Notice2026-18656
Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add a New Partial Cabinet Solution Bundle as Part of Its Co-Location Services
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
September 14, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 176 (Monday, September 14, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 176 (Monday, September 14, 2026)]
[Notices]
[Pages 58197-58201]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-18656]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106304; File No. SR-NYSENAT-2026-23]
Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Add a New
Partial Cabinet Solution Bundle as Part of Its Co-Location Services
September 9, 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 August 26, 2026, NYSE National, Inc. (``NYSE National'' 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to add a new Partial Cabinet Solution bundle
as part of its co-location services and change the wording in the
existing Partial Cabinet Solution bundle. The description of the
Partial Cabinet Solution bundles and related fees in the Connectivity
Fee Schedule (``Fee Schedule'') would be updated accordingly. 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 add a new Partial Cabinet Solution
(``PCS'') bundle as part of its co-location services and change the
wording in the existing PCS bundle. Specifically, the Exchange proposes
to add a 4 kW PCS bundle and change the reference to ``Precision Timing
Protocol'' in the existing PCS bundle. The description of the PCS
bundles and related fees in the Fee Schedule would be updated
accordingly.
The Exchange expects that the proposed rule change would become
operative no later than October 31, 2026. The Exchange will announce
the date through a customer notice.
[[Page 58198]]
Background
Currently, the Exchange offers Users \4\ a PCS bundle which
includes a 2 kW partial cabinet; access to the Liquidity Center Network
(``LCN'') and internet protocol (``IP'') network, the local area
networks available in the data center; two NMS network \5\ connections,
two fiber cross connections; and connectivity to one of two time
feeds.\6\ In addition to other requirements, a User and its Affiliates
\7\ must have an Aggregate Cabinet Footprint \8\ of 2 kW or less to
qualify for the PCS bundle.
---------------------------------------------------------------------------
\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. 83351 (May 31, 2018), 83 FR 26314 at n.9
(June 6, 2018) (SR-NYSENAT-2018-07). 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 New
York Stock Exchange LLC, NYSE American LLC, NYSE Arca, 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.
\5\ The NMS Network is an alternate dedicated network connection
that Users use to access the NMS feeds for which the Securities
Industry Automation Corporation is engaged as the securities
information processor. See Securities Exchange Act Release No. 88837
(May 7, 2020), 85 FR 28671 (May 13, 2020) (SR-NYSE-2019-46, SR-
NYSEAMER-2019-34, SR-NYSEArca-2019-61, SR-NYSENAT-2019-19).
\6\ See Securities Exchange Act Release No. 97752 (June 16,
2023), 88 FR 41134 (June 23, 2023) (SR-NYSENAT-2023-10).
\7\ An ``Affiliate'' of a User is any other User or Hosted
Customer that is under 50% or greater common ownership or control of
the first User. Fee Schedule, p 1.
\8\ The ``Aggregate Cabinet Footprint'' of a User is the total
kW of the User's cabinets, including both partial and dedicated
cabinets. Fee Schedule, p 1.
---------------------------------------------------------------------------
The PCS bundles were designed to attract smaller Users, including
those with minimal power or cabinet space demands or those for which
the costs attendant with having a dedicated cabinet or greater network
connection bandwidth are too burdensome.\9\ That has not changed. But
as hardware and other infrastructure has evolved, even those with
minimal demands need more power to meet the requirements of their
hardware, such that even smaller Users may find the existing 2 kW PCS
bundle inadequate to meet their needs.
---------------------------------------------------------------------------
\9\ See Securities Exchange Act No. 84895 (December 29, 2018),
83 FR 67405 (December 28, 2018) (SR-NYSENAT-2018-26).
---------------------------------------------------------------------------
Proposed Changes
To respond to Users' increased power needs, the Exchange proposes
to offer an additional 4 kW PCS bundle. To differentiate it from the
existing 2 kW PCS bundle, the Exchange proposes to label them as
Options A and B. Like the existing 2 kW PCS Option A, the proposed
Option B would be sized to meet the needs of smaller Users and their
current power needs.
