[Federal Register Volume 79, Number 218 (Wednesday, November 12, 2014)]
[Notices]
[Pages 67210-67212]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26689]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73529; File No. SR-NYSEARCA-2014-128]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Proposing To Amend 
NYSE Arca Equities Rule 7.44(j) To Delete Reference to the Exchange's 
Proprietary Data Feed When Disseminating the Retail Liquidity 
Identifier

November 5, 2014.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that, on October 28, 2014, NYSE Arca, Inc. (``Exchange'' or ``NYSE 
Arca'') filed with the Securities and Exchange Commission 
(``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 revise [sic] to amend NYSE Arca Equities 
Rule 7.44(j) to delete reference to the Exchange's proprietary 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.

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

1. Purpose
    The Exchange is proposing to amend NYSE Arca Equities Rule 7.44 
(``Rule 7.44''), which governs the Exchange's Retail Liquidity Program 
(``Program'') and is currently operating as a pilot, to delete 
reference to the Exchange's proprietary data feed in Rule 7.44(j).
    Rule 7.44(j) currently provides, that ``[a]n identifier shall be 
disseminated through the Consolidated Quotation System, the UTP Quote 
Data Feed, and the Exchange's proprietary data feed when RPI interest 
priced at least $0.001 better than the PBB or PBO for a particular 
security is available in Exchange systems (`Retail Liquidity 
Identifier').'' When the Exchange implemented the Program, it filed a 
rule proposal that specified that in connection with the implementation 
of the Program, the Exchange would begin disseminating the Retail 
Liquidity Identifier referenced in Rule 7.44(j) through the 
Consolidated Quotation System and the UTP Quote Data Feed (the ``public 
data feeds''). However, because of the differing technology associating 
with disseminating data via the Exchange's proprietary data feed, the 
Exchange was not be able to disseminate the Retail Liquidity Identifier 
via the Exchange's proprietary data feed on the initial implementation 
date of the Program. Accordingly, the Exchange proposed a separate 
implementation date for disseminating the Retail Liquidity Identifier 
via the Exchange's proprietary data feed and would have announced that 
date via Trader Update.\4\
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    \4\ See Securities Exchange Act Release No. 71960 (April 17, 
2014), 79 FR 22746 (April 23, 2014) (SR-NYSEArca-2014-38).
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    Because the Exchange does not have technology currently available 
to disseminate the Retail Liquidity Identifier over the Exchange's 
proprietary data feed, the Exchange proposes to amend Rule 7.44(j) to 
delete the reference to the Exchange's proprietary data feed. If the 
Exchange at a later date has the technology to disseminate the Retail 
Liquidity Indicator over its proprietary data feed, the Exchange will 
file a separate rule

[[Page 67211]]

proposal pursuant to Rule 19(b)(1) of the Act \5\ to amend Rule 7.44(j) 
to add back the reference to the proprietary data feeds. The Exchange 
believes that deleting the reference to the proprietary data feed in 
Rule 7.44 provides transparency in Exchange rules regarding over what 
data feeds the Retail Liquidity Indicator is available.\6\
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    \5\ See 15 U.S.C. 78s(b)(1).
    \6\ The Exchange proposes a non-substantive change to Rule 
7.44(j) to clarify that the Exchange would disseminate a Retail 
Liquidity Indicator through the Consolidated Quotation System or UTP 
Quote Data Feed, as applicable, i.e., that Retail Liquidity 
Indicators for Tape B symbols would be disseminated over the 
Consolidated Quotation System and Retail Liquidity Indicators for 
Tape C symbols would be disseminated over UTP Quote Data Feed, 
consistent with the Regulation NMS plans governing the respective 
public data feeds.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\7\ in general, and furthers the objectives of Section 6(b)(5),\8\ 
in particular, in that it is designed to promote just and equitable 
principles of trade, 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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that deleting reference to the proprietary 
data feed in Rule 7.44(j) is consistent with the Act because the Retail 
Liquidity Identifier has been and will continue to be available via the 
public data feeds. The Exchange further believes that the proposed rule 
change would protect investors and the public interest because 
information about Retail Liquidity Identifiers has been and continues 
to be available via the public data feeds. Pending the availability of 
technology to support the dissemination of the Retail Liquidity 
Indicator over the proprietary data feed, the Exchange believes that it 
removes impediments to and perfects the mechanism of a free and open 
market to delete reference to the proprietary data feed in Rule 7.44(j) 
because it would provide transparency in Exchange rules regarding how 
the Retail Liquidity Indicator is disseminated.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange notes that the 
Retail Liquidity Identifier has been and will continue to be available 
via the public data feeds and therefore market participants will have 
access to information regarding the Retail Liquidity Identifiers.

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 foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) \10\ thereunder because 
the proposal does not: (i) significantly affect the protection of 
investors or the public interest; (ii) impose any significant burden on 
competition; and (iii) by its terms, 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.\11\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to 
give the Commission written notice of the Exchange's intent to file 
the proposed rule change, along with a brief description and text of 
the proposed rule change, at least five business days prior to the 
date of filing of the proposed rule change, or such shorter time as 
designated by the Commission. The Exchange has satisfied this 
requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally may 
not become operative prior to 30 days after the date of filing. 
However, Rule 19b-4(f)(6)(iii) \12\ 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 requested that the 
Commission waive the 30-day operative delay period. The Commission 
believes that waiver of the 30-day operative delay period is consistent 
with the protection of investors and the public interest. Specifically, 
the Commission believes that the proposal would provide clarity to the 
Exchange's rules and would not affect the dissemination of the Retail 
Liquidity Identifier. For these reasons, the Commission believes that 
waiving the 30-day operative delay is consistent with the protection of 
investors and the public interest, and designates the proposed rule 
change to be operative upon filing with the Commission.\13\
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    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of 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.\14\
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    \14\ 15 U.S.C. 78s(b)(3)(C).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml ); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEArca-2014-128 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2014-128. 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;

[[Page 67212]]

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-2014-128 and should be submitted on or before December 3, 
2014.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-26689 Filed 11-10-14; 8:45 am]
BILLING CODE 8011-01-P