80_FR_60400 80 FR 60208 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying Certain Proprietary Options Data Products

80 FR 60208 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying Certain Proprietary Options Data Products

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 192 (October 5, 2015)

Page Range60208-60210
FR Document2015-25185

Federal Register, Volume 80 Issue 192 (Monday, October 5, 2015)
[Federal Register Volume 80, Number 192 (Monday, October 5, 2015)]
[Notices]
[Pages 60208-60210]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-25185]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76023; File No. SR-NYSEARCA-2015-83]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Modifying Certain 
Proprietary Options Data Products

September 29, 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 September 18, 2015, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE 
Arca'') 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 Exchange. 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.
---------------------------------------------------------------------------

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

    The Exchange proposes to modify certain proprietary options data 
products. 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to modify certain proprietary options data 
products.
    The Exchange currently offers the following real-time options 
market data feeds through its ArcaBook for Arca Options data product 
(collectively, ``Current Options Products''): \3\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 67720 (August 23, 
2012), 77 FR 52769 (August 30, 2012) (SR-NYSEArca-2012-89) 
(proposing to offer certain proprietary options data products).
---------------------------------------------------------------------------

     ``ArcaBook for Arca Options--Trades'' makes available NYSE 
Arca Options last sale information on a real-time basis as it is 
reported to the Options Price Reporting Authority (``OPRA'') and 
disseminated on a consolidated basis under the OPRA Plan.\4\
---------------------------------------------------------------------------

    \4\ The OPRA Plan is a national market system plan approved by 
the Securities and Exchange Commission (``Commission'') pursuant to 
Section 11A of the Securities Exchange Act of 1934 (the ``Act'') and 
Rule 608 thereunder (formerly Rule 11Aa3-2). See Securities Exchange 
Act Release No. 17638 (March 18, 1981), 22 S.E.C. Docket 484 (March 
31, 1981). The full text of the OPRA Plan is available at http://www.opradata.com. The OPRA Plan provides for the collection and 
dissemination of last sale and quotation information on options that 
are traded on the participant exchanges. Section 5.2(c) of the OPRA 
Plan also permits OPRA Plan participants to disseminate 
unconsolidated market information to certain of their members under 
certain circumstances.
---------------------------------------------------------------------------

     ``ArcaBook for Arca Options--Top of Book'' makes available 
NYSE Arca Options best bids and offers (``BBO'') (including orders and 
quotes) on a real-time basis as reported to OPRA and disseminated on a 
consolidated basis under the OPRA Plan.
     ``ArcaBook for Arca Options--Series Status'' makes 
available series status messages for each individual options series 
(and in the case of complex orders, per-instrument) relating to events 
such as a delayed opening or trading halt.
     ``ArcaBook for Arca Options--Order Imbalance'' makes 
available order imbalance information prior to the opening of the 
market and during a trading halt.
     ``ArcaBook for Arca Options--Depth of Book'' makes 
available NYSE Arca Options quotes and orders at the first five price 
levels in each series on a real-time basis.
     ``ArcaBook for Arca Options--Complex'' makes available 
NYSE Arca Options quote and trade information (including orders/quotes, 
requests for responses, and trades) for the complex order book on a 
real-time basis.\5\
---------------------------------------------------------------------------

    \5\ See Rule 6.62(e), which defines complex orders, and Rule 
6.91, that describes electronic complex order trading, including 
requests for responses.
---------------------------------------------------------------------------

    The Exchange charges a single fee for its ArcaBook for Arca Options 
data product, which includes all six of the Current Options Products. 
The Exchange also charges a separate fee for ArcaBook for Arca 
Options--Complex for subscribers that seek to obtain this Current 
Options Product on a standalone basis.\6\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 68005 (Oct. 9, 
2012), 77 FR 63362 (Oct. 16, 2012) (SR-NYSEArca-2012-106) 
(establishing fees for certain proprietary options market data 
products). See also Securities Exchange Act Release Nos. 69523 (May 
6, 2013), 78 FR 27452 (May 10, 2013) (SR-NYSEArca-2013-41) 
(establishing a schedule of NYSE Arca Options proprietary market 
data fees); 69554 (May 10, 2013), 78 FR 28917 (May 16, 2013) (SR-
NYSEArca-2013-47) (establishing non-display usage fees and amending 
the professional end-user fees); 71933 (April 11, 2014), 79 FR 21821 
(April 17, 2014) (SR-NYSEArca-2014-34) (amending the professional 
user fees); 73010 (Sept. 5, 2014), 79 FR 54307 (Sept. 11, 2014) (SR-
NYSEArca 2014-94) (amending fees for non-display use); 73588 (Nov. 
13, 2014), 79 FR 68922 (Nov. 19, 2014) (SR-NYSEArca-2014-129) 
(establishing fees for the complex order book feed).
---------------------------------------------------------------------------

