Federal Register / Vol. 82, No. 158 / Thursday, August 17, 2017 / Notices 39145 

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

2 17 CFR 240.19b–4. 

Washington, DC 20549; or send an email 

to: PRA_Mailbox@sec.gov. 

Dated: August 11, 2017. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–17408 Filed 8–16–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release Nos. 33–10399; 34–81389; File No. 

265–27] 

SEC Advisory Committee on Small and 

Emerging Companies 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Notice of meeting. 

SUMMARY: The Securities and Exchange 

Commission Advisory Committee on 

Small and Emerging Companies is 

providing notice that it will hold a 

public meeting on Wednesday, 

September 13, 2017, in Multi-Purpose 

Room LL–006 at the Commission’s 

headquarters, 100 F Street NE., 

Washington, DC. The meeting will begin 

at 9:30 a.m. (ET) and will be open to the 

public. The meeting will be webcast on 

the Commission’s Web site at 

www.sec.gov. Persons needing special 

accommodations to take part because of 

a disability should notify the contact 

person listed below. The public is 

invited to submit written statements to 

the Committee. The agenda for the 

meeting includes matters relating to 

rules and regulations affecting small and 

emerging companies under the federal 

securities laws. 

DATES: The public meeting will be held 

on Wednesday, September 13, 2017. 

Written statements should be received 

on or before September 11, 2017. 

ADDRESSES: The meeting will be held at 

the Commission’s headquarters, 100 F 

Street NE., Washington, DC. Written 

statements may be submitted by any of 

the following methods: 

Electronic Statements 

• Use the Commission’s Internet 

submission form (http://www.sec.gov/ 

info/smallbus/acsec.shtml); or 

• Send an email message to rulecomments@sec.gov. Please include File 

Number 265–27 on the subject line; or 

Paper Statements 

• Send paper statements to Brent J. 

Fields, Federal Advisory Committee 

Management Officer, Securities and 

Exchange Commission, 100 F Street NE., 

Washington, DC 20549–1090. 

All submissions should refer to File No. 

265–27. This file number should be 

included on the subject line if email is 

used. To help us process and review 

your statement more efficiently, please 

use only one method. The Commission 

will post all statements on the Advisory 

Committee’s Web site (https://

www.sec.gov/info/smallbus/ 

acsec.shtml). 

Statements also 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. All statements received will 

be posted without change; we do not 

edit personal identifying information 

from submissions. You should submit 

only information that you wish to make 

available publicly. 

FOR FURTHER INFORMATION CONTACT: Julie 

Z. Davis, Senior Special Counsel, at 

(202) 551–3460, Office of Small 

Business Policy, Division of Corporation 

Finance, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–3628. 

SUPPLEMENTARY INFORMATION: In 

accordance with Section 10(a) of the 

Federal Advisory Committee Act, 5 

U.S.C.-App. 1, and the regulations 

thereunder, William H. Hinman, 

Designated Federal Officer of the 

Committee, has ordered publication of 

this notice. 

Dated: August 14, 2017. 

Brent J. Fields, 

Committee Management Officer. 

[FR Doc. 2017–17409 Filed 8–16–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81381; File No. SR–BX– 

2017–037] 

Self-Regulatory Organizations; 

NASDAQ BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Further Clarify When 

the Exchange Will Utilize the 

Secondary Source of Data Pursuant to 

Rule 4759 

August 11, 2017. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on August 2, 

2017, NASDAQ BX, Inc. (‘‘BX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to further 

clarify when the Exchange will utilize 

the Secondary Source of data pursuant 

to Rule 4759. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqbx.cchwallstreet.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 

Exchange 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 these 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to clarify when the Exchange 

will utilize the Secondary Source of 

data pursuant to Rule 4759. Rule 4759 

lists the proprietary and network 

processor feeds that are utilized for the 

handling, routing, and execution of 

orders, as well as for the regulatory 

compliance processes related to those 

functions. Rule 4759 also lists 

Secondary Sources of data that are 

utilized in emergency market 

conditions, and only until those 

emergency conditions are resolved. The 

Exchange proposes to amend this rule to 

describe how the BX trading system 

decides when to use the Primary or 

Secondary Source of data. Specifically, 

the Exchange proposes to amend Rule 

4759 to clarify that the Primary Source 

of data is used unless it is delayed by 

a configurable amount compared to the 


sradovich on DSK3GMQ082PROD with NOTICES
39146 Federal Register / Vol. 82, No. 158 / Thursday, August 17, 2017 / Notices 

3 As a conforming change, the Exchange proposes 

to remove the current rule text that indicates that 

the Secondary Source of data is, where applicable, 

utilized only in emergency market conditions and 

only until those emergency conditions are resolved. 

