81_FR_4706 81 FR 4689 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Establishing the NYSE Arca Order Imbalances Proprietary Market Data Product

81 FR 4689 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Establishing the NYSE Arca Order Imbalances Proprietary Market Data Product

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 17 (January 27, 2016)

Page Range4689-4691
FR Document2016-01667

Federal Register, Volume 81 Issue 17 (Wednesday, January 27, 2016)
[Federal Register Volume 81, Number 17 (Wednesday, January 27, 2016)]
[Notices]
[Pages 4689-4691]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-01667]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76968; File No. SR-NYSEArca-2016-10]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Establishing the 
NYSE Arca Order Imbalances Proprietary Market Data Product

January 22, 2016.
    Pursuant to section 19(b)(1)\1\ of the Securities Exchange Act of 
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that on January 13, 2016, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. 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\ 15 U.S.C. 78a.
    \3\ 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 establish the NYSE Arca Order Imbalances 
proprietary market data product. 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to establish the NYSE Arca Order Imbalances 
datafeed as a separate, stand-alone market data product. The NYSE Arca 
Order Imbalances product would be a real-time datafeed of the 
information that the Exchange provides in advance of an auction.
    The Exchange is establishing the NYSE Arca Order Imbalances product 
in connection with the implementation of Pillar, the Exchange's 
proposed new technology trading platform.\4\ Pillar is the integrated 
trading technology platform designed to use a single specification for 
connecting to the equities and options markets operated by NYSE Arca 
and its affiliates, New York Stock Exchange LLC (``NYSE'') and NYSE MKT 
LLC (``NYSE MKT''). NYSE Arca Equities would be the first trading

[[Page 4690]]

system to migrate to Pillar. Rule 7.35P(a)(4)(C) provides that the 
Exchange will disseminate Auction Imbalance Information via a 
proprietary data feed during the times specified in the rule, and 
through this filing, the Exchange proposes to establish the NYSE Arca 
Order Imbalances feed as the proprietary data feed to which Rule 
7.35P(a)(4)(C) refers.
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    \4\ See Securities Exchange Act Release Nos. 74951 (May 13, 
2015), 80 FR 28721 (May 19, 2015) (Notice) and 75494 (July 20, 
2015), 80 FR 44170 (July 24, 2015) (Order) (SR-NYSEArca-2015-38) 
(``Pillar I Filing''); 75497 (July 21, 2015), 80 FR 45022 (July 28, 
2015) (Notice) and 76267 (Oct. 26, 2015), 80 FR 66951 (Oct. 30, 
2015) (Order) (SR-NYSEArca-2015-56)(``Pillar II Filing''); 75467 
(July 16, 2015), 80 FR 43515 (July 22, 2015) (Notice) and 76198 
(Oct. 20, 2015), 80 FR 65274 (Oct. 26, 2015) (Order) (SR-NYSEArca-
2015-58) (``Pillar III Filing''); and 76085 (Oct. 6, 2015), 80 FR 
61513 (Oct. 13, 2015) (Notice) and 76869 (Jan. 11, 2016) (Order) 
(SR-NYSEArca-2015-86) (``Pillar Auction Filing'').
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    Rule 7.35P(a)(4) defines Auction Imbalance Information as the 
information disseminated by the Exchange for an auction. As set forth 
in Rule 7.35P, Auction Imbalance information includes, if applicable, 
the Total Imbalance, Market Imbalance, Indicative Match Price and 
Matched Volume, each as defined in Rule 7.35P(a). The Auction Imbalance 
Information would be disseminated on a time frame specified in Rule 
7.35P. The NYSE Arca Order Imbalances market data product would provide 
Auction Imbalance Information with respect to symbols migrated to the 
Pillar platform.
    NYSE Arca order imbalance information, as defined in Rule 7.35, is 
currently available through the NYSE ArcaBook and NYSE Arca Integrated 
proprietary market data products and would continue to be disseminated 
on these data feeds when symbols migrate to Pillar.\5\ When a symbol 
migrates to Pillar, the NYSE Arca order imbalance information available 
through NYSE ArcaBook and NYSE Arca Integrated proprietary market data 
products would be based on Rule 7.35P.
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    \5\ See Pillar Auction Filing Notice, footnotes 22 and 23. See 
also Securities Exchange Act Release Nos. 59039 (Dec. 2, 2008), 73 
FR 74770 (Dec. 9, 2008) (NYSE ArcaBook); and 65669 (Nov. 2, 2011), 
76 FR 69311 (Nov. 8, 2011) (NYSE Arca Integrated Data Feed).
---------------------------------------------------------------------------

