Notice2025-13374
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Sapphire Fee Schedule To Adopt New Fee Categories for the Exchange's Proprietary Market Data Feeds
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
July 17, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 135 (Thursday, July 17, 2025)</title>
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[Federal Register Volume 90, Number 135 (Thursday, July 17, 2025)]
[Notices]
[Pages 33449-33459]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-13374]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103451; File No. SR-SAPPHIRE-2025-26]
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the MIAX Sapphire Fee Schedule To Adopt New Fee Categories for the
Exchange's Proprietary Market Data Feeds
July 14, 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 June 30, 2025, MIAX Sapphire, LLC (``MIAX Sapphire'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a 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 Sapphire
Options Exchange Fee Schedule (the ``Fee Schedule'') to among other
things, adopt new fee categories for the Exchange's proprietary market
data feeds: (i) MIAX Sapphire Top of Market (``ToM'') data feed; (ii)
MIAX Sapphire Complex Top of Market (``cToM'') data feed; and (iii)
MIAX Sapphire Liquidity Feed (``SLF'') (collectively, the ``market data
feeds'').
The text of the proposed rule change is available on the Exchange's
website at
[[Page 33450]]
<a href="https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings">https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings</a>, at MIAX Sapphire'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 offers three standard proprietary market data
products, ToM, cToM, and SLF. The ToM data feed is a data feed that
contains the Exchange's best bid and offer, with aggregate size, and
last sale information, based on order and quoting interest on the
Exchange.\3\ The ToM data feed includes data that is identical to the
data sent to the processor for the Options Price Reporting Authority
(``OPRA''). The data for ToM and OPRA leave the System \4\ at the same
time, as required under Section 5.2(c)(iii)(B) of the Limited Liability
Company Agreement of the Options Price Reporting Authority LLC (the
``OPRA Plan''), which prohibits the dissemination of proprietary
information on any more timely basis than the same information is
furnished to the OPRA system for inclusion in OPRA's consolidated
dissemination of options information. The cToM data feed includes the
same types of information as ToM, but for Complex Orders \5\ on the
Exchange's Strategy Book.\6\ This information includes the Exchange's
best bid and offer for a complex strategy,\7\ with aggregate size,
based on displayable orders in the complex strategy. The cToM data feed
also provides subscribers with the following information: (i) the
identification of the complex strategies currently trading on the
Exchange; (ii) complex strategy last sale information; and (iii) the
status of securities underlying the complex strategy (e.g., halted,
open, or resumed). The SLF data feed provides market participants with
a direct data feed that allows subscribers to receive real-time updates
of options orders, products traded on MIAX Sapphire, MIAX Sapphire
System status, and MIAX Sapphire underlying trading status.\8\ When an
order is received or an order state changes, published order
information will be transmitted over SLF, including time stamp, action,
product ID, order ID, order side, order type, order price, original
order size, open order size, time in force, origin, open or close, and
route instruction. For complex orders, complex strategy definition
notification and complex order notice are also included. Subscribers to
the SLF will get a list of all options symbols and strategies that will
be traded and sourced on that feed at the start of every session.
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\3\ See Securities Exchange Act Release No. 100588 (July 25,
2024), 89 FR 61554 (July 31, 2024) (SR-SAPPHIRE-2024-01).
\4\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
\5\ In sum, a ``Complex Order'' is ``any order involving the
concurrent purchase and/or sale of two or more different options in
the same underlying security (the `legs' or `components' of the
complex order), for the same account . . . .'' See Exchange Rule
518(a)(5).
\6\ The ``Strategy Book'' is the Exchange's electronic book of
complex orders and complex quotes. See Exchange Rule 518(a)(19).
\7\ The term ``complex strategy'' means a particular combination
of components and their ratios to one another. New complex
strategies can be created as the result of the receipt of a complex
order or by the Exchange for a complex strategy that is not
currently in the System. The Exchange may limit the number of new
complex strategies that may be in the System at a particular time
and will communicate this limitation to Members via Regulatory
Circular. See Exchange Rule 518(a)(6).
\8\ The Exchange established the Definitions section of the Fee
Schedule in a separate rule filing. See Securities Exchange Act
Release No. 100683 (August 9, 2024), 89 FR 66467 (August 15, 2024)
(SR-SAPPHIRE-2024-13).
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Section 6 of the Fee Schedule, Market Data Fees, provides fees for
the ToM, cToM, and SLF data feeds. The Exchange waived such fees during
an Initial Waiver Period,\9\ which expired on March 1, 2025.\10\ At the
expiration of the Initial Waiver Period, the Exchange began to charge
monthly fees to both Internal and External Distributors (proposed
definitions below) of the ToM, cToM, and SLF data feeds. Specifically,
the Exchange started to charge Internal Distributors a monthly fee of
$1,200.00 for the ToM and cToM data feeds, and $3,000.00 for the SLF
data feed. The Exchange also started to charge External Distributors a
monthly fee of $2,000.00 for the ToM and cToM data feeds, and $3,500.00
for the SLF data feed.
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\9\ 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.
\10\ See Securities Exchange Act Release No. 102321 (February 3,
2025), 90 FR 9173 (February 7, 2025) (SR-SAPPHIRE-2025-04).
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The Exchange now proposes to amend the Fee Schedule to, among other
things, adopt new fee categories for the Exchange's proprietary market
data feeds. The primary purpose of this proposal is to adopt per User
(defined below) fees as well as fees for Non-Display Usage (also
defined below). The Exchange also proposes to add a ``Market Data
Definitions'' section to Section 6 of the Fee Schedule as well as
modify how mid-month subscriptions for Distributors are to be handled.
The Exchange believes that adopting the same fee structure as its
affiliated exchanges would reduce administrative burdens on market data
subscribers that also currently subscribe to market data feeds from the
Exchange's affiliates. Each of these proposed changes are described
below.
* * * * *
The Exchange believes that exchanges, in setting fees of all types,
should meet very high standards of transparency to demonstrate why each
new fee or fee increase meets the requirements of the Act that fees be
reasonable, equitably allocated, not unfairly discriminatory, and not
create an undue burden on competition among Members \11\ and markets.
The Exchange believes this high standard is especially important when
an exchange imposes various fees for market participants to access an
exchange's market data.
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\11\ 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
Exchange Rule 100.
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Approximately 60% of Members subscribe to one or more market data
feeds from the Exchange. Of those
[[Page 33451]]
Members, approximately 37% subscribe to all four market data feeds,
approximately 22% subscribe to three market data feeds, approximately
19% subscribe to two market data feeds, and approximately 22% subscribe
to only one market data feed. The Exchange notes that there is no
requirement that any Member or market participant subscribe to the ToM,
cToM, or SLF data feeds offered by the Exchange. Instead, a Member may
choose to maintain subscriptions to the ToM, cToM, or SLF data feeds
based on their own business needs and trading models.
Definitions
The Exchange proposes to include a Definitions section at the
beginning of Section 6, Market Data Fees, of the Fee Schedule. The
purpose of the Definitions section is to provide market participants
greater clarity and transparency regarding the applicability of fees by
defining certain terms used in connection with market data feeds within
the Fee Schedule in a single location related to the Exchange's market
data products. The Exchange notes that a similar Definitions section is
included in the fee schedule applicable to the equity trading platform
of the Exchange's affiliate, MIAX PEARL, LLC (known as MIAX Pearl
Equities),\12\ and that each of the proposed definitions are based on
the MIAX Pearl Equities Fee Schedule and that of other exchanges. The
Exchange believes that including a Definitions section for market data
products makes the Fee Schedule more user-friendly and comprehensive.
