Notice2025-18939
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Market Data Feed Descriptions and Fees
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
September 30, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 187 (Tuesday, September 30, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 187 (Tuesday, September 30, 2025)]
[Notices]
[Pages 47096-47105]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18939]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104049; File No. SR-Phlx-2025-53]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Market
Data Feed Descriptions and Fees
September 25, 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 September 24, 2025, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III, below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend (1) Phlx's market data feed
descriptions at Options 3, Section 23, Data Feeds and Trade
Information; and (2) Phlx's market data pricing at Options 7, Section
9, B, Port Fees, and Section 10, Proprietary Data Feeds Fees, to set
fees for two new feeds, the Trades Feed and the Spread Feed.
While these amendments are effective upon filing, the Exchange will
implement this rule change on or before December 20, 2025. The Exchange
will announce the operative date to members and member organizations in
an Options Trader Alert.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/phlx/rulefilings">https://listingcenter.nasdaq.com/rulebook/phlx/rulefilings</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
This proposal amends (1) Phlx's market data feed descriptions at
Options 3, Section 23, Data Feeds and Trade Information; and (2) Phlx's
market data pricing at Options 7, Section 9, B, Port Fees, and Section
10, Proprietary Data Feed Fees. Each change is described below.
Market Data Feed Descriptions
The Exchange proposes to amend its market data feed descriptions in
Options 3, Section 23, Data Feeds and Trade Information. Today, the
Exchange offers 3 market data feeds: (1) Nasdaq Phlx Top of Market, (2)
Nasdaq Phlx Order Feed, and (3) Nasdaq Phlx Depth of Market.\3\ These
data feeds provide information on both single-leg orders and complex
orders.
---------------------------------------------------------------------------
\3\ The Exchange made minor amendments to Options 3, Section
23(a) in SR-Phlx-2024-71. See Securities Exchange Act Release No.
101989 (December 30, 2024), 89 FR 106888 (December 30, 2024) (SR-
Phlx-2024-71). SR-Phlx-2024-71 is effective but not yet operative.
The amendments to SR-Phlx-2024-71 will be implemented at the same
time as this proposal.
---------------------------------------------------------------------------
At this time, the Exchange proposes to harmonize its market data
feeds at Options 3, Section 23(a) to Nasdaq ISE, LLC's (``ISE'') market
data feeds at Options 3, Section 23(a) in connection with the
technology migration. This harmonization will result in some
enhancements to its current data feed offerings. Today, ISE offers the
following market data feeds: (1) Nasdaq ISE Depth of Market Data Feed,
(2) Nasdaq ISE Order Feed, (3) Nasdaq ISE Top of Market Feed, (4)
Nasdaq ISE Trades Feed, and (5) Nasdaq ISE Spread Feed.
Nasdaq Phlx Top of Market
Currently, the Nasdaq Phlx Top of Market data feed at Options 3,
Section 23(a)(1) provides,
Nasdaq Phlx Top of Market (``TOPO'') is a direct data feed
product that includes the Exchange's best bid and offer price, with
aggregate size, based on displayable order and quoting interest on
Phlx and last sale information for trades executed on Phlx. The data
contained in the TOPO data feed is identical to the data
simultaneously sent to the processor for the OPRA and subscribers of
the data feed. The data provided for each options series includes
the symbols (series and underlying security), put or call indicator,
expiration date, the strike price of the series, and whether the
option series is available for trading on Phlx and identifies if the
series is available for closing transactions only.
The Exchange proposes to amend the description of the TOPO data
feed to align the content of the feed to the Nasdaq ISE Top of Market
Feed at Options 3, Section 23(a)(3). The Exchange proposes to provide
in the first sentence, ``. . . calculates and disseminates the
Exchange's best bid and offer position, with aggregate size (including
total size in aggregate, for Professional Order size in the aggregate
and Public Customer Order size in the aggregate), based on displayable
order and quote interest in the System.'' This proposed rule text adds
more specificity around aggregate size by noting that it includes total
size in aggregate, for Professional Order size in the aggregate
[[Page 47097]]
and Public Customer Order size in the aggregate. Today, aggregate size
on Phlx is as described in the proposed rule text. The proposed
language clarifies the current rule but does not substantively amend
the rule.
The Exchange further proposes to modify the reference to last sale
information in the definition of TOPO to align it with the content of
the comparable top of book feeds contained in the ISE, MRX and GEMX
rulebooks. This is part of the overall harmonization of the Phlx
platform with those of other Nasdaq affiliated markets in Phlx's
upcoming technology migration.\4\ Once the migration is completed, Phlx
will have five market data feeds: (i) a depth of market feed, (ii) an
order feed; (iii) a top of market feed; (iv) a trades feed; and (v) a
spreads feed that are comparable to those on ISE, MRX and GEMX.\5\
---------------------------------------------------------------------------
\4\ As noted below, the proposed rule change will be implemented
on or before December 20, 2025. See <a href="https://www.nasdaqtrader.com/MicroNews.aspx?id=OTA2024-17">https://www.nasdaqtrader.com/MicroNews.aspx?id=OTA2024-17</a>.
\5\ As noted above, this filing is modeled after the ISE
exchange, which today offers the following market data feeds: (1)
Nasdaq ISE Depth of Market Data Feed, (2) Nasdaq ISE Order Feed, (3)
Nasdaq ISE Top of Market Feed, (4) Nasdaq ISE Trades Feed, and (5)
Nasdaq ISE Spread Feed. MRX has the same five data feed categories:
depth of book, an order feed, a top of market feed, a trades feed,
and a spread feed. GEMX offers depth of book, an order feed, a top
of market feed, and a trades feed, but does not offer a spread feed
because it does not process complex orders.
---------------------------------------------------------------------------
Conforming Phlx's data feeds to those of other Nasdaq affiliated
markets will allow subscribers to reduce information processing costs
by formatting their data processing systems on a common platform for
Nasdaq markets. It will enable customers to ingest information from all
Nasdaq exchanges without modifying their intake systems to ingest
information using different exchange formats. This is a change from
current practice, in which each exchange offers its own unique set of
market data feeds, requiring subscribers to separately program their
systems to ingest information from each distinct market. As such, the
reference to last sale information \6\ in the definition of Phlx TOPO
will be removed to conform it to the content of the top of book feeds
of ISE, MRX and GEMX.\7\
---------------------------------------------------------------------------
\6\ This last sale information includes the ticker, time, option
ID, last price, last traded quantity, total traded quantity, high/
low for day, opening price and trade condition for each option
traded on Phlx.