    The Exchange proposes to offer the NYSE Arca Order Imbalances 
product through networks in the Exchange's Mahwah, New Jersey data 
center that are available to users of the Exchange's co-location 
services. The Exchange also would offer the NYSE Arca Order Imbalances 
product 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 file a separate rule filing to establish the fees 
for the NYSE Arca Order Imbalances product. As noted above, the 
Exchange is establishing the NYSE Arca Order Imbalances product in 
conjunction with the implementation of Pillar, the Exchange's proposed 
new technology trading platform,\6\ and the Exchange will announce the 
date that the product will be available through an NYSE Market Data 
Notice.
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    \6\ See note 4, supra.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) \7\ of the Act, in general, and furthers the 
objectives of section 6(b)(5) \8\ 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. This proposal is in keeping with those principles in that it 
promotes increased transparency through the dissemination of the NYSE 
Arca Order Imbalances market data product to those interested in 
receiving it.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 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 new options for receiving market data as 
requested by market data vendors and purchasers. The proposed rule 
change would benefit investors by facilitating their prompt access to 
the real-time information contained in the NYSE Arca Order Imbalances 
market data product.
    In adopting Regulation NMS, the Commission granted self-regulatory 
organizations (``SROs'') 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 NYSE Arca Order Imbalances market data 
product is precisely the sort of market data product that the 
Commission envisioned when it adopted Regulation NMS. The Commission 
concluded that Regulation NMS would itself further the Act's goals of 
facilitating efficiency and competition:

    Efficiency 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.\9\
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    \9\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005) (``Regulation NMS Adopting 
Release'').
---------------------------------------------------------------------------

    The Exchange further notes that the existence of alternatives to 
the Exchange's product, including order imbalances products offered by 
the Exchange's affiliates, NYSE and NYSE MKT,\10\ and by the Nasdaq 
Stock Market (``NASDAQ''),\11\ as well as 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 as their 
individual business cases warrant. This proposed new data feed provides 
investors with new options for receiving market data, which was a 
primary goal of the market data amendments adopted by Regulation 
NMS.\12\
---------------------------------------------------------------------------

    \10\ See Securities Act Release Nos. 59543 (March 9, 2009), 74 
FR 11159 (March 16, 2009) (SR-NYSE-2008-132) (NYSE Order Imbalances) 
and 59743 (April 9, 2009), 74 FR 17699 (April 16, 2009) (SR-
NYSEAmex-2009-11)(NYSE Amex Order Imbalances, n/k/a NYSE MKT Order 
Imbalances).
    \11\ See Nasdaq TotalView-ITCH, http://www.nasdaqtrader.com/Trader.aspx?id=Totalview2 (last visited November 25, 2015)(displays 
the full order book depth for Nasdaq market participants and also 
disseminates the Net Order Imbalance Indicator (NOII) for the Nasdaq 
Opening and Closing Crosses and Nasdaq IPO/Halt Cross).
    \12\ See Regulation NMS Adopting Release, supra, at 37503.
---------------------------------------------------------------------------

    The NYSE Arca Order Imbalances market data product will help to 
protect a free and open market by providing additional data to the 
marketplace and by giving investors greater choices. In addition, the 
proposal would not permit unfair discrimination because the product 
will be available to all of the Exchange's customers and broker-dealers 
through both SFTI and the Liquidity Center Network.

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

    In accordance with section 6(b)(8) of the Act,\13\ 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. Because other exchanges already offer similar 
products, the Exchange's proposed NYSE Arca Order Imbalances market 
data product will enhance

[[Page 4691]]

competition. The NYSE Arca Order Imbalances product will foster 
competition by providing an alternative to similar products offered by 
other exchanges, including order imbalances products offered by the 
Exchange's affiliates, NYSE and NYSE MKT,\14\ and by NASDAQ.\15\ This 
proposed new data feed provides investors with new options for 
receiving market data, which was a primary goal of the market data 
amendments adopted by Regulation NMS.\16\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b)(8).
    \14\ See note 10, supra.
    \15\ See note 11, supra.
    \16\ See Regulation NMS Adopting Release, supra, at 37503.
---------------------------------------------------------------------------

