80 FR 51332 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.22 To Describe the Market Data Product BYX Book Viewer

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 163 (August 24, 2015)

Page Range		51332-51334
FR Document		2015-20793
Federal Register, Volume 80 Issue 163 (Monday, August 24, 2015)
[Federal Register Volume 80, Number 163 (Monday, August 24, 2015)]
[Notices]
[Pages 51332-51334]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20793]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75717; File No. SR-BYX-2015-35]


Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 11.22 To Describe the Market Data Product BYX Book Viewer

August 18, 2015.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on August 7, 2015, BATS Y-Exchange, Inc. (the ``Exchange'' or 
``BYX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with 
the Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend Rule 11.22 to describe a 
market data product known as BYX Book Viewer.
    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.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 Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant 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 add language to Rule 11.22 describing a 
market data product known as BYX Book Viewer. The proposal memorializes 
in the Exchange's rules a data feed that is currently available through 
the Exchange's public Web site free of charge. BYX Book Viewer is a 
data feed that disseminates, on a real-time basis, the aggregated two-
side quotations for up to five (5) price levels for all displayed 
orders for securities traded on the Exchange and for which the 
Exchanges reports quotes under the Consolidated Tape Association 
(``CTA'') Plan or the Nasdaq/UTP Plan. BYX Book Viewer also contains 
the last ten (10) trades including time of trade, price and share 
quantity. BYX Book Viewer is currently available via 
www.batstrading.com without charge. The Exchange will file a separate 
proposed rule change with the Commission proposing fees to be charged 
for certain types of access to BYX Book Viewer as of September 1, 
2015.\5\
---------------------------------------------------------------------------

    \5\ The Exchange understands that its affiliated exchanges 
intend to file identical proposed rule changes to adopt rules and 
fees for the Book Viewer data feed with the Commission. The 
Exchange's affiliates are EDGA Exchange, Inc., EDGX Exchange, Inc. 
and BATS Exchange, Inc.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\6\ in general, and furthers the 
objectives of section 6(b)(5) of the Act,\7\ in particular, in that it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and to protect investors and the public 
interest, and that 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 BYX Book Viewer. 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 an 
alternative for receiving market data as requested by market data 
vendors and purchasers that expressed an interest in exchange-only data 
for instances where consolidated data is no longer required to be 
purchased and displayed. The proposed rule change would benefit 
investors by facilitating their prompt access to real-time depth-of-
book information contained in BYX Book Viewer. The proposed rule change 
also removes impediments to and perfect the mechanism of a free and 
open market and a national market system by memorializing in the 
Exchange's rules a data feed that is currently available through the 
Exchange's public Web site free of charge.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange also believes that the proposed rule change is 
consistent with section 11(A) of the Act \8\ in that it supports (i) 
fair competition among

[[Page 51333]]

brokers and dealers, among exchange markets, and between exchange 
markets and markets other than exchange markets and (ii) the 
availability to brokers, dealers, and investors of information with 
respect to quotations for and transactions in securities. Furthermore, 
the proposed rule change is consistent with Rule 603 of Regulation 
NMS,\9\ 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. BYX Book Viewer is accessed and subscribed to on a 
voluntary basis, in that neither the Exchange nor market data 
distributors are required by any rule or regulation to make this data 
available. Accordingly, distributors and subscribers can discontinue 
use at any time and for any reason.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78k-1.
    \9\ See 17 CFR 242.603.
---------------------------------------------------------------------------

    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 products proposed herein are precisely the sort of market 
data products that the Commission envisioned when it adopted Regulation 
NMS. 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:

    [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 
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).

    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.
    In addition, BYX Book Viewer removes impediments to and perfects 
the mechanism of a free and open market and a national market system 
because BYX Book Viewer provides investors with alternative market data 
and competes with similar market data product currently offered by the 
New York Stock Exchange, Inc. (``NYSE'') and the Nasdaq Stock Market 
LLC (``Nasdaq'').\11\ The provision of new options for investors to 
receive market data was a primary goal of the market data amendments 
adopted by Regulation NMS.\12\ BYX Book Viewer is precisely the sort of 
market data product that the Commission envisioned when it adopted 
Regulation NMS.
---------------------------------------------------------------------------