The Exchange does not believe that this language 

is needed as the amended rule would now indicate 

with more specificity when the Exchange fails over 

to the Secondary Source of data. 

4 See Securities Exchange Act Release No 80700 

(May 16, 2017), 82 FR 23381 (May 22, 2017) (SR– 

NYSEMKT–2017–05) (Approval Order). 

5 SIP data is used as the Primary Source for NSX, 

FINRA ADF, and IEX. There is no Secondary 

Source for these markets. 

6 A delay is indicated by data being received by 

the Exchange from the Secondary Source that has 

a more recent timestamp than the Primary Source. 

Fail over then occurs once such a delay has reached 

a configurable value. The configurable amount 

described in this rule will be made available to 

members via Equity Trader Alert. Currently, this 

configurable value is set to 1.5 seconds. The 

Exchange will issue an Equity Trader Alert to 

members to notify them of the current value and in 

the event that it changes this value. 

7 The Exchange may decrease the amount of 

delay required to switch to the Secondary Source 

of data at a later date. The Exchange will alert 

members of any such change with an Equity Trader 

Alert. See id. 

8 See Securities Exchange Act Release No. 34– 

81061 (June 30, 2017), 82 FR 31642 (July 7, 2017) 

(SR–Arca–2017–70). 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

Secondary Source of data.3 The 

Exchange will revert to the Primary 

Source of data once the delay has been 

resolved. The configurable amount 

described in this rule will be made 

available to members via Equity Trader 

Alert. 

The Exchange believes that this 

clarification is necessary in light of the 

re-launch of NYSE MKT as NYSE 

American, which is scheduled for July 

24, 2017.4 NYSE American rules 

provide for an intentional 350 

microsecond access delay to certain 

inbound and outbound order messages 

on that exchange, including all 

outbound communications to 

proprietary market data feeds. NYSE 

American will not apply a similar delay 

to outbound communications to the 

securities information processor (‘‘SIP’’). 

Due to the intentional delay of 

proprietary market data to be 

disseminated by NYSE American, the 

Exchange believes that fail over to the 

Secondary Source of Data may 

sometimes be necessary even during 

otherwise normal operation to ensure 

that the fastest and most reliable data is 

used for the handling, routing, and 

execution of orders, and for regulatory 

compliance purposes. 

Currently, the BX trading system 

utilizes proprietary market data as the 

Primary Source for the following 

markets that provide a reliable 

proprietary data feed: NYSE MKT, 

NASDAQ OMX BX, DirectEdge A, 

DirectEdge X, CHX, NYSE, NYSE Arca, 

NASDAQ, NASDAQ OMX PSX, BATS 

Y-Exchange, and BATS Exchange. For 

each of these markets, the Exchange 

uses SIP data as the Secondary Source.5

The trading system then uses certain 

real-time logic to determine whether 

emergency market conditions exist that 

should result in the failover to the 

Secondary Source of data from the 

Primary Source. Specifically, the trading 

system fails over to the Secondary 

Source of data for these markets if the 

Primary Source of data is delayed by a 

configurable amount compared to the 

Secondary Source.6 A significant delay 

of the Primary Source of data compared 

to the Secondary Source of data 

indicates that there is an emergency 

market condition pursuant to Rule 4759. 

In such an instance, the Exchange 

believes that it is appropriate to fail over 

to the Secondary Source of data as the 

Secondary Source of data is more 

current. If the Exchange fails over to the 

Secondary Source of data it will re-elect 

the Primary Source of data if the 

Primary Source of data is no longer 

delayed compared to the Secondary 

Source. This process ensures that the 

BX’s trading and other systems have the 

most accurate view of the trading 

interest available across other markets. 

With the upcoming launch of NYSE 

American, the Exchange believes that its 

current rule should be amended to 

better reflect intentional delays to the 

Primary Source of data. Specifically, the 

Exchange desires to make clear that 

even otherwise normal operation of the 

Primary Source of data may result in the 

Exchange electing the Secondary Source 

of data if that operation includes an 

intentional delay. This would be the 

case even if such operation would not 

normally be deemed an emergency 

market condition. Although the 

Exchange’s process for determining 

which data to use will not change at this 

time,7 the Exchange believes that it is 

important to clarify that process so that 

members and other market participants 

are adequately apprised of when the 

Exchange will use the Primary or 

Secondary Source of data. 

As explained earlier in this proposed 

rule change, the Exchange employs an 

automated, real-time, process to 

determine if there is an emergency 

market condition pursuant to Rule 4759. 

