporary Discount on Historical Open-Close Data
Primary source
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Published
May 22, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 98 (Thursday, May 22, 2025)</title>
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[Federal Register Volume 90, Number 98 (Thursday, May 22, 2025)]
[Notices]
[Pages 21962-21965]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-09184]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103058; File No. SR-C2-2025-009]
Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fee Schedule To Provide a Temporary Discount on Historical Open-
Close Data
May 16, 2025.
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 May 6, 2025, Cboe C2 Exchange, Inc. (``C2'' 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 proposes to update its Fee Schedule to provide a
temporary 20% discount on fees assessed to Exchange Trading Permit
Holders and non-Trading Permit Holders that purchase $20,000 or more of
ad hoc purchases of historical Open-Close Data, effective April 23,
2025 through June 30, 2025. 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://markets.cboe.com/us/options/regulation/rule_filings/ctwo/">http://markets.cboe.com/us/options/regulation/rule_filings/ctwo/</a>), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
[[Page 21963]]
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 update its Fee Schedule to provide a
temporary 20% discount on fees assessed to Exchange Trading Permit
Holders \3\ and non-Trading Permit Holders for any single purchase of
End-of-Day Ad-hoc Request (historical data) and/or Intraday Ad-hoc
Request (historical data) that meets the minimum purchase requirement
of at least $20,000 of historical Open-Close Data, effective April 23,
2025 through June 30, 2025.\4\
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\3\ See Tenth Amended and Restated Bylaws of Cboe Exchange, Inc.
The term ``Trading Permit Holder'' means any individual,
corporation, partnership, limited liability company or other entity
authorized by the Rules that holds a Trading Permit. If a Trading
Permit Holder is an individual, the Trading Permit Holder may also
be referred to as an ``individual Trading Permit Holder.'' If a
Trading Permit Holder is not an individual, the Trading Permit
Holder may also be referred to as a ``TPH organization.'' A Trading
Permit Holder is a ``member'' solely for purposes of the Act;
however, one's status as a Trading Permit Holder does not confer on
that Person any ownership interest in the Exchange.
\4\ The Exchange initially submitted the proposed rule change on
April 23, 2025 (SR-C2-2025-008). On May 6, 2025, the Exchange
withdrew that filing and submitted this filing.
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By way of background, the Exchange currently offers End-of-Day
(``EOD'') and Intraday Open-Close Data (collectively, ``Open-Close
Data''). EOD Open-Close Data 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 EOD Open-Close Data is proprietary
Exchange 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 Exchange also offers Intraday Open-Close Data, which provides
similar information to that of EOD 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.\5\ 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
proprietary Exchange trade data and does not include trade data from
any other exchange. All Open-Close Data products are completely
voluntary products, in that the Exchange is not required by any rule or
regulation to make this data available and that potential customers may
purchase it on an ad-hoc basis only if they voluntarily choose to do
so.
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\5\ 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 Open-
Close Data available for purchase to Trading Permit Holders or non-
Trading Permit Holders on the LiveVol DataShop website
(<a href="http://datashop.cboe.com">datashop.cboe.com</a>). Customers may currently purchase Open-Close Data
on a subscription basis (monthly or annually) or by ad hoc request for
a specified month (historical file, e.g., request for Intraday Open-
Close Data for month of June 2023 or End-of-Day Open-Close Data for
month of June 2023). An ad-hoc request can be for any number of months
for which the data is available.
Open-Close Data is subject to direct competition from similar end-
of-day and intraday options trading summaries offered by several other
options exchanges.\6\ All of these exchanges offer essentially the same
end-of-day and intraday options trading summary information.
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\6\ These substitute products are: Nasdaq PHLX Options Trade
Outline, Nasdaq Options Trade Outline, ISE Profile, GEMX Trade
Profile data; open-close data from Cboe Options, EDGX, and BZX; Open
Close Reports from MIAX Options, Pearl, and Emerald; and NYSE
Options Open-Close Volume Summary.
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The Exchange proposes to provide a temporary pricing incentive
program in which Trading Permit Holders and non-Trading Permit Holders
that purchase historical Open-Close Data will receive a percentage fee
discount where specific purchase thresholds are met. Specifically, the
Exchange proposes to provide a temporary 20% discount for ad-hoc
purchases of historical Open-Close Data of $20,000 or more.\7\ The
proposed program will apply to all market participants irrespective of
whether the market participant is a new or current purchaser; however,
the discount cannot be combined with any other discounts offered by the
Exchange, including the academic discount provided for Qualifying
Academic Purchasers of historical Open-Close Data. The Exchange intends
to introduce the discount program beginning April 23, 2025, with the
program remaining in effect through June 30, 2025. The Exchange also
notes that it previously adopted the same temporary discount program
and proposes to update the Fees Schedule with the new program dates
accordingly.\8\
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\7\ The discount will apply on an order-by-order basis. To
qualify for the discount, an order must contain End-of-Day Ad-hoc
Requests (historical data) and/or Intraday Ad-hoc Requests
(historical data) and must total $20,000 or more; the Exchange will
not aggregate purchases made throughout a billing cycle for purposes
of the incentive program. The discount will apply to the total
purchase price, once the $20,000 minimum purchase is satisfied (for
example, a qualifying order of $25,000 would be discounted to
$20,000, i.e. receive a 20% discount of $5,000).
