Notice2023-25664
Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend the NYSE American Options Proprietary Market Data Fee Schedule
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 21, 2023
Issuing agencies
Securities and Exchange Commission
Abstract
an End of Day Volume Summary market data product and an Intra-Day Volume Summary market data product. The Exchange initially introduced the End of Day Volume Summary market data product on March 1, 2022 and adopted fees for the End of Day Volume Summary market data product.\7\ The purpose of this filing is to adopt fees for the Intra-Day Volume Summary market data product. ---------------------------------------------------------------------------
Full Text
<html>
<head>
<title>Federal Register, Volume 88 Issue 223 (Tuesday, November 21, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 223 (Tuesday, November 21, 2023)]
[Notices]
[Pages 81157-81161]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-25664]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98951; File No. SR-NYSEAMER-2023-58]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change To Amend the NYSE
American Options Proprietary Market Data Fee Schedule
November 15, 2023.
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 November 1, 2023, NYSE American LLC (``NYSE American'' or
``Exchange'') filed with the Securities and Exchange Commission
(``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the NYSE American Options
Proprietary Market Data Fee Schedule (``Fee Schedule'') to adopt fees
for the NYSE Options Open-Close Volume Summary market data product,
effective November 1, 2023. 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 amend the Fee Schedule to adopt fees for
the NYSE Options Open-Close Volume Summary,\4\ which will be available
for purchase by any market participant, i.e., members \5\ and non-
members. The Exchange proposes to implement fees for the NYSE Options
Open-Close Volume Summary market data product on November 1, 2023.\6\
The proposed fees would be applied equally to all market participants
and all market participants would receive the same information in the
data feed.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 93803 (December 16,
2021), 86 FR 72647 (December 22, 2021) (SR-NYSEAMER-2021-46) (Notice
of Filing and Immediate Effectiveness of Proposed Rule Change to
Adopt a New Historical Market Data Product to Be Known as the NYSE
Options Open-Close Volume Summary) (``Product Filing'').
\5\ References to ``member organization'' as used in Exchange
rules include American Trading Permit (``ATP'') Holders, which are
registered brokers or dealers approved to effect transactions on the
Exchange's options marketplace. Under the Exchange's rules, an ATP
Holder has the status as a ``member'' of the Exchange as that term
is defined in Section 3 of the Act. See Rule 900.2NY.
\6\ The Exchange has announced that it will begin [sic]
migrating Exchange-listed options to the Pillar technology platform
on October 23, 2023, available here: <a href="https://www.nyse.com/trader-update/history?page=5#110000635130">https://www.nyse.com/trader-update/history?page=5#110000635130</a>.
---------------------------------------------------------------------------
Background
By way of background, pursuant to the Product Filing, the Exchange
adopted two versions of the NYSE Options Open-Close Volume Summary: an
End of Day Volume Summary market data product and an Intra-Day Volume
Summary market data product. The Exchange initially introduced the End
of Day Volume Summary market data product on March 1, 2022 and adopted
fees for the End of Day Volume Summary market data product.\7\ The
purpose of this filing is to adopt fees for the Intra-Day Volume
Summary market data product.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 94334 (March 1,
2022), 87 FR 12748 (March 7, 2022) (SR-NYSEAMER-2022-11) (Notice of
Filing and Immediate Effectiveness of Proposed Change To Amend the
NYSE American Options Proprietary Market Data Fee Schedule).
---------------------------------------------------------------------------
The Intra-Day Volume Summary provides a volume summary of trading
activity on the Exchange at the option level by origin (Customer,
Professional Customer, Firm, Broker-Dealer, and Market Maker \8\), side
of the market (buy or sell), contract volume, and transaction type
(opening or closing). The Customer, Professional Customer, Firm,
Broker-Dealer, and Market Maker volume is further broken down into
trade size buckets (less than 100 contracts, 100-199 contracts, greater
than 199 contracts). The Intra-Day Volume Summary provides similar
information to that of the End of Day Volume Summary but is produced
and updated every 10 minutes during the trading day. The data is
captured in ``snapshots'' taken every 10 minutes throughout the trading
day and will be available to subscribers within five minutes of the
conclusion of each 10-minute period. Each update would represent
combined data captured from the current ``snapshot'' and all previous
``snapshots'' and thus would provide open-close data on an aggregate
basis.
