Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change as Modified by Amendment No. 1 Thereto To Extend the Pilot Period for the NYSE Realtime Reference Prices Pilot Program, 15536-15538 [E9-7587]
Download as PDF
15536
Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, on official business days between
the hours of 10 a.m. and 3 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;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2009–027 and should be
submitted on or before April 27, 2009.
pwalker on PROD1PC71 with NOTICES
IV. Commission’s Findings and Order
Granting Accelerated Approval of a
Proposed Rule Change
The Commission finds that the
proposed rule change, to extend the
pilot program for three months, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.7 In particular, it is
consistent with Section 6(b)(4) of the
Act,8 which requires that the rules of a
national securities exchange provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
members and issuers and other parties
using its facilities, and Section 6(b)(5) of
the Act,9 which requires, among other
things, that the rules of a national
securities exchange be designed 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, in general, to protect
investors and the public interest, and
not be designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Commission also finds that the
proposed rule change is consistent with
the provisions of Section 6(b)(8) of the
Act,10 which requires that the rules of
an exchange not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. Finally, the
Commission finds that the proposed
rule change is consistent with Rule
603(a) of Regulation NMS,11 adopted
under Section 11A(c)(1) of the Act,
which requires an exclusive processor
that distributes information with respect
7 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
8 15 U.S.C. 78f(b)(4).
9 15 U.S.C. 78f(b)(5).
10 15 U.S.C. 78f(b)(8).
11 17 CFR 242.603(a).
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19:48 Apr 03, 2009
Jkt 217001
to quotations for or transactions in an
NMS stock to do so on terms that are
fair and reasonable and that are not
unreasonably discriminatory.12
The Commission approved the fee for
the NASDAQ Last Sale Data Feeds for
a pilot period which runs until March
31, 2009.13 The Commission notes that
the Exchange proposes to extend the
pilot program for three months. The
Commission did not receive any
comments on the previous extensions of
the pilot program.14 In addition, the
Exchange proposes to reduce the fee cap
applicable to the NASDAQ Last Sale
Data Feeds from $100,000 per month for
NASDAQ Last Sale for NASDAQ and
$50,000 per month for NASDAQ Last
Sale for NYSE/Amex to $50,000 per
month total for both feeds.
On December 2, 2008, the
Commission issued an approval order
(‘‘Order’’) that sets forth a market-based
approach for analyzing proposals by
self-regulatory organizations to impose
fees for ‘‘non-core’’ market data
products, such as the NASDAQ Last
Sale Data Feeds.15 The Commission
believes that Nasdaq’s proposal to
temporarily extend the pilot program is
consistent with the Act for the reasons
noted in the Order.16 The Commission
believes that approving NASDAQ’s
proposal to temporarily extend the pilot
program that imposes a fee for the
NASDAQ Last Sale Data Feeds for an
additional three months and to reduce
the cap applicable to the NASDAQ Last
Sale Data Feeds will be beneficial to
investors and in the public interest, in
that it is intended to allow continued
broad public dissemination of increased
real-time pricing information. The
Commission notes that price
competition provided by other market
data products were considered by the
Exchange in determining to reduce the
fee cap for the NASDAQ Last Sale Data
Feeds. In addition, extending the pilot
program for an additional three months
will allow NASDAQ, consistent with its
12 NASDAQ is an exclusive processor of its last
sale data under Section 3(a)(22)(B) of the Act, 15
U.S.C. 78c(a)(22)(B), which defines an exclusive
processor as, among other things, an exchange that
distributes data on an exclusive basis on its own
behalf.
13 See Securities Exchange Act Release Nos.
57965 (June 16, 2008), 73 FR 35178 (June 20, 2008)
(SR–NASDAQ–2006–060); 58894 (October 31,
2008), 73 FR 66953 (November 12, 2008) (SR–
NASDAQ–2008–086); and 59186 (December 30,
2008), 74 FR 743 (January 7, 2009) (SR–NASDAQ–
2008–103).
14 Id.
15 See Securities Exchange Act Release No. 59039
(December 2, 2008), 73 FR 74770 (December 9,
2008) (Order Setting Aside Action by Delegated
Authority and Approving Proposed Rule Change
Relating to NYSE Arca Data).