In particular, the Exchange determines 

whether there is an emergency market 

condition by comparing the timestamp 

of the Primary Source of data with the 

timestamp of the Secondary Source of 

data. The Exchange believes that a 

significant delay in the Primary Source 

of data compared to the Secondary 

Source is an emergency market 

condition because such a delay is not 

consistent with normal operation of 

such data feeds. The Exchange does not 

believe that the current emergency 

market conditions language is clear, 

however, when dealing with markets 

such as NYSE American that have 

employed an intentional delay in the 

data disseminated over the direct data 

feeds utilized by the Exchange as the 

Primary Source of data. Currently, the 

Primary Source of data is used unless it 

is delayed by a configurable amount 

compared to the Secondary Source of 

data. The Exchange then reverts to the 

Primary Source of data once the delay 

has been resolved. The Primary Source 

of data may be delayed due to technical 

issues that would normally be 

considered an emergency market 

condition, or during otherwise normal 

operation of the Primary Source of data 

if an intentional delay has been 

implemented. In this respect, the 

Exchange notes that even NYSE Arca— 

an affiliate of NYSE American—has 

decided to use SIP data as the primary 

source of data for NYSE American due 

to the intentional delay of messages on 

their proprietary market data.8 Although 

the Exchange is not proposing to change 

its Primary Source of data for NYSE 

American, the Exchange believes that 

modifying its rules to clarify the 

conditions where the Secondary Source 

of data may be elected will increase 

transparency of the operation of the 

Exchange to the benefit of members and 

other market participants. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,9 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,10

in particular, in that it is designed to 

promote just and equitable principles of 

trade, 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. 

The Exchange believes that the 

proposed rule change removes 

impediments to and perfects the 

mechanism of a free and open market 

and protects investors and the public 

interest because it provides additional 

transparency around when BX will elect 

to use the Secondary Source of data for 

the handling, routing, and execution of 

orders, and for regulatory compliance 

purposes. The proposed rule change 

does not change the operation of the 

Exchange or its use of data feeds; rather 

it clarifies when the Exchange will elect 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 158 / Thursday, August 17, 2017 / Notices 39147 

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

12 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 the 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. 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

the Secondary Source of data pursuant 

to Rule 4759. Currently, Rule 4759 

indicates that the Exchange will fail 

over to the Secondary Source of data if 

there is an emergency market condition 

but does not specify what counts as an 

emergency market condition pursuant to 

the rule. In fact, the Exchange has an 

automated, real-time, process for 

determining whether an emergency 

market condition exists by measuring 

the amount of delay between the 

Primary and Secondary Sources of data. 

The proposed rule change therefore 

clarifies that the Exchange will elect the 

Secondary Source of data if the Primary 

Source of data is delayed by a 

configurable amount (made available to 

members via Equity Trader Alert), and 

will then revert to the Primary Source 

of data once the delay has been 

resolved. The Secondary Source of data 

may be elected even during otherwise 

normal operation because of intentional 

delays in the dissemination of market 

data over an exchange’s proprietary 

market data feeds. The Exchange 

believes that this change is appropriate 

in light of the launch of the NYSE 

American exchange, which will come 

with an intentional delay of market data 

provided through proprietary data 

products used by BX as the Primary 

Source of data. The Exchange believes 

the additional transparency of the 

operation of the Exchange as described 

in the proposed rule change will remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest. 

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 

proposed rule change is not designed to 

address any competitive issue but rather 

would provide members and other 

market participants with information 

about when BX will utilize its 

Secondary Source of data. The Exchange 

believes that this change will increase 

transparency around the operation of 

the Exchange without any significant 

impact on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing 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 for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 11 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.12

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 13 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 14

permits the Commission to 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. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest as it will allow the Exchange to 

clarify the conditions under which the 

Secondary Source of data may be 

elected and increase transparency of the 

operation of the Exchange. Accordingly, 

the Commission hereby waives the 

operative delay and designates the 

proposal operative upon filing.15

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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 

• 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– 

BX–2017–037 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–BX–2017–037. 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–BX– 

2017–037 and should be submitted on 

or before September 7, 2017. 


sradovich on DSK3GMQ082PROD with NOTICES
39148 Federal Register / Vol. 82, No. 158 / Thursday, August 17, 2017 / Notices 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3As a conforming change, the Exchange proposes 

to remove the current rule text that indicates that 

the Secondary Source of data is, where applicable, 

utilized only in emergency market conditions and 

only until those emergency conditions are resolved. 

The Exchange does not believe that this language 

is needed as the amended rule would now indicate 

with more specificity when the Exchange fails over 

to the Secondary Source of data. 

4See Securities Exchange Act Release No 80700 

(May 16, 2017), 82 FR 23381 (May 22, 2017) (SR– 

NYSEMKT–2017–05) (Approval Order). 

