Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Content of the NYSE Best Quote & Trades, 52505-52508 [2021-20331]
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Federal Register / Vol. 86, No. 180 / Tuesday, September 21, 2021 / Notices
2021) required by 44 U.S.C. 3506(c)(2).
That request elicited no comments.
Information Collection Request (ICR)
Title: Gross Earnings Report.
OMB Control Number: 3220–0132.
Form(s) submitted: BA–11, BA–11
(internet).
Type of request: Extension without
change of a currently approved
collection.
Affected public: Private Sector;
Businesses or other for-profits.
Abstract: Section 7(c)(2) of the
Railroad Retirement Act requires a
financial interchange between the
OASDHI trust funds and the railroad
retirement account. The collection
obtains gross earnings of railway
employees on a 1% basis. The
information is used to determine the
Annual
responses
Form number
BA–11
BA–11
BA–11
BA–11
BA–11
Time
(minutes)
Burden
(hours)
CD–ROM .........................................................................................................................
File Transfer Protocol ......................................................................................................
Secure Email ...................................................................................................................
(Internet)—Positive ..........................................................................................................
(Internet)—Negative .........................................................................................................
0
11
0
424
154
30
300
30
30
15
0
55
0
77
106
Total ......................................................................................................................................
589
........................
238
Additional Information or Comments:
Copies of the forms and supporting
documents can be obtained from
Kennisha Tucker at (312) 469–2591 or
Kennisha.Tucker@rrb.gov. Comments
regarding the information collection
should be addressed to Brian Foster,
Railroad Retirement Board, 844 North
Rush Street, Chicago, Illinois, 60611–
1275 or Brian.Foster@rrb.gov.
Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
Brian Foster,
Clearance Officer.
[FR Doc. 2021–20420 Filed 9–20–21; 8:45 am]
BILLING CODE 7905–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93000; File No. SR–NYSE–
2021–51]
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amount which would place the OASDHI
trust funds in the position they would
have been if railroad service had been
covered by the Social Security and FIC
Acts.
Changes proposed: The RRB proposes
no changes to Form BA–11.
The burden estimate for the ICR is as
follows:
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Content of the NYSE Best Quote &
Trades
September 15, 2021.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on
September 3, 2021, New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
content of the NYSE Best Quote &
Trades (‘‘NYSE BQT’’) data feed to
identify the current day consolidated
high and low prices. The proposed rule
change is available on the Exchange’s
website at www.nyse.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
2 15
1 15
U.S.C. 78s(b)(1).
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of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to enhance
the content of NYSE BQT to identify the
current day consolidated high and low
price for all listed equity securities.
The NYSE BQT 4 data feed provides a
unified view of best bid and offer
(‘‘BBO’’) and last sale information for
the Exchange and its affiliates, NYSE
Arca, Inc. (‘‘NYSE Arca’’), NYSE
American LLC (‘‘NYSE American’’),
NYSE National, Inc. (‘‘NYSE National’’)
and NYSE Chicago, Inc. (‘‘NYSE
Chicago’’) and consists of data elements
from ten existing market data feeds:
NYSE Trades,5 NYSE BBO,6 NYSE Arca
Trades,7 NYSE Arca BBO,8 NYSE
4 See Securities Exchange Act Release No. 73553
(November 6, 2014), 79 FR 67491 (November 13,
2014) (Notice of Amendment No. 1 and Order
Granting Accelerated Approval to a Proposed Rule
Change, as Modified by Amendment No. 1, To
Establish the NYSE Best Quote and Trades Data
Feed).
5 See Securities Exchange Act Release Nos. 59290
(January 23, 2009), 74 FR 5707 (January 30, 2009)
(SR–NYSE–2009–05); and 59606 (March 19, 2009),
74 FR 13293 (March 26, 2009) (SR–NYSE–2009–04).
6 See Securities Exchange Act Release No. 62181
(May 26, 2010), 75 FR 31488 (June 3, 2010) (SR–
NYSE–2010–30).
