Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE MKT Order Imbalances to Add a Late Fee In Connection With Failure To Submit the Non-Display Use Declaration, 27212-27214 [2015-11374]

Download as PDF 27212 Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Notices 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. 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– NYSEMKT–2015–36 on the subject line. mstockstill on DSK4VPTVN1PROD with NOTICES 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–NYSEMKT–2015–36. 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 inspection and copying 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– NYSEMKT–2015–36 and should be submitted on or before June 2, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–11373 Filed 5–11–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74884; File No. SR– NYSEMKT–2015–35] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE MKT Order Imbalances to Add a Late Fee In Connection With Failure To Submit the Non-Display Use Declaration May 6, 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, NYSE MKT LLC (the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with the 14 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 11 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 13 15 U.S.C. 78s(b)(2)(B). 12 17 VerDate Sep<11>2014 17:31 May 11, 2015 Jkt 235001 PO 00000 Frm 00071 Fmt 4703 Sfmt 4703 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. 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 MKT Order Imbalances 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 MKT Order Imbalances, as set forth on the NYSE MKT Equities 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 MKT OpenBook, NYSE MKT Trades and NYSE MKT BBO in April 2013 and amended those fees and added nondisplay fees for NYSE MKT Order Imbalances in September 2014.4 The 4 See Securities Exchange Act Release Nos. 69285 (April 3, 2013), 78 FR 21172 (April 9, 2013) (SR– NYSEMKT–2013–32) (‘‘2013 Non-Display Filing’’) and 72020 (Sept. 9, 2014), 79 FR 55040 (Sept. 15, 2014) (SR–NYSEMKT–2014–72) (‘‘2014 NonDisplay Filing’’). E:\FR\FM\12MYN1.SGM 12MYN1 Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES 2013 Non-Display Filing established a requirement that data recipients that receive real-time NYSE MKT 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 MKT market data subject to Non-Display Use fees to complete and submit an updated NonDisplay 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 MKT 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 MKT Order Imbalances, the Exchange needs to have current and accurate information about the use of NYSE MKT Order Imbalances. 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 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., NYSE MKT 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. VerDate Sep<11>2014 17:31 May 11, 2015 Jkt 235001 $1,000 per month. The proposed fee would be charged to any data recipient that pays an Access Fee for NYSE MKT Order Imbalances 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 NYSE MKT Order Imbalances data recipients 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 NonDisplay Use Declaration that is clearly incomplete would not be considered to have been completed and submitted to the Exchange on time. 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 MKT Order Imbalances, the Exchange needs to have current and accurate information about the use of NYSE MKT Order Imbalances. 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 7 The Exchange has established the Non-Display Declaration Late Fee with respect to NYSE MKT OpenBook and in that filing adopted endnote 2, which specifies the effective dates for the NonDisplay Declaration Late Fee as described above. See SR–NYSEMKT–2015–34. 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(4), (5). PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 27213 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 NonDisplay Declaration Late Fee is equitable and not unfairly discriminatory because it will apply to all data recipients that choose to subscribe to the NYSE MKT Order Imbalances 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. 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 10 See Securities Exchange Act Release No. 70010 (July 19, 2013), 78 FR 44984 (July 25, 2013)(SR– CTA/CQ–2013–04). E:\FR\FM\12MYN1.SGM 12MYN1 27214 Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Notices 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. 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: 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– NYSEMKT–2015–35 on the subject line. and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSEMKT–2015–35. 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 inspection and copying 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– NYSEMKT–2015–35 and should be submitted on or before June 2, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Robert W. Errett, Deputy Secretary. In its filing with the Commission, the Exchange 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 these 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 aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The Exchange proposes to adopt a rule governing the effectiveness of Permit Holder status. In particular, the Exchange proposes to add language to its rules to codify the requirement that each applicant, to be a Permit Holder, must become effective in that status within 90 days of the date of the applicant’s approval. The Exchange also proposes to clarify that a Permit Holder shall become effective upon (i) satisfying applicable requirements to obtain a Trading Permit and (ii) the release of a Trading Permit to that Permit Holder by the Registration Services Department (‘‘RSD’’). SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74888; File No. SR–C2– 2015–011] May 6, 2015. 17:31 May 11, 2015 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose • Send paper comments in triplicate to Brent J. Fields, Secretary, Securities VerDate Sep<11>2014 The Exchange proposes to adopt a rule relating to the effectiveness of a Permit Holder. The text of the proposed rule change is available on the Exchange’s Web site (https:// www.cboe.com/AboutCBOE/ CBOELegalRegulatoryHome.aspx), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. BILLING CODE 8011–01–P Paper Comments U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(2). 13 15 U.S.C. 78s(b)(2)(B). I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change [FR Doc. 2015–11374 Filed 5–11–15; 8:45 am] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Effectiveness of a Permit Holder 11 15 ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on May 5, 2015, C2 Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) 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 Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the 1 15 14 17 Jkt 235001 PO 00000 CFR 200.30–3(a)(12). Frm 00073 Fmt 4703 Sfmt 4703 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. E:\FR\FM\12MYN1.SGM 12MYN1

Agencies

[Federal Register Volume 80, Number 91 (Tuesday, May 12, 2015)]
[Notices]
[Pages 27212-27214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-11374]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74884; File No. SR-NYSEMKT-2015-35]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Amending the Fees for 
NYSE MKT Order Imbalances to Add a Late Fee In Connection With Failure 
To Submit the Non-Display Use Declaration

May 6, 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, NYSE MKT LLC (the ``Exchange'' or ``NYSE 
MKT'') 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.
---------------------------------------------------------------------------

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 MKT Order 
Imbalances 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 MKT Order 
Imbalances, as set forth on the NYSE MKT Equities 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 MKT OpenBook, NYSE MKT Trades and NYSE MKT BBO in April 2013 
and amended those fees and added non-display fees for NYSE MKT Order 
Imbalances in September 2014.\4\ The

[[Page 27213]]

2013 Non-Display Filing established a requirement that data recipients 
that receive real-time NYSE MKT 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 MKT 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 MKT 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. 69285 (April 3, 
2013), 78 FR 21172 (April 9, 2013) (SR-NYSEMKT-2013-32) (``2013 Non-
Display Filing'') and 72020 (Sept. 9, 2014), 79 FR 55040 (Sept. 15, 
2014) (SR-NYSEMKT-2014-72) (``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 MKT 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 MKT Order 
Imbalances, the Exchange needs to have current and accurate information 
about the use of NYSE MKT Order Imbalances. 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 MKT Order Imbalances 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 
NYSE MKT Order Imbalances data recipients 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 MKT 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-NYSEMKT-
2015-34.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4), (5).
---------------------------------------------------------------------------

    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 MKT 
Order Imbalances, the Exchange needs to have current and accurate 
information about the use of NYSE MKT Order Imbalances. 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 will apply to all 
data recipients that choose to subscribe to the NYSE MKT Order 
Imbalances 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.
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 70010 (July 19, 
2013), 78 FR 44984 (July 25, 2013)(SR-CTA/CQ-2013-04).
---------------------------------------------------------------------------

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

[[Page 27214]]

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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSEMKT-2015-35 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-NYSEMKT-2015-35. 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 inspection and copying 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-NYSEMKT-2015-35 and should be submitted on or before 
June 2, 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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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-11374 Filed 5-11-15; 8:45 am]
 BILLING CODE 8011-01-P
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