At the same time, the Exchange proposes to change the reference to
``Precision Timing Protocol'' to ``Precision Time Protocol'' in the
existing PCS bundle, to conform the reference to the terminology used
elsewhere in the Fee Schedule.\10\
---------------------------------------------------------------------------
\10\ See Connectivity Fee Schedule, pages 18 and 26.
---------------------------------------------------------------------------
To implement the changes, the Exchange would amend Note 1, in
relevant part, as follows (proposed additions italicized):
1. To qualify for a Partial Cabinet Solution bundle, a User must
meet the following conditions: (1) it must purchase only one Partial
Cabinet Solution bundle; (2) the User and its Affiliates must not
currently have a Partial Cabinet Solution bundle; and (3) after the
purchase of the Partial Cabinet Solution bundle, the User, together
with its Affiliates, will have an Aggregate Cabinet Footprint of no
more than 2 kW for Option A and 4 kW for Option B.
<bullet> A User requesting a Partial Cabinet Solution bundle will
be required to certify to the Exchange (a) whether any other Users or
Hosted Customers are Affiliates of the certificating User, and (b) that
after the purchase of the Partial Cabinet Solution bundle, the User,
together with its Affiliates, would have an Aggregate Cabinet Footprint
of no more than 2 kW for Option A and 4 kW for Option B.
The Exchange would also amend the Fee Schedule to label the 2 kW
PCS bundle as Option A, add the new proposed Option B and make the
change to the ``Precision Timing Protocol'' reference. The amended Fee
Schedule would read as follows (proposed deletions bracketed; proposed
additions italicized):
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Partial Cabinet Solution bundles Option A: 2 kW partial cabinet, 1 $10,000 initial charge per bundle
Note: A User and its Affiliates are LCN connection (10 Gb LX or 40 Gb), plus $16,500 monthly charge per
limited to one Partial Cabinet 1 IP network connection (10 Gb or bundle.
Solution bundle at a time. A User 40 Gb), 2 NMS Network connections ....................................
and its Affiliates must have an (10 Gb or 40 Gb each), 2 fiber ....................................
Aggregate Cabinet Footprint of 2 kW cross connections and either the ....................................
or less to qualify for [a Partial Network Time Protocol Feed or ....................................
Cabinet Solution bundle] Option A Precision Tim[ing]e Protocol. ....................................
and 4 kW or less to qualify for Option B:4 kW partial cabinet, 1 LCN $12,000 initial charge per bundle
Option B. See Note 1 under connection (10 Gb LX or 40 Gb), 1 plus $19,000 monthly charge per
``Colocation Notes.'' IP network connection (10 Gb or 40 bundle.
A purchaser of a Partial Cabinet Gb), 2 NMS Network connections (10
Solution bundle must select NMS Gb or 40 Gb each), 2 fiber cross
Network connections of the same connections and either the Network
size (i.e. 10 Gb or 40 Gb) as the Time Protocol Feed or Precision
related LCN and IP network Time Protocol.
connections.
----------------------------------------------------------------------------------------------------------------
Application and Impact of the Proposed Change
The proposed change would apply to all PCS bundles. The proposed
change would not apply differently to distinct types or sizes of market
participants. Rather, it would apply to all Users equally.
Users that require other sizes or combinations of cabinets, network
connections and cross connects could still request them. As is
currently the case, the purchase of any colocation service, including
PCS bundles, is completely voluntary and the Price List is applied
uniformly to all Users.
The Exchange expects to obtain at most a handful of new Users as a
result of offering the 4 kW PCS bundles. A User, including a User with
a 4 kW dedicated cabinet, would be able to convert to the 4 kW PCS
bundle if it otherwise met the conditions. The Exchange does not expect
to obtain new Users as a result of the other changes.
