Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Content of the Cboe One Feed Under Rule 13.8(b) To Identify the Current Day Consolidated High and Low Prices, 35852-35854 [2021-14387]
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35852
Federal Register / Vol. 86, No. 127 / Wednesday, July 7, 2021 / Notices
change should be approved or
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 rule-comments@
sec.gov. Please include File No. SR–
CboeEDGX–2021–029 on the subject
line.
Paper Comments
khammond on DSKJM1Z7X2PROD with NOTICES
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–CboeEDGX–2021–029. 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 No.
SR–CboeEDGX–2021–029, and should
be submitted on or before July 28, 2021.
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17:44 Jul 06, 2021
Jkt 253001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–14386 Filed 7–6–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92296; File No. SR–
CboeEDGA–2021–016]
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend the
Content of the Cboe One Feed Under
Rule 13.8(b) To Identify the Current
Day Consolidated High and Low Prices
June 30, 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 June 17,
2021, Cboe EDGA Exchange, Inc. (the
‘‘Exchange’’) 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 Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 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. (‘‘EDGA’’
or the ‘‘Exchange’’) is filing with the
Securities and Exchange Commission
(the ‘‘Commission’’) a proposed rule
change to amend the content of the Cboe
One Feed under Rule 13.8(b) to identify
the current day consolidated high and
low prices. 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
Secretary, and at the Commission’s
Public Reference Room.
PO 00000
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
Frm 00124
Fmt 4703
Sfmt 4703
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 enhance
the content of the Cboe One Feed under
Rule 13.8(b) to identify the current day
consolidated high and low price for all
listed equity securities.
The Cboe One Feed is a data feed that
disseminates, on a real-time basis, the
aggregate best bid and offer (‘‘BBO’’) of
all displayed orders for securities traded
on EDGA and its affiliated exchanges.5
Among other things, the Cboe One Feed
also includes consolidated volume for
all listed equity securities regardless of
where the transaction was executed, the
Cboe One Opening Price and the Cboe
One Closing Price,6 and the primary
listing market’s official opening and
closing price.
Now, in addition to the information
currently provided in the Cboe One
Feed, the Exchange is proposing to
include the current day consolidated
high and low price for all listed equity
5 EDGA’s affiliated exchanges are the Cboe BZX
Exchange, Inc. (‘‘BZX’’), Cboe BYX Exchange, Inc.
(‘‘BYX’’), and Cboe EDGX Exchange, Inc. (‘‘EDGX’’,
and together with BZX, EDGA, and BYX, the ‘‘Cboe
Equity Exchanges’’). See Securities Exchange Act
Release No. 73918 (December 23, 2014), 79 FR
78920 (December 31, 2014) (File Nos. SR–EDGX–
2014–25; SR–EDGA–2014–25; SR–BATS–2014–055;
SR–BYX–2014–030) (Notice of Amendments No. 2
and Order Granting Accelerated Approval to
Proposed Rule Changes, as Modified by
Amendments Nos. 1 and 2, to Establish a New
Market Data Product called the Cboe (formerly Bats)
One Feed) (‘‘Cboe One Approval Order’’).
6 For securities listed on Cboe BZX Exchange, Inc.
(‘‘BZX’’), the Cboe One Opening Price shall be the
BZX Official Opening Price as defined in BZX Rule
11.23(a)(5) and the Cboe One Closing Price shall be
the BZX Official Closing Price as defined in BZX
Rule 11.23(a)(3). For securities not listed on BZX,
the Cboe One Opening Price shall be the first last
sale eligible trade that occurred on the Exchange or
any of its affiliates after 9:30 a.m. Eastern Time, and
the Cboe One Closing Price shall be the final last
sale eligible trade to occur on the Exchange or any
of its affiliates prior to 4:00 p.m. Eastern Time. See
Exchange Rule 13.8(b).
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Federal Register / Vol. 86, No. 127 / Wednesday, July 7, 2021 / Notices
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securities as obtained directly from the
securities information processors
(‘‘SIPs’’). The consolidated high and low
price for all listed equity securities
would be disseminated via the Cboe
One Feed after the Consolidated Tape
Association (‘‘CTA’’) and Unlisted
Trading Privileges (‘‘UTP’’) Plan SIP
delay period, which is currently 15
minutes.
