Notice2024-08490
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Connectivity Fee Schedule
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
April 22, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 78 (Monday, April 22, 2024)</title>
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[Federal Register Volume 89, Number 78 (Monday, April 22, 2024)]
[Notices]
[Pages 29413-29418]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-08490]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99970; File No. SR-NYSEARCA-2024-32]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Connectivity Fee Schedule
April 16, 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 April 2, 2024, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission
[[Page 29414]]
(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 the Connectivity Fee Schedule to
amend the wireless connectivity services that transport market data to
Markham, Canada. 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 Connectivity Fee Schedule to
amend the wireless connectivity services that transport market data to
Markham, Canada.
The Exchange expects that the proposed rule change would become
operative no later than June 30, 2024. It will announce the proposed
change to all Fixed Income and Data Services (``FIDS'') customers in
the Markham, Canada third party access center (``Markham'').
Current Markham Services
Currently, a market participant in Markham may purchase a wireless
connection to connect to a selection of symbols from the NYSE BBO and
Trades data feeds or the NYSE Arca BBO and Trades data feeds (the
``Current Market Data Connection'') distributed from the Mahwah, New
Jersey data center (``MDC'').\4\ Customers that purchase a Current
Market Data Connection are charged a non-recurring initial charge of
$5,000 and a $6,500 monthly fee (``MRC'').
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\4\ See Securities Exchange Act Release No. 90209 (October 15.
2020), 85 FR 67044 (October 21, 2020). Through its FIDS business,
Intercontinental Exchange, Inc. (``ICE'') operates the MDC. The New
York Stock Exchange LLC (``NYSE''), NYSE American LLC, NYSE Chicago,
Inc. and NYSE National, Inc. are national securities exchanges that
are affiliates of the Exchange (collectively, the ``Affiliate
SROs''). The Exchange and the Affiliate SROs are indirect
subsidiaries of ICE.
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There is limited bandwidth available on the wireless network to
Markham. Accordingly, the Current Market Data Connection does not
transport information for all the symbols included in the NYSE BBO and
Trades and NYSE Arca BBO and Trades data feeds. Rather, FIDS provides
connectivity to a selection of such symbols, including the data for
which there is demand (the ``Current Market Data''). When a market
participant requests a Current Market Data Connection, it receives
connectivity to the portions of the NYSE BBO and Trades and NYSE Arca
BBO and Trades data that FIDS transmits wirelessly. The customer then
determines the symbols in the Current Market Data for which it will
receive data.
Proposed Changes to Markham Services
The Exchange proposes to replace (a) the source of the selection of
symbols from the NYSE BBO and Trades to the NYSE Integrated Feed
(``NYSE IF''), and (b) the source of the selection of symbols from the
NYSE Arca BBO and Trades to the NYSE Arca Integrated Feed (``NYSE Arca
IF'' and together with the NYSE IF, the ``Integrated Feeds'').
As there is limited bandwidth available on the wireless network to
Markham, the Exchange proposes that, similar to the Current Market Data
Connection, the proposed market data connection (``Proposed Market Data
Connection'') would not transport information for all the symbols
included in the NYSE IF and NYSE Arca IF. Rather, FIDS would provide
connectivity to a selection of such symbols, including the symbols in
the Integrated Feeds for which there is demand (the ``Proposed Market
Data''). When a market participant requested a Proposed Market Data
Connection, it would receive connectivity to the portions of the NYSE
IF and NYSE Arca IF that FIDS transmits wirelessly. The customer would
then determine the symbols in the Proposed Market Data for which it
would receive data. As now, the Exchange would not have visibility into
which portions of the data feed a given customer chooses to receive.
Importantly, FIDS does not plan to change the symbols and
information available. Because NYSE IF includes all data in the NYSE
BBO and Trades feeds, and NYSE Arca IF includes all data in the NYSE
Arca BBO and Trades feeds,\5\ FIDS anticipates that customers will
continue to connect to the same selection of symbols and information,
and so there will be no impact on the customers due to the change. It
does not currently plan to do so, but if in the future FIDS changes the
symbols or information available, customers may have the option of
connecting to additional symbols or information that are not part of
the Current Market Data but are part of the Proposed Market Data.
