Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Introduce a Trade-by-Trade Report for BZX Options and To Amend Its Fee Schedule To Adopt Fees for the Trade-by-Trade Report

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<title>Federal Register, Volume 91 Issue 214 (Friday, November 6, 2026)</title>
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[Federal Register Volume 91, Number 214 (Friday, November 6, 2026)]
[Notices]
[Pages 70109-70112]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22653]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106802; File No. SR-CboeBZX-2026-089]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To 
Introduce a Trade-by-Trade Report for BZX Options and To Amend Its Fee 
Schedule To Adopt Fees for the Trade-by-Trade Report

November 3, 2026.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on October 21, 2026, Cboe BZX Exchange, Inc. (``Exchange'' or 
``BZX'') 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 
Exchange filed the proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 
19b-4(f)(6) thereunder.\4\ The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Cboe BZX Exchange, Inc. (``BZX'' or the ``Exchange'') proposes to 
introduce a Trade-by-Trade report for BZX Options and to amend its fee 
schedule to adopt fees for the Trade-by-Trade report. 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 introduce a Trade-by-Trade report (``TBT 
Report'') for its equity options platform (``BZX Options''), which will 
be available for purchase by Options Members and non-Options Members, 
and to amend the

[[Page 70110]]

BZX Options fee schedule to adopt fees for the TBT Report, including a 
free sample. The proposed TBT Report is based on the TBT Report 
recently adopted by the Exchange's affiliated options exchange, Cboe 
Exchange, Inc. (``Cboe Options'').\5\
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    \5\ See Securities Exchange Act Release No. 104415 (December 16, 
2025), 90 FR 59603 (December 19, 2025) (SR-CBOE-2025-088); 
Securities Exchange Act Release No. 104795 (February 10, 2026), 91 
FR 6940 (February 13, 2026) (SR-CBOE-2026-010).
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Trade-by-Trade Report
    The TBT Report will provide subscribers with comprehensive trade-
by-trade level detail for each options transaction executed on BZX 
Options. The TBT Report will be produced and updated at the end of each 
trading day and be made available to subscribers overnight after 
midnight Eastern Time (i.e., T+1), ensuring that the data is strictly 
historical and cannot be used to influence intraday trading decisions.
    Specifically, each row in the TBT Report will represent a single 
trade event and will include transaction time, underlying symbol, 
Options Symbology Initiative (``OSI'') details (e.g., root, expiry, 
strike, call/put), trade size, trade price, market context indicators 
(e.g., National Best Bid/National Best Offer, BZX Options best bid/best 
offer), side of the market (i.e., buy or sell), transaction type 
(opening or closing), and origin (i.e., the Capacity of the order, such 
as Priority Customer, Professional, broker-dealer, and Market-
Maker),\6\ as well as, for a subscriber that is an Options Member, that 
Options Member's execution IDs for both Simple Book \7\ and Complex 
Order Book \8\ trades, which will better allow for accurate linkage and 
reconstruction of trading activity.
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    \6\ The term ``Capacity'' means the capacity in which a User 
submits an order, which the User specifies by applying the 
corresponding code to the order. See BZX Rule 16.1.
    \7\ The terms ``BZX Options Book'' and ``Simple Book'' mean the 
electronic book of simple options orders maintained by the Trading 
System. See Rule 16.1.
    \8\ See Rule 21.18 (defining the Complex Order Book).
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    The Exchange anticipates a wide variety of market participants 
would purchase the TBT Report, including, but not limited to, 
individual customers, buy-side investors, and investment banks. The 
Exchange believes the proposed TBT Report will aid subscribers in 
performing detailed transaction-level analysis, compliance checks, and 
historical market reconstruction. The TBT Report may also serve as a 
foundation for analytics on liquidity, price formation, and trade 
behavior at a trade-by-trade level. The proposed TBT Report is a 
completely voluntary product, in that the Exchange is not required by 
