[Federal Register Volume 80, Number 150 (Wednesday, August 5, 2015)]
[Notices]
[Pages 46642-46644]
[FR Doc No: 2015-19129]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75559; File No. SR-NYSEMKT-2015-56]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of
Proposed Rule Change Amending the NYSE MKT Trades Market Data Product
Offering

July 30, 2015.
    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 July 24, 2015, NYSE MKT LLC (``Exchange'' or ``NYSE MKT'')
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 self-regulatory organization. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE MKT Trades market data
product offering. The text of the proposed rule change is available on
the Exchange's Web site at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    The Exchange proposes to amend the NYSE MKT Trades market data feed
product offering.
    NYSE MKT Trades is an NYSE MKT-only last-sale market data feed.
NYSE MKT Trades currently allows vendors, broker-dealers and others to
make available on a real-time basis the same last sale information that
the Exchange reports under the Consolidated Tape Association (``CTA'')
Plan for inclusion in the CTA Plan's consolidated data streams.
Specifically, the NYSE MKT Trades feed includes, for each security
traded on the Exchange, the real-time last sale price, time and size
information and bid/ask quotations and a stock summary message. The
stock summary message updates every minute and includes NYSE MKT's
opening price, high price, low price, closing price, and cumulative
volume for the security.\4\
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    \4\ See Securities Exchange Act Release Nos. 62187 (May 27,
2010), 75 FR 31500 (June 3, 2010) (SR-NYSEAmex-2010-35), 70065 (July
30, 2013), 78 FR 47450 (Aug. 5, 2013) (SR-NYSEMKT-2013-64) and 69273
(April 2, 2013), 78 FR 20969 (April 8, 2013) (SR-NYSEMKT-2013-30).
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    The Exchange has determined to modify the data content of NYSE MKT
Trades to remove the bid/ask data and to provide the individual orders
that make up each reported trade.
    First, as noted above, the NYSE MKT Trades data feed currently
includes related bid/ask information at the time of each reported
trade. The Exchange proposes to remove this limited bid/ask information
from the NYSE MKT Trades feed, thereby focusing the NYSE MKT Trades
feed on NYSE MKT last sale information. This change would streamline
the NYSE MKT Trades content, as well as align NYSE MKT Trades content
with that of last sale data feeds offered by other exchanges.\5\ The
NYSE [sic] BBO data feed includes, and would continue to include, the
best bids and offers for all securities that are traded on the Exchange
for which NYSE [sic] reports quotes under the Consolidated Quotation
(``CQ'') Plan for inclusion in the CQ Plan's consolidated quotation
information data stream.\6\
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    \5\ See NASDAQ Rule 7039 (Nasdaq Last Sale) and BATS Rule
11.22(g) (BATS Last Sale).
    \6\ See Securities Exchange Act Release No. 72326 (June 5,
2014), 79 FR 33605 (June 11, 2014) (SR-NYSEMKT-2014-49).
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    Second, the Exchange currently reports to the CTA and distributes
on a real-time basis via NYSE MKT Trades the real-time NYSE MKT last
sale price information based on the completed trade of an arriving
order. For example, if an arriving order of 1000 shares trades with
five resting orders of 200 shares each, the Exchange reports a
completed trade of 1000 shares. The Exchange proposes to distribute
NYSE MKT last sale information in NYSE MKT Trades in a format that
would be based on the individual resting orders that comprise the
completed trade. In the example above, the Exchange would distribute
via NYSE MKT Trades the real-time NYSE MKT last sale information of
five executions of 200 shares each, with the same time stamp for each
individual component of the trade. These five transactions would have
the same time stamp and would comprise the same information that is
being provided to the CTA regarding the completed trade, which would
not change. The Exchange would continue to make NYSE MKT last sale
information available through NYSE MKT Trades immediately after it
provides last sale information to the processor under the CTA Plan.
    The Exchange expects to offer both the current NYSE MKT Trades data
product and the proposed NYSE MKT Trades data product for a limited
transition period. After the transition period, the Exchange would stop
offering the current NYSE MKT Trades data product and offer only the
NYSE MKT Trades data product proposed in this filing. The Exchange
would announce the transition dates in advance. There would be no
change to the fees for NYSE MKT Trades in connection with the proposed
changes.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \7\ of the
Act, in general, and furthers the objectives of Section 6(b)(5) \8\ 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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that modifying the NYSE MKT Trades product to
remove the bid/ask information it currently includes and to provide
only NYSE MKT last sale information would streamline the product and
clarify the purpose and use for each of the NYSE MKT proprietary market
data products. The amended feed would also align NYSE MKT Trades'
content with that of last sale data feeds offered by other exchanges,
which similarly offer last sale market data products that do not
include bid and offer information.\9\
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    \9\ See supra note 5.
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    The Exchange believes that modifying the NYSE MKT Trades product to
report

