Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Proprietary Market Data Fee Schedule Regarding the NYSE Best Quote and Trades Market Data Feed, 64386-64389 [2019-25216]
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64386
Federal Register / Vol. 84, No. 225 / Thursday, November 21, 2019 / Notices
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.9
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),11 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 the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange represents that the
proposal would correctly identify and
publicly state on a market-by-market
basis all of 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 to each of
those functions. Further, the Exchange
represents that the proposal would
enhance the clarity and transparency in
Exchange Rules surrounding the
inbound routing function performed by
Arca Securities for NYSE Chicago.
Based on the Exchange’s
representations, the Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest, and designates the proposed
rule change to be operative upon filing
with the Commission.12
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
9 In addition, Rule 19b–4(f)(6)(iii) requires the
Exchange to give the Commission written notice of
the Exchange’s 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.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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under Section 19(b)(2)(B) 13 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEAMER–2019–50 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–NYSEAMER–2019–50. 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–NYSEAMER–2019–50 and
13 15
PO 00000
U.S.C. 78s(b)(2)(B).
Frm 00126
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should be submitted on or before
December 12, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–25209 Filed 11–20–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87554; File No. SR–NYSE–
2019–61]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending the
NYSE Proprietary Market Data Fee
Schedule Regarding the NYSE Best
Quote and Trades Market Data Feed
November 15, 2019.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
November 4, 2019, New York Stock
Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory 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 Substance of
the Proposed Rule Change
The Exchange proposes to amend the
NYSE Proprietary Market Data Fee
Schedule (‘‘Market Data Fee Schedule’’)
regarding the NYSE Best Quote and
Trades (‘‘BQT’’) market data feed. The
Exchange proposes to make the fee
change effective November 4, 2019. 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,
14 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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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 a nonsubstantive amendment to the Market
Data Fee Schedule regarding the NYSE
BQT market data feed that does not add
or change any existing fees. The
proposed amendment would include a
reference to market data products from
NYSE Chicago, Inc. (‘‘NYSE Chicago’’).
The NYSE BQT data feed provides
best bid and offer and last sale
information for the Exchange and its
affiliates, NYSE Arca, Inc. (‘‘NYSE
Arca’’), NYSE American LLC (‘‘NYSE
American’’),4 and NYSE National, Inc.
(‘‘NYSE National’’).5 In connection with
the transition to trading to the Pillar
trading platform of another affiliate of
the Exchange, NYSE Chicago,6 the
Exchange recently filed a proposed rule
change to amend the content of the
NYSE BQT market data feed 7 to include
NYSE Chicago BBO and NYSE Chicago
Trades market data feeds.8
The Exchange currently charges an
access fee of $250 per month for the
NYSE BQT data feed. The Exchange is
not proposing any change to the access
fee. Footnote 5 to the Market Data Fee
Schedule further provides that to
subscribe to NYSE BQT, subscribers
must also subscribe to, and pay
applicable fees for, NYSE BBO, NYSE
Trades, NYSE Arca BBO, NYSE Arca
Trades, NYSE American BBO, NYSE
American Trades, NYSE National BBO,
4 See Securities Exchange Act Release No. 34–
73553 (Nov. 6, 2014), 79 FR 67491 (Nov. 13, 2014)
(SR–NYSE–2014–40) (‘‘NYSE BQT Approval
Order’’).
5 See Securities Exchange Act Release No. 83359
(June 1, 2018), 83 FR 26507 (June 7, 2018) (Notice
of Filing and Immediate Effectiveness of Proposed
Rule Change to Amend the Content of the NYSE
Best Quote & Trades Data Feed) (SR–NYSE–2018–
22).
6 NYSE Chicago has announced that, subject to
rule approvals, it will transition to trading to Pillar
on November 4, 2019. See Trader Update, available
at https://www.nyse.com/publicdocs/nyse/
notifications/trader-update/NYSEChicago_
Migration_update_9.4.pdf.
7 See SR–NYSE–2019–60, filed on November 4,
2019 (the ‘‘NYSE BQT Filing’’).
