80_FR_12269 80 FR 12225 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Specifying in Exchange Rules the Exchange's Use of Certain Data Feeds for Order Handling and Execution, Order Routing, and Regulatory Compliance

80 FR 12225 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Specifying in Exchange Rules the Exchange's Use of Certain Data Feeds for Order Handling and Execution, Order Routing, and Regulatory Compliance

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 44 (March 6, 2015)

Page Range12225-12227
FR Document2015-05162

Federal Register, Volume 80 Issue 44 (Friday, March 6, 2015)
[Federal Register Volume 80, Number 44 (Friday, March 6, 2015)]
[Notices]
[Pages 12225-12227]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-05162]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74408; File No. SR-NYSEMKT-2015-11]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Specifying in Exchange 
Rules the Exchange's Use of Certain Data Feeds for Order Handling and 
Execution, Order Routing, and Regulatory Compliance

 March 2, 2015.
    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 February 24, 2015, NYSE MKT LLC (the ``Exchange'' or 
``NYSE MKT'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 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 specify in Exchange rules the Exchange's 
use of certain data feeds for order handling and execution, order 
routing, and regulatory compliance. The text of the proposed rule 
change is available on the Exchange's Web site at www.nyse.com, at the 
principal office of the Exchange, and at the Commission's Public 
Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

[[Page 12226]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On June 5, 2014, in a speech entitled ``Enhancing Our Market Equity 
Structure,'' Mary Jo White, Chair of the Securities and Exchange 
Commission (``SEC'' or the ``Commission'') requested the equity 
exchanges to file with the Commission the data feeds used for purposes 
of (1) order handling and execution (e.g., with pegged or midpoint 
orders); (2) order routing, and (3) regulatory compliance, if 
applicable.\4\ Subsequent to the Chair's speech, the Division of 
Trading and Markets stated that it ``believes there is a need for 
clarity regarding whether (1) the SIP data feeds, (2) proprietary data 
feeds, or (3) a combination thereof,'' are used for these purposes and 
requested that proposed rule changes be filed that disclose such 
information.\5\ The stated goal of disclosing this information was to 
provide broker-dealers and investors with enhanced transparency to 
better assess the quality of an exchange's execution and routing 
services.
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    \4\ See Mary Jo White, Chair, Securities and Exchange 
Commission, Speech at the Sandler, O'Neill & Partners, L.P. Global 
Exchange and Brokerage Conference (June 5, 2014) (available at 
www.sec.gov/News/Speech/Detail/Speech/1370542004312#.U5HI-fmwJiw).
    \5\ See Letter from James Burns, Deputy Director, Division of 
Trading and Markets, Securities and Exchange Commission, to Jeffrey 
C. Sprecher, Chief Executive Officer, Intercontinental Exchange, 
Inc., dated June 20, 2014.
---------------------------------------------------------------------------

    On July 18, 2014, in response to the above request, the Exchange 
filed a proposed rule change that clarified the Exchange's use of 
certain data feeds for order handling and execution, order routing, and 
regulatory compliance.\6\ As noted in that filing, the data feeds 
available for the purposes of order handling and execution, order 
routing, and regulatory compliance at the Exchange include the 
exclusive securities information processor (``SIP'') data feeds.\7\
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    \6\ See Securities Exchange Act Release No. 72709 (July 29, 
2014), 79 FR 45513 (Aug. 5, 2014) (SR-NYSEMKT-2014-62) (``July 2014 
Data Feed Filing'').
    \7\ The SIP feeds are disseminated pursuant to effective joint-
industry plans as required by Rule 603(b) of Regulation NMS. 17 CFR 
242.603(b). The three joint-industry plans are: (1) The CTA Plan, 
which is operated by the Consolidated Tape Association and 
disseminates transaction information for securities with the primary 
listing market on exchanges other than NASDAQ Stock Market LLC 
(``Nasdaq''): (2) The CQ Plan, which disseminates consolidated 
quotation information for securities with their primary listing on 
exchanges other than Nasdaq; and (3) the Nasdaq UTP Plan, which 
disseminates consolidated transaction and quotation information for 
securities with their primary listing on Nasdaq.
---------------------------------------------------------------------------

