Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE BBO and NYSE Trades To Add a Late Fee In Connection With Failure To Submit the Non-Display Use Declaration, 26599-26601 [2015-11055]
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asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 89 / Friday, May 8, 2015 / Notices
the risks involved in trading the Shares
during the Opening and Late Trading
Sessions when an updated PIV will not
be calculated or publicly disseminated;
(d) how information regarding the PIV
and the Disclosed Portfolio is
disseminated; (e) the requirement that
ETP Holders deliver a prospectus to
investors purchasing newly issued
Shares prior to or concurrently with the
confirmation of a transaction; and (f)
trading information.
(5) For initial and/or continued
listing, the Fund will be in compliance
with Rule 10A–3 28 under the Act, as
provided by NYSE Arca Equities Rule
5.3.
(6) The Fund may hold up to an
aggregate amount of 15% of its net
assets in illiquid assets (calculated at
the time of investment), including Rule
144A securities deemed illiquid by the
Adviser, consistent with Commission
guidance. The Fund will monitor its
portfolio liquidity on an ongoing basis
to determine whether, in light of current
circumstances, an adequate level of
liquidity is being maintained, and will
consider taking appropriate steps in
order to maintain adequate liquidity if,
through a change in values, net assets,
or other circumstances, more than 15%
of the Fund’s net assets are held in
illiquid assets.
(7) The Fund will limit its investment
in non-government sponsored
residential mortgage-backed securities,
commercial mortgage-backed securities
and asset-backed securities (including
equipment trust certificates) as well as
bank loans and illiquid restricted
securities, in the aggregate, to 20% or
less of the Fund’s net assets.
(8) Not more than 10% of the net
assets of the Fund will be invested in
non-exchange-listed ADRs.
(9) Not more than 10% of the net
assets of the Fund in the aggregate
invested in exchange-traded equity
securities shall consist of equity
securities whose principal market is not
a member of the ISG or party to a CSSA
with the Exchange.
(10) A minimum of 100,000 Shares
will be outstanding at the
commencement of trading on the
Exchange.
This approval order is based on all of
the Exchange’s representations,
including those set forth above and in
the Notice.
For the foregoing reasons, the
Commission finds that the proposed
rule change, as modified by Amendment
No. 1, is consistent with Section 6(b)(5)
of the Act 29 and the rules and
28 17
29 15
CFR 240 10A–3.
U.S.C. 78f(b)(5).
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regulations thereunder applicable to a
national securities exchange.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Exchange Act,
that the proposed rule change (SR–
NYSEArca–2015–15), as modified by
Amendment No. 1, is hereby approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
Brent J. Fields,
Secretary.
[FR Doc. 2015–11080 Filed 5–7–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74862; File No. SR–CBOE–
2015–026]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Designation of
Longer Period for Commission Action
on Proposed Rule Change Relating to
Rules 6.74A and 6.74B
26599
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day for this filing
is May 7, 2015.
The Commission is extending the 45day time period for Commission action
on the proposed rule change. The
Commission finds that it is appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider and take action on the
Exchange’s proposed rule change.
Accordingly, pursuant to Section
19(b)(2)(A)(ii)(I) of the Act 5 and for the
reasons stated above, the Commission
designates June 21, 2015, as the date by
which the Commission should either
approve or disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
(File No. SR–CBOE–2015–026).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Brent J. Fields,
Secretary.
[FR Doc. 2015–11056 Filed 5–7–15; 8:45 am]
BILLING CODE 8011–01–P
May 4, 2015.
On March 6, 2015, Chicago Board
Options Exchange, Incorporated
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend its rules regarding the ability of
a Market-Maker assigned to an options
class to be solicited as the contra party
to an Agency Order in that class on the
Exchange’s Automated Improvement
Mechanism and Solicitation Auction
Mechanism. The proposed rule change
was published for comment in the
Federal Register on March 23, 2015.3
The Commission has received no
comment letters on the proposal.
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 74519
(March 17, 2015), 80 FR 15264.
4 15 U.S.C. 78s(b)(2).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74861; File No. SR–NYSE–
2015–22]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending the
Fees for NYSE BBO and NYSE Trades
To Add a Late Fee In Connection With
Failure To Submit the Non-Display Use
Declaration
May 4, 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 April 27,
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, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
30 17
1 15
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
5 15
U.S.C. 78s(b)(2)(A)(ii)(I).