last-sale information based on trades of individual resting orders,
rather than based on the completed trade of an arriving order at a
price, would remove impediments to and perfect the mechanism of a free
and open market by providing vendors and subscribers who desire it with
more granular trade information, thus promoting competition and
innovation. The Exchange would continue to report to the CTA the last
sale prices that reflect a completed trade \10\ and the NYSE MKT Trades
product would report the same volume and prices, but with more
granularity regarding individual components of each completed trade. In
adopting Regulation NMS, the Commission granted self-regulatory
organizations and broker-dealers increased authority and flexibility to
offer new and unique market data to consumers of such data. It was
believed that this authority would expand the amount of data available
to users and consumers of such data and also spur innovation and
competition for the provision of market data. The Exchange believes
that the data product modifications proposed herein, by focusing the
NYSE MKT Trades feed on last sale data by removing the bid/ask data,
and by reporting last-sale information based on trades of resting
orders, is precisely the sort of market data product enhancement that
the Commission envisioned when it adopted Regulation NMS. The proposed
changes are consistent with the requirements of the CTA Plan to provide
the last sale prices reflecting completed transactions and with the
principles embodied in Regulation NMS regarding the provision of market
data by self-regulatory organizations to consumers of such data. The
Commission concluded that Regulation NMS--by lessening regulation of
the market in proprietary data--would itself further the Act's goals of
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facilitating efficiency and competition:

    \10\ Pursuant to the CTA Plan, available here, https://www.ctaplan.com/publicdocs/ctaplan/notifications/plans/trader-update/5929.pdf, Participants to the CTA Plan are required to report
``Last sale price information,'' which means ``(i) the last sale
prices reflecting completed transaction in Eligible Securities, (ii)
the volume and other information related to those transactions,
(iii) the identifier of the Participant furnishing the prices and
(iv) other related information.''
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    [E]fficiency 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.\11\
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    \11\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (File No. S7-10-04).
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    By removing ``unnecessary regulatory restrictions'' on the ability
of exchanges to sell their own data, Regulation NMS advanced the goals
of the Act and the principles reflected in its legislative history.
    The Exchange further notes that the existence of alternatives to
the Exchange's products, including real-time consolidated data, free
delayed consolidated data, and proprietary data from other sources,
ensures that the Exchange is not unreasonably discriminatory because
vendors and subscribers can elect these alternatives. In addition, the
proposal would not permit unfair discrimination because the modified
product would be available to all of the Exchange's vendors and
customers on an equivalent basis.

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 market for proprietary
data products is currently competitive and inherently contestable
because there is fierce competition for the inputs necessary to the
creation of proprietary data. Numerous exchanges compete with each
other for listings, trades, and market data itself, providing virtually
limitless opportunities for entrepreneurs who wish to produce and
distribute their own market data. This proprietary data is produced by
each individual exchange, as well as other entities (such as
internalizing broker-dealers and various forms of alternative trading
systems, including dark pools and electronic communication networks),
in a vigorously competitive market. It is common for market
participants to further and exploit this competition by sending their
order flow and transaction reports to multiple markets, rather than
providing them all to a single market.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) by order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be 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<EMAIL_ADDRESS>Please include
File Number SR-NYSEMKT-2015-56 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-NYSEMKT-2015-56. 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 such filing will also 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-NYSEMKT-2015-56 and should
be submitted on or before August 26, 2015.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-19129 Filed 8-4-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: April 20, 2006 (Volume 71, Number 76)]
[Rules and Regulations]
[Page 20340-20341]
[DOCID:fr20ap06-3]

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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 202

[Release No. 34-53638]
RIN 3235-AJ55

Policy Statement Concerning Subpoenas to Members of the News
Media

AGENCY: Securities and Exchange Commission.

