Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Introduce a New Data Product To Be Known as the Short Volume Report, 52084-52087 [2022-18188]
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Federal Register / Vol. 87, No. 163 / Wednesday, August 24, 2022 / Notices
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Informing Data Collections
Ultimately, individual agencies
decide what data to collect and publish
through their forms and surveys, taking
into account considerations like
informed consent, privacy risk,
statistical rigor, intended use of the
data, budget, burden to respondents,
and more. With that in mind, OSTP
seeks response to the following
questions about where potentially
useful data is lacking:
1. In some instances, there are
multiple surveys or data collections that
could be used to generate evidence
about a particular disparity faced by the
LGBTQI+ community. In addition to
factors like sample size, timeliness of
the data, and geographic specificity of
related data publications, what other
factors should be considered when
determining which survey would best
generate the relevant evidence? Are
there data collections that would be
uniquely valuable in improving the
Federal Government’s ability to make
data-informed decisions that advance
equity for the LGBTQI+ community?
2. To protect privacy and maintain
statistical rigor, sometimes publiclyreleased data must combine sexual and
gender minority respondents into a
single category. While this approach can
provide valuable evidence, it can also
obscure important details and
differences. Please tell us about the
usefulness of combined data, and under
what circumstances more detailed data
may be necessary.
3. Are there any Federal surveys or
administrative data collections for
which you would recommend the
Federal Government should not explore
collecting SOGI data due to privacy risk,
the creation of barriers to participation
in Federal programs, or other reasons?
Which collections or type of collections
are they, and why would you make this
recommendation?
4. How can Federal agencies best
communicate with the public about
methodological constraints to collecting
or publishing SOGI data? Additionally,
how can agencies encourage public
response to questions about sexual
orientation and gender identity in order
to improve sample sizes and population
coverage?
5. Data collection on vulnerable
populations is often incomplete,
creating challenges for creating datainformed decisions to advance equity
for those populations. How can
statistical techniques help identify
missing SOGI data, and make
statistically rigorous estimates for that
missing data? How should qualitative
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information help agencies analyze what
SOGI data might be missing?
this data and restrictions on its use or
transfer?
Privacy, Security, and Civil Rights
Dated: August 19, 2022.
Stacy Murphy,
Operations Manager.
The Executive Order calls on the
interagency SOGI data body to identify
privacy, confidentiality, and civil rights
practices agencies should follow when
collecting SOGI data. Though members
have expertise in how privacy,
confidentiality, and civil rights practices
apply to other marginalized groups,
OSTP seeks input on privacy,
confidentiality, and civil rights
considerations that are unique to the
LGBTQI+ community and/or are
experienced differently by LGBTQI+
people, including in intersection with
other marginalized experiences.
Accordingly, OSTP seeks response to
the following questions:
1. While the confidentiality of data
collected by the statistical system is
protected by statute, OMB and other
agency policies, and experience in
protecting the confidentiality of
respondents through data governance,
privacy-preserving technology, and
disclosure limitation practices, a wide
range of privacy protections apply to
data collected for programmatic
purposes, such as applications for
Federal programs or benefits,
compliance forms, human resources
data, and other data used to manage and
operate Federal programs. What specific
privacy and confidentiality
considerations should the
Subcommittee on SOGI Data keep in
mind when determining promising
practices for the collection of this data
and restrictions on its use or transfer,
especially in the context of government
forms and other collections of data for
programmatic use?
2. Unique risks may exist when
collecting SOGI data in the context of
both surveys and administrative forms.
Please tell us about specific risks
Federal agencies should think about
when considering whether to collect
these data in surveys or administrative
contexts.
3. Once SOGI data have been
collected for administrative or statistical
purposes, are there considerations that
Federal agencies should be aware of
concerning retention of these data?
Please tell us how privacy or
confidentiality protections could
mitigate or change these concerns.
4. Where programmatic data is used to
enforce civil rights protections, such as
in employment, credit applications, or
education settings, what considerations
should the Subcommittee on SOGI Data
keep in mind when determining
promising practices for the collection of
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[FR Doc. 2022–18219 Filed 8–23–22; 8:45 am]
BILLING CODE 3270–F2–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–95551; File No. SR–
CboeEDGX–2022–036]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Introduce a
New Data Product To Be Known as the
Short Volume Report
August 18, 2022.
