80 FR 57406 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Amend and Correct Rule 1080.07
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 184 (September 23, 2015)
Federal Register Volume 80, Issue 184 (September 23, 2015)
| Page Range | 57406-57408 | |
| FR Document | 2015-24062 |
[Federal Register Volume 80, Number 184 (Wednesday, September 23, 2015)] [Notices] [Pages 57406-57408] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-24062] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75942; File No. SR-Phlx-2015-49] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Amend and Correct Rule 1080.07 September 17, 2015. I. Introduction On June 5, 2015, NASDAQ OMX PHLX LLC (``Exchange'' or ``Phlx'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to amend and correct several provisions in Phlx Rule 1080.07, ``Complex Orders on Phlx XL,'' which governs the trading of Complex Orders on the Phlx's Complex Order System (``System''). The proposed rule change was published for comment in the Federal Register on June 23, 2015.\3\ On July 30, 2015, the Commission extended the time period for Commission action to September 21, 2015.\4\ The Commission received no comments regarding the proposal. This order institutes proceedings under Section 19(b)(2)(B) of the Act \5\ to determine whether to disapprove the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 75189 (June 17, 2015), 80 FR 35997 (``Notice''). \4\ See Securities Exchange Act Release No. 75570, 80 FR 46619 (August 5, 2015). \5\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- II. Description of the Proposal The Phlx proposes to make a number of changes to Phlx Rule 1080.07 to amend and correct inconsistencies in the rule and provide additional clarity regarding the trading of Complex Orders on the Exchange. The Phlx's System for trading Complex Orders includes a Complex Order Opening Process (``COOP''); the Complex Order Live Auction (``COLA''), an automated auction for seeking liquidity and price improvement for Complex Orders; and a Complex Limit Order Book (``CBOOK''). According to the Phlx, among other things, the proposal would revise Phlx Rule 1080.07 to: (i) Accurately describe the operation of the COOP and the execution of orders at the opening, including the treatment of Immediate-or-Cancel (``IOC'') orders and Do Not Auction (``DNA'') orders at the opening; (ii) add definitions of ``COOP Sweep'' and ``COLA Sweep,'' and correct existing rule text to indicate that only Phlx XL market makers may submit COLA Sweeps; (iii) delete rule text that incorrectly states that a specialist could be entitled to receive 40% of the remainder of a COLA-eligible order, as well as rule text indicating that only a specialist's interest at the cPBBO is aggregated for purposes of determining the specialist's entitlement in the COLA, so that the revised rule will provide that the specialist is entitled to receive the greater of (a) the proportion of the aggregate size associated with the specialist's COLA Sweep, SQT and RSQT COLA Sweeps, and non-SQT ROT Complex Orders on the CBOOK, or (b) the Enhanced Specialist Participation as described in Phlx Rule 1014(g)(ii); (iv) delete rule text indicating that, for allocation purposes, the size of a COLA Sweep or responsive Complex Order will be limited to the size of the COLA-eligible order, thereby clarifying that the size of a COLA Sweep or responsive Complex Order that exceeds the size of the COLA- eligible order may trade against remaining interest after the COLA- eligible order has been executed to the fullest extent possible; (v) revise rule text to indicate that other interest in a COLA may trade after a COLA-eligible order has been executed to the fullest extent possible, rather than in its entirety, and to correct the description of the execution of crossing interest after a COLA-eligible order has been executed; (vi) provide that the System will place a Complex Order received during a configurable period of time prior to the end of a trading session on the CBOOK after any marketable portion of the order has been executed; and (vii) describe the handling of all-or-none Complex Orders. In addition to these changes, the Phlx proposes to amend Phlx Rule 1080.07 to add a definition of ``Firm.'' \6\ Specifically, the Phlx proposes to define a ``Firm'' to mean ``a broker-dealer trading for its own (proprietary) account that is: A member of The Options Clearing Corporation (``OCC'') or maintains a Joint Back Office (``JBO'') arrangement with an OCC member.\7\ The Phlx also proposes to revise Phlx Rule 1080.07 to provide that orders from Firms, like orders from market makers, would not trigger a COLA.\8\ In addition, the Phlx proposes to treat Firms like market makers for purposes of determining the allocations and execution price that their trading interest will receive at the conclusion of a COLA.