[Federal Register Volume 87, Number 82 (Thursday, April 28, 2022)]
[Notices]
[Pages 25320-25324]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09048]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94782; File No. SR-CboeEDGA-2021-025]
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice
of Filing of Proposed Rule Change, as Modified by Amendment No. 1, To
Introduce a New Data Product To Be Known as the Short Volume Report,
Modify the Name of Rule 13.8 to ``Data Products'', and Add a Preamble
to Rule 13.8
April 22, 2022.
On November 17, 2021, Cboe EDGA Exchange, Inc. (``EDGA'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) \1\ of the Securities
Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ a
proposed rule change to amend Exchange Rule 13.8(h) to introduce a new
data product to be known as the Short Volume Report. The proposed rule
change was published for comment in the Federal Register on December 7,
2021.\4\ On January 20, 2022, pursuant to Section 19(b)(2) of the
Act,\5\ the Commission designated a longer period within which to
approve the proposed rule change, disapprove the proposed rule change,
or institute proceedings to determine whether to disapprove the
proposed rule change.\6\ On March 7, 2022, the Commission instituted
proceedings under Section 19(b)(2)(B) of the Act \7\ to determine
whether to approve or disapprove the proposed rule change.\8\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
\4\ See Securities Exchange Act Release No. 93694 (December 1,
2021), 86 FR 69299. The comment letters received on the proposed
rule change are available on the Commission's website at: https://www.sec.gov/comments/sr-cboeedga-2021-025/srcboeedga2021025.htm.
\5\ 15 U.S.C. 78s(b)(2).
\6\ See Securities Exchange Act Release No. 94007, 87 FR 4072
(January 26, 2022). The Commission designated March 7, 2022, as the
date by which it should approve, disapprove, or institute
proceedings to determine whether to disapprove the proposed rule
change.
\7\ 15 U.S.C. 78s(b)(2)(B).
\8\ See Securities Exchange Act Release No. 94367, 87 FR 14058
(March 11, 2022).
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On March 30, 2022, the Exchange filed Amendment No. 1 to the
proposed rule change, which superseded the proposed rule change as
originally filed. Amendment No. 1 to the proposed rule change is
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, as modified by Amendment No. 1,
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 adopt Exchange Rule 13.8(h) to introduce a new data
product to be known as the Short Volume Report, modify the name of Rule
13.8 to ``Data Products'', and add a preamble to Rule 13.8. The text of
the proposed rule change is provided in Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/edga/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
This Amendment No. 1 to SR-EDGA-2021-025 amends and replaces in its
entirety the proposal as originally submitted on November 17, 2021. The
Exchange submits this Amendment No. 1 in order to clarify certain
points and add additional details to the proposal.
The Exchange proposes to adopt Rule 13.8(h) to provide for a new
data product to be known as the Short Volume Report. The proposal
introduces the Short Volume Report which will be available for purchase
to EDGA Members (``Members'') \9\ and non-Members. The Exchange notes
that the proposed Short Volume Report generally consists of information
similar to that included in various data products offered by the Nasdaq
Stock Market LLC (``Nasdaq'') and the New York Stock Exchange LLC
(``NYSE''), and/or information that is currently available or
determinable from other publicly available sources such as Cboe
DataShop,\10\ the Cboe website,\11\ or the CTA and UTP feeds made
available by the Securities Information Processor (``SIP''), the only
exception being the proposed transaction counts related to sell short
and sell short exempt.
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\9\ See Exchange Rule 1.5(n).
\10\ See Equity and ETF Trades Data [bond] Subscription
(cboe.com).
\11\ See Cboe EDGA U.S. Equities Exchange Short Sale Reports.
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A description of each market data product offered by the Exchange
is described in Exchange Rule 13.8. The Exchange proposes to amend Rule
13.8(h) to introduce and add a description of the Short Volume Report.