    The Exchange proposes to modify the Current Options Products as 
follows:
    First, the Exchange proposes to combine in one market data product, 
called ``Arca Options Top,'' the data made available currently in 
``ArcaBook for Arca Options--Trades,'' ``ArcaBook for Arca Options--Top 
of Book,'' ``ArcaBook for Arca Options--Series Status,'' and ``ArcaBook 
for Arca Options--Order Imbalance.'' Offering a data product that 
combines, in one market data product, last sale data, BBO, and order 
imbalance information and series status messages, would provide greater 
efficiencies and better sequencing for vendors and subscribers that 
currently choose to integrate the data after receiving it from the 
Exchange. As with ArcaBook for Arca Options--Trades and ArcaBook for 
Arca Options--Top of Book, Arca Options Top would provide last sale and 
BBO information on a real-time basis as reported to OPRA and 
disseminated on a consolidated basis under the OPRA Plan.\7\ Other 
exchanges offer options data products that similarly combine data 
elements.\8\
---------------------------------------------------------------------------

    \7\ See supra note 4. The manner in which the Exchange proposes 
to disseminate the products would comply with Section 5.2(c) of the 
OPRA Plan, pursuant to which the Exchange may not disseminate the 
products ``on any more timely basis than the same information is 
furnished to the OPRA System for inclusion in OPRA's consolidated 
dissemination of Options Information.''
    \8\ For example, Chicago Board Options Exchange (``CBOE''), 
NASDAQ Options Market (``NOM''), and NASDAQ OMX PHLX LLC (``PHLX'') 
offer proprietary products that include both last sale and BBO 
information. See, e.g., Securities Exchange Act Release No. 73955 
(Dec. 30, 2014), 80 FR 598 (Jan. 6, 2015) (SR-CBOE-2014-094); NOM 
Rules, Chapter VI, Section 1(a)(3) and Securities Exchange Act 
Release No. 64652 (June 13, 2011), 76 FR 35498 (June 17, 2011) (SR-
NASDAQ-2011-075); and Securities Exchange Act Release No. 67352 
(July 5, 2012), 77 FR 40930 (July 11, 2012) (SR-Phlx-2012-83), 
respectively.

---------------------------------------------------------------------------

[[Page 60209]]

    Second, the Exchange proposes to modify ``ArcaBook for Arca 
Options--Depth of Book'' market data product so that quotes and orders 
would be available at the first three price levels in each series on a 
real-time basis rather than at the first five price levels. The 
Exchange also proposes to change the name of this product to ``Arca 
Options Deep.'' The Exchange believes that reducing the number of 
levels in the feed will reduce the size of the messages by a 
significant amount, which the Exchange anticipates will reduce 
customers' bandwidth needs while retaining the functionality of this 
product.
    Finally, the Exchange proposes to change the name of the ``ArcaBook 
for Arca Options--Complex'' market data product to ``Arca Options 
Complex.''
    The proposed Arca Options Top, Arca Options Deep and Arca Options 
Complex market data products (the ``Arca Options Products'') would be 
distributed in a new format, Exchange Data Protocol (XDP), aligning the 
format of the Arca Options Products with that of other market data 
products offered by the Exchange. This format change would not affect 
the real-time data content other than as described herein.
    The Exchange does not propose to make any changes to the fees. The 
single fee charged for the Current Options Products that comprise the 
ArcaBook for Arca Options market data product would similarly apply to 
subscribers to of all three proposed market data products--Arca Options 
Top, Arca Options Deep and Arca Options Complex. The standalone fee 
that now applies to ``ArcaBook for Arca Options--Complex,'' would 
likewise apply to Arca Options Complex market data product. The 
Exchange proposes to change the references to the names of the products 
in the NYSE Arca Options Proprietary Market Data Fee Schedule to the 
names of the products as proposed.
    As with the Current Options Products, each of the Arca Options 
Products would be offered through the Exchange's Liquidity Center 
Network (``LCN''), a local area network in the Exchange's Mahwah, New 
Jersey data center that is available to users of the Exchange's co-
location services. The Exchange would also offer the products through 
the Exchange's Secure Financial Transaction Infrastructure (``SFTI'') 
network, through which all other users and member organizations access 
the Exchange's trading and execution systems and other proprietary 
market data products.
    The Exchange will announce the date that the Arca Options Products 
will be available through an NYSE Market Data Notice.
    The proposed change is not intended to address any issues other 
than those described herein, and the Exchange is not aware of any 
problems that vendors or subscribers would have in complying with the 
proposed change.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \9\ of the 
Act, in general, and furthers the objectives of Section 6(b)(5) \10\ of 
the Act, in particular, in that it is designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system and, in general, to protect investors and the 
public interest, and it is not designed to permit unfair discrimination 
among customers, brokers, or dealers.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    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 improved options for receiving market data. 
The proposed rule changes would benefit investors by facilitating their 
prompt access to the real-time information contained in the Arca 
Options Products.
    In particular, the Exchange believes that combining last sale data, 
best bids and offers, order imbalance information and series status 
messages in the Arca Options Top product is reasonable because it would 
provide greater efficiencies and reduce errors for vendors and 
subscribers that currently choose to integrate the data after receiving 
it from the Exchange. In addition, the change to the Arca Options Deep 
product reflects the interests and needs of vendors by streamlining the 
product using smaller message sizes. The changes are reasonable because 
they would provide vendors and subscribers with higher quality market 
data products.
    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 options data product changes proposed herein are precisely the 
sort of market data product evolutions 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.\11\

