[Federal Register Volume 86, Number 119 (Thursday, June 24, 2021)]
[Notices]
[Pages 33390-33392]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13282]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92168; File No. SR-CboeBZX-2021-043]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Open-Close Data Fees

June 14, 2021.
    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 June 1, 2021, Cboe BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the Exchange. The 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 BZX Exchange, Inc. (the ``Exchange'' or ``BZX Options'') is 
filing with the Securities and Exchange Commission (``Commission'') a 
proposed rule change to amend Open-Close Data fees. The text of the 
proposed rule change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the 
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary, and at 
the Commission's Public Reference Room.

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 its Fees Schedule to (i) adopt an 
academic discount for its historical End-of-Day Open-Close and Intraday 
Open-Close data and (ii) offer a free trial during the months of June 
and July 2021 for an ad-hoc request of three (3) historical months of 
Intraday Open-Close historical data to all Members and non-Members who 
have never before subscribed to the Intraday Open-Close historical 
files.
    By way of background, the Exchange historically offered Open-Close 
Data, which is an end-of-day volume summary of trading activity on the 
Exchange at the option level by origin (customer, professional 
customer, broker-dealer, and market maker), side of the market (buy or 
sell), price, and transaction type (opening or closing) (``End-of-Day 
Open-Close Data''). The customer and professional customer volume is 
further broken down into trade size buckets (less than 100 contracts, 
100-199 contracts, greater than 199 contracts). The Open-Close Data is 
proprietary BZX Options trade data and does not include trade data from 
any other exchange. It is also a historical data product and not a 
real-time data feed. The recently adopted Intraday Open-Close Data 
provides similar information to that of Open-Close Data but is produced 
and updated every 10 minutes during the trading day. Data is captured 
in ``snapshots'' taken every 10 minutes throughout the trading day and 
is available to subscribers within five minutes of the conclusion of 
each 10-minute period.\3\ The Intraday Open-Close Data provides a 
volume summary of trading activity on the Exchange at the option level 
by origin (customer, professional customer, broker-dealer, and market 
maker), side of the market (buy or sell), and transaction type (opening 
or closing). The customer and professional customer volume are further 
broken down into trade size buckets (less than 100 contracts, 100-199 
contracts, greater than 199 contracts). The Intraday Open-Close Data is 
also proprietary BZX Options trade data and does not include trade data 
from any other exchange. Cboe LiveVol, LLC (``LiveVol''), a wholly 
owned subsidiary of the Exchange's parent company, Cboe Global Markets, 
Inc., makes the Open-Close Data and Intraday Open-Close Data available 
for purchase to Members and non-Members on the LiveVol DataShop website 
(datashop.cboe.com). Customers may currently purchase End-of-Day Open-
Close Data on a subscription basis ($500 per month) or by ad hoc 
request for a specified historical month ($400 per request per month). 
Customers may also purchase Intraday Open-Close Data on a subscription 
basis ($1,500 per month or $18,000 per year) or by ad hoc request for a 
specified historical month ($750 per request per month).
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    \3\ For example, subscribers to the intraday product will 
receive the first calculation of intraday data by approximately 9:42 
a.m. ET, which represents data captured from 9:30 a.m. to 9:40 a.m. 
Subscribers will receive the next update at 9:52 a.m., representing 
the data previously provided together with data captured from 9:40 
a.m. through 9:50 a.m., and so forth. Each update will represent the 
aggregate data captured from the current ``snapshot'' and all 
previous ``snapshots.''
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    The Exchange now proposes to adopt an academic discount for ad-hoc 
requests of historical months of these data sets. Specifically, the 
Exchange proposes to charge qualifying academic purchasers $750 per 
year for the first year (instead of $4,800 per year) for historical 
End-of-Day Open-Close Data and $1,500 per year for the first year 
(instead of $9,000 per year) for historical Intraday Open-Close Data. 
Additional months after the first year may be purchased separately and 
will be assessed a prorated amount based on the yearly rate (i.e., 
$62.50 per month for historical End-of-Day Open-Close and $125 per 
month for historical Intraday Open-Close). Particularly, the Exchange 
believes that academic institutions and researchers provide a valuable 
service for the Exchange in studying and promoting the options market. 
Though academic institutions and researchers have need for granular 
options data sets, they do not trade upon the data for which they 
subscribe. The Exchange believes the proposed reduced fee for 
qualifying academic purchasers of historical End-of-Day Open-Close Data 
and Intraday Open-Close Data will encourage and promote academic 
studies of its market data by academic institutions. In order to 
qualify for the academic pricing, an academic purchaser must be (1) an 
accredited academic institution or member of the faculty or staff of 
such an institution, (2) that will use the data in independent academic 
research, academic journals and other publications, teaching and 
classroom use, or for other bona fide educational purposes (i.e. 
academic use). Furthermore, use of the data must be limited to faculty 
and students of an accredited academic institution, and any commercial 
or profit-seeking usage is excluded. Academic pricing will not

