Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Introduce a New Data Product To Be Known as the Short Volume Report, 69335-69337 [2021-26447]

Download as PDF Federal Register / Vol. 86, No. 232 / Tuesday, December 7, 2021 / Notices required that the listing exchange have a comprehensive surveillance-sharing agreement with a regulated market of significant size related to bitcoin, or demonstrate that other means to prevent fraudulent and manipulative acts and practices are sufficient to justify dispensing with the requisite surveillance-sharing agreement. The listing exchange has not met that requirement here. Therefore, the Commission is unable to find that the proposed rule change is consistent with the statutory standard. Pursuant to Section 19(b)(2) of the Exchange Act, the Commission must disapprove a proposed rule change filed by a national securities exchange if it does not find that the proposed rule change is consistent with the applicable requirements of the Exchange Act— including the requirement under Section 6(b)(5) that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices.184 For the reasons discussed above, BZX has not met its burden of demonstrating that the proposal is consistent with Exchange Act Section 6(b)(5),185 and, accordingly, the Commission must disapprove the proposal.186 D. Other Comments Comment letters also address the general nature and uses of bitcoin; 187 the state of development of bitcoin as a digital asset; 188 the state of regulation of bitcoin markets; 189 the inherent value of, and risks of investing in, bitcoin; 190 the desire of investors to gain access to bitcoin through an ETP; 191 the potential impact of Commission approval of the proposed ETP on the price of bitcoin 184 See 15 U.S.C. 78s(b)(2)(C). U.S.C. 78f(b)(5). 186 In disapproving the proposed rule change, the Commission has considered its impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). A commenter argues, for efficiency reasons, against approving a bitcoin ETP. This commenter asserts that the adoption of multiple digital assets would force merchants to deal with ‘‘complexity [that] doesn’t foster [the] modularity which is needed to gain economic efficiency.’’ See Ciao Letter 3 at 1. For the reasons discussed throughout, however, see supra note 37, the Commission is disapproving the proposed rule change because it does not find that the proposed rule change is consistent with the Exchange Act. See also USBT Order, 85 FR at 12615. 187 See, e.g., Ciao Letter 3; Patel Letter; letters from: Lourdes Ciao, dated June 2, 2021 (‘‘Ciao Letter 1’’); Lourdes Ciao, dated June 2, 2021 (‘‘Ciao Letter 2’’). 188 See, e.g., GDF Letter. 189 See, e.g., GDF Letter; letter from Douglas Slemmer, dated July 23, 2021 (‘‘Slemmer Letter’’). 190 See, e.g., Ciao Letter 1; Ciao Letter 3; Patel Letter; Slemmer Letter; letters from: Sam Ahn, dated April 12, 2021; Bradley M. Kuhn, dated April 25, 2021 (‘‘Kuhn Letter’’). 191 See, e.g., Kuhn Letter; GDF Letter. lotter on DSK11XQN23PROD with NOTICES1 185 15 VerDate Sep<11>2014 17:30 Dec 06, 2021 Jkt 256001 and on bitcoin markets; 192 the potential impact of Commission approval of bitcoin ETPs on the economy, U.S. monetary policy, U.S. innovation, and/ or U.S. geopolitical position; 193 the tax and/or retirement investment benefits or risks of a bitcoin ETP; 194 and the bitcoin network’s effect on the environment.195 Ultimately, however, additional discussion of these topics is unnecessary, as they do not bear on the basis for the Commission’s decision to disapprove the proposal. IV. Conclusion For the reasons set forth above, the Commission does not find, pursuant to Section 19(b)(2) of the Exchange Act, that the proposed rule change is consistent with the requirements of the Exchange Act and the rules and regulations thereunder applicable to a national securities exchange, and in particular, with Section 6(b)(5) of the Exchange Act. It is therefore ordered, pursuant to Section 19(b)(2) of the Exchange Act, that proposed rule change SR– CboeBZX–2021–024 be, and hereby is, disapproved. By the Commission. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–26442 Filed 12–6–21; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–93689; File No. SR– CboeBYX–2021–028] Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Introduce a New Data Product To Be Known as the Short Volume Report December 1, 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 November 22, 2021, Cboe BYX Exchange, Inc. (‘‘Exchange’’ or ‘‘BYX’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The 192 See, 193 See, e.g., GDF Letter. e.g., Ciao Letter 1; Ciao Letter 2; Ciao Letter 3. 194 See, e.g., Kuhn Letter; Ciao Letter 2; Ciao Letter 3. 195 See, e.g., Patel Letter. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 69335 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 BYX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘BYX’’) is filing with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change to Exchange Rule 11.22(f) to introduce a new data product to be known as the Short Volume Report. 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/byx/), 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 amend Rule 11.22(f) to provide for a new data product to be known as the Short Volume Report. The proposal introduces the Short Volume Report which will be available for purchase to BYX Members (‘‘Members’’) and nonMembers. The Exchange notes that the proposed data product is substantially similar to information included in the short sale volume report offered by the Nasdaq Stock Market LLC (‘‘Nasdaq’’) 3 and the TAQ Group Short Volume file offered by the New York Stock Exchange LLC (‘‘NYSE’’),4 with the 3 See the Nasdaq Price List—Equities, Nasdaq Web-based Reports, Nasdaq Short Sale Volume Reports at Price List—NASDAQ Global Data Products (nasdaqtrader.com). 4 See the NYSE Historical Proprietary Market Data Pricing, NYSE Group Summary Data Products, TAQ NYSE Group Short Volume (Daily File) at https:// E:\FR\FM\07DEN1.SGM Continued 07DEN1 69336 Federal Register / Vol. 86, No. 232 / Tuesday, December 7, 2021 / Notices lotter on DSK11XQN23PROD with NOTICES1 exception that the proposed product will also include buy and sell volume as well as trade counts for buy, sell, sell short, and sell short exempt volume. A description of each market data product offered by the Exchange is described in Exchange Rule 11.22. The Exchange proposes to amend Rule 11.22(f) to introduce and add a description of the Short Volume Report. The Exchange proposes to describe the Short Volume Report as ‘‘an end-of-day report that summarizes equity trading activity on the Exchange, including trade count and volume by symbol for buy, sell, sell short, and sell short exempt trades.’’ Specifically, the end-ofday report will include the following information: Trade date, symbol, total volume, buy volume, buy trade count, sell volume, sell trade count, sell short volume, sell short trade count, sell short exempt volume, and sell short exempt trade count. The Exchange notes that the proposed product includes substantially similar information as that included in comparable products offered on Nasdaq and NYSE except that the Exchange proposes to also include buy and sell volume as well as trade counts for buy, sell, sell short, and sell short exempt volume.5 The Exchange believes the additional data points will benefit market participants because they will allow market participants to better understand the changing risk environment on a daily basis. The Short Volume Report will be available for purchase 6 on a monthly subscription basis for which subscribers will receive a daily end-of-day file that will be delivered after the conclusion of the After Hours Trading Session.7 Additionally, historical Short Volume Reports dating as far back as January 2, 2015 will be available for purchase on an ad hoc basis in monthly increments. The subscription files and historical files will include the same data points. Lastly, the Exchange notes the proposed product 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 subscribe to it only if they voluntarily choose to do so. www.nyse.com/publicdocs/nyse/data/NYSE_ Historical_Market_Data_Pricing.pdf. 5 The Exchange notes that the Nasdaq and NYSE comparable products reflect aggregate information across their affiliated equity exchanges. The Exchange is not proposing an aggregated Short Volume Report across its affiliated equity exchanges; thus, the proposal is only applicable to trades executed on BYX. 6 The Exchange intends to submit a separate rule filing to adopt fees for the Short Volume Report product. 7 See Exchange Rule 1.5(c). VerDate Sep<11>2014 17:30 Dec 06, 2021 Jkt 256001 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 change is 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. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 10 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 Volume Report 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 data included in the Short Volume Report. The proposed rule change would benefit investors by providing access to the Short Volume Report, which may promote better informed trading. Particularly, information included in the Short Volume Report may allow a market participant to identify the source of selling pressure and whether it is long or short. Moreover, other exchanges offer substantially similar data products. The Nasdaq daily short sale volume file reflects the aggregate number of shares executed on Nasdaq, Nasdaq BX, Inc. 