    \11\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005).

    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.
    The proposed options data products will help to protect a free and 
open market by providing additional data to the marketplace and give 
investors greater choices. In addition, the proposal would not permit 
unfair discrimination because the products will be available to all of 
the Exchange's customers and broker-dealers through both the LCN and 
SFTI.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\12\ the Exchange 
does not believe that the proposed rule change will impose any burden 
on competition that

[[Page 60210]]

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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

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

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

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \14\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\16\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
---------------------------------------------------------------------------

    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \17\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSEARCA-2015-83 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-NYSEARCA-2015-83. 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 such filing also will be available 
for inspection and copying at the principal offices 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-NYSEARCA-2015-
83, and should be submitted on or before October 26, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-25185 Filed 10-2-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                  60208                         Federal Register / Vol. 80, No. 192 / Monday, October 5, 2015 / Notices

                                                  persons relying on the exemption that is                of the most significant parts of such                 (including orders/quotes, requests for
                                                  the subject of this Order.                              statements.                                           responses, and trades) for the complex
                                                    For the Commission, by the Division of                                                                      order book on a real-time basis.5
                                                                                                          A. Self-Regulatory Organization’s                        The Exchange charges a single fee for
                                                  Trading and Markets, pursuant to delegated              Statement of the Purpose of, and the
                                                  authority.8                                                                                                   its ArcaBook for Arca Options data
                                                                                                          Statutory Basis for, the Proposed Rule                product, which includes all six of the
                                                  Robert W. Errett,                                       Change
                                                  Deputy Secretary.                                                                                             Current Options Products. The
                                                  [FR Doc. 2015–25183 Filed 10–2–15; 8:45 am]             1. Purpose                                            Exchange also charges a separate fee for
                                                                                                                                                                ArcaBook for Arca Options—Complex
                                                  BILLING CODE 8011–01–P                                     The Exchange proposes to modify
                                                                                                                                                                for subscribers that seek to obtain this
                                                                                                          certain proprietary options data
                                                                                                                                                                Current Options Product on a
                                                                                                          products.
                                                  SECURITIES AND EXCHANGE                                                                                       standalone basis.6
                                                                                                             The Exchange currently offers the
                                                  COMMISSION                                                                                                       The Exchange proposes to modify the
                                                                                                          following real-time options market data
                                                                                                                                                                Current Options Products as follows:
                                                  [Release No. 34–76023; File No. SR–                     feeds through its ArcaBook for Arca                      First, the Exchange proposes to
                                                  NYSEARCA–2015–83]                                       Options data product (collectively,                   combine in one market data product,
                                                                                                          ‘‘Current Options Products’’): 3                      called ‘‘Arca Options Top,’’ the data
                                                  Self-Regulatory Organizations; NYSE                        • ‘‘ArcaBook for Arca Options—                     made available currently in ‘‘ArcaBook
                                                  Arca, Inc.; Notice of Filing and                        Trades’’ makes available NYSE Arca                    for Arca Options—Trades,’’ ‘‘ArcaBook
                                                  Immediate Effectiveness of Proposed                     Options last sale information on a real-              for Arca Options—Top of Book,’’
                                                  Rule Change Modifying Certain                           time basis as it is reported to the                   ‘‘ArcaBook for Arca Options—Series
                                                  Proprietary Options Data Products                       Options Price Reporting Authority                     Status,’’ and ‘‘ArcaBook for Arca
                                                                                                          (‘‘OPRA’’) and disseminated on a                      Options—Order Imbalance.’’ Offering a
                                                  September 29, 2015.                                     consolidated basis under the OPRA
                                                     Pursuant to Section 19(b)(1) of the                                                                        data product that combines, in one
                                                                                                          Plan.4                                                market data product, last sale data, BBO,
                                                  Securities Exchange Act of 1934                            • ‘‘ArcaBook for Arca Options—Top
                                                  (‘‘Act’’),1 and Rule 19b–4 thereunder,2                                                                       and order imbalance information and
                                                                                                          of Book’’ makes available NYSE Arca                   series status messages, would provide
                                                  notice is hereby given that on                          Options best bids and offers (‘‘BBO’’)
                                                  September 18, 2015, NYSE Arca, Inc.                                                                           greater efficiencies and better
                                                                                                          (including orders and quotes) on a real-              sequencing for vendors and subscribers
                                                  (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed               time basis as reported to OPRA and
                                                  with the Securities and Exchange                                                                              that currently choose to integrate the
                                                                                                          disseminated on a consolidated basis                  data after receiving it from the
                                                  Commission (‘‘Commission’’) the                         under the OPRA Plan.
                                                  proposed rule change as described in                                                                          Exchange. As with ArcaBook for Arca
                                                                                                             • ‘‘ArcaBook for Arca Options—                     Options—Trades and ArcaBook for Arca
                                                  Items I, II, and III below, which Items                 Series Status’’ makes available series
                                                  have been prepared by the Exchange.                                                                           Options—Top of Book, Arca Options
                                                                                                          status messages for each individual                   Top would provide last sale and BBO
                                                  The Commission is publishing this                       options series (and in the case of
                                                  notice to solicit comments on the                                                                             information on a real-time basis as
                                                                                                          complex orders, per-instrument) relating              reported to OPRA and disseminated on
                                                  proposed rule change from interested                    to events such as a delayed opening or
                                                  persons.                                                                                                      a consolidated basis under the OPRA
                                                                                                          trading halt.                                         Plan.7 Other exchanges offer options
                                                  I. Self-Regulatory Organization’s                          • ‘‘ArcaBook for Arca Options—                     data products that similarly combine
                                                  Statement of the Terms of Substance of                  Order Imbalance’’ makes available order               data elements.8
                                                  the Proposed Rule Change                                imbalance information prior to the
                                                                                                          opening of the market and during a                       5 See Rule 6.62(e), which defines complex orders,
                                                     The Exchange proposes to modify                      trading halt.                                         and Rule 6.91, that describes electronic complex
                                                  certain proprietary options data                           • ‘‘ArcaBook for Arca Options—                     order trading, including requests for responses.
                                                  products. The text of the proposed rule                 Depth of Book’’ makes available NYSE                     6 See Securities Exchange Act Release No. 68005