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\12\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Fees, and Securities Exchange Act Release No. 100319 (June 12,
2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25). See also Cboe
BZX Exchange, Inc. (``Cboe BZX Options'') Fee Schedule, Market Data
Fees section, and Cboe EDGX Exchange, Inc. (``Cboe EDGX Options'')
Fee Schedule, Market Data Fees section. See also MEMX LLC (``MEMX
Options'') Fee Schedule, Market Data Fees section, and Securities
Exchange Act Release No. 101370 (October 17, 2024), 89 FR 84638
(October 23, 2024) (SR-MEMX-2024-40) (``MEMX Options Market Data Fee
Proposal'').
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The Exchange proposes to define the following terms in Section 6 of
the Fee Schedule:
<bullet> Distributor. Any entity that receives the Exchange data
product directly from the Exchange or indirectly through another entity
and then distributes it internally or externally to a third party.
<bullet> External Distributor. A Distributor that receives the
Exchange data product and then distributes that data to a third party
or one or more Users outside the Distributor's own entity.
<bullet> Internal Distributor. A Distributor that receives the
Exchange data product and then distributes that data to one or more
Users within the Distributor's own entity.
<bullet> The Exchange notes that it proposes to use the phrase
``own entity'' in the definition of Internal Distributor and External
Distributor because a Distributor would be permitted to share data
received from an exchange data product to other legal entities
affiliated with the Distributor's entity that have been disclosed to
the Exchange without such distribution being considered external to a
third party. For instance, if a company has multiple affiliated broker-
dealers under the same holding company, that company could have one of
the broker-dealers or a non-broker-dealer affiliate subscribe to an
exchange data product and then share the data with other affiliates
that have a need for the data. This sharing with affiliates would not
be considered external distribution to a third party but instead would
be considered internal distribution to data recipients within the
Distributor's own entity.
<bullet> The Exchange also notes that the explanatory paragraphs
under the ToM, cToM, and SLF data feed fee tables includes the
following language which defines the terms Distributor, Internal
Distributors, and External Distributors:
MIAX Sapphire will assess Market Data Fees applicable to ToM [cToM,
AIS or SLF] on Internal and External Distributors in each month the
Distributor is credentialed to use ToM [cToM, AIS or SLF] in the
production environment. A Distributor of MIAX Sapphire data is any
entity that receives a feed or file of data either directly from MIAX
Sapphire or indirectly through another entity and then distributes it
either internally (within that entity) or externally (outside that
entity). All Distributors are required to execute an Exchange
Distributor Agreement.
The Exchange proposes to remove these provisions from the Fee
Schedule because they: (i) duplicate the proposed definitions of
Distributor, External Distributor, and External Distributor proposed
herein with no substantive difference; and (ii) provide details that
are included in the Exchange's market data policies that are also not
also provided for in the fee schedules of other options exchanges.\13\
Removing these provisions would also harmonize the definition and fee
descriptions with the fee schedule applicable to MIAX Pearl
Equities.\14\
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\13\ See Cboe BZX Options Fee Schedule, Market Data Fees section
and Cboe EDGX Options, Market Data Fees section, both available at
<a href="https://www.cboe.com/us/options/membership/?_gl=1*19q7zz0*_up*MQ..*_ga*NjY5OTA0NzE4LjE3MzQ1MzQzODk.*_ga_5Q99WB9X71*MTczNDUzNzQ0Mi4yLjEuMTczNDUzNzQ5OC4wLjAuMA">https://www.cboe.com/us/options/membership/?_gl=1*19q7zz0*_up*MQ..*_ga*NjY5OTA0NzE4LjE3MzQ1MzQzODk.*_ga_5Q99WB9X71*MTczNDUzNzQ0Mi4yLjEuMTczNDUzNzQ5OC4wLjAuMA</a>. See also MEMX Options
Fee Schedule and Securities Exchange Act Release No. 101370 (October
17, 2024), 89 FR 84638 (October 23, 2024) (SR-MEMX-2024-40).
\14\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Fees, and Securities Exchange Act Release No. 100319 (June 12,
2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25).
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<bullet> Non-Display Usage. Any method of accessing an Exchange
data product that involves access or use by a machine or automated
device without access or use of a display by a natural person or
persons.
<bullet> Non-Professional User. A natural person or qualifying
trust that uses Exchange data only for personal purposes and not for
any commercial purpose and, for a natural person who works in the
United States, is not: (i) registered or qualified in any capacity with
the Securities and Exchange Commission, the Commodities Futures Trading
Commission, any state securities agency, any securities exchange or
association, or any commodities or futures contract market or
association; (ii) engaged as an ``investment adviser'' as that term is
defined in Section 202(a)(11) of the Investment Advisors Act of 1940
(whether or not registered or qualified under that Act); or (iii)
employed by a bank or other organization exempt from registration under
federal or state securities laws to perform functions that would
require registration or qualification if such functions were performed
for an organization not so exempt; or, for a natural person who works
outside of the United States, does not perform the same functions as
would disqualify such person as a Non-Professional User if he or she
worked in the United States.
<bullet> Professional User. Any User other than a Non-Professional
User.
<bullet> User. A Professional User or Non-Professional User.
Proposed Market Data Pricing
As described above, upon the expiration of the Initial Waiver
Period, the Exchange began to charge Internal Distributors a monthly
fee of $1,200.00 for the ToM and cToM data feeds, and $3,000.00 for the
SLF data feed. The Exchange also only currently charges External
Distributors a monthly fee of $2,000.00 for the ToM and cToM data
feeds, and $3,500.00 for the SLF data feed. The Exchange now proposes
to charge the below per User fees as well as Non-Display Usage fees for
the ToM, cToM, and SLF data feeds, which, the Exchange believes are
generally similar to or lower than market data fees charged by other
similarly situated
[[Page 33452]]
options exchanges. The Exchange does not propose to adopt any
additional fee categories in this proposal. Each of the below
capitalized terms are defined above and would be included under the
proposed Definitions section under Section 6, Market Data Fees, of the
Fee Schedule.
1. User Fees. For the ToM, cToM, and SLF data feeds, the Exchange
proposes to charge a monthly fee of $20.00 for each Professional User
and $1.00 for each Non-Professional User of each data feed.\15\ The
proposed User fees would apply to each person that has access to the
ToM, cToM, or SLF data feeds that is provided by a Distributor (either
Internal or External) for displayed usage. Each Distributor's User
count would include every individual that has access to the data
regardless of the purpose for which the individual uses the data. The
above Professional or Non-Professional User fee would provide the same
Professional or Non-Professional User access to all other MIAX Sapphire
Market Data feeds for no additional per User charge.\16\ In other
words, a User would receive access to the ToM, cToM, and SLF data feeds
for the applicable single per User fee and not have to pay separate per
User fees for each data feed. As such, Distributors should report the
number of Users per the Exchange, and not per individual data feed.
This would be noted in Section 6 of the Fee Schedule under footnote 1
following the fee tables for the ToM, cToM, and SLF data feeds.
Distributors of the ToM, cToM, or SLF data feeds would be required to
report all Professional and Non-Professional Users in accordance with
the following:
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\15\ The Exchange does not propose to adopt an Enterprise Fee at
this time and may do so in the future based on feedback from market
participants.
\16\ The Exchange notes that similar reporting is required by
the Nasdaq options markets, The Nasdaq Stock Market LLC (``Nasdaq
Options''), Nasdaq Phlx LLC (``Nasdaq Phlx''), and Nasdaq MRX, LLC
(``Nasdaq MRX''). See, e.g., <a href="https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions">https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions</a> (providing that ``[t]he monthly
user fee should be reported once for Nasdaq Options, not once per
datafeed'').
