Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Introduce a New Data Product To Be Known as the Short Volume Report, Modify the Name of Rule 13.8 to “Data Products”, and Add a Preamble to Rule 13.8, 69306-69308 [2021-26450]

Download as PDF 69306 Federal Register / Vol. 86, No. 232 / Tuesday, December 7, 2021 / Notices 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–EMERALD–2021–38, and should be submitted on or before December 28, 2021. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.24 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–26451 Filed 12–6–21; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–93696; File No. SR– CboeEDGX–2021–049] Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Introduce a New Data Product To Be Known as the Short Volume Report, Modify the Name of Rule 13.8 to ‘‘Data Products’’, and Add a Preamble to Rule 13.8 lotter on DSK11XQN23PROD with NOTICES1 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 17, 2021, Cboe EDGX Exchange, Inc. (‘‘Exchange’’ or ‘‘EDGX’’) 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 17:30 Dec 06, 2021 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Cboe EDGX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) is filing with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change to adopt Exchange Rule 13.8(h) to introduce a new data product to be known as the Short Volume Report, modify the name of Rule 13.8 to ‘‘Data Products’’, and add a preamble to Rule 13.8. 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/ options/regulation/rule_filings/edgx/), 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 adopt Rule 13.8(h) 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 EDGX 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 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). 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 24 VerDate Sep<11>2014 Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. Jkt 256001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 Exchange LLC (‘‘NYSE’’),4 with the exception that the proposed product will include buy and sell volume as well as trade counts for buy, sell, sell short, and sell short exempt volume. 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 amend Rule 13.8(h) 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 Post-Closing 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 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. 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 BZX [sic]. 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(r). E:\FR\FM\07DEN1.SGM 07DEN1 Federal Register / Vol. 86, No. 232 / Tuesday, December 7, 2021 / Notices lotter on DSK11XQN23PROD with NOTICES1 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. Based on the above proposal, the Exchange also proposes to amend the name of Rule 13.8 from ‘‘EDGX 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 11.22. 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 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 10 See Supra notes 3 and 4. 9 15 VerDate Sep<11>2014 17:30 Dec 06, 2021 Jkt 256001 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 of 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 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. PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 69307 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. The Exchange believes the proposal to change the name of Rule 13.8 to ‘‘Data Products’’ is reasonable because the proposed Short Volume Report is not a book feed, and thus ‘‘EDGX 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.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 14 See Supra notes 3 and 4. 15 Id. E:\FR\FM\07DEN1.SGM 07DEN1 69308 Federal Register / Vol. 86, No. 232 / Tuesday, December 7, 2021 / Notices 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. 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: lotter on DSK11XQN23PROD with NOTICES1 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– CboeEDGX–2021–049 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–CboeEDGX–2021–049. 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 VerDate Sep<11>2014 17:30 Dec 06, 2021 Jkt 256001 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–CboeEDGX–2021–049, 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. 2021–26450 Filed 12–6–21; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–93690; File No. SR–ICC– 2021–023] Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change Relating to the ICC Clearing Rules and ICC Exercise Procedures December 1, 2021. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934,1 and Rule 19b–4,2 notice is hereby given that on November 19, 2021, ICE Clear Credit LLC (‘‘ICC’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared primarily by ICC. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Clearing Agency’s Statement of the Terms of Substance of the Proposed Rule Change The principal purpose of the proposed rule change is to revise the ICC Clearing Rules (‘‘Rules’’) and 16 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 Exercise Procedures 3 in connection with the clearing of credit default index Swaptions (‘‘Index Swaptions’’).4 II. Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, ICC included statements concerning the purpose of and basis for the proposed rule change, security-based swap submission, or advance notice and discussed any comments it received on the proposed rule change, securitybased swap submission, or advance notice. The text of these statements may be examined at the places specified in Item IV below. ICC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements. (A) Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change (a) Purpose ICC proposes revising the ICC Rules and Exercise Procedures related to the clearing of Index Swaptions.5 The proposed changes to the ICC Rules and Exercise Procedures enhance the restructuring component of iTraxx Index Swaptions and include other clarifications or updates, including with respect to fallback measures in the Exercise Procedures. ICC proposes to make the changes effective following Commission approval of the proposed rule change. The proposed revisions are described in detail as follows. I. Rule Amendments The proposed amendments revise Rule 26R–319, which addresses procedures for settlement of an exercised Index Swaption. ICC proposes clarifications to Rule 26R–319(b), under which additional settlements may be required. The proposed changes add a parenthetical with an exception and specify that clause (i) regarding the settlement of amounts owed is subject to 3 Capitalized terms used but not defined herein have the meanings specified in the Rules and Exercise Procedures. 4 Index Swaptions are also referred to in ICC’s policies and procedures as ‘‘index options’’ or ‘‘index CDS options’’, or in similar terms. 5 Pursuant to an Index Swaption, one party (the ‘‘Swaption Buyer’’) has the right (but not the obligation) to cause the other party (the ‘‘Swaption Seller’’) to enter into an index credit default swap transaction at a pre-determined strike price on a specified expiration date on specified terms. In the case of Index Swaptions cleared by ICC, the underlying index credit default swap is limited to certain CDX and iTraxx index credit default swaps that are accepted for clearing by ICC, and which would be automatically cleared by ICC upon exercise of the Index Swaption by the Swaption Buyer in accordance with its terms. E:\FR\FM\07DEN1.SGM 07DEN1

Agencies

[Federal Register Volume 86, Number 232 (Tuesday, December 7, 2021)]
[Notices]
[Pages 69306-69308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26450]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93696; File No. SR-CboeEDGX-2021-049]


Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice 
of Filing of a Proposed Rule Change To Introduce a New Data Product To 
Be Known as the Short Volume Report, Modify the Name of Rule 13.8 to 
``Data Products'', and Add a Preamble to Rule 13.8

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 17, 2021, Cboe EDGX Exchange, Inc. (``Exchange'' or 
``EDGX'') 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 EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') is filing 
with the Securities and Exchange Commission (``Commission'') a proposed 
rule change to adopt Exchange Rule 13.8(h) to introduce a new data 
product to be known as the Short Volume Report, modify the name of Rule 
13.8 to ``Data Products'', and add a preamble to Rule 13.8. 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/options/regulation/rule_filings/edgx/), 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 adopt Rule 13.8(h) 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 EDGX 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 exception 
that the proposed product will include buy and sell volume as well as 
trade counts for buy, sell, sell short, and sell short exempt volume. 
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.
---------------------------------------------------------------------------

    \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 13.8. The Exchange proposes to amend Rule 
13.8(h) 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 BZX [sic].
---------------------------------------------------------------------------

    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 
Post-Closing 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

[[Page 69307]]

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(r).
---------------------------------------------------------------------------

    Based on the above proposal, the Exchange also proposes to amend 
the name of Rule 13.8 from ``EDGX 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 11.22.
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 of 
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.
    The Exchange believes the proposal to change the name of Rule 13.8 
to ``Data Products'' is reasonable because the proposed Short Volume 
Report is not a book feed, and thus ``EDGX 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.\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

[[Page 69308]]

is not necessary or appropriate in furtherance of the purposes of the 
Act.
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    \14\ See Supra notes 3 and 4.
    \15\ 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 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-CboeEDGX-2021-049 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-CboeEDGX-2021-049. 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-CboeEDGX-2021-049, 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. 2021-26450 Filed 12-6-21; 8:45 am]
BILLING CODE 8011-01-P
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