Notice2021-14389
Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Content of the Cboe One Feed Under Rule 11.22(i) To Identify the Current Day Consolidated High and Low Prices
Primary source
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Published
July 7, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 127 (Wednesday, July 7, 2021)</title>
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[Federal Register Volume 86, Number 127 (Wednesday, July 7, 2021)]
[Notices]
[Pages 35845-35847]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-14389]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92301; File No. SR-CboeBYX-2021-014]
Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Content of the Cboe One Feed Under Rule 11.22(i) To Identify the
Current Day Consolidated High and Low Prices
June 30, 2021.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on June 17, 2021, Cboe BYX Exchange, Inc. (the ``Exchange'' or
``BYX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe BYX Exchange, Inc. (``BYX'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (the ``Commission'') a
proposed rule change to amend the content of the Cboe One Feed under
Rule 11.22(i) to identify the current day consolidated high and low
prices. 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 (<a href="http://markets.cboe.com/us/equities/regulation/rule_filings/byx/">http://markets.cboe.com/us/equities/regulation/rule_filings/byx/</a>), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to enhance the content of the Cboe One Feed
under Rule 11.22(i) to identify the current day consolidated high and
low price for all listed equity securities.
The Cboe One Feed is a data feed that disseminates, on a real-time
basis, the aggregate best bid and offer (``BBO'') of all displayed
orders for securities traded on BYX and its affiliated exchanges.\5\
Among other things, the Cboe One Feed also includes consolidated volume
for all listed equity securities regardless of where the transaction
was executed, the Cboe One Opening Price and the Cboe One Closing
Price,\6\ and the primary listing market's official opening and closing
price.
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\5\ BYX's affiliated exchanges are the Cboe BZX Exchange, Inc.
(``BZX''), Cboe EDGA Exchange, Inc. (``EDGA''), and Cboe EDGX
Exchange, Inc. (``EDGX'', and together with BZX, BYX, and EDGA, the
``Cboe Equity Exchanges''). See Securities Exchange Act Release No.
73918 (December 23, 2014), 79 FR 78920 (December 31, 2014) (File
Nos. SR-EDGX-2014-25; SR-EDGA-2014-25; SR-BATS-2014-055; SR-BYX-
2014-030) (Notice of Amendments No. 2 and Order Granting Accelerated
Approval to Proposed Rule Changes, as Modified by Amendments Nos. 1
and 2, to Establish a New Market Data Product called the Cboe
(formerly Bats) One Feed) (``Cboe One Approval Order'').
\6\ For securities listed on Cboe BZX Exchange, Inc. (``BZX''),
the Cboe One Opening Price shall be the BZX Official Opening Price
as defined in BZX Rule 11.23(a)(5) and the Cboe One Closing Price
shall be the BZX Official Closing Price as defined in BZX Rule
11.23(a)(3). For securities not listed on BZX, the Cboe One Opening
Price shall be the first last sale eligible trade that occurred on
the Exchange or any of its affiliates after 9:30 a.m. Eastern Time,
and the Cboe One Closing Price shall be the final last sale eligible
trade to occur on the Exchange or any of its affiliates prior to
4:00 p.m. Eastern Time. See Exchange Rule 11.22(i).
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Now, in addition to the information currently provided in the Cboe
One Feed, the Exchange is proposing to
[[Page 35846]]
include the current day consolidated high and low price for all listed
equity securities as obtained directly from the securities information
processors (``SIPs''). The consolidated high and low price for all
listed equity securities would be disseminated via the Cboe One Feed
after the Consolidated Tape Association (``CTA'') and Unlisted Trading
Privileges (``UTP'') Plan SIP delay period, which is currently 15
minutes.
Such information would provide Cboe One Feed users with a static
benchmark against which to compare price movements shown on Cboe One
using high and low prices in the consolidated market. The Exchange's
proposal is in response to requests by Members using the Cboe One Feed,
and also partly in response to recent changes by a competitor exchange
to their end of day messages.\7\
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\7\ See e.g., Securities Exchange Act No. 91241 (March 2, 2021)
86 FR 13427 (March 8, 2021) (SR-NASDAQ-2021-010) (amending the
content of the Nasdaq Last Sale (``NLS'') Plus to identify the high,
low and closing price published by the SIPs).