7 See Securities Exchange Act Release Nos. 59289
(January 23, 2009), 74 FR 5711 (January 30, 2009)
(SR–NYSEArca–2009–06); and 59598 (March 18,
2009), 74 FR 12919 (March 25, 2009) (SR–
NYSEArca–2009–05).
8 See Securities Exchange Act Release No. 62188
(May 27, 2010), 75 FR 31484 (June 3, 2010) (SR–
NYSEArca–2010–23).
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American Trades,9 NYSE American
BBO,10 NYSE National Trades,11 NYSE
National BBO,12 NYSE Chicago
Trades,13 and NYSE Chicago BBO.14
NYSE BBO, NYSE Arca BBO, NYSE
American BBO, NYSE National BBO
and NYSE Chicago BBO are existing
data feeds that distribute on a real-time
basis the same BBO information that
NYSE, NYSE Arca, NYSE American,
NYSE National and NYSE Chicago,
respectively, report under the
Consolidated Quotation (‘‘CQ’’) Plan for
inclusion in the CQ Plan’s consolidated
quotation information data stream.
NYSE Trades, NYSE Arca Trades, NYSE
American Trades, NYSE National
Trades and NYSE Chicago Trades are
existing data feeds that distribute on a
real-time basis the same last sale
information that NYSE, NYSE Arca,
NYSE American, NYSE National and
NYSE Chicago, respectively, report
under the Consolidated Tape
Association (‘‘CTA’’) Plan for inclusion
in the CTA Plan’s consolidated data
streams. Among other things, NYSE
BQT also includes consolidated volume
for all listed equity securities regardless
of where the transaction was executed.
Now, in addition to the information
currently provided in NYSE BQT, the
Exchange proposes to include the
current day consolidated high and low
price for all listed equity securities as
obtained directly from the securities
information processors (‘‘SIPs’’). The
consolidated high and low price for all
equity securities would be disseminated
via NYSE BQT after the Consolidated
Tape Association (‘‘CTA’’) and Unlisted
Trading Privileges (‘‘UTP’’) Plan SIP
delay period, which is currently 15
minutes. Such information would
provide NYSE BQT users with a static
benchmark against which to compare
price movements shown on NYSE BQT
using high and low prices in the
consolidated market. The Exchange’s
proposal is in response to requests by
subscribers using NYSE BQT, and also
9 See Securities Exchange Act Release No. 62187
(May 27, 2010), 75 FR 31500 (June 3, 2010) (SR–
NYSEAmex–2010–35).
10 See Securities Exchange Act Release No. 62187
(May 27, 2010), 75 FR 31500 (June 3, 2010) (SR–
NYSEAmex–2010–35).
11 See Securities Exchange Act Release No. 83350
(May 31, 2018), 83 FR 26332 (June 6, 2018) (SR–
NYSENAT–2018–09).
12 See Securities Exchange Act Release No. 83350
(May 31, 2018), 83 FR 26332 (June 6, 2018) (SR–
NYSENAT–2018–09).
13 See Securities Exchange Act Release No. 87389
(October 23, 2019), 84 FR 57904 (October 29, 2019)
(SR–NYSECHX–2019–15).
14 See Securities Exchange Act Release No. 87389
(October 23, 2019), 84 FR 57904 (October 29, 2019)
(SR–NYSECHX–2019–15).
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to recent changes by a competitor
exchange to its end of day messages.15
The NYSE BQT data feed is offered in
a capacity similar to that of a vendor.[16]
The Exchange, NYSE Arca, NYSE
American, NYSE National and NYSE
Chicago are the exclusive distributors of
the 10 BBO and Trades feeds 17 from
which certain data elements is taken to
create the NYSE BQT. By contrast, the
Exchange would not be the exclusive
distributor of the aggregated and
consolidated information that composes
the NYSE BQT data feed. Other vendors
would be able, if they chose, to create
a data feed with the same information
included in NYSE BQT, and to
distribute it to clients with no greater
latency than the Exchange would be
able to distribute NYSE BQT.
