[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