Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE MKT OpenBook To Add a Late Fee In Connection With Failure To Submit the Non-Display Use Declaration, 27205-27207 [2015-11375]
Download as PDF
<![CDATA[
Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Notices
Dated: May 8, 2015.
Catherine F.I. Andrade,
OPIC Corporate Secretary.
[FR Doc. 2015–11541 Filed 5–8–15; 4:15 pm]
BILLING CODE 3210–01–P
POSTAL REGULATORY COMMISSION
[Docket No. CP2015–63; Order No. 2471]
New Postal Product
Postal Regulatory Commission.
Notice.
The Commission invites comments on
whether the Postal Service’s filing is
consistent with 39 U.S.C. 3632, 3633, or
3642, 39 CFR part 3015, and 39 CFR
part 3020, subpart B. Comments are due
no later than May 13, 2015. The public
portions of the filing can be accessed via
the Commission’s Web site (https://
www.prc.gov).
The Commission appoints James F.
Callow to serve as Public Representative
in this docket.
AGENCY:
III. Ordering Paragraphs
ACTION:
It is ordered:
1. The Commission establishes Docket
No. CP2015–63 for consideration of the
matters raised by the Postal Service’s
Notice.
2. Pursuant to 39 U.S.C. 505, James F.
Callow is appointed to serve as an
officer of the Commission to represent
the interests of the general public in this
proceeding (Public Representative).
3. Comments are due no later than
May 13, 2015.
4. The Secretary shall arrange for
publication of this order in the Federal
Register.
The Commission is noticing a
recent Postal Service filing concerning
an addition to Global Expedited Package
Services 3 negotiated service agreement.
This notice informs the public of the
filing, invites public comment, and
takes other administrative steps.
DATES: Comments are due: May 13,
2015.
SUMMARY:
Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
ADDRESSES:
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2015–11367 Filed 5–11–15; 8:45 am]
BILLING CODE 7710–FW–P
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
SECURITIES AND EXCHANGE
COMMISSION
Table of Contents
[Release No. 34–74885; File No. SR–
NYSEMKT–2015–34]
I. Introduction
II. Notice of Commission Action
III. Ordering Paragraphs
I. Introduction
On May 5, 2015, the Postal Service
filed notice that it has entered into an
additional Global Expedited Package
Services 3 (GEPS 3) negotiated service
agreement (Agreement).1
To support its Notice, the Postal
Service filed a copy of the Agreement,
a copy of the Governors’ Decision
authorizing the product, a certification
of compliance with 39 U.S.C. 3633(a),
and an application for non-public
treatment of certain materials. It also
filed supporting financial workpapers.
mstockstill on DSK4VPTVN1PROD with NOTICES
II. Notice of Commission Action
The Commission establishes Docket
No. CP2015–63 for consideration of
matters raised by the Notice.
1 Notice of United States Postal Service of Filing
a Functionally Equivalent Global Expedited
Package Services 3 Negotiated Service Agreement
and Application for Non-Public Treatment of
Materials Filed Under Seal, May 5, 2015 (Notice).
VerDate Sep<11>2014
17:31 May 11, 2015
Jkt 235001
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending the Fees for
NYSE MKT OpenBook 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 24,
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
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
PO 00000
Frm 00064
Fmt 4703
27205
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 OpenBook 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 OpenBook, 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 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
MKT market data subject to NonDisplay Use fees submit a declaration
with respect to their use of non-display
data.5 In connection with the fee
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
Continued
Sfmt 4703
E:\FR\FM\12MYN1.SGM
12MYN1
27206
Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
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 NonDisplay 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 NonDisplay 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
OpenBook, the Exchange needs to have
current and accurate information about
the use of NYSE MKT OpenBook. 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
OpenBook 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
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, 2014, the Non-Display Declaration
Late Fee would apply to NYSE MKT
OpenBook 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.
In addition to adding the Non-Display
Declaration Late Fee for NYSE MKT
OpenBook to the Fee Schedule, the
Exchange proposes to add an endnote to
the Fee Schedule that would specify the
effective dates for the Non-Display
Declaration Late Fee as described above,
and to change the numbering for the
existing endnotes as needed.
