[Federal Register Volume 86, Number 180 (Tuesday, September 21, 2021)]
[Notices]
[Pages 52505-52508]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-20331]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93000; File No. SR-NYSE-2021-51]


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

September 15, 2021.
    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 September 3, 2021, 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, 
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 content of the NYSE Best Quote & 
Trades (``NYSE BQT'') data feed to identify the current day 
consolidated high and low prices. The proposed rule change is available 
on the Exchange's website at www.nyse.com, 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 high and low price 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 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

[[Page 52506]]

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 the transaction was executed.
    Now, in addition to the information currently provided in NYSE BQT, 
the Exchange proposes to include the current day consolidated high and 
low price for all listed equity securities as obtained directly from 
the securities information processors (``SIPs''). The consolidated high 
and low price for all equity securities would be disseminated via NYSE 
BQT after the Consolidated Tape Association (``CTA'') and Unlisted 
Trading Privileges (``UTP'') Plan SIP delay period, which is currently 
15 minutes. Such information would provide NYSE BQT users with a static 
benchmark against which to compare price movements shown on NYSE BQT 
using high and low prices in the consolidated market. The Exchange's 
proposal is in response to requests by subscribers using NYSE BQT, and 
also to recent changes by a competitor exchange to its end of day 
messages.\15\
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    \15\ See Securities Exchange Act No. 92301 (June 30, 2021), 86 
FR 35845 (July 7, 2021) (SR-CboeBYX-2021-014).
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    The NYSE BQT data feed is offered in a capacity similar to that of 
a vendor.[16] The Exchange, NYSE Arca, NYSE American, NYSE 
National and NYSE Chicago are the exclusive distributors of the 10 BBO 
and Trades feeds \17\ from which certain data elements is taken to 
create the 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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    \[16]\ [The Commission notes that its order approving the 
exchange's proposal to offer the NYSE BQT feed states that the 
Commission believes that ``a data feed offered by an exchange that 
contains that exchange's own market data (including a feed that also 
contains data from other exchanges) is a `material aspect of the 
operation of the facilities of the self-regulatory organization,' 
and that therefore, such a data product and any related fees are 
subject to the rule filing process of Section 19(b) of the Act.'' 
Securities Exchange Act Release No. 73554 (Nov. 6, 2014), 79 FR 
67491, 67494 (Nov. 13, 2014) (SR-NYSE-2014-40).]
    \17\ These other 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 proposes that this change become operative on October 
18, 2021. The Exchange is not proposing any change to the fees for NYSE 
BQT as a result of this modification.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) \18\ of the Act (``Act''), in general, and furthers 
the objectives of Section 6(b)(5) \19\ 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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    \18\ 15 U.S.C. 78f(b).
    \19\ 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 \20\ 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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    \20\ 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,\21\ 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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    \21\ 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 high and low price 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 high and low prices in the 
consolidated market. Therefore, the consolidated high and low 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

[[Page 52507]]

information. As noted above, another exchange currently provides 
consolidated high and low price information in their competing market 
data products.\22\ 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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    \22\ See, note 15, 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,\23\ 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 high and low price as part of NYSE BQT, 
thereby enabling it to better compete with similar market data products 
offered by another exchange that includes such information.\24\ 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 high and low price for all listed 
equity securities. The Exchange is not the exclusive distributor of the 
consolidated high and low 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 high and low 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.\25\
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    \23\ 15 U.S.C. 78f(b)(8).
    \24\ See, note 15, supra.
    \25\ See CTA Consolidated Volume Display Policy with FAQ at 
https://www.ctaplan.com/publicdocs/ctaplan/notifications/traderupdate/CTA%20Consolidated%20Volume%20Policy%20FAQ.pdf.
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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 high and low 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 \26\ and Rule 19b-4(f)(6) thereunder.\27\ 
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 \28\ and Rule 
19b-4(f)(6)(iii) thereunder.\29\
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    \26\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \27\ 17 CFR 240.19b-4(f)(6).
    \28\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \29\ 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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    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) \30\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \30\ 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

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2021-51 on the subject line.

Paper Comments

     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-2021-51. 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 (http://www.sec.gov/rules/sro.shtml). 
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 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish

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to make available publicly. All submissions should refer to File Number 
SR-NYSE-2021-51 and should be submitted on or before October 12, 2021.
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    \31\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\31\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-20331 Filed 9-20-21; 8:45 am]
BILLING CODE 8011-01-P


