FR 2025-01989

Summary of the Document

The document discusses a proposed rule change by the NYSE American LLC, filed with the Securities and Exchange Commission (SEC). The proposal aims to extend the Per User Access Fee for market data products to Redistributors of the NYSE Aggregated Lite data feed, effective from January 16, 2025. The rule change is slated for immediate implementation under specified sections of the Securities Exchange Act of 1934. The SEC is currently seeking public feedback on this proposal, with a deadline for comments set for February 21, 2025.

Significant Issues and Concerns

One primary concern with the document is the lack of clarity regarding the purpose and implications of expanding the Per User Access Fee to Redistributors. There is insufficient detail on how this change will impact different stakeholders, particularly the Redistributors who will be directly affected by this new fee structure. Moreover, there is no discussion regarding the effects this might have on market transparency or access to data for investors, which are essential considerations for changes in fee structures associated with financial market data.

Additionally, the rationale for the immediate effectiveness of this proposed rule change is not sufficiently discussed or justified within the document. Immediate implementation might raise questions about whether stakeholders have had adequate time to adapt to the new changes or express their concerns.

Finally, the footnotes indicate that an earlier filing related to this change was withdrawn and replaced with this current version, but the reasons behind this action are not explained. This lack of context can cause confusion about what prompted the withdrawal and subsequent refiling of the proposal.

Impact on the Public and Stakeholders

For the general public, the expansion of the Per User Access Fee could have both positive and negative impacts. On one hand, if increased fees lead to better data services through reinvestment in infrastructure, users of NYSE market data products might ultimately benefit from enhanced data quality and delivery. On the other hand, higher costs for Redistributors might lead to increased prices for end-users, potentially limiting access to financial data and impacting their ability to make informed investment decisions.

For specific stakeholders like Redistributors, the direct application of additional fees represents a potential increase in operating costs. This could challenge smaller Redistributors, who may not have the financial capacity to absorb these increased costs, thus affecting their competitive positioning in the market. Larger Redistributors might pass these costs onto their customers, impacting market dynamics and potentially reducing competition.

The absence of detailed analysis or justification for these changes leaves stakeholders with uncertainty about the underpinning motivations and expected outcomes, making it more challenging for them to effectively respond to the SEC’s call for public comment within the given timeframe.