The Exchange proposes to describe the Short Volume Report as ``an end-
of-day report that summarizes certain equity trading activity on the
Exchange, including trade count and volume by symbol for buy, sell
long, sell short, and sell short exempt trades. The report also
includes the total volume which represents the sum of all shares for
buy, sell, sell short, and sell short exempt trades.'' \12\
Specifically, the end-of-day report will include the following
information: trade date,\13\ symbol,\14\ total volume,\15\ buy
volume,\16\ buy trade count,\17\ sell long volume,\18\ sell long
[[Page 25321]]
trade count,\19\ sell short volume,\20\ sell short trade count,\21\
sell short exempt volume,\22\ and sell short exempt trade count.\23\ As
discussed in further detail below, the Exchange notes that, with the
exception of short sale and short sale exempt transaction counts, all
components of the proposed Short Volume Report are either data points
similar to those provided by NYSE and Nasdaq,\24\ and/or attainable
from existing publicly available data sources such as the SIP, the Cboe
website, or Cboe DataShop. The Exchange believes that the consolidation
and presentation of data as proposed in the Short Volume Report will
benefit market participants because such report will allow market
participants to better discern whether daily sell activity is long or
short, or sell short exempt. Such insight may aid participants in
better understanding the changing risk environment on a daily basis.
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\12\ Information provided in the report includes only trade
data, and does not include order data.
\13\ Trade date refers to the date of trading activity.
\14\ Symbol refers to the Cboe formatted symbol in which the
trading activity occurred. See https://cdn.cboe.com/resources//_Symbology_Reference.pdf.
\15\ Total volume is the total share volume of all buy, sell
long, sell short, and sell short exempt order executions and is
equal to the sum of buy volume, sell long volume, sell short volume,
and sell short exempt volume.
\16\ Buy volume is the total share volume of all buy order
executions and is equal to the sum of sell long volume, sell short
volume, and sell short exempt volume.
\17\ Buy trade count is the total trade count of all buy order
executions and is equal to the sum of sell long trade count, sell
short trade count, and sell short exempt trade count.
\18\ Sell long volume is the total share volume of all sell long
order executions.
\19\ Sell long trade count is the total trade count of all sell
long order executions.
\20\ Sell short volume is the total share volume of all sell
short order executions and will not include sell short exempt
volume.
\21\ Sell short trade count is the total trade count of all sell
short order executions and will not include short sale exempt
trades.
\22\ Sell short exempt volume is the total share volume of all
sell short exempt order executions.
\23\ Sell short exempt trade count is the total trade count of
all sell short exempt order executions.
\24\ 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 and trade counts
executed on EDGA. As such, the volumes calculated on Nasdaq reports
will differ from that in the proposed Short Volume Report.
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The Short Volume Report will be available for purchase \25\ on a
monthly subscription basis and both Members and non-Member subscribers
will receive a daily end-of-day file that will be delivered after the
conclusion of the Post-Closing Session.\26\ Additionally, historical
Short Volume Reports dating as far back as January 2, 2015 will be
available for purchase on an ad hoc basis in monthly increments. The
subscription files and historical files will include the same data
points. Lastly, the Exchange notes the proposed product is a completely
voluntary product, in that the Exchange is not required by any rule or
regulation to make this data available and that potential subscribers
may subscribe to it only if they voluntarily choose to do so.
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\25\ The Exchange intends to submit a separate rule filing to
adopt fees for the Short Volume Report product.
\26\ See Exchange Rule 1.5(r).
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Based on the above proposal, the Exchange also proposes to amend
the name of Rule 13.8 from ``EDGA Book Feeds'' to ``Data Products''.
Such an amendment would accurately describe the Rule as the proposed
product is not a book feed, but rather a data product. Further, the
existing data feeds identified in Rule 13.8 are also data products. The
Exchange also proposes to add the following preamble to Rule 13.8:
``The Exchange offers the following data products free of charge,
unless otherwise noted in the Exchange's fee schedule''. The proposed
language conforms to rule text provided in Cboe BZX Exchange, Inc.
