Notice2026-02583
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
February 10, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 27 (Tuesday, February 10, 2026)</title>
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[Federal Register Volume 91, Number 27 (Tuesday, February 10, 2026)]
[Notices]
[Pages 5969-5972]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02583]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104772; File No. SR-NYSE-2026-03]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Connectivity Fee Schedule
February 5, 2026.
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 January 28, 2026, New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with
[[Page 5970]]
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 note to the virtual routing and
forwarding and virtual control circuit service in the Connectivity Fee
Schedule (``Fee Schedule''). 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 note to the virtual routing and
forwarding (``VRF'') and virtual control circuit (``VCC'') service in
the Fee Schedule.
Currently, the Fee Schedule includes VCC services between the
Mahwah, New Jersey data center (``MDC'') \4\ and the NYSE, NYSE
American LLC, and NYSE Arca, Inc. trading floors (``Trading Floors'')
\5\ (each, a ``TF VCC''), as well as between two Users \6\ in the MDC
or a between a User inside the MDC and another party or the same User
outside of the MDC at a remote access center.\7\ The Fee Schedule also
includes VRF services between the MDC and the Trading Floors.\8\
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\4\ Through its Fixed Income and Data Services (``FIDS'')
business, Intercontinental Exchange, Inc. (``ICE'') operates the
MDC. The Exchange and the Affiliate SROs (as defined below) are
indirect subsidiaries of ICE.
\5\ ``Trading Floor'' is used as defined in, as applicable, NYSE
Rule 6A (Trading Floor), NYSE American Scope of Terms (17), and NYSE
Arca Rule 1 (Definitions), Floor, Trading Floor and Options Trading
Floor. NYSE National, Inc. and NYSE Texas, Inc. do not have trading
floors. See Securities Exchange Act Release No. 103546 (July 25,
2025), 90 FR 35950 (July 30, 2025) (SR-NYSE-2025-12, SR-NYSEAMER-
2025-21, SR-NYSEARCA-2025-29, SR-NYSETEX-2025-03, and SR-NYSENAT-
2025-07).
\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. 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 NYSE
American LLC, NYSE Arca, Inc., NYSE National, Inc. and NYSE Texas,
Inc. (together, the ``Affiliate SROs''). Each Affiliate SRO has
submitted substantially the same proposed rule change to propose the
change described herein. See SR-NYSEAMER-2026-07, SR-NYSEARCA-2026-
06, SR-NYSENAT-2026-02, and SR-NYSETEX-2026-01.
\7\ See Securities Exchange Act Release Nos. 101582 (November
12, 2024), 89 FR 90812 (November 18, 2024) (SR-NYSE-2024-69), and
103546 (July 25, 2025), 90 FR 35950 (July 30, 2025) (SR-NYSE-2025-
12, SR-NYSEAMER-2025-21, SR-NYSEARCA-2025-29, SR-NYSETEX-2025-03,
and SR-NYSENAT-2025-07).
\8\ Id.
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A User that has two TF VCCs is subject to fees for two VCCs.
However, in some cases only one of a User's two TF VCCs would be able
to be active at a given time. More specifically, a User could have two
TF VCCs that connect the MDC and the User's or third party's equipment
on a Trading Floor. Two networks operate on each Trading Floor. To
ensure resiliency, a User may choose to connect through two different
Trading Floor networks. If the two TF VCCs are connected to different
Trading Floor networks, only one such network is active at a given
time. As a result, the User would not be able to use both TF VCCs at
the same time. A User may nonetheless have such a set-up because it is
more resilient than either having just one TF VCC or having two TF VCCs
that connect to the same Trading Floor network.
The Exchange wants to encourage the use of two TF VCCs that connect
through two different Trading Floor networks (each, a ``Resilient TF
VCC''), as it is a more resilient set-up than if they are through the
same network. Accordingly, the Exchange proposes to charge for the two
Resilient TF VCCs as if they were one TF VCC.
To make the change, the Exchange proposes to amend the footnote to
the VCC description in the Fee Schedule as follows (additions
italicized):
* A virtual control circuit (``VCC'') is between the Mahwah data
center and a single end point, including a Trading Floor, while a
virtual routing and forwarding service (``VRF'') can be between the
Mahwah data center and one or more Trading Floors. If the User chooses
VCCs or a combination of a VCC and a VRF for connectivity to several
Trading Floors, it will be charged separately for each connection,
provided that two VCCs from the Mahwah data center to the same Trading
Floor will be subject to one VCC charge so long as only one VCC is able
to be active at a given time. If the User chooses one VRF for
connectivity to multiple trading floors, the User will be charged for
one connection.
The proposed language includes the modifying phrase ``so long as
only one VCC is able to be active at a given time'' to clarify that if
a User has two TF VCCs that use the same network, the User will be
subject to two charges, since the TF VCCs may be active at the same
time.
General
Currently, no User has a Resilient TF VCC, and so no User would
benefit from the change.
The proposed rule change would not apply differently to distinct
types or sizes of market participants. Rather, it would apply to all
Users equally. As is currently the case, the Fee Schedule would be
applied uniformly to all Users. FIDS expects that the proposed rule
change will not result in any new Users.
