Notice2026-08181
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule To Codify a User Fee Exemption and Amend the Definition of Non-Display Usage
Primary source
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Published
April 28, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 81 (Tuesday, April 28, 2026)</title>
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[Federal Register Volume 91, Number 81 (Tuesday, April 28, 2026)]
[Notices]
[Pages 22878-22881]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-08181]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105295; File No. SR-CboeEDGX-2026-025]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Its Fees Schedule To Codify a User Fee Exemption and Amend the
Definition of Non-Display Usage
April 23, 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 April 13, 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'') proposes to
amend its Fees Schedule to codify a User Fee exemption and amend the
definition of Non-Display Usage. The text of the proposed rule change
is provided in Exhibit 5.
[[Page 22879]]
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> [sic]), 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 (i) codify a User Fee exemption to the
Market Data section of its fee schedule and (ii) amend the definition
of Non-Display Usage.\3\ As discussed further below, the User Fee
exemption is currently outlined in the Cboe Global Markets North
American Data Policies, the Exchange now proposes to codify this in its
Fee Schedule.
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\3\ The Exchange initially submitted the proposed rule change on
April 1, 2026 (SR-CboeEDGX-2026-016). On April 13, 2026, the
Exchange withdrew that filing and submitted this filing.
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First, the Exchange proposes to codify that Controlled
Distributors, are exempt from Display Usage fees \4\ for the market
data products listed on the Exchange's fee schedule (each, a ``Data
Product'') where the sole purpose of receiving the data is for software
development, quality assurance, testing, sales support relating to
redistribution, or for technical monitoring of systems using a Product
and not in support of other commercial/business functions
(collectively, the ``Permitted Purposes). In connection with codifying
the Display Usage exemption, the Exchange also proposes to codify the
definitions of Controlled Distributor and Display Usage within its Fee
Schedule for clarity; both definitions currently exist within the Cboe
North American Data Policies. The Exchange has previously applied the
User Fee exemption, and while there is no substantive change to how the
Exchange applies this, it proposes to formally codify this practice to
be within its Fee Schedule.
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\4\ Display Usage means the access to and/or use of a Market
Data product by User via a graphical user interface, application or
other medium which displays data. See Cboe Global Markets North
American Data Policies. The Exchange proposes to codify the
definition of ``Displayed Usage'' in the Definitions section of the
Market Data Fees schedule in the Exchange's Fees Schedule for
transparency and clarity. Display Usage fees refer to Processional
and Non-Professional User fees, as well as Enterprise or Digital
Media fees, that are assessed for the Exchange Market Data products
set forth in the Exchange's fee schedule, as applicable.
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By way of background, Controlled Distributors both (i) provide data
to a User and (ii) control the entitlements of and display of
information to such User.\5\ Meaning, Controlled Distributors entitle
individual Users to view the data on a pre-existing Display
application. Controlled Distributors are charged with tracking the
Users which it enables and, is assessed the appropriate corresponding
Professional and/or Non-Professional user fees, as applicable.\6\ The
Exchange now proposes to specify in its Fee Schedule that when a Data
Product is used for a Permitted Purpose, Users shall not be charged a
Display Usage fee as sets forth in the Exchange's fee schedule.
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\5\ See Cboe Global Markets North American Data Policies. The
Exchange proposes to codify the definition of an ``Controlled
Distributor'' in the Definitions section of the Market Data Fees
schedule in the Exchange's Fees Schedule for transparency and
clarity.
\6\ See EDGX Equities Fee Schedule. As noted above, Display
Usage fees are assessed at different rates depending on (i) if the
User is a Professional user or a Non-Professional and (ii) for the
specific Data Product as set for the Exchange's Market Data.
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The second change the Exchange seeks to make, is to amend the
definition of Non-Display Usage. The existing definition covers any
method of access of a Data Product that involves access or use by a
machine or automated device without access or use of a display by a
natural person or persons. The Exchange now seeks to amend this
definition to (i) include the facilitation of access and (ii) add that
the purpose must not be solely in support of display for a natural
person.
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.\7\ Specifically, the
Exchange also believes the proposed rule change is consistent with
Section 6(b)(4) of the Act,\8\ 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.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \9\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
\9\ 15 U.S.C. 78f(b)(5).
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User Fee Exemption
In particular, the exemption is designed to provide for the
equitable allocation of reasonable dues, fees and other charges among
its members and other recipients of Exchange data. For example, Display
Usage of Data Products solely for the enumerated Permitted Purposes
does not directly generate revenue. As such, the Exchange believes it
equitable to not charge for such usage. Other exchanges and market data
offerings have also taken a similar approach when charging for these
uses \10\ and such exemptions for these purposes are generally accepted
within the industry to not be fee liable. The Exchange believes that
proposing to codify this exemption is reasonable as no fees will be
assessed where there are Permitted Purposes.
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\10\ See e.g., MIAX Exchange Group Market Data Policies, Section
10 and UTP Plan Administration Data Policies, Administrative Usage
Policy--Internal Use Only.
