Notice2025-09180
Self-Regulatory Organizations; NYSE Texas, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Enhance the NYSE Texas Aggregated Lite Market Data Product
Primary source
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Published
May 22, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 98 (Thursday, May 22, 2025)</title>
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[Federal Register Volume 90, Number 98 (Thursday, May 22, 2025)]
[Notices]
[Pages 21968-21970]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-09180]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103054; File No. SR-NYSETEX-2025-11]
Self-Regulatory Organizations; NYSE Texas, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Enhance the NYSE
Texas Aggregated Lite Market Data Product
May 16, 2025.
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 May 13, 2025, the NYSE Texas, Inc. (``NYSE Texas'' 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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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to enhance the content of the NYSE Texas
Aggregated Lite market data product offering. 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 the NYSE Texas
Aggregated Lite market data product offering.
NYSE Texas Aggregated Lite is a NYSE Texas-only frequency-based
depth of book market data feed of the NYSE Texas'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 Plan or the Nasdaq/UTP Plan. NYSE Texas Aggregated
Lite is a compilation of limit order data that the Exchange provides to
vendors and subscribers. The NYSE Texas Aggregated Lite data feed is
updated no less frequently than once per second. The NYSE Texas
Aggregated Lite includes depth of book order data as well as security
status messages. The security status message informs subscribers of
changes in the status of a specific security, such as trading halts,
short sale restriction, etc.\4\
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\4\ See Securities Exchange Act Release No. 99691 (March 7,
2024), 89 FR 18468 (March 13, 2024) (SR-NYSECHX-2024-08) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To
Establish the NYSE Chicago Aggregated Lite Market Data Feed). On
March 28, 2025, NYSE Chicago, Inc. equities market became NYSE
Texas, Inc. Pursuant to the formation of NYSE Texas, Inc., NYSE
Chicago Aggregated Lite is now known as NYSE Texas Aggregated Lite.
See Securities Exchange Act Release No.102507 (February 28, 2025),
90 FR 11445 (March 6, 2025) (SR-NYSECHX-2025-01) (Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Repeal the
Exchange's Certificate of Incorporation; Adopt the Certificate of
Formation of NYSE Texas, Inc.; Amend the Exchange's By-Laws, Rules,
and Certain Fee Schedules; and Amend the Certificate of
Incorporation and By-Laws of the Exchange's Holding Company To
Reflect the Conversion of the Exchange to a Texas Corporation and
the Renaming of NYSE Chicago Holdings, Inc.).
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The Exchange proposes to include Auction Imbalance Information in
the NYSE Texas Aggregated Lite product in connection with the
introduction of auctions on NYSE Texas.\5\ In addition to the data
elements described above, the NYSE Texas Aggregated Lite data feed
would also include real-time order imbalances that accumulate prior to
the opening of trading on the Exchange, prior to any re-opening auction
after a halt, and prior to the close of trading on the Exchange.\6\ As
proposed, an enhanced NYSE Texas Aggregated Lite data feed would
contain aggregate information about orders that are subject to
execution at the market's opening or closing price, as the case may be,
and would represent issues that are likely to be of particular trading
interest at the opening or closing. The NYSE Texas Aggregated Lite
market data product would provide Auction Imbalance Information with
respect to all symbols listed on the Exchange.
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\5\ See SR-NYSETEX-2025-08 (Proposed Rule Change to Adopt Rule
7.35 Regarding Auctions). NYSE Texas Rule 7.35(a)(4) defines Auction
Imbalance Information as the information disseminated by the
Exchange for an auction. As set forth in NYSE Texas Rule 7.35,
Auction Imbalance information includes, if applicable, the Total
Imbalance, Market Imbalance, Indicative Match Price and Matched
Volume, each as defined in NYSE Texas Rule 7.35(a).
\6\ NYSE Texas order imbalance information is not currently
available through any of the Exchange's current data feeds as NYSE
Texas does not currently provide for the operation of auctions.
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The Exchange will announce the date that an enhanced NYSE Texas
Aggregated Lite data feed will be available through a Trader Update.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \7\ of the
Act, in general, and furthers the objectives of Section 6(b)(5) \8\ 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.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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The Exchange believes the proposal would facilitate transactions in
securities, remove impediments to and perfect the mechanism of a free
and open market and a national market system by providing market
participants an additional means to access information about order
imbalance data disseminated by the Exchange. The proposal would improve
the content included in the NYSE Texas Aggregated Lite data feed and
provide investors with an additional option for accessing information
that may help to inform their trading decisions. The proposed inclusion
of order imbalance data in the NYSE Texas Aggregated Lite data feed
would also be consistent with the data feeds offered by the Exchange's
affiliates, New York Stock Exchange, LLC (``NYSE''), NYSE Arca, Inc.
