Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the Content of the NYSE Trades Digital Media Data Feed, 47474-47476 [2013-18754]
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47474
Federal Register / Vol. 78, No. 150 / Monday, August 5, 2013 / Notices
equitable principles of trade and protect
investors and the public interest.
The proposal sets forth an objective
process based on specific and objective
criteria and subject to specific and
objective procedures. In addition, the
Exchange has again weighed carefully
the need to assure that one market
participant is not permitted to receive a
windfall at the expense of another
market participant that made a
catastrophic error, against the need to
assure that market participants are not
simply being given an opportunity to
reconsider poor trading decisions.
Accordingly, the Exchange has
determined that introducing a
nullification procedure for catastrophic
errors is appropriate and consistent with
the Act.
Consistent with Section 6(b)(8),13 the
Exchange also believes that the proposal
does not impose a burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act, as described further
below.
mstockstill on DSK4VPTVN1PROD with NOTICES
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 not
necessary or appropriate in furtherance
of the purposes of the Act. Currently,
most options exchanges have similar,
although not identical, rules regarding
catastrophic errors. To the extent that
this proposal would result in BX’s rule
being different, market participants may
choose to route orders to BX, helping
BX compete against other options
exchanges for order flow based on its
customer service by having a process
more responsive to current market
needs. Of course, other options
exchanges may choose to adopt similar
rules. The proposal does not impose a
burden on intra-market competition not
necessary or appropriate in furtherance
of the purposes of the Act, because,
even though it treats different market
participants differently, the Obvious
Errors rule has always been structured
that way and adding the ability for
Public Customers to choose whether a
catastrophic error trade is nullified does
not materially alter the risks faced by
other market participants in managing
the consequences of obvious errors.
Overall, the proposal is intended to help
market participants better manage the
risk associated with potential erroneous
options trades and does not impose a
burden on competition.
13 15
U.S.C. 78f(b)(5).
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19:07 Aug 02, 2013
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
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)(ii) of the Act 14 and
subparagraph (f)(6) of Rule 19b–4
thereunder.15
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) 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:
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–BX–2013–042 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.
14 15
U.S.C. 78s(b)(3)(a)(ii).
15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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.
Frm 00204
Fmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–18750 Filed 8–2–13; 8:45 am]
Electronic Comments
PO 00000
All submissions should refer to File
Number SR–BX–2013–042. 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 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 Web site 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;
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–BX–
2013–042 and should be submitted on
or before August 26, 2013.
Sfmt 4703
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70066; File No. SR–NYSE–
2013–53]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Modifying the
Content of the NYSE Trades Digital
Media Data Feed
July 30, 2013.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\05AUN1.SGM
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Federal Register / Vol. 78, No. 150 / Monday, August 5, 2013 / Notices
notice is hereby given that on July 18,
2013, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to revise the
description of the NYSE Trades Digital
Media data feed. The text of the
proposed rule change is available on the
Exchange’s Web site at www.nyse.com,
at the principal office of the Exchange,
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
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 IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
mstockstill on DSK4VPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to revise the
description of the NYSE Trades Digital
Media data feed.
In 2009, the Securities and Exchange
Commission (‘‘Commission’’) approved
the NYSE Trades data feed and certain
fees for it.4 NYSE Trades is a NYSE-only
market data feed that allows a vendor to
redistribute on a real-time basis the
same last sale information that the
Exchange reports under the
Consolidated Tape Association (‘‘CTA’’)
Plan for inclusion in the CTA Plan’s
consolidated data streams and certain
other related data elements.
Specifically, NYSE Trades includes the
real-time last sale price, time, size, and
bid/ask quotations for each security
4 See Securities Exchange Act Release No. 59606
(Mar. 19, 2009), 74 FR 13293 (Mar. 26, 2009) (SR–
NYSE–2009–04).
VerDate Mar<15>2010
19:07 Aug 02, 2013
Jkt 229001
traded on the Exchange and a stock
summary message. The stock summary
message updates every minute and
includes NYSE’s opening price, high
price, low price, closing price, and
cumulative volume for the security.
In April 2013, the Exchange began
offering a new version of NYSE Trades
called ‘‘NYSE Trades Digital Media,’’
which was described as including the
real-time last sale price, time, size, and
stock summary message for each
security traded on the Exchange, but not
including access to the bid/ask
quotation included with the NYSE
Trades product.5 At that time, the
Exchange believed that it could
efficiently remove the bid/ask
information from the feed but has since
determined that the time and resources
required to do so would be significant
and not commensurate with the need for
the change. As such, the NYSE Trades
Digital Media product is offered with
the bid/ask component included, and as
such does not have different content
than the regular NYSE Trades data fee.
