Statement Summary
The Cboe EDGX Exchange, Inc. has proposed a rule change to its Fee Schedule, aimed at providing a discount for qualifying academic purchasers of its ad hoc historical U.S. Equity Short Volume and Trades Reports. This initiative, filed with the SEC on April 23, 2025, allows accredited academic institutions to buy historical data at a reduced rate, either at a 50% discount or for a fixed fee of $500, whichever is greater. These reports include detailed trading data not necessary for executing trades but beneficial for academic research and education. This move is designed to encourage academic studies of market data while maintaining competitive market practices. The Exchange believes these changes will foster research that benefits all market participants, as other exchanges also offer similar academic discounts. The rule change is effective immediately and is open for public comment.
Original Statement
SECURITIES AND EXCHANGE COMMISSION [Release No. 34-102970; File No. SR-CboeEDGX-2025-032] Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Update its Fee Schedule to Provide a Discount on Fees Assessed to Qualifying Academic Purchasers for Purchases of Ad Hoc Historical U.S. Equity Short Volume and Trades Reports
May 2, 2025
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”), and Rule 19b-4 thereunder, notice is hereby given that on April 23, 2025, Cboe EDGX Exchange, Inc. (“the Exchange” or “EDGX”) filed with the Securities and Exchange Commission (“the 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.
Proposed Rule Change
The Exchange proposes to update its Fee Schedule to provide a discount on fees assessed to qualifying academic purchasers for purchases ad hoc historical U.S. Equity Short Volume and Trades Reports. The text of the proposed rule change is provided in Exhibit 5.
Purpose and Statutory Basis
The Exchange proposes to update its Fee Schedule to provide a discount on fees assessed to qualifying academic purchasers for purchases ad hoc historical U.S. Equity Short Volume and Trades Reports (“Short Volume Reports”). By way of background, the Short Volume Report is an end-of-day report that summarizes certain equity trading activity on the Exchange, including trade date, total volume, short volume, and sell short exempt volume, by symbol. The Short Volume Report also includes an end-of-month report that provides a record of all short sale transactions for the month.
The Exchange notes that the Short Volume Report is a voluntary product, and potential customers may purchase it on an ad-hoc basis only. Cboe LiveVol, LLC, a subsidiary of the Exchange’s parent company, makes the Short Volume Report available for purchase on the LiveVol DataShop website. The monthly fee is $750 for Internal Distributors and $1,250 for External Distributors.
The Exchange proposes to provide a pricing incentive program in which qualifying academic purchasers may purchase the historical reports for the greater fee of (i) a 50% discount off of their total purchase or (ii) $500. The Exchange believes that academic institutions provide a valuable service for the Exchange in studying and promoting the equities market. Academic institutions do not trade upon the data for which they subscribe; hence they should receive the discount.
Benefits of the Proposed Changes
The proposed reduced fees for qualifying academic purchasers of historical Short Volume Reports will encourage and promote academic studies of its market data. Academic purchasers must be:
- An accredited academic institution
- Using the data in independent academic research, journals, or bona fide educational purposes
Furthermore, no commercial or profit-seeking usage is allowed, ensuring that the academic pricing remains exclusive to educational purposes.
Market Impact Considerations
The Exchange operates in a highly competitive environment, with multiple registered equities exchanges. The proposed rule change is consistent with the Securities Exchange Act of 1934 and promotes just and equitable principles of trade while removing impediments to a free and open market.
The implementation of this discount is anticipated to broaden the availability of U.S. equity market data to investors and enhance transparency, thus benefiting all market participants.
Solicitation of Comments
Interested persons are invited to submit written data, views, and arguments concerning the proposed rule change. Comments may be submitted via:
- Electronic submission through the Commission’s internet comment form
- Email to rule-comments@sec.gov (include file number SR-CboeEDGX-2025-032 in the subject line)
- Paper comments to the Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090
All submissions should refer to file number SR-CboeEDGX-2025-032 and be submitted by the end of the comment period specified by the Commission.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Sherry R. Haywood, Assistant Secretary.
