80 FR 69737 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 19 To Specify in Exchange Rules the Exchange's Use of Data Feeds From National Stock Exchange, Inc. for Order Handling and Execution, Order Routing, and Regulatory Compliance

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 217 (November 10, 2015)

Page Range		69737-69738
FR Document		2015-28505
Federal Register, Volume 80 Issue 217 (Tuesday, November 10, 2015)
[Federal Register Volume 80, Number 217 (Tuesday, November 10, 2015)]
[Notices]
[Pages 69737-69738]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-28505]



[[Page 69737]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76339; File No. SR-NYSE-2015-51]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Amending Rule 19 To Specify in Exchange Rules the Exchange's Use of 
Data Feeds From National Stock Exchange, Inc. for Order Handling and 
Execution, Order Routing, and Regulatory Compliance

November 4, 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 October 20, 2015, New York Stock Exchange LLC (``NYSE'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I and II 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 19 to specify in Exchange rules 
the Exchange's use of data feeds from National Stock Exchange, Inc. for 
order handling and execution, order routing, and regulatory compliance. 
The text of the proposed rule change is available on the Exchange's Web 
site at www.nyse.com, at the principal office of the Exchange, and at 
the Commission's Public Reference Room.

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

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

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 amend Rule 19 to specify in Exchange rules 
which data feeds from National Stock Exchange, Inc. (``NSX'') that the 
Exchange would use for order handling and execution, order routing, and 
regulatory compliance.
    On July 18, 2014, the Exchange filed a proposed rule change that 
clarified the Exchange's use of certain data feeds for order handling 
and execution, order routing, and regulatory compliance.\3\ As noted in 
that filing, the data feeds available for the purposes of order 
handling and execution, order routing, and regulatory compliance at the 
Exchange include the exclusive securities information processor 
(``SIP'') data feeds.\4\ On February 24, 2015, the Exchange adopted 
Supplementary Material .01 to Rule 19 to specify which data feeds that 
the Exchange uses for the handling, execution, and routing of orders, 
as well as for regulatory compliance.\5\
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    \3\ See Securities Exchange Act Release No. 72710 (July 29, 
2014), 79 FR 45511 (Aug. 5, 2014) (SR-NYSE-2014-38) (``July 2014 
Data Feed Filing'').
    \4\ The SIP feeds are disseminated pursuant to effective joint-
industry plans as required by Rule 603(b) of Regulation NMS. 17 CFR 
242.603(b). The three joint-industry plans are: (1) The CTA Plan, 
which is operated by the Consolidated Tape Association and 
disseminates transaction information for securities with the primary 
listing market on exchanges other than NASDAQ Stock Market LLC 
(``Nasdaq''): (2) The CQ Plan, which disseminates consolidated 
quotation information for securities with their primary listing on 
exchanges other than Nasdaq; and (3) the Nasdaq UTP Plan, which 
disseminates consolidated transaction and quotation information for 
securities with their primary listing on Nasdaq.
    \5\ See Securities Exchange Act Release No. 74410 (March 2, 
2015), 80 FR 12240 (March 6, 2015) (SR-NYSE-2015-09).
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    To reflect that, subject to regulatory approval, NSX intends to 
reopen trading and has reactivated its connections to the SIPs, the 
Exchange proposes to amend Supplementary Material .01 to Rule 19, to 
specify which data feeds the Exchange would use for NSX. As proposed, 
the Exchange would use the SIP Data Feed for NSX and would not have a 
secondary source.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (the ``Act''),\6\ in general, and 
furthers the objectives of Section 6(b)(5),\7\ in particular, because 
it is designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities, to remove impediments to, and perfect the 
mechanism of, a free and open market and a national market system and, 
in general, to protect investors and the public interest. The Exchange 
believes that the proposed rule change removes impediments to and 
perfects the mechanism of a free and open market because it provides 
enhanced transparency to better assess the quality of an exchange's 
execution and routing services.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed change is not 
designed to address any competitive issue but rather would provide the 
public and investors with information about which data feeds the 
Exchange uses for execution and routing decisions.

