Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices 67491 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 72750 

(August 4, 2014), 79 FR 46494. 

4See Letter from Ira D. Hammerman, General 

Counsel, SIFMA, to Kevin M. O’Neill, Deputy 

Secretary, Commission, dated August 28, 2014 

(‘‘SIFMA Letter’’). 

5See Letter from Martha Redding, Chief Counsel, 

NYSE, dated October 31, 2014 (‘‘NYSE Letter’’). 

6See Securities Exchange Act Release No. 73137, 

79 FR 57160 (Nov. 24, 2014). 

7 In Amendment No. 1, the Exchange modified 

the proposal to (i) remove language proposing 

specific fee amounts for NYSE BQT, (ii) clarify that 

it intended to propose fees that would be no lower 

than the cost to a vendor of creating a comparable 

product, including the costs of the underlying 

feeds, and (iii) represent that it would not offer 

NYSE BQT until after the proposal has been 

approved by the Commission, the Exchange has 

filed fees for NYSE BQT with the Commission, and 

such fees have become effective. The Commission 

notes that the Exchange submitted a comment letter 

attaching Amendment No. 1 on October 31, 2013, 

and, consequently, Amendment No. 1 is available 

in the public comment file for SR–NYSE–2014–40 

on the Commission’s Web site. 

The Exchange has represented that it does not 

currently offer the NYSE BQT data feed. 

8NYSE BBO, NYSE Arca BBO, and NYSE MKT 

BBO are existing data feeds that distribute on a realtime basis the same BBO information that NYSE, 

NYSE Arca, and NYSE MKT, 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, and NYSE MKT Trades are existing data 

feeds that distribute on a real-time basis the same 

last sale information that NYSE, NYSE Arca, and 

NYSE MKT, respectively, report under the 

Consolidated Tape Association (‘‘CTA’’) Plan for 

inclusion in the CTA Plan’s consolidated data 

streams. 

9The ‘‘securities information processor plans’’ 

refer to the CTA Plan and Nasdaq UTP Plan. See 

Telephone conversations between Leah Mesfin, 

Special Counsel, Division of Trading and Markets, 

Commission, and Marija Willen, Chief Counsel of 

NYSE Group Inc., NYSE (July 30, 2014 and Nov. 6, 

2014). 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NYSEArca–2014–14, and should be 

submitted on or before December 4, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–26842 Filed 11–12–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73553; File No. SR–NYSE– 

2014–40] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; 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 & Trades Data Feed 

November 6, 2014. 

I. Introduction 

On July 21, 2014, New York Stock 

Exchange LLC (‘‘NYSE’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

establish the NYSE Best Quote & Trades 

(‘‘NYSE BQT’’) data feed. The NYSE 

BQT data feed would provide a unified 

view of best bid and offer (‘‘BBO’’) and 

last sale information for the Exchange 

and its affiliates, NYSE Arca Equities, 

Inc. (‘‘NYSE Arca’’) and NYSE MKT 

LLC (‘‘NYSE MKT’’). The proposed rule 

change was published for comment in 

the Federal Register on August 8, 2014.3

Two comment letters on the proposal 

have been received: One letter opposing 

the proposal,4 and a letter from the 

Exchange responding to the opposing 

comment letter.5 On September 18, 

2014, the Commission extended the 

time to act on the proposal until 

November 6, 2014.6 On October 31, 

2014, the Exchange filed Amendment 

No. 1 to the proposed rule change.7 The 

Commission is publishing this Notice 

and Order to solicit comment on 

Amendment No. 1 and to approve the 

proposed rule change, as modified by 

Amendment No. 1, on an accelerated 

basis. 

II. Description of the Proposal 

The Exchange proposes to establish 

the NYSE BQT data feed, a data feed 

consisting of certain data elements from 

six existing market data feeds: NYSE 

Trades, NYSE BBO, NYSE Arca Trades, 

NYSE Arca BBO, NYSE MKT Trades, 

and NYSE MKT BBO.8 The NYSE BQT 

data feed would have three channels: 

One channel for the last sale data (the 

‘‘last sale channel’’); another channel for 

the BBO data (the ‘‘best quotes 

channel’’); and a third channel for 

consolidated volume data (the 

‘‘consolidated volume channel’’). 

