Notice2025-17249
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Fees for the All Cancels Report
Primary source
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Published
September 9, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 172 (Tuesday, September 9, 2025)</title>
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[Federal Register Volume 90, Number 172 (Tuesday, September 9, 2025)]
[Notices]
[Pages 43498-43500]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17249]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103867; File No. SR-CboeBZX-2025-122]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt
Fees for the All Cancels Report
September 4, 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 August 29, 2025, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') 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
Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') proposes to
adopt fees for its new offering of a market data report. 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/equities/regulation/rule_filings/BZX/">http://markets.cboe.com/us/equities/regulation/rule_filings/BZX/</a>) and at the Exchange's Office of the Secretary.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its fee schedule to adopt fees for
the All Cancels Report, effective August 25, 2025.\3\ The Exchange
recently adopted a new data product known as the All Cancels Report as
part of the Cboe Timestamping Service.\4\ The Cboe Timestamping Service
reports provide timestamp information for orders and cancels for market
participants. More specifically, the Cboe Timestamping Service reports
provide various timestamps relating to the message lifecycle throughout
the exchange system. The first report that is currently offered- the
Missed Liquidity Report--covers order messages and the second report--
Cancels Report \5\--covers cancel messages. Lastly, the recent addition
of the All Cancels Report supplements the existing Missed Cancels
Report \6\ by offering a comprehensive view of cancel behavior and
messaging activity. In comparison to the existing Missed Cancels
Report, the All Cancels Report includes all cancel-related messages
sent by the subscriber, irrespective of whether the cancel attempt was
successful or associated with a trade event.
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\3\ The Exchange initially introduced pricing for the All
Cancels Report on August 25, 2025 (SR-CboeBZX-2025-118). On August
29, 2025, the Exchange withdrew that filing and submitted this
filing.
\4\ See Securities Exchange Act Release No. 103714 (August 14,
2025), 90 FR 40406 (August 19, 2025) (SR-CboeBZX-2025-112).
\5\ In connection with the offering of this new report, the
Exchange proposes to modify the title of the current Cancels Report
to Missed Cancels Report in order to provide clarity between the
existing Cancels Report, and the new proposed All Cancels Report.
\6\ Id.
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The current Missed Cancels Report provides liquidity response time
details for orders that rest on the book where the subscribing firm
receiving the report attempted to cancel that resting order or any
other resting order within an Exchange-determined amount of time (not
to exceed 1 millisecond) after receipt of the order that executed
against the resting order and within an Exchange-determined amount of
time (not to exceed 100 microseconds) before receipt of the order that
executed against the resting order. For example, if a market
participant sends in a cancel message, but an order resting on the
Exchange order book was executed prior to the system processing the
cancel message, the Missed Cancels Report can assist the market
participant in determining by how much time that order missed being
canceled instead of executing.\7\
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\7\ For example, Participant A submits an order that is posted
to the Exchange's Book and Participant B at some point thereafter
submits a marketable order to execute against Participant A's
resting order. Within 500 microseconds of submission of Participant
B's order, Participant A sends a cancel message to cancel its
resting order. Because Participant B's order is processed at the
Matching Engine by the Exchange before Participant A's cancel
message, Participant B's order executes against Participant A's
resting order. The proposed Report would provide Participant A the
data points necessary for that firm to calculate by how much time
they missed canceling its resting order.
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In contrast, the All Cancels Report provides a comprehensive view
of cancel behavior and messaging activity when the subscriber is the
originator of
[[Page 43499]]
the cancel-related message.\8\ It is particularly useful for analyzing
cancel patterns across all market scenarios, including those where no
trade occurred. Cancel, cancel rejected, or purge/mass cancel records
for the subscriber are included, regardless of their timing or relation
to a trade.
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\8\ The report shall not include any trade records or aggressor
information.
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The All Cancels Report includes the following data elements for
cancels: (1) Message Type; \9\ (2) Date; (3) Firm ID; (4) Session Sub
ID; (5) Client Identifier; \10\ (6) Cboe Order ID; \11\ (7) Symbol; (8)
Exchange System Timestamps; \12\ (9) Matching Unit number; \13\ (10)
Queued; \14\ and (11) Port Type.\15\
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\9\ Represents if it was a cancel, mass cancel or purge, a
cancel rejected, or a quote update cancel.
\10\ The unique CIOrdID or MassCancelID assigned by the client.
\11\ The Cboe Order ID is a unique reference number assigned by
the Exchange.
