Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Introduce a New Data Product To Be Known as Short Sale Volume Data, 32099-32102 [2021-12594]
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Federal Register / Vol. 86, No. 114 / Wednesday, June 16, 2021 / Notices
submissions should refer to File
Number SR–MEMX–2021–07 and
should be submitted on or before July 7,
2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.50
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–12593 Filed 6–15–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–095, OMB Control No.
3235–0084]
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
jbell on DSKJLSW7X2PROD with NOTICES
Extension:
Rule 17Ac2–1
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 17Ac2–1 (17 CFR
240.17Ac2–1), under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.). The Commission plans to submit
this existing collection of information to
the Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Rule 17Ac2–1, pursuant to Section
17A(c) of the Exchange Act, generally
requires transfer agents for whom the
Commission is the transfer agent’s
Appropriate Regulatory Agency
(‘‘ARA’’), to file an application for
registration with the Commission on
Form TA–1 and to amend their
registrations under certain
circumstances.
Specifically, Rule 17Ac2–1 requires
transfer agents to file a Form TA–1
application for registration with the
Commission where the Commission is
their ARA. Such transfer agents must
also amend their Form TA–1 if the
existing information on their Form TA–
1 becomes inaccurate, misleading, or
incomplete within 60 days following the
date the information became inaccurate,
misleading or incomplete. Registration
filings on Form TA–1 and amendments
thereto must be filed with the
Commission electronically, absent an
50 17
CFR 200.30–3(a)(12).
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exemption, on EDGAR pursuant to
Regulation S–T (17 CFR 232).
The Commission annually receives
approximately 199 filings on Form TA–
1 from transfer agents required to
register as such with the Commission.
Included in this figure are
approximately 167 amendments made
annually by transfer agents to their
Form TA–1 as required by Rule 17Ac2–
1(c) to address information that has
become inaccurate, misleading, or
incomplete and approximately 32 new
applications by transfer agents for
registration on Form TA–1 as required
by Rule 17Ac2–1(a). Based on past
submissions, the staff estimates that on
average approximately twelve hours are
required for initial completion of Form
TA–1 and that on average one and onehalf hours are required for an
amendment to Form TA–1 by each such
firm. Thus, the subtotal burden for new
applications for registration filed on
Form TA–1 each year is approximately
384 hours (12 hours times 32 filers =
384) and the subtotal burden for
amendments to Form TA–1 filed each
year is approximately 251 hours (1.5
hours times 167 filers = 250.5 rounded
up to 251). The cumulative total is
approximately 635 burden hours per
year (384 hours plus 251 hours).
Of the approximately 635 hours per
year associated with Rule 17Ac2–1, the
Commission staff estimates that (i) sixty
percent (380.7 hours) are spent by
compliance staff at an estimated hourly
wage of $283, for a total of $107,738.10
per year (380.7 hours × $283 per hour
= $107,738.10 per year; (ii) forty percent
(253.8 hours) are spent by attorneys at
an estimated hourly wage of $380, for a
total of $96,444 per year (253.8 hours ×
$380 per hour = $96,444 per year); and
(iii) the total internal cost of compliance
associated with the Rule is thus
approximately $204,182.10 per year
($107,738.10 in compliance staff costs +
$96,444 in attorney costs = $204,182.10
per year).
