Notice2024-06581
Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Connectivity Fee Schedule
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Published
March 28, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 61 (Thursday, March 28, 2024)</title>
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[Federal Register Volume 89, Number 61 (Thursday, March 28, 2024)]
[Notices]
[Pages 21636-21640]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-06581]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99848; File No. SR-NYSE-2024-17]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Connectivity Fee Schedule
March 22, 2024.
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 March 15, 2024, 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 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 Connectivity Fee Schedule (``Fee
Schedule'') regarding colocation services and fees to update the list
of included data products. 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.
[[Page 21637]]
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 Connectivity Fee Schedule (``Fee
Schedule'') regarding colocation services and fees to update the list
of included data products (``Included Data Products'').
Currently, the table of Included Data Products in Colocation Note 4
sets forth the market data feeds that Users \4\ can connect to at no
additional cost when they purchase a service that includes access to
the LCN or IP network.\5\
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\4\ 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. 76008 (September 29, 2015), 80 FR 60190
(October 5, 2015) (SR-NYSE-2015-40). As specified in the Fee
Schedule, 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
Exchange's affiliates NYSE American LLC (``NYSE American''), NYSE
Arca, Inc. (``NYSE Arca''), NYSE Chicago, Inc. (``NYSE Chicago''),
and NYSE National, Inc. (``NYSE National'' and together, the
``Affiliate SROs''). Each Affiliate SRO has submitted substantially
the same proposed rule change to propose the changes described
herein. See SR-NYSEAMER-2024-20, SR-NYSEARCA-2024-28, SR-NYSECHX-
2024-13, and SR-NYSENAT-2024-11.
\5\ See Securities Exchange Act Release No. 79730 (January 4,
2017), 82 FR 3045 (January 10, 2017) (SR-NYSE-2016-92) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Amending
the Exchange's Price List Related to Colocation Services To Increase
LCN and IP Network Fees and Add a Description of Access To Trading
and Execution Services and Connectivity to Included Data Products).
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Each of the Exchange and the Affiliate SROs has filed to establish
an ``Aggregated Lite'' market data feed (the ``Aggregated Lite
Feeds'').\6\ Accordingly, the Exchange proposes to update the table of
Included Data Products to include the Aggregated Lite Feeds. To
implement the change, the Exchange proposes to update the table of
Included Data Products of the NYSE, NYSE American and NYSE Arca as
follows (proposed additions underlined):
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\6\ See Securities Exchange Act Release No. 99689 (March 7,
2024), 89 FR 18468 (March 13, 2024) (SR-NYSE-2024-12).
[GRAPHIC] [TIFF OMITTED] TN28MR24.031
When NYSE Chicago and NYSE National were added to the Included Data
Products, the individual market data feeds offered were not broken
out.\7\ Accordingly, in addition to adding the Aggregated Lite Feeds,
the Exchange proposes to break out the NYSE Chicago and NYSE National
market data feeds in Included Data Products, as follows (proposed
additions underlined):
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\7\ See Securities Exchange Act Releases No. 87408 (October 28,
2019), 84 FR 58778 (November 1, 2019) (SR-NYSECHX-2019-12) (Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Fee Schedule of NYSE Chicago, Inc.), and 83351 (May 31,
2018), 83 FR 26314 (June 6, 2018) (SR-NYSENAT-2018-07) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Adopt
Co-Location Services and Fees In Connection With the Re-Launch of
Trading on the Exchange and To Amend Its Schedule of Fees and
Rebates To Provide for Such Co-Location Services).
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[[Page 21638]]
[GRAPHIC] [TIFF OMITTED] TN28MR24.032
The Exchange expects that the present filing will become operative
immediately upon the filings to establish a fee for the Aggregated Lite
Feed becoming operative. The Exchange expects such operative date or
dates to be no later than the second quarter of 2024. It will announce
the date or dates through a customer notice.
The Exchange does not charge for connectivity to the Included Data
Feeds. Accordingly, it would not charge for connectivity to the
Aggregated Lite Feeds.
General
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 colocation
service, including connectivity to the Aggregated Lite Feeds, would be
completely voluntary and the Fee Schedule would be applied uniformly to
all Users. FIDS does not expect that the proposed rule change will
result in new Users.
The proposed changes are 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 customers 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,\8\ in general, and furthers the
objectives of section 6(b)(5) of the Act,\9\ 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,\10\ 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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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ 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
and would perfect the mechanisms of a free and open market and a
national market system and, in general, protect investors and the
public interest, because adding the Aggregated Lite Feeds would
increase the number of Included Data Products available to Users for no
additional charge. All Users that voluntarily select to access the LCN
or IP network would not be subject to a charge above and beyond the fee
paid for the relevant LCN or IP network access. Accordingly, the
Exchange believes that the proposed change is reasonable because the
change would mean that a User would have the option of adding
connectivity to additional market data feeds without paying additional
charges.
Adding the proposed additional Included Data Products would allow a
User to connect to any of the Aggregated Lite Feeds that it wished, but
would not require it to do so. As now, a User would be able to
determine which Included Data Products, if any, to which it connects,
based on what would best serve its needs, tailoring the service to the
requirements of its business operations.
