Notice2021-25124
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fees and Charges and the NYSE Arca Equities Fees and Charges Regarding Colocation Services
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 18, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 220 (Thursday, November 18, 2021)</title>
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[Federal Register Volume 86, Number 220 (Thursday, November 18, 2021)]
[Notices]
[Pages 64570-64575]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25124]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93564; File No. SR-NYSEArca-2021-97]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE
Arca Options Fees and Charges and the NYSE Arca Equities Fees and
Charges Regarding Colocation Services
November 12, 2021.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on November 3, 2021, NYSE Arca, Inc. (``NYSE Arca'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. 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 the NYSE Arca Options Fees and
Charges and the NYSE Arca Equities Fees and Charges (together, the
``Fee Schedules'') regarding colocation services and fees to provide
Users with wireless connectivity to CME Group market data. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fee Schedules regarding
colocation services and fees to provide Users \4\ with wireless
connectivity to CME Group market data.\5\
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\4\ For purposes of the Exchange's co-location services, a
``User'' means any market participant that requests to receive co-
location services directly from the Exchange. Securities Exchange
Act Release No. 76010 (September 29, 2015), 80 FR 60197 (October 5,
2015) (SR-NYSEArca-2015-82). As specified in the Fee Schedules, a
User that incurs co-location fees for a particular co-location
service pursuant thereto would not be subject to co-location fees
for the same co-location service charged by the Exchange's
affiliates New York Stock Exchange LLC, NYSE American LLC, NYSE
Chicago, Inc., and NYSE National, Inc. (together, the ``Affiliate
SROs''). Each Affiliate SRO has submitted substantially the same
proposed rule change to propose the changes described herein. See
SR-NYSE-2021-67, SR-NYSEAMER-2021-43, SR-NYSECHX-2021-17, and SR-
NYSENAT-2021-23.
\5\ The Exchange initially filed rule changes relating to its
co-location services with the Securities and Exchange Commission
(``Commission'') in 2010. See Securities Exchange Act Release No.
63275 (November 8, 2010), 75 FR 70048 (November 16, 2010) (SR-
NYSEArca-2010-100).
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The Exchange currently provides Users with wireless connections to
eight
[[Page 64571]]
market data feeds or combinations of feeds from third party markets
(the ``Existing Third Party Data''),\6\ and wired connections to 43
market data feeds.\7\ The Exchange now proposes to add to its Fee
Schedules wireless connections to CME Group, Inc. (``CME Group'')
market data (such data, ``CME Group Data'' and, together with the
Existing Third Party Data, the ``Third Party Data''). Users would be
offered the proposed wireless connection to the CME Group Data through
connections into the colocation center in the Mahwah, New Jersey data
center (``Data Center'').\8\
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\6\ See Securities Exchange Act Release Nos. 76749 (December 23,
2015), 80 FR 81640 (December 30, 2015) (SR-NYSEArca-2015-99); 78377
(July 21, 2016), 81 FR 49327 (July 27, 2016) (SR-NYSEArca-2016-99);
and 80116 (February 28, 2017), 82 FR 12663 (March 6, 2017) (SR-
NYSEArca-2017-18).
\7\ See Securities Exchange Act Release No. 80310 (March 24,
2017), 82 FR 15763 (March 30, 2017) (SR-NYSEArca-2016-89).
\8\ Through its ICE Data Services (``IDS'') business,
Intercontinental Exchange, Inc. (``ICE'') operates the Data Center
in Mahwah, New Jersey. The Exchange and the Affiliate SROs are
indirect subsidiaries of ICE. The proposed service would be provided
by IDS pursuant to an agreement with a non-ICE entity. IDS does not
own the wireless network that would be used to provide the service.
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The Exchange expects that the proposed rule change would become
operative no later than March 31, 2022. The Exchange will announce the
date that the wireless connection to the CME Group Data will be
available through a customer notice.
To receive CME Group Data, the User would enter into an agreement
with a non-Exchange affiliated party for permission to receive the
data, if required. The User would pay this third party any fees for the
data content.
