[Federal Register Volume 83, Number 109 (Wednesday, June 6, 2018)]
[Notices]
[Pages 26332-26335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12110]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83350; File No. SR-NYSENAT-2018-09]


Self-Regulatory Organizations; NYSE National, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Establish 
the NYSE National BBO, NYSE National Trades and NYSE National 
Integrated Feed Market Data Feeds

May 31, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on May 18, 2018, NYSE National, Inc. (the ``Exchange'' or ``NYSE 
National'') 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to establish the NYSE National BBO (``NYSE 
National BBO''), NYSE National Trades (``NYSE National Trades'') and 
NYSE National Integrated Feed (``NYSE National Integrated Feed'') 
market data feeds. The proposed rule change is available on the 
Exchange's website 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.

[[Page 26333]]

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 NYSE National BBO, NYSE National 
Trades and NYSE National Integrated Feed (``NYSE National Market Data 
Feeds'').
NYSE National BBO
    NYSE National BBO is a NYSE National-only market data feed that 
provides vendors and subscribers on a real-time basis with the same 
best-bid-and-offer information that NYSE National reports under the 
Consolidated Quotation Plan (``CQ Plan'') and the Plan Governing the 
Collection, Consolidation, and Dissemination of Quotation and 
Transaction Information for Nasdaq-Listed Securities Traded on 
Exchanges on an Unlisted Trading Privilege Basis (``OTC UTP Plan''). 
NYSE National BBO would include the best bids and offers (``NYSE 
National BBO Information'') for all securities that are traded on the 
Exchange. NYSE National will make the NYSE National BBO available over 
a single data feed, regardless of the markets on which the securities 
are listed.
    NYSE National BBO would allow vendors, broker-dealers, and others 
(``NYSE National Vendors'') to consume and make available NYSE National 
BBO Information on a real-time basis. NYSE National Vendors may 
distribute the NYSE National BBO to both professional and non-
professional subscribers. The Exchange would make NYSE National BBO 
Information available through the NYSE National BBO data feed no 
earlier than it makes that information available to the processor under 
the CQ Plan or the OTC UTP Plan, as applicable.
NYSE National Trades
    NYSE National Trades is a NYSE National-only market data feed that 
provides vendors and subscribers on a real-time basis with the same 
last sale information that NYSE National reports under the Consolidated 
Tape Association Plan (``CTA Plan'') and the OTC UTP Plan for inclusion 
in the consolidated feeds. NYSE National Trades would include the real-
time last sale price, time and size information (``NYSE National Last 
Sale Information'') for all securities that are traded on the Exchange. 
NYSE National will make the NYSE National Trades available over a 
single data feed, regardless of the markets on which the securities are 
listed.
    NYSE National Trades would allow NYSE National Vendors to consume 
and make available NYSE National Last Sale Information on a real-time 
basis. NYSE National Vendors may distribute the NYSE National Trades to 
both professional and non-professional subscribers. The Exchange would 
make NYSE National Last Sale Information available through the NYSE 
National Trades data feed no earlier than it makes that information 
available to the processor under the CTA Plan or the OTC UTP Plan, as 
applicable. In addition to the information that the Exchange provides 
to the processor, NYSE National Last Sale Information will also include 
a unique sequence number that the Exchange assigns to each trade and 
that allows an investor to track the context of a trade through other 
Exchange market data products.
NYSE National Integrated Feed
    NYSE National Integrated Feed is a NYSE National-only market data 
feed that would provide vendors and subscribers on a real-time basis 
with a unified view of events, in sequence, as they appear on the NYSE 
National matching engines. The NYSE National Integrated Feed would 
include depth of book order data, last sale data, and security status 
updates (e.g., trade corrections and trading halts) and stock summary 
messages. The stock summary message would update every minute and would 
include NYSE National's opening price, high price, low price, closing 
price, and cumulative volume for a security. The NYSE National 
Integrated Feed would include information available to vendors and 
subscribers of NYSE National Trades, a service that would make 
available NYSE National last sale information on a real-time basis.
    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 proposes to offer the NYSE National Market Data Feeds 
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 
would also offer the NYSE National Market Data Feeds through the 
Exchange's Secure Financial Transaction Infrastructure (``SFTI'') 
network, through which all other users and members access the 
Exchange's trading and execution systems and other proprietary market 
data products.
    At this time, the Exchange does not intend to charge any fees 
associated with the receipt of NYSE National BBO, NYSE National Trades 
or NYSE National Integrated Feed. The Exchange will submit a proposed 
rule change to the Commission should it determine to charge fees 
associated with the receipt of NYSE National BBO, NYSE National Trades 
or NYSE National Integrated Feed. The Exchange will announce the date 
that the NYSE National Market Data Feeds would be available through a 
NYSE National Market Data Notice.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act (``Act''),\3\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\4\ 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 
National Market Data Feeds to those interested in receiving it.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    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 National Market Data 
Feeds.
    In adopting Regulation NMS, the Commission granted self-regulatory 
organizations (``SROs'') and broker