16 See supra note 13.
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Frm 00108
Fmt 4703
Sfmt 4703
representation,17 to file within 30 days,
the public to comment on, and the
Commission to analyze consistent with
the Order and in light of Section 19(b)
of the Act, a proposal to permanently
approve the fee for NASDAQ Last Sale
Data Feeds.18
The Commission finds good cause for
approving the proposed rule change
before the thirtieth day after the date of
publication of notice of filing thereof in
the Federal Register. Accelerating
approval of this proposal is expected to
benefit investors by continuing to
facilitate their access to widespread,
free, real-time pricing information
contained in the NASDAQ Last Sale
Data Feeds. In addition, the Commission
notes that the proposal should benefit
vendors that make real-time pricing
information available by potentially
reducing their monthly fees. Therefore,
the Commission finds good cause,
consistent with Section 19(b)(2) of the
Act,19 to approve the proposed rule
change on an accelerated basis to extend
the operation of the pilot until June 30,
2009.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (SR–NASDAQ–
2009–027) is hereby approved on an
accelerated basis until June 30, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7586 Filed 4–3–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Release No. 34–59653; File No. SR–NYSE–
2009–34]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Order Granting Accelerated
Approval of Proposed Rule Change as
Modified by Amendment No. 1 Thereto
To Extend the Pilot Period for the
NYSE Realtime Reference Prices Pilot
Program
March 30, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
17 See
supra note 3.
Exchange has represented that it will file
a proposed rule change within thirty days of filing
of this proposal seeking permanent approval of the
NASDAQ Last Sale Data Feeds pilot program. See
supra note 3.
19 15 U.S.C. 78s(b)(2).
20 17 CFR 200.30–3(a)(12).
18 The
E:\FR\FM\06APN1.SGM
06APN1
Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices
15537
exchange have rules that provide for the
equitable allocation of reasonable dues,
fees and other charges among its
members and other persons using its
facilities and the requirements under
Section 6(b)(5) 11 that the rules of an
exchange be designed to promote just
and equitable principles of trade and
not to permit unfair discrimination
between customers, issuers, brokers or
dealers.
The Exchange believes that the pilot
program benefits investors by
facilitating their prompt access to
widespread, free, real-time pricing
information contained in the NYSE
Realtime Reference Prices service.
Extending the pilot program will extend
those benefits while the Exchange
assesses the service.
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 those statements may be examined at
the places specified in Item III below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
The Exchange intends for the NYSE
Realtime Reference Prices service to
accomplish three goals:
1. To provide a low-cost service that
will make real-time prices widely
available to millions of casual investors;
2. To provide vendors with a real-time
substitute for delayed prices; and
3. To relieve vendors of
administrative burdens.
This pilot program is similar to pilot
programs that the Nasdaq Stock Market,
Inc.4 and NYSE Arca, Inc 5 have
established.
The pilot program allows internet
service providers, traditional market
data vendors, and others to make
available NYSE Realtime Reference
Prices on a real-time basis.6 The NYSE
Realtime Reference Price information
includes last sale prices for all securities
that trade on the Exchange. It includes
only prices, and not the size of each
trade and not bid/asked quotations.
It features a flat, fixed monthly vendor
fee, no user-based fees, no vendor
reporting requirements, and no
professional or non-professional
subscriber agreements.
The Exchange established November
1, 2008 as the end date for the pilot
program. The Exchange then extended
that end date to December 31, 2008 7
and then extended it to March 31 2009.8
The Exchange now seeks to extend that
end date to June 30, 2009.9 Prior to the
end of the pilot period, the Exchange
will assess its experience with the
product and either will submit a
proposed rule change that seeks to
extend or modify the pilot program or
to make it permanent, or it will
announce publicly that it does not seek
to extend the pilot program beyond the
program’s termination date.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(4) 10 that an
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2009–34 on the
subject line.