Such information would provide Cboe
One Feed users with a static benchmark
against which to compare price
movements shown on Cboe One using
high and low prices in the consolidated
market. The Exchange’s proposal is in
response to requests by Members using
the Cboe One Feed, and also partly in
response to recent changes by a
competitor exchange to their end of day
messages.7
The Exchange proposes that this
change become operative on July 16,
2021. To ensure consistency across the
Cboe Equity Exchanges, BZX, BYX, and
EDGX will be filing companion
proposals to reflect these changes in
their respective rulebooks. The
Exchange is not proposing any change
to the Cboe One Feed fee as a result of
this modification.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.8 Specifically,
the Exchange believes the proposed rule
changes are consistent with the Section
6(b)(5) 9 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, 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. The
Exchange also believes that the
proposed rule changes are consistent
with Section 11(A) of the Act 10 in that
it supports (1) fair competition among
brokers and dealers, among exchange
7 See
e.g., Securities Exchange Act No. 91241
(March 2, 2021) 86 FR 13427 (March 8, 2021) (SR–
NASDAQ–2021–010) (amending the content of the
Nasdaq Last Sale (‘‘NLS’’) Plus to identify the high,
low and closing price published by the SIPs).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 15 U.S.C. 78k–1.
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17:44 Jul 06, 2021
Jkt 253001
markets, and between exchange markets
and markets other than exchange
markets and (2) the availability to
brokers, dealers, and investors of
information with respect to quotations
for and transactions in securities.
Furthermore, the proposed rule changes
are consistent with Rule 603 of
Regulation NMS,11 which provides that
any national securities exchange that
distributes information with respect to
quotations for or transactions in an NMS
stock do so on terms that are not
unreasonably discriminatory. In
adopting Regulation NMS, the
Commission granted self-regulatory
organizations and broker-dealers
increased authority and flexibility to
offer new and unique market data
products 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 proposed change to Exchange
Rule 13.8(b) is designed to promote just
and equitable principles of trade and
remove impediments to and perfect the
mechanism of a free and open market
and a national market system by
identifying the consolidated high and
low price for all listed equity securities
as obtained directly from the SIPs. Such
information would provide Cboe One
Feed users with a static benchmark
against which to compare price
movements shown on the Cboe One
Feed using high and low prices in the
consolidated market. Therefore, the
consolidated high and low price for
listed equity securities would provide
meaningful information to investors.
The Exchange also believes this
proposal is consistent with Section
6(b)(5) of the Act because it protects
investors and the public interest and
promotes just and equitable principles
of trade by providing investors with
new options for receiving such
information. As noted above, another
exchange currently provides
consolidated high and low price
information in their competing market
data products.12 Therefore, the
Exchange believes the proposed rule
change removes impediments to and
perfects the mechanism of a free and
open market and a national market
system, and, in general, protects
investors and the public interest as it
would provide an additional avenue for
investors to receive this information
from a competing product. The proposal
would not permit unfair discrimination
because the consolidated high and low
PO 00000
11 See
17 CFR 242.603.
note 7.
12 Supra
Frm 00125
Fmt 4703
Sfmt 4703
35853
price will be available to all of the
Exchange’s customers and market data
vendors on an equivalent basis. In
addition, any customer that wishes to
receive this information via a different
source will be able to do so.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed change to Rule 13.8(b) will
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
Rather, the Exchange believes that the
proposed rule change will enhance
competition because it would enable the
Exchange to include the consolidated
high and low price as part of the Cboe
One Feed, thereby enabling it to better
compete with similar market data
products currently offered by another
exchange that includes such
information.13 The Exchange is not the
exclusive distributor of the consolidated
high and low price for all listed equity
securities, and a vendor seeking to offer
a similar product that includes this
information would be able to do so on
the same terms as the Exchange.
Specifically, a competing vendor could
receive the consolidated high and low
price from the SIPs and include that
information as part of their market data
products to be disseminated to
customers pursuant to the same terms
and policies as the Exchange.14
The Exchange believes the proposal
will have no impact on intramarket
competition as the proposal is not
targeted at, or expected to be limited in
its applicability to, any particular
segment of market participants and no
segment of retail investors, the general
investing public, or any other market
participant is expected to benefit more
than any other. Therefore, the Exchange
believes the inclusion of the
consolidated high and low price in the
Cboe One Feed would not impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
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.