\9\ --------------------------------------------------------------------------- \6\ See Phlx Rule 1080.07(a)(x). \7\ Id. Unless otherwise specified, Firms are included in the category of non-market-maker off-floor broker-dealer. Id. \8\ See Phlx Rule 1080.07(e)(i)(B)(1). Orders from non-market maker off-floor broker-dealers that are not Firms would be COLA- eligible. See Phlx Rule 1080.07(e)(i)(B)(1) and Notice, 80 FR at 36003. \9\ See Phlx Rule 1080.07(e)(viii)(C)(2) and Notice, 80 FR at 36003. Orders of non-market maker off-floor broker-dealers that are not Firms would be executed along with the orders of non-broker- dealer customers at the conclusion of the COLA. See Phlx Rule 1080.07(e)(viii)(C)(1) and Notice, 80 FR at 36003. At the same price, non-broker-dealer customer orders would be executed in time priority, while non-market-maker off-floor broker-dealer orders would be executed on a pro rata basis at each price level. See Phlx Rule 1080.07(e)(viii)(C)(1)(d). --------------------------------------------------------------------------- The Phlx proposes to treat Firm orders like non-Phlx market makers for purposes of these rules because the Phlx believes that the trading style and needs of Firms are more like market makers.\10\ The Phlx states that Firms are large, well-capitalized broker-dealers that trade for their own accounts and generally submit large orders, including orders that facilitate their clients' orders or offset large positions taken to accommodate their customers.\11\ According to the Phlx, Firms must have the financial wherewithal that this role necessitates.\12\ Thus, the Phlx states that Firms, in general, are commonly viewed as liquidity providers, much like market makers.\13\ The Phlx states that Firms do not expect or need their Complex Orders to trigger a COLA, nor do they need or expect to submit Good Til Cancelled Orders, because these are features commonly associated with customers rather than liquidity providers who function to accommodate trading interest.\14\ The Phlx notes that both of these features involve a temporal component, and that both a delay and long-lasting interest are inconsistent [[Page 57407]] with the sort of accommodation that Firms provide.\15\ The Phlx believes that by tailoring its offerings to the needs and trading style of Firms, Firms are more likely to send orders to the Exchange.\16\ --------------------------------------------------------------------------- \10\ See Notice, 80 FR at 36003. \11\ See Notice, 80 FR at 36003-36004. \12\ See Notice, 80 FR at 36004. In addition, Firms that are OCC clearing members must comply with OCC rules regarding, among other things, net capital, risk management procedures, and margin. See id. \13\ See id. \14\ See Notice, 80 FR at 36005. \15\ See id. \16\ See id. --------------------------------------------------------------------------- III. Proceedings To Determine Whether To Approve or Disapprove SR-Phlx- 2015-49 and Grounds for Disapproval Under Consideration The Commission is instituting proceedings pursuant to Section 19(b)(2)(B) of the Act \17\ to determine whether the proposed rule change should be disapproved. Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described in greater detail below, the Commission seeks and encourages interested persons to comment on the proposed rule change to inform the Commission's analysis of whether to approve or disapprove the proposed rule change. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- Pursuant to Section 19(b)(2)(B) of the Act,\18\ the Commission is providing notice of the grounds for disapproval under consideration. The Commission is instituting proceedings to allow for additional analysis of, and input from commenters with respect to, the consistency of the proposed rule change with Section 6(b)(5) of the Act,\19\ which requires that the rules of a national securities exchange be designed, among other things, 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, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the Act also provides that proceedings to determine whether to disapprove a proposed rule change must be concluded within 180 days of the date of publication of notice of the filing of the proposed rule change. The time for conclusion of the proceedings may be extended for up to 60 days if the Commission finds good cause for such extension and publishes its reasons for so finding. \19\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In addition, under the Commission's rules of procedure, a self- regulatory organization that proposes to amend its rules bears the burden of demonstrating that its proposal is consistent with the Act.\20\ In this regard: --------------------------------------------------------------------------- \20\ Rule 700(b)(3), 17 CFR 201.700(b)(3). The description of the proposed rule change, its purpose and operation, its effect, and a legal analysis of its consistency with the applicable requirements must all be sufficiently detailed and specific to support an affirmative Commission finding. Any failure of the self-regulatory organization to provide the information elicited by Form 19b-4 may result in the Commission not having a sufficient basis to make an affirmative finding that a proposed rule change is consistent with the Exchange Act and the rules and regulations thereunder that are applicable to the self-regulation organization.\21\ --------------------------------------------------------------------------- \21\ Id. --------------------------------------------------------------------------- IV. Procedure: Request for Written Comments The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any others they may have identified with the proposal. In particular, the Commission invites the written views of interested persons concerning whether the proposed rule change is consistent with Section 6(b)(5) or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval which would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.