Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.22 To Describe the Market Data Product BYX Book Viewer, 51332-51334 [2015-20793]
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Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices
Annual
responses
Form number
Time
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BA–9 (FTP) ..................................................................................................................................
10
76
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Total ......................................................................................................................................
360
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239
Additional Information or Comments:
Copies of the forms and supporting
documents can be obtained from Dana
Hickman at (312) 751–4981 or
Dana.Hickman@RRB.GOV.
Comments regarding the information
collection should be addressed to
Charles Mierzwa, Railroad Retirement
Board, 844 North Rush Street, Chicago,
Illinois 60611–2092 or
Charles.Mierzwa@RRB.GOV and to the
OMB Desk Officer for the RRB, Fax:
202–395–6974, Email address: OIRA_
Submission@omb.eop.gov.
Charles Mierzwa,
Chief of Information Resources Management.
[FR Doc. 2015–20851 Filed 8–21–15; 8:45 am]
BILLING CODE 7905–01–P
SECURITIES AND EXCHANGE
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[Release No. 34–75717; File No. SR–BYX–
2015–35]
Self-Regulatory Organizations; BATS
Y-Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rule 11.22 To
Describe the Market Data Product BYX
Book Viewer
tkelley on DSK3SPTVN1PROD with NOTICES
August 18, 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 August 7,
2015, BATS Y-Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
2 17
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend Rule 11.22 to describe a market
data product known as BYX Book
Viewer.
The text of the proposed rule change
is available at the Exchange’s Web site
at www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
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
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 parts 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 add
language to Rule 11.22 describing a
market data product known as BYX
Book Viewer. The proposal
memorializes in the Exchange’s rules a
data feed that is currently available
through the Exchange’s public Web site
free of charge. BYX Book Viewer is a
data feed that disseminates, on a realtime basis, the aggregated two-side
quotations for up to five (5) price levels
for all displayed orders for securities
traded on the Exchange and for which
the Exchanges reports quotes under the
Consolidated Tape Association (‘‘CTA’’)
Plan or the Nasdaq/UTP Plan. BYX
Book Viewer also contains the last ten
(10) trades including time of trade, price
and share quantity. BYX Book Viewer is
currently available via
www.batstrading.com without charge.
The Exchange will file a separate
proposed rule change with the
Commission proposing fees to be
PO 00000
Frm 00137
Fmt 4703
Sfmt 4703
charged for certain types of access to
BYX Book Viewer as of September 1,
2015.5
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act,6 in general, and
furthers the objectives of section 6(b)(5)
of the Act,7 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and to protect investors and the
public interest, and that it is not
designed to permit unfair
discrimination among customers,
brokers, or dealers. This proposal is in
keeping with those principles in that it
promotes increased transparency
through the dissemination of BYX Book
Viewer. The Exchange also believes this
proposal is consistent with section
6(b)(5) of the Act because it protects
investors and the public interest and
promotes just and equitable principles
of trade by providing investors with an
alternative for receiving market data as
requested by market data vendors and
purchasers that expressed an interest in
exchange-only data for instances where
consolidated data is no longer required
to be purchased and displayed. The
proposed rule change would benefit
investors by facilitating their prompt
access to real-time depth-of-book
information contained in BYX Book
Viewer. The proposed rule change also
removes impediments to and perfect the
mechanism of a free and open market
and a national market system by
memorializing in the Exchange’s rules a
data feed that is currently available
through the Exchange’s public Web site
free of charge.
The Exchange also believes that the
proposed rule change is consistent with
section 11(A) of the Act 8 in that it
supports (i) fair competition among
5 The Exchange understands that its affiliated
exchanges intend to file identical proposed rule
changes to adopt rules and fees for the Book Viewer
data feed with the Commission. The Exchange’s
affiliates are EDGA Exchange, Inc., EDGX Exchange,
Inc. and BATS Exchange, Inc.
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78k–1.
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Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices
brokers and dealers, among exchange
markets, and between exchange markets
and markets other than exchange
markets and (ii) the availability to
brokers, dealers, and investors of
information with respect to quotations
for and transactions in securities.
