[Federal Register Volume 91, Number 74 (Friday, April 17, 2026)]
[Notices]
[Pages 20742-20747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-07493]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105235; File No. SR-SAPPHIRE-2026-15]
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the MIAX Sapphire Fee Schedule for All Liquidity Taker Event Reports
April 14, 2026.
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 March 31, 2026, MIAX Sapphire, LLC (``MIAX Sapphire'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a 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 is filing a proposal to amend the MIAX Sapphire
Options Exchange Fee Schedule (the ``Fee Schedule'') to: (i) increase
the annual fee for all Liquidity Taker Event Reports (described below);
(ii) establish annual and monthly fees for the Purge Liquidity Taker
Report; (iii) establish a discount program for market participants with
multiple annual subscriptions to the various Liquidity Taker Event
Reports; and (iv) establish a sunset period in which the Exchange will
no longer offer monthly subscriptions to all Liquidity Taker Event
Reports.
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings, and at MIAX Sapphire's principal office.
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 the Fee Schedule to: (i) increase
(or, as described below, establish) the annual fee for all Liquidity
Taker Event Reports; \3\ (ii) establish annual and monthly fees for the
Purge Report; (iii) establish a discount program for market
participants with multiple annual subscriptions to two or more of the
Reports; and (iv) establish a sunset period in which the Exchange will
no longer offer monthly subscriptions to the Reports.
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\3\ See Exchange Rules 531(a)-(d), providing the rule text for
the following: (a) Liquidity Taker Event Report--Simple Orders (the
``Simple Order Report''); (b) Liquidity Taker Event Report--Complex
Orders (the ``Complex Order Report''); (c) Liquidity Taker Event
Report--Resting Simple Orders (the ``Resting Simple Order Report'');
and (d) Purge Liquidity Taker Report (the ``Purge Report''). The
Simple Order Report, Complex Order Report, Resting Simple Order
Report and Purge Report are collectively referred to herein as the
``Reports.''
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Background
Currently, the Exchange offers the Simple Order Report, Complex
Order Report and Resting Simple Order Report as Member \4\-specific
reports, which are available for purchase by Exchange Members on a
voluntary basis. In general, the Simple Order Report, Complex Order
Report and Resting Simple Order Report are each daily reports that
provide a Member (``Recipient Member'') with its liquidity response
time details for executions against an order resting on the Simple
Order Book \5\ (or Strategy Book \6\), where that Recipient Member
attempted to execute against such resting order within certain
timeframes.\7\
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\4\ See Exchange Rule 100.
\5\ The ``Simple Order Book'' is the Exchange's regular
electronic book of orders and quotes. See Exchange Rule 100.
\6\ The ``Strategy Book'' is the Exchange's electronic book of
complex orders. See Exchange Rule 100. A ``complex order'' is any
order involving the concurrent purchase and/or sale of two or more
different options in the same underlying security (the ``legs'' or
``components'' of the complex order), for the same account, in a
conforming or non-conforming ratio as defined in Exchange Rule 518
for the purposes of executing a particular investment strategy. See
Exchange Rule 518(a).
\7\ See Exchange Rules 531(a)-(c) (providing details regarding
the information contained in each of the Simple Order Report,
Complex Order Report, and Resting Simple Order Report).
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For the Simple Order Report and Complex Order Report, the Exchange
assesses a fee of $4,000 per month for
[[Page 20743]]
monthly subscribers or the discounted fee of $24,000 per year for
annual subscribers. For the Resting Simple Order Report, the Exchange
assesses a fee of $2,000 per month for monthly subscribers or the
discounted fee of $12,000 per year for annual subscribers. The Exchange
also offers subscribers to both the Simple Order Report and Complex
Order Report a discount for annual subscriptions to both of those
reports called the ``12 Month Subscription Discount'' in Section 7 of
the Fee Schedule. In particular, the Exchange assesses subscribers a
discounted fee of $40,000 per year when they purchase annual
subscriptions to both the Simple Order Report and Complex Order Report.