\22\ --------------------------------------------------------------------------- \22\ Section 19(b)(2) of the Act, as amended by the Securities Acts Amendments of 1975, Public Law 94-29, 89 Stat. 97 (1975), grants the Commission flexibility to determine what type of proceeding--either oral or notice and opportunity for written comments--is appropriate for consideration of a particular proposal by a self-regulatory organization. See Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). --------------------------------------------------------------------------- Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule change should be approved or disapproved by October 14, 2015. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by October 28, 2015. The Commission asks that commenters address the sufficiency and merit of the Exchange's statements in support of the proposed rule change, in addition to any other comments they may wish to submit about the proposed rule change. In particular, the Commission asks that commenters address the sufficiency of the Exchange's statements, which are set forth in the Notice,\23\ in support of its proposal to prevent Firms' orders from triggering a COLA, in addition to any other comments they may wish to submit about the proposed rule change. The Commission notes that the Phlx states that Firms, like market makers, are liquidity providers that function to accommodate the trading interest of their clients, and that Firms do not expect or need their orders to trigger a COLA. With respect to this conclusion, the Commission seeks comment on whether there are circumstances in which a Firm might want its order to trigger a COLA, and the potential impact of permitting or prohibiting Firms' orders from triggering a COLA. --------------------------------------------------------------------------- \23\ See supra note 3. --------------------------------------------------------------------------- Comments may be submitted by any of the following methods: Electronic CommentsUse 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-Phlx-2015-49 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-Phlx-2015-49. 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-Phlx- [[Page 57408]] 2015-49 and should be submitted by October 14, 2015. Rebuttal comments should be submitted by October 28, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\24\ --------------------------------------------------------------------------- \24\ 17 CFR 200.30-3(a)(57). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-24062 Filed 9-22-15; 8:45 am] BILLING CODE 8011-01-P
![57406 Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Notices
At times, changes in Commission on the Exchange. The Phlx’s System for a ‘‘Firm’’ to mean ‘‘a broker-dealer
priorities require alterations in the trading Complex Orders includes a trading for its own (proprietary) account
scheduling of meeting items. Complex Order Opening Process that is: A member of The Options
For further information and to (‘‘COOP’’); the Complex Order Live Clearing Corporation (‘‘OCC’’) or
ascertain what, if any, matters have been Auction (‘‘COLA’’), an automated maintains a Joint Back Office (‘‘JBO’’)
added, deleted or postponed, please auction for seeking liquidity and price arrangement with an OCC member.7 The
contact the Office of the Secretary at improvement for Complex Orders; and a Phlx also proposes to revise Phlx Rule
(202) 551–5400. Complex Limit Order Book (‘‘CBOOK’’). 1080.07 to provide that orders from
Dated: September 18, 2015. According to the Phlx, among other Firms, like orders from market makers,
things, the proposal would revise Phlx would not trigger a COLA.8 In addition,
Brent J. Fields,
Rule 1080.07 to: (i) Accurately describe the Phlx proposes to treat Firms like
Secretary.
the operation of the COOP and the market makers for purposes of
[FR Doc. 2015–24217 Filed 9–21–15; 11:15 am] execution of orders at the opening, determining the allocations and
BILLING CODE 8011–01–P including the treatment of Immediate- execution price that their trading
or-Cancel (‘‘IOC’’) orders and Do Not interest will receive at the conclusion of
Auction (‘‘DNA’’) orders at the opening; a COLA.9
SECURITIES AND EXCHANGE (ii) add definitions of ‘‘COOP Sweep’’ The Phlx proposes to treat Firm
COMMISSION and ‘‘COLA Sweep,’’ and correct orders like non-Phlx market makers for
[Release No. 34–75942; File No. SR–Phlx– existing rule text to indicate that only purposes of these rules because the Phlx
2015–49] Phlx XL market makers may submit believes that the trading style and needs
COLA Sweeps; (iii) delete rule text that of Firms are more like market makers.10
Self-Regulatory Organizations; incorrectly states that a specialist could The Phlx states that Firms are large,
NASDAQ OMX PHLX LLC; Order be entitled to receive 40% of the well-capitalized broker-dealers that
Instituting Proceedings To Determine remainder of a COLA-eligible order, as trade for their own accounts and
Whether To Approve or Disapprove a well as rule text indicating that only a generally submit large orders, including
Proposed Rule Change To Amend and specialist’s interest at the cPBBO is orders that facilitate their clients’ orders
Correct Rule 1080.07 aggregated for purposes of determining or offset large positions taken to
the specialist’s entitlement in the COLA, accommodate their customers.11
September 17, 2015.
