Self-Regulatory Organizations; New York Stock Exchange LLC; 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, 12240-12242 [2015-05164]
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12240
Federal Register / Vol. 80, No. 44 / Friday, March 6, 2015 / Notices
underlying company. Specifically, rule
30e–2 requires that the report contain
all the applicable information and
financial statements or their equivalent,
required by rule 30e–1 under the
Investment Company Act (17 CFR
270.30e–1) to be included in reports of
the underlying fund for the same fiscal
period. Rule 30e–1 requires that the
underlying fund’s report contain, among
other things, the information that is
required to be included in such reports
by the fund’s registration statement form
under the Investment Company Act.
The purpose of this requirement is to
apprise current shareholders of the
operational and financial condition of
the UIT. Absent the requirement to
disclose all material information in
reports, investors would be unable to
obtain accurate information upon which
to base investment decisions and
consumer confidence in the securities
industry might be adversely affected.
Requiring the submission of these
reports to the Commission permits us to
verify compliance with securities law
requirements.
Rule 30e–2, however, permits, under
certain conditions, delivery of a single
shareholder report to investors who
share an address (‘‘householding’’).
Specifically, rule 30e–2 permits
householding of annual and semiannual reports by UITs to satisfy the
delivery requirements of rule 30e–2 if,
in addition to the other conditions set
forth in the rule, the UIT has obtained
from each applicable investor written or
implied consent to the householding of
shareholder reports at such address. The
rule requires UITs that wish to
household shareholder reports with
implied consent to send a notice to each
applicable investor stating that the
investors in the household will receive
one report in the future unless the
investors provide contrary instructions.
In addition, at least once a year, UITs
relying on the rule for householding
must explain to investors who have
provided written or implied consent
how they can revoke their consent. The
purpose of the notice and annual
explanation requirements associated
with the householding provisions of the
rule is to ensure that investors who wish
to receive individual copies of
shareholder reports are able to do so.
The Commission estimates that the
annual burden associated with rule 30e–
2 is 121 hours per respondent, including
an estimated 20 hours associated with
the notice requirement for householding
and an estimated 1 hour associated with
the explanation of the right to revoke
consent to householding. The
Commission estimates that there are
currently approximately 700 UITs.
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Therefore, the Commission estimates
that the total hour burden is
approximately 84,700 hours. In addition
to the burden hours, the Commission
estimates that the annual cost of
contracting for outside services
associated with rule 30e–2 is $20,000
per respondent, for a total annual cost
of approximately $14,000,000.
Estimates of average burden hours are
made solely for the purposes of the
Paperwork Reduction Act and are not
derived from a comprehensive or even
representative survey or study of the
costs of Commission rules and forms.
The collection of information under rule
30e–2 is mandatory. The information
provided under rule 30e–2 will not be
kept confidential. An agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a
currently valid OMB control number.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Remi
Pavlik-Simon, 100 F Street NE.,
Washington, DC 20549; or send an email
to: PRA_Mailbox@sec.gov.
Dated: March 2, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015–05219 Filed 3–5–15; 8:45 am]
BILLING CODE 8011–01–P
PO 00000
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74410; File No. SR–NYSE–
2015–09]
Self-Regulatory Organizations; New
York Stock Exchange LLC; 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, 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 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.
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 80, No. 44 / Friday, March 6, 2015 / Notices
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
As set forth in its July 2014 Data Feed
Filing, the Exchange uses only the SIP
data feeds to determine protected
quotations on markets other than the
Exchange 8 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’’) for purposes of order
types that are priced based on the
PBBO, and to determine the national
best bid (‘‘NBB’’) 9 for purposes of
compliance with Rule 201 of Regulation
SHO and Rule 440B.10 The Exchange
notes that when it routes interest to a
protected quotation, the Exchange
adjusts the PBBO.
The Exchange proposes to add new
Supplementary Material .01 to Rule 19,
which would state the following:
.01 The Exchange uses the following
data feeds for the handing, execution,
and routing of orders, as well as for
regulatory compliance:
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
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.
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 ........................................................................................
NYSE Arca Equities, Inc. .............................................................................................
The Exchange notes that it does not
trade any securities listed on the NYSE
MKT LLC.
SIP
SIP
SIP
SIP
SIP
SIP
SIP
SIP
SIP
Data
Data
Data
Data
Data
Data
Data
Data
Data
12241
Feed
Feed
Feed
Feed
Feed
Feed
Feed
Feed
Feed
..........................................
