Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish the NYSE Chicago BBO, NYSE Chicago Trades and NYSE Chicago Integrated Feed Market Data Feeds, 57904-57908 [2019-23546]
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Federal Register / Vol. 84, No. 209 / Tuesday, October 29, 2019 / Notices
plans to submit this collection of
information to the Office of
Management and Budget for extension
and approval.
Rule 0–4 (17 CFR 275.0–4) under the
Investment Advisers Act of 1940 (‘‘Act’’
or ‘‘Advisers Act’’) (15 U.S.C. 80b–1 et
seq.) entitled ‘‘General Requirements of
Papers and Applications,’’ prescribes
general instructions for filing an
application seeking exemptive relief
with the Commission. Rule 0–4
currently requires that every application
for an Order for which a form is not
specifically prescribed and which is
executed by a corporation, partnership
or other company and filed with the
Commission contain a statement of the
applicable provisions of the articles of
incorporation, bylaws or similar
documents, relating to the right of the
person signing and filing such
application to take such action on behalf
of the applicant, and a statement that all
such requirements have been complied
with and that the person signing and
filing the application is fully authorized
to do so. If such authorization is
dependent on resolutions of
stockholders, directors, or other bodies,
such resolutions must be attached as an
exhibit to or quoted in the application.
Any amendment to the application must
contain a similar statement as to the
applicability of the original statement of
authorization. When any application or
amendment is signed by an agent or
attorney, rule 0–4 requires that the
power of attorney evidencing his
authority to sign shall state the basis for
the agent’s authority and shall be filed
with the Commission. Every application
subject to rule 0–4 must be verified by
the person executing the application by
providing a notarized signature in
substantially the form specified in the
rule. Each application subject to rule 0–
4 must state the reasons why the
applicant is deemed to be entitled to the
action requested with a reference to the
provisions of the Act and rules
thereunder, the name and address of
each applicant, and the name and
address of any person to whom any
questions regarding the application
should be directed. Rule 0–4 requires
that a proposed notice of the proceeding
initiated by the filing of the application
accompany each application as an
exhibit and, if necessary, be modified to
reflect any amendment to the
application.
The requirements of rule 0–4 are
designed to provide Commission staff
with the necessary information to assess
whether granting the Orders of
exemption are necessary and
appropriate in the public interest and
consistent with the protection of
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investors and the intended purposes of
the Act.
Applicants for Orders under the
Advisers Act can include registered
investment advisers, affiliated persons
of registered investment advisers, and
entities seeking to avoid investment
adviser status, among others.
Commission staff estimates that it
receives up to 4 applications per year
submitted under rule 0–4 of the Act
seeking relief from various provisions of
the Advisers Act and, in addition, up to
3 applications per year submitted under
Advisers Act rule 206(4)–5, which
addresses certain ‘‘pay to play’’
practices and also provides the
Commission the authority to grant
applications seeking relief from certain
of the rule’s restrictions. Although each
application typically is submitted on
behalf of multiple applicants, the
applicants in the vast majority of cases
are related entities and are treated as a
single respondent for purposes of this
analysis. Most of the work of preparing
an application is performed by outside
counsel and, therefore, imposes no
hourly burden on respondents. The cost
outside counsel charges applicants
depends on the complexity of the issues
covered by the application and the time
required. Based on conversations with
applicants and attorneys, the cost for
applications ranges from approximately
$13,600 for preparing a wellprecedented, routine (or otherwise less
involved) application to approximately
$212,800 to prepare a complex or novel
application. We estimate that the
Commission receives 1 of the most timeconsuming applications annually, 3
applications of medium difficulty, and 3
of the least difficult applications subject
to rule 0–4.1 This distribution gives a
total estimated annual cost burden to
applicants of filing all applications of
$392,500 [(1 × $212,800) + (3 × $46,300)
+ (3 × $13,600)]. The estimate of annual
cost burden is made solely for the
purposes of the Paperwork Reduction
Act, and is not derived from a
comprehensive or even representative
survey or study of the costs of
Commission rules and forms.
The requirements of this collection of
information are required to obtain or
retain benefits. Responses will not be
kept confidential. An agency may not
conduct or sponsor, and a person is not
required to respond to a collection of
information unless it displays a
currently valid control number.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Candace
Kenner, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
Dated: October 24, 2019.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–23600 Filed 10–28–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87389; File No. SR–
NYSECHX–2019–15]
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Establish the NYSE
Chicago BBO, NYSE Chicago Trades
and NYSE Chicago Integrated Feed
Market Data Feeds
October 23, 2019.