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<bullet> In connection with a Distributor's distribution of the
ToM, cToM, or SLF data feeds, the Distributor must count as one User
each unique User that the Distributor is entitled for access to the
ToM, cToM, or SLF data feeds.
<bullet> Distributors must report each unique individual person who
receives access through multiple devices or multiple methods (e.g., a
single User has multiple passwords and user identifications) as one
User.
<bullet> If a Distributor entitles one or more individuals to use
the same device, the Distributor must include only the individuals, and
not the device, in the count. Thus, Distributors would not be required
to report User device counts associated with a User's display use of
the data feed.
2. Non-Display Usage Fees. The Exchange proposes to establish a
monthly Non-Display Usage \17\ fee of $1,500.00 for the ToM, cToM, and
SLF data feeds.
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\17\ Non-Display Usage would include trading uses such as high
frequency or algorithmic trading as well as any trading in any asset
class, automated order or quote generation and/or order pegging,
price referencing for smart order routing, operations control
programs, investment analysis, order verification, surveillance
programs, risk management, compliance, and portfolio management.
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<bullet> The Exchange proposes to provide a discount to those that
subscribe to two or more MIAX Sapphire data feeds by capping the Non-
Display Usage fee for Subscribers of two or more MIAX Sapphire data
feeds at $3,000.00. This would be noted in Section 6 of the Fee
Schedule under footnote 2 following the fee tables for the ToM, cToM,
and SLF data feeds.
Lastly, the Exchange proposes to no longer pro-rate fees for
Distributors who subscribe or terminate mid-month. The Exchange notes
that there were no mid-month subscriptions or terminations over the
past twelve (12) months that would have required the monthly fee to be
pro-rated. The Exchange also notes that mid-month subscriptions and
terminations could place an increased burden on Exchange staff and
systems that are in place to pro-rate the monthly fee that are not
justified by the little to no mid-month subscriptions and terminations
that occurred over the past year on its affiliated options exchanges or
that the Exchange anticipates going forward based on its past
experience. This portion of the proposal should also encourage
subscribers to either begin a new subscription or terminate an existing
subscription at the beginning or end of a month, respectively. Lastly,
removing these provisions would also harmonize the MIAX Sapphire Fee
Schedule with the MIAX Pearl Equities fee schedule, which also does not
provide for pro-ration.\18\ Also, other exchanges do not provide for
the similar pro-ration of market data fees.\19\ Therefore, the Exchange
proposes to remove the following language providing for pro-rated month
fees for mid-month subscribers from the explanatory paragraphs under
the ToM, cToM, and SLF data feed fee tables:
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\18\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Fees, and Securities Exchange Act Release No. 100319 (June 12,
2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25).
\19\ See Cboe BZX Options Fee Schedule and Cboe EDGX Options Fee
Schedule, supra note 13. See also MEMX Options Fee Schedule and
Securities Exchange Act Release No. 101370 (October 17, 2024), 89 FR
84638 (October 23, 2024) (SR-MEMX-2024-40).
Market Data Fees for [ToM/cToM/SLF] will be reduced for new
Distributors for the first month during which they subscribe to
[ToM/cToM/SLF], based on the number of trading days that have been
held during the month prior to the date on which they have been
credentialed to use [ToM/cToM/SLF] in the production environment.
Such new Distributors will be assessed a pro-rata percentage of the
fees described above, which is the percentage of the number of
trading days remaining in the affected calendar month as of the date
on which they have been credentialed to use [ToM/cToM/SLF] in the
production environment, divided by the total number of trading days
in the affected calendar month.
Remove Initial Waiver Period Rule Text
The Exchange also proposes to remove the rule text regarding the
Initial Waiver Period that is below the table of fees in Sections 6)a)
and b) of the Fee Schedule. As noted above, the Exchange established
the Initial Waiver Period when it launched operations on August 13,
2024 for a defined period of time. The Initial Waiver Period was in
effect for the partial month in which the Fee Schedule was established
in August 2024, continuing in effect for six months thereafter.
Accordingly, the Initial Waiver Period automatically expired at the end
of February 2025. The purpose of this change is to remove text that no
longer applies from the Fee Schedule, thereby providing clarity to
market participants regarding the Exchange's market data fees.
[[Page 33453]]
Implementation
The Exchange issued alerts publicly announcing the proposed fees on
September 30, 2024 and December 17, 2024.\20\ The fees subject to this
proposal are immediately effective.
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\20\ See Fee Change Alert, MIAX Exchange Group--January 1, 2025
and March 1, 2025 Market Data Fee Changes (dated September 30,
2024), available at <a href="https://www.miaxglobal.com/alert/2024/09/30/miax-exchange-group-options-markets-january-1-2025-and-march-1-2025-market-1?nav=all">https://www.miaxglobal.com/alert/2024/09/30/miax-exchange-group-options-markets-january-1-2025-and-march-1-2025-market-1?nav=all</a> and Fee Change Alert, MIAX Exchange Group--Options
Markets--Reminder: January 1, 2025 and March 1, 2025 Market Data Fee
Changes (dated December 17, 2024), available at <a href="https://www.miaxglobal.com/alert/2024/12/17/miax-exchange-group-options-markets-reminder-january-1-2025-and-march-1-2?nav=all">https://www.miaxglobal.com/alert/2024/12/17/miax-exchange-group-options-markets-reminder-january-1-2025-and-march-1-2?nav=all</a>.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \21\ of the Act in general, and
furthers the objectives of Section 6(b)(4) \22\ of the Act, in
particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees and other charges among its Members
and other persons using its facilities. Additionally, the Exchange
believes that the proposed fees are consistent with the objectives of
Section 6(b)(5) \23\ of the Act in that they are designed 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 a free and open market and
national market system, and, in general, to protect investors and the
public interest, and, particularly, are not designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.
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\21\ 15 U.S.C. 78f.
\22\ 15 U.S.C. 78f(b)(4).
\23\ 15 U.S.C. 78f(b)(5).
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The Exchange notes that the ToM, cToM, and SLF data feeds are
entirely optional. The Exchange is not required to make the ToM, cToM,
and SLF data feeds available to any customers, nor is any customer
required to purchase the ToM, cToM, and SLF data feeds.
The Proposed Fees Are Reasonable and Comparable to the Fees Charged by
Other Exchanges for Similar Data Products
Overall. The proposed fees are comparable to those of other options
exchanges. Based on publicly-available information, no single exchange
had more than 12.14% equity options market share for the month of June
2025,\24\ and the Exchange compared the fees proposed herein to the
fees charged by other options exchanges with similar market share. A
more detailed discussion of the comparison follows.
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\24\ See The OCC, Options Volume by Exchange--2025, available
athttps://<a href="http://www.theocc.com/market-data/market-data-reports/volume-and-open-interest/volume-by-exchange">www.theocc.com/market-data/market-data-reports/volume-and-open-interest/volume-by-exchange</a> (last visited June 30, 2025).
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The Exchange assesses the market share for each of the below
referenced options markets utilizing total equity options contracts
traded in June 2025, as set forth in the following charts: \25\
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\25\ Market share is the percentage of volume on a particular
exchange relative to the total volume across all exchanges, and
indicates the amount of order flow directed to that exchange. High
levels of market share enhance the value of trading and ports. Total
contracts include both multi-list options and proprietary options
products. Proprietary options products are products with
intellectual property rights that are not multi-listed.
