Notice2026-05346
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule To Adopt a New Fee Waiver for Eligible Internal Distributors
Primary source
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Published
March 19, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 53 (Thursday, March 19, 2026)</title>
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[Federal Register Volume 91, Number 53 (Thursday, March 19, 2026)]
[Notices]
[Pages 13363-13365]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05346]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105016; File No. SR-CboeEDGX-2026-012]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Its Fee Schedule To Adopt a New Fee Waiver for Eligible Internal
Distributors
March 16, 2026.
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 March 10, 2026, Cboe EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') is filing
with the Securities and Exchange Commission (``Commission'') a proposed
rule change to amend its Fee Schedule to adopt a new fee waiver for
eligible Internal Distributors. 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 amend \3\ its Fee Schedule to adopt a new
fee waiver for eligible Internal Distributors.\4\ Particularly, the
Exchange proposes to adopt a waiver of the (i) Internal Distribution
Fee and (ii) Non-Display Usage Fee, so long as the new Internal
Distributor has (i) not received the EDGX Depth Data Feed in the last
18 months and (ii) does not operate a Trading Platform.\5\ The Internal
Distributor shall be eligible for this waiver for the time it requires
to set up its systems to internally distribute this data feed; however,
such period shall not exceed three months.
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\3\ On March 2,2026, the Exchange submitted SR-CboeEDGX-2026-
009. On March 10, 2026, the Exchange withdrew that filing and
submitted this filing.
\4\ An ``Internal Distributor'' is a Distributor that receives
the Exchange Market Data product and then distributes that data to
one or more Users within the Distributor's own entity. See EDGX
Equities Exchange Fees Schedule, Market Data Fees.
\5\ The Exchange defines ``Trading Platform'' as any execution
platform operated as or by a registered National Securities Exchange
(as defined in Section 3(a)(1) of the Exchange Act), an Alternative
Trading System (as defined in Rule 300(a) of Regulation ATS), or an
Electronic Communications Network (as defined in Rule 600(b)(23) of
Regulation NMS). See EDGX Equities Fee Schedule.
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By way of background, the Exchange offers the EDGX Depth Data Feed,
which is a data feed that offers aggregated two-sided quotations for
all displayed orders entered into the system.\6\ The EDGX Depth Data
Feed benefits investors by facilitating their prompt access to real-
time market depth information contained in EDGX Depth Data. The
Exchange's Affiliates \7\ also offer similar depth-of-book data feeds.
Particularly, each of the Exchange's Affiliates offers depth-of-book
quotations based on their own quotation and trading activity that is
substantially similar to the information provided by the Exchange
through the EDGX Depth Data Feed.
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\6\ See Exchange Rule 13.8(a).
\7\ The ``Exchange's Affiliates'' or ``Affiliated Exchanges''
include Cboe BZX Exchange, Inc., Cboe BYX Exchange, Inc., and Cboe
EDGA Exchange, Inc.
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Currently, the Exchange assesses an Internal Distributor of the
EDGX Depth Data Feed an Internal Distribution fee of $1,500 per
month,\8\ Professional and Non-Professional User Fees, and a Non-
Display Usage Fee.\9\ The Exchange proposes to adopt a fee waiver
providing that the Distribution Fee and the Non-Display Usage Fee shall
be waived for new Internal Distributors that (i) do not operate a
Trading Platform and (ii) have not received the EDGX Depth Data Feed in
the last 18 months; this allows Internal Distributors time to prepare
systems to distribute this feed. The proposed waiver is only available
for the period of time required to prepare systems to distribute the
EDGX Depth data internally to its users, for a period of time not to
exceed three months.
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\8\ See EDGX Equities Exchange Fees Schedule, Market Data Fees.
\9\ The Exchange assess either a Non-Display Usage not by
Trading Platforms Fee of $2,000/month or a Non-Display Usage by
Trading Platforms of $5,000/month. Under this proposed rule, the
Non-Display Usage not by Trading Platforms Fee is the applicable fee
that shall be waived.
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To be eligible for the fee waiver for the EDGX Depth Data, the new
Internal Distributor must (i) not have received the data feed in the
last 18 months \10\ and (ii) not operate its own Trading Platform. As
discussed further below, the Exchange seeks to adopt the proposed
Internal Distributor EDGX Depth Fee Waiver to incentivize new Internal
Distributors to integrate the data feed into its system and to then
distribute this data internally to its users. The Exchange notes that
both the
[[Page 13364]]
Exchange \11\ and its Affiliates \12\ currently offer similar credits
to External Distributors for the purpose of allowing them time to
enlist new users to receive certain data feeds. The Exchange also notes
that Nasdaq Stock Market, LLC (``Nasdaq'') offers a similar waiver for
internal distributors to prepare systems and procedures to distribute
the applicable data.\13\ Specifically, the Exchange notes that Nasdaq
offers Pre-Production Waivers to distributors that require time to
prepare it systems and procedures to distribute Exchange information.