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

    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 for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, it has become effective pursuant to section 
19(b)(3)(A) of the Act \17\ and Rule 19b-4(f)(6) thereunder.\18\
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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the 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.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \19\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \20\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. 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 
stated that it anticipates migrating symbols to Pillar beginning 
February 1, 2016, and that waiver of the operative delay would permit 
market data that would be available in existing products for symbols 
that have migrated to Pillar to also be available in a stand-alone 
product, which would offer an alternative to currently available 
proprietary data products. The Commission believes the waiver of the 
operative delay is consistent with the protection of investors and the 
public interest. Therefore, the Commission hereby waives the operative 
delay and designates the proposal operative upon filing.\21\
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    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ 17 CFR 240.19b-4(f)(6)(iii).
    \21\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is 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 to 
determine whether the proposed rule change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the 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 rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2016-10 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-2016-10. 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 office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEArca-2016-10, and should 
be submitted on or before February 17, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-01667 Filed 1-26-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                   Federal Register / Vol. 81, No. 17 / Wednesday, January 27, 2016 / Notices                                                      4689

                                                    C. Self-Regulatory Organization’s                          those that may be withheld from the                    I. Self-Regulatory Organization’s
                                                    Statement on Comments on the                               public in accordance with the                          Statement of the Terms of Substance of
                                                    Proposed Rule Change Received From                         provisions of 5 U.S.C. 552, will be                    the Proposed Rule Change
                                                    Members, Participants, or Others                           available for Web site viewing and                        The Exchange proposes to establish
                                                      No written comments were either                          printing in the Commission’s Public                    the NYSE Arca Order Imbalances
                                                    solicited or received.                                     Reference Room, 100 F Street NE.,                      proprietary market data product. The
                                                                                                               Washington, DC 20549, on official                      proposed rule change is available on the
                                                    III. Date of Effectiveness of the
                                                                                                               business days between the hours of                     Exchange’s Web site at www.nyse.com,
                                                    Proposed Rule Change and Timing for
                                                                                                               10:00 a.m. and 3:00 p.m. Copies of the                 at the principal office of the Exchange,
                                                    Commission Action
                                                                                                               filing also will be available for                      and at the Commission’s Public
                                                       The foregoing rule change has become                    inspection and copying at the principal                Reference Room.
                                                    effective pursuant to Section                              office of the Exchange. All comments
                                                    19(b)(3)(A)(ii) of the Act.10                                                                                     II. Self-Regulatory Organization’s
                                                                                                               received will be posted without change;                Statement of the Purpose of, and
                                                       At any time within 60 days of the
                                                    filing of the proposed rule change, the                    the Commission does not edit personal                  Statutory Basis for, the Proposed Rule
                                                    Commission summarily may                                   identifying information from                           Change
                                                    temporarily suspend such rule change if                    submissions. You should submit only                       In its filing with the Commission, the
                                                    it appears to the Commission that such                     information that you wish to make                      self-regulatory organization included
                                                    action is: (i) Necessary or appropriate in                 available publicly. All submissions                    statements concerning the purpose of,
                                                    the public interest; (ii) for the protection               should refer to File Number SR–                        and basis for, the proposed rule change
                                                    of investors; or (iii) otherwise in                        NASDAQ–2016–003 and should be                          and discussed any comments it received
                                                    furtherance of the purposes of the Act.                    submitted on or before February 17,                    on the proposed rule change. The text
                                                    If the Commission takes such action, the                   2016.                                                  of those statements may be examined at
                                                    Commission shall institute proceedings                       For the Commission, by the Division of               the places specified in Item IV below.
                                                    to determine whether the proposed rule                     Trading and Markets, pursuant to delegated             The Exchange has prepared summaries,
                                                    should be approved or disapproved.                         authority.11                                           set forth in sections A, B, and C below,
                                                    IV. Solicitation of Comments                                                                                      of the most significant parts of such
                                                                                                               Brent J. Fields,
                                                                                                                                                                      statements.
                                                      Interested persons are invited to                        Secretary.
                                                    submit written data, views and                             [FR Doc. 2016–01532 Filed 1–26–16; 8:45 am]            A. Self-Regulatory Organization’s
                                                    arguments concerning the foregoing,                                                                               Statement of the Purpose of, and