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 October
18, 2019, NYSE Chicago, Inc. (‘‘NYSE
Chicago’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II.A, and II.C below, which
Items have been prepared by the
Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
1 15
1 The
estimated 3 least difficult applications
include the estimated 3 applications per year
submitted under Advisers Act rule 206(4)–5.
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
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Federal Register / Vol. 84, No. 209 / Tuesday, October 29, 2019 / Notices
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 establish
the NYSE Chicago BBO (‘‘NYSE Chicago
BBO’’), NYSE Chicago Trades (‘‘NYSE
Chicago Trades’’) and NYSE Chicago
Integrated Feed (‘‘NYSE Chicago
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 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 establish
NYSE Chicago BBO, NYSE Chicago
Trades and NYSE Chicago Integrated
Feed (‘‘NYSE Chicago Market Data
Feeds’’). The Exchange recently got
approval to decommission the Book
Feed market data product when it
transitions to the Pillar trading
platform.5 As proposed, once the
Exchange transitions to the Pillar
trading platform, it will offer the NYSE
Chicago Market Data Feeds in lieu of the
current Book Feed market data product.
The Exchange believes that utilizing the
standardized Pillar market data feeds
5 See Securities Exchange Act Release No. 86709
(August 20, 2019), 84 FR 44654 (August 20, 2019)
(SR–NYSECHX–2019–08) (Notice proposing trading
rules to support the transition of trading to the
Pillar trading platform, including proposing to
delete Article 4, Rule 1, which currently describes
the Book Feed, because it will not be offered once
the Exchange transitions to Pillar); see also
Securities Exchange Act Release No. 87264 (October
9, 2019) (SR–NYSECHX–2019–08) (Notice of Filing
of Amendment No. 1 and Order Granting
Accelerated Approval of a Proposed Rule Change,
as Modified by Amendment No. 1, to Add Rules to
Support the Transition of Trading to the Pillar
Trading Platform).
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across NYSE exchanges would create
efficiencies for customer feed handlers.
The Exchange believes that the
proposed NYSE Chicago Market Data
Feeds will provide subscribers of the
Book Feed market data product with the
same scope of Exchange information
once the Exchange transitions to Pillar,
but with greater optionality. Subscribers
that would like to continue to receive
both order data (including depth of
book) and last-sale data would be able
to replace Book Feed with NYSE
Chicago Integrated and would not need
to separately subscribe to either NYSE
Chicago BBO or NYSE Chicago Trades.
Subscribers that do not need as much
data could opt instead to subscribe to
only NYSE Chicago BBO or NYSE
Chicago Trades. In anticipation of the
transition to the Pillar trading system,
the Exchange has provided notice of the
availability of the proposed market data
products and related testing
opportunities.6
NYSE Chicago BBO
NYSE Chicago BBO is a NYSE
Chicago-only market data feed that
would provide vendors and subscribers
on a real-time basis with the same bestbid-and-offer information that NYSE
Chicago 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 (‘‘UTP Plan’’). NYSE
Chicago BBO would include the best
bids and offers (‘‘NYSE Chicago BBO
Information’’) for all securities that are
traded on the Exchange. NYSE Chicago
will make the NYSE Chicago BBO
available over a single datafeed,
regardless of the markets on which the
securities are listed.
NYSE Chicago BBO would allow
vendors, broker-dealers, and others
(‘‘NYSE Chicago Vendors’’) to consume
and make available NYSE Chicago BBO
Information on a real-time basis. NYSE
Chicago Vendors may distribute the
NYSE Chicago BBO to both professional
and non-professional subscribers. The
Exchange would make NYSE Chicago
BBO Information available through the
NYSE Chicago BBO datafeed no earlier
6 On August 16, 2019, the Exchange provided
notice of the proposed NYSE Chicago Market Data
Feeds, including that such feeds would be available
to customers in shadow, i.e., for testing, on
September 16, 2019. See Trader Update available
here: https://www.nyse.com/trader-update/
history#110000144335. See also additional Trader
Updates about the feeds, available here: https://
www.nyse.com/trader-update/
history#110000137761; and https://www.nyse.com/
trader-update/history#110000154859.