For each wireless connection to CME Group Data, a User would be
charged a $5,000 non-recurring initial charge and a monthly recurring
charge of $6,000. The Exchange proposes to revise its Fee Schedules to
reflect fees related to the wireless connection to CME Group Data.
The CME Group Data would not include all possible CME Group data
feeds. There is limited bandwidth available on the wireless network to
co-location, and there are currently dozens of CME Group data feeds. To
provide connectivity to all of them would use a large amount of
bandwidth.
Accordingly, rather than provide connectivity to all possible
symbols included in the CME Group data feeds, the wireless connection
would only provide connectivity to a selection of CME Group market data
for which IDS determines there is User demand. IDS similarly provides
connectivity to a selection of data, rather than entire feeds, over a
wireless connection to the Markham, Canada third party data center.\9\
The User would then determine the symbols for which it would receive
data, which could include data regarding some or all of the symbols for
which IDS provides connectivity.\10\ The Exchange would not have
visibility into which portion of the CME Group Data a given User
receives.
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\9\ See Securities Exchange Act Release No. 88298 (February 19,
2020), 85 FR 10786 (February 25, 2020) (SR-NYSEArca-2020-15). See
also Securities Exchange Act Release No. 90209 (October 15, 2020),
85 FR 67044 (October 21, 2020) (SR-NYSE-2020-05, SR-NYSEAMER-2020-
05, SR-NYSEArca-2020-08, SR-NYSECHX-2020-02, SR-NYSENAT-2020-03, SR-
NYSE-2020-11, SR-NYSEAMER-2020-10, SR-NYSEArca-2020-15, SR-NYSECHX-
2020-05, SR-NYSENAT-2020-08).
\10\ The Exchange understands that the third parties that
provide wireless connectivity to CME Group market data to the Data
Center and other data centers in New Jersey follow a substantially
similar model, offering connectivity to a selection of market data
rather than entire feeds.
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As with the Existing Third Party Data, if a User purchased two
wireless connections, it would pay two non-recurring initial charges.
Each wireless connection would include the use of one port for
connectivity to CME Group Data. A User would not pay a fee for the use
of such port. If a User also connects to Existing Third Party Data, it
would not be able to use the same port that it uses for connectivity to
CME Group Data to connect to such Existing Third Party Data.
Accordingly, a User that connects to both CME Group Data and Existing
Third Party Data would have at least two ports, and would not be
separately charged for two ports.\11\
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\11\ If a User purchased a wireless connection to CME Group
Data, that connection would include the use of one port for
connectivity to CME Group Data. If the same User connected to
Existing Third Party Data, it would receive the use of one port for
connectivity to the Existing Third Party Data. It would not be
separately charged for such ports. A User may purchase additional
ports. See 80 FR 81640, supra note 6, at 81641.
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Application and Impact of the Proposed Changes
The proposed changes would not apply differently to distinct types
or sizes of market participants. Rather, they would apply to all Users
equally.
As is currently the case, the purchase of any co-location service,
including connectivity to Third Party Data, is completely voluntary and
the Fee Schedules are applied uniformly to all Users.
Competitive Environment
Users that do not opt to utilize the Exchange's proposed wireless
connection would still be able to obtain CME Group market data using
other methods: From another User, a third party wireless connection, or
through an IDS or third party fiber connection. Based on the
information available to it, the Exchange believes that at least one
market participant provides wireless connectivity to CME Group market
data in the Data Center. The Exchange believes that the wireless
connection offered by this third party entity provides connectivity at
the same or similar speed as the proposed connection to CME Group Data,
and at the same or similar cost.\12\ The proposed connection to CME
Group Data and the existing third party wireless connection to CME
Group Data would follow the same route within the Data Center: They
would both enter through a meet-me-room, connect to equipment in co-
location, and then connect to any Users that are customers. Because of
this, the Exchange does not believe that IDS has an advantage over the
third party in providing the connectivity. The proposed wireless
connection would lead to a pole, from where a fiber connection would
lead into the Data Center. The pole is owned by a third party and is
not on the grounds of the Data Center.
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\12\ Because the third party is not a regulated entity, it is
not obligated to make its latency figures or fees publicly available
or the same for all entities.