\8\ See Securities Exchange Act Release No. 99025 (November 28,
2023), 88 FR 84007 (December 1, 2023) (SR-C2-2023-023); Securities
Exchange Act Release No. 100427 (June 25, 2024), 89 FR 54552 (July
1, 2024) (SR-C2-2024-012); and Securities Exchange Act Release No.
101477 (October 25, 2024), 89 FR 86885 (October 31, 2024) (SR-C2-
2024-017).
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\9\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \10\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and
[[Page 21964]]
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.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \11\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ Id.
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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 the proposed fee
changes will further broaden the availability of U.S. option market
data to investors consistent with the principles of Regulation NMS.
Open-Close Data is designed to help investors understand underlying
market trends to improve the quality of investment decisions. Indeed,
purchasers of the data may 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 Open-Close Data provides a
valuable tool that purchasers can use to gain comprehensive insight
into the trading activity in a particular series, but also emphasizes
such data is not necessary for trading and as noted above, is entirely
optional. Moreover, several other exchanges offer a similar data
product which offer same type of data content through end-of-day or
intraday reports.\12\
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\12\ See supra note 6.
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The Exchange also operates in a highly competitive environment.
Indeed, there are currently 18 registered options exchanges that trade
options. Based on publicly available information, no single options
exchange has more than 17% of the market share.\13\ 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.'' \14\ Making similar data products available to
market participants fosters competition in the marketplace, and
constrains the ability of exchanges to charge supracompetitive fees. In
the event that a market participant views one exchange's data product
as more or less attractive than the competition they can and do switch
between similar products. The proposed fees are a result of the
competitive environment, as the Exchange seeks to adopt fees to attract
purchasers of historical Open-Close Data.
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\13\ See Cboe Global Markets U.S. Options Market Month-to-Date
Volume Summary (April 21, 2025), available at <a href="https://markets.cboe.com/us/options/market_statistics/">https://markets.cboe.com/us/options/market_statistics/</a>.
\14\ 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 that the proposed incentive program for any
Trading Permit Holder or non-Trading Permit Holder who purchases
historical Open-Close Data is reasonable because it will give
purchasers the ability to use and test the historical Open-Close Data
at a discounted rate, prior to purchasing additional months or a
monthly subscription, and will therefore encourage and promote users to
purchase the historical Open-Close Data. Further, the proposed discount
is intended to promote increased use of the Exchange's historical Open-
Close Data by defraying some of the costs a purchaser would ordinarily
have to expend before using the data product. The Exchange believes
that the proposed discount is equitable and not unfairly discriminatory
because it will apply equally to all Trading Permit Holders and non-
Trading Permit Holders who purchase historical Open-Close Data. Lastly,
the purchase of this data product is discretionary and not compulsory.
Indeed, no market participant is required to purchase the historical
Open-Close Data, and the Exchange is not required to make the
historical Open-Close Data available to all investors. Potential
purchasers may request the data at any time if they believe it to be
valuable or may decline to purchase such data. As noted above, the
Exchange has previously adopted this discount program at other
times.\15\
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\15\ See supra note 8.
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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 operates in a
highly competitive environment in which the Exchange must continually
adjust its fees to remain competitive. Because competitors are free to
modify their own fees in response, including the adoption of similar
discounts to those fees, the Exchange believes that the degree to which
fee changes (including discounts and rebates) in this market may impose
any burden on competition is extremely limited. As discussed above,
Open-Close Data is subject to direct competition from several other
options exchanges that offer substitutes to Open-Close Data. Moreover,
purchase of Open-Close Data is optional. It is designed to help
investors understand underlying market trends to improve the quality of
investment decisions but is not necessary to execute a trade. The
Exchange believes that this does not impose any burden on intramarket
competition as the benefit is given to any purchasers who meet the
minimum purchase amount.
The proposed rule changes are grounded in the Exchange's efforts to
compete more effectively. 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. Further, the Exchange believes
that these changes will not cause any unnecessary or inappropriate
burden on intermarket competition, as the proposed incentive program
applies uniformly to any purchaser of historical Open-Close Data.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \16\ and paragraph (f) of Rule 19b-4 \17\
thereunder. At any time within
[[Page 21965]]
60 days of the filing of the proposed rule change, the Commission
summarily may temporarily suspend such rule change if it appears to the
Commission that such action is necessary or appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act. If the Commission takes such action, the
Commission will institute proceedings to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 17 CFR 240.19b-4(f).
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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#5b292e373e76383436363e352f281b283e38753c342d"><span class="__cf_email__" data-cfemail="aedcdbc2cb83cdc1c3c3cbc0daddeeddcbcd80c9c1d8">[email protected]</span></a>. Please include
file number SR-C2-2025-009 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-C2-2025-009. 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-C2-2025-009 and should be
submitted on or before June 12, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2025-09184 Filed 5-21-25; 8:45 am]
BILLING CODE 8011-01-P
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