\7\ See Supra note 4.
---------------------------------------------------------------------------
ISE, MRX and GEMX offer last sale information in a separate,
standalone data feed, the Trades Feed.\8\ As discussed in further
detail below, Phlx proposes to create a Trades Feed on the model of
ISE, MRX and GEMX. Nasdaq proposes to offer the Trades Feed at no
additional cost with the purchase of TOPO. A separate fee for the
Trades Feed will be proposed at a later date.
---------------------------------------------------------------------------
\8\ As explained below, the proposed Trades Feed for Phlx will
display last trade information, including the symbols (series and
underlying security), put or call indicator, expiration date, the
strike price of the series, and whether the option series is
available for trading on Phlx and identifies if the series is
available for closing transactions only. Last sale information will
also be included on the proposed Spread Feed, replicating the feed
available on ISE today.
---------------------------------------------------------------------------
With the proposed amendments, the description of the TOPO data feed
at Options 3, Section 23(a)(1) would provide,\9\
---------------------------------------------------------------------------
\9\ The Nasdaq ISE Top of Market Feed at Options 3, Section
23(a)(3) has a sentence that provides, ``The feed also provides
order imbalances on opening/reopening.'' ISE is separately filing to
remove that sentence from its Top Feed.
Nasdaq Phlx Top of Market (``TOPO'') calculates and disseminates
the Exchange's best bid and offer position, with aggregate size
(including total size in aggregate, for Professional Order size in
the aggregate and Public Customer Order size in the aggregate),
based on displayable order and quote interest in the System. The
data contained in the TOPO data feed is identical to the data
simultaneously sent to the processor for the OPRA and subscribers of
the data feed. The data provided for each options series includes
the symbols (series and underlying security), put or call indicator,
expiration date, the strike price of the series, and whether the
option series is available for trading on Phlx and identifies if the
---------------------------------------------------------------------------
series is available for closing transactions only.
Currently, the Nasdaq Phlx Order Feed at Options 3, Section
23(a)(2) provides,
Nasdaq Phlx Order Feed is a real-time full Limit Order book data
feed that provides pricing information for orders on the Phlx Order
book for displayed order types as well as market participant
capacity. Nasdaq Phlx Order Feed is currently provided as part of
the TOPO Plus Orders data product. The Nasdaq Phlx Order Feed
provides real-time information to enable users to keep track of the
single and complex order book(s). The data provided for each options
series includes the symbols (series and underlying security), put or
call indicator, expiration date, the strike price of the series, leg
information on complex strategies and whether the option series is
available for trading on Phlx and identifies if the series is
available for closing transactions only. The feed also provides
auction and exposure notifications and order imbalances on opening/
reopening (size of matched contracts and size of the imbalance).
The Exchange proposes to amend the description of the Nasdaq Phlx
Order Feed or ``Order Feed,'' as proposed, to align the content of the
feed to the Nasdaq ISE Top of Market Feed at ISE Options 3, Section
23(a)(2). The Exchange proposes to add in the first sentence, ``. . .
provides pricing information on new orders resting on the Phlx Order
Book (e.g. price, quantity, market participant capacity and
Attributable Order tags when provided by a Member).'' The Exchange
proposes to add examples to provide more context to the Order Feed and
to introduce Attributable Order tags. The Exchange recently adopted
Attributable Orders at Options 3, Section 7(h) \10\ that are identical
to ISE Attributable Orders Options 3, Section 7(h). The Exchange
proposes to relocate the wording regarding displayed order types to the
fourth sentence and state, ``The data provided for each options series
includes the symbols (series and underlying security), displayed order
types, order attributes (e.g., OCC account number, give-up information,
CMTA information) . . .''. The Exchange recently adopted a Reserve
Order at Options 3, Section 7(g) \11\ that is identical to ISE Reserve
Orders at Options 3, Section 7(g). The Exchange will continue to
provide auction and exposure notifications and order imbalances on
opening/reopening (size of matched contracts and size of imbalance) on
the Order Feed as it does now.
---------------------------------------------------------------------------
\10\ See Securities Exchange Act Release No. 101989 (December
30, 2024), 89 FR 106888 (December 30, 2024) (SR-Phlx-2024-71). SR-
Phlx-2024-71 is effective but not yet operative. The amendments to
SR-Phlx-2024-71 will be implemented at the same time as this
proposal.
\11\ Id.
---------------------------------------------------------------------------
The Exchange proposes to remove complex order details from the
Order Feed. Complex order data will be included in a new Nasdaq Phlx
Spread Feed as discussed below.\12\ Nasdaq proposes to offer the Spread
Feed at no additional cost with the purchase of the Order Feed. A
separate fee for the Spread Feed will be proposed at a later date.
---------------------------------------------------------------------------
\12\ The proposed Spread Feed will provide complex order
information, including top of market, order and trade message
components. The current top of market, orders and depth of market
feeds will continue to provide information for single leg orders.
Consolidating complex order information on the new Spread Feed will
allow customers to access all complex order information in a single,
consolidated location, as is currently available on ISE and MRX.
---------------------------------------------------------------------------
The Exchange also proposes to remove the sentence that provides,
``The Nasdaq Phlx Order Feed provides real-time information to enable
users to keep track of the single and complex order book(s)'' because
the Order Feed is for single-leg data only. With the proposed
amendments, the description of the TOPO data feed at Options 3, Section
23(a)(2) would provide,
Nasdaq Phlx Order Feed (``Order Feed'') provides pricing
information on new orders
[[Page 47098]]
resting on the Phlx Order book (e.g., price, quantity, market
participant capacity and Attributable Order tags when provided by a
Member). Nasdaq Phlx Order Feed is currently provided as part of the
TOPO Plus Orders data product. The data provided for each options
series includes the symbols (series and underlying security),
displayed order types, order attributes (e.g., OCC account number,
give-up information, CMTA information), put or call indicator,
expiration date, the strike price of the series, and whether the
option series is available for trading on Phlx and identifies if the
series is available for closing transactions only. The feed also
provides auction and exposure notifications and order imbalances on
opening/reopening (size of matched contracts and size of the
imbalance).
