Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish the NYSE National BBO, NYSE National Trades and NYSE National Integrated Feed Market Data Feeds, 26332-26335 [2018-12110]
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26332
Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Notices
100 F Street NE, Washington, DC
20549–7010 or by email to
tradingandmarkets@sec.gov with the
phrase ‘‘Order Cancelling Transfer
Agent Registration’’ in the subject line.
For the Commission by the Division of
Trading and Markets pursuant to delegated
authority.4
Eduardo A. Aleman,
Assistant Secretary.
Background
Appendix
Section 17A(c)(4)(B) of the Act
provides that if the Commission finds
that any transfer agent registered with
the Commission is no longer in
existence or has ceased to do business
as a transfer agent, the Commission
shall by order cancel that transfer
agent’s registration. On December 22,
2017, the Commission published notice
of its intention to cancel the registration
of certain transfer agents whom it
believed were no longer in existence or
had ceased doing business as transfer
agents.3
In the notice, the Commission
identified 38 such transfer agents and
stated that at any time after January 31,
2018, the Commission intended to issue
an order canceling the registrations of
any or all of the identified transfer
agents. One transfer agent contacted the
Commission to object to the cancellation
of its registration, stating that it had not
ceased doing business as a transfer
agent. The Commission has decided not
to cancel the registration of that transfer
agent. None of the remaining 37
identified transfer agents contacted the
Commission to object to the cancellation
of their registrations.
Accordingly, the Commission is
cancelling the registrations of the 37
transfer agents identified in the
Appendix attached to this Order.
Order
On the basis of the foregoing, the
Commission finds that each of the
transfer agents whose name appears in
the attached Appendix either is no
longer in existence or has ceased doing
business as a transfer agent.
daltland on DSKBBV9HB2PROD with NOTICES
It is therefore ordered pursuant to
Section 17A(c)(4)(B) of the Act that the
registration as a transfer agent of each of
the transfer agents whose name appears
in the attached Appendix be and hereby
is cancelled.
Transfer agent name
AG Transfer Agency LLC .....
Allied Stock Transfer, Inc. ....
AlphaMetrix, LLC ..................
Baron Capital Transfer &
Registrar LLC ....................
Bluechip Equity Inc. DBA
Bluechip Trust Company ..
Cascade Stock Transfer, Inc.
Centerline Affordable Housing Advisors LLC ...............
Chris Lotito ...........................
Clayton Securities Services,
Inc. ....................................
Demiurgic, Inc. ......................
Elite Transfer Corp ...............
EnDevCo, Inc. ......................
First National Bank of
Omaha ..............................
First National Bank of Sioux
Falls ...................................
Fund Dynamics, LLC ............
Hiko Bell Mining & Oil Company ..................................
Holladay Stock Transfer, Inc.
Integrity Stock Transfer ........
Intercontinental Registrar &
Transfer Agency, Inc. ........
Investor Data Services .........
Johnson, Lawrence & Associates .................................
Karrison Compagnie Inc. ......
Life Sciences Research ........
LM Anderson Securities, LLC
Matrix Capital Group Inc. .....
Premier Stock Transfer, LLC
Progressive Transfer, Inc. ....
Quads Trust Company .........
Repository & Related Services, LLC ...........................
Signal Stock Transfer, Inc. ...
Standard Transfer & Trust
Co., Inc. .............................
Superior Stock Transfer, Inc.
Thermal Energy Storage Inc.
U.S. Stock Transfer Corp. ....
U.S. Trust & Transfer Co. ....
Valley Forge Management
Corp ..................................
Wall Street Stock Transfer
Corporation .......................
[Release No. 34–83350; File No. SR–
NYSENAT–2018–09]
Self-Regulatory Organizations; NYSE
National, Inc.; Notice of Filing and
File number
Immediate Effectiveness of Proposed
Rule Change To Establish the NYSE
084–06306 National BBO, NYSE National Trades
084–06171
and NYSE National Integrated Feed
084–06327
Market Data Feeds
084–06440
May 31, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
084–01911 notice is hereby given that on May 18,
084–06197 2018, NYSE National, Inc. (the
‘‘Exchange’’ or ‘‘NYSE National’’) filed
084–05425 with the Securities and Exchange
084–06274 Commission (the ‘‘Commission’’) the
084–06193 proposed rule change as described in
084–06084
Items I and II below, which Items have
been prepared by the self-regulatory
084–06174
organization. The Commission is
084–06228 publishing this notice to solicit
084–06208 comments on the proposed rule change
from interested persons.