(``NYSE
[[Page 21969]]
Arca'') and NYSE American, LLC (``NYSE American''),\9\ and with a data
feed offered by the Nasdaq Stock Market LLC (``Nasdaq''),\10\ all of
which provide order imbalance information with respect to symbols
listed on each of those exchanges.
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\9\ See Securities Act Release Nos. 99689 (March 7, 2024), 89 FR
18466 (March 13, 2024) (SR-NYSE-24-12) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Establish the
NYSE Aggregated Lite Market Data Feed); 99690 (March 7, 2024), 89 FR
18445 (March 13, 2024) (SR-NYSEAMER-2024-14) (Notice of Filing and
Immediate Effectiveness of Proposed Change To Establish the NYSE
American Aggregated Lite Market Data Feed); and 99713 (March 12,
2024), 89 FR 19381 (March 18, 2024) (SR-NYSEARCA-2024-22) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To
Establish the NYSE Arca Aggregated Lite Market Data Feed).
\10\ See Nasdaq TotalView, <a href="https://data.nasdaq.com/databases/NTV">https://data.nasdaq.com/databases/NTV</a>
(displays the full order book depth for Nasdaq market participants
and also disseminates the Net Order Imbalance Indicator (NOII) for
the Nasdaq Opening and Closing Crosses and Nasdaq IPO/Halt Cross).
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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. The Exchange believes
that the data product modification proposed herein, the inclusion of
order imbalance data, is precisely the sort of market data product
enhancement 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:
[E]fficiency 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.\11\
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\11\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (``Regulation NMS Adopting
Release'').
By removing ``unnecessary regulatory restrictions'' on the ability
of exchanges to sell their own data, Regulation NMS advanced the goals
of the Act and the principles reflected in its legislative history.
The Exchange notes that the existence of alternatives to the
Exchange's product, including real-time consolidated data, free delayed
consolidated data, and proprietary data from other sources, ensures
that the Exchange is not unreasonably discriminatory because vendors
and subscribers can elect these alternatives as their individual
business cases warrant.
Lastly, the proposal would not permit unfair discrimination because
the enhanced product would be available to all of the Exchange's
vendors and subscribers on an equivalent basis at no cost as the
Exchange currently does not charge a fee for subscribing to the NYSE
Texas Aggregated Lite data feed.
B. Self-Regulatory Organization's Statement on Burden on Competition
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. Rather, the proposal would
enhance competition by enabling the Exchange to better compete with the
Exchange's affiliates, NYSE, NYSE American and NYSE Arca, and with
Nasdaq, all of which offer a similar product that includes order
imbalance data for symbols listed on each of those exchanges.\12\
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\12\ See notes 9-10, supra.
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The market for proprietary data products is currently competitive
and inherently contestable because there is fierce competition for the
inputs necessary to the creation of proprietary data. Numerous
exchanges compete with each other for listings, trades, and market data
itself, providing virtually limitless opportunities for entrepreneurs
who wish to produce and distribute their own market data. This
proprietary data is produced by each individual exchange, as well as
other entities (such as internalizing broker-dealers and various forms
of alternative trading systems, including dark pools and electronic
communication networks), in a vigorously competitive market. It is
common for market participants to further and exploit this competition
by sending their order flow and transaction reports to multiple
markets, rather than providing them all to a single market.
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.
D. 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 \13\ and Rule 19b-4(f)(6) thereunder.\14\
Because the proposed rule change does not (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \15\ and Rule
19b-4(f)(6)(iii) thereunder.\16\
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\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6).
\15\ 15 U.S.C. 78s(b)(3)(A)(iii).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has fulfilled this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\18\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
believes that waiver of the 30-day operative delay would allow the
Exchange to implement the proposed changes as soon as the technology
associated with the proposed changes is available, which is anticipated
to be less than 30 days from the date of this filing.\19\ The
Commission believes that waiver of the operative delay would be
consistent with the protection of investors and the public interest
because this proposed rule change does not present any novel issues and
it would provide investors with an
[[Page 21970]]
additional option for accessing potentially helpful information that
could inform their trading decisions as soon as the technology related
to the enhancement of the NYSE Texas Aggregated Lite data feed is
implemented. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposed rule change as operative
upon filing.\20\
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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6)(iii).
\19\ See note 6, supra.
\20\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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#83f1f6efe6aee0eceeeee6edf7f0c3f0e6e0ade4ecf5"><span class="__cf_email__" data-cfemail="f785829b92da94989a9a92998384b7849294d9909881">[email protected]</span></a>. Please include
file number SR-NYSETEX-2025-11 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-NYSETEX-2025-11. 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-NYSETEX-2025-11 and should
be submitted on or before June 12, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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\21\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-09180 Filed 5-21-25; 8:45 am]
BILLING CODE 8011-01-P
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