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 August 9,
2022, Cboe EDGX Exchange, Inc.
(‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) is filing with
the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change to Exchange Rule
13.8 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/
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
1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 87, No. 163 / Wednesday, August 24, 2022 / Notices
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 seeks to amend Rule
13.8 to adopt paragraph 13.8(h), which
introduces a new data product, the
Short Volume Report. A description of
each market data product offered by the
Exchange is provided in Exchange Rule
13.8 and proposed Rule 13.8(h) provides
that the Short Volume Report is an endof-day report that summarizes certain
equity trading activity on the Exchange,
and includes trade date,3 total volume,4
sell short volume,5 and sell short
exempt volume,6 by symbol.7 The Short
Volume Report will be available for
purchase to both EDGX Members
(‘‘Members’’) 8 as well as non-Members.9
The Exchange notes that the data
fields included in the Short Volume
Report are essentially identical to the
fields included by the New York Stock
Exchange LLC (‘‘NYSE’’) in their Daily
Short Volume file.10 Specifically, the
3 ‘‘Trade
date’’ is the date of the trading activity.
volume’’ is the total share volume of all
order executions.
5 ‘‘Sell Short volume’’ is the total share volume
of all short order executions, (Sell Short + Sell
Short Exempt).
6 ‘‘Short exempt volume’’ is the total share
volume of all short exempt order executions.
7 Symbol refers to the Cboe formatted symbol in
which the trading activity occurred. See https://
cdn.cboe.com/resources/membership/US_
Symbology_Reference.pdf.
8 The term ‘‘Member’’ shall mean any registered
broker or dealer that has been admitted to
membership in the Exchange. A Member will have
the status of a ‘‘member’’ of the Exchange as that
term is defined in Section 3(a)(3) of the Act.
Membership may be granted to a sole proprietor,
partnership, corporation, limited liability company
or other organization which is a registered broker
or dealer pursuant to Section 15 of the Act, and
which has been approved by the Exchange. See
Exchange Rule 1.5(n), definition of ‘‘Member’’.
9 The Exchange intends to submit a separate filing
to establish fees for the Short Volume Report.
10 See NYSE Daily Short Volume Client
Specification, available at: https://www.nyse.com/
publicdocs/nyse/data/Daily_Short_Volume_Client_
Spec_v1.3.pdf. The NYSE Daily Short Volume
includes trade date, symbol, short exempt volume,
short volume, and total volume. Unlike NYSE, the
proposed Short Volume Report will not include the
trading exchange, as the proposed report includes
short sale volume only for transactions executed on
EDGX. Additionally, NYSE’s Daily Short Volume
file specifies that short volume is comprised of the
sum of, (sell short volume + sell short exempt
volume + sell short with slide). While the Exchange
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4 ‘‘Total
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NYSE Daily Short Volume file also
includes trade date,11 symbol,12 short
exempt volume,13 short volume,14 and
total volume.15 The proposed Short
Volume Report is also similar to
Nasdaq’s Daily Short Sale Volume file 16
which includes, date,17 symbol,18 short
volume,19 total volume,20 and market
center.21 The Short Volume Report will
be available for purchase 22 by both
Members and non-Members on a
monthly subscription basis, and
subscribers will receive a daily end-ofday file. Additionally, like NYSE, the
Exchange will offer historical daily
Short Volume Reports. Historical daily
Short Volume Reports will be available
for purchase dating back to January 2,
2015,23 and will include the same data
fields as the daily end-of-day files.24
The Exchange anticipates that a wide
variety of market participants will
purchase the proposed Short Volume
Report, including, but not limited to,
active equity trading firms and
does not specifically flag sell short with slide
transactions, such transactions are recognized
simply as sell short or sell short exempt and are
thus included in the Exchange’s sell short and sell
short exempt volume totals.
11 NYSE ‘‘Trade date’’ is the date of trading
session activity.