..........................................
..........................................
..........................................
..........................................
..........................................
..........................................
..........................................
..........................................
Secondary
source
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
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2. Statutory Basis
The proposed rule change is
consistent with section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),11 in general, and furthers the
objectives of section 6(b)(5),12 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.
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/1370542
004312#.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.
6 See Securities Exchange Act Release No. 72710
(July 29, 2014), 79 FR 45511 (Aug. 5, 2014) (SR–
NYSE–2014–38) (‘‘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.
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 Rule 440B(b) 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.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
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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
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Federal Register / Vol. 80, No. 44 / Friday, March 6, 2015 / Notices
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 13 and Rule 19b–4(f)(6)
thereunder.14
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 15 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 16
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
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.17
At any time within 60 days of the
filing of the proposed rule change, the
13 15
U.S.C. 78s(b)(3)(A).
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.
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
17 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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14 17
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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–
NYSE–2015–09 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–NYSE–2015–09. 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
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
available publicly. All submissions
should refer to File Number SR–NYSE–
2015–09 and should be submitted on or
before March 27, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Brent J. Fields,
Secretary.
[FR Doc. 2015–05164 Filed 3–5–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74402; File No. SR–BYX–
2015–12]
Self-Regulatory Organizations; BATS
Y-Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rule 11.22 To
Update the Names of Certain Market
Data Products
March 2, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on February
18, 2015, BATS Y-Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) 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. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. 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 filed a proposal to
amend Rule 11.22, Data Products, to
update the names of certain products to
align with recent changes made to the
names of the same products in the
Exchange’s fee schedule.
The text of the proposed rule change
is available at the Exchange’s Web site
at www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
1 15
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]]>Agencies
[Federal Register Volume 80, Number 44 (Friday, March 6, 2015)]
[Notices]
[Pages 12240-12242]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-05164]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74410; File No. SR-NYSE-2015-09]
Self-Regulatory Organizations; New York Stock Exchange LLC;
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, 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 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.
[[Page 12241]]
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\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 72710 (July 29,
2014), 79 FR 45511 (Aug. 5, 2014) (SR-NYSE-2014-38) (``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.
As set forth in its July 2014 Data Feed Filing, the Exchange uses
only the SIP data feeds to determine protected quotations on markets
other than the Exchange \8\ 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'') for purposes of
order types that are priced based on the PBBO, and to determine the
national best bid (``NBB'') \9\ for purposes of compliance with Rule
201 of Regulation SHO and Rule 440B.\10\ The Exchange notes that when
it routes interest to a protected quotation, the Exchange adjusts the
PBBO.
---------------------------------------------------------------------------
\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.
\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 Rule 440B(b) 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 proposes to add new Supplementary Material .01 to Rule
19, which would state the following:
.01 The Exchange uses the following data feeds for the handing,
execution, and routing of orders, as well as for regulatory compliance:
------------------------------------------------------------------------
Secondary
Market center Primary source source
------------------------------------------------------------------------
BATS Exchange, Inc................ SIP Data Feed....... n/a
BATS Y-Exchange, Inc.............. SIP Data Feed....... n/a
Chicago Stock Exchange, Inc....... SIP Data Feed....... n/a
EDGA Exchange, Inc................ SIP Data Feed....... n/a
EDGX Exchange, Inc................ SIP Data Feed....... n/a
NASDAQ OMX BX LLC................. SIP Data Feed....... n/a
NASDAQ OMX PHLX LLC............... SIP Data Feed....... n/a
NASDAQ Stock Market LLC........... SIP Data Feed....... n/a
NYSE Arca Equities, Inc........... SIP Data Feed....... n/a
------------------------------------------------------------------------
The Exchange notes that it does not trade any securities listed on
the NYSE MKT LLC.
2. Statutory Basis
The proposed rule change is consistent with section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\11\ in general, and
furthers the objectives of section 6(b)(5),\12\ 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.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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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
[[Page 12242]]
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 \13\ and Rule 19b-4(f)(6)
thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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 \15\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \16\ 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 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.\17\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ 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-NYSE-2015-09 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-NYSE-2015-09. 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-NYSE-2015-09 and should be
submitted on or before March 27, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-05164 Filed 3-5-15; 8:45 am]
BILLING CODE 8011-01-P