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 10 See Supra notes 3 and 4. 9 15 PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 and Nasdaq PHLX LLC.11 Specifically, the Nasdaq daily short volume report provides the following information: Trade date, symbol, volume during regular trading hours, and CTA market identifier. Additionally, the NYSE Group Short Volume daily file reflects a summary of short sale volume for securities traded on NYSE, NYSE American LLC, NYSE Arca, Inc., NYSE National, Inc., and NYSE Chicago, Inc. Specifically, the NYSE Group Short Volume product provides the following information: Trade date, symbol, short exempt volume, short volume, total volume all transactions, and market identifier. While the proposed product offers volume and trade counts which are not offered in the comparable NYSE and Nasdaq short sale volume reports, similar data is otherwise available or determinable in other NYSE data product offerings. Specifically, the NYSE TAQ product provides trade and quote information for orders entered on the NYSE affiliated equity exchanges, which include buy, sell, and sell short volume.12 Thus, subscribers to NYSE TAQ could determine volume and trade counts from such data. Additionally, the NYSE Monthly Short Sales report provides a record of every short sale transaction on NYSE during the month, which includes a size and short sale indicator.13 Thus, subscribers to the NYSE Monthly Short Sales report could determine the sell short and sell short exempt volume and trade count, albeit on a monthly basis rather than a daily basis. Moreover, the Exchange believes the proposed Short Volume Report 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 basis. Therefore, the Exchange believes it is reasonable to include such data in the proposed product. Finally, as noted above the proposed Short Sale Report 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 subscribe to it only if they voluntarily choose to do so. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in 11 See Supra note 3. As noted in the Nasdaq Price List, BX and PSX short sale files are available for free. 12 See https://www.nyse.com/publicdocs/nyse/ data/TAQ_XDP_Products_Client_Spec_v2.3c.pdf. 13 See https://www.nyse.com/publicdocs/nyse/ data/Monthly_Short_Sales_Client_Spec_v1.3.pdf. E:\FR\FM\07DEN1.SGM 07DEN1 Federal Register / Vol. 86, No. 232 / Tuesday, December 7, 2021 / Notices 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.14 The Exchange is proposing to introduce the Short Volume Report 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 substantially similar to the proposed Short Volume Report.15 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. 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 up to 90 days (i) as the Commission may designate 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 will: A. By order approve or disapprove such proposed rule change, or B. institute proceedings to determine whether the proposed rule change should be disapproved. lotter on DSK11XQN23PROD with NOTICES1 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: 14 See 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 Number SR– CboeBYX–2021–028 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 Number SR–CboeBYX–2021–028. 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–CboeBYX–2021–028, and should be submitted on or before December 28, 2021. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–26447 Filed 12–6–21; 8:45 am] VerDate Sep<11>2014 [Release No. 34–93699; File No. SR–FINRA– 2021–030] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Proposed Rule Change To Amend FINRA Rule 6730 To Require Members To Append Modifiers to Delayed Treasury Spot and Portfolio Trades When Reporting to TRACE December 1, 2021. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on November 22, 2021, the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by FINRA. 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 FINRA is proposing to amend FINRA Rule 6730 to require members to append modifiers to identify delayed Treasury spot and portfolio trades when reporting to FINRA’s Trade Reporting and Compliance Engine (‘‘TRACE’’). The text of the proposed rule change is available on FINRA’s website at https://www.finra.org, at the principal office of FINRA 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, FINRA 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. FINRA has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. 1 15 16 17 17:30 Dec 06, 2021 SECURITIES AND EXCHANGE COMMISSION BILLING CODE 8011–01–P Supra notes 3 and 4. 15 Id. Jkt 256001 PO 00000 CFR 200.30–3(a)(12). Frm 00119 Fmt 4703 Sfmt 4703 69337 2 17 E:\FR\FM\07DEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 07DEN1

