Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to NYSE MKT Trades Market Data Product Offering, 77684-77686 [2015-31441]
Download as PDF
77684
Federal Register / Vol. 80, No. 240 / Tuesday, December 15, 2015 / Notices
Furthermore, the Exchange notes that
routing through BATS Trading is
voluntary. Lastly, the Exchange also
believes that the proposed amendment
is non-discriminatory because it applies
uniformly to all Members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
This proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange does not believe that this
change represents a significant
departure from previous pricing offered
by the Exchange or pricing offered by
the Exchange’s competitors.
Additionally, Members may opt to
disfavor the Exchange’s pricing if they
believe that alternatives offer them
better value. Accordingly, the Exchange
does not believe that the proposed
changes will impair the ability of
Members or competing venues to
maintain their competitive standing in
the financial markets. The Exchange
believes that its proposal to pass
through a fee of $0.0029 per share for
Members’ orders that yield fee code K
would increase intermarket competition
because it offers customers an
alternative means to route to PSX. The
Exchange believes that its proposal
would not burden intramarket
competition because the proposed rate
would apply uniformly to all Members.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
Members or other interested parties.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and paragraph (f) of Rule
19b–4 thereunder.13 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–31444 Filed 12–14–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–
EDGX–2015–58 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–EDGX–2015–58. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–EDGX–
2015–58, and should be submitted on or
before January 5, 2016.
[Release No. 34–76600; File No. SR–
NYSEMKT–2015–101]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to NYSE MKT
Trades Market Data Product Offering
December 9, 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 November
24, 2015, NYSE MKT LLC (‘‘NYSE
MKT’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
NYSE MKT Trades market data product
offering. 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
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 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.
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
12 15
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f).
VerDate Sep<11>2014
17:08 Dec 14, 2015
1 15
Jkt 238001
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
E:\FR\FM\15DEN1.SGM
15DEN1
Federal Register / Vol. 80, No. 240 / Tuesday, December 15, 2015 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
asabaliauskas on DSK5VPTVN1PROD with NOTICES
1. Purpose
The Exchange proposes to amend the
NYSE MKT Trades market data feed
product offering.
NYSE MKT Trades is an NYSE MKTonly last-sale market data feed. NYSE
MKT Trades currently allows vendors,
broker-dealers and others to make
available on a real-time basis the same
last sale information that the Exchange
reports under the Consolidated Tape
Association (‘‘CTA’’) Plan for inclusion
in the CTA Plan’s consolidated data
streams. Specifically, the NYSE MKT
Trades feed includes, for each security
traded on the Exchange, the real-time
last sale price, time and size information
and bid/ask quotations at the time of
each sale and a stock summary message.
The stock summary message updates
every minute and includes NYSE MKT’s
opening price, high price, low price,
closing price, and cumulative volume
for the security.3
The Exchange proposes to remove the
bid/ask information from the NYSE
MKT Trades feed, thereby focusing the
NYSE MKT Trades feed on NYSE MKT
last sale information. This change
would streamline the NYSE MKT
Trades content, as well as align NYSE
MKT Trades content with that of last
sale data feeds offered by other
exchanges.4 The NYSE MKT BBO data
feed includes, and would continue to
include, the best bids and offers for all
securities that are traded on the
Exchange for which NYSE MKT reports
quotes under the Consolidated
Quotation (‘‘CQ’’) Plan for inclusion in
the CQ Plan’s consolidated quotation
information data stream.5 The Exchange
would continue to make NYSE MKT last
sale information available through
NYSE MKT Trades immediately after it
provides last sale information to the
processor under the CTA Plan.
The Exchange expects to offer both
the current NYSE MKT Trades data
product and the proposed NYSE MKT
Trades data product for a limited
transition period. After the transition
period, the Exchange would stop
offering the current NYSE MKT Trades
3 See Securities Exchange Act Release Nos. 62187
(May 27, 2010), 75 FR 31500 (June 3, 2010) (SR–
NYSEAmex–2010–35), 70065 (July 30, 2013), 78 FR
47450 (Aug. 5, 2013) (SR–NYSEMKT–2013–64) and
69273 (April 2, 2013), 78 FR 20969 (April 8, 2013)
(SR–NYSEMKT–2013–30).
4 See NASDAQ Rule 7039 (Nasdaq Last Sale) and
BATS Rule 11.22(g) (BATS Last Sale).
5 See Securities Exchange Act Release No. 72326
(June 5, 2014), 79 FR 33605 (June 11, 2014) (SR–
NYSEMKT–2014–49).