The only difference between the
products is the permitted distribution
channels. NYSE Trades Digital Media
permits market data vendors, television
broadcasters, Web site and mobile
device service providers, and others to
distribute the data product to their
customers for viewing via television,
Web site, and mobile devices. They are
not be [sic] permitted to provide NYSE
Trades Digital Media in a context in
which a trading or order routing
decision can be implemented unless
CTA data is available in an equivalent
manner, must label the products as
NYSE-only data, and must provide a
hyperlinked notice similar to the one
provided for CTA delayed data. These
restrictions do not apply to the NYSE
Trades product.
No other changes to the data
components, terms, or pricing of any
product are proposed.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 6 of the Act,
in general, and furthers the objectives of
Section 6(b)(5) 7 of the Act, in particular,
in that it is 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 facilitating transactions in securities,
to remove impediments to and perfect
5 See Securities Exchange Act Release No. 69272
(Apr. 2, 2013), 78 FR 20983 (Apr. 8, 2013) (SR–
NYSE–2013–23).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00205
Fmt 4703
Sfmt 4703
47475
the mechanism of a free and open
market and a national market system
and, in general, to protect investors and
the public interest, and it is not
designed to permit unfair
discrimination among customers,
brokers, or dealers.
The Exchange offers the NYSE Trades
Digital Media data product in
recognition of the demand for a more
seamless and easier-to-administer data
distribution model that takes into
account the expanded variety of media
and communication devices that
investors utilize today. As described
above, the Exchange has determined
that the expense of creating and
monitoring a new feed without the bidask element is not warranted. No other
aspect of the NYSE Trades or NYSE
Trades Digital Media offering is being
changed.
In adopting Regulation NMS, the
Commission granted self-regulatory
organizations 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 data products proposed
herein are precisely the sort of market
data products that the Commission
envisioned when it adopted Regulation
NMS. The Commission concluded that
Regulation NMS—by lessening
regulation of the market in proprietary
data—would itself further the Act’s
goals of facilitating efficiency and
competition:
[E]fficiency is promoted when brokerdealers 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.8
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.
The Exchange further notes that the
existence of alternatives to the
Exchange’s products, including realtime consolidated data, free delayed
consolidated data, and proprietary data
8 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005) (File
No. S7–10–04).
E:\FR\FM\05AUN1.SGM
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47476
Federal Register / Vol. 78, No. 150 / Monday, August 5, 2013 / Notices
from other sources, ensures that the
Exchange is not unreasonably
discriminatory because vendors and
subscribers can elect these alternatives.
In addition, the proposal would not
permit unfair discrimination because
the product will be available to all of the
Exchange’s vendors and customers on
an equivalent basis.
At any time within 60 days of the
filing of such 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.
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–
2013–53 and should be submitted on or
before August 26, 2013.
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. The market
for proprietary data products is
currently competitive and inherently
contestable because there is fierce
competition for the inputs necessary to
the creation of proprietary data.
Numerous exchanges compete with
each other for listings, trades, and
market data itself, providing virtually
limitless opportunities for entrepreneurs
who wish to produce and distribute
their own market data. This proprietary
data is produced by each individual
exchange, as well as other entities (such
as internalizing broker-dealers and
various forms of alternative trading
systems, including dark pools and
electronic communication networks), in
a vigorously competitive market. It is
common for market participants to
further and exploit this competition by
sending their order flow and transaction
reports to multiple markets, rather than
providing them all to a single market.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSE–2013–53 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on DSK4VPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not significantly affect the
protection of investors or the public
interest, does not impose any significant
burden on competition, and, by its
terms, does not 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 9 and Rule 19b–
4(f)(6) thereunder.10
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–2013–53. 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 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 Web site 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 such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
[FR Doc. 2013–18754 Filed 8–2–13; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–70070; File No. SR–BOX–
2013–037]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
BOX Rule 4170 (Options
Communications)
July 30, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’),1 and Rule 19b–4
thereunder,2 notice is hereby given that
on July 15, 2013, BOX Options
Exchange LLC (‘‘BOX’’ or the
‘‘Exchange’’) 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
substantially prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
BOX Rule 4170 (Options
Communications) to conform the rule to
changes recently made by the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) to its corresponding rule.3
The text of the proposed rule change is
available from the principal office of the
Exchange, at the Commission’s Public
Reference Room and also on the
11 17
9 15
U.S.C. 78s(b)(3)(A).
10 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 the Exchange’s intent
to file the proposed rule change, along with a brief
VerDate Mar<15>2010
19:07 Aug 02, 2013
Jkt 229001
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.
PO 00000
Frm 00206
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Exchange Act Release No. 68650 (Jan. 14,
2013), 78 FR 4182 (Jan. 18, 2013) (Notice of
Immediate Effectiveness of SR–FINRA–2013–001).
1 15
E:\FR\FM\05AUN1.SGM
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Agencies
[Federal Register Volume 78, Number 150 (Monday, August 5, 2013)]
[Notices]
[Pages 47474-47476]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-18754]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70066; File No. SR-NYSE-2013-53]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Modifying the Content of the NYSE Trades Digital Media Data Feed
July 30, 2013.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\
[[Page 47475]]
notice is hereby given that on July 18, 2013, New York Stock Exchange
LLC (``NYSE'' or the ``Exchange'') 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 self-regulatory organization. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to revise the description of the NYSE Trades
Digital Media data feed. The text of the proposed rule change is
available on the Exchange's Web site at www.nyse.com, at the principal
office of the Exchange, 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 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 IV 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
The Exchange proposes to revise the description of the NYSE Trades
Digital Media data feed.
