Notice2025-15739
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt a New Market Data Report
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Published
August 19, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 158 (Tuesday, August 19, 2025)</title>
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[Federal Register Volume 90, Number 158 (Tuesday, August 19, 2025)]
[Notices]
[Pages 40453-40456]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15739]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103707; File No. SR-CboeEDGA-2025-025]
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Adopt a New Market Data Report
August 14, 2025.
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 August 5, 2025, Cboe EDGA Exchange, Inc. (the ``Exchange'' or
``EDGA'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 13.8 (EDGA Book Feeds) to adopt
an additional report as part of the existing Cboe Timestamping Service
reports.
The text of the proposed rule change is available on the Exchange's
website (<a href="http://markets.cboe.com/us/equities/regulation/rule_filings/edga/">http://markets.cboe.com/us/equities/regulation/rule_filings/edga/</a>) and at the Exchange's Office of the Secretary.
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
[[Page 40454]]
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 amend Rule 13.8 (EDGA Book Feeds) to adopt
an additional report as part of the existing Cboe Timestamping Service
reports. The Cboe Timestamping Service reports provide timestamp
information for orders and cancels for market participants. More
specifically, the Cboe Timestamping Service reports provide various
timestamps relating to the message lifecycle throughout the exchange
system. The first report that is currently offered--the Missed
Liquidity Report--covers order messages and the second report--Cancels
Report \3\--covers cancel messages.
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\3\ In connection with the offering of this new report, the
Exchange proposes to modify the title of the current Cancels Report
to Missed Cancels Report in order to provide clarity between the
existing Cancels Report, and the new proposed All Cancels Report.
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The Exchange now proposes to introduce the All Cancel Report which
is intended to supplement the existing Missed Cancels Report \4\ by
offering a comprehensive view of cancel behavior and messaging
activity. In comparison to the existing Missed Cancels Report, the All
Cancels Report will include all cancel-related messages sent by the
subscriber, irrespective of whether the cancel attempt was successful
or associated with a trade event.
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\4\ Id.
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These reports are optional products that will be available to all
subscribers \5\ and subscribers may opt to choose multiple reports, one
report, or neither report. Corresponding fees will be assessed based on
the number of reports selected.\6\
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\5\ The Exchange notes that it is introducing a clarifying edit
to the existing rule to include Sponsored Participants in connection
with its recent filing (SR-CboeEDGA-2025-022), noting that a
Sponsored Participant may now directly subscribe and be charged the
corresponding fees accordingly (in contrast to the Member previously
subscribing and passing along such data to the Sponsored
Participant).
\6\ The Exchange plans to submit a separate filing with the
Commission pursuant to Section 19(b)(1) to propose fees for the All
Cancels Report.
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The Exchange notes that the data included in the proposed report
will be based only on the data of the market participant that opts to
subscribe to the report (``Recipient Firm'') and will not include
information related to any firm other than the Recipient Firm. The
Exchange will restrict all other market participants from receiving
another market participant's data. Additionally, the proposed report
does not include real-time market data. Rather, the proposed report
will contain historical data from the prior trading day and will be
available after the end of the trading day, generally on a T+1 basis.
Currently, the Exchange provides the Missed Liquidity and Missed
Cancel Reports and now proposes to introduce the All Cancels Report in
response to demand for additional data concerning the timeliness of all
cancel-related messages sent by the subscriber, irrespective of whether
the cancel attempt was successful or associated with a trade event. The
Exchange believes the additional data points outlined below may help
subscribing firms gain a better understanding about their interactions
with the Exchange. The Exchange believes these reports will provide
subscribing firms with an opportunity to learn more about better
opportunities to improve order cancel success. The proposed report will
also increase transparency and democratize information so that all
subscribing firms that subscribe to the report have access to the same
information on an equal basis.
