Notice2021-24168
Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List To Eliminate Expired and Obsolete Pillar Port Transition Fee Pricing
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 5, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 212 (Friday, November 5, 2021)</title>
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[Federal Register Volume 86, Number 212 (Friday, November 5, 2021)]
[Notices]
[Pages 61354-61356]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24168]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93496; File No. SR-NYSE-2021-63]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Its Price List To Eliminate Expired and Obsolete Pillar Port
Transition Fee Pricing
November 1, 2021.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on October 27, 2021, New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III 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 its Price List to eliminate expired
and obsolete Pillar port transition fee pricing. The proposed rule
change is available on the Exchange's website at <a href="http://www.nyse.com">www.nyse.com</a>, 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 purpose of this filing is to eliminate expired and obsolete
Pillar port transition fee pricing now that there are no member
organizations that did not complete the transition from older to newer
and more efficient Pillar technology.
The Exchange proposes to implement these changes to its Price List
effective October 27, 2021.
Background
Member organizations enter orders and order instructions, and
receive information from the Exchange, by establishing a connection to
a gateway that uses communication protocols that map to the order types
and modifiers described in Exchange rules. These gateway connections,
also known as logical port connections, are referred to as ``ports'' on
the Exchange's Price List. Legacy ports connect with the Exchange via a
Common Customer Gateway (known as ``CCG'') that accesses its equity
trading systems (``Phase I ports''). Beginning July 1, 2019, the
Exchange began making available ports using Pillar gateways to its
member organizations (``Phase II ports'').
Effective July 3, 2019, the Exchange introduced transition pricing
designed to provide member organizations an extended transition period
to connect to the Exchange using Pillar technology with no fee
increase. Specifically, the Exchange (1) adopted a cap on monthly fees
for the use of certain ports connecting to the Exchange for the billing
months July 2019 through March 2020 (the ``Transition Period''); (2)
adopted a Decommission Extension Fee applicable for the billing months
April 2020 through September 2020 (the ``Decommission Period'') for
legacy port connections; and (3) prorated the monthly fee for certain
ports activated after July 1, 2019, effective April 1, 2020.\4\
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\4\ See Securities Exchange Act Release No. 86360 (July 11,
2019), 84 FR 34210 (July 17, 2019) (SR-NYSE-2019-39).
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Effective March 2, 2020, the Exchange (1) extended the end of the
Transition Period from March 2020 to August 2020 for member
organizations to transition to the utilization of ports that connect to
the Exchange using Pillar technology; (2) shortened the Decommission
Period from six months (April 2020-September 2020) to four months
(September-December 2020); (3) extended the
[[Page 61355]]
effective date that the Exchange would prorate the monthly fee for
certain ports activated on or after July 1, 2019 from April 1, 2020 to
September 1, 2020; and (4) revised the fees charged for legacy port
connections during the Decommission Period.\5\
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\5\ See Securities Exchange Act Release No. 88373 (March 12,
2020), 85 FR 15533 (March 18, 2020) (SR-NYSE-2020-14).
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Effective August 1, 2020, the Exchange (1) extended the end of the
Transition Period from August 2020 to October 2020; (2) extended the
beginning of the Decommission Period from September 2020 to November
2020 and the end of the Decommission Period from December 2020 to
February 2021; and (3) extended the effective date that the Exchange
would prorate the monthly fee for ports activated on or after July 1,
2019 from September 1, 2020 to November 1, 2020.\6\
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\6\ See Securities Exchange Act Release No. 89591 (August 18,
2020), 85 FR 52159 (August 24, 2020) (SR-NYSE-2020-14).
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Effective October 1, 2020, the Exchange (1) extended the end of the
Transition Period from October 2020 to December 2020; (2) extended the
beginning of the Decommission Period from November 2020 to January 2021
and the end of the Decommission Period from February 2021 to April
2021; and (3) extended the effective date that the Exchange would
prorate the monthly fee for ports activated on or after July 1, 2019
from November 1, 2020 to January 1, 2021.\7\
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\7\ See Securities Exchange Act Release No. 90180 (October 14,
2020), 85 FR 66612 (October 20, 2020) (SR-NYSE-2020-82).
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Effective December 1, 2020, the Exchange (1) extended the end of
the Transition Period from December 2020 to February 2021; (2) extended
the beginning of the Decommission Period from January 2021 to March
2021 and the end of the Decommission Period from April 2021 to June
2021; and (3) extended the effective date that the Exchange would
prorate the monthly fee for ports activated on or after July 1, 2019
from January 1, 2021 to March 1, 2021.\8\
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\8\ See Securities Exchange Act Release No. 90661 (December 14,
2020), 85 FR 82532 (December 18, 2020) (SR-NYSE-2020-99).