CFR 200.30–3(a)(31).
1 15 U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
6 17
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Federal Register / Vol. 80, No. 89 / Friday, May 8, 2015 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
fees for NYSE BBO and NYSE Trades to
add a late fee in connection with failure
to submit the non-display use
declaration, operative on May 1, 2015.
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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
asabaliauskas on DSK5VPTVN1PROD with NOTICES
The Exchange proposes to amend the
fees for NYSE BBO and NYSE Trades,
as set forth on the NYSE Proprietary
Market Data Fee Schedule (‘‘Fee
Schedule’’), to add a late fee in
connection with failure to submit an
updated non-display use declaration.
The proposed change to the Fee
Schedule would be operative on May 1,
2015.
The Exchange established the current
fees for non-display services for NYSE
BBO and NYSE Trades in April 2013
and amended those fees in September
2014.4 The 2013 Non-Display Filing
established a requirement that data
recipients that receive real-time NYSE
market data subject to Non-Display Use
fees submit a declaration with respect to
their use of non-display data.5 In
4 See Securities Exchange Act Release Nos. 69278
(April 2, 2013), 78 FR 20973 (April 8, 2013)(SR–
2013–25 [sic])(‘‘2013 Non-Display Filing’’) and
72923 (Aug. 26, 2014), 79 FR 52079 (Sept. 2,
2014)(SR–NYSE–2014–43)(‘‘2014 Non-Display
Filing’’).
5 The non-display fee structure established in the
2013 Non-Display Filing replaced a monthly
reporting obligation with respect to non-display
devices with the requirement to submit the nondisplay use declaration. The Exchange also notes
that if a data recipient only subscribes to products
for which there are no non-display usage fees, e.g.,
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have not submitted the Non-Display Use
Declaration by June 30, 2015, and would
apply beginning July 1, 2015 and for
each month thereafter until the data
recipient has completed and submitted
the Non-Display Use Declaration. With
respect to the annual Non-Display Use
Declaration due by January 31st of each
year beginning in 2016, the Non-Display
Declaration Late Fee would apply to
data recipients that fail to complete and
submit the annual Non-Display Use
Declaration by the January 31st due
date, and would apply beginning
February 1st and for each month
thereafter until the data recipient has
completed and submitted the annual
Non-Display Use Declaration.7 A NonDisplay Use Declaration that is clearly
incomplete would not be considered to
have been completed and submitted to
the Exchange on time.
connection with the fee changes in the
2014 Non-Display Filing, the Exchange
required data recipients that receive
real-time NYSE market data subject to
Non-Display Use fees to complete and
submit an updated Non-Display Use
Declaration by September 1, 2014.6 The
2014 Non-Display Filing also
established that data recipients are
required to submit an updated annual
Non-Display Use Declaration by January
31st of each year beginning in 2016. In
addition, if a data recipient’s use of realtime NYSE market data changes at any
time after the data recipient submits a
Non-Display Use Declaration, the data
recipient must inform the Exchange of
the change by completing and
submitting at the time of the change an
updated declaration reflecting the
change of use.
The Exchange notes that if a data
recipient does not timely submit a NonDisplay Use Declaration, the Exchange
does not have up-to-date information
about the data recipient’s data use and
therefore may not be charging the
correct fees to the data recipient. In
order to correctly assess fees for the
non-display use of NYSE BBO and
NYSE Trades, the Exchange needs to
have current and accurate information
about the use of NYSE BBO and NYSE
Trades. The failure of data recipients to
submit the Non-Display Use Declaration
on time leads to potentially incorrect
billing and administrative burdens,
including tracking and obtaining late
Non-Display Use Declarations and
correcting customer records in
connection with late Non-Display Use
Declarations. The purpose of the
proposed late fee is to incent data
recipients to submit the Non-Display
Use Declaration promptly to avoid the
administrative burdens associated with
the late submission of Non-Display Use
Declarations.
The Exchange proposes to establish a
Non-Display Declaration Late Fee of
$1,000 per month. The proposed fee
would be charged to any data recipient
that pays an Access Fee for NYSE BBO
and NYSE Trades that has failed to
timely complete and submit a NonDisplay Use Declaration.
