Document ID: SEC-2019-1611-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Chicago, Inc.
Posted Date: 2019-10-29T04:00Z

[Federal Register Volume 84, Number 209 (Tuesday, October 29, 2019)]
[Notices]
[Pages 57904-57908]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23546]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87389; File No. SR-NYSECHX-2019-15]

Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To 
Establish the NYSE Chicago BBO, NYSE Chicago Trades and NYSE Chicago 
Integrated Feed Market Data Feeds

October 23, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on October 18, 2019, NYSE Chicago, Inc. (``NYSE Chicago'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, 
II.A, and II.C below, which Items have been prepared by the Exchange. 
The Exchange filed the proposal as a ``non-controversial'' proposed 
rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and 
Rule 19b-4(f)(6) thereunder.\4\ The Commission is publishing this 
notice to

[[Page 57905]]

solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to establish the NYSE Chicago BBO (``NYSE 
Chicago BBO''), NYSE Chicago Trades (``NYSE Chicago Trades'') and NYSE 
Chicago Integrated Feed (``NYSE Chicago Integrated Feed'') market data 
feeds. 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 and C below, of the most significant 
parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to establish NYSE Chicago BBO, NYSE Chicago 
Trades and NYSE Chicago Integrated Feed (``NYSE Chicago Market Data 
Feeds''). The Exchange recently got approval to decommission the Book 
Feed market data product when it transitions to the Pillar trading 
platform.\5\ As proposed, once the Exchange transitions to the Pillar 
trading platform, it will offer the NYSE Chicago Market Data Feeds in 
lieu of the current Book Feed market data product. The Exchange 
believes that utilizing the standardized Pillar market data feeds 
across NYSE exchanges would create efficiencies for customer feed 
handlers.
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    \5\ See Securities Exchange Act Release No. 86709 (August 20, 
2019), 84 FR 44654 (August 20, 2019) (SR-NYSECHX-2019-08) (Notice 
proposing trading rules to support the transition of trading to the 
Pillar trading platform, including proposing to delete Article 4, 
Rule 1, which currently describes the Book Feed, because it will not 
be offered once the Exchange transitions to Pillar); see also 
Securities Exchange Act Release No. 87264 (October 9, 2019) (SR-
NYSECHX-2019-08) (Notice of Filing of Amendment No. 1 and Order 
Granting Accelerated Approval of a Proposed Rule Change, as Modified 
by Amendment No. 1, to Add Rules to Support the Transition of 
Trading to the Pillar Trading Platform).
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    The Exchange believes that the proposed NYSE Chicago Market Data 
Feeds will provide subscribers of the Book Feed market data product 
with the same scope of Exchange information once the Exchange 
transitions to Pillar, but with greater optionality. Subscribers that 
would like to continue to receive both order data (including depth of 
book) and last-sale data would be able to replace Book Feed with NYSE 
Chicago Integrated and would not need to separately subscribe to either 
NYSE Chicago BBO or NYSE Chicago Trades. Subscribers that do not need 
as much data could opt instead to subscribe to only NYSE Chicago BBO or 
NYSE Chicago Trades. In anticipation of the transition to the Pillar 
trading system, the Exchange has provided notice of the availability of 
the proposed market data products and related testing opportunities.\6\
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    \6\ On August 16, 2019, the Exchange provided notice of the 
proposed NYSE Chicago Market Data Feeds, including that such feeds 
would be available to customers in shadow, i.e., for testing, on 