12 NYSE ‘‘Symbol’’ is defined in the NYSE
Symbology Specification, available at: https://
www.nyse.com/publicdocs/nyse/data/Daily_Short_
Volume_Clien_Spec_v1.3.pdf.
13 NYSE ‘‘Short Exempt Volume’’ is the total
share volume of all Short Exempt order executions.
14 NYSE ‘‘Short Volume’’ is the total share
volume of all short order executions, (Sell Short +
Sell Short Exempt + Sell Short with Slide).
15 NYSE ‘‘Total Volume’’ is the total share volume
of all order executions.
16 See Specifications for Daily Short Sale Volume
file, available at: https://www.nasdaqtrader.com/
content/technicalsupport/specifications/
dataproducts/ShortSaleFileSpecifications.pdf. The
Exchange notes that Nasdaq’s comparable product,
the Daily Short Sale Volume file, reflects aggregate
information across their affiliated equity exchanges.
The Exchange is not proposing an aggregated Short
Volume Report across its affiliated equity
exchanges, and the proposal includes only volume
on EDGX. As such, the volumes calculated on
Nasdaq reports will differ from that in the proposed
Short Volume Report.
17 Nasdaq ‘‘Date’’ is the trade date (YYYMMDD).
18 Nasdaq ‘‘Symbol’’ is the Trading Symbol.
19 Nasdaq ‘‘Short Volume’’ is the aggregate
reported share volume of executed short sales
during regular trading hours.
20 Nasdaq ‘‘Total Volume’’ is the aggregate
reported share volume of all executed trades during
regular trading hours.
21 Nasdaq ‘‘Market Center’’ is the market
identifier (Q = NASDAQ for NASDAQ file, B =
Boston for Boston file, X = PSX).
22 The Exchange notes that short sale information
that is available free of charge on the Cboe website
will continue to be publicly available upon
approval of this proposal.
23 Historical Short Volume Reports will be
available for purchase on an ad hoc basis.
24 The Exchange notes that NYSE also offers
historical daily short sale files. See https://
www.nyse.com/market-data/historical/taq-nysegroup-short-sales.
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52085
academic institutions. For example, the
Exchange notes that academic
institutions may utilize the Short
Volume Report data and as a result
promote research and studies of the
equities industry to the benefit of all
market participants. The Exchange
further believes the proposed Short
Volume Report may provide helpful
trading information regarding investor
sentiment that may allow market
participants to make more informed
trading decisions and may be used to
create and test trading models and
analytical strategies and provide
comprehensive insight into trading on
the Exchange. The proposal is a
completely voluntary product, in that
the Exchange is not required by any rule
or regulation to make this data available
and that potential subscribers may
purchase it only if they voluntarily
choose to do so.
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.25 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 26 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) 27 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
25 15
26 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
27 Id.
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52086
Federal Register / Vol. 87, No. 163 / Wednesday, August 24, 2022 / Notices
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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 short
volume data. The proposed rule change
would benefit investors by providing
access to the Short Volume Report data,
which may promote better informed
trading, as well as research and studies
of the equities industry.
Moreover, as noted above, NYSE
offers a Daily Short Volume file which
provides data that is essentially
identical to that currently proposed by
the Exchange—trade date, symbol, short
volume, short exempt volume, and total
volume.28 The proposed Short Volume
Report is also similar to Nasdaq’s Daily
Short Sale Volume file which includes,
date, symbol, short volume, total
volume, and market center.29
Accordingly, the proposed Short
Volume Report does not provide a
unique or novel data offering, but rather
offers data points consistent with other
data products already available and
utilized by market participants today.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change 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 proposal will
promote fair competition among the
national securities exchanges by
permitting the Exchange to offer a data
product that provides substantially the
same data offered by other competitor
equities exchanges. Additionally, the
Short Volume Report will be available
equally to Members and non-Members.
Market participants are not required to
purchase the Short Volume Report, and
the Exchange is not required to make
the Short Volume Report available to
investors. Rather, the Exchange is
voluntarily making the Short Volume
Report available, as requested by
customers, and market participants may
choose to receive (and pay for) this data
based on their own business needs.