The Exchange proposes that this
change become operative on October 18,
2021. The Exchange is not proposing
any change to the fees for NYSE BQT as
a result of this modification.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) 18 of the Act (‘‘Act’’), in
general, and furthers the objectives of
Section 6(b)(5) 19 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 BQT market data feed to
15 See Securities Exchange Act No. 92301 (June
30, 2021), 86 FR 35845 (July 7, 2021) (SR–
CboeBYX–2021–014).
[16] [The Commission notes that its order
approving the exchange’s proposal to offer the
NYSE BQT feed states that the Commission believes
that ‘‘a data feed offered by an exchange that
contains that exchange’s own market data
(including a feed that also contains data from other
exchanges) is a ‘material aspect of the operation of
the facilities of the self-regulatory organization,’ and
that therefore, such a data product and any related
fees are subject to the rule filing process of Section
19(b) of the Act.’’ Securities Exchange Act Release
No. 73554 (Nov. 6, 2014), 79 FR 67491, 67494 (Nov.
13, 2014) (SR–NYSE–2014–40).]
17 These other data feeds are offered pursuant to
pre-existing and already effective rules filed with
the Commission; those rules will not be altered by
this filing.
18 15 U.S.C. 78f(b).
19 15 U.S.C. 78f(b)(5).
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those interested in receiving it. The
NYSE BQT data feed is a product that
relies on the Exchange’s receipt of
underlying data, which is available to
all market participants, before it can
aggregate and consolidate information to
create the NYSE BQT; this is a process
that a vendor could also perform.
Accordingly, the Exchange is not the
only distributor of the NYSE BQT data
feed.
The Exchange also believes that the
proposed rule change is consistent with
Section 11(A) of the Act 20 in that it
supports (1) fair competition among
brokers and dealers, among exchange
markets, and between exchange markets
and markets other than exchange
markets and (2) the availability to
brokers, dealers, and investors of
information with respect to quotations
for and transactions in securities.
Furthermore, the Exchange believes
that the proposed rule change is
consistent with Rule 603 of Regulation
NMS,21 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. In
adopting Regulation NMS, the
Commission granted self-regulatory
organizations and broker dealers
increased authority and flexibility to
offer new and unique market data to
consumers of such data. It was believed
that this authority would expand the
amount of data available to users and
consumers of such data and also spur
innovation and competition for the
provision of market data.
The proposed rule change is designed
to promote just and equitable principles
of trade and remove impediments to and
perfect the mechanism of a free and
open market and a national market
system by identifying the consolidated
high and low price for all listed equity
securities as obtained directly from the
SIPs. Such information would provide
NYSE BQT users with a static
benchmark against which to compare
price movements shown on NYSE BQT
using high and low prices in the
consolidated market. Therefore, the
consolidated high and low price for
listed equity securities would provide
meaningful information to investors.
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 such
20 15
21 17
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information. As noted above, another
exchange currently provides
consolidated high and low price
information in their competing market
data products.22 Therefore, the
Exchange believes the proposed rule
change removes impediments to and
perfects the mechanism of a free and
open market and a national market
system, and, in general, protects
investors and the public interest as it
would provide an additional avenue for
investors to receive this information
from a competing product.
In addition, this proposal would not
permit unfair discrimination because
NYSE BQT will continue to be available
to all of the Exchange’s customers
through SFTI and market data vendors
on an equivalent basis. In addition, any
customer that wished to continue to be
able to purchase one or more of the
individual underlying data feeds would
be able to do so.