With respect to the Non-Display Use
Declaration that was due by September
1, 2014, the Non-Display Declaration
Late Fee would apply to data recipients
of NYSE BBO and NYSE Trades that
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,8
in general, and Sections 6(b)(4) and
6(b)(5) of the Act,9 in particular, in that
it provides an equitable allocation of
reasonable fees among users and
recipients of the data and is not
designed to permit unfair
discrimination among customers,
issuers, and brokers.
The Exchange believes that it is
reasonable to impose a late fee in
connection with the submission of the
Non-Display Use Declaration. In order
to correctly assess fees for the nondisplay use of NYSE BBO and NYSE
Trades, the Exchange needs to have
current and accurate information about
the use of NYSE BBO and NYSE Trades.
The failure of data recipients to submit
the Non-Display Use Declaration on
time leads to potentially incorrect
billing and administrative burdens,
including tracking and obtaining late
Non-Display Use Declarations and
correcting and following up on
payments owed in connection with late
Non-Display Use Declarations. The
purpose of the late fee is to incent data
recipients to submit the Non-Display
Use Declaration promptly to avoid the
administrative burdens associated with
the late submission of Non-Display Use
Declarations. The Non-Display
Declaration Late Fee is equitable and
not unfairly discriminatory because it
NYSE Realtime Reference Prices, then no
declaration is required.
6 The current form of the Non-Display Use
Declaration reflected the changes to the non-display
fees set forth in the 2014 Non-Display Filing and
replaced the NYSE Euronext Non-Display Use
Declaration established in connection with the 2013
Non-Display Filing.
7 The Exchange has established the Non-Display
Declaration Late Fee with respect to NYSE
OpenBook and in that filing adopted endnote 2,
which specifies the effective dates for the NonDisplay Declaration Late Fee as described above.
See SR–NYSE–2015–20.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4), (5).
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E:\FR\FM\08MYN1.SGM
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Federal Register / Vol. 80, No. 89 / Friday, May 8, 2015 / Notices
will apply to all data recipients that
choose to subscribe to the NYSE BBO
and NYSE Trades feed.
The Non-Display Declaration Late Fee
is also consistent with similar pricing
adopted in 2013 by the Consolidated
Tape Association (‘‘CTA’’).10 The CTA
imposes a monthly fee of $2,500 for
each of Network A and Network B for
firms that fail to comply with their
reporting obligations in a timely
manner.
asabaliauskas on DSK5VPTVN1PROD 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 that is not
necessary or appropriate in furtherance
of the purposes of the Act. An
exchange’s ability to price its
proprietary market data feed products is
constrained by actual competition for
the sale of proprietary market data
products, the joint product nature of
exchange platforms, and the existence of
alternatives to the Exchange’s
proprietary data. In addition to being
able to choose which proprietary data
products (if any) to use and how to use
them, a user can avoid the late fees that
are the subject of this filing entirely by
simply complying with the requisite
deadlines.
In setting the proposed fees, the
Exchange considered the
competitiveness of the market for
proprietary data and all of the
implications of that competition. The
Exchange believes that it has considered
all relevant factors and has not
considered irrelevant factors in order to
establish fair, reasonable, and not
unreasonably discriminatory fees and an
equitable allocation of fees among all
users. The existence of fierce
competition to sell proprietary data
products and for order flow, as well as
numerous alternatives to the Exchange’s
products, including proprietary data
from other sources, ensures that the
Exchange cannot set unreasonable fees,
or fees that are unreasonably
discriminatory, when vendors and
subscribers can elect these alternatives
or choose not to purchase a specific
proprietary data product if the attendant
fees are not justified by the returns that
any particular vendor or data recipient
would achieve through the purchase
(the returns on use being a particularly
important aspect of non-display uses of
proprietary data).
10 See Securities Exchange Act Release No. 70010
(July 19, 2013), 78 FR 44984 (July 25, 2013)(SR–
CTA/CQ–2013–04).
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16:38 May 07, 2015
Jkt 235001
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
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 11 of the Act and
subparagraph (f)(2) of Rule 19b–4 12
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
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. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 13 of the Act to
determine whether the proposed rule
change 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–2015–22 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2015–22. 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/
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
13 15 U.S.C. 78s(b)(2)(B).
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 will also be available for Web site
viewing and printing at the NYSE’s
principal office and on its Internet Web
site at www.nyse.com. 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–
2015–22 and should be submitted on or
before May 29, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Brent J. Fields,
Secretary.