                                                  change is available on the Exchange’s                   Arca Options quotes and orders at the                 (Oct. 9, 2012), 77 FR 63362 (Oct. 16, 2012) (SR–
                                                  Web site at www.nyse.com, at the                                                                              NYSEArca–2012–106) (establishing fees for certain
                                                                                                          first five price levels in each series on             proprietary options market data products). See also
                                                  principal office of the Exchange, and at                a real-time basis.                                    Securities Exchange Act Release Nos. 69523 (May
                                                  the Commission’s Public Reference                          • ‘‘ArcaBook for Arca Options—                     6, 2013), 78 FR 27452 (May 10, 2013) (SR–
                                                  Room.                                                   Complex’’ makes available NYSE Arca                   NYSEArca–2013–41) (establishing a schedule of
                                                                                                                                                                NYSE Arca Options proprietary market data fees);
                                                  II. Self-Regulatory Organization’s                      Options quote and trade information                   69554 (May 10, 2013), 78 FR 28917 (May 16, 2013)
                                                  Statement of the Purpose of, and                                                                              (SR–NYSEArca–2013–47) (establishing non-display
                                                  Statutory Basis for, the Proposed Rule                     3 See Securities Exchange Act Release No. 67720    usage fees and amending the professional end-user
                                                                                                          (August 23, 2012), 77 FR 52769 (August 30, 2012)      fees); 71933 (April 11, 2014), 79 FR 21821 (April
                                                  Change                                                  (SR–NYSEArca–2012–89) (proposing to offer             17, 2014) (SR–NYSEArca–2014–34) (amending the
                                                     In its filing with the Commission, the               certain proprietary options data products).           professional user fees); 73010 (Sept. 5, 2014), 79 FR
                                                                                                             4 The OPRA Plan is a national market system plan   54307 (Sept. 11, 2014) (SR–NYSEArca 2014–94)
                                                  self-regulatory organization included                                                                         (amending fees for non-display use); 73588 (Nov.
                                                                                                          approved by the Securities and Exchange
                                                  statements concerning the purpose of,                   Commission (‘‘Commission’’) pursuant to Section       13, 2014), 79 FR 68922 (Nov. 19, 2014) (SR–
                                                  and basis for, the proposed rule change                 11A of the Securities Exchange Act of 1934 (the       NYSEArca–2014–129) (establishing fees for the
                                                  and discussed any comments it received                  ‘‘Act’’) and Rule 608 thereunder (formerly Rule       complex order book feed).
                                                                                                                                                                   7 See supra note 4. The manner in which the
                                                  on the proposed rule change. The text                   11Aa3–2). See Securities Exchange Act Release No.
                                                                                                          17638 (March 18, 1981), 22 S.E.C. Docket 484          Exchange proposes to disseminate the products
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  of those statements may be examined at                  (March 31, 1981). The full text of the OPRA Plan      would comply with Section 5.2(c) of the OPRA
                                                  the places specified in Item IV below.                  is available at http://www.opradata.com. The OPRA     Plan, pursuant to which the Exchange may not
                                                  The Exchange has prepared summaries,                    Plan provides for the collection and dissemination    disseminate the products ‘‘on any more timely basis
                                                                                                          of last sale and quotation information on options     than the same information is furnished to the OPRA
                                                  set forth in sections A, B, and C below,                                                                      System for inclusion in OPRA’s consolidated
                                                                                                          that are traded on the participant exchanges.
                                                                                                          Section 5.2(c) of the OPRA Plan also permits OPRA     dissemination of Options Information.’’
                                                    8 17 CFR 200.30–3(a)(83).                                                                                      8 For example, Chicago Board Options Exchange
                                                                                                          Plan participants to disseminate unconsolidated
                                                    1 15 U.S.C. 78s(b)(1).                                market information to certain of their members        (‘‘CBOE’’), NASDAQ Options Market (‘‘NOM’’), and
                                                    2 17 CFR 240.19b–4.                                   under certain circumstances.                          NASDAQ OMX PHLX LLC (‘‘PHLX’’) offer



                                             VerDate Sep<11>2014   18:34 Oct 02, 2015   Jkt 238001   PO 00000   Frm 00095   Fmt 4703   Sfmt 4703   E:\FR\FM\05OCN1.SGM   05OCN1


                                                                                Federal Register / Vol. 80, No. 192 / Monday, October 5, 2015 / Notices                                                   60209