Currently, the Nasdaq Phlx Depth of Market data feed at Options 3,
Section 23(a)(3) provides,
Nasdaq Phlx Depth of Market is a data product that provides: (i)
order and quotation information for individual quotes and orders on
the order book; (ii) last sale information for trades executed on
Phlx; (iii) auction; and (iv) an Imbalance Message which includes
the symbol, side of the market, size of matched contracts, size of
the imbalance, and price of the affected series. The data provided
for each options series includes the symbols (series and underlying
security), put or call indicator, expiration date, the strike price
of the series, and whether the option series is available for
trading on Phlx and identifies if the series is available for
closing transactions only. The feed also provides order imbalances
on opening/reopening (size of matched contracts and size of the
imbalance) and exposure notifications, with market participant
capacity.
The Exchange proposes to amend the description of the Nasdaq Phlx
Depth of Market data feed or ``Depth of Market Feed,'' as proposed, to
align the content of the feed to the Nasdaq ISE Depth of Market Data
Feed at ISE Options 3, Section 23(a)(1). The Exchange proposes to amend
the first sentence to state, ``. . . is a data feed that provides full
order and quote depth information for individual quotes and orders on
the order book and last sale information for trades executed on Phlx.''
This amendment is non-substantive as it merely rewords the current
sentence to align it to the first sentence of ISE Options 3, Section
23(a)(1). The Exchange proposes to remove the reference to auction
information and the ``Imbalance Message which includes the symbol, side
of the market, size of matched contracts, size of the imbalance, and
price of the affected series.'' The Exchange would continue to offer
``order imbalance information on opening/reopening (size of matched
contracts and size of the imbalance),'' however, as indicated in the
final sentence of the description. The only substantive difference
between the old and the new feeds in this context is that the Exchange
will not provide exposure notifications with market participant
capacity information on the new Depth of Market Feed.\13\ Specifically,
the current feed identifies order exposure by capacity, such as, for
example, Customer or Firm. The new feed will no longer include that
association. The Exchange regards this to be an immaterial
modification. Both exposure notifications and market capacity
information are currently offered, and will continue to be offered, on
the Order Feed. With the proposed amendments, the description of the
Depth of Market Feed at Options 3, Section 23(a)(2) would provide,
---------------------------------------------------------------------------
\13\ The new Depth of Market Feed will, however, include a
tracking number not included in the old feed, which will also be
provided on the Exchange's other market data feeds, allowing
participants to keep track of orders across data feeds, as discussed
further below.
Nasdaq Phlx Depth of Market (``Depth of Market Feed'') is a data
feed that provides full order and quote depth information for
individual quotes and orders on the order book and last sale
information for trades executed on Phlx. The data provided for each
options series includes the symbols (series and underlying
security), put or call indicator, expiration date, the strike price
of the series, and whether the option series is available for
trading on Phlx and identifies if the series is available for
closing transactions only. The feed also provides order imbalances
on opening/reopening (size of matched contracts and size of the
---------------------------------------------------------------------------
imbalance).
Today, ISE offers the Nasdaq ISE Trades Feed (``Trades Feed'') at
Options 3, Section 23(a)(4). This feed displays last trade
information.\14\ The data provided for each option series includes the
symbols (series and underlying security), put or call indicator,
expiration date, the strike price of the series, and whether the option
series is available for trading on ISE and identifies if the series is
available for closing transactions only. The Exchange proposes to adopt
a market data feed identical to the Trades Feed at proposed Phlx
Options 3, Section 23(a)(4) and title the feed the ``Nasdaq Phlx Trades
Feed'' or ``Trades Feed.'' As adopted, Phlx Options 3, Section 23(a)(4)
will provide:
---------------------------------------------------------------------------
\14\ The last sale information includes the time of the trade,
instrument ID, cross ID, transaction price and current number of
contracts traded for each option traded on Phlx.
Nasdaq Phlx Trades Feed (``Trades Feed'') displays last trade
information. The data provided for each option series includes the
symbols (series and underlying security), put or call indicator,
expiration date, the strike price of the series, and whether the
option series is available for trading on Phlx and identifies if the
---------------------------------------------------------------------------
series is available for closing transactions only.
Today, ISE offers a Nasdaq ISE Spread Feed (``Spread Feed'') at
Options 3, Section 23(a)(5). The ISE Spread Feed consists of: (1)
options orders for all Complex Orders (i.e., spreads, buy-writes, delta
neutral strategies, etc.); (2) full Complex Order depth information,
including prices, side, size, capacity, Attributable Complex Order tags
when provided by a Member, and order attributes (e.g., OCC account
number, give-up information, CMTA information), for individual Complex
Orders on the Exchange book; (3) last trades information; and (4)
calculating and disseminating ISE's complex best bid and offer
position, with aggregated size (including total size in aggregate, for
Professional Order size in the aggregate and Priority Customer Order
size in the aggregate), based on displayable Complex Order interest in
the System. The feed also provides Complex Order auction notifications.
The Exchange proposes to adopt a market data feed identical to the
Spread Feed at proposed Phlx Options 3, Section 23(a)(5) and title the
feed the ``Nasdaq Phlx Spread Feed'' or ``Spread Feed.'' As adopted,
Options 3, Section 23(a)(5) will provide:
Nasdaq Phlx Spread Feed (``Spread Feed'') is a feed that
consists of: (1) options orders for all Complex Orders (i.e.,
spreads, buy-writes, delta neutral strategies, etc.); (2) full
Complex Order depth information, including prices, side, size,
capacity, Attributable Complex Order tags when provided by a member
or member organization, and order attributes (e.g., OCC account
number, give-up information, CMTA information), for individual
Complex Orders on the Exchange book; (3) last trades information;
and (4) calculating and disseminating Phlx's complex best bid and
offer position, with aggregated size (including total size in
aggregate, for Professional Order size in the aggregate and Public
Customer Order size in the aggregate), based on displayable Complex
Order interest in the System. The feed also provides Complex Order
auction notifications.