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The Exchange notes that all of the Data Products are distributed
and purchased on a voluntary basis, in that neither the Exchange nor
market data distributors are required by any rule or regulation to make
these data products available. Distributors (including vendors) and
Users can therefore discontinue use at any time and for any reason,
including due to an assessment of the reasonableness of fees charged.
Further, the Exchange is not required to make any proprietary data
products available or to offer any specific pricing alternatives to any
customers.
Additionally, the Exchange believes the exemption is equitable and
non-discriminatory in that it applies uniformly to similarly situated
market participants (i.e., all Controlled Distributors whose Users use
a Data Product solely for a Permitted Purpose). Further, the Exchange
notes that it is equitable and not unfairly discriminatory for this to
only apply to Display Usage fees of Controlled Distributors, as
Uncontrolled Distributors \11\ only distribute Data
[[Page 22880]]
Products where Display Usage fees are not applicable.
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\11\ Uncontrolled Distributors are defined as Distributors that
do not control the entitlements of and display of information to its
Users. See EDGX Equities Fee Schedule.
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The Exchange believes that (in addition to codifying the User Fee
exemption) codifying the definitions of Display Usage and Controlled
Distributors in its Fee Schedule provides further clarity for market
participants. With all relevant terms for the Display Usage exemption
defined within the Fee Schedule, market participants will be better
able to ascertain if this exemption is applicable to them and the
specific terms of this exemption.
Non-Display Usage Definition
In particular, the proposed definition change is designed to
provide for the equitable allocation of reasonable dues, fees and other
charges among its members and other recipients of Exchange data. The
change is intended to capture changes in the evolving landscape of
technology with firms more frequently leveraging Large Language Models
(``LLMs''). Firms that facilitate the transmission of Data Products
into ``black box'' solutions (which include LLMs), may now need to
obtain non-display licensing for usage of the Data Product.
For example, under the prior definition, a firm that directly
ingested a Data Product for the purpose of feeding the data directly
into an automated trading strategy would be required to procure a
license for Non-Display. However, a firm that ingested a Data Product
for training or operating a LLM or that facilitated transmission of a
Data Product may not explicitly fall under the definition of Non-
Display Usage, despite the firm ingesting the data for a non-display
purpose. In order to facilitate more equitable outcomes between firms,
the Exchange proposes to insert this definition to ensure that Non-
Display Usage better covers the intended audience.
The intent of this revised definition is not to introduce a new or
novel concept, it is instead intended to provide further clarity on
firms that should be covered under this license with new uses of Data
Products in mind. The Exchange notes that this update better aligns
itself with industry standards as well.\12\
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\12\ See e.g., NASDAQ Data--Artificial Intelligence Policy
(Market Data--Data_AI_Policy-NASDAQ.pdf--All Documents), stating
that ``Any use of or access to Nasdaq Information including for
training of AI models must strictly adhere to the terms of the
license governing access to such Nasdaq Information, including
maintaining appropriate licenses with redistributors and service
facilitators. This includes any use that would subject the data to
the following environments outside the license.''
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The Exchange notes that all of the Data Products are distributed
and purchased on a voluntary basis, in that neither the Exchange nor
market data distributors are required by any rule or regulation to make
these data products available. Distributors (including vendors) and
Users can therefore discontinue use at any time and for any reason,
including due to an assessment of the reasonableness of fees charged.
Further, the Exchange is not required to make any proprietary data
products available or to offer any specific pricing alternatives to any
customers.
Additionally, the Exchange believes the revised definition is
equitable and non-discriminatory in that it applies uniformly to
similarly situated market participants.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
The proposed rule changes rule changes are grounded in the
Exchange's efforts to compete more effectively (e.g., by updating its
definition of Non-Display to conform with changes in the industry).
Further, the Exchange believes that these changes will not cause any
unnecessary or inappropriate burden on intramarket competition, as the
exemption applies uniformly to all Controlled Distributors, and in
turn, the ultimate end Users are not utilizing the applicable Data
Product(s) for commercial or business purposes. Further, the proposed
change to codify the User Fee exemption is not designed to address any
competitive issues. Indeed, this proposal does not create an
unnecessary or inappropriate inter-market burden on competition because
it merely clarifies the Exchange's internal process (as stated in the
Cboe Global Markets North American Data Policies) on applying the User
Fee exemption.
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 \13\ and paragraph (f) of Rule 19b-4 \14\
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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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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#0d7f786168206e6260606863797e4d7e686e236a627b"><span class="__cf_email__" data-cfemail="dba9aeb7bef6b8b4b6b6beb5afa89ba8beb8f5bcb4ad">[email protected]</span></a>. Please include
file number SR-CboeEDGX-2026-025 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-2026-025. 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-2026-025 and should be
submitted on or before May 19, 2026.
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\15\ 17 CFR 200.30-3(a)(12).
[[Page 22881]]
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-08181 Filed 4-27-26; 8:45 am]
BILLING CODE 8011-01-P
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