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Federal Register / Vol. 86, No. 34 / Tuesday, February 23, 2021 / Notices
found in the Exchanges previously filed Market Data Product filings.15 The Exchange notes that it will not be assessing fees for Complex Top of Market cToM 16 data at this time.
To summarize, ToM provides market participants with a direct data feed that includes the Exchanges best bid and offer, with aggregate size, and last sale information, based on displayable order and quoting interest on the Exchange.
The ToM data feed includes data that is identical to the data sent to the processor for the Options Price Reporting Authority OPRA. ToM
also contains a feature that provides the number of Priority Customer 17 contracts that are included in the size associated with the Exchanges best bid and offer.
AIS provides market participants with a direct data feed that allows subscribers to receive real-time updates of products traded on MIAX Emerald, trading status for MIAX Emerald and products traded on MIAX Emerald, and liquidity seeking event notifications. The AIS market data feed includes opening imbalance condition information, opening routing information, expanded quote range information, post-halt notifications, and liquidity refresh condition information.
AIS real-time messages are disseminated over multicast to achieve a fair delivery mechanism. AIS notifications provide current electronic system status allowing subscribers to take necessary actions immediately.
MOR provides market participants with a direct data feed that allows 15 See Securities Exchange Act Release No. 85207
February 27, 2019, 84 FR 7963 March 5, 2019
SREMERALD201909 Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Establish MIAX Emerald Top of Market ToM
Data Feed, MIAX Emerald Complex Top of Market cToM Data Feed, MIAX Emerald Administrative Information Subscriber AIS Data Feed, and MIAX Emerald Order Feed MOR.
16 cToM provides subscribers with the same information as the ToM market data product as it relates to the strategy book, i.e., the Exchanges best bid and offer for a complex strategy, with aggregate size, based on displayable order and quoting interest in the complex strategy on the Exchange.
cToM also provides subscribers with the identification of the complex strategies currently trading on MIAX Emerald; complex strategy last sale information; and the status of securities underlying the complex strategy e.g., halted, open, or resumed. cToM is distinct from ToM, and anyone wishing to receive cToM data must subscribe to cToM regardless of whether they are a current ToM subscriber. ToM subscribers are not required to subscribe to cToM, and cToM
subscribers are not required to subscribe to ToM.
See id.
17 The term Priority Customer means a person or entity that i is not a broker or dealer in securities, and ii does not place more than 390
orders in listed options per day on average during a calendar month for its own beneficial accounts.
The number of orders shall be counted in accordance with Interpretation and Policy .01 to Exchange Rule 100. See Exchange Rule 100.

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subscribers to receive real-time updates of options orders, products traded on MIAX Emerald, MIAX Emerald Options System status, and MIAX Emerald Options Underlying trading status.
Subscribers to the data feed will get a list of all options symbols and strategies that will be traded and sourced on that feed at the start of every session.
The Exchange proposes to charge monthly fees to Distributors defined below of the ToM, AIS, and MOR
market data products. MIAX Emerald will assess market data fees applicable to the market data products on Internal and External Distributors in each month the Distributor is credentialed to use the applicable market data product in the production environment. A
Distributor of MIAX Emerald data is any entity that receives a feed or file of data either directly from MIAX Emerald or indirectly through another entity and then distributes it either internally within that entity or externally outside that entity. All Distributors are required to execute a MIAX Emerald Distributor Agreement. Market data fees for ToM, AIS, and MOR will be reduced for new Distributors for the first month during which they subscribe to the applicable market data product, based on the number of trading days that have been held during the month prior to the date on which they have been credentialed to use the applicable market data product in the production environment. Such new Distributors will be assessed a pro-rata percentage of the fees described above, which is the percentage of the number of trading days remaining in the affected calendar month as of the date on which they have been credentialed to use the applicable market data product in the production environment, divided by the total number of trading days in the affected calendar month.
Specifically, the Exchange proposes to assess Internal Distributors $1,250 per month and External Distributors $1,750
per month for the ToM market data feed.
The Exchange proposes to assess Internal Distributors $1,250 per month and External Distributors $1,750 per month for the AIS market data feed. The Exchange proposes to assess Internal Distributors $3,000 per month and External Distributors $3,500 per month for the MOR market data feed. The Exchange notes that its data feed prices are generally lower than other options exchanges data feed prices for their comparable data feed products.18

MIAX Emerald believes that exchanges, in setting fees of all types, should meet very high standards of transparency to demonstrate why each new fee or fee increase meets the requirements of the Act that fees be reasonable, equitably allocated, not unfairly discriminatory, and not create an undue burden on competition among members and markets. MIAX Emerald believes this high standard is especially important when an exchange sets certain non-transaction fees, including market data fees. The Exchange believes that it is important to demonstrate that these fees are based on its costs to provide these products and reasonable business needs. Accordingly, the Exchange believes the proposed fees will allow the Exchange to offset expense the Exchange has and will incur, and that the Exchange is providing sufficient transparency as described below into how the Exchange determined to charge such fees.
Accordingly, the Exchange is providing an analysis of its revenues, costs, and profitability associated with the proposed fees. This analysis includes information regarding its methodology for determining the costs and revenues associated with the proposed fees.
In order to determine the Exchanges costs associated with providing the proposed fees, the Exchange conducted an extensive cost review in which the Exchange analyzed every expense item in the Exchanges general expense ledger to determine whether each such expense relates to the proposed fees, and, if such expense did so relate, what portion or percentage of such expense actually supports the services included in the proposed fees. The sum of all such portions of expenses represents the total cost of the Exchange to provide the proposed fees. For the avoidance of doubt, no expense amount was allocated twice. The Exchange is also providing detailed information regarding the Exchanges cost allocation methodologynamely, information that explains the Exchanges rationale for determining that it was reasonable to allocate certain expenses described in this filing towards the total cost to the Exchange to provide the proposed fees.
In order to determine the Exchanges projected revenues associated with providing the proposed fees, the Exchange analyzed the number of Members and non-Members currently utilizing the Exchanges services associated with the proposed fees, and, utilizing a recent monthly billing cycle representative of 2020 monthly revenue,
18 See Nasdaq PHLX LLC Pricing Schedule, Options 7, Section 10, Proprietary Data Feed Fees;

Cboe BZX Exchange, Inc. Fee Schedule, Market Data Fees; Cboe Data Services, LLC, Fee Schedule.

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