In 2009, the Securities and Exchange Commission (``Commission'')
approved the NYSE Trades data feed and certain fees for it.\4\ NYSE
Trades is a NYSE-only market data feed that allows a vendor to
redistribute on a real-time basis the same last sale information that
the Exchange reports under the Consolidated Tape Association (``CTA'')
Plan for inclusion in the CTA Plan's consolidated data streams and
certain other related data elements. Specifically, NYSE Trades includes
the real-time last sale price, time, size, and bid/ask quotations for
each security traded on the Exchange and a stock summary message. The
stock summary message updates every minute and includes NYSE's opening
price, high price, low price, closing price, and cumulative volume for
the security.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 59606 (Mar. 19,
2009), 74 FR 13293 (Mar. 26, 2009) (SR-NYSE-2009-04).
---------------------------------------------------------------------------
In April 2013, the Exchange began offering a new version of NYSE
Trades called ``NYSE Trades Digital Media,'' which was described as
including the real-time last sale price, time, size, and stock summary
message for each security traded on the Exchange, but not including
access to the bid/ask quotation included with the NYSE Trades
product.\5\ At that time, the Exchange believed that it could
efficiently remove the bid/ask information from the feed but has since
determined that the time and resources required to do so would be
significant and not commensurate with the need for the change. As such,
the NYSE Trades Digital Media product is offered with the bid/ask
component included, and as such does not have different content than
the regular NYSE Trades data fee. The only difference between the
products is the permitted distribution channels. NYSE Trades Digital
Media permits market data vendors, television broadcasters, Web site
and mobile device service providers, and others to distribute the data
product to their customers for viewing via television, Web site, and
mobile devices. They are not be [sic] permitted to provide NYSE Trades
Digital Media in a context in which a trading or order routing decision
can be implemented unless CTA data is available in an equivalent
manner, must label the products as NYSE-only data, and must provide a
hyperlinked notice similar to the one provided for CTA delayed data.
These restrictions do not apply to the NYSE Trades product.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 69272 (Apr. 2,
2013), 78 FR 20983 (Apr. 8, 2013) (SR-NYSE-2013-23).
---------------------------------------------------------------------------
No other changes to the data components, terms, or pricing of any
product are proposed.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \6\ of the
Act, in general, and furthers the objectives of Section 6(b)(5) \7\ of
the Act, in particular, in that it is 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 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, and it is not designed to permit unfair discrimination
among customers, brokers, or dealers.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange offers the NYSE Trades Digital Media data product in
recognition of the demand for a more seamless and easier-to-administer
data distribution model that takes into account the expanded variety of
media and communication devices that investors utilize today. As
described above, the Exchange has determined that the expense of
creating and monitoring a new feed without the bid-ask element is not
warranted. No other aspect of the NYSE Trades or NYSE Trades Digital
Media offering is being changed.
In adopting Regulation NMS, the Commission granted self-regulatory
organizations 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 data products proposed herein are precisely the sort of market
data products that the Commission envisioned when it adopted Regulation
NMS. The Commission concluded that Regulation NMS--by lessening
regulation of 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.\8\
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (File No. S7-10-04).
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.
The Exchange further notes that the existence of alternatives to
the Exchange's products, including real-time consolidated data, free
delayed consolidated data, and proprietary data
[[Page 47476]]
from other sources, ensures that the Exchange is not unreasonably
discriminatory because vendors and subscribers can elect these
alternatives. In addition, the proposal would not permit unfair
discrimination because the product will be available to all of the
Exchange's vendors and customers on an equivalent basis.
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. The market for proprietary
data products is currently competitive and inherently contestable
because there is fierce competition for the inputs necessary to the
creation of proprietary data. Numerous exchanges compete with each
other for listings, trades, and market data itself, providing virtually
limitless opportunities for entrepreneurs who wish to produce and
distribute their own market data. This proprietary data is produced by
each individual exchange, as well as other entities (such as
internalizing broker-dealers and various forms of alternative trading
systems, including dark pools and electronic communication networks),
in a vigorously competitive market. It is common for market
participants to further and exploit this competition by sending their
order flow and transaction reports to multiple markets, rather than
providing them all to a single market.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, by its terms, does
not 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 \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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 the
Exchange's 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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At any time within 60 days of the filing of such 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.
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
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSE-2013-53 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-2013-53. 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 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 Web site 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 such 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-2013-53 and should be
submitted on or before August 26, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Kevin M. O'Neill,
Deputy Secretary.
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\11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2013-18754 Filed 8-2-13; 8:45 am]
BILLING CODE 8011-01-P