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IDS already offers fiber connections to CME Group market data to
Users.\13\ The Exchange also believes that at least two third party
market participants offer such fiber connections to CME Group market
data. In addition to these options, a User may create a proprietary
wireless connection or connect through another User in order to connect
to CME Group market data. The Exchange believes that at least two
market participants already provide wireless connectivity to CME Group
market data to other data centers in New Jersey.
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\13\ See Securities Exchange Act Release No. 81013 (June 23,
2017), 82 FR 29604 (June 29, 2017) (SR-NYSEArca-2017-62).
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Wireless connections involve beaming signals through the air
between antennas that are within line of sight of one another. Because
the signals travel a straight, unimpeded line, and because light waves
travel faster through air than through glass (fiber optics), wireless
messages have lower latency than messages travelling through fiber
optics. At the same time, as a general rule wireless networks have less
uptime than fiber networks. Wireless networks are directly and
immediately affected by adverse weather conditions, which can cause
message loss and outage periods. Wireless networks cannot be configured
with redundancy in the same way that fiber networks can. As a result,
an equipment or weather issue at any one location on the network will
cause the entire network to have an outage. In
[[Page 64572]]
addition, maintenance can take longer than it would with a fiber based
network, as the relevant tower may be in a hard to reach location, or
weather conditions may present safety issues, delaying technicians
servicing equipment. Even under normal conditions, a wireless network
will have a higher error rate than a fiber network of the same length.
The latency of a wireless network depends on several factors.
Variables include the wireless equipment utilized; the route of, and
number of towers or buildings in, the network; their proximity to the
data centers on either end; and the fiber equipment used at either end
of the connection. Moreover, latency is not the only consideration that
a customer may have in selecting a wireless network to connect to CME
Group market data. Other considerations may include the amount of
network uptime; the equipment that the network uses; the cost of the
connection; and the applicable contractual provisions. Indeed, fiber
network connections may be more attractive to some market participants
as they are more reliable and less susceptible to weather conditions.
The Exchange operates in a highly competitive market in which
exchanges and other vendors (e.g., Hosting Users) offer co-location
services as a means to facilitate the trading and other market
activities of those market participants who believe that co-location
enhances the efficiency of their operations. The Commission has
repeatedly expressed its preference for competition over regulatory
intervention in determining prices, products, and services in the
securities markets. Specifically, in Regulation NMS, the Commission
highlighted the importance of market forces in determining prices and
SRO revenues and, also, recognized that current regulation of the
market system ``has been remarkably successful in promoting market
competition in its broader forms that are most important to investors
and listed companies.'' \14\
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\14\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
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The proposed change is not otherwise intended to address any other
issues relating to co-location services and/or related fees, and the
Exchange is not aware of any problems that Users 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,\15\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\16\ in particular, because 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 regulating,
clearing, settling, processing information with respect to, and
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 because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The Exchange further believes
that the proposed rule change is consistent with Section 6(b)(4) of the
Act,\17\ because it provides for the equitable allocation of reasonable
dues, fees, and other charges among its members and issuers and other
persons using its facilities and does not unfairly discriminate between
customers, issuers, brokers, or dealers.
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\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(5).
\17\ 15 U.S.C. 78f(b)(4).
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The Proposed Change Is Reasonable
The Exchange believes that the proposed rule change is reasonable.
The wireless connection would provide Users with an alternative
means of connectivity to CME Group Data. The proposed change would
provide Users with an additional choice with respect to the form and
optimal latency of the connectivity they use to receive CME Group
market data, allowing a User to select the connectivity that better
suits its needs, helping it tailor its colocation operations to the
requirements of its business operations. Users that do not opt to
utilize the Exchange's proposed wireless connection would still be able
to obtain CME Group market data using other methods: From another User,
a third party wireless connection, or through an IDS or third party
fiber connection.