                                                     Second, the Exchange proposes to                     Financial Transaction Infrastructure                    In adopting Regulation NMS, the
                                                  modify ‘‘ArcaBook for Arca Options—                     (‘‘SFTI’’) network, through which all                 Commission granted self-regulatory
                                                  Depth of Book’’ market data product so                  other users and member organizations                  organizations and broker-dealers
                                                  that quotes and orders would be                         access the Exchange’s trading and                     increased authority and flexibility to
                                                  available at the first three price levels in            execution systems and other proprietary               offer new and unique market data to
                                                  each series on a real-time basis rather                 market data products.                                 consumers of such data. It was believed
                                                  than at the first five price levels. The                   The Exchange will announce the date                that this authority would expand the
                                                  Exchange also proposes to change the                    that the Arca Options Products will be                amount of data available to users and
                                                  name of this product to ‘‘Arca Options                  available through an NYSE Market Data                 consumers of such data and also spur
                                                  Deep.’’ The Exchange believes that                      Notice.                                               innovation and competition for the
                                                  reducing the number of levels in the                       The proposed change is not intended                provision of market data. The Exchange
                                                  feed will reduce the size of the messages               to address any issues other than those                believes that the options data product
                                                  by a significant amount, which the                      described herein, and the Exchange is                 changes proposed herein are precisely
                                                  Exchange anticipates will reduce                        not aware of any problems that vendors                the sort of market data product
                                                  customers’ bandwidth needs while                        or subscribers would have in complying                evolutions that the Commission
                                                  retaining the functionality of this                     with the proposed change.                             envisioned when it adopted Regulation
                                                  product.                                                2. Statutory Basis                                    NMS. The Commission concluded that
                                                     Finally, the Exchange proposes to                                                                          Regulation NMS—by lessening
                                                  change the name of the ‘‘ArcaBook for                      The proposed rule change is
                                                                                                                                                                regulation of the market in proprietary
                                                  Arca Options—Complex’’ market data                      consistent with Section 6(b) 9 of the Act,
                                                                                                                                                                data—would itself further the Act’s
                                                  product to ‘‘Arca Options Complex.’’                    in general, and furthers the objectives of
                                                                                                                                                                goals of facilitating efficiency and
                                                     The proposed Arca Options Top, Arca                  Section 6(b)(5) 10 of the Act, in
                                                                                                                                                                competition:
                                                  Options Deep and Arca Options                           particular, in that it is designed to
                                                  Complex market data products (the                       prevent fraudulent and manipulative                     [E]fficiency is promoted when broker-
                                                                                                          acts and practices, to promote just and               dealers who do not need the data beyond the
                                                  ‘‘Arca Options Products’’) would be
                                                                                                                                                                prices, sizes, market center identifications of
                                                  distributed in a new format, Exchange                   equitable principles of trade, to foster
                                                                                                                                                                the NBBO and consolidated last sale
                                                  Data Protocol (XDP), aligning the format                cooperation and coordination with                     information are not required to receive (and
                                                  of the Arca Options Products with that                  persons engaged in facilitating                       pay for) such data. The Commission also
                                                  of other market data products offered by                transactions in securities, to remove                 believes that efficiency is promoted when
                                                  the Exchange. This format change                        impediments to and perfect the                        broker-dealers may choose to receive (and
                                                  would not affect the real-time data                     mechanism of a free and open market                   pay for) additional market data based on their
                                                  content other than as described herein.                 and a national market system and, in                  own internal analysis of the need for such
                                                     The Exchange does not propose to                     general, to protect investors and the                 data.11