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
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32099
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: June 10, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–12658 Filed 6–15–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92151; File No. SR–
CboeEDGA–2021–013]
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
of a Proposed Rule Change To
Introduce a New Data Product To Be
Known as Short Sale Volume Data
June 10, 2021.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 28,
2021, Cboe EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) is filing with
the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change to introduce a
new data product to be known as Short
Sale Volume data. The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/edga/),
at the Exchange’s Office of the
1 15
2 17
E:\FR\FM\16JNN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 86, No. 114 / Wednesday, June 16, 2021 / Notices
Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
The Exchange proposes to adopt Rule
13.8(g) to provide for a new data
product to be known as Short Sale
Volume data. The proposal introduces
Short Sale Volume data that will be
available for purchase to EDGA
Members (‘‘Members’’) and nonMembers.3 The proposal is similar to
products offered by the New York Stock
Exchange LLC (‘‘NYSE’’) and the
Nasdaq Stock Market LLC (‘‘Nasdaq’’)
which provide short sale volume
information. The Exchange also
proposes to change the name of Rule
13.8 to ‘‘Data Products’’ and add a
preamble to Rule 13.8 to conform to
Cboe BZX Exchange, Inc. (‘‘BZX’’) and
Cboe BYX Exchange, Inc. (‘‘BYX’’) Rule
11.22.
A description of each market data
product offered by the Exchange is
described in Exchange Rule 13.8. The
Exchange proposes to adopt Rule 13.8(g)
to introduce and add a description of
the Short Sale Volume data product.
The Exchange proposes to describe the
Short Sale Volume data as ‘‘a data
product that summarizes short sale
volume (shares traded on EDGA). Short
Sale Volume data is available on an endof-day and intraday basis.’’
The Exchange proposes to offer Short
Sale Volume data on an end-of-day and
intraday basis which will be available
for purchase by Members and nonMembers. Specifically, the Exchange
proposes to offer an end-of-day short
sale volume report that includes the
date, session (i.e., Pre-Opening Session,4
3 The Exchange intends to submit a separate rule
filing to establish fees for Short Sale Volume data.
4 See Exchange Rule 1.5(s).
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Regular Trading Hours,5 or Post-Closing
Session 6),7 symbol, trade count, buy
and sell volume, type of sale (i.e., sell,
sell short, or sell short exempt), capacity
(i.e., principal, agent, or riskless
principal), and retail order indicator.
The end-of-day Short Sale Volume data
would include same day corrections to
short sale volume.
The Exchange also proposes to offer
Short Sale Volume data on an intraday
basis that will provide the same
information to that of end-of-day Short
Sale Volume data, but will be produced
and updated every 10 minutes during
the trading day. Data is captured in
‘‘snapshots’’ taken every 10 minutes
throughout the trading day and is
available to subscribers within five
minutes of the conclusion of each 10minute period. For example, subscribers
to the intraday product will receive the
first calculation of intraday data by
approximately 9:45 a.m. ET, which
represents data captured from 9:30 a.m.
to 9:40 a.m. Subscribers will receive the
next update by 9:55 a.m., representing
the data previously provided aggregated
with data captured through 9:50 a.m.,
and so forth. Each update will represent
combined data captured from the
current ‘‘snapshot’’ and all previous
‘‘snapshots’’ and thus will provide short
sale volume data on an aggregate basis.
The intraday Short Sale Volume data
will not include same day corrections,
as proposed in the end-of-day data. The
proposed data products provide
proprietary EDGA trade data and do not
include trade data from any other
exchange.
The proposed end-of-day and intraday
Short Sale Volume data will be available
for purchase on a monthly subscription
basis. Subscribers to the end-of-day
Short Sale Volume data will receive a
daily end-of-day file. Similarly,
subscribers to the intraday Short Sale
Volume data will receive data which
will be produced and updated every 10
minutes as described above.
Additionally, end-of-day and intraday
Short Sale Volume data will be available
on a historical basis for purchase as far
back as January 3, 2017.8 The
subscription files and historical ad hoc
files will include the same data points.
Further, the Exchange will establish a
monthly subscriber fee and historical ad
hoc fee for the Short Sale Volume data
by way of a separate proposed rule
change, which the Exchange will submit
5 See
Exchange Rule 1.5(y).
Exchange Rule 1.5(r).
7 Session information will only be available in
data after July 31, 2020.
8 Historical data will be available on an ad hoc
basis.
6 See
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in connection with the launch of the
Short Sale Volume data product.