(``BZX'') and Cboe BYX Exchange, Inc. (``BYX'') Rules 11.22.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\27\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \28\ 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) \29\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\27\ 15 U.S.C. 78f(b).
\28\ 15 U.S.C. 78f(b)(5).
\29\ 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. In this regard, 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 of
short sale data, which benefits investors by fostering better informed
trading.
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. In this regard, 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 of
short sale data, which benefits investors by fostering better informed
trading.
As noted above, aside from the proposed sell short and sell short
exempt transaction counts, the proposed Short Volume Report consists of
information similar to that included in various data products offered
Nasdaq and NYSE, and/or information that is available or determinable
from other publicly available sources such as Cboe DataShop,\30\ the
Cboe website,\31\ or the SIP. 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 the proposal.
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\30\ Supra note 4.
\31\ Supra note 5.
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Trade Date and Symbol
The proposed data points for trade date and symbol are generally
available from numerous data sources, such as the Nasdaq Daily Short
Sale Volume files. The Nasdaq Daily Short Sale Volume files ``reflect
the aggregate number of shares executed on the Nasdaq market during
regular trading hours on a daily basis. At the security level, Nasdaq
will show the volume for executed short sale trades, as well as the
total trading volume for the Nasdaq market.'' \32\ Specifically, the
Nasdaq Daily Short Sale Volume files provide the date, which is defined
as the trade date of a transaction, and the symbol, which is defined as
the trading symbol, for trading activity on Nasdaq.\33\ As proposed,
the Exchange seeks to provide trade date and symbol information
consistent with how the Nasdaq Daily
[[Page 25322]]
Short Volume files capture these data points.
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\32\ See Nasdaq Pricing Schedule, Section 152(a).
\33\ See https://nasdaqtrader.com/content/technicalsupport/specifications/dataproducts/ShortSaleFileSpecifications.pdf.
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Total Volume
As noted above, the proposed total volume data point is equal to
the sum of all buy, sell, sell short, and sell short exempt trades. The
Exchange notes that the proposed total volume data point can be derived
from the SIP, as well through information made available through
reports on Cboe DataShop \34\ or other vendors.
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\34\ Supra note 4.
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Additionally, the proposed total volume data point is similar in
nature to that offered in the NYSE Daily Short Volume file and Nasdaq
Daily Short Sale file. The NYSE Daily Short Volume file provides a
daily summary report of short sale volume for every equity symbol
traded on NYSE, NYSE American LLC, NYSE Arca, Inc., NYSE National,
Inc., and NYSE Chicago, Inc. (collectively, the ``NYSE affiliated
exchanges'') during the day.\35\ NYSE describes total volume as ``the
total share volume of all order executions.'' \36\ Similarly, the
Nasdaq Daily Short Sale Volume file provides total volume, which is
described as the ``[a]ggregate reported share volume of executed short
sale trades during regular trading hours.'' \37\ As noted above, the
proposed Short Volume Report will include total volume comprised of the
total share volume of all buy, sell long, sell short, and sell short
exempt order executions, and is equal to the sum of buy volume, sell
long volume, sell short volume, and sell short exempt volume.
Therefore, the proposed total volume represents both the buy-side and
sell-side of each execution. In contrast, the NYSE and Nasdaq products
represent total volume as one side of the execution (e.g., the buy-side
of each execution or the total share volume of the executions). Thus,
information similar to the Exchange's total volume could be determined
by simply doubling the total volume identified in the NYSE Daily Short
Volume file or the Nasdaq Short Sale Volume file. Given this, the
proposed total volume is a data point already available to the public,
and raises no novel issues. Furthermore, the Exchange believes that
providing the sum of buy volume, sell long volume, sell short volume,
and sell short exempt volume as proposed will serve as an integrity
check for each of the volume fields. Specifically, if total volume does
not equal the sum of the aforementioned volume fields, subscribers
could easily identify a potential error in the data. Therefore, the
Exchange believes the data point as proposed may provide greater
benefits to subscribers than similar data points offered in competing
products.
