Notice2025-13377
Self-Regulatory Organizations; NYSE Texas, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Fee Schedule of NYSE Texas, Inc. To Harmonize the Manner in Which the Exchange Charges for Ports That Provide Connectivity to the Exchange
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
July 17, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 135 (Thursday, July 17, 2025)</title>
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[Federal Register Volume 90, Number 135 (Thursday, July 17, 2025)]
[Notices]
[Pages 33459-33461]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-13377]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103454; File No. SR-NYSETEX-2025-20)]
Self-Regulatory Organizations; NYSE Texas, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the Fee
Schedule of NYSE Texas, Inc. To Harmonize the Manner in Which the
Exchange Charges for Ports That Provide Connectivity to the Exchange
July 14, 2025.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on July 1, 2025, the NYSE Texas, Inc. (``NYSE Texas'' or the
``Exchange'') filed with the Securities and Exchange Commission (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 Fee Schedule of NYSE Texas, Inc.
(the ``Fee Schedule'') to harmonize the manner in which the Exchange
charges for ports that provide connectivity to the Exchange with its
affiliate, NYSE Arca, Inc. (``NYSE Arca''), and adopt a fee for ports
for drop copies. 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 harmonize the
manner in which the Exchange charges for ports that provide
connectivity to the Exchange with its affiliate, NYSE Arca, and adopt a
fee for ports for drop copies.\4\ The Exchange proposes to implement
the proposed fee changes effective July 1, 2025.
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\4\ Participant Firms receive confirmations of their orders and
receive execution reports via the order/quote entry port that is
used to enter an order or a quote. A ``drop copy'' contains
redundant information that a firm chooses to have ``dropped'' to
another destination (e.g., to allow the firm's back office and/or
compliance department, or another firm--typically the firm's
clearing broker--to have immediate access to the information). Such
drop copies can only be sent via a drop copy port. Drop copy ports
cannot be used to enter orders and/or quotes.
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The Exchange currently makes ports available that provide
connectivity to the Exchange's trading systems (i.e., ports for the
entry of orders and/or quotes (``order/quote entry ports'')) and
charges $455 per port per month.\5\ The proposed rule change would
modify the Fee Schedule to harmonize the Exchange's rules with respect
to how fees for order/quote entry ports are charged with the rules of
the Exchange's affiliate, NYSE Arca.\6\ As proposed, the modified rule
text on the Fee Schedule would provide that the fee for order/quote
entry ports would not apply to ports in the backup datacenter that are
not utilized during the relevant billing month, and no fee would apply
to order/quote entry ports in the backup datacenter that are utilized
when the primary datacenter is unavailable. The proposed rule change
would further provide that if an order/quote entry port in the backup
datacenter is utilized when the primary datacenter is available, then
the fee would apply. Finally, the proposed rule text would provide that
the monthly fee for an order/quote entry port would be prorated to the
number of trading days in a billing month, including any scheduled
early closing days, that the port is connected to the Exchange.\7\
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\5\ The Exchange does not charge port fees to Participant Firms
that connect to the Exchange through Brokerplex. The Exchange
proposes to retain this exclusion in the Fee Schedule and would
continue to not charge Participant Firms for connecting to the
Exchange through Brokerplex.
\6\ See NYSE Arca Schedule of Fees, Connectivity Fees, at
<a href="https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf">https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf</a>.
\7\ NYSE Arca similarly prorates fees for order/quote entry
ports utilized by its members. See NYSE Arca Schedule of Fees,
Connectivity Fees, at <a href="https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf">https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf</a>.
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Additionally, the Exchange proposes to implement a fee for drop
copy ports,\8\ for which the Exchange does not currently charge a fee.
As proposed, the Exchange would make ports available for drop copies
and charge $455 per port per month.\9\ As proposed, the Fee Schedule
would specify that only one fee per drop copy port would apply, even if
Participant Firms receive drop copies from multiple order/quote entry
ports, except that no fee would apply to ports in the backup datacenter
if configured such that it is duplicative of another drop copy port of
the same user. In addition, as is the case with order/quote entry
ports, fees for drop copy ports would not be charged to Participants
that connect to the Exchange using Brokerplex.\10\ And similar to
order/quote entry ports, the monthly fee for a drop copy port would
also be prorated to the number of trading days in a billing month,
including any scheduled early closing days, that the port is connected
to the Exchange.\11\
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\8\ See note 4, supra.
\9\ The Exchange proposes to add language to the Fee Schedule to
differentiate between drop copy ports and order/quote entry ports.
This aspect of the proposed rule change also conforms to the rule
text of NYSE Arca, which also provides its members with a drop copy
port. See NYSE Arca Schedule of Fees, Connectivity Fees at <a href="https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf">https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf</a>.
\10\ See note 5, supra.
\11\ NYSE Arca similarly prorates fees for drop copy ports
utilized by its members. See NYSE Arca Schedule of Fees,
Connectivity Fees, at <a href="https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf">https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf</a>.