The Exchange anticipates a wide
variety of market participants to
purchase Short Sale Volume data,
including, but not limited to active
equity trading firms and academic
institutions. For example, the Exchange
notes that academic institutions may
utilize Short Sale Volume data and as a
result promote research and studies of
the equities industry to the benefit of all
market participants. The Exchange
believes the proposed Short Sale
Volume data products may also provide
helpful trading information regarding
investor sentiment that may allow
market participants to make better
trading decisions throughout the day
and may be used to create and test
trading models and analytical strategies
and provides comprehensive insight
into trading on the Exchange. For
example, Short Sale Volume data may
allow a market participant to identify
the source of selling pressure and
whether it is long or short. Further, it
may provide more visibility into
increasing and decreasing retail interest
in a specific security. The proposal is a
completely voluntary product, in that
the Exchange is not required by any rule
or regulation to make this data available
and that potential subscribers may
purchase it only if they voluntarily
choose to do so. The Exchange notes
that other exchanges offer similar data
products.9
Based on the above proposal, the
Exchange also proposes to amend the
name of Rule 13.8 from ‘‘EDGA Book
Feeds’’ to ‘‘Data Products’’. Such an
amendment would accurately describe
the Rule as the proposed product is not
a book feed, but rather a data product.
Further, the existing data feeds
identified in Rule 13.8 are also data
products. The Exchange also proposes
to add the following preamble to Rule
13.8: ‘‘The Exchange offers the
following data products free of charge,
unless otherwise noted in the
Exchange’s fee schedule’’. The proposed
language conforms to rule text provided
in BZX and BYX Rules 13.8.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Act,10 in general, and furthers
the objectives of Section 6(b)(5) of the
9 See the Nasdaq Daily Short Sale Volume files at
https://nasdaqtrader.com/
Trader.aspx?id=shortsale. See also the NYSE TAQ
Group Short Sales and Short Volume at https://
www.nyse.com/market-data/historical/taq-nysegroup-short-sales.
10 15 U.S.C. 78f(b).
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Federal Register / Vol. 86, No. 114 / Wednesday, June 16, 2021 / Notices
Act,11 in particular, in that it is designed
to prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. Additionally, the
Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 12 requirement that the rules of
an exchange not be designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
In adopting Regulation NMS, the
Commission granted self-regulatory
organizations (‘‘SROs’’) and brokerdealers increased authority and
flexibility to offer new and unique
market data to the public. It was
believed that this authority would
expand the amount of data available to
consumers, and also spur innovation
and competition for the provision of
market data. The Exchange believes that
the proposed Short Sale Volume data
would further broaden the availability
of U.S. equity market data to investors
consistent with the principles of
Regulation NMS. The proposal also
promotes increased transparency
through the dissemination of Short Sale
Volume data. The proposed rule change
would benefit investors by providing
access to the Short Sale Volume data,
which may promote better informed
trading. Particularly, information
regarding Short Sale Volume may allow
a market participant to identify the
source of selling pressure and whether
it is long or short. Further, it may
provide more visibility into increasing
and decreasing retail interest in a
specific security.
Moreover, other exchanges offer
similar data products.13 Nasdaq offers a
daily short sale volume report and
NYSE offers the TAQ group short sales
and short volume product, which
provide similar information to that
included in the proposed end-of-day
Short Sale Volume data product. The
Nasdaq daily short sale volume file
reflects the aggregate number of shares
executed on Nasdaq, BX and PSX
during regular trading hours.14
Specifically, the Nasdaq daily short sale
volume provides the following
information: Date, symbol, volume
during regular trading hours, and CTA
market identifier. The NYSE daily short
volume file reflects a summary of short
11 15
U.S.C. 78f(b)(5).
12 Id.
13 See
Supra note 9.
https://nasdaqtrader.com/
Trader.aspx?id=shortsale.
sale volume for securities traded on
NYSE, NYSE American, NYSE Arca,
NYSE National, and NYSE Chicago.