VerDate Sep<11>2014
17:08 Dec 14, 2015
Jkt 238001
data product and offer only the NYSE
MKT Trades data product proposed in
this filing. The Exchange would
announce the transition dates in
advance. There would be no change to
the fees for NYSE MKT Trades in
connection with the proposed changes.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 6 of the Act,
in general, and furthers the objectives of
Section 6(b)(5) 7 of the Act, in particular,
in that it is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in facilitating transactions in securities,
to remove impediments to and perfect
the mechanism of a free and open
market and a national market system
and, in general, to protect investors and
the public interest, and it is not
designed to permit unfair
discrimination among customers,
brokers, or dealers.
The Exchange believes that modifying
the NYSE MKT Trades product to
remove the bid/ask information it
currently includes and to provide only
NYSE MKT last sale information would
streamline the product and clarify the
purpose and use for each of the NYSE
MKT proprietary market data products.
NYSE MKT Trades’ content, as
proposed, would be consistent with that
of last sale data feeds offered by other
exchanges, which similarly offer last
sale market data products that do not
include bid and offer information.8
In addition, the proposal would not
permit unfair discrimination because
the product would be available to all of
the Exchange’s market data vendors and
customers on an equivalent basis.
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 product
modification proposed herein, focusing
the NYSE MKT Trades feed on last sale
data by removing the bid/ask data, is
precisely the sort of market data product
enhancement that the Commission
envisioned when it adopted Regulation
NMS. The Commission concluded that
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
8 See supra note 4.
Frm 00086
Fmt 4703
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 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.9
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.
The Exchange further notes that the
existence of alternatives to the
Exchange’s products, including realtime consolidated data, free delayed
consolidated data, and proprietary data
from other sources, ensures that the
Exchange is not unreasonably
discriminatory because vendors and
subscribers can elect these alternatives.
In addition, the proposal would not
permit unfair discrimination because
the modified product would be
available to all of the Exchange’s
vendors and customers on an equivalent
basis.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The market
for proprietary data products is
currently competitive and inherently
contestable because there is fierce
competition for the inputs necessary to
the creation of proprietary data.
Numerous exchanges compete with
each other for listings, trades, and
market data itself, providing virtually
limitless opportunities for entrepreneurs
who wish to produce and distribute
their own market data. This proprietary
data is produced by each individual
exchange, as well as other entities (such
as internalizing broker-dealers and
various forms of alternative trading
systems, including dark pools and
electronic communication networks), in
a vigorously competitive market. It is
common for market participants to
further and exploit this competition by
sending their order flow and transaction
9 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005) (File
No. S7–10–04).
7 15
PO 00000
77685
Sfmt 4703
E:\FR\FM\15DEN1.SGM
15DEN1
77686
Federal Register / Vol. 80, No. 240 / Tuesday, December 15, 2015 / Notices
reports to multiple markets, rather than
providing them all to a single market.
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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 10 and Rule
19b–4(f)(6) thereunder.11 Because the
proposed rule change does not: (i)
significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
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) 12 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
asabaliauskas on DSK5VPTVN1PROD with NOTICES
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:
10 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give 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. The Exchange
has satisfied this requirement.
12 15 U.S.C. 78s(b)(2)(B).
11 17
VerDate Sep<11>2014
17:08 Dec 14, 2015
Jkt 238001
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–2015–101 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–2015–101. 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 such
filing also will be available for
inspection and copying at the principal
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEMKT–2015–101, and should be
submitted on or before January 5, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–31441 Filed 12–14–15; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76597; File No. SR–EDGX–
2015–60]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change to Rule 19.6, Series of
Options Contracts Open for Trading
December 9, 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 December
2, 2015, EDGX Exchange, Inc.
(‘‘Exchange’’ or ‘‘EDGX’’) 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 Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal for the
Exchange’s equity options platform
(‘‘EDGX Options’’) to amend
Interpretation and Policy .07 (Mini
Options Contracts) to Rule 19.6 (Series
of Options Contracts Open for Trading).
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.
BILLING CODE 8011–01–P
1 15
13 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00087
Fmt 4703
Sfmt 4703
2 17
E:\FR\FM\15DEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
15DEN1
Agencies
[Federal Register Volume 80, Number 240 (Tuesday, December 15, 2015)]
[Notices]
[Pages 77684-77686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-31441]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76600; File No. SR-NYSEMKT-2015-101]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Relating to NYSE MKT
Trades Market Data Product Offering
December 9, 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 November 24, 2015, NYSE MKT LLC (``NYSE MKT'' or the ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 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 NYSE MKT Trades market data
product offering. 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 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 those statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant parts of such
statements.
[[Page 77685]]
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 NYSE MKT Trades market data feed
product offering.
NYSE MKT Trades is an NYSE MKT-only last-sale market data feed.
NYSE MKT Trades currently allows vendors, broker-dealers and others to
make available on a real-time basis the same last sale information that
the Exchange reports under the Consolidated Tape Association (``CTA'')
Plan for inclusion in the CTA Plan's consolidated data streams.
