The Securities and Exchange Commission published a notice on January 20, 2026, regarding a proposed rule change by MIAX Sapphire, LLC, an options exchange. The filing, submitted on December 31, 2025, seeks to extend a temporary 20% discount program for historical data from the exchange's Open-Close Report. This extension would run until June 30, 2026, and became effective immediately upon filing under Section 19(b)(3)(A)(ii) of the Securities Exchange Act of 1934. The program targets existing subscribers to encourage broader use of the data product, which provides summaries of options trading activity. This development reflects ongoing efforts by exchanges to compete in the market data space, where similar products are offered by multiple venues, potentially influencing how investors access and analyze historical trading information.
Background on the Open-Close Report
MIAX Sapphire offers the Open-Close Report in two formats: an end-of-day summary and an intra-day version. The end-of-day report aggregates trading volume at the option level, categorized by origin such as Priority Customer, Non-Priority Customer, Firm, Broker-Dealer, and Market Maker. It breaks down data by side of the market (buy or sell), contract volume, transaction type (opening or closing), and trade size buckets including less than 100 contracts, 100-199 contracts, and greater than 199 contracts. The intra-day report mirrors this structure but updates every 10 minutes during the trading day, with snapshots available within five minutes of each interval.
This data is proprietary to MIAX Sapphire and covers only trading on its platform, starting from August 2024. It is available for purchase by both members and non-members on a subscription basis or via ad-hoc requests. Monthly fees are set at $600 for the end-of-day report and $2,000 for the intra-day version. Ad-hoc requests cost $500 per month for end-of-day historical data and $1,000 per month for intra-day data. The report is a historical product, not a real-time feed, and its purchase is voluntary.
The discount program, initially introduced to promote accessibility, applies a 20% reduction to ad-hoc purchases of historical data. It is limited to existing subscribers of the monthly intra-day or end-of-day reports and cannot be combined with other discounts, such as those for qualifying academic purchasers. Academic discounts require the buyer to be an accredited institution or faculty member using the data for educational purposes like research or teaching.
Purpose and Rationale for the Extension
The extension aims to continue attracting subscribers and making historical data more widely available. As stated in the filing, "The purpose of this extension is to continue attracting subscribers of historical Open-Close Report data and making such data more widely accessible." By limiting the discount to current monthly subscribers, the exchange seeks to incentivize ongoing subscriptions rather than one-time purchases.
This aligns with broader market dynamics, where options exchanges compete to provide analytical tools. The filing notes that the Open-Close Report enhances transparency by offering insights into investor sentiment through opening and closing activity. Subscribers can use it to analyze trade and volume data, test trading models, and inform decisions, though it is not essential for trading.
From a statutory perspective, the exchange asserts consistency with Section 6(b) of the Exchange Act, which promotes just and equitable trade principles, removes market impediments, and protects investors. It also aligns with Section 6(b)(4) for equitable fee allocation. The filing emphasizes that Regulation NMS encourages innovation in market data, and this product broadens U.S. options data availability.
Competitive Landscape and Market Implications
MIAX Sapphire operates in a highly competitive environment with 18 registered options exchanges. For November 2025, no single exchange held more than 12-13% market share, with MIAX Sapphire at about 3.48%. Similar open-close data products are offered by competitors, including Cboe Exchange, Inc., Nasdaq PHLX LLC, and NYSE Arca, Inc., providing end-of-day and intra-day summaries of their respective trading activity.
The filing argues that the discount fosters competition without imposing undue burdens, as purchasers can switch to alternatives if they find the product less attractive. It states, "Making similar data products available to market participants fosters competition in the marketplace, and constrains the ability of exchanges to charge supra-competitive fees." This reflects the Commission's preference for market-driven pricing over regulation, as noted in the Regulation NMS Adopting Release.
Short-term implications include potential increases in data subscriptions and usage on MIAX Sapphire, benefiting users who rely on historical analysis for strategy development. Long-term, it could influence how exchanges price data products, possibly leading to more widespread discounts or bundled offerings. Perspectives vary: proponents see it as enhancing market efficiency and investor access, while critics might argue it favors established subscribers, potentially creating barriers for new entrants. However, the filing maintains the program is equitable, applying uniformly to qualifying buyers.
No comments were received on the proposal, and it does not appear to discriminate unfairly, as participation is optional.
In summary, this extension underscores the role of competitive incentives in market data distribution. Potential next steps include monitoring subscriber uptake and evaluating the program's impact by June 30, 2026. If effective, the exchange may seek further extensions through additional SEC filings. Ongoing debates center on balancing proprietary data fees with accessibility, especially as exchanges vie for market share in a fragmented options landscape. Challenges may arise from evolving regulations or shifts in competitive dynamics, prompting adaptations in how such data is priced and distributed.
