80 FR 69748 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Specifying 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		69748-69749
FR Document		2015-28511
Federal Register, Volume 80 Issue 217 (Tuesday, November 10, 2015)
[Federal Register Volume 80, Number 217 (Tuesday, November 10, 2015)]
[Notices]
[Pages 69748-69749]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-28511]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76347; File No. SR-NYSEARCA-2015-98]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Specifying 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, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE 
Arca'') 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 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 NYSE Arca Equities Rule 7.37 (``Rule 
7.37'') and NYSE Arca Equities Rule 7.37P (``Rule 7.37'') 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\ or proprietary data feeds from individual 
market centers (``Direct Feed''). On February 24, 2015, the Exchange 
adopted Commentary .01 to Rule 7.37 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. 72708 (July 29, 
2014), 79 FR 45572 (Aug. 5, 2014) (SR-NYSEArca-2014-82) (``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. 74409 (March 2, 
2015), 80 FR 12221 (March 6, 2015) (SR-NYSEArca-2015-11). Rule 
7.37P, which is based on Rule 7.37, specifies order execution, 
including use of data feeds, on the Exchange's Pillar trading 
platform. See Securities Exchange Release No. 75494 (July 20, 2015), 
80 FR 44170 (July 24, 2015) (SR-NYSEArca-2015-38).
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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 Commentary .01 to Rule 7.37 and Rule 
7.37P(d) 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

[[Page 69749]]

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) 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-NYSEARCA-2015-98 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-2015-98. 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-
98, and should be submitted on or before December 1, 2015.
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    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Brent J. Fields,
Secretary.
[FR Doc. 2015-28511 Filed 11-9-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices 69749