                                                                                                               BILLING CODE 8011–01–P
                                                    including whether the proposed rule                                                                               Statutory Basis for, the Proposed Rule
                                                    change is consistent with the Act.                                                                                Change
                                                    Comments may be submitted by any of                        SECURITIES AND EXCHANGE                                1. Purpose
                                                    the following methods:                                     COMMISSION                                                The Exchange proposes to establish
                                                    Electronic Comments                                                                                               the NYSE Arca Order Imbalances
                                                      • Use the Commission’s Internet                          [Release No. 34–76968; File No. SR–                    datafeed as a separate, stand-alone
                                                                                                               NYSEArca–2016–10]                                      market data product. The NYSE Arca
                                                    comment form (http://www.sec.gov/
                                                    rules/sro.shtml); or                                                                                              Order Imbalances product would be a
                                                                                                               Self-Regulatory Organizations; NYSE
                                                      • Send an email to rule-comments@                                                                               real-time datafeed of the information
                                                    sec.gov. Please include File Number SR–                    Arca, Inc.; Notice of Filing and                       that the Exchange provides in advance
                                                    NASDAQ–2016–003 on the subject line.                       Immediate Effectiveness of Proposed                    of an auction.
                                                                                                               Rule Change Establishing the NYSE                         The Exchange is establishing the
                                                    Paper Comments                                             Arca Order Imbalances Proprietary                      NYSE Arca Order Imbalances product in
                                                       • Send paper comments in triplicate                     Market Data Product                                    connection with the implementation of
                                                    to Secretary, Securities and Exchange                                                                             Pillar, the Exchange’s proposed new
                                                    Commission, 100 F Street NE.,                              January 22, 2016.                                      technology trading platform.4 Pillar is
                                                    Washington, DC 20549–1090.                                    Pursuant to section 19(b)(1)1 of the                the integrated trading technology
                                                    All submissions should refer to File                       Securities Exchange Act of 1934 (the                   platform designed to use a single
                                                    Number SR–NASDAQ–2016–003. This                            ‘‘Act’’),2 and Rule 19b-4 thereunder,3                 specification for connecting to the
                                                    file number should be included on the                      notice is hereby given that on January                 equities and options markets operated
                                                    subject line if email is used. To help the                 13, 2016, NYSE Arca, Inc. (the                         by NYSE Arca and its affiliates, New
                                                    Commission process and review your                         ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with              York Stock Exchange LLC (‘‘NYSE’’) and
                                                    comments more efficiently, please use                      the Securities and Exchange                            NYSE MKT LLC (‘‘NYSE MKT’’). NYSE
                                                    only one method. The Commission will                       Commission (the ‘‘Commission’’) the                    Arca Equities would be the first trading
                                                    post all comments on the Commission’s                      proposed rule change as described in                      4 See Securities Exchange Act Release Nos. 74951
                                                    Internet Web site (http://www.sec.gov/                     Items I and II below, which Items have                 (May 13, 2015), 80 FR 28721 (May 19, 2015)
                                                    rules/sro.shtml). Copies of the                            been prepared by the self-regulatory                   (Notice) and 75494 (July 20, 2015), 80 FR 44170
                                                    submission, all subsequent                                 organization. The Commission is                        (July 24, 2015) (Order) (SR–NYSEArca-2015–38)
                                                    amendments, all written statements
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                                                                                      (‘‘Pillar I Filing’’); 75497 (July 21, 2015), 80 FR
                                                                                                               publishing this notice to solicit                      45022 (July 28, 2015) (Notice) and 76267 (Oct. 26,
                                                    with respect to the proposed rule                          comments on the proposed rule change                   2015), 80 FR 66951 (Oct. 30, 2015) (Order) (SR–
                                                    change that are filed with the
                                                                                                               from interested persons.                               NYSEArca-2015–56)(‘‘Pillar II Filing’’); 75467 (July
                                                    Commission, and all written                                                                                       16, 2015), 80 FR 43515 (July 22, 2015) (Notice) and
                                                    communications relating to the                                                                                    76198 (Oct. 20, 2015), 80 FR 65274 (Oct. 26, 2015)
                                                    proposed rule change between the                             11 17 CFR 200.30–3(a)(12).                           (Order) (SR–NYSEArca-2015–58) (‘‘Pillar III
                                                                                                                                                                      Filing’’); and 76085 (Oct. 6, 2015), 80 FR 61513
                                                    Commission and any person, other than                        1 15 U.S.C. 78s(b)(1).
                                                                                                                                                                      (Oct. 13, 2015) (Notice) and 76869 (Jan. 11, 2016)
                                                                                                                 2 15 U.S.C. 78a.
                                                                                                                                                                      (Order) (SR–NYSEArca-2015–86) (‘‘Pillar Auction
                                                      10 15   U.S.C. 78s(b)(3)(A)(ii).                           3 17 CFR 240.19b-4.                                  Filing’’).



