Federal Register / Vol. 87, No. 82 / Thursday, April 28, 2022 / Notices 25313 

51 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 93696 

(December 1, 2021), 86 FR 69306. The comment 

letters received on the proposed rule change are 

available on the Commission’s website at: https:// 

www.sec.gov/comments/sr-cboeedgx-2021-049/ 

srcboeedgx2021049.htm. 

5 15 U.S.C. 78s(b)(2). 

6See Securities Exchange Act Release No. 94008, 

87 FR 4069 (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). 

8See Securities Exchange Act Release No. 94369, 

87 FR 14056 (March 11, 2022). 

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 rule-comments@

sec.gov. Please include File Number SR– 

CboeBYX–2021–028 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CboeBYX–2021–028. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (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–CboeBYX–2021–028 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

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–09043 Filed 4–27–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94783; File No. SR– 

CboeEDGX–2021–049] 

Self-Regulatory Organizations; Cboe 

EDGX 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 EDGX 

Exchange, Inc. (‘‘Exchange’’ or ‘‘EDGX’’) 

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 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 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

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 EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) is filing with 

the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change to adopt Exchange 

Rule 13.8(h) to introduce a new data 

product to be known as the Short 

Volume Report, modify the name of 

Rule 13.8 to ‘‘Data Products’’, and add 

a preamble to Rule 13.8. The text of the 

proposed rule change is provided in 

Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 


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9See Exchange Rule 1.5(n). 

10See Equity and ETF Trades Data | Subscription 

(cboe.com). 

11See Cboe EDGX U.S. Equities Exchange Short 

Sale Reports. 

12 Information provided in the report includes 

only trade data, and does not include order data. 

13Trade date refers to the date of trading activity. 

14Symbol refers to the Cboe formatted symbol in 

which the trading activity occurred. See https://

cdn.cboe.com/resources/membership/US_

Symbology_Reference.pdf. 

15Total 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. 

16Buy 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. 

17Buy 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. 

18Sell long volume is the total share volume of 

all sell long order executions. 

19Sell long trade count is the total trade count of 

all sell long order executions. 

20Sell short volume is the total share volume of 

all sell short order executions and will not include 

sell short exempt volume. 

21Sell short trade count is the total trade count 

of all sell short order executions and will not 

include short sale exempt trades. 

22Sell short exempt volume is the total share 

volume of all sell short exempt order executions. 

23Sell short exempt trade count is the total trade 

count of all sell short exempt order executions. 

24The 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 EDGX. As 

such, the volumes calculated on Nasdaq reports 

will differ from that in the proposed Short Volume 

Report. 

25The Exchange intends to submit a separate rule 

filing to adopt fees for the Short Volume Report 

product. 26See Exchange Rule 1.5(r). 27 15 U.S.C. 78f(b). 28 15 U.S.C. 78f(b)(5). 

options/regulation/rule_filings/edgx/), 

at the Exchange’s Office of the 

Secretary, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

This Amendment No. 1 to SR–EDGX– 

2021–049 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 

EDGX Members (‘‘Members’’) 9 and nonMembers. 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. 

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 

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. 

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. 

Based on the above proposal, the 

Exchange also proposes to amend the 

name of Rule 13.8 from ‘‘EDGX Book 

Feeds’’ to ‘‘Data Products’’. Such an 

amendment would accurately describe 

the Rule as the proposed product is not 

a book feed, but rather a data product. 

Further, the existing data feeds 

identified in Rule 13.8 are also data 

products. The Exchange also proposes 

to add the following preamble to Rule 

13.8: ‘‘The Exchange offers the 

following data products free of charge, 

unless otherwise noted in the 

Exchange’s fee schedule’’. The proposed 

language conforms to rule text provided 

in 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 


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29 Id. 

30Supra note 4. 

31Supra note 5. 

32See Nasdaq Pricing Schedule, Section 152(a). 

33See https://nasdaqtrader.com/content/ 

technicalsupport/specifications/dataproducts/ 

ShortSaleFileSpecifications.pdf. 

34Supra note 4. 

35See the NYSE Daily Short Volume Client 

Specification, Section 1, Introduction at https://

www.nyse.com/publicdocs/nyse/data/Daily_Short_

Volume_Client_Spec_v1.3.pdf. 

36 Id. 

37Supra note 27. 

38Supra note 4. Buy volume available on Cboe 

DataShop is equivalent to the proposed buy 

volume. 

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. 

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. 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 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. 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. 

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 

Short Volume files capture these data 

points. 

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. 

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. 

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. 

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 


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39Supra 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. 

40Supra note 27. 

41Supra note 5. 

42Supra note 4. 

43 Id. 

44Supra note 27. 

45Supra note 5. 

46 17 CFR 242.201. 47 17 CFR 242.200(g)(2). 48 Id. at 58. 49See the NYSE Monthly Short Sales Client 

Specification, Section 1, Introduction, at https://

www.nyse.com/publicdocs/nyse//Monthly_Short_

Sales_Spec_v1.3.pdf. 

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. 

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. 

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. 

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 

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. 

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

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 


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Federal Register / Vol. 87, No. 82 / Thursday, April 28, 2022 / Notices 25317 

50 Id. 

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. 

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-ofday basis and will not provide 

information on an intraday basis. 