    SEC staff has requested that the Exchange file a supplemental 
proposed rule change to specify in Exchange rules which data feeds the 
Exchange uses for the above-described purposes. Accordingly, the 
Exchange is filing this proposed rule change.
    As set forth in its July 2014 Data Feed Filing, the Exchange uses 
only the SIP data feeds to determine protected quotations on markets 
other than the Exchange \8\ for purposes of compliance with Rule 611 
and Rule 610(d), including identifying where to route ISOs, to 
calculate the protected best bid or offer (``PBBO'') for purposes of 
order types that are priced based on the PBBO, and to determine the 
national best bid (``NBB'') \9\ for purposes of compliance with Rule 
201 of Regulation SHO and Rule 440B--Equities.\10\ The Exchange notes 
that when it routes interest to a protected quotation, the Exchange 
adjusts the PBBO.
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    \8\ The Exchange notes that because the FINRA Alternate Display 
Facility (``ADF'') does not currently display any quotations, the 
Exchange does not need any data feeds to provide it with ADF quotes.
    \9\ The NBBO is defined as the best bid and best offer of an NMS 
security. 17 CFR 242.600(b)(3). The Exchange notes that the NBBO may 
differ from the PBBO because the NBBO includes Manual Quotations, 
which are defined as any quotation other than an automated 
quotation. 17 CFR 242.600(b)(37). By contrast, a protected quotation 
is an automated quotation that is the best bid or offer of a 
national securities exchange. 17 CFR 242.60)(b)(57)(iii).
    \10\ Rule 440B(b)--Equities requires that Exchange systems not 
execute or display a short sale order with respect to a covered 
security at a price that is less than or equal to the current NBB if 
the price of that security decreases by 10% or more, as determined 
by the Exchange, from the security's closing price on the Exchange 
at the end of regular trading hours on the prior day.
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    The Exchange proposes to add new Supplementary Material .01 to Rule 
19--Equities, which would state the following:
    .01 The Exchange uses the following data feeds for the handing, 
execution, and routing of orders, as well as for regulatory compliance:

------------------------------------------------------------------------
                                                             Secondary
           Market center               Primary source         source
------------------------------------------------------------------------
BATS Exchange, Inc................  SIP Data Feed.......             n/a
BATS Y-Exchange, Inc..............  SIP Data Feed.......             n/a
Chicago Stock Exchange, Inc.......  SIP Data Feed.......             n/a
EDGA Exchange, Inc................  SIP Data Feed.......             n/a
EDGX Exchange, Inc................  SIP Data Feed.......             n/a
NASDAQ OMX BX LLC.................  SIP Data Feed.......             n/a
NASDAQ OMX PHLX LLC...............  SIP Data Feed.......             n/a
NASDAQ Stock Market LLC...........  SIP Data Feed.......             n/a
NYSE Arca Equities, Inc...........  SIP Data Feed.......             n/a
------------------------------------------------------------------------

    The Exchange notes that it does not trade any securities listed on 
the New York Stock Exchange LLC.
 2. Statutory Basis
    The proposed rule change is consistent with section 6(b) of the 
Securities Exchange Act of 1934 (the ``Act''),\11\ in general, and 
furthers the objectives of section 6(b)(5),\12\ in particular, because 
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. The Exchange 
believes that the proposed rule change removes impediments to and 
perfects the mechanism of a free and open market because it provides 
enhanced transparency to better assess the quality of an exchange's 
execution and routing services.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance

