FR 2025-03414

The document published in the Federal Register outlines a proposed change to the fee schedule of MIAX Emerald, LLC, a securities exchange. The changes pertain to the fees for specific market data feeds, including the Top of Market feed, Complex Top of Market feed, Administrative Information Subscriber feed, and the MIAX Emerald Order Feed. Filed with the Securities and Exchange Commission (SEC) on February 14, 2025, these changes have been designated for immediate effect. The SEC is open to receiving public comments on these modifications until March 25, 2025, to determine if they align with the Securities Exchange Act of 1934.

General Summary

The proposed rule change primarily revolves around adopting new categories or structures for pricing the distribution of MIAX Emerald’s proprietary market data. Such data feeds are critical for stakeholders in the financial sector as they provide real-time information essential for trading and market analysis. The inclusion of these new fee categories suggests an adjustment in how MIAX Emerald wants to manage and monetize its data sharing.

Significant Issues and Concerns

The main issue surrounding this document is the lack of detailed information regarding the actual costs associated with these new fee categories. Without specifics, stakeholders are left without a clear understanding of the financial implications. This absence of clarity makes it challenging for potential data purchasers to evaluate how their expenses might change under the new fee structure.

Further compounding the issue is the technical nature of the document. References to specific sections of legislative acts and regulations, while necessary for regulatory purposes, can be hard for general readers or smaller stakeholders to navigate. This could lead to misinterpretation and misunderstanding among individuals or smaller firms who are not well-versed in regulatory jargon.

The document also does not outline the rationale behind the proposed changes or the benefits they might offer. In the absence of such information, stakeholders might question the necessity or advantages of the proposed fee schedule modifications. By not providing an analysis or justification, it’s difficult to assess the broader impact or fairness of these changes.

Impact on the Public and Stakeholders

For the general public, the document does not present immediate impacts. However, it might influence broader market stability and pricing transparency if it affects how securities information is distributed. For investors, particularly institutional and high-frequency traders who rely heavily on timely and specific data, changes to data fees could influence their operational costs and, by extension, their trading strategies and market competitiveness.

Specific stakeholders such as broker-dealers, financial analysts, and individual investors who rely on these data feeds might find themselves facing increased costs if the fee changes result in increases. This could result in smaller firms facing higher operational costs, potentially impacting market competition.

On the positive side, a well-structured fee system can help the Exchange invest in better data services, enhancing the overall quality and reliability of the information provided. This could ultimately benefit users through improved data products and services. However, to gain these benefits, stakeholders need clear and detailed information about these changes to align their business strategies accordingly.

In conclusion, while the document indicates important developments in how MIAX Emerald manages its data feed costs, the lack of specificity and clarity raises valid concerns among its users. The potential impacts—positive and negative—on various stakeholders deserve a thorough examination and discussion, guided by more transparent and detailed information.