80 FR 46628 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change Amending the NYSE Trades Market Data Product Offering

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 150 (August 5, 2015)

Page Range		46628-46630
FR Document		2015-19126
Federal Register, Volume 80 Issue 150 (Wednesday, August 5, 2015)
[Federal Register Volume 80, Number 150 (Wednesday, August 5, 2015)]
[Notices]
[Pages 46628-46630]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-19126]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75556; File No. SR-NYSE-2015-31]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change Amending the NYSE Trades 
Market Data Product Offering

July 30, 2015.
    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 July 16, 2015, New York Stock Exchange LLC (the ``Exchange'' or 
``NYSE'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE Trades market data product 
offering. 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.

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

1. Purpose
    The Exchange proposes to amend the NYSE Trades market data feed 
product offering.
    NYSE Trades is an NYSE-only last-sale market data feed. NYSE Trades 
currently allows vendors, broker-dealers and others to make available 
on a real-time basis the same last sale information that the Exchange 
reports under the Consolidated Tape Association (``CTA'') Plan for 
inclusion in the CTA Plan's consolidated data streams. Specifically, 
the NYSE Trades feed includes, for each security traded on the 
Exchange, the real-time last sale price, time and size information and 
bid/ask quotations and a stock summary message. The stock summary 
message updates every minute and includes NYSE's opening price, high 
price, low price, closing price, and cumulative volume for the 
security.\3\
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    \3\ See Securities Exchange Act Release Nos. 62187 (May 27, 
2010), 75 FR 31500 (June 3, 2010) (SR-NYSEAmex-2010-35), 70065 (July 
30, 2013), 78 FR 47450 (Aug. 5, 2013) (SR-NYSEMKT-2013-64) and 69273 
(April 2, 2013), 78 FR 20969 (April 8, 2013) (SR-NYSEMKT-2013-30).
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    The Exchange has determined to modify the data content of NYSE 
Trades to remove the bid/ask data and to provide the individual orders 
that make up each reported trade.
    First, as noted above, the NYSE Trades data feed currently includes 
related bid/ask information at the time of each reported trade. The 
Exchange proposes to remove this limited bid/ask information from the 
NYSE Trades feed, thereby focusing the NYSE Trades feed on NYSE last 
sale information. This change would streamline the NYSE Trades content, 
as well as align NYSE Trades content with that of last sale data feeds 
offered by other exchanges.\4\ The NYSE BBO data feed includes, and 
would continue to include, the best bids and offers for all securities 
that are traded on the Exchange for which NYSE reports quotes under the 
Consolidated Quotation (``CQ'') Plan for inclusion in the CQ Plan's 
consolidated quotation information data stream.\5\
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    \4\ See NASDAQ Rule 7039 (Nasdaq Last Sale) and BATS Rule 
11.22(g) (BATS Last Sale).
    \5\ See Securities Exchange Act Release No. 72326 (June 5, 
2014), 79 FR 33605 (June 11, 2014) (SR-NYSEMKT-2014-49).
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    Second, the Exchange currently reports to the CTA and distributes 
on a real-time basis via NYSE Trades the real-time NYSE last sale price 
information based on the completed trade of an arriving order. For 
example, if an arriving order of 1000 shares trades with five resting 
orders of 200 shares each, the Exchange reports a completed trade of 
1000 shares. The Exchange proposes to distribute NYSE last sale 
information in NYSE Trades in a format that would be based on the 
individual resting orders that comprise the completed trade. In the 
example above, the Exchange would distribute via NYSE Trades the real-
time NYSE last sale information of five executions of 200 shares each, 
with the same time stamp for each individual component of the trade. 
These five transactions would have the same time stamp and would 
comprise the same information that is being provided to the CTA 
regarding the completed trade, which would not change. The Exchange 
would continue to make NYSE last sale information available through 
NYSE Trades immediately after it provides last sale information to the 
processor under the CTA Plan.
    The Exchange expects to offer both the current NYSE Trades data 
product and the proposed NYSE Trades data product for a limited 
transition period. After the transition period, the Exchange would stop 
offering the current NYSE Trades data product and offer only the NYSE 
Trades data product proposed in this filing. The Exchange would 
announce the transition dates in advance. There would be no change to 
the fees for NYSE Trades in connection with the proposed changes.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \6\ of the 
Act, in general, and furthers the objectives of Section 6(b)(5) \7\ 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