Use of the services proposed in this filing are completely
voluntary and available to all Users on a non-discriminatory basis.
The proposed change is not otherwise intended to address any other
issues relating to co-location 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,\9\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\10\ 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
[[Page 5971]]
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,\11\ 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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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposed rule change is reasonable
and equitable because it is designed to foster the resilience of TF
VCCs. Currently, there are no Users with Resilient TF VCCs, and the
Exchange believes that charging for two Resilient TF VCCs as if they
were one TF VCC may motivate Users to have Resilient TF VCCs. Moreover,
as only one Resilient TF VCC can be in use at any one time, no User
will benefit from having two Resilient TF VCCs in use while only paying
for one.
The Exchange believes that it is reasonable and equitable to amend
the note to the Fee Schedule to clarify that, provided that the User
has two TF VCCs from the MDC to the same Trading Floor, the User will
be subject to one TF VCC charge so long as only one TV VCC is able to
be active at a given time. By so amending the note, the Exchange would
make it easier for potential purchasers of the service to assess what
connectivity will best serve them. The Exchange believes that it is
reasonable and equitable that, if a User has two TF VCCs that are
active at the same time, for example by using the same Trading Floor
network, the User will continue to be subject to two charges.
Nor does the Exchange have a competitive advantage over any third-
party competitors by virtue of the fact that it owns and operates the
MDC's meet-me-rooms. Currently, 17 telecommunications service providers
(``Telecoms'') \12\ operate in the meet-me-rooms and provide a variety
of circuit choices. It is in the Exchange's best interest to set the
fees that Telecoms pay to operate in the meet-me-rooms at a reasonable
level \13\ so that market participants, including Telecoms, will
maximize their use of the MDC. By setting the meet-me-room fees at a
reasonable level, the Exchange encourages Telecoms to participate in
the meet-me-rooms and to sell circuits to Users for connecting into and
out of the MDC. These Telecoms then compete with each other by pricing
such circuits at competitive rates. These competitive rates for
circuits help draw in more Users and Hosted Customers to the MDC, which
directly benefits the Exchange by increasing the customer base to whom
the Exchange can sell its colocation services, which include cabinets,
power, ports, and connectivity to many third-party data feeds, and
because having more Users and Hosted Customers leads, in many cases, to
greater participation on the Exchange. In this way, by setting the
meet-me-room fees at a level attractive to telecommunications firms,
the Exchange spurs demand for all of the services it sells at the MDC,
while setting the meet-me-room fees too high would negatively affect
the Exchange's ability to sell its services at the MDC.\14\
Accordingly, there are real constraints on the meet-me-room fees the
Exchange charges, such that the Exchange does not have an advantage in
terms of costs when compared to third parties that enter the MDC
through the meet-me-rooms to provide services to compete with the
Exchange's services.
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\12\ Telecoms are licensed by the Federal Communications
Commission and are not required to be, or be affiliated with, a
member of the Exchange or an Affiliate SRO.
\13\ See Securities Exchange Act Release No. 97998 (July 26,
2023), 88 FR 50238 (August 1, 2023) (SR-NYSE-2023-27).
\14\ See id. at 50241. Importantly, the Exchange is prevented
from making any alteration to its meet-me-room services or fees
without filing a proposal for such changes with the Commission.
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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 it is not designed to permit unfair discrimination
between market participants. Rather, it would apply to all market
participants equally. All Users that have two Resilient TF VCCs, i.e.
that connect to the same TF and use different networks and so are not
able to be active at the same time, would be charged as if they had one
TF VCC. All Users that have two TF VCCs that are not resilient, for
example that use the same Trading Floor network, will continue to be
subject to two charges.
There is no limit on the number of Resilient TF VCCs a User may
obtain. Accordingly, a User could have two Resilient TF VCCs to each
Trading Floor, or a number of Resilient TF VCCs to one Trading Floor.
The Exchange believes its proposal is not unfairly discriminatory.
The proposed change does not apply differently to distinct types or
sizes of market participants. Rather, it applies to all market
participants equally. The purchase of any proposed service is
completely voluntary and the Fee Schedule will be applied uniformly to
all market participants.
For the reasons above, the proposed change does 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 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.\15\
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\15\ 15 U.S.C. 78f(b)(8).
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The proposed change would not impose a burden on competition among
national securities exchanges or among members of the Exchange. Rather,
it would encourage Users to have resilient VCCs between the MDC and the
Trading Floors. The Exchange believes that amending the note to the Fee
Schedule would make it easier for potential purchasers of the service
to assess what connectivity will best serve them.
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-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
[[Page 5972]]
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#790b0c151c541a1614141c170d0a390a1c1a571e160f"><span class="__cf_email__" data-cfemail="e89a9d848dc58b8785858d869c9ba89b8d8bc68f879e">[email protected]</span></a>. Please include
file number SR-NYSE-2026-03 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-2026-03. 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-NYSE-2026-03 and should be submitted on
or before March 3, 2026.
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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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-02583 Filed 2-9-26; 8:45 am]
BILLING CODE 8011-01-P
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