FR 2025-04519

The document published in the Federal Register announces a proposed rule change by MIAX PEARL, LLC, submitted to the Securities and Exchange Commission (SEC). This proposed change concerns the exchange's fee schedule for its options trading and specifically introduces new fee categories related to its proprietary market data feeds, the Top of Market (ToM) feed and the Liquidity Feed (PLF). The document invites public comments on this proposal until April 9, 2025.

General Summary

The proposed rule change by MIAX PEARL, LLC aims to amend its options trading fee schedule. The primary focus of this amendment is to introduce new fee categories for two types of market data feeds. The document provides information on how to access the full proposal through the websites of both MIAX Pearl and the SEC. It also outlines the process through which stakeholders and interested parties can submit their comments.

Significant Issues and Concerns

Several significant issues emerge from a detailed examination of the document:

• Lack of Specific Details: The document does not provide granular details about the new fee categories for the proprietary market data feeds. This absence of specific information makes it challenging for stakeholders to assess the impact of the proposed changes accurately. It creates uncertainty regarding how these changes might affect users financially and operationally.

• Complex Language: The document is heavily laden with technical jargon and references to regulatory stipulations. Such complexity might limit public understanding, particularly for individuals not well-versed in securities regulation, thereby restricting broader public engagement.

• Transparency and Justification: There is a noticeable lack of explanation regarding the justification or underlying reasons for introducing these new fee categories. Without this context, stakeholders cannot fully understand the motivations behind the changes or how they align with larger strategic or operational objectives.

• Financial Impact: Importantly, the document does not explore the potential financial implications of the new fee structure. There is no cost-benefit analysis or discussion on how changes might affect the market or industry participants, which is crucial information for users who need to anticipate any changes in their cost structures.

• Regulatory Alignment: The document also lacks detail on how the new fee categories align with broader regulatory objectives or market standards. This might raise concerns about whether the changes are in step with established regulatory norms and practices.

Public Impact

The impact on the public could vary. For the average person, especially retail investors who rely on information from such exchanges, these changes might seem distant. However, if fee increases are passed down to end-users through their brokers, it could lead to increased costs for trading.

For market participants and stakeholders who leverage these data feeds for decision-making or trading, the changes could lead to increased operational costs. Little is disclosed about potential cost-benefit considerations, which might leave users in doubt about whether the value gained from these datasets aligns with the fees.

Impact on Specific Stakeholders

• Market Participants: Institutional investors, brokerage firms, and other market participants who use the ToM and PLF feeds will likely be the most affected. Without clear communication about fee changes, these stakeholders might need to reassess their budgets and strategies to adapt to potentially increased costs.

• Regulatory and Compliance Officials: Although the proposal follows the necessary procedural steps for changes in rules, the lack of comprehensive details could complicate reviews by regulatory officials who must ensure these changes meet legal requirements and serve the public interest.

In summary, while the proposed rule change has been submitted following appropriate channels, the lack of specific details and transparent justifications poses challenges in evaluating the potential impact comprehensively. The proposal may ultimately affect the costs borne by market participants, although the extent of this impact remains unclear without additional information.