    \11\ See Nasdaq Rule 7023(a)(1)(C) (describing Nasdaq TotalView 
is a depth-of-book data feed that includes all orders and quotes 
from all Nasdaq members displayed in the Nasdaq Market Center as 
well as the aggregate size of such orders and quotes at each price 
level in the execution functionality of the Nasdaq Market Center). 
See also Nasdaq Book Viewer, a description of which is available at 
https://data.nasdaq.com/Book Viewer.aspx (last visited July 29, 
2015). See NYSE OpenBook available at http://www.nyxdata.com/openbook (last visited July 29m 2015) (providing real-time view of 
the NYSE limit order book). See e.g., Securities Exchange Act 
Release No. 71775 (March 24, 2014), 79 FR 17627 (March 28, 2014) 
(SR-CBOE-2014-021) (Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change Related to the CBSX BBO Data Feed and the New 
CBSX Book Depth Data Feed).
    \12\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496, at 37503 (June 29, 2005) (Regulation NMS 
Adopting Release).
---------------------------------------------------------------------------

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The proposal is 
not intended to address any competitive issues, but rather to 
memorialize in the Exchange's rules a data feed that is currently 
available through the Exchange's public Web site free of charge. 
Nonetheless, the Exchange believes that the proposal will promote 
competition by the Exchange offering a service similar to that offered 
by the NYSE and Nasdaq.\13\ Thus, the Exchange believes this proposed 
rule change is necessary to permit fair competition among national 
securities exchanges. Therefore, the Exchange does not believe the 
proposed rule change will result in any burden on competition that is 
not necessary or appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \13\ See supra note 11.
---------------------------------------------------------------------------

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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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

    The Exchange has designated this rule filing as non-controversial 
under section 19(b)(3)(A) of the Act \14\ and paragraph (f)(6) of Rule 
19b-4 thereunder.\15\ The proposed rule change effects a change that: 
(A) Does not significantly affect the protection of investors or the 
public interest; (B) does not impose any significant burden on 
competition; and (C) by its terms, does not become operative for 30 
days after the date of the filing, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest; provided that the self-regulatory organization 
has given 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.\16\
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4.
    \16\ The Exchange has fulfilled this requirement.
---------------------------------------------------------------------------

    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: (1) 
Necessary or appropriate in the public interest; (2) for the protection 
of investors; or (3) 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 proposal 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 No. SR-BYX-2015-35 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 No. SR-BYX-2015-35. This file 
number

[[Page 51334]]

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 such filing will also 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 No. SR-BYX-2015-35 and should be 
submitted on or before September 14, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

    \17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-20793 Filed 8-21-15; 8:45 am]
BILLING CODE 8011-01-P
51334 Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices

should be included on the subject line ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Background of Proposed Rule Change
if email is used. To help the notice is hereby given that, on August On June 14, 2010, the NYSE, NYSE
Commission process and review your 5, 2015, New York Stock Exchange LLC Regulation, Inc. (‘‘NYSE Regulation’’),4
comments more efficiently, please use (‘‘NYSE’’ or the ‘‘Exchange’’) filed with and FINRA entered into a Regulatory
only one method. The Commission will the Securities and Exchange Services Agreement (‘‘RSA’’), whereby
post all comments on the Commission’s Commission (the ‘‘Commission’’) the FINRA was retained to perform the
Internet Web site (http://www.sec.gov/ proposed rule change as described in market surveillance and enforcement
rules/sro.shtml). Copies of the Items I and II below, which Items have functions that had previously been
submission, all subsequent been prepared by the self-regulatory performed by NYSE, through its wholly-
amendments, all written statements organization. On August 14, 2015, the owned subsidiary NYSE Regulation.
with respect to the proposed rule exchange filed Amendment No. 1 to the Pursuant to the RSA, FINRA has been
change that are filed with the proposed rule change, which amended performing Exchange enforcement-
Commission, and all written related regulatory services, including
and replaced the proposed rule change
communications relating to the investigating and enforcing violations of
in its entirety. The Commission is
proposed rule change between the Exchange rules, and conducting
Commission and any person, other than publishing this notice to solicit
comments on the proposed rule change, disciplinary proceedings arising out of
those that may be withheld from the such enforcement actions, including
public in accordance with the as amended, from interested persons.
those relating to NYSE-only rules and
provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s against dual members and non-FINRA
available for Web site viewing and Statement of the Terms of Substance of members. To facilitate FINRA’s
printing in the Commission’s Public the Proposed Rule Change performance of these functions, the
Reference Room, 100 F Street NE., Exchange amended its rules to provide
Washington, DC 20549, on official The Exchange proposes to amend that Exchange rules that refer to NYSE
business days between the hours of certain of its disciplinary rules to Regulation or its staff, Exchange staff,
10:00 a.m. and 3:00 p.m. Copies of such facilitate the reintegration of certain and Exchange departments should be
filing will also be available for regulatory functions from Financial understood to also refer to FINRA staff
inspection and copying at the principal Industry Regulatory Authority, Inc. and FINRA departments acting on
office of the Exchange. All comments (‘‘FINRA’’). This Amendment No. 1 behalf of the Exchange pursuant to the
received will be posted without change; supersedes the original filing in its RSA.5
the Commission does not edit personal entirety. The text of the proposed rule In 2013, the Exchange adopted new
identifying information from change is available on the Exchange’s disciplinary rules that are, with certain
submissions. You should submit only Web site at www.nyse.com, at the exceptions, substantially the same as the
information that you wish to make principal office of the Exchange, and at text of the FINRA Rule 8000 Series and
available publicly. All submissions the Commission’s Public Reference Rule 9000 Series, which set forth rules
should refer to File No. SR–BYX–2015– Room. for conducting investigations and
35 and should be submitted on or before enforcement actions.6 Those rules were
September 14, 2015. II. Self-Regulatory Organization’s implemented on July 1, 2013 7 and,
For the Commission, by the Division of Statement of the Purpose of, and among other things: (1) Identify FINRA’s
Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule Department of Enforcement and
authority.17 Change Department of Market Regulation as the
Robert W. Errett, departments permitted to commence
In its filing with the Commission, the
Deputy Secretary. disciplinary proceedings, when
self-regulatory organization included
[FR Doc. 2015–20793 Filed 8–21–15; 8:45 am]
statements concerning the purpose of, authorized by FINRA’s Office of
BILLING CODE 8011–01–P Disciplinary Affairs (‘‘ODA’’); (2)
and basis for, the proposed rule change
and discussed any comments it received 4 NYSE Regulation, a not-for-profit subsidiary of

