The Securities and Exchange Commission published a notice on February 17, 2026, regarding a proposed rule change by MIAX Sapphire, LLC, a self-regulatory organization operating an options exchange. The filing, submitted on January 30, 2026, and effective immediately under Section 19(b)(3)(A) of the Securities Exchange Act of 1934, seeks to amend the exchange's fee schedule. Specifically, it establishes fees for a new data product called the 1-Minute Interval Intra-Day Open-Close Report, introduces an academic discount for ad hoc purchases of its historical data, and makes clarifying adjustments to distinguish it from the existing 10-Minute Report. This development reflects ongoing efforts by options exchanges to refine market data offerings, responding to user demand for more granular intraday insights into trading activity. By providing data in one-minute snapshots, the product could offer enhanced analytical tools for market participants, though it remains a voluntary historical data service not essential for real-time trading.
Background on MIAX Sapphire's Open-Close Data Products
MIAX Sapphire currently provides two versions of its Open-Close Report: an End-of-Day Report and a 10-Minute Interval Intra-Day Report. The End-of-Day Report summarizes daily trading volume at the option level, categorized by origin such as Priority Customer, Non-Priority Customer, Firm, Broker-Dealer, and Market Maker. It includes breakdowns by market side (buy or sell), transaction type (opening or closing), and trade size buckets. This data is proprietary to the exchange and historical in nature.
The 10-Minute Report builds on this by offering intraday updates every 10 minutes, with snapshots aggregated and delivered within five minutes of each interval. It provides similar categorizations but focuses on cumulative volume throughout the trading day. Both products are optional, with no regulatory requirement for the exchange to offer them, and users purchase them voluntarily for analytical purposes.
The new 1-Minute Report, adopted in a prior filing (Securities Exchange Act Release No. 103905, September 8, 2025), mirrors the 10-Minute Report but updates every minute, delivering data within two to five minutes of each snapshot. It captures proprietary exchange trading activity, including volume by origin, side, transaction type, and size buckets, starting from August 2024. This proposal draws from similar rule changes by affiliates and competitors like Cboe BZX, C2, and EDGX, which have established fees for comparable one-minute and ten-minute reports.
Key Elements of the Proposed Rule Change
The filing proposes specific fees for the 1-Minute Report. Subscribers would pay $6,000 monthly for ongoing access, while ad hoc requests for historical data covering any period from August 2024 onward would cost $2,500 per month requested. This pricing structure provides ten times the data points of the 10-Minute Report, which costs $2,000 monthly, resulting in a 3x fee increase relative to the data volume.
An academic discount applies to historical ad hoc purchases, charging qualifying buyers $4,500 for the first year and $375 per additional month prorated. Eligibility requires accreditation as an academic institution or faculty member, with use limited to independent research, publications, teaching, or other educational purposes. Commercial or industry-funded uses are excluded. This mirrors discounts for the 10-Minute and End-of-Day Reports, aiming to encourage studies of options markets.
Clarifying amendments to the fee schedule table and footnotes differentiate the products. For instance, footnote 'a' specifies that 1-Minute subscribers receive 10-Minute and End-of-Day access at no extra cost, while footnote 'f' details the academic discount terms.
Statutory Basis and Rationale
The exchange asserts consistency with Section 6(b)(5) of the Exchange Act, which requires rules to promote just and equitable trade principles, prevent manipulation, and protect investors without unfair discrimination. It argues the proposal broadens market data availability, aligning with Regulation NMS goals of innovation and competition. The 1-Minute Report enhances transparency by offering more frequent intraday snapshots, potentially aiding in trading model development and investor sentiment analysis, though it is not required for trading.
Fees are deemed reasonable, as they provide more data at a proportionally lower markup than competitors (e.g., Cboe BZX charges 4x for its one-minute product versus ten-minute). The academic discount supports research without monetization, applying uniformly to eligible users. The exchange notes no comments were received, and implementation began February 2, 2026, following a January 23, 2026, alert.
Perspectives and Implications
From a market participant viewpoint, the product could improve analytical capabilities, with shorter intervals offering timely insights into volume trends. However, critics might argue the fees create barriers for smaller entities, though the voluntary nature and competition from similar products mitigate this. Regulators, via the SEC's notice, solicit comments to assess public interest, potentially influencing approval.
Short-term implications include increased data options for subscribers, fostering competition among exchanges. Long-term, it may spur further innovations in market data granularity, but challenges arise if fees deter adoption or if data accuracy varies due to market activity.
In summary, this rule change expands MIAX Sapphire's data ecosystem, balancing revenue with accessibility.
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