Notice2024-05629
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish the NYSE Arca Aggregated Lite Market Data Feed
Primary source
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Published
March 18, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 53 (Monday, March 18, 2024)</title>
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[Federal Register Volume 89, Number 53 (Monday, March 18, 2024)]
[Notices]
[Pages 19381-19383]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-05629]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99713; File No. SR-NYSEARCA-2024-22]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Establish the
NYSE Arca Aggregated Lite Market Data Feed
March 12, 2024.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on February 27, 2024, NYSE Arca, Inc. (``NYSE Arca'' 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 Arca Aggregated Lite
(``NYSE Arca Agg Lite'') market data feed. 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 establish the NYSE Arca Agg Lite market
data feed. The NYSE Arca Agg Lite is a NYSE Arca-only frequency-based
depth of book market data feed of the NYSE Arca's limit order book for
up to ten (10) price levels for securities traded on the Exchange and
for which the Exchange reports quotes and trades under the Consolidated
Tape Association (``CTA'') Plan or the Nasdaq/UTP Plan. NYSE Arca Agg
Lite would be a compilation of limit order data that the Exchange would
provide to vendors and subscribers. As proposed, the NYSE Arca Agg Lite
data feed would be updated no less frequently than once per second. The
NYSE Arca Agg Lite would include depth of book order data as well as
security status messages. The security status message would inform
subscribers of changes in the status of a specific security, such as
trading halts, short sale restriction, etc. In addition, the NYSE Arca
Agg Lite would also include order imbalance information prior to the
opening and closing of trading.
The Exchange proposes to offer NYSE Arca Agg Lite after receiving
requests from vendors and subscribers that would like to receive the
data described above in an integrated fashion at a pre-defined
publication interval, in this case updates no less than once per
second. An aggregated data feed may provide greater efficiencies and
reduce errors for vendors and subscribers that currently choose to
integrate the above data into a single offering after receiving it from
the Exchange through existing products and adjust the publication
frequency based on a subscriber's needs. The Exchange believes that
providing vendors and subscribers with the option to subscribe to a
market data product that integrates a subset of data from existing
products and where such aggregated data is published at a pre-defined
interval, thus lowering bandwidth, infrastructure and operational
requirements, would allow vendors and subscribers to choose the best
solution for their specific business needs. The Exchange notes that
publishing only the top ten price levels on both the bid and offer
sides of the order book where such data is communicated to subscribers
at a pre-defined interval would reduce the overall volume of messages
required to be consumed by subscribers when compared to a full order-
by-order data feed or a full depth of book data feed. Providing data in
this format and publication frequency would make NYSE Arca Agg Lite
more easily consumable by vendors and subscribers, especially for
display purposes.
The Exchange proposes to offer NYSE Arca Agg Lite through the
Exchange's Liquidity Center Network (``LCN''), a local area network in
the Exchange's Mahwah, New Jersey data center that is available to
users of the Exchange's co-location services. The Exchange would also
offer NYSE Arca Agg Lite through the ICE Global Network (``IGN''),
through which all other users and members access the Exchange's trading
and execution systems and other proprietary market data products.
The Exchange will file a separate rule filing to establish fees for
NYSE Arca Agg Lite. The Exchange will announce the implementation date
of this proposed rule change by Trader Update, which, subject to the
effectiveness of this proposed rule change, will be no later than the
second quarter of 2024.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \4\ of the Act (``Act''), in general, and furthers
the objectives of Section 6(b)(5) \5\ of the Act, in particular, in
that it is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system and,
in general, to protect investors and the public interest, and it is not
designed to permit unfair discrimination among customers, brokers, or
dealers. This proposal is in keeping with those principles in that it
promotes increased transparency through the dissemination of NYSE Arca
Agg Lite to those interested in receiving it.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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The Exchange also believes this proposal is consistent with Section
6(b)(5) of the Act because it protects investors and the public
interest and promotes just and equitable principles of trade by
providing investors with new options for receiving market data as
requested by market data vendors and subscribers. The proposed rule
change would benefit investors by facilitating their prompt access to
the frequency-based depth of book information contained in the NYSE
Arca Agg Lite market data feed.