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than it makes that information available
to the processor under the CQ Plan or
the UTP Plan, as applicable.
NYSE Chicago Trades
NYSE Chicago Trades is a NYSE
Chicago-only market data feed that
would provide vendors and subscribers
on a real-time basis with the same last
sale information that NYSE Chicago
reports under the Consolidated Tape
Association Plan (‘‘CTA Plan’’) and the
UTP Plan for inclusion in the
consolidated feeds. NYSE Chicago
Trades would include the real-time last
sale price, time and size information
(‘‘NYSE Chicago Last Sale Information’’)
for all securities that are traded on the
Exchange. NYSE Chicago will make the
NYSE Chicago Trades available over a
single datafeed, regardless of the
markets on which the securities are
listed.
NYSE Chicago Trades would allow
NYSE Chicago Vendors to consume and
make available NYSE Chicago Last Sale
Information on a real-time basis. NYSE
Chicago Vendors may distribute the
NYSE Chicago Trades to both
professional and non-professional
subscribers. The Exchange would make
NYSE Chicago Last Sale Information
available through the NYSE Chicago
Trades datafeed no earlier than it makes
that information available to the
processor under the CTA Plan or the
UTP Plan, as applicable. In addition to
the information that the Exchange
provides to the processor, NYSE
Chicago 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 Chicago Integrated Feed
NYSE Chicago Integrated Feed is a
NYSE Chicago-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 Chicago
matching engines. The NYSE Chicago
Integrated Feed would include both top
of book and 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 the Exchange’s aggregation of
NYSE Chicago’s opening price, high
price, low price, closing price, and the
cumulative volume for a security, which
information is available to vendors and
subscribers to calculate on their own
should they so choose. The NYSE
Chicago Integrated Feed would include
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information available to vendors and
subscribers of both NYSE Chicago BBO
and NYSE Chicago Trades, as described
above.
As described in Article 4, Rule 1, the
current Book Feed allows a subscriber to
view all individual Participant orders
displayed in the Matching System,
including the size and price associated
with such order and the trade data for
executions that occur within the
Matching System. When the Exchange
transitions to Pillar, current subscribers
to the Book Feed will be able to obtain
the same scope of information via the
proposed NYSE Chicago Integrated
Feed. Accordingly, after the transition to
Pillar, subscribers of Book Feed would
still need only one data product to
satisfy their data needs. The Exchange
proposes to offer NYSE Chicago BBO
and NYSE Chicago Trades to provide
additional optionality to data
subscribers that may not need the scope
of data included in NYSE Chicago
Integrated.
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
connectivity to the NYSE Chicago
Market Data Feeds over the Liquidity
Center Network and IP network, the
local area networks available to users of
the Exchange’s co-location services in
the Mahwah, New Jersey data center.
The Exchange would also offer
connectivity to the NYSE Chicago
Market Data Feeds over the ICE Global
Network, through which all other users
and members access the Exchange’s
trading and execution systems and other
proprietary market data products. In
addition, the proposal would not permit
unfair discrimination because the
products will be available to all of the
Exchange’s customers and brokerdealers.
At this time, the Exchange does not
intend to charge any fees associated
with the receipt of NYSE Chicago BBO,
NYSE Chicago Trades or NYSE Chicago
Integrated Feed. The Exchange will
submit a proposed rule change should it
determine to charge fees associated with
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the receipt of NYSE Chicago BBO, NYSE
Chicago Trades or NYSE Chicago
Integrated Feed. Accordingly,
subscribers of the current Book Feed
product, which is also not subject to any
fees, would not be subject to any
additional fees in order to receive any
of the proposed NYSE Chicago Market
Data Feeds.
Subject to effectiveness of proposed
rule changes, the NYSE Chicago Market
Data Feeds will be available when the
Exchange transitions to the Pillar
trading platform.7
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) 8 of the Act (‘‘Act’’), in
general, and furthers the objectives of
Section 6(b)(5) 9 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. This proposal is in
keeping with those principles in that it
promotes increased transparency
through the dissemination of the NYSE
Chicago 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
Chicago Market Data Feeds. The
Exchange further believes that the
proposed NYSE Chicago Market Data
Feeds would remove impediments to
and perfect the mechanism of a free and
open market and a national market
system because once the Exchange
transitions to the Pillar trading platform,
current subscribers to the Book Feed
7 The Exchange has announced that, subject to
rule approvals, the Exchange will transition to
trading on Pillar on November 4, 2019. See Trader
Update, available here: https://www.nyse.com/
publicdocs/nyse/notifications/trader-update/
NYSEChicago_Migration_update_9.4.pdf.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
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market data product would be able to
obtain the same level of data from NYSE
Chicago Integrated without incurring
any new fees.
