Self-Regulatory Organizations; Cboe EDGA 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, 52089-52092 [2022-18189]

Download as PDF Federal Register / Vol. 87, No. 163 / Wednesday, August 24, 2022 / Notices 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 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 jspears on DSK121TN23PROD with NOTICES 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: 32 17 CFR 240.19b–4(f)(6). 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). 33 17 VerDate Sep<11>2014 19:09 Aug 23, 2022 Jkt 256001 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–2022–019 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–2022–019. 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–2022–019 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. 2022–18187 Filed 8–23–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–95552; File No. SR– CboeEDGA–2022–011] Self-Regulatory Organizations; Cboe EDGA 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 EDGA Exchange, Inc. (‘‘Exchange’’ or ‘‘EDGA’’) 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 EDGA Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGA’’) 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/ equities/regulation/rule_filings/edga/), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. 1 15 35 17 PO 00000 CFR 200.30–3(a)(12), (59). Frm 00130 Fmt 4703 Sfmt 4703 52089 2 17 E:\FR\FM\24AUN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 24AUN1 52090 Federal Register / Vol. 87, No. 163 / Wednesday, August 24, 2022 / Notices 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 EDGA 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 NYSE Daily Short Volume file also includes trade date,11 symbol,12 short 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 EDGA. 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:// jspears on DSK121TN23PROD with NOTICES 4 ‘‘Total VerDate Sep<11>2014 19:09 Aug 23, 2022 Jkt 256001 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 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 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 EDGA. 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. PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 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 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 25 15 26 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 27 Id. E:\FR\FM\24AUN1.SGM 24AUN1 Federal Register / Vol. 87, No. 163 / Wednesday, August 24, 2022 / Notices 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 jspears on DSK121TN23PROD with NOTICES 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. 28 Supra 29 Supra note 10. note 16. VerDate Sep<11>2014 19:09 Aug 23, 2022 Jkt 256001 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 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 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). 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). 31 17 PO 00000 Frm 00132 Fmt 4703 Sfmt 4703 52091 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– CboeEDGA–2022–011 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–CboeEDGA–2022–011. 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 E:\FR\FM\24AUN1.SGM 24AUN1 52092 Federal Register / Vol. 87, No. 163 / Wednesday, August 24, 2022 / Notices submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CboeEDGA–2022–011 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. 2022–18189 Filed 8–23–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [Release No. 34–95529; File No. SR– CboeBZX–2022–038] Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend Rule 11.28(a) To Extend the MOC CutOff Time August 17, 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 5, 2022, Cboe BZX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘BZX’’) 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 by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. jspears on DSK121TN23PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Cboe BZX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘BZX’’) proposes to amend Rule 11.28(a) to extend the MOC Cut-Off Time from 3:35 p.m. Eastern Time to 3:49 p.m. Eastern Time. 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/bzx/), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. 35 17 CFR 200.30–3(a)(12), (59). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 19:09 Aug 23, 2022 Jkt 256001 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. 1. Purpose Exchange Rule 11.28 (Cboe Market Close, a Closing Match Process for NonBZX-Listed Securities) provides Members an optional closing match process for non-BZX-Listed securities, known as Cboe Market Close (‘‘CMC’’). Currently, per Rule 11.28(a) (Order Entry) Members 3 may enter, cancel, or replace Market-on-Close (‘‘MOC’’) orders designated for participation in CMC beginning at 6:00 a.m. Eastern Time 4 up to 3:35 p.m. (‘‘MOC Cut-Off Time’’). The Exchange now proposes to move the MOC Cut-Off Time from 3:35 p.m. to 3:49 p.m. The Exchange is not proposing to make any other changes to the CMC process. By way of background, on May 5, 2017, the Exchange filed a proposed rule change to adopt CMC, a match process for MOC orders in non-BZX listed securities and on December 1, 2017, filed Amendment No. 1 5 to that proposal (the ‘‘Original Proposal’’).6 On 3 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 Rule 1.5(n), definition of ‘‘Member’’. 4 All times noted throughout are in Eastern Time. 5 The only change in Amendment No. 1 was to rename the proposed closing match process as Cboe Market Close. Per the Commission, because Amendment No. 1 was a technical amendment and did not materially alter the substance of the proposed rule change or raise unique or novel regulatory issues, Amendment No. 1 was not subject to notice and comment. 6 See Securities Exchange Act Release No. 34– 80683 (May 16, 2017), 82 FR 23320 (May 22, 2017) (SR–Bats–BZX–2017–34) (Notice of Filing of a Proposed Rule Change to Introduce Bats Market Close, a Closing Match Process for Non-BZX Listed Securities Under New Exchange Rule 11.28). PO 00000 Frm 00133 Fmt 4703 Sfmt 4703 January 17, 2018, the Commission, acting through authority delegated to the Division of Trading and Markets,7 approved the Original Proposal (‘‘Approval Order’’).8 On January 31, 2018, NYSE Group, Inc. (‘‘NYSE’’) and the Nasdaq Stock Market LLC (‘‘Nasdaq’’) filed petitions for review of the Approval Order (‘‘Petitions for Review’’). Pursuant to Commission Rule of Practice 431(e),9 the Approval Order was stayed by the filing with the Commission of a notice of intention to petition for review.10 On March 1, 2018, pursuant to Commission Rule of Practice 431, the Commission issued a scheduling order granting the Petitions of Review of the Approval Order, and provided until March 22, 2018, for any party or other person to file a written statement in support of, or in opposition to, the Approval Order.11 On April 12, 2018, NYSE and Nasdaq submitted written statements opposing the Approval Order and BZX submitted a statement in support of the Approval Order.12 On October 4, 2018, BZX filed Amendment No. 2 13 to the Original Proposal. The Commission conducted a de novo review of the CMC proposal and associated public record, including 7 17 CFR 200.30–3(a)(12). Securities Exchange Act Release No. 34– 82522 (January 17, 2018), 83 FR 3205 (January 23, 2018) (SR–Bats–BZX–2017–34) (Notice of Filing of Amendment No. 1 and Order Granting Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Introduce Cboe Market Close, a Closing Match Process for Non-BZX Listed Securities Under New Exchange Rule 11.28). 9 17 CFR 201.431(e). 10 See Letter to Christopher Solgan, Assistant General Counsel, Cboe Global Markets, Inc. (Jan. 24, 2018) (providing notice of receipt of notices of intention to petition for review of delegated action and stay of order), available at: https://www.sec.gov/ rules/sro/batsbzx/2018/sr-batsbzx-2017-34-letterfrom-secretary-to-cboe.pdf. 11 See Securities Exchange Act Release No. 82794, 83 FR 9561 (Mar. 6, 2018). On March 16, 2018, the Office of the Secretary, acting by delegated authority, issued an order on behalf of the Commission granting a motion for an extension of time to file statements on or before April 12, 2018. See Securities Exchange Act Release No. 82896, 83 FR 12633 (Mar. 22, 2018) 12 See Statement of NYSE Group, Inc., in Opposition to the Division’s Order Approving a Rule to Introduce Cboe Market Close (‘‘NYSE Statement’’); Statement of the Nasdaq Stock Market LLC in Opposition to Order Granting Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Introduce Cboe Market Close (‘‘Nasdaq Statement’’); and Statement of Cboe BZX Exchange, Inc., in support of Commission Staff’s Approval Order (‘‘BZX Statement’’), available at: https://www.sec.gov/comments/sr-batsbzx-2017-34/ batsbzx201734.htm. 13 See Securities Exchange Act Release No. 34– 84670 (November 28, 2018), 83 FR 62646 (December 4, 2018) (SR–BatsBZX–2017–34) (‘‘Notice of Filing of Amendment No. 2 to Proposed Rule Change to Introduce Cboe Market Close, a Closing Match Process for Non-BZX Listed Securities Under New Exchange Rule 11.28’’). 8 See E:\FR\FM\24AUN1.SGM 24AUN1