[FR Doc. 2015–11055 Filed 5–7–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74864; File No. SR–CBOE–
2015–043]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to Automated
Improvement Mechanism Order
Allocation
May 4, 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 April 23,
2015, Chicago Board Options Exchange,
Incorporated (the ‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
11 15
14 17
12 17
1 15
PO 00000
Frm 00080
Fmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Sfmt 4703
26601
E:\FR\FM\08MYN1.SGM
08MYN1
]]>Agencies
[Federal Register Volume 80, Number 89 (Friday, May 8, 2015)]
[Notices]
[Pages 26599-26601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-11055]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74861; File No. SR-NYSE-2015-22]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending the Fees for NYSE BBO and NYSE Trades To Add a Late Fee In
Connection With Failure To Submit the Non-Display Use Declaration
May 4, 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 April 27, 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,
II, and III 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.
---------------------------------------------------------------------------
[[Page 26600]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the fees for NYSE BBO and NYSE
Trades to add a late fee in connection with failure to submit the non-
display use declaration, operative on May 1, 2015. 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the fees for NYSE BBO and NYSE
Trades, as set forth on the NYSE Proprietary Market Data Fee Schedule
(``Fee Schedule''), to add a late fee in connection with failure to
submit an updated non-display use declaration. The proposed change to
the Fee Schedule would be operative on May 1, 2015.
The Exchange established the current fees for non-display services
for NYSE BBO and NYSE Trades in April 2013 and amended those fees in
September 2014.\4\ The 2013 Non-Display Filing established a
requirement that data recipients that receive real-time NYSE market
data subject to Non-Display Use fees submit a declaration with respect
to their use of non-display data.\5\ In connection with the fee changes
in the 2014 Non-Display Filing, the Exchange required data recipients
that receive real-time NYSE market data subject to Non-Display Use fees
to complete and submit an updated Non-Display Use Declaration by
September 1, 2014.\6\ The 2014 Non-Display Filing also established that
data recipients are required to submit an updated annual Non-Display
Use Declaration by January 31st of each year beginning in 2016. In
addition, if a data recipient's use of real-time NYSE market data
changes at any time after the data recipient submits a Non-Display Use
Declaration, the data recipient must inform the Exchange of the change
by completing and submitting at the time of the change an updated
declaration reflecting the change of use.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release Nos. 69278 (April 2,
2013), 78 FR 20973 (April 8, 2013)(SR-2013-25 [sic])(``2013 Non-
Display Filing'') and 72923 (Aug. 26, 2014), 79 FR 52079 (Sept. 2,
2014)(SR-NYSE-2014-43)(``2014 Non-Display Filing'').
\5\ The non-display fee structure established in the 2013 Non-
Display Filing replaced a monthly reporting obligation with respect
to non-display devices with the requirement to submit the non-
display use declaration. The Exchange also notes that if a data
recipient only subscribes to products for which there are no non-
display usage fees, e.g., NYSE Realtime Reference Prices, then no
declaration is required.
\6\ The current form of the Non-Display Use Declaration
reflected the changes to the non-display fees set forth in the 2014
Non-Display Filing and replaced the NYSE Euronext Non-Display Use
Declaration established in connection with the 2013 Non-Display
Filing.
---------------------------------------------------------------------------
The Exchange notes that if a data recipient does not timely submit
a Non-Display Use Declaration, the Exchange does not have up-to-date
information about the data recipient's data use and therefore may not
be charging the correct fees to the data recipient. In order to
correctly assess fees for the non-display use of NYSE BBO and NYSE
Trades, the Exchange needs to have current and accurate information
about the use of NYSE BBO and NYSE Trades. The failure of data
recipients to submit the Non-Display Use Declaration on time leads to
potentially incorrect billing and administrative burdens, including
tracking and obtaining late Non-Display Use Declarations and correcting
customer records in connection with late Non-Display Use Declarations.
The purpose of the proposed late fee is to incent data recipients to
submit the Non-Display Use Declaration promptly to avoid the
administrative burdens associated with the late submission of Non-
Display Use Declarations.
The Exchange proposes to establish a Non-Display Declaration Late
Fee of $1,000 per month. The proposed fee would be charged to any data
recipient that pays an Access Fee for NYSE BBO and NYSE Trades that has
failed to timely complete and submit a Non-Display Use Declaration.