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\35\ See the NYSE Daily Short Volume Client Specification,
Section 1, Introduction at https://www.nyse.com/publicdocs/nyse/data/_Short_Volume_Client__v1.3.pdf.
\36\ Id.
\37\ Supra note 27.
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Buy Volume
The proposed buy volume data point is the total share volume of all
buy order executions and is equal to the sum of sell long volume, sell
short volume, and sell short exempt volume. Exchange buy volume is
publicly available via the SIP, as well as through reports on Cboe
DataShop \38\ and other vendors.
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\38\ Supra note 4. Buy volume available on Cboe DataShop is
equivalent to the proposed buy volume.
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Additionally, the NYSE Daily Short Sale file and Nasdaq Daily Short
Volume file currently provides similar information. As described above,
the Nasdaq and NYSE products each provide ``total volume'' which is
equivalent to the buy volume as proposed in the Short Volume Report.
The only difference between the proposal and the NYSE and Nasdaq data
points is that the proposed Short Volume Report includes only
information related to trades executed on the Exchange, whereas the
NYSE and Nasdaq includes only information related to trades executed on
NYSE and Nasdaq, respectively, and their affiliates. Therefore, buy
volume is a data point already provided for in other exchange products,
and as such, the buy volume proposed by the Exchange presents no unique
issues.
Buy Trade Count
Trade count information for trades executed on the Exchange is
currently publicly available via the SIP, as well as through reports on
Cboe DataShop \39\ and other vendors. Specifically, the Equity, ETF,
and Index Trades product offered on Cboe DataShop provides trade price,
trade size, trade condition, trading venue, and the National Best Bid
and Offer (``NBBO'') for each trade record on a daily basis. Therefore,
buy trade count for trades executed on the Exchange can be derived from
the Equity, ETF, and Index Trades product by summing the number of
trade records on BYX [sic] for the day. Accordingly, buy trade count is
a data point already available to the public and thus present no new
novel issues.
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\39\ Supra note 4. For purposes of this proposal, the trade size
data point from Cboe DataShop is the same as the proposed buy volume
data point.
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Sell Long Volume
As proposed, sell long volume represents the total share volume of
all sell long order executions. The Exchange notes that other
exchanges, such as NYSE, offer products with related data points that
users can utilize to calculate sell long volume as contemplated by the
proposed Short Volume Report. Specifically, the NYSE Daily Short Volume
File provides the total volume (i.e., the total share volume of all
order executions) and the short volume (i.e., the total share volume of
all short order executions, which is the sum of all sell short, sell
short exempt, and sell short with slide order executions).\40\
Therefore, sell long information could be derived from the NYSE Daily
Short Volume file by subtracting the short volume from the total
volume. As such, sell long volume is not a data point unique only to
the proposed Short Volume Report, and does not raise any novel issues
or concerns.
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\40\ Supra note 27.
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Sell Long Trade Count
As proposed, sell long trade count represents the total trade count
of all sell long order executions. Currently, this data can be derived
using publicly available information available in the Short Sale Daily
Reports which are available on the Cboe website,\41\ and the Equity,
ETF, and Index Trades product available on Cboe DataShop.\42\
Specifically, the Short Sale Daily Transaction report on the Cboe
website reflects short sale executions on the Exchange as they appeared
on the consolidated tape. Short sale and short sale exempt trade count
information can be determined summing the total number of transactions
identified in the Short Sale Daily Transaction report. Long sale trade
count could then be determined by subtracting the short sale
transaction count from the buy trade count, which can be obtained from
Cboe DataShop \43\ as described above. Because sell long trade count
can be calculated from existing publicly available information it
presents no novel issues.
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\41\ Supra note 5.
\42\ Supra note 4.
\43\ Id.