Similar to ISE, Phlx complex order data would be separately
disseminated through the proposed Spread Feed.\15\
---------------------------------------------------------------------------
\15\ With this proposed change, a spread feed will be offered by
ISE, MRX and Phlx. GEMX does not offer a spread feed because it does
not process complex orders.
---------------------------------------------------------------------------
Fees
Phlx proposes to amend its Pricing Schedule at Options 7, Section
10, Proprietary Data Fees, to adopt fees for the newly proposed Nasdaq
Phlx Trades Feed and the Nasdaq Phlx Spread Feed.
The Exchange also proposes to amend its pricing schedule at Options
7,
[[Page 47099]]
Section 9(B) to change the name of the ``PHLX Orders Port Fee'' to
``Nasdaq Phlx Order Feed Port Fee'' and the name of the PHLX Depth of
Market Port Fee'' to the ``Nasdaq Phlx Depth of Market Port Fee.'' It
also proposes adding ``Nasdaq Phlx Trades Feed'' and ``Nasdaq Phlx
Spread Feed'' to the list of port fees. The proposed fees for all five
of these port is $0 per port, per month.
Nasdaq Phlx Trades Feed
Nasdaq proposes to offer the Trades Feed at no additional cost with
the purchase of TOPO.\16\
---------------------------------------------------------------------------
\16\ A fee for the Trades Feed will be proposed at a later date.
---------------------------------------------------------------------------
Nasdaq Phlx Spread Feed
Nasdaq proposes to offer the Spread Feed at no additional cost with
the purchase of the Order Feed.\17\
---------------------------------------------------------------------------
\17\ A fee for the Spread Feed will be proposed at a later date.
---------------------------------------------------------------------------
Implementation
The Exchange will implement this rule change on or before December
20, 2025.\18\ The Exchange will announce the operative date to members
and member organizations in an Options Trader Alert.
---------------------------------------------------------------------------
\18\ See <a href="https://www.nasdaqtrader.com/MicroNews.aspx?id=OTA2024-17">https://www.nasdaqtrader.com/MicroNews.aspx?id=OTA2024-17</a>. PHLX will migrate to the new platform on a symbol-by-symbol
basis over a 5 week period. The Exchange notes that the amendments
to the Phlx rules noted in SR-Phlx-2024-71 and this proposal will be
implemented as part of this same technology migration. See
Securities Exchange Act Release No. 101989 (December 30, 2024), 89
FR 106888 (December 30, 2024) (SR-Phlx-2024-71). SR-Phlx-2024-71 is
effective but not yet operative.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\19\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\20\ in particular, in that it is designed to
promote just and equitable principles of trade, 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 that its proposal
furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\21\
in particular, in that it provides for the equitable allocation of
reasonable dues, fees, and other charges among members and issuers and
other persons using any facility, and is not designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\19\ 15 U.S.C. 78f(b).
\20\ 15 U.S.C. 78f(b)(5).
\21\ See 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Proposal is an equitable allocation of fees because the
proposed fees would apply to all market participants in a uniform
manner.
The Proposal is not unfairly discriminatory. The proposed feeds are
optional data fees available to all market participants on a non-
discriminatory basis.
Market Data Feed Definitions
The Exchange believes that the proposed changes to the current data
feed offerings in Phlx Options 3, Section 23(a) are consistent with the
Act. Specifically, the Exchange believes that the proposed changes to
TOPO, the Order Feed and the Depth of Market Feed will serve to align
the information provided on Phlx to that provided in identical feeds at
ISE (namely, Nasdaq ISE Depth of Market Data Feed, Nasdaq ISE Order
Feed, and Nasdaq ISE Top of Market Feed at Options 3, Section 23(a)(1)-
(3)), thereby ensuring a more consistent technology offering across the
Nasdaq affiliated options exchanges.\22\
---------------------------------------------------------------------------
\22\ The Exchange also notes that Nasdaq MRX, LLC (``MRX'') has
identical market data feed to ISE at Options 3, Section 23(a)(1)-
(3). With this proposed change all Nasdaq options markets that offer
complex order functionality would offer identical data feeds.
---------------------------------------------------------------------------
The Exchange also believes that the modified TOPO feed will help to
protect a free and open market by providing additional specificity
concerning aggregate size. While the Exchange is removing the last sale
information from the TOPO feed, the Exchange notes that it proposes to
align it with the definitions of the comparable top of book feeds
contained in the ISE, MRX and GEMX rulebooks.
Phlx proposes to harmonize its data feeds to those of other Nasdaq
affiliated markets. Once the migration is completed, Phlx will have
five market data feeds: (i) a depth of market feed, (ii) an order feed;
(iii) a top of market feed; (iv) a trades feed; and (v) a spreads feed
\23\ that are comparable to those on ISE and MRX. Further, the proposed
Order Feed will offer information regarding additional displayed order
types and commence offering order attribute data (e.g., OCC account
number, give-up information, CMTA information). The proposed changes
will also add more specificity around aggregate size thereby promoting
transparency and clarity in the Exchange's rules.
---------------------------------------------------------------------------
\23\ As noted above, this filing is modeled after the ISE
exchange, which today offers the following market data feeds: (1)
Nasdaq ISE Depth of Market Data Feed, (2) Nasdaq ISE Order Feed, (3)
Nasdaq ISE Top of Market Feed, (4) Nasdaq ISE Trades Feed, and (5)
Nasdaq ISE Spread Feed.
---------------------------------------------------------------------------
The Exchange believes that the proposed changes to the Nasdaq Phlx
Depth of Market data feed to no longer provide exposure notifications
with market participant capacity information is consistent with the
Act, as order imbalance information would continue to be offered in the
Phlx Order Feed, and the information removed is immaterial to the Depth
Feed. The proposal will serve to further align similar data feeds at
ISE Options 3, Section 23(a)(1) and (2), thereby ensuring a more
consistent technology offering across the Nasdaq affiliated options
exchanges.