Indeed, Nasdaq offers such a waiver for their comparable data feed,
Nasdaq Depth of Book. Moreover, similar to the Nasdaq Depth of Book
waiver, the Exchange's proposed waiver is only available for a period
not to exceed 3 months.
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\10\ The Exchange notes that it has a similar 18 moth
requirement for participants to be considered eligible for the New
Uncontrolled External Distributor fee waiver. See EDGX Equities
Exchange Fees Schedule.
\11\ See EDGX Equities Exchange Fees Schedule, outlining the New
Uncontrolled External Distributor Fee Waiver and New External
Distributor Credit. While the Exchange notes that these programs are
for the Summary Depth Feed, and not the Depth Feed, it does not
believe this is of note as the Summary Depth Feed offers similar
data as the Depth Feed, noting that the Summary Depth Feed only
provides out to 5 price levels, but it also includes the individual
last sale information, Market Status, Trading Status, and Trade
Break messages (see Exchange Rule 13.8(f)).
\12\ See EDGA Equities Exchange Fee Schedule, outlining the New
External Distributor Credit; see also BZX Equities Exchange Fee
Schedule, outlining the New External Distributor Credit; see also
BYX Equities Exchange Fee Schedule, outlining the New External
Distributor Credit. While the Exchange notes that these programs are
for the Summary Depth Feed, and not the Depth Feed, it does not
believe this is of note as the Summary Depth Feed offers similar
data as the Depth Feed, noting that the Summary Depth Feed only
provides out to 5 price levels, but it also includes the individual
last sale information, Market Status, Trading Status, and Trade
Break messages (see EDGA Rule 13.8(f)); BZX Rule 11.22(m); and BYX
Rule 11.22(k)).
\13\ See e.g., Nasdaq Equities 7 Pricing Schedule, Section 112.
Fee Waivers.
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The Exchange also proposes to remove the asterisks in the BZX Depth
section of its fee schedule, that are currently appended to the terms,
Non-Display Usage not by Trading Platforms, Non-Display Usage by
Trading Platforms, and Enterprise Fee, and to replace them with numbers
linked to footnotes.
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.\14\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \15\ 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
Section 6(b)(4) of the Act,\16\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Members and other persons using its facilities.
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\14\ 15 U.S.C. 78f(b).
\15\ 15 U.S.C. 78f(b)(5).
\16\ 15 U.S.C. 78f(b)(4).
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First, the Exchange notes that the EDGX Depth Data Feed is
distributed and purchased on a voluntary basis, in that neither the
Exchange nor data distributors are required by any rule or regulation
to make these data products available. Internal Distributors can
therefore discontinue use at any time and for any reason, including an
assessment of the reasonableness of fees charged. As discussed above,
Nasdaq offers similar fee waivers to internal distributors of market
data.\17\ The Exchange believes that, by providing the fee waiver for
eligible Internal Distributors of the EDGX Depth Data Feed, which is
similar to those offered by other U.S. equities exchanges, the proposed
waiver increases investor choice and helps remove impediments to, and
perfect the mechanism of, a free and open market and a national market
system. Further, the Exchange is not required to make any proprietary
data products available or to offer any specific pricing alternatives
to any customers. Although the Exchange is not required to make any
data, including depth data, available through its market data platform,
the Exchange believes that making such data available increases
investor choice, and contributes to a fair and competitive market.
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\17\ Supra note 11.
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Additionally, the proposed waiver for Internal Distributors of the
EDGX Depth Data Feed is intended to incentivize eligible Internal
Distributors to integrate the EDGX Depth Data Feed into its system and
distribute it internally to its users. Internal Distributors require
data feeds for testing and development in order to enable integration
and distribution of market data feeds to internal users.\18\ In order
for Internal Distributors to distribute any one data feed, they need
time for software development to integrate the data feed itself into
its platform and program all of the different messages, fields and
flags.\19\ The Exchange notes that the proposed fee waivers only apply
for the period of time required to prepare systems in order to
distribute the data feed internally, and shall not exceed three months.