Specifically, the NYSE short sales and
short volume product provides the
following information: Date, symbol,
short exempt volume, short volume,
total volume of the short sale
transaction, and market identifier. NYSE
and Nasdaq also offer monthly short
sale volume reports which offer
different information than that provided
in their daily short sale reports.
The Exchange proposes to include
different and additional data in the
proposed products. Specifically, the
Exchange proposes to include session
information, trade count, capacity, and
a retail order indicator in the proposed
data product which are not currently
provided in either the NYSE or Nasdaq
short sale volume product offerings.
Further, the Exchange proposes to offer
an intraday Short Sale Volume data
product, which is not offered by other
exchanges. The Exchange believes the
additional data points and the intraday
data will benefit market participants
because they will provide visibility into
market activity that is not currently
available. Further it will allow market
participants to better understand the
changing risk environment on a daily
and intraday basis. Therefore, the
Exchange believes it is reasonable to
include such data in the proposed
products.
The Exchange believes the proposal to
change the name of Rule 13.8 to ‘‘Data
Products’’ is reasonable because the
proposed Short Sale Volume report is
not a book feed, and thus ‘‘EDGA Book
Feeds’’ does not accurately describe all
of the paragraphs under Rule 13.8. The
Exchange also believes the proposal to
add the preamble to Rule 13.8 is
reasonable because it will eliminate
potential investor confusion as to which
data products the Exchange charges a
fee. Furthermore, both of the
aforementioned changes to Rule 13.8 are
identical to the text of BZX and BYX
Rule 11.22.
Volume data in order to keep pace with
changes in the industry and evolving
customer needs, and believes this
proposed rule change would contribute
to robust competition among national
securities exchanges. As noted, at least
two other U.S. equity exchanges offer a
market data product that is similar to
the proposed Short Sale Volume data.16
As a result, the Exchange believes this
proposed rule change permits fair
competition among national securities
exchanges. Therefore, the Exchange
does not believe the proposed rule
change will result in any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Rather, the
Exchange believes that the proposal will
promote competition by permitting the
Exchange to offer data products similar
to those offered by other competitor
equities exchanges.15 The Exchange is
proposing to introduce Short Sale
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CboeEDGA–2021–013 on the subject
line.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission shall: (a) By order
approve or disapprove such proposed
rule change, or (b) institute proceedings
to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
14 See
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15 See
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Federal Register / Vol. 86, No. 114 / Wednesday, June 16, 2021 / Notices
All submissions should refer to File
Number SR–CboeEDGA–2021–013. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–CboeEDGA–2021–013, and
should be submitted on or before July 7,
2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–12594 Filed 6–15–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–629, OMB Control No.
3235–0719]
jbell on DSKJLSW7X2PROD with NOTICES
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Exchange Act Rules 13n–1—13n–12; Form
SDR
17 17
CFR 200.30–3(a)(12).
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Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rules 13n–1 through
13n–12 (17 CFR 240.13n–1 through
240.13n–12) and Form SDR (‘‘Rules’’),
under the Securities Exchange Act of
1934 (15 U.S.C. 78m(n)(3) et seq.). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Under the Rules, security-based swap
data repositories (‘‘SDRs’’) are required
to register with the Commission by
filing a completed Form SDR (the filing
of a completed Form SDR also
constitutes an application for
registration as a securities information
processor (‘‘SIP’’)). SDRs are also
required to abide by certain minimum
standards set out in the Rules, including
a requirement to update Form SDR,
abide by certain duties and core
principles, maintain data in accordance
with the rules, keep systems in
accordance with the Rules, keep
records, provide reports to the
Commission, maintain the privacy of
security-based swaps (‘‘SBSs’’) data,
make certain disclosures, and designate
a Chief Compliance Officer. In addition,
there are a number of collections of
information contained in the Rules. The
information collected pursuant to the
Rules is necessary to carry out the
mandates of the Dodd-Frank Act and
help ensure an orderly and transparent
market for SBSs.