Potential purchasers may request the
data at any time if they believe it to be
valuable or may decline to purchase
such data. Given the above, 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.
28 Supra
29 Supra
note 10.
note 16.
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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
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 30 and Rule 19b–
4(f)(6) thereunder.31
A proposed rule change filed under
Rule 19b–4(f)(6) 32 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),33 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has requested
that the Commission waive the 30-day
operative delay so that the proposal may
become operative prior to 30 days after
the date of the filing. The Exchange
states that waiver of the operative delay
is consistent with the protection of
investors and the public interest
because the proposed Short Volume
Report is nearly identical to the
currently available NYSE Daily Short
Volume file and Nasdaq Daily Short
Volume file and would permit the
Exchange to immediately make the
Short Volume Report available to
subscribers as an alternative to similar
products offered by NYSE and Nasdaq.
The Commission believes that waiver of
the 30-day operative delay is consistent
with the protection of investors and the
public interest because the proposed
rule change does not raise any new or
novel issues. Accordingly, the
Commission hereby waives the
operative delay and designates the
30 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.
32 17 CFR 240.19b–4(f)(6).
33 17 CFR 240.19b–4(f)(6)(iii).
31 17
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proposed rule change operative upon
filing.34
At any time within 60 days of the
filing of such 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 rule-comments@
sec.gov. Please include File Number SR–
CboeEDGX–2022–036 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–2022–036. 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,
34 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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Federal Register / Vol. 87, No. 163 / Wednesday, August 24, 2022 / Notices
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–2022–036 and
should be submitted on or before
September 14, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.35
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2022–18188 Filed 8–23–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–95548; File No. SR–
CboeBYX–2022–019]
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Introduce a
New Data Product To Be Known as the
Short Volume Report
August 18, 2022.
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 August 9,
2022, Cboe BYX Exchange, Inc.
(‘‘Exchange’’ or ‘‘BYX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
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 seeks to amend Rule
11.22 to adopt paragraph 11.22(f), which
introduces a new data product, the
Short Volume Report. A description of
each market data product offered by the
Exchange is provided in Exchange Rule
11.22 and proposed Rule 11.22(f)
provides that the Short Volume Report
is an end-of-day report that summarizes
certain equity trading activity on the
Exchange, and includes trade date,3
total volume,4 sell short volume,5 and
sell short exempt volume,6 by symbol.7
The Short Volume Report will be
available for purchase to both BYX
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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
35 17
CFR 200.30–3(a)(12), (59).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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3 ‘‘Trade
date’’ is the date of the trading activity.
volume’’ is the total share volume of all
order executions.
5 ‘‘Sell Short volume’’ is the total share volume
of all short order executions, (Sell Short + Sell
Short Exempt).
6 ‘‘Short exempt volume’’ is the total share
volume of all short exempt order executions.
7 Symbol refers to the Cboe formatted symbol in
which the trading activity occurred. See https://
cdn.cboe.com/resources/membership/US_
Symbology_Reference.pdf.
4 ‘‘Total
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52087
Members (‘‘Members’’) 8 as well as nonMembers.9
The Exchange notes that the data
fields included in the Short Volume
Report are essentially identical to the
fields included by the New York Stock
Exchange LLC (‘‘NYSE’’) in their Daily
Short Volume file.10 Specifically, the
NYSE Daily Short Volume file also
includes trade date,11 symbol,12 short
exempt volume,13 short volume,14 and
total volume.15 The proposed Short
Volume Report is also similar to
Nasdaq’s Daily Short Sale Volume file 16
which includes, date,17 symbol,18 short
8 The term ‘‘Member’’ shall mean any registered
broker or dealer that has been admitted to
membership in the Exchange. A Member will have
the status of a ‘‘member’’ of the Exchange as that
term is defined in Section 3(a)(3) of the Act.
Membership may be granted to a sole proprietor,
partnership, corporation, limited liability company
or other organization which is a registered broker
or dealer pursuant to Section 15 of the Act, and
which has been approved by the Exchange. See
Exchange Rule 1.5(n), definition of ‘‘Member’’.
9 The Exchange intends to submit a separate filing
to establish fees for the Short Volume Report.
