Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Specifying in Exchange Rules the Exchange's Use of Certain Data Feeds for Order Handling and Execution, Order Routing, and Regulatory Compliance, 12221-12223 [2015-05163]

Download as PDF Federal Register / Vol. 80, No. 44 / Friday, March 6, 2015 / Notices and future committed capital to help ensure that it can continue to provide its clearing services if it suffers business losses as a result of a decline in revenues or otherwise. Given that OCC has been designated as a systemically important financial market utility, OCC’s ability to provide its clearing services if it suffers business losses contributes to reducing systemic risks and supporting the stability of the broader financial system. In so doing, OCC’s Capital Plan is consistent with the objectives of Section 805(b) of the Payment, Clearing and Settlement Supervision Act, 35 which are to promote robust risk management, promote safety and soundness, reduce systemic risks, and support the stability of the broader financial system. IV. Conclusion It is therefore noticed, pursuant to Section 806(e)(1)(I) of the Payment, Clearing and Settlement Supervision Act,36 that the Commission does not object to advance notice proposal (File No. SR–OCC–2014–813) and that OCC is authorized to implement the proposal as of the date of this notice or the date of an order by the Commission approving a proposed rule change that reflects rule changes that are consistent with this advance notice proposal (File No. SR– OCC–2015–02), whichever is later. By the Commission. Jill M. Peterson, Assistant Secretary. [FR Doc. 2015–05117 Filed 3–5–15; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–74409; File No. SR– NYSEARCA–2015–11] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Specifying in Exchange Rules the Exchange’s Use of Certain Data Feeds for Order Handling and Execution, Order Routing, and Regulatory Compliance mstockstill on DSK4VPTVN1PROD with NOTICES March 2, 2015. Pursuant to section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on February 24, 2015, NYSE Arca, Inc. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with 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. 1. Purpose On June 5, 2014, in a speech entitled ‘‘Enhancing Our Market Equity Structure,’’ Mary Jo White, Chair of the Securities and Exchange Commission (‘‘SEC’’ or the ‘‘Commission’’) requested the equity exchanges to file with the Commission the data feeds used for purposes of (1) order handling and execution (e.g., with pegged or midpoint orders); (2) order routing, and (3) regulatory compliance, if applicable.4 Subsequent to the Chair’s speech, the Division of Trading and Markets stated that it ‘‘believes there is a need for clarity regarding whether (1) the SIP data feeds, (2) proprietary data feeds, or (3) a combination thereof,’’ are used for 4 See Mary Jo White, Chair, Securities and Exchange Commission, Speech at the Sandler, O’Neill & Partners, L.P. Global Exchange and Brokerage Conference (June 5, 2014) (available at www.sec.gov/News/Speech/Detail/Speech/ 1370542004312#.U5HI-fmwJiw). 35 12 U.S.C. 5464(b). U.S.C. 5465(e)(1)(I). 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 36 12 18:59 Mar 05, 2015 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to specify in Exchange rules the Exchange’s use of certain data feeds for order handling and execution, order routing, and regulatory compliance. 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. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change SECURITIES AND EXCHANGE COMMISSION VerDate Sep<11>2014 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. Jkt 235001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 12221 these purposes and requested that proposed rule changes be filed that disclose such information.5 The stated goal of disclosing this information was to provide broker-dealers and investors with enhanced transparency to better assess the quality of an exchange’s execution and routing services. On July 18, 2014, in response to the above request, the Exchange filed a proposed rule change that clarified the Exchange’s use of certain data feeds for order handling and execution, order routing, and regulatory compliance.6 As noted in that filing, the data feeds available for the purposes of order handling and execution, order routing, and regulatory compliance at the Exchange include the exclusive securities information processor (‘‘SIP’’) data feeds 7 or proprietary data feeds from individual market centers (‘‘Direct Feed’’). SEC staff has requested that the Exchange file a supplemental proposed rule change to specify in Exchange rules which data feeds the Exchange uses for the above-described purposes. Accordingly, the Exchange is filing this proposed rule change. At the time of the July 2014 Data Feed Filing, the Exchange used only the SIP data feeds for BATS Y-Exchange, Inc., Chicago Stock Exchange, Inc., and NYSE MKT LLC and uses a combination of Direct Feeds and the SIP data feeds for the other exchanges trading NMS stocks, i.e., BATS Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc. NASDAQ OMX BX LLC, NASDAQ OMX PHLX LLC, NASDAQ Stock Market LLC and New York Stock Exchange LLC.8 These data feeds are used by the Exchange to: 5 See Letter from James Burns, Deputy Director, Division of Trading and Markets, Securities and Exchange Commission, to Jeffrey C. Sprecher, Chief Executive Officer, Intercontinental Exchange, Inc., dated June 20, 2014. 6 See Securities Exchange Act Release No. 72708 (July 29, 2014), 79 FR 45572 (Aug. 5, 2014) (SR– NYSEArca–2014–82) (‘‘July 2014 Data Feed Filing’’). 