Notice2022-16254
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Equities Fees and Charges and the NYSE Arca Options Fees and Charges
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Published
July 29, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 145 (Friday, July 29, 2022)</title>
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[Federal Register Volume 87, Number 145 (Friday, July 29, 2022)]
[Notices]
[Pages 45831-45834]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-16254]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95360; File No. SR-NYSEArca-2022-41]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE
Arca Equities Fees and Charges and the NYSE Arca Options Fees and
Charges
July 25, 2022.
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 July 12, 2022, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
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 the NYSE Arca Equities Fees and
Charges and the NYSE Arca Options Fees and Charges (together, the ``Fee
Schedules'') related to co-location to related to colocation to remove
obsolete text. 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 Exchange proposes to amend the Fee Schedules related to
colocation to remove obsolete text.\4\
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\4\ The Exchange is an indirect subsidiary of Intercontinental
Exchange, Inc. (``ICE''). Each of the Exchange's affiliates New York
Stock Exchange LLC, NYSE American LLC, NYSE Chicago, Inc., and NYSE
National, Inc. has submitted substantially the same proposed rule
change to propose the changes described herein. See SR-NYSE-2022-30,
SR-NYSEAMER-2022-31, SR-NYSECHX-2022-17, and SR-NYSENAT-2022-12.
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(1) Proposal To Change Names of Select Third Party Systems and Third
Party Data Feeds
As set forth in the Fee Schedules, the Exchange charges fees for
connectivity to the execution systems of third party markets and other
content service providers (``Third Party Systems''), and data feeds
from third party markets and other content service providers (``Third
Party Data Feeds'').\5\ The lists of Third Party Systems and Third
Party Data Feeds are set forth in the Fee Schedules.
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\5\ See Securities Exchange Act Release No. 80310 (March 24,
2017, 82 FR 15763 (March 30, 2017) (SR-NYSEArca-2016-89).
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The Exchange proposes to amend the list of Third Party Systems in
the Fee Schedules to reflect the following updated names for existing
Third Party Systems:
<bullet> Change the name of the ``Miami International Securities
Exchange'' to ``MIAX Options,'' and
<bullet> Change the name of the ``MIAX PEARL'' to ``MIAX PEARL
Options.''
The Exchange also proposes to amend the list of Third Party Data
Feeds in the Fee Schedules to reflect the following updated names for
existing Third Party Data Feeds:
<bullet> Change the name ``Miami International Securities Exchange/
MIAX PEARL'' to ``MIAX Options/MIAX PEARL Options;'' and
[[Page 45832]]
<bullet> Change ``SR Labs--SuperFeed'' data feeds to ``Vela--
SuperFeed,'' to reflect the content provider's recent change to the
name of these products.
This change would update the names of these services, but would not
make any change to the services provided.
(2) Proposal To Delete Discontinued Third Party Data Feed
The Exchange proposes to delete the ``NASDAQ OMDF'' data feed from
the list of available Third Party Data Feeds, as it is no longer
offered by the content service provider.
(3) Proposal To Remove References to ICE Data Global Index
The Exchange proposes to remove obsolete references to the ICE Data
Global Index (the ``GIF'') from the list of Third Party Data Feeds
available for connectivity and related text.
In May 2020, ICE, which publishes the GIF, announced to its
customers that before the end of 2020, it would cease offering the GIF
as a stand-alone product. The Exchange accordingly amended the Fee
Schedules to inform customers that it would cease offering connectivity
to the GIF once it is no longer available.\6\
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\6\ See Securities Exchange Act Release No. 88980 (June 1,
2020), 85 FR 34697 (June 5, 2020) (SR-NYSEArca-2020-49).
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ICE has informed the Exchange that it ceased offering the GIF as a
stand-alone product, making the references to the GIF obsolete. The
operative date was announced through a customer notice. Accordingly,
the Exchange proposes to remove ``ICE Data Global Index*'' and the
corresponding asterisked note from the Fee Schedules.
In order to implement the proposed change, the Exchange proposes to
make the following changes to the sections of the Fee Schedules
entitled ``Connectivity to Third Party Data Feeds'':
<bullet> In the first paragraph and in the table of Third Party
Data Feeds, delete ``ICE Data Global Index*''.
<bullet> Following the table of Third Party Data Feeds, delete the
following text:
* ICE will cease to offer the GIF as a stand-alone product, which
the Exchange has been informed by ICE is currently expected to occur
before the end of 2020. The Exchange will announce the operative date
through a customer notice. Any change fees that a User would otherwise
incur as a result of the proposed change will be waived.