8 See Securities Exchange Act Release No. 87389
(October 23, 2019), 84 FR 57904 (October 29, 2019)
(SR–NYSEChicago–2019–15).
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and NYSE National Trades. Because, as
provided for in the NYSE BQT Filing,
NYSE will begin included data from
NYSE Chicago BBO and NYSE Chicago
Trades in NYSE BQT, the Exchange
proposes to add references to NYSE
Chicago BBO and NYSE Chicago Trades
to Footnote 5 to the Market Data Fee
Schedule. Accordingly, in addition to
subscribing to, and paying for, NYSE
BBO, NYSE Trades, NYSE Arca BBO,
NYSE Arca Trades, NYSE American
BBO, NYSE American Trades, NYSE
National BBO and NYSE National
Trades, subscribers of NYSE BQT will
need to subscribe to NYSE Chicago BBO
and NYSE Chicago Trades. Because
there are currently no fees for NYSE
Chicago BBO and NYSE Chicago Trades,
adding these products to Footnote 5 of
the Market Data Fee Schedule will not
increase the fees for NYSE BQT.
In anticipation of NYSE Chicago BBO
and NYSE Chicago Trades being
included in NYSE BQT, all current
NYSE BQT customers have subscribed
to NYSE Chicago BBO and NYSE
Chicago Trades and therefore will be
able to comply with the requirement
proposed in this rule change.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,9
in general, and Sections 6(b)(4) and
6(b)(5) of the Act,10 in particular, in that
it provides an equitable allocation of
reasonable fees among its members,
issuers, and other persons using its
facilities and is not designed to permit
unfair discrimination among customers,
issuers, brokers, or dealers. The
Exchange also believes that the
proposed rule change is consistent with
Section 11(A) of the Act 11 in that it is
consistent with (i) fair competition
among brokers and dealers, among
exchange markets, and between
exchange markets and markets other
than exchange markets; and (ii) the
availability to brokers, dealers, and
investors of information with respect to
quotations for and transactions in
securities. Furthermore, the proposed
rule change is consistent with Rule 603
of Regulation NMS,12 which provides
that any national securities exchange
that distributes information with respect
to quotations for or transactions in an
NMS stock do so on terms that are not
unreasonably discriminatory.
The Exchange further believes that
requiring market data recipients to
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4), (5).
11 15 U.S.C. 78k–1.
12 17 CFR 242.603.
separately subscribe to and pay for the
ten underlying data feeds to NYSE BQT
is reasonable because by design, NYSE
BQT represents an aggregated and
consolidated version of those existing
ten data feeds. The Exchange notes that
it is not seeking with this filing to
establish fees relating to the underlying
BBO and Trades data feeds, as those fees
have already been established consistent
with Section 19(b)(3)(A) of the Act 13
and Rule 19b–4(f)(2) 14 thereunder, and
which may be amended from time to
time. However, the Exchange believes it
would be unfair if it did not require
NYSE BQT data feed recipients to
separately subscribe to and pay for those
underlying feeds because otherwise,
NYSE BQT data feed recipients would
be receiving a data product that
includes such underlying data at a
lower cost than separately subscribing
to the underlying data feeds. The
Exchange therefore believes that the fee
structure for NYSE BQT would not be
lower than the cost to another party to
create a comparable product, including
the cost of receiving the underlying data
feeds.
The Exchange further believes that the
proposed NYSE BQT fee structure is
equitable and not unfairly
discriminatory because all vendors and
subscribers that elect to purchase NYSE
BQT would be subject to the same fees.
In addition, vendors and subscribers
that do not wish to purchase NYSE BQT
may separately purchase the individual
underlying data feed, and if they so
choose, perform a similar aggregation
and consolidation function that the
Exchange performs in creating NYSE
BQT. To enable such competition, the
Exchange would continue to offer NYSE
BQT on terms that a subscriber of the
underlying feeds could offer a
competing product if it so chooses.
With respect to this proposed rule
change, because NYSE Chicago does not
currently charge any fees for NYSE
Chicago BBO or NYSE Chicago Trades,
the proposed amendment to include
these products in Footnote 5 to the
Market Data Fee Schedule will not
change any fees for NYSE BQT.