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User Fees
The proposed per User fees for the Exchange's market data products
are comparable to or lower than those charged by Nasdaq Options, Nasdaq
MRX, Cboe BZX Options, and Cboe C2 Exchange, Inc. (``Cboe C2''), as
summarized in the table below.
----------------------------------------------------------------------------------------------------------------
Monthly Monthly non-
Exchange Market share Market data product professional user professional user
(%) fee fee
----------------------------------------------------------------------------------------------------------------
MIAX Sapphire.................... 3.19 ToM, cToM, SLF..... $20.00 (per $1.00 (per
Exchange). Exchange).
Nasdaq Options................... 2.96 NOM BONO, NOM ITTO. $42.10 (per $1.00 (per
exchange). exchange).
Nasdaq MRX....................... 2.83 MRX Top, MRX Depth, $25.25 (per $1.00 (per
MRX Spread. exchange). exchange).
Cboe BZX Options................. 4.14 BZX Depth.......... $30.00 (per feed).. $1.00 (per feed).
Cboe C2.......................... 3.02 C2 Depth........... $50.00 (per feed).. $50.00 (per feed)
C2 Complex......... $25.00 (per feed).. $25.00 (per feed).
----------------------------------------------------------------------------------------------------------------
A more detailed discussion of the comparison follows.
Nasdaq Options. Nasdaq Options, with a market share of
approximately 2.96%, lower than the Exchange, charges higher or
comparable Professional and Non-Professional User fees for its top of
book and depth of book feeds than proposed by the Exchange. Further,
like Nasdaq Options, the Exchange proposes to charge a single per User
fee that would provide access to all of its market data products for a
single fee.
The Nasdaq Options Best of Nasdaq Options (``BONO'') feed is an
options feed that provides Nasdaq Options' best bid and offer and last
sale information.\26\ The Nasdaq Options BONO feed is similar to the
Exchange's ToM data feed. The Nasdaq Options ITCH to Trade Options
(``ITTO'') feed is an options feed that provides full order and quote
depth information for individual orders and quotes and last sale
information.\27\ ITTO also provides, among other things, product
(option series) available for trading on Nasdaq Options, the trading
status of such products (i.e., whether the series is available for
closing transactions only), and order imbalances on opening/reopenings.
The ITTO feed is similar to the Exchange's SLF data feed.\28\
---------------------------------------------------------------------------
\26\ See Nasdaq Options Rules, Options 3, Section 23(a)(2).
\27\ See Nasdaq Options Rules, Options 3, Section 23(a)(1).
\28\ The Exchange is not comparing its cToM feed to a comparable
Nasdaq Options feed because the Exchange understands Nasdaq Options
does not offer such a feed.
---------------------------------------------------------------------------
Nasdaq Options charges Professional Users $42.10 per month and Non-
Professional Users $1.00 per month for the BONO feed and ITTO feed.\29\
The Exchange proposes to charge less than Nasdaq Options for
Professional Users and the same as Nasdaq Options for Non-Professional
Users while also providing access to all of its market data feeds for a
single per User fee. Specifically, for both the ToM and SLF data feeds,
the Exchange proposes to charge Professional Users $20.00 per month and
Non-Professional Users $1.00 per month. The Exchange's proposed
Professional User fee is lower than Nasdaq Options and its Non-
Professional User fee is equal to Nasdaq Options. Despite having lower
market share than the Exchange, Nasdaq Options charges much higher or
comparable per User fees than proposed by the Exchange herein.
---------------------------------------------------------------------------
\29\ See Price List--U.S. Derivatives Data, available at <a href="https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions">https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions</a>. See also
Securities Exchange Act Release No. 73823 (December 11, 2014), 79 FR
75207 (December 17, 2014) (SR-NASDAQ-2014-119).
---------------------------------------------------------------------------
[[Page 33454]]
Nasdaq MRX. Nasdaq MRX, with a market share of approximately 2.83%,
lower than the Exchange, charges higher Professional and Non-
Professional User fees for its top of book and depth of book feeds than
the fees proposed by the Exchange. Further, like Nasdaq MRX, the
Exchange proposes to charge a single per User fee that would provide
access to all of its market data products for a single fee.\30\
---------------------------------------------------------------------------
\30\ The Exchange notes that Nasdaq MRX also offers the Nasdaq
MRX Order Feed and Nasdaq MRX Trades Feed, which are included in the
Nasdaq MRX per User fees. See Nasdaq MRX Options Rules, Options 7,
Pricing Schedule, Section 7, Market Data.
---------------------------------------------------------------------------
The Nasdaq MRX Top of Market feed is an options feed that provides
Nasdaq MRX's best bid and offer and last sale information.\31\ The
Nasdaq MRX Top of Market feed is similar to the Exchange's ToM feed.
The Nasdaq MRX Depth of Market feed is an options feed that provides
full order and quote depth information for individual orders and quotes
and last sale information.\32\ The Nasdaq MRX Depth of Market feed is
similar to the Exchange's SLF feed. The Nasdaq MRX Spread feed is an
options feed that provides information for both simple and complex
orders.\33\ The Nasdaq MRX Spread feed is similar to the Exchange's
cToM data feed.
---------------------------------------------------------------------------
\31\ See Nasdaq MRX Options Rules, Options 3, Section 23(a)(3).
\32\ See Nasdaq MRX Options Rules, Options 3, Section 23(a)(1).
\33\ See Nasdaq MRX Options Rules, Options 3, Section 23(a)(2).
---------------------------------------------------------------------------
Nasdaq MRX charges Professional Users $25.25 per month and Non-
Professional Users $1.00 per month for the Nasdaq MRX Top of Market
feed, the Nasdaq MRX Depth of Market Feed, and the Nasdaq MRX Spread
Feed.\34\ The Exchange proposes to charge less than Nasdaq MRX for
Professional Users and the same as Nasdaq MRX for Non-Professional
Users while also providing access to all of its market data fees for
single per User fee. Specifically, for the ToM, cToM, and SLF data
feeds, the Exchange proposes to charge Professional Users $20.00 per
month and Non-Professional Users $1.00 per month. The Exchange's
proposed Professional User fee is lower than Nasdaq MRX and its Non-
Professional User fee is equal to Nasdaq MRX. Despite having lower
market share than the Exchange, Nasdaq MRX charges higher or comparable
per User fees than the fees proposed by the Exchange herein.
---------------------------------------------------------------------------
\34\ See Price List--U.S. Derivatives Data, available at <a href="https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions">https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions</a>.
---------------------------------------------------------------------------
Cboe BZX Options. Cboe BZX Options, with a market share of
approximately 4.14%, which is comparable to the Exchange's market
share, charges higher Professional and Non-Professional User fees for
its depth of book feed than the fees proposed by the Exchange. Further,
Cboe BZX Options also charges separate per User fees per data product,
whereas the Exchange proposes to charge a single lower per User fee
that would provide access to all of its market data products for a
single fee.
The Cboe BZX Options Top feed is an options feed that provides top
of book quotations and execution information.\35\ The Cboe BZX Options
Top feed is similar to the Exchange's ToM feed. The Cboe BZX Options
Depth feed is an options feed that provides depth of book quotations
and execution information. The Cboe BZX Options Depth feed is similar
to the Exchange's SLF data feed.