so that the revised rule will provide that According to the Phlx, Firms must have
I. Introduction the specialist is entitled to receive the the financial wherewithal that this role
On June 5, 2015, NASDAQ OMX greater of (a) the proportion of the necessitates.12 Thus, the Phlx states that
aggregate size associated with the Firms, in general, are commonly viewed
PHLX LLC (‘‘Exchange’’ or ‘‘Phlx’’) filed
specialist’s COLA Sweep, SQT and as liquidity providers, much like market
with the Securities and Exchange
RSQT COLA Sweeps, and non-SQT makers.13 The Phlx states that Firms do
Commission (‘‘Commission’’), pursuant
ROT Complex Orders on the CBOOK, or not expect or need their Complex
to Section 19(b)(1) of the Securities
(b) the Enhanced Specialist Orders to trigger a COLA, nor do they
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
Participation as described in Phlx Rule need or expect to submit Good Til
19b–4 thereunder,2 a proposed rule
1014(g)(ii); (iv) delete rule text Cancelled Orders, because these are
change to amend and correct several
indicating that, for allocation purposes, features commonly associated with
provisions in Phlx Rule 1080.07,
the size of a COLA Sweep or responsive customers rather than liquidity
‘‘Complex Orders on Phlx XL,’’ which
Complex Order will be limited to the providers who function to accommodate
governs the trading of Complex Orders size of the COLA-eligible order, thereby
on the Phlx’s Complex Order System trading interest.14 The Phlx notes that
clarifying that the size of a COLA Sweep both of these features involve a temporal
(‘‘System’’). The proposed rule change or responsive Complex Order that
was published for comment in the component, and that both a delay and
exceeds the size of the COLA-eligible long-lasting interest are inconsistent
Federal Register on June 23, 2015.3 On order may trade against remaining
July 30, 2015, the Commission extended interest after the COLA-eligible order 7 Id. Unless otherwise specified, Firms are
the time period for Commission action has been executed to the fullest extent included in the category of non-market-maker off-
to September 21, 2015.4 The possible; (v) revise rule text to indicate floor broker-dealer. Id.
Commission received no comments that other interest in a COLA may trade
8 See Phlx Rule 1080.07(e)(i)(B)(1). Orders from
regarding the proposal. This order non-market maker off-floor broker-dealers that are
after a COLA-eligible order has been not Firms would be COLA-eligible. See Phlx Rule
institutes proceedings under Section executed to the fullest extent possible, 1080.07(e)(i)(B)(1) and Notice, 80 FR at 36003.
19(b)(2)(B) of the Act 5 to determine rather than in its entirety, and to correct 9 See Phlx Rule 1080.07(e)(viii)(C)(2) and Notice,
whether to disapprove the proposed the description of the execution of 80 FR at 36003. Orders of non-market maker off-
rule change. crossing interest after a COLA-eligible floor broker-dealers that are not Firms would be
executed along with the orders of non-broker-dealer
II. Description of the Proposal order has been executed; (vi) provide customers at the conclusion of the COLA. See Phlx
that the System will place a Complex Rule 1080.07(e)(viii)(C)(1) and Notice, 80 FR at
The Phlx proposes to make a number Order received during a configurable 36003. At the same price, non-broker-dealer
of changes to Phlx Rule 1080.07 to period of time prior to the end of a customer orders would be executed in time priority,
amend and correct inconsistencies in while non-market-maker off-floor broker-dealer
trading session on the CBOOK after any orders would be executed on a pro rata basis at each
the rule and provide additional clarity marketable portion of the order has been price level. See Phlx Rule 1080.07(e)(viii)(C)(1)(d).
regarding the trading of Complex Orders
mstockstill on DSK4VPTVN1PROD with NOTICES
executed; and (vii) describe the 10 See Notice, 80 FR at 36003.