7 The SIP feeds are disseminated pursuant to effective joint-industry plans as required by Rule 603(b) of Regulation NMS. 17 CFR 242.603(b). The three joint-industry plans are: (1) The CTA Plan, which is operated by the Consolidated Tape Association and disseminates transaction information for securities with the primary listing market on exchanges other than NASDAQ Stock Market LLC (‘‘Nasdaq’’): (2) The CQ Plan, which disseminates consolidated quotation information for securities with their primary listing on exchanges other than Nasdaq; and (3) the Nasdaq UTP Plan, which disseminates consolidated transaction and quotation information for securities with their primary listing on Nasdaq. 8 The Exchange notes that because the FINRA Alternate Display Facility (‘‘ADF’’) does not currently display any quotations, the Exchange does not need any data feeds to provide it with ADF quotes. E:\FR\FM\06MRN1.SGM 06MRN1 12222 Federal Register / Vol. 80, No. 44 / Friday, March 6, 2015 / Notices • Determine protected quotations on markets other than the Exchange for purposes of compliance with Rule 611 and Rule 610(d), including identifying where to route ISOs, to calculate the protected best bid or offer (‘‘PBBO’’) or national best bid or offer (‘‘NBBO’’) for purposes of order types that are priced based on the PBBO or NBBO; 9 • Route interest pursuant to NYSE Arca Equities Rule 7.37(d)(2); 10 and • Determine the national best bid (‘‘NBB’’) for purposes of complying with Rule 201 of Regulation SHO and NYSE Arca Equities Rule 7.16(f).11 The Exchange notes that when it routes interest to a protected quotation, the Exchange adjusts the PBBO. In addition, when calculating the PBBO or NBBO, the Exchange aggregates odd-lot interest available on Direct Feeds at a single price level into round lot quotations. The Exchange proposes to add new Commentary .01 to NYSE Arca Equities Rule 7.37, which would state the following: (a) The Exchange uses the following data feeds for the handing, execution, and routing of orders, as well as for regulatory compliance: Market center Primary source BATS Exchange, Inc. .............................................................. BATS Y-Exchange, Inc. .......................................................... Chicago Stock Exchange, Inc. ................................................ EDGA Exchange, Inc. ............................................................. EDGX Exchange, Inc. ............................................................. NASDAQ OMX BX LLC .......................................................... NASDAQ OMX PHLX LLC ..................................................... NASDAQ Stock Market LLC ................................................... New York Stock Exchange LLC ............................................. NYSE MKT LLC ...................................................................... Direct Feed ............................................ Direct Feed ............................................ SIP Data Feed ....................................... Direct Feed ............................................ Direct Feed ............................................ Direct Feed ............................................ Direct Feed ............................................ Direct Feed ............................................ Direct Feed ............................................ Direct Feed ............................................ As noted above, at the time of the July 2014 Data Feed Filing, the Exchange was using the SIP Data Feed for BATS Y-Exchange, Inc. and NYSE MKT LLC. The Exchange has since changed its data sources for those markets, and as reflected above, now uses the Direct Feed as the primary source for those markets. The Exchange further proposes to specify in new Commentary .02 to Rule 7.37 that the Exchange receives data feeds directly from broker dealers for purposes of routing interest pursuant to NYSE Arca Equities Rule 7.37(d)(2). 2. Statutory Basis mstockstill on DSK4VPTVN1PROD with NOTICES The proposed rule change is consistent with section 6(b) of the Securities Exchange Act of 1934 (the ‘‘Act’’),12 in general, and furthers the objectives of section 6(b)(5),13 in particular, because 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 9 The NBBO is defined as the best bid and best offer of an NMS security. 17 CFR 242.600(b)(3). The Exchange notes that the NBBO may differ from the PBBO because the NBBO includes Manual Quotations, which are defined as any quotation other than an automated quotation. 17 CFR 242.600(b)(37). By contrast, a protected quotation is an automated quotation that is the best bid or offer of a national securities exchange. 17 CFR 242.60)(b)(57)(iii). 10 NYSE Arca Equities Rule 7.37(d)(2) specifies that if an order has not been executed on the VerDate Sep<11>2014 18:59 Mar 05, 2015 Jkt 235001 general, to protect investors and the public interest. The Exchange believes that the proposed rule change removes impediments to and perfects the mechanism of a free and open market because it provides enhanced transparency to better assess the quality of an exchange’s execution and routing services. 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 proposed change is not designed to address any competitive issue but rather would provide the public and investors with information about which data feeds the Exchange uses for execution and routing decisions. 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. Exchange and is not designated as a PNP Order, IOC, MPL Order, or Intermarket Sweep Order, it will be routed for execution. 