Based on the information available to it, the Exchange believes
that at least one market participant provides wireless connectivity to
CME Group market data in the Data Center. The Exchange believes that
the wireless connection offered by this third party entity provides
connectivity at the same or similar speed as the proposed connection to
CME Group Data, and at the same or similar cost. The proposed
connection to CME Group Data and the existing third party wireless
connection to CME Group Data would follow the same route within the
Data Center: They would both enter through a meet-me-room, connect to
equipment in co-location, and then connect to any Users that are
customers. Because of this, the Exchange does not believe that IDS has
an advantage over the third party in providing the connectivity. The
proposed wireless connection would lead to a pole, from where a fiber
connection would lead into the Data Center. The pole is owned by a
third party and is not on the grounds of the Data Center.
IDS already offers fiber connections to CME Group market data to
Users.\18\ The Exchange also believes that at least two third party
market participants offer such fiber connections to CME Group. In
addition to these options, a User may create a proprietary wireless
connection or connect through another User in order to connect to CME
Group market data. The Exchange believes that at least two market
participants already provide wireless connectivity to CME Group market
data to other data centers in New Jersey.
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\18\ See 82 FR 29604, supra note 12.
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Market participants' considerations in determining what
connectivity to purchase may include latency; the amount of network
uptime; the equipment that the network uses; the cost of the
connection; and the applicable contractual provisions. Indeed, fiber
network connections may be more attractive to some market participants
as they are more reliable and less susceptible to weather conditions.
The Exchange believes that it is reasonable to not transport
information for all of the symbols included in CME Group data feeds to
the Data Center, but rather to transport a subset of that data. There
is limited bandwidth available on the wireless network to co-location,
and there are a number of CME Group data feeds. Limiting the feeds to
the selection of CME Group market data regarding securities for which
IDS determines there is demand would allow Users to receive the
relevant CME Group Data over a wireless network, which could include
data regarding some or all of the symbols for which IDS provides
connectivity. The User would then determine those symbols for which it
will receive data.
The Exchange believes that it is reasonable that a User that has
already purchased wireless connections to other Third Party Data would
be charged a non-recurring charge when it purchases a wireless
connection to the CME Group Data, because it would allow the Exchange
to defray or cover certain costs it incurs in installing the wireless
connection to the CME Group Data,
[[Page 64573]]
which costs it incurs irrespective of whether the User has existing
wireless connections to Third Party Data, while providing the User the
benefit of the installation, which would allow it to receive CME Group
Data within co-location and with a lower latency over the fiber optics
option. To do the initial installation, the Exchange must provide the
personnel required for initial installation and testing. The costs
associated with installing wireless connections are incrementally
higher than those associated with installing fiber optics-based
solutions.
The Exchange believes that it is reasonable that a User that
connects to both CME Group Data and Existing Third Party Data may not
use the same port for connectivity to both, and so would have at least
two ports, because the proposed wireless connection would include the
use of one port for connectivity to CME Group Data and connectivity to
the Existing Third Party Data includes the use of one port for
connectivity to Existing Third Party Data. A User would not pay a
separate fee for using such ports.
The Exchange believes the proposed pricing for the wireless
connection to CME Group Data is reasonable because it would allow the
Exchange to defray or cover the costs associated with offering Users a
wireless connection to CME Group Data while providing Users the benefit
of receiving CME Group Data within co-location and with a lower latency
over the fiber optics option. The wireless connection for CME Group
Data would allow Users to select the CME Group Data connectivity option
that better suits their needs.
The Exchange believes that the proposed pricing is reasonable
because the Exchange proposes to offer the wireless connection to CME
Group Data described herein as a convenience to Users, but in order to
do so must provide, maintain and operate the Data Center facility
hardware and technology infrastructure. The Exchange must handle the
installation, administration, monitoring, support and maintenance of
such services, including by responding to any production issues. Since
the inception of co-location, the Exchange has made numerous
improvements to the network hardware and technology infrastructure and
has established additional administrative controls. The Exchange has
expanded the network infrastructure to keep pace with the increased
number of services available to Users. Specifically, in order to offer
wireless connections, the Exchange must install, test, maintain and
operate the wireless equipment.
The Proposed Change Is Not Unfairly Discriminatory
The Exchange believes that the proposed rule change is not unfairly
discriminatory for the following reasons.
