[Federal Register Volume 80, Number 19 (Thursday, January 29, 2015)]
[Notices]
[Pages 4951-4953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-01647]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74128; File No. SR-NYSE-2015-03]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Establishing the NYSE Integrated Feed Data Feed
January 23, 2015.
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 21, 2015, New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') 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 Integrated Feed (``NYSE
Integrated Feed'') data feed. 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.
[[Page 4952]]
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 establish the NYSE Integrated Feed. The
NYSE Integrated Feed would provide real-time market data in a unified
view of events, in sequence, as they appear on the NYSE matching
engines. The NYSE Integrated Feed would include depth of book order
data, last sale data, and opening and closing imbalance data. The NYSE
Integrated Feed would also include security status updates (e.g., trade
corrections and trading halts) and stock summary messages. The stock
summary message updates every minute and includes NYSE's opening price,
high price, low price, closing price, and cumulative volume for the
security. The NYSE Integrated Feed would include information currently
available from three existing NYSE real-time market data feeds: NYSE
OpenBook,\4\ which provides a compilation of all limit orders resident
in the NYSE limit order book; NYSE Trades,\5\ which provides NYSE last
sale information on a real-time basis; and NYSE Order Imbalances,\6\
which publishes order imbalance information prior to the opening and
closing of trading.\7\
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\4\ See Securities Exchange Act Release Nos. 44962 (Oct. 15,
2001), 66 FR 554562 (Oct. 29, 2001) (SR-NYSE-2001-42); 54594 (Oct.
6, 2006), 71 FR 61819 (Oct. 19, 2006) (SR-NYSE-2006-81); 56384 (Aug.
30, 2007), 72 FR 53271 (SR-NYSE-2007-80).
\5\ See Securities Exchange Act Release Nos. 59290 (Jan. 23,
2009), 74 FR 5707 (Jan. 30, 2009) (SR-NYSE-2009-05); 59606 (Mar. 19,
2009), 74 FR 13293 (Mar. 26, 2009) (SR-NYSE-2009-04).
\6\ See Securities Exchange Act Release Nos. 59543 (March 9,
2009), 74 FR 11159 (March 16, 2009) (SR-NYSE-2008-132); 60153 (June
19, 2009), 74 FR 30656 (June 26, 2009) (SR-NYSE-2009-49).
\7\ Neither this filing nor the later filing establishing fees
for the NYSE Integrated Feed will have any effect on the filings for
NYSE Openbook, NYSE Trades, or NYSE Order Imbalances.
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The Exchange proposes to offer the NYSE Integrated Feed through the
Exchange's Liquidity Center Network (``LCN''), a local area network in
the Exchange's Mahwah, New Jersey data center that is available to
users of the Exchange's co-location services. The Exchange also would
offer the NYSE Integrated Feed 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.
Offering an integrated product addresses requests received from
vendors and subscribers that would like to receive the data described
above in an integrated fashion. An integrated data feed would provide
greater efficiencies and reduce errors for vendors and subscribers that
currently choose to integrate the data after receiving it from the
Exchange. The Exchange believes that providing vendors and subscribers
with the option of a market data product that both integrates existing
products and includes additional market data would allow vendors and
subscribers to choose the best solution for their specific businesses.
The Exchange will file a separate rule filing to establish the fees
for the NYSE Integrated Feed and will announce the date that the NYSE
Integrated Feed will be available through an NYSE Market Data Notice.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \8\ of the Act, in general, and furthers the
objectives of Section 6(b)(5) \9\ 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
Integrated Feed to those interested in receiving it.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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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 Integrated Feed.
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 Integrated Feed 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.\10\
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\10\ 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 real-time consolidated data, free
delayed consolidated data, and proprietary data from other sources, as
well as the continued availability of the Exchange's separate data
feeds, ensures that the Exchange is not unreasonably discriminatory
because vendors and subscribers can elect these alternatives as their
individual business cases warrant.
The NYSE Integrated Feed 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 the LCN and
SFTI.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\11\ 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 Integrated Feed will enhance
competition. The NYSE Integrated Feed will foster competition by
providing an alternative to similar products offered by other
exchanges, including the NYSE Arca Integrated
[[Page 4953]]
Feed,\12\ offered by the Exchange's affiliate, NYSE Arca, Inc. (``NYSE
Arca''), Nasdaq TotalView-Itch,\13\ offered by The Nasdaq Stock Market,
Inc., and BATS Multicast Pitch,\14\ offered by BATS Global Markets.
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.\15\
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\11\ 15 U.S.C. 78f(b)(8).
\12\ See NYSE Arca Integrated Feed, http://www.nyxdata.com/page/1084 (last visited January 5, 2015)(data feed that provides a
unified view of events, in sequence as they appear on the NYSE Arca
matching engine, including depth of book, trades, order imbalance
data, and security status messages).
\13\ See Nasdaq TotalView-ITCH, http://www.nasdaqtrader.com/Trader.aspx?id=Totalview2 (last visited January 5, 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).
\14\ See BATS Multicast PITCH, http://www.batstrading.com/market_data/products/ (last visited January 5, 2015)(real-time depth
of book quotations and execution information).
\15\ See Regulation NMS Adopting Release, supra, at 37503.
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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 \16\ and Rule 19b-4(f)(6) thereunder.\17\
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, provided that the self-regulatory
organization has given the Commission written notice of its intent to
file 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,\18\ 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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\16\ 15 U.S.C. 78s(b)(3)(A)(iii).
\17\ 17 CFR 240.19b-4(f)(6).
\18\ The Exchange has satisfied this requirement.
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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) \19\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\19\ 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-2015-03 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-2015-03. 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 Section, 100 F Street
NE., Washington, DC 20549-1090, on official business days between the
hours of 10:00 a.m. and 3:00 p.m. Copies of the filing will also be
available for Web site viewing and printing at the NYSE's principal
office and on its Internet Web site at www.nyse.com. 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-2015-03 and should be
submitted on or before February 19, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-01647 Filed 1-28-15; 8:45 am]
BILLING CODE 8011-01-P