BOX Exchange Tweaks Short Sale Rules for Instant Compliance
Published Date: 11/21/2025
Notice
Summary
BOX Exchange is updating its rules to make sure broker-dealers report if a stock sale order is a special kind of short sale that market makers use to follow the rules. This change helps keep trading data clear and accurate for everyone involved. The new rule is effective immediately, so broker-dealers need to start reporting this info right away, with no extra costs mentioned.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Broker-dealers must flag BFMM short sales
If you are an Industry Member (a broker-dealer that reports to the Consolidated Audit Trail), Rule 16030 now requires you to record and report whether the original receipt or origination of an order to sell an equity security is a short sale for which a market maker is claiming the bona fide market making exception in Rule 203(b)(2)(iii) of Regulation SHO. This change aligns the Exchange's CAT Compliance Rule with the CAT NMS Plan amendment.
Rule change became effective immediately
The Commission designated the BOX Exchange rule amendment to be operative upon filing, meaning the requirement to record and report the BFMM short-sale indicator became effective immediately after the filing (filed September 30, 2025). Broker-dealers with CAT reporting obligations should begin complying with the new reporting element without waiting a 30-day operative delay.
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