11 NYSE Arca Equities Rule 7.16(f) requires that Exchange systems not execute or display a short sale order with respect to a covered security at a price that is less than or equal to the current NBB if the price of that security decreases by 10% or more, as determined by the Exchange, from the security’s closing price on the Exchange at the end of regular trading hours on the prior day. 12 15 U.S.C. 78f(b). PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 Secondary source SIP Data SIP Data n/a. SIP Data SIP Data SIP Data SIP Data SIP Data SIP Data SIP Data Feed. Feed. Feed. Feed. Feed. Feed. Feed. Feed. Feed. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the 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, the proposed rule change has become effective pursuant to section 19(b)(3)(A) of the Act 14 and Rule 19b–4(f)(6) thereunder.15 A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Act 16 normally does not become operative for 30 days after the date of its filing. However, Rule 19b–4(f)(6)(iii) 17 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 proposal may become operative immediately upon filing. The Exchange stated that waiver of the operative delay will permit the Exchange to immediately provide the enhanced transparency in Exchange rules. The Commission believes the 13 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(3)(A). 15 17 CFR 240.19b–4(f)(6). As required under Rule 19b–4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the 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. 16 17 CFR 240.19b–4(f)(6). 17 17 CFR 240.19b–4(f)(6)(iii). 14 15 E:\FR\FM\06MRN1.SGM 06MRN1 Federal Register / Vol. 80, No. 44 / Friday, March 6, 2015 / Notices waiver of the operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.18 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: mstockstill on DSK4VPTVN1PROD with NOTICES 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– NYSEARCA–2015–11 on the subject line. Paper Comments • 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–NYSEARCA–2015–11. 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 18 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 15 U.S.C. 78c(f). VerDate Sep<11>2014 18:59 Mar 05, 2015 Jkt 235001 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– NYSEARCA–2015–11 and should be submitted on or before March 27, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19 Brent J. Fields, Secretary. [FR Doc. 2015–05163 Filed 3–5–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 20549–2736. Extension: Form N–4; SEC File No. 270–282, OMB Control No. 3235–0318. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (the ‘‘Commission’’) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval. The collection of information is entitled: ‘‘Form N–4 (17 CFR 239.17b) under the Securities Act of 1933 and (17 CFR 274.11c) under the Investment Company Act of 1940, registration statement of separate accounts organized as unit investment trust.’’ Form N–4 is the form used by insurance company separate accounts organized as unit investment trusts that offer variable annuity contracts to register as investment companies under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.) and/or to register 19 17 PO 00000 CFR 200.30–3(a)(12). Frm 00086 Fmt 4703 Sfmt 4703 12223 their securities under the Securities Act of 1933 (15 U.S.C. 77a et seq.). Section 5 of the Securities Act (15 U.S.C. 77e) requires the filing of a registration statement prior to the offer of securities to the public and that the registration statement be effective before any securities are sold, and Section 8 of the Investment Company Act (15 U.S.C. 80a–8) provides for the registration of investment companies. Pursuant to Form N–4, separate accounts organized as unit investment trusts that offer variable annuity contracts provide investors with a prospectus and a statement of additional information covering essential information about a separate account. Section 5(b) of the Securities Act requires that investors be provided with a prospectus containing the information required in a registration statement prior to or at the time of sale or delivery of securities. The purpose of Form N–4 is to meet the filing and disclosure requirements of the Securities Act and the Investment Company Act and to enable filers to provide investors with information necessary to evaluate an investment in a security. The information required to be filed with the Commission permits verification of compliance with securities law requirements and assures the public availability and dissemination of the information. The estimated annual number of filings on Form N–4 is 210 initial registration statements and 1,443 posteffective amendments. The estimated average number of portfolios per filing is one, both for initial registration statements and post-effective amendments on Form N–4. Accordingly, the estimated number of portfolios referenced in initial Form N– 4 filings annually is 210 and the estimated number of portfolios referenced in post-effective amendment filings on Form N–4 annually is 1,443. The estimate of the annual hour burden for Form N–4 is approximately 278.5 hours per initial registration statement and 197.25 hours per post-effective amendment, for a total of 343,116.75 hours ((210 initial registration statements x 278.5 hours) + (1,443 posteffective amendments × 197.25 hours)). The current estimated annual cost burden for preparing an initial Form N– 4 filing is $23,013 per portfolio and the current estimated annual cost burden for preparing a post-effective amendment filing on Form N–4 is $21,813 per portfolio. The Commission estimates that, on an annual basis, 210 portfolios will be referenced in initial Form N–4 filings and 1,443 portfolios will be referenced in post-effective amendment filings on Form N–4. Thus, E:\FR\FM\06MRN1.SGM 06MRN1