13 Id.
14 See CTA Consolidated Volume Display Policy
with FAQ at https://www.ctaplan.com/publicdocs/
ctaplan/notifications/trader-update/CTA%20
Consolidated%20Volume%20Policy%20FAQ.pdf.
E:\FR\FM\07JYN1.SGM
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35854
Federal Register / Vol. 86, No. 127 / Wednesday, July 7, 2021 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 15 and Rule 19b–
4(f)(6) thereunder.16
A proposed rule change filed under
Rule 19b–4(f)(6) 17 normally does not
become operative prior to 30 days after
the date of the filing. However, Rule
19b–4(f)(6)(iii) 18 permits the
Commission to designate a shorter time
if such action is consistent with the
protection of investors and the public
interest. The Exchange has proposed to
implement this proposed rule change on
July 16, 2021 and has asked the
Commission to waive the 30-day
operative delay for this filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest, as it will provide an
additional option for investors to
receive consolidated high and low price
information, which the Exchange states
is meaningful information for investors,
on the proposed implementation date of
July 16, 2021. Accordingly, the
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change as operative upon
filing.19
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
15 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
17 17 CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6)(iii).
19 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
khammond on DSKJM1Z7X2PROD with NOTICES
16 17
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17:44 Jul 06, 2021
Jkt 253001
change should be approved or
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–14387 Filed 7–6–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–92303; File No. SR–FICC–
2020–017]
• 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 No. SR–
CboeEDGA–2021–016 on the subject
line.
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Order
Approving a Proposed Rule Change To
Modify the Calculation of the MBSD
VaR Floor To Incorporate a Minimum
Margin Amount
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–CboeEDGA–2021–016. 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 No.
SR–CboeEDGA–2021–016, and should
be submitted on or before July 28, 2021.
PO 00000
Frm 00126
Fmt 4703
Sfmt 4703
June 30, 2021.
On November 20, 2020, Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) proposed
rule change SR–FICC–2020–017
(‘‘Proposed Rule Change’’) pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder.2 The Proposed Rule
Change was published for comment in
the Federal Register on December 10,
2020.3 On December 30, 2020, pursuant
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Securities Exchange Act Release No. 90568
(December 4, 2020), 85 FR 79541 (December 10,
2020) (SR–FICC–2020–017) (‘‘Notice’’). FICC also
filed the proposal contained in the Proposed Rule
Change as advance notice SR–FICC–2020–804
(‘‘Advance Notice’’) with the Commission pursuant
to Section 806(e)(1) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act entitled the
Payment, Clearing, and Settlement Supervision Act
of 2010 (‘‘Clearing Supervision Act’’). 12 U.S.C.
5465(e)(1); 17 CFR 240.19b–4(n)(1)(i). Notice of
filing of the Advance Notice was published for
comment in the Federal Register on January 6,
2021. Securities Exchange Act Release No. 90834
(December 31, 2020), 86 FR 584 (January 6, 2021)
(File No. SR–FICC–2020–804) (‘‘Notice of Filing’’).
Upon publication of the Notice of Filing, the
Commission extended the review period of the
Advance Notice for an additional 60 days because
the Commission determined that the Advance
Notice raised novel and complex issues. On March
12, 2021, the Commission issued a request for
information regarding the Advance Notice. See
Commission’s Request for Additional Information,
available at https://www.sec.gov/comments/sr-ficc2020-804/srficc2020804-8490035-229981.pdf. On
April 16, 2021, FICC submitted its response thereto.
See Response to Commission’s Request for
Additional Information, available at https://
www.sec.gov/comments/sr-ficc-2020-804/
srficc2020804-8685526-235624.pdf; Letter from
James Nygard, Director and Assistant General
Counsel, FICC (April 16, 2021), available at https://
www.sec.gov/comments/sr-ficc-2020-804/
srficc2020804-8679555-235605.pdf. The proposal
contained in the Proposed Rule Change and the
Advance Notice shall not take effect until all
regulatory actions required with respect to the
proposal are completed.
