[Federal Register Volume 89, Number 187 (Thursday, September 26, 2024)]
[Notices]
[Pages 78948-78949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-22020]



[[Page 78948]]

-----------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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 www.nyse.com, 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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \5\ See The Nasdaq Stock Market LLC (``Nasdaq'') Equity 7 
Pricing Schedule, Section 112(b)(1) and Cboe Exchange, Inc. Fees 
Schedule.
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
    \8\ 15 U.S.C. 78k-1.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \9\ See note 5, supra.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \10\ See note 5, supra.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
---------------------------------------------------------------------------

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 (https://www.sec.gov/rules/sro.shtml); 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 (https://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 
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\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-22020 Filed 9-25-24; 8:45 am]
BILLING CODE 8011-01-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>