084–06173
084–06204
084–05445
084–01822
084–06113
084–01123
084–01425
084–05831
084–06046
084–06094
084–06257
084–06122
084–06518
084–06268
084–05621
084–06500
084–06360
084–05819
084–06121
084–01300
084–06293
084–05663
084–00012
084–06246
[FR Doc. 2018–12157 Filed 6–5–18; 8:45 am]
BILLING CODE P
SECURITIES AND EXCHANGE
COMMISSION
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to establish
the NYSE National BBO (‘‘NYSE
National BBO’’), NYSE National Trades
(‘‘NYSE National Trades’’) and NYSE
National Integrated Feed (‘‘NYSE
National Integrated Feed’’) market data
feeds. The proposed rule change is
available on the Exchange’s website 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.
1 15
3 Id.
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Notices
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 establish
NYSE National BBO, NYSE National
Trades and NYSE National Integrated
Feed (‘‘NYSE National Market Data
Feeds’’).
daltland on DSKBBV9HB2PROD with NOTICES
NYSE National BBO
NYSE National BBO is a NYSE
National-only market data feed that
provides vendors and subscribers on a
real-time basis with the same best-bidand-offer information that NYSE
National reports under the Consolidated
Quotation Plan (‘‘CQ Plan’’) and the
Plan Governing the Collection,
Consolidation, and Dissemination of
Quotation and Transaction Information
for Nasdaq-Listed Securities Traded on
Exchanges on an Unlisted Trading
Privilege Basis (‘‘OTC UTP Plan’’).
NYSE National BBO would include the
best bids and offers (‘‘NYSE National
BBO Information’’) for all securities that
are traded on the Exchange. NYSE
National will make the NYSE National
BBO available over a single data feed,
regardless of the markets on which the
securities are listed.
NYSE National BBO would allow
vendors, broker-dealers, and others
(‘‘NYSE National Vendors’’) to consume
and make available NYSE National BBO
Information on a real-time basis. NYSE
National Vendors may distribute the
NYSE National BBO to both
professional and non-professional
subscribers. The Exchange would make
NYSE National BBO Information
available through the NYSE National
BBO data feed no earlier than it makes
that information available to the
processor under the CQ Plan or the OTC
UTP Plan, as applicable.
NYSE National Trades
NYSE National Trades is a NYSE
National-only market data feed that
provides vendors and subscribers on a
real-time basis with the same last sale
information that NYSE National reports
under the Consolidated Tape
Association Plan (‘‘CTA Plan’’) and the
OTC UTP Plan for inclusion in the
consolidated feeds. NYSE National
Trades would include the real-time last
sale price, time and size information
(‘‘NYSE National Last Sale
Information’’) for all securities that are
traded on the Exchange. NYSE National
will make the NYSE National Trades
available over a single data feed,
regardless of the markets on which the
securities are listed.
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NYSE National Trades would allow
NYSE National Vendors to consume and
make available NYSE National Last Sale
Information on a real-time basis. NYSE
National Vendors may distribute the
NYSE National Trades to both
professional and non-professional
subscribers. The Exchange would make
NYSE National Last Sale Information
available through the NYSE National
Trades data feed no earlier than it makes
that information available to the
processor under the CTA Plan or the
OTC UTP Plan, as applicable. In
addition to the information that the
Exchange provides to the processor,
NYSE National Last Sale Information
will also include a unique sequence
number that the Exchange assigns to
each trade and that allows an investor
to track the context of a trade through
other Exchange market data products.