(4) Proposal To Remove the Temporary Waiver of Hot Hands Fees
The Exchange proposes to remove the obsolete reference to the
waiver of Hot Hands fees in light of the reopening of the data center
in Mahwah, New Jersey (``Mahwah Data Center'' or ``MDC'').
In March 2020, ICE announced to each User that, starting on March
16, 2020, the MDC would be closed to third parties in response to
COVID-19. The Exchange temporarily waived all Hot Hands fees from the
date of the closing through the date of the reopening of the MDC, and
added a note to the fees for the Hot Hands service stating as much.\7\
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\7\ The Exchange first waived the Hot Hands Fee in a March 17,
2020 filing, and subsequently extended the waiver four times. See
Securities Exchange Act Release Nos. 88398 (March 17, 2020), 85 FR
16398 (March 23, 2020) (SRNYSEArca-2020-22); 88520 (March 31, 2020),
85 FR 19208 (April 6, 2020) (SRNYSEArca-2020-26); 88961 (May 27,
2020), 85 FR 33755 (June 2, 2020) (SRNYSEArca-2020-47); 89174 (June
29, 2020), 85 FR 40349 (July 6, 2020) (SRNYSEArca-2020-58); and
89652 (August 25, 2020), 85 FR 53885 (August 31, 2020) (SR-NYSEArca-
2020-74).
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The MDC reopened on October 1, 2020. The date of the reopening was
announced through a customer notice. As a result of the reopening, the
waiver of Hot Hands fees ceased, and the note became obsolete. The
Exchange now proposes to remove the obsolete text.
In order to implement this proposed change, the Exchange proposes
to make the following changes to the Fee Schedules:
<bullet> In the Types of Service table, remove the ``[dagger]''
symbol after ``Hot Hands Service* * *''.
<bullet> Following the Types of Service table, remove the following
text:
[dagger] Fees for Hot Hands Services will be waived beginning on
March 16, 2020 through the reopening of the Mahwah, New Jersey data
center. The date of the reopening will be announced through a customer
notice.
(5) Proposal To Remove Obsolete Text About Transition Period for
Suspended Services
The Exchange proposes to remove obsolete text regarding the
transition period that expired on May 24, 2021 concerning the
Exchange's provision of suspended services at no charge.
As background, on March 10, 2021, the Exchange filed with the
Commission a proposed rule change for immediate effectiveness that
amended the colocation services offered by the Exchange to provide
Users the option to access the systems and data feeds of various
additional third parties.\8\ The proposed rule change became operative
on April 9, 2021, and five Users subsequently contracted to receive the
services that were added in the filing.
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\8\ See Securities Exchange Act Release No. 91388 (March 23,
2021), 86 FR 16433 (March 29, 2021) (NYSEArca-2021-15).
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On May 7, 2021, the Commission suspended the filing and instituted
proceedings to determine whether the proposed rule change should be
approved or disapproved.\9\ Such action suspended the Exchange's
ability to offer access to Third Party Systems from Long Term Stock
Exchange, Members Exchange, MIAX Emerald, MIAX PEARL Equities, Morgan
Stanley, and TD Ameritrade, and to offer connectivity to Third Party
Data Feeds from ICE Data Services--ICE TMC, Members Exchange, MIAX
Emerald, and MIAX PEARL Equities (together, the ``Suspended
Services'').
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\9\ See Securities Exchange Act Release No. 91790 (May 7, 2021)
(SR-NYSE-2021-15, SR-NYSEAMER-2021-13, SR-NYSEArca-2021-15, SR-
NYSECHX-2021-04, SR-NYSENAT-2021-05).
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On May 12, 2021, the Commission approved for immediate
effectiveness the Exchange's filing proposing to provide the Suspended
Services to all Users, at no charge, for a period of 14 days
(``Transition Period'') through May 24, 2021, to enable current Users
to maintain their connectivity while establishing alternate
connectivity.\10\
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\10\ See Securities Exchange Act Release No. 91861 (May 12,
2021) (SR-NYSEArca-2021-38).
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Given that the Transition Period has expired, the Exchange proposes
to remove the obsolete text regarding this provision. To that end, the
Exchange proposes to delete the following text:
Connectivity to Suspended Third Party Systems and Suspended Third
Party Data Feeds
Connectivity to the Third Party Systems and Third Party Data
Feeds listed below (``Suspended Services'') is available until May
24, 2021 (``Transition Period''). During the Transition Period, the
Exchange will not charge any fees for the Suspended Services. At the
conclusion of the Transition Period, any remaining customers of
Suspended Services will have their Suspended Services terminated.