The Exchange's proposal to adopt a Phlx Trades Feed at Options 3,
Section 23(a)(4) that is identical to the ISE Trades Feed at Options 3,
Section 23(a)(4) is consistent with the Act because Phlx members and
member organizations will have the opportunity to elect to subscribe to
the same feed offered today on ISE.\24\ Similarly, the Exchange's
proposal to adopt a Phlx Spread Feed at Options 3, Section 23(a)(5)
that is identical to the ISE Spread Feed at Options 3, Section 23(a)(5)
is consistent with the Act because Phlx members and member
organizations will have the opportunity to elect to subscribe to the
same feed offered today on ISE.\25\ These offerings will ensure a more
consistent technology offering across the Nasdaq affiliated options
exchanges.
---------------------------------------------------------------------------
\24\ MRX and Nasdaq GEMX, LLC (``GEMX'') offer an identical
Trades Feed at Options 3, Section 23(a)(1)(4) to the ISE Trades Feed
and the proposed Phlx Trades Feed.
\25\ MRX offer an identical Spread Feed at Options 3, Section
23(a)(1)(5) to the ISE Spread Feed and the proposed Phlx Spread
Feed.
---------------------------------------------------------------------------
Proprietary Data Fees
The Proposed Proprietary Data Fees Are Reasonable, Equitable and Not
Unfairly Discriminatory
The Exchange believes that its proposal furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\26\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees, and
other charges among members and issuers and other persons using any
facility, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. This belief is based on the
fact that the proposal will enhance our market data products while at
the same time maintaining fees that are comparable to those charged by
similarly situated options exchanges.
---------------------------------------------------------------------------
\26\ See 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
[[Page 47100]]
Product Enhancements
The proposal offers three significant product enhancements. First,
it will offer customers additional information on complex orders.
Second, it is an essential element of Nasdaq's overall plan to
standardize market data feeds across Nasdaq options exchanges, which
will allow customers to ingest data more efficiently, and may result in
customer cost saving. Third, the apportionment of market data across
five feeds will allow customers to tailor their acquisition to only the
data they need.
Additional information: The Phlx Order Feed currently provides
information on complex orders (option order comprising of one or more
legs), such as order messages, updates on resting orders, and auction
notification messages. The proposed modifications will significantly
enhance customer insight into complex orders by associating top of
market, order, depth of market and trade information with a unique
strategy identification number that will allow customers to identify
different stages of a trade as elements of a single complex order,
providing market participants with much greater transparency into
complex order activity. Such information is already an integral part of
the feeds available on the MRX, ISE and GEMX exchanges, and its
inclusion on the Phlx exchange will expand the availability of this
invaluable information.
Data Feed Optimization: Offering the same set of data feeds on all
Nasdaq options markets will enable subscribers to ingest data more
efficiently by using the same set of specifications to ingest market
data from multiple markets. This will allow subscribers to onboard and
maintain access to market data more efficiently, which may result in
cost savings for the subscriber. The ISE, MRX and GEMX feeds already
follow this standard format; this proposal will add a fourth exchange
to that list, and Nasdaq is planning to submit future proposals to add
the BX Exchange and the Nasdaq Options Market.
Optionality: The proposed structure composed of five specialized
feeds will allow subscribers to purchase only the data they need. This
is more efficient and cost effective than requiring customers to
distill information from a single large data feed, which can be quite
large given the quantity of data generated by options trading. The
five-feed structure also allows customers to configure their hardware
to balance system loads more efficiently.
We expect our customers to take advantage of these additional
options. Our experience with the ISE Exchange--which already offers a
trades feed that is distinct from its top of book feed--shows that
nearly a third of customers take either take the top of market feed
only (approximately 17%) or the trades feed only (about 14%), while the
remaining customers take both. We expect the same pattern to hold true
for Phlx--about a third of customers will take one feed or the other,
ingesting less data than would be required for a combined feed, and the
remaining customers to take both feeds.
We expect that removing complex orders from the Order Feed and
creating the new Spread Feed will enhance customer choice in a similar
manner. The ISE Exchange offers an Order Feed that does not include
complex orders, and a Spread Feed that does. Our experience with the
ISE Exchange shows that approximately 45% of customers take either take
the Spread Feed only (approximately 39%) or the Order Feed only (about
7%), while the remaining customers take both. We expect the same
pattern to hold true for Phlx--somewhat less than half the customers
will take one feed or the other, while the remaining customers will
take both.
Comparability Analysis
As discussed in detail below, the proposed feeds are identical to
those of ISE, GEMX and MRX. Also, the proposed fees remain essentially
unchanged from the current fee schedule. Although the current TOPO feed
is proposed to be split into a new TOPO feed and a new Trades Feed, the
Trades Feed will be offered in conjunction with TOPO for no additional
cost, so there will be no change in fees for the customer. Similarly,
the current Order Feed is proposed to be split into an Order Feed and a
Spread Feed, but the new Spread Feed will be offered with the Order
Feed at no additional cost, so there will be no change in fees.
Although there is an immaterial change to the Depth Feed regarding
order exposure by capacity, the Exchange regards this to be an
immaterial modification, and therefore fees for the Depth Feed remain
essentially unchanged.
Further, for the reasons set forth below, fees for the Phlx remain
comparable to those of the ISE, GEMX, and MRX exchanges relative to
market share, as set forth below.
Calculation of Market Share
For the comparability analysis, the Exchange assessed market share
\27\ for each of the eighteen options markets based on total options
contracts traded in 2024 through October 28, 2024, as set forth in the
graph below.
---------------------------------------------------------------------------
\27\ 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. Phlx lists
proprietary products.
---------------------------------------------------------------------------
[[Page 47101]]
[GRAPHIC] [TIFF OMITTED] TN30SE25.002
Top of Market Feed
The Top of Market fees, which are not proposed to change from
current levels, are comparable to, or less than, fees charged by Nasdaq
ISE, Nasdaq GEMX and Nasdaq MRX based on relative market share.
As explained above, the Exchange proposes to remove the reference
to last sale information from TOPO and offer last sale information in a
separate, standalone data feed, the Trades Feed, to align Phlx's feeds
with the structure used by the Nasdaq ISE, GEMX and MRX exchanges.\28\
As stated above, Nasdaq proposes to offer the Trades Feed at no
additional cost with the purchase of TOPO, and plans to propose a fee
for the Trades Feed at a later date. Fees for the top of book feed are
not proposed to change.
