[Federal Register Volume 90, Number 98 (Thursday, May 22, 2025)]
[Notices]
[Pages 21958-21962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-09187]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103059; File No. SR-CboeEDGA-2025-013]
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Increase the Monthly Fee for 10 Gb Physical Ports
May 16, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 9, 2025, Cboe EDGA Exchange, Inc. (``Exchange'' or ``EDGA'')
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 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
The Exchange proposes to increase the monthly fee for 10 Gb
physical ports. 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/edga/), 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 fee schedule relating to
physical connectivity fees.\3\
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\3\ The Exchange initially filed the proposed fee changes on
July 3, 2023 (SR-CboeEDGA-2023-011). On September 1, 2023, the
Exchange withdrew that filing and submitted SR-CboeEDGA-2023-015. On
September 29, 2023, the Securities and Exchange Commission issued a
Suspension of and Order Instituting Proceedings to Determine whether
to Approve or Disapprove a Proposed Rule Change to Amend its Fees
Schedule Related to Physical Port Fees (the ``OIP'') in anticipation
of a possible U.S. government shutdown. On September 29, 2023, the
Exchange filed the proposed fee change (SR-CboeEDGA-2023-016). On
October 13, 2023, the Exchange withdrew that filing and submitted
SR-CboeEDGA-2023-017. On December 12 2023, the Exchange withdrew
that filing and submitted SR-CboeEDGA-2023-022. On February 9, 2024,
the Exchange withdrew that filing and submitted SR-CboeEDGA-2024-
006. On April 9, 2024, the Exchange withdrew that filing and
submitted SR-CboeEDGA-2024-013. On June 7, 2024, the Exchange
withdrew that filing and submitted SR-CboeEDGA-2024-022. On August
29, 2024, the Exchange withdrew that filing and submitted SR-
CboeEDGA-2024-036. On October 25, 2024, the Exchange withdrew that
filing and submitted SR-CboeEDGA-2024-043. On December 18, 2024, the
Exchange withdrew that filing and submitted SR-CboeEDGA-2024-051. On
February 14, 2025, the Exchange withdrew that filing and submitted
SR-CboeEDGA-2025-004. On March 13, 2025, the Exchange withdrew that
filing and submitted SR-CboeEDGA-2025-007. On May 9, 2025, the
Exchange withdrew that filing and submitted this filing.
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By way of background, a physical port is utilized by a Member or
non-Member to connect to the Exchange at the data centers where the
Exchange's servers are located. The Exchange currently assesses the
following physical connectivity fees for Members and non-Members on a
monthly basis: $2,500 per physical port for a 1 gigabit (``Gb'')
circuit and $7,500 per physical port for a 10 Gb circuit. The Exchange
proposes to increase the monthly fee for 10 Gb physical ports from
$7,500 to $8,500 per port. The Exchange notes the proposed fee change
better enables it to continue to maintain and improve its market
technology and services and also notes that the proposed fee amount,
even as amended, continues to be in line with, or even lower than,
amounts assessed by other exchanges for similar connections.\4\ The
Exchange also notes
[[Page 21959]]
that a single 10 Gb physical port can be used to access the Systems of
the following affiliate exchanges: the Cboe BYX Exchange, Inc., Cboe
BZX Exchange, Inc. (options and equities platforms), Cboe EDGX
Exchange, Inc. (options and equities platforms), and Cboe C2 Exchange,
Inc., (``Affiliate Exchanges'').\5\ Notably, only one monthly fee
currently (and will continue) to apply per 10 Gb physical port
regardless of how many affiliated exchanges are accessed through that
one port.\6\
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\4\ See e.g., The Nasdaq Stock Market LLC (``Nasdaq''), General
8, Connectivity to the Exchange. Nasdaq and its affiliated exchanges
charge a monthly fee of $16,500 for each 10Gb Ultra fiber connection
to the respective exchange. See also New York Stock Exchange LLC,
NYSE American LLC, NYSE Arca, Inc., NYSE Chicago Inc., NYSE
National, Inc. Connectivity Fee Schedule, which provides that 10 Gb
LX LCN Circuits (which are analogous to the Exchange's 10 Gb
physical port) are assessed $22,000 per month, per port.
