[Federal Register Volume 84, Number 41 (Friday, March 1, 2019)]
[Notices]
[Pages 7156-7159]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03624]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85186; File No. SR-NYSE-2019-06]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Enhance the Content of the NYSE Trades Market Data Product Offering

February 25, 2019.
    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 February 13, 2019, New York Stock Exchange LLC (``NYSE'' or the 
``Exchange'') 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 Exchange. 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 enhance the content of the NYSE Trades 
market data product offering. The Exchange does not proposes [sic] to 
amend the fees related to NYSE Trades. The

[[Page 7157]]

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.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to enhance the content of the NYSE Trades 
market data feed product offering. The Exchange does not propose to 
amend the fees for the NYSE Trades feed.
    NYSE Trades is an NYSE-only last-sale market data feed. NYSE Trades 
currently allows vendors, broker-dealers and others to make available 
on a real-time basis the same last sale information that the Exchange 
reports under the Consolidated Tape Association (``CTA'') Plan and the 
UTP Plan for inclusion in the their respective consolidated data 
streams. Specifically, the NYSE Trades feed includes, for each security 
traded on the Exchange, the real-time last sale price, time and size 
information and a stock summary message. The stock summary message 
updates every minute and includes NYSE's opening price, high price, low 
price, closing price, and cumulative volume for the security.\4\
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    \4\ See Securities Exchange Act Release Nos. 59309 (January 28, 
2009), 74 FR 6073 (February 4, 2009) (SR-NYSE-2009-04), 69272 (April 
2, 2013), 78 FR 20983 (April 8, 2013) (SR-NYSE-2013-23), 70066 (July 
30, 2013), 78 FR 47474 (August 5, 2013) (SR-NYSE-2013-53), and 76599 
(December 9, 2015), 80 FR 77676 (December 15, 2015) (SR-NYSE-2015-
65).
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    The Exchange proposes to enhance the content of the NYSE Trades 
feed by including information for trades reported to the FINRA/NYSE 
Trade Reporting Facility (``TRF''). The FINRA/NYSE TRF data 
disseminated via the NYSE Trades feed would include the same real-time 
last sale price, time and size information for each trade reported to 
the FINRA/NYSE TRF that the FINRA/NYSE TRF reports under the CTA Plan 
and UTP Plan for inclusion in their respective consolidated data 
streams.\5\ The FINRA/NYSE TRF data would also identify whether the 
trade was reported to the TRF on a T+1 basis. Unlike for securities 
traded on the Exchange, the FINRA/NYSE TRF data would not include a 
stock summary message, which relates to exchange-specific activity 
only. FINRA/NYSE TRF trades would clearly be denoted as such in the 
NYSE Trades feed to ensure that they are not mistaken for trades 
executed on the Exchange.
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    \5\ The Exchange would make FINRA/NYSE TRF data available 
through its NYSE Trades Feed no earlier than it makes that 
information available to the responsible securities information 
processor.
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    With this proposed rule change, FINRA/NYSE TRF data disseminated 
via the NYSE Trades feed would also be included as part of the NYSE BQT 
data feed.\6\ The NYSE BQT data feed provides a unified view of best 
bid and offer (``BBO'') and last sale information for the Exchange and 
its affiliates, NYSE Arca, Inc. (``NYSE Arca''), NYSE National, Inc. 
(``NYSE National''), and NYSE American LLC (``NYSE American'') and 
consists of data elements from eight existing market data feeds: NYSE 
Trades, NYSE BBO,\7\ NYSE Arca Trades,\8\ NYSE Arca BBO,\9\ NYSE 
National BBO,\10\ NYSE National Trades,\11\ NYSE American Trades \12\ 
and NYSE American BBO.\13\ The NYSE BQT data feed would, therefore, 
include the FINRA/NYSE TRF data as part of the data it receives via the 
NYSE Trades market data feed. The Exchange does not propose to amend 
the fees for the NYSE BQT data feed.
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    \6\ See Securities Exchange Act Release Nos. 73553 (November 6, 
2014), 79 FR 67491 (November 13, 2014) (SR-NYSE-2014-40) (Notice of 
Amendment No. 1 and Order Granting Accelerated Approval to a 
Proposed Rule Change, as Modified by Amendment No. 1, To Establish 
the NYSE Best Quote and Trades Data Feed); and 83359 (June 1, 2018), 
83 FR 26507 (June 7, 2018) (SR-NYSE-2018-22).
    \7\ See Securities Exchange Act Release No. 62181 (May 26, 
2010), 75 FR 31488 (June 3, 2010) (SR-NYSE-2010-30).
    \8\ 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).
    \9\ See Securities Exchange Act Release No. 62188 (May 27, 
2010), 75 FR 31484 (June 3, 2010) (SR-NYSEArca-2010-23).
    \10\ See Securities Exchange Act Release No. 83350 (May 31, 
2018), 83 FR 26335 (June 6, 2018) (SR-NYSENat-2018-09).
    \11\ Id.
    \12\ See Securities Exchange Act Release No. 62187 (May 27, 
2010), 75 FR 31500 (June 3, 2010) (SR-NYSEAmex-2010-35).
    \13\ See Securities Exchange Act Release No. 62187 (May 27, 
2010), 75 FR 31500 (June 3, 2010) (SR-NYSEAmex-2010-35).
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    The Exchange proposes to implement the proposed rule change on 
April 29, 2019.\14\
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    \14\ The implementation of this proposed rule change is 
contingent on FINRA filing a proposed rule change with the 
Commission to amend its rules to account for the dissemination of 
FINRA/NYSE TRF data via the NYSE Trades and BQT data feeds.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \15\ of 
the Act, in general, and furthers the objectives of Section 6(b)(5) 
\16\ 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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    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the proposal would facilitate transactions in 
securities, remove impediments to and perfect the mechanism of a free 
and open market and a national market system by providing market 
participants an additional means to access information about 
transactions reported to the FINRA/NYSE TRF. The proposal would improve 
the content included in the NYSE Trades feed and provide investors with 
an additional option for accessing information that may help to inform 
their trading decisions. The inclusion of FINRA/NYSE TRF data in the 
NYSE Trades feed is also consistent with the content of at least two 
data feeds offered by the NASDAQ Stock Market LLC (``NASDAQ''), both of 
which similarly include last sale information for trades reported to 
the FINRA/NASDAQ TRF.\17\
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    \17\ See NASDAQ Rule 7047(a)(1) (stating that NASDAQ Basic 
``shall contain NASDAQ's best bid and offer and last sale for 
NASDAQ-listed stocks from NASDAQ and the FINRA/NASDAQ TRF''). See 
also NASDAQ Rule 7039(a) (stating that ``NASDAQ Last Sale comprises 
two proprietary data feeds containing real-time last sale 
Information for trades executed on NASDAQ or reported to the FINRA/
NASDAQ Trade Reporting Facility'').
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    In adopting Regulation NMS, the Commission granted self-regulatory 
organizations 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

