[Federal Register Volume 79, Number 226 (Monday, November 24, 2014)]
[Notices]
[Pages 69961-69963]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27698]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73620; File No. SR-NYSEMKT-2014-96]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change to the NYSE MKT LLC 
Equities Proprietary Market Data Fee Schedule (``Market Data Fee 
Schedule'') Regarding Non-Display Use Fees

November 18, 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 November 7, 2014, NYSE MKT LLC (the ``Exchange'' or 
``NYSE MKT'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III 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 Change to the NYSE MKT LLC Equities 
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 MKT OpenBook, NYSE MKT Trades, 
NYSE MKT BBO and NYSE MKT 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 MKT OpenBook, NYSE MKT Trades, and NYSE MKT BBO and added 
fees for non-display use of NYSE MKT 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 is on its own behalf as

[[Page 69962]]

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. 72020 (September 9, 
2014), 79 FR 55040 (September 15, 2014) (SR-NYSEMKT-2014-72) (``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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\ 
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,\11\ the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6) 
thereunder.\13\
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ The Exchange has satisfied this requirement.
    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\15\ the Commission 
may 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 delayed operative date 
so that the proposed rule change may become effective and operative 
upon filing with the Commission pursuant to Section 19(b)(3)(A) of the 
Act \16\ and Rule 19b-4(f)(6) \17\ thereunder. The Commission believes 
that the proposal raises no novel issues and 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. Based on the foregoing, the 
Commission has determined to waive the 30-day operative date so that 
the proposal may take effect upon filing.\18\
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    \14\ Id.
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 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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    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-NYSEMKT-2014-96 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-NYSEMKT-2014-96. 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

[[Page 69963]]

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 the filing will also be available for inspection 
and copying 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-
NYSEMKT-2014-96 and should be submitted on or before December 15, 2014.

    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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-27698 Filed 11-21-14; 8:45 am]
BILLING CODE 8011-01-P