---------------------------------------------------------------------------
\35\ For the Cboe BZX Options Top feed, Cboe BZX Option charges
Professional Users $5.00 per month and Non-Professional Users $0.10
per month. For ToM, cToM and SLF data feeds, the Exchange proposes
to charge Professional Users $20.00 per month and Non-Professional
Users $1.00 per month. Although higher, the Exchange's proposed
Professional and Non-Professional User fees are not necessarily
comparable to Cboe BZX Options Top fees because a User may receive
access to each of the Exchange's three data feeds for a single per
User fee and, unlike Cboe BZX Options, not be required to pay a
separate per User fee for each data product and Cboe BZX Options
only provides two data feeds that provide only Cboe BZX Options
data. Cboe BZX Options also offers the Cboe One Options Feed, which
provides information for not only Cboe BZX Options, but also its
three affiliated options markets, Cboe EDGX Options, Cboe, and Cboe
C2. See Cboe BZX Options Rule 21.15 (b)(6).
---------------------------------------------------------------------------
Cboe BZX Options charges Professional Users $30.00 per month and
Non-Professional Users $1.00 per month for the Cboe BZX Options Depth
feed. The Exchange proposes to charge less than Cboe BZX Options and
provide access to all of its market data fees for single, and still
lower, per User fee. Specifically, for ToM, cToM, and SLF data feeds,
the Exchange proposes to charge Professional Users $20.00 per month and
Non-Professional Users $1.00 per month. The Exchange's proposed
Professional User fee is lower than Cboe BZX Options and its Non-
Professional User fee is equal to Cboe BZX Options. However, both of
the Exchange's proposed fees can be lower than Cboe BZX Options because
a User may receive access to each of the Exchange's data feeds for a
single per User fee and, unlike Cboe BZX Options, not be required to
pay a separate per User fee for each data product.\36\
---------------------------------------------------------------------------
\36\ Id.
---------------------------------------------------------------------------
Cboe C2. Cboe C2, with a market share of approximately 3.02%, lower
than the Exchange, charges higher Professional and Non-Professional
User fees for its C2 Options Depth and C2 COB feed than proposed by the
Exchange. Unlike Cboe C2, the Exchange proposes to charge a single per
User fee that would provide access to all of its market data products
for a single fee.
The Cboe C2 Options Depth feed is an options feed that provides
depth of book quotations and execution information. The Cboe C2 Options
Depth feed is similar to the Exchange's SLF data feed. The Cboe C2 COB
feed is an options data feed that provides information for complex
strategies (multi-leg trades, such as spreads, straddles and buy-
writes).\37\ The Cboe C2 COB feed is similar to the Exchange's cToM
data feed.\38\ Cboe C2 charges all Users, both Professional Users and
Non-Professional Users, $25.00 per month for the Cboe C2 COB feed and
$50.00 for the Depth feed.\39\ The Exchange proposes to charge less
than Cboe C2 for Professional Users and Non-Professional Users while
also providing access to all of its market data feeds for a single per
User fee. Specifically, for the cToM data feed, the Exchange proposes
to charge Professional Users $20.00 per month and Non-Professional
Users $1.00 per month. The Exchange's proposed Professional User and
Non-Professional User fees are lower than the fees for the Cboe C2 COB
feed. Despite having lower market share than the Exchange, Cboe C2
charges higher or comparable per User fees than proposed by the
Exchange herein.
---------------------------------------------------------------------------
\37\ See <a href="https://www.cboe.com/market_data_services/us/options/">https://www.cboe.com/market_data_services/us/options/</a>.
\38\ Cboe C2 also provides the Cboe C2 Top feed, which provides
top of book quotations and execution information. Cboe C2 Top is
similar to the Exchange's ToM feed. Cboe C2 charges Professional
Users $5.00 per month and Non-Professional Users $0.10 per month.
For ToM, cToM and SLF data feeds, the Exchange proposes to charge
Professional Users $20.00 per month and Non-Professional Users $1.00
per month. Although higher, the Exchange's proposed Professional and
Non-Professional User fees are not necessarily comparable to Cboe C2
Top fees because a User may receive access to each of the Exchange's
three data feeds for a single per User fee and, unlike Cboe C2, not
be required to pay a separate per User fee for each data product and
Cboe C2 also provides three data feeds that provide only Cboe C2
data. It is reasonable, however, to compare the Exchange's data
feeds to Cboe C2 data feeds with higher per User fees because they
charge the higher fee for a single data product whereas the Exchange
includes each of its data products for a single fee. Cboe C2 also
offers the Cboe One Options Feed, which provides information for not
only Cboe C2, but also its three affiliated options markets, Cboe
EDGX Options, Cboe, and Cboe BZX Options.
\39\ See Cboe C2 Fee Schedule, available at <a href="https://www.cboe.com/us/options/membership/fee_schedule/ctwo/">https://www.cboe.com/us/options/membership/fee_schedule/ctwo/</a>.
---------------------------------------------------------------------------
* * * * *
Each of the above examples of other exchanges' market data fees
support the proposition that the Exchange's proposed User fees are
comparable to those of other exchanges and therefore reasonable.
[[Page 33455]]
Non-Display Usage Fee
The proposed Non-Display Usage fee for the Exchange's market data
products is comparable to those charged by Nasdaq Options and Nasdaq
MRX, as summarized in below table.
----------------------------------------------------------------------------------------------------------------
Market share Monthly non-display usage
Exchange (%) Market data products fee
----------------------------------------------------------------------------------------------------------------
MIAX Sapphire........................... 3.19 ToM, cToM, SLF............ $1,500.00 (per feed)
(capped at $3,000.00).
Nasdaq Options.......................... 2.96 NOM BONO, NOM ITTO........ $10,530.00 (per exchange).
Nasdaq MRX.............................. 2.83 MRX Top, MRX Depth, MRX $7,575.00 (per exchange).
Spread.
----------------------------------------------------------------------------------------------------------------
A more detailed discussion of the comparison follows.
Nasdaq Options. Nasdaq Options, with a market share of
approximately 2.96%, which is lower than the Exchange's market share,
charges higher Non-Display Usage fees for its top of book and depth of
book feeds than proposed by the Exchange. Further, Nasdaq Options also
charges the full Non-Display Usage fees to receive all of its data
products, whereas the Exchange proposes to cap the Non-Display Usage
fee at $3,000.00, which would provide a discount to subscribers that
choose to subscribe to multiple Exchange data feeds for Non-Display
Usage.\40\
---------------------------------------------------------------------------
\40\ The Exchange notes that not all options exchanges charge
non-display fees for options data. For example, Cboe, Cboe C2, Cboe
EDGX Options, Cboe BZX Options, BOX, and MEMX Options do not charge
non-display fees. Therefore, the Exchange compared its fees to two
comparable exchanges, Nasdaq Options and Nasdaq MRX, which charge
non-display fees.
---------------------------------------------------------------------------
As discussed above, the Nasdaq Options BONO feed is an options feed
that provides Nasdaq Options' best bid and offer and last sale
information.\41\ The Nasdaq Options BONO feed is similar to the
Exchange's ToM data feed. The Nasdaq Options ITTO feed is an options
feed that provides full order and quote depth information for
individual orders and quotes and last sale information.\42\ Nasdaq
Options ITTO also provides, among other things, product (option series)
available for trading on Nasdaq Options, the trading status of such
products (i.e., whether the series is available for closing
transactions only), and order imbalances on opening/reopenings. The
Nasdaq Options ITTO feed is similar to the Exchange's SLF data
feed.\43\
---------------------------------------------------------------------------
\41\ See Nasdaq Options Rules, Options 3, Section 23(a)(2).
\42\ See Nasdaq Options Rules, Options 3, Section 23(a)(1).