NYSE National Integrated Feed
NYSE National Integrated Feed is a
NYSE National-only market data feed
that would provide vendors and
subscribers on a real-time basis with a
unified view of events, in sequence, as
they appear on the NYSE National
matching engines. The NYSE National
Integrated Feed would include depth of
book order data, last sale data, and
security status updates (e.g., trade
corrections and trading halts) and stock
summary messages. The stock summary
message would update every minute
and would include NYSE National’s
opening price, high price, low price,
closing price, and cumulative volume
for a security. The NYSE National
Integrated Feed would include
information available to vendors and
subscribers of NYSE National Trades, a
service that would make available NYSE
National last sale information on a realtime basis.
Offering an integrated product
addresses requests received from
vendors and subscribers that would like
to receive the data described above in an
integrated fashion. An integrated data
feed would provide greater efficiencies
and reduce errors for vendors and
subscribers that currently choose to
integrate the data after receiving it from
the Exchange. The Exchange believes
that providing vendors and subscribers
with the option of a market data product
that both integrates existing products
and includes additional market data
would allow vendors and subscribers to
choose the best solution for their
specific businesses.
The Exchange proposes to offer the
NYSE National Market Data Feeds
through the Exchange’s Liquidity Center
Network (‘‘LCN’’), a local area network
in the Exchange’s Mahwah, New Jersey
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26333
data center that is available to users of
the Exchange’s co-location services. The
Exchange would also offer the NYSE
National Market Data Feeds through the
Exchange’s Secure Financial
Transaction Infrastructure (‘‘SFTI’’)
network, through which all other users
and members access the Exchange’s
trading and execution systems and other
proprietary market data products.
At this time, the Exchange does not
intend to charge any fees associated
with the receipt of NYSE National BBO,
NYSE National Trades or NYSE
National Integrated Feed. The Exchange
will submit a proposed rule change to
the Commission should it determine to
charge fees associated with the receipt
of NYSE National BBO, NYSE National
Trades or NYSE National Integrated
Feed. The Exchange will announce the
date that the NYSE National Market
Data Feeds would be available through
a NYSE National Market Data Notice.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act (‘‘Act’’),3 in
general, and furthers the objectives of
Section 6(b)(5) of the Act,4 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. This proposal is in
keeping with those principles in that it
promotes increased transparency
through the dissemination of the NYSE
National Market Data Feeds to those
interested in receiving it.
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
new options for receiving market data as
requested by market data vendors and
purchasers. The proposed rule change
would benefit investors by facilitating
their prompt access to the real-time
information contained in the NYSE
National Market Data Feeds.
In adopting Regulation NMS, the
Commission granted self-regulatory
organizations (‘‘SROs’’) and broker
3 15
4 15
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U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Notices
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 NYSE
National Market Data Feeds are
precisely the sort of market data
products that the Commission
envisioned when it adopted Regulation
NMS. The Commission concluded that
Regulation NMS would itself further the
Act’s goals of facilitating efficiency and
competition:
Efficiency 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.5
The Exchange further notes that the
existence of alternatives to the
Exchange’s product, including real-time
consolidated data, free delayed
consolidated data, and proprietary data
from other sources, as well as the
continued availability of the Exchange’s
separate data feeds, ensures that the
Exchange is not unreasonably
discriminatory because vendors and
subscribers can elect these alternatives
as their individual business cases
warrant.
The NYSE National Market Data
Feeds will help to protect a free and
open market by providing additional
data to the marketplace and by giving
investors greater choices. In addition,
the proposal would not permit unfair
discrimination because the products
will be available to all of the Exchange’s
customers and broker-dealers through
both the LCN and SFTI.
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,6 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.
Because other exchanges already offer
similar products, the Exchange’s
proposed NYSE National Market Data
5 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005)
(Regulation NMS Adopting Release).
6 15 U.S.C. 78f(b)(8).
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Feeds will enhance competition. For
example, NYSE National BBO would
provide an alternative to NYSE Arca
BBO,7 offered by the Exchange’s
affiliate, NYSE Arca, Inc. (‘‘NYSE
Arca’’), Nasdaq Basic,8 offered by The
Nasdaq Stock Market, Inc. (‘‘Nasdaq’’),
and Cboe Top,9 offered by Cboe Global
Markets, Inc. (‘‘Cboe’’). Additionally,
NYSE National Trades would provide
an alternative to NYSE Arca Trades,10
offered by NYSE Arca, Nasdaq Basic,11
offered by Nasdaq, and Cboe Last Sale,12
offered by Cboe. Finally, NYSE National
Integrated Feed would provide an
alternative to NYSE Arca Integrated
Feed,13 offered by NYSE Arca, Nasdaq
TotalView-Itch,14 offered by Nasdaq,
and Cboe Depth,15 offered by Cboe.