The current Missed Cancels Report provides liquidity response time
details for orders that rest on the book where the subscribing firm
receiving the report attempted to cancel that resting order or any
other resting order within an Exchange-determined amount of time (not
to exceed 1 millisecond) after receipt of the order that executed
against the resting order and within an Exchange-determined amount of
time (not to exceed 100 microseconds) before receipt of the order that
executed against the resting order. For example, if a market
participant sends in a cancel message, but an order resting on the
Exchange order book was executed prior to the system processing the
cancel message, the Missed Cancels Report can assist the market
participant in determining by how much time that order missed being
canceled instead of executing.\7\
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\7\ For example, Participant A submits an order that is posted
to the Exchange's Book and Participant B at some point thereafter
submits a marketable order to execute against Participant A's
resting order. Within 500 microseconds of submission of Participant
B's order, Participant A sends a cancel message to cancel its
resting order. Because Participant B's order is processed at the
Matching Engine by the Exchange before Participant A's cancel
message, Participant B's order executes against Participant A's
resting order. The proposed Report would provide Participant A the
data points necessary for that firm to calculate by how much time
they missed canceling its resting order.
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In contrast, the proposed All Cancels Report provides a
comprehensive view of cancel behavior and messaging activity when the
subscriber is the originator of the cancel-related message.\8\ It is
particularly useful for analyzing cancel patterns across all market
scenarios, including those where no trade occurred. Cancel, cancel
rejected, or purge/mass cancel records for the subscriber are included,
regardless of their timing or relation to a trade.
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\8\ The report shall not include any trade records or aggressor
information.
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The All Cancels Report will include the following data elements for
cancels: (1) Message Type; \9\ (2) Date; (3) Firm ID; (4) Session Sub
ID; (5) Client Identifier; \10\ (6) Cboe Order ID; \11\ (7) Symbol; (8)
Exchange System Timestamps; \12\ (9) Matching Unit number; \13\ (10)
Queued; \14\ and (11) Port Type.\15\
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\9\ Represents if it was a cancel, mass cancel or purge, a
cancel rejected, or a quote update cancel.
\10\ The unique CIOrdID or MassCancelID assigned by the client.
\11\ The Cboe Order ID is a unique reference number assigned by
the Exchange.
\12\ Includes Network Discovery Time (which is a network
hardware switch timestamp taken at the network capture point); Order
Handler NIC Timestamp (which is a hardware timestamp that represents
when a BOE order handler server NIC observed the message); Order
Handler Received Timestamp (which is software timestamp that
represents when the FIX or BOE order handler has begun processing
the order after the socket read); Order Handler Send Timestamp
(which represents when the FIX or BOE order handler has finished
processing the order and begun sending to the matching engine);
Matching Engine NIC Timestamp (which is a hardware timestamp that
represents when the target matching engine server NIC observed the
message); and Matching Engine Transaction Timestamp (which is a
software timestamp that represents when the matching engine has
started processing an event).
\13\ Represents the matching unit number.
\14\ Flag to indicate whether a message was delayed due to
message in flight limits (i.e., a limit on the total number of
messages in flight between an order handler and a matching engine).
\15\ Refers to the port type used by the session to send the
applicable message.
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The All Cancels Report will enable subscribing market participants
to have a deeper analysis of order management behavior across all
market scenarios, even when no trade occurs. By highlighting all cancel
attempts (successful or not), the All Cancels Report helps firms
identify patterns, refine strategies to improve cancel efficiency, and
better manage risk and exposure.
The Exchange notes the data information contained within the
proposed All Cancels Report is similar to data fields that are included
in the existing Missed Cancels Report.\16\
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\16\ See e.g. Securities Exchange Act Release No. 100803 (August
22, 2024), 89 FR 68948 (August 28, 2024) (SR-CboeEDGA-2024-034)
adopting the Missed Cancels Report and Missed Liquidity Report.
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[[Page 40455]]
Implementation
The Exchange will announce via Exchange Notice the implementation
date of the proposed rule change. While the Exchange notes that it
proposes to introduce this report on August 25, 2025, this date may be
subject to change.
2. Statutory Basis
The Exchange believes that the proposed All Cancels Report is
consistent with Section 6(b) of the Act,\17\ in general, and furthers
the objectives of Section 6(b)(5) of the Act,\18\ in particular, in
that it is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and to protect investors and the public
interest, and that it is not designed to permit unfair discrimination
among customers, brokers, or dealers. 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 market data as requested by market participants and
Section 6(b)(8) of the Act, which requires that the rules of an
exchange not impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act.\19\ This
proposal is in keeping with those principles in that it promotes
increased transparency through the dissemination of the optional All
Cancels Report to those interested in paying to receive this report.
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\17\ 15 U.S.C. 78f.
\18\ 15 U.S.C. 78f(b)(5).
\19\ 15 U.S.C. 78f(b)(8).
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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 market data as
requested by potential purchasers. The proposed rule change would
benefit investors by facilitating their prompt access to the value-
added information that is included in the proposed report. The report
will allow subscribing firms to access information regarding their
trading activity that they may utilize to evaluate their own trading
behavior and order interactions. It also promotes just and equitable
principles of trade because it would provide latency information in a
systematized way and standardized format to any subscribing firm that
chooses to subscribe to the proposed report. As discussed, the proposed
report is also not real-time market data products, but rather provide
only historical trading data for the previous trading day, generally on
a T+1 basis. In addition, the data in the reports would be specific to
the Recipient Firm's messages.
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 consumers of such
data. It was believed that this authority would expand the amount of
data available to users and consumers of such data and also spur
innovation and competition for the provision of market data. The
Exchange believes that the proposed reports are the sort of market data
product that the Commission envisioned when it adopted Regulation NMS.
The Commission concluded that Regulation NMS--by deregulating the
market in proprietary data--would itself further the Act's goals of
facilitating efficiency and competition:
``[E]fficiency is promoted when broker-dealers who do not need the
data beyond the prices, sizes, market center identifications of the
NBBO and consolidated last sale information are not required to receive
(and pay for) such data. The Commission also believes that efficiency
is promoted when broker-dealers may choose to receive (and pay for)
additional market data based on their own internal analysis of the need
for such data.'' \20\
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\20\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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By removing ``unnecessary regulatory restrictions'' on the ability
of exchanges to sell their own data, Regulation NMS advanced the goals
of the Act and the principles reflected in its legislative history.
This proposed addition to the Cboe Timestamping Service (i.e., the All
Cancels Reports) provides investors with a new option for receiving
market data, which was a primary goal of the market data amendments
adopted by Regulation NMS.\21\
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\21\ See Regulation NMS Adopting Release, supra, at 37503.
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The proposed report is designed for subscribing firms that are
interested in gaining insight into latency in connection with their
respective cancel messages. The Exchange believes that providing this
optional data to interested market participants for a fee is consistent
with facilitating transactions in securities, removing impediments to
and perfecting the mechanism of a free and open market and a national
market system, and, in general, protecting investors and the public
interest because it provides additional information and insight to
subscribing market participants regarding their trading activity on the
Exchange. More specifically, the proposed report provides greater
visibility of cancel behavior and messaging activity--particularly for
analyzing cancel patterns across all market scenarios, including those
where no trade occurred.
As mentioned above, the previously adopted Missed Cancels Report
contains similar trading related data that has been reviewed and
approved by the Commission.\22\ Specifically, the data points within
the reports are identical, with the exception that the Missed Cancels
Report also contains the following data points as these are all only
applicable when there is a trade record: Execution ID, Trade Condition
and Aggressor Order Type.
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\22\ See supra note 18. [sic]
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The Exchange proposes to provide the reports on a voluntary basis
and no firm will be required to subscribe to this proposed report. The
Exchange notes that there is no rule or regulation that requires the
Exchange to produce, or that a firm elects to receive, this report. It
is entirely a business decision of each firm to subscribe to this
report. The Exchange proposes to offer the report as a convenience to
firm to provide them with additional information regarding trading
activity on the Exchange on a delayed basis after the close of regular
trading hours. A firm that chooses to subscribe to the reports may
discontinue receiving either report at any time if that firm determines
that the information contained in the All Cancels Report is no longer
useful.
In summary, the proposed report will help to protect a free and
open market by providing additional historical data (offered on an
optional basis) to the marketplace and by providing investors with
greater choices. Additionally, the proposal would not permit unfair
discrimination because the proposed reports will be available to all
market participants.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Rather, the Exchange
believes that the proposed All
[[Page 40456]]
Cancels Report will enhance competition by providing a new option for
receiving market data to market participants. The proposed Report will
also further enhance competition between exchanges by allowing the
Exchange to expand its existing product offerings, which may lead other
exchanges who currently offer similar products to do the same.\23\
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\23\ MIAX Emerald offers a Liquidity Taker Event Report,
analogous to the Exchange's Missed Liquidity Report under its Cboe
Timestamping Services. See MIAX Emerald Rule 531. Although not
clearly defined, the Exchange believes that MIAX Emerald's Liquidity
Taker Event Report also provides information relating to cancel
messages. Particularly, MIAX Emerald Liquidity Taker Event Report
provides, among other things, data relating to the ``type of each
response submitted by the Recipient Member.'' See MIAX Emerald Rule
5.31(a)(iii)(C). MIAX Emerald's technical specifications outline the
various types of available liquidity messages including, Simple Mass
Quote Cancel Request and Mass Liquidity Cancel Request. See MIAX
Express Interface for Quoting and Trading Options, MEI Interface
Specification, Section 4.1 (Liquidity Messages), available at:
<a href="https://www.miaxglobal.com/sites/default/files/job-files/MIAX_Express_Interface_MEI_v2.2a.pdf">https://www.miaxglobal.com/sites/default/files/job-files/MIAX_Express_Interface_MEI_v2.2a.pdf</a>. The Exchange also believes
that providing the same data points for cancel messages as the data
provided for orders messages is of no materials consequence as the
Missed Cancels Report serves a similar purpose as the Missed
Liquidity Report--providing Members additional information to better
understand the efficacy of their incoming orders and cancel
messages.
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Additionally, the Exchange believes the proposed rule change does
not impose any burden on intramarket competition that is not necessary
or appropriate in furtherance of the purposes of the Act. Market
participants are not required to purchase the proposed report, and the
Exchange is not required to make this report available to investors.
Rather, the Exchange is voluntarily making these reports available, as
requested by subscribing firms, and subscribing firms may choose to
receive (and pay for) this data based on their own business needs.
Potential purchasers may request the data at any time if they believe
it to be valuable or may decline to purchase such data.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \24\ and Rule 19b-4(f)(6) \25\ thereunder.
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; or (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 \26\ and Rule 19b-4(f)(6) \27\ thereunder.
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\24\ 15 U.S.C. 78s(b)(3)(A).
\25\ 17 CFR 240.19b-4(f)(6).
\26\ 15 U.S.C. 78s(b)(3)(A).
\27\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange 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) \28\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \29\ 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 asked
the Commission to waive the 30-day operative delay so that the Exchange
may introduce this new report by August 25, 2025. The Exchange states
that the proposed report does not present any substantive issues not
already considered by the Commission. The proposed report includes data
fields that are already included in the previously established Missed
Cancels Report. For these reasons, and because the proposed rule change
does not raise any new or novel regulatory issues, the Commission finds
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. Accordingly, the
Commission hereby waives the 30-day operative delay and designates the
proposed rule change as operative upon filing.\30\
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\28\ Id.
\29\ 17 CFR 240.19b-4(f)(6)(iii).
\30\ 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 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 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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#5022253c357d333f3d3d353e2423102335337e373f26"><span class="__cf_email__" data-cfemail="1260677e773f717d7f7f777c6661526177713c757d64">[email protected]</span></a>. Please include
file number SR-CboeEDGA-2025-025 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 number SR-CboeEDGA-2025-025. 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 (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to file number SR-CboeEDGA-2025-025 and should be
submitted on or before September 9, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
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\31\ 17 CFR 200.30-3(a)(12), (59).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2025-15739 Filed 8-18-25; 8:45 am]
BILLING CODE 8011-01-P
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