FR 2025-01990

The document under review is a notice from the New York Stock Exchange LLC (NYSE) about a proposed rule change regarding the expansion of the Per User Access Fee for specific market data products. Filed with the Securities and Exchange Commission (SEC), this change is set to take effect immediately as of January 16, 2025. The rule change targets Redistributors handling the NYSE Aggregated Lite and NYSE Pillar Depth data feeds. While the proposal is already in effect, the public is invited to submit comments on this matter until February 21, 2025.

General Summary

The proposal involves expanding an existing Per User Access Fee to a broader range of market data products distributed by the NYSE. Specifically, the expansion will impact Redistributors, entities that repackage and sell market data from the exchange to final users, which now includes additional data feeds. This regulatory update is framed within the provisions of the Securities Exchange Act of 1934, and stakeholders are invited to express their views electronically or in writing to the SEC.

Key Concerns and Issues

1. Lack of Financial Details:
   The document notably omits specific details regarding the financial implications of expanding the Per User Access Fee. This absence makes it difficult for stakeholders to assess the economic impact, both in terms of potential cost increases for Redistributors and subsequent revenue generation for the NYSE.

2. Need for Justification:
   The rationale behind why this expansion is necessary is not well-articulated. The lack of a clear justification could raise questions about the motivations for the rule change and if it primarily benefits the exchange over market participants.

3. Complexity in Language:
   The document uses technical language and contains references to various legislative rules and regulations that might pose comprehension challenges for a lay reader. The procedural aspects, such as the Commission's authority to suspend the rule change, could seem convoluted without additional explanation.

4. Impact on Smaller Market Participants:
   There is no detailed analysis on how these fee changes could affect smaller market participants. The document does not elaborate on whether smaller investors or companies might face increased costs as a result of these changes, which could impact their access to valuable market data.

5. Absence of Impact Report:
   Potential social or economic impacts, particularly on different sizes or sectors of the market or varying investor types, are not explored. It remains uncertain how these changes will equate to an overall positive or negative shift within the marketplace.

Potential Impact on the Public and Stakeholders

For the general public, especially individual investors and small firms, the document lacks clarity on how these changes might translate into actual costs or benefits. If the fees for market data increase, this could eventually trickle down to end-users, possibly making market data more expensive or out of reach for smaller entities. On the contrary, large-sized financial firms and established market participants who have greater resources might absorb these changes with less difficulty.

For Redistributors and firms directly impacted by this rule change, the expansion could require operational or financial adjustments. They may need to strategize on how to manage potential increased costs, possibly influencing how they price their own data services.

In conclusion, while the proposed changes have been put into effect immediately by the NYSE, ongoing feedback from public comments might provide necessary insights into the broader implications of this rule change. Understanding how different sectors and individuals might be affected is crucial for balancing the interests of the exchange and the investing public.