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                                                    4690                       Federal Register / Vol. 81, No. 17 / Wednesday, January 27, 2016 / Notices

                                                    system to migrate to Pillar. Rule                       trading platform,6 and the Exchange                    prices, sizes, market center identifications of
                                                    7.35P(a)(4)(C) provides that the                        will announce the date that the product                the NBBO and consolidated last sale
                                                    Exchange will disseminate Auction                       will be available through an NYSE                      information are not required to receive (and
                                                                                                                                                                   pay for) such data. The Commission also
                                                    Imbalance Information via a proprietary                 Market Data Notice.                                    believes that efficiency is promoted when
                                                    data feed during the times specified in                                                                        broker-dealers may choose to receive (and
                                                                                                            2. Statutory Basis
                                                    the rule, and through this filing, the                                                                         pay for) additional market data based on their
                                                    Exchange proposes to establish the                         The Exchange believes that the                      own internal analysis of the need for such
                                                    NYSE Arca Order Imbalances feed as                      proposed rule change is consistent with                data.9
                                                    the proprietary data feed to which Rule                 section 6(b) 7 of the Act, in general, and                The Exchange further notes that the
                                                    7.35P(a)(4)(C) refers.                                  furthers the objectives of section                     existence of alternatives to the
                                                       Rule 7.35P(a)(4) defines Auction                     6(b)(5) 8 of the Act, in particular, in that           Exchange’s product, including order
                                                    Imbalance Information as the                            it is designed to prevent fraudulent and               imbalances products offered by the
                                                    information disseminated by the                         manipulative acts and practices, to                    Exchange’s affiliates, NYSE and NYSE
                                                    Exchange for an auction. As set forth in                promote just and equitable principles of               MKT,10 and by the Nasdaq Stock Market
                                                    Rule 7.35P, Auction Imbalance                           trade, to foster cooperation and                       (‘‘NASDAQ’’),11 as well as real-time
                                                    information includes, if applicable, the                coordination with persons engaged in                   consolidated data, free delayed
                                                    Total Imbalance, Market Imbalance,                      facilitating transactions in securities, to            consolidated data, and proprietary data
                                                    Indicative Match Price and Matched                      remove impediments to and perfect the                  from other sources, ensures that the
                                                    Volume, each as defined in Rule                         mechanism of a free and open market                    Exchange is not unreasonably
                                                    7.35P(a). The Auction Imbalance                         and a national market system and, in                   discriminatory because vendors and
                                                    Information would be disseminated on                    general, to protect investors and the                  subscribers can elect these alternatives
                                                    a time frame specified in Rule 7.35P.                   public interest, and it is not designed to             as their individual business cases
                                                    The NYSE Arca Order Imbalances                          permit unfair discrimination among                     warrant. This proposed new data feed
                                                    market data product would provide                       customers, brokers, or dealers. This                   provides investors with new options for
                                                    Auction Imbalance Information with                      proposal is in keeping with those                      receiving market data, which was a
                                                    respect to symbols migrated to the Pillar               principles in that it promotes increased               primary goal of the market data
                                                    platform.                                               transparency through the dissemination                 amendments adopted by Regulation
                                                       NYSE Arca order imbalance                            of the NYSE Arca Order Imbalances                      NMS.12
                                                    information, as defined in Rule 7.35, is                market data product to those interested                   The NYSE Arca Order Imbalances
                                                    currently available through the NYSE                    in receiving it.                                       market data product will help to protect
                                                    ArcaBook and NYSE Arca Integrated                          The Exchange also believes this                     a free and open market by providing
                                                    proprietary market data products and                    proposal is consistent with section                    additional data to the marketplace and
                                                    would continue to be disseminated on                    6(b)(5) of the Act because it protects                 by giving investors greater choices. In
                                                    these data feeds when symbols migrate                   investors and the public interest and                  addition, the proposal would not permit
                                                    to Pillar.5 When a symbol migrates to                   promotes just and equitable principles                 unfair discrimination because the
                                                    Pillar, the NYSE Arca order imbalance                   of trade by providing investors with                   product will be available to all of the
                                                    information available through NYSE                      new options for receiving market data as               Exchange’s customers and broker-
                                                    ArcaBook and NYSE Arca Integrated                       requested by market data vendors and                   dealers through both SFTI and the
                                                    proprietary market data products would                  purchasers. The proposed rule change                   Liquidity Center Network.
                                                    be based on Rule 7.35P.                                 would benefit investors by facilitating
                                                       The Exchange proposes to offer the                   their prompt access to the real-time                   B. Self-Regulatory Organization’s
                                                    NYSE Arca Order Imbalances product                      information contained in the NYSE Arca                 Statement on Burden on Competition
                                                    through networks in the Exchange’s                      Order Imbalances market data product.                     In accordance with section 6(b)(8) of
                                                    Mahwah, New Jersey data center that                        In adopting Regulation NMS, the                     the Act,13 the Exchange does not believe
                                                    are available to users of the Exchange’s                Commission granted self-regulatory                     that the proposed rule change will
                                                    co-location services. The Exchange also                 organizations (‘‘SROs’’) and broker                    impose any burden on competition that
                                                    would offer the NYSE Arca Order                         dealers increased authority and                        is not necessary or appropriate in
                                                    Imbalances product through the                          flexibility to offer new and unique                    furtherance of the purposes of the Act.
                                                    Exchange’s Secure Financial                             market data to consumers of such data.                 Because other exchanges already offer
                                                    Transaction Infrastructure (SFTI)                       It was believed that this authority would              similar products, the Exchange’s
                                                    network, through which all other users                  expand the amount of data available to                 proposed NYSE Arca Order Imbalances
                                                    and member organizations access the                     users and consumers of such data and                   market data product will enhance
                                                    Exchange’s trading and execution                        also spur innovation and competition
                                                    systems and other proprietary market                    for the provision of market data. The                     9 See Securities Exchange Act Release No. 51808