The NYSE National Market Data
Feeds provide investors with new
options for receiving market data, which
was a primary goal of the market data
amendments
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.
7 See NYSE Arca BBO, https://www.nyse.com/
market-data/real-time/bbo (provides best bid/ask
quotations for all traded securities).
8 See Nasdaq Basic, https://
www.nasdaqtrader.com/
Trader.aspx?id=nasdaqbasic (provides Best Bid and
Offer and Last Sale Information).
9 See Cboe Top, https://markets.cboe.com/us/
equities/market_data_products/ (provides real-time
top-of-book quotations, matched trade price,
volume and execution time).
10 See NYSE Arca Trades, https://www.nyse.com/
market-data/real-time/trades (provides real-time
Last Sale information for all traded securities).
11 See Nasdaq Basic, https://
www.nasdaqtrader.com/
Trader.aspx?id=nasdaqbasic (provides Best Bid and
Offer and Last Sale Information).
12 See Cboe Last Sale, https://markets.cboe.com/
us/equities/market_data_products/. (provides realtime matched trade price, volume and execution
time).
13 See NYSE Arca Integrated Feed, https://
www.nyse.com/market-data/real-time/integratedfeed (provides a comprehensive order-by-order
view of events in the equities market, including
depth of book, trades, order imbalance data, and
security status messages).
14 See Nasdaq TotalView-ITCH, https://
www.nasdaqtrader.com/Trader.aspx?id=Totalview2
(displays the full order book depth for Nasdaq
market participants and also disseminates the Net
Order Imbalance Indicator (NOII) for the Nasdaq
Opening and Closing Crosses and Nasdaq IPO/Halt
Cross).
15 See Cboe Depth, https://markets.cboe.com/us/
equities/market_data_products/ (provides real-time,
depth-of-book quotations and execution
information).
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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 16 and Rule
19b–4(f)(6) thereunder.17 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;
provided that the SRO 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 the designated by the
Commission, 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.
A proposed rule change filed under
Rule 19b–4(f)(6) 18 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),19 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive both the five day pre-filing
requirement and the 30-day operative
delay so that the proposal may become
operative immediately upon filing. The
Exchange stated its belief such waivers
would be consistent with the protection
of investors and the public interest
because the waiver of the pre-filing
requirement and the operative delay
would allow the Exchange to provide
the NYSE National Market Data Feeds
immediately upon launch of NYSE
National. The Commission grants the
Exchange’s request for waivers of the
pre-filing requirement and the operative
delay 20 because the waivers would
permit the Exchange to begin offering its
proprietary market data products, which
would be comparable to those offered by
other exchanges, to interested market
16 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6).
19 17 CFR 240.19b–4(f)(6)(iii).
20 In considering the Exchange’s request to waive
the requirement of the 30-day operative delay, the
Commission has considered, in addition to the
protection of investors, the impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
17 17
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Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Notices
participants concurrent with the relaunch of 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) of the Act 21 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:
daltland on DSKBBV9HB2PROD with NOTICES
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSENAT–2018–09 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–NYSENAT–2018–09. 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 website (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 website 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
21 15
U.S.C. 78s(b)(2)(B).
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17:35 Jun 05, 2018
Jkt 244001
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSENAT–2018–09 and
should be submitted on or before June
27, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–12110 Filed 6–5–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83356; File No. SR–NYSE–
2018–25]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
7.37 and Rule 17 With Respect to NYSE
National’s Reopening of Trading and
Reactivating Connection to the
Securities Information Processors
May 31, 2018.