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,23 the Exchange does not believe
that the proposed rule change will
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange believes that the
proposed rule change will enhance
competition because it would enable the
Exchange to include the consolidated
high and low price as part of NYSE
BQT, thereby enabling it to better
compete with similar market data
products offered by another exchange
that includes such information.24 As
noted above, the Exchange already
offers NYSE BQT and this proposed rule
change simply amends the content of
the current market data product to
include the consolidated high and low
price for all listed equity securities. The
Exchange is not the exclusive
distributor of the consolidated high and
low price information that would
compose the amended NYSE BQT data
feed. Vendors 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 levelplaying field with respect to latency and
cost as compared to the Exchange’s
product. Specifically, a competing
vendor could receive the consolidated
high and low price from the SIPs and
include that information as part of their
market data products to be disseminated
22 See,
note 15, supra.
U.S.C. 78f(b)(8).
24 See, note 15, supra.
23 15
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to customers pursuant to the same terms
and policies as the Exchange.25
The Exchange believes the proposal
will have no impact on intramarket
competition as the proposal is not
targeted at, or expected to be limited in
its applicability to, any particular
segment of market participants and no
segment of retail investors, the general
investing public, or any other market
participant is expected to benefit more
than any other. Therefore, the Exchange
believes the inclusion of the
consolidated high and low price in
NYSE BQT would not impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 26 and Rule
19b–4(f)(6) thereunder.27 Because the
proposed rule change does not (i)
significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(iii) of the Act 28 and Rule
19b–4(f)(6)(iii) thereunder.29
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
25 See CTA Consolidated Volume Display Policy
with FAQ at https://www.ctaplan.com/publicdocs/
ctaplan/notifications/traderupdate/CTA%20
Consolidated%20Volume%20Policy%20FAQ.pdf.
26 15 U.S.C. 78s(b)(3)(A)(iii).
27 17 CFR 240.19b–4(f)(6).
28 15 U.S.C. 78s(b)(3)(A)(iii).
29 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 fulfilled this requirement.
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52507
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) 30 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–
NYSE–2021–51 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–2021–51. 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
30 15
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U.S.C. 78s(b)(2)(B).
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to make available publicly. All
submissions should refer to File
Number SR–NYSE–2021–51 and should
be submitted on or before October 12,
2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–20331 Filed 9–20–21; 8:45 am]
BILLING CODE 8011–01–P
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COMMISSION
[Release No. 34–93002; File No. SR–FINRA–
2021–023]
through June 30, 2022 within the scope
of the supplementary material.4 The
proposed extension of Rule 3110.17 is
necessary to address the continuing
operational challenges resulting from
the COVID–19 pandemic many member
firms face in planning for and timely
conducting, during the first half of
calendar year 2022, the on-site
inspection component of Rule 3110(c)
(Internal Inspections) at locations
requiring inspection in calendar year
2022.
Below is the text of the proposed rule
change. Proposed new language is in
italics; proposed deletions are in
brackets.
*
*
*
*
*
3100. SUPERVISORY RESPONSIBILITIES
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the
Effectiveness of Temporary
Supplementary Material .17
(Temporary Relief To Allow Remote
Inspections for Calendar Year 2020
and Calendar Year 2021) Under FINRA
Rule 3110 (Supervision)
September 15, 2021.
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Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 14, 2021, the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) filed with the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by FINRA. FINRA has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under paragraph (f)(6) of Rule
19b–4 under the Act,3 which renders
the proposal effective upon receipt of
this filing by the Commission. 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
FINRA is proposing to extend
temporary Supplementary Material .17
(Temporary Relief to Allow Remote
Inspections for Calendar Year 2020 and
Calendar Year 2021) under FINRA Rule
3110 (Supervision) to include calendar
year 2022 inspection obligations
4 The proposed rule change will automatically
sunset on June 30, 2022. FINRA will submit a
separate rule filing if it seeks to extend the duration
of the temporary proposed rule beyond June 30,
2022.
31 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
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3110. Supervision
(a) through (f) No Change.
* * * Supplementary Material: —————
.01 through .16 No Change.
