Notice2024-10600
Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Connectivity Fee Schedule
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Published
May 15, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 95 (Wednesday, May 15, 2024)</title>
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[Federal Register Volume 89, Number 95 (Wednesday, May 15, 2024)]
[Notices]
[Pages 42515-42518]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-10600]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100099; File No. SR-NYSENAT-2024-14]
Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Connectivity Fee Schedule
May 9, 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 29, 2024, NYSE National, Inc. (``NYSE National'' 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
[[Page 42516]]
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 (``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. 83351 (May 31, 2018), 83 FR 26314 at n.9
(June 6, 2018) (SR-NYSENAT-2018-07). 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 the New York Stock Exchange LLC (``NYSE''),
NYSE American LLC (``NYSE American''), NYSE Arca, Inc. (``NYSE
Arca''), and NYSE Chicago, Inc. (``NYSE Chicago'' and together, the
``Affiliate SROs''). Each Affiliate SRO has submitted substantially
the same proposed rule change to propose the changes described
herein. See SR-NYSE-2024-25, SR-NYSEAMER-2024-27, SR-NYSEARCA-2024-
35, and SR-NYSECHX-2024-16.
\5\ See 83 FR 26314, supra note 4.
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The NYSE has filed to establish the ``NYSE Pillar Depth'' market
data feed.\6\ Accordingly, the Exchange proposes to update the table of
Included Data Products to include the NYSE Pillar Depth market data
feed. In addition, in the current table the NYSE American Options and
NYSE Arca Options market data feeds offered are not broken out.\7\
Accordingly, the Exchange proposes to do so now.
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\6\ See Securities Exchange Act Release No. 100030 (April 25,
2024) (SR-NYSE-2024-24) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change to Establish the NYSE Pillar
Depth Data Feed).
\7\ See 83 FR 26314, supra note 4.
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To implement the proposed rule change, the Exchange proposes to
update the table of Included Data Products as follows (proposed
additions italicized):
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NYSE:
NYSE Aggregated Lite
NYSE Alerts
NYSE BBO
NYSE Integrated Feed
NYSE OpenBook
NYSE Order Imbalances
NYSE Pillar Depth
NYSE Trades
NYSE American Options:
NYSE American Options Top Feed
NYSE American Options Deep Feed
NYSE American Options Complex Order Book
NYSE Arca Options:
NYSE Arca Options Top Feed
NYSE Arca Options Deep Feed
NYSE Arca Options Complex Order Book
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The Exchange expects that the present filing will become operative
on the later of (a) the present filing becoming operative; and (b) the
filing to establish a fee for the NYSE Pillar Depth market data feed
becoming operative.\8\ The Exchange expects such operative date to be
no later than the end of the second quarter of 2024.
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\8\ If no such filing is made, then the present filing would
become operative upon the NYSE Pillar Depth market data feed
becoming operatives.
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The Exchange does not charge for connectivity to the Included Data
Feeds. Accordingly, it would not charge for connectivity to the NYSE
Pillar Depth market data feed.
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 NYSE Pillar Depth market data
feed, 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 colocation 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, in general, and furthers the objectives
of Section 6(b)(5) of the Act, 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, 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.
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 NYSE Pillar Depth market data feed
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 the additional market data feed without paying
additional charges.
Adding the proposed additional Included Data Product would allow a
User to connect to the NYSE Pillar Depth market data feed if 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 NYSE Pillar Depth market
data feed. As alternatives to connecting to the NYSE Pillar Depth
market data feed as an
[[Page 42517]]
Included Data Product, a User may connect to the market data feed
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 NYSE Pillar Depth market data feed and setting forth
the NYSE American Options and NYSE Arca Options 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 NYSE Pillar Depth market data feed 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 equitable and not
unfairly discriminatory because the change would mean that a User would
have the option of adding connectivity to the additional market data
feed 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
NYSE Pillar Depth market data feed would allow a User to connect to it
if 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 NYSE Pillar Depth market data feed and setting forth
the NYSE American Options and NYSE Arca Options 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 proposed change would 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.\9\
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\9\ 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 NYSE Pillar
Depth market data feed 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 the additional market data
feed without paying additional charges.
Adding the proposed additional Included Data Products would allow a
User to connect to the NYSE Pillar Depth market data feed if 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 NYSE Pillar Depth market data feed. As alternatives to
connecting to the NYSE Pillar Depth market data feed as an Included
Data Product, a User may connect to the market data feed 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 NYSE Pillar Depth market data feed and setting forth
the NYSE American Options and NYSE Arca Options 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 \10\ and Rule 19b-4(f)(6) thereunder.\11\
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
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effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\12\
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\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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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A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\14\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
states that waiver of the 30-day operative delay would be consistent
with the protection of investors and the public interest because it
would allow the Exchange to offer, and therefore ensure that Users
could access, the NYSE Pillar Depth market data feed when it is
available. For these reasons, the Commission finds that waiver of the
operative delay is consistent with the protection of investors and the
public interest. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\15\
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ For purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="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#5725223b327a34383a3a323923241724323479303821"><span class="__cf_email__" data-cfemail="deacabb2bbf3bdb1b3b3bbb0aaad9eadbbbdf0b9b1a8">[email protected]</span></a>. Please include
file number SR-NYSENAT-2024-14 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-NYSENAT-2024-14. 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-NYSENAT-2024-14 and should
be submitted on or before June 5, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-10600 Filed 5-14-24; 8:45 am]
BILLING CODE 8011-01-P
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