In adopting Regulation NMS, the
Commission granted self-regulatory
organizations (‘‘SROs’’) 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 NYSE
Chicago 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.10
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 Chicago 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,11 the Exchange does not believe
that the proposed rule change will
impose any burden on competition that
is not necessary or appropriate in
10 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005)
(Regulation NMS Adopting Release).
11 15 U.S.C. 78f(b)(8).
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furtherance of the purposes of the Act.
Because other exchanges already offer
similar products, the Exchange’s
proposed NYSE Chicago Market Data
Feeds will enhance competition. For
example, NYSE Chicago BBO would
provide an alternative to NYSE Arca
BBO,12 offered by the Exchange’s
affiliate, Arca, Inc. (‘‘NYSE Arca’’),
Nasdaq Basic,13 offered by The Nasdaq
Stock Market, Inc. (‘‘Nasdaq’’), and Cboe
Top,14 offered by Cboe Global Markets,
Inc. (‘‘Cboe’’). Additionally, NYSE
Chicago Trades would provide an
alternative to NYSE Arca Trades,15
offered by NYSE Arca, Nasdaq Basic,16
offered by Nasdaq, and Cboe Last Sale,17
offered by Cboe. Finally, NYSE Chicago
Integrated Feed would provide an
alternative to NYSE Arca Integrated
Feed,18 offered by NYSE Arca, Nasdaq
TotalView-Itch,19 offered by Nasdaq,
and Cboe Depth,20 offered by Cboe.
The NYSE Chicago Market Data Feeds
provide investors with new options for
receiving market data, which was a
primary goal of the market data
amendments adopted by Regulation
NMS.21
12 See NYSE Arca BBO, https://www.nyse.com/
market-data/real-time/bbo (provides best bid/ask
quotations for all traded securities).
13 See Nasdaq Basic, https://
www.nasdaqtrader.com/
Trader.aspx?id=nasdaqbasic (provides Best Bid and
Offer and Last Sale Information).
14 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).
15 See NYSE Arca Trades, https://www.nyse.com/
market-data/real-time/trades (provides real-time
Last Sale information for all traded securities).
16 See Nasdaq Basic, https://
www.nasdaqtrader.com/
Trader.aspx?id=nasdaqbasic (provides Best Bid and
Offer and Last Sale Information).
17 See Cboe Last Sale, https://markets.cboe.com/
us/equities/market_data_products/ (provides realtime matched trade price, volume and execution
time).
18 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).
19 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).
20 See Cboe Depth, https://markets.cboe.com/us/
equities/market_data_products/ (provides real-time,
depth-of-book quotations and execution
information).
21 See supra note 6 [sic], at 37503.
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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
Because the foregoing 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 for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 22 and Rule 19b–
4(f)(6) thereunder.23
A proposed rule change filed
pursuant to Rule 19b-4(f)(6) under the
Act 24 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 25
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has
requested that the Commission waive
the 30-day operative delay so that the
proposed rule change may become
operative upon filing. The Exchange
asserts that waiver of the operative
delay would be consistent with the
protection of investors and the public
interest because it would allow the
Exchange to provide the NYSE Chicago
Market Data Feeds when it migrates to
the Pillar platform. The Exchange notes
that it has previously announced that,
subject to rule approvals, it will
transition to Pillar on November 4,
2019. The Exchange will provide the
NYSE Chicago Market Data Feeds free of
charge and they are comparable to feeds
provided by other national securities
exchanges.26 Therefore, the Commission
believes that waiver of the 30-day
operative delay is consistent with the
protection of investors and the public
interest. Accordingly, the Commission
hereby waives the operative delay and
22 15
U.S.C. 78s(b)(3)(A).
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.
24 17 CFR 240.19b–4(f)(6).
25 17 CFR 240.19b–4(f)(6)(iii).