.17 Temporary Relief to Allow Remote
Inspections for Calendar Years 2020 and
[Calendar Year] 2021, and Through June 30
of Calendar Year 2022.
(a) Use of Remote Inspections. Each
member obligated to conduct an inspection
of an office of supervisory jurisdiction,
branch office or non-branch location in
calendar years 2020, [and calendar year] 2021
and 2022 pursuant to, as applicable,
paragraphs (c)(1)(A), (B) and (C) under Rule
3110 may, subject to the requirements of this
Rule 3110.17, satisfy such obligation by
conducting the applicable inspection
remotely, without an on-site visit to the office
or location. In accordance with Rule 3110.16,
inspections for calendar year 2020 must be
completed on or before March 31, 2021 and
inspections for calendar year 2021 must be
completed on or before December 31, 2021.
With respect to a member’s obligation to
conduct an inspection of an office or location
in calendar year 2022, a member has the
option to conduct those inspections remotely
only through June 30, 2022. Notwithstanding
Rule 3110.17, a member shall remain subject
to the other requirements of Rule 3110(c).
(b) Written Supervisory Procedures for
Remote Inspections. Consistent with a
member’s obligation under Rule 3110(b)(1), a
member that elects to conduct [each of] its
[calendar year 2020 or calendar year 2021]
inspections remotely for any of the calendar
years specified in this supplementary
material must amend or supplement its
written supervisory procedures to provide for
remote inspections that are reasonably
designed to assist in detecting and preventing
violations of and achieving compliance with
applicable securities laws and regulations,
and with applicable FINRA rules. Reasonably
designed procedures for conducting remote
inspections of offices or locations should
include, among other things: (1) A
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description of the methodology, including
technologies permitted by the member, that
may be used to conduct remote inspections;
and (2) the use of other risk-based systems
employed generally by the member firm to
identify and prioritize for review those areas
that pose the greatest risk of potential
violations of applicable securities laws and
regulations, and of applicable FINRA rules.
(c) Effective Supervisory System. The
requirement to conduct inspections of offices
and locations is one part of the member’s
overall obligation to have an effective
supervisory system and therefore, the
member must continue with its ongoing
review of the activities and functions
occurring at all offices and locations, whether
or not the member conducts inspections
remotely. A member’s use of a remote
inspection of an office or location will be
held to the same standards for review as set
forth under Rule 3110.12. Where a member’s
remote inspection of an office or location
identifies any indicators of irregularities or
misconduct (i.e., ‘‘red flags’’), the member
may need to impose additional supervisory
procedures for that office or location or may
need to provide for more frequent monitoring
of that office or location, including
potentially a subsequent physical, on-site
visit on an announced or unannounced basis
when the member’s operational difficulties
associated with COVID–19 abate, nationally
or locally as relevant, and the challenges a
member is facing in light of the public health
and safety concerns make such on-site visits
feasible using reasonable best efforts. The
temporary relief provided by this Rule
3110.17 does not extend to a member’s
inspection requirements beyond [calendar
year 2021] June 30, 2022 and such
inspections must be conducted in
compliance with Rule 3110(c).
(d) Documentation Requirement. A
member must maintain and preserve a
centralized record for each of calendar years
2020 and [calendar year] 2021, and for
calendar year 2022 through June 30, 2022
only that separately identifies: (1) All offices
or locations that had inspections that were
conducted remotely; and (2) any offices or
locations for which the member determined
to impose additional supervisory procedures
or more frequent monitoring, as provided in
Rule 3110.17(c). A member’s documentation
of the results of a remote inspection for an
office or location must identify any
additional supervisory procedures or more
frequent monitoring for that office or location
that were imposed as a result of the remote
inspection.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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. FINRA has prepared
E:\FR\FM\21SEN1.SGM
21SEN1
]]>Agencies
[Federal Register Volume 86, Number 180 (Tuesday, September 21, 2021)]
[Notices]
[Pages 52505-52508]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-20331]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93000; File No. SR-NYSE-2021-51]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Content of the NYSE Best Quote & Trades
September 15, 2021.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on September 3, 2021, New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
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 content of the NYSE Best Quote &
Trades (``NYSE BQT'') data feed to identify the current day
consolidated high and low prices. The proposed rule change is available
on the Exchange's website at www.nyse.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to enhance the content of NYSE BQT to
identify the current day consolidated high and low price for all listed
equity securities.
