Notice2025-16998
Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing of a Proposed Rule Change To Amend the Connectivity Fee Schedule To Add Hardware Procurement Services and Managed Services
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Published
September 5, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 170 (Friday, September 5, 2025)</title>
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[Federal Register Volume 90, Number 170 (Friday, September 5, 2025)]
[Notices]
[Pages 42995-42998]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16998]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103828; File No. SR-NYSENAT-2025-19]
Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing of a Proposed Rule Change To Amend the Connectivity Fee Schedule
To Add Hardware Procurement Services and Managed Services
September 2, 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 27, 2025, NYSE National, Inc. (``NYSE National'' or
``Exchange'') filed with the Securities and Exchange Commission
(``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 add
hardware procurement services and managed services in the colocation
halls at the Mahwah Data Center. The proposed 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.
[[Page 42996]]
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 \4\ to amend the Connectivity Fee Schedule to
add hardware procurement services and managed services in the
colocation halls at the Mahwah Data Center (``MDC'').\5\
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\4\ The Exchange previously filed and withdrew an earlier
version of this proposal. See Securities Exchange Act Release No.
103127 (May 27, 2025), 90 FR 23409 (June 2, 2025) (SR-NYSENAT-2025-
10).
\5\ Through its Fixed Income and Data Services (``FIDS'')
business, Intercontinental Exchange, Inc. (``ICE'') operates the
MDC. The Exchange and its affiliates New York Stock Exchange LLC,
NYSE American LLC, NYSE Arca, Inc., and NYSE Texas, Inc. (the
``Affiliate SROs'') are indirect subsidiaries of ICE. Each of the
Exchange's Affiliate SROs has submitted substantially the same
proposed rule change to propose the changes described herein. See
SR-NYSE-2025-34, SR-NYSEAMER-2025-55, SR-NYSEARCA-2025-63, and SR-
NYSETEX-2025-28.
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Hardware Procurement Services
The Exchange has recently received requests from several Users \6\
and prospective Users for the Exchange to start providing hardware
procurement services in the colocation halls at the MDC. Under such
services, FIDS \7\ would engage a third-party procurement specialist to
procure, purchase, format, and deliver hardware for the User to use in
the colocation halls at the MDC based on specifications provided by the
User.\8\
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\6\ 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
Connectivity 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
Affiliate SROs.
\7\ In this proposal, the term ``FIDS'' includes FIDS and any
ICE subsidiaries that are successors-in-interest to FIDS.
\8\ Installation is handled either by FIDS or by the User or
prospective User.
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Specifically, under this arrangement, FIDS would work with one or
more specific third-party procurement specialists (each, a
``Procurement Specialist'').\9\ A User or prospective User interested
in the service would work with a Procurement Specialist to identify the
specific hardware it wishes to procure. The Procurement Specialist
would contact various original equipment manufacturers to determine
equipment availability and the pricing of one or more procurement
options (e.g., outright purchase of the equipment vs. 12-month lease
vs. 24-month lease). The quotes would be passed on to the User or
prospective User, with FIDS adding to each quote a 10% service fee.
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\9\ FIDS currently plans to work with only one specific third-
party procurement specialist, but may determine in the future to
work with a different specialist or more than one specialist.
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The User or prospective User would have the opportunity to review
all terms before deciding whether to proceed. If the User or
prospective User decides to proceed, it would enter into a contract
with FIDS for the services, and would send payment to FIDS. FIDS would
forward the payment to the Procurement Specialist, less the 10% service
fee, which FIDS would retain.
The Exchange understands that some Users would find such an
arrangement desirable because it would allow them to obtain all
necessary hardware from FIDS, with whom the User already has a
contractual relationship, as opposed to having to contract directly
with a procurement specialist or with multiple third-party hardware
vendors. These Users have explained that contracting with FIDS to
obtain hardware would allow the Users to avoid the onerous process of
onboarding the hardware vendors as approved sellers in their
procurement systems. It is the Exchange's understanding that such
onboarding generally requires Users to, among other things: evaluate
each vendor's financial and credit history; check their service track
record; evaluate their sustainability credentials; assess their
compliance with regulations; obtain their agreement to an ethical code
of conduct; and establish ordering processes, payment terms, and
delivery processes with each vendor.\10\ By contrast, the proposed
arrangement would permit the User to obtain necessary hardware by
contracting only with FIDS--a vendor already established in the User's
systems--in exchange for paying FIDS a service fee equal to 10% of the
Procurement Specialist's fees for procuring such hardware.
