Notice2025-10197
Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Enhance the Content of the NYSE Pillar Depth Market Data Product
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
June 5, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 107 (Thursday, June 5, 2025)</title>
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[Federal Register Volume 90, Number 107 (Thursday, June 5, 2025)]
[Notices]
[Pages 23974-23977]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-10197]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103160; File No. SR-NYSE-2025-18]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Enhance the Content of the NYSE Pillar Depth Market Data Product
May 30, 2025.
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 May 22, 2025, 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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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 Pillar
Depth market data product. 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
[[Page 23975]]
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 Pillar
Depth market data product. NYSE Pillar Depth (``Pillar Depth'') is a
data feed consisting of certain data elements from five market data
feeds--NYSE Aggregated Lite, NYSE American Aggregated Lite, NYSE Arca
Aggregated Lite, NYSE National Aggregated Lite and NYSE Texas
Aggregated Lite.\4\ The Pillar Depth data feed is a frequency-based
depth of book market data feed that provides a consolidated view of the
ten (10) best price levels on both the bid and offer sides across the
NYSE Group's combined limit order books for securities traded on the
NYSE Group equities markets, i.e., NYSE, NYSE American LLC (``NYSE
American''), NYSE Arca, Inc. (``NYSE Arca''), NYSE National, Inc.
(``NYSE National'') and NYSE Texas, Inc. (``NYSE Texas''), for which
the NYSE Group equities markets report quotes and trades under the
Consolidated Tape Association Plan or the Nasdaq/UTP Plan. In other
words, Pillar Depth is a compilation of limit order data that the
Exchange provides to vendors and subscribers. The Pillar Depth data
feed is updated no less frequently than once per second. In addition to
depth of book order data, Pillar Depth also includes security status
messages. The security status message informs vendors and subscribers
of changes in the status of a specific security, such as trading halts,
short sale restriction, etc. In addition, Pillar Depth publishes
imbalance messages no less frequently than once per second during
auctions to update price and volume information, prior to the opening
and closing of trading on NYSE, NYSE American and NYSE Arca.
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\4\ See Securities Exchange Act Release No. 100030 (April 25,
2024), 89 FR 35260 (May 1, 2024) (SR-NYSE-2024-24) (Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Establish the
NYSE Pillar Depth 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 enhance Pillar Depth by including Auction
Imbalance Information in the NYSE Pillar Depth data feed in connection
with the introduction of auctions on NYSE Texas.\5\ In addition to the
data elements described above, the NYSE Pillar Depth data feed would
also include real-time order imbalances that accumulate prior to the
opening of trading on NYSE Texas, prior to any re-opening auction after
a halt, and prior to the close of trading on NYSE Texas.\6\ As
proposed, an enhanced Pillar Depth data feed would contain aggregate
information about orders that are subject to execution at NYSE Texas'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 Pillar Depth data feed would provide Auction
Imbalance Information with respect to all symbols listed on NYSE Texas.
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\5\ See Securities Exchange Act Release No. 103039 (May 13,
2025), 90 FR 21369 (May 19, 2025) (SR-NYSETEX-2025-08) (Proposed
Rule Change to Adopt Rule 7.35 and Amend Rule 7.31). NYSE Texas Rule
7.35(a)(4) defines Auction Imbalance Information as the information
disseminated by NYSE Texas 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 NYSE Group'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 Pillar Depth
data feed will be available through a Trader Update.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \7\ of the Act (``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. This proposal is in keeping with those principles in that it
promotes increased transparency through the dissemination of Pillar
Depth to those interested in receiving it.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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The Pillar Depth 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 Pillar Depth; this is a process that a vendor could also
perform. Accordingly, the Exchange is not the only distributor of the
Pillar Depth data feed.
The Exchange believes that the proposed rule change is consistent
with Rule 603 of Regulation NMS,\9\ 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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\9\ 17 CFR 242.603.
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In addition, Pillar Depth 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 Cboe One Feed.\10\ Similar to Cboe
One Premium Feed, Pillar
[[Page 23976]]
Depth can be utilized by vendors and subscribers to quickly access and
distribute aggregated order book data. As noted above, Pillar Depth,
similar to Cboe One Premium Feed, provides aggregated depth per
security, including the bid, ask and share quantity for orders received
by the NYSE Group markets, except unlike Cboe One Premium Feed, which
provides aggregated depth per security for up to five (5) price levels,
Pillar Depth provides a consolidated view of the ten (10) best price
levels on both the bid and offer sides across the NYSE Group's combined
limit order books for securities traded on the NYSE Group equities
markets.