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\5\ Although their list of symbols is the same, the Integrated
Feeds provide the information in the NYSE BBO and Trades and NYSE
Arca BBO and Trades data feeds, and more. The NYSE BBO and NYSE Arca
BBO data feeds distribute on a real-time basis the same best bid and
offer (``BBO'') information that NYSE and NYSE Arca, respectively,
report under the Consolidated Quotation (``CQ'') Plan for inclusion
in the CQ Plan's consolidated quotation information data stream. The
NYSE Trades and NYSE Arca Trades data feeds distribute on a real-
time basis the same last sale information that NYSE and NYSE Arca,
respectively, report under the Consolidated Tape Association
(``CTA'') Plan for inclusion in the CTA Plan's consolidated data
streams. See Securities Exchange Act Release No. 99591 (February 23,
2024), 89 FR 14915 (February 29, 2024) (SR-NYSE-2024-08) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
the Content of the NYSE Best Quotes & Trades Data Feed). In addition
to the BBO and last sale information, the Integrated Feeds provide
real-time market data in a unified view of events, in sequence, as
they appear on the NYSE and NYSE Arca matching engine, respectively.
They include depth of book order data, and opening and closing
imbalance data, as well as security status updates (e.g., trade
corrections and trading halts) and stock summary messages. See
Securities Exchange Act Release Nos. 99689 (March 7, 2024), 89 FR
18466 (March 13, 2024) (SR-NYSE-2024-12, at note 10 (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To
Establish the NYSE Aggregated Lite Market Data Feed), and 19381
(March 12, 2024), 89 FR 19381 (March 18, 2024) (SR-NYSEArca-2024-
22), at note 10 (Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Establish the NYSE Arca Aggregated Lite
Market Data Feed).
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The charges for the services would not change. As is true now, the
proposal would waive the first month's MRC, to allow customers to test
a new Proposed Market Data Connection for a month before incurring any
MRC.\6\ Also as currently true, the fees for a Proposed Market Data
Connection would not include the cost of the Integrated Feeds
themselves, just the connection.
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\6\ Customers that have a Current Market Data Connection would
not receive a second waiver.
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In order to implement the proposed change, the Exchange proposes to
make the following changes to the
[[Page 29415]]
Connectivity Fee Schedule under ``C. Wireless Connectivity to Market
Data'' (proposed additions italicized and proposed deletions in
brackets):
------------------------------------------------------------------------
Type of service Amount of charge
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NYSE [BBO and Trades]Integrated Feed: $5,000 per connection
Wireless Connection in Markham, Canada initial charge plus monthly
access center. charge per connection of
$6,500.
NYSE Arca [BBO and Trades]Integrated Feed: $5,000 per connection
Wireless Connection in Markham, Canada initial charge plus monthly
access center. charge per connection of
$6,500.
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As now, the Proposed Market Data Connections would not utilize the
pole on the grounds of the MDC.
The Proposed Market Data
Like the NYSE BBO and Trades and NYSE Arca BBO and Trades, the
Integrated Feeds are generated at the MDC in the trading and execution
systems of the NYSE and NYSE Arca. In each case, the NYSE or NYSE Arca,
as applicable, files with the Commission for the Integrated Feed it
generates, and the related fees.\7\ The filed market data fees apply to
all customers of the Integrated Feeds, no matter what form of
connectivity or connectivity provider they use.
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\7\ See Securities Exchange Act Release Nos. 74128 (January 23,
2015), 80 FR 4951 (January 29, 2015) (SR-NYSE-2015-03) (notice of
filing and immediate effectiveness of proposed rule change
establishing the NYSE Integrated Feed data feed); 76485 (November
20, 2015), 80 FR 74158 (November 27, 2015) (SR-NYSE-2015-57) (notice
of filing and immediate effectiveness of a proposed rule change
establishing fees for the NYSE Integrated Feed); 65669 (November 2,
2011), 76 FR 69311 (November 8, 2011) (SR-NYSEArca-2011-78) (notice
of filing and immediate effectiveness of proposed rule change
offering the NYSE Arca Integrated Feed); and 66128 (January 10,
2012), 77 FR 2331 (January 17, 2012) (SR-NYSEArca-2011-96) (notice
of filing and immediate effectiveness of a proposed rule change
establishing fees for NYSE Arca Integrated Feed).
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When a market participant wants to connect to an Integrated Feed,
it requests a connection from the provider of its choice. All
providers, including FIDS, may only provide the market participant with
connectivity once the provider has received confirmation from the NYSE
or NYSE Arca, as applicable, that the market participant is authorized
to receive the requested data feed.
Application and Impact of the Proposed Change
The proposed change would apply to all customers equally. The
proposed change would not apply differently to distinct types or sizes
of market participants. As is currently the case, the purchase of any
connectivity service is completely voluntary and the Connectivity Fee
Schedule is applied uniformly to all customers.