10 See NYSE Daily Short Volume Client
Specification, available at: https://www.nyse.com/
publicdocs/nyse/data/Daily_Short_Volume_Client_
Spec_v1.3.pdf. The NYSE Daily Short Volume
includes trade date, symbol, short exempt volume,
short volume, and total volume. Unlike NYSE, the
proposed Short Volume Report will not include the
trading exchange, as the proposed report includes
short sale volume only for transactions executed on
BYX. Additionally, NYSE’s Daily Short Volume file
specifies that short volume is comprised of the sum
of, (sell short volume + sell short exempt volume
+ sell short with slide). While the Exchange does
not specifically flag sell short with slide
transactions, such transactions are recognized
simply as sell short or sell short exempt and are
thus included in the Exchange’s sell short and sell
short exempt volume.
11 NYSE ‘‘Trade date’’ is the date of trading
session activity.
12 NYSE ‘‘Symbol’’ is defined in the NYSE
Symbology Specification, available at: https://
www.nyse.com/publicdocs/nyse/data/Daily_Short_
Volume_Client_Spec_v1.3.pdf.
13 NYSE ‘‘Short Exempt Volume’’ is the total
share volume of all Short Exempt order executions.
14 NYSE ‘‘Short Volume’’ is the total share
volume of all short order executions, (Sell Short +
Sell Short Exempt + Sell Short with Slide).
15 NYSE ‘‘Total Volume’’ is the total share volume
of all order executions.
16 See Specifications for Daily Short Sale Volume
file, available at: https://www.nasdaqtrader.com/
content/technicalsupport/specifications/
dataproducts/ShortSaleFileSpecifications.pdf. The
Exchange notes that Nasdaq’s comparable product,
the Daily Short Sale Volume File, reflects aggregate
information across their affiliated equity exchanges.
The Exchange is not proposing an aggregated Short
Volume Report across its affiliated equity
exchanges, and the proposal includes only volume
on BYX. As such, the volumes calculated on
Nasdaq reports will differ from that in the proposed
Short Volume Report.
17 Nasdaq ‘‘Date’’ is the trade date (YYYMMDD).
18 Nasdaq ‘‘Symbol’’ is the Trading Symbol.
E:\FR\FM\24AUN1.SGM
24AUN1
]]>Agencies
[Federal Register Volume 87, Number 163 (Wednesday, August 24, 2022)]
[Notices]
[Pages 52084-52087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18188]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95551; File No. SR-CboeEDGX-2022-036]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Introduce a New Data Product To Be Known as the Short Volume Report
August 18, 2022.
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 August 9, 2022, Cboe EDGX Exchange, Inc. (``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') is filing
with the Securities and Exchange Commission (``Commission'') a proposed
rule change to Exchange Rule 13.8 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/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
[[Page 52085]]
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 seeks to amend Rule 13.8 to adopt paragraph 13.8(h),
which introduces a new data product, the Short Volume Report. A
description of each market data product offered by the Exchange is
provided in Exchange Rule 13.8 and proposed Rule 13.8(h) provides that
the Short Volume Report is an end-of-day report that summarizes certain
equity trading activity on the Exchange, and includes trade date,\3\
total volume,\4\ sell short volume,\5\ and sell short exempt volume,\6\
by symbol.\7\ The Short Volume Report will be available for purchase to
both EDGX Members (``Members'') \8\ as well as non-Members.\9\
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\3\ ``Trade date'' is the date of the trading activity.
\4\ ``Total volume'' is the total share volume of all order
executions.
\5\ ``Sell Short volume'' is the total share volume of all short
order executions, (Sell Short + Sell Short Exempt).
\6\ ``Short exempt volume'' is the total share volume of all
short exempt order executions.
\7\ Symbol refers to the Cboe formatted symbol in which the
trading activity occurred. See https://cdn.cboe.com/resources/membership/US_Symbology_Reference.pdf.