Assuming a maximum of ten SDRs,
the Commission estimates that the total
reporting burden for all of the Rules and
Form SDR for all respondents is 463,493
hours initially, with a total annual
burden thereafter of 270,511.70 hours
totaling approximately 1,275,028 hours.
This equates to approximately
425,009.29 hours per year when
annualized over three years. In addition,
the Commission estimates that the total
cost for all of the Rules and Form SDR
for all respondents is approximately
$103,364,700 initially, with a total
annual cost thereafter of $65,227,720
totaling approximately $299,047,860.
This equates to $99,682,619.90 per year
when annualized over three years. A
detailed break-down of the estimated
burdens and costs is provided in the
supporting statement.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
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(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: June 10, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–12656 Filed 6–15–21; 8:45 am]
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DATES: Any Federal agency interested in
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SUMMARY:
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]]>Agencies
[Federal Register Volume 86, Number 114 (Wednesday, June 16, 2021)]
[Notices]
[Pages 32099-32102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12594]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92151; File No. SR-CboeEDGA-2021-013]
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice
of Filing of a Proposed Rule Change To Introduce a New Data Product To
Be Known as Short Sale Volume Data
June 10, 2021.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 28, 2021, Cboe EDGA Exchange, Inc. (the ``Exchange'' or
``EDGA'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGA Exchange, Inc. (the ``Exchange'' or ``EDGA'') is filing
with the Securities and Exchange Commission (``Commission'') a proposed
rule change to introduce a new data product to be known as Short Sale
Volume data. The text of the proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/equities/regulation/rule_filings/edga/), at the Exchange's Office of the
[[Page 32100]]
Secretary, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to adopt Rule 13.8(g) to provide for a new
data product to be known as Short Sale Volume data. The proposal
introduces Short Sale Volume data that will be available for purchase
to EDGA Members (``Members'') and non-Members.\3\ The proposal is
similar to products offered by the New York Stock Exchange LLC
(``NYSE'') and the Nasdaq Stock Market LLC (``Nasdaq'') which provide
short sale volume information. The Exchange also proposes to change the
name of Rule 13.8 to ``Data Products'' and add a preamble to Rule 13.8
to conform to Cboe BZX Exchange, Inc. (``BZX'') and Cboe BYX Exchange,
Inc. (``BYX'') Rule 11.22.
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\3\ The Exchange intends to submit a separate rule filing to
establish fees for Short Sale Volume data.
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A description of each market data product offered by the Exchange
is described in Exchange Rule 13.8. The Exchange proposes to adopt Rule
13.8(g) to introduce and add a description of the Short Sale Volume
data product. The Exchange proposes to describe the Short Sale Volume
data as ``a data product that summarizes short sale volume (shares
traded on EDGA). Short Sale Volume data is available on an end-of-day
and intraday basis.''
The Exchange proposes to offer Short Sale Volume data on an end-of-
day and intraday basis which will be available for purchase by Members
and non-Members. Specifically, the Exchange proposes to offer an end-
of-day short sale volume report that includes the date, session (i.e.,
Pre-Opening Session,\4\ Regular Trading Hours,\5\ or Post-Closing
Session \6\),\7\ symbol, trade count, buy and sell volume, type of sale
(i.e., sell, sell short, or sell short exempt), capacity (i.e.,
principal, agent, or riskless principal), and retail order indicator.
The end-of-day Short Sale Volume data would include same day
corrections to short sale volume.
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\4\ See Exchange Rule 1.5(s).
\5\ See Exchange Rule 1.5(y).
\6\ See Exchange Rule 1.5(r).
\7\ Session information will only be available in data after
July 31, 2020.