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 20,
2009, the New York Stock Exchange
LLC (‘‘NYSE’’ or 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 Exchange. On
March 27, 2009, NYSE filed
Amendment No. 1 to the proposed rule
change. The Commission is publishing
this notice to solicit comments on the
proposed rule change from interested
persons, and is approving the proposal,
as modified by Amendment No. 1, on an
accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NYSE proposes to extend the
expiration date of its pilot program for
the NYSE Realtime Reference Prices
service until June 30, 2009. There is no
new rule text.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
pwalker on PROD1PC71 with NOTICES
1. Purpose
In File No. SR–NYSE–2007–04, the
Exchange established a pilot program
that allows the Exchange to test the
viability of a new NYSE-only market
data service that allows a vendor to
redistribute on a real-time basis last sale
prices of transactions that take place on
the Exchange (‘‘NYSE Realtime
Reference Prices’’) and to establish a flat
monthly fee for that service. The
Commission approved that pilot
program on June 16, 2008.3
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 57966
(June 16, 2008), 73 FR 35182 (June 20, 2008) (SR–
NYSE–2007–04).
2 17
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19:48 Apr 03, 2009
Jkt 217001
4 See Securities Exchange Act Release Nos. 57965
(June 16, 2008), 73 FR 35178 (June 20, 2008) (SR–
NASDAQ–2006–060); 57973 (June 16, 2008), 73 FR
35430 (June 23, 2008) (SR–NASDAQ–2008–050).
5 See Securities Exchange Act Release No. 58444
(August 29, 2008), 73 FR 51872 (September 5, 2008)
(SR–NYSEArca–2008–96).
6 The Exchange notes that it will make the NYSE
Realtime Reference Prices available to vendors no
earlier than it makes those prices available to the
processor under the CTA Plan.
7 See Securities Exchange Act Release No. 58893
(October 31, 2008), 73 FR 66093 (November 6, 2008)
(SR–NYSE–2008–113).
8 See Securities Exchange Act Release No. 59185
(December 30, 2008), 74 FR 749 (January 7, 2009)
(SR–NYSE–2008–141).
9 NYSE will file a proposed rule change within
thirty days of this Partial Amendment No. 1 seeking
to make the NYSE Realtime Reference Price service
a permanent service rather than a pilot program.
10 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
this proposed rule change will impose
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 has not received any
unsolicited written comments from
members or other interested parties.
III. 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:
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2009–34. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
11 15
E:\FR\FM\06APN1.SGM
U.S.C. 78f(b)(5).
06APN1
15538
Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://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 inspection and copying in
the Commission’s Public Reference
Room, on official business days between
the hours of 10 a.m. and 3 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;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–NYSE–
2009–34 and should be submitted on or
before April 27, 2009.
pwalker on PROD1PC71 with NOTICES
IV. Commission’s Findings and Order
Granting Accelerated Approval of a
Proposed Rule Change
The Commission finds that the
proposed rule change, to extend the
pilot program for three months, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.12 In particular, it is
consistent with Section 6(b)(4) of the
Act,13 which requires that the rules of
a national securities exchange provide
for the equitable allocation of reasonable
dues, fees, and other charges among its
members and issuers and other parties
using its facilities, and Section 6(b)(5) of
the Act,14 which requires, among other
things, that the rules of a national
securities exchange be designed 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, in general, to protect
investors and the public interest, and
not be designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Commission also finds that the
proposed rule change is consistent with
12 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
13 15 U.S.C. 78f(b)(4).
14 15 U.S.C. 78f(b)(5).
VerDate Nov<24>2008
19:48 Apr 03, 2009
Jkt 217001
the provisions of Section 6(b)(8) of the
Act,15 which requires that the rules of
an exchange not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. Finally, the
Commission finds that the proposed
rule change is consistent with Rule
603(a) of Regulation NMS,16 adopted
under Section 11A(c)(1) of the Act,
which requires an exclusive processor
that distributes information with respect
to quotations for or transactions in an
NMS stock to do so on terms that are
fair and reasonable and that are not
unreasonably discriminatory.17
The Commission approved the fee for
NYSE Realtime Reference Prices for a
pilot period which runs until March 31,
2009.18 The Commission notes that the
Exchange proposes to extend the pilot
program for three months. The
Exchange proposes no other changes to
the existing pilot program. In addition,
the Commission notes that it did not
receive any comments on the previous
extensions of the pilot program.19
On December 2, 2008, the
Commission issued an approval order
(‘‘Order’’) that sets forth a market-based
approach for analyzing proposals by
self-regulatory organizations to impose
fees for ‘‘non-core’’ market data
products, such as NYSE Realtime
Reference Prices.20 The Commission
believes that NYSE’s proposal to
temporarily extend the pilot program is
consistent with the Act for the reasons
noted in the Order.21 The Commission
believes that approving NYSE’s
proposal to temporarily extend the pilot
program that imposes a fee for NYSE
Realtime Reference Prices for an
additional three months will be
beneficial to investors and in the public
interest, in that it is intended to allow
continued broad public dissemination
of increased real-time pricing
information. In addition, extending the
pilot program for an additional three
months will allow the public to
15 15
U.S.C. 78f(b)(8).