The Exchange also believes that the proposed rule change is
consistent with Section 11(A) of the Act \6\ in that it supports (i)
fair competition among brokers and dealers, among exchange markets, and
between exchange markets and markets other than exchange
[[Page 19382]]
markets and (ii) the availability of information with respect to
quotations for and transactions in securities to brokers, dealers, and
investors. Furthermore, the proposed rule change is consistent with
Rule 603 of Regulation NMS,\7\ which provides that any national
securities exchange that distributes information with respect to
quotations for or transactions in an NMS stock do so on terms that are
not unreasonably discriminatory. The NYSE Arca Agg Lite market data
feed would be accessed and subscribed to on a voluntary basis, in that
neither the Exchange nor market data vendors are required by any rule
or regulation to make this data available. Accordingly, vendors and
subscribers can discontinue their use at any time and for any reason.
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\6\ 15 U.S.C. 78k-1.
\7\ See 17 CFR 242.603.
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In adopting Regulation NMS, the Commission granted self-regulatory
organizations (``SROs'') and broker dealers increased authority and
flexibility to offer new and unique market data to consumers of such
data. It was believed that this authority would expand the amount of
data available to users and consumers of such data and also spur
innovation and competition for the provision of market data. The
Exchange believes that NYSE Arca Agg Lite is precisely the sort of
market data product that the Commission envisioned when it adopted
Regulation NMS. The Commission concluded that Regulation NMS would
itself further the Act's goals of facilitating efficiency and
competition:
Efficiency is promoted when broker-dealers who do not need the
data beyond the prices, sizes, market center identifications of the
NBBO and consolidated last sale information are not required to
receive (and pay for) such data. The Commission also believes that
efficiency is promoted when broker-dealers may choose to receive
(and pay for) additional market data based on their own internal
analysis of the need for such data.\8\
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\8\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (Regulation NMS Adopting
Release).
In addition, NYSE Arca Agg Lite removes impediments to and perfects
the mechanism of a free and open market and a national market system by
providing investors with alternative market data and would compete with
similar market data products currently offered by the four U.S.
equities exchanges operated by Cboe Exchange, Inc.--Cboe BZX Exchange,
Inc. (``BZX''), Cboe BYX Exchange, Inc. (``BYX''), Cboe EDGA Exchange,
Inc. (``EDGA''), and Cboe EDGX Exchange, Inc. (``EDGX''), each of which
offers a market data product called BZX Summary Depth, BYX Summary
Depth, EDGA Summary Depth and EDGX Summary Depth, respectively
(collectively, the ``Cboe Summary Depth'').\9\ Similar to Cboe Summary
Depth, NYSE Arca Agg Lite can be utilized by vendors and subscribers to
quickly access and distribute aggregated order book data. As noted
above, NYSE Arca Agg Lite, similar to Cboe Summary Depth, would provide
aggregated depth per security, including the bid, ask and share
quantity for orders received by NYSE Arca, except unlike Cboe Summary
Depth, which provides aggregated depth per security for up to five
price levels, NYSE Arca Agg Lite would provide aggregated depth per
security for up to ten price levels on both the bid and offer sides of
the NYSE Arca limit order book. The proposed market data product is
also similar to the NYSE Arca Integrated Feed,\10\ and Nasdaq
TotalView.\11\
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\9\ See BZX Rule 11.22(m) BZX Summary Depth; BYX Rule 11.22(k)
BYX Summary Depth; EDGA Rule 13.8(f) EDGA Summary Depth; and EDGX
Rule 13.8(f) EDGX Summary Depth. The Cboe Summary Depth offered by
BZX, BYX, EDGA and EDGX are each a data feed that offers aggregated
two-sided quotations for all displayed orders for up to five (5)
price levels and contains the individual last sale information,
market status, trading status and trade break messages.
