The Securities and Exchange Commission published a notice on December 16, 2025, regarding a proposed rule change by Cboe C2 Exchange, Inc., filed on December 3, 2025, under Section 19(b)(1) of the Securities Exchange Act of 1934. This filing, deemed immediately effective, amends the exchange's fee schedule to introduce a free trial period of up to six months for ad-hoc historical requests of specific Open-Close Data products. The trial applies to all C2 Trading Permit Holders and non-holders who have not previously subscribed to or received a free trial for this data. Additionally, the exchange removes outdated language about a temporary discount that expired in June 2025. This development reflects ongoing efforts by options exchanges to make historical market data more accessible, potentially aiding investors in analyzing trading patterns and strategies amid a competitive landscape of 16 registered options exchanges.
Background on Open-Close Data Products
Cboe C2 offers several Open-Close Data products, which provide summaries of trading activity on the exchange. The End-of-Day Open-Close Data delivers an end-of-day volume summary at the option level, categorized by origin such as customer, professional customer, broker-dealer, or market maker. It further breaks down data by side of the market (buy or sell), price, transaction type (opening or closing), and trade size buckets for customer and professional customer volumes. This data is proprietary to C2 and excludes information from other exchanges. It serves as a historical product, not a real-time feed, with availability starting from January 2018.
Intraday Open-Close Data offers similar summaries but captures snapshots during the trading day. It is available in two formats: ten-minute intervals and one-minute intervals. Data from these intervals becomes available to subscribers within five minutes after each period ends. Like the end-of-day version, this data is voluntary and optional for market participants. The exchange emphasizes that these products help users analyze option trade and volume data, test trading models, and develop analytical strategies, though they are not essential for executing trades.
Details of the Proposed Rule Change
The core of the filing introduces a free trial for historical ad-hoc requests of End-of-Day, Intraday Ten-Minute Interval, and Intraday One-Minute Interval Open-Close Data, collectively termed Historical Open-Close Data. Currently, fees for these requests are $400 per month for end-of-day data, $500 per month for ten-minute intraday data, and $1,500 per month for one-minute intraday data. The trial waives these fees for up to six months, effective from November 24, 2025, but only for entities that have not previously subscribed or received a similar trial.
The exchange states this incentive aims to attract new subscribers by allowing them to test the data's utility before committing financially. As noted in the filing, 'The Exchange believes proposed trial will serve as an incentive for new subscribers who have never purchased Historical Open-Close Data to start purchasing such data.' It also removes references to a 20% discount on purchases of $20,000 or more, which applied from April 23, 2025, through June 30, 2025, as that period has ended.
Statutory Basis and Regulatory Context
Cboe C2 justifies the change under Section 6(b) of the Exchange Act, particularly Section 6(b)(5), which requires exchange rules to promote just and equitable principles of trade, prevent fraudulent practices, and protect investors without permitting unfair discrimination. The filing aligns with Regulation NMS, which encourages self-regulatory organizations to innovate in market data offerings to expand availability and spur competition. The exchange argues that the free trial broadens access to U.S. options market data, consistent with NMS principles.
In terms of competition, the filing highlights a highly competitive environment with 16 options exchanges. It references Nasdaq ISE's similar free trial for new subscribers of comparable data, as cited in the exchange's options pricing schedule. Cboe C2 contends that the proposal fosters competition by enabling market participants to evaluate the data, potentially switching from competitors' products. The exchange asserts no burden on competition, as the trial applies equally to all qualifying Trading Permit Holders and non-holders, and data purchase remains discretionary.
Perspectives and Implications
From a market participant viewpoint, the free trial could lower barriers for smaller firms or individual analysts seeking to enhance trading strategies without initial costs. Larger institutions might view it as a way to integrate C2 data into broader analytics, given the proprietary nature that complements data from other exchanges. However, critics of market data fees, including some investor advocacy groups, might argue that while trials are positive, underlying fees remain high and could limit broader access, echoing ongoing debates in SEC forums about data affordability.
Short-term implications include potential increases in data requests and subscriptions post-trial, as users gain familiarity. Long-term, this could influence how exchanges price historical data, possibly leading to more incentives if adoption rises. Different perspectives emerge: exchanges like C2 see it as pro-competitive, while some market watchers question whether such proprietary data creates information asymmetries favoring well-resourced players.
The rule change became effective upon filing under Section 19(b)(3)(A) of the Act and Rule 19b-4(f), allowing immediate implementation while the SEC solicits comments until January 6, 2026. Key takeaways include enhanced data accessibility through incentives, alignment with regulatory goals of competition, and no mandatory adoption for users.
Potential next steps involve monitoring comment submissions, which could lead to SEC suspension or further proceedings if concerns arise. Ongoing debates may focus on balancing innovation in data products with equitable access, especially as options trading volumes grow. Challenges include ensuring data integrity and addressing any competitive imbalances, while trajectories could see similar offerings from other exchanges or broader SEC guidance on market data pricing.