\43\ The Exchange proposes to cap the amount of Non-Display
Usage fees for those that subscribe to multiple Exchange data feeds.
---------------------------------------------------------------------------
Nasdaq Options charges a monthly fee of $10,530.00 for Non-Display
Usage of the Nasdaq Options BONO feed and Nasdaq Options ITTO feed.\44\
The Exchange proposes to charge less than Nasdaq Options while also
proposing to cap the Non-Display Usage fee at $3,000.00, which would
provide a discount to subscribers that choose to subscribe to multiple
Exchange data feeds for Non-Display Usage. Specifically, for the ToM,
cToM, and SLF data feeds, the Exchange proposes to charge a monthly fee
of $1,500.00 for Non-Display Usage and to cap the Non-Display Usage fee
at $3,000.00 for those that wish to receive two or more of the
Exchange's data feeds for Non-Display Usage. This cap would be in lieu
of paying the full Non-Display Usage Fee for each data product, which
would total $6,000.00 per month. Despite having incrementally lower
market share than the Exchange, Nasdaq Options charges higher Non-
Display Usage fees than the fees proposed by the Exchange herein.
---------------------------------------------------------------------------
\44\ See Price List--U.S. Derivatives Data, available at <a href="https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions">https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions</a>. See also
Securities Exchange Act Release No. 73823 (December 11, 2014), 79 FR
75207 (December 17, 2014) (SR-NASDAQ-2014-119).
---------------------------------------------------------------------------
Nasdaq MRX. Nasdaq MRX, with a market share of approximately 2.83%,
which is lower than the Exchange's market share, charges higher Non-
Display Usage fees for its top of book, depth of book, and order feeds
than the fees proposed by the Exchange. Nasdaq MRX charges the full
single Non-Display Usage fee of $7,757.00 for access to all of its
market data feeds. Meanwhile, the Exchange proposes to cap the Non-
Display Usage fee at $3,000.00, which would provide a discount to
subscribers that choose to subscribe to multiple Exchange data feeds
for Non-Display Usage, and would be lower than the fee assessed by
Nasdaq MRX.
The Nasdaq MRX Top of Market feed is an options feed that provides
Nasdaq MRX's best bid and offer and last sale information.\45\ The
Nasdaq MRX Top of Market feed is similar to the Exchange's ToM data
feed. The Nasdaq MRX Depth of Market feed is an options feed that
provides full order and quote depth information for individual orders
and quotes and last sale information.\46\ The Nasdaq MRX Depth of
Market feed is similar to the Exchange's SLF feed. The Nasdaq MRX
Spread feed is an options feed that provides information for both
simple and complex orders.\47\ The Nasdaq MRX Spread feed is similar to
the Exchange's cToM data feed.
---------------------------------------------------------------------------
\45\ See Nasdaq MRX Options Rules, Options 3, Section 23(a)(3).
\46\ See Nasdaq MRX Options Rules, Options 3, Section 23(a)(1).
\47\ See Nasdaq MRX Options Rules, Options 3, Section 23(a)(2).
---------------------------------------------------------------------------
Nasdaq MRX charges a monthly fee of $7,575.00 for Non-Display Usage
of the Nasdaq MRX Top of Market feed, Nasdaq MRX Depth of Market feed,
and Nasdaq MRX Spread feed.\48\ The Exchange proposes to charge less
than Nasdaq MRX while also proposing to cap the Non-Display Usage fee
at $3,000.00, which would provide a discount to subscribers that choose
to subscribe to multiple Exchange data feeds for Non-Display Usage.
Specifically, for all of the Exchange's data feeds, the Exchange
proposes to charge a monthly fee of $1,500.00 and to cap the Non-
Display Usage fee at $3,000.00 for those that wish to receive two or
more of the Exchange's data feeds for Non-Display Usage. This cap would
be in lieu of paying the full Non-Display Usage Fee for each data
product, which would total $6,000.00 per month. Despite having lower
market share than the Exchange, Nasdaq MRX charges higher Non-Display
Usage fees than the fees proposed by the Exchange herein.
---------------------------------------------------------------------------
\48\ See Price List--U.S. Derivatives Data, available at <a href="https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions">https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions</a>.
---------------------------------------------------------------------------
* * * * *
Each of the above examples of other exchanges' market data fees
support the proposition that the Exchange's proposed Non-Display Usage
fees lower than those of other exchanges and therefore reasonable.
The below table sets forth each exchanges' distributor fees for
each data feed that the Exchange includes in its above comparisons. The
below table also includes applicable per User and Non-Display Usage
fees that are discussed above.\49\
---------------------------------------------------------------------------
\49\ The Exchange notes that other exchanges offer an enterprise
license fee that provides access to an unlimited number of users for
a single price. This fee covers all of the applicable exchange's
market data feeds for a single enterprise license fee. The Exchange
does not propose to offer an enterprise license fee at this time
because customers have not requested it and, at this time, no
individual subscriber distributes Exchange market data to a
population of individual users that would justify the Exchange to
propose an enterprise license.
[[Page 33456]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Market share Market data Internal External
Exchange (%) product distributors distributors Pro-user Non-pro user Non-display fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
MIAX Sapphire................. 3.19 ToM.............. $1,200.00 $2,000.00 $20.00 (per $1.00 (per $1,500.00 (per
cToM............. 1,200.00 2,000.00 Exchange). Exchange). feed capped at
SLF.............. 3,000.00 3,500.00 $3,000.00).
Nasdaq Options................ 2.96 NOM BONO......... 1,566.00 2,089.00 42.10 (per 1.00 (per (10,530.00 (per
NOM ITTO......... 1,566.00 2,089.00 exchange). exchange). exchange, no
cap).
Nasdaq MRX.................... 2.83 MRX Top.......... 1,515.00 2,020.00 25.25 (per 1.00 (per 7,575.00 (per
MRX Depth........ 1,515.00 2,020.00 exchange). exchange). exchange, no
MRX Spread....... 1,010.00 1,515.00 cap).
Cboe BZX Options.............. 4.14 BZX Depth........ 3,000.00 2,000.00 30.00 (per feed). 1.00 (per feed). N/A.
Cboe C2....................... 3.02 C2 Complex....... 1,000.00 1,000.00 25.00 (per feed). 25.00 (per feed) N/A.
C2 Depth......... 2,500.00 2,500.00 50.00 (per feed). 50.00 (per feed) N/A.
--------------------------------------------------------------------------------------------------------------------------------------------------------
As illustrated by the above table, while distributor fees may vary
across exchanges, and in some instances are higher on the Exchange, the
per User fees of other exchanges are generally higher than that
proposed by the Exchange and can quickly make up for any difference in
distributor fees due to an increased number of Users permissioned to
view other exchanges' data feeds when compared to the Users
permissioned to view data from the Exchange. In other words, for a
certain number of users, a higher per User fee charged by other
exchanges would make up any difference in distributor fees and
ultimately make obtaining market data on the comparison exchange more
expensive. In addition, Nasdaq Options and Nasdaq MRX charge materially
higher fees for Non-Display Usage. Meanwhile, Cboe BZX Options and Cboe
C2 would charge non-display users their applicable distribution fee,
which are not capped, and some of their other fees, such as per User
fees on Cboe C2, are either higher than, or comparable to, the fees
proposed by the Exchange. Accordingly, the Exchange proposes to only
charge fees to Internal and External Distributors for the ToM, cToM and
SLF feeds, which, when combined with the above proposed fees, result in
fee packages that are generally comparable to the fee packages charged
by Nasdaq Options, Nasdaq MRX, Cboe BZX Options, and Cboe C2 due to
those exchanges charging higher or similar User and Non-Display Usage
fees, as set forth above.
