Notice2021-20331
Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Content of the NYSE Best Quote & Trades
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Published
September 21, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 180 (Tuesday, September 21, 2021)</title>
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[Federal Register Volume 86, Number 180 (Tuesday, September 21, 2021)]
[Notices]
[Pages 52505-52508]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-20331]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93000; File No. SR-NYSE-2021-51]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Content of the NYSE Best Quote & Trades
September 15, 2021.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on September 3, 2021, 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 amend the content of the NYSE Best Quote &
Trades (``NYSE BQT'') data feed to identify the current day
consolidated high and low prices. The proposed rule change is available
on the Exchange's website at <a href="http://www.nyse.com">www.nyse.com</a>, 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 enhance the content of NYSE BQT to
identify the current day consolidated high and low price for all listed
equity securities.
The NYSE BQT \4\ 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 American LLC (``NYSE
American''), NYSE National, Inc. (``NYSE National'') and NYSE Chicago,
Inc. (``NYSE Chicago'') and consists of data elements from ten existing
market data feeds: NYSE Trades,\5\ NYSE BBO,\6\ NYSE Arca Trades,\7\
NYSE Arca BBO,\8\ NYSE
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American Trades,\9\ NYSE American BBO,\10\ NYSE National Trades,\11\
NYSE National BBO,\12\ NYSE Chicago Trades,\13\ and NYSE Chicago
BBO.\14\
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\4\ See Securities Exchange Act Release No. 73553 (November 6,
2014), 79 FR 67491 (November 13, 2014) (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).
\5\ See Securities Exchange Act Release Nos. 59290 (January 23,
2009), 74 FR 5707 (January 30, 2009) (SR-NYSE-2009-05); and 59606
(March 19, 2009), 74 FR 13293 (March 26, 2009) (SR-NYSE-2009-04).
\6\ See Securities Exchange Act Release No. 62181 (May 26,
2010), 75 FR 31488 (June 3, 2010) (SR-NYSE-2010-30).
\7\ See Securities Exchange Act Release Nos. 59289 (January 23,
2009), 74 FR 5711 (January 30, 2009) (SR-NYSEArca-2009-06); and
59598 (March 18, 2009), 74 FR 12919 (March 25, 2009) (SR-NYSEArca-
2009-05).
\8\ See Securities Exchange Act Release No. 62188 (May 27,
2010), 75 FR 31484 (June 3, 2010) (SR-NYSEArca-2010-23).
\9\ See Securities Exchange Act Release No. 62187 (May 27,
2010), 75 FR 31500 (June 3, 2010) (SR-NYSEAmex-2010-35).
\10\ See Securities Exchange Act Release No. 62187 (May 27,
2010), 75 FR 31500 (June 3, 2010) (SR-NYSEAmex-2010-35).
\11\ See Securities Exchange Act Release No. 83350 (May 31,
2018), 83 FR 26332 (June 6, 2018) (SR-NYSENAT-2018-09).
\12\ See Securities Exchange Act Release No. 83350 (May 31,
2018), 83 FR 26332 (June 6, 2018) (SR-NYSENAT-2018-09).
\13\ See Securities Exchange Act Release No. 87389 (October 23,
2019), 84 FR 57904 (October 29, 2019) (SR-NYSECHX-2019-15).
\14\ See Securities Exchange Act Release No. 87389 (October 23,
2019), 84 FR 57904 (October 29, 2019) (SR-NYSECHX-2019-15).
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NYSE BBO, NYSE Arca BBO, NYSE American BBO, NYSE National BBO and
NYSE Chicago BBO are existing data feeds that distribute on a real-time
basis the same BBO information that NYSE, NYSE Arca, NYSE American,
NYSE National and NYSE Chicago, respectively, report under the
Consolidated Quotation (``CQ'') Plan for inclusion in the CQ Plan's
consolidated quotation information data stream. NYSE Trades, NYSE Arca
Trades, NYSE American Trades, NYSE National Trades and NYSE Chicago
Trades are existing data feeds that distribute on a real-time basis the
same last sale information that NYSE, NYSE Arca, NYSE American, NYSE
National and NYSE Chicago, respectively, report under the Consolidated
Tape Association (``CTA'') Plan for inclusion in the CTA Plan's
consolidated data streams. Among other things, NYSE BQT also includes
consolidated volume for all listed equity securities regardless of
where the transaction was executed.