The Exchange is proposing the change at the request of FIDS
customers. The customers in Markham that would be affected by the
proposed change have stated to FIDS that they would prefer connectivity
to the Proposed Market Data instead of the Current Market Data. It is
the Exchange's understanding that they connect to the Integrated Feeds
in Markham over a fiber connection. Given that, changing to the
Proposed Market Data may remove the necessity of their also subscribing
to NYSE BBO and Trades or NYSE Arca BBO and Trades.
FIDS does not expect that the proposed change will result in new
customers in Markham.
The proposed change is not intended to address any other issues
relating to connectivity 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 mechanisms of, a free and open market and a national market
system and, in general, to protect investors and the public interest
and does not unfairly discriminate 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 to the wireless
connectivity services that transport market data to Markham would
remove impediments to, and perfect the mechanisms of, a free and open
market and a national market system, and, in general, protect investors
and the public interest, as the change would respond to customer
requests while keeping the cost the same.
Importantly, FIDS does not plan to change the symbols and
information available. Because NYSE IF includes all data in the NYSE
BBO and Trades feeds, and NYSE Arca IF includes all data in the NYSE
Arca BBO and Trades feeds, FIDS anticipates that customers will
continue to connect to the same selection, and so there will be no
impact on the customers due to the change.
It does not currently plan to do so, but if FIDS does change the
symbols or information available, customers may have the option of
connecting to additional symbols or information that are not part of
the Current Market Data but are part of the Proposed Market Data. NYSE
IF and NYSE Arca IF include additional data, such as depth of book
order data, last sale data, and opening and closing imbalance data, as
well as the data in the Current Market Data. As a result, customers in
Markham may be able to select what market data they wish to receive
from an expanded set.
At the same time, there would be no change to the costs for the
Current Market Data Connection. The Exchange believes that it is
reasonable that the fee remain the same because, as noted above, FIDS
anticipates that customers will continue to connect to the same
selection of symbols and, even if there is a change in the information
available, there is limited bandwidth available on the wireless network
to Markham, and that would not change.
The Exchange is not aware of any other public, commercially
available wireless connections between the MDC and Markham that connect
to the Proposed Market Data. However, the third party McKay Brothers
LLC (``McKay'') offers wireless connectivity between the MDC and
Markham. Such wireless connection would compete with the Exchange's
Proposed Market Data Connection, as customers could use the McKay
wireless connection to transport the Proposed Market Data.
In addition, the Exchange understands that other providers offer
connectivity to the Proposed Market
[[Page 29416]]
Data in Markham through fiber connections. Such third party providers
obtain one or more of the Integrated Feeds from FIDS at the MDC and
send it over their own fiber networks to Markham. It is the Exchange's
understanding that various customers already connect to the Proposed
Market Data over a fiber connection. The Exchange does not know how
many firms distribute the Proposed Market Data in Markham.
Additional third party competitors could offer fiber or wireless
connectivity to the Proposed Market Data in Markham by obtaining the
market data at the MDC and sending it over a fiber or wireless network
to Canada. A market participant in Markham also may create a
proprietary market data connection, whether fiber or wireless; connect
through another market participant; utilize fiber connections offered
by third parties; or utilize fiber connections offered by FIDS. The
Exchange could not impose any impediments to a third party seeking to
offer a similar service, including by placing them at a latency or
other competitive disadvantage with respect to the Exchange.
Wireless connections and fiber connections to the Proposed Market
Data in Markham would compete with each other. Given the various
advantages and disadvantages of both wireless and fiber connections, a
market participant interested in purchasing a connection to the
Proposed Market Data in Markham is likely to consider a variety of
factors in deciding whether to use a wireless versus fiber connection,
including latency; the amount of network uptime; the equipment 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 does not believe that FIDS would have any competitive
advantage over any future providers of wireless connectivity to the
Proposed Market Data in Markham. The Proposed Market Data Connection
does not have any special access to or advantage within the MDC. The
Integrated Feeds are generated at the MDC in the trading and execution
systems of the NYSE and NYSE Arca. FIDS would collect the Proposed
Market Data, then send it over the Proposed Market Data Connection by
connecting to equipment in an MDC meet-me-room and from there to a
pole. The pole is owned by a third party and is not on the grounds of
the MDC, and the path into the MDC through a meet-me-room is available
to any telecommunications provider. Further, all distances in the MDC
are normalized.
The Exchange believes that the proposed rule change is reasonable
because a market participant in Markham that opted for a Proposed
Market Data Connection would be able to select the specific Proposed
Market Data that it wanted to receive in accordance with its needs,
thereby helping it tailor its operations to the requirements of its
business operations.
The Proposed Change Is an Equitable Allocation of Fees and Credits
The Exchange believes that its proposal equitably allocates its
fees among market participants.