The NYSE BQT \4\ data feed provides a unified view of best bid and
offer (``BBO'') and last sale information for the Exchange and its
affiliates, NYSE Arca, Inc. (``NYSE Arca''), NYSE American LLC (``NYSE
American''), NYSE National, Inc. (``NYSE National'') and NYSE Chicago,
Inc. (``NYSE Chicago'') and consists of data elements from ten existing
market data feeds: NYSE Trades,\5\ NYSE BBO,\6\ NYSE Arca Trades,\7\
NYSE Arca BBO,\8\ NYSE
[[Page 52506]]
American Trades,\9\ NYSE American BBO,\10\ NYSE National Trades,\11\
NYSE National BBO,\12\ NYSE Chicago Trades,\13\ and NYSE Chicago
BBO.\14\
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\4\ See Securities Exchange Act Release No. 73553 (November 6,
2014), 79 FR 67491 (November 13, 2014) (Notice of Amendment No. 1
and Order Granting Accelerated Approval to a Proposed Rule Change,
as Modified by Amendment No. 1, To Establish the NYSE Best Quote and
Trades Data Feed).
\5\ See Securities Exchange Act Release Nos. 59290 (January 23,
2009), 74 FR 5707 (January 30, 2009) (SR-NYSE-2009-05); and 59606
(March 19, 2009), 74 FR 13293 (March 26, 2009) (SR-NYSE-2009-04).
\6\ See Securities Exchange Act Release No. 62181 (May 26,
2010), 75 FR 31488 (June 3, 2010) (SR-NYSE-2010-30).
\7\ See Securities Exchange Act Release Nos. 59289 (January 23,
2009), 74 FR 5711 (January 30, 2009) (SR-NYSEArca-2009-06); and
59598 (March 18, 2009), 74 FR 12919 (March 25, 2009) (SR-NYSEArca-
2009-05).
\8\ See Securities Exchange Act Release No. 62188 (May 27,
2010), 75 FR 31484 (June 3, 2010) (SR-NYSEArca-2010-23).
\9\ See Securities Exchange Act Release No. 62187 (May 27,
2010), 75 FR 31500 (June 3, 2010) (SR-NYSEAmex-2010-35).
\10\ See Securities Exchange Act Release No. 62187 (May 27,
2010), 75 FR 31500 (June 3, 2010) (SR-NYSEAmex-2010-35).
\11\ See Securities Exchange Act Release No. 83350 (May 31,
2018), 83 FR 26332 (June 6, 2018) (SR-NYSENAT-2018-09).
\12\ See Securities Exchange Act Release No. 83350 (May 31,
2018), 83 FR 26332 (June 6, 2018) (SR-NYSENAT-2018-09).
\13\ See Securities Exchange Act Release No. 87389 (October 23,
2019), 84 FR 57904 (October 29, 2019) (SR-NYSECHX-2019-15).
\14\ See Securities Exchange Act Release No. 87389 (October 23,
2019), 84 FR 57904 (October 29, 2019) (SR-NYSECHX-2019-15).
