FR 2025-03413

Summary of the Proposal

The document outlines a proposed rule change filed by MIAX PEARL, LLC, regarding the fee schedule for its options exchange. This change introduces new categories for fees related to the exchange's proprietary market data feeds, specifically the "Top of Market" (ToM) feed and the "Liquidity Feed" (PLF). Notably, the proposal is set to take immediate effect, prompting the Securities and Exchange Commission (SEC) to solicit public comments.

Significant Issues and Concerns

One concerning aspect of the document is the lack of detail about the new fee categories. This omission makes it difficult for stakeholders to evaluate the potential impacts, including fairness or necessity of the fees. Furthermore, the document uses legal and technical jargon that may be difficult for the general public to understand. This complexity could hinder meaningful public engagement and feedback during the comment period.

Moreover, there is no discussion about the rationale behind the immediate effectiveness of the rule change. The absence of any public interest justification or analysis of potential impacts on different stakeholders might be seen as a transparency issue. While the process for submitting comments is outlined, the document does not actively encourage public participation or explain the importance of feedback, potentially deterring public involvement.

Potential Impact on the Public

Broadly, the public may be impacted by changes in market data feed fees if these costs are eventually passed down to consumers. For instance, higher fees for access to critical market data might lead to increased trading costs for retail investors, affecting their overall participation in the market.

Impact on Specific Stakeholders

For institutional investors and trading firms that rely heavily on real-time data for efficient trading operations, the new fee categories may introduce added operational costs. Depending on the specifics of the fees, this could influence their trading strategies or lead to adjustments in market operations. Conversely, MIAX PEARL might benefit financially from the new fee structure if it attracts more users to its market data feeds.

Overall, while the proposal facilitates adjustments aimed at refining how the exchange handles its market data services, the lack of detailed insights complicates efforts to thoroughly understand the proposal's broader implications. This situation underscores the importance of accessible, detailed, and transparent communication from regulatory bodies in fostering public confidence and engagement.