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 May 18,
2018, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to: (1) Amend
Rule 7.37 to specify in Exchange rules
the Exchange’s use of data feeds from
NYSE National, Inc. (‘‘NYSE National’’)
for order handling and execution, order
routing, and regulatory compliance; and
(2) amend Rule 17 to reflect that
22 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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26335
Archipelago Securities LLC (‘‘Arca
Securities’’) would function as a routing
broker for the Exchange’s affiliate, NYSE
National. The proposed rule change is
available on the Exchange’s website 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to update and
amend the table in Rule 7.37 that sets
forth on a market-by-market basis the
specific network processor and
proprietary data feeds that the Exchange
utilizes for the handling, execution and
routing of orders, and for performing the
regulatory compliance checks related to
each of those functions. Specifically, the
table would be amended to include
NYSE National, which intends to
reopen trading and reactivate its
connections to the securities
information processors (‘‘SIPs’’). To
reflect that, the Exchange proposes to
amend Rule 7.37 to specify which data
feeds the Exchange would use for NYSE
National. As proposed, the Exchange
would use the direct data feeds for
NYSE National and would use the SIP
data feeds as a secondary source.
Additionally, the Exchange proposes
to amend Rule 17 to reflect that Arca
Securities would function as a routing
broker for the Exchange’s affiliate, NYSE
National. Specifically, the Exchange
proposes to amend Rule 17(c)(2)(A) and
(B) to reference NYSE National as an
affiliate of the Exchange for the
purposes of the inbound routing
function performed by Arca Securities.
The proposed rule change would
provide more clarity and transparency
to all the functions that Arca Securities
performs on behalf of the Exchange and
its affiliates, which now includes NYSE
E:\FR\FM\06JNN1.SGM
06JNN1
]]>Agencies
[Federal Register Volume 83, Number 109 (Wednesday, June 6, 2018)]
[Notices]
[Pages 26332-26335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12110]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83350; File No. SR-NYSENAT-2018-09]
Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Establish
the NYSE National BBO, NYSE National Trades and NYSE National
Integrated Feed Market Data Feeds
May 31, 2018.
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 May 18, 2018, NYSE National, Inc. (the ``Exchange'' or ``NYSE
National'') 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. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to establish the NYSE National BBO (``NYSE
National BBO''), NYSE National Trades (``NYSE National Trades'') and
NYSE National Integrated Feed (``NYSE National Integrated Feed'')
market data feeds. The proposed rule change is available on the
Exchange's website 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.
[[Page 26333]]
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 establish NYSE National BBO, NYSE National
Trades and NYSE National Integrated Feed (``NYSE National Market Data
Feeds'').
NYSE National BBO
NYSE National BBO is a NYSE National-only market data feed that
provides vendors and subscribers on a real-time basis with the same
best-bid-and-offer information that NYSE National reports under the
Consolidated Quotation Plan (``CQ Plan'') and the Plan Governing the
Collection, Consolidation, and Dissemination of Quotation and
Transaction Information for Nasdaq-Listed Securities Traded on
Exchanges on an Unlisted Trading Privilege Basis (``OTC UTP Plan'').
NYSE National BBO would include the best bids and offers (``NYSE
National BBO Information'') for all securities that are traded on the
Exchange. NYSE National will make the NYSE National BBO available over
a single data feed, regardless of the markets on which the securities
are listed.
NYSE National BBO would allow vendors, broker-dealers, and others
(``NYSE National Vendors'') to consume and make available NYSE National
BBO Information on a real-time basis. NYSE National Vendors may
distribute the NYSE National BBO to both professional and non-
professional subscribers. The Exchange would make NYSE National BBO
Information available through the NYSE National BBO data feed no
earlier than it makes that information available to the processor under
the CQ Plan or the OTC UTP Plan, as applicable.
NYSE National Trades
NYSE National Trades is a NYSE National-only market data feed that
provides vendors and subscribers on a real-time basis with the same
last sale information that NYSE National reports under the Consolidated
Tape Association Plan (``CTA Plan'') and the OTC UTP Plan for inclusion
in the consolidated feeds. NYSE National Trades would include the real-
time last sale price, time and size information (``NYSE National Last
Sale Information'') for all securities that are traded on the Exchange.
NYSE National will make the NYSE National Trades available over a
single data feed, regardless of the markets on which the securities are
listed.