Subscribers with an existing 12 month subscription to either the Simple
Order Report or Complex Order Report, but not both, may add a
subscription to the Simple Order Report or Complex Order Report during
their current 12 month subscription. In such case, the fee for the
added report is pro-rated for the remainder of the subscriber's current
12 month subscription based on the amount of the 12 Month Subscription
Discount. Subscribers receive the 12 Month Subscription Discount for
subscribing to both the Simple Order Report and Complex Order Report on
the renewal date of their original subscription. The Exchange also
provides that new subscribers will be charged for the full calendar
month for which they subscribe and will be provided Liquidity Taker
Event Report (Simple, Complex, and/or Resting Simple Order Report) data
for each trading day of the calendar month prior to the day on which
they subscribed.
On February 5, 2026, the Exchange filed a proposed rule change with
the Securities and Exchange Commission (``Commission'') to establish
the Purge Report.\8\ In that filing, the Exchange stated that it would
issue an alert to market participants regarding the date that the Purge
Report would be available to subscribers. On March 26, 2026, the
Exchange issued an alert announcing that the Purge Report would become
available for subscription beginning April 1, 2026, with fees to be
announced in a future alert and rule filing with the Commission.\9\
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\8\ See Securities Exchange Act Release No. 104859 (February 18,
2026), 91 FR 8546 (February 23, 2026) (SR-SAPPHIRE-2026-06).
\9\ See Trading Alert, MIAX Exchange Group--Options Markets--
Purge Liquidity Taker Report Launching April 1, 2026, available at
https://www.miaxglobal.com/alert/2026/03/26/miax-exchange-group-options-markets-purge-liquidity-taker-report-launching-2?nav=all.
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Proposal To Increase the Annual Fee for the Simple Order Report,
Complex Order Report and Resting Simple Order Report
The Exchange proposes to amend Section 7 of the Fee Schedule to
increase the annual fee for each of the Simple Order Report and Complex
Order Report from $24,000 to $30,000.\10\ The Exchange notes that the
annual fee for the Simple Order Report and Complex Order Report, as
proposed to be amended by herein (including the multiple report
discount described below), remains similar to the annualized fee
charged by other exchanges for their similar reports.\11\ The proposed
annual fee of $30,000 for each of the Simple Order Report and Complex
Order Report is also discounted when compared to the monthly fee for
each report of $4,000 (i.e., $4,000 per month multiplied by twelve
months means that a subscriber that took the monthly subscription for
an entire year would be charged $48,000 rather than the $30,000
proposed annual fee). The Exchange also proposes to increase the annual
fee for the Resting Simple Order Report from $12,000 to $15,000. The
Exchange does not propose to amend the monthly fee amounts.
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\10\ The Exchange also proposes to make non-substantive changes
to amend all references in Section 7 of the Fee Schedule from ``12
month subscription'' to now be to ``annual subscription.'' The
purpose of these changes is to provide consistency in the Fee
Schedule regarding fees for the Reports, including changes proposed
in this filing. The Exchange also proposes to delete the ``12 Month
Subscription Discount'' as the Exchange proposes a revised
discounted fee structure herein.
\11\ See, e.g., Cboe BZX Exchange, Inc. (``BZX'') Options Fee
Schedule, Cboe Timestamping Service (assessing members a fee of
$3,500 per month for a subscription to the Missed Liquidity Report)
and Cboe EDGX Exchange, Inc. (``EDGX'') Options Fee Schedule, Cboe
Timestamping Service (assessing members a fee of $3,500 per month
for a subscription to the Missed Liquidity Report). On an annualized
basis, a BZX or EDGX member would pay a total of $42,000 per year
for the Missed Liquidity Report ($3,500 per month multiplied by 12
months). See also BZX Rule 21.15(b)(7)(1) (``The Missed Liquidity
Report. . .provides time details for executions of orders and quotes
that rest on the book where the Member receiving the report
attempted to execute against a resting order or quote within an
Exchange-determined period of time. . .'') and EDGX Rule
21.15(b)(7)(1) (``The Missed Liquidity Report . . . provides time
details for executions of orders and quotes that rest on the book
where the Member receiving the report attempted to execute against a
resting order or quote within an Exchange-determined period of time
. . .'').