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The Exchange also proposes to offer Short Sale Volume data on an
intraday basis that will provide the same information to that of end-
of-day Short Sale Volume data, but will be produced and updated every
10 minutes during the trading day. Data is captured in ``snapshots''
taken every 10 minutes throughout the trading day and is available to
subscribers within five minutes of the conclusion of each 10-minute
period. For example, subscribers to the intraday product will receive
the first calculation of intraday data by approximately 9:45 a.m. ET,
which represents data captured from 9:30 a.m. to 9:40 a.m. Subscribers
will receive the next update by 9:55 a.m., representing the data
previously provided aggregated with data captured through 9:50 a.m.,
and so forth. Each update will represent combined data captured from
the current ``snapshot'' and all previous ``snapshots'' and thus will
provide short sale volume data on an aggregate basis. The intraday
Short Sale Volume data will not include same day corrections, as
proposed in the end-of-day data. The proposed data products provide
proprietary EDGA trade data and do not include trade data from any
other exchange.
The proposed end-of-day and intraday Short Sale Volume data will be
available for purchase on a monthly subscription basis. Subscribers to
the end-of-day Short Sale Volume data will receive a daily end-of-day
file. Similarly, subscribers to the intraday Short Sale Volume data
will receive data which will be produced and updated every 10 minutes
as described above. Additionally, end-of-day and intraday Short Sale
Volume data will be available on a historical basis for purchase as far
back as January 3, 2017.\8\ The subscription files and historical ad
hoc files will include the same data points. Further, the Exchange will
establish a monthly subscriber fee and historical ad hoc fee for the
Short Sale Volume data by way of a separate proposed rule change, which
the Exchange will submit in connection with the launch of the Short
Sale Volume data product.
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\8\ Historical data will be available on an ad hoc basis.
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The Exchange anticipates a wide variety of market participants to
purchase Short Sale Volume data, including, but not limited to active
equity trading firms and academic institutions. For example, the
Exchange notes that academic institutions may utilize Short Sale Volume
data and as a result promote research and studies of the equities
industry to the benefit of all market participants. The Exchange
believes the proposed Short Sale Volume data products may also provide
helpful trading information regarding investor sentiment that may allow
market participants to make better trading decisions throughout the day
and may be used to create and test trading models and analytical
strategies and provides comprehensive insight into trading on the
Exchange. For example, Short Sale Volume data may allow a market
participant to identify the source of selling pressure and whether it
is long or short. Further, it may provide more visibility into
increasing and decreasing retail interest in a specific security. The
proposal is a completely voluntary product, in that the Exchange is not
required by any rule or regulation to make this data available and that
potential subscribers may purchase it only if they voluntarily choose
to do so. The Exchange notes that other exchanges offer similar data
products.\9\
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\9\ See the Nasdaq Daily Short Sale Volume files at https://nasdaqtrader.com/Trader.aspx?id=shortsale. See also the NYSE TAQ
Group Short Sales and Short Volume at https://www.nyse.com/market-data/historical/taq-nyse-group-short-sales.
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Based on the above proposal, the Exchange also proposes to amend
the name of Rule 13.8 from ``EDGA Book Feeds'' to ``Data Products''.
Such an amendment would accurately describe the Rule as the proposed
product is not a book feed, but rather a data product. Further, the
existing data feeds identified in Rule 13.8 are also data products. The
Exchange also proposes to add the following preamble to Rule 13.8:
``The Exchange offers the following data products free of charge,
unless otherwise noted in the Exchange's fee schedule''. The proposed
language conforms to rule text provided in BZX and BYX Rules 13.8.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act,\10\ in general, and furthers the objectives of
Section 6(b)(5) of the
[[Page 32101]]
Act,\11\ in particular, in that it is designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and, in
general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \12\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ Id.