Furthermore, the proposed rule change
is consistent with Rule 603 of
Regulation NMS,9 which provides that
any national securities exchange that
distributes information with respect to
quotations for or transactions in an NMS
stock do so on terms that are not
unreasonably discriminatory. BYX Book
Viewer is accessed and subscribed to on
a voluntary basis, in that neither the
Exchange nor market data distributors
are required by any rule or regulation to
make this data available. Accordingly,
distributors and subscribers can
discontinue use at any time and for any
reason.
In adopting Regulation NMS, the
Commission granted self-regulatory
organizations and broker-dealers
increased authority and flexibility to
offer new and unique market data to
consumers of such data. It was believed
that this authority would expand the
amount of data available to users and
consumers of such data and also spur
innovation and competition for the
provision of market data. The Exchange
believes that the data products proposed
herein are precisely the sort of market
data products that the Commission
envisioned when it adopted Regulation
NMS. The Commission concluded that
Regulation NMS—by lessening
regulation of the market in proprietary
data—would itself further the Act’s
goals of facilitating efficiency and
competition:
tkelley on DSK3SPTVN1PROD with NOTICES
[E]fficiency is promoted when brokerdealers who do not need the data beyond the
prices, sizes, market center identifications of
the NBBO and consolidated last sale
information are not required to receive (and
pay for) such data. The Commission also
believes that efficiency is promoted when
broker-dealers may choose to receive (and
pay for) additional market data based on their
own internal analysis of the need for such
data.10
By removing ‘‘unnecessary regulatory
restrictions’’ on the ability of exchanges
to sell their own data, Regulation NMS
advanced the goals of the Act and the
principles reflected in its legislative
history.
In addition, BYX Book Viewer
removes impediments to and perfects
the mechanism of a free and open
market and a national market system
9 See
17 CFR 242.603.
Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005) (File
No. S7–10–04).
10 See
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because BYX Book Viewer provides
investors with alternative market data
and competes with similar market data
product currently offered by the New
York Stock Exchange, Inc. (‘‘NYSE’’)
and the Nasdaq Stock Market LLC
(‘‘Nasdaq’’).11 The provision of new
options for investors to receive market
data was a primary goal of the market
data amendments adopted by
Regulation NMS.12 BYX Book Viewer is
precisely the sort of market data product
that the Commission envisioned when it
adopted Regulation NMS.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The proposal
is not intended to address any
competitive issues, but rather to
memorialize in the Exchange’s rules a
data feed that is currently available
through the Exchange’s public Web site
free of charge. Nonetheless, the
Exchange believes that the proposal will
promote competition by the Exchange
offering a service similar to that offered
by the NYSE and Nasdaq.13 Thus, the
Exchange believes this proposed rule
change is necessary to permit fair
competition among national securities
exchanges. Therefore, the Exchange
does not believe the proposed rule
change will result in any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
11 See Nasdaq Rule 7023(a)(1)(C) (describing
Nasdaq TotalView is a depth-of-book data feed that
includes all orders and quotes from all Nasdaq
members displayed in the Nasdaq Market Center as
well as the aggregate size of such orders and quotes
at each price level in the execution functionality of
the Nasdaq Market Center). See also Nasdaq Book
Viewer, a description of which is available at
https://data.nasdaq.com/Book Viewer.aspx (last
visited July 29, 2015). See NYSE OpenBook
available at https://www.nyxdata.com/openbook
(last visited July 29m 2015) (providing real-time
view of the NYSE limit order book). See e.g.,
Securities Exchange Act Release No. 71775 (March
24, 2014), 79 FR 17627 (March 28, 2014) (SR–
CBOE–2014–021) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change Related to
the CBSX BBO Data Feed and the New CBSX Book
Depth Data Feed).
12 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, at 37503 (June 29,
2005) (Regulation NMS Adopting Release).
13 See supra note 11.
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51333
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has designated this rule
filing as non-controversial under section
19(b)(3)(A) of the Act 14 and paragraph
(f)(6) of Rule 19b–4 thereunder.15 The
proposed rule change effects a change
that: (A) Does not significantly affect the
protection of investors or the public
interest; (B) does not impose any
significant burden on competition; and
(C) by its terms, does not become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest; provided that the selfregulatory organization has given the
Commission written notice of its intent
to file the proposed rule change, along
with a brief description and text of the
proposed rule change, at least five
business days prior to the date of filing
of the proposed rule change, or such
shorter time as designated by the
Commission.16
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is: (1) Necessary or appropriate in
the public interest; (2) for the protection
of investors; or (3) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposal 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 No. SR–
BYX–2015–35 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–BYX–2015–35. This file number
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4.