The Exchange believes that the proposed rule change is reasonable
because, as with the other Included Data Products, it believes it is
not the exclusive method to connect to the Aggregated Lite Feeds. As
alternatives to connecting to the Aggregated Lite Feeds as Included
Data Products, a User may connect to the market data feeds through
another User or through a connection to an Exchange access center
outside the data center, third party access center, or third party
vendor.
By adding the Aggregated Lite Feeds and setting forth the NYSE
Chicago and NYSE National feeds already offered, the proposed change
would ensure that the list of Included Data Products was up to date and
consistent in the level of detail. Accordingly, the Exchange believes
that the proposed rule change is reasonable and would perfect the
mechanisms of a free and open market and a national market system and,
in general, protect investors and the public interest, as it would
ensure that the description of Included Data Products was complete,
ensuring that it is accessible and transparent, and providing market
participants with clarity as to what connectivity is included in the
purchase of access to the LCN and IP networks.
The Proposed Change Is Equitable and Not Unfairly Discriminatory
The Exchange believes that the proposed change 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 because adding the Aggregated Lite Feeds would increase the
number of Included Data Products available to Users for no additional
charge. All Users that voluntarily select to access the LCN or IP
network would not be subject to a charge above and beyond the fee paid
for the relevant LCN or IP network access. Accordingly, the Exchange
[[Page 21639]]
believes that the proposed change is equitable and not unfairly
discriminatory because the change would mean that a User would have the
option of adding connectivity to additional market data feeds without
paying additional charges.
Further, the Exchange believes that the proposed change is
equitable and not unfairly discriminatory since, as is true now, the
proposed change would not apply differently to distinct types or sizes
of Users but would apply to all Users equally. Moreover, adding the
proposed additional Included Data Products would allow a User to
connect to any of the Aggregated Lite Feeds that it wished, but would
not require it to do so. As now, a User would be able to determine
which Included Data Products, if any, to which it connects, based on
what would best serve its needs, tailoring the service to the
requirements of its business operations.
By adding the Aggregated Lite Feeds and setting forth the NYSE
Chicago and NYSE National feeds already offered, the proposed change
would ensure that the list of Included Data Products was up to date and
consistent in the level of detail. Accordingly, the Exchange believes
that the proposed rule change is equitable and not unfairly
discriminatory, as it would ensure that the description of Included
Data Products was complete, ensuring that it is accessible and
transparent, and providing market participants with clarity as to what
connectivity is included in the purchase of access to the LCN and IP
networks.
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.
For these reasons, the Exchange believes that the proposal is
consistent with the Act.
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.\11\
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\11\ 15 U.S.C. 78f(b)(8).
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The Exchange believes that the proposed rule change does not impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act because adding the Aggregated
Lite Feeds would increase the number of Included Data Products
available to Users for no additional charge. All Users that voluntarily
select to access the LCN or IP network would not be subject to a charge
above and beyond the fee paid for the relevant LCN or IP network
access. Accordingly, the change would mean that a User would have the
option of adding connectivity to additional market data feeds without
paying additional charges.
Adding the proposed additional Included Data Products would allow a
User to connect to any of the Aggregated Lite Feeds that it wished, but
would not require it to do so. In this way, the proposed changes would
enhance competition by, as now, enabling a User to determine to which
Included Data Products, if any, it connects, based on what would best
serve its needs, tailoring the service to the requirements of its
business operations.
The Exchange believes that the proposed rule change does not impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act because, as with the other
Included Data Products, it believes it is not the exclusive method to
connect to the Aggregated Lite Feeds. As alternatives to connecting to
the Aggregated Lite Feeds as Included Data Products, a User may connect
to the market data feeds through another User or through a connection
to an Exchange access center outside the data center, third party
access center, or third party vendor.
By adding the Aggregated Lite Feeds and setting forth the NYSE
Chicago and NYSE National feeds already offered, the proposed change
would ensure that the list of Included Data Products was up to date and
consistent in the level of detail. Accordingly, the Exchange believes
that the proposed additions to the description of Included Data
Products would make the description more accessible and transparent. In
this manner, the proposed change would provide market participants with
clarity as to what connectivity is included in the purchase of access
to the LCN and IP networks, thereby enhancing competition by ensuring
that all Users have access to the same information regarding the
Included Data Products.
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 \12\ and Rule 19b-4(f)(6) thereunder.\13\
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.\14\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ 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) \15\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\15\ 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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#0371766f662e606c6e6e666d7770437066602d646c75"><span class="__cf_email__" data-cfemail="a3d1d6cfc68ec0cccecec6cdd7d0e3d0c6c08dc4ccd5">[email protected]</span></a>. Please include
file number SR-NYSE-2024-17 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange
[[Page 21640]]
Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-NYSE-2024-17. 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="https://www.sec.gov/rules/sro.shtml">https://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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-NYSE-2024-17 and should be
submitted on or before April 18, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-06581 Filed 3-27-24; 8:45 am]
BILLING CODE 8011-01-P
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