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In adopting Regulation NMS, the Commission granted self-regulatory
organizations (``SROs'') and broker-dealers increased authority and
flexibility to offer new and unique market data to the public. It was
believed that this authority would expand the amount of data available
to consumers, and also spur innovation and competition for the
provision of market data. The Exchange believes that the proposed Short
Sale Volume data would further broaden the availability of U.S. equity
market data to investors consistent with the principles of Regulation
NMS. The proposal also promotes increased transparency through the
dissemination of Short Sale Volume data. The proposed rule change would
benefit investors by providing access to the Short Sale Volume data,
which may promote better informed trading. Particularly, information
regarding Short Sale Volume may allow a market participant to identify
the source of selling pressure and whether it is long or short.
Further, it may provide more visibility into increasing and decreasing
retail interest in a specific security.
Moreover, other exchanges offer similar data products.\13\ Nasdaq
offers a daily short sale volume report and NYSE offers the TAQ group
short sales and short volume product, which provide similar information
to that included in the proposed end-of-day Short Sale Volume data
product. The Nasdaq daily short sale volume file reflects the aggregate
number of shares executed on Nasdaq, BX and PSX during regular trading
hours.\14\ Specifically, the Nasdaq daily short sale volume provides
the following information: Date, symbol, volume during regular trading
hours, and CTA market identifier. The NYSE daily short volume file
reflects a summary of short sale volume for securities traded on NYSE,
NYSE American, NYSE Arca, NYSE National, and NYSE Chicago.
Specifically, the NYSE short sales and short volume product provides
the following information: Date, symbol, short exempt volume, short
volume, total volume of the short sale transaction, and market
identifier. NYSE and Nasdaq also offer monthly short sale volume
reports which offer different information than that provided in their
daily short sale reports.
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\13\ See Supra note 9.
\14\ See https://nasdaqtrader.com/Trader.aspx?id=shortsale.
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The Exchange proposes to include different and additional data in
the proposed products. Specifically, the Exchange proposes to include
session information, trade count, capacity, and a retail order
indicator in the proposed data product which are not currently provided
in either the NYSE or Nasdaq short sale volume product offerings.
Further, the Exchange proposes to offer an intraday Short Sale Volume
data product, which is not offered by other exchanges. The Exchange
believes the additional data points and the intraday data will benefit
market participants because they will provide visibility into market
activity that is not currently available. Further it will allow market
participants to better understand the changing risk environment on a
daily and intraday basis. Therefore, the Exchange believes it is
reasonable to include such data in the proposed products.
The Exchange believes the proposal to change the name of Rule 13.8
to ``Data Products'' is reasonable because the proposed Short Sale
Volume report is not a book feed, and thus ``EDGA Book Feeds'' does not
accurately describe all of the paragraphs under Rule 13.8. The Exchange
also believes the proposal to add the preamble to Rule 13.8 is
reasonable because it will eliminate potential investor confusion as to
which data products the Exchange charges a fee. Furthermore, both of
the aforementioned changes to Rule 13.8 are identical to the text of
BZX and BYX Rule 11.22.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Rather, the
Exchange believes that the proposal will promote competition by
permitting the Exchange to offer data products similar to those offered
by other competitor equities exchanges.\15\ The Exchange is proposing
to introduce Short Sale Volume data in order to keep pace with changes
in the industry and evolving customer needs, and believes this proposed
rule change would contribute to robust competition among national
securities exchanges. As noted, at least two other U.S. equity
exchanges offer a market data product that is similar to the proposed
Short Sale Volume data.\16\ As a result, the Exchange believes this
proposed rule change permits fair competition among national securities
exchanges. Therefore, the Exchange does not believe the proposed rule
change will result in any burden on competition that is not necessary
or appropriate in furtherance of the purposes of the Act.
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\15\ See Supra note 9.
\16\ Id.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission shall: (a) By order approve
or disapprove such proposed rule change, or (b) institute proceedings
to determine whether the proposed rule change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CboeEDGA-2021-013 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
[[Page 32102]]
All submissions should refer to File Number SR-CboeEDGA-2021-013. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeEDGA-2021-013, and should be
submitted on or before July 7, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-12594 Filed 6-15-21; 8:45 am]
BILLING CODE 8011-01-P
