Notice2025-18452

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Certain Market Data Products

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Published
September 24, 2025

Issuing agencies

Securities and Exchange Commission

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<title>Federal Register, Volume 90 Issue 183 (Wednesday, September 24, 2025)</title>
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[Federal Register Volume 90, Number 183 (Wednesday, September 24, 2025)]
[Notices]
[Pages 45967-45969]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18452]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-104006; File No. SR-CboeBZX-2025-127]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To 
Establish Certain Market Data Products

September 19, 2025.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on September 12, 2025, Cboe BZX Exchange, Inc. (the ``Exchange'' 
or ``BZX'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the Exchange. The Exchange 
filed the proposal as a ``non-controversial'' proposed rule change 
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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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 
establish certain market data products. The text of the proposed rule 
change is provided in Exhibit 5. The text of the proposed rule change 
is also available on the Commission's website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>), the Exchange's website (<a href="https://www.cboe.com/us/equities/regulation/rule_filings/bzx/">https://www.cboe.com/us/equities/regulation/rule_filings/bzx/</a>), and at the principal office of 
the Exchange.

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 establish the following feeds in 
connection with its proposed rule change to introduce Complex Orders: 
\5\ BZX Options Depth for the Exchange's Complex Order Book, BZX 
Options Top for the Exchange's Complex Order Book and BZX Options 
Auction Feed for the Exchange's Complex Order Book (collectively, the 
``Exchange's Complex Order Feeds'').\6\
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    \5\ See SR-CboeBZX-2025-126.
    \6\ The Exchange intends to submit a separate rule filing to 
establish fees for the Exchange's Complex Order Feeds.
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    Currently, the Exchange offers BZX Options Depth \7\ and BZX 
Options Top \8\ market data feeds for its Simple Book.\9\ In connection 
with its proposed rule change to implement Complex Orders,\10\ the 
Exchange now proposes to also include the applicable feeds for the 
Complex Order Book,\11\ as the Exchange's affiliates currently do.\12\
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    \7\ See Rule 21.15(b)(1).
    \8\ See Rule 21.15(b)(2).
    \9\ See Rule 16.1.
    \10\ See supra note 5.
    \11\ Id.
    \12\ See e.g., Cboe EDGX Rule 21.15(b)(1), 21.15(b)(2) and 
21.15(b)(5). Noting that all three feeds: EDGX Options Depth, EDGX 
Options Top and EDGX Options Auction Feed, offer separate data feeds 
for the EDGX Simple Book and EDGX Complex Order Book as such terms 
are defined in EDGX Rule 21.20.
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    The BZX Options Depth is a data feed that currently offers depth of 
book quotations and execution information based on options orders 
entered into the Simple Book. As proposed, the Exchange would offer an 
additional market data feed for BZX Options Depth that would contain 
depth of book quotations and execution information based on options 
orders entered into the Complex Order Book. BZX Options Top is a data 
feed that currently offers top of book quotations and execution 
information based on option orders entered into the Simple Book. As 
proposed, the Exchange would offer an additional market data feed for 
BZX Options Top that would contain top of book quotations and execution 
information based on options orders entered into the Complex Order 
Book. Lastly, the Exchange proposes to offer a new market data feed, 
BZX Options Auction Feed, which will provide information regarding the 
current status of price and size information related to auctions 
conducted by the Exchange for the Complex Order Book. The Exchange's 
Complex Order Feeds,

[[Page 45968]]