NYSE National Trades would allow NYSE National Vendors to consume
and make available NYSE National Last Sale Information on a real-time
basis. NYSE National Vendors may distribute the NYSE National Trades to
both professional and non-professional subscribers. The Exchange would
make NYSE National Last Sale Information available through the NYSE
National Trades data feed no earlier than it makes that information
available to the processor under the CTA Plan or the OTC UTP Plan, as
applicable. In addition to the information that the Exchange provides
to the processor, NYSE National Last Sale Information will also include
a unique sequence number that the Exchange assigns to each trade and
that allows an investor to track the context of a trade through other
Exchange market data products.
NYSE National Integrated Feed
NYSE National Integrated Feed is a NYSE National-only market data
feed that would provide vendors and subscribers on a real-time basis
with a unified view of events, in sequence, as they appear on the NYSE
National matching engines. The NYSE National Integrated Feed would
include depth of book order data, last sale data, and security status
updates (e.g., trade corrections and trading halts) and stock summary
messages. The stock summary message would update every minute and would
include NYSE National's opening price, high price, low price, closing
price, and cumulative volume for a security. The NYSE National
Integrated Feed would include information available to vendors and
subscribers of NYSE National Trades, a service that would make
available NYSE National last sale information on a real-time basis.
Offering an integrated product addresses requests received from
vendors and subscribers that would like to receive the data described
above in an integrated fashion. An integrated data feed would provide
greater efficiencies and reduce errors for vendors and subscribers that
currently choose to integrate the data after receiving it from the
Exchange. The Exchange believes that providing vendors and subscribers
with the option of a market data product that both integrates existing
products and includes additional market data would allow vendors and
subscribers to choose the best solution for their specific businesses.
The Exchange proposes to offer the NYSE National Market Data Feeds
through the Exchange's Liquidity Center Network (``LCN''), a local area
network in the Exchange's Mahwah, New Jersey data center that is
available to users of the Exchange's co-location services. The Exchange
would also offer the NYSE National Market Data Feeds through the
Exchange's Secure Financial Transaction Infrastructure (``SFTI'')
network, through which all other users and members access the
Exchange's trading and execution systems and other proprietary market
data products.
At this time, the Exchange does not intend to charge any fees
associated with the receipt of NYSE National BBO, NYSE National Trades
or NYSE National Integrated Feed. The Exchange will submit a proposed
rule change to the Commission should it determine to charge fees
associated with the receipt of NYSE National BBO, NYSE National Trades
or NYSE National Integrated Feed. The Exchange will announce the date
that the NYSE National Market Data Feeds would be available through a
NYSE National Market Data Notice.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act (``Act''),\3\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\4\ 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. This proposal is in keeping with those principles in that it
promotes increased transparency through the dissemination of the NYSE
National Market Data Feeds to those interested in receiving it.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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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 new options for receiving market data as
requested by market data vendors and purchasers. The proposed rule
change would benefit investors by facilitating their prompt access to
the real-time information contained in the NYSE National Market Data
Feeds.
In adopting Regulation NMS, the Commission granted self-regulatory
organizations (``SROs'') and broker
[[Page 26334]]
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 NYSE National
Market Data Feeds are precisely the sort of market data products that
the Commission envisioned when it adopted Regulation NMS. The
Commission concluded that Regulation NMS would itself further the Act's
goals of facilitating efficiency and competition:
Efficiency 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.\5\
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\5\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (Regulation NMS Adopting
Release).
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The Exchange further notes that the existence of alternatives to
the Exchange's product, including real-time consolidated data, free
delayed consolidated data, and proprietary data from other sources, as
well as the continued availability of the Exchange's separate data
feeds, ensures that the Exchange is not unreasonably discriminatory
because vendors and subscribers can elect these alternatives as their
individual business cases warrant.