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Sell Short Volume and Sell Short Exempt Volume
The sell short volume and sell short exempt volume in the proposed
Short Volume Report is similar to a data point currently offered
through NYSE's Daily Short Volume file. Specifically, the NYSE Daily
Short Volume file includes both short volume and sell short exempt
[[Page 25323]]
volume for shares executed on NYSE and its affiliates.\44\ Accordingly,
the provision of separate sell short volume and sell short exempt
volume is not without precedent. The only difference in the data from
the NYSE Daily Short Volume file and the proposed data is that the NYSE
report includes only information related to trades executed on the NYSE
affiliated exchanges, whereas the Short Volume Report includes only
information related to trades executed on the Exchange.
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\44\ Supra note 27.
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Sell Short Trade Count and Sell Short Exempt Trade Count
As noted above, the Short Volume Report will include both a sell
short trade count and a sell short exempt trade count. The sell short
trade count is equal to the total trade count of sell short order
executions. The short sell exempt trade count is equal to the total
trade count of sell short exempt orders.
Today, sell short and sell short exempt trade counts are not
available or easily derivable in existing market data products or
publicly available information. However, the Short Sale Daily
Transaction report available on the Cboe website \45\ provides a short
sale trade count consisting of combined sell short and sell short
exemptions. The Exchange believes that bifurcating sell short trade
counts and sell short exempt trade counts will benefit investors by
providing insight into the risk environment around a security subject
to the restrictions of Regulation SHO Rule 201.\46\ As a general
matter, when a security becomes subject to the short sale price
restrictions of Rule 201, it is because that security's price is
experiencing extreme downward price pressure. In adopting Rule 201, the
Commission believed it was appropriate to adopt a short sale-related
circuit breaker because, when triggered, it will prevent short selling,
including potentially manipulative or abusive short selling, from
driving down further the price of a security that has already
experienced a significant intra-day price decline. A sale order shall
be marked ``short exempt'' only if the provisions of Rule 201(c) or
201(d) are met.\47\ Rule 201(c), for example, generally allows a
broker-dealer to mark a sale ``short exempt'' if the broker-dealer
identifies the order as being at a price above the current national
best bid at the time of submission of the order to a trading center. In
part, the Commission believed that Rule 201 would effectively restrict
short sellers from participating as liquidity takers when Rule 201 is
in effect, and instead act as liquidity providers, adding depth to the
market, as short sale orders will be executed only when purchasers
arrive willing to buy at prices above the national best bid.\48\
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\45\ Supra note 5.
\46\ 17 CFR 242.201.
\47\ 17 CFR 242.200(g)(2).
\48\ Id. at 58.
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In this sense, by having the ability to ascertain specific short
exempt trade counts, subscribers may be better able to assess the
qualitative nature of sell side activity in a particular security. A
marked increase or decrease in short exempt trade count can perhaps
indicate whether investors are willing to pay a higher price for a
security, rather than seek buying opportunities at lower prices as the
stock continues to decline. Therefore, the Exchange believes the
proposal will provide greater benefits to subscribers compared to what
is currently available on the Cboe website, and does not represent a
significant departure from information that is currently available.
Furthermore, similar data points are derivable from the NYSE's
Monthly Short Sales file, which provides a record of every short sale
transaction for each security traded on the NYSE affiliated exchanges
during the month.\49\ Specifically, the NYSE Monthly Short Sale file
includes a ``short type'' indicator for each transaction that indicates
whether the short sale is short sale exempt or not short sale exempt
and also includes the size of each transaction.\50\ Therefore,
subscribers to the NYSE Monthly Short Sales file can determine the sell
short trade counts and sell short exempt trade counts by summing the
number of each transaction on a given day during the prior month.
Although the NYSE Monthly Short Sale file provides similar data points
to that proposed here, such information is available on a monthly basis
rather than a daily basis. Nonetheless, as proposed the sell short and
sell short exempt trade counts would be available to subscribers on an
end-of-day basis it is not designed to provide information for which
subscribers would make intraday trading decisions. Therefore, the
Exchange does not believe the proposed data points would provide
subscribers with an unfair advantage over other market participants.