\12\ Includes Network Discovery Time (which is a network
hardware switch timestamp taken at the network capture point); Order
Handler NIC Timestamp (which is a hardware timestamp that represents
when a BOE order handler server NIC observed the message); Order
Handler Received Timestamp (which is software timestamp that
represents when the FIX or BOE order handler has begun processing
the order after the socket read); Order Handler Send Timestamp
(which represents when the FIX or BOE order handler has finished
processing the order and begun sending to the matching engine);
Matching Engine NIC Timestamp (which is a hardware timestamp that
represents when the target matching engine server NIC observed the
message); and Matching Engine Transaction Timestamp (which is a
software timestamp that represents when the matching engine has
started processing an event).
\13\ Represents the matching unit number.
\14\ Flag to indicate whether a message was delayed due to
message in flight limits (i.e., a limit on the total number of
messages in flight between an order handler and a matching engine).
\15\ Refers to the port type used by the session to send the
applicable message.
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The Exchange now proposes to assess the following monthly fees for
Members and Sponsored Participants that wish to purchase the All
Cancels Report. The Exchange proposes a monthly flat fee of $1,000 for
the All Cancels Report for a subscribing firm and, if a subscribing
firm wishes to purchase both the Missed Cancels and the All Cancels
Report, a monthly flat fee of $1,500 for both reports.\16\ For a mid-
month subscription, the monthly fee shall be prorated based on the
initial date of the subscription.
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\16\ The standalone price for the Missed Cancels Report shall
remain at $1,000.
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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.\17\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \18\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \19\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. The Exchange also believes the proposed rule
change is consistent with Section 6(b)(4) of the Act, \20\ which
requires that Exchange rules provide for the equitable allocation of
reasonable dues, fees, and other charges among its Members and other
persons using its facilities.
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\17\ 15 U.S.C. 78f(b).
\18\ 15 U.S.C. 78f(b)(5).
\19\ Id.
\20\ 15 U.S.C. 78f(b)(4).
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In adopting Regulation NMS, the Commission granted self-regulatory
organizations (``SROs'') and broker dealers increased authority and
flexibility to offer new and unique market data to consumers of such
data. It was believed that this authority would expand the amount of
data available to users and consumers of such data and also spur
innovation and competition for the provision of market data. The
Exchange believes that the proposed reports are the sort of market data
product that the Commission envisioned when it adopted Regulation NMS.
The Commission concluded that Regulation NMS--by deregulating the
market in proprietary data--would itself further the Act's goals of
facilitating efficiency and competition: ``[E]fficiency is promoted
when broker-dealers who do not need the data beyond the prices, sizes,
market center identifications of the NBBO and consolidated last sale
information are not required to receive (and pay for) such data. The
Commission also believes that efficiency is promoted when broker-
dealers may choose to receive (and pay for) additional market data
based on their own internal analysis of the need for such data.'' \21\
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\21\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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By removing ``unnecessary regulatory restrictions'' on the ability
of exchanges to sell their own data, Regulation NMS advanced the goals
of the Act and the principles reflected in its legislative history. The
All Cancels Report provides investors with new options for receiving
market data, which was a primary goal of the market data amendments
adopted by Regulation NMS.\22\
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\22\ See Regulation NMS Adopting Release, supra, at 37503.
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The All Cancels Report is designed for Members and Sponsored
Participants that are interested in gaining insight into latency in
connection with their respective cancel messages. The Exchange believes
that providing this optional data to interested market participants for
a fee is consistent with facilitating transactions in securities,
removing impediments to and perfecting the mechanism of a free and open
market and a national market system, and, in general, protecting
investors and the public interest because it provides additional
information and insight to subscribing market participants regarding
their trading activity on the Exchange. More specifically, the proposed
report provides greater visibility of cancel behavior and messaging
activity--particularly for analyzing cancel patterns across all market
scenarios, including those where no trade occurred. information and
insight into their trading activity on the Exchange.
The Exchange believes the fee proposals for the All Cancels Report
is reasonable as the Exchange is offering any Member or Sponsored
Participant access to subscribe to this report in the subscribing
firm's sole discretion based on their unique business needs. The report
is optional for Members and Sponsored Participants to subscribe to if
they believe it to be helpful and is not required for Members or
Sponsored Participants to purchase in order to access the Exchange.
Additionally, a subscribing firm may cancel their usage of this report
at any time.
The Exchange believes its proposed fee for the All Cancels Report
is reasonable as it's a modest, flat fee of $1,000/month, the same as
the existing Missed Cancels Report.\23\ Furthermore, the Exchange
proposes to offer a bundled rate of $1,500 to a Member or
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Sponsored Participant that wishes to purchase both of these reports.
