[Federal Register Volume 80, Number 221 (Tuesday, November 17, 2015)]
[Notices]
[Pages 71890-71892]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-29216]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76402; File No. SR-NYSEARCA-2015-103]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Making Certain 
Representations Relating to the NYSE Best Quote & Trades Data Feed

November 10, 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 October 29, 2015, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') 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 make certain representations relating to 
the NYSE Best Quote & Trades (NYSE BQT) 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The NYSE Best Quotes and Trades (``NYSE BQT'') data feed, a market 
data product offered by the New York Stock Exchange LLC (``NYSE''), 
provides best bid and offer (``BBO'') and last sale information for the 
Exchange and its affiliates, NYSE and NYSE MKT LLC (``NYSE MKT'').\4\ 
Specifically, the NYSE BQT data feed consists of certain data elements 
from six market data feeds--NYSE Trades, NYSE BBO, NYSE Arca Trades, 
NYSE Arca BBO, NYSE MKT Trades, and NYSE MKT BBO.\5\
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    \4\ See Securities Exchange Act Release No. 34-73553 (Nov. 6, 
2014), 79 FR 67491 (Nov. 13, 2014) (SR-NYSE-2014-40) (``NYSE BQT 
Approval Order'').
    \5\ These data feeds are offered pursuant to preexisting and 
effective rules and fees filed with the Securities and Exchange 
Commission (``Commission''). This filing does not affect those rules 
or the fees associated with these underlying data feeds or the 
ability for the NYSE Arca, the NYSE or NYSE MKT to amend the data 
feeds or fees associated with those data feeds pursuant to separate 
rule filings. For NYSE Arca Trades, see Securities Exchange Act 
Release Nos. 59289 (Jan. 23, 2009), 74 FR 5711 (Jan. 30, 2009) (SR-
NYSEArca-2009-06) and 59598 (Mar. 18, 2009), 74 FR 12919 (Mar. 25, 
2009) (SR-NYSEArca-2009-05). For NYSE Arca BBO, see Securities 
Exchange Act Release No. 62188 (May 27, 2010), 75 FR 31484 (June 3, 
2010) (SR-NYSEArca-2010-23). For NYSE Trades, see Securities 
Exchange Act Release Nos. 59290 (Jan. 23, 2009), 74 FR 5707 (Jan. 
30, 2009) (SR-NYSE-2009-05) and 59606 (Mar. 19, 2009), 74 FR 13293 
(Mar. 26, 2009) (SR-NYSE-2009-04). For NYSE BBO, see Securities 
Exchange Act Release No. 62181 (May 26, 2010), 75 FR 31488 (June 3, 
2010) (SR-NYSE-2010-30). For NYSE MKT Trades and NYSE MKT BBO, see 
Securities Exchange Act Release No. 62187 (May 27, 2010), 75 FR 
31500 (June 3, 2010) (SR-NYSEAmex-2010-35).
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    While NYSE Arca, NYSE and NYSE MKT are the exclusive distributors 
of their BBO and Trades feeds from which the data elements are taken to 
create the NYSE BQT data feed, the NYSE represented that it would not 
have any unfair advantage over competing vendors with respect to 
obtaining data from NYSE, NYSE Arca and NYSE MKT.\6\ The NYSE 
represented that it would not be the exclusive distributor of the 
aggregated and consolidated information that comprises the NYSE BQT 
data feed and that it designed the NYSE BQT data feed so that it would 
not have a competitive advantage over a competing vendor with respect 
to the speed of access to those six underlying data feeds. In 
recognition that NYSE Arca is the source of its own market data, NYSE 
Arca represents that it will continue to make available the individual 
underlying feeds, NYSE Arca Trades and NYSE Arca BBO, and that the 
source for these feeds for use by NYSE to create the NYSE BQT data feed 
is the same as the source available to other vendors.\7\
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    \6\ See supra note 4 at 67492.
    \7\ NYSE MKT is filing a similar proposal regarding the NYSE BQT 
data feed (SR-NYSEMKT-2015-92).
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    The Exchange notes that the proposed change is not otherwise 
intended to address any other issues, and the Exchange is not aware of 
any problems that member organizations or others would have in 
complying with the proposed rule change.
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

[[Page 71891]]

of the NYSE BQT data 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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    NYSE Arca is the source of its own market data, including the NYSE 
Arca market data that the NYSE includes in the NYSE BQT data feed. NYSE 
Arca represents that it will continue to make available the individual 
underlying NYSE Arca market data products, NYSE Arca Trades and NYSE 
Arca BBO, that are included in NYSE BQT, and that the source of the 
NYSE Arca market data the NYSE uses to create the NYSE BQT data feed is 
the same as the source available to other vendors. Thus, a vendor 
creating a product to compete with NYSE BQT could also obtain the six 
underlying data feeds in NYSE BQT and perform a similar aggregation and 
consolidation function to create the same data product with the same 
latency.
    The NYSE BQT data feed helps to protect a free and open market by 
providing vendors and subscribers with additional choices in receiving 
this type of market data, thus promoting competition and innovation.

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

    In accordance with Section 6(b)(8) of the Act,\10\ 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. As noted above, the NYSE BQT data feed 
represents aggregated and consolidated information of six existing 
market data feeds. Although NYSE Arca, the NYSE and NYSE MKT are the 
exclusive distributors of the six BBO and Trades feeds from which 
certain data elements are taken to create the NYSE BQT data feed, the 
NYSE may not be the exclusive distributor of the aggregated and 
consolidated information that comprises the NYSE BQT data feed. Any 
other market data recipient of the six BBO and Trades feeds would be 
able, if they chose, to create a data feed with the same information as 
the NYSE BQT data feed and distribute it to their clients on a level-
playing field with respect to latency and cost as compared to the 
NYSE's product.\11\
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    \10\ 78 U.S.C. 78f(b)(8).
    \11\ See NYSE BQT Approval Order, supra note 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 \12\ and Rule 19b-4(f)(6) thereunder.\13\ 
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, 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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    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \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, Rule 19b-4(f)(6)(iii) 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 asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative upon filing. The Exchange notes that the NYSE BQT 
data feed has been the subject of prior rule filings and believes that 
waiver of the 30-day operative delay will provide more transparency and 
consistency with respect to the description of the NYSE BQT data feed. 
Based on the foregoing, the Commission believes that the waiver of the 
operative delay is appropriate and is consistent with the protection of 
investors and the public interest.\15\ The Commission hereby grants the 
waiver and designates the proposal operative upon filing.
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    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ For purposes only of waiving the 30-day operative delay, 
the Commission has also 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 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) \16\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \16\ 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-NYSEARCA-2015-103 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-NYSEARCA-2015-103. 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, 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-NYSEARCA-2015-103 and should be

[[Page 71892]]

submitted on or before December 8, 2015.
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    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-29216 Filed 11-16-15; 8:45 am]
 BILLING CODE 8011-01-P