\8\ The term ``Member'' shall mean any registered broker or
dealer that has been admitted to membership in the Exchange. A
Member will have the status of a ``member'' of the Exchange as that
term is defined in Section 3(a)(3) of the Act. Membership may be
granted to a sole proprietor, partnership, corporation, limited
liability company or other organization which is a registered broker
or dealer pursuant to Section 15 of the Act, and which has been
approved by the Exchange. See Exchange Rule 1.5(n), definition of
``Member''.
\9\ The Exchange intends to submit a separate filing to
establish fees for the Short Volume Report.
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The Exchange notes that the data fields included in the Short
Volume Report are essentially identical to the fields included by the
New York Stock Exchange LLC (``NYSE'') in their Daily Short Volume
file.\10\ Specifically, the NYSE Daily Short Volume file also includes
trade date,\11\ symbol,\12\ short exempt volume,\13\ short volume,\14\
and total volume.\15\ The proposed Short Volume Report is also similar
to Nasdaq's Daily Short Sale Volume file \16\ which includes, date,\17\
symbol,\18\ short volume,\19\ total volume,\20\ and market center.\21\
The Short Volume Report will be available for purchase \22\ by both
Members and non-Members on a monthly subscription basis, and
subscribers will receive a daily end-of-day file. Additionally, like
NYSE, the Exchange will offer historical daily Short Volume Reports.
Historical daily Short Volume Reports will be available for purchase
dating back to January 2, 2015,\23\ and will include the same data
fields as the daily end-of-day files.\24\
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\10\ See NYSE Daily Short Volume Client Specification, available
at: https://www.nyse.com/publicdocs/nyse/data/Daily_Short_Volume_Client_Spec_v1.3.pdf. The NYSE Daily Short Volume
includes trade date, symbol, short exempt volume, short volume, and
total volume. Unlike NYSE, the proposed Short Volume Report will not
include the trading exchange, as the proposed report includes short
sale volume only for transactions executed on EDGX. Additionally,
NYSE's Daily Short Volume file specifies that short volume is
comprised of the sum of, (sell short volume + sell short exempt
volume + sell short with slide). While the Exchange does not
specifically flag sell short with slide transactions, such
transactions are recognized simply as sell short or sell short
exempt and are thus included in the Exchange's sell short and sell
short exempt volume totals.
\11\ NYSE ``Trade date'' is the date of trading session
activity.
\12\ NYSE ``Symbol'' is defined in the NYSE Symbology
Specification, available at: https://www.nyse.com/publicdocs/nyse/data/Daily_Short_Volume_Clien_Spec_v1.3.pdf.
\13\ NYSE ``Short Exempt Volume'' is the total share volume of
all Short Exempt order executions.
\14\ NYSE ``Short Volume'' is the total share volume of all
short order executions, (Sell Short + Sell Short Exempt + Sell Short
with Slide).
\15\ NYSE ``Total Volume'' is the total share volume of all
order executions.
\16\ See Specifications for Daily Short Sale Volume file,
available at: https://www.nasdaqtrader.com/content/technicalsupport/specifications/dataproducts/ShortSaleFileSpecifications.pdf. The
Exchange notes that Nasdaq's comparable product, the Daily Short
Sale Volume file, reflects aggregate information across their
affiliated equity exchanges. The Exchange is not proposing an
aggregated Short Volume Report across its affiliated equity
exchanges, and the proposal includes only volume on EDGX. As such,
the volumes calculated on Nasdaq reports will differ from that in
the proposed Short Volume Report.
\17\ Nasdaq ``Date'' is the trade date (YYYMMDD).
\18\ Nasdaq ``Symbol'' is the Trading Symbol.
\19\ Nasdaq ``Short Volume'' is the aggregate reported share
volume of executed short sales during regular trading hours.
\20\ Nasdaq ``Total Volume'' is the aggregate reported share
volume of all executed trades during regular trading hours.
\21\ Nasdaq ``Market Center'' is the market identifier (Q =
NASDAQ for NASDAQ file, B = Boston for Boston file, X = PSX).
\22\ The Exchange notes that short sale information that is
available free of charge on the Cboe website will continue to be
publicly available upon approval of this proposal.
\23\ Historical Short Volume Reports will be available for
purchase on an ad hoc basis.