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.
[[Page 58199]]
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 Section 6(b)(5) of the Act,\12\ 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,\13\ 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
\13\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Proposed Change Is Reasonable
The Exchange believes that the proposed rule change is reasonable.
The fees proposed for the new 4 kW PCS bundle are reasonable, as
they are comparable to the fees charged for the 2 kW PCS bundle.
Indeed, the monthly charge for the 4 kW PCS bundle would be lower per
kW than the existing charge for the 2 kW PCS bundle.\14\ The Exchange
notes that the equipment for the two services is not the same:
different cabinets are needed for the 4 kW PCS bundle as compared to
the 2 kW PCS bundle.
---------------------------------------------------------------------------
\14\ The monthly charge per kW of the 2 kW PCS bundle is $8,250,
and the proposed monthly charge for a 4 kW PCS bundle would be
$4,750.
---------------------------------------------------------------------------
The proposed rule change would allow the Exchange to offer an
option to smaller Users that find the existing 2 kW PCS bundle
inadequate to meet their needs but otherwise meet the requirements. The
addition of a 4 kW PCS bundle would permit current or potential Users
to tailor their service selection and fees to meet their own individual
business models.
The Exchange does not believe that FIDS has a competitive advantage
by virtue of the fact that it owns and operates the MDC's meet-me-
rooms. Users purchasing the proposed 4 kW PCS bundles--like Users of
any other colocation service--would require a circuit connecting out of
the MDC, and in most cases, such circuits are provided by third-party
telecommunications service providers that have installed their
equipment in the MDC's two meet-me-rooms (``Telecoms'').\15\ Currently,
17 Telecoms 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
\16\ 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.\17\
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.
---------------------------------------------------------------------------
\15\ Note that in the case of wireless connectivity, a User in
colocation still requires a fiber circuit to transport data. If a
Telecom is used, the data is transmitted wirelessly to the relevant
pole, and then from the pole to the meet-me-room using a fiber
circuit.
\16\ See Securities Exchange Act Release No. 98002 (July 26,
2023), 88 FR 50232 (August 1, 2023) (SR-NYSENat-2023-12).
\17\ See id. at 50235. 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.
---------------------------------------------------------------------------
The proposed change to the ``Precision Timing Protocol'' language
would conform the reference to the existing references elsewhere in the
Fee Schedule. There would be no ambiguity as to what the language
referred to, and so the change is reasonable.
For these reasons, the proposed change is reasonable.
The Proposed Change Is Equitable
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.
The 2 kW PCS bundle was designed to attract smaller Users,
including those with minimal power or cabinet space demands or those
for which the costs attendant with having a dedicated cabinet or
greater network connection bandwidth are too burdensome. As equipment
has evolved, even those with minimal demands need more power to meet
the requirements of their hardware, such that even smaller Users may
not find the existing 2 kW PCS bundle meets their needs adequately. The
proposed 4 kW PCS bundle would be responsive to the evolution of
equipment, and so the Exchange believes that its introduction is
equitable because it would not force customers to accept a ``one-size-
fits-all'' PCS bundle but would instead permit them to tailor their
service selection and fees to meet their own individual business
models.
Without this proposed rule change, potential Users would have fewer
usable options. This would be a detriment for them, especially for
potential Users with minimal power or cabinet space demands or those
for which the costs attendant with having a dedicated cabinet or
greater network connection bandwidth are too burdensome.
In addition, the Exchange believes that the proposal is equitable
because only Users that voluntarily select a 4 kW PCS bundle would be
charged for it. As is true now, 4 kW PCS bundles would be available to
all Users on an equal basis, and all Users that voluntarily choose to
purchase a 4 kW PCS bundle would be charged the same amount, and be
subject to the same restrictions, for that bundle.
The proposed changes to label the 2 kW PCS bundle as Option A, add
the new proposed Option B and make the change to the ``Precision Timing
Protocol'' reference would add clarity to the Fee Schedule.