16 The Exchange has fulfilled this requirement.
15 17
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Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices
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 such
filing will also be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File No. SR–BYX–2015–
35 and should be submitted on or before
September 14, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–20793 Filed 8–21–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
tkelley on DSK3SPTVN1PROD with NOTICES
[Release No. 34–75721; File No. SR–NYSE–
2015–35]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change, as
Modified by Amendment No. 1,
Amending Certain of Its Disciplinary
Rules To Facilitate the Reintegration of
Certain Regulatory Functions From
Financial Industry Regulatory
Authority, Inc.
August 18, 2015.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on August
5, 2015, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. On August 14, 2015, the
exchange filed Amendment No. 1 to the
proposed rule change, which amended
and replaced the proposed rule change
in its entirety. The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
certain of its disciplinary rules to
facilitate the reintegration of certain
regulatory functions from Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’). This Amendment No. 1
supersedes the original filing in its
entirety. 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
certain of its disciplinary rules to permit
the reintegration of certain regulatory
functions from FINRA as of January 1,
2016.
17 17
2 15
1 15
3 17
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U.S.C. 78a.
CFR 240.19b–4.
Frm 00139
Fmt 4703
Sfmt 4703
Background of Proposed Rule Change
On June 14, 2010, the NYSE, NYSE
Regulation, Inc. (‘‘NYSE Regulation’’),4
and FINRA entered into a Regulatory
Services Agreement (‘‘RSA’’), whereby
FINRA was retained to perform the
market surveillance and enforcement
functions that had previously been
performed by NYSE, through its whollyowned subsidiary NYSE Regulation.
Pursuant to the RSA, FINRA has been
performing Exchange enforcementrelated regulatory services, including
investigating and enforcing violations of
Exchange rules, and conducting
disciplinary proceedings arising out of
such enforcement actions, including
those relating to NYSE-only rules and
against dual members and non-FINRA
members. To facilitate FINRA’s
performance of these functions, the
Exchange amended its rules to provide
that Exchange rules that refer to NYSE
Regulation or its staff, Exchange staff,
and Exchange departments should be
understood to also refer to FINRA staff
and FINRA departments acting on
behalf of the Exchange pursuant to the
RSA.5
In 2013, the Exchange adopted new
disciplinary rules that are, with certain
exceptions, substantially the same as the
text of the FINRA Rule 8000 Series and
Rule 9000 Series, which set forth rules
for conducting investigations and
enforcement actions.6 Those rules were
implemented on July 1, 2013 7 and,
among other things: (1) Identify FINRA’s
Department of Enforcement and
Department of Market Regulation as the
departments permitted to commence
disciplinary proceedings, when
authorized by FINRA’s Office of
Disciplinary Affairs (‘‘ODA’’); (2)
4 NYSE Regulation, a not-for-profit subsidiary of
the Exchange, performs the Exchange’s regulatory
functions pursuant to a delegation agreement. See
note 7 [sic], infra. The Exchange recently filed to,
among other things, terminate the delegation
agreement, establish a regulatory oversight
committee (‘‘ROC’’) as a committee of the board of
directors of the Exchange, and reintegrate its
regulatory and market functions. See Release No.
75288 (June 24, 2015), 80 FR 37316 (June 30, 2015)
(SR–NYSE–2015–27) (the ‘‘NYSE ROC Filing’’). The
amendments proposed herein are consistent with,
and not dependent on approval of, the NYSE ROC
Filing.
5 See Rule 0. Notwithstanding the RSA, the
Exchange retains ultimate legal responsibility for,
and control of, the Exchange’s regulatory functions
performed by FINRA. See Securities Exchange Act
Release No. 62355 (June 22, 2010), 75 FR 36729
(June 28, 2010) (SR–NYSE–2010–46).