\10\ The NYSE Arca Integrated Feed provides a real-time market
data in a unified view of events, in sequence, as they appear on the
NYSE Arca matching engine. The NYSE Arca Integrated Feed includes
depth of book order data, last sale data, and opening and closing
imbalance data, as well as security status updates (e.g., trade
corrections and trading halts) and stock summary messages. See also
Securities Exchange Act Release No. 65669 (November 2, 2011), 76 FR
69311 (November 8, 2011) (SR-NYSEArca-2011-78) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Offering a Market
Data Product to Vendors and Subscribers That Combines Three Existing
Market Data Feeds as Well as Additional Market Data From the
Exchange Into One Integrated Product, the NYSE Arca Integrated Data
Feed).
\11\ Nasdaq TotalView displays the full order book depth on
Nasdaq, including every single quote and order at every price level
in Nasdaq-, NYSE-, NYSE American- and regional-listed securities on
Nasdaq. See <a href="https://www.nasdaq.com/solutions/nasdaq-totalview?_bt=659478569450&_bk=totalview&_bm=b&_bn=g&_bg=144616828050&utm_term=totalview&utm_campaign=&utm_source=google&utm_medium=ppc&gclid=EAIaIQobChMIsZqiorTS_wIV2Y5bCh2xxQdUEAAYASAAEgKlyfD_BwE">https://www.nasdaq.com/solutions/nasdaq-totalview?_bt=659478569450&_bk=totalview&_bm=b&_bn=g&_bg=144616828050&utm_term=totalview&utm_campaign=&utm_source=google&utm_medium=ppc&gclid=EAIaIQobChMIsZqiorTS_wIV2Y5bCh2xxQdUEAAYASAAEgKlyfD_BwE</a>.
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The Exchange notes that the existence of alternatives to the
Exchange's proposed product, including real-time consolidated data,
free delayed consolidated data, and proprietary data from other
sources, as well as the continued availability of the Exchange's
separate data feeds, ensures that the Exchange is not unreasonably
discriminatory because vendors and subscribers can elect these
alternatives as their individual business cases warrant.
The NYSE Arca Agg Lite market data feed will help to protect a free
and open market by providing additional data to the marketplace and by
giving investors greater choices. In addition, the proposal would not
permit unfair discrimination because the data feed would be available
to all vendors and subscribers through both the LCN and IGN.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\12\ the Exchange
does not believe that the proposed rule change will impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of the Act. Because other exchanges already offer similar
products, the Exchange's proposed NYSE Arca Agg Lite will enhance
competition. The NYSE Arca Agg Lite will foster competition by
providing an alternative to similar products offered by other
exchanges, including the Cboe Summary Depth.\13\ The NYSE Arca Agg Lite
market data feed would provide investors with a new option for
receiving market data, which was a primary goal of the market data
amendments adopted by Regulation NMS.\14\ Thus, the Exchange believes
the proposed rule change is necessary to permit fair competition among
national securities exchanges.
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\12\ 15 U.S.C. 78f(b)(8).
\13\ See supra, note 9.
\14\ See supra, note 8, at 37503.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-4(f)(6) thereunder.\16\
Because the proposed rule change does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
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effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\17\
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\15\ 15 U.S.C. 78s(b)(3)(A)(iii).
\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \18\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\18\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<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#a4d6d1c8c189c7cbc9c9c1cad0d7e4d7c1c78ac3cbd2"><span class="__cf_email__" data-cfemail="a1d3d4cdc48cc2ceccccc4cfd5d2e1d2c4c28fc6ced7">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2024-22 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-NYSEARCA-2024-22. 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-NYSEARCA-2024-22 and should
be submitted on or before April 8, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-05629 Filed 3-15-24; 8:45 am]
BILLING CODE 8011-01-P
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