Nonetheless, subscribers will have 

access to not only the current end-ofday 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 ‘‘EDGX Book 

Feeds’’ does not accurately describe all 

of the paragraphs under Rule 13.8. The 

Exchange also believes the proposal to 

add the preamble to Rule 13.8 is 

reasonable because it will eliminate 

potential investor confusion as to which 

data products the Exchange charges a 

fee. Furthermore, both of the 

aforementioned changes to Rule 13.8 are 

identical to the text of BZX and BYX 

Rule 11.22. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Rather, the 

Exchange believes that the proposal will 

promote competition by permitting the 

Exchange to offer 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 rule-comments@

sec.gov. Please include File Number SR– 

CboeEDGX–2021–049 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR-CboeEDGX–2021–049. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (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 


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25318 Federal Register / Vol. 87, No. 82 / Thursday, April 28, 2022 / Notices 

51 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Section I (Participant Fees), Section II 

(Regulatory Fees), and Section III (Technology 

Fees). 

4BOX is currently the only facility of the 

Exchange that is actively trading. The rules for the 

Exchange’s other proposed facility, BSTX LLC, were 

recently approved by the SEC (See Securities 

Exchange Act Release No. 94092 (January 27, 2022), 

87 FR 5881 (February 2, 2022). 

5See Section IV (Electronic Transaction Fees), 

Section V (Manual Transaction Fees), Section VI 

(Complex Order Transaction Fees), and Section VII 

(Eligible Orders Routed to an Away Exchange). 

6See Section VIII (Exchange Billing). 

7See proposed new preamble to Sections IV–VII 

of the Exchange Fee Schedule, and revised title for 

Section VIII. 

8Section VII covers fees for orders routed to an 

away exchange from BOX. Although these fees do 

not apply to transactions that occur directly on 

BOX, they nonetheless are directly related to 

options transactions. Therefore, the Exchange 

believes it is appropriate to group them with the 

other transactional based fees for BOX Options 

Market. 

9See Cboe Exchange, Inc. Fee Schedule. 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–CboeEDGX–2021–049, and 

should be submitted on or before May 

19, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.51

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–09049 Filed 4–27–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94780; File No. SR–BOX– 

2022–14] 

Self-Regulatory Organizations; BOX 

Exchange LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Reorganize Various 

Fees Within the Exchange Fee 

Schedule 

April 22, 2022. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on April 8, 

2022, BOX Exchange LLC (the 

‘‘Exchange’’) 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 self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to reorganize 

various fees within the Exchange Fee 

Schedule. The text of the proposed rule 

change is available from the principal 

office of the Exchange, at the 

Commission’s Public Reference Room 

and also on the Exchange’s internet 

website at http://boxoptions.com. 

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 

self-regulatory organization 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 self-regulatory organization 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 purpose of the proposed rule 

change is to reorganize various fees 

within the Exchange’s Fee Schedule. 

The reorganized Exchange Fee Schedule 

reflects the current fees, which remain 

unchanged. 

The Exchange is proposing to 

organize the Exchange Fee Schedule by 

grouping certain fees together. 

Specifically, the Exchange is proposing 

that the fees that are not related to 

trading activity on a facility of the 

Exchange would be grouped together in 

the first three sections of the Exchange 

Fee Schedule.3 The first three sections 

of fees are not transactional based fees 

applicable to a facility of the Exchange, 

BOX Options Market, an options trading 

facility of the Exchange under 3(a)(2) of 

the Exchange Act.4 Following that, 

Sections IV–VII of the Exchange Fee 

Schedule 5 will include fees that are 

specific to activity on the BOX Options 

Market (‘‘BOX’’). The last section, 

Section VIII,6 applies to billing 

generally, including aggregate billing 

and billing disputes. BSTX fees will be 

filed as a separate rule filing from this 

proposal. 

The Exchange believes that this 

proposed reorganization of the 

Exchange Fee Schedule provides a 

clearer structure. As part of the 

reorganization, the Exchange is adding a 

section header with a corresponding 

description,7 adding clarifying detail 

throughout the Exchange Fee Schedule, 

and making conforming changes 

throughout to reflect the renumbered 

sections. In addition, the Exchange is 

amending Section VIII by replacing 

‘‘BOX’’ with the ‘‘Exchange’’ where it 

references the Fee Schedule to add 

clarity to the section. Further, the 

Exchange is reordering the fees in the 

Regulatory Fee Section but not 

proposing to amend or alter any of the 

fees in the Regulatory Fee Section. The 

Exchange believes that these proposed 

changes make the Exchange Fee 

Schedule easier to read and provides 

clarity to the end-user on the fees of the 

Exchange. 

The Exchange is proposing to clarify 

that the fees outlined in Sections IV–VII 

are transactional based fees applicable 

to BOX Options Market.8 To clarify the 

nature of these fees and avoid any 

potential confusion, the Exchange is 

including a section header and 

description for Sections IV–VII that 

explains the fees are directly related to 

the BOX Options Market. The Exchange 

is also making conforming changes 

throughout the Fee Schedule to reflect 

these changes. The Exchange notes that 

these changes are purely clerical and do 

not amend any fee or rebate in the 

Exchange Fee Schedule. 

The Exchange is also proposing to 

move all the footnotes in the Exchange 

Fee Schedule to endnotes. The 

Exchange believes this change 

simplifies the Exchange Fee Schedule, 

makes it easier to read, and is similar to 

how other exchanges organize their fee 

schedules.9 Lastly, the Exchange is 

making non-substantive clean-up 

changes to add precision to the rulebook 


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