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be provided to any purchaser whose research is funded by a securities 
industry participant. LiveVol subscriber policies will reflect the 
academic discount program, and academic users interested in qualifying 
will be required to submit a brief application. LiveVol Business 
Development will have the discretion to review and approve such 
applications and request additional information when it deems 
necessary.
    The Exchange notes that another exchange currently offers an 
academic discount for a similar data feed.\4\ Additionally, the 
Exchange's affiliate Cboe Exchange, Inc. (``Cboe Options'') offers an 
academic discount for historical End-of-Day Open-Close and Intraday 
Open-Close Data products.\5\ The Exchange recognizes the high value of 
academic research and educational instruction and publications, and 
believes that the proposed academic discount for historical End-of-Day 
Open-Close Data and Intraday Open-Close Data will encourage the 
promotion of academic research of the options industry, which will 
serve to benefit all market participants while also opening up a new 
potential user base among students. Finally, the Exchange notes that 
academic purchasers' ad hoc requests of historical End-of-Day Open-
Close an Intraday Open-Close Data would be educational in use and 
purpose, and not vocational.
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    \4\ See Nasdaq ISE, Options 7 Pricing Schedule, Section 10A., 
Nasdaq ISE Open/Close Trade Profile Intraday.
    \5\ See Cboe Options Fees Schedule, Livevol Fees, Open Close 
Data.
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    The Exchange next seeks to adopt a free trial for historical ad hoc 
requests for Intraday Open-Close Data for new purchasers. Particularly, 
the Exchange proposes to adopt a free trial available during the months 
of June and July 2021 to provide up to three (3) historical months of 
Intraday Open-Close Data to any Member or non-Member that has not 
previously subscribed to this offering.\6\ The Exchange believes the 
proposed trial will serve as an incentive for new users to start 
purchasing Intraday Open-Close historical data. More specifically, the 
Exchange believes it will give potential subscribers the ability to use 
and test the data offering before signing up for additional months. The 
Exchange also notes another exchange offers a free trial for new 
subscribers of a similar data product.\7\ Lastly, the purchase of 
Intraday Open-Close historical data is discretionary and not 
compulsory.
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    \6\ For example, if a Member or non-Member that has never made 
an ad-hoc request for a specified month of Intraday Open-Close 
historical data wishes to purchase Intraday Open-Close Data for the 
months of January, February and March 2021 during the month of June 
2021, the historical files for those months would be provided free 
of charge. If a new user wishes to purchase Intraday Open-Close 
historical data for the months of January, February, March and April 
2021 during the month of June 2021, then the data for January, 
February and March 2021 would be provided free of charge, and the 
new user would be charged $1,000 for the April 2021 historical file.
    \7\ See Nasdaq ISE, Options 7 Pricing Schedule, Section 10A., 
Nasdaq ISE Open/Close Trade Profile End of Day.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\9\ in particular, in that it 
is designed to prevent fraudulent and manipulative acts and practices, 
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 to protect investors and the public 
interest, and that it is not designed to permit unfair discrimination 
among customers, brokers, or dealers. The Exchange also believes that 
its proposal to adopt fees for Intraday Open-Close Data is consistent 
with Section 6(b) of the Act in general, and furthers the objectives of 
Section 6(b)(4) of the Act \10\ in particular, in that it is an 
equitable allocation of dues, fees and other charges among its members 
and other recipients of Exchange data.
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    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ 15 U.S.C. 78f(b)(4).
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    In particular, the Exchange believes that the discount for 
qualifying academic purchasers of the ad hoc historical End-of-Day 
Open-Close and Intraday Open-Close Data is reasonable because academic 
users are not able to monetize access to the data as they do not trade 
on the data set. The Exchange believes the proposed discount will allow 
for more academic institutions and faculty members to purchase 
historical End-of-Day Open-Close and Intraday Open-Close Data, and, as 