\5\ The Affiliate Exchanges are also submitting contemporaneous
identical rule filings.
\6\ The Exchange notes that conversely, other exchange groups
charge separate port fees for access to separate, but affiliated,
exchanges. See e.g., Securities and Exchange Release No. 99822
(March 21, 2024), 89 FR 21337 (March 27, 2024) (SR-MIAX-2024-016).
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\7\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \8\ 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) \9\ 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 rule
change is consistent with Section 6(b)(4) \10\ of the Act, which
requires that Exchange rules provide for the equitable allocation of
reasonable dues, fees, and other charges among its Members and other
persons using its facilities. This belief is based on various factors
as described below.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ Id.
\10\ 15 U.S.C. 78f(b)(4).
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First, the Exchange believes its proposal is reasonable as it
reflects a moderate increase in physical connectivity fees for 10 Gb
physical ports and its offering, even as amended, continues to be more
affordable as compared to analogous physical connectivity offerings at
competitor exchanges. For example, The Nasdaq Stock Market LLC
(``Nasdaq'') and its affiliated exchanges charge a monthly fee of
$16,500 for each 10 Gbps Ultra fiber connection and $11,000 per month
for each 10 Gbps fiber connection to their respective exchange.\11\ The
Exchange's proposed fee of $8,500 per physical port is lower than both
of these offerings.
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\11\ See The Nasdaq Stock Market LLC (``Nasdaq''), General 8,
Connectivity to the Exchange.
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Yet another example of higher fees charged by a competitor exchange
is the 10 Gbps LX LCN Circuits offered by the New York Stock Exchange
LLC and its affiliates (collectively, ``NYSE''). NYSE charges a fee of
$22,000 per month,\12\ per port in contrast to the Exchange's proposed
monthly fee of $8,500 per month, per port. Despite the Exchange
proposing to increase its fee for its 10 Gb physical port, it still
comes in at a cost significantly lower than its competitors.
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\12\ See New York Stock Exchange LLC, NYSE American LLC, NYSE
Arca, Inc., NYSE Chicago Inc., NYSE National, Inc. Connectivity Fee
Schedule.
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Lastly, the Exchange also points towards the equivalent offering
from MIAX Pearl which is $8,000 per port per month for its 10 Gigabit
ULL connection.\13\ However, the Exchange reiterates that a single
physical port offered by the Exchange offers the ability to connect to
the Affiliated Exchanges (equities and options) and the monthly price
does not change based on the number of exchanges a participant is
connected to. In this case, examining only the Exchange's affiliated
equities exchanges, a participant could purchase a single physical port
from the Exchange and access roughly 11% of the U.S. Equities Market,
in contrast to purchasing a single port from MIAX Pearl and accessing
only around 1% of the U.S. Equities Market.\14\
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\13\ See MIAX Pearl Equities Fee Schedule.
\14\ See Cboe U.S. Equities Market Volume Summary (May 5, 2025).
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The Exchange also believes the current fee does not properly
reflect the quality of the service and product, as fees for 10 Gb
physical ports have been static in nominal terms since 2018, and
therefore falling in real terms due to inflation. As a general matter,
the Producer Price Index (``PPI'') is a family of indexes that measures
the average change over time in selling prices received by domestic
producers of goods and services. PPI measures price change from the
perspective of the seller. This contrasts with other metrics, such as
the Consumer Price Index (CPI), that measure price change from the
purchaser's perspective.\15\ About 10,000 PPIs for individual products
and groups of products are tracked and released each month.\16\ PPIs
are available for the output of nearly all industries in the goods-
producing sectors of the U.S. economy--mining, manufacturing,
agriculture, fishing, and forestry--as well as natural gas,
electricity, and construction, among others. The PPI program covers
approximately 69 percent of the service sector's output, as measured by
revenue reported in the 2017 Economic Census.