The Exchange believes that the proposed rule change to the wireless
connectivity services that transport market data to Markham would be
equitable as the change would respond to customer requests while
keeping the cost the same. The customers in Markham that would be
affected by the proposed change have stated that they would prefer
connectivity to the Proposed Market Data instead of the Current Market
Data. If they already subscribe to one or more of the Integrated Feeds,
changing to the Proposed Market Data may remove the necessity of their
also subscribing to NYSE BBO and Trades or NYSE Arca BBO and Trades.
Importantly, FIDS does not plan to change the symbols and
information available. Because NYSE IF includes all data in the NYSE
BBO and Trades feeds, and NYSE Arca IF includes all data in the NYSE
Arca BBO and Trades feeds, FIDS anticipates that customers will
continue to connect to the same selection, and so there will be no
impact on the customers due to the change.
It does not currently plan to do so, but if FIDS does change the
symbols or information available, customers may have the option of
connecting to additional symbols or information that are not part of
the Current Market Data but are part of the Proposed Market Data. NYSE
IF and NYSE Arca IF include additional data as well as the data in the
NYSE and NYSE Arca BBO and Trades Feeds. As a result, customers in
Markham may be able to select what market data they wish to receive
from an expanded set.
At the same time, there would be no change to the costs for the
Current Market Data Connection. The Exchange believes that it is
equitable that the fee remain the same because, as noted above, FIDS
anticipates that customers will continue to connect to the same
selection of symbols and, even if there is a change in the information
available, there is limited bandwidth available on the wireless network
to Markham, and that would not change.
The McKay wireless connection would compete with the Proposed
Market Data Connection, as customers could use the McKay wireless
connection to transport Proposed Market Data. The Exchange is not aware
of any other public, commercially available wireless connections to the
Proposed Market Data between the MDC and Markham. Based on the
information available to it, the Exchange understands that other
providers offer connectivity to the Proposed Market Data in Markham
through fiber connections. It is the Exchange's understanding that
various customers already connect to the Proposed Market Data over a
fiber connection, and so the Proposed Market Data Connection may act as
a supplement to their existing fiber connections. The Exchange does not
know how many firms redistribute the Proposed Market Data in Markham.
Additional third party competitors could offer fiber or wireless
connectivity to the Proposed Market Data in Markham by obtaining the
market data at the MDC and sending it over a fiber or wireless network
to Canada. A market participant in Markham also may create a
proprietary market data connection, whether fiber or wireless; connect
through another market participant; utilize fiber connections offered
by third parties; or utilize fiber connections offered by FIDS. The
Exchange could not impose any impediments to a third party seeking to
offer a similar service, including by placing them at a latency or
other competitive disadvantage with respect to the Exchange.
The Exchange believes that the proposed change is equitable because
it will result in fees being charged only to market participants that
voluntarily select to receive the corresponding services and because
those services will be available to all market participants.
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 market
participants on an equal basis (i.e., the same products and services
are available to all market participants). All market participants that
voluntarily select a Proposed Market Data Connection would be charged
the same amount for the same services.
[[Page 29417]]
The Proposed Change Is Not Unfairly Discriminatory
The Exchange believes that the proposed rule change is not unfairly
discriminatory, for the following reasons.
The Exchange believes that the proposed rule change to the wireless
connectivity services that transport market data to Markham is not
unfairly discriminatory, as the change would respond to customer
requests while keeping the cost the same. The customers in Markham that
would be affected by the proposed change have stated that they would
prefer connectivity to the Proposed Market Data instead of the Current
Market Data. If they already subscribe to one or more of the Integrated
Feeds, changing to the Proposed Market Data may remove the necessity of
their also subscribing to NYSE BBO and Trades or NYSE Arca BBO and
Trades.
Importantly, FIDS does not plan to change the symbols and
information available. Because NYSE IF includes all data in the NYSE
BBO and Trades feeds, and NYSE Arca IF includes all data in the NYSE
Arca BBO and Trades feeds, FIDS anticipates that customers will
continue to connect to the same selection, and so there will be no
impact on the customers due to the change.
It does not currently plan to do so, but if FIDS does change the
symbols or information available, customers may have the option of
connecting to additional symbols or information that are not part of
the Current Market Data but are part of the Proposed Market Data. NYSE
IF and NYSE Arca IF include additional data, such as depth of book
order data, last sale data, and opening and closing imbalance data, as
well as the data in the Current Market Data. As a result, customers in
Markham may be able to select what market data they wish to receive
from an expanded set.