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\10\ The Procurement Specialist would already be an approved
seller in FIDS' procurement systems.
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A Procurement Specialist working with FIDS under the proposed
arrangement would not receive any advantages or privileges (in terms of
access to the MDC or otherwise) over any other third-party procurement
specialist that a User may independently hire. In addition, any
Procurement Specialist working with FIDS pursuant to this proposal
would retain its ability to separately contract with customers outside
of the FIDS arrangement described in this proposal.
Managed Services
Similarly, some Users and prospective Users have also requested
that the Exchange begin providing ``managed services'' in the
colocation halls at the MDC. The term ``managed services'' typically
refers to a customer's hiring a third-party vendor to provide
information technology (``IT'') support for the customer's hardware in
a data center, so that the customer can focus its own IT resources
elsewhere. A vendor providing managed services typically deploys
software and technical tooling to monitor the health and status of the
customer's servers and other hardware in the data center, diagnoses
solutions for configuration challenges, works with the data center's
operations team regarding any changes to such configurations, and
provides around-the-clock monitoring, trouble-shooting, and remediation
of any problems concerning the customer's hardware in the data center.
As with hardware procurement, Users and prospective Users have
asked the Exchange to add a service in the colocation halls at the MDC
that would permit FIDS to contract with a third-party managed services
provider on the User's or prospective User's behalf. This would allow
the Users and prospective Users to benefit from managed services within
the colocation halls at the MDC while avoiding the many challenges
(listed above) with onboarding a new vendor as an approved seller in
their procurement systems.
Under the proposed arrangement, FIDS would work with one or more
specific third-party managed service providers (each, a ``Managed
Services Specialist'').\11\ A User or prospective User interested in
the service would work with the Managed Services Specialist to identify
the specific services it wishes to procure. The quote
[[Page 42997]]
for those services would be sent to the User or prospective User, with
FIDS adding to each quote a 10% service fee.
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\11\ FIDS currently plans to work with only one specific third-
party managed services specialist, but may determine in the future
to work with a different specialist or more than one specialist.
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The User or prospective User would have the opportunity to review
all terms before deciding whether to proceed with the arrangement. If
the User or prospective User decides to proceed, it would enter into a
contract with FIDS for the services, and would send payment to FIDS.
FIDS would forward the payment to the Managed Services Specialist, less
the 10% service fee, which FIDS would retain.\12\
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\12\ The Managed Services Specialist would already be an
approved seller in FIDS' procurement systems.
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A Managed Services Specialist working with FIDS under the proposed
arrangement would not receive any advantages or privileges (in terms of
access to the MDC or otherwise) over any other third-party managed
services specialist that a User may independently hire. In addition,
any Managed Services Specialist working with FIDS pursuant to this
proposal would retain its ability to separately contract with customers
outside of the FIDS arrangement described in this proposal.
Proposed Amendment
Accordingly, FIDS proposes to amend Section A of the Connectivity
Fee Schedule regarding Co-Location Fees to add hardware procurement
services and managed services, as follows:
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Type of service Description Amount of charge
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Hardware Procurement FIDS' engaging a Procurement
Services. hardware specialist's fees
procurement (which FIDS passes
specialist to through to the
obtain hardware on procurement
User's behalf. specialist) plus
10% service fee
payable to FIDS.
Managed Services............ FIDS' engaging a Managed services
managed services provider's fees
provider on User's (which FIDS passes
behalf. through to the
managed services
provider) plus 10%
service fee payable
to FIDS.
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Application and Impact of the Proposed Changes
The proposed changes are not targeted at, or expected to be limited
in applicability to, a specific segment of market participant. The
proposed services would be available to any potential User on a non-
discriminatory basis. The proposed changes would not apply differently
to distinct types or sizes of Users. Rather, they would apply to all
Users equally. The Exchange anticipates that some of the Users
currently requesting the services from FIDS would use the service.
The proposed services are completely voluntary. Users or potential
Users who do not wish to order the proposed services from FIDS can
instead contract directly with any number of vendors, hardware
procurement specialists, and managed services specialists. There are
numerous third parties that currently provide hardware procurement and
managed services in the colocation halls at the MDC without the
involvement of FIDS or the Exchange, and Users and potential Users
could continue to obtain such services from these third parties. The
Exchange would not take any actions to block or prevent such third
parties from providing their services.