---------------------------------------------------------------------------
\8\ The terms Customer, Professional Customer, Firm and Market
Maker are defined in Rule 900.2NY.
---------------------------------------------------------------------------
The NYSE Options Open-Close Volume Summary is proprietary Exchange
trade data and does not include trade data from any other exchange. It
is also a historical data product and not a real-time data feed.
The Exchange anticipates a wide variety of market participants to
purchase the Intra-Day Volume Summary data product, including, but not
limited to, individual customers, buy-side investors, and investment
banks. The Exchange believes the Intra-Day Volume Summary would provide
subscribers data that should enhance their ability to analyze options
trade and volume data, and to create and test trading models and
analytical strategies. The Exchange believes the Intra-Day Volume
Summary will be a valuable tool that subscribers can use to gain
comprehensive insight into the trading activity in a particular options
series. The Intra-Day Volume Summary is a completely voluntary product,
in that the Exchange is not required by any rule or regulation to make
this data available and that potential subscribers may
[[Page 81158]]
purchase it only if they voluntarily choose to do so. The Exchange
notes that other exchanges offer a similar product,\9\ including the
Exchange's affiliate, NYSE Arca, Inc. (NYSE Arca'').\10\
---------------------------------------------------------------------------
\9\ See Securities Exchange Act Release Nos. 89497 (August 6,
2020), 85 FR 48747 (August 12, 2020) (SR-CboeBZX-2020-059); 89498
(August 6, 2020), 85 FR 48735 (August 12, 2020) (SR-Cboe-EDGX-2020-
36); 89496 (August 6, 2020), 85 FR 48743 (August 12, 2020) (SR-C2-
2020-010); 89586 (August 17, 2020), 85 FR 51833 (August 21, 2020)
(SR-C2-2020- 012); 62887 (September 10, 2010), 75 FR 57092
(September 17, 2010) (SR-Phlx-2010-121); 65587 (October 18, 2011),
76 FR 65765 (October 24, 2011) (SR-NASDAQ-2011-144); 61317 (January
8, 2010), 75 FR 2915 (January 19, 2010) (SR-ISE-2009-103); 81632
(September 15, 2017), 82 FR 44235 (September 21, 2017) (SR-GEMX-
2017-42); 91963 (May 21, 2021), 86 FR 28662 (May 27, 2021) (SR-
EMERALD-2021-18); 91964 (May 21, 2012), 86 FR 28667 (May 27, 2021)
(SR-PEARL-2021-24); and 91965 (May 21, 2021), 86 FR 28665 (May 27,
2021) (SR-MIAX-2021-18).
\10\ See Securities Exchange Act Release No. 95201 (July 6,
2022), 87 FR 41366 (July 12, 2022) (SR-NYSEArca-2022-37) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Amend
the NYSE Arca Options Proprietary Market Data Fee Schedule).
---------------------------------------------------------------------------
The Intra-Day Volume Summary is subject to direct competition from
similar end of day options trading summaries offered by other options
exchanges.\11\ All of these exchanges offer essentially the same intra
day options trading summary information. The options trading summary
files offered by the Exchange's competitors are substitutes, not
complements. The Intra-Day Volume Summary provides data on options
market activity which can be used to infer longer-term trends. The
information provided by one exchange is generally similar to that
provided by other exchanges because order flow can move from one
exchange to another, and market sentiment trends that appear on one
exchange are likely to be similar to the sentiment trends on other
exchanges. The key differentiator in the quality of the data depends on
the volume of transactions on a given exchange. The greater the volume
of transactions, the greater the value of the data.