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Proposal To Establish Annual and Monthly Fees for the Purge Report
The Exchange proposes to amend Section 7 of the Fee Schedule to
establish a new row in the table to provide for a monthly and annual
fee for the Purge Report, which will be offered as a subscription for
the first time beginning April 1, 2026. In general, the Purge Report,
is a daily report that provides a Member (``Recipient Member'') with
the liquidity response/taker time details for executions against quotes
entered by the Recipient Member that are resting on the Simple Order
Book that occur before and after the receipt of a purge \12\ message
sent by the Recipient Member, where that Recipient Member attempted to
cancel such resting quote within the timeframes specified under
Exchange Rule 531(d)(2).\13\
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\12\ Purge messages are sent over purge ports, which support
only MEO mass cancel messages. See MIAX Sapphire Options Exchange
User Manual, Version 1.2.0, Section 5.01 (dated December 19, 2025),
available at https://www.miaxglobal.com/miax_sapphire_electronic_market_user_manual.pdf.
\13\ See Exchange Rule 531(d) (providing details regarding the
information contained in the Purge Report). See also Securities
Exchange Act Release No. 104859 (February 18, 2026), 91 FR 8546
(February 23, 2026) (SR-SAPPHIRE-2026-06).
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The Exchange proposes to assess a fee of $4,000 per month for
monthly subscriptions to the Purge Report or $30,000 per year for
annual subscriptions to the Purge Report. Similar to the Simple Order
Report, Complex Order Report and Resting Simple Order Report, new
subscribers to the Purge Report will be charged for the full calendar
month for which they subscribe and will be provided Purge Report data
for each trading day of the calendar month prior to the day on which
they subscribed.
Proposal to Establish a Sunset Period for Monthly Subscriptions
Next, the Exchange proposes to amend Section 7 of the Fee Schedule
to establish a sunset period for all monthly subscriptions to the
Reports. As described above, market participants may currently purchase
monthly subscriptions to the Simple Order Report ($4,000 per month),
Complex Order Report ($4,000 per month), and the Resting Simple Order
Report ($2,000 per month). Also as described and proposed above,
beginning April 1, 2026, market participants may purchase monthly
subscriptions to the Purge Report for the corresponding fee of $4,000
per month.
The Exchange now proposes to amend the Fee Schedule to provide that
effective December 31, 2026, the Exchange will no longer offer monthly
subscriptions to the Simple Order Report, Complex Order Report, Resting
Simple Order Report, and Purge Report. Current monthly subscribers to
each of the Reports may terminate their subscriptions or transition to
an annual
[[Page 20744]]
subscription at the prevailing rates for each of the Reports at any
time. Further, the Exchange proposes to amend the Fee Schedule to
provide that beginning January 1, 2027, the Exchange will only offer
annual subscriptions to the Simple Order Report, Complex Order Report,
Resting Simple Order Report and Purge Report, with new/renewal
subscriptions taking effect on a semi-annual basis (i.e., January 1st
or July 1st of each year). For new subscribers between the semi-annual
subscription dates of January 1st or July 1st, beginning April 1, 2026,
the Exchange will pro-rate the annual fee based on the number of months
remaining to the next semi-annual renewal date. The pro-rated fee will
take into account the discount for subscribers with multiple reports,
as described below. All current (prior to April 1, 2026) annual
subscriptions will run through the expiration date of the current
annual term at the current annual rates (i.e., $24,000 per year for the
Simple Order Report or Complex Order Report; $12,000 per year for the
Resting Simple Order Report; and $40,000 per year for combined annual
subscriptions to both the Simple Order Report and Complex Order
Report). At the expiration of the current annual term, subscribers may
renew their annual subscriptions at the prevailing rates, including the
discount for multiple subscriptions as described below, or terminate
their subscriptions.
The purpose of these changes is to reduce billing complexity and
streamline the fee structure for the Reports. The Exchange notes that
the majority of subscribers purchase annual subscriptions to the
Reports and each monthly subscriber will have nine months (i.e., April
through December 2026) to determine whether they would like to
transition to an annual subscription or terminate their subscriptions
altogether.