ACTION: Final rule; policy statement.

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SUMMARY: The Securities and Exchange Commission is issuing a policy
statement concerning the issuance of subpoenas to members of the media.
This policy statement sets forth guidelines for the agency's
professional staff to ensure that vigorous enforcement of the Federal
securities laws is conducted completely consistently with the
principles of the First Amendment's guarantee of freedom of the press,
and specifically to avoid the issuance of subpoenas to members of the
media that might impair the news gathering and reporting functions.

DATES: Effective Date: April 12, 2006.

FOR FURTHER INFORMATION CONTACT: Joan McKown<PHONE_NUMBER>), Office of
the Chief Counsel, Division of Enforcement, or Richard Levine (202-551-
5468), Office of General Counsel.

SUPPLEMENTARY INFORMATION: The Securities and Exchange Commission is
issuing a policy statement concerning the issuance of subpoenas to
members of the media. In this policy statement the Commission sets
forth guidelines for the agency's professional staff to ensure that
vigorous enforcement of the federal securities laws is conducted
completely consistently with the principles of the First Amendment's
guarantee of freedom of the press, and specifically to avoid the
issuance of subpoenas to members of the media that might impair the
news gathering and reporting functions.

Regulatory Requirements

    The provisions of the Administrative Procedure Act (``APA'')
regarding notice of proposed rulemaking, opportunities for public
comment, and prior publication are not applicable to general statements
of policy, such as this one.\1\ Similarly, the provisions of the
Regulatory Flexibility Act,\2\ which apply only when notice and comment
are required by the APA or another statute, are not applicable.
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    \1\ 5 U.S.C. 553.
    \2\ 5 U.S.C. 601-602.
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List of Subjects in 17 CFR Part 202

    Administrative practice and procedure.

Text of Amendment

0
In accordance with the foregoing, the Securities and Exchange
Commission amends 17 CFR chapter II as follows:

PART 202--INFORMAL AND OTHER PROCEDURES

0
1. The authority citation for part 202 continues to read, in part, as
follows:

    Authority: 15 U.S.C. 77s, 77t, 78d-1, 78u, 78w, 78ll(d), 79r,
79t, 77sss, 77uuu, 80a-37, 80a-41, 80b-9, and 80b-11, unless
otherwise noted.
* * * * *

0
2. Add Sec.  202.10 to read as follows:

Sec.  202.10  Policy statement of the Securities and Exchange
Commission concerning subpoenas to members of the news media.

    Freedom of the press is of vital importance to the mission of the
Securities and Exchange Commission. Effective journalism complements
the Commission's efforts to ensure that investors receive the full and
fair disclosure that the law requires, and that they deserve. Diligent
reporting is an essential means of bringing securities law violations
to light and ultimately helps to deter illegal conduct. In this Policy
Statement the Commission sets forth guidelines for the agency's
professional staff to ensure that vigorous enforcement of the federal
securities laws is conducted completely consistently with the
principles of the First Amendment's guarantee of freedom of the press,
and specifically to avoid the issuance of subpoenas to members of the
media that might impair the news gathering and reporting functions.
These guidelines shall be adhered to by all members of the staff in all
cases:
    (a) In determining whether to issue a subpoena to a member of the
news media, the approach in every case must be to strike the proper
balance between the public's interest in the free dissemination of
ideas and information and the public's interest in effective
enforcement of the federal securities laws.
    (b) When the staff investigating a matter determines that a member
of the news media may have information relevant to the investigation,
the staff should:
    (1) Determine whether the information might be obtainable from
alternative non-media sources.
    (2) Make all reasonable efforts to obtain that information from
those alternative sources. Whether all reasonable efforts have been
made will depend on the particular circumstances of the investigation,
including whether there is an immediate need to preserve assets or
protect investors from an ongoing fraud.
    (3) Determine whether the information is essential to successful
completion of the investigation.
    (c) If the information cannot reasonably be obtained from
alternative sources and the information is essential to the
investigation, then the staff, after seeking approval from the
responsible Regional Director, District Administrator, or Associate
Director,