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\15\ See https://www.bls.gov/ppi/overview.htm.
\16\ Id.
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For purposes of this proposal, the relevant industry-specific PPI
is the Data Processing, Hosting and Related Services (``Data PPI'') and
more particularly the more granular service line Data Processing,
Hosting and Related Services: Hosting, Active Server Pages (ASP), and
Other Information Technology (IT) Infrastructure Provisioning
Services.\17\
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\17\ Provisioning is the process of preparing, assigning, and
activating IT infrastructure components, such as servers, storage,
and network connectivity, according to user requirements. It is a
critical part of IT operations, as it ensures that computing
resources are available when needed and that they are set up and
connected to work correctly.
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The Data PPI was introduced in January 2002 by the Bureau of Labor
Statistics (``BLS'') as part of an ongoing effort to expand Producer
Price Index coverage of the services sector of the U.S. economy and is
identified as NAICS-518210 in the North American Industry
Classification System (``NAICS'').\18\ According to the BLS ``[t]he
primary output of NAICS 518210 is the provision of electronic data
processing services. In the broadest sense, computer services companies
help their customers efficiently use technology. The processing
services market consists of vendors who use their own computer
systems--often utilizing proprietary software--to process customers'
transactions and data. Price movements for the NAICS 518210 index are
based on changes in
[[Page 21960]]
the revenue received by companies that provide data processing services
and price movements for the service line NAICS 518210 index are based
on changes in the revenue received by companies that provide, among
other things, IT infrastructure provisioning services. Each month,
companies provide net transaction prices for a specified service. The
transaction is an actual contract selected by probability, where the
price-determining characteristics are held constant while the service
is repriced. The prices used in index calculation are the actual prices
billed for the selected service contract.'' \19\
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\18\ See https://www.bls.gov/ppi/overview.htm. Among the
industry-specific PPIs is for North American Industry Classification
System (``NAICS'') Code 518210: ``Data Processing and Related
Services,'' NAICS index codes categorize products and services that
are common to particular industries. According to BLS, these codes
``provide comparability with a wide assortment of industry-based
data for other economic programs, including productivity,
production, employment, wages, and earnings.''
\19\ See https://www.bls.gov/ppi/factsheets/producer-price-index-for-the-data-processing-and-related-services-industry-naics-518210.htm.
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The service (product) lines for which price indexes are available
under the Data PPI are: (1) business process management services (2)
data management and storage information transformation and other
services and (3) hosting ASP and other IT infrastructure provisioning
services. The most apt of these industry and product-specific
categorizations for purposes of this present proposal to modify fees
for the 10 Gb physical port fee measures inflation for the provision of
data processing, hosting and related services as well as other
information technology infrastructure provisioning services which BLS
identifies as identified as NAICS-5182105.\20\ The Exchange believes
that this measure of inflation is particularly appropriate because the
Exchange's connectivity services involve hosting and providing
connections to its customers' telecommunications and information
technology equipment, as well as preparing, assigning, and activating
IT infrastructure components, such as servers, storage, and network
connectivity. The Exchange also uses its ``proprietary software,''
i.e., its own proprietary matching engine software, to receive orders
on the Exchange's proprietary trading platform as well as to collect,
organize, store and report customers' transactions. In other words, the
Exchange is in the business of data processing, hosting, ASP, and
providing other IT infrastructure provisioning services. Specifically,
within this category, the Exchange points to the financial business
process management services category under the umbrella of data
processing.\21\ The financial business process management services is
described as ``providing a bundled service package that combines
information-technology-intensive services with labor (manual or
professional depending on the solution), machinery, and facilities to
support, host and manage a financial business process for a client,
such as financial transaction processing, credit card processing,
payment services, and lending services.'' \22\ The Exchange's
connectivity service provides connections to its customers'
telecommunications and information technology equipment, as well as
preparing, assigning, and activating IT infrastructure components to
facilitate the transmission of orders and receipt of financial
transactions for its customers' while connected to the Exchange.