1 15
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]]>Agencies
[Federal Register Volume 86, Number 127 (Wednesday, July 7, 2021)]
[Notices]
[Pages 35852-35854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14387]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92296; File No. SR-CboeEDGA-2021-016]
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend the Content of the Cboe One Feed Under Rule 13.8(b) To Identify
the Current Day Consolidated High and Low Prices
June 30, 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 June 17, 2021, Cboe EDGA Exchange, Inc. (the ``Exchange'')
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 Exchange filed the
proposal as a ``non-controversial'' proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6)
thereunder.\4\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGA Exchange, Inc. (``EDGA'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (the ``Commission'') a
proposed rule change to amend the content of the Cboe One Feed under
Rule 13.8(b) to identify the current day consolidated high and low
prices. 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 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 enhance the content of the Cboe One Feed
under Rule 13.8(b) to identify the current day consolidated high and
low price for all listed equity securities.
The Cboe One Feed is a data feed that disseminates, on a real-time
basis, the aggregate best bid and offer (``BBO'') of all displayed
orders for securities traded on EDGA and its affiliated exchanges.\5\
Among other things, the Cboe One Feed also includes consolidated volume
for all listed equity securities regardless of where the transaction
was executed, the Cboe One Opening Price and the Cboe One Closing
Price,\6\ and the primary listing market's official opening and closing
price.
---------------------------------------------------------------------------
\5\ EDGA's affiliated exchanges are the Cboe BZX Exchange, Inc.
(``BZX''), Cboe BYX Exchange, Inc. (``BYX''), and Cboe EDGX
Exchange, Inc. (``EDGX'', and together with BZX, EDGA, and BYX, the
``Cboe Equity Exchanges''). See Securities Exchange Act Release No.
73918 (December 23, 2014), 79 FR 78920 (December 31, 2014) (File
Nos. SR-EDGX-2014-25; SR-EDGA-2014-25; SR-BATS-2014-055; SR-BYX-
2014-030) (Notice of Amendments No. 2 and Order Granting Accelerated
Approval to Proposed Rule Changes, as Modified by Amendments Nos. 1
and 2, to Establish a New Market Data Product called the Cboe
(formerly Bats) One Feed) (``Cboe One Approval Order'').
\6\ For securities listed on Cboe BZX Exchange, Inc. (``BZX''),
the Cboe One Opening Price shall be the BZX Official Opening Price
as defined in BZX Rule 11.23(a)(5) and the Cboe One Closing Price
shall be the BZX Official Closing Price as defined in BZX Rule
11.23(a)(3). For securities not listed on BZX, the Cboe One Opening
Price shall be the first last sale eligible trade that occurred on
the Exchange or any of its affiliates after 9:30 a.m. Eastern Time,
and the Cboe One Closing Price shall be the final last sale eligible
trade to occur on the Exchange or any of its affiliates prior to
4:00 p.m. Eastern Time. See Exchange Rule 13.8(b).
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Now, in addition to the information currently provided in the Cboe
One Feed, the Exchange is proposing to include the current day
consolidated high and low price for all listed equity
[[Page 35853]]
securities as obtained directly from the securities information
processors (``SIPs''). The consolidated high and low price for all
listed equity securities would be disseminated via the Cboe One Feed
after the Consolidated Tape Association (``CTA'') and Unlisted Trading
Privileges (``UTP'') Plan SIP delay period, which is currently 15
minutes.
Such information would provide Cboe One Feed users with a static
benchmark against which to compare price movements shown on Cboe One
using high and low prices in the consolidated market. The Exchange's
proposal is in response to requests by Members using the Cboe One Feed,
and also partly in response to recent changes by a competitor exchange
to their end of day messages.\7\
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\7\ See e.g., Securities Exchange Act No. 91241 (March 2, 2021)
86 FR 13427 (March 8, 2021) (SR-NASDAQ-2021-010) (amending the
content of the Nasdaq Last Sale (``NLS'') Plus to identify the high,
low and closing price published by the SIPs).