At the same time, there would be no change to the cost for the
Current Market Data Connection. The Exchange believes that it is not
unfairly discriminatory that the fee remain the same because, as noted
above, FIDS anticipates that customers will continue to connect to the
same selection of symbols and, even if there is a change in the
information available, there is limited bandwidth available on the
wireless network to Markham, and that would not change.
The Exchange believes that the proposed change is not unfairly
discriminatory because it will result in fees being charged only to
market participants that voluntarily select to receive the
corresponding services and because those services will be available to
all market participants. 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 market participants on an equal basis (i.e., the
same products and services are available to all market participants).
All market participants that voluntarily select a Proposed Market Data
Connection would be charged the same amount for the same services.
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 proposed rule changes 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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Importantly, FIDS does not plan to change the symbols and
information available. Because NYSE IF includes all data in the NYSE
BBO and Trades feeds, and NYSE Arca IF includes all data in the NYSE
Arca BBO and Trades feeds, FIDS anticipates that customers will
continue to connect to the same selection, and so there will be no
impact on customers due to the change.
It does not currently plan to do so, but if FIDS does change the
symbols or information available, customers may have the option of
connecting to additional symbols or information that are not part of
the Current Market Data but are part of the Proposed Market Data. NYSE
IF and NYSE Arca IF include additional data, such as depth of book
order data, last sale data, and opening and closing imbalance data, as
well as the data in the Current Market Data. As a result, customers in
Markham may be able to select what market data they wish to receive
from an expanded set.
At the same time, there would be no change to the costs for the
Current Market Data Connection. As noted above, FIDS anticipates that
customers will continue to connect to the same selection of symbols
and, even if there is a change in the information available, there is
limited bandwidth available on the wireless network to Markham, and
that would not change.
The McKay wireless connection would compete with the Exchange's
Proposed Market Data Connection, as customers could use the McKay
wireless connection to transport the Proposed Market Data. The Exchange
is not aware of any other public, commercially available wireless
connections to the Proposed Market Data between the MDC and Markham.
Based on the information available to it, the Exchange understands
that other providers offer connectivity to the Proposed Market Data in
Markham through fiber connections. Such third party providers obtain
one or both of the Integrated Feeds from FIDS at the MDC and send it
over their own fiber networks to Markham. It is the Exchange's
understanding that various customers already connect to the Proposed
Market Data over a fiber connection, and so the Proposed Market Data
Connection may act as a supplement to their existing fiber connections.
The Exchange does not know how many firms redistribute the Proposed
Market Data in Markham.
Additional third party competitors could offer fiber or wireless
connectivity to the Proposed Market Data in Markham by obtaining the
market data at the MDC and sending it over a fiber or wireless network
to Canada. A market participant in Markham also may create a
proprietary market data connection, whether fiber or wireless; connect
through another market participant; utilize fiber connections offered
by third parties; or utilize fiber connections offered by FIDS. The
Exchange could not impose any impediments to a third party seeking to
offer a similar service, including by placing them at a latency or
other competitive disadvantage with respect to the Exchange.
Fiber network connections 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.
In addition, due to bandwidth considerations, not all of the
symbols included in the NYSE IF and NYSE Arca IF would be transported
to Markham, Canada. Accordingly, market participants in Markham that
wish to obtain information for all of the symbols in the NYSE IF or
NYSE Arca IF may prefer to use a fiber connection offered by a FIDS or
one of its competitors.
The Proposed Market Data in Markham would not have any special
access to or advantage within the MDC. The Integrated Feeds are
generated at the MDC in the trading and execution systems of the NYSE
and NYSE Arca.
[[Page 29418]]
FIDS would collect the Proposed Market Data, then send it over the
Proposed Market Data Connection by connecting to equipment in an MDC
meet-me-room and from there to a pole. The pole is owned by a third
party and is not on the grounds of the MDC, and the path into the MDC
through a meet-me-room is available to any telecommunications provider.
Further, all distances in the MDC are normalized.
Because the Exchange does not control Markham and could not impose
any impediments to a third party seeking to offer a similar service,
including by placing them at a latency or other competitive
disadvantage with respect to the Exchange, the Exchange believes that
the proposed change would not impose a burden on competition that is
not necessary or appropriate.
For the reasons described above, the Exchange believes that the
proposed rule changes reflect this competitive environment.
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#3b494e575e16585456565e554f487b485e58155c544d"><span class="__cf_email__" data-cfemail="82f0f7eee7afe1edefefe7ecf6f1c2f1e7e1ace5edf4">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2024-32 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-2024-32. 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-NYSEARCA-2024-32 and should
be submitted on or before May 13, 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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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-08490 Filed 4-19-24; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on April 22, 2024.
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.