Agencies

[Federal Register Volume 80, Number 44 (Friday, March 6, 2015)]
[Notices]
[Pages 12221-12223]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-05163]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74409; File No. SR-NYSEARCA-2015-11]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Specifying in 
Exchange Rules the Exchange's Use of Certain Data Feeds for Order 
Handling and Execution, Order Routing, and Regulatory Compliance

 March 2, 2015.
    Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on February 24, 2015, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') 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 specify in Exchange rules the Exchange's 
use of certain data feeds for order handling and execution, order 
routing, and regulatory compliance. 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
    On June 5, 2014, in a speech entitled ``Enhancing Our Market Equity 
Structure,'' Mary Jo White, Chair of the Securities and Exchange 
Commission (``SEC'' or the ``Commission'') requested the equity 
exchanges to file with the Commission the data feeds used for purposes 
of (1) order handling and execution (e.g., with pegged or midpoint 
orders); (2) order routing, and (3) regulatory compliance, if 
applicable.\4\ Subsequent to the Chair's speech, the Division of 
Trading and Markets stated that it ``believes there is a need for 
clarity regarding whether (1) the SIP data feeds, (2) proprietary data 
feeds, or (3) a combination thereof,'' are used for these purposes and 
requested that proposed rule changes be filed that disclose such 
information.\5\ The stated goal of disclosing this information was to 
provide broker-dealers and investors with enhanced transparency to 
better assess the quality of an exchange's execution and routing 
services.
---------------------------------------------------------------------------