Agencies

[Federal Register Volume 86, Number 232 (Tuesday, December 7, 2021)]
[Notices]
[Pages 69335-69337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26447]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93689; File No. SR-CboeBYX-2021-028]


Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of 
Filing of a Proposed Rule Change To Introduce a New Data Product To Be 
Known as the Short Volume Report

December 1, 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 November 22, 2021, Cboe BYX Exchange, Inc. (``Exchange'' or 
``BYX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Cboe BYX Exchange, Inc. (the ``Exchange'' or ``BYX'') is filing 
with the Securities and Exchange Commission (``Commission'') a proposed 
rule change to Exchange Rule 11.22(f) to introduce a new data product 
to be known as the Short Volume Report. 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/byx/), 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 amend Rule 11.22(f) to provide for a new 
data product to be known as the Short Volume Report. The proposal 
introduces the Short Volume Report which will be available for purchase 
to BYX Members (``Members'') and non-Members. The Exchange notes that 
the proposed data product is substantially similar to information 
included in the short sale volume report offered by the Nasdaq Stock 
Market LLC (``Nasdaq'') \3\ and the TAQ Group Short Volume file offered 
by the New York Stock Exchange LLC (``NYSE''),\4\ with the

[[Page 69336]]

exception that the proposed product will also include buy and sell 
volume as well as trade counts for buy, sell, sell short, and sell 
short exempt volume.
---------------------------------------------------------------------------

    \3\ See the Nasdaq Price List--Equities, Nasdaq Web-based 
Reports, Nasdaq Short Sale Volume Reports at Price List--NASDAQ 
Global Data Products (nasdaqtrader.com).
    \4\ See the NYSE Historical Proprietary Market Data Pricing, 
NYSE Group Summary Data Products, TAQ NYSE Group Short Volume (Daily 
File) at https://www.nyse.com/publicdocs/nyse/data/NYSE_Historical_Market_Data_Pricing.pdf.
---------------------------------------------------------------------------

    A description of each market data product offered by the Exchange 
is described in Exchange Rule 11.22. The Exchange proposes to amend 
Rule 11.22(f) to introduce and add a description of the Short Volume 
Report. The Exchange proposes to describe the Short Volume Report as 
``an end-of-day report that summarizes equity trading activity on the 
Exchange, including trade count and volume by symbol for buy, sell, 
sell short, and sell short exempt trades.'' Specifically, the end-of-
day report will include the following information: Trade date, symbol, 
total volume, buy volume, buy trade count, sell volume, sell trade 
count, sell short volume, sell short trade count, sell short exempt 
volume, and sell short exempt trade count. The Exchange notes that the 
proposed product includes substantially similar information as that 
included in comparable products offered on Nasdaq and NYSE except that 
the Exchange proposes to also include buy and sell volume as well as 
trade counts for buy, sell, sell short, and sell short exempt 
volume.\5\ The Exchange believes the additional data points will 
benefit market participants because they will allow market participants 
to better understand the changing risk environment on a daily basis.
---------------------------------------------------------------------------

    \5\ The Exchange notes that the Nasdaq and NYSE comparable 
products reflect aggregate information across their affiliated 
equity exchanges. The Exchange is not proposing an aggregated Short 
Volume Report across its affiliated equity exchanges; thus, the 
proposal is only applicable to trades executed on BYX.
---------------------------------------------------------------------------