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[[Page 33460]]
The Exchange believes that standardizing the port fees, whether a
port is used for order/quote entry or for drop copies, would streamline
the Exchange's rules and reduce complexity for Participant Firms. The
proposed change would also encourage users to become more efficient
with their usage of the ports thereby resulting in a corresponding
increase in the efficiency that the Exchange would be able to realize
with respect to managing its own infrastructure.
The proposed changes are not otherwise intended to address any
other issues, and the Exchange is not aware of any problems that member
organizations would have in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\12\ in general, and furthers the
objectives of Sections 6(b)(4) of the Act,\13\ in particular, because
it 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.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposal to amend the Fee Schedule
to harmonize the manner in which the Exchange charges for order/quote
entry ports with NYSE Arca is reasonable and constitutes an equitable
allocation of fees because all similarly situated Participant Firms
would be impacted by the proposed rule change and all such members
would continue to be subject to the current fee. The Exchange believes
that the proposal to harmonize the Exchange's rules with respect to how
the fee for order/quote entry ports is charged with the rules of the
Exchange's affiliate is reasonable as it would streamline the
Exchange's rules and reduce complexity for Participant Firms. The
proposed change is also reasonable because the proposed per port rates
would encourage users to become more efficient with, and reduce the
number of ports used, thereby resulting in a corresponding increase in
the efficiency that the Exchange would be able to realize with respect
to managing its own infrastructure. The Exchange believes it is fair,
equitable and not unfairly discriminatory to charge flat fees for
ports.
The Exchange believes that the proposed fee for drop copy ports is
reasonable because it will result in a fee being charged for the use of
technology and infrastructure provided by the Exchange. The Exchange
also believes that it is reasonable that only one fee per drop copy
port would apply, even if a port receives drop copies from multiple
order/quote entry ports, because the purpose of drop copies is such
that a trading unit's or a firm's entire order and execution activity
is captured. The Exchange believes that the proposed new fee for drop
copy ports is equitable and not unfairly discriminatory because it will
apply on an equal basis to all users of drop copy ports and to all drop
copy ports on the Exchange. In this regard, all Participant Firms will
be able to request drop copy ports, as is the case with order/quote
entry ports.
The Exchange also believes the proposal furthers the objectives of
Section 6(b)(5) of the Act \14\ in that the proposed rule change is
designed to promote just and equitable principles of trade, 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 is not designed to permit unfair discrimination
between customers, issuers, brokers and dealers. In particular, the
Exchange believes that the Exchange's pro-rating of port fees is
consistent with Section 6(b)(5) of the Act since it would apply equally
to all Participant Firms that connect to the Exchange and all
Participant Firms would continue to receive the benefit of being
charged only for the connectivity utilized during any trading month. As
noted above, NYSE Arca similarly prorates fees for order/quote entry
ports and for drop copy utilized by its members.
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\14\ 15 U.S.C. 78f(b)(5).
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Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition. For these reasons, the Exchange
believes that the proposal is consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\15\ the Exchange
does not believe that the proposed rule change will impose any burden
on intermarket or intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act in that it is
designed to harmonize the Exchange's rules with respect to how fees for
order/quote entry ports and drop copy ports are charged with the rules
of the Exchange's affiliate, NYSE Arca. The Exchange believes that the
proposal would encourage Participant Firms to become more efficient
with their use of ports. In this regard, the Exchange believes that the
proposal would not impose any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act
because the Exchange believes that any reduction in the number of ports
would result in a decrease in the infrastructure that the Exchange is
required to support for connectivity to its trading system. This would
also provide incentive for users to become more efficient with their
use of ports and could therefore result in such users becoming more
competitive due to decreased costs.
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\15\ 15 U.S.C. 78f(b)(8).
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Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive. In such an environment, the Exchange must continually
monitor its fees and services to remain competitive with other
exchanges and with alternative trading systems that have been exempted
from compliance with the statutory standards applicable to exchanges.
Because competitors are free to modify their own pricing and the
services they offer in response, the Exchange believes that the degree
to which fee changes in this market may impose any burden on
competition is extremely limited. As a result of all of these
considerations, the Exchange does not believe that the proposed changes
will impair the ability of Participant Firms or competing order
execution venues to maintain their competitive standing in the
financial markets.
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
Pursuant to Section 19(b)(3)(A)(ii) of the Act,\16\ and Rule 19b-
4(f)(2) thereunder \17\ the Exchange has designated this proposal as
establishing or changing a due, fee, or other charge imposed on any
person, whether or not the person is a member of the self-
[[Page 33461]]
regulatory organization, which renders the proposed rule change
effective upon filing. At any time within 60 days of the filing of the
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.
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\16\ 15 U.S.C. 78s(b)(3)(A)(ii).
\17\ 17 CFR 240.19b-4.
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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#ec9e998089c18f8381818982989fac9f898fc28b839a"><span class="__cf_email__" data-cfemail="a5d7d0c9c088c6cac8c8c0cbd1d6e5d6c0c68bc2cad3">[email protected]</span></a>. Please include
file number SR-NYSETEX-2025-20 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-NYSETEX-2025-20. 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-NYSETEX-2025-20 and should
be submitted on or before August 7, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-13377 Filed 7-16-25; 8:45 am]
BILLING CODE 8011-01-P
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