Now, in addition to the information currently provided in NYSE BQT,
the Exchange proposes to include the current day consolidated high and
low price for all listed equity securities as obtained directly from
the securities information processors (``SIPs''). The consolidated high
and low price for all equity securities would be disseminated via NYSE
BQT after the Consolidated Tape Association (``CTA'') and Unlisted
Trading Privileges (``UTP'') Plan SIP delay period, which is currently
15 minutes. Such information would provide NYSE BQT users with a static
benchmark against which to compare price movements shown on NYSE BQT
using high and low prices in the consolidated market. The Exchange's
proposal is in response to requests by subscribers using NYSE BQT, and
also to recent changes by a competitor exchange to its end of day
messages.\15\
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\15\ See Securities Exchange Act No. 92301 (June 30, 2021), 86
FR 35845 (July 7, 2021) (SR-CboeBYX-2021-014).
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The NYSE BQT data feed is offered in a capacity similar to that of
a vendor.<SUP>[16]</SUP> The Exchange, NYSE Arca, NYSE American, NYSE
National and NYSE Chicago are the exclusive distributors of the 10 BBO
and Trades feeds \17\ from which certain data elements is taken to
create the NYSE BQT. By contrast, the Exchange would not be the
exclusive distributor of the aggregated and consolidated information
that composes the NYSE BQT data feed. Other vendors would be able, if
they chose, to create a data feed with the same information included in
NYSE BQT, and to distribute it to clients with no greater latency than
the Exchange would be able to distribute NYSE BQT.
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\[16]\ [The Commission notes that its order approving the
exchange's proposal to offer the NYSE BQT feed states that the
Commission believes that ``a data feed offered by an exchange that
contains that exchange's own market data (including a feed that also
contains data from other exchanges) is a `material aspect of the
operation of the facilities of the self-regulatory organization,'
and that therefore, such a data product and any related fees are
subject to the rule filing process of Section 19(b) of the Act.''
Securities Exchange Act Release No. 73554 (Nov. 6, 2014), 79 FR
67491, 67494 (Nov. 13, 2014) (SR-NYSE-2014-40).]
\17\ These other data feeds are offered pursuant to pre-existing
and already effective rules filed with the Commission; those rules
will not be altered by this filing.
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The Exchange proposes that this change become operative on October
18, 2021. The Exchange is not proposing any change to the fees for NYSE
BQT as a result of this modification.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \18\ of the Act (``Act''), in general, and furthers
the objectives of Section 6(b)(5) \19\ 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
BQT market data feed to those interested in receiving it. The NYSE BQT
data feed is a product that relies on the Exchange's receipt of
underlying data, which is available to all market participants, before
it can aggregate and consolidate information to create the NYSE BQT;
this is a process that a vendor could also perform. Accordingly, the
Exchange is not the only distributor of the NYSE BQT data feed.
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\18\ 15 U.S.C. 78f(b).
\19\ 15 U.S.C. 78f(b)(5).
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The Exchange also believes that the proposed rule change is
consistent with Section 11(A) of the Act \20\ in that it supports (1)
fair competition among brokers and dealers, among exchange markets, and
between exchange markets and markets other than exchange markets and
(2) the availability to brokers, dealers, and investors of information
with respect to quotations for and transactions in securities.
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\20\ 15 U.S.C. 78k-1.
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Furthermore, the Exchange believes that the proposed rule change is
consistent with Rule 603 of Regulation NMS,\21\ 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. 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 provision of market
data.
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\21\ 17 CFR 242.603.