    \4\ See Mary Jo White, Chair, Securities and Exchange 
Commission, Speech at the Sandler, O'Neill & Partners, L.P. Global 
Exchange and Brokerage Conference (June 5, 2014) (available at 
www.sec.gov/News/Speech/Detail/Speech/1370542004312#.U5HI-fmwJiw).
    \5\ See Letter from James Burns, Deputy Director, Division of 
Trading and Markets, Securities and Exchange Commission, to Jeffrey 
C. Sprecher, Chief Executive Officer, Intercontinental Exchange, 
Inc., dated June 20, 2014.
---------------------------------------------------------------------------

    On July 18, 2014, in response to the above request, the Exchange 
filed a proposed rule change that clarified the Exchange's use of 
certain data feeds for order handling and execution, order routing, and 
regulatory compliance.\6\ As noted in that filing, the data feeds 
available for the purposes of order handling and execution, order 
routing, and regulatory compliance at the Exchange include the 
exclusive securities information processor (``SIP'') data feeds \7\ or 
proprietary data feeds from individual market centers (``Direct 
Feed'').
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 72708 (July 29, 
2014), 79 FR 45572 (Aug. 5, 2014) (SR-NYSEArca-2014-82) (``July 2014 
Data Feed Filing'').
    \7\ The SIP feeds are disseminated pursuant to effective joint-
industry plans as required by Rule 603(b) of Regulation NMS. 17 CFR 
242.603(b). The three joint-industry plans are: (1) The CTA Plan, 
which is operated by the Consolidated Tape Association and 
disseminates transaction information for securities with the primary 
listing market on exchanges other than NASDAQ Stock Market LLC 
(``Nasdaq''): (2) The CQ Plan, which disseminates consolidated 
quotation information for securities with their primary listing on 
exchanges other than Nasdaq; and (3) the Nasdaq UTP Plan, which 
disseminates consolidated transaction and quotation information for 
securities with their primary listing on Nasdaq.
---------------------------------------------------------------------------

    SEC staff has requested that the Exchange file a supplemental 
proposed rule change to specify in Exchange rules which data feeds the 
Exchange uses for the above-described purposes. Accordingly, the 
Exchange is filing this proposed rule change.
    At the time of the July 2014 Data Feed Filing, the Exchange used 
only the SIP data feeds for BATS Y-Exchange, Inc., Chicago Stock 
Exchange, Inc., and NYSE MKT LLC and uses a combination of Direct Feeds 
and the SIP data feeds for the other exchanges trading NMS stocks, 
i.e., BATS Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc. 
NASDAQ OMX BX LLC, NASDAQ OMX PHLX LLC, NASDAQ Stock Market LLC and New 
York Stock Exchange LLC.\8\ These data feeds are used by the Exchange 
to:
---------------------------------------------------------------------------

    \8\ The Exchange notes that because the FINRA Alternate Display 
Facility (``ADF'') does not currently display any quotations, the 
Exchange does not need any data feeds to provide it with ADF quotes.

---------------------------------------------------------------------------

[[Page 12222]]

     Determine protected quotations on markets other than the 
Exchange for purposes of compliance with Rule 611 and Rule 610(d), 
including identifying where to route ISOs, to calculate the protected 
best bid or offer (``PBBO'') or national best bid or offer (``NBBO'') 
for purposes of order types that are priced based on the PBBO or NBBO; 
\9\
---------------------------------------------------------------------------

    \9\ The NBBO is defined as the best bid and best offer of an NMS 
security. 17 CFR 242.600(b)(3). The Exchange notes that the NBBO may 
differ from the PBBO because the NBBO includes Manual Quotations, 
which are defined as any quotation other than an automated 
quotation. 17 CFR 242.600(b)(37). By contrast, a protected quotation 
is an automated quotation that is the best bid or offer of a 
national securities exchange. 17 CFR 242.60)(b)(57)(iii).
---------------------------------------------------------------------------

     Route interest pursuant to NYSE Arca Equities Rule 
7.37(d)(2); \10\ and
---------------------------------------------------------------------------

    \10\ NYSE Arca Equities Rule 7.37(d)(2) specifies that if an 
order has not been executed on the Exchange and is not designated as 
a PNP Order, IOC, MPL Order, or Intermarket Sweep Order, it will be 
routed for execution.
---------------------------------------------------------------------------