Agencies

[Federal Register Volume 87, Number 163 (Wednesday, August 24, 2022)]
[Notices]
[Pages 52089-52092]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18189]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95552; File No. SR-CboeEDGA-2022-011]


Self-Regulatory Organizations; Cboe EDGA 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 EDGA Exchange, Inc. (``Exchange'' or 
``EDGA'') 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.
---------------------------------------------------------------------------

    \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 EDGA Exchange, Inc. (the ``Exchange'' or ``EDGA'') 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/equities/regulation/rule_filings/edga/), at the Exchange's Office of the Secretary, and at 
the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

[[Page 52090]]

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 EDGA 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 EDGA. 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_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 EDGA. 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.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78f(b).
    \26\ 15 U.S.C. 78f(b)(5).
    \27\ Id.
---------------------------------------------------------------------------

    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 short volume data. The proposed rule change would 
benefit investors by providing

[[Page 52091]]

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.
---------------------------------------------------------------------------

    \28\ Supra note 10.
    \29\ Supra note 16.
---------------------------------------------------------------------------

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-CboeEDGA-2022-011 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-CboeEDGA-2022-011. 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

[[Page 52092]]

submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-CboeEDGA-2022-011 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. 2022-18189 Filed 8-23-22; 8:45 am]
BILLING CODE 8011-01-P
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