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The Exchange proposes that this change become operative on July 16,
2021. To ensure consistency across the Cboe Equity Exchanges, BZX, BYX,
and EDGX will be filing companion proposals to reflect these changes in
their respective rulebooks. The Exchange is not proposing any change to
the Cboe One Feed fee as a result of this modification.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\8\ Specifically, the
Exchange believes the proposed rule changes are consistent with the
Section 6(b)(5) \9\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, 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. The Exchange
also believes that the proposed rule changes are consistent with
Section 11(A) of the Act \10\ in that it supports (1) fair competition
among brokers and dealers, among exchange markets, and between exchange
markets and markets other than exchange markets and (2) the
availability to brokers, dealers, and investors of information with
respect to quotations for and transactions in securities. Furthermore,
the proposed rule changes are consistent with Rule 603 of Regulation
NMS,\11\ which provides that any national securities exchange that
distributes information with respect to quotations for or transactions
in an NMS stock do so on terms that are not unreasonably
discriminatory. In adopting Regulation NMS, the Commission granted
self-regulatory organizations and broker-dealers increased authority
and flexibility to offer new and unique market data products 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.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ 15 U.S.C. 78k-1.
\11\ See 17 CFR 242.603.
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The proposed change to Exchange Rule 13.8(b) is designed to promote
just and equitable principles of trade and remove impediments to and
perfect the mechanism of a free and open market and a national market
system by identifying the consolidated high and low price for all
listed equity securities as obtained directly from the SIPs. Such
information would provide Cboe One Feed users with a static benchmark
against which to compare price movements shown on the Cboe One Feed
using high and low prices in the consolidated market. Therefore, the
consolidated high and low price for listed equity securities would
provide meaningful information to investors. The Exchange also believes
this proposal is consistent with Section 6(b)(5) of the Act because it
protects investors and the public interest and promotes just and
equitable principles of trade by providing investors with new options
for receiving such information. As noted above, another exchange
currently provides consolidated high and low price information in their
competing market data products.\12\ Therefore, the Exchange believes
the proposed rule change removes impediments to and perfects the
mechanism of a free and open market and a national market system, and,
in general, protects investors and the public interest as it would
provide an additional avenue for investors to receive this information
from a competing product. The proposal would not permit unfair
discrimination because the consolidated high and low price will be
available to all of the Exchange's customers and market data vendors on
an equivalent basis. In addition, any customer that wishes to receive
this information via a different source will be able to do so.
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\12\ Supra note 7.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed change to Rule
13.8(b) will impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Rather, the
Exchange believes that the proposed rule change will enhance
competition because it would enable the Exchange to include the
consolidated high and low price as part of the Cboe One Feed, thereby
enabling it to better compete with similar market data products
currently offered by another exchange that includes such
information.\13\ The Exchange is not the exclusive distributor of the
consolidated high and low price for all listed equity securities, and a
vendor seeking to offer a similar product that includes this
information would be able to do so on the same terms as the Exchange.
Specifically, a competing vendor could receive the consolidated high
and low price from the SIPs and include that information as part of
their market data products to be disseminated to customers pursuant to
the same terms and policies as the Exchange.\14\
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\13\ Id.
\14\ See CTA Consolidated Volume Display Policy with FAQ at
https://www.ctaplan.com/publicdocs/ctaplan/notifications/trader-update/CTA%20Consolidated%20Volume%20Policy%20FAQ.pdf.
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The Exchange believes the proposal will have no impact on
intramarket competition as the proposal is not targeted at, or expected
to be limited in its applicability to, any particular segment of market
participants and no segment of retail investors, the general investing
public, or any other market participant is expected to benefit more
than any other. Therefore, the Exchange believes the inclusion of the
consolidated high and low price in the Cboe One Feed would not impose
any burden on competition not necessary or appropriate in furtherance
of the purposes of the Act.
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.
[[Page 35854]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \15\ and Rule 19b-
4(f)(6) thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \18\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
proposed to implement this proposed rule change on July 16, 2021 and
has asked the Commission to waive the 30-day operative delay for this
filing. The Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest,
as it will provide an additional option for investors to receive
consolidated high and low price information, which the Exchange states
is meaningful information for investors, on the proposed implementation
date of July 16, 2021. Accordingly, the Commission hereby waives the
30-day operative delay and designates the proposed rule change as
operative upon filing.\19\
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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6)(iii).
\19\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
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 No. SR-CboeEDGA-2021-016 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.
All submissions should refer to File No. SR-CboeEDGA-2021-016. 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 No. SR-CboeEDGA-2021-016, and should be submitted
on or before July 28, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-14387 Filed 7-6-21; 8:45 am]
BILLING CODE 8011-01-P
