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
Primary source
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Published
September 24, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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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 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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