Specifically, the NYSE MKT Trades feed includes, for each security
traded on the Exchange, the real-time last sale price, time and size
information and bid/ask quotations at the time of each sale and a stock
summary message. The stock summary message updates every minute and
includes NYSE MKT's opening price, high price, low price, closing
price, and cumulative volume for the security.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release Nos. 62187 (May 27,
2010), 75 FR 31500 (June 3, 2010) (SR-NYSEAmex-2010-35), 70065 (July
30, 2013), 78 FR 47450 (Aug. 5, 2013) (SR-NYSEMKT-2013-64) and 69273
(April 2, 2013), 78 FR 20969 (April 8, 2013) (SR-NYSEMKT-2013-30).
---------------------------------------------------------------------------
The Exchange proposes to remove the bid/ask information from the
NYSE MKT Trades feed, thereby focusing the NYSE MKT Trades feed on NYSE
MKT last sale information. This change would streamline the NYSE MKT
Trades content, as well as align NYSE MKT Trades content with that of
last sale data feeds offered by other exchanges.\4\ The NYSE MKT BBO
data feed includes, and would continue to include, the best bids and
offers for all securities that are traded on the Exchange for which
NYSE MKT reports quotes under the Consolidated Quotation (``CQ'') Plan
for inclusion in the CQ Plan's consolidated quotation information data
stream.\5\ The Exchange would continue to make NYSE MKT last sale
information available through NYSE MKT Trades immediately after it
provides last sale information to the processor under the CTA Plan.
---------------------------------------------------------------------------
\4\ See NASDAQ Rule 7039 (Nasdaq Last Sale) and BATS Rule
11.22(g) (BATS Last Sale).
\5\ See Securities Exchange Act Release No. 72326 (June 5,
2014), 79 FR 33605 (June 11, 2014) (SR-NYSEMKT-2014-49).
---------------------------------------------------------------------------
The Exchange expects to offer both the current NYSE MKT Trades data
product and the proposed NYSE MKT Trades data product for a limited
transition period. After the transition period, the Exchange would stop
offering the current NYSE MKT Trades data product and offer only the
NYSE MKT Trades data product proposed in this filing. The Exchange
would announce the transition dates in advance. There would be no
change to the fees for NYSE MKT Trades in connection with the proposed
changes.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \6\ of the
Act, in general, and furthers the objectives of Section 6(b)(5) \7\ of
the Act, in particular, in that it is designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest, and it is not designed to permit unfair discrimination
among customers, brokers, or dealers.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that modifying the NYSE MKT Trades product to
remove the bid/ask information it currently includes and to provide
only NYSE MKT last sale information would streamline the product and
clarify the purpose and use for each of the NYSE MKT proprietary market
data products. NYSE MKT Trades' content, as proposed, would be
consistent with that of last sale data feeds offered by other
exchanges, which similarly offer last sale market data products that do
not include bid and offer information.\8\
---------------------------------------------------------------------------
\8\ See supra note 4.
---------------------------------------------------------------------------
In addition, the proposal would not permit unfair discrimination
because the product would be available to all of the Exchange's market
data vendors and customers on an equivalent basis.
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 product modification proposed herein, focusing the NYSE
MKT Trades feed on last sale data by removing the bid/ask data, is
precisely the sort of market data product enhancement 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.\9\
---------------------------------------------------------------------------
\9\ 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.
The Exchange further notes that the existence of alternatives to
the Exchange's products, including real-time consolidated data, free
delayed consolidated data, and proprietary data from other sources,
ensures that the Exchange is not unreasonably discriminatory because
vendors and subscribers can elect these alternatives. In addition, the
proposal would not permit unfair discrimination because the modified
product would be available to all of the Exchange's vendors and
customers on an equivalent basis.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The market for proprietary
data products is currently competitive and inherently contestable
because there is fierce competition for the inputs necessary to the
creation of proprietary data. Numerous exchanges compete with each
other for listings, trades, and market data itself, providing virtually
limitless opportunities for entrepreneurs who wish to produce and
distribute their own market data. This proprietary data is produced by
each individual exchange, as well as other entities (such as
internalizing broker-dealers and various forms of alternative trading
systems, including dark pools and electronic communication networks),
in a vigorously competitive market. It is common for market
participants to further and exploit this competition by sending their
order flow and transaction
[[Page 77686]]
reports to multiple markets, rather than providing them all to a single
market.
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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
Because the proposed rule change does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give 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.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
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) \12\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\12\ 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-2015-101 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-2015-101. 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 such filing also will be available
for inspection and copying at the principal offices of the Exchange.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-NYSEMKT-2015-
101, and should be submitted on or before January 5, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-31441 Filed 12-14-15; 8:45 am]
BILLING CODE 8011-01-P