---------------------------------------------------------------------------
\11\ See supra note 9 [sic].
---------------------------------------------------------------------------
Proposed Rule Change
The Exchange proposes to adopt subscription fees for the purchase
of the Intra-Day Volume Summary on a monthly basis. The Exchange
proposes to assess a fee of $2,000 per month for subscribing to the
Intra-Day Volume Summary. As noted on the Fee Schedule, for mid-month
subscriptions, new subscribers will be charged for the full calendar
month for which they subscribe and will be provided NYSE Options Open-
Close Volume Summary data for each trading day of the calendar month in
which they subscribed. The proposed monthly fees will apply to all
market participants. The Exchange notes that other exchanges provide
similar data products that may be purchased on a monthly basis and are
comparably priced.\12\
---------------------------------------------------------------------------
\12\ See Price List--U.S. Derivatives Data for Nasdaq PHLX, LLC
(``PHLX''), The Nasdaq Stock Market, LLC (``Nasdaq''), Nasdaq ISE,
LLC (``ISE''), and Nasdaq GEMX, LLC (``GEMX''), available at <a href="http://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions#web">http://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions#web</a>.
Particularly, PHLX offers ``Nasdaq PHLX Options Trade Outline
(PHOTO)'' and assesses $2,500 per month for an intra-day
subscription; Nasdaq offers the ``Nasdaq Options Trade Outline
(NOTO)'' and assesses $750 per month for an intra-day subscription;
ISE offers the ``Nasdaq ISE Open/Close Trade Profile'' and assesses
$2,000 per month for an intra-day subscription; and GEMX offers the
``Nasdaq GEMX Open/Close Trade Profile'' and assesses $1,000 per
month for an intra-day subscription. Cboe EDGX Exchange, Inc.
(``EDGX'') assesses $1,000 per month for an intraday subscription
and Cboe BZX Exchange, Inc. (``BZX'') assesses $1,500 per month for
an intraday subscription. See EDGX fee schedule available at <a href="http://markets.cboe.com/us/options/membership/fee_schedule/edgx/">http://markets.cboe.com/us/options/membership/fee_schedule/edgx/</a>; and BZX
fee schedule available at <a href="http://markets.cboe.com/us/options/membership/fee_schedule/bzx/">http://markets.cboe.com/us/options/membership/fee_schedule/bzx/</a>. Miami International Securities
Exchange, LLC (``MIAX''), MIAX Emerald, LLC (``Emerald'') and MIAX
PEARL, LLC (``PEARL'') each assesses $2,000 per month for an intra-
day subscription. See MIAX Fee Schedule, available at <a href="https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_09282021.pdf">https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_09282021.pdf</a>; Emerald Fee Schedule,
available at <a href="https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Emerald_Fee_Schedule_09282021.pdf">https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Emerald_Fee_Schedule_09282021.pdf</a>; and PEARL
Fee Schedule, available at <a href="https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Pearl_Options_Fee_Schedule_092821.pdf">https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Pearl_Options_Fee_Schedule_092821.pdf</a>.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\13\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\14\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and to protect investors and the public
interest, and that it is not designed to permit unfair discrimination
among customers, brokers, or dealers. The Exchange also believes that
its proposal to adopt fees for the Intra-Day Volume Summary market data
product is consistent with Section 6(b) of the Act \15\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \16\ in
particular, in that it is an equitable allocation of dues, fees and
other charges among its members and other recipients of Exchange data.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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 the public. 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. Particularly, the Intra-
Day Volume Summary further broadens the availability of U.S. options
market data to investors consistent with the principles of Regulation
NMS. Subscribers to the data may also be able to enhance their ability
to analyze options trade and volume data and create and test trading
models and analytical strategies. The Exchange believes the Intra-Day
Volume Summary would provide a valuable tool that subscribers can use
to gain comprehensive insight into the trading activity in a particular
series, but also emphasizes such data is not necessary for trading.