26 See supra Section II.B.
23 17
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57907
designates the proposed rule change
operative upon filing.27
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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSECHX–2019–15 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–NYSECHX–2019–15. 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
27 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
E:\FR\FM\29OCN1.SGM
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57908
Federal Register / Vol. 84, No. 209 / Tuesday, October 29, 2019 / Notices
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–NYSECHX–2019–15,
andshould be submitted on or before
November 19, 2019.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
10, 2019, Nasdaq ISE, LLC (‘‘ISE’’ or
‘‘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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.28
Jill M. Peterson,
Assistant Secretary.
The Exchange proposes to amend the
Exchange’s Market Maker Plus program
under Options 7, Section 3.
The text of the proposed rule change
is available on the Exchange’s website at
https://ise.cchwallstreet.com/, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
[FR Doc. 2019–23546 Filed 10–28–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–87390; File No. SR–ISE–
2019–26]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Market
Maker Plus Program
October 23, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend the qualifications for
Market Makers to achieving Market
Maker Plus status.
The Exchange initially filed the
proposed pricing changes on October 1,
2019 (SR–ISE–2019–25). On October 10,
2019, the Exchange withdrew that filing
and submitted this filing.
As set forth in Section 3 of the Pricing
Schedule, the Exchange operates a
Market Maker Plus program for regular
orders in Select Symbols 3 that provides
the below tiered rebates to Market
Makers 4 based on time spent quoting at
the National Best Bid or National Best
Offer (‘‘NBBO’’). This program is
designed to reward Market Makers that
contribute to market quality by
maintaining tight markets in Select
Symbols.
SELECT SYMBOLS OTHER THAN SPY, QQQ, IWM, AMZN, FB, AND NVDA
Market Maker Plus tier (specified percentage)
Maker rebate
Tier 1 (80% to less than 85%) ............................................................................................................................................................
Tier 2 (85% to less than 95%) ............................................................................................................................................................
Tier 3 (95% or greater) ........................................................................................................................................................................
($0.15)
(0.18)
(0.22)
SPY, QQQ, AND IWM
Regular
Maker rebate
Market Maker Plus tier (specified percentage)
Tier
Tier
Tier
Tier
1
2
3
4
(70%
(80%
(85%
(90%
to less than 80%) ................................................................................................................................
to less than 85%) ................................................................................................................................
to less than 90%) ................................................................................................................................
or greater) ............................................................................................................................................
28 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 ‘‘Select Symbols’’ are options overlying all
symbols listed on the Nasdaq ISE that are in the
Penny Pilot Program.
4 The term ‘‘Market Makers’’ refers to
‘‘Competitive Market Makers’’ and ‘‘Primary Market
Makers’’ collectively. See Options 1, Section
1(a)(20).
5 To encourage Market Makers to maintain quality
markets in SPY, QQQ, and IWM in particular,
1 15
VerDate Sep<11>2014
17:05 Oct 28, 2019
Jkt 250001
members that maintain tight markets in those
symbols are eligible for higher regular maker rebates
and may also be eligible for linked maker rebates,
as shown in the table above. Specifically, the
following symbols are linked for purposes of the
linked maker rebate: (1) SPY and QQQ, and (2) SPY
and IWM. Market Makers that qualify for Market
Maker Plus Tiers 2–4 above for executions in SPY,
QQQ, or IWM may be eligible for a linked maker
rebate in a linked symbol in addition to the regular
maker rebate for the applicable tier. The linked
maker rebate applies to executions in SPY, QQQ,
or IWM if the Market Maker does not achieve the
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
($0.00)
(0.18)
(0.22)
(0.26)
Linked
Maker rebate 5
N/A
(0.15)
(0.19)
(0.23)
applicable tier in that symbol but achieves the tier
(i.e., any of Market Maker Plus Tiers 2–4) for any
badge/suffix combination in the other linked
symbol, in which case the higher tier achieved
applies to both symbols. If a Market Maker would
qualify for a linked maker rebate in SPY based on
the tier achieved in QQQ and the tier achieved in
IWM then the higher of the two linked maker
rebates will be applied to SPY. The regular maker
rebate will be provided in the symbol that qualifies
the Market Maker for the higher tier based on
percentage of time at the NBBO.