                                                  make any changes to the fees. The single                public interest, and it is not designed to               By removing ‘‘unnecessary regulatory
                                                  fee charged for the Current Options                     permit unfair discrimination among                    restrictions’’ on the ability of exchanges
                                                  Products that comprise the ArcaBook for                 customers, brokers, or dealers.                       to sell their own data, Regulation NMS
                                                  Arca Options market data product                           The Exchange also believes this                    advanced the goals of the Act and the
                                                  would similarly apply to subscribers to                 proposal is consistent with Section                   principles reflected in its legislative
                                                  of all three proposed market data                       6(b)(5) of the Act because it protects                history.
                                                  products—Arca Options Top, Arca                         investors and the public interest and                    The Exchange further notes that the
                                                  Options Deep and Arca Options                           promotes just and equitable principles                existence of alternatives to the
                                                  Complex. The standalone fee that now                    of trade by providing investors with                  Exchange’s products, including real-
                                                  applies to ‘‘ArcaBook for Arca                          improved options for receiving market                 time consolidated data, free delayed
                                                  Options—Complex,’’ would likewise                       data. The proposed rule changes would                 consolidated data, and proprietary data
                                                  apply to Arca Options Complex market                    benefit investors by facilitating their               from other sources, ensures that the
                                                  data product. The Exchange proposes to                  prompt access to the real-time                        Exchange is not unreasonably
                                                  change the references to the names of                   information contained in the Arca                     discriminatory because vendors and
                                                  the products in the NYSE Arca Options                   Options Products.                                     subscribers can elect these alternatives.
                                                  Proprietary Market Data Fee Schedule to                    In particular, the Exchange believes                  The proposed options data products
                                                  the names of the products as proposed.                  that combining last sale data, best bids              will help to protect a free and open
                                                     As with the Current Options Products,                and offers, order imbalance information               market by providing additional data to
                                                  each of the Arca Options Products                       and series status messages in the Arca                the marketplace and give investors
                                                  would be offered through the                            Options Top product is reasonable                     greater choices. In addition, the
                                                  Exchange’s Liquidity Center Network                     because it would provide greater                      proposal would not permit unfair
                                                  (‘‘LCN’’), a local area network in the                  efficiencies and reduce errors for                    discrimination because the products
                                                  Exchange’s Mahwah, New Jersey data                      vendors and subscribers that currently                will be available to all of the Exchange’s
                                                  center that is available to users of the                choose to integrate the data after                    customers and broker-dealers through
                                                  Exchange’s co-location services. The                    receiving it from the Exchange. In
                                                  Exchange would also offer the products                                                                        both the LCN and SFTI.
                                                                                                          addition, the change to the Arca Options
                                                  through the Exchange’s Secure                           Deep product reflects the interests and               B. Self-Regulatory Organization’s
                                                                                                          needs of vendors by streamlining the                  Statement on Burden on Competition
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  proprietary products that include both last sale and    product using smaller message sizes.
                                                  BBO information. See, e.g., Securities Exchange Act                                                             In accordance with Section 6(b)(8) of
                                                  Release No. 73955 (Dec. 30, 2014), 80 FR 598 (Jan.      The changes are reasonable because                    the Act,12 the Exchange does not believe
                                                  6, 2015) (SR–CBOE–2014–094); NOM Rules,                 they would provide vendors and                        that the proposed rule change will
                                                  Chapter VI, Section 1(a)(3) and Securities Exchange     subscribers with higher quality market                impose any burden on competition that
                                                  Act Release No. 64652 (June 13, 2011), 76 FR 35498      data products.
                                                  (June 17, 2011) (SR–NASDAQ–2011–075); and
                                                                                                                                                                   11 See Securities Exchange Act Release No. 51808
                                                  Securities Exchange Act Release No. 67352 (July 5,
                                                                                                            9 15 U.S.C. 78f(b).                                 (June 9, 2005), 70 FR 37496 (June 29, 2005).
                                                  2012), 77 FR 40930 (July 11, 2012) (SR–Phlx–2012–
                                                  83), respectively.                                        10 15 U.S.C. 78f(b)(5).                                12 15 U.S.C. 78f(b)(8).