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 OpenBook,
the Exchange needs to have current and
accurate information about the use of
NYSE MKT OpenBook. The failure of
data recipients to submit the NonDisplay 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
7 The Exchange will be proposing to establish the
Non-Display Declaration Late Fee with respect to
each Market Data product on the Fee Schedule that
includes Non-Display Fees.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4), (5).
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
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 OpenBook
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
discriminatory, when vendors and
subscribers can elect these alternatives
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
Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Notices
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:
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–2015–34 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.
11 15
U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(2).
13 15 U.S.C. 78s(b)(2)(B).
VerDate Sep<11>2014
17:31 May 11, 2015
All submissions should refer to File
Number SR–NYSEMKT–2015–34. 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–2015–34 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. 2015–11375 Filed 5–11–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74880; File No. SR–
NASDAQ–2015–045]
Self-Regulatory Organizations; The
NASDAQ Stock Market, LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to the
Listing and Trading of the Shares of
the First Trust Low Beta Income ETF,
a Series of First Trust ExchangeTraded Fund VI
May 6, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 24,
2015, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in in
Items I, II, and III below, which Items
have been prepared by Nasdaq. The
Exchange has designated the proposed
rule change as constituting a noncontroversial rule change under Rule
19b–4(f)(6) under the Act,3 which
renders the proposal 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
Nasdaq proposes a rule change with
respect to the First Trust Low Beta
Income ETF (the ‘‘Fund’’) of First Trust
Exchange-Traded Fund VI (the ‘‘Trust’’),
the shares of which have been approved
by the Commission for listing and
trading under NASDAQ Rule 5735
(‘‘Managed Fund Shares’’). The shares of
the Fund are collectively referred to
herein as the ‘‘Shares.’’
The text of the proposed rule change
is available at https://
nasdaq.cchwallstreet.com/, at Nasdaq’s
principal office, 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,
Nasdaq included statements concerning
the purpose of, and basis for, the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below.
Nasdaq 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
1. Purpose
The Exchange proposes to reflect
changes to the means of achieving the
Fund’s investment objective. The
Commission has approved the listing
and trading of Shares under NASDAQ
Rule 5735, which governs the listing
and trading of Managed Fund Shares on
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
14 17
Jkt 235001
PO 00000
CFR 200.30–3(a)(12).
Frm 00066
Fmt 4703
Sfmt 4703
27207
E:\FR\FM\12MYN1.SGM
12MYN1
]]>Agencies
[Federal Register Volume 80, Number 91 (Tuesday, May 12, 2015)]
[Notices]
[Pages 27205-27207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-11375]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74885; File No. SR-NYSEMKT-2015-34]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Amending the Fees for
NYSE MKT OpenBook 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 24, 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 OpenBook 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 OpenBook, 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 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 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
[[Page 27206]]
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 OpenBook, the
Exchange needs to have current and accurate information about the use
of NYSE MKT OpenBook. 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 OpenBook 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 OpenBook 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 will be proposing to establish the Non-Display
Declaration Late Fee with respect to each Market Data product on the
Fee Schedule that includes Non-Display Fees.
---------------------------------------------------------------------------
In addition to adding the Non-Display Declaration Late Fee for NYSE
MKT OpenBook to the Fee Schedule, the Exchange proposes to add an
endnote to the Fee Schedule that would specify the effective dates for
the Non-Display Declaration Late Fee as described above, and to change
the numbering for the existing endnotes as needed.
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
OpenBook, the Exchange needs to have current and accurate information
about the use of NYSE MKT OpenBook. 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 OpenBook 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 discriminatory, when vendors and subscribers can elect
these alternatives
[[Page 27207]]
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-2015-34 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-2015-34. 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-2015-34 and should be submitted on or before
June 2, 2015.
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-11375 Filed 5-11-15; 8:45 am]
BILLING CODE 8011-01-P