Moreover, current subscribers to NYSE
BQT have already subscribed to NYSE
Chicago BBO and NYSE Chicago Trades,
and therefore such subscribers will not
have any issues complying with this
proposed rule change.
The Exchange also notes that the use
of NYSE BQT is entirely optional. Firms
have a wide variety of alternative
market data products from which to
choose, including the Exchanges’ own
10 15
PO 00000
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13 15
14 17
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64387
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
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Federal Register / Vol. 84, No. 225 / Thursday, November 21, 2019 / Notices
underlying data products, and
proprietary data products offered by the
Exchange’s competitors, and
consolidated data. Moreover, the
Exchange is not required to make any
proprietary data products available or to
offer any specific pricing alternatives to
any customers.
As explained below in the Exchange’s
Statement on Burden on Competition,
the existence of alternatives to these
data products further ensures that the
Exchange cannot set unreasonable fees,
or fees that are unreasonably
discriminatory, when vendors and
subscribers can elect such alternatives.
That is, the Exchange competes with
other exchanges (and their affiliates)
that provide similar ‘‘best quote and
trade’’ market data products. If another
exchange (or its affiliate) were to charge
less to consolidate and distribute its
similar product than the Exchange
charges to consolidate and distribute
NYSE BQT, prospective users likely
would not subscribe to, or would cease
subscribing to, NYSE BQT. In addition,
the Exchange would compete with
unaffiliated market data vendors who
would be in a position to consolidate
and distribute the same data that
comprises the NYSE BQT feed into the
vendor’s own comparable market data
product. If the third-party vendor is able
to provide the exact same data for a
lower cost, prospective users would
avail themselves of that lower cost and
elect not to take NYSE BQT.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,15 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.
As noted above, the NYSE BQT data
feed represents aggregated and
consolidated information of ten existing
market data feeds. Although the
Exchange, NYSE Arca, NYSE American,
NYSE National and NYSE Chicago are
the exclusive distributors of the
underlying BBO and Trades feeds from
which certain data elements are taken to
create NYSE BQT, the Exchange may
not be the exclusive distributor of the
aggregated and consolidated
information that comprises the NYSE
BQT data feed. Any other market data
recipient of the underlying data feeds
would be able, if they chose, to create
a data feed with the same information
as NYSE BQT and distribute it to their
clients on a level playing field with
15 78
U.S.C. 78f(b)(8).
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respect to latency and cost as compared
to the Exchange’s product.
The market for proprietary data
products is competitive and inherently
contestable because there is fierce
competition for the inputs necessary for
the creation of proprietary data and
strict pricing discipline for the
proprietary products themselves.
Numerous exchanges compete with one
another for listings and order flow and
sales of market data itself, providing
ample opportunities for entrepreneurs
who wish to compete in any or all of
those areas, including producing and
distributing their own market data.
Proprietary data products are produced
and distributed by each individual
exchange, as well as other entities, in a
vigorously competitive market. Indeed,
the U.S. Department of Justice (‘‘DOJ’’)
(the primary antitrust regulator) has
expressly acknowledged the aggressive
actual competition among exchanges,
including for the sale of proprietary
market data. In 2011, the DOJ stated that
exchanges ‘‘compete head to head to
offer real-time equity data products.
These data products include the best bid
and offer of every exchange and
information on each equity trade,
including the last sale.’’ 16
Moreover, competitive markets for
listings, order flow, executions, and
transaction reports impose pricing
discipline for the inputs of proprietary
data products and therefore constrain
markets from overpricing proprietary
market data. Broker-dealers send their
order flow and transaction reports to
multiple venues, rather than providing
them all to a single venue, which in turn
reinforces this competitive constraint.