SECURITIES AND EXCHANGE on the proposed rule change. The text the Exchange, performs the Exchange’s regulatory
COMMISSION of those statements may be examined at functions pursuant to a delegation agreement. See
the places specified in Item IV below. note 7 [sic], infra. The Exchange recently filed to,
among other things, terminate the delegation
The Exchange has prepared summaries, agreement, establish a regulatory oversight
[Release No. 34–75721; File No. SR–NYSE–
2015–35]
set forth in sections A, B, and C below, committee (‘‘ROC’’) as a committee of the board of
of the most significant parts of such directors of the Exchange, and reintegrate its
regulatory and market functions. See Release No.
Self-Regulatory Organizations; New statements. 75288 (June 24, 2015), 80 FR 37316 (June 30, 2015)
York Stock Exchange LLC; Notice of A. Self-Regulatory Organization’s (SR–NYSE–2015–27) (the ‘‘NYSE ROC Filing’’). The
Filing of Proposed Rule Change, as amendments proposed herein are consistent with,
Statement of the Purpose of, and the and not dependent on approval of, the NYSE ROC
Modified by Amendment No. 1,
Statutory Basis for, the Proposed Rule Filing.
Amending Certain of Its Disciplinary 5 See Rule 0. Notwithstanding the RSA, the
Change
Rules To Facilitate the Reintegration of Exchange retains ultimate legal responsibility for,
Certain Regulatory Functions From 1. Purpose and control of, the Exchange’s regulatory functions
Financial Industry Regulatory performed by FINRA. See Securities Exchange Act
The Exchange proposes to amend Release No. 62355 (June 22, 2010), 75 FR 36729
Authority, Inc. (June 28, 2010) (SR–NYSE–2010–46).
tkelley on DSK3SPTVN1PROD with NOTICES

certain of its disciplinary rules to permit 6 See Securities Exchange Act Release Nos. 68678
August 18, 2015. the reintegration of certain regulatory (January 16, 2013), 78 FR 5213 (January 24, 2013)
Pursuant to Section 19(b)(1) 1 of the functions from FINRA as of January 1, (SR–NYSE–2013–02), 69045 (March 5, 2013), 78 FR
Securities Exchange Act of 1934 (the 2016. 15394 (March 11, 2013) (SR–NYSE–2013–02), and
69963 (July 10, 2013), 78 FR 42573 (July 16, 2013)
(SR–NYSE–2013–49).
17 17 CFR 200.30–3(a)(12). 2 15 U.S.C. 78a. 7 See NYSE Information Memorandum 13–8 (May
1 15 U.S.C. 78s(b)(1). 3 17 CFR 240.19b–4. 24, 2013).

VerDate Sep<11>2014 16:48 Aug 21, 2015 Jkt 235001 PO 00000 Frm 00139 Fmt 4703 Sfmt 4703 E:\FR\FM\24AUN1.SGM 24AUN1
Document Created: 2015-12-15 10:54:24
Document Modified: 2015-12-15 10:54:24
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 51332