Proposal To Establish a Discount Program for Multiple Annual
Subscriptions
Finally, the Exchange proposes to amend Section 7 of the Fee
Schedule to establish a discount for market participants that purchase
multiple annual subscriptions. In particular, the Exchange proposes to
provide in the Fee Schedule that effective beginning April 1, 2026, new
annual subscribers to multiple Reports will be charged based on the
number and type of Reports pursuant to the following schedule of fees:
An annual subscription to one of the following will be
$30,000 annually (per the rates in the table in Section 7 of the Fee
Schedule): the Simple Order Report, Complex Order Report or Purge
Report.
Annual subscriptions to two of the following will be
$50,000 annually: the Simple Order Report, Complex Order Report and/or
Purge Report.
Annual subscriptions to all three of the following will be
$70,000 annually: the Simple Order Report, Complex Order Report and
Purge Report.
For subscribers to one or more of the Simple Order Report,
Complex Order Report or Purge Report, the cost to add an annual
subscription to the Resting Simple Order Report will be $10,000 instead
of the fee described for the Resting Simple Order Report in the table
in Section 7 of the Fee Schedule (i.e., $15,000, as proposed to be
increased herein).
The following examples are intended to clarify how the Exchange
intends to assess fees for the Reports during the transition to only
annual subscriptions, including how the Exchange will assess fees
pursuant to the proposed discount program (all subscriptions are
assumed to be on an annual basis at the proposed higher rates as the
discount will only apply to annual subscriptions):
Example 1
``Member A'' subscribes annually to all four Reports beginning July
1, 2026. ``Member A'' would be assessed a total fee of $80,000 pursuant
to the proposed discount for multiple annual subscriptions ($70,000 for
the Simple Order Report, Complex Order Report and Purge Report +
$10,000 to add on the Resting Simple Order Report). ``Member A's''
subscription to all four Reports would run through June 30, 2027, at
which time ``Member A'' would be subject to the next semi-annual
renewal period and could terminate any or all subscriptions.
Example 2
``Member B'' subscribes annually to the Simple Order Report
beginning April 20, 2026. ``Member B'' would be assessed $2,500 each
month for the months of April (and receive the full data set for the
entire month of April), May and June 2026, for a total of $7,500. This
is calculated by dividing the proposed annual fee of $30,000 for the
Simple Order Report by twelve months ($30,000/12 = $2,500) and then
multiplying by the number of months remaining until the July 1st semi-
annual renewal date, including any partial month when the subscription
began (i.e., remainder of April, a and full months for May and June,
which equals three total months). Beginning July 1, 2026, the semi-
annual renewal date, ``Member B'' would be assessed the annual fee of
$30,000 for the Simple Order Report subscription, which would run
through June 30, 2027.
Example 3
Prior to April 1, 2026, ``Member C'' has an annual subscription to
both the Simple Order Report and Complex Order Report, with an
expiration date of February 28, 2027. ``Member C'' has already paid the
$40,000 discounted rate (per the current terms of the Fee Schedule) for
a subscription to both the Simple Order Report and Complex Order
Report. ``Member C'' will continue to receive data for the Simple Order
Report and Complex Order Report through the end of February 2027. At
that time, if ``Member C'' wanted to continue subscribing to only the
Simple Order Report and Complex Order Report, then ``Member C'' would
be assessed pro-rated fees of $16,666.67 \14\ covering March, April,
May and June 2027, which is based on the discounted rate for multiple
annual subscriptions (i.e., $50,000 annually). This is calculated by
dividing the proposed annual fee of $50,000--the discounted rate for
annual subscriptions to multiple Reports (other than the Resting Simple
Order Report)--by twelve months ($50,000/12 = $4,166.66) and then
multiplying by the number of months remaining until the July 1st semi-
annual renewal date, including any partial month when the subscription
began (i.e., March, April, May and June 2027, which equals four total
months). Beginning July 1, 2027, the semi-annual renewal date, ``Member
C'' would be assessed the discounted annual fee of $50,000 for multiple
subscriptions, which would run through June 30, 2028.
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\14\ Throughout this filing, the Exchange rounded up or down to
the nearest whole cent when providing fee calculations.
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Example 4
``Member D'' has a monthly subscription to the Simple Order Report.