any rule or regulation to make this data available, and potential 
subscribers are not required to purchase the TBT Report and may do so 
only if they voluntarily choose to.
Proposed Fees
    The Exchange proposes to provide in the BZX Options fee schedule 
that firms may purchase the TBT Report on a subscription basis or by ad 
hoc request for a specified month.\9\ The Exchange proposes to assess a 
monthly fee of $6,000 for subscribing to the TBT Report. The Exchange 
also proposes to adopt a fee of $4,000 per month for ad hoc requests of 
the TBT Report. An ad hoc request can be for any number of months for 
which the data is available, beginning with March 1, 2019.
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    \9\ The Exchange proposes to make clear in the fee schedule that 
a mid-month subscription or an ad hoc historical request for 
specific dates (e.g., March 17, 2023-March 31, 2023) will be 
prorated.
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    The Exchange also proposes to offer a free sample consisting of 
End-of-Day Trade by Trade Historical Data for the period July 1, 2022 
through July 31, 2022. The free sample will be available to both 
Options Members and non-Options Members who have not previously 
purchased the TBT Report or previously received a free sample. The 
Exchange believes the proposed free sample will serve as an incentive 
for new subscribers to start purchasing such data. Particularly, the 
Exchange believes it will give potential subscribers the ability to 
evaluate historical options trading data before purchasing the TBT 
Report. The Exchange notes that Cboe Options is concurrently filing a 
proposed rule change to adopt the same free sample for its TBT Report. 
The Exchange also notes that another exchange offers a free trial for 
new subscribers of a similar data product.\10\
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    \10\ See Nasdaq ISE, Options 7 Pricing Schedule, Section 10A, 
Market Data.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\11\ Specifically, the Exchange believes the proposed rule change 
is consistent with the Section 6(b)(5) \12\ requirements that the rules 
of an exchange be designed to prevent fraudulent and manipulative acts 
and practices, to promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest. 
Additionally, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \13\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers. The Exchange also believes the 
proposed fees are consistent with Section 6(b)(4) of the Act,\14\ which 
requires that the rules of an exchange provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and issuers and other persons using its facilities.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
    \13\ Id.
    \14\ 15 U.S.C. 78f(b)(4).
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    In adopting Regulation NMS, the Commission granted self-regulatory 
organizations (``SROs'') and broker-dealers increased authority and 
flexibility to offer new and unique market data to the public. It was 
believed that this authority would expand the amount of data available 
to consumers, and also spur innovation and competition for the 
provision of market data. The Exchange believes that the proposed TBT 
Report would further broaden the availability of U.S. options market 
data to investors consistent with the principles of Regulation NMS. The 
proposal also promotes increased transparency through the dissemination 
of the TBT Report. The proposed rule change would benefit investors by 
providing access to the TBT Report, which, as noted above, may aid 
subscribers in performing detailed transaction-level analysis, 
compliance checks, and historical market reconstruction. The TBT Report 
may also serve as a foundation for analytics on liquidity, price 
formation, and trade behavior at a trade-by-trade level. Additionally, 
trade-by-trade information regarding opening and closing activity 
across different option series may indicate investor sentiment, which 
can be helpful trading information. The Exchange emphasizes, however, 
that such data is not necessary for trading.
    The proposed TBT Report is also similar to an existing BZX Options 
data product, Open-Close Data. Open-Close Data is a data product that 
summarizes volume (contracts traded on BZX Options) by origin (customer 
and firm orders), original order size, and the opening or closing 
position of the order, and is available on an end-of-day and

[[Page 70111]]