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The Exchange proposes that this change become operative on July 16,
2021. To ensure consistency across the Cboe Equity Exchanges, BZX,
EDGA, and EDGX will be filing companion proposals to reflect these
changes in their respective rulebooks. The Exchange is not proposing
any change to the Cboe One Feed fee as a result of this modification.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\8\ Specifically, the
Exchange believes the proposed rule changes are consistent with the
Section 6(b)(5) \9\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. The Exchange
also believes that the proposed rule changes are consistent with
Section 11(A) of the Act \10\ in that it supports (1) fair competition
among brokers and dealers, among exchange markets, and between exchange
markets and markets other than exchange markets and (2) the
availability to brokers, dealers, and investors of information with
respect to quotations for and transactions in securities. Furthermore,
the proposed rule changes are consistent with Rule 603 of Regulation
NMS,\11\ which provides that any national securities exchange that
distributes information with respect to quotations for or transactions
in an NMS stock do so on terms that are not unreasonably
discriminatory. In adopting Regulation NMS, the Commission granted
self-regulatory organizations and broker-dealers increased authority
and flexibility to offer new and unique market data products 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.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ 15 U.S.C. 78k-1.
\11\ See 17 CFR 242.603.
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The proposed change to Exchange Rule 11.22(i) is designed to
promote just and equitable principles of trade and remove impediments
to and perfect the mechanism of a free and open market and a national
market system by identifying the consolidated high and low price for
all listed equity securities as obtained directly from the SIPs. Such
information would provide Cboe One Feed users with a static benchmark
against which to compare price movements shown on the Cboe One Feed
using high and low prices in the consolidated market. Therefore, the
consolidated high and low price for listed equity securities would
provide meaningful information to investors. The Exchange also believes
this proposal is consistent with Section 6(b)(5) of the Act because it
protects investors and the public interest and promotes just and
equitable principles of trade by providing investors with new options
for receiving such information. As noted above, another exchange
currently provides consolidated high and low price information in their
competing market data products.\12\ Therefore, the Exchange believes
the proposed rule change removes impediments to and perfects the
mechanism of a free and open market and a national market system, and,
in general, protects investors and the public interest as it would
provide an additional avenue for investors to receive this information
from a competing product. The proposal would not permit unfair
discrimination because the consolidated high and low price will be
available to all of the Exchange's customers and market data vendors on
an equivalent basis. In addition, any customer that wishes to receive
this information via a different source will be able to do so.
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\12\ Supra note 7.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed change to Rule
11.22(i) 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 proposed rule change will enhance
competition because it would enable the Exchange to include the
consolidated high and low price as part of the Cboe One Feed, thereby
enabling it to better compete with similar market data products
currently offered by another exchange that includes such
information.\13\ The Exchange is not the exclusive distributor of the
consolidated high and low price for all listed equity securities, and a
vendor seeking to offer a similar product that includes this
information would be able to do so on the same terms as the Exchange.
Specifically, a competing vendor could receive the consolidated high
and low price from the SIPs and include that information as part of
their market data products to be disseminated to customers pursuant to
the same terms and policies as the Exchange.\14\
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\13\ Id.
\14\ See CTA Consolidated Volume Display Policy with FAQ at
<a href="https://www.ctaplan.com/publicdocs/ctaplan/notifications/trader-update/CTA%20Consolidated%20Volume%20Policy%20FAQ.pdf">https://www.ctaplan.com/publicdocs/ctaplan/notifications/trader-update/CTA%20Consolidated%20Volume%20Policy%20FAQ.pdf</a>.
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The Exchange believes the proposal will have no impact on
intramarket competition as the proposal is not targeted at, or expected
to be limited in its applicability to, any particular segment of market
participants and no segment of retail investors, the general investing
public, or any other market participant is expected to benefit more
than any other. Therefore, the Exchange believes the inclusion of the
consolidated high and low price in the Cboe One Feed would not impose
any burden on competition 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.
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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 \15\ and Rule 19b-
4(f)(6) thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 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) \17\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \18\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
proposed to implement this proposed rule change on July 16, 2021 and
has asked the Commission to waive the 30-day operative delay for this
filing. The Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest,
as it will provide an additional option for investors to receive
consolidated high and low price information, which the Exchange states
is meaningful information for investors, on the proposed implementation
date of July 16, 2021. Accordingly, the Commission hereby waives the
30-day operative delay and designates the proposed rule change as
operative upon filing.\19\
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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6)(iii).
\19\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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 the 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
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#5b292e373e76383436363e352f281b283e38753c342d"><span class="__cf_email__" data-cfemail="f785829b92da94989a9a92998384b7849294d9909881">[email protected]</span></a>. Please include
File No. SR-CboeBYX-2021-014 on the subject line.
Paper Comments
<bullet> 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 No. SR-CboeBYX-2021-014. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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 No. SR-CboeBYX-2021-014, and should be submitted
on or before July 28, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-14389 Filed 7-6-21; 8:45 am]
BILLING CODE 8011-01-P
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