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\20\ See https://data.bls.gov/timeseries/PCU5182105182105.
\21\ See https://voorburggroup.org/Documents/2018%20Rome/Papers/1014.pdf.
\22\ Id.
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Further, the Exchange believes that this specific index is best
suited to guide this price increase as it reflects the change in this
specific instance over the last seven years instead of looking at the
underlying components of the service. PPI has published broad guidance
regarding price adjustments for contracts,\23\ and within this it noted
that contracting parties should choose an index or group of indexes
that represent the cost for providing a particular product or service,
rather than an index for the product itself.\24\ While this helps a
contracting seller avoid a circumstance where it is unable to raise its
price for the product itself if the underlying components have
increased and the PPI for the product itself has not yet increased--
this is not the case here. The Exchange instead is using historical
data over a seven-year period as a reference point for its proposed
increase moving forward--underlying components that have increased over
the course of seven years have since (by and large) been reflected in
the product itself.
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\23\ See https://www.bls.gov/ppi/publications/price-adjustment-guide-for-contracting-parties.htm#FOOT5.
\24\ ``For example, if an apparel manufacturer were contracting
for long-term purchases with a producer of finished fabrics, it
would be more advisable to tie the price adjustment clause to a PPI
for synthetic fibers, processed yarns and threads, or greige fabrics
(raw fabric), rather than to a PPI for a type of finished fabric.''
Id.
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The Exchange further believes the Data PPI is an appropriate
measure for purposes of the proposed rule change on the basis that it
is a stable metric with limited volatility, unlike other consumer-side
inflation metrics. In fact, the Data PPI has not experienced a greater
than 2.16% increase for any one calendar year period since Data PPI was
introduced into the PPI in January 2002. For example, the average
calendar year change from January 2002 to December 2023 was .62%, with
a cumulative increase of 15.67% over this 21-year period. The Exchange
believes the Data PPI is considerably less volatile than other
inflation metrics such as CPI, which has had individual calendar-year
increases of more than 6.5%, and a cumulative increase of over 73% over
the same period.\25\
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\25\ See https://www.usinflationcalculator.com/inflation/consumer-price-index-and-annual-percent-changes-from-1913-to-2008/.
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As noted above, the current 10 Gb physical port fee remained
unchanged for almost seven years, particularly since June 2018.\26\
Since its last increase almost 7 years ago however, there has been
notable inflation, including under the industry- and product-specific
PPI, which as described above is a tailored measure of inflation.
Particularly, the Hosting, ASP and other IT Infrastructure Provisioning
Services inflation measure had a starting value of 102.2 in June 2018
(the month the Exchange started assessing the current fee) and an
ending value of 118.502 in January 2025, representing a 16%
increase.\27\ This indicates that companies who are also in the hosting
ASP and other IT infrastructure provisioning services have generally
increased prices for a specified service covered under NAICS 5182105 by
an average of 16% during this period.
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\26\ See Securities and Exchange Release No. 83449 (June 15,
2018), 83 FR 28890 (June 21, 2018) (SR-CboeEDGA-2018-010).
\27\ See https://data.bls.gov/timeseries/PCU5182105182105.
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The Exchange also believes that it is reasonable to increase its
fees to compensate for inflation because, over time, inflation has
degraded the value of each dollar that the Exchange collects in fees,
such that the real revenue collected today is considerably less than
that same revenue collected in 2018. The impact of this inflationary
effect is also independent of any change in the Exchange's costs in
providing its goods and services. The Exchange therefore believes that
it is reasonable for it to offset, in part, this erosion in the value
of the revenues it collects. Additionally, the Exchange historically
does not increase fees every year notwithstanding inflation.\28\ Other
exchanges have also filed for increases in certain fees, based
[[Page 21961]]
in part on comparisons to inflation.\29\ Accordingly, based on the
above-described percentage change based on an industry- and product-
specific inflationary measure, and in conjunction with the rationale
further described above and below, the Exchange believes the proposed
fee increase is reasonable.