CFR 242.603(a).
17 NYSE is an exclusive processor of its last sale
data under Section 3(a)(22)(B) of the Act, 15 U.S.C.
78c(a)(22)(B), which defines an exclusive processor
as, among other things, an exchange that distributes
data on an exclusive basis on its own behalf.
18 See supra notes 3, 7, and 8. NYSE reduced the
flat monthly fee for NYSE Realtime Reference Prices
from $100,000 per month to $70,000 per month. See
Securities Exchange Act Release No. 58443 (August
29, 2008), 73 FR 52436 (September 9, 2008) (SR–
NYSE–2008–79).
19 See supra notes 7 and 8.
20 See Securities Exchange Act Release No. 59039
(December 2, 2008), 73 FR 74770 (December 9,
2008) (Order Setting Aside Action by Delegated
Authority and Approving Proposed Rule Change
Relating to NYSE Arca Data).
21 See supra notes 3, 7, and 8.
16 17
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
comment on, and the Commission to
analyze consistent with the Order and
in light of Section 19(b) of the Act, a
proposal to permanently approve the fee
for NYSE Realtime Reference Prices.22
The Commission finds good cause for
approving the proposed rule change, as
modified by Amendment No. 1, before
the thirtieth day after the date of
publication of notice of filing thereof in
the Federal Register. Accelerating
approval of this proposal is expected to
benefit investors by continuing to
facilitate their access to widespread,
free, real-time pricing information
contained in NYSE Realtime Reference
Prices. Therefore, the Commission finds
good cause, consistent with Section
19(b)(2) of the Act,23 to approve the
proposed rule change, as modified by
Amendment No. 1, on an accelerated
basis to extend the operation of the pilot
until June 30, 2009.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (SR–NYSE–2009–
34), as modified by Amendment No. 1,
is hereby approved on an accelerated
basis until June 30, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7587 Filed 4–3–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59659; File No. SR–NYSE–
2009–36]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change by New York
Stock Exchange LLC Extending to
September 1, 2009, the Operative Date
of New York Stock Exchange Rule 2
Requirement That NYSE-Only Member
Organizations Apply for and be
Approved as a Member of the Financial
Industry Regulatory Authority, Inc.
March 31, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
22 The Exchange has represented that it will file
a proposed rule change within thirty days of filing
Amendment No. 1 to the proposal seeking to make
the NYSE Realtime Reference Price service a
permanent service rather than a pilot program. See
supra note 9.
23 15 U.S.C. 78s(b)(2).
24 17 CFR 200.30–3(a)(12).
E:\FR\FM\06APN1.SGM
06APN1
Agencies
[Federal Register Volume 74, Number 64 (Monday, April 6, 2009)]
[Notices]
[Pages 15536-15538]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7587]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Release No. 34-59653; File No. SR-NYSE-2009-34]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Order Granting Accelerated Approval of Proposed
Rule Change as Modified by Amendment No. 1 Thereto To Extend the Pilot
Period for the NYSE Realtime Reference Prices Pilot Program
March 30, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 15537]]
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 20, 2009, the New York Stock Exchange LLC (``NYSE'' or 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 Exchange. On March 27,
2009, NYSE filed Amendment No. 1 to the proposed rule change. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons, and is approving the
proposal, as modified by Amendment No. 1, on an accelerated basis.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE proposes to extend the expiration date of its pilot program
for the NYSE Realtime Reference Prices service until June 30, 2009.
There is no new rule text.
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 those statements may be examined at
the places specified in Item III below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
In File No. SR-NYSE-2007-04, the Exchange established a pilot
program that allows the Exchange to test the viability of a new NYSE-
only market data service that allows a vendor to redistribute on a
real-time basis last sale prices of transactions that take place on the
Exchange (``NYSE Realtime Reference Prices'') and to establish a flat
monthly fee for that service. The Commission approved that pilot
program on June 16, 2008.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 57966 (June 16,
2008), 73 FR 35182 (June 20, 2008) (SR-NYSE-2007-04).