[[Page 26334]]

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 National 
Market Data Feeds are precisely the sort of market data products 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.\5\
---------------------------------------------------------------------------

    \5\ 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 National Market Data Feeds 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 products 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,\6\ 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 National Market Data Feeds will 
enhance competition. For example, NYSE National BBO would provide an 
alternative to NYSE Arca BBO,\7\ offered by the Exchange's affiliate, 
NYSE Arca, Inc. (``NYSE Arca''), Nasdaq Basic,\8\ offered by The Nasdaq 
Stock Market, Inc. (``Nasdaq''), and Cboe Top,\9\ offered by Cboe 
Global Markets, Inc. (``Cboe''). Additionally, NYSE National Trades 
would provide an alternative to NYSE Arca Trades,\10\ offered by NYSE 
Arca, Nasdaq Basic,\11\ offered by Nasdaq, and Cboe Last Sale,\12\ 
offered by Cboe. Finally, NYSE National Integrated Feed would provide 
an alternative to NYSE Arca Integrated Feed,\13\ offered by NYSE Arca, 
Nasdaq TotalView-Itch,\14\ offered by Nasdaq, and Cboe Depth,\15\ 
offered by Cboe.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(8).
    \7\ See NYSE Arca BBO, https://www.nyse.com/market-data/real-time/bbo (provides best bid/ask quotations for all traded 
securities).
    \8\ See Nasdaq Basic, http://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic (provides Best Bid and Offer and Last 
Sale Information).
    \9\ See Cboe Top, https://markets.cboe.com/us/equities/market_data_products/ (provides real-time top-of-book quotations, 
matched trade price, volume and execution time).
    \10\ See NYSE Arca Trades, https://www.nyse.com/market-data/real-time/trades (provides real-time Last Sale information for all 
traded securities).
    \11\ See Nasdaq Basic, http://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic (provides Best Bid and Offer and Last 
Sale Information).
    \12\ See Cboe Last Sale, https://markets.cboe.com/us/equities/market_data_products/. (provides real-time matched trade price, 
volume and execution time).
    \13\ See NYSE Arca Integrated Feed, https://www.nyse.com/market-data/real-time/integrated-feed (provides a comprehensive order-by-
order view of events in the equities market, including depth of 
book, trades, order imbalance data, and security status messages).
    \14\ See Nasdaq TotalView-ITCH, http://www.nasdaqtrader.com/Trader.aspx?id=Totalview2 (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).
    \15\ See Cboe Depth, https://markets.cboe.com/us/equities/market_data_products/ (provides real-time, depth-of-book quotations 
and execution information).
---------------------------------------------------------------------------

    The NYSE National Market Data Feeds provide investors with new 
options for receiving market data, which was a primary goal of the 
market data amendments

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 SRO has given the 
Commission written notice of its 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 the designated by the 
Commission, 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.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \17\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \18\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\19\ the Commission 
may 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 both the five day pre-filing requirement and 
the 30-day operative delay so that the proposal may become operative 
immediately upon filing. The Exchange stated its belief such waivers 
would be consistent with the protection of investors and the public 
interest because the waiver of the pre-filing requirement and the 
operative delay would allow the Exchange to provide the NYSE National 
Market Data Feeds immediately upon launch of NYSE National. The 
Commission grants the Exchange's request for waivers of the pre-filing 
requirement and the operative delay \20\ because the waivers would 
permit the Exchange to begin offering its proprietary market data 
products, which would be comparable to those offered by other 
exchanges, to interested market

[[Page 26335]]

participants concurrent with the re-launch of the Exchange.
---------------------------------------------------------------------------

    \18\ 17 CFR 240.19b-4(f)(6).
    \19\ 17 CFR 240.19b-4(f)(6)(iii).
    \20\ In considering the Exchange's request to waive the 
requirement of the 30-day operative delay, the Commission has 
considered, in addition to the protection of investors, the impact 
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    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) of the Act \21\ to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \21\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSENAT-2018-09 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-NYSENAT-2018-09. 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 website (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 website 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 also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSENAT-2018-09 and should be submitted 
on or before June 27, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
---------------------------------------------------------------------------

    \22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12110 Filed 6-5-18; 8:45 am]
BILLING CODE 8011-01-P