``Member D'' will continue to pay the $4,000 monthly subscriber fee
each month until the end of December 2026. At that time, ``Member D''
may terminate their subscription entirely (or at anytime before
December) or transition to an annual subscription for the Simple Order
Report, which would be $30,000, effective for January 1, 2027. In this
case, there would be no pro-rated fees because January 1st is the semi-
annual renewal date.
Example 5
``Member E'' has annual subscriptions to both the Simple Order
Report and Complex Order Report beginning March
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1, 2026. ``Member E'' is assessed the $40,000 discounted fee pursuant
to the ``12 Month Subscription Discount'' as currently provided for in
Section 7 of the Fee Schedule, pursuant to which the Exchange will
provide ``Member E'' the data for the Simple Order Report and Complex
Order Report each month through February 2027. Assume that in September
2026, ``Member E'' wants to add an annual subscription to the Purge
Report. In this case, the Exchange will assess ``Member E'' the pro-
rated discounted fee for multiple annual subscriptions until the ``12
Month Subscription Discount'' expires, at which time the newly proposed
rates for subscribing to two or more annual reports will apply, as
described above. For clarity, to add an annual subscription to the
Purge Report in September 2026, ``Member E'' will be assessed an
additional $1,666.67 each month (calculated by dividing the $20,000
discounted price to add an annual subscription to the Purge Report
based on the multiple report annual discount and is in addition to the
$40,000 already paid) for September, October, November, and December
2026, as well as January and February 2027. Beginning March 1, 2027,
assuming ``Member E'' wants to continue annual subscriptions to the
Simple Order Report, Complex Order Report and Purge Report, the
Exchange will assess ``Member E'' the monthly pro-rated amount for
three annual subscriptions until the next semi-annual renewal date of
July 1, 2027. Accordingly, ``Member E'' will be assessed $5,833.33 each
month of March, April, May and June 2027. This is calculated by
dividing the annual fee for subscribing to all three of the Simple
Order Report, Complex Order Report and Purge Report ($70,000) by twelve
months, which equals $5,833.33 per month until the next semi-annual
renewal date. On July 1, 2027, ``Member E'' will be assessed the full
annual fee for multiple annual subscriptions of $70,000.
The purpose of establishing the discount program for market
participants that purchase annual subscriptions to two or more of the
Reports is to provide an incentive via reduced fees for market
participants to continue receiving the data provided in the Reports.
* * * * *
The Reports are being offered to Members on a completely voluntary
basis in that the Exchange is not required by any rule or regulation to
make this data available and potential subscribers may purchase any
report only if they voluntarily choose to do so. It is a business
decision of each Member whether to subscribe to each Report or not. Not
all Members purchase the Reports. Members may cancel their subscription
to any of the Reports at any time.
The proposed changes are effective beginning April 1, 2026.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\15\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\16\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
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 protect investors and the public interest, and is
not designed to permit unfair discrimination among customers, brokers,
or dealers. The Exchange also believes that its proposal to adopt fees
for the reports is consistent with Section 6(b) of the Act \17\ in
general, and furthers the objectives of Section 6(b)(4) of the Act \18\
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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\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(5).
\17\ 15 U.S.C. 78f(b).
\18\ 15 U.S.C. 78f(b)(4).
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In adopting Regulation NMS, the Commission granted self-regulatory
organizations (``SROs'') and broker-dealers increased authority and
flexibility to offer new and unique market data to the public. It was
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. The Exchange believes that the Reports
further broaden the availability of U.S. option market data to
investors consistent with the principles of Regulation NMS. The Reports
also promote increased transparency through the dissemination of the
data contained in each of the Reports. Particularly, the Reports will
benefit investors by facilitating their prompt access to the value-
added information that is included in each of the Reports. The Reports
will allow Members to access information regarding their trading or
purge activity that they may utilize to evaluate their own trading or
purge behavior and order interactions.
