Notice2024-04167
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 Data Feed
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Published
February 29, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 41 (Thursday, February 29, 2024)</title>
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[Federal Register Volume 89, Number 41 (Thursday, February 29, 2024)]
[Notices]
[Pages 14915-14918]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-04167]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99591; File No. SR-NYSE-2024-08]
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 Data Feed
February 23, 2024.
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 February 14, 2024, New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II 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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[[Page 14916]]
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 first price and last price of a security published by the
securities information processors for all listed equity securities. 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 first price and last price of a
security published by the securities information processors (``SIPs'')
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 (``Trades'') 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 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 a transaction is executed.
The Exchange also previously amended NYSE BQT to include the
consolidated high and consolidated low price for all equity securities
as obtained directly from the SIPs.\15\ The consolidated high and
consolidated low price for all equity securities is disseminated via
NYSE BQT after the CTA Plan and Unlisted Trading Privileges (``UTP'')
Plan SIP delay period.\16\
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\15\ See Securities Exchange Act No. 93000 (September 15, 2021),
86 FR 52505 (September 21, 2021) (SR-NYSE-2021-51) (Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Content of the NYSE Best Quote & Trades).
\16\ Id.
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Now, in addition to the information currently provided in NYSE BQT,
the Exchange proposes to include the current day consolidated first
price \17\ and current day consolidated last price of a security
published by the SIPs for all listed equity securities as obtained
directly from the SIPs. The consolidated first price and consolidated
last price for all equity securities would be disseminated via NYSE BQT
after the CTA and UTP Plan delay period. The delay period for CTA
equity securities is currently 15 minutes after publication and the
delay period for UTP equity securities is 15 minutes after the end of
the current day. Such information would provide NYSE BQT users with a
static benchmark against which to compare price movements shown on NYSE
BQT using first and last prices in the consolidated market. The
Exchange's proposal is in response to requests by subscribers using
NYSE BQT, and also to achieve feature parity with a competitor
exchange's data product.\18\
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\17\ Consolidated first price is the first last-sale eligible
trade published by the SIP.
\18\ See Securities Exchange Act No. 91241 (March 2, 2021), 86
FR 13427 (March 8, 2021) (SR-NASDAQ-2021-010) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Enhance the End
of Day Summary Message on Nasdaq Last Sale Plus).
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The NYSE BQT data feed is offered in a capacity similar to that of
a vendor. The Exchange, NYSE Arca, NYSE American, NYSE National and
NYSE Chicago are the exclusive distributors of the 10 BBO and Trades
feeds \19\ from which certain data elements are taken to create 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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\19\ These 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 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. The Exchange is not proposing any change to the fees for NYSE BQT
as a result of this modification.
[[Page 14917]]
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \20\ of the Act (``Act''), in general, and furthers
the objectives of Section 6(b)(5) \21\ 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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\20\ 15 U.S.C. 78f(b).
\21\ 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 \22\ 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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\22\ 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,\23\ 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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\23\ 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 first price and consolidated last price of a security
published by the SIPs 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 first and last prices in the consolidated market.
Therefore, the consolidated first and consolidated last 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 information. As
noted above, another exchange currently provides similar price
information in its market data product.\24\ 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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\24\ See, note 18, 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,\25\ 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 first price and consolidated last price of a
security published by the SIPs for all listed equity securities as part
of NYSE BQT, thereby enabling it to better compete with similar market
data products offered by another exchange that includes such
information.\26\ 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 first and consolidated
last price for all listed equity securities. The Exchange is not the
exclusive distributor of the consolidated first and consolidated last
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 first and consolidated last 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.\27\
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\25\ 15 U.S.C. 78f(b)(8).
\26\ See, note 18, supra.
\27\ See CTA Consolidated Volume Display Policy with FAQ at
<a href="https://www.ctaplan.com/publicdocs/ctaplan/Policy_CTA_Consolidated_Volume_Display_with_FAQ.pdf">https://www.ctaplan.com/publicdocs/ctaplan/Policy_CTA_Consolidated_Volume_Display_with_FAQ.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 first and consolidated last 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 \28\ and Rule
[[Page 14918]]
19b-4(f)(6) thereunder.\29\ 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 \30\ and Rule 19b-4(f)(6)(iii) thereunder.\31\
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\28\ 15 U.S.C. 78s(b)(3)(A)(iii).
\29\ 17 CFR 240.19b-4(f)(6).
\30\ 15 U.S.C. 78s(b)(3)(A).
\31\ 17 CFR 240.19b-4(f)(6). 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, 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 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) \32\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\32\ 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="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#cbb9bea7aee6a8a4a6a6aea5bfb88bb8aea8e5aca4bd"><span class="__cf_email__" data-cfemail="5e2c2b323b733d3133333b302a2d1e2d3b3d70393128">[email protected]</span></a>. Please include
file number SR-NYSE-2024-08 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-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 (<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-NYSE-2024-08 and should be
submitted on or before March 21, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
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\33\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-04167 Filed 2-28-24; 8:45 am]
BILLING CODE 8011-01-P
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