similar to the existing BZX Options Depth and BZX Options Top market 
data feeds for its Simple Book, are all real-time market data feeds.
    The Exchange notes that the Exchange's Complex Order Feeds shall 
contain the same fields as the Exchange's affiliates, with the 
exception that there may be minor differences across the exchanges to 
account for differences in trading venues, such as Cboe Exchange, Inc. 
offering a Global Trading Hours session.\13\ The Exchange's Complex 
Order Feeds do not contain any new data fields that are not already 
included in the Exchange's affiliates applicable data feeds. Each of 
the Exchange Complex Order Feeds can help subscribers make informed 
investment decisions and operate in the same manner as the Exchange's 
affiliated options exchange feeds as well as the existing BZX Options 
Depth and BZX Options Top market data feeds for the Simple Book. 
Further, market participants may continue to receive the existing BZX 
Options Depth and BZX Options Top market data feeds for the Simple 
Book, and are not required to purchase the proposed Exchange Complex 
Order Feeds.\14\
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    \13\ See Cboe Titanium U.S. Options Complex Auction Multicast 
PITCH Specification (specifying details for the Exchange's and its 
affiliates Complex Auction feeds); see also Cboe Titanium U.S. 
Options Complex Multicast TOP Specification (specifying details for 
the Exchange's and its affiliates Complex Top feeds); see also Cboe 
Titanium U.S. Options Complex Multicast PITCH Specification 
(specifying details for the Exchange's and its affiliates Complex 
Depth feeds). All three specifications lay out the fields provided 
across the exchanges for these three feeds.
    \14\ The Exchange intends to submit a separate filing to 
establish fees for these products.
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Implementation Date
    In connection with the proposed rule change to implement Complex 
Orders,\15\ the Exchange proposes to implement this change on October 
13, 2025; however, this date may be subject to change. The Exchange 
will announce via Exchange Notice the implementation date of the 
proposed rule change.
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    \15\ See supra note 5.
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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.\16\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \17\ 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) \18\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. This proposal is in keeping with those principles 
in that it promotes increased transparency through the dissemination of 
the optional Exchange Complex Order Feeds to those interested in paying 
to receive any or all of these data feeds.
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    \16\ 15 U.S.C. 78f(b).
    \17\ 15 U.S.C. 78f(b)(5).
    \18\ Id.
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    The Exchange also believes this proposal is consistent with Section 
6(b)(5) of the Act because it protects investors and the public 
interest and promotes just and equitable principles of trade by 
providing investors with new options for receiving market data as 
requested by potential purchasers. The proposed rule change would 
benefit investors by facilitating their prompt access to the value-
added information in connection with the launch of Complex Orders. All 
three of the proposed Exchange Complex Order Feeds can enable market 
participants to make informed decisions on trading on the Exchange's 
Complex Order Book by using the Exchange Complex Order Feeds to assess 
current market conditions that directly affect such decisions.
    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.'' \19\
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    \19\ 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. 
This proposed addition of the Exchange Complex Order Feeds provides 
investors with additional options for receiving market data, which was 
a primary goal of the market data amendments adopted by Regulation 
NMS.\20\
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    \20\ See Regulation NMS Adopting Release, supra, at 37503.
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    The proposed Exchange Complex Order Feeds are designed for firms 
that are interested in gaining insight into the real time market data 
for the Complex Order Book. 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 
Exchange activity to market participants making routing decisions 
concerning their options order.
    As mentioned above, the Exchange's affiliated options exchanges 
already offer these feeds.\21\ As the Exchange has proposed to 
implement Complex Orders--creating a Complex Order Book, and the 
Exchange now proposes to implement similar data feeds that its 
affiliated options exchanges already offer for their own Complex Order 
Books.
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    \21\ See supra note 12.
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    In summary, the proposed Exchange Complex Order Feeds will help to 
protect a free and open market by providing additional real-time market 
data (offered on an optional basis) to the marketplace and by providing 
investors with greater choices. Additionally, the proposal would not 
permit unfair discrimination because the proposed Exchange Complex 
Order Feeds will be available to all market participants.

[[Page 45969]]

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. Rather, the Exchange 
believes that the proposed Exchange Complex Order Feeds will enhance 
competition by providing a new option for receiving market data to 
market participants. The proposed Exchange Complex Order Feeds will 
also further enhance competition between exchanges as other exchanges 
also offer market data feeds for their own complex order books.\22\
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    \22\ See Securities Exchange Act Release No. 85207 (February 27, 
2019), 84 FR 7963 (March 5, 2019) (SR-EMERALD-2019-09) (Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change to 
Establish MIAX Emerald Top of Market Data Feed, MIAX Emerald Complex 
Top of Market Data Feed, MIAX Emerald Administrative Information 
Subscriber Data Feed, and MIAX Emerald Order Feed).
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    Additionally, the Exchange believes the proposed rule change does 
not impose any burden on intramarket competition that is not necessary 
or appropriate in furtherance of the purposes of the Act. Market 
participants are not required to purchase the proposed Exchange Complex 
Order Feeds. Rather, the Exchange is making these additional order 
feeds available, and firms may choose to receive (and pay for) this 
data based on their own business needs. Potential purchasers may 
request the data at any time if they believe it to be valuable or may 
decline to purchase such data.

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

    Because the foregoing proposed rule change does not:
    A. significantly affect the protection of investors or the public 
interest;
    B. impose any significant burden on competition; and
    C. become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to Section 19(b)(3)(A) of the Act \23\ and 
Rule 19b-4(f)(6) \24\ 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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    \23\ 15 U.S.C. 78s(b)(3)(A).
    \24\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of its 
intent to file the proposed rule change, along with a brief 
description and text of the proposed rule change, at least five 
business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
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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#fa888f969fd7999597979f948e89ba899f99d49d958c"><span class="__cf_email__" data-cfemail="1163647d743c727e7c7c747f6562516274723f767e67">[email&#160;protected]</span></a>. Please include 
file number SR-CboeBZX-2025-127 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-2025-127. 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-2025-127 and should be submitted 
on or before October 15, 2025.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
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    \25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-18452 Filed 9-23-25; 8:45 am]
BILLING CODE 8011-01-P


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Indexed from Federal Register on September 24, 2025.

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