6 See Securities Exchange Act Release Nos. 68678
(January 16, 2013), 78 FR 5213 (January 24, 2013)
(SR–NYSE–2013–02), 69045 (March 5, 2013), 78 FR
15394 (March 11, 2013) (SR–NYSE–2013–02), and
69963 (July 10, 2013), 78 FR 42573 (July 16, 2013)
(SR–NYSE–2013–49).
7 See NYSE Information Memorandum 13–8 (May
24, 2013).
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]]>Agencies
[Federal Register Volume 80, Number 163 (Monday, August 24, 2015)]
[Notices]
[Pages 51332-51334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20793]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75717; File No. SR-BYX-2015-35]
Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 11.22 To Describe the Market Data Product BYX Book Viewer
August 18, 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 August 7, 2015, BATS Y-Exchange, Inc. (the ``Exchange'' or
``BYX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend Rule 11.22 to describe a
market data product known as BYX Book Viewer.
The text of the proposed rule change is available at the Exchange's
Web site at www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
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 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 parts 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 add language to Rule 11.22 describing a
market data product known as BYX Book Viewer. The proposal memorializes
in the Exchange's rules a data feed that is currently available through
the Exchange's public Web site free of charge. BYX Book Viewer is a
data feed that disseminates, on a real-time basis, the aggregated two-
side quotations for up to five (5) price levels for all displayed
orders for securities traded on the Exchange and for which the
Exchanges reports quotes under the Consolidated Tape Association
(``CTA'') Plan or the Nasdaq/UTP Plan. BYX Book Viewer also contains
the last ten (10) trades including time of trade, price and share
quantity. BYX Book Viewer is currently available via
www.batstrading.com without charge. The Exchange will file a separate
proposed rule change with the Commission proposing fees to be charged
for certain types of access to BYX Book Viewer as of September 1,
2015.\5\
---------------------------------------------------------------------------
\5\ The Exchange understands that its affiliated exchanges
intend to file identical proposed rule changes to adopt rules and
fees for the Book Viewer data feed with the Commission. The
Exchange's affiliates are EDGA Exchange, Inc., EDGX Exchange, Inc.
and BATS Exchange, Inc.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\6\ in general, and furthers the
objectives of section 6(b)(5) of the Act,\7\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and to protect investors and the public
interest, and that it is not designed to permit unfair discrimination
among customers, brokers, or dealers. This proposal is in keeping with
those principles in that it promotes increased transparency through the
dissemination of BYX Book Viewer. The Exchange also believes this
proposal is consistent with section 6(b)(5) of the Act because it
protects investors and the public interest and promotes just and
equitable principles of trade by providing investors with an
alternative for receiving market data as requested by market data
vendors and purchasers that expressed an interest in exchange-only data
for instances where consolidated data is no longer required to be
purchased and displayed. The proposed rule change would benefit
investors by facilitating their prompt access to real-time depth-of-
book information contained in BYX Book Viewer. The proposed rule change
also removes impediments to and perfect the mechanism of a free and
open market and a national market system by memorializing in the
Exchange's rules a data feed that is currently available through the
Exchange's public Web site free of charge.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange also believes that the proposed rule change is
consistent with section 11(A) of the Act \8\ in that it supports (i)
fair competition among
[[Page 51333]]
brokers and dealers, among exchange markets, and between exchange
markets and markets other than exchange markets and (ii) the
availability to brokers, dealers, and investors of information with
respect to quotations for and transactions in securities. Furthermore,
the proposed rule change is consistent with Rule 603 of Regulation
NMS,\9\ which provides that any national securities exchange that
distributes information with respect to quotations for or transactions
in an NMS stock do so on terms that are not unreasonably
discriminatory. BYX Book Viewer is accessed and subscribed to on a
voluntary basis, in that neither the Exchange nor market data
distributors are required by any rule or regulation to make this data
available. Accordingly, distributors and subscribers can discontinue
use at any time and for any reason.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78k-1.
\9\ See 17 CFR 242.603.