[[Page 46629]]

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.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that modifying the NYSE Trades product to 
remove the bid/ask information it currently includes and to provide 
only NYSE last sale information would streamline the product and 
clarify the purpose and use for each of the NYSE proprietary market 
data products. The amended feed would also align NYSE Trades' content 
with that of last sale data feeds offered by other exchanges, which 
similarly offer last sale market data products that do not include bid 
and offer information.\8\
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    \8\ See supra note 4.
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    The Exchange believes that modifying the NYSE Trades product to 
report last-sale information based on trades of individual resting 
orders, rather than based on the completed trade of an arriving order 
at a price, would remove impediments to and perfect the mechanism of a 
free and open market by providing vendors and subscribers who desire it 
with more granular trade information, thus promoting competition and 
innovation. The Exchange would continue to report to the CTA the last 
sale prices that reflect a completed trade \9\ and the NYSE Trades 
product would report the same volume and prices, but with more 
granularity regarding individual components of each completed trade. 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 Exchange believes 
that the data product modifications proposed herein, by focusing the 
NYSE Trades feed on last sale data by removing the bid/ask data, and by 
reporting last-sale information based on trades of resting orders, is 
precisely the sort of market data product enhancement that the 
Commission envisioned when it adopted Regulation NMS. The proposed 
changes are consistent with the requirements of the CTA Plan to provide 
the last sale prices reflecting completed transactions and with the 
principles embodied in Regulation NMS regarding the provision of market 
data by self-regulatory organizations to consumers of such data. The 
Commission concluded that Regulation NMS--by lessening regulation of 
the market in proprietary data--would itself further the Act's goals of 
facilitating efficiency and competition:
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    \9\ Pursuant to the CTA Plan, available here, https://www.ctaplan.com/publicdocs/ctaplan/notifications/plans/trader-update/5929.pdf, Participants to the CTA Plan are required to report 
``Last sale price information,'' which means ``(i) the last sale 
prices reflecting completed transaction in Eligible Securities, (ii) 
the volume and other information related to those transactions, 
(iii) the identifier of the Participant furnishing the prices and 
(iv) other related information.''

    [E]fficiency is promoted when broker-dealers who do not need the 
data beyond the prices, sizes, market center identifications of the 
NBBO and consolidated last sale information are not required to 
receive (and pay for) such data. The Commission also believes that 
efficiency is promoted when broker-dealers may choose to receive 
(and pay for) additional market data based on their own internal 
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analysis of the need for such data.\10\

    \10\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005) (File No. S7-10-04).
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    By removing ``unnecessary regulatory restrictions'' on the ability 
of exchanges to sell their own data, Regulation NMS advanced the goals 
of the Act and the principles reflected in its legislative history.
    The Exchange further notes that the existence of alternatives to 
the Exchange's products, including real-time consolidated data, free 
delayed consolidated data, and proprietary data from other sources, 
ensures that the Exchange is not unreasonably discriminatory because 
vendors and subscribers can elect these alternatives. In addition, the 
proposal would not permit unfair discrimination because the modified 
product would be available to all of the Exchange's vendors and 
customers on an equivalent basis.

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 of the purposes of the Act. The market for proprietary 
data products is currently competitive and inherently contestable 
because there is fierce competition for the inputs necessary to the 
creation of proprietary data. Numerous exchanges compete with each 
other for listings, trades, and market data itself, providing virtually 
limitless opportunities for entrepreneurs who wish to produce and 
distribute their own market data. This proprietary data is produced by 
each individual exchange, as well as other entities (such as 
internalizing broker-dealers and various forms of alternative trading 
systems, including dark pools and electronic communication networks), 
in a vigorously competitive market. It is common for market 
participants to further and exploit this competition by sending their 
order flow and transaction reports to multiple markets, rather than 
providing them all to a single market.

