[Federal Register Volume 89, Number 50 (Wednesday, March 13, 2024)]
[Notices]
[Pages 18466-18468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05253]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99689; File No. SR-NYSE-2024-12]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Establish the NYSE Aggregated Lite Market Data Feed

March 7, 2024.
    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 27, 2024, New York Stock Exchange LLC (``NYSE'' or the 
``Exchange'') 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 to establish the NYSE Aggregated Lite (``NYSE 
Agg Lite'') market data feed. 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.

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 Agg Lite market data 
feed. The NYSE Agg Lite is a NYSE-only frequency-based depth of book 
market data feed of the NYSE's limit order book for up to ten (10) 
price levels on both the bid and offer sides of the order book for 
securities traded on the Exchange and for which the Exchange reports 
quotes and trades under the Consolidated Tape Association (``CTA'') 
Plan or the Nasdaq/UTP Plan. NYSE Agg Lite would be a compilation of 
limit order data that the Exchange would provide to vendors and 
subscribers. As proposed, the NYSE Agg Lite data feed would be updated 
no less frequently than once per second. The NYSE Agg Lite would 
include depth of book order data as well as security status messages. 
The security status message would inform subscribers of changes in the 
status of a specific security, such as trading halts, short sale 
restriction, etc. In addition, the NYSE Agg Lite would also include 
order imbalance information prior to the opening and closing of 
trading.
    The Exchange proposes to offer NYSE Agg Lite after receiving 
requests from vendors and subscribers that would like to receive the 
data described above in an integrated fashion at a pre-defined 
publication interval, in this case updates no less than once per 
second. An aggregated data feed may provide greater efficiencies and 
reduce errors for vendors and subscribers that currently choose to 
integrate the above data into a single offering after receiving it from 
the Exchange through existing products and adjust the publication 
frequency based on a subscriber's needs. The Exchange believes that 
providing vendors and subscribers with the option to subscribe to a 
market data product that integrates a subset of data from existing 
products and where such aggregated data is published at a pre-defined 
interval, thus lowering bandwidth, infrastructure and operational 
requirements, would allow vendors and subscribers to choose the best 
solution for their specific business needs. The Exchange notes that 
publishing only the top ten price levels on both the bid and offer 
sides of the order book where such data is communicated to subscribers 
at a pre-defined interval would reduce the overall volume of messages 
required to be consumed by subscribers when compared to a full order-
by-order data feed or a full depth of book data feed. Providing data in 
this format and publication frequency would make NYSE Agg Lite more 
easily consumable by vendors and subscribers, especially for display 
purposes.
    The Exchange proposes to offer NYSE Agg Lite 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 NYSE 
Agg Lite through the ICE Global Network (``IGN''), through which all 
other users and members access the Exchange's trading and execution 
systems and other proprietary market data products.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) \4\ of the Act (``Act''), in general, and furthers 
the objectives of section 6(b)(5) \5\ 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 NYSE Agg 
Lite to those interested in receiving it.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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 subscribers. The proposed rule 
change would benefit investors by facilitating their prompt access to 
the frequency-

[[Page 18467]]

based depth of book information contained in the NYSE Agg Lite market 
data feed.
    The Exchange also believes that the proposed rule change is 
consistent with section 11(A) of the Act \6\ in that it supports (i) 
fair competition among brokers and dealers, among exchange markets, and 
between exchange markets and markets other than exchange markets and 
(ii) the availability of information with respect to quotations for and 
transactions in securities to brokers, dealers, and investors. 
Furthermore, the proposed rule change is consistent with Rule 603 of 
Regulation NMS,\7\ which provides that any national securities exchange 
that distributes information with respect to quotations for or 
transactions in an NMS stock do so on terms that are not unreasonably 
discriminatory. The NYSE Agg Lite market data feed would be accessed 
and subscribed to on a voluntary basis, in that neither the Exchange 
nor market data vendors are required by any rule or regulation to make 
this data available. Accordingly, vendors and subscribers can 
discontinue their use at any time and for any reason.
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    \6\ 15 U.S.C. 78k-1.
    \7\ See 17 CFR 242.603.
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    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 NYSE Agg Lite 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.\8\
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    \8\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005) (Regulation NMS Adopting 
Release).