E:\FR\FM\29OCN1.SGM
29OCN1
]]>Agencies
[Federal Register Volume 84, Number 209 (Tuesday, October 29, 2019)]
[Notices]
[Pages 57904-57908]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23546]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87389; File No. SR-NYSECHX-2019-15]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Establish the NYSE Chicago BBO, NYSE Chicago Trades and NYSE Chicago
Integrated Feed Market Data Feeds
October 23, 2019.
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 October 18, 2019, NYSE Chicago, Inc. (``NYSE Chicago'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I,
II.A, and II.C below, which Items have been prepared by the Exchange.
The Exchange filed the proposal as a ``non-controversial'' proposed
rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and
Rule 19b-4(f)(6) thereunder.\4\ The Commission is publishing this
notice to
[[Page 57905]]
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)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to establish the NYSE Chicago BBO (``NYSE
Chicago BBO''), NYSE Chicago Trades (``NYSE Chicago Trades'') and NYSE
Chicago Integrated Feed (``NYSE Chicago 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 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 establish NYSE Chicago BBO, NYSE Chicago
Trades and NYSE Chicago Integrated Feed (``NYSE Chicago Market Data
Feeds''). The Exchange recently got approval to decommission the Book
Feed market data product when it transitions to the Pillar trading
platform.\5\ As proposed, once the Exchange transitions to the Pillar
trading platform, it will offer the NYSE Chicago Market Data Feeds in
lieu of the current Book Feed market data product. The Exchange
believes that utilizing the standardized Pillar market data feeds
across NYSE exchanges would create efficiencies for customer feed
handlers.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 86709 (August 20,
2019), 84 FR 44654 (August 20, 2019) (SR-NYSECHX-2019-08) (Notice
proposing trading rules to support the transition of trading to the
Pillar trading platform, including proposing to delete Article 4,
Rule 1, which currently describes the Book Feed, because it will not
be offered once the Exchange transitions to Pillar); see also
Securities Exchange Act Release No. 87264 (October 9, 2019) (SR-
NYSECHX-2019-08) (Notice of Filing of Amendment No. 1 and Order
Granting Accelerated Approval of a Proposed Rule Change, as Modified
by Amendment No. 1, to Add Rules to Support the Transition of
Trading to the Pillar Trading Platform).
---------------------------------------------------------------------------
The Exchange believes that the proposed NYSE Chicago Market Data
Feeds will provide subscribers of the Book Feed market data product
with the same scope of Exchange information once the Exchange
transitions to Pillar, but with greater optionality. Subscribers that
would like to continue to receive both order data (including depth of
book) and last-sale data would be able to replace Book Feed with NYSE
Chicago Integrated and would not need to separately subscribe to either
NYSE Chicago BBO or NYSE Chicago Trades. Subscribers that do not need
as much data could opt instead to subscribe to only NYSE Chicago BBO or
NYSE Chicago Trades. In anticipation of the transition to the Pillar
trading system, the Exchange has provided notice of the availability of
the proposed market data products and related testing opportunities.\6\
---------------------------------------------------------------------------
\6\ On August 16, 2019, the Exchange provided notice of the
proposed NYSE Chicago Market Data Feeds, including that such feeds
would be available to customers in shadow, i.e., for testing, on
September 16, 2019. See Trader Update available here: https://www.nyse.com/trader-update/history#110000144335. See also additional
Trader Updates about the feeds, available here: https://www.nyse.com/trader-update/history#110000137761; and https://www.nyse.com/trader-update/history#110000154859.
---------------------------------------------------------------------------
NYSE Chicago BBO
NYSE Chicago BBO is a NYSE Chicago-only market data feed that would
provide vendors and subscribers on a real-time basis with the same
best-bid-and-offer information that NYSE Chicago 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 (``UTP Plan''). NYSE
Chicago BBO would include the best bids and offers (``NYSE Chicago BBO
Information'') for all securities that are traded on the Exchange. NYSE
Chicago will make the NYSE Chicago BBO available over a single
datafeed, regardless of the markets on which the securities are listed.
NYSE Chicago BBO would allow vendors, broker-dealers, and others
(``NYSE Chicago Vendors'') to consume and make available NYSE Chicago
BBO Information on a real-time basis. NYSE Chicago Vendors may
distribute the NYSE Chicago BBO to both professional and non-
professional subscribers. The Exchange would make NYSE Chicago BBO
Information available through the NYSE Chicago BBO datafeed no earlier
than it makes that information available to the processor under the CQ
Plan or the UTP Plan, as applicable.
