Notice2025-16361

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.

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Published
August 27, 2025

Issuing agencies

Securities and Exchange Commission

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<title>Federal Register, Volume 90 Issue 164 (Wednesday, August 27, 2025)</title>
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[Federal Register Volume 90, Number 164 (Wednesday, August 27, 2025)]
[Notices]
[Pages 41856-41858]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16361]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-103762; File No. SR-NYSETEX-2025-27]


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.

August 22, 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 August 20, 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 amend rule text related to ports that provide 
connectivity to the Exchange, and adopt a fee for drop copy ports. The 
proposed rule change is available on the Exchange's website at 
<a href="http://www.nyse.com">www.nyse.com</a> and at the principal office of the Exchange.

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 amend rule text 
related to ports that provide connectivity to the Exchange. The 
proposed rule text is identical to rule text regarding ports on the 
Exchange's affiliate, NYSE Arca, Inc. (``NYSE Arca'').\4\ The Exchange 
also proposes to adopt a fee for drop copy ports.\5\ The Exchange 
proposes to implement the proposed fee changes effective August 20, 
2025.\6\
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    \4\ 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>.
    \5\ 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.
    \6\ The Exchange originally filed to amend the Fee Schedule on 
July 1, 2025 (SR-NYSETEX-2025-20). SR-NYSETEX-2025-20 was withdrawn 
on August 20, 2025, and replaced by this filing.
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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. 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. As proposed, the amended 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 amended Fee Schedule would further 
provide that the fee would apply if an order/quote entry port in the 
backup datacenter is utilized when the primary datacenter is available. 
Finally, the amended Fee Schedule 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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    \7\ NYSE Arca similarly prorates the use of 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 adopt a fee for drop copy 
ports,\8\ and charge $455 per port per month.\9\ As noted on the Fee 
Schedule, 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.
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    \8\ See note 5, 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 fee 
schedule 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>.
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    Also, as noted on the Fee Schedule, similar to order/quote entry 
ports, the monthly fee for a drop copy 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.\10\
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    \10\ 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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    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 
Participant Firms 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,\11\ in general, and furthers the 
objectives of Sections 6(b)(4) of the Act,\12\ 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. The

[[Page 41857]]

Exchange also believes the proposal furthers the objectives of Section 
6(b)(5) of the Act \13\ 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. These beliefs are based on 
comparability; the proposed fees are comparable to those of similarly 
situated exchanges.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4).
    \13\ 15 U.S.C. 78f(b)(5).
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    The proposed fee for NYSE Texas ports is comparable to the fee 
adopted by NYSE Arca.\14\
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    \14\ NYSE Arca assesses $621 per port per month for the use of 
order/quote entry ports and drop copy ports. See NYSE Arca Schedule 
of 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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    The Exchange believes that the proposed rule change 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 be subject to the 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 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, 
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 \15\ 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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    \15\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\16\ 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. 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 nothing in the Exchange's proposal would burden on the 
ability of other exchanges to compete. And as noted above, the fees 
referenced in this filing are comparable to the Exchange's affiliate, 
NYSE Arca.
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    \16\ 15 U.S.C. 78f(b)(8).
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    Finally, nothing in the Exchange's proposal would place a burden on 
intramarket competition as the Exchange's ports are available to any 
Participant Firm at the same price on a non-discriminatory basis. 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. 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 other 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,\17\ and Rule 19b-
4(f)(2) thereunder \18\ 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-regulatory 
organization, which renders the proposed rule change effective upon 
filing.
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    \17\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \18\ 17 CFR 240.19b-4.
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    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.

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#a6d4d3cac38bc5c9cbcbc3c8d2d5e6d5c3c588c1c9d0"><span class="__cf_email__" data-cfemail="82f0f7eee7afe1edefefe7ecf6f1c2f1e7e1ace5edf4">[email&#160;protected]</span></a>. Please include 
file number SR-NYSETEX-2025-27 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-2025-27. 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 filing will

[[Page 41858]]

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-
2025-27 and should be submitted on or before September 17, 2025.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2025-16361 Filed 8-26-25; 8:45 am]
BILLING CODE 8011-01-P


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