[Federal Register Volume 90, Number 98 (Thursday, May 22, 2025)]
[Notices]
[Pages 21970-21973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-09179]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103053; File No. SR-NYSETEX-2025-10]
Self-Regulatory Organizations; NYSE Texas, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Establish the
NYSE Texas Order Imbalances Proprietary Market Data Product
May 16, 2025.
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 May 13, 2025, the NYSE Texas, Inc. (``NYSE Texas'' 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 Texas Order Imbalances
proprietary market data product. 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 Texas Order Imbalances
data feed as a separate, stand-alone market data product. The NYSE
Texas Order Imbalances product would be a real-time data feed of the
information that the Exchange would provide in advance of an auction.
The Exchange is establishing the NYSE Texas Order Imbalances
product in connection with the introduction of auctions on NYSE
Texas.\4\ NYSE Texas Order Imbalances would be a data feed of real-time
order imbalances that accumulate prior to the opening of trading on the
Exchange, prior to any re-opening auction after a halt, and prior to
the close of trading on the Exchange.\5\ The data feed would contain
aggregate information about orders that are subject to execution at the
market's opening or closing price, as the case may be, and would
represent issues that are likely to be of particular trading interest
at the opening or closing.
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\4\ See SR-NYSETEX-2025-08 (Proposed Rule Change to Adopt Rule
7.35 Regarding Auctions).
\5\ NYSE Texas order imbalance information is not currently
available through any of the Exchange's current data feeds as NYSE
Texas does not currently provide for the operation of auctions.
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NYSE Texas Rule 7.35(a)(4)(C) provides that the Exchange will
disseminate Auction Imbalance
[[Page 21971]]
Information via a proprietary data feed during the times specified in
the rule, and through this filing, the Exchange proposes to establish
the NYSE Texas Order Imbalances feed as the proprietary data feed to
which NYSE Texas Rule 7.35(a)(4)(C) refers.
NYSE Texas Rule 7.35(a)(4) defines Auction Imbalance Information as
the information disseminated by the Exchange for an auction. As set
forth in NYSE Texas Rule 7.35, Auction Imbalance information includes,
if applicable, the Total Imbalance, Market Imbalance, Indicative Match
Price and Matched Volume, each as defined in NYSE Texas Rule 7.35(a).
The Auction Imbalance Information would be disseminated on a time frame
specified in NYSE Texas Rule 7.35. The NYSE Texas Order Imbalances
market data product would provide Auction Imbalance Information with
respect to all symbols listed on the Exchange.
The Exchange proposes to offer this order imbalance information as
a stand-alone market data product in order to provide all market
participants with an opportunity to obtain information regarding
opening and closing imbalances on the Exchange. The Exchange believes
that the NYSE Texas Order Imbalances data feed would benefit market
participants by facilitating their prompt access to widespread order
imbalance information.
The Exchange proposes to offer the NYSE Texas Order Imbalances
product 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 also would offer the NYSE Texas Order Imbalances product
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 does not currently intend to charge a fee to subscribe
to NYSE Texas Order Imbalances. The Exchange will file a separate rule
filing to establish fees for NYSE Texas Order Imbalances if it
determines to adopt such fees. The Exchange will announce the date that
NYSE Texas Order Imbalances will be available through a Trader Update.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \6\ of the Act, in general, and furthers the
objectives of Section 6(b)(5) \7\ 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 the NYSE
Texas Order Imbalances market data product to those interested in
receiving it.
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\6\ 15 U.S.C. 78f(b).
\7\ 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 real-time information contained in the NYSE Texas Order Imbalances
market data product.
The Exchange also believes that the proposed rule change is
consistent with Section 11(A) of the Act \8\ 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,\9\ 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 Texas Order Imbalances market data product
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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\8\ 15 U.S.C. 78k-1.
\9\ 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 the NYSE Texas Order Imbalances market data
product 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.\10\
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\10\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (``Regulation NMS Adopting
Release'').
In addition, NYSE Texas Order Imbalances market data product
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 Exchange's affiliates, New York Stock
Exchange LLC (``NYSE''), NYSE Arca, Inc. (``NYSE Arca'') and NYSE
American LLC (``NYSE American''),\11\ and by the Nasdaq Stock Market
(``Nasdaq'').\12\
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\11\ See Securities Act Release Nos. 59543 (March 9, 2009), 74
FR 11159 (March 16, 2009) (SR-NYSE-2008-132) (NYSE Order
Imbalances); 76968 (January 22, 2016), 81 FR 4689 (January 27, 2016)
(SR-NYSEArca-2016-10) (NYSE Arca Order Imbalances); and 59743 (April
9, 2009), 74 FR 17699 (April 16, 2009) (SR-NYSEAmex-2009-11) (NYSE
Amex Order Imbalances n/k/a NYSE American Order Imbalances).
\12\ See Nasdaq TotalView, https://data.nasdaq.com/databases/NTV
(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).
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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, ensures that the Exchange is not unreasonably discriminatory
because vendors and subscribers can elect these alternatives as their
individual business cases warrant. This proposed new data feed
[[Page 21972]]
would provide investors with new options for receiving market data,
which was a primary goal of the market data amendments adopted by
Regulation NMS.\13\
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\13\ See Regulation NMS Adopting Release, supra, at 37503.
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The NYSE Texas Order Imbalances 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 LCN and IGN.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\14\ 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 Texas Order Imbalances market
data product will enhance competition. The NYSE Texas Order Imbalances
product will foster competition by providing an alternative to similar
products offered by other exchanges, including order imbalances
products offered by the Exchange's affiliates, NYSE, NYSE Arca and NYSE
American,\15\ and by Nasdaq.\16\ The NYSE Texas Order Imbalances market
data product 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.\17\ Thus, the Exchange believes the proposed
rule change is necessary to permit fair competition among national
securities exchanges.
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\14\ 15 U.S.C. 78f(b)(8).
\15\ See note 11, supra.
\16\ See note 12, supra.
\17\ See Regulation NMS Adopting Release, supra, 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.
D. 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 \18\ and Rule 19b-4(f)(6) thereunder.\19\
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)(iii) of the Act \20\ and Rule
19b-4(f)(6)(iii) thereunder.\21\
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\18\ 15 U.S.C. 78s(b)(3)(A)(iii).
\19\ 17 CFR 240.19b-4(f)(6).
\20\ 15 U.S.C. 78s(b)(3)(A)(iii).
\21\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give 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 designated by the Commission.
The Exchange has fulfilled this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \22\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\23\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
believes that waiver of the 30-day operative delay is appropriate
because the availability of the NYSE Texas Order Imbalances present no
novel issues and will provide investors with a stand-alone, alternative
to currently available proprietary data products. The Commission
believes that waiver of the operative delay would be consistent with
the protection of investors and the public interest because this
proposed rule change does not present any novel issues and it would
provide investors with an alternative option for accessing potentially
helpful information that could inform their trading decisions as soon
as practicable. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposed rule change as operative
upon filing.\24\
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\22\ 17 CFR 240.19b-4(f)(6).
\23\ 17 CFR 240.19b-4(f)(6)(iii).
\24\ For purposes only of waiving the 30-day operative delay,
the Commission also has 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 the 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 to
determine whether the proposed rule should be approved or disapproved.
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-NYSETEX-2025-10 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-NYSETEX-2025-10. 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
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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-NYSETEX-2025-10 and should
be submitted on or before June 12, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-09179 Filed 5-21-25; 8:45 am]
BILLING CODE 8011-01-P