On January 9, 2026, Cboe EDGX Exchange, Inc. filed a proposed rule change with the Securities and Exchange Commission to amend fees for its market data feeds related to options trading. The filing, effective immediately under Section 19(b)(3)(A) of the Securities Exchange Act of 1934, introduces separate charges for simple and complex order book feeds, marking a shift from bundled access. This development reflects ongoing efforts by exchanges to monetize proprietary data amid competitive pressures and regulatory scrutiny, potentially affecting how market participants access real-time trading information.
Background and Purpose
Cboe EDGX operates as a self-regulatory organization under the Securities Exchange Act, overseeing its options exchange platform. The exchange currently provides market data feeds for its simple book, which handles regular electronic orders, and its complex order book, used for multi-leg strategies. These include top-of-book, depth-of-book, and auction feeds for both categories.
Previously, distributors subscribing to any simple book feed could access all related feeds, including complex ones, without additional charges. The proposal eliminates this bundling, establishing standalone fees for complex feeds while adjusting and separating fees for simple feeds. As stated in the filing, the purpose is to offer optional data products that enhance market efficiency, consistent with Regulation NMS, which deregulated proprietary data to promote innovation and competition.
Key players include Cboe EDGX as the filer, the SEC as the regulator publishing the notice, and market participants such as distributors and users who may comment. The proposal cites statutory basis under Sections 6(b)(4) and 6(b)(5) of the Act, emphasizing equitable fee allocation and prevention of unfair discrimination.
Key Fee Changes
The proposal introduces distinct fees for distribution and users across feeds.
For simple book feeds—EDGX Options Top, Depth, and Auction—internal distributors face a $1,250 monthly fee, while external distributors pay $1,000. Professional user fees for Depth and Auction are set at $20 per month per user, with non-professional at $1. The Top feed retains its existing user fees of $5 for professionals and $0.10 for non-professionals, plus enterprise tiers from $20,000 to $60,000 monthly based on user volume.
Complex order feeds—EDGX Options Complex Top, Depth, and Auction—mirror these distribution fees: $1,250 internal and $1,000 external. User fees are $20 per professional and $1 per non-professional.
Distributors can access all feeds within the simple or complex category without extra charges but must pay separately for the other category. Credits and trial periods apply to external distribution for the Top feed.
These changes, as described in the filing, aim to provide 'new options for receiving market data' while ensuring fees are 'reasonable, equitably allocated, and not unreasonably discriminatory.'
Competitive Landscape and Precedents
Exchanges compete fiercely in proprietary data products, with fees benchmarked against rivals like MIAX Options, Nasdaq PHLX, and Nasdaq MRX. The filing compares proposed fees favorably: EDGX's $1,250 internal distribution for simple feeds is less than MIAX's $2,000 for its Top of Market feed. Combined simple and complex fees total $2,500 internally, undercutting PHLX's $5,500 for TOPO Plus.
User fees also align or undercut competitors. EDGX's $20 professional fee for complex feeds matches MIAX's but is below Nasdaq MRX's $25.25 and PHLX's $42.10.
This pricing strategy echoes prior SEC-approved changes, such as those under Regulation NMS, which encouraged exchanges to innovate data offerings. Precedents include MIAX's separate simple and complex feeds and PHLX's bundled TOPO Plus, illustrating varied approaches to data monetization. The filing argues no burden on competition, as users can opt out or choose alternatives.
Implications and Perspectives
Short-term, the changes may increase costs for firms relying on bundled access, prompting some to reassess subscriptions. Distributors benefiting from credits or trials could see mitigated impacts initially. Long-term, separated fees might encourage targeted data purchases, fostering efficiency as per Regulation NMS goals.
From a regulatory perspective, the SEC's immediate effectiveness allows swift implementation but invites public comments, potentially leading to suspensions if concerns arise. Market participants, including brokers and vendors, may view this as equitable for valuing distinct data sets, while critics could argue it fragments access and raises barriers for smaller players.
Exchanges emphasize proprietary data as a revenue stream, supported by the Act's allowance for reasonable fees. However, ongoing debates highlight tensions between data accessibility and exchange profitability, with some advocating for more consolidated data to reduce costs.
In summary, Cboe EDGX's proposal refines its market data pricing to reflect product distinctions and competitive benchmarks. Potential next steps include SEC review of comments, possible amendments, or broader industry shifts toward standardized data fees. Challenges persist in balancing innovation with fair access, amid evolving regulatory discussions on market data equity.