Without this proposed rule change, Users would have fewer options
for connectivity to CME Group Data. The proposed change would provide
Users with an additional choice with respect to the form and optimal
latency of the connectivity they use to receive CME Group market data,
allowing a User to select the connectivity that better suits its needs,
helping it tailor its colocation operations to the requirements of its
business operations. Users that do not opt to utilize the Exchange's
proposed wireless connection would still be able to obtain CME Group
market data using other methods: From another User, a third party
wireless connection, or through an IDS or third party fiber connection.
The Exchange believes that it is not unfairly discriminatory to not
transport information for all of the symbols included in CME Group data
feeds to the Data Center, but rather to transport a subset of that
data. There is limited bandwidth available on the wireless network to
co-location, and there are a number of CME Group data feeds. Limiting
the feeds to the selection of CME Group market data regarding
securities for which IDS determines there is demand would allow Users
to receive the relevant CME Group Data over a wireless network. The
User would then determine those symbols for which it will receive data,
which could include data regarding some or all of the symbols for which
IDS provides connectivity.
The Exchange believes that the proposed pricing is not unfairly
discriminatory because the Exchange proposes to offer the wireless
connection to CME Group Data described herein as a convenience to
Users, but in order to do so must provide, maintain and operate the
Data Center facility hardware and technology infrastructure. The
Exchange must handle the installation, administration, monitoring,
support and maintenance of such services, including by responding to
any production issues. Since the inception of co-location, the Exchange
has made numerous improvements to the network hardware and technology
infrastructure and has established additional administrative controls.
The Exchange has expanded the network infrastructure to keep pace with
the increased number of services available to Users. Specifically, in
order to offer wireless connections, the Exchange must install, test,
maintain and operate the wireless equipment.
The Exchange believes that the proposed change is not unfairly
discriminatory because it will result in fees being charged only to
Users that voluntarily select to receive the corresponding services and
because those services will be available to all Users. Furthermore, the
Exchange believes that the services and fees proposed herein are not
unfairly discriminatory because, in addition to the services being
completely voluntary, they are available to all Users on an equal basis
(i.e., the same products and services are available to all Users). All
Users that voluntarily select wireless connections to CME Group Data
would be charged the same amount for the same services.
Users that opt to use wireless connections to CME Group Data would
receive the CME Group Data that is available to all Users, as all
market participants that contract with CME Group or its affiliate for
CME Group Data, as required, may receive it.
The Proposed Change Is an Equitable Allocation of Fees and Credits
The Exchange believes that its proposal equitably allocates its
fees among Users.
Without this proposed rule change, Users would have fewer options
for connectivity to CME Group Data. The proposed change would provide
Users with an additional choice with respect to the form and optimal
latency of the connectivity they use to receive CME Group market data,
allowing a User to select the connectivity that better suits its needs,
helping it tailor its colocation operations to the requirements of its
business operations. Users that do not opt to utilize the Exchange's
proposed wireless connection would still be able to obtain CME Group
market data using other methods: From another User, a third party
wireless connection, or through an IDS or third party fiber connection.
The Exchange believes that the proposed change is equitable because
it will result in fees being charged only to Users that voluntarily
select to receive the corresponding services and because those services
will be available to all Users. Furthermore, the Exchange believes that
the services and fees proposed herein are equitably allocated because,
in addition to the services being completely voluntary, they are
available to all Users on an equal basis (i.e., the same products and
services are available to all Users). All Users that voluntarily select
wireless connections
[[Page 64574]]
to CME Group Data would be charged the same amount for the same
services.
The Exchange operates in a highly competitive market in which
exchanges offer co-location services as a means to facilitate the
trading and other market activities of those market participants who
believe that co-location enhances the efficiency of their operations.
Accordingly, fees charged for co-location services are constrained by
the active competition for the order flow of, and other business from,
such market participants. If a particular exchange charges excessive
fees for co-location services, affected market participants will opt to
terminate their co-location arrangements with that exchange, and adopt
a possible range of alternative strategies, including placing their
servers in a physically proximate location outside the exchange's data
center (which could be a competing exchange), or pursuing strategies
less dependent upon the lower exchange-to-participant latency
associated with co-location. Accordingly, the exchange charging
excessive fees would stand to lose not only co-location revenues but
also the liquidity of the formerly co-located trading firms, which
could have additional follow-on effects on the market share and revenue
of the affected exchange.