Proposals To Increase the Annual Fee for the Simple Order Report,
Complex Order Report and Resting Simple Order Report and Establish Fees
for the Purge Report
The Exchange believes the proposed increased annual fee for the
Simple Order Report and Complex Order Report are reasonable as the
proposed increase is modest and is still comparable to the annualized
fee charged by other exchanges for similar reports. In particular, BZX
and EDGX each assess a monthly fee of $3,500 for subscriptions to their
Missed Liquidity Reports. On an annualized basis, a BZX or EDGX member
would pay a total of $42,000 per year for the Missed Liquidity Report
($3,500 per month multiplied by 12 months). When compared to the
Exchange's proposed annual fee of $30,000 for each of the Simple Order
Report or Complex Order Report, the Exchange believes its proposed fee
increase is reasonable. Further, when looking at the Exchange's
proposed fee for the Simple Order Report and Complex Order Report on a
per month basis, the Exchange believes the proposed fee is reasonable
as it is effectively less than the monthly fee assessed by BZX and EDGX
for their similar reports (i.e., $30,000 divided by twelve months =
$2,500 per month).\19\
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\19\ See supra note 11.
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The Exchange believes the proposed increased fee for an annual
subscription to the Resting Simple Order Report is reasonable as the
proposed fee is still both modest and lower than fees (as proposed to
be increased herein) charged by the Exchange for similar data products,
i.e., the Simple Order Report and Complex Order Report. The proposed
increased fee for the Resting Simple Order Report continues to be less
expensive than the Exchange's Simple Order Report and Complex Order
Report because the Exchange believes that the information provided in
the Resting Simple Order Report may not be as valuable to market
participants as the other information contained in the Simple Order
Report and Complex Order Report, which measures the data in the first
200 microseconds of the time the resting order was received by the
Exchange. While the Exchange believes that the Resting Simple Order
Report continues to be useful to market participants, it may not be as
helpful as the other reports offered by the Exchange and, therefore,
the Exchange proposes a lower annual fee for the Resting Simple Order
Report.
The Exchange believes the proposed fees for the Purge Report are
reasonable
[[Page 20746]]
because they are identical to the fees (as proposed) that the Exchange
assesses for its Simple Order Report and Complex Order Report. The
Exchange also believes the proposed fees for the Purge Report are
reasonable as they would support the introduction of a new market data
product to Market Makers that are interested in gaining insight into
latency in connection with purge messages that failed to cancel their
quotes resting on the Simple Order Book. The Purge Report accomplishes
this by providing those Market Makers data to analyze by how much time
their purge message may have missed cancelling a quote before (or
after) execution of that quote against a contra-side order. The Purge
Report will provide greater visibility by showing how much time a purge
message missed canceling a quote, particularly as market conditions
change throughout the day and Market Makers attempt to cancel and
replace quotes in certain symbols.
Indeed, if the Exchange proposed fees that market participants
viewed as excessively high, then the proposed fees would simply serve
to reduce demand for the Reports, which as noted, are entirely
optional. Other options exchanges are also free to introduce their own
comparable data products with lower prices to better compete with the
Exchange's offerings. As such, the Exchange believes that the proposed
fees for the Reports are reasonable and set at a level to compete with
other options exchanges that may choose to offer similar reports or do
offer similar reports today. Moreover, if a market participant views
another exchange's potential report as more attractive, then such
market participant can merely choose not to purchase the Exchange's
Reports and instead purchase another exchange's similar data product,
which may offer similar data points, albeit based on that other
market's trading activity.
Selling market data, such as one of the Reports, is also a means by
which exchanges compete to attract business. To the extent that the
Exchange is successful in continuing to attract subscribers for the
Reports, it may earn trading revenues and further enhance the value of
its data products. If the market deems the proposed fees to be unfair
or inequitable, firms can decrease or discontinue their use of the data
and/or avail themselves of similar products that may be offered by
other exchanges.\20\ The Exchange, therefore, believes that the
proposed fees for the Reports reflect the competitive environment and
would be properly assessed to subscribers to each of the Reports. The
Exchange also believes the proposed fees are equitable and not unfairly
discriminatory as the fees would apply equally to all subscribers who
choose to purchase such data. It is a business decision of each Member
that chooses to purchase any of the Reports. The Exchange's proposed
fees would not differentiate between subscribers that purchase the
Reports and are set at modest levels that would allow any interested
Member to purchase such data based on their business needs.
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\20\ See supra note 11.
