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Federal Register / Vol. 86, No. 174 / Monday, September 13, 2021 / Notices
Options Deep and Arca Options Complex would continue to apply. The separate fee that now applies to Arca Options Complex, would likewise continue to apply to the Arca Options Complex market data product.
Arca Options Deep would continue to be offered through the Exchanges Liquidity Center Network LCN, a local area network in the Exchanges Mahwah, New Jersey data center that is available to users of the Exchanges colocation services. The Exchange would also continue to offer the Arca Options Deep through the Exchanges Secure Financial Transaction Infrastructure SFTI network, through which all other users and members access the Exchanges trading and execution systems and other proprietary market data products.
The Exchange plans to introduce the modified Arca Options Deep market data product when the Exchange transitions to the Pillar trading platform, anticipated for the fourth quarter of 2021.7 The Exchange will announce the exact date that the modified Arca Options Product market data product will become available through a NYSE
Trader Update.

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2. Statutory Basis The proposed rule change is consistent with Section 6b 8 of the Act, in general, and furthers the objectives of Section 6b5 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.
The Exchange also believes this proposal is consistent with Section 6b5 of the Act because it protects investors and the public interest and promotes just and equitable principles of trade by providing investors with improved options for receiving market data. The proposed rule change would benefit investors by facilitating their 7 See
Securities Exchange Act Release No. 92304
June 30, 2021, 86 FR 36440 July 9, 2021 SR
NYSEArca202147 Notice of Filing of Proposed Rule Change for New Rules 6.1PO, 6.37APO, 6.40PO, 6.41PO, 6.62PO, 6.64PO, 6.76PO, and 6.76APO and Amendments to Rules 1.1, 6.1O, 6.1AO, 6.37O, 6.65AO and 6.96O.
8 15 U.S.C. 78fb.
9 15 U.S.C. 78fb5.

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prompt access to the additional realtime information contained in a modified Arca Options Deep market data product.
The Exchange believes the proposed change is reasonable because it would provide vendors and subscribers with a higher quality market data product.
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 options data product changes proposed herein are precisely the sort of market data product evolutions that the Commission envisioned when it adopted Regulation NMS. The Commission concluded that Regulation NMSby lessening regulation of the market in proprietary datawould itself further the Acts 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

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 proposed modified Arca Options Deep market data feed will help to protect a free and open market by providing additional data to the marketplace and give investors greater choices. In addition, the proposal would not permit unfair discrimination because the products will be available to all of the Exchanges customers and broker-dealers through both the LCN
and SFTI.
B. Self-Regulatory Organizations Statement on Burden on Competition In accordance with Section 6b8 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 10 See Securities Exchange Act Release No. 51808
June 9, 2005, 70 FR 37496 June 29, 2005.
11 15 U.S.C. 78fb8.

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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.
Because the Exchanges competitors already offer similar products, the proposed modified Arca Options Deep market data product will enhance competition. For example, Arca Options Deep would provide an alternative to Nasdaq ITCH-to-Trade Options, offered by The Nasdaq Stock Market, Inc.
Nasdaq.12
C. Self-Regulatory Organizations 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 19b3A of the Act 13 and Rule 19b 4f6 thereunder.14
12 See Nasdaq ITCH-to-Trade Options ITTO, https www.nasdaqtrader.com/micro.aspx?id=
Dapos ITTO is designed to provide full quote and order depth . ITTO uses a series of messages to track the life of a quote or order through the Nasdaq Options Market NOM. ITTO supports NOM last sale data as well as Net Order Imbalance data for the opening auction.
13 15 U.S.C. 78sb3A.
14 17 CFR 240.19b4f6. In addition, Rule 19b 4f6iii 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,
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