Moreover, other exchanges offer a similar data product.\17\
---------------------------------------------------------------------------
\17\ See supra notes 9 and 10.
---------------------------------------------------------------------------
The Exchange operates in a highly competitive market. Indeed, there
are currently 17 registered options exchanges competing for order flow.
Based on publicly-available information, and excluding index-based
options, no single exchange has more than 16% of the market share of
executed volume of multiply-listed equity and ETF options trades.\18\
Therefore, currently no exchange possesses significant pricing power in
the execution of multiply-listed equity and ETF options order flow.
More specifically, in July 2023, the Exchange had less than 8% market
share of executed volume of multiply-listed equity and ETF options
trades.\19\
---------------------------------------------------------------------------
\18\ The Options Clearing Corporation (``OCC'') publishes
options and futures volume in a variety of formats, including daily
and monthly volume by exchange, available here: <a href="https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics">https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics</a>.
\19\ Based on OCC data for monthly volume of equity-based
options and monthly volume of ETF-based options, see id., the
Exchange's market share in equity-based options decreased from 7.26%
for the month of July 2022 to 7.09% for the month of July 2023.
---------------------------------------------------------------------------
The Commission has repeatedly expressed its preference for
competition over regulatory intervention in determining prices,
products, and services in the securities markets. Specifically, in
Regulation NMS, the Commission highlighted the importance of market
forces in determining prices
[[Page 81159]]
and SRO revenues, and also recognized that current regulation of the
market system ``has been remarkably successful in promoting market
competition in its broader forms that are most important to investors
and listed companies.'' \20\
---------------------------------------------------------------------------
\20\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
---------------------------------------------------------------------------
With respect to market data, the decision of the United States
Court of Appeals for the District of Columbia Circuit in NetCoalition
v. SEC upheld the Commission's reliance on the existence of competitive
market mechanisms to evaluate the reasonableness and fairness of fees
for proprietary market data:
In fact, the legislative history indicates that the Congress
intended that the market system ``evolve through the interplay of
competitive forces as unnecessary regulatory restrictions are
removed'' and that the SEC wield its regulatory power ``in those
situations where competition may not be sufficient,'' such as in the
creation of a ``consolidated transactional reporting system.'' \21\
---------------------------------------------------------------------------
\21\ NetCoalition v. SEC, 615 F.3d 525, 535 (D.C. Cir. 2010)
(quoting H.R. Rep. No. 94-229 at 92 (1975), as reprinted in 1975
U.S.C.C.A.N. 323).
The court agreed with the Commission's conclusion that ``Congress
intended that `competitive forces should dictate the services and
practices that constitute the U.S. national market system for trading
equity securities.' '' \22\
---------------------------------------------------------------------------
\22\ Id. at 535.
---------------------------------------------------------------------------
More recently, the Commission confirmed that it applies a ``market-
based'' test in its assessment of market data fees, and that under that
test:
the Commission considers whether the exchange was subject to
significant competitive forces in setting the terms of its proposal
for [market data], including the level of any fees. If an exchange
meets this burden, the Commission will find that its fee rule is
consistent with the Act unless there is a substantial countervailing
basis to find that the terms of the rule violate the Act or the
rules thereunder.\23\
---------------------------------------------------------------------------
\23\ See Securities Exchange Act Release No. 34-90217 (October
16, 2020), 85 FR 67392 (October 22, 2020) (SR-NYSENAT-2020-05)
(internal quotation marks omitted), quoting Securities Exchange Act
Release No. 59039 (December 2, 2008), 73 FR 74770, 74781 (December
9, 2008) (ArcaBook Approval Order).
Making similar historic data products available to market
participants fosters competition in the marketplace, and constrains the
ability of exchanges to charge supra-competitive fees. In the event
that a market participant views one exchange's data product as more or
less attractive than the competition they can and do switch between
similar products. The proposed fees are a result of the competitive
environment, as the Exchange seeks to adopt fees to attract purchasers
of the Intra-Day Volume Summary data product.
