FR 2025-00299

The document in question is a notice from the Securities and Exchange Commission (SEC) regarding a proposed rule change filed by MIAX PEARL, LLC. This company oversees MIAX Pearl Options, a securities exchange. The proposed change, filed on December 20, 2024, aims to update their fee schedule by introducing new categories for fees associated with their proprietary market data feeds. The specific data feeds affected are the Top of Market (ToM) and the Liquidity Feed (PLF). As per the notice, this proposal has been designated for immediate implementation, meaning it takes effect without delay.

General Overview

The central theme of this document is the proposal to amend the fee schedule by MIAX PEARL for their proprietary market feeds. Market data feeds like ToM and PLF are essential for various stakeholders, including traders and financial analysts, as they provide important data regarding the securities market. The SEC's notice invites public commentary on this change, allowing stakeholders and the general public to provide feedback and express any concerns they might have before the end of January 2025.

Significant Issues and Concerns

A few issues arise from the structure and presentation of this document. Firstly, the absence of an abstract means that readers are not provided with a concise summary of the proposal's contents and implications. This can complicate an understanding of the document, especially for those without a background in securities or finance.

The language of the document is notably technical, which may deter public engagement. The explicit legal and financial terminology could create barriers for individuals who might otherwise wish to engage with or comment on the proposal. Additionally, there is a lack of detailed information about the potential impact of the new fees on users, the rationale behind the changes, or a comparison with existing fees. This lack of transparency can lead to uncertainty and possibly breed distrust among stakeholders.

Finally, the document does not address how the changes might differentially impact small versus large firms. This omission could lead to concerns that the changes may disproportionately favor certain participants in the market, potentially disadvantaging smaller or less resource-rich firms.

Broader Public Impact

While the document itself targets people involved in the securities market, the changes could indirectly impact the general public. Market data feeds influence trading strategies and financial market activities, which can in turn affect market liquidity and pricing. Therefore, any changes to the cost structure or accessibility of these feeds might eventually ripple out to affect individual investors.

Impact on Specific Stakeholders

The proposed rule changes are likely most impactful to financial professionals, including brokers and financial analysts who rely on market data for their operations. For large organizations, the update in the fee schedule might represent a routine business adjustment. However, for smaller firms or independent traders, any fee increase could pose a significant financial burden, potentially limiting their ability to compete.

This fee structure change could also influence how data is consumed across the market. Reduced access to data could lead to inefficiencies or slower market reactions, particularly affecting entities that cannot afford increased costs. Conversely, improved fee structuring could lead to more innovative uses of data or better services offered by MIAX Pearl Options.

Conclusion

Overall, the document signals a potentially significant shift in MIAX PEARL, LLC's approach to its data feeds, prompting stakeholders to brace for changes to their operational costs. While the public is invited to comment, the technical nature of the document might hinder broad-based participation. Transparency concerning the fee changes, along with their potential impacts across different segments of the market, will be crucial to ensure fair and equitable outcomes.