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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be 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 [email protected]. Please include 
File Number SR-NYSE-2015-31 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-2015-31. 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

[[Page 46630]]

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 NYSE. 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-NYSE-2015-31 and should be submitted on 
or before August 26, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-19126 Filed 8-4-15; 8:45 am]
 BILLING CODE 8011-01-P
46630 Federal Register / Vol. 80, No. 150 / Wednesday, August 5, 2015 / Notices

only one method. The Commission will rule change as described in Items I, II, adopt rules in the Consolidated FINRA
post all comments on the Commission’s and III below, which Items have been Rulebook. The phased adoption and
Internet Web site (http://www.sec.gov/ prepared by FINRA. FINRA has implementation of those rules
rules/sro.shtml). Copies of the designated the proposed rule change as necessitates periodic amendments to
submission, all subsequent constituting a ‘‘non-controversial’’ rule update rule cross-references and other
amendments, all written statements change under paragraph (f)(6) of Rule non-substantive changes in the
with respect to the proposed rule 19b–4 under the Act,3 which renders Consolidated FINRA Rulebook.
change that are filed with the the proposal effective upon receipt of The proposed rule change would
Commission, and all written this filing by the Commission. The make such changes, as well as other
communications relating to the Commission is publishing this notice to non-substantive changes unrelated to
proposed rule change between the solicit comments on the proposed rule the adoption of rules in the
Commission and any person, other than change from interested persons. Consolidated FINRA Rulebook.
those that may be withheld from the First, the proposed rule change would
public in accordance with the I. Self-Regulatory Organization’s update rule cross-references to reflect
provisions of 5 U.S.C. 552, will be Statement of the Terms of the Substance the adoption of new consolidated rules
available for Web site viewing and of the Proposed Rule Change regarding payments to unregistered
printing in the Commission’s Public FINRA is proposing to update cross- persons. On December 30, 2014, the SEC
Reference Room, 100 F Street NE., references and make other non- approved a proposed rule change to
Washington, DC 20549, on official substantive changes within FINRA adopt new FINRA Rules 0190 (Effective
business days between the hours of rules, primarily as the result of approval Date of Revocation, Cancellation,
10:00 a.m. and 3:00 p.m. Copies of the of new consolidated FINRA rules. Expulsion, Suspension or Resignation)
filing also will be available for The text of the proposed rule change and 2040 (Payments to Unregistered
inspection and copying at the principal is available on FINRA’s Web site at Persons). As part of that proposed rule
office of NYSE. All comments received http://www.finra.org, at the principal change, FINRA adopted the
will be posted without change; the office of FINRA and at the requirements of NASD IM–2420–1(a)
Commission does not edit personal Commission’s Public Reference Room. (Non-members of the Association), as
identifying information from FINRA Rule 0190. FINRA also deleted
submissions. You should submit only II. Self-Regulatory Organization’s in their entirety NASD Rule 1060(b),
information that you wish to make Statement of the Purpose of, and NASD Rule 2410, NASD Rule 2420,
available publicly. All submissions Statutory Basis for, the Proposed Rule NASD IM–2420–1, NASD IM–2420–2,
should refer to File Number SR–NYSE– Change Incorporated NYSE Rule 353, and
2015–31 and should be submitted on or In its filing with the Commission, Incorporated NYSE Rule Interpretations
before August 26, 2015. FINRA included statements concerning 345(a)(i)/01 through/03.5 The new rules
For the Commission, by the Division of the purpose of and basis for the will be implemented on August 24,
Trading and Markets, pursuant to delegated proposed rule change and discussed any 2015. As such, the proposed rule change
authority.11 comments it received on the proposed would update references to new Rule
Robert W. Errett, rule change. The text of these statements 0190 in FINRA Rule 6630 (Applicability
Deputy Secretary. may be examined at the places specified of FINRA Rules to Securities Previously
in Item IV below. FINRA has prepared Designated as PORTAL Securities).
[FR Doc. 2015–19126 Filed 8–4–15; 8:45 am]
summaries, set forth in sections A, B, Second, the proposed rule change
BILLING CODE 8011–01–P
and C below, of the most significant would make technical changes to
aspects of such statements. FINRA Rules 6282.03, 6380A.03,
6380B.03, and 6720(c)(1) (Alternative
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s Trading Systems) to reflect FINRA
COMMISSION Statement of the Purpose of, and Manual style convention changes.
[Release No. 34–75560; File No. SR–FINRA– Statutory Basis for, the Proposed Rule Finally, FINRA is proposing to make
2015–027] Change non-substantive changes to FINRA Rule
9217 (Violations Appropriate for
Self-Regulatory Organizations; 1. Purpose Disposition Under Plan Pursuant to SEA
Financial Industry Regulatory FINRA is in the process of developing Rule 19d–1(c)(2)) to update cross-
Authority, Inc.; Notice of Filing and a consolidated rulebook (‘‘Consolidated references resulting from previous
Immediate Effectiveness of a Proposed FINRA Rulebook’’).4 That process amendments to the Municipal Securities
Rule Change to Update Rule Cross- involves FINRA submitting to the Rulemaking Board (‘‘MSRB’’) Rules A–
References and Make Non-Substantive Commission for approval a series of 12, A–14, G–3, G–38, and G–40.6 FINRA
Technical Changes to Certain FINRA proposed rule changes over time to also is proposing to update the cross-
Rules
3 17 CFR 240.19b–4(f)(6). 5 See Securities Exchange Act Release No. 73954
July 30, 2015. 4 The current FINRA rulebook consists of (1) (December 30, 2014, 80 FR 553 (January 6, 2015)
Pursuant to Section 19(b)(1) of the FINRA Rules; (2) NASD Rules; and (3) rules (Order Approving File No. SR–FINRA–2014–037).
Securities Exchange Act of 1934 incorporated from NYSE (‘‘Incorporated NYSE 6 See Securities Exchange Act Release No. 52278

