Notice2024-12145
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
June 4, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 108 (Tuesday, June 4, 2024)</title>
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[Federal Register Volume 89, Number 108 (Tuesday, June 4, 2024)]
[Notices]
[Pages 48004-48006]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-12145]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100240; File No. SR-NYSE-2024-31]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Connectivity Fee Schedule
May 29, 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 May 17, 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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[[Page 48005]]
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'') to make clarifying changes with respect to the wireless
connections to third party data in co-location. 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 Schedule to make clarifying
changes with respect to the wireless connections to third party data in
co-location.
The Exchange currently provides Users \4\ with wireless connections
to ten market data feeds or combinations of feeds from third-party
markets (the ``Existing Third Party Data'').\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 Arca, Inc., NYSE
Chicago, Inc., and NYSE National, Inc. (together, the ``Affiliate
SROs''). Each Affiliate SRO has submitted substantially the same
proposed rule change to propose the changes described herein. See
SR-NYSEAMER-2024-33, SR-NYSEARCA-2024-42, SR-NYSECHX-2024-19, and
SR-NYSENAT-2024-16.
\5\ See Securities Exchange Act Release No. 99806 (March 20.
2024), 89 FR 21055 (March 26, 2024) (SR-NYSE-2024-15).
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The Exchange recently filed to provide wireless connection to MEMX
Memoir Depth market data feed (``MEMX Data''), noting that the wireless
connection to MEMX Data would lead to the data center pole.\6\ For all
the Existing Third Party Data that leads to that pole,\7\ the monthly
charge for wireless connections is subject to a 30-day testing period,
during which the monthly charge per connection would be waived.
Consistent with that fact, the Exchange proposes to amend the Fee
Schedule to clarify that this provision is applicable to wireless
connections to MEMX Data.
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\6\ See id.
\7\ See Securities Exchange Act Release No. 76748 (December 23,
2015), 80 FR 81609 (December 30, 2015) (SR-NYSE-2015-52).
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In addition, the Exchange proposes to make the following non-
substantive changes to the Fee Schedule:
<bullet> Move the existing service for a wireless connection of
NASDAQ BX-Totalview-ITCH data to place the wireless connections in
alphabetical order.
<bullet> To conform to the corporate branding of Nasdaq, amend
``NASDAQ'' to ``Nasdaq'' and delete ``OMX'' and ``Ultra'' throughout
the Fee Schedule.\8\
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\8\ See Securities Exchange Act Release No. 801917 (October 23,
2017), 82 FR 49879 (October 27, 2017) (SR-NASDAQ-2017-111). See also
<a href="https://www.nasdaq.com/solutions/nasdaq-canada">https://www.nasdaq.com/solutions/nasdaq-canada</a>, and <a href="https://www.nasdaq.com/solutions/nasdaq-ise">https://www.nasdaq.com/solutions/nasdaq-ise</a>.
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<bullet> To conform to Nasdaq's usage of the term, amend
``Totalview'' to ``TotalView'' in the Existing Third Party Services.\9\
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\9\ See <a href="https://www.nasdaqtrader.com/Trader.aspx?id=DPUSdata">https://www.nasdaqtrader.com/Trader.aspx?id=DPUSdata</a>.
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These changes are typographical in nature and are not intended to
change the substance or meaning of the Fee Schedule.
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 is completely voluntary and the Fee Schedule is applied
uniformly to all Users.
The Exchange does not believe that it would obtain any new
customers due to the proposed change.
The proposed change is not otherwise intended to address any other
issues relating to colocation services or related fees, and the
Exchange is not aware of any problems that Users would have in
complying with the proposed change.
Timing and Implementation
The proposed change to the Fee Schedule to clarify the provisions
regarding the MEMX Memoir Depth market feed would become operative when
the wireless connection to MEMX Memoir Depth market data feed becomes
operative. The Exchange expects that to be no later than the third
quarter of 2024.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\10\ in general, and furthers the
objectives of section 6(b)(5) of the Act,\11\ 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,\12\ 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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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposed changes would remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, protect investors and the
public interest. With respect to the wireless connection to MEMX Memoir
Depth data, the proposed change simply would clarify that the terms on
which it is offered are the same as those of the Existing Third Party
Data feeds that also connect to the data center pole. With respect to
the other changes, putting the existing services in alphabetical order
and conforming the descriptions to Nasdaq's usage would make the Fee
Schedule easier to read, understand, and administer, alleviating any
possible market participant confusion.
The Exchange believes that its proposed rule change provides for
the equitable allocation of reasonable dues, fees, and other charges
among its members, issuers, and other persons using its facilities and
does not unfairly discriminate between customers, issuers, brokers, or
dealers. The proposed rule change would clarify that the terms under
which the wireless connection to the MEMX Memoir Depth data is offered
are the same as those of the Existing Third Party Data feeds that also
connect to the data center pole.
[[Page 48006]]
With respect to the other changes, putting the existing services in
alphabetical order and conforming the descriptions to Nasdaq's usage
would make the Fee Schedule easier to read, understand, and administer,
alleviating any possible market participant confusion. The proposed
changes would not alter any of the fees charged.
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.\13\
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\13\ 15 U.S.C. 78f(b)(8).
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The proposed change would not affect competition among national
securities exchanges or among members of the Exchange. The proposed
rule change is not designed to address any competitive issues but
rather to enhance the clarity and transparency of the Fee Schedule and
alleviate possible customer confusion that may arise. The proposed rule
change would have no impact on pricing or existing services. Rather,
the changes would clarify the Fee Schedule, making it easier to
understand and alleviating any possible market participant confusion.
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 \14\ and Rule 19b-4(f)(6) thereunder.\15\
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.\16\
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\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 17 CFR 240.19b-4(f)(6).
\16\ 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) \17\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\18\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing.
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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission agrees with the Exchange 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
implement this proposed change immediately, ensuring that Users could
benefit from the 30-day testing period for the existing service for a
wireless connection of MEMX Memoir Depth data. Investors and the public
interest would also benefit from the increased clarity and transparency
the other amendments would provide to the Fee Schedule. The Commission
therefore believes that waiver of the 30-day operative delay is
appropriate.
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) \19\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\19\ 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#a2d0d7cec78fc1cdcfcfc7ccd6d1e2d1c7c18cc5cdd4"><span class="__cf_email__" data-cfemail="3d4f485158105e5250505853494e7d4e585e135a524b">[email protected]</span></a>. Please include
file number SR-NYSE-2024-31 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-NYSE-2024-31. 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-2024-31 and should be
submitted on or before June 25, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-12145 Filed 6-3-24; 8:45 am]
BILLING CODE 8011-01-P
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