Suspended Third Party Systems
Long Term Stock Exchange (LTSE)
Members Exchange (MEMX)
MIAX Emerald
MIAX PEARL Equities
Morgan Stanley
TD Ameritrade
Suspended Third Party Data Feeds
ICE Data Services--ICE TMC
Members Exchange (MEMX)
MIAX Emerald
MIAX PEARL Equities
(6) Proposal To Remove LCN Access--1 Gb Circuit
The Exchange proposes to delete the service ``LCN Access--1 Gb
Circuit'' from the list of available types of services. The number of 1
Gb LCN ports purchased by Users has steadily declined from 4 in 2017,
to 2 in 2018,
[[Page 45833]]
to 1 in 2021, to zero currently. The Exchange understands that this
fall-off in demand for the 1 Gb LCN port is due to the fact that market
data feeds continue to increase in bandwidth, such that Users prefer to
purchase larger port sizes. Indeed, the last remaining User with a 1 Gb
LCN port discontinued that port in June 2022 and has switched to a 10
Gb LCN port instead. The Exchange believes that there is no remaining
User demand for the 1 Gb LCN port, and accordingly, the Exchange
proposes to discontinue the service as obsolete.
Application and Impact of the Proposed Changes
The Exchange does not expect that the proposed changes would have
any impact. The proposed changes would not apply differently to
distinct types or sizes of market participants. Rather, they would
apply to all Users \11\ equally. As is currently the case, the purchase
of any colocation service is completely voluntary and the Fee Schedules
are applied uniformly to all Users.
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\11\ For purposes of the Exchange's colocation services, a
``User'' means any market participant that requests to receive
colocation services directly from the Exchange. See 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 colocation fees for a particular
colocation service pursuant thereto would not be subject to
colocation fees for the same colocation service charged by the
Affiliate SROs.
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Competitive Environment
The proposed changes are not otherwise intended to address any
other issues relating to colocation 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,\12\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\13\ 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.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that updating the names of existing Third
Party Services and Third Party Data Feeds and removing obsolete text
from the Fee Schedules would perfect the mechanisms of a free and open
market and a national market system and, in general, protect investors
and the public interest. Updating the names of the Third Party Services
and Third Party Data Feeds at issue will enhance the clarity and
transparency of the Fee Schedules and reduce potential customer
confusion. Removing obsolete references to (i) the GIF and its
associated fee, (ii) the note regarding the Hot Hands service, and
(iii) the availability of the Suspended Services would make it easier
to read, understand, and administer the Fee Schedules, enhancing their
clarity and transparency and alleviating possible customer confusion.
Similarly, the Exchange believes that discontinuing offering the 1
Gb LCN connection would perfect the mechanisms of a free and open
market and a national market system and, in general, protect investors
and the public interest. Demand for the 1 Gb LCN connection has
declined in recent years and there are currently no Users that
subscribe to the service. The Exchange does not expect demand to
rebound given Users' overall preference for larger port sizes to
accommodate larger market data feeds. Removing references to the fees
for this obsolete service from the Price List would make the Price List
easier to read, understand, and administer.
The Exchange believes that the proposed rule change does not
significantly affect the protection of investors or the public
interest. The proposed rule change would update obsolete product names,
delete obsolete services, and remove obsolete text from the Fee
Schedules, in order to enhance transparency and alleviate potential
customer confusion.
The Exchange believes that updating the names of existing Third
Party Systems and Third Party Data Feeds and removing obsolete text
from the Fee Schedules would not permit unfair discrimination between
customers, issuers, brokers, or dealers. The proposed changes would
apply equally to all Users: the names of the existing systems and data
feeds at issue would be updated and clarified in the Fee Schedules for
all Users; the obsolete 1 Gb LCN connection would be removed for all
Users; and obsolete text regarding the GIF, the note to the Hot Hands
service, and the availability of the Suspended Services would be
removed from the Fee Schedules as to all Users.
For these 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,\14\ the Exchange
believes that the proposed rule change will not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.
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\14\ 15 U.S.C. 78f(b)(8).
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The Exchange believes that the proposed rule change would not place
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change is not
designed to address any competitive issues but rather is designed to
enhance the clarity and transparency of the Fee Schedules and alleviate
possible customer confusion that may arise from the inclusion of
obsolete services and product names.
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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-4(f)(6) thereunder.\16\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\17\
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\15\ 15 U.S.C. 78s(b)(3)(A)(iii).
\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange 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 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) \18\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\18\ 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#790b0c151c541a1614141c170d0a390a1c1a571e160f"><span class="__cf_email__" data-cfemail="1a686f767f37797577777f746e695a697f79347d756c">[email protected]</span></a>. Please include
File Number SR-NYSEArca-2022-41 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-2022-41. 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-2022-41 and should be submitted
on or before August 19, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-16254 Filed 7-28-22; 8:45 am]
BILLING CODE P
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