The Exchange believes the proposed fees are reasonable as they are
comparable to the fees assessed by other exchanges that provide similar
data products.\24\ Indeed, proposing fees that are excessively higher
than established fees for similar data products would simply serve to
reduce demand for the Exchange's data product, which as noted, is
entirely optional. Like the Intra-Day Volume Summary, other exchanges
offer similar data products that each provide insight into trading on
those markets and may likewise aid in assessing investor sentiment.
Although each of these similar data products provide only proprietary
trade data and not trade data from other exchanges, it is possible
investors are still able to gauge overall investor sentiment across
different option series based on open and closing interest on any one
exchange. Similarly, market participants may be able to analyze option
trade and volume data, and create and test trading models and
analytical strategies using only the Intra-Day Volume Summary data
relating to trading activity on one or more of the other markets that
provide similar data products. As such, if a market participant views
another exchange's data as more attractive than the Exchange's data
product, then such market participant can merely choose not to purchase
the Exchange's data product and instead purchase another exchange's
product, which offer similar data points, albeit based on that other
market's trading activity.
---------------------------------------------------------------------------
\24\ See supra note 12.
---------------------------------------------------------------------------
The Exchange also believes the proposed fees are reasonable as they
would support the introduction of a new historic market data product
that is designed to aid investors by providing insight into trading on
the Exchange. Once the Intra-Day Volume Summary is made available, it
would provide options market participants with valuable information
about opening and closing transactions executed on the Exchange
throughout the trading day, similar to other trade data products
offered by competing options exchanges. In turn, this data would assist
market participants in gauging investor sentiment and trading activity,
resulting in potentially better-informed trading decisions. As noted
above, subscribers may also use such data to create and test trading
models and analytical strategies.
Selling historic market data is also a means by which exchanges
compete to attract business. To the extent that the Exchange is
successful in attracting subscribers to the Exchange's historic data
product, it may earn trading revenues and further enhance the value of
its data products. If the market deems the proposed fees to be unfair
or inequitable, subscribers can diminish or discontinue their use of
the historic data and/or avail themselves of similar products offered
by other exchanges.\25\ The Exchange therefore believes that the
proposed fees reflect the competitive environment and would be properly
and equally assessed to all subscribers. The Exchange also believes the
proposed fees are equitable and not unfairly discriminatory as the fees
would apply equally to all subscribers who choose to purchase such
data. Nothing in this proposal treats any category of market
participant any differently from any other category of market
participant. The Intra-Day Volume Summary is available to all market
participants, i.e., members and non-members, and all market
participants would receive the same information in the data feed.
---------------------------------------------------------------------------
\25\ See supra notes 9 and 10.
---------------------------------------------------------------------------
As noted above, the Exchange anticipates a wide variety of market
participants to purchase the Exchange's data product, including but not
limited to individual customers, buy-side investors and investment
banks. The Exchange reiterates that the decision as to whether or not
to purchase the Intra-Day Volume Summary is entirely optional for all
potential subscribers. Indeed, no market participant is required to
purchase the data product, and the Exchange is not required to make the
data product available to market participants. Rather, the Exchange is
voluntarily making the Intra-Day Volume Summary data product available,
as requested by customers, and market participants may choose to
receive (and pay for) this data based on their own business needs.
Potential subscribers may request the data at any time if they believe
it to be valuable or may decline to purchase such data.
In sum, the fierce competition for order flow constrains any
exchange from pricing its historic market data at a supra-competitive
price, and constrains the Exchange here in setting its fees for the
Intra-Day Volume Summary data product. As described above, the
Exchange's data product competes head-to-head with numerous products
currently available in the marketplace. These products each serve as
reasonable substitutes for one another as they are each designed to
provide data on options market activity which can be used to infer
longer-term trends. The information provided by one
[[Page 81160]]
exchange is generally similar to that provided by other exchanges
because order flow can move from one exchange to another, and market
sentiment trends that appear on one exchange are likely to be similar
to the sentiment trends on other exchanges. The key differentiator in
the quality of the data depends on the volume of transactions on a
given exchange. The greater the volume of transactions, the greater the
value of the historic data. The proposed fees are therefore reasonable
because in setting them, the Exchange is constrained by the
availability of numerous substitute venues offering historic market
data products and trading. Such substitutes need not be identical, but
only substantially similar to the product at hand.