As a 2010 Commission Concept Release
noted, the ‘‘current market structure can
be described as dispersed and complex’’
with ‘‘trading volume . . . dispersed
among many highly automated trading
centers that compete for order flow in
the same stocks’’ and ‘‘trading centers
offer[ing] a wide range of services that
are designed to attract different types of
market participants with varying trading
needs.’’ 17 Indeed, equity trading is
currently dispersed across 13
exchanges,18 31 alternative trading
systems,19 and numerous broker-dealer
internalizers and wholesalers, all
competing for order flow. Based on
publicly-available information, no
single exchange has more than 19%
market share (whether including or
excluding auction volume).20 And as the
Commission’s own Chief Administrative
Law Judge found after considering
extensive fact and expert testimony and
documentary evidence on the subject,
‘‘there is fierce competition for trading
services (or ‘order flow’)’’ among
exchanges, and ‘‘the record evidence
shows that competition plays a
significant role in restraining exchange
pricing of depth-of-book products.’’ In
the Matter of the Application of
Securities Industry And Financial
Markets Association For Review of
Actions Taken By Self-Regulatory
Organizations, Initial Decision Release
No. 1015, Administrative Proceeding
File No. 3–15350 (June 1, 2016), at pp.
8 and 33.
If an exchange succeeds in competing
for quotations, order flow, and trade
executions, then it earns trading
revenues and increases the value of its
proprietary market data products
because they will contain greater quote
and trade information. Conversely, if an
exchange is less successful in attracting
quotes, order flow, and trade
executions, then its market data
products may be less desirable to
customers in light of the diminished
content and data products offered by
competing venues may become more
attractive. Thus, competition for
quotations, order flow, and trade
executions puts significant pressure on
an exchange to maintain both execution
and data fees at reasonable levels.
In addition, in the case of products
that are also redistributed through
market data vendors, the vendors
themselves provide additional price
discipline for proprietary data products
because they control the primary means
of access to certain end users. These
vendors impose price discipline based
16 Press Release, U.S. Department of Justice,
Assistant Attorney General Christine Varney Holds
Conference Call Regarding NASDAQ OMX Group
Inc. and IntercontinentalExchange Inc. Abandoning
Their Bid for NYSE Euronext (May 16, 2011),
available at https://www.justice.gov/iso/opa/atr/
speeches/2011/at-speech-110516.html; see also
Complaint in U.S. v. Deutsche Borse AG and NYSE
Euronext, Case No. 11–cv–2280 (DC Dist.) ¶ 24
(‘‘NYSE and Direct Edge compete head-to-head . . .
in the provision of real-time proprietary equity data
products.’’).
17 Concept Release on Equity Market Structure,
Securities Exchange Act Release No. 61358 (Jan. 14,
2010), 75 FR 3594 (Jan. 21, 2010) (File No. S7–02–
10). This Concept Release included data from the
third quarter of 2009 showing that no market center
traded more than 20% of the volume of listed
stocks, further evidencing the dispersal of and
competition for trading activity. Id. at 3598.
18 See Cboe Global Markets, U.S. Equities Market
Volume Summary, available at https://
markets.cboe.com/us/equities/market_share/. See
generally https://www.sec.gov/fast-answers/
divisionsmarketregmrexchangesshtml.html.
19 See FINRA ATS Transparency Data, available
at https://otctransparency.finra.org/
otctransparency/AtsIssueData. A list of alternative
trading systems registered with the Commission is
available at https://www.sec.gov/foia/docs/
atslist.htm.
20 See Cboe Global Markets U.S. Equities Market
Volume Summary, available at https://
markets.cboe.com/us/equities/market_share/.
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Federal Register / Vol. 84, No. 225 / Thursday, November 21, 2019 / Notices
upon their business models. For
example, vendors that assess a
surcharge on data they sell are able to
refuse to offer proprietary products that
their end users do not or will not
purchase in sufficient numbers. Vendors
will not elect to make NYSE BQT
available unless their customers request
it, and customers will not elect to pay
for NYSE BQT unless the product can
provide value by sufficiently increasing
revenues or reducing costs in the
customer’s business in a manner that
will offset the fees. All of these factors
operate as constraints on pricing
proprietary data products.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 21 of the Act and
subparagraph (f)(2) of Rule 19b–4 22
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 23 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSE–2019–61 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–NYSE–2019–61. 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–NYSE–2019–61 and should
be submitted on or before December 12,
2019.