[[Page 12227]]

of the purposes of the Act. The proposed change is not designed to 
address any competitive issue but rather would provide the public and 
investors with information about which data feeds the Exchange uses for 
execution and routing decisions.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the proposed rule change does not (i) significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, the proposed rule change has become effective 
pursuant to section 19(b)(3)(A) of the Act\13\ and Rule 19b-4(f)(6) 
thereunder.\14\
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the 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.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \15\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. The Exchange 
stated that waiver of the operative delay will permit the Exchange to 
immediately provide the enhanced transparency in Exchange rules. The 
Commission believes the waiver of the operative delay is consistent 
with the protection of investors and the public interest. Therefore, 
the Commission hereby waives the operative delay and designates the 
proposal operative upon filing.\17\
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    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NYSEMKT-2015-11 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-NYSEMKT-2015-11. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEMKT-2015-11 and should 
be submitted on or before March 27, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-05162 Filed 3-5-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                  Federal Register / Vol. 80, No. 44 / Friday, March 6, 2015 / Notices                                                 12225

                                                  III. Discussion and Commission                          expected to allow for timely recovery of               SECURITIES AND EXCHANGE
                                                  Findings                                                operations and fulfillment of ICC’s                    COMMISSION
                                                     Section 19(b)(2)(C) of the Act 6 directs             obligations upon disruption. The
                                                  the Commission to approve a proposed                    Commission therefore believes that the                 [Release No. 34–74408; File No. SR–
                                                  rule change of a self-regulatory                        proposed rule change is reasonably                     NYSEMKT–2015–11]
                                                  organization if the Commission finds                    designed to identify sources of
                                                  that such proposed rule change is                       operational risk and minimize them                     Self-Regulatory Organizations; NYSE
                                                  consistent with the requirements of the                 through the development and                            MKT LLC; Notice of Filing and
                                                  Act and the rules and regulations                       implementation of appropriate systems,                 Immediate Effectiveness of Proposed
                                                  thereunder applicable to such self-                     controls, and procedures and have                      Rule Change Specifying in Exchange
                                                  regulatory organization. Section                        business continuity plans that allow for               Rules the Exchange’s Use of Certain
                                                  17A(b)(3)(F) of the Act 7 requires, among               timely recovery of operations and                      Data Feeds for Order Handling and
                                                  other things, that the rules of a clearing              fulfillment of a clearing agency’s                     Execution, Order Routing, and
                                                  agency are designed to promote the                      obligations, consistent with the                       Regulatory Compliance
                                                  prompt and accurate clearance and                       requirements of Rule 17Ad–22(d)(4).10
                                                  settlement of securities transactions                   Accordingly, the Commission believes
                                                                                                                                                                 March 2, 2015.
                                                  and, to the extent applicable, derivative                                                                         Pursuant to section 19(b)(1) 1 of the
                                                                                                          that the proposed rule change is
                                                  agreements, contracts, and transactions,                                                                       Securities Exchange Act of 1934 (the
                                                                                                          designed to promote the prompt and
                                                  to assure the safeguarding of securities                                                                       ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                  and funds which are in the custody or                   accurate settlement of securities and
                                                                                                          derivatives transactions, consistent with              notice is hereby given that, on February
                                                  control of the clearing agency or for
                                                                                                          Section 17A(b)(3)(F) of the Act.11                     24, 2015, NYSE MKT LLC (the
                                                  which it is responsible and, in general,
                                                  to protect investors and the public                                                                            ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
                                                                                                          IV. Conclusion                                         the Securities and Exchange
                                                  interest. In addition, Rule 17Ad–
                                                  22(d)(4) 8 requires registered clearing                   On the basis of the foregoing, the                   Commission (the ‘‘Commission’’) the
                                                  agencies, among other things, to                        Commission finds that the proposal is                  proposed rule change as described in
                                                  establish, implement, maintain, and                     consistent with the requirements of the                Items I and II below, which Items have
                                                  enforce written policies and procedures                 Act and in particular with the                         been prepared by the self-regulatory
                                                  reasonably designed to identify sources                 requirements of Section 17A of the                     organization. The Commission is
                                                  of operational risk and minimize them                   Act 12 and the rules and regulations                   publishing this notice to solicit