of an exchange’s execution and routing Commission believes that waiving the only one method. The Commission will
services. 30-day operative delay is consistent post all comments on the Commission’s
with the protection of investors and the Internet Web site (http://www.sec.gov/
B. Self-Regulatory Organization's
public interest because this waiver will rules/sro.shtml). Copies of the
Statement on Burden on Competition
enable the Exchange to disclose in a submission, all subsequent
The Exchange does not believe that timely manner that it will be using NSX amendments, all written statements
the proposed rule change will impose SIP data for purpose of fulfilling its with respect to the proposed rule
any burden on competition that is not order handling and execution, order change that are filed with the
necessary or appropriate in furtherance routing, and regulatory compliance Commission, and all written
of the purposes of the Act. The obligations, if and when NSX receives communications relating to the
proposed change is not designed to the necessary regulatory approval to proposed rule change between the
address any competitive issue but rather recommence trading.10 For this reason, Commission and any person, other than
would provide the public and investors the Commission hereby waives the 30- those that may be withheld from the
with information about which data day operative delay requirement and public in accordance with the
feeds the Exchange uses for execution designates the proposed rule change as provisions of 5 U.S.C. 552, will be
and routing decisions. operative upon filing.11 available for Web site viewing and
C. Self-Regulatory Organization's At any time within 60 days of the printing in the Commission’s Public
Statement on Comments on the filing of such proposed rule change, the Reference Room, 100 F Street NE.,
Proposed Rule Change Received From Commission summarily may Washington, DC 20549 on official
Members, Participants, or Others temporarily suspend such rule change if business days between the hours of
it appears to the Commission that such 10:00 a.m. and 3:00 p.m. Copies of such
No written comments were solicited filing also will be available for
action is necessary or appropriate in the
or received with respect to the proposed inspection and copying at the principal
public interest, for the protection of
rule change. offices of the Exchange. All comments
investors, or otherwise in furtherance of
III. Date of Effectiveness of the the purposes of the Act. If the received will be posted without change;
Proposed Rule Change and Timing for Commission takes such action, the the Commission does not edit personal
Commission Action Commission shall institute proceedings identifying information from
under Section 19(b)(2)(B) 12 of the Act to submissions. You should submit only
The Exchange has filed the proposed
determine whether the proposed rule information that you wish to make
rule change pursuant to Section
change should be approved or available publicly. All submissions
19(b)(3)(A)(iii) of the Act 8 and Rule
disapproved. should refer to File Number SR–
19b–4(f)(6) thereunder.9 Because the
NYSEARCA–2015–98, and should be
proposed rule change does not: (i) IV. Solicitation of Comments submitted on or before December 1,
Significantly affect the protection of
Interested persons are invited to 2015.
investors or the public interest; (ii)
impose any significant burden on submit written data, views, and For the Commission, by the Division of
competition; and (iii) become operative arguments concerning the foregoing, Trading and Markets, pursuant to delegated
prior to 30 days from the date on which including whether the proposed rule authority.13
it was filed, or such shorter time as the change is consistent with the Act. Brent J. Fields,
Commission may designate, if Comments may be submitted by any of Secretary.
consistent with the protection of the following methods: [FR Doc. 2015–28511 Filed 11–9–15; 8:45 am]
investors and the public interest, the Electronic Comments BILLING CODE 8011–01–P
proposed rule change has become
• Use the Commission’s Internet
effective pursuant to Section 19(b)(3)(A)
comment form (http://www.sec.gov/ SECURITIES AND EXCHANGE
of the Act and Rule 19b–4(f)(6)(iii)
rules/sro.shtml); or COMMISSION
thereunder. • Send an email to rule-comments@
The Exchange has asked the [Release No. 34–76345; File No. SR–
sec.gov. Please include File Number SR–
Commission to waive the 30-day NYSEMKT–2015–84]
NYSEARCA–2015–98 on the subject
operative delay so that the proposal may
line.
become operative immediately upon Self-Regulatory Organizations; NYSE
filing. The Exchange has stated that it is Paper Comments MKT LLC; Notice of Filing and
requesting this waiver because NSX • Send paper comments in triplicate Immediate Effectiveness of Proposed
intends to reactivate its status as an to Brent J. Fields, Secretary, Securities Rule Change Amending NYSE MKT
operating Participant of the SIPs, subject and Exchange Commission, 100 F Street Rule 19—Equities To Specify in
to regulatory approval, and that the NE., Washington, DC 20549–1090. Exchange Rules the Exchange’s Use of
proposed rule change would permit the Data Feeds From National Stock
All submissions should refer to File Exchange, Inc. for Order Handling and
Exchange to immediately provide the
Number SR–NYSEARCA–2015–98. This Execution, Order Routing, and
enhanced transparency in Exchange
file number should be included on the Regulatory Compliance
rules regarding which data feeds the
subject line if email is used. To help the
Exchange would use for NSX. The
Commission process and review your November 4, 2015.
asabaliauskas on DSK5VPTVN1PROD with NOTICES

8 15 U.S.C. 78s(b)(3)(A)(iii).
comments more efficiently, please use Pursuant to Section 19(b)(1) of the
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Securities Exchange Act of 1934
4(f)(6)(iii) requires a self-regulatory organization to
10 In granting this waiver, the Commission does
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
give the Commission written notice of its intent to not express an opinion on whether or not NSX will notice is hereby given that on October
file the proposed rule change, along with a brief receive regulatory approval to recommence trading.
11 For purposes only of waiving the 30-day
20, 2015, NYSE MKT LLC (the
description and text of the proposed rule change,
at least five business days prior to the date of filing operative delay, the Commission has considered the
13 17 CFR 200.30–3(a)(12).
of the proposed rule change, or such shorter time proposed rule’s impact on efficiency, competition,
as designated by the Commission. The Exchange and capital formation. See 15 U.S.C. 78c(f). 1 15 U.S.C. 78s(b)(1).
has satisfied this requirement. 12 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4.

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Document Created: 2018-03-01 11:24:38
Document Modified: 2018-03-01 11:24:38
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 69748