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Jill M. Peterson,
Assistant Secretary.
Electronic Comments
BILLING CODE 8011–01–P
[FR Doc. 2019–25216 Filed 11–20–19; 8:45 am]
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
21 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
23 15 U.S.C. 78s(b)(2)(B).
22 17
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CFR 200.30–3(a)(12).
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64389
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #16186 and #16187;
Texas Disaster Number TX–00528]
Administrative Declaration of a
Disaster for the State of Texas
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the State of Texas dated 11/14/2019.
Incident: Severe Storms, Straight-line
Winds, Hail and Tornado.
Incident Period: 10/20/2019 through
10/21/2019.
DATES: Issued on 11/14/2019.
Physical Loan Application Deadline
Date: 01/13/2020.
Economic Injury (EIDL) Loan
Application Deadline Date: 08/14/2020.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
Administrator’s disaster declaration,
applications for disaster loans may be
filed at the address listed above or other
locally announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Dallas
Contiguous Counties:
Texas: Collin, Denton, Ellis, Kaufman,
Rockwall, Tarrant
The Interest Rates are:
SUMMARY:
Percent
For Physical Damage:
Homeowners with Credit Available Elsewhere ......................
Homeowners without Credit
Available Elsewhere ..............
Businesses with Credit Available Elsewhere ......................
Businesses
without
Credit
Available Elsewhere ..............
Non-Profit Organizations with
Credit Available Elsewhere ...
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..............
E:\FR\FM\21NON1.SGM
21NON1
3.000
1.500
7.750
3.875
2.750
2.750
3.875
]]>Agencies
[Federal Register Volume 84, Number 225 (Thursday, November 21, 2019)]
[Notices]
[Pages 64386-64389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25216]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87554; File No. SR-NYSE-2019-61]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending the NYSE Proprietary Market Data Fee Schedule Regarding the
NYSE Best Quote and Trades Market Data Feed
November 15, 2019.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on November 4, 2019, New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 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 amend the NYSE Proprietary Market Data Fee
Schedule (``Market Data Fee Schedule'') regarding the NYSE Best Quote
and Trades (``BQT'') market data feed. The Exchange proposes to make
the fee change effective November 4, 2019. 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,
[[Page 64387]]
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 a non-substantive amendment to the Market
Data Fee Schedule regarding the NYSE BQT market data feed that does not
add or change any existing fees. The proposed amendment would include a
reference to market data products from NYSE Chicago, Inc. (``NYSE
Chicago'').
The NYSE BQT data feed provides best bid and offer and last sale
information for the Exchange and its affiliates, NYSE Arca, Inc.
(``NYSE Arca''), NYSE American LLC (``NYSE American''),\4\ and NYSE
National, Inc. (``NYSE National'').\5\ In connection with the
transition to trading to the Pillar trading platform of another
affiliate of the Exchange, NYSE Chicago,\6\ the Exchange recently filed
a proposed rule change to amend the content of the NYSE BQT market data
feed \7\ to include NYSE Chicago BBO and NYSE Chicago Trades market
data feeds.\8\
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\4\ See Securities Exchange Act Release No. 34-73553 (Nov. 6,
2014), 79 FR 67491 (Nov. 13, 2014) (SR-NYSE-2014-40) (``NYSE BQT
Approval Order'').
\5\ See Securities Exchange Act Release No. 83359 (June 1,
2018), 83 FR 26507 (June 7, 2018) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change to Amend the Content of the
NYSE Best Quote & Trades Data Feed) (SR-NYSE-2018-22).
\6\ NYSE Chicago has announced that, subject to rule approvals,
it will transition to trading to Pillar on November 4, 2019. See
Trader Update, available at https://www.nyse.com/publicdocs/nyse/notifications/trader-update/NYSEChicago_Migration_update_9.4.pdf.
\7\ See SR-NYSE-2019-60, filed on November 4, 2019 (the ``NYSE
BQT Filing'').
\8\ See Securities Exchange Act Release No. 87389 (October 23,
2019), 84 FR 57904 (October 29, 2019) (SR-NYSEChicago-2019-15).