NYSE Chicago Trades
NYSE Chicago Trades is a NYSE Chicago-only market data feed that
would provide vendors and subscribers on a real-time basis with the
same last sale information that NYSE Chicago reports under the
Consolidated Tape Association Plan (``CTA Plan'') and the UTP Plan for
inclusion in the consolidated feeds. NYSE Chicago Trades would include
the real-time last sale price, time and size information (``NYSE
Chicago Last Sale Information'') for all securities that are traded on
the Exchange. NYSE Chicago will make the NYSE Chicago Trades available
over a single datafeed, regardless of the markets on which the
securities are listed.
NYSE Chicago Trades would allow NYSE Chicago Vendors to consume and
make available NYSE Chicago Last Sale Information on a real-time basis.
NYSE Chicago Vendors may distribute the NYSE Chicago Trades to both
professional and non-professional subscribers. The Exchange would make
NYSE Chicago Last Sale Information available through the NYSE Chicago
Trades datafeed no earlier than it makes that information available to
the processor under the CTA Plan or the UTP Plan, as applicable. In
addition to the information that the Exchange provides to the
processor, NYSE Chicago 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 Chicago Integrated Feed
NYSE Chicago Integrated Feed is a NYSE Chicago-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
Chicago matching engines. The NYSE Chicago Integrated Feed would
include both top of book and 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 the Exchange's aggregation of NYSE
Chicago's opening price, high price, low price, closing price, and the
cumulative volume for a security, which information is available to
vendors and subscribers to calculate on their own should they so
choose. The NYSE Chicago Integrated Feed would include
[[Page 57906]]
information available to vendors and subscribers of both NYSE Chicago
BBO and NYSE Chicago Trades, as described above.
As described in Article 4, Rule 1, the current Book Feed allows a
subscriber to view all individual Participant orders displayed in the
Matching System, including the size and price associated with such
order and the trade data for executions that occur within the Matching
System. When the Exchange transitions to Pillar, current subscribers to
the Book Feed will be able to obtain the same scope of information via
the proposed NYSE Chicago Integrated Feed. Accordingly, after the
transition to Pillar, subscribers of Book Feed would still need only
one data product to satisfy their data needs. The Exchange proposes to
offer NYSE Chicago BBO and NYSE Chicago Trades to provide additional
optionality to data subscribers that may not need the scope of data
included in NYSE Chicago Integrated.
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 connectivity to the NYSE Chicago
Market Data Feeds over the Liquidity Center Network and IP network, the
local area networks available to users of the Exchange's co-location
services in the Mahwah, New Jersey data center. The Exchange would also
offer connectivity to the NYSE Chicago Market Data Feeds over the ICE
Global Network, through which all other users and members access the
Exchange's trading and execution systems and other proprietary market
data products. 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.
At this time, the Exchange does not intend to charge any fees
associated with the receipt of NYSE Chicago BBO, NYSE Chicago Trades or
NYSE Chicago Integrated Feed. The Exchange will submit a proposed rule
change should it determine to charge fees associated with the receipt
of NYSE Chicago BBO, NYSE Chicago Trades or NYSE Chicago Integrated
Feed. Accordingly, subscribers of the current Book Feed product, which
is also not subject to any fees, would not be subject to any additional
fees in order to receive any of the proposed NYSE Chicago Market Data
Feeds.
Subject to effectiveness of proposed rule changes, the NYSE Chicago
Market Data Feeds will be available when the Exchange transitions to
the Pillar trading platform.\7\
---------------------------------------------------------------------------
\7\ The Exchange has announced that, subject to rule approvals,
the Exchange will transition to trading on Pillar on November 4,
2019. See Trader Update, available here: https://www.nyse.com/publicdocs/nyse/notifications/trader-update/NYSEChicago_Migration_update_9.4.pdf.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \8\ of the Act (``Act''), in general, and furthers
the objectives of Section 6(b)(5) \9\ 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. This proposal is in keeping with those principles in that it
promotes increased transparency through the dissemination of the NYSE
Chicago Market Data Feeds to those interested in receiving it.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 Chicago Market Data
Feeds. The Exchange further believes that the proposed NYSE Chicago
Market Data Feeds would remove impediments to and perfect the mechanism
of a free and open market and a national market system because once the
Exchange transitions to the Pillar trading platform, current
subscribers to the Book Feed market data product would be able to
obtain the same level of data from NYSE Chicago Integrated without
incurring any new fees.