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The proposed rule change is designed to promote just and equitable
principles of trade and remove impediments to and perfect the mechanism
of a free and open market and a national market system by identifying
the consolidated high and low price for all listed equity securities as
obtained directly from the SIPs. Such information would provide NYSE
BQT users with a static benchmark against which to compare price
movements shown on NYSE BQT using high and low prices in the
consolidated market. Therefore, the consolidated high and low price for
listed equity securities would provide meaningful information to
investors.
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 such
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information. As noted above, another exchange currently provides
consolidated high and low price information in their competing market
data products.\22\ Therefore, the Exchange believes the proposed rule
change removes impediments to and perfects the mechanism of a free and
open market and a national market system, and, in general, protects
investors and the public interest as it would provide an additional
avenue for investors to receive this information from a competing
product.
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\22\ See, note 15, supra.
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In addition, this proposal would not permit unfair discrimination
because NYSE BQT will continue to be available to all of the Exchange's
customers through SFTI and market data vendors on an equivalent basis.
In addition, any customer that wished to continue to be able to
purchase one or more of the individual underlying data feeds would be
able to do so.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\23\ 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. The Exchange believes that the proposed rule
change will enhance competition because it would enable the Exchange to
include the consolidated high and low price as part of NYSE BQT,
thereby enabling it to better compete with similar market data products
offered by another exchange that includes such information.\24\ As
noted above, the Exchange already offers NYSE BQT and this proposed
rule change simply amends the content of the current market data
product to include the consolidated high and low price for all listed
equity securities. The Exchange is not the exclusive distributor of the
consolidated high and low price information that would compose the
amended NYSE BQT data feed. Vendors would be able, if they chose, to
create a data feed with the same information as NYSE BQT and distribute
it to their clients on a level-playing field with respect to latency
and cost as compared to the Exchange's product. Specifically, a
competing vendor could receive the consolidated high and low price from
the SIPs and include that information as part of their market data
products to be disseminated to customers pursuant to the same terms and
policies as the Exchange.\25\
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\23\ 15 U.S.C. 78f(b)(8).
\24\ See, note 15, supra.
\25\ See CTA Consolidated Volume Display Policy with FAQ at
<a href="https://www.ctaplan.com/publicdocs/ctaplan/notifications/traderupdate/CTA%20Consolidated%20Volume%20Policy%20FAQ.pdf">https://www.ctaplan.com/publicdocs/ctaplan/notifications/traderupdate/CTA%20Consolidated%20Volume%20Policy%20FAQ.pdf</a>.
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The Exchange believes the proposal will have no impact on
intramarket competition as the proposal is not targeted at, or expected
to be limited in its applicability to, any particular segment of market
participants and no segment of retail investors, the general investing
public, or any other market participant is expected to benefit more
than any other. Therefore, the Exchange believes the inclusion of the
consolidated high and low price in NYSE BQT would not impose any burden
on competition not necessary or appropriate in furtherance of the
purposes of the Act.
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 \26\ and Rule 19b-4(f)(6) thereunder.\27\
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 \28\ and Rule
19b-4(f)(6)(iii) thereunder.\29\
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\26\ 15 U.S.C. 78s(b)(3)(A)(iii).
\27\ 17 CFR 240.19b-4(f)(6).
\28\ 15 U.S.C. 78s(b)(3)(A)(iii).
\29\ 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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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) \30\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\30\ 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
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#7705021b125a14181a1a121903043704121459101801"><span class="__cf_email__" data-cfemail="2755524b420a44484a4a424953546754424409404851">[email protected]</span></a>. Please include
File Number SR-NYSE-2021-51 on the subject line.
Paper Comments
<bullet> 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-2021-51. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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
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to make available publicly. All submissions should refer to File Number
SR-NYSE-2021-51 and should be submitted on or before October 12, 2021.
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\31\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-20331 Filed 9-20-21; 8:45 am]
BILLING CODE 8011-01-P
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