intraday basis.\15\ While there are some differences between Open-Close 
Data and the TBT Report (e.g., level of detail and timing of delivery), 
the products serve similar purposes. Specifically, the TBT Report and 
Open-Close Data both provide information regarding options trading 
activity on BZX Options, which, in turn, may be used by subscribers to 
create and test trading models and analytical strategies and provide 
comprehensive insight into trading on the Exchange. The functional 
differences are the level of granularity at which a subscriber may view 
executed options transactions and the timeline on which each product is 
delivered, i.e., on an aggregated, summary level on an end-of-day or 
intraday basis (Open-Close Data), or, as proposed, on a trade-by-trade 
level delivered on a T+1 basis (the TBT Report). By offering the TBT 
Report as well as Open-Close Data, the Exchange will give subscribers 
an additional choice for historical trade data, and subscribers may 
choose to purchase the data that best suits their business needs. Given 
these similarities, and because the TBT Report is substantively 
identical to the TBT Report offered by Cboe Options,\16\ the Exchange 
believes that the proposal does not present any new or novel issues.
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    \15\ See Rule 21.15(b)(5).
    \16\ See supra note 5.
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    The Exchange believes the proposed fees are reasonable. A 
subscriber may purchase a subscription to the TBT Report for $6,000 per 
month, and may purchase the TBT Report on an ad hoc basis for $4,000 
per month of data. The Exchange currently assesses a fee of $500 per 
month for a subscription to Open-Close Data, which is the most 
comparable data product the Exchange offers, and $400 per month for ad 
hoc requests of historical Open-Close Data. The Exchange believes the 
higher proposed fees for the TBT Report are reasonable in light of the 
substantially greater content of the TBT Report. The TBT Report 
provides data on a trade-by-trade basis, while Open-Close Data provides 
data on an aggregated basis. While a subscriber to the TBT Report will 
not receive data intraday, the subscriber will receive additional data 
points because the data is not aggregated but covers every trade 
executed on BZX Options, including the time, price, size, market 
context, side, transaction type, and origin of each trade. Further, the 
relationship between the proposed subscription fee and the proposed ad 
hoc fee for the TBT Report is consistent with the relationship between 
the corresponding Open-Close Data fees, in that the ad hoc fee for each 
product is lower than the subscription fee. The proposed fees are also 
lower than the fees Cboe Options assesses for its substantively 
identical TBT Report.\17\ Furthermore, setting fees for the TBT Report 
that are not commensurate with its value relative to established fees 
for similar data products would simply serve to reduce demand for the 
Exchange's data product, which, as noted, is entirely optional. If a 
market participant views Open-Close Data as a more attractive offering 
for its specific business needs, then such market participant can 
merely choose to purchase Open-Close Data instead.
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    \17\ See supra note 5.
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    The Exchange also believes the proposed fees are reasonable as they 
would support the introduction of a new market data product that is 
designed to aid investors by providing further insight into trading on 
the Exchange. The Exchange believes the proposed fees are equitable and 
not unfairly discriminatory because they will apply uniformly to all 
subscribers, whether Options Members or non-Options Members.
    The Exchange believes that the proposed free sample for Options 
Members and non-Options Members who have not previously purchased the 
TBT Report or previously received a free sample is reasonable because 
such users would not be subject to fees for End-of-Day Trade by Trade 
Historical Data for the period July 1, 2022 through July 31, 2022. The 
proposed free sample is also reasonable as it will give potential 
subscribers the ability to evaluate historical options trading data 
prior to purchasing the TBT Report and will therefore encourage and 
promote new users to purchase the TBT Report. The Exchange believes 
that the proposed free sample is equitable and not unfairly 
discriminatory because it will apply equally to all Options Members and 
non-Options Members who have not previously purchased the TBT Report or 
previously received a free sample. As noted above, Cboe Options is 
concurrently proposing the same free sample, and another exchange 
offers a free trial to new users of a similar data product.\18\ Lastly, 
the purchase of this data product is discretionary and not compulsory.
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    \18\ See supra note 10.
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    The Exchange reiterates that the decision whether to purchase the 
TBT Report is entirely optional for all potential subscribers. No 
market participant is required to purchase the TBT Report, and the 
Exchange is not required to make the TBT Report available to all 
investors. Rather, the Exchange is voluntarily making the TBT Report 
available, as requested by customers, and market participants may 
choose to receive (and pay for) this data based on their own business 
needs. Potential purchasers may request the data at any time if they 
believe it to be valuable or may decline to purchase such data.