1 15
handling of all-or-none Complex Orders. 11 See Notice, 80 FR at 36003–36004.
U.S.C. 78s(b)(1). In addition to these changes, the Phlx 12 See Notice, 80 FR at 36004. In addition, Firms
2 17 CFR 240.19b–4.
proposes to amend Phlx Rule 1080.07 to that are OCC clearing members must comply with
3 See Securities Exchange Act Release No. 75189 OCC rules regarding, among other things, net
(June 17, 2015), 80 FR 35997 (‘‘Notice’’). add a definition of ‘‘Firm.’’ 6 capital, risk management procedures, and margin.
4 See Securities Exchange Act Release No. 75570, Specifically, the Phlx proposes to define See id.
80 FR 46619 (August 5, 2015). 13 See id.
5 15 U.S.C. 78s(b)(2)(B). 6 See Phlx Rule 1080.07(a)(x). 14 See Notice, 80 FR at 36005.
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![57408 Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Notices
2015–49 and should be submitted by Trades (collectively, the ‘‘Trades Exchanges have argued that reporting
October 14, 2015. Rebuttal comments Feeds’’).6 last-sale information in an unbundled
should be submitted by October 28, The Trades Feeds currently provides format, based on execution of the
2015. subscribers and users on a real-time individual resting orders, rather than in
For the Commission, by the Division of basis with the same last-sale an bundled format based on the
Trading and Markets, pursuant to delegated information that each Exchange reports completed execution of an incoming
authority.24 to the Consolidated Tape Association order would remove impediments to
Brent J. Fields, (‘‘CTA’’) for inclusion in the CTA Plan’s and perfect the mechanism of a free and
Secretary. consolidated data streams. Specifically, open market by providing more granular
[FR Doc. 2015–24062 Filed 9–22–15; 8:45 am]
each Exchange’s Trades Feeds includes, trade information to vendors and
for each security traded on that subscribers who desire it, thus
BILLING CODE 8011–01–P
Exchange, the real-time last-sale price, promoting competition and innovation.
time and size information, bid/ask Each Exchanges has also proposed to
SECURITIES AND EXCHANGE quotations, and a stock summary remove the bid/ask data from its Trades
COMMISSION message. The stock summary message Feed. Each Exchange currently has a
updates every minute and includes the data feed—the NYSE BBO data feed and
[Release No. 34–75937; File Nos. SR–NYSE– offering Exchange’s opening price, high the NYSE MKT BBO data feed—that
2015–31; SR–NYSEMKT–2015–56] price, low price, closing price, and includes the same bid/ask data currently
cumulative volume for the security.7 included in the Exchange’s Trades Feed,
Self-Regulatory Organizations; New Each Exchange currently reports to
York Stock Exchange LLC; NYSE MKT and each Exchange has represented that
the CTA and distributes on a real-time its respective BBO feed would continue
LLC; Order Instituting Proceedings To basis via the Trades Feeds its market’s
Determine Whether To Disapprove the to include the best bids and offers for all
last-sale information based on the securities that are traded on its facilities
Proposed Rule Changes Amending the completed execution of an arriving
NYSE Trades Market Data and NYSE and for which it reports quotes to the
order. For example, currently, if an Consolidated Quotation Association
MKT Trades Market Data Product arriving order of 1,000 shares trades
Offerings (‘‘CQA’’) under the Consolidated
with five resting orders of 200 shares on Quotation (‘‘CQ’’) Plan for inclusion in
September 17, 2015. NYSE, NYSE would bundle the the CQ Plan’s consolidated quotation
executions and report a single information data stream.9 Each
I. Introduction completed trade of 1,000 shares both to Exchange has stated that removing the
On July 16, 2015, New York Stock the CTA and through NYSE Trades. bid/ask data from its Trades Feeds
Exchange LLC (‘‘NYSE’’) and NYSE NYSE MKT Trades operates in the same would streamline its products and
MKT LLC (‘‘NYSE MKT’’) (collectively, way. would align them with last-sale data
the ‘‘Exchanges’’) separately filed with Each Exchange now proposes to
feeds offered by other exchanges that