The NYSE National Market Data Feeds will help to protect a free and
open market by providing additional data to the marketplace and by
giving investors greater choices. In addition, the proposal would not
permit unfair discrimination because the products will be available to
all of the Exchange's customers and broker-dealers through both the LCN
and SFTI.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\6\ 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. Because other exchanges already offer similar
products, the Exchange's proposed NYSE National Market Data Feeds will
enhance competition. For example, NYSE National BBO would provide an
alternative to NYSE Arca BBO,\7\ offered by the Exchange's affiliate,
NYSE Arca, Inc. (``NYSE Arca''), Nasdaq Basic,\8\ offered by The Nasdaq
Stock Market, Inc. (``Nasdaq''), and Cboe Top,\9\ offered by Cboe
Global Markets, Inc. (``Cboe''). Additionally, NYSE National Trades
would provide an alternative to NYSE Arca Trades,\10\ offered by NYSE
Arca, Nasdaq Basic,\11\ offered by Nasdaq, and Cboe Last Sale,\12\
offered by Cboe. Finally, NYSE National Integrated Feed would provide
an alternative to NYSE Arca Integrated Feed,\13\ offered by NYSE Arca,
Nasdaq TotalView-Itch,\14\ offered by Nasdaq, and Cboe Depth,\15\
offered by Cboe.
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\6\ 15 U.S.C. 78f(b)(8).
\7\ See NYSE Arca BBO, https://www.nyse.com/market-data/real-time/bbo (provides best bid/ask quotations for all traded
securities).
\8\ See Nasdaq Basic, https://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic (provides Best Bid and Offer and Last
Sale Information).
\9\ See Cboe Top, https://markets.cboe.com/us/equities/market_data_products/ (provides real-time top-of-book quotations,
matched trade price, volume and execution time).
\10\ See NYSE Arca Trades, https://www.nyse.com/market-data/real-time/trades (provides real-time Last Sale information for all
traded securities).
\11\ See Nasdaq Basic, https://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic (provides Best Bid and Offer and Last
Sale Information).
\12\ See Cboe Last Sale, https://markets.cboe.com/us/equities/market_data_products/. (provides real-time matched trade price,
volume and execution time).
\13\ See NYSE Arca Integrated Feed, https://www.nyse.com/market-data/real-time/integrated-feed (provides a comprehensive order-by-
order view of events in the equities market, including depth of
book, trades, order imbalance data, and security status messages).
\14\ See Nasdaq TotalView-ITCH, https://www.nasdaqtrader.com/Trader.aspx?id=Totalview2 (displays the full order book depth for
Nasdaq market participants and also disseminates the Net Order
Imbalance Indicator (NOII) for the Nasdaq Opening and Closing
Crosses and Nasdaq IPO/Halt Cross).
\15\ See Cboe Depth, https://markets.cboe.com/us/equities/market_data_products/ (provides real-time, depth-of-book quotations
and execution information).
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The NYSE National Market Data Feeds provide investors with new
options for receiving market data, which was a primary goal of the
market data amendments
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 \16\ and Rule 19b-4(f)(6) thereunder.\17\
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; provided that the SRO 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 the designated by the
Commission, 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.
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\16\ 15 U.S.C. 78s(b)(3)(A)(iii).
\17\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \18\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\19\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive both the five day pre-filing requirement and
the 30-day operative delay so that the proposal may become operative
immediately upon filing. The Exchange stated its belief such waivers
would be consistent with the protection of investors and the public
interest because the waiver of the pre-filing requirement and the
operative delay would allow the Exchange to provide the NYSE National
Market Data Feeds immediately upon launch of NYSE National. The
Commission grants the Exchange's request for waivers of the pre-filing
requirement and the operative delay \20\ because the waivers would
permit the Exchange to begin offering its proprietary market data
products, which would be comparable to those offered by other
exchanges, to interested market
[[Page 26335]]
participants concurrent with the re-launch of the Exchange.
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\18\ 17 CFR 240.19b-4(f)(6).
\19\ 17 CFR 240.19b-4(f)(6)(iii).
\20\ In considering the Exchange's request to waive the
requirement of the 30-day operative delay, the Commission has
considered, in addition to the protection of investors, the impact
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) of the Act \21\ to determine whether the proposed
rule change should be approved or disapproved.
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\21\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSENAT-2018-09 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-NYSENAT-2018-09. 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 website (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 website 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSENAT-2018-09 and should be submitted
on or before June 27, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12110 Filed 6-5-18; 8:45 am]
BILLING CODE 8011-01-P