Lastly, the proposed discount to charge per User fees at the
Exchange level, and not per data feed, as well as capping the monthly
Non-Display Usage fee for use of multiple data feeds, is reasonable and
cause the Exchange's proposed fees to be even lower for subscribers to
multiple Exchange data products.
Pro-Rata Distribution of Fees. The Exchange believes its proposal
to remove the text that the Exchange will pro-rate mid-month changes to
subscriptions is reasonable because the Exchange's affiliates had no
mid-month subscriptions or terminations over the past twelve (12)
months that would have required the monthly fee to be pro-rated and no
other options exchanges provides for the similar pro-ration of market
data fees.\50\ Also, removing these provisions would harmonize the MIAX
Sapphire Fee Schedule with the MIAX Pearl Equities Fee Schedule, which
does not provide for pro-ration of market data fees.\51\
---------------------------------------------------------------------------
\50\ See Cboe BZX Fee Schedule, Market Data Fees section and
Cboe EDGX Options Fee Schedule, supra note 13. See also MEMX Options
Fee Schedule, Market Data Fees section and Securities Exchange Act
Release No. 101370 (October 17, 2024), 89 FR 84638 (October 23,
2024) (SR-MEMX-2024-40).
\51\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Definitions, and Securities Exchange Act Release No. 100319
(June 12, 2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25).
---------------------------------------------------------------------------
The Proposed Fees Are Equitably Allocated
Overall. The Exchange believes that its proposed fees are
reasonable, equitable, and not unfairly discriminatory because they are
designed to align fees with services provided. The Exchange believes
that the proposed fees for the market data feeds are allocated fairly
and equitably among the various categories of users of the data feeds,
and any differences among categories of users are justified and
appropriate.
The Exchange believes that the proposed fees are equitably
allocated because they will apply uniformly to all data recipients that
choose to subscribe to the market data feeds. Any market participant
that chooses to subscribe to the market data feeds is subject to the
same Fee Schedule, regardless of what type of business they operate,
and the decision to subscribe to one or more market data feeds is based
on objective differences in usage of market data feeds among different
Members, which are still ultimately in the control of any particular
Member. The Exchange believes the proposed pricing of the market data
feeds is equitably allocated because it is based, in part, upon the
amount of information contained in each data feed, which may have
additional value to market participants.
Pro-Rata Distribution of Fees. The Exchange believes its proposal
to remove the text that the Exchange will pro-rate mid-month changes to
subscriptions is equitably allocated because the Exchange's affiliates
had no subscriber utilize pro-ration via a mid-month subscription or
termination over the past twelve (12) months, nor does it foresee a
subscriber doing so in the near future. The Exchange believes it is
equitable to remove the text that the Exchange will pro-rate fees for
Distributors who subscribe mid-month because other options exchanges do
not provide for the similar pro-ration of market data fees.\52\ Also,
removing these provisions would harmonize the MIAX Sapphire Fee
Schedule with the MIAX Pearl Equities Fee Schedule, which does not
provide for pro-ration of market data fees.\53\
---------------------------------------------------------------------------
\52\ See Cboe BZX Options Fee Schedule, Market Data Fees section
and Cboe EDGX Options Fee Schedule, Market Data Fees section, supra
note 13. See also MEMX Options Fee Schedule, Market Data Fees
section and Securities Exchange Act Release No. 101370 (October 17,
2024), 89 FR 84638 (October 23, 2024) (SR-MEMX-2024-40).
\53\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Definitions, and Securities Exchange Act Release No. 100319
(June 12, 2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25).
---------------------------------------------------------------------------
User Fees. The Exchange believes that the proposed fee, fee levels,
and structure that differentiates between Professional User fees from
Non-Professional User fees for display use are equitable. This
structure has long been used by other exchanges and OPRA to reduce the
price of data to Non-Professional Users and make it more broadly
available.\54\ Offering the market data feeds to Non-Professional
[[Page 33457]]
Users at a lower cost than Professional Users results in greater equity
among data recipients, as Professional Users are categorized as such
based on their employment and participation in financial markets, and
thus, are compensated to participate in the markets. While Non-
Professional Users too can receive significant financial benefits
through their participation in the markets, the Exchange believes it is
reasonable to charge more to those Users who are more directly engaged
in the markets.
---------------------------------------------------------------------------
\54\ See, e.g., Securities Exchange Act Release No. 59544 (March
9, 2009), 74 FR 11162 (March 16, 2009) (SR-NYSE-2008-131)
(establishing the $15 Non-Professional User Fee (Per User) for NYSE
OpenBook); Securities Exchange Act Release No. 20002, File No. S7-
433 (July 22, 1983), 48 FR 34552 (July 29, 1983) (establishing Non-
Professional fees for CTA data); NASDAQ BX Equity 7 Pricing
Schedule, Section 123.
---------------------------------------------------------------------------
Non-Display Usage Fees. The Exchange believes the proposed Non-
Display Usage fees are equitably allocated because they would require
Distributors to pay fees only for the uses they actually make of the
data. As noted above, non-display data can be used by data recipients
for a wide variety of profit-generating purposes (including trading and
order routing) as well as purposes that do not directly generate
revenues (such as risk management and compliance) but nonetheless
substantially reduce the recipient's costs by automating certain
functions. The Exchange believes that it is equitable to charge non-
display data Distributors that use the market data feeds because all
such Distributors would have the ability to use such data for as many
non-display uses as they wish for one low fee. As noted above, this
structure is comparable to that in place for the exchanges referenced
above and several other exchanges charge multiple non-display fees to
the same client to the extent they use a data feed in several different
trading platforms or for several types of non-display use.\55\
---------------------------------------------------------------------------
\55\ See Cboe BZX Options Fee Schedule, available at <a href="https://www.cboe.com/us/options/membership/fee_schedule/bzx/">https://www.cboe.com/us/options/membership/fee_schedule/bzx/</a> (providing fees
of $2,000.00 to $3,000.00 for Distribution, which includes Non-
Display use); Cboe C2 Fee Schedule, available at <a href="https://www.cboe.com/us/options/membership/fee_schedule/ctwo/">https://www.cboe.com/us/options/membership/fee_schedule/ctwo/</a> (providing a
fee $2,500.00 for Distribution, which includes Non-Display use);
Nasdaq Options Fee Schedule, available at <a href="https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions">https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions</a> (providing a
fee of $10,000.00 for Non-Display Use); and the NYSE American fee
schedule, available at <a href="https://www.nyse.com/publicdocs/nyse/data/NYSE_Market_Data_Pricing.pdf">https://www.nyse.com/publicdocs/nyse/data/NYSE_Market_Data_Pricing.pdf</a> (providing a fee of $5,000.00 for Non-
Display Use).
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* * * * *
For all of the foregoing reasons, the Exchange believes that the
proposed fees for the market data feeds are equitably allocated.
The Proposed Fees Are Not Unfairly Discriminatory
The Exchange believes the proposed fees are not unfairly
discriminatory because any differences in the application of the fees
are based on meaningful distinctions between customers, and those
meaningful distinctions are not unfairly discriminatory between
customers.
Overall. The Exchange believes that the proposed fees are not
unfairly discriminatory because they would apply to all data recipients
that choose to subscribe to the same market data feed(s). Any market
participant, including market data vendors, that chooses to subscribe
to the market data feeds is subject to the same Fee Schedule,
regardless of what type of business they operate. Market participants
seeking lower cost options may instead choose to receive data from OPRA
or another potentially lower cost option such as a market data vendor.