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The Exchange currently charges an access fee of $250 per month for
the NYSE BQT data feed. The Exchange is not proposing any change to the
access fee. Footnote 5 to the Market Data Fee Schedule further provides
that to subscribe to NYSE BQT, subscribers must also subscribe to, and
pay applicable fees for, NYSE BBO, NYSE Trades, NYSE Arca BBO, NYSE
Arca Trades, NYSE American BBO, NYSE American Trades, NYSE National
BBO, and NYSE National Trades. Because, as provided for in the NYSE BQT
Filing, NYSE will begin included data from NYSE Chicago BBO and NYSE
Chicago Trades in NYSE BQT, the Exchange proposes to add references to
NYSE Chicago BBO and NYSE Chicago Trades to Footnote 5 to the Market
Data Fee Schedule. Accordingly, in addition to subscribing to, and
paying for, NYSE BBO, NYSE Trades, NYSE Arca BBO, NYSE Arca Trades,
NYSE American BBO, NYSE American Trades, NYSE National BBO and NYSE
National Trades, subscribers of NYSE BQT will need to subscribe to NYSE
Chicago BBO and NYSE Chicago Trades. Because there are currently no
fees for NYSE Chicago BBO and NYSE Chicago Trades, adding these
products to Footnote 5 of the Market Data Fee Schedule will not
increase the fees for NYSE BQT.
In anticipation of NYSE Chicago BBO and NYSE Chicago Trades being
included in NYSE BQT, all current NYSE BQT customers have subscribed to
NYSE Chicago BBO and NYSE Chicago Trades and therefore will be able to
comply with the requirement proposed in this rule change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\9\ in general, and
Sections 6(b)(4) and 6(b)(5) of the Act,\10\ in particular, in that it
provides an equitable allocation of reasonable fees among its members,
issuers, and other persons using its facilities and is not designed to
permit unfair discrimination among customers, issuers, brokers, or
dealers. The Exchange also believes that the proposed rule change is
consistent with Section 11(A) of the Act \11\ in that it is consistent
with (i) fair competition among brokers and dealers, among exchange
markets, and between exchange markets and markets other than exchange
markets; and (ii) the availability to brokers, dealers, and investors
of information with respect to quotations for and transactions in
securities. Furthermore, the proposed rule change is consistent with
Rule 603 of Regulation NMS,\12\ which provides that any national
securities exchange that distributes information with respect to
quotations for or transactions in an NMS stock do so on terms that are
not unreasonably discriminatory.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4), (5).
\11\ 15 U.S.C. 78k-1.
\12\ 17 CFR 242.603.
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The Exchange further believes that requiring market data recipients
to separately subscribe to and pay for the ten underlying data feeds to
NYSE BQT is reasonable because by design, NYSE BQT represents an
aggregated and consolidated version of those existing ten data feeds.
The Exchange notes that it is not seeking with this filing to establish
fees relating to the underlying BBO and Trades data feeds, as those
fees have already been established consistent with Section 19(b)(3)(A)
of the Act \13\ and Rule 19b-4(f)(2) \14\ thereunder, and which may be
amended from time to time. However, the Exchange believes it would be
unfair if it did not require NYSE BQT data feed recipients to
separately subscribe to and pay for those underlying feeds because
otherwise, NYSE BQT data feed recipients would be receiving a data
product that includes such underlying data at a lower cost than
separately subscribing to the underlying data feeds. The Exchange
therefore believes that the fee structure for NYSE BQT would not be
lower than the cost to another party to create a comparable product,
including the cost of receiving the underlying data feeds.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(2).
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The Exchange further believes that the proposed NYSE BQT fee
structure is equitable and not unfairly discriminatory because all
vendors and subscribers that elect to purchase NYSE BQT would be
subject to the same fees. In addition, vendors and subscribers that do
not wish to purchase NYSE BQT may separately purchase the individual
underlying data feed, and if they so choose, perform a similar
aggregation and consolidation function that the Exchange performs in
creating NYSE BQT. To enable such competition, the Exchange would
continue to offer NYSE BQT on terms that a subscriber of the underlying
feeds could offer a competing product if it so chooses.