                                                    data products.                                          Exchange believes that the NYSE Arca                   (June 9, 2005), 70 FR 37496 (June 29, 2005)
                                                       The Exchange will file a separate rule               Order Imbalances market data product                   (‘‘Regulation NMS Adopting Release’’).
                                                                                                                                                                      10 See Securities Act Release Nos. 59543 (March
                                                    filing to establish the fees for the NYSE               is precisely the sort of market data                   9, 2009), 74 FR 11159 (March 16, 2009) (SR–NYSE–
                                                    Arca Order Imbalances product. As                       product that the Commission                            2008–132) (NYSE Order Imbalances) and 59743
                                                    noted above, the Exchange is                            envisioned when it adopted Regulation                  (April 9, 2009), 74 FR 17699 (April 16, 2009) (SR–
                                                    establishing the NYSE Arca Order                        NMS. The Commission concluded that                     NYSEAmex-2009–11)(NYSE Amex Order
                                                                                                                                                                   Imbalances, n/k/a NYSE MKT Order Imbalances).
                                                    Imbalances product in conjunction with
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                                                                                                            Regulation NMS would itself further the                   11 See Nasdaq TotalView-ITCH, http://
                                                    the implementation of Pillar, the                       Act’s goals of facilitating efficiency and             www.nasdaqtrader.com/Trader.aspx?id=Totalview2
                                                    Exchange’s proposed new technology                      competition:                                           (last visited November 25, 2015)(displays the full
                                                                                                                                                                   order book depth for Nasdaq market participants
                                                                                                              Efficiency is promoted when broker-
                                                      5 See Pillar Auction Filing Notice, footnotes 22                                                             and also disseminates the Net Order Imbalance
                                                                                                            dealers who do not need the data beyond the            Indicator (NOII) for the Nasdaq Opening and
                                                    and 23. See also Securities Exchange Act Release
                                                    Nos. 59039 (Dec. 2, 2008), 73 FR 74770 (Dec. 9,                                                                Closing Crosses and Nasdaq IPO/Halt Cross).
                                                                                                              6 See note 4, supra.                                    12 See Regulation NMS Adopting Release, supra,
                                                    2008) (NYSE ArcaBook); and 65669 (Nov. 2, 2011),
                                                                                                              7 15 U.S.C. 78f(b).                                  at 37503.
                                                    76 FR 69311 (Nov. 8, 2011) (NYSE Arca Integrated
                                                    Data Feed).                                               8 15 U.S.C. 78f(b)(5).                                  13 15 U.S.C. 78f(b)(8).