Thus, the Exchange believes it is reasonable not to subject eligible
Internal Distributors to fees, specifically the Internal Distributor
Fee and the Non-Display Usage not by Trading Platforms Fee, until such
time they are able to distribute the EDGX Depth Data Feed. The Exchange
also believes that the proposed fee waivers promote just and equitable
principles of trade by not assessing fees upon eligible Internal
Distributors of the EDGX Depth Data Feed until the Internal
Distributors are ready to internally distribute the EDGX Depth Data
Feed. Ultimately, the Exchange believes that this fee waiver for
Internal Distributors reduces the cost of system development for new
internal distributors, thereby lowering their barriers to entry.
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\18\ The Exchange notes that while Non-Professional User Fees
and Professional User Fees are assessed, no such waiver is needed
for this program as there will be no user receiving such data until
the Internal Distributor has integrated the feed and is internally
distributing it. At that time, this waiver no longer applies, and
the Non-Professional and Professional User Fees will be assessed in
accordance with the Fee Schedule in addition to the Internal
Distributor Fee of $2,000/month and the Non-Display Usage not by
Trading Platforms Fee of $5,000/month.
\19\ Distributors are responsible for the development and
maintenance of a feed in accordance with the Exchange provided spec.
See e.g., Cboe Titanium US Equities/Options Multicast Depth of Book
(PITCH) Specification.
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As noted above, this proposed waiver only applies to Internal
Distributors and does not apply to External Distributors. The Exchange
notes that it currently offers similar fee waivers for External
Distributors for the EDGX Summary Depth Data Feed and new External
Distributors may take advantage of the current programs offered by the
Exchange.\20\ While the Exchange notes that fee waiver for the BZX
Summary Depth Data Feed is for External Distributors, and the Summary
Depth
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Feed and not the Depth Feed, The Exchange does not believe this is of
note as the Summary Depth Feed offers similar data as the Depth Feed.
Specifically, while the Summary Depth Feed only provides out to 5 price
levels, it also includes the individual last sale information, Market
Status, Trading Status, and Trade Break messages.
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\20\ See BYX Equities Exchange Fees Schedule, outlining the New
Uncontrolled External Distributor Fee Waiver and New External
Distributor Credit. While the Exchange notes that these programs are
for the Summary Depth Feed, and not the Depth Feed, it does not
believe this is of note as the Summary Depth Feed offers similar
data as the Depth Feed, noting that the Summary Depth Feed only
provides out to 5 price levels, but it also includes the individual
last sale information, Market Status, Trading Status, and Trade
Break messages (see Exchange Rule 13.8(f)).
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Additionally, an Internal Distributor that operates a Trading
Platform is not eligible for this waiver. The intent of the waiver is
to aid firms who seek access to trade on the Exchange. This waiver is
intended to help with initial startup costs of connecting to the
Exchange that may hinder some smaller firms from seeking access. For
this reason, the Exchange believes the proposed rule change is
consistent with Section 6(b)(4) of the Act, which requires that
Exchange rules provide for the equitable allocation of reasonable dues,
fees, and other charges among its Members and other persons using its
facilities.
Finally, allowing eligible Internal Distributors time to prepare
systems to ingest and distribute the EDGX Depth Data Feed ensures such
systems are properly established. Thus, the Exchange believes the
proposed fee waivers foster cooperation and coordination with persons
engaged in processing information with respect to and facilitating
transactions in securities.
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 intramarket or intermarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act. The
proposed rule change is grounded in the Exchange's efforts to assist in
mitigating business costs (i.e., the costs associated with the
development of systems required to distribute the EDGX Depth Data Feed)
for eligible Internal Distributors. The Exchange does not believe that
the proposed rule change will impose any burden on intramarket
competition because the proposed fee waivers apply uniformly to all
market participants, that do not operate a Trading Platform, seeking to
distribute the DGX Depth Data Feed internally. The Exchange does not
believe that the proposed fee waivers will create an undue burden on
intermarket competition because use of the EDGX Depth Data Feed is
optional and based on the business needs of each market participant.
Additionally, the Exchange notes that at least one U.S. equities
exchange offers a similar fee waiver for internal market data
distributors.\21\ As a result, the Exchange believes this proposed rule
change permits fair competition among national securities exchanges.
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\21\ Supra note 11.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \22\ and paragraph (f) of Rule 19b-4 \23\
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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\22\ 15 U.S.C. 78s(b)(3)(A).
\23\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#295b5c454c044a4644444c475d5a695a4c4a074e465f"><span class="__cf_email__" data-cfemail="a5d7d0c9c088c6cac8c8c0cbd1d6e5d6c0c68bc2cad3">[email protected]</span></a>. Please include
file number SR-CboeEDGX-2026-01 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-CboeEDGX-2026-012. 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-CboeEDGX-2026-012 and should be
submitted on or before April 9, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-05346 Filed 3-18-26; 8:45 am]
BILLING CODE 8011-01-P
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