March 3, 2016
Having reviewed the original proposal, the materials underlying my comment including articles about use of time feeds, and the response from the NYSE applicant requesting the change, I have no further concern or objection to the proposed rule change.
I have separate concerns about the nature of trading and execution on such a high speed basis that require time feeds to sequence and differentiate orders, but I will continue to raise those issues in connection with other forums and regulations before the SEC, including the discussions of the Equity Market Structure Advisory Committee. I will only note in this connection that the issues of merit in considering rule changes are not merely the issue of services to traders, member firms and large volume or high frequency market participants as among the various "competitive" exchanges, but also the equitable performance of markets as between retail and institutional and professional market participants, and the ability of some market participants through dedicated or high speed quote and trade access to advantageously execute or front-run markets in securities, especially during times of major market moves or even disruption.
The movements on the order of 5% in the SPY index on August 24, and the apparent ability of some market participants and firms to benefit from major moves or even distruption, suggest the ability of some market participants to have superior access, execution, and price discovery. Such disruptions or moves may have allowed market traders to gain or benefit from a part of a brief $9 billion swing (5% of $160 billion) in the SPY on August 24. It is better to go up to the wellsprings of equal market access, than to follow the rivulets of "exchange competition" downhill to more unequal access through feeds, location, rebates, and other advantages for certain participants.