More specifically, in setting fees for the Intra-Day Volume
Summary, the Exchange is constrained by the fact that, if its pricing
is unattractive to subscribers, subscribers have their pick of an
increasing number of alternative venues to use instead of the Exchange.
The existence of numerous alternatives to the Exchange ensures that the
Exchange cannot set unreasonable fees for historic market data without
suffering the negative effects of that decision in the fiercely
competitive market in which it operates.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
also does not believe the proposed fees would cause any unnecessary or
inappropriate burden on intermarket competition as other exchanges are
free to introduce their own comparable historic data product and adopt
fees to better compete with the Exchange's offering. Rather, the
Exchange believes that the proposal will promote competition by
permitting the Exchange to sell a data product similar to those offered
by other competitor options exchanges.\26\ The Exchange is offering the
Intra-Day Volume Summary in order to keep pace with changes in the
industry and evolving customer needs, and believes the data product
will contribute to robust competition among national securities
exchanges. At least eight other U.S. options exchanges offer a market
data product that is substantially similar to the Exchange's offering.
As a result, the Exchange believes this proposed rule change permits
fair competition among national securities exchanges.
---------------------------------------------------------------------------
\26\ Id.
---------------------------------------------------------------------------
Furthermore, the Exchange operates in a highly competitive
environment, and its ability to price Intra-Day Volume Summary is
constrained by competition among exchanges that offer similar data
products to their customers. As discussed above, there are currently a
number of similar products available to market participants and
investors. At least eight other U.S. options exchanges offer a market
data product that is substantially similar to the Exchange's offering,
which the Exchange must consider in its pricing discipline in order to
compete effectively.\27\ For example, proposing fees that are
excessively higher than established fees for similar data products
would simply serve to reduce demand for the Exchange's data product,
which as discussed, market participants are under no obligation to
utilize or purchase. In this competitive environment, potential
purchasers are free to choose which, if any, similar product to
purchase to satisfy their need for market information. As a result, the
Exchange believes this proposed rule change permits fair competition
among national securities exchanges.
---------------------------------------------------------------------------
\27\ See supra note 12.
---------------------------------------------------------------------------
The Exchange does not believe the proposed rule change would cause
any unnecessary or inappropriate burden on intramarket competition.
Particularly, the proposed fees would apply uniformly to any
subscriber, in that the Exchange would not differentiate between
subscribers that purchase the Intra-Day Volume Summary and all
subscribers would receive the same information in the data feed. The
Exchange believes the proposed fees are set at a modest level that
would allow interested subscribers to purchase such data based on their
business needs.
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 foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A) \28\ of the Act and paragraph (f) thereunder. 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.
---------------------------------------------------------------------------
\28\ 15 U.S.C. 78s(b)(3)(A).
---------------------------------------------------------------------------
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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#d0a2a5bcb5fdb3bfbdbdb5bea4a390a3b5b3feb7bfa6"><span class="__cf_email__" data-cfemail="8dfff8e1e8a0eee2e0e0e8e3f9fecdfee8eea3eae2fb">[email protected]</span></a>. Please include
file number SR-NYSEAMER-2023-58 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-NYSEAMER-2023-58. 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="https://www.sec.gov/rules/sro.shtml">https://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
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-NYSEAMER-2023-58 and should
[[Page 81161]]
be submitted on or before December 12, 2023.
---------------------------------------------------------------------------
\29\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-25664 Filed 11-20-23; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on November 21, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.