                                             VerDate Sep<11>2014   18:34 Oct 02, 2015   Jkt 238001   PO 00000   Frm 00096   Fmt 4703   Sfmt 4703   E:\FR\FM\05OCN1.SGM   05OCN1


                                                  60210                         Federal Register / Vol. 80, No. 192 / Monday, October 5, 2015 / Notices

                                                  is not necessary or appropriate in                         At any time within 60 days of the                      inspection and copying at the principal
                                                  furtherance of the purposes of the Act.                 filing of such proposed rule change, the                  offices of the Exchange. All comments
                                                  The market for proprietary data                         Commission summarily may                                  received will be posted without change;
                                                  products is currently competitive and                   temporarily suspend such rule change if                   the Commission does not edit personal
                                                  inherently contestable because there is                 it appears to the Commission that such                    identifying information from
                                                  fierce competition for the inputs                       action is necessary or appropriate in the                 submissions. You should submit only
                                                  necessary to the creation of proprietary                public interest, for the protection of                    information that you wish to make
                                                  data. Numerous exchanges compete                        investors, or otherwise in furtherance of                 available publicly. All submissions
                                                  with each other for listings, trades, and               the purposes of the Act. If the                           should refer to File Number SR–
                                                  market data itself, providing virtually                 Commission takes such action, the                         NYSEARCA–2015–83, and should be
                                                  limitless opportunities for entrepreneurs               Commission shall institute proceedings                    submitted on or before October 26,
                                                  who wish to produce and distribute                      under Section 19(b)(2)(B) 17 of the Act to                2015.
                                                  their own market data. This proprietary                 determine whether the proposed rule                         For the Commission, by the Division of
                                                  data is produced by each individual                     change should be approved or                              Trading and Markets, pursuant to delegated
                                                  exchange, as well as other entities (such               disapproved.                                              authority.18
                                                  as internalizing broker-dealers and                     IV. Solicitation of Comments                              Robert W. Errett,
                                                  various forms of alternative trading                                                                              Deputy Secretary.
                                                  systems, including dark pools and                         Interested persons are invited to
                                                                                                          submit written data, views, and                           [FR Doc. 2015–25185 Filed 10–2–15; 8:45 am]
                                                  electronic communication networks), in
                                                  a vigorously competitive market. It is                  arguments concerning the foregoing,                       BILLING CODE 8011–01–P