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\28\ As the Exchange historically does not increase fees every
year notwithstanding inflation, the Exchange believes that the more
specific index is appropriate to look at as it is reflective of the
cumulative increase over the course of almost seven years. While the
PPI has published guidance that a broader index may be more helpful
to reference in a contract to avoid large swings on a shorter
duration (and to which such a swing over a brief duration may
trigger additional obligations), the Exchange, in contrast, is
instead looking forward to adjust its price to reflect changes in
the industry over the past seven years. See supra note 20.
\29\ See, e.g., Securities Exchange Act Release Nos. 34-100994
(September 10, 2024), 89 FR 75612 (September 16, 2024) (SR-NYSEARCA-
2024-79).
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Next, the Exchange believes significant investments into, and
enhanced performance of, the Exchange, in the years following the last
10 Gb physical port fee increase support the reasonableness of the
proposed fee increase. These investments enhanced the quality of its
services, as measured by, among other things, increased throughput and
faster processing speeds. Customers have therefore greatly benefitted
from these investments, while the Exchange's ability to recoup its
investments has been hampered.
For example, the Exchange and its affiliated exchanges recently
launched a multi-year initiative to improve Cboe Exchange Platform
performance and capacity requirements to increase competitiveness,
support growth and advance a consistent world class platform. The goal
of the project, among other things, is to provide faster and more
consistent order handling and matching performance for options, while
ensuring quicker processing time and supporting increasing volumes and
capacity needs. For example, the Exchange recently performed switch
hardware upgrades. Particularly, the Exchange replaced existing
customer access switches with newer models, which the Exchange believes
resulted in increased determinism. The recent switch upgrades also
increased the Exchange's capacity to accommodate more physical ports by
nearly 50%. Network bandwidth was also increased nearly two-fold as a
result of the upgrades, which among other things, can lead to reduce
message queuing. The Exchange also believes these newer models result
in less natural variance in the processing of messages. The Exchange
notes that it incurred costs associated with purchasing and upgrading
to these newer models, of which the Exchange has not otherwise passed
through or offset.
As of April 1, 2024, market participants also having the option of
connecting to a new data center (i.e., Secaucus NY6 Data Center
(``NY6'')), in addition to the current data centers at NY4 and NY5. The
Exchange made NY6 available in response to customer requests in
connection with their need for additional space and capacity. In order
to make this space available, the Exchange expended significant
resources to prepare this space, and will also incur ongoing costs with
respect to maintaining this offering, including costs related to power,
space, fiber, cabinets, panels, labor and maintenance of racks. The
Exchange also incurred a large cost with respect to ensuring NY6 would
be latency equalized, as it is for NY4 and NY5.
The Exchange also has made various other improvements since the
current physical port rates were adopted in 2018. For example, the
Exchange has updated its customer portal to provide more transparency
with respect to firms' respective connectivity subscriptions, enabling
them to better monitor, evaluate and adjust their connections based on
their evolving business needs. The Exchange also performs proactive
audits on a weekly basis to ensure that all customer cross connects
continue to fall within allowable tolerances for Latency Equalized
connections. Accordingly, the Exchange expended, and will continue to
expend, resources to innovate and modernize technology so that it may
benefit its Members and continue to compete among other equities
markets. The ability to continue to innovate with technology and offer
new products to market participants allows the Exchange to remain
competitive in the equities space which currently has 16 equities
markets and potential new entrants. If the Exchange were not able to
assess incrementally higher fees for its connectivity, it would
effectively impact how the Exchange manages its technology and hamper
the Exchange's ability to continue to invest in and fund access
services in a manner that allows it to meet existing and anticipated
access demands of market participants. Disapproval of fee changes such
as the proposal herein, could also have the adverse effect of
discouraging an exchange from improving its operations and implementing
innovative technology to the benefit of market participants if it
believes the Commission would later prevent that exchange from
recouping costs and monetizing its operational enhancements, thus
adversely impacting competition as well as the interests of market
participants and investors.