                                                  through the development and                             thereunder.                                            comments on the proposed rule change
                                                  implementation of appropriate systems,                                                                         from interested persons.
                                                  controls, and procedures and have                         IT IS THEREFORE ORDERED,
                                                                                                          pursuant to Section 19(b)(2) of the                    I. Self-Regulatory Organization’s
                                                  business continuity plans that allow for
                                                  timely recovery of operations and                       Act,13 that the proposed rule change                   Statement of the Terms of Substance of
                                                  fulfillment of a clearing agency’s                      (File No. SR–ICC–2014–19) be, and                      the Proposed Rule Change
                                                  obligations.                                            hereby is, approved.14
                                                                                                                                                                    The Exchange proposes to specify in
                                                     The Commission finds that the                          For the Commission, by the Division of               Exchange rules the Exchange’s use of
                                                  proposed rule change is consistent with                 Trading and Markets, pursuant to delegated             certain data feeds for order handling
                                                  Section 17A of the Act 9 and the rules                  authority.15                                           and execution, order routing, and
                                                  thereunder applicable to ICC. ICC’s
                                                  Operational Risk Management                             Brent J. Fields,                                       regulatory compliance. The text of the
                                                  Framework establishes clear policies                    Secretary.                                             proposed rule change is available on the
                                                  and procedures to identify and evaluate                 [FR Doc. 2015–05155 Filed 3–5–15; 8:45 am]             Exchange’s Web site at www.nyse.com,
                                                  potential operational risks in each of its                                                                     at the principal office of the Exchange,
                                                                                                          BILLING CODE 8011–01–P
                                                  major clearing processes, and to                                                                               and at the Commission’s Public
                                                  recommend controls to mitigate                                                                                 Reference Room.
                                                  identified risks, each of which are                                                                            II. Self-Regulatory Organization’s
                                                  reasonably designed to identify,                                                                               Statement of the Purpose of, and
                                                  monitor, and manage of all plausible
                                                                                                                                                                 Statutory Basis for, the Proposed Rule
                                                  sources of operational risk.
                                                                                                                                                                 Change
                                                  Furthermore, the Operational Risk
                                                  Management Framework establishes                                                                                 In its filing with the Commission, the
                                                  clearly defined operational performance                                                                        self-regulatory organization included
                                                  objectives that are expected to serve as                                                                       statements concerning the purpose of,
                                                  benchmarks for evaluating operational                                                                          and basis for, the proposed rule change
                                                  efficiency and effectiveness, and to                                                                           and discussed any comments it received
                                                  evaluate operational performance                                                                               on the proposed rule change. The text
                                                  measurements against such objectives,
                                                                                                                                                                 of those statements may be examined at
                                                  each of which are expected to enhance
                                                                                                                                                                 the places specified in Item IV below.
                                                  ICC’s ability to mitigate operational risk.               10 17  CFR 240.17Ad–22(d)(4).
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                                                  Finally, the Operational Risk                             11 15  U.S.C. 78q–1(b)(3)(F).
                                                                                                                                                                 The Exchange has prepared summaries,
                                                  Management Framework incorporates a                        12 15 U.S.C. 78q–1.                                 set forth in sections A, B, and C below,
                                                  business continuity plan that is                           13 15 U.S.C. 78s(b)(2).                             of the most significant parts of such
                                                                                                             14 In approving the proposed rule change, the       statements.
                                                    6 15 U.S.C. 78s(b)(2)(C).                             Commission considered the proposal’s impact on
                                                    7 15 U.S.C. 78q–1(b)(3)(F).                           efficiency, competition and capital formation. 15        1 15 U.S.C.78s(b)(1).
                                                    8 17 CFR 240.17Ad–22(d)(4).                           U.S.C. 78c(f).                                           2 15 U.S.C. 78a.
                                                    9 15 U.S.C. 78q–1.                                       15 17 CFR 200.30–3(a)(12).                            3 17 CFR 240.19b–4.