---------------------------------------------------------------------------
\28\ Nasdaq ISE Top of Market Feed at Options 3, Section
23(a)(3); Nasdaq GEMX Top of Market Feed at Options 3, Section
23(a)(3); Nasdaq MRX Top Feed at Options 3, Section 23(a)(3).
---------------------------------------------------------------------------
As noted above, changes are being proposed to the definition of the
top of book feed for the ISE, GEMX and MRX exchanges to correct a
technical error in the existing rule text.
For ISE, the inadvertent error appears to have occurred in the
context of the September 9, 2024 technology migration by ISE to
implement enhanced functionality.\29\ While ISE's System was coded to
remove the last sale information as well as order imbalance information
on opening/reopening from the Top Feed, the Exchange inadvertently did
not remove the corresponding last sale information and order imbalances
information from the description of the feed content in Options 3,
Section 23(a)(3) in its corresponding rule change. The market data
specifications made available to subscribers were changed to reflect
the last sale information and order imbalance information being removed
at the time of each migration, which made subscribers aware of the
changes.\30\
---------------------------------------------------------------------------
\29\ See Securities Exchange Act Release No. 96818 (February 6,
2023), 88 FR 8950 (February 10, 2023) (SR-ISE-2023-06) (Proposed
Rule Change to Amend its Rules in Connection with a Technology
Migration to Enhanced Nasdaq, Inc. Functionality).
\30\ See MRX, GEMX and ISE Top of Market Feed Version 2.02,
available at <a href="https://assets.ctfassets.net/mx0rke14e5yt/5OQgAZl7u0wZu6G8lnta06/ad706073750089976bce73aee8188fe2/ISE_GEMX_MRX_Top_of_Market_Feed.pdf">https://assets.ctfassets.net/mx0rke14e5yt/5OQgAZl7u0wZu6G8lnta06/ad706073750089976bce73aee8188fe2/ISE_GEMX_MRX_Top_of_Market_Feed.pdf</a>.
---------------------------------------------------------------------------
A similar error occurred for GEMX in the context of the November 6,
2023 technology migration to implement enhanced functionality.\31\
While GEMX's System was coded to remove the last sale information as
well as order imbalance information on opening/reopening from the Top
Feed, the Exchange inadvertently did not remove the corresponding last
sale information and order imbalances information from the description
of the feed content in Options 3, Section 23(a)(3) in its corresponding
rule change. The market data specifications made available to
subscribers were changed to reflect the last sale information and order
imbalance information being removed at the time of each migration,
which made subscribers aware of the changes.\32\
---------------------------------------------------------------------------
\31\ See Securities Exchange Act Release No. 96817 (February 6,
2023), 88 FR 8922 (February 10, 2023) (SR-GEMX-2023-02) (proposed
change to amend rules in connection with the technology migration to
enhanced Nasdaq functionality).
\32\ See Supra note 30.
---------------------------------------------------------------------------
A similar error occurred for MRX in the context of the November 7,
2022 technology migration to implement enhanced functionality.\33\
While MRX's System was coded to remove the last sale information as
well as order imbalance information on opening/reopening from the Top
Feed, the Exchange inadvertently did not remove the corresponding last
sale information and order imbalances information from the description
of the feed content in Options 3, Section 23(a)(3) in its
[[Page 47102]]
corresponding rule change. The market data specifications made
available to subscribers were changed to reflect the last sale
information and order imbalance information being removed at the time
of each migration, which made subscribers aware of the changes.\34\
---------------------------------------------------------------------------
\33\ See Securities Exchange Act Release No. 95982 (October 4,
2022), 87 FR 61391 (October 11, 2022) (SR-MRX-2022-18) (proposed
rule changes in connection with technology migration to enhance
functionality); see also Securities Exchange Act Release No. 96941
(February 16, 2023), 88 FR 11490 (February 23, 2023) (SR-MRX-2023-
06) (implementing MRX market data fee changes).
\34\ See Supra note 30.
---------------------------------------------------------------------------
Although the contents of the top feeds changed in September 2024
for ISE, November 2023 for GEMX, and December 2022 for MRX, the
Exchange is aware of no customer that changed its behavior as a result
of this change. As such, customers did not perceive a significant shift
in the relative value of the data, and the fees for ISE, GEMX, and MRX
are comparable to the top of book information proposed by Phlx both
before and after the data feed change.
The proposed fees for Phlx are comparable to, or less than, the
fees charged by Nasdaq ISE, GEMX and MRX based on relative market
share. The table below compares the proposed Phlx Top of Market Feed
fees with those of ISE, GEMX and MRX.
----------------------------------------------------------------------------------------------------------------
Market share
Exchange (%) Fees
----------------------------------------------------------------------------------------------------------------
Phlx..................................... 9.2 Internal Distributor: $2,500.
External Distributor: $3,000.
Non-Pro: $1.
Professional: $40.
ISE...................................... 6.3 Professional (internal): $3,180.\35\
Professional (external): $3,180.
Internal and External: $3,180.
Non-Professional external distribution (controlled
device): $3,000.
GEMX..................................... 2.4 Professional (internal): $1,055.\36\
Professional (external): $1,055.
Professional (internal and external): $1,055.
Non-Professional external distribution (controlled
device): $1,000.
MRX...................................... 2.5 Internal: $1,515.
External: $2,020.
Non-Pro: $1.
Professional: $25.25.
----------------------------------------------------------------------------------------------------------------
ISE: The proposed (and current) fees for Phlx are less than or
comparable to ISE fees for both internal and external distribution.
Phlx proposes fees of $2,500 for internal distribution and $3,000 for
external distribution. The proposed Phlx distribution fees are less
than the ISE fees of $3,180 for internal distribution and $3,180 for
external distribution.