Finally, the proposed fee is also the same as is concurrently being
proposed for its Affiliate Exchanges. Further, Members are able to
utilize a single port to connect to all of its Affiliate Exchanges and
will only be charged one single fee (i.e., a market participant will
only be assessed the proposed $8,500 even if it uses that physical port
to connect to the Exchange and another (or even all 6) of its Affiliate
Exchanges. Particularly, the Exchange believes the proposed monthly per
port fee is reasonable, equitable and not unfairly discriminatory since
the Exchange has determined to not charge multiple fees for the same
port. Indeed, the Exchange notes that several ports are in fact
purchased and utilized across one or more of the Exchange's affiliated
Exchanges (and charged only once).
The Exchange also believes that the proposed fee change is not
unfairly discriminatory because it would be assessed uniformly across
all market participants that purchase the physical ports. The Exchange
believes increasing the fee for 10 Gb physical ports and charging a
higher fee as compared to the 1 Gb physical port is equitable as the 1
Gb physical port is \1/10\th the size of the 10 Gb physical port and
therefore does not offer access to many of the products and services
offered by the Exchange (e.g., ability to receive certain market data
products). Thus, the value of the 1 Gb alternative is lower than the
value of the 10 Gb alternative, when measured based on the type of
Exchange access it offers. Moreover, market participants that purchase
10 Gb physical ports utilize the most bandwidth and therefore consume
the most resources from the network. The Exchange also anticipates that
firms that utilize 10 Gb ports will benefit the most from the
Exchange's investment in offering NY6 as the Exchange anticipates there
will be much higher quantities of 10 Gb physical ports connecting from
NY6 as compared to 1 Gb ports. Indeed, the Exchange notes that 10 Gb
physical ports account for approximately 90% of physical ports across
the NY4, NY5, and NY6 data centers, and to date, 80% of new port
connections in NY6 are 10 Gb ports. As such, the Exchange believes the
proposed fee change for 10 Gb physical ports is reasonably and
appropriately allocated.
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 proposed fee change will
not impact intramarket competition because it will apply to all
similarly situated Members equally (i.e., all market participants that
choose to purchase the 10 Gb physical port). Additionally, the Exchange
does not believe its proposed pricing will
[[Page 21962]]
impose a barrier to entry to smaller participants and notes that its
proposed connectivity pricing is associated with relative usage of the
various market participants. For example, market participants with
modest capacity needs can continue to buy the less expensive 1 Gb
physical port (which cost is not changing) or may choose to obtain
access via a third-party re-seller. While pricing may be increased for
the larger capacity physical ports, such options provide far more
capacity and are purchased by those that consume more resources from
the network. Accordingly, the proposed connectivity fees do not favor
certain categories of market participants in a manner that would impose
a burden on competition; rather, the allocation reflects the network
resources consumed by the various size of market participants--lowest
bandwidth consuming members pay the least, and highest bandwidth
consuming members pay the most.
The proposed fee change also does not impose a burden on
competition or on other Self-Regulatory Organizations that is not
necessary or appropriate. As described above, the Exchange evaluated
its proposed fee change using objective and stable metric with limited
volatility. Utilizing Data Processing PPI over a specified period of
time is a reasonable means of recouping a portion of the Exchange's
investment in maintaining and enhancing the connectivity service
identified above. The Exchange believes utilizing Data Processing PPI,
a tailored measure of inflation, to increase certain connectivity fees
to recoup the Exchange's investment in maintaining and enhancing its
services and products would not impose a burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \30\ and paragraph (f) of Rule 19b-4 \31\
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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\30\ 15 U.S.C. 78s(b)(3)(A).
\31\ 17 CFR 240.19b-4(f).
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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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-CboeEDGA-2025-013 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-CboeEDGA-2025-013. 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 (https://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
a.m. and 3 p.m. Copies of the filing also 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-CboeEDGA-2025-013 and should
be submitted on or before June 12, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
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\32\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2025-09187 Filed 5-21-25; 8:45 am]
BILLING CODE 8011-01-P