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                                                  12226                                    Federal Register / Vol. 80, No. 44 / Friday, March 6, 2015 / Notices

                                                  A. Self-Regulatory Organization’s                                    goal of disclosing this information was                                As set forth in its July 2014 Data Feed
                                                  Statement of the Purpose of, and                                     to provide broker-dealers and investors                              Filing, the Exchange uses only the SIP
                                                  Statutory Basis for, the Proposed Rule                               with enhanced transparency to better                                 data feeds to determine protected
                                                  Change                                                               assess the quality of an exchange’s                                  quotations on markets other than the
                                                                                                                       execution and routing services.                                      Exchange 8 for purposes of compliance
                                                  1. Purpose
                                                                                                                         On July 18, 2014, in response to the                               with Rule 611 and Rule 610(d),
                                                     On June 5, 2014, in a speech entitled                                                                                                  including identifying where to route
                                                  ‘‘Enhancing Our Market Equity                                        above request, the Exchange filed a
                                                                                                                       proposed rule change that clarified the                              ISOs, to calculate the protected best bid
                                                  Structure,’’ Mary Jo White, Chair of the                                                                                                  or offer (‘‘PBBO’’) for purposes of order
                                                  Securities and Exchange Commission                                   Exchange’s use of certain data feeds for
                                                                                                                       order handling and execution, order                                  types that are priced based on the
                                                  (‘‘SEC’’ or the ‘‘Commission’’) requested                                                                                                 PBBO, and to determine the national
                                                  the equity exchanges to file with the                                routing, and regulatory compliance.6 As
                                                                                                                       noted in that filing, the data feeds                                 best bid (‘‘NBB’’) 9 for purposes of
                                                  Commission the data feeds used for                                                                                                        compliance with Rule 201 of Regulation
                                                  purposes of (1) order handling and                                   available for the purposes of order
                                                                                                                       handling and execution, order routing,                               SHO and Rule 440B—Equities.10 The
                                                  execution (e.g., with pegged or midpoint                                                                                                  Exchange notes that when it routes
                                                  orders); (2) order routing, and (3)                                  and regulatory compliance at the
                                                                                                                       Exchange include the exclusive                                       interest to a protected quotation, the
                                                  regulatory compliance, if applicable.4                                                                                                    Exchange adjusts the PBBO.
                                                  Subsequent to the Chair’s speech, the                                securities information processor (‘‘SIP’’)
                                                  Division of Trading and Markets stated                               data feeds.7                                                           The Exchange proposes to add new
                                                  that it ‘‘believes there is a need for                                 SEC staff has requested that the                                   Supplementary Material .01 to Rule
                                                  clarity regarding whether (1) the SIP                                Exchange file a supplemental proposed                                19—Equities, which would state the
                                                  data feeds, (2) proprietary data feeds, or                           rule change to specify in Exchange rules                             following:
                                                  (3) a combination thereof,’’ are used for                            which data feeds the Exchange uses for                                 .01 The Exchange uses the following
                                                  these purposes and requested that                                    the above-described purposes.                                        data feeds for the handing, execution,
                                                  proposed rule changes be filed that                                  Accordingly, the Exchange is filing this                             and routing of orders, as well as for
                                                  disclose such information.5 The stated                               proposed rule change.                                                regulatory compliance:

                                                                                                                                                                                                                                              Secondary
                                                                                                   Market center                                                                             Primary source                                    source

                                                  BATS Exchange, Inc. ...................................................................................................    SIP   Data   Feed   ..........................................           n/a
                                                  BATS Y-Exchange, Inc. ...............................................................................................      SIP   Data   Feed   ..........................................           n/a
                                                  Chicago Stock Exchange, Inc. .....................................................................................         SIP   Data   Feed   ..........................................           n/a
                                                  EDGA Exchange, Inc. ..................................................................................................     SIP   Data   Feed   ..........................................           n/a
                                                  EDGX Exchange, Inc. ..................................................................................................     SIP   Data   Feed   ..........................................           n/a
                                                  NASDAQ OMX BX LLC ...............................................................................................          SIP   Data   Feed   ..........................................           n/a
                                                  NASDAQ OMX PHLX LLC ...........................................................................................            SIP   Data   Feed   ..........................................           n/a
                                                  NASDAQ Stock Market LLC ........................................................................................           SIP   Data   Feed   ..........................................           n/a
                                                  NYSE Arca Equities, Inc. .............................................................................................     SIP   Data   Feed   ..........................................           n/a