    The Short Volume Report will be available for purchase \6\ on a 
monthly subscription basis for which subscribers will receive a daily 
end-of-day file that will be delivered after the conclusion of the 
After Hours Trading Session.\7\ Additionally, historical Short Volume 
Reports dating as far back as January 2, 2015 will be available for 
purchase on an ad hoc basis in monthly increments. The subscription 
files and historical files will include the same data points. Lastly, 
the Exchange notes the proposed product 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 
subscribe to it only if they voluntarily choose to do so.
---------------------------------------------------------------------------

    \6\ The Exchange intends to submit a separate rule filing to 
adopt fees for the Short Volume Report product.
    \7\ See Exchange Rule 1.5(c).
---------------------------------------------------------------------------

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 change is 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. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \10\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ See Supra notes 3 and 4.
---------------------------------------------------------------------------

    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 
Volume Report 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 data included in the Short Volume Report. The proposed 
rule change would benefit investors by providing access to the Short 
Volume Report, which may promote better informed trading. Particularly, 
information included in the Short Volume Report may allow a market 
participant to identify the source of selling pressure and whether it 
is long or short.
    Moreover, other exchanges offer substantially similar data 
products. The Nasdaq daily short sale volume file reflects the 
aggregate number of shares executed on Nasdaq, Nasdaq BX, Inc. and 
Nasdaq PHLX LLC.\11\ Specifically, the Nasdaq daily short volume report 
provides the following information: Trade date, symbol, volume during 
regular trading hours, and CTA market identifier. Additionally, the 
NYSE Group Short Volume daily file reflects a summary of short sale 
volume for securities traded on NYSE, NYSE American LLC, NYSE Arca, 
Inc., NYSE National, Inc., and NYSE Chicago, Inc. Specifically, the 
NYSE Group Short Volume product provides the following information: 
Trade date, symbol, short exempt volume, short volume, total volume all 
transactions, and market identifier. While the proposed product offers 
volume and trade counts which are not offered in the comparable NYSE 
and Nasdaq short sale volume reports, similar data is otherwise 
available or determinable in other NYSE data product offerings. 
Specifically, the NYSE TAQ product provides trade and quote information 
for orders entered on the NYSE affiliated equity exchanges, which 
include buy, sell, and sell short volume.\12\ Thus, subscribers to NYSE 
TAQ could determine volume and trade counts from such data. 
Additionally, the NYSE Monthly Short Sales report provides a record of 
every short sale transaction on NYSE during the month, which includes a 
size and short sale indicator.\13\ Thus, subscribers to the NYSE 
Monthly Short Sales report could determine the sell short and sell 
short exempt volume and trade count, albeit on a monthly basis rather 
than a daily basis. Moreover, the Exchange believes the proposed Short 
Volume Report 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 basis. Therefore, 
the Exchange believes it is reasonable to include such data in the 
proposed product.
---------------------------------------------------------------------------

    \11\ See Supra note 3. As noted in the Nasdaq Price List, BX and 
PSX short sale files are available for free.
    \12\ See https://www.nyse.com/publicdocs/nyse/data/TAQ_XDP_Products_Client_Spec_v2.3c.pdf.
    \13\ See https://www.nyse.com/publicdocs/nyse/data/Monthly_Short_Sales_Client_Spec_v1.3.pdf.
---------------------------------------------------------------------------

    Finally, as noted above the proposed Short Sale Report 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 subscribe to it only if they voluntarily choose to do 
so.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in

[[Page 69337]]

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.\14\ The Exchange is proposing to introduce the 
Short Volume Report 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 substantially similar to the proposed Short 
Volume Report.\15\ 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.
---------------------------------------------------------------------------

    \14\ See Supra notes 3 and 4.
    \15\ Id.
---------------------------------------------------------------------------

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 up to 90 days (i) as the 
Commission may designate 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 will:
    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-CboeBYX-2021-028 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 Number SR-CboeBYX-2021-028. 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-CboeBYX-2021-028, and should be 
submitted on or before December 28, 2021.
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    \16\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-26447 Filed 12-6-21; 8:45 am]
BILLING CODE 8011-01-P
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