FR 2025-00409

Nasdaq BX, Inc., a part of the Nasdaq stock exchange, is proposing a change to its fee structure for certain market data products. This proposal, outlined in a document from the Federal Register, specifically targets fees related to options market data products such as BX Top and BX Depth. The aim is to adjust these fees based on inflation, reflecting changes in the economy since the last update of these fees. The Securities and Exchange Commission (SEC) has been notified of this proposal and it is intended to be put into operation starting January 1, 2025. Meanwhile, public comments on this proposal are invited until February 3, 2025.

General Summary

The document is a notice concerning Nasdaq BX, Inc.’s adjustment of fees for its options market data products. These products, BX Top and BX Depth, provide critical trading information which both individual and institutional investors use. The modifications in fees are set to align with the rate of inflation since the last fee adjustment. The proposal will be operative at the beginning of 2025, though it is filed with immediate effect. Public commentary is also being solicited, giving stakeholders an opportunity to voice their opinions on these changes.

Significant Issues and Concerns

The document does present certain concerns. Primarily, it lacks detailed information on how inflation will specifically be measured or which economic indicators will be used to adjust these fees. Transparency in this area could help the public understand the rationale behind proposed changes. Additionally, while the Commission has called for comments on the proposal, the document does not provide a substantial rationale for the necessity of these changes beyond them being inflationary adjustments. This lack of information might hinder in-depth analyses or constructive feedback.

Furthermore, there is a potential for confusion regarding when these fee changes actually take effect. While the proposal is effective immediately upon filing, it is operative starting January 1, 2025. This distinction, although legally relevant, could confuse those unfamiliar with regulatory procedures.

Impact on the Public

Broadly speaking, the public may see changes in costs when accessing market data through these Nasdaq products. Investors who rely on BX Top and BX Depth for real-time data might experience increased costs, reflecting inflationary adjustments. While changes tied to inflation are common, they may nonetheless raise concerns about the affordability and accessibility of critical financial data.

Impact on Specific Stakeholders

Different stakeholders could experience varied impacts. For smaller investors or individual traders, fee bumps, even minor ones, can influence their trading budget. In contrast, larger firms or institutional investors may absorb these costs more easily, though they will still need to adjust their financial planning to accommodate the increase.

The call for public comments implies that there will be an opportunity for both individuals and organizations to voice their perspectives, potentially influencing final determinations or fostering a dialogue about more comprehensive transparency or fee structures. By encouraging feedback, the Commission might potentially mitigate negative impacts or adjust proposals to better serve all market participants.