                                                     The Exchange notes that it does not                               acts and practices, to promote just and                              mechanism of a free and open market
                                                  trade any securities listed on the New                               equitable principles of trade, to foster                             because it provides enhanced
                                                  York Stock Exchange LLC.                                             cooperation and coordination with                                    transparency to better assess the quality
                                                                                                                       persons engaged in facilitating                                      of an exchange’s execution and routing
                                                  2. Statutory Basis
                                                                                                                       transactions in securities, to remove                                services.
                                                     The proposed rule change is                                       impediments to, and perfect the
                                                                                                                                                                                            B. Self-Regulatory Organization’s
                                                  consistent with section 6(b) of the                                  mechanism of, a free and open market                                 Statement on Burden on Competition
                                                  Securities Exchange Act of 1934 (the                                 and a national market system and, in
                                                  ‘‘Act’’),11 in general, and furthers the                             general, to protect investors and the                                  The Exchange does not believe that
                                                  objectives of section 6(b)(5),12 in                                  public interest. The Exchange believes                               the proposed rule change will impose
                                                  particular, because it is designed to                                that the proposed rule change removes                                any burden on competition that is not
                                                  prevent fraudulent and manipulative                                  impediments to and perfects the                                      necessary or appropriate in furtherance
                                                     4 See Mary Jo White, Chair, Securities and                        three joint-industry plans are: (1) The CTA Plan,                    Exchange notes that the NBBO may differ from the
                                                  Exchange Commission, Speech at the Sandler,                          which is operated by the Consolidated Tape                           PBBO because the NBBO includes Manual
                                                  O’Neill & Partners, L.P. Global Exchange and                         Association and disseminates transaction                             Quotations, which are defined as any quotation
                                                  Brokerage Conference (June 5, 2014) (available at                    information for securities with the primary listing                  other than an automated quotation. 17 CFR
                                                  www.sec.gov/News/Speech/Detail/Speech/137054                         market on exchanges other than NASDAQ Stock                          242.600(b)(37). By contrast, a protected quotation is
                                                  2004312#.U5HI-fmwJiw).                                               Market LLC (‘‘Nasdaq’’): (2) The CQ Plan, which                      an automated quotation that is the best bid or offer
                                                     5 See Letter from James Burns, Deputy Director,                   disseminates consolidated quotation information                      of a national securities exchange. 17 CFR
                                                                                                                       for securities with their primary listing on
                                                  Division of Trading and Markets, Securities and                                                                                           242.60)(b)(57)(iii).
                                                                                                                       exchanges other than Nasdaq; and (3) the Nasdaq
                                                  Exchange Commission, to Jeffrey C. Sprecher, Chief                   UTP Plan, which disseminates consolidated
                                                                                                                                                                                               10 Rule 440B(b)—Equities requires that Exchange
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                                                  Executive Officer, Intercontinental Exchange, Inc.,                  transaction and quotation information for securities                 systems not execute or display a short sale order
                                                  dated June 20, 2014.                                                 with their primary listing on Nasdaq.                                with respect to a covered security at a price that is
                                                     6 See Securities Exchange Act Release No. 72709                      8 The Exchange notes that because the FINRA                       less than or equal to the current NBB if the price
                                                  (July 29, 2014), 79 FR 45513 (Aug. 5, 2014) (SR–                     Alternate Display Facility (‘‘ADF’’) does not                        of that security decreases by 10% or more, as
                                                  NYSEMKT–2014–62) (‘‘July 2014 Data Feed                              currently display any quotations, the Exchange does                  determined by the Exchange, from the security’s
                                                  Filing’’).                                                           not need any data feeds to provide it with ADF                       closing price on the Exchange at the end of regular
                                                     7 The SIP feeds are disseminated pursuant to                      quotes.                                                              trading hours on the prior day.
                                                                                                                                                                                               11 15 U.S.C. 78f(b).
                                                  effective joint-industry plans as required by Rule                      9 The NBBO is defined as the best bid and best

                                                  603(b) of Regulation NMS. 17 CFR 242.603(b). The                     offer of an NMS security. 17 CFR 242.600(b)(3). The                     12 15 U.S.C. 78f(b)(5).