September 16, 2019. See Trader Update available here: https://www.nyse.com/trader-update/history#110000144335. See also additional 
Trader Updates about the feeds, available here: https://www.nyse.com/trader-update/history#110000137761; and https://www.nyse.com/trader-update/history#110000154859.
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NYSE Chicago BBO
    NYSE Chicago BBO is a NYSE Chicago-only market data feed that would 
provide vendors and subscribers on a real-time basis with the same 
best-bid-and-offer information that NYSE Chicago reports under the 
Consolidated Quotation Plan (``CQ Plan'') and the Plan Governing the 
Collection, Consolidation, and Dissemination of Quotation and 
Transaction Information for Nasdaq-Listed Securities Traded on 
Exchanges on an Unlisted Trading Privilege Basis (``UTP Plan''). NYSE 
Chicago BBO would include the best bids and offers (``NYSE Chicago BBO 
Information'') for all securities that are traded on the Exchange. NYSE 
Chicago will make the NYSE Chicago BBO available over a single 
datafeed, regardless of the markets on which the securities are listed.
    NYSE Chicago BBO would allow vendors, broker-dealers, and others 
(``NYSE Chicago Vendors'') to consume and make available NYSE Chicago 
BBO Information on a real-time basis. NYSE Chicago Vendors may 
distribute the NYSE Chicago BBO to both professional and non-
professional subscribers. The Exchange would make NYSE Chicago BBO 
Information available through the NYSE Chicago BBO datafeed no earlier 
than it makes that information available to the processor under the CQ 
Plan or the UTP Plan, as applicable.
NYSE Chicago Trades
    NYSE Chicago Trades is a NYSE Chicago-only market data feed that 
would provide vendors and subscribers on a real-time basis with the 
same last sale information that NYSE Chicago reports under the 
Consolidated Tape Association Plan (``CTA Plan'') and the UTP Plan for 
inclusion in the consolidated feeds. NYSE Chicago Trades would include 
the real-time last sale price, time and size information (``NYSE 
Chicago Last Sale Information'') for all securities that are traded on 
the Exchange. NYSE Chicago will make the NYSE Chicago Trades available 
over a single datafeed, regardless of the markets on which the 
securities are listed.
    NYSE Chicago Trades would allow NYSE Chicago Vendors to consume and 
make available NYSE Chicago Last Sale Information on a real-time basis. 
NYSE Chicago Vendors may distribute the NYSE Chicago Trades to both 
professional and non-professional subscribers. The Exchange would make 
NYSE Chicago Last Sale Information available through the NYSE Chicago 
Trades datafeed no earlier than it makes that information available to 
the processor under the CTA Plan or the UTP Plan, as applicable. In 
addition to the information that the Exchange provides to the 
processor, NYSE Chicago Last Sale Information will also include a 
unique sequence number that the Exchange assigns to each trade and that 
allows an investor to track the context of a trade through other 
Exchange market data products.
NYSE Chicago Integrated Feed
    NYSE Chicago Integrated Feed is a NYSE Chicago-only market data 
feed that would provide vendors and subscribers on a real-time basis 
with a unified view of events, in sequence, as they appear on the NYSE 
Chicago matching engines. The NYSE Chicago Integrated Feed would 
include both top of book and depth of book order data, last sale data, 
and security status updates (e.g., trade corrections and trading halts) 
and stock summary messages. The stock summary message would update 
every minute and would include the Exchange's aggregation of NYSE 
Chicago's opening price, high price, low price, closing price, and the 
cumulative volume for a security, which information is available to 
vendors and subscribers to calculate on their own should they so 
choose. The NYSE Chicago Integrated Feed would include