    In addition, NYSE Agg Lite removes impediments to and perfects the 
mechanism of a free and open market and a national market system by 
providing investors with alternative market data and would compete with 
similar market data products currently offered by the four U.S. 
equities exchanges operated by Cboe Exchange, Inc.--Cboe BZX Exchange, 
Inc. (``BZX''), Cboe BYX Exchange, Inc. (``BYX''), Cboe EDGA Exchange, 
Inc. (``EDGA''), and Cboe EDGX Exchange, Inc. (``EDGX''), each of which 
offers a market data product called BZX Summary Depth, BYX Summary 
Depth, EDGA Summary Depth and EDGX Summary Depth, respectively 
(collectively, the ``Cboe Summary Depth'').\9\ Similar to Cboe Summary 
Depth, NYSE Agg Lite can be utilized by vendors and subscribers to 
quickly access and distribute aggregated order book data. As noted 
above, NYSE Agg Lite, similar to Cboe Summary Depth, would provide 
aggregated depth per security, including the bid, ask and share 
quantity for orders received by NYSE, except unlike Cboe Summary Depth, 
which provides aggregated depth per security for up to five price 
levels, NYSE Agg Lite would provide aggregated depth per security for 
up to ten price levels on both the bid and offer sides of the NYSE 
limit order book. The proposed market data product is also similar to 
the NYSE Integrated Feed,\10\ and Nasdaq TotalView.\11\
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    \9\ See BZX Rule 11.22(m) BZX Summary Depth; BYX Rule 11.22(k) 
BYX Summary Depth; EDGA Rule 13.8(f) EDGA Summary Depth; and EDGX 
Rule 13.8(f) EDGX Summary Depth. The Cboe Summary Depth offered by 
BZX, BYX, EDGA and EDGX are each a data feed that offers aggregated 
two-sided quotations for all displayed orders for up to five (5) 
price levels and contains the individual last sale information, 
market status, trading status and trade break messages.
    \10\ The NYSE Integrated Feed provides a real-time market data 
in a unified view of events, in sequence, as they appear on the NYSE 
matching engine. The NYSE Integrated Feed includes depth of book 
order data, last sale data, and opening and closing imbalance data, 
as well as security status updates (e.g., trade corrections and 
trading halts) and stock summary messages. See also Securities 
Exchange Act Release No. 74128 (January 23, 2015), 80 FR 4951 
(January 29, 2015) (SR-NYSE-2015-03) (Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change Establishing the NYSE 
Integrated Feed Data Feed).
    \11\ Nasdaq TotalView displays the full order book depth on 
Nasdaq, including every single quote and order at every price level 
in Nasdaq-, NYSE-, NYSE American- and regional-listed securities on 
Nasdaq. See https://www.nasdaq.com/solutions/nasdaq-totalview?_bt=659478569450&_bk=totalview&_bm=b&_bn=g&_bg=144616828050&utm_term=totalview&utm_campaign=&utm_source=google&utm_medium=ppc&gclid=EAIaIQobChMIsZqiorTS_wIV2Y5bCh2xxQdUEAAYASAAEgKlyfD_BwE.
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    The Exchange notes that the existence of alternatives to the 
Exchange's proposed 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 Agg Lite market data 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 data feed would be available 
to all vendors and subscribers through both the LCN and IGN.

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

    In accordance with section 6(b)(8) of the Act,\12\ 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 Agg Lite will enhance 
competition. The NYSE Agg Lite will foster competition by providing an 
alternative to similar products offered by other exchanges, including 
the Cboe Summary Depth.\13\ The NYSE Agg Lite market data feed would 
provide investors with a new option for receiving market data, which 
was a primary goal of the market data amendments adopted by Regulation 
NMS.\14\ Thus, the Exchange believes the proposed rule change is 
necessary to permit fair competition among national securities 
exchanges.
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    \12\ 15 U.S.C. 78f(b)(8).
    \13\ See supra, note 9.
    \14\ See supra, note 8, at 37503.
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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 \15\ and Rule 19b-4(f)(6) thereunder.\16\ 
Because the proposed rule change does not: (i) significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on

[[Page 18468]]

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.\17\
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    \15\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give 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. 
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) \18\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \18\ 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 (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-NYSE-2024-12 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-2024-12. 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 (https://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 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to file number SR-NYSE-2024-12 and should be 
submitted on or before April 3, 2024.
    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-05253 Filed 3-12-24; 8:45 am]
BILLING CODE 8011-01-P