With respect to the Non-Display Use Declaration that was due by
September 1, 2014, the Non-Display Declaration Late Fee would apply to
data recipients of NYSE BBO and NYSE Trades that have not submitted the
Non-Display Use Declaration by June 30, 2015, and would apply beginning
July 1, 2015 and for each month thereafter until the data recipient has
completed and submitted the Non-Display Use Declaration. With respect
to the annual Non-Display Use Declaration due by January 31st of each
year beginning in 2016, the Non-Display Declaration Late Fee would
apply to data recipients that fail to complete and submit the annual
Non-Display Use Declaration by the January 31st due date, and would
apply beginning February 1st and for each month thereafter until the
data recipient has completed and submitted the annual Non-Display Use
Declaration.\7\ A Non-Display Use Declaration that is clearly
incomplete would not be considered to have been completed and submitted
to the Exchange on time.
---------------------------------------------------------------------------
\7\ The Exchange has established the Non-Display Declaration
Late Fee with respect to NYSE OpenBook and in that filing adopted
endnote 2, which specifies the effective dates for the Non-Display
Declaration Late Fee as described above. See SR-NYSE-2015-20.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\8\ in general, and
Sections 6(b)(4) and 6(b)(5) of the Act,\9\ in particular, in that it
provides an equitable allocation of reasonable fees among users and
recipients of the data and is not designed to permit unfair
discrimination among customers, issuers, and brokers.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4), (5).
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The Exchange believes that it is reasonable to impose a late fee in
connection with the submission of the Non-Display Use Declaration. In
order to correctly assess fees for the non-display use of NYSE BBO and
NYSE Trades, the Exchange needs to have current and accurate
information about the use of NYSE BBO and NYSE Trades. The failure of
data recipients to submit the Non-Display Use Declaration on time leads
to potentially incorrect billing and administrative burdens, including
tracking and obtaining late Non-Display Use Declarations and correcting
and following up on payments owed in connection with late Non-Display
Use Declarations. The purpose of the late fee is to incent data
recipients to submit the Non-Display Use Declaration promptly to avoid
the administrative burdens associated with the late submission of Non-
Display Use Declarations. The Non-Display Declaration Late Fee is
equitable and not unfairly discriminatory because it
[[Page 26601]]
will apply to all data recipients that choose to subscribe to the NYSE
BBO and NYSE Trades feed.
The Non-Display Declaration Late Fee is also consistent with
similar pricing adopted in 2013 by the Consolidated Tape Association
(``CTA'').\10\ The CTA imposes a monthly fee of $2,500 for each of
Network A and Network B for firms that fail to comply with their
reporting obligations in a timely manner.
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\10\ See Securities Exchange Act Release No. 70010 (July 19,
2013), 78 FR 44984 (July 25, 2013)(SR-CTA/CQ-2013-04).
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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. An exchange's ability to
price its proprietary market data feed products is constrained by
actual competition for the sale of proprietary market data products,
the joint product nature of exchange platforms, and the existence of
alternatives to the Exchange's proprietary data. In addition to being
able to choose which proprietary data products (if any) to use and how
to use them, a user can avoid the late fees that are the subject of
this filing entirely by simply complying with the requisite deadlines.
In setting the proposed fees, the Exchange considered the
competitiveness of the market for proprietary data and all of the
implications of that competition. The Exchange believes that it has
considered all relevant factors and has not considered irrelevant
factors in order to establish fair, reasonable, and not unreasonably
discriminatory fees and an equitable allocation of fees among all
users. The existence of fierce competition to sell proprietary data
products and for order flow, as well as numerous alternatives to the
Exchange's products, including proprietary data from other sources,
ensures that the Exchange cannot set unreasonable fees, or fees that
are unreasonably discriminatory, when vendors and subscribers can elect
these alternatives or choose not to purchase a specific proprietary
data product if the attendant fees are not justified by the returns
that any particular vendor or data recipient would achieve through the
purchase (the returns on use being a particularly important aspect of
non-display uses of proprietary data).
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
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \11\ of the Act and subparagraph (f)(2) of Rule
19b-4 \12\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
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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. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(2)(B).
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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-2015-22 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2015-22. 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 will also be available
for Web site viewing and printing at the NYSE's principal office and on
its Internet Web site at www.nyse.com. 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-2015-22 and should be submitted on
or before May 29, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-11055 Filed 5-7-15; 8:45 am]
BILLING CODE 8011-01-P