The last sale channel would provide 

an aggregation of the same data that is 

available through NYSE Trades, NYSE 

Arca Trades, and NYSE MKT Trades. 

The best quotes channel would 

provide the ‘‘NYSE BQT BBO,’’ which 

would be the best quote from among the 

NYSE BBO, NYSE Arca BBO, and NYSE 

MKT BBO based on the following 

criteria, in order: 

• Price—the exchange with the 

highest bid or the lowest offer would 

have overall priority; 

• Size—the largest size would take 

precedence when multiple exchanges 

submit the same bid or offer price; and 

• Time—the earliest time would take 

precedence when multiple exchanges 

submit the same bid or offer price with 

the same sizes. 

For each security, the best quotes 

channel would only include one best 

bid and one best offer from among the 

three exchanges. The NYSE BQT BBO 

would be marked with a market center 

ID identifying the exchange from which 

the BBO originated. For example, if XYZ 

stock were traded on both NYSE and 

NYSE Arca, and the highest bid and 

lowest offer according to the NYSE BBO 

were 1,000 shares at $10.00 and 1,000 

shares at $10.03, respectively, and the 

highest bid and lowest offer for XYZ 

stock according to the NYSE Arca BBO 

were 1,200 shares at $9.99 and 900 

shares at $10.02, respectively, then the 

NYSE BQT data feed would generate the 

best bid for XYZ stock as 1,000 shares 

at $10.00 on NYSE and the best offer as 

900 shares at $10.02 on NYSE Arca. 

The consolidated volume channel 

would carry consolidated volume for all 

listed equities, which the Exchange 

would obtain from the securities 

information processors and then 

distribute in a manner consistent with 

the requirements for redistributing such 

data as set forth in the securities 

information processor plans.9

The NYSE BQT data feed would also 

provide related data elements, such as 

trade and security status updates (e.g., 

trade corrections and trading halts), that 

are contained in the NYSE Trades, 

NYSE Arca Trades, and NYSE MKT 

Trades feeds. 

The Exchange proposes to offer the 

NYSE BQT data feed through the 

Exchange’s Secure Financial 

Transaction Infrastructure (‘‘SFTI’’) 

network and market data vendors, as the 

Exchange does with its other proprietary 

market data products. 

The Exchange has stated that it 

believes that the NYSE BQT data feed 

would provide high-quality, 

comprehensive last sale and BBO data 

for the Exchange, NYSE Arca, and NYSE 

MKT in a unified view and would 

respond to subscriber demand for such 

a product. The Exchange anticipates 

that an end user might use the NYSE 


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10 17 CFR 242.603(c). 

11See NYSE Letter at 2. 

12See SIFMA Letter and NYSE Letter, supra notes 

4 and 5. 

BQT data feed to identify indicative 

prices for Tape A, B, and C securities 

through leveraging the depth and 

breadth of NYSE, NYSE Arca, and NYSE 

MKT without having to purchase 

consolidated data, and thus the 

Exchange believes that the NYSE BQT 

data feed would not be a latencysensitive product. The Exchange does 

not anticipate that an end user would, 

or could, use the NYSE BQT data feed 

for purposes of making order-routing or 

trading decisions. Rather, the Exchange 

has noted that, under Rule 603 of 

Regulation NMS, the NYSE BQT data 

feed could not be substituted for 

consolidated data in all instances in 

which consolidated data is used and 

that certain subscribers would still be 

required to purchase consolidated data 

for trading and order-routing 

purposes.10

While NYSE, NYSE Arca, and NYSE 

MKT are the exclusive distributors of 

the six BBO and Trades feeds from 

which certain data elements would be 

taken to create the NYSE BQT data feed, 

the Exchange has stated that NYSE 

would not be the exclusive distributor 

of the aggregated and consolidated 

information that would compose the 

proposed NYSE BQT data feed. The 

Exchange has represented that it would 

not have any unfair advantage over 

competing vendors with respect to 

obtaining data from NYSE, NYSE Arca, 

and NYSE MKT. In recognition that the 

Exchange is the source of its own 

market data and is affiliated with NYSE 

Arca and NYSE MKT, the Exchange has 

represented that it will continue to 

make available all of the individual 

underlying feeds 11 and that the source 

of the market data it would use to create 

the proposed NYSE BQT data feed is the 

same as the source available to other 

vendors. The Exchange has also 

represented that other vendors would be 

able to create a data feed with the same 

information as proposed for inclusion in 

the NYSE BQT data feed and to 

distribute it to clients with no greater 

latency than the Exchange would be 

able to distribute the NYSE BQT data 

feed. In addition, the Exchange has 

represented that the prices the Exchange 

would charge clients for the NYSE BQT 

data feed would not be lower than the 

cost to a vendor of creating a 

comparable product, including the cost 

of receiving the underlying data feeds. 