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                                                                                Federal Register / Vol. 81, No. 17 / Wednesday, January 27, 2016 / Notices                                                  4691

                                                    competition. The NYSE Arca Order                        also be available in a stand-alone                     proposed rule change between the
                                                    Imbalances product will foster                          product, which would offer an                          Commission and any person, other than
                                                    competition by providing an alternative                 alternative to currently available                     those that may be withheld from the
                                                    to similar products offered by other                    proprietary data products. The                         public in accordance with the
                                                    exchanges, including order imbalances                   Commission believes the waiver of the                  provisions of 5 U.S.C. 552, will be
                                                    products offered by the Exchange’s                      operative delay is consistent with the                 available for Web site viewing and
                                                    affiliates, NYSE and NYSE MKT,14 and                    protection of investors and the public                 printing in the Commission’s Public
                                                    by NASDAQ.15 This proposed new data                     interest. Therefore, the Commission                    Reference Room, 100 F Street NE.,
                                                    feed provides investors with new                        hereby waives the operative delay and                  Washington, DC 20549 on official
                                                    options for receiving market data, which                designates the proposal operative upon                 business days between the hours of
                                                    was a primary goal of the market data                   filing.21                                              10:00 a.m. and 3:00 p.m. Copies of such
                                                    amendments adopted by Regulation                           At any time within 60 days of the
                                                                                                                                                                   filing also will be available for
                                                    NMS.16                                                  filing of the proposed rule change, the
                                                                                                            Commission summarily may                               inspection and copying at the principal
                                                    C. Self-Regulatory Organization’s                       temporarily suspend such rule change if                office of the Exchange. All comments
                                                    Statement on Comments on the                            it appears to the Commission that such                 received will be posted without change;
                                                    Proposed Rule Change Received from                      action is necessary or appropriate in the              the Commission does not edit personal
                                                    Members, Participants, or Others                        public interest, for the protection of                 identifying information from
                                                      No written comments were solicited                    investors, or otherwise in furtherance of              submissions. You should submit only
                                                    or received with respect to the proposed                the purposes of the Act. If the                        information that you wish to make
                                                    rule change.                                            Commission takes such action, the                      available publicly. All submissions
                                                                                                            Commission shall institute proceedings                 should refer to File Number SR–
                                                    III. Date of Effectiveness of the                                                                              NYSEArca–2016–10, and should be
                                                                                                            to determine whether the proposed rule
                                                    Proposed Rule Change and Timing for                                                                            submitted on or before February 17,
                                                                                                            change should be approved or
                                                    Commission Action
                                                                                                            disapproved.                                           2016.
                                                       Because the proposed rule change
                                                                                                            IV. Solicitation of Comments                             For the Commission, by the Division of
                                                    does not (i) significantly affect the
                                                                                                                                                                   Trading and Markets, pursuant to delegated
                                                    protection of investors or the public                     Interested persons are invited to
                                                                                                                                                                   authority.22
                                                    interest; (ii) impose any significant                   submit written data, views, and
                                                    burden on competition; and (iii) become                 arguments concerning the foregoing,                    Brent J. Fields,
                                                    operative for 30 days from the date on                  including whether the proposed rule                    Secretary.
                                                    which it was filed, or such shorter time                change is consistent with the Act.                     [FR Doc. 2016–01667 Filed 1–26–16; 8:45 am]
                                                    as the Commission may designate, it has                 Comments may be submitted by any of                    BILLING CODE 8011–01–P
                                                    become effective pursuant to section                    the following methods:
                                                    19(b)(3)(A) of the Act 17 and Rule 19b-                 Electronic Comments
                                                    4(f)(6) thereunder.18                                                                                          SECURITIES AND EXCHANGE
                                                       A proposed rule change filed                           • Use the Commission’s Internet                      COMMISSION