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NYSE BBO, NYSE Arca BBO, NYSE American BBO, NYSE National BBO and
NYSE Chicago BBO are existing data feeds that distribute on a real-time
basis the same BBO information that NYSE, NYSE Arca, NYSE American,
NYSE National and NYSE Chicago, respectively, report under the
Consolidated Quotation (``CQ'') Plan for inclusion in the CQ Plan's
consolidated quotation information data stream. NYSE Trades, NYSE Arca
Trades, NYSE American Trades, NYSE National Trades and NYSE Chicago
Trades are existing data feeds that distribute on a real-time basis the
same last sale information that NYSE, NYSE Arca, NYSE American, NYSE
National and NYSE Chicago, respectively, report under the Consolidated
Tape Association (``CTA'') Plan for inclusion in the CTA Plan's
consolidated data streams. Among other things, NYSE BQT also includes
consolidated volume for all listed equity securities regardless of
where the transaction was executed.
Now, in addition to the information currently provided in NYSE BQT,
the Exchange proposes to include the current day consolidated high and
low price for all listed equity securities as obtained directly from
the securities information processors (``SIPs''). The consolidated high
and low price for all equity securities would be disseminated via NYSE
BQT after the Consolidated Tape Association (``CTA'') and Unlisted
Trading Privileges (``UTP'') Plan SIP delay period, which is currently
15 minutes. Such information would provide NYSE BQT users with a static
benchmark against which to compare price movements shown on NYSE BQT
using high and low prices in the consolidated market. The Exchange's
proposal is in response to requests by subscribers using NYSE BQT, and
also to recent changes by a competitor exchange to its end of day
messages.\15\
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\15\ See Securities Exchange Act No. 92301 (June 30, 2021), 86
FR 35845 (July 7, 2021) (SR-CboeBYX-2021-014).
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The NYSE BQT data feed is offered in a capacity similar to that of
a vendor.[16] The Exchange, NYSE Arca, NYSE American, NYSE
National and NYSE Chicago are the exclusive distributors of the 10 BBO
and Trades feeds \17\ from which certain data elements is taken to
create the NYSE BQT. By contrast, the Exchange would not be the
exclusive distributor of the aggregated and consolidated information
that composes the NYSE BQT data feed. Other vendors would be able, if
they chose, to create a data feed with the same information included in
NYSE BQT, and to distribute it to clients with no greater latency than
the Exchange would be able to distribute NYSE BQT.
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\[16]\ [The Commission notes that its order approving the
exchange's proposal to offer the NYSE BQT feed states that the
Commission believes that ``a data feed offered by an exchange that
contains that exchange's own market data (including a feed that also
contains data from other exchanges) is a `material aspect of the
operation of the facilities of the self-regulatory organization,'
and that therefore, such a data product and any related fees are
subject to the rule filing process of Section 19(b) of the Act.''
Securities Exchange Act Release No. 73554 (Nov. 6, 2014), 79 FR
67491, 67494 (Nov. 13, 2014) (SR-NYSE-2014-40).]
\17\ These other data feeds are offered pursuant to pre-existing
and already effective rules filed with the Commission; those rules
will not be altered by this filing.
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The Exchange proposes that this change become operative on October
18, 2021. The Exchange is not proposing any change to the fees for NYSE
BQT as a result of this modification.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \18\ of the Act (``Act''), in general, and furthers
the objectives of Section 6(b)(5) \19\ 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
BQT market data feed to those interested in receiving it. The NYSE BQT
data feed is a product that relies on the Exchange's receipt of
underlying data, which is available to all market participants, before
it can aggregate and consolidate information to create the NYSE BQT;
this is a process that a vendor could also perform. Accordingly, the
Exchange is not the only distributor of the NYSE BQT data feed.
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\18\ 15 U.S.C. 78f(b).
\19\ 15 U.S.C. 78f(b)(5).
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The Exchange also believes that the proposed rule change is
consistent with Section 11(A) of the Act \20\ in that it supports (1)
fair competition among brokers and dealers, among exchange markets, and
between exchange markets and markets other than exchange markets and
(2) the availability to brokers, dealers, and investors of information
with respect to quotations for and transactions in securities.
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\20\ 15 U.S.C. 78k-1.