Thus, the Exchange has stated, the 

proposed NYSE BQT data feed would be 

a data product that a competing vendor 

could create and sell without being in 

a disadvantaged position relative to the 

Exchange. 

With respect to latency, the Exchange, 

NYSE Arca, and NYSE MKT are located 

in the same data center in Mahwah, 

New Jersey. The system creating and 

supporting the proposed NYSE BQT 

data feed would need to obtain the six 

underlying data feeds from these three 

exchanges before it could aggregate and 

consolidate information to create the 

NYSE BQT data feed and then distribute 

it to end users. After creating the NYSE 

BQT data feed, the Exchange would 

distribute this data feed through SFTI 

and market data vendors. The Exchange 

also offers third parties access to its data 

center through co-location. Accordingly, 

a competing market data vendor 

wishing to offer a product similar to the 

NYSE BQT data feed would be able to 

co-locate at the Exchange’s Mahwah, 

New Jersey facility and obtain the six 

underlying data feeds. 

The Exchange has represented that it 

has designed the NYSE BQT data feed 

so that it would not have a competitive 

advantage over a competing vendor with 

respect to the speed of access to those 

six underlying data feeds. Likewise, the 

Exchange has represented that the NYSE 

BQT data feed would not have a speed 

advantage vis-a`-vis competing vendors 

co-located in the data center with 

respect to access to end-user customers, 

whether those end users are also colocated or not. The Exchange also has 

represented that the path for 

distribution by the Exchange of the 

NYSE BQT data feed would not be faster 

than that for distribution by a vendor 

that independently created a product 

like the NYSE BQT data feed. The 

Exchange therefore believes that a 

market data vendor could perform the 

aggregation and consolidation function 

in the Mahwah facility and redistribute 

a competing product from that location 

to similarly situated customers on a 

level playing field with respect to the 

speed that the Exchange could create 

and redistribute the NYSE BQT data 

feed. 

With respect to cost, the Exchange has 

stated that it will file a separate rule 

filing to establish the fees for the NYSE 

BQT data feed. To ensure that vendors 

could compete with the Exchange by 

creating a product with the same 

content as the NYSE BQT data feed and 

selling it to their clients, the Exchange 

has represented that it would charge its 

clients for the NYSE BQT data feed an 

amount at least equal to the cost to a 

market data vendor to subscribe to the 

six underlying data feeds, plus an 

additional amount (to be determined) 

that would reflect the value of the 

aggregation and consolidation function 

performed by the Exchange. The 

Exchange therefore believes that a 

competing vendor could create and offer 

a product similar to the proposed NYSE 

BQT data feed at no material cost 

disadvantage relative to the Exchange. 

For these reasons, the Exchange believes 

that vendors could readily offer a 

product similar to the NYSE BQT data 

feed on a competitive basis. 

The Exchange has stated that it will 

announce the effective date of the 

proposed rule change in a notice to be 

published as soon as practicable 

following the approval of the proposed 

rule change by the Commission. The 

Exchange anticipates making available 

the NYSE BQT data feed as soon as 

practicable after approval of the 

proposed rule change by the 

Commission and the effectiveness of a 

rule filing to establish the fees for the 

NYSE BQT data feed. 

III. Summary of Comments 

As noted above, the Commission 

received one comment letter on the 

proposed rule change, and a letter from 

the Exchange responding to this 

commenter.12 The commenter, SIFMA, 

generally raised three broad concerns 

regarding the proposal and urged the 

Commission to disapprove the filing. 