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The Exchange reiterates that the decision as to whether or not to
purchase the Reports is entirely optional for all potential
subscribers. Indeed, no market participant is required to purchase the
Reports, and the Exchange is not required to make the Reports available
to all investors. It is entirely a business decision of each Member to
subscribe to the Reports. The Exchange offers the Reports as a
convenience to Members to provide them with additional information
regarding trading or purging activity on the Exchange on a delayed
basis after the close of regular trading hours. A Member that chooses
to subscribe to the Reports may discontinue receiving the Reports at
any time if that Member determines that the information contained in
the Reports is no longer useful.
Proposal To Establish a Sunset Period for Monthly Subscriptions
The Exchange believes its proposal to sunset monthly subscriptions
at the end of 2026 is reasonable because it is intended to reduce
billing complexity and streamline the fee structure for the Reports.
The Exchange notes that the majority of subscribers purchase annual
subscriptions to the Reports and each monthly subscriber will have nine
months to determine whether they would like to transition to an annual
subscription or terminate their subscriptions altogether. The Exchange
believes this proposed change is equitable and not unfairly
discriminatory because all subscribers will be subject to the same
annual fees once the sunset period ends for monthly subscriptions, with
the annual fee for each Report assessed at a discounted rate compared
to the current monthly rates. The Exchange also believes that
transitioning to only annual subscriptions will improve the efficiency
by which the Exchange may deliver the Reports by doing so on a regular
basis over a prolonged and set period of time.
Proposal To Establish a Discount Program for Multiple Annual
Subscriptions
The Exchange also believes it is reasonable to provide discounts
for market participants that subscribe to multiple Reports. The
Exchange believes the discounted fees for subscribers to multiple
Reports may incentivize more Members to subscribe and determine whether
they realize value from the Reports. The Exchange believes the
discounted fees for the Reports is equitable and not unfairly
discriminatory because the discounted rates will apply equally to all
market participants that subscribe to two or more of the Reports.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act.
Inter-Market Competition
The Exchange developed the Reports in order to keep pace with
changes in the industry and evolving customer needs and demands, and
believes the Reports will continue to contribute to robust competition
among national securities exchanges, including with the proposed fee
changes described herein. The Exchange believes the proposed fee
changes in this filing permit fair competition among national
securities exchanges, all of which may create similar data products for
their markets, including at least two exchanges that already offer
similar products.\21\
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\21\ See supra note 11.
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The Exchange does not believe the proposed fee changes would cause
any unnecessary or inappropriate burden on intermarket competition as
other exchanges are free to introduce their own comparable reports with
lower prices to better compete with the Exchange's offerings. The
Exchange operates in a highly competitive environment, and its ability
to price the Reports is constrained by competition among exchanges who
choose to adopt similar products. The Exchange must consider this in
its pricing discipline in order to compete for subscribers of the
Exchange's market data via the Reports. For example, proposing fees
that are excessively higher than fees for potentially similar data
products would simply serve to reduce demand for the Exchange's
Reports, which as discussed, market participants are under no
obligation to utilize. In this competitive environment, potential
purchasers are
[[Page 20747]]
free to choose which, if any, similar product to purchase to satisfy
their need for market information. As a result, the Exchange believes
this proposed rule change permits fair competition among national
securities exchanges.
Intra-Market Competition
The Exchange does not believe the proposed rule change would cause
any unnecessary or inappropriate burden on intramarket competition.
Particularly, the proposed fees apply uniformly to any purchaser in
that the Exchange does not differentiate between subscribers that
purchase the reports. The proposed fees are set at a modest level that
would allow any interested Member to purchase such data based on their
business needs.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
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)(ii) of the Act,\22\ and Rule 19b-4(f)(2) \23\ 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 shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.
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\22\ 15 U.S.C. 78s(b)(3)(A)(ii).
\23\ 17 CFR 240.19b-4(f)(2).
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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-SAPPHIRE-2026-15 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-SAPPHIRE-2026-15. 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 filing 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-SAPPHIRE-2026-15 and
should be submitted on or before May 8, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-07493 Filed 4-16-26; 8:45 am]
BILLING CODE 8011-01-P