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                                                                                   Federal Register / Vol. 80, No. 44 / Friday, March 6, 2015 / Notices                                                 12227

                                                  of the purposes of the Act. The                            At any time within 60 days of the                  submissions. You should submit only
                                                  proposed change is not designed to                      filing of the proposed rule change, the               information that you wish to make
                                                  address any competitive issue but rather                Commission summarily may                              available publicly. All submissions
                                                  would provide the public and investors                  temporarily suspend such rule change if               should refer to File Number SR–
                                                  with information about which data                       it appears to the Commission that such                NYSEMKT–2015–11 and should be
                                                  feeds the Exchange uses for execution                   action is necessary or appropriate in the             submitted on or before March 27, 2015.
                                                  and routing decisions.                                  public interest, for the protection of
                                                                                                          investors, or otherwise in furtherance of               For the Commission, by the Division of
                                                  C. Self-Regulatory Organization’s                                                                             Trading and Markets, pursuant to delegated
                                                                                                          the purposes of the Act. If the
                                                  Statement on Comments on the                                                                                  authority.18
                                                                                                          Commission takes such action, the
                                                  Proposed Rule Change Received From                                                                            Brent J. Fields,
                                                                                                          Commission shall institute proceedings
                                                  Members, Participants, or Others
                                                                                                          to determine whether the proposed rule                Secretary.
                                                    No written comments were solicited                    should be approved or disapproved.                    [FR Doc. 2015–05162 Filed 3–5–15; 8:45 am]
                                                  or received with respect to the proposed
                                                  rule change.                                            IV. Solicitation of Comments                          BILLING CODE 8011–01–P