First, SIFMA notes that the Exchange 

has argued that, because it intends to 

offer the NYSE BQT data feed in the 

capacity of a vendor, it does not believe 

that its proposed data feed is subject to 

review under the Act. This commenter 

cites the statement in the proposal that 

‘‘the Exchange reserves the right to 

argue, with respect to the NYSE BQT 

data feed or any other product, that 

there is no requirement for a filing 

under Section 19 of the Act to enable 

the Exchange to offer such products.’’ 

The commenter disagrees with this view 

and has argued that selling a 

combination of data feeds for its various 

platforms does not make the Exchange 

a ‘‘vendor’’ in a way that negates its 

statutory obligations as an SRO. The 

commenter argues that the Exchange, by 

relying on a false vendor capacity 

argument, is attempting to trump its 

obligations as an SRO and make all of 

its market data distribution 

unreviewable. The commenter expresses 

the concern that this would rob the 

public of the opportunity to comment 

afforded under the Act and urges the 

Commission to ensure that such rule 

changes are in fact filed with the 

Commission and subject to public 

comment and Commission review. 


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Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices 67493 

13 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. 15 U.S.C. 78c(f). 

14Section 11A(c)(1)(C) of the Act requires, among 

other things, that no self-regulatory organization, 

member thereof, securities information processor, 

broker or dealer make use of the mails or any means 

or instrumentality of interstate commerce to collect, 

process, distribute, publish or prepare for 

distribution or publication any information with 

respect to quotations for or transactions in any 

security other than an exempted security in 

contravention of such rules and regulations as the 

Commission shall prescribe as necessary or 

appropriate in the public interest, for the protection 

of investors, or otherwise in furtherance of the 

purposes of the Act to assure that all securities 

information processors may, for purposes of 

distribution and publication, obtain on fair and 

reasonable terms such information with respect to 

quotations for and transactions in such securities as 

is collected, processed, or prepared for distribution 

or publication by an exclusive processor of such 

information acting in such capacity. 15 U.S.C. 78k– 

1(c)(1)(C). 

15 17 CFR 242.603(a)(2). 

16 15 U.S.C. 78f(b)(5) and (b)(8). 

17 In recognition that the Exchange is the source 

of its own market data and is affiliated with NYSE 

Arca and NYSE MKT, the Exchange also has 

represented that it will continue to make available 

all of the individual underlying feeds and that the 

source of the market data it uses to create the 

proposed NYSE BQT is the same as the source 

available to other vendors. 

18The Commission also notes that SIFMA has 

argued that NYSE is the exclusive processor for 

NYSE BQT because Exchange’s vendor contract 

appears to restrict competition by asserting that it 

has ‘‘sole discretion’’ over the use of its data and 

by prohibiting re-dissemination or other use of its 

market data. The Commission notes, however, that 

NYSE has represented that the Exchange, NYSE 

MKT, and NYSE Arca do not contractually restrict 

vendors from using the underlying data feeds and 

that vendors currently consolidate data products 

offered by these exchanges, which is permitted 

under the vendor agreements related to the receipt 

of market data. Based on these representations by 

the Exchange, the Commission does not believe that 

Continued 

In its response, NYSE states that 

although it has reserved the right to 

argue at another time that there is no 

requirement for a filing to offer this 

market data product, it has in fact filed 

the proposal with the Commission and 

has sought the Commission’s approval 

to offer the NYSE BQT data feed. 

Second, SIFMA argues that the 

Exchange has failed to file fees for the 

proposed NYSE BQT data feed that meet 

the requirements of the Act, including 

the requirement that such fees be ‘‘fair 

and reasonable’’ under Section 

11A(c)(1)(C) of the Act. The commenter 

also states that the Exchange has 

circumvented the requirement to file 

these fees by marketing the NYSE BQT 

data feed product for the past 16 months 

with promotional materials that contain 

pricing information. SIFMA also argues 

that the Exchange’s proposed markup 

for the consolidated feed would apply to 

any vendor that wanted to create a 

competing product. 

In its response letter, NYSE notes that 

no data recipients are currently 

receiving the NYSE BQT data feed and 

that the Exchange has no plans to offer 

and charge for the NYSE BQT data feed 

until the appropriate regulatory process 

has been completed consistent with the 

Exchange’s obligations under the Act. 