5SIP data is used as the Primary Source for NSX, 

FINRA ADF, and IEX. There is no Secondary 

Source for these markets. 

6A delay is indicated by data being received by 

the Exchange from the Secondary Source that has 

a more recent timestamp than the Primary Source. 

Fail over then occurs once such a delay has reached 

a configurable value. The configurable amount 

described in this rule will be made available to 

members via Equity Trader Alert. Currently, this 

configurable value is set to 1.5 seconds. The 

Exchange will issue an Equity Trader Alert to 

members to notify them of the current value and in 

the event that it changes this value. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2017–17366 Filed 8–16–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81382; File No. SR–Phlx– 

2017–65] 

Self-Regulatory Organizations; 

NASDAQ PHLX LLC; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Further 

Clarify When Nasdaq PSX Will Utilize 

the Secondary Source of Data 

Pursuant to Rule 3304 

August 11, 2017. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on August 2, 

2017, NASDAQ PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to a proposed 

rule change to further clarify when 

Nasdaq PSX (‘‘PSX’’) will utilize the 

Secondary Source of data pursuant to 

Rule 3304. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqphlx.cchwallstreet. 

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 

Exchange 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 these 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to clarify when PSX will 

utilize the Secondary Source of data 

pursuant to Rule 3304. Rule 3304 lists 

the proprietary and network processor 

feeds that are utilized for the handling, 

routing, and execution of orders, as well 

as for the regulatory compliance 

processes related to those functions. 

Rule 3304 also lists Secondary Sources 

of data that are utilized in emergency 

market conditions, and only until those 

emergency conditions are resolved. The 

Exchange proposes to amend this rule to 

describe how the PSX trading system 

decides when to use the Primary or 

Secondary Source of data. Specifically, 

the Exchange proposes to amend Rule 

3304 to clarify that the Primary Source 

of data is used unless it is delayed by 

a configurable amount compared to the 

Secondary Source of data.3 The 

Exchange will revert to the Primary 

Source of data once the delay has been 

resolved. The configurable amount 

described in this rule will be made 

available to members via Equity Trader 

Alert. 

The Exchange believes that this 

clarification is necessary in light of the 

re-launch of NYSE MKT as NYSE 

American, which is scheduled for July 

24, 2017.4 NYSE American rules 

provide for an intentional 350 

microsecond access delay to certain 

inbound and outbound order messages 

on that exchange, including all 

outbound communications to 

proprietary market data feeds. NYSE 

American will not apply a similar delay 

to outbound communications to the 

securities information processor (‘‘SIP’’). 

Due to the intentional delay of 

proprietary market data to be 

disseminated by NYSE American, the 

Exchange believes that fail over to the 

Secondary Source of Data may 

sometimes be necessary even during 

otherwise normal operation to ensure 

that the fastest and most reliable data is 

used for the handling, routing, and 

execution of orders, and for regulatory 

compliance purposes. 

Currently, the PSX trading system 

utilizes proprietary market data as the 

Primary Source for the following 

markets that provide a reliable 

proprietary data feed: NYSE MKT, 

NASDAQ OMX BX, DirectEdge A, 

DirectEdge X, CHX, NYSE, NYSE Arca, 

NASDAQ, NASDAQ OMX PSX, BATS 

Y-Exchange, and BATS Exchange. For 

each of these markets, the Exchange 

uses SIP data as the Secondary Source.5

The trading system then uses certain 

real-time logic to determine whether 

emergency market conditions exist that 

should result in the failover to the 

Secondary Source of data from the 

Primary Source. Specifically, the trading 

system fails over to the Secondary 

Source of data for these markets if the 

Primary Source of data is delayed by a 

configurable amount compared to the 

Secondary Source.6 A significant delay 

of the Primary Source of data compared 

to the Secondary Source of data 

indicates that there is an emergency 

market condition pursuant to Rule 4759 

[sic]. In such an instance, the Exchange 

believes that it is appropriate to fail over 

to the Secondary Source of data as the 

Secondary Source of data is more 

current. If the Exchange fails over to the 

Secondary Source of data it will re-elect 

the Primary Source of data if the 

Primary Source of data is no longer 

delayed compared to the Secondary 

Source. This process ensures that the 

PSX’s trading and other systems have 

the most accurate view of the trading 

interest available across other markets. 

With the upcoming launch of NYSE 

American, the Exchange believes that its 

current rule should be amended to 

better reflect intentional delays to the 

Primary Source of data. Specifically, the 

Exchange desires to make clear that 

even otherwise normal operation of the 

Primary Source of data may result in the 

Exchange electing the Secondary Source 

of data if that operation includes an 

intentional delay. This would be the 


sradovich on DSK3GMQ082PROD with NOTICES