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

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

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\ 
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)

[[Page 69738]]

of the Act and Rule 19b-4(f)(6)(iii) thereunder.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Exchange has stated that it is requesting this waiver 
because NSX intends to reactivate its status as an operating 
Participant of the SIPs, subject to regulatory approval, and that the 
proposed rule change would permit the Exchange to immediately provide 
the enhanced transparency in Exchange rules regarding which data feeds 
the Exchange would use for NSX. The Commission believes that waiving 
the 30-day operative delay is consistent with the protection of 
investors and the public interest because this waiver will enable the 
Exchange to disclose in a timely manner that it will be using NSX SIP 
data for purpose of fulfilling its order handling and execution, order 
routing, and regulatory compliance obligations, if and when NSX 
receives the necessary regulatory approval to recommence trading.\10\ 
For this reason, the Commission hereby waives the 30-day operative 
delay requirement and designates the proposed rule change as operative 
upon filing.\11\
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    \10\ In granting this waiver, the Commission does not express an 
opinion on whether or not NSX will receive regulatory approval to 
recommence trading.
    \11\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of 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) \12\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \12\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSE-2015-51 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-NYSE-2015-51. 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-NYSE-2015-51, 
and should be submitted on or before December 1, 2015.\13\

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.
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    \13\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-28505 Filed 11-9-15; 8:45 am]
 BILLING CODE 8011-01-P
69738 Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices

of the Act and Rule 19b–4(f)(6)(iii) • Send an email to rule-comments@ SECURITIES AND EXCHANGE
thereunder. sec.gov. Please include File Number SR– COMMISSION
The Exchange has asked the NYSE–2015–51 on the subject line.
Commission to waive the 30-day [Release No. 34–76343; File No. SR–
Paper Comments NYSEMKT–2015–82]
operative delay so that the proposal may
become operative immediately upon
• Send paper comments in triplicate Self-Regulatory Organizations; NYSE
filing. The Exchange has stated that it is MKT LLC; Notice of Filing and
to Brent J. Fields, Secretary, Securities
requesting this waiver because NSX Immediate Effectiveness of Proposed
and Exchange Commission, 100 F Street
intends to reactivate its status as an Rule Change Requiring Certain
operating Participant of the SIPs, subject NE., Washington, DC 20549–1090.
Member Organizations To Participate
to regulatory approval, and that the All submissions should refer to File in Business Continuity and Disaster
proposed rule change would permit the Number SR–NYSE–2015–51. This file Recovery Plans Testing in Connection
Exchange to immediately provide the number should be included on the With Regulation Systems Compliance
enhanced transparency in Exchange subject line if email is used. To help the and Integrity
rules regarding which data feeds the Commission process and review your
Exchange would use for NSX. The November 4, 2015.
comments more efficiently, please use
Commission believes that waiving the Pursuant to Section 19(b)(1) 1 of the
only one method. The Commission will
30-day operative delay is consistent Securities Exchange Act of 1934 (the
post all comments on the Commission’s ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
with the protection of investors and the Internet Web site (http://www.sec.gov/
public interest because this waiver will notice is hereby given that on October
rules/sro.shtml). Copies of the 26, 2015, NYSE MKT LLC (the
enable the Exchange to disclose in a
submission, all subsequent ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
timely manner that it will be using NSX
amendments, all written statements the Securities and Exchange
SIP data for purpose of fulfilling its
order handling and execution, order with respect to the proposed rule Commission (the ‘‘Commission’’) the
routing, and regulatory compliance change that are filed with the proposed rule change as described in
obligations, if and when NSX receives Commission, and all written Items I and II below, which Items have
the necessary regulatory approval to communications relating to the been prepared by the self-regulatory
recommence trading.10 For this reason, proposed rule change between the organization. The Commission is
the Commission hereby waives the 30- Commission and any person, other than publishing this notice to solicit
day operative delay requirement and those that may be withheld from the comments on the proposed rule change
designates the proposed rule change as public in accordance with the from interested persons.
operative upon filing.11 provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s
At any time within 60 days of the available for Web site viewing and Statement of the Terms of Substance of
filing of such proposed rule change, the printing in the Commission’s Public the Proposed Rule Change
Commission summarily may Reference Room, 100 F Street NE.,
temporarily suspend such rule change if Washington, DC 20549 on official The Exchange proposes to require
it appears to the Commission that such certain Exchange member
business days between the hours of
action is necessary or appropriate in the organizations 4 (‘‘Members’’) to
10:00 a.m. and 3:00 p.m. Copies of such
public interest, for the protection of participate in business continuity and
filing also will be available for disaster recovery plans (‘‘BC/DR Plans’’)
investors, or otherwise in furtherance of inspection and copying at the principal
the purposes of the Act. If the offices of the Exchange. All comments 1 15 U.S.C.78s(b)(1).
Commission takes such action, the received will be posted without change; 2 15 U.S.C. 78a.
Commission shall institute proceedings the Commission does not edit personal 3 17 CFR 240.19b–4.
under Section 19(b)(2)(B) 12 of the Act to
identifying information from 4 The term ‘‘member organization’’ is defined in
determine whether the proposed rule Rule 24 (Office Rules) as ‘‘a partnership,
submissions. You should submit only
change should be approved or corporation or such other entity as the Exchange
disapproved. information that you wish to make may, by Rule, permit to become a member
available publicly. All submissions organization, and which meets the qualifications
IV. Solicitation of Comments should refer to File Number SR–NYSE– specified in the Rules.’’ The term ‘‘member
organization’’ is defined in Rule 2(b)(i) (Equities
Interested persons are invited to 2015–51, and should be submitted on or Rules) as a registered broker or dealer (unless
submit written data, views, and before December 1, 2015.13 exempt pursuant to the Securities Exchange Act of
arguments concerning the foregoing, 1934) (the ‘‘Act’’) that is a member of the Financial
For the Commission, by the Division of Industry Regulatory Authority, Inc. (‘‘FINRA’’) or
including whether the proposed rule Trading and Markets, pursuant to delegated another registered securities exchange. Member
change is consistent with the Act. authority. organizations that transact business with public
Comments may be submitted by any of Brent J. Fields,
customers or conduct business on the Floor of the
the following methods: Exchange shall at all times be members of FINRA.
Secretary. A registered broker or dealer must also be approved
Electronic Comments [FR Doc. 2015–28505 Filed 11–9–15; 8:45 am] by the Exchange and authorized to designate an
associated natural person to effect transactions on
• Use the Commission’s Internet BILLING CODE 8011–01–P the floor of the Exchange or any facility thereof.
comment form (http://www.sec.gov/ This term shall include a natural person so
asabaliauskas on DSK5VPTVN1PROD with NOTICES

rules/sro.shtml); or registered, approved and licensed who directly
effects transactions on the floor of the Exchange or
any facility thereof.’’ The term ‘‘member
10 In granting this waiver, the Commission does
organization’’ also includes any registered broker or
not express an opinion on whether or not NSX will dealer that is a member of FINRA or a registered
receive regulatory approval to recommence trading. securities exchange, consistent with the
11 For purposes only of waiving the 30-day
requirements of section 2(b)(i) of this Rule, which
operative delay, the Commission has considered the does not own a trading license and agrees to be
proposed rule’s impact on efficiency, competition, regulated by the Exchange as a member
and capital formation. See 15 U.S.C. 78c(f). organization and which the Exchange has agreed to
12 15 U.S.C. 78s(b)(2)(B). 13 17 CFR 200.30–3(a)(12). regulate.’’ See Rule 2(b)(ii)—Equities.

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Document Created: 2018-03-01 11:25:19
Document Modified: 2018-03-01 11:25:19
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 69737