(‘‘Act’’)1 and Rule 19b–4 thereunder,2 Rules’’) (together, the NASD Rules and Incorporated (August 17, 2005), 70 FR 49342 (August 23, 2005)
asabaliauskas on DSK5VPTVN1PROD with NOTICES

notice is hereby given that on July 22, NYSE Rules are referred to as the ‘‘Transitional (Order Approving File No. SR–MSRB–2005–04)
Rulebook’’). While the NASD Rules generally apply (Deleted MSRB Rule G–38); Securities Exchange
2015, Financial Industry Regulatory to all FINRA members, the Incorporated NYSE Act Release No. 71616 (February 26, 2014), 79 FR
Authority, Inc. (‘‘FINRA’’) filed with the Rules apply only to those members of FINRA that 12254 (March 4, 2014) (Order Approving File No.
Securities and Exchange Commission are also members of the NYSE (‘‘Dual Members’’). SR–MSRB–2013–09) (Deleted MSRB Rules A–14
(‘‘SEC’’ or ‘‘Commission’’) the proposed The FINRA Rules apply to all FINRA members, and G–40, and incorporated the provisions of these
unless such rules have a more limited application rules into Rule A–12); and Securities Exchange Act
by their terms. For more information about the Release No. 74384 (February 26, 2015), 80 FR 11706
11 17 CFR 200.30–3(a)(12). rulebook consolidation process, see Information (March 4, 2015) (Order Approving File No. SR–
1 15 U.S.C. 78s(b)(1). Notice, March 12, 2008 (Rulebook Consolidation MSRB–2014–08) (Renumbeed MSRB Rule G–3(h) as
2 17 CFR 240.19b–4. Process). G–3(i)).

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Document Created: 2018-02-23 10:53:31
Document Modified: 2018-02-23 10:53:31
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 46628