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\23\ See BZX Equities Fee Schedule.
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The proposal would also not permit unfair discrimination as the All
Cancels Report will be available to all Members and Sponsored
Participants, who may opt to subscribe to the report, and will help to
protect a free and open market by continuing to provide additional non-
core data (offered on an optional basis for a fee) to the marketplace
and by providing investors with greater choices.\24\ As such, the
Exchange believes that the proposed fees are reasonable.
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\24\ See Sec. Indus. Fin. Mkts. Ass'n (SIFMA), Initial Decision
Release No. 1015, 2016 SEC LEXIS 2278 (ALJ June 1, 2016) (finding
the existence of vigorous competition with respect to non-core
market data). See also the decision of the United States Court of
Appeals for the District of Columbia Circuit in NetCoalition v. SEC,
615 F.3d 525 (D.C. Cir. 2010) (``NetCoalition I'') (upholding the
Commission's reliance upon competitive markets to set reasonable and
equitably allocated fees for market data).
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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 believes the
reports will contribute to robust competition among national securities
exchanges. The All Cancels Report further enhances competition between
exchanges by allowing the Exchange to expand its product offerings to
include an additional report similar to reports that are currently
offered by other exchanges.\25\
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\25\ MIAX Emerald offers a Liquidity Taker Event Report,
analogous to the Exchange's Missed Liquidity Report under its Cboe
Timestamping Services. See MIAX Emerald Rule 531. Although not
clearly defined, the Exchange believes that MIAX Emerald's Liquidity
Taker Event Report also provides information relating to cancel
messages. Particularly, MIAX Emerald Liquidity Taker Event Report
provides, among other things, data relating to the ``type of each
response submitted by the Recipient Member.'' See MIAX Emerald Rule
5.31(a)(iii)(C). MIAX Emerald's technical specifications outline the
various types of available liquidity messages including, Simple Mass
Quote Cancel Request and Mass Liquidity Cancel Request. See MIAX
Express Interface for Quoting and Trading Options, MEI Interface
Specification, Section 4.1 (Liquidity Messages), available at:
<a href="https://www.miaxglobal.com/sites/default/files/job-files/MIAX_Express_Interface_MEI_v2.2a.pdf">https://www.miaxglobal.com/sites/default/files/job-files/MIAX_Express_Interface_MEI_v2.2a.pdf</a>. The Exchange also believes
that providing the same data points for cancel messages as the data
provided for orders messages is of no materials consequence as the
Missed Cancels Report serves a similar purpose as the Missed
Liquidity Report--providing Members additional information to better
understand the efficacy of their incoming orders and cancel
messages.
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The Exchange also does not believe the proposed fee would cause any
unnecessary or inappropriate burden on intermarket competition as other
exchanges are free to introduce their own comparable reports with lower
prices to better compete with the Exchange's offerings. The Exchange
operates in a highly competitive environment, and its ability to price
the report is constrained by competition among exchanges who choose to
adopt similar products. The Exchange must consider this in its pricing
discipline in order to compete for subscribers of the Exchange's market
data via the reports. For example, proposing fees that are excessively
higher than fees for potentially similar data products would simply
serve to reduce demand for the Exchange's reports, which as discussed,
Members are under no obligation to utilize. In this competitive
environment, potential purchasers are free to choose which, if any,
similar product to purchase to satisfy their need for market
information. As a result, the Exchange believes this proposed rule
change permits fair competition among national securities exchanges.
The Exchange does not believe the proposed rule change would cause
any unnecessary or inappropriate burden on intramarket competition.
Particularly, the proposed fees apply uniformly to any purchaser in
that the Exchange does not differentiate between the different Members
and Sponsored Participants that may purchase the reports. The proposed
fees are set at a reasonable level that would allow any interested
Member or Sponsored Participant to purchase such data based on their
business needs.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
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 \26\ and paragraph (f) of Rule 19b-4 \27\
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 will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\26\ 15 U.S.C. 78s(b)(3)(A).
\27\ 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#7200071e175f111d1f1f171c0601320117115c151d04"><span class="__cf_email__" data-cfemail="dcaea9b0b9f1bfb3b1b1b9b2a8af9cafb9bff2bbb3aa">[email protected]</span></a>. Please include
file number SR-CboeBZX-2025-122 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-CboeBZX-2025-122. 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 filing 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-CboeBZX-2025-122 and should be submitted
on or before September 30, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
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\28\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-17249 Filed 9-8-25; 8:45 am]
BILLING CODE 8011-01-P
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