---------------------------------------------------------------------------
\35\ ISE Rulebook, Options 7, Section 10(H)
\36\ GEMX Rulebook, Options 7, Section 7(B)
---------------------------------------------------------------------------
The proposed (and current) Phlx fees for professional and non-
professional users are also less than or comparable to ISE fees. Phlx
charges a variable fee of $40 for professionals and $1 for non-
professionals, while ISE charges a non-professional external
distribution fee of $3,000 for non-professionals using a controlled
device. Phlx's non-professional fees are below ISE fees for less than
3,000 users. ISE does not charge professional user fees.
Overall, the proposed Phlx fees are less than or comparable to the
ISE fees, and reasonable given Phlx's market share of 9.2%,
approximately 50 percent greater than ISE's market share of 6.3%.
GEMX: The proposed (and current) fees for Phlx are comparable to
GEMX fees for both internal and external distribution relative to
market share. Phlx fees are $2,500 for internal distribution and $3,000
for external distribution. While the Phlx fees are greater than the
GEMX fees of $1,055 for internal distribution and $1,055 for external
distribution, Phlx has a market share of 9.2%, nearly four times
greater than GEMX's market share of 2.4%, and the fees are therefore
comparable relative to market share.
Phlx also charges a variable fee of $40 for professionals and $1
for non-professionals; GEMX charges a non-professional external
distribution fee of $1,000 for non-professionals using a controlled
device that is not charged by Phlx. Phlx non-professional fees are
lower than GEMX fees for fewer than 1,000 users. GEMX does not charge a
professional user fee. Overall, the proposed Phlx fees are less than or
comparable to GEMX fees, and reasonable given Phlx's market share of
9.2%, approximately four times greater than GEMX's market share of
2.4%.
MRX: The proposed (and current) fees for Phlx are comparable to MRX
fees for both internal and external distribution relative to market
share. Phlx fees are $2,500 for internal distribution and $3,000 for
external distribution. While the Phlx fees are greater than the MRX
fees of $1,515 for internal distribution and $2,020 for external
distribution, Phlx has a market share of 9.2%, nearly four times
greater than MRX's market share of 2.5%, and the fees are therefore
comparable relative to market share.
Phlx also charges a variable fee of $40 for professionals and $1
for non-professionals; MRX charges a non-professional subscriber fee of
$25.25 for professionals and $1 for non-professionals. MRX's
Professional and Non-Professional charges cover the usage of all five
MRX data products and are not assessed separately for each data
product.\37\ Overall, the proposed Phlx fees are comparable to MRX
fees, and reasonable given Phlx's market share of 9.2%, approximately
four times greater than GEMX's market share of 2.5%.
---------------------------------------------------------------------------
\37\ MRX data is comprised of Depth of Market, Order, Top of
Market, Trades, and Spread data. If a firm has one Professional
(Non-Professional) Subscriber accessing Top of Market, Order, and
Depth of Market the firm would only report the Subscriber once and
pay $25 ($1 for Non-Professional).
---------------------------------------------------------------------------
Phlx Order Feed
The proposed (and current) fees for the Phlx Order Feed are
comparable to, or less than, fees charged by Nasdaq ISE,\38\ Nasdaq
GEMX \39\ and Nasdaq MRX \40\ based on relative market share.
---------------------------------------------------------------------------
\38\ Nasdaq ISE Rulebook, Options 7, Section 10(G).
\39\ GEMX Rulebook, Options 7, Section 7(A).
\40\ MRX Rulebook, Options 7, Section 7.
---------------------------------------------------------------------------
As explained above, the Exchange proposes to remove complex order
details from the Order Feed, but will offer such information free of
charge on the Spread Feed with the purchase of an Order Feed
subscription. Such information is not currently available on the Order
Feeds of the Nasdaq ISE, Nasdaq GEMX and Nasdaq MRX exchanges, and
therefore the proposed
[[Page 47103]]
feeds are comparable to the feeds of these other exchanges.
The proposed fees for the Phlx Order Feed are comparable to, or
less than, fees charged by Nasdaq ISE, Nasdaq GEMX and Nasdaq MRX
exchanges based on relative market share. The table below compares the
proposed Phlx Order Feed fees with those of ISE, GEMX and MRX.
----------------------------------------------------------------------------------------------------------------
Market share
Exchange (%) Fees
----------------------------------------------------------------------------------------------------------------
Phlx..................................... 9.2 Internal Distributor: $3,500.
External Distributor: $4,000.
Non-Pro: $1
Professional: $40.
ISE...................................... 6.3 Internal only: $3,150.
External distribution: $3,150.
Internal and External: $3,150.
MRX...................................... 2.5 Internal: $1,515.
External: $2,020.
GEMX..................................... 2.4 Internal only: $790.
External: $790.
Internal and External: $790.
----------------------------------------------------------------------------------------------------------------
ISE: The current and proposed fees for the Phlx Order Feed are
comparable to those of ISE based on market share. Phlx proposes fees of
$3,500 for internal distribution and $4,000 for external distribution,
along with Non-Professional fees of $1 per user and Professional fees
of $40 per user. While this is greater than the ISE fees of $3,150 for
internal distribution and $3,150 for external or internal and external
distribution, Phlx's market share of 9.2% is nearly 50 percent greater
than ISE's market share of 6.3%, and the fees are therefore comparable.
MRX: The current and proposed fees for the Phlx Order Feed are
comparable to the MRX exchange fees based on market share. The proposed
Phlx fees of $3,500 for internal distribution and $4,000 for external
distribution, plus $1 for Non-Professional users and $40 per
Professional users, are greater than the MRX fees of $1,515 per month
for internal distribution and $2,020 per month for external
distribution. Phlx's market share of 9.2%, however, is nearly four
times greater than MRX's market share of 2.5%, and the fees are
therefore comparable.
GEMX: The current and proposed fees for the Phlx Order Feed are
comparable to the comparable GEMX fees based on market share. The
proposed Phlx fees of $3,500 for internal distribution and $4,000 for
external distribution, plus $1 for Non-Professional users and $40 per
Professional users, are greater than the GEMX fees of $790 per month
for internal distribution and $790 per month for external distribution
or internal and external distribution. However, Phlx's market share of
9.2% is nearly four times greater than GEMX's market share of 2.4%, and
the fees are therefore comparable relative to market share.