In adopting Regulation NMS, the Commission granted self-regulatory
organizations (``SROs'') 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 NYSE Chicago 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.\10\
---------------------------------------------------------------------------
\10\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (Regulation NMS Adopting
Release).
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 Chicago 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.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\11\ the Exchange
does not believe that the proposed rule change will impose any burden
on competition that is not necessary or appropriate in
[[Page 57907]]
furtherance of the purposes of the Act. Because other exchanges already
offer similar products, the Exchange's proposed NYSE Chicago Market
Data Feeds will enhance competition. For example, NYSE Chicago BBO
would provide an alternative to NYSE Arca BBO,\12\ offered by the
Exchange's affiliate, Arca, Inc. (``NYSE Arca''), Nasdaq Basic,\13\
offered by The Nasdaq Stock Market, Inc. (``Nasdaq''), and Cboe
Top,\14\ offered by Cboe Global Markets, Inc. (``Cboe''). Additionally,
NYSE Chicago Trades would provide an alternative to NYSE Arca
Trades,\15\ offered by NYSE Arca, Nasdaq Basic,\16\ offered by Nasdaq,
and Cboe Last Sale,\17\ offered by Cboe. Finally, NYSE Chicago
Integrated Feed would provide an alternative to NYSE Arca Integrated
Feed,\18\ offered by NYSE Arca, Nasdaq TotalView-Itch,\19\ offered by
Nasdaq, and Cboe Depth,\20\ offered by Cboe.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b)(8).
\12\ See NYSE Arca BBO, https://www.nyse.com/market-data/real-time/bbo (provides best bid/ask quotations for all traded
securities).
\13\ See Nasdaq Basic, https://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic (provides Best Bid and Offer and Last
Sale Information).
\14\ 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).
\15\ See NYSE Arca Trades, https://www.nyse.com/market-data/real-time/trades (provides real-time Last Sale information for all
traded securities).
\16\ See Nasdaq Basic, https://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic (provides Best Bid and Offer and Last
Sale Information).
\17\ See Cboe Last Sale, https://markets.cboe.com/us/equities/market_data_products/ (provides real-time matched trade price,
volume and execution time).
\18\ 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).
\19\ 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).
\20\ See Cboe Depth, https://markets.cboe.com/us/equities/market_data_products/ (provides real-time, depth-of-book quotations
and execution information).
---------------------------------------------------------------------------
The NYSE Chicago Market Data Feeds provide investors with new
options for receiving market data, which was a primary goal of the
market data amendments adopted by Regulation NMS.\21\
---------------------------------------------------------------------------
\21\ See supra note 6 [sic], at 37503.
---------------------------------------------------------------------------
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
Because the foregoing 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 for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \22\ and Rule 19b-
4(f)(6) thereunder.\23\
---------------------------------------------------------------------------
\22\ 15 U.S.C. 78s(b)(3)(A).
\23\ 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.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \24\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \25\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposed rule change may become operative upon filing. The
Exchange asserts that waiver of the operative delay would be consistent
with the protection of investors and the public interest because it
would allow the Exchange to provide the NYSE Chicago Market Data Feeds
when it migrates to the Pillar platform. The Exchange notes that it has
previously announced that, subject to rule approvals, it will
transition to Pillar on November 4, 2019. The Exchange will provide the
NYSE Chicago Market Data Feeds free of charge and they are comparable
to feeds provided by other national securities exchanges.\26\
Therefore, the Commission believes that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest. Accordingly, the Commission hereby waives the operative delay
and designates the proposed rule change operative upon filing.\27\
---------------------------------------------------------------------------
\24\ 17 CFR 240.19b-4(f)(6).
\25\ 17 CFR 240.19b-4(f)(6)(iii).
\26\ See supra Section II.B.
\27\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSECHX-2019-15 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-NYSECHX-2019-15. 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
[[Page 57908]]
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-
NYSECHX-2019-15, and should be submitted on or before November 19,
2019.
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\28\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-23546 Filed 10-28-19; 8:45 am]
BILLING CODE 8011-01-P
