[Federal Register Volume 79, Number 218 (Wednesday, November 12, 2014)]
[Notices]
[Pages 67220-67222]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26688]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73528; File No. SR-NYSE-2014-58]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
the NYSE Proprietary Market Data Fee Schedule Regarding Non-Display Use
Fees
November 5, 2014.
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 October 29, 2014, 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 a change to the NYSE Proprietary Market Data
Fee Schedule (``Market Data Fee Schedule'') regarding non-display use
fees. 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 a change to the Market Data Fee Schedule
regarding non-display use fees for NYSE OpenBook, NYSE Trades, NYSE BBO
and NYSE Order Imbalances, the market data products to which non-
display use fees apply. Specifically, with respect to the three
categories of, and fees applicable to, market data recipients for non-
display use, the Exchange proposes to describe the three categories in
the Market Data Fee Schedule.
In September 2014, the Exchange revised the fees for non-display
use of NYSE OpenBook, NYSE Trades, and NYSE BBO and added fees for non-
display use of NYSE Order Imbalances.\4\ In the 2014 Filing, the
Exchange proposed certain changes to the categories of, and fees
applicable to, data recipients for non-display use. As set forth in the
2014 Filing: (i) Category 1 Fees apply when a data recipient's non-
display use of real-time market data
[[Page 67221]]
is on its own behalf as opposed to use on behalf of its clients; (ii)
Category 2 Fees apply when a data recipient's non-display use of real-
time market data is on behalf of its clients as opposed to use on its
own behalf; and (iii) Category 3 Fees apply when a data recipient's
non-display use of real-time market data is for the purpose of
internally matching buy and sell orders within an organization,
including matching customer orders on a data recipient's own behalf
and/or on behalf of its clients. The Market Data Fee Schedule currently
lists each category as Category 1, Category 2, and Category 3, without
further description.
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\4\ See Securities Exchange Act Release No. 72923 (August 26,
2014), 79 FR 52079 (September 2, 2014) (SR-NYSE-2014-43) (``2014
Filing'').
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The Exchange is proposing to amend the Market Data Fee Schedule to
add the descriptions of the three categories, as set forth above, as a
footnote to the Market Data Fee Schedule. Because there will now be
multiple footnotes to the Market Data Fee Schedule, the Exchange
proposes non-substantive edits to change the existing footnote
references from asterisks to numbers.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \5\ of the
Act, in general, and furthers the objectives of Section 6(b)(5) \6\ 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.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that adding the description of the three
categories of data recipients for non-display use to the Market Data
Fee Schedule will remove impediments to and help perfect a free and
open market by providing greater transparency for the Exchange's
customers regarding the category descriptions that have been previously
filed with the Commission and are applicable to the existing Market
Data Fee Schedule.\7\
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\7\ See supra n. 4.
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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 because the Exchange is
merely adding to the Market Data Fee Schedule information that has been
previously filed with the Commission.\8\
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\8\ See supra n. 4.
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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
Because the foregoing proposed rule 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 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,\9\ the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\9\ The Exchange has fulfilled this requirement.
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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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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A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\14\ the Commission
may 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 believes
that adding the description of the categories of market data recipients
for non-display use to the Market Data Fee Schedule is consistent with
the protection of investors and the public interest because it will
provide more transparency in the Exchange's Market Data Fee Schedule
regarding the existing definitions in that schedule. The Commission
agrees and has determined to waive the 30-day operative date so that
the proposal may take effect upon filing.\15\
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ For purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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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-2014-58 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-2014-58. 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.,
[[Page 67222]]
Washington, DC 20549, 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-2014-58 and should be submitted on
or before December 3, 2014.
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\16\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-26688 Filed 11-10-14; 8:45 am]
BILLING CODE 8011-01-P