---------------------------------------------------------------------------
The Exchange intends for the NYSE Realtime Reference Prices service
to accomplish three goals:
1. To provide a low-cost service that will make real-time prices
widely available to millions of casual investors;
2. To provide vendors with a real-time substitute for delayed
prices; and
3. To relieve vendors of administrative burdens.
This pilot program is similar to pilot programs that the Nasdaq
Stock Market, Inc.\4\ and NYSE Arca, Inc \5\ have established.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release Nos. 57965 (June 16,
2008), 73 FR 35178 (June 20, 2008) (SR-NASDAQ-2006-060); 57973 (June
16, 2008), 73 FR 35430 (June 23, 2008) (SR-NASDAQ-2008-050).
\5\ See Securities Exchange Act Release No. 58444 (August 29,
2008), 73 FR 51872 (September 5, 2008) (SR-NYSEArca-2008-96).
---------------------------------------------------------------------------
The pilot program allows internet service providers, traditional
market data vendors, and others to make available NYSE Realtime
Reference Prices on a real-time basis.\6\ The NYSE Realtime Reference
Price information includes last sale prices for all securities that
trade on the Exchange. It includes only prices, and not the size of
each trade and not bid/asked quotations.
---------------------------------------------------------------------------
\6\ The Exchange notes that it will make the NYSE Realtime
Reference Prices available to vendors no earlier than it makes those
prices available to the processor under the CTA Plan.
---------------------------------------------------------------------------
It features a flat, fixed monthly vendor fee, no user-based fees,
no vendor reporting requirements, and no professional or non-
professional subscriber agreements.
The Exchange established November 1, 2008 as the end date for the
pilot program. The Exchange then extended that end date to December 31,
2008 \7\ and then extended it to March 31 2009.\8\ The Exchange now
seeks to extend that end date to June 30, 2009.\9\ Prior to the end of
the pilot period, the Exchange will assess its experience with the
product and either will submit a proposed rule change that seeks to
extend or modify the pilot program or to make it permanent, or it will
announce publicly that it does not seek to extend the pilot program
beyond the program's termination date.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 58893 (October 31,
2008), 73 FR 66093 (November 6, 2008) (SR-NYSE-2008-113).
\8\ See Securities Exchange Act Release No. 59185 (December 30,
2008), 74 FR 749 (January 7, 2009) (SR-NYSE-2008-141).
\9\ NYSE will file a proposed rule change within thirty days of
this Partial Amendment No. 1 seeking to make the NYSE Realtime
Reference Price service a permanent service rather than a pilot
program.
---------------------------------------------------------------------------
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(4) \10\ that an exchange have rules that
provide for the equitable allocation of reasonable dues, fees and other
charges among its members and other persons using its facilities and
the requirements under Section 6(b)(5) \11\ that the rules of an
exchange be designed to promote just and equitable principles of trade
and not to permit unfair discrimination between customers, issuers,
brokers or dealers.
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\10\ 15 U.S.C. 78f(b)(4).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the pilot program benefits investors by
facilitating their prompt access to widespread, free, real-time pricing
information contained in the NYSE Realtime Reference Prices service.
Extending the pilot program will extend those benefits while the
Exchange assesses the service.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that this proposed rule change will
impose 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 has not received any unsolicited written comments from
members or other interested parties.
III. 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
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2009-34 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2009-34. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use
[[Page 15538]]
only one method. The Commission will post all comments on the
Commission's Internet Web site (https://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 inspection and copying in the
Commission's Public Reference Room, on official business days between
the hours of 10 a.m. and 3 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; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
NYSE-2009-34 and should be submitted on or before April 27, 2009.
IV. Commission's Findings and Order Granting Accelerated Approval of a
Proposed Rule Change
The Commission finds that the proposed rule change, to extend the
pilot program for three months, is consistent with the requirements of
the Act and the rules and regulations thereunder applicable to a
national securities exchange.\12\ In particular, it is consistent with
Section 6(b)(4) of the Act,\13\ which requires that the rules of a
national securities exchange provide for the equitable allocation of
reasonable dues, fees, and other charges among its members and issuers
and other parties using its facilities, and Section 6(b)(5) of the
Act,\14\ which requires, among other things, that the rules of a
national securities exchange be designed 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, in general,
to protect investors and the public interest, and not be designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers.