     Determine the national best bid (``NBB'') for purposes of 
complying with Rule 201 of Regulation SHO and NYSE Arca Equities Rule 
7.16(f).\11\
---------------------------------------------------------------------------

    \11\ NYSE Arca Equities Rule 7.16(f) requires that Exchange 
systems not execute or display a short sale order with respect to a 
covered security at a price that is less than or equal to the 
current NBB if the price of that security decreases by 10% or more, 
as determined by the Exchange, from the security's closing price on 
the Exchange at the end of regular trading hours on the prior day.
---------------------------------------------------------------------------

    The Exchange notes that when it routes interest to a protected 
quotation, the Exchange adjusts the PBBO. In addition, when calculating 
the PBBO or NBBO, the Exchange aggregates odd-lot interest available on 
Direct Feeds at a single price level into round lot quotations.
    The Exchange proposes to add new Commentary .01 to NYSE Arca 
Equities Rule 7.37, which would state the following:
    (a) The Exchange uses the following data feeds for the handing, 
execution, and routing of orders, as well as for regulatory compliance:

------------------------------------------------------------------------
          Market center             Primary source     Secondary source
------------------------------------------------------------------------
BATS Exchange, Inc..............  Direct Feed.......  SIP Data Feed.
BATS Y-Exchange, Inc............  Direct Feed.......  SIP Data Feed.
Chicago Stock Exchange, Inc.....  SIP Data Feed.....  n/a.
EDGA Exchange, Inc..............  Direct Feed.......  SIP Data Feed.
EDGX Exchange, Inc..............  Direct Feed.......  SIP Data Feed.
NASDAQ OMX BX LLC...............  Direct Feed.......  SIP Data Feed.
NASDAQ OMX PHLX LLC.............  Direct Feed.......  SIP Data Feed.
NASDAQ Stock Market LLC.........  Direct Feed.......  SIP Data Feed.
New York Stock Exchange LLC.....  Direct Feed.......  SIP Data Feed.
NYSE MKT LLC....................  Direct Feed.......  SIP Data Feed.
------------------------------------------------------------------------

    As noted above, at the time of the July 2014 Data Feed Filing, the 
Exchange was using the SIP Data Feed for BATS Y-Exchange, Inc. and NYSE 
MKT LLC. The Exchange has since changed its data sources for those 
markets, and as reflected above, now uses the Direct Feed as the 
primary source for those markets.
    The Exchange further proposes to specify in new Commentary .02 to 
Rule 7.37 that the Exchange receives data feeds directly from broker 
dealers for purposes of routing interest pursuant to NYSE Arca Equities 
Rule 7.37(d)(2).
 2. Statutory Basis
    The proposed rule change is consistent with section 6(b) of the 
Securities Exchange Act of 1934 (the ``Act''),\12\ in general, and 
furthers the objectives of section 6(b)(5),\13\ in particular, because 
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. The Exchange 
believes that the proposed rule change removes impediments to and 
perfects the mechanism of a free and open market because it provides 
enhanced transparency to better assess the quality of an exchange's 
execution and routing services.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 proposed change is not 
designed to address any competitive issue but rather would provide the 
public and investors with information about which data feeds the 
Exchange uses for execution and routing decisions.

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 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, the proposed rule change has become effective 
pursuant to section 19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6) 
thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \16\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \17\ 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 proposal may become operative immediately upon filing. The Exchange 
stated that waiver of the operative delay will permit the Exchange to 
immediately provide the enhanced transparency in Exchange rules. The 
Commission believes the

[[Page 12223]]

waiver of the operative delay is consistent with the protection of 
investors and the public interest. Therefore, the Commission hereby 
waives the operative delay and designates the proposal operative upon 
filing.\18\
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    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
    \18\ 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 15 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

     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-NYSEARCA-2015-11 on the subject line.

Paper Comments

     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-NYSEARCA-2015-11. 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-NYSEARCA-2015-11 and should 
be submitted on or before March 27, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-05163 Filed 3-5-15; 8:45 am]
 BILLING CODE 8011-01-P
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