should contact legal counsel for the member of the news media. Staff
should contact a member of the news media directly only if the member
is not represented by legal counsel. The purpose of this contact is to
explore whether the member may have information essential to the
investigation, and to determine the interests of the media with respect
to the information. If the nature of the investigation permits, the
staff should make clear what its needs are as well as its willingness
to respond to particular problems of the media. The staff should
consult with the Commission's Office of Public Affairs, as appropriate.
    (d) The staff should negotiate with news media members or their
counsel, consistently with this Policy Statement, to obtain the
essential information through informal channels, avoiding the issuance
of a subpoena, if the responsible Regional Director, District
Administrator, or Associate Director determines that such negotiations
would not substantially impair the integrity of the investigation.
Depending on the circumstances of the investigation, informal channels
may include voluntary production, informal interviews, or written
summaries.
    (e) If negotiations are not successful in achieving a resolution
that accommodates the Commission's interest in the information and the
media's interests without issuing a subpoena, the staff investigating
the matter should then consider whether to seek the issuance of a
subpoena for the information. The following principles should guide the
determination of whether a subpoena to a member of the news media
should be issued:
    (1) There should be reasonable grounds to believe that the
information sought is essential to successful completion of the
investigation. The subpoena should not be used to obtain peripheral or
nonessential information.
    (2) The staff should have exhausted all reasonable alternative
means of obtaining the information from non-media sources. Whether all
reasonable efforts have been made to obtain the information from
alternative sources will depend on the particular circumstances of the
investigation, including whether there is an immediate need to preserve
assets or protect investors from an ongoing fraud.
    (f) If there are reasonable grounds to believe the information
sought is essential to the investigation, all reasonable alternative
means of obtaining it have been exhausted, and all efforts at
negotiation have failed, then the staff investigating the matter shall
seek authorization for the subpoena from the Director of the Division
of Enforcement. No subpoena shall be issued unless the Director, in
consultation with the General Counsel, has authorized its issuance.
    (g) In the event the Director of the Division of Enforcement, after
consultation with the General Counsel, authorizes the issuance of a
subpoena, notice shall immediately be provided to the Chairman of the
Commission.
    (h) Counsel (or the member of the news media, if not represented by
counsel) shall be given reasonable and timely notice of the
determination of the Director of the Division of Enforcement to
authorize the subpoena and the Director's intention to issue it.
    (i) Subpoenas should be negotiated with counsel for the member of
the news media to narrowly tailor the request for only essential
information. In negotiations with counsel, the staff should attempt to
accommodate the interests of the Commission in the information with the
interests of the media.
    (j) Subpoenas should, wherever possible, be directed at material
information regarding a limited subject matter, should cover a
reasonably limited period of time, and should avoid requiring
production of a large volume of unpublished material. They should give
reasonable and timely notice of their demand for documents.
    (k) In the absence of special circumstances, subpoenas to members
of the news media should be limited to the verification of published
information and to surrounding circumstances relating to the accuracy
of published information.
    (l) Because the intent of this policy statement is to protect
freedom of the press, news gathering functions, and news media sources,
this policy statement does not apply to demands for purely commercial
or financial information unrelated to the news gathering function.
    (m) Failure to follow this policy may constitute grounds for
appropriate disciplinary action. The principles set forth in this
statement are not intended to create or recognize any legally
enforceable rights in any person.

    By the Commission.

    Dated: April 12, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. 06-3739 Filed 4-19-06; 8:45 am]

BILLING CODE 8010-01-P