The proposed changes are not otherwise intended to address any
other issues relating to services related to the MDC and/or related
fees, and the Exchange is not aware of any problems that market
participants 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,\13\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\14\ 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,\15\ 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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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
\15\ 15 U.S.C. 78f(b)(4).
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The Proposed Change Is Reasonable
The Exchange believes that the proposed rule change is reasonable.
First, with respect to the fees charged by the Procurement Specialist
and the Managed Services Specialist, it is reasonable that the Exchange
would pass any payments it receives from the User for such services on
to the specialist who performed the services.
Second, the Exchange believes it is reasonable for FIDS to charge
and retain a 10% fee for performing the service of contracting with the
Procurement Specialist or Managed Service Specialist on the User's
behalf and handling the User's payments of such specialists' fees. The
proposed 10% service fee is a nominal amount that would compensate FIDS
for its work contracting and handling payments on behalf of the User.
Moreover, the Exchange believes the proposed fee is reasonable
because the Exchange is subject to competitive forces. The proposed 10%
service fee is reasonable because any Users or potential Users who do
not wish to pay it can instead contract directly with any number of
vendors, hardware procurement specialists, and managed services
specialists. The User or prospective User would have the opportunity to
review all terms before deciding whether to proceed. There are numerous
third parties that currently provide hardware procurement and managed
services in the colocation halls at the MDC without the involvement of
FIDS or the Exchange, and Users and potential Users could continue to
obtain such services from these third parties. The Exchange would not
take any actions to block or prevent such third parties from providing
their services.
In addition, there is no requirement that any User or potential
User purchase the services proposed in this filing. As noted above, the
Exchange is proposing such services as a convenience to Users and
potential Users who have specifically indicated their preference to
[[Page 42998]]
buy such services from FIDS instead of from a different vendor, and to
pay FIDS a fee for facilitating that arrangement. If a User believes
the 10% service fee is too high, it has the option of acquiring the
services it needs by contracting directly with vendors or specialists
instead.
The Proposed Change Is an Equitable Allocation of Fees and Credits
The Exchange believes that its proposal equitably allocates its
fees among Users. The Exchange believes that the proposed fees are
equitable because they would not apply differently to distinct types or
sizes of Users. Rather, it would apply equally to any Users who opted
to purchase the proposed services.
In addition, the Exchange believes that the proposal is equitable
because only market participants that voluntarily select to use the
proposed hardware procurement services or the managed services would be
charged for them. The proposed services would be available to all Users
on an equal basis, and all Users that voluntarily choose to use the
proposed services would be charged the fees incurred on their behalf by
the Procurement Specialist or the Managed Services Specialist, plus the
same 10% service fee payable to FIDS. The User or prospective User
would have the opportunity to review all terms before deciding whether
to proceed.
The Proposed Change Is Not Unfairly Discriminatory
The Exchange believes its proposal is not unfairly discriminatory.
The proposed change does not apply differently to different types or
sizes of Users. Rather, it would apply to all Users equally.
In addition, the Exchange believes that the proposal is not
unfairly discriminatory because only Users that voluntarily select to
receive the proposed services would be charged for them. The proposed
services would be available to all Users on an equal basis, and all
Users that voluntarily choose to use the service would be charged the
fees incurred on their behalf by the Procurement Specialist or the
Managed Services Specialist, plus the same 10% service fee payable to
FIDS. The User or prospective User would have the opportunity to review
all terms before deciding whether to proceed.
For all 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,\16\ the Exchange
believes that the proposed rule change will not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The proposed change would not affect competition
among national securities exchanges or among members of the Exchange.
Rather, the Exchange believes that by offering the proposed services,
it will provide an alternate, non-exclusive method for Users who wish
to purchase hardware procurement services or managed services to obtain
such services in the MDC, in addition to the numerous third-party
vendors from whom Users can obtain such services directly.
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\16\ 15 U.S.C. 78f(b)(8).
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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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) by order approve or disapprove the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
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#7f0d0a131a521c1012121a110b0c3f0c1a1c51181009"><span class="__cf_email__" data-cfemail="98eaedf4fdb5fbf7f5f5fdf6ecebd8ebfdfbb6fff7ee">[email protected]</span></a>. Please include
file number SR-NYSENAT-2025-19 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-2025-19. 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 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-2025-19 and should be submitted
on or before September 26, 2025.
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. 2025-16998 Filed 9-4-25; 8:45 am]
BILLING CODE 8011-01-P
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