[Federal Register Volume 80, Number 19 (Thursday, January 29, 2015)]
[Notices]
[Pages 4956-4958]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-01646]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74127; File No. SR-NYSEMKT-2015-06]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Establishing the NYSE 
MKT 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, 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 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 MKT Integrated Feed 
(``NYSE MKT 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.

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 MKT Integrated Feed. 
The NYSE MKT Integrated Feed would provide real-time market data in a 
unified view of events, in sequence, as they appear on the NYSE MKT 
matching engines. The NYSE MKT Integrated Feed would include depth of 
book order data, last sale data, and opening and closing imbalance 
data. The NYSE MKT 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 MKT's opening price, high price, low price, closing price, and 
cumulative volume for the security. The NYSE MKT Integrated Feed would 
include information currently available from three existing NYSE MKT 
real-time market data feeds:

[[Page 4957]]

NYSE MKT OpenBook,\4\ which provides a compilation of all limit orders 
resident in the NYSE MKT limit order book; NYSE MKT Trades,\5\ which 
provides NYSE MKT last sale information on a real-time basis; and NYSE 
MKT 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 No. 60123 (June 17, 
2009), 74 FR 30192 (June 24, 2009) (SR-NYSEAmex-2009-28).
    \5\ See Securities Exchange Act Release No. 62187 (May 27, 
2010), 75 FR 31500 (June 3, 2010)(NYSEAmex-2010-35).
    \6\ See Securities Exchange Act Release Nos. 59743 (April 9, 
2009), 74 FR 17699 (April 16, 2009) (SR-NYSEAmex-2009-11); 60151 
(June 19, 2009), 74 FR 30653 (June 26, 2009)(SR-NYSEAmex-29).
    \7\ Neither this filing nor the later filing establishing fees 
for the NYSE MKT Integrated Feed will have any effect on the filings 
for NYSE MKT Openbook, NYSE MKT Trades, or NYSE MKT Order 
Imbalances.
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    The Exchange proposes to offer the NYSE MKT 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 MKT 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 MKT Integrated Feed and will announce the date that the 
NYSE MKT 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 
MKT 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 MKT 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 MKT 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 MKT 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 MKT Integrated Feed will enhance 
competition. The NYSE MKT Integrated Feed will foster competition by 
providing an alternative to similar products offered by other 
exchanges, including the NYSE Arca Integrated 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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[[Page 4958]]

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-NYSEMKT-2015-06 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-2015-06. 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 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-2015-06 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. 2015-01646 Filed 1-28-15; 8:45 am]
BILLING CODE 8011-01-P