Furthermore, in Amendment No. 1, 

NYSE has represented that it would not 

offer the NYSE BQT data feed until after 

it has filed fees with the Commission for 

the NYSE BQT data feed and such fees 

have become effective. NYSE also states 

that a competing vendor seeking to 

create a similar unified feed would not 

need to pay for the NYSE BQT data 

feed, but would only need to pay for the 

six underlying feeds. The Exchange has 

also represented that it would continue 

to make available all of the individual 

underlying feeds. 

Finally, SIFMA disputes the 

Exchange’s assertion that it is not the 

exclusive distributor of the NYSE BQT 

data feed. The commenter argues that 

the Exchange’s vendor contract appears 

to restrict competition by providing the 

Exchange with ‘‘sole discretion’’ over 

the data, particularly with respect to the 

indirect access service permission that 

would apply to a competing vendor. 

The commenter further notes that the 

contract explicitly prohibits any redissemination or other use of its market 

data. NYSE responds by asserting that 

the Exchange, NYSE MKT, and NYSE 

Arca do not contractually restrict 

vendors from using the underlying data 

feeds and notes that vendors currently 

consolidate data products offered by 

these exchanges, which is permitted 

under the vendor agreements related to 

the receipt of market data. 

IV. Discussion and Commission 

Findings 

After carefully considering the 

proposal and the comments submitted, 

the Commission finds that the proposed 

rule change, as modified by Amendment 

No. 1, is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.13 In 

particular, the Commission finds that 

the proposed rule change is consistent 

with the requirements of Section 

11A(c)(1)(C) of the Act 14 and with Rule 

603(a)(2) of Regulation NMS 

thereunder,15 which requires that any 

national securities exchange, national 

securities association, broker, or dealer 

that distributes information with respect 

to quotations for or transactions in an 

NMS stock to a securities information 

processor, broker, dealer, or other 

persons shall do so on terms that are not 

unreasonably discriminatory. The 

Commission also finds that the 

proposed rule change is consistent with 

Section 6(b)(5) of the Act, which 

requires that the rules of an exchange be 

designed to promote just and equitable 

principles of trade, remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest, and Section 6(b)(8) of 

the Act, which requires that the rules of 

an exchange not impose any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act.16

The Commission notes that, to create 

the NYSE BQT data feed, the Exchange 

would use underlying data feeds that 

belong to the Exchange (NYSE BBO and 

NYSE Trades) and underlying data feeds 

that belong to its affiliated exchanges, 

NYSE Arca and NYSE MKT (NYSE Arca 

BBO, NYSE Arca Trades, NYSE MKT 

BBO, and NYSE MKT Trades). 

Accordingly, the Commission’s review 

of the Exchange’s proposal has focused, 

in particular, on whether the proposal 

would result in affiliated exchanges— 

which are separate self-regulatory 

organizations under the Act—making 

their data products or services available 

to one another at terms (e.g., content, 

pricing, or latency) that are more 

favorable than those available to 

unaffiliated market participants. 

The Exchange has represented that 

the NYSE BQT data feed would be 

created using underlying data feeds that 

are available for subscription by market 

participants. In addition, the Exchange 

has represented that, as the creator and 

distributor of the NYSE BQT data feed, 

it would receive the underlying data 

feeds from its own systems and from 

NYSE Arca and NYSE MKT with no 

latency advantage compared to a 

competing vendor that wishes to acquire 

the component feeds in order to offer a 

competing consolidated data feed. The 

Exchange, NYSE Arca, and NYSE MKT 

are located in the same data center in 

Mahwah, New Jersey, which would be 

the point at which the Exchange would 

receive the six underlying data feeds 

before then aggregating the data to 

create the NYSE BQT data feed. The 

Exchange has represented that it offers 

third parties access to this data center 

through co-location and that co-located 

vendors could obtain the same 

underlying feeds there.17 The Exchange 

has also represented that it has designed 

the NYSE BQT data feed so that it 

would have no advantages over colocated vendors with respect to the 

speed of access to the underlying 

feeds.18


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NYSE is the exclusive processor of the data that 

composes the NYSE BQT feed. 

19SIFMA has objected to the fact that the 

Exchange has not included fees in this filing. The 

Commission notes, however, that the Exchange has 

stated that it will not offer NYSE BQT until it has 

submitted the requisite fee filing under Section 

19(b) of the Act. The Commission will review any 

such filing when it has been submitted. 