The Exchange notes that market participants can also choose to
subscribe to a combination of data feeds for redundancy purposes or to
use different feeds for different purposes. In sum, each market
participant has the ability to choose the best business solution for
itself. The Exchange does not believe it is unfairly discriminatory to
base pricing upon the amount of information contained in each data feed
and the importance of that information to market participants. As
described above, the ToM data feed can be utilized to trade on the
Exchange but contains less information than available on the SLF data
feed. Thus, the Exchange believes it is not unfairly discriminatory for
the products to be priced as proposed, with the same fees being
proposed for each data feed coupled with the discounts and caps
discussed above.
Pro-Rata Distribution of Fees. The Exchange believes that the
proposal to remove the text that the Exchange will pro-rate mid-month
changes to market data subscriptions is not unfairly discriminatory
because the Exchange's affiliates had no mid-month subscriptions or
terminations over the past twelve (12) months that would have required
the monthly fee to be pro-rated. The Exchange notes that other options
exchanges do not provide for the similar pro-ration of market data
fees.\56\ Also, removing these provisions would harmonize the MIAX
Sapphire Fee Schedule with the MIAX Pearl Equities Fee Schedule, which
does not provide for pro-ration.\57\
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\56\ See Cboe BZX Options Fee Schedule, Market Data Fees section
and Cboe EDGX Options Fee Schedule, Market Data Fees section, supra
note 13. See also MEMX Options Fee Schedule, Market Data Fees
section and Securities Exchange Act Release No. 101370 (October 17,
2024), 89 FR 84638 (October 23, 2024) (SR-MEMX-2024-40).
\57\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Definitions and Securities Exchange Act Release No. 100319
(June 12, 2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25).
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User Fees. The Exchange believes that the proposed fee, fee levels,
and structure that differentiates between Professional User fees from
Non-Professional User fees for display use are not unfairly
discriminatory. This structure has long been used by other exchanges
and OPRA to reduce the price of data to Non-Professional Users and make
it more broadly available. Offering the market data feeds to Non-
Professional Users with the same data as is available to Professional
Users, albeit at a lower cost, results in greater equity among data
recipients. These User fees would be charged uniformly to all
individuals that have access to the market data feeds based on the
category of User.
The Exchange also believes the proposed User fees are not unfairly
discriminatory, with higher fees for Professional Users than Non-
Professional Users, because Non-Professional Users may have less
ability to pay for such data than Professional Users as well as less
opportunity to profit from their usage of such data.
Non-Display Usage Fees. The Exchange believes that the proposed
Non-Display Usage fees are not unfairly discriminatory because they
would require Distributors for non-display use to pay fees depending on
their use of the data. As noted above, non-display data can be used by
data recipients for a wide variety of profit-generating purposes as
well as purposes that do not directly generate revenues but nonetheless
substantially reduce the recipient's costs by automating certain
functions.
* * * * *
For all of the foregoing reasons, the Exchange believes that the
proposed fees for the Exchange's market data feeds are not unfairly
discriminatory.
* * * * *
[[Page 33458]]
Remove Initial Waiver Period Rule Text
The Exchange believes its proposal to remove the rule text
regarding the Initial Waiver Period below the table of fees in Sections
6)a) and b) of the Fee Schedule is reasonable, equitable and not
unfairly discriminatory because the Initial Waiver Period automatically
expired at the end of February 2025. Upon the expiration of the Initial
Waiver Period, effective March 1, 2025, the market data fees in
Sections 6)a)-b) of the Fee Schedule began to apply to all market
participants equally who subscribe to the ToM, cToM, and/or SLF data
feeds. This proposed change will also remove impediments to and perfect
the mechanism of a free and open market because it will remove text
that no longer apples from the Fee Schedule, thereby providing clarity
to market participants regarding the Exchange's market data fees. It is
in the public interest for the Fee Schedule to be clear.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\58\ the Exchange
does not believe that the proposed rule change would impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of the Act.
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\58\ 15 U.S.C. 78f(b)(8).
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Intra-Market Competition
The Exchange does not believe that the proposed fees place certain
market participants at a relative disadvantage to other market
participants because, as noted above, the proposed fees are associated
with usage of the data feed by each market participant, which are still
ultimately in the control of any particular Member, and such fees do
not impose a barrier to entry to smaller participants. Accordingly, the
proposed fees do not favor certain categories of market participants in
a manner that would impose a burden on competition; rather, the
allocation of the proposed fees reflects the types of data consumed by
various market participants and their usage thereof. The Exchange also
believes that the proposed fees neither favor nor penalize one or more
categories of market participants in a manner that would impose an
undue burden on competition.
The Exchange believes its proposal to no longer pro-rate mid-month
changes to market data subscriptions does not place an undue burden on
intra-market competition because all market participants will be
subject to the same Fee Schedule, regardless of which point in the
month they subscribe. As noted above, the Exchange's affiliates had no
mid-month subscriptions or terminations over the past twelve (12)
months that would have required the monthly fee to be pro-rated. The
Exchange notes that other options exchanges do not provide for the
similar pro-ration of market data fees.\59\ Also, removing these
provisions would harmonize the MIAX Sapphire Fee Schedule with the MIAX
Pearl Equities Fee Schedule, which does not provide for pro-ration.\60\
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\59\ See Cboe BZX Options Fee Schedule, Market Data Fees section
and Cboe EDGX Options Fee Schedule, Market Data Fees section. See
also MEMX Options Fee Schedule, Market Data Fees section and
Securities Exchange Act Release No. 101370 (October 17, 2024), 89 FR
84638 (October 23, 2024) (SR-MEMX-2024-40).
\60\ See MIAX Pearl Equities Fee Schedule, Section 3), Market
Data Definitions and Securities Exchange Act Release No. 100319
(June 12, 2024), 89 FR 51562 (June 19, 2024) (SR-PEARL-2024-25).
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Inter-Market Competition
The Exchange does not believe the proposed fees place an undue
burden on competition on other SROs that is not necessary or
appropriate. In particular, market participants are not forced to
subscribe to any data feed, as described above. Additionally, other
exchanges have similar market data fees with comparable rates in place
for their participants. Other options exchanges are free to adopt
comparable fee structures subject to the Commission's rule filing
process.
The Exchange believes its proposal to remove the rule text
regarding the Initial Waiver Period below the table of fees in Sections
6)a) and b) of the Fee Schedule will not impose any burden on
competition because the Initial Waiver Period automatically expired at
the end of February 2025. Upon the expiration of the Initial Waiver
Period, effective March 1, 2025, the market data fees in Sections 6)a)-
b) of the Fee Schedule began to apply to all market participants
equally who subscribe to the ToM, cToM, and/or SLF data feeds. This
proposed change is not competitive; rather it is to remove text that no
longer apples from the Fee Schedule, thereby providing clarity to
market participants regarding the Exchange's market data fees.
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,\61\ and Rule 19b-4(f)(2) \62\ 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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\61\ 15 U.S.C. 78s(b)(3)(A)(ii).
\62\ 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#740601181159171b1919111a0007340711175a131b02"><span class="__cf_email__" data-cfemail="156760797038767a7878707b6166556670763b727a63">[email protected]</span></a>. Please include
file number SR-SAPPHIRE-2025-26 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-2025-26. 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
[[Page 33459]]
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-2025-26 and should be submitted on or before August 7,
2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\63\
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\63\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-13374 Filed 7-16-25; 8:45 am]
BILLING CODE 8011-01-P
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