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\12\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\13\ 15 U.S.C. 78f(b)(4).
\14\ 15 U.S.C. 78f(b)(5).
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The Commission also finds that the proposed rule change is
consistent with the provisions of Section 6(b)(8) of the Act,\15\ which
requires that the rules of an exchange not impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of the Act. Finally, the Commission finds that the proposed rule change
is consistent with Rule 603(a) of Regulation NMS,\16\ adopted under
Section 11A(c)(1) of the Act, which requires an exclusive processor
that distributes information with respect to quotations for or
transactions in an NMS stock to do so on terms that are fair and
reasonable and that are not unreasonably discriminatory.\17\
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\15\ 15 U.S.C. 78f(b)(8).
\16\ 17 CFR 242.603(a).
\17\ NYSE is an exclusive processor of its last sale data under
Section 3(a)(22)(B) of the Act, 15 U.S.C. 78c(a)(22)(B), which
defines an exclusive processor as, among other things, an exchange
that distributes data on an exclusive basis on its own behalf.
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The Commission approved the fee for NYSE Realtime Reference Prices
for a pilot period which runs until March 31, 2009.\18\ The Commission
notes that the Exchange proposes to extend the pilot program for three
months. The Exchange proposes no other changes to the existing pilot
program. In addition, the Commission notes that it did not receive any
comments on the previous extensions of the pilot program.\19\
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\18\ See supra notes 3, 7, and 8. NYSE reduced the flat monthly
fee for NYSE Realtime Reference Prices from $100,000 per month to
$70,000 per month. See Securities Exchange Act Release No. 58443
(August 29, 2008), 73 FR 52436 (September 9, 2008) (SR-NYSE-2008-
79).
\19\ See supra notes 7 and 8.
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On December 2, 2008, the Commission issued an approval order
(``Order'') that sets forth a market-based approach for analyzing
proposals by self-regulatory organizations to impose fees for ``non-
core'' market data products, such as NYSE Realtime Reference
Prices.\20\ The Commission believes that NYSE's proposal to temporarily
extend the pilot program is consistent with the Act for the reasons
noted in the Order.\21\ The Commission believes that approving NYSE's
proposal to temporarily extend the pilot program that imposes a fee for
NYSE Realtime Reference Prices for an additional three months will be
beneficial to investors and in the public interest, in that it is
intended to allow continued broad public dissemination of increased
real-time pricing information. In addition, extending the pilot program
for an additional three months will allow the public to comment on, and
the Commission to analyze consistent with the Order and in light of
Section 19(b) of the Act, a proposal to permanently approve the fee for
NYSE Realtime Reference Prices.\22\
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\20\ See Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770 (December 9, 2008) (Order Setting Aside Action by
Delegated Authority and Approving Proposed Rule Change Relating to
NYSE Arca Data).
\21\ See supra notes 3, 7, and 8.
\22\ The Exchange has represented that it will file a proposed
rule change within thirty days of filing Amendment No. 1 to the
proposal seeking to make the NYSE Realtime Reference Price service a
permanent service rather than a pilot program. See supra note 9.
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The Commission finds good cause for approving the proposed rule
change, as modified by Amendment No. 1, before the thirtieth day after
the date of publication of notice of filing thereof in the Federal
Register. Accelerating approval of this proposal is expected to benefit
investors by continuing to facilitate their access to widespread, free,
real-time pricing information contained in NYSE Realtime Reference
Prices. Therefore, the Commission finds good cause, consistent with
Section 19(b)(2) of the Act,\23\ to approve the proposed rule change,
as modified by Amendment No. 1, on an accelerated basis to extend the
operation of the pilot until June 30, 2009.
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\23\ 15 U.S.C. 78s(b)(2).
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V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (SR-NYSE-2009-34), as modified by
Amendment No. 1, is hereby approved on an accelerated basis until June
30, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-7587 Filed 4-3-09; 8:45 am]
BILLING CODE 8010-01-P