[[Page 57906]]

information available to vendors and subscribers of both NYSE Chicago 
BBO and NYSE Chicago Trades, as described above.
    As described in Article 4, Rule 1, the current Book Feed allows a 
subscriber to view all individual Participant orders displayed in the 
Matching System, including the size and price associated with such 
order and the trade data for executions that occur within the Matching 
System. When the Exchange transitions to Pillar, current subscribers to 
the Book Feed will be able to obtain the same scope of information via 
the proposed NYSE Chicago Integrated Feed. Accordingly, after the 
transition to Pillar, subscribers of Book Feed would still need only 
one data product to satisfy their data needs. The Exchange proposes to 
offer NYSE Chicago BBO and NYSE Chicago Trades to provide additional 
optionality to data subscribers that may not need the scope of data 
included in NYSE Chicago Integrated.
    Offering an integrated product addresses requests received from 
vendors and subscribers that would like to receive the data described 
above in an integrated fashion. An integrated data feed would provide 
greater efficiencies and reduce errors for vendors and subscribers that 
currently choose to integrate the data after receiving it from the 
Exchange. The Exchange believes that providing vendors and subscribers 
with the option of a market data product that both integrates existing 
products and includes additional market data would allow vendors and 
subscribers to choose the best solution for their specific businesses.
    The Exchange proposes to offer connectivity to the NYSE Chicago 
Market Data Feeds over the Liquidity Center Network and IP network, the 
local area networks available to users of the Exchange's co-location 
services in the Mahwah, New Jersey data center. The Exchange would also 
offer connectivity to the NYSE Chicago Market Data Feeds over the ICE 
Global Network, through which all other users and members access the 
Exchange's trading and execution systems and other proprietary market 
data products. In addition, the proposal would not permit unfair 
discrimination because the products will be available to all of the 
Exchange's customers and broker-dealers.
    At this time, the Exchange does not intend to charge any fees 
associated with the receipt of NYSE Chicago BBO, NYSE Chicago Trades or 
NYSE Chicago Integrated Feed. The Exchange will submit a proposed rule 
change should it determine to charge fees associated with the receipt 
of NYSE Chicago BBO, NYSE Chicago Trades or NYSE Chicago Integrated 
Feed. Accordingly, subscribers of the current Book Feed product, which 
is also not subject to any fees, would not be subject to any additional 
fees in order to receive any of the proposed NYSE Chicago Market Data 
Feeds.
    Subject to effectiveness of proposed rule changes, the NYSE Chicago 
Market Data Feeds will be available when the Exchange transitions to 
the Pillar trading platform.\7\
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    \7\ The Exchange has announced that, subject to rule approvals, 
the Exchange will transition to trading on Pillar on November 4, 
2019. See Trader Update, available here: https://www.nyse.com/publicdocs/nyse/notifications/trader-update/NYSEChicago_Migration_update_9.4.pdf.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) \8\ of the Act (``Act''), in general, and furthers 
the objectives of Section 6(b)(5) \9\ 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 
Chicago Market Data Feeds to those interested in receiving it.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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    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 market data as 
requested by market data vendors and purchasers. The proposed rule 
change would benefit investors by facilitating their prompt access to 
the real-time information contained in the NYSE Chicago Market Data 
Feeds. The Exchange further believes that the proposed NYSE Chicago 
Market Data Feeds would remove impediments to and perfect the mechanism 
of a free and open market and a national market system because once the 
Exchange transitions to the Pillar trading platform, current 
subscribers to the Book Feed market data product would be able to 
obtain the same level of data from NYSE Chicago Integrated without 
incurring any new fees.
    In adopting Regulation NMS, the Commission granted self-regulatory 
organizations (``SROs'') 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. The 
Exchange believes that the NYSE Chicago Market Data Feeds are precisely 
the sort of market data products that the Commission envisioned when it 
adopted Regulation NMS. The Commission concluded that Regulation NMS 
would itself further the Act's goals of facilitating efficiency and 
competition:

    Efficiency is promoted when broker-dealers who do not need the 
data beyond the prices, sizes, market center identifications of the 
NBBO and consolidated last sale information are not required to 
receive (and pay for) such data. The Commission also believes that 
efficiency is promoted when broker-dealers may choose to receive 
(and pay for) additional market data based on their own internal 
analysis of the need for such data.\10\
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    \10\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005) (Regulation NMS Adopting 
Release).

    The Exchange further notes that the existence of alternatives to 
the Exchange's product, including real-time consolidated data, free 
delayed consolidated data, and proprietary data from other sources, as 
well as the continued availability of the Exchange's separate data 
feeds, ensures that the Exchange is not unreasonably discriminatory 
because vendors and subscribers can elect these alternatives as their 
individual business cases warrant.
    The NYSE Chicago Market Data Feeds will help to protect a free and 
open market by providing additional data to the marketplace and by 
giving investors greater choices. In addition, the proposal would not 
permit unfair discrimination because the products will be available to 
all of the Exchange's customers and broker-dealers.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\11\ the Exchange 
does not believe that the proposed rule change will impose any burden 
on competition that is not necessary or appropriate in