a result, promote research and studies of the options industry to the 
benefit of all market participants. The Exchange believes that the 
proposed discount is equitable and not unfairly discriminatory because 
it will apply equally to all academic users that submit an application 
and meet the accredited academic institution or faculty member and 
academic use criteria. As stated above, qualified academic users will 
subscribe to the data set for educational use and purposes and are not 
permitted to use the data for commercial or monetizing purposes, nor 
can qualify if they are funded by an industry participant. As a result, 
the Exchange believes the proposed discount is equitable and not 
unfairly discriminatory because it maintains equal treatment for all 
industry participants or other subscribers that use the data for 
vocational, commercial or other for-profit purposes.
    The Exchange also believes that the proposed free trial for any 
Member or non-Member who has not previously purchased Intraday Open-
Close historical data is reasonable because such users would not be 
subject to fees for up to 3 months' worth of Intraday Open-Close 
historical data. The Exchange believes the proposed free trial is also 
reasonable as it will give potential subscribers the ability to use and 
test the Intraday Open-Close historical data prior to purchasing 
additional months and will therefore encourage and promote new users to 
purchase the Intraday Open-Close historical data. The Exchange believes 
that the proposed discount is equitable and not unfairly discriminatory 
because it will apply equally to all Members and non-Members who have 
not previously purchased Intraday Open-Close historical data. Lastly, 
as noted above, another exchange offers a free trial to new users for a 
similar data product \11\ and purchase of this data product is 
discretionary and not compulsory.
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    \11\ See Nasdaq ISE, Options 7 Pricing Schedule, Section 10A., 
Nasdaq ISE Open/Close Trade Profile End of Day.
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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 Exchange does not 
believe that the proposed rule change will impose any burden on 
intramarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act because the proposed rule change 
relating to the academic discount will apply to all qualifying academic 
purchasers uniformly. While the proposed fee reduction applies only to 
qualifying academic purchasers, academic purchasers' research and 
publications as a result of access to historical market data benefits 
all market participants. The Exchange also does not believe that the 
proposed rule change relating to the free trial will impose any burden 
on intramarket competition that is not necessary or appropriate in 
furtherance of the

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purposes of the Act because the proposed rule change will apply to all 
Members and non-Members who have never made an ad-hoc request to 
purchase Intraday Open-Close historical data. Moreover, purchase of 
Intraday Open-Close historical files is discretionary and not 
compulsory.
    The Exchange also does not believe that the proposed rule change 
will impose any burden on intermarket competition that is not necessary 
or appropriate in furtherance of the purposes of the Act because the 
proposed change applies only to the Exchange. Furthermore, another 
exchange currently offers similar historical data to academic users at 
a discounted price as well as a similar free-trial period for similar 
data.\12\
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    \12\ Id.
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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 has neither solicited nor received written comments on 
the proposed rule change.

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

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \13\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \14\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such 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 under 
Section 19(b)(2)(B) \15\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \15\ 15 U.S.C. 78s(b)(2)(B).
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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

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-CboeBZX-2021-043 on the subject line.

Paper Comments

     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-2021-043. 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 (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-CboeBZX-2021-043 and should be submitted 
on or before July 15, 2021.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-13282 Filed 6-23-21; 8:45 am]
BILLING CODE 8011-01-P


