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Federal Register / Vol. 86, No. 208 / Monday, November 1, 2021 / Notices
lotter on DSK11XQN23PROD with NOTICES1

that the proposed monthly cToM fees for Internal and External Distributor are the same prices that the Exchange charges for its ToM data product and are identical to the prices the Exchanges affiliate, Miami International Securities Exchange, LLC MIAX proposes to charge for its cToM product. Further, the proposed prices are similar to or less than competing options exchanges prices for their comparable complex order data feed products.11
Like it does today for ToM, the Exchange proposes to assess cToM fees on Internal and External Distributors in each month the Distributor is credentialed to use cToM in the production environment. Also, like the Exchange does today for ToM, market data fees for cToM will be reduced for new Distributors for the first month during which they subscribe to cToM, based on the number of trading days that have been held during the month prior to the date on which that subscriber has been credentialed to use cToM in the production environment.
Such new Distributors will be assessed a pro-rata percentage of the fees in the table in Section 6a of the Fee Schedule, 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 cToM in the production environment, divided by the total number of trading days in the affected calendar month.
The Exchange initially filed this proposal on June 30, 2021 with the proposed fees to be effective beginning July 1, 2021.12 The First Proposed Rule Change was published for comment in the Federal Register on July 15, 2021.13
Although the Commission did not receive any comment letters on the First Proposed Rule Change, on August 27, applicable from the explanatory paragraph in Section 6a.
11 See NYSE American Options Proprietary Market Data Fees, American Options Complex Fees $1,500 per month Access Fee and $1,000 per month Redistribution Fee, at https
www.nyse.com/publicdocs/nyse/data/NYSE_
American_Options_Market_Data_Fee_
Schedule.pdf; see also NYSE Arca Options Proprietary Market Data Fees, Arca Options Complex Fees $1,500 per month Access Fee and $1,000 per month Redistribution Fee, at https
www.nyse.com/publicdocs/nyse/data/NYSE_Arca_
Options_Proprietary_Data_Fee_Schedule.pdf;
Nasdaq PHLX LLC Price ListU.S. Derivatives Data, PHLX Orders Fees Internal Distributor fee of $3,000 per month and External Distributor fee of $3,500 per month, at http
www.nasdaqtrader.com/
Trader.aspx?id=DPPriceListOptionsPHLX.
12 See Securities Exchange Act Release No. 92358
July 9, 2021, 86 FR 37361 July 15, 2021 SR
EMERALD202121 the First Proposed Rule Change.
13 Id.

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2021, the Commission issued its Suspension of and Order Instituting Proceedings to Determine Whether to Approve or Disapprove Proposed Rule Changes to Establish Fees for the Exchanges cToM Market Data Products relating to the First Proposed Rule Change and a similar filing by the Exchanges affiliate, MIAX, to also adopt cToM fees.14 On September 30, 2021, the Exchange withdrew the First Proposed Rule Change and resubmitted its proposal to adopt cToM fees.15 On October 14, 2021, the Exchange withdrew the Second Proposed Rule Change and submitted this proposal to adopt cToM fees.
The Exchange also proposes to amend the paragraph below the table of fees for ToM and cToM in Section 6a of the Fee Schedule to make a minor, nonsubstantive corrective edit. In particular, the Exchange proposes to delete the phrase as applicable in the first sentence following the table of fees for ToM and cToM. The purpose of this proposed change is to remove unnecessary text from the Fee Schedule.
Implementation The proposed rule change is immediately effective upon filing.
2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6b of the Act 16
in general, and furthers the objectives of Section 6b4 of the Act 17 in particular, in that it is an equitable allocation of reasonable dues, fees and other charges among its members and issuers and other persons using its facilities. The Exchange also believes the proposal furthers the objectives of Section 6b5 of the Act in that it is designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general protect investors and the public interest and is not designed to permit unfair discrimination between customers, issuers, brokers and dealers.
In adopting Regulation NMS, the Commission granted self-regulatory organizations SROs and brokerdealers increased authority and flexibility to offer new and unique market data to the public. It was 14 See Securities Exchange Act Release No. 92789
August 27, 2021, 86 FR 49364 September 2, 2021
SRMIAX202128, SREMERALD202121 the Suspension Order.
15 See SREMERALD202132 the Second Proposed Rule Change.
16 15 U.S.C. 78fb.
17 15 U.S.C. 78fb4 and 5.

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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. Particularly, cToM further broadens the availability of U.S. option market data to investors consistent with the principles of Regulation NMS. The data product also promotes increased transparency through the dissemination of cToM. Particularly, cToM provides subscribers with the same information as ToM 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, but includes the following additional information: i The identification of the complex strategies currently trading on the Exchange; ii complex strategy last sale information; and iii the status of securities underlying the complex strategy e.g., halted, open, or resumed.
The Exchange believes cToM provides a valuable tool that subscribers can use to gain substantial insight into the trading activity in Complex Orders, but also emphasizes such data is not necessary for trading and that such information can be derived from other Exchange sources. Moreover, other exchanges offer similar data products for their own complex market data.18
The Exchange believes that its proposal is reasonable, equitable and not unfairly discriminatory because it is a business decision of each subscriber of cToM whether to subscribe to the feed or not. cTom is also not the exclusive source for Complex Order information from the Exchange and market participants may choose to subscribe to the Exchanges other data products to receive such information. Specifically, market participants that choose not to subscribe to cToM can derive much, if not all, of the same information provided in the cToM feed from other Exchange sources, including, for example, the MIAX Emerald Order Feed MOR.19 The following cToM
information is provided to subscribers of MOR: The Exchanges best bid and 18 See
supra note 11.
MIAX website, Market Data & Offerings, at https www.miaxoptions.com/market-dataofferings last visited October 13, 2021. In general, MOR provides real-time ulta-low sic latency updates on the following information: New Simple Orders added to the MIAX Emerald Order Book;
updates to Simple Orders resting on the MIAX
Emerald Order Book; new Complex Orders added to the Strategy Book i.e., the book of Complex Orders; updates to Complex Orders resting on the Strategy Book; MIAX Emerald listed series updates;
MIAX Emerald Complex Strategy definitions; the state of the MIAX Emerald System; and MIAX
Emeralds underlying trading state.
19 See
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