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. Specifically, the Exchange 
notes that both Nasdaq PHLX LLC (``PHLX'') and The Nasdaq Stock Market 
LLC (``Nasdaq'') offer the PHLX Options Trade Outline (``PHOTO'') and 
Nasdaq Options Trade Outline (``NOTO'') products,\19\ respectively, and 
that Cboe Options offers a substantively identical TBT Report.\20\ In 
this regard, the Exchange believes that its proposal will promote 
competition by permitting the Exchange to offer a data product similar 
to those offered by other options exchanges, but that contains more 
granular data reporting details on a trade-by-trade basis, rather than 
on an aggregated basis. The Exchange believes the TBT Report represents 
the type of innovation and competition that Regulation NMS sought to 
create, and is proposing the TBT Report to keep pace with changes in 
the industry and evolving customer needs.
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    \19\ PHOTO and NOTO include periodic, cumulative data for a 
particular trading session for a particular option series. Both 
reports include information regarding the aggregate number of trades 
to open a position, aggregate number of trades to close a position, 
and the origin of the trades based on the specific categories of 
market participants (i.e., customers, broker-dealers, market makers, 
etc.). See Nasdaq PHLX Options--Trade Outline (PHOTO) Intraday, 
available at: <a href="https://data.nasdaq.com/databases/PHOTO">https://data.nasdaq.com/databases/PHOTO</a>; see also 
Nasdaq Options Market--Trade Outline (NOTO) Intraday, available at: 
<a href="https://data.nasdaq.com/databases/NOTOI">https://data.nasdaq.com/databases/NOTOI</a>.
    \20\ See supra note 5.
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    The Exchange also does not believe the proposed fees would cause 
any unnecessary or inappropriate burden on intermarket competition, as 
other exchanges are free to introduce their own comparable reports with 
additional data points and lower prices to better compete with the 
Exchange's offerings. The Exchange operates in a highly competitive 
environment, and its ability to price the TBT Report is constrained by 
competition among exchanges that offer similar products. Setting fees 
that are not commensurate with the value of the TBT Report relative to 
fees for

[[Page 70112]]

similar data products would simply serve to reduce demand for the TBT 
Report, which market participants are under no obligation to purchase. 
In this competitive environment, potential purchasers are free to 
choose which, if any, similar product to purchase to satisfy their need 
for market information. As a result, the Exchange believes this 
proposed rule change permits fair competition among national securities 
exchanges.
    The Exchange does not believe the proposed rule change would cause 
any unnecessary or inappropriate burden on intramarket competition. The 
TBT Report is entirely optional and available to anyone who believes 
the data will be helpful for their purposes, and the proposed fees 
apply uniformly to any purchaser, in that the Exchange does not 
differentiate between the different market participants that may 
purchase the report, other than through the free sample, which is 
available on equal terms to all eligible purchasers.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from Members or other interested 
parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not:
    A. significantly affect the protection of investors or the public 
interest;
    B. impose any significant burden on competition; and
    C. become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to Section 19(b)(3)(A) of the Act \21\ and 
Rule 19b-4(f)(6) \22\ 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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    \21\ 15 U.S.C. 78s(b)(3)(A).
    \22\ 17 CFR 240.19b-4(f)(6).
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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#c5b7b0a9a0e8a6aaa8a8a0abb1b685b6a0a6eba2aab3"><span class="__cf_email__" data-cfemail="4e3c3b222b632d2123232b203a3d0e3d2b2d60292138">[email&#160;protected]</span></a>. Please include 
file number SR-CboeBZX-2026-089 on the subject line.

Paper Comments

    <bullet> Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number SR-CboeBZX-2026-089. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and 
copying at the principal office of the Exchange. Do not include 
personal identifiable information in submissions; you should submit 
only information that you wish to make available publicly. We may 
redact in part or withhold entirely from publication submitted material 
that is obscene or subject to copyright protection. All submissions 
should refer to file number SR-CboeBZX-2026-089 and should be submitted 
on or before November 27, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-22653 Filed 11-5-26; 8:45 am]
BILLING CODE 8011-01-P


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