For the reasons above, the proposed changes do not unfairly
discriminate between or among market participants that are otherwise
capable of satisfying any applicable co-location fees, requirements,
terms and conditions established from time to time by the Exchange.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposal will not impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of Section 6(b)(8) of the Act.\19\
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\19\ 15 U.S.C. 78f(b)(8).
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The proposed change does not affect competition among national
securities exchanges or among members of the Exchange, but rather
between IDS and its commercial competitors.
The wireless connection would provide Users with an alternative
means of connectivity to CME Group Data. The proposed change would
provide Users with an additional choice with respect to the form and
optimal latency of the connectivity they use to receive CME Group
market data, allowing a User to select the connectivity that better
suits its needs, helping it tailor its colocation operations to the
requirements of its business operations.
Users that do not opt to utilize the Exchange's proposed wireless
connection would still be able to obtain CME Group market data using
other methods: From another User, a third party wireless connection, or
through an IDS or third party fiber connection. Based on the
information available to it, the Exchange believes that at least one
market participant provides wireless connectivity to CME Group market
data in the Data Center. The Exchange believes that the wireless
connection offered by this third party entity provides connectivity at
the same or similar latency as the proposed connection to CME Group
Data, and at the same or similar cost. The proposed connection to CME
Group Data and the existing third party wireless connection to CME
Group Data would follow the same route within the Data Center: They
would both enter through a meet-me-room, connect to equipment in co-
location, and then connect to any Users that are customers. Because of
this, the Exchange does not believe that IDS has an advantage over the
third party in providing the connectivity. The proposed wireless
connection would lead to a pole, from where a fiber connection would
lead into the Data Center. The pole is owned by a third party and is
not on the grounds of the Data Center.
IDS already offers fiber connections to CME Group market data to
Users.\20\ The Exchange also believes that at least two third party
market participants offer such fiber connections to CME Group. In
addition to these options, a User may create a proprietary wireless
connection or connect through another User in order to connect to CME
Group market data. The Exchange believes that at least two market
participants already provide wireless connectivity to CME Group market
data to other data centers in New Jersey.
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\20\ See 82 FR 29604, supra note 12.
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The Exchange notes that the proposed wireless connection would
compete not just with other wireless connections to CME Group market
data, but also with fiber network connections, which may be more
attractive to some market participants as they are more reliable and
less susceptible to weather conditions. Market participants'
considerations in determining what connectivity to purchase may include
latency; the amount of network uptime; the equipment that the network
uses; the cost of the connection; and the applicable contractual
provisions. As noted above, a User may purchase a fiber connection to
CME Group market data from at least three providers, including IDS.
The Exchange operates in a highly competitive market in which
exchanges and other vendors (e.g., Hosting Users) offer co-location
services as a means to facilitate the trading and other market
activities of those market participants who believe that co-location
enhances the efficiency of their operations. The Commission has
repeatedly expressed its preference for competition over regulatory
intervention in determining prices, products, and services in the
securities markets. Specifically, in Regulation NMS, the Commission
highlighted the importance of market forces in determining prices and
SRO revenues and, also, recognized that current regulation of the
market system ``has been remarkably successful in promoting market
competition in its broader forms that are most important to investors
and listed companies.'' \21\
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\21\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
---------------------------------------------------------------------------
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
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 19(b)(3)(A) of the Act \22\ and Rule 19b-
4(f)(6) thereunder.\23\
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\22\ 15 U.S.C. 78s(b)(3)(A).
\23\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
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, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the 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
[[Page 64575]]
to determine whether the proposed rule change should be approved or
disapproved.
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#f082859c95dd939f9d9d959e8483b0839593de979f86"><span class="__cf_email__" data-cfemail="2250574e470f414d4f4f474c5651625147410c454d54">[email protected]</span></a>. Please include
File Number SR-NYSEArca-2021-97 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-NYSEArca-2021-97. 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-NYSEArca-2021-97, and should be
submitted on or before December 9, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-25124 Filed 11-17-21; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on November 18, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.