\24\ The Exchange notes that NYSE also offers historical daily
short sale files. See https://www.nyse.com/market-data/historical/taq-nyse-group-short-sales.
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The Exchange anticipates that a wide variety of market participants
will purchase the proposed Short Volume Report, including, but not
limited to, active equity trading firms and academic institutions. For
example, the Exchange notes that academic institutions may utilize the
Short Volume Report data and as a result promote research and studies
of the equities industry to the benefit of all market participants. The
Exchange further believes the proposed Short Volume Report may provide
helpful trading information regarding investor sentiment that may allow
market participants to make more informed trading decisions and may be
used to create and test trading models and analytical strategies and
provide comprehensive insight into trading on the Exchange. The
proposal is a completely voluntary product, in that the Exchange is not
required by any rule or regulation to make this data available and that
potential subscribers may purchase it only if they voluntarily choose
to do so.
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.\25\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \26\ 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) \27\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\25\ 15 U.S.C. 78f(b).
\26\ 15 U.S.C. 78f(b)(5).
\27\ Id.
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In adopting Regulation NMS, the Commission granted self-regulatory
organizations (``SROs'') and broker-dealers increased authority and
flexibility to offer new and unique market data to the public. It was
believed that this authority would expand the amount of data available
to consumers, and also spur innovation and competition for the
provision of market data. The Exchange believes that
[[Page 52086]]
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 short volume data. The proposed rule
change would benefit investors by providing access to the Short Volume
Report data, which may promote better informed trading, as well as
research and studies of the equities industry.
Moreover, as noted above, NYSE offers a Daily Short Volume file
which provides data that is essentially identical to that currently
proposed by the Exchange--trade date, symbol, short volume, short
exempt volume, and total volume.\28\ The proposed Short Volume Report
is also similar to Nasdaq's Daily Short Sale Volume file which
includes, date, symbol, short volume, total volume, and market
center.\29\ Accordingly, the proposed Short Volume Report does not
provide a unique or novel data offering, but rather offers data points
consistent with other data products already available and utilized by
market participants today.
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\28\ Supra note 10.
\29\ Supra note 16.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change 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 proposal will promote fair competition among the
national securities exchanges by permitting the Exchange to offer a
data product that provides substantially the same data offered by other
competitor equities exchanges. Additionally, the Short Volume Report
will be available equally to Members and non-Members. Market
participants are not required to purchase the Short Volume Report, and
the Exchange is not required to make the Short Volume Report available
to investors. Rather, the Exchange is voluntarily making the Short
Volume Report available, as requested by customers, and market
participants may choose to receive (and pay for) this data based on
their own business needs. Potential purchasers may request the data at
any time if they believe it to be valuable or may decline to purchase
such data. Given the above, 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
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 \30\ and Rule 19b-
4(f)(6) thereunder.\31\
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\30\ 15 U.S.C. 78s(b)(3)(A).
\31\ 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) \32\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\33\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the proposal may become operative prior to 30 days after the date of
the filing. The Exchange states that waiver of the operative delay is
consistent with the protection of investors and the public interest
because the proposed Short Volume Report is nearly identical to the
currently available NYSE Daily Short Volume file and Nasdaq Daily Short
Volume file and would permit the Exchange to immediately make the Short
Volume Report available to subscribers as an alternative to similar
products offered by NYSE and Nasdaq. The Commission believes that
waiver of the 30-day operative delay is consistent with the protection
of investors and the public interest because the proposed rule change
does not raise any new or novel issues. Accordingly, the Commission
hereby waives the operative delay and designates the proposed rule
change operative upon filing.\34\
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\32\ 17 CFR 240.19b-4(f)(6).
\33\ 17 CFR 240.19b-4(f)(6)(iii).
\34\ For purposes only of waiving the 30-day operative delay,
the Commission also has 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 such 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 Number SR-CboeEDGX-2022-036 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-2022-036. 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,
[[Page 52087]]
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-2022-036 and should
be submitted on or before September 14, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\35\
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\35\ 17 CFR 200.30-3(a)(12), (59).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2022-18188 Filed 8-23-22; 8:45 am]
BILLING CODE 8011-01-P