SIFMA has also argued that the Exchange has 

been actively marketing NYSE BQT for months. The 

Commission notes, however, that the Exchange has 

represented that it has not been offering NYSE BQT 

and that it will not offer this product until fees for 

it have been filed with the Commission and have 

become effective. 

20Rule 19b–4 provides that ‘‘any material aspect 

of the operation of the facilities of the selfregulatory organization’’ is a ‘‘stated policy, 

practice, or interpretation,’’ 17 CFR 240.19b–4(a)(6), 

and that a stated policy, practice of interpretation 

of a self-regulatory organization is deemed to be a 

‘‘proposed rule change’’ unless (1) it is reasonably 

and fairly implied by an existing rule of the selfregulatory organization or (2) it is concerned solely 

with the administration of the self-regulatory 

organization and is not a stated policy, practice or 

interpretation with respect to the meaning, 

administration, or enforcement of an existing rule 

of the self-regulatory organization. 17 CFR 240.19b– 

4(c). 

21 15 U.S.C. 78k-1(c)(1)(C) and 17 CFR 

242.603(a)(2). 

22 15 U.S.C. 78f(b)(5) and (b)(8). 

23 15 U.S.C. 78s(b)(2). 

24 17 CFR 200.30–3(a)(12). 

With respect to pricing, although 

specific fees to be charged for the NYSE 

BQT data feed are not part of the 

Exchange’s proposal, the Exchange has 

represented that it will assess a fee that 

is at least equal to the aggregate cost of 

the underlying feeds (i.e., at least as 

much as the cost to a vendor of 

subscribing to each of the underlying 

data feeds), plus an additional amount 

(to be determined) that would reflect the 

value of the aggregation and 

consolidation function performed to 

create the NYSE BQT data feed.19

Based on the Exchange’s 

representations with respect to the 

content, latency, and pricing of the 

NYSE BQT data feed—which are central 

to the Commission’s analysis of the 

proposal—the Commission finds that 

the Exchange’s proposal is consistent 

with the Act and the rules and 

regulations thereunder applicable to a 

national securities exchange. The 

Commission believes that these 

representations are designed to ensure 

that NYSE, NYSE Arca, and NYSE MKT, 

which are separate self-regulatory 

organizations, do not, because of their 

relationship as affiliates, offer one 

another products or services on a more 

favorable basis than that available to 

other competing market participants. 

Finally, the Commission notes that 

SIFMA has objected to the Exchange’s 

characterization of the NYSE BQT data 

feed as being part of the Exchange’s 

vendor function and outside of the 

scope of the rule filing process of 

Section 19(b) of the Act. 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.20

For the foregoing reasons, the 

Commission finds that the proposed 

rule change, as amended, is consistent 

with Section 11A(c)(1)(C) of the Act and 

Rule 603(a)(2) of Regulation NMS 

thereunder,21 and Sections 6(b)(5) and 

(b)(8) of the Act.22

V. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 1 

Amendment No. 1 revised the 

proposal to (i) remove language 

proposing specific fee amounts for the 

NYSE BQT data feed, (ii) clarify that the 

Exchange intends to propose fees that 

would be no lower than the cost to a 

vendor of creating a comparable 

product, including the costs of the 

underlying feeds, and (ii) represent that 

the Exchange will not offer the NYSE 

BQT data feed until after the proposal 

has been approved by the Commission, 

the Exchange has filed fees for the NYSE 

BQT data feed with the Commission, 

and such fees have become effective. 

Accordingly, the Commission does not 

believe that Amendment No. 1 raises 

any novel regulatory issues and 

therefore finds that good cause exists to 

approve the proposal, as modified by 

Amendment No. 1, on an accelerated 

basis. 

VI. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether Amendment No. 1 to 

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–2014–40 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–2014–40. 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 Web site 

(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 Web site 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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–NYSE– 

2014–40 and should be submitted on or 

before December 4, 2014. 

VII. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,23 that the 

proposed rule change, as modified by 

Amendment No. 1, (SR–NYSE–2014–40) 

be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–26814 Filed 11–12–14; 8:45 am] 

BILLING CODE 8011–01–P 


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