Notice2024-22020
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca 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
September 26, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 187 (Thursday, September 26, 2024)</title>
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[Federal Register Volume 89, Number 187 (Thursday, September 26, 2024)]
[Notices]
[Pages 78948-78949]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-22020]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101127; File No. SR-NYSEARCA-2024-80]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE
Arca Options Proprietary Market Data Fee Schedule
September 20, 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 September 16, 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 amend the NYSE Arca Options Proprietary
Market Data Fee Schedule (``Fee Schedule'') applicable to various
market data products. 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.
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 applicable to
various market data products. More specifically, the Exchange proposes
to adopt a free trial program for NYSE Arca options market data
products, effective September 16, 2024.\4\
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\4\ The Exchange originally filed to amend the Fee Schedule on
September 3, 2024 (SR-NYSEARCA-2024-73). SR-NYSEARCA-2024-73 was
subsequently withdrawn and replaced by this filing.
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The Exchange proposes a one-month free trial for any firm that
subscribes to a particular NYSE Arca options market data product for
the first time. As proposed, a first-time subscriber would be any firm
that has not previously subscribed to a particular NYSE Arca options
market data product listed on the Fee Schedule. As proposed, a first-
time subscriber of a particular NYSE Arca options market data product
would not be charged the Access Fee, Non-Display Fee, any applicable
Professional and Non-Professional User Fee, and Redistribution Fee for
that product for one calendar month. For example, a firm that currently
subscribes to the Arca Options Complex would be eligible to receive a
free one-month trial of the Arca Options Product, whether in a display-
only format or for non-display use. On the other hand, a firm that
currently pays an Access Fee and receives the Arca Options Product for
non-display use would not be eligible to receive a free one-month trial
of the Arca Options Product in a display-only format. The proposed free
trial would be for the first full calendar month following the date a
subscriber is approved to receive trial access to the particular NYSE
Arca options market data product. The Exchange would provide the one-
month free trial for each particular product to each subscriber once.
The Exchange believes that providing a one-month free trial to
Exchange real-time market data products listed on the Fee Schedule
would enable potential subscribers to determine whether a particular
NYSE Arca options market data product provides any benefit to their
business models before fully committing to expend development and
implementation costs related to the receipt of that product, and is
intended to encourage increased use of the Exchange's market data
products by defraying some of the development and implementation costs
subscribers would ordinarily have to expend before using a product. The
Exchange notes that other exchanges have similar free trial
programs.\5\
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\5\ See The Nasdaq Stock Market LLC (``Nasdaq'') Equity 7
Pricing Schedule, Section 112(b)(1) and Cboe Exchange, Inc. Fees
Schedule.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\6\ in general, and
furthers the objectives of Section 6(b)(4),\7\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its members and other recipients of
Exchange data. In addition, the Exchange believes that the proposed
rule change is consistent with Section 11(A) of the Act as it supports
(i) fair competition among brokers and dealers, among exchange markets,
and between exchange markets and markets other than exchange markets,
and (ii) the availability to brokers, dealers, and investors of
information with respect to quotations for and transactions in
securities.\8\
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\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
\8\ 15 U.S.C. 78k-1.
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The Exchange believes that the proposed rule change to provide
Exchange real-time market data products listed on the Fee Schedule to
new customers free-of-charge for their first subscription month is
reasonable because it would allow vendors and subscribers to become
familiar with the feeds and determine whether they suit their needs
without incurring fees. It is also intended to incentivize
Redistributors to enlist more subscribers to subscribe to Exchange
market data products to broaden the products' distribution. Making a
new market data product available for free for a trial period is
consistent with offerings of other exchanges. As noted above, other
exchanges offer new subscribers a similar waiver of market data
fees.\9\
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\9\ See note 5, supra.
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The Exchange believes the proposal to provide Exchange real-time
market data products listed on the Fee Schedule to new customers free-
of-charge for their first subscription month is equitable because the
free trial would apply to any first-time subscriber, regardless of the
use they plan to make of the feed. As proposed, any first-time
subscriber would not be charged the Access Fee, Non-Display Fee, any
applicable Professional and Non-Professional User Fee, or
Redistribution Fee for any of the real-time market data products listed
on the Fee Schedule for one calendar month. The Exchange believes it is
equitable to restrict the availability of this one-month free trial to
customers that have not previously subscribed to any Exchange real-time
market data product, since customers who are current or previous
subscribers are
[[Page 78949]]
already familiar with the products and whether they would suit their
needs.
The Exchange believes that the proposed rule change to provide for
a one-month free trial period to test is not unfairly discriminatory
because the financial benefit of the fee waiver would be available to
all firms subscribing to the Exchange's real-time market data products
for the first time on a free-trial basis. The Exchange believes there
is a meaningful distinction between customers that are subscribing to a
market data product for the first time, who may benefit from a period
within which to set up and test use of the product before it becomes
fee liable, and users that are already receiving the Exchange's market
data products. The Exchange believes that the limited period of the
free trial would not be unfairly discriminatory to other users of the
Exchange's market data products because it is designed to provide a
reasonable period of time to set up and test a new market data product.
The Exchange further believes that providing a free trial for one
calendar month would ease administrative burdens for data recipients to
subscribe to a new data product and eliminate fees for a period before
such users are able to derive any benefit from the data.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
operates in a highly competitive environment, and its ability to price
these data products is constrained by competition among exchanges that
offer similar data products to their customers. The Exchange believes
that the proposed free trial program does not put any market
participants at a relative disadvantage compared to other market
participants. As discussed, the proposed trial would apply to first
time subscribers on an equal and non-discriminatory basis. Further, the
Exchange believes that the proposed program does not impose a burden on
competition on other SROs that is not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
that the proposal would cause any unnecessary or inappropriate burden
on intermarket competition as other exchanges are free to lower their
prices or provide a free trial to better compete with the Exchange's
offering. Indeed, other national securities exchanges already offer
similar free trial programs today.\10\ The proposed rule change is also
designed to enhance competition by providing an incentive to
Redistributors to enlist new subscribers to subscribe to Exchange's
real-time market data products.
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\10\ See note 5, supra.
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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 foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A) \11\ of the Act and paragraph (f) [sic]
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.
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\11\ 15 U.S.C. 78s(b)(3)(A).
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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#0173746d642c626e6c6c646f7572417264622f666e77"><span class="__cf_email__" data-cfemail="abd9dec7ce86c8c4c6c6cec5dfd8ebd8cec885ccc4dd">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2024-80 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-2024-80. 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-2024-80 and should
be submitted on or before October 17, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-22020 Filed 9-25-24; 8:45 am]
BILLING CODE 8011-01-P
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