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\10\ See BZX Rule 11.22(j); BYX Rule 11.22(i); EDGA Rule
13.8(b); and EDGX Rule 13.8(b). The Cboe One Feed offered by BZX,
BYX, EDGA and EDGX is a data feed that contains the aggregate best
bid and offer of all displayed orders for securities traded on the
Cboe exchanges. The Cboe One Feed also contains the individual last
sale information, consolidated volume, the primary listing market's
official opening and closing price, and the current day consolidated
high and low price for all listed equity securities. Cboe One Feed
recipients may also elect to receive aggregated two-sided quotations
from the Cboe exchanges for five (5) price levels (``Cboe One
Premium Feed'').
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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, 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. Additionally, the Exchange has taken
into consideration its affiliated relationship with NYSE Arca, NYSE
American, NYSE National and NYSE Texas in its design of the Pillar
Depth data feed to assure that similarly situated competing vendors
would be able to offer a similar product on the same terms as the
Exchange, both from the perspective of latency and cost.
Therefore, the Exchange believes that the proposed rule change is
consistent with Section 6(b) \11\ of the Act, in general, and furthers
the objectives of Section 6(b)(5) \12\ of the Act, in particular, in
that it is designed 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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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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As noted above, Pillar Depth offers an alternative to the use of
consolidated data products and proprietary data products such as the
Cboe One Premium Feed offered by BZX, BYX, EDGX and EDGA. As such, the
Exchange believes that Pillar Depth offers a competitive alternative to
the market data products currently offered by the Cboe family of
exchanges.
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 additional cost as
the Exchange is not proposing any change to the fees for subscribing to
the Pillar Depth 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. The Exchange believes that
the proposed rule change will enhance competition because it would
enable the Exchange to include NYSE Texas order imbalance information
in the Pillar Depth data feed, thereby enabling it to better compete
with market data products offered by Cboe.\13\ As noted above, the
Exchange already offers Pillar Depth and this proposed rule change
simply amends the content of the current market data product to include
data elements from one additional data feed from the Exchange's
affiliate, NYSE Texas. Although the Exchange, NYSE Arca, NYSE American,
NYSE National and NYSE Texas are the exclusive distributors of the five
Aggregated Lite data feeds from which certain data elements are taken
to create Pillar Depth, the Exchange is not the exclusive distributor
of the aggregated and consolidated information that would compose the
amended Pillar Depth data feed. Vendors are able, if they chose, to
create a data feed with the same information as Pillar Depth and
distribute it to their clients on a level-playing field with respect to
latency and cost as compared to the Exchange's product.
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\13\ See note 10, supra.
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The Exchange believes that Pillar Depth will continue to promote
competition among exchanges by offering an alternative to the Cboe One
Premium Feed. For these reasons, the Exchange believes that Pillar
Depth will continue to promote, rather than unnecessarily or
inappropriately burden, competition for market data products that are
offered in the capacity as a vendor and are not core exchange market
data products. 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.
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 \14\ and Rule 19b-4(f)(6) thereunder.\15\
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 \16\ and Rule 19b-
4(f)(6)(iii) thereunder.\17\
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\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 17 CFR 240.19b-4(f)(6).
\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 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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A proposed rule change filed under Rule 19b-4(f)(6) \18\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\19\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing.
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\18\ 17 CFR 240.19b-4(f)(6).
\19\ 17 CFR 240.19b-4(f)(6)(iii).
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[[Page 23977]]
The Exchange has represented that the technology associated with
the proposed changes is anticipated to be available less than 30 days
from the date of this filing. The Exchange believes that waiving the
operative delay would be consistent with the protection of investors
and the public interest because an enhanced data feed would improve the
content included in the Pillar Depth data feed and provide investors
with an additional option for accessing information that may help to
inform their trading decisions, and thereby serve the public interest.
The Commission agrees that making the enhanced data available
earlier could serve the public interest by making available additional
information that may help inform their trading decisions. Accordingly,
the Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
Accordingly, the Commission hereby waives the 30-day operative delay
and designates the proposal operative upon filing.\20\
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\20\ For purposes only of waiving the 30-day operative delay,
the Commission 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 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) \21\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\21\ 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#d6a4a3bab3fbb5b9bbbbb3b8a2a596a5b3b5f8b1b9a0"><span class="__cf_email__" data-cfemail="98eaedf4fdb5fbf7f5f5fdf6ecebd8ebfdfbb6fff7ee">[email protected]</span></a>. Please include
file number SR-NYSE-2025-18 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-2025-18. 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-2025-18 and should be
submitted on or before June 26, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12).
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Stephanie J. Fouse,
Assistant Secretary.
[FR Doc. 2025-10197 Filed 6-4-25; 8:45 am]
BILLING CODE 8011-01-P
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