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Effective June 10, 2021, the Exchange extended the end of the
Decommission Period two months from June 2021 to August 2021.\9\
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\9\ See Securities Exchange Act Release No. 92234 (June 22,
2021), 86 FR 34080 (June 28, 2021) (SR-NYSE-2021-36).
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Effective September 1, 2021, the Exchange extended the end of the
Decommission Period one month from August 2021 to September 2021 in
order to allow member organizations that did not complete the
transition during the Transition Period the ability to choose to
continue using Phase I ports until September 2021.\10\
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\10\ See Securities Exchange Act Release No. 93001 (September
15, 2021), 86 FR 52530 (September 21, 2021) (SR-NYSE-2021-50).
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The Decommission Period ended at the end of September 2021. There
are no member organizations that did not complete the transition to
Phase II ports during the Transition Period.
Proposed Rule Change
The Exchange proposes to delete Pillar port transition fee pricing
(which is applicable to both order/quote entry and drop copy ports) in
its entirety. Both the Transition Period and the Decommission Period
have ended and, as noted above, there are no member organizations that
did not complete the transition to Phase II ports during the Transition
Period. Since the Exchange is no longer charging port transition fees,
the Exchange proposes to delete the section of the Price List titled
``Pillar Port Transition Fee Pricing'' in its entirety as obsolete.
The proposed changes are not otherwise intended to address any
other issues, and the Exchange is not aware of any problems that member
organizations would have in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\11\ in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\12\ in
particular, because it provides for the equitable allocation of
reasonable dues, fees, and other charges among its members, issuers and
other persons using its facilities and does not unfairly discriminate
between customers, issuers, brokers or dealers.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(4) & (5).
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The Proposed Change Is Reasonable
The Exchange believes that the proposed elimination of Pillar port
transition fees is reasonable because the fees are no longer being
charged. The Exchange believes it is reasonable to delete obsolete fees
from the Price List because it would streamline the Price List and
reduce confusion as to which fees are applicable on the Exchange. The
Exchange believes that amending the Price List to remove fees that are
no longer charged would promote the protection of investors and the
public interest because it would promote clarity and transparency in
the Price List, thereby enabling market participants to navigate the
Exchange's Price List more easily.
The Proposal Is an Equitable Allocation of Fees
The Exchange believes the proposal equitably allocates fees among
its market participants because the obsolete port transition fees that
the Exchange proposes to eliminate would be eliminated in their
entirety, and would no longer be available to any member organization
in any form. Similarly, the Exchange believes the proposal equitably
allocates fees among its market participants because elimination of
obsolete fees would apply to all similarly-situated member
organizations on an equal basis. All such member organizations would
continue to be subject to the same fee structure, and access to the
Exchange's market would continue to be offered on fair and
nondiscriminatory terms.
The Proposal Is Not Unfairly Discriminatory
The Exchange believes that the proposal is not unfairly
discriminatory because it neither targets nor will it have a disparate
impact on any particular category of market participant. The Exchange
believes that the proposal is not unfairly discriminatory because the
proposed elimination of the obsolete fees would affect all similarly-
situated market participants on an equal and non-discriminatory basis.
The Exchange believes that eliminating obsolete fees would no longer be
available to any member organization on an equal basis. The Exchange
also believes that the proposed change would protect investors and the
public interest because the deletion of obsolete fees would make the
Price List more accessible and transparent and facilitate market
participants' understanding of the fees charged for services currently
offered by the Exchange.
Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition.
For the foregoing reasons, the Exchange believes that the proposal
is consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\13\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance
[[Page 61356]]
of the purposes of the Act. Instead, as discussed above, the proposal
relates solely to elimination of an obsolete port transition fees and,
as such, would not have any impact on intra- or inter-market
competition because the proposed change is solely designed to
accurately reflect the services that the Exchange currently offers,
thereby adding clarity to the Price List.
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\13\ 15 U.S.C. 78f(b)(8).
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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
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \14\ of the Act and subparagraph (f)(2) of Rule
19b-4 \15\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 15 U.S.C. 78s(b)(2)(B).
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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
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#ee9c9b828bc38d8183838b809a9dae9d8b8dc0898198"><span class="__cf_email__" data-cfemail="2052554c450d434f4d4d454e5453605345430e474f56">[email protected]</span></a>. Please include
File Number SR-NYSE-2021-63 on the subject line.
Paper Comments
<bullet> 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-NYSE-2021-63. 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 website (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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 website 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 the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSE-2021-63 and should be submitted on
or before November 26, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-24168 Filed 11-4-21; 8:45 am]
BILLING CODE 8011-01-P
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