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Federal Register / Vol. 86, No. 34 / Tuesday, February 23, 2021 / Notices providing the market data products associated with the proposed fees would be approximately $648,000 per annum, based on a recent billing cycle. The Exchange projects that its annualized expense for providing the market data products associated with the proposed fees would be approximately $1,040,064
per annum. Accordingly, on a fullyannualized basis, the Exchange believes its total projected revenue for providing the market data products associated with the proposed fees will not result in excessive pricing or supra-competitive profit; rather, it will result in a net loss to the Exchange of approximately $392,064 per year $648,000
$1,040,064 = $392,064.
For the avoidance of doubt, none of the expenses included herein relating to the market data products associated with the proposed fees relate to the provision of any other services offered by MIAX Emerald. Stated differently, no expense amount of the Exchange is allocated twice. The Exchange notes that, with respect to the MIAX Emerald expenses included herein, those expenses only cover the MIAX Emerald market; expenses associated with the Exchanges affiliate exchanges, MIAX
and MIAX PEARL, are accounted for separately and are not included within the scope of this filing. Stated differently, no expense amount of the Exchange is also allocated to MIAX or MIAX PEARL.
The Exchange believes it is reasonable, equitable and not unfairly discriminatory to allocate the respective percentages of each expense category described above towards the total cost to the Exchange of providing the market data products associated with the proposed fees because the Exchange performed a line-by-line item analysis of all the expenses of the Exchange, and has determined the expenses that directly relate to providing the market data products associated with the proposed fees. Further, the Exchange notes that, without the specific thirdparty and internal items listed above, the Exchange would not be able to provide the market data products associated with the proposed fees to its Members and their customers. Each of these expense items, including physical hardware, software, employee compensation and benefits, occupancy costs, and the depreciation and amortization of equipment, have been identified through a line-by-line item analysis to be integral to providing these market data products. The proposed fees are intended to recover the Exchanges costs of providing market data to Exchange Members and their customers.
Accordingly, the Exchange believes that
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the proposed fees are fair and reasonable because they do not result in excessive pricing or supra-competitive profit, when comparing the actual costs to the Exchange versus the projected annual revenue from the proposed fees.
Further, the Exchange no longer believes it is necessary to waive these fees to attract market participants to MIAX Emerald since this market is now established and MIAX Emerald no longer needs to rely on such waivers to attract market participants. The Exchange believes that the proposal is equitable and not unfairly discriminatory because the elimination of the fee waiver for the proposed fees will uniformly apply to all market participants of the Exchange. The Exchange also notes that the Exchanges affiliate, MIAX, charges similar market data fees.29
The Exchange also points out that it is not seeking to recoup any of its past costs associated with the provision of any market data fees during the Waiver Period. The Exchange currently has 13
subscriptions for its ToM data product;
11 subscriptions for its AIS data product; and 8 subscriptions for its MOR data product. All of these subscribers have not paid any market data fees during the Waiver Period.
Further, the majority of firms that are subscribers of the Exchanges affiliate options exchanges, MIAX and MIAX
PEARL, also received free market data during similar Waiver Periods for the MIAX and MIAX PEARL market data fees. Accordingly, the Exchange and MIAX and MIAX PEARL have assumed 100% of the costs associated with providing market data for the majority of subscribers of the Exchange, MIAX, and MIAX PEARL during their respective Waiver Periods. Accordingly, the Exchange believes that it is reasonable, equitable, and not unfairly discriminatory to now adopt market data fees that are reasonably related to and designed to recover the Exchanges cost associated with the provision of such market data.
B. Self-Regulatory Organizations Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
Intra-Market Competition The Exchange believes that the proposed fees do not put any market participants at a relative disadvantage compared to other market participants.

As noted above, the proposed fee schedule would apply to all subscribers of the ToM, AIS and MOR data feeds, and customers may choose whether to subscribe to any or all of the feeds. The Exchange also believes that the proposed fees neither favor nor penalize one or more categories of market participants in a manner that would impose an undue market on competition. Further, the Exchanges proposed market data fee levels, as described herein, are comparable to fee levels charged by other options exchanges for the same or similar services, including those fees assessed by the Exchanges affiliate, MIAX.30
The Exchange believes that the proposed market data fees do not place certain market participants at a relative disadvantage to other market participants because the fees do not apply unequally to different size market participants, but instead would allow the Exchange charge for the time and resource necessary for providing market data to the market participants that request such data. Accordingly, the Exchange believes that the proposed market data fees do not favor certain categories of market participants in a manner that would impose a burden on competition.
Inter-Market Competition The Exchange believes the proposed fees do not place an undue burden on competition on other SROs that is not necessary or appropriate. The Exchange notes that its data feed prices are generally lower than other options exchanges data feed prices for their comparable data feed products.31 The Exchange notes that it has far less Members as compared to the much greater number of members at other options exchanges resulting in fewer market data subscribers. The Exchange is also unaware of any assertion that its proposed market data fees would somehow unduly impair its competition with other options exchanges. To the contrary, if the proposed market data fees are deemed too high by market participants, they can simply discontinue their market data subscriptions with the Exchange, as one such Member has already done as described above.
C. Self-Regulatory Organizations Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received.
30 See
29 See
PO 00000

MIAX Fee Schedule, Section 6ac.

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31 See
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id.
supra note 18.

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