                                                                                                            Interested persons are invited to
                                                  III. Date of Effectiveness of the
                                                                                                          submit written data, views and                        SECURITIES AND EXCHANGE
                                                  Proposed Rule Change and Timing for
                                                                                                          arguments concerning the foregoing,
                                                  Commission Action                                                                                             COMMISSION
                                                                                                          including whether the proposed rule
                                                     Because the proposed rule change                     change is consistent with the Act.
                                                  does not (i) significantly affect the                   Comments may be submitted by any of                   [File No. 500–1]
                                                  protection of investors or the public                   the following methods:
                                                  interest; (ii) impose any significant                                                                         In the Matter of Spriza, Inc.; Order of
                                                  burden on competition; and (iii) become                 Electronic Comments                                   Suspension of Trading
                                                  operative for 30 days from the date on                    • Use the Commission’s Internet
                                                                                                                                                                March 4, 2015.
                                                  which it was filed, or such shorter time                comment form (http://www.sec.gov/
                                                  as the Commission may designate, the                    rules/sro.shtml); or                                     It appears to the Securities and
                                                  proposed rule change has become                           • Send an email to rule-comments@                   Exchange Commission that there is a
                                                  effective pursuant to section 19(b)(3)(A)               sec.gov. Please include File Number SR–               lack of current and accurate information
                                                  of the Act13 and Rule 19b–4(f)(6)                       NYSEMKT–2015–11 on the subject line.                  concerning the securities of Spriza, Inc.
                                                  thereunder.14                                           Paper Comments                                        because of questions regarding the
                                                     A proposed rule change filed                                                                               accuracy of assertions by Spriza, Inc.,
                                                  pursuant to Rule 19b–4(f)(6) under the                     • Send paper comments in triplicate
                                                                                                                                                                including assertions regarding business
                                                  Act 15 normally does not become                         to Secretary, Securities and Exchange
                                                                                                          Commission, 100 F Street NE.,                         relationships in a company press release
                                                  operative for 30 days after the date of its
                                                                                                          Washington, DC 20549–1090.                            dated February 6, 2015, a Form 8–K and
                                                  filing. However, Rule 19b–4(f)(6)(iii) 16
                                                                                                          All submissions should refer to File                  in a video created by the company.
                                                  permits the Commission to designate a
                                                  shorter time if such action is consistent               Number SR–NYSEMKT–2015–11. This                       Spriza, Inc. is a Nevada corporation
                                                  with the protection of investors and the                file number should be included on the                 with its principal place of business
                                                  public interest. The Exchange has asked                 subject line if email is used. To help the            located in El Segundo, California.
                                                  the Commission to waive the 30-day                      Commission process and review your                       The Commission is of the opinion that
                                                  operative delay so that the proposal may                comments more efficiently, please use                 the public interest and the protection of
                                                  become operative immediately upon                       only one method. The Commission will                  investors require a suspension of trading
                                                  filing. The Exchange stated that waiver                 post all comments on the Commission’s                 in the securities of the above-listed
                                                  of the operative delay will permit the                  Internet Web site (http://www.sec.gov/                company.
                                                  Exchange to immediately provide the                     rules/sro.shtml). Copies of the
                                                                                                                                                                   Therefore, it is ordered, pursuant to
                                                  enhanced transparency in Exchange                       submission, all subsequent
                                                  rules. The Commission believes the                                                                            Section 12(k) of the Securities Exchange
                                                                                                          amendments, all written statements
                                                  waiver of the operative delay is                        with respect to the proposed rule                     Act of 1934, that trading in the
                                                  consistent with the protection of                       change that are filed with the                        securities of the above-listed company is
                                                  investors and the public interest.                      Commission, and all written                           suspended for the period commencing
                                                  Therefore, the Commission hereby                        communications relating to the                        at 9:30 a.m. EST, on March 4, 2015 and
                                                  waives the operative delay and                          proposed rule change between the                      terminating at 11:59 p.m. EDT, on
                                                  designates the proposal operative upon                  Commission and any person, other than                 March 17, 2015.
                                                  filing.17                                               those that may be withheld from the                      By the Commission.
                                                                                                          public in accordance with the                         Jill M. Peterson,
                                                    13 15  U.S.C. 78s(b)(3)(A).                           provisions of 5 U.S.C. 552, will be
                                                    14 17  CFR 240.19b–4(f)(6). As required under Rule                                                          Assistant Secretary.
                                                                                                          available for Web site viewing and
                                                  19b–4(f)(6)(iii), the Exchange provided the                                                                   [FR Doc. 2015–05373 Filed 3–4–15; 4:15 pm]
                                                  Commission with written notice of its intent to file    printing in the Commission’s Public
                                                  the proposed rule change, along with a brief            Reference Room, 100 F Street, NE.,                    BILLING CODE 8011–01–P
                                                  description and the text of the proposed rule           Washington, DC 20549, on official
                                                  change, at least five business days prior to the date
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                                                  of filing of the proposed rule change, or such
                                                                                                          business days between the hours of
                                                  shorter time as designated by the Commission.           10:00 a.m. and 3:00 p.m. Copies of the
                                                     15 17 CFR 240.19b–4(f)(6).                           filing also will be available for
                                                     16 17 CFR 240.19b–4(f)(6)(iii).
                                                                                                          inspection and copying at the principal
                                                     17 For purposes only of waiving the 30-day
                                                                                                          office of the Exchange. All comments
                                                  operative delay, the Commission has also
                                                  considered the proposed rule’s impact on
                                                                                                          received will be posted without change;
                                                  efficiency, competition, and capital formation. See     the Commission does not edit personal
                                                  15 U.S.C. 78c(f).                                       identifying information from                            18 17   CFR 200.30–3(a)(12).



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Document Created: 2018-02-21 09:33:28
Document Modified: 2018-02-21 09:33:28
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 12225 

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