The Exchange believes the proposal strikes an appropriate balance in
providing useful information to subscribers that is not a significant
departure from existing information, but does not provide subscribers
with sensitive information for which subscribers would make intraday
trading decisions.
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\49\ See the NYSE Monthly Short Sales Client Specification,
Section 1, Introduction, at https://www.nyse.com/publicdocs/nyse/data/Monthly_Short_Sales_Client_Spec_v1.3.pdf.
\50\ Id.
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In sum, except for short sale and short sale exempt trade counts,
each of the data points included in the proposed Short Volume Report
are currently either available or derivable from a product of a
competitor exchange or are publicly available. The Exchange seeks to
gather information from each of these separate data points and compile
such information into a useful format such as the proposed Short Volume
Report. The Exchange believes that the proposed product will benefit
market participants because consolidating the aforementioned data
points in a single data product will allow market participants to more
easily understand the changing risk environment on a daily basis and
allow for more informed trading decisions. The information included in
the proposed Short Volume Report will be provided on an end-of-day
basis and will not provide information on an intraday basis.
Nonetheless, subscribers will have access to not only the current end-
of-day Short Volume Report, but historical end-of-day reports dating
back to January 2, 2015. As such, the Exchange believes the proposal
will provide subscribers with valuable information that may help in
identifying historical price trends and short sale activity in a
specific security. The proposal provides trade volume and trade count
information but provides nothing to indicate who is responsible for
selling pressure in a given security. Further, the proposal only
provides information as it relates to transactions and provides no
order information. Given this, combined with the general availability
of the information comprising the Short Volume Report, the Exchange
does not believe that the proposed Short Volume Report provides users
or subscribers with sensitive trading information or an unfair
competitive advantage.
Finally, as noted above the proposed Short Sale Report is a
completely voluntary product, and participants are not required to
subscribe to the Short Volume Report. Moreover, the Short Volume Report
is available to all potential users, regardless of size. Therefore, the
Exchange believes the proposed rule change is reasonable, equitable and
not unfairly discriminatory.
The Exchange believes the proposal to change the name of Rule 13.8
to ``Data Products'' is reasonable because the proposed Short Volume
Report is not a book feed, and thus ``EDGA Book
[[Page 25324]]
Feeds'' does not accurately describe all of the paragraphs under Rule
13.8. The Exchange also believes the proposal to add the preamble to
Rule 13.8 is reasonable because it will eliminate potential investor
confusion as to which data products the Exchange charges a fee.
Furthermore, both of the aforementioned changes to Rule 13.8 are
identical to the text of BZX and BYX Rule 11.22.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Rather, the
Exchange believes that the proposal will promote competition by
permitting the Exchange to offer a data product that provides data
similar to that offered by other competitor equities exchanges or data
that is currently publicly available via the SIP, the Cboe website or
DataShop, or other vendors. Any differences in the proposed product to
similar products offered by competing exchanges are intended to better
understand the changing risk environment on a daily basis. The Exchange
is proposing to introduce the Short Volume Report in order to keep pace
with changes in the industry and evolving customer needs and believes
this proposed rule change would contribute to robust competition among
national securities exchanges. Further, the Exchange believes this
proposed rule change permits fair competition among national securities
exchanges.
The Short Volume Report will be available equally to all Members
and non-Members that choose to subscribe to such report. As stated, the
Short Volume Report is optional and Members and non-Members may choose
to subscribe, or not, based on their view of the additional benefits
and added value provided by utilizing the Short Volume Report. 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. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as modified by Amendment No. 1, is consistent with the Act.
Comments may be submitted by any of the following methods:
Electronic Comments
Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CboeEDGA-2021-025 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-2021-025. 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 (http://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-CboeEDGA-2021-025, and should be
submitted on or before May 19, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\51\
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\51\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-09048 Filed 4-27-22; 8:45 am]
BILLING CODE 8011-01-P