the Securities and Exchange distribute its last-sale information on its
offer last-sale data products, which do
Commission (‘‘Commission’’), pursuant respective Trades Feed in a different
not include bid and offer information.10
to Section 19(b)(1) of the Securities manner than it distributes last-sale Each Exchange has stated that it
Exchange Act of 1934 (‘‘Act’’) 1 and Rule information to the CTA. Each Exchange expects to offer both the current Trades
19b–4 thereunder,2 proposed rule would continue to distribute last-sale Feed and the proposed Trades Feed for
changes to amend, respectively, the information to the CTA as described a limited transition period, after which
NYSE Trades market data product above, but last-sale information it would stop offering the current Trades
offering and the NYSE MKT Trades distributed via the Exchange’s Trades
Feed and offer only the Trades Feed
market data product offering. The Feed would be based on the individual
proposed in its filing. Each Exchange
proposed rule changes were published resting orders that are executed in the
has stated that it would announce the
for comment in the Federal Register on total completed trade and would not be
transition dates in advance. Each
August 5, 2015.3 The Commission has bundled for reporting purposes. In the
Exchange has also stated that there
received two comments on the example above, NYSE would distribute
would be no change to the fees for the
proposals.4 This order institutes via NYSE Trades the real-time NYSE
Trades Feed in connection with the
proceedings under Section 19(b)(2)(B) of last-sale information of five executions
proposed changes.
the Act 5 to determine whether to of 200 shares each,8 but would report to
disapprove the proposed rule changes. CTA a single completed trade of 1,000 III. Comment Letters
shares. The Commission has received two
II. Description of the Proposals The Exchanges have represented that comment letters on the proposals.11
NYSE and NYSE MKT propose to they would continue to make their last- Both commenters are opposed to the
modify the data content of their sale information available through their proposals. The commenters note that
respective proprietary market data Trades Feeds immediately after the NYSE and its affiliated exchanges
feeds: NYSE Trades and NYSE MKT providing the last-sale information to are the only national securities
the processor under the CTA Plan. The exchanges that report their last-sale
24 17 CFR 200.30–3(a)(57).
1 15 U.S.C. 78s(b)(1). 6 NYSE Trades is an NYSE-only last-sale market
information to the securities
2 17 CFR 240.19b–4.
data feed and NYSE MKT Trades is a NYSE MKT- information processor (‘‘SIP’’) in a
3 See Securities Exchange Act Release Nos. 75556 only last-sale market data feed.
mstockstill on DSK4VPTVN1PROD with NOTICES
(July 30, 2015), 80 FR 46628 (SR–NYSE–2015–31) 7 See Securities Exchange Act Release Nos. 62187 9 See, e.g., Securities Exchange Act Release No.
and 75559 (July 30, 2015), 80 FR 46642 (SR– (May 27, 2010), 75 FR 31500 (June 3, 2010) (SR– 72326 (June 5, 2014), 79 FR 33605 (June 11, 2014)
NYSEMKT–2015–56) (‘‘Notices’’). NYSEAmex–2010–35), 70065 (July 30, 2013), 78 FR (SR–NYSEMKT–2014–49).
4 See Letter from Eric S. Hunsader, Nanex, LLC, 47450 (Aug. 5, 2013) (SR–NYSEMKT–2013–64) and 10 As examples, the Exchanges cited to the last-
dated August 14, 2015 (‘‘Nanex Letter’’); Letter from 69273 (April 2, 2013), 78 FR 20969 (April 8, 2013) sale data products offered by The Nasdaq Stock
John Ramsay, Chief Market Policy Officer, IEX (SR–NYSEMKT–2013–30). Market, LLC and BATS, Inc. See NASDAQ Rule
Group, Inc., to Brent J. Fields, Secretary, 8 Each Exchange has proposed that the five 7039 (Nasdaq Last Sale) and BATS Rule 11.22(g)
Commission, dated August 20, 2015 (‘‘IEX Letter’’). transactions in such an example would have the (BATS Last Sale).
5 15 U.S.C. 78s(b)(2)(B). same time stamp. 11 See supra note 4.
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Document Created: 2015-12-15 09:45:12
Document Modified: 2015-12-15 09:45:12
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 57406 |
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