Phlx Depth Fees
The proposed (and current) fees for the Phlx Depth Feed are
comparable to, or less than, fees charged by Nasdaq ISE,\41\ Nasdaq
GEMX \42\ and Nasdaq MRX \43\ based on relative market share.
---------------------------------------------------------------------------
\41\ Nasdaq ISE Rulebook, Options 7, Section 10(F).
\42\ GEMX Rulebook, Options 7, Section 7(C).
\43\ MRX Rulebook, Options 7, Section 7(1)
----------------------------------------------------------------------------------------------------------------
Market share
Exchange (%) Fees
----------------------------------------------------------------------------------------------------------------
Phlx..................................... 9.2 Internal Distributor: $4,232.
External Distributor: $4,760.
Non-Pro: $1.
Pro: $42.30.
ISE...................................... 6.3 Internal only: $5,300.
External distribution: $5,300.
Non-Professional (controlled device): $5,000.
MRX...................................... 2.5 Internal: $1,515.
External: $2,020.
GEMX..................................... 2.4 Internal only: $1,580.
External: $1,580.
Non-Professional: $1,500.
Per Controlled Device: $1.
----------------------------------------------------------------------------------------------------------------
ISE: The current and proposed fees for the Phlx Depth Feed are less
than those of ISE based on market share. Phlx proposes fees of $4,232
for internal distribution and $4,760 for external distribution, along
with Non-Professional fees of $1 per user and Professional fees of
$42.30 per user. These are less than the fees charged by ISE: $5,300
for internal distribution, $5,300 for external distribution, and $5,000
for non-professional distribution on a controlled device. As the
proposed Phlx fees are less than ISE fees, notwithstanding the greater
market share, the proposed fees are reasonable.
MRX: The current and proposed fees for the Phlx Depth Feed are
comparable to the MRX exchange fees based on market share. Phlx
proposes fees of $4,232 for internal distribution and $4,760 for
external distribution, along with Non-Professional fees of $1 per user
and Professional fees of $42.30 per user. While these fees are greater
than the MRX fees of $1,515 per month for internal distribution and
$2,020 per month for external distribution, Phlx's market share of 9.2%
is nearly four times greater than MRX's market share
[[Page 47104]]
of 2.5%, and the fees are therefore comparable.
GEMX: The current and proposed fees for the Phlx Depth Feed are
comparable to the comparable GEMX fees based on market share. Phlx
proposes fees of $4,232 for internal distribution and $4,760 for
external distribution, along with Non-Professional fees of $1 per user
and Professional fees of $42.30 per user. While these fees are greater
than the GEMX fees of $1,580 per month for internal distribution,
$1,580 per month for external distribution, $1,500 for non-professional
distribution, and $1 per controlled device, Phlx's market share of 9.2%
is nearly four times greater than GEMX's market share of 2.4%, and the
fees are therefore comparable relative to market share.
Nasdaq Phlx Spread Feed Fees
Nasdaq proposes no additional fees for the Spread Feed, but rather
will offer the Spread Feed at no cost with the purchase of the Order
Feed. This will allow market participants to obtain both simple and
complex order information for a single fee. Nasdaq will propose a
separate fee for the purchase of the Order Feed at a later date.
Trades Feed
Nasdaq proposes no additional fees for the Trades Feed, but rather
will offer the Trades Feed at no cost with the purchase of TOPO. This
will allow market participants to obtain both top of book information
and trades information for a single fee. Nasdaq will propose a separate
fee for the purchase of the Trades Feed at a later date.
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 not necessary or appropriate in
furtherance of the purposes of the Act.
Market Data Definitions
The Exchange's proposal to align its existing market data feeds
(TOPO, Phlx Order Feed, and Phlx Depth of Market) to ISE's Market Data
Feeds (ISE Depth of Market Data Feed, ISE Order Feed, and ISE Top of
Market Feed) and adopt two other feeds (Phlx Trades Feed and Phlx
Spread Feed) which are identical to ISE feeds (ISE Trades Feed, and ISE
Spread Feed) does not impose an undue burden on intra-market
competition, rather it provides Phlx member and member organization
access to an equivalent amount of data currently available on ISE. All
Phlx members and member organizations may subscribe to these feeds.
The Exchange's proposal to align its existing market data feeds
(TOPO, Phlx Order Feed, and Phlx Depth of Market) to ISE's Market Data
Feeds (ISE Depth of Market Data Feed, ISE Order Feed, and ISE Top of
Market Feed) and adopt two other feeds (Phlx Trades Feed and Phlx
Spread Feed) which are identical to ISE feeds (ISE Trades Feed, and ISE
Spread Feed) does not impose an undue burden on inter-market as other
options markets may elect to offer similar feeds.
Fees
Nothing in the proposal burdens inter-market competition (the
competition among self-regulatory organizations) because approval of
the Proposal does not impose any burden on the ability of other options
exchanges to compete. As explained above, Nasdaq proposes no additional
fees for the Trades or Spread feeds, but rather will offer both at no
cost with the purchase of the TOPO or Order Feed, respectively. As
such, the proposed fees for the Spread Feed and the Trades Feed are
comparable to, and in some cases less than when compared to market
share, those of other exchanges, as discussed above.
Nothing in the Proposal burdens intra-market competition (the
competition among consumers of exchange data) because the Spread Feed
and the Trades Feed are available to any market participant at the same
price and any market participant that elects to purchase either the
Spread Feed or the Trades Feed may do so on a non-discriminatory basis.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
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)(iii) of the Act \44\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\45\
---------------------------------------------------------------------------
\44\ 15 U.S.C. 78s(b)(3)(A)(iii).
\45\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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.
---------------------------------------------------------------------------
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.
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#b3c1c6dfd69ed0dcdeded6ddc7c0f3c0d6d09dd4dcc5"><span class="__cf_email__" data-cfemail="6d1f180108400e0200000803191e2d1e080e430a021b">[email protected]</span></a>. Please include
file number SR-Phlx-2025-53 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-Phlx-2025-53. 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-Phlx-2025-53 and should be submitted on
or before October 21, 2025.
[[Page 47105]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\46\
---------------------------------------------------------------------------
\46\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-18939 Filed 9-29-25; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on September 30, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.