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Furthermore, the Exchange believes that the proposed rule change is
consistent with Rule 603 of Regulation NMS,\21\ 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. In adopting Regulation NMS, the
Commission granted self-regulatory organizations and broker dealers
increased authority and flexibility to offer new and unique market data
to consumers of such data. It was believed that this authority would
expand the amount of data available to users and consumers of such data
and also spur innovation and competition for the provision of market
data.
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\21\ 17 CFR 242.603.
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The proposed rule change is designed to promote just and equitable
principles of trade and remove impediments to and perfect the mechanism
of a free and open market and a national market system by identifying
the consolidated high and low price for all listed equity securities as
obtained directly from the SIPs. Such information would provide NYSE
BQT users with a static benchmark against which to compare price
movements shown on NYSE BQT using high and low prices in the
consolidated market. Therefore, the consolidated high and low price for
listed equity securities would provide meaningful information to
investors.
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 such
[[Page 52507]]
information. As noted above, another exchange currently provides
consolidated high and low price information in their competing market
data products.\22\ Therefore, the Exchange believes the proposed rule
change removes impediments to and perfects the mechanism of a free and
open market and a national market system, and, in general, protects
investors and the public interest as it would provide an additional
avenue for investors to receive this information from a competing
product.
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\22\ See, note 15, supra.
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In addition, this proposal would not permit unfair discrimination
because NYSE BQT will continue to be available to all of the Exchange's
customers through SFTI and market data vendors on an equivalent basis.
In addition, any customer that wished to continue to be able to
purchase one or more of the individual underlying data feeds would be
able to do so.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\23\ the Exchange
does not believe that the proposed rule change will impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of the Act. The Exchange believes that the proposed rule
change will enhance competition because it would enable the Exchange to
include the consolidated high and low price as part of NYSE BQT,
thereby enabling it to better compete with similar market data products
offered by another exchange that includes such information.\24\ As
noted above, the Exchange already offers NYSE BQT and this proposed
rule change simply amends the content of the current market data
product to include the consolidated high and low price for all listed
equity securities. The Exchange is not the exclusive distributor of the
consolidated high and low price information that would compose the
amended NYSE BQT data feed. Vendors 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. Specifically, a
competing vendor could receive the consolidated high and low price from
the SIPs and include that information as part of their market data
products to be disseminated to customers pursuant to the same terms and
policies as the Exchange.\25\
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\23\ 15 U.S.C. 78f(b)(8).
\24\ See, note 15, supra.
\25\ See CTA Consolidated Volume Display Policy with FAQ at
https://www.ctaplan.com/publicdocs/ctaplan/notifications/traderupdate/CTA%20Consolidated%20Volume%20Policy%20FAQ.pdf.
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The Exchange believes the proposal will have no impact on
intramarket competition as the proposal is not targeted at, or expected
to be limited in its applicability to, any particular segment of market
participants and no segment of retail investors, the general investing
public, or any other market participant is expected to benefit more
than any other. Therefore, the Exchange believes the inclusion of the
consolidated high and low price in NYSE BQT would not impose any burden
on competition not necessary or appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \26\ and Rule 19b-4(f)(6) thereunder.\27\
Because the proposed rule change does not (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \28\ and Rule
19b-4(f)(6)(iii) thereunder.\29\
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\26\ 15 U.S.C. 78s(b)(3)(A)(iii).
\27\ 17 CFR 240.19b-4(f)(6).
\28\ 15 U.S.C. 78s(b)(3)(A)(iii).
\29\ 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 fulfilled this requirement.
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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) \30\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\30\ 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-2021-51 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-2021-51. 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
[[Page 52508]]
to make available publicly. All submissions should refer to File Number
SR-NYSE-2021-51 and should be submitted on or before October 12, 2021.
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\31\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-20331 Filed 9-20-21; 8:45 am]
BILLING CODE 8011-01-P