[[Page 57907]]

furtherance of the purposes of the Act. Because other exchanges already 
offer similar products, the Exchange's proposed NYSE Chicago Market 
Data Feeds will enhance competition. For example, NYSE Chicago BBO 
would provide an alternative to NYSE Arca BBO,\12\ offered by the 
Exchange's affiliate, Arca, Inc. (``NYSE Arca''), Nasdaq Basic,\13\ 
offered by The Nasdaq Stock Market, Inc. (``Nasdaq''), and Cboe 
Top,\14\ offered by Cboe Global Markets, Inc. (``Cboe''). Additionally, 
NYSE Chicago Trades would provide an alternative to NYSE Arca 
Trades,\15\ offered by NYSE Arca, Nasdaq Basic,\16\ offered by Nasdaq, 
and Cboe Last Sale,\17\ offered by Cboe. Finally, NYSE Chicago 
Integrated Feed would provide an alternative to NYSE Arca Integrated 
Feed,\18\ offered by NYSE Arca, Nasdaq TotalView-Itch,\19\ offered by 
Nasdaq, and Cboe Depth,\20\ offered by Cboe.
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    \11\ 15 U.S.C. 78f(b)(8).
    \12\ See NYSE Arca BBO, https://www.nyse.com/market-data/real-time/bbo (provides best bid/ask quotations for all traded 
securities).
    \13\ See Nasdaq Basic, http://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic (provides Best Bid and Offer and Last 
Sale Information).
    \14\ See Cboe Top, https://markets.cboe.com/us/equities/market_data_products/ (provides real-time top-of-book quotations, 
matched trade price, volume and execution time).
    \15\ See NYSE Arca Trades, https://www.nyse.com/market-data/real-time/trades (provides real-time Last Sale information for all 
traded securities).
    \16\ See Nasdaq Basic, http://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic (provides Best Bid and Offer and Last 
Sale Information).
    \17\ See Cboe Last Sale, https://markets.cboe.com/us/equities/market_data_products/ (provides real-time matched trade price, 
volume and execution time).
    \18\ See NYSE Arca Integrated Feed, https://www.nyse.com/market-data/real-time/integrated-feed (provides a comprehensive order-by-
order view of events in the equities market, including depth of 
book, trades, order imbalance data, and security status messages).
    \19\ See Nasdaq TotalView-ITCH, http://www.nasdaqtrader.com/Trader.aspx?id=Totalview2 (displays the full order book depth for 
Nasdaq market participants and also disseminates the Net Order 
Imbalance Indicator (NOII) for the Nasdaq Opening and Closing 
Crosses and Nasdaq IPO/Halt Cross).
    \20\ See Cboe Depth, https://markets.cboe.com/us/equities/market_data_products/ (provides real-time, depth-of-book quotations 
and execution information).
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    The NYSE Chicago Market Data Feeds provide investors with new 
options for receiving market data, which was a primary goal of the 
market data amendments adopted by Regulation NMS.\21\
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    \21\ See supra note 6 [sic], at 37503.
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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

    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) of the Act \22\ and Rule 19b-
4(f)(6) thereunder.\23\
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    \22\ 15 U.S.C. 78s(b)(3)(A).
    \23\ 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 satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \24\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \25\ 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 requested that the Commission waive the 30-day operative delay so 
that the proposed rule change may become operative upon filing. The 
Exchange asserts that waiver of the operative delay would be consistent 
with the protection of investors and the public interest because it 
would allow the Exchange to provide the NYSE Chicago Market Data Feeds 
when it migrates to the Pillar platform. The Exchange notes that it has 
previously announced that, subject to rule approvals, it will 
transition to Pillar on November 4, 2019. The Exchange will provide the 
NYSE Chicago Market Data Feeds free of charge and they are comparable 
to feeds provided by other national securities exchanges.\26\ 
Therefore, the Commission believes that waiver of the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. Accordingly, the Commission hereby waives the operative delay 
and designates the proposed rule change operative upon filing.\27\
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    \24\ 17 CFR 240.19b-4(f)(6).
    \25\ 17 CFR 240.19b-4(f)(6)(iii).
    \26\ See supra Section II.B.
    \27\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of 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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change 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-NYSECHX-2019-15 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-NYSECHX-2019-15. 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

[[Page 57908]]

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 to make 
available publicly. All submissions should refer to File Number SR-
NYSECHX-2019-15, and should be submitted on or before November 19, 
2019.
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    \28\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\28\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-23546 Filed 10-28-19; 8:45 am]
BILLING CODE 8011-01-P