[[Page 58200]]
The Proposed Change Is Not Unfairly Discriminatory
The Exchange believes its proposal is not unfairly discriminatory.
The proposed rule change would allow the Exchange to offer an
option to smaller Users that find the existing 2 kW PCS bundle
inadequate to meet their needs but otherwise meet the requirements. The
addition of a 4 kW PCS bundle would permit current or potential Users
to tailor their service selection and fees to meet their own individual
business models.
The fees proposed for the new 4 kW PCS bundle are not unfairly
discriminatory, as they are comparable to the fees charged for the 2 kW
PCS bundle. Indeed, the monthly charge for the 4 kW PCS bundle would be
lower per kW than the existing charge for the 2 kW PCS bundle. The
Exchange notes that the equipment for the two services is not the same:
different cabinets are needed for the 4 kW PCS bundle as compared to
the 2 kW PCS bundle.
In addition, the proposed changes to add ``Option A'' and ``Option
B'' would add clarity. Similarly, the proposed change to amend the
``Precision Timing Protocol'' language would add clarity and conform
the reference to the existing references elsewhere in the Fee Schedule.
These proposed changes would therefore make the Fee Schedule more
transparent and reduce any potential ambiguity.
For the reasons above, the proposed changes do 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 proposed rule changes 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.\18\
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
The proposed change does not affect competition among national
securities exchanges or among members of the Exchange. The proposed
changes would enhance competition by giving smaller Users the option to
have a 4 kW PCS bundle to meet their needs. The proposed change may
make PCS bundles more attractive to current or potential Users who
might otherwise opt to purchase 4 kW partial cabinets and other co-
location services, or 2 kW PCS bundles. It would therefore enhance the
competitive environment for potential Users, as they would have more
options from which to select. This could be especially beneficial for
potential Users with minimal power or cabinet space demands or those
for which the costs attendant with having a dedicated cabinet or
greater network connection bandwidth are too burdensome. At the same
time, however, no potential or current User would be obligated to
purchase a 4 kW PCS bundle.
The Exchange operates in a highly competitive market in which
exchanges and other vendors offer co-location services as a means to
facilitate the trading and other market activities of those market
participants who believe that co-location enhances the efficiency of
their operations.
The Commission has repeatedly expressed its preference for
competition over regulatory intervention in determining prices,
products, and services in the securities markets. Specifically, in
Regulation NMS, the Commission highlighted the importance of market
forces in determining prices and SRO revenues and, also, recognized
that current regulation of the market system ``has been remarkably
successful in promoting market competition in its broader forms that
are most important to investors and listed companies.'' \19\
---------------------------------------------------------------------------
\19\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
---------------------------------------------------------------------------
The proposed changes to add ``Option A'' and ``Option B'' and to
amend the ``Precision Timing Protocol'' language would not address
competition but rather would make the Fee Schedule more transparent and
reduce any potential ambiguity.
For the reasons described above, the Exchange believes that the
proposed rule changes reflect this competitive environment.
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 \20\ and Rule 19b-4(f)(6) thereunder.\21\
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.\22\
---------------------------------------------------------------------------
\20\ 15 U.S.C. 78s(b)(3)(A)(iii).
\21\ 17 CFR 240.19b-4(f)(6).
\22\ 17 CFR 240.19b-4(f)(6). 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.
---------------------------------------------------------------------------
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) \23\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\23\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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#6715120b024a04080a0a020913142714020449000811"><span class="__cf_email__" data-cfemail="fa888f969fd7999597979f948e89ba899f99d49d958c">[email protected]</span></a>. Please include
file number SR-NYSENAT-2026-23 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-2026-23. 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
[[Page 58201]]
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-2026-23 and should be submitted on or before October 5,
2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
---------------------------------------------------------------------------
\24\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-18656 Filed 9-11-26; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on September 14, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.