                                                    pursuant to Rule 19b-4(f)(6) under the                  comment form (http://www.sec.gov/
                                                    Act 19 normally does not become                         rules/sro.shtml); or
                                                    operative for 30 days after the date of its               • Send an email to rule-comments@                    [Release No. 34–76946; File No. SR–
                                                                                                            sec.gov. Please include File Number SR–                NASDAQ–2016–006]
                                                    filing. However, Rule 19b-4(f)(6)(iii) 20
                                                    permits the Commission to designate a                   NYSEArca–2016–10 on the subject line.
                                                                                                                                                                   Self-Regulatory Organizations; The
                                                    shorter time if such action is consistent               Paper Comments                                         NASDAQ Stock Market LLC; Notice of
                                                    with the protection of investors and the
                                                                                                               • Send paper comments in triplicate                 Filing and Immediate Effectiveness of
                                                    public interest. The Exchange has asked                                                                        Proposed Rule Change To Amend
                                                                                                            to Brent J. Fields, Secretary, Securities
                                                    the Commission to waive the 30-day                                                                             Subsection (a)(7) of Rule 7003,
                                                                                                            and Exchange Commission, 100 F Street
                                                    operative delay so that the proposal may                                                                       Registration and Processing Fees
                                                                                                            NE., Washington, DC 20549–1090.
                                                    become operative immediately upon
                                                    filing. The Exchange stated that it                     All submissions should refer to File
                                                                                                                                                                   January 21, 2016.
                                                    anticipates migrating symbols to Pillar                 Number SR–NYSEArca–2016–10. This
                                                                                                            file number should be included on the                     Pursuant to Section 19(b)(1) of the
                                                    beginning February 1, 2016, and that
                                                                                                            subject line if email is used. To help the             Securities Exchange Act of 1934
                                                    waiver of the operative delay would
                                                    permit market data that would be                        Commission process and review your                     (‘‘Act’’),1 and Rule 19b–4 2 thereunder,
                                                    available in existing products for                      comments more efficiently, please use                  notice is hereby given that, on January
                                                    symbols that have migrated to Pillar to                 only one method. The Commission will                   13, 2016, The NASDAQ Stock Market
                                                                                                            post all comments on the Commission’s                  LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed
                                                      14 See  note 10, supra.                               Internet Web site (http://www.sec.gov/                 with the Securities and Exchange
                                                      15 See  note 11, supra.                               rules/sro.shtml). Copies of the                        Commission (‘‘SEC’’ or ‘‘Commission’’)
                                                       16 See Regulation NMS Adopting Release, supra,       submission, all subsequent                             the proposed rule change as described
                                                    at 37503.                                               amendments, all written statements                     in Items I, II, and III below, which Items
                                                       17 15 U.S.C. 78s(b)(3)(A).
                                                                                                            with respect to the proposed rule                      have been prepared by the Exchange.
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                                                       18 17 CFR 240.19b–4(f)(6). As required under Rule
                                                                                                            change that are filed with the                         The Commission is publishing this
                                                    19b-4(f)(6)(iii), the Exchange provided the
                                                    Commission with written notice of its intent to file    Commission, and all written                            notice to solicit comments on the
                                                    the proposed rule change, along with a brief            communications relating to the                         proposed rule change from interested
                                                    description and the text of the proposed rule                                                                  persons.
                                                    change, at least five business days prior to the date      21 For purposes only of waiving the 30-day
                                                    of filing of the proposed rule change, or such          operative delay, the Commission has also
                                                    shorter time as designated by the Commission.           considered the proposed rule’s impact on
                                                                                                                                                                     22 17 CFR 200.30–3(a)(12).
                                                       19 17 CFR 240.19b–4(f)(6).                                                                                    1 15 U.S.C. 78s(b)(1).
                                                                                                            efficiency, competition, and capital formation. See
                                                       20 17 CFR 240.19b–4(f)(6)(iii).                      15 U.S.C. 78c(f).                                        2 17 CFR 240.19b–4.




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Document Created: 2018-02-02 12:40:07
Document Modified: 2018-02-02 12:40:07
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 Citation81 FR 4689 

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