                                                  common for market participants to                       including whether the proposed rule
                                                  further and exploit this competition by                 change is consistent with the Act.
                                                                                                          Comments may be submitted by any of                       SECURITIES AND EXCHANGE
                                                  sending their order flow and transaction                                                                          COMMISSION
                                                  reports to multiple markets, rather than                the following methods:
                                                  providing them all to a single market.                  Electronic Comments                                       [Release No. 34–76015; File No. SR–BATS–
                                                                                                                                                                    2015–76]
                                                  C. Self-Regulatory Organization’s                          • Use the Commission’s Internet
                                                  Statement on Comments on the                            comment form (http://www.sec.gov/                         Self-Regulatory Organizations; BATS
                                                  Proposed Rule Change Received From                      rules/sro.shtml); or                                      Exchange, Inc.; Notice of Filing and
                                                  Members, Participants, or Others                           • Send an email to rule-comments@
                                                                                                                                                                    Immediate Effectiveness of a Proposed
                                                                                                          sec.gov. Please include File Number SR–
                                                    No written comments were solicited                                                                              Rule Change To Restructure and
                                                                                                          NYSEARCA–2015–83 on the subject
                                                  or received with respect to the proposed                                                                          Amend Rule 11.17, Clearly Erroneous
                                                                                                          line.
                                                  rule change.                                                                                                      Executions
                                                                                                          Paper Comments
                                                  III. Date of Effectiveness of the                                                                                 September 29, 2015.
                                                                                                             • Send paper comments in triplicate                       Pursuant to Section 19(b)(1) of the
                                                  Proposed Rule Change and Timing for
                                                                                                          to Brent J. Fields, Secretary, Securities                 Securities Exchange Act of 1934 (the
                                                  Commission Action
                                                                                                          and Exchange Commission, 100 F Street                     ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                     The Exchange has filed the proposed                  NE., Washington, DC 20549–1090.                           notice is hereby given that on
                                                  rule change pursuant to Section                         All submissions should refer to File                      September 21, 2015, BATS Exchange,
                                                  19(b)(3)(A)(iii) of the Act 13 and Rule                 Number SR–NYSEARCA–2015–83. This                          Inc. (the ‘‘Exchange’’ or ‘‘BATS’’) filed
                                                  19b–4(f)(6) thereunder.14 Because the                   file number should be included on the                     with the Securities and Exchange
                                                  proposed rule change does not: (i)                      subject line if email is used. To help the                Commission (‘‘Commission’’) the
                                                  Significantly affect the protection of                  Commission process and review your                        proposed rule change as described in
                                                  investors or the public interest; (ii)                  comments more efficiently, please use                     Items I, II, and III below, which items
                                                  impose any significant burden on                        only one method. The Commission will                      have been prepared by the Exchange.
                                                  competition; and (iii) become operative                 post all comments on the Commission’s                     The Commission is publishing this
                                                  prior to 30 days from the date on which                 Internet Web site (http://www.sec.gov/                    notice to solicit comments on the
                                                  it was filed, or such shorter time as the               rules/sro.shtml). Copies of the                           proposed rule change from interested
                                                  Commission may designate, if                            submission, all subsequent                                persons.
                                                  consistent with the protection of                       amendments, all written statements
                                                  investors and the public interest, the                  with respect to the proposed rule                         I. Self-Regulatory Organization’s
                                                  proposed rule change has become                         change that are filed with the                            Statement of the Terms of Substance of
                                                  effective pursuant to Section 19(b)(3)(A)               Commission, and all written                               the Proposed Rule Change
                                                  of the Act and Rule 19b–4(f)(6)(iii)                    communications relating to the                               The Exchange filed a proposal to
                                                  thereunder.                                             proposed rule change between the                          restructure and amend Rule 11.17,
                                                     A proposed rule change filed under                   Commission and any person, other than                     Clearly Erroneous Executions, in order
                                                  Rule 19b–4(f)(6) 15 normally does not                   those that may be withheld from the                       to conform to the rules of EDGA
                                                  become operative prior to 30 days after                 public in accordance with the                             Exchange, Inc. (‘‘EDGA’’) and EDGX
                                                  the date of the filing. However, pursuant               provisions of 5 U.S.C. 552, will be                       Exchange, Inc. (‘‘EDGX’’).3
                                                  to Rule 19b4(f)(6)(iii),16 the Commission               available for Web site viewing and                           The text of the proposed rule change
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  may designate a shorter time if such                    printing in the Commission’s Public                       is available at the Exchange’s Web site
                                                  action is consistent with the protection                Reference Room, 100 F Street NE.,                         at www.batstrading.com, at the
                                                  of investors and the public interest.                   Washington, DC 20549 on official                          principal office of the Exchange, and at
                                                                                                          business days between the hours of
                                                    13 15 U.S.C. 78s(b)(3)(A)(iii).                       10:00 a.m. and 3:00 p.m. Copies of such                     18 17 CFR 200.30–3(a)(12).
                                                    14 17 CFR 240.19b–4(f)(6).                            filing also will be available for                           1 15 U.S.C. 78s(b)(1).
                                                    15 17 CFR 240.19b–4(f)(6).                                                                                        2 17 CFR 240.19b–4.
                                                    16 17 CFR 240.19b–4(f)(6)(iii).                         17 15   U.S.C. 78s(b)(2)(B).                              3 See EDGA and EDGX Rule 11.15.




                                             VerDate Sep<11>2014   18:34 Oct 02, 2015   Jkt 238001   PO 00000   Frm 00097    Fmt 4703      Sfmt 4703   E:\FR\FM\05OCN1.SGM    05OCN1



Document Created: 2015-12-15 08:53:31
Document Modified: 2015-12-15 08:53:31
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 60208 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR