Cboe Updates Short Sale Rules: Trading Data Gets a Clarity Boost
Published Date: 11/21/2025
Notice
Summary
Cboe BZX Exchange is updating its rules to make sure broker-dealers report if a stock sale order is a special kind of short sale used by market makers. This change matches a new national rule and helps keep trading data accurate and clear. The update is effective immediately and affects anyone who reports trades to the Consolidated Audit Trail, with no new fees involved.
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Market-Maker Short-Sale Reporting Flag
If you are a broker-dealer or other Industry Member who reports trades to the Consolidated Audit Trail (CAT), you must 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 (BFMM) exception under Rule 203(b)(2)(iii) of Regulation SHO. The rule was filed September 29, 2025 and is operative upon filing, applies equally to all Industry Members that trade equity securities, and the Exchange states it does not impose any new fees.
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Previous: 2025-20536 — Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 4.7 of the Exchange's CAT Compliance Rule
Cboe BYX 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 keep the market fair. This change matches new national rules and kicks in right away, affecting anyone who reports trades to the Consolidated Audit Trail. No extra costs are expected, but it helps keep trading transparent and smooth.
Next: 2025-20538 — Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7.22 of the Exchange's CAT Compliance Rule
Cboe Exchange is updating its rules to make sure brokers report if a stock sale is a special kind of short sale where market makers get an exception. This change helps keep trading data clear and follows new national rules. It’s effective right away, so brokers need to start reporting this info now, but it doesn’t cost them extra money.