[[Page 7158]]

provision of market data. The Exchange believes that the data product 
modification proposed herein, the inclusion of trades reported to the 
FINRA/NYSE TRF, is precisely the sort of market data product 
enhancement that the Commission envisioned when it adopted Regulation 
NMS. The Commission concluded that Regulation NMS--by lessening 
regulation of the market in proprietary data--would itself further the 
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Act's goals of facilitating efficiency and competition:

    [E]fficiency 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.\18\
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    \18\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005) (File No. S7-10-04).

    By removing ``unnecessary regulatory restrictions'' on the ability 
of exchanges to sell their own data, Regulation NMS advanced the goals 
of the Act and the principles reflected in its legislative history.
    The Exchange further notes that the existence of alternatives to 
the Exchange's products, including real-time consolidated data, free 
delayed consolidated data, and proprietary data from other sources, 
such as from NASDAQ,\19\ ensures that the Exchange is not unreasonably 
discriminatory because vendors and subscribers can elect these 
alternatives.
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    \19\ See supra note 17.
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    Lastly, the proposal would not permit unfair discrimination because 
the enhanced product would be available to all of the Exchange's 
vendors and customers on an equivalent basis with no change in price.

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. Rather, the proposal would 
enhance competition by enabling the Exchange to better compete with 
NASDAQ, which offers similar products that include data for trades 
reported to the FINRA/NASDAQ TRF.\20\
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    \20\ Id.
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    The market for proprietary data products is currently competitive 
and inherently contestable because there is fierce competition for the 
inputs necessary to the creation of proprietary data. Numerous 
exchanges compete with each other for listings, trades, and market data 
itself, providing virtually limitless opportunities for entrepreneurs 
who wish to produce and distribute their own market data. This 
proprietary data is produced by each individual exchange, as well as 
other entities (such as internalizing broker-dealers and various forms 
of alternative trading systems, including dark pools and electronic 
communication networks), in a vigorously competitive market. It is 
common for market participants to further and exploit this competition 
by sending their order flow and transaction reports to multiple 
markets, rather than providing them all to a single market.

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 \21\ and Rule 19b-4(f)(6) thereunder.\22\ 
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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    \21\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \22\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \23\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\24\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \23\ 17 CFR 240.19b-4(f)(6).
    \24\ 17 CFR 240.19b-4(f)(6)(iii).
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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) \25\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \25\ 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-NYSE-2019-06 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-NYSE-2019-06. 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 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

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submissions should refer to File Number SR-NYSE-2019-06 and should be 
submitted on or before March 22, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\26\
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    \26\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-03624 Filed 2-28-19; 8:45 am]
 BILLING CODE 8011-01-P