---------------------------------------------------------------------------
In adopting Regulation NMS, the Commission granted self-regulatory
organizations and broker-dealers increased authority and flexibility to
offer new and unique market data to consumers of such data. It was
believed that this authority would expand the amount of data available
to users and consumers of such data and also spur innovation and
competition for the provision of market data. The Exchange believes
that the data products proposed herein are precisely the sort of market
data products that the Commission envisioned when it adopted Regulation
NMS. The Commission concluded that Regulation NMS--by lessening
regulation of the market in proprietary data--would itself further the
Act's goals of facilitating efficiency and competition:
[E]fficiency is promoted when broker-dealers who do not need the
data beyond the prices, sizes, market center identifications of the
NBBO and consolidated last sale information are not required to
receive (and pay for) such data. The Commission also believes that
efficiency is promoted when broker-dealers may choose to receive
(and pay for) additional market data based on their own internal
analysis of the need for such data.\10\
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\10\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (File No. S7-10-04).
By removing ``unnecessary regulatory restrictions'' on the ability
of exchanges to sell their own data, Regulation NMS advanced the goals
of the Act and the principles reflected in its legislative history.
In addition, BYX Book Viewer removes impediments to and perfects
the mechanism of a free and open market and a national market system
because BYX Book Viewer provides investors with alternative market data
and competes with similar market data product currently offered by the
New York Stock Exchange, Inc. (``NYSE'') and the Nasdaq Stock Market
LLC (``Nasdaq'').\11\ The provision of new options for investors to
receive market data was a primary goal of the market data amendments
adopted by Regulation NMS.\12\ BYX Book Viewer is precisely the sort of
market data product that the Commission envisioned when it adopted
Regulation NMS.
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\11\ See Nasdaq Rule 7023(a)(1)(C) (describing Nasdaq TotalView
is a depth-of-book data feed that includes all orders and quotes
from all Nasdaq members displayed in the Nasdaq Market Center as
well as the aggregate size of such orders and quotes at each price
level in the execution functionality of the Nasdaq Market Center).
See also Nasdaq Book Viewer, a description of which is available at
https://data.nasdaq.com/Book Viewer.aspx (last visited July 29,
2015). See NYSE OpenBook available at https://www.nyxdata.com/openbook (last visited July 29m 2015) (providing real-time view of
the NYSE limit order book). See e.g., Securities Exchange Act
Release No. 71775 (March 24, 2014), 79 FR 17627 (March 28, 2014)
(SR-CBOE-2014-021) (Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Related to the CBSX BBO Data Feed and the New
CBSX Book Depth Data Feed).
\12\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, at 37503 (June 29, 2005) (Regulation NMS
Adopting Release).
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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
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The proposal is
not intended to address any competitive issues, but rather to
memorialize in the Exchange's rules a data feed that is currently
available through the Exchange's public Web site free of charge.
Nonetheless, the Exchange believes that the proposal will promote
competition by the Exchange offering a service similar to that offered
by the NYSE and Nasdaq.\13\ Thus, the Exchange believes this proposed
rule change is necessary to permit fair competition among national
securities exchanges. Therefore, the Exchange does not believe the
proposed rule change will result in any burden on competition that is
not necessary or appropriate in furtherance of the purposes of the Act.
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\13\ See supra note 11.
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(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has designated this rule filing as non-controversial
under section 19(b)(3)(A) of the Act \14\ and paragraph (f)(6) of Rule
19b-4 thereunder.\15\ The proposed rule change effects a change that:
(A) Does not significantly affect the protection of investors or the
public interest; (B) does not impose any significant burden on
competition; and (C) by its terms, does not become operative for 30
days after the date of the filing, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest; provided that the self-regulatory organization
has given the Commission written notice of its intent to file the
proposed rule change, along with a brief description and text of the
proposed rule change, at least five business days prior to the date of
filing of the proposed rule change, or such shorter time as designated
by the Commission.\16\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4.
\16\ The Exchange has fulfilled this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (1)
Necessary or appropriate in the public interest; (2) for the protection
of investors; or (3) otherwise in furtherance of the purposes of the
Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal 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 No. SR-BYX-2015-35 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-BYX-2015-35. This file
number
[[Page 51334]]
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 such filing will also be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File No. SR-BYX-2015-35 and should be
submitted on or before September 14, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-20793 Filed 8-21-15; 8:45 am]
BILLING CODE 8011-01-P