With respect to this proposed rule change, because NYSE Chicago
does not currently charge any fees for NYSE Chicago BBO or NYSE Chicago
Trades, the proposed amendment to include these products in Footnote 5
to the Market Data Fee Schedule will not change any fees for NYSE BQT.
Moreover, current subscribers to NYSE BQT have already subscribed to
NYSE Chicago BBO and NYSE Chicago Trades, and therefore such
subscribers will not have any issues complying with this proposed rule
change.
The Exchange also notes that the use of NYSE BQT is entirely
optional. Firms have a wide variety of alternative market data products
from which to choose, including the Exchanges' own
[[Page 64388]]
underlying data products, and proprietary data products offered by the
Exchange's competitors, and consolidated data. Moreover, the Exchange
is not required to make any proprietary data products available or to
offer any specific pricing alternatives to any customers.
As explained below in the Exchange's Statement on Burden on
Competition, the existence of alternatives to these data products
further ensures that the Exchange cannot set unreasonable fees, or fees
that are unreasonably discriminatory, when vendors and subscribers can
elect such alternatives. That is, the Exchange competes with other
exchanges (and their affiliates) that provide similar ``best quote and
trade'' market data products. If another exchange (or its affiliate)
were to charge less to consolidate and distribute its similar product
than the Exchange charges to consolidate and distribute NYSE BQT,
prospective users likely would not subscribe to, or would cease
subscribing to, NYSE BQT. In addition, the Exchange would compete with
unaffiliated market data vendors who would be in a position to
consolidate and distribute the same data that comprises the NYSE BQT
feed into the vendor's own comparable market data product. If the
third-party vendor is able to provide the exact same data for a lower
cost, prospective users would avail themselves of that lower cost and
elect not to take NYSE BQT.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\15\ 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. As noted above, the NYSE BQT data feed
represents aggregated and consolidated information of ten existing
market data feeds. Although the Exchange, NYSE Arca, NYSE American,
NYSE National and NYSE Chicago are the exclusive distributors of the
underlying BBO and Trades feeds from which certain data elements are
taken to create NYSE BQT, the Exchange may not be the exclusive
distributor of the aggregated and consolidated information that
comprises the NYSE BQT data feed. Any other market data recipient of
the underlying data feeds would be able, if they chose, to create a
data feed with the same information as NYSE BQT and distribute it to
their clients on a level playing field with respect to latency and cost
as compared to the Exchange's product.
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\15\ 78 U.S.C. 78f(b)(8).
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The market for proprietary data products is competitive and
inherently contestable because there is fierce competition for the
inputs necessary for the creation of proprietary data and strict
pricing discipline for the proprietary products themselves. Numerous
exchanges compete with one another for listings and order flow and
sales of market data itself, providing ample opportunities for
entrepreneurs who wish to compete in any or all of those areas,
including producing and distributing their own market data. Proprietary
data products are produced and distributed by each individual exchange,
as well as other entities, in a vigorously competitive market. Indeed,
the U.S. Department of Justice (``DOJ'') (the primary antitrust
regulator) has expressly acknowledged the aggressive actual competition
among exchanges, including for the sale of proprietary market data. In
2011, the DOJ stated that exchanges ``compete head to head to offer
real-time equity data products. These data products include the best
bid and offer of every exchange and information on each equity trade,
including the last sale.'' \16\
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\16\ Press Release, U.S. Department of Justice, Assistant
Attorney General Christine Varney Holds Conference Call Regarding
NASDAQ OMX Group Inc. and IntercontinentalExchange Inc. Abandoning
Their Bid for NYSE Euronext (May 16, 2011), available at https://www.justice.gov/iso/opa/atr/speeches/2011/at-speech-110516.html; see
also Complaint in U.S. v. Deutsche Borse AG and NYSE Euronext, Case
No. 11-cv-2280 (DC Dist.) ] 24 (``NYSE and Direct Edge compete head-
to-head . . . in the provision of real-time proprietary equity data
products.'').
