[Federal Register Volume 89, Number 50 (Wednesday, March 13, 2024)]
[Notices]
[Pages 18468-18470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05255]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99691; File No. SR-NYSECHX-2024-08]


Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Establish 
the NYSE Chicago 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, the NYSE Chicago, Inc. (``NYSE Chicago'' 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 Chicago Aggregated Lite 
(``NYSE Chicago 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 Chicago Agg Lite market 
data feed. The NYSE Chicago Agg Lite is a NYSE Chicago-only frequency-
based depth of book market data feed of the NYSE Chicago's limit order 
book for up to ten (10) price levels 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 Chicago Agg Lite would be a compilation of limit order data that 
the Exchange would provide to vendors and subscribers. As proposed, the 
NYSE Chicago Agg Lite data feed would be updated no less frequently 
than once per second. The NYSE Chicago 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.
    The Exchange proposes to offer NYSE Chicago 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

[[Page 18469]]

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 Chicago Agg Lite more easily consumable by vendors and 
subscribers, especially for display purposes.
    The Exchange proposes to offer NYSE Chicago 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 Chicago 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.
    The Exchange will file a separate rule filing to establish fees for 
NYSE Chicago Agg Lite. The Exchange will announce the implementation 
date of this proposed rule change by Trader Update, which, subject to 
the effectiveness of this proposed rule change, will be no later than 
the second quarter of 2024.
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 
Chicago 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-based depth of book information contained in the NYSE 
Chicago 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 Chicago 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 Chicago 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 Chicago 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 Chicago Agg Lite can be utilized by vendors 
and subscribers to quickly access and distribute aggregated order book 
data. As noted above, NYSE Chicago 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 Chicago, except 
unlike Cboe Summary Depth, which provides aggregated depth per security 
for up to five price levels, NYSE Chicago Agg Lite would provide 
aggregated depth per security for up to ten price levels on both the 
bid and offer

[[Page 18470]]

sides of the NYSE Chicago limit order book. The proposed market data 
product is also similar to the NYSE Chicago 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 Chicago Integrated Feed provides a real-time 
market data in a unified view of events, in sequence, as they appear 
on the NYSE Chicago matching engine. The NYSE Chicago Integrated 
Feed includes top of book and depth of book order data, last sale 
data, and security status updates (e.g., trade corrections and 
trading halts) and stock summary messages. See also Securities 
Exchange Act Release No. 87389 (October 23, 2019), 84 FR 57904 
(October 29, 2019) (SR-NYSECHX-2019-15) (Notice of Filing and 
Immediate Effectiveness of a Proposed Rule Change To Establish the 
NYSE Chicago BBO, NYSE Chicago Trades and NYSE Chicago Integrated 
Feed Market Data Feeds).
    \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 Chicago 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 Chicago Agg Lite will enhance 
competition. The NYSE Chicago Agg Lite will foster competition by 
providing an alternative to similar products offered by other 
exchanges, including the Cboe Summary Depth.\13\ The NYSE Chicago 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 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-NYSECHX-2024-08 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-NYSECHX-2024-08. 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-NYSECHX-2024-08 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. 2024-05255 Filed 3-12-24; 8:45 am]
BILLING CODE 8011-01-P