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Moreover, competitive markets for listings, order flow, executions,
and transaction reports impose pricing discipline for the inputs of
proprietary data products and therefore constrain markets from
overpricing proprietary market data. Broker-dealers send their order
flow and transaction reports to multiple venues, rather than providing
them all to a single venue, which in turn reinforces this competitive
constraint. As a 2010 Commission Concept Release noted, the ``current
market structure can be described as dispersed and complex'' with
``trading volume . . . dispersed among many highly automated trading
centers that compete for order flow in the same stocks'' and ``trading
centers offer[ing] a wide range of services that are designed to
attract different types of market participants with varying trading
needs.'' \17\ Indeed, equity trading is currently dispersed across 13
exchanges,\18\ 31 alternative trading systems,\19\ and numerous broker-
dealer internalizers and wholesalers, all competing for order flow.
Based on publicly-available information, no single exchange has more
than 19% market share (whether including or excluding auction
volume).\20\ And as the Commission's own Chief Administrative Law Judge
found after considering extensive fact and expert testimony and
documentary evidence on the subject, ``there is fierce competition for
trading services (or `order flow')'' among exchanges, and ``the record
evidence shows that competition plays a significant role in restraining
exchange pricing of depth-of-book products.'' In the Matter of the
Application of Securities Industry And Financial Markets Association
For Review of Actions Taken By Self-Regulatory Organizations, Initial
Decision Release No. 1015, Administrative Proceeding File No. 3-15350
(June 1, 2016), at pp. 8 and 33.
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\17\ Concept Release on Equity Market Structure, Securities
Exchange Act Release No. 61358 (Jan. 14, 2010), 75 FR 3594 (Jan. 21,
2010) (File No. S7-02-10). This Concept Release included data from
the third quarter of 2009 showing that no market center traded more
than 20% of the volume of listed stocks, further evidencing the
dispersal of and competition for trading activity. Id. at 3598.
\18\ See Cboe Global Markets, U.S. Equities Market Volume
Summary, available at https://markets.cboe.com/us/equities/market_share/. See generally https://www.sec.gov/fast-answers/divisionsmarketregmrexchangesshtml.html.
\19\ See FINRA ATS Transparency Data, available at https://otctransparency.finra.org/otctransparency/AtsIssueData. A list of
alternative trading systems registered with the Commission is
available at https://www.sec.gov/foia/docs/atslist.htm.
\20\ See Cboe Global Markets U.S. Equities Market Volume
Summary, available at https://markets.cboe.com/us/equities/market_share/.
---------------------------------------------------------------------------
If an exchange succeeds in competing for quotations, order flow,
and trade executions, then it earns trading revenues and increases the
value of its proprietary market data products because they will contain
greater quote and trade information. Conversely, if an exchange is less
successful in attracting quotes, order flow, and trade executions, then
its market data products may be less desirable to customers in light of
the diminished content and data products offered by competing venues
may become more attractive. Thus, competition for quotations, order
flow, and trade executions puts significant pressure on an exchange to
maintain both execution and data fees at reasonable levels.
In addition, in the case of products that are also redistributed
through market data vendors, the vendors themselves provide additional
price discipline for proprietary data products because they control the
primary means of access to certain end users. These vendors impose
price discipline based
[[Page 64389]]
upon their business models. For example, vendors that assess a
surcharge on data they sell are able to refuse to offer proprietary
products that their end users do not or will not purchase in sufficient
numbers. Vendors will not elect to make NYSE BQT available unless their
customers request it, and customers will not elect to pay for NYSE BQT
unless the product can provide value by sufficiently increasing
revenues or reducing costs in the customer's business in a manner that
will offset the fees. All of these factors operate as constraints on
pricing proprietary data products.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \21\ of the Act and subparagraph (f)(2) of Rule
19b-4 \22\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\21\ 15 U.S.C. 78s(b)(3)(A).
\22\ 17 CFR 240.19b-4(f)(2).
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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) \23\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\23\ 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-NYSE-2019-61 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-NYSE-2019-61. 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-NYSE-2019-61 and should be submitted on
or before December 12, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-25216 Filed 11-20-19; 8:45 am]
BILLING CODE 8011-01-P
