Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of Proposed Rule Change to the Co-Location Services Offered by the Exchange (the Offering of a Wireless Connection To Allow Users To Receive Market Data Feeds From Third Party Markets) and To Reflect Changes to the NYSE MKT Equities Price List and the NYSE Amex Options Fee Schedule Related to These Services, 70047-70051 [2015-28686]
Download as PDF
Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices
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.18 A proposed rule change
filed under Rule 19b–4(f)(6)(iii) 19
normally does not become operative
prior to 30 days after the date of the
filing. However, pursuant to Rule 19b–
4(f)(6)(iii),20 the Commission may
designate a shorter time if such action
is consistent with the protection of
investors and the public interest.
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest as it
will allow the Exchange to incorporate
changes required under Regulation SCI,
such as establishing standards for
designating BC/DR participants, prior to
the November 3, 2015 compliance date.
Accordingly, the Commission
designates the proposed rule change to
be operative upon filing.21
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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or 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:
mstockstill on DSK4VPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
18 In addition, Rule 19b–4(f)(6) requires a selfregulatory 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.
19 17 CFR 240.19b–4(f)(6).
20 17 CFR 240.19b–4(f)(6)(iii).
21 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
18:15 Nov 10, 2015
Jkt 238001
• Send an email to rulecomments@sec.gov. Please include File
Number SR±NASDAQ±2015±134 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2015–134. 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 Web site (https://www.sec.gov/
rules/sro.shtml).
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 Web site 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
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR±
NASDAQ±2015±134 and should be
submitted on or before December 3,
2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–28697 Filed 11–10–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76366; File No. SR–
NYSEMKT–2015–85]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing of Proposed
Rule Change to the Co-Location
Services Offered by the Exchange (the
Offering of a Wireless Connection To
Allow Users To Receive Market Data
Feeds From Third Party Markets) and
To Reflect Changes to the NYSE MKT
Equities Price List and the NYSE Amex
Options Fee Schedule Related to
These Services
November 5, 2015.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on October
23, 2015, NYSE MKT LLC (the
‘‘Exchange’’ or ‘‘NYSE MKT’’) 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 selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to change the
co-location services offered by the
Exchange to include a means for colocated Users to receive market data
feeds from third party markets through
a wireless connection. In addition, the
proposed rule change reflects changes to
the NYSE MKT Equities Price List
(‘‘Price List’’) and the NYSE Amex
Options Fee Schedule (‘‘Fee Schedule’’)
related to these services. The text of the
proposed rule change is available on the
Exchange’s Web site at www.nyse.com,
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
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
22 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00113
Fmt 4703
Sfmt 4703
70047
E:\FR\FM\12NON1.SGM
12NON1
70048
Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to change the
co-location 4 services offered by the
Exchange to include a means for Users
to receive market data feeds from third
party markets (the ‘‘Third Party Data’’)
through a wireless connection.5 In
addition, this proposed rule change
reflects changes to the Price List and the
Fee Schedule related to these colocation services.
The Exchange proposes to offer the
wireless connection to provide Users
with an alternative means of
connectivity for Third Party Data.
Wireless connections involve beaming
signals through the air between
antennas that are within sight of one
another. Because the signals travel a
straight, unimpeded line, and because
light waves travel faster through air than
through glass (fiber optics), wireless
messages have lower latency than
messages travelling through fiber optics.
Under the proposed rule change, the
Exchange would utilize a network
vendor to provide a wireless connection
to the Third Party Data through wireless
connections from the Exchange access
centers in Secaucus and Carteret, New
Jersey, to its data center in Mahwah,
New Jersey, through a series of towers
equipped with wireless equipment.6
The wireless connectivity would be an
optional offering, offering an alternative
method for connectivity to the Third
Party Data.
A User that chooses this optional
service would be able to receive data
feeds from NASDAQ and BATS
Exchange, Inc. over a wireless
connection. To receive Third Party Data,
the User would enter into a contract
with the relevant third party market,
which would charge the User the
applicable market data fees for the Third
Party Data. The Exchange would charge
the User fees for the wireless connection
for the Third Party Data.7
Description
Amount of charge
Wireless connection of BATS Pitch BZX Gig shaped data .....................
Wireless connection of DirectEdge EDGX Gig shaped data ...................
Wireless connection of NASDAQ Totalview-ITCH data ...........................
Wireless connection of NASDAQ BX Totalview-ITCH data .....................
Wireless connection of NASDAQ Totalview-ITCH and BX TotalviewITCH data.
mstockstill on DSK4VPTVN1PROD with NOTICES
Port for wireless connection .....................................................................
4 The Exchange initially filed rule changes
relating to its co-location services with the
Securities and Exchange Commission
(‘‘Commission’’) in 2010. See Securities Exchange
Act Release No. 62961 (September 21, 2010), 75 FR
59299 (September 27, 2010) (SR–NYSEAmex–2010–
80). The Exchange operates a data center in
Mahwah, New Jersey (the ‘‘data center’’) from
which it provides co-location services to Users.
5 For purposes of the Exchange’s co-location
services, a ‘‘User’’ means any market participant
that requests to receive co-location services directly
from the Exchange. See Securities Exchange Act
Release No. 76009 (September 29, 2015), 80 FR
60213 (October 5, 2015) (SR–NYSEMKT–2015–67).
VerDate Sep<11>2014
18:15 Nov 10, 2015
Jkt 238001
A User would be charged a $5,000
non-recurring initial charge for each
wireless connection and a monthly
recurring charge (‘‘MRC’’) that would
vary depending upon the feed that the
User opts to receive. If a User purchased
two wireless connections, it would pay
two non-recurring initial charges. The
Exchange proposes to waive the first
month’s MRC, to allow Users to test the
receipt of the feed(s) for a month before
incurring any MRCs.
The Exchange proposes that the
wireless connections would include the
use of one port for connectivity to the
Third Party Data. A User will only
require one port to connect to the Third
Party Data, irrespective of how many of
the five wireless connections it orders.
If a User that has more than one wireless
connection wishes to use more than one
port to connect to the Third Party Data,8
the Exchange proposes to make such
additional ports available for a monthly
fee per port of $3,000.
The Exchange proposes to revise its
Price List and the Fee Schedule to
reflect fees related to these connections
and ports, as follows:
$5,000 per connection initial charge plus monthly charge per
tion of $6,000.
Fees are subject to a 30-day testing period, during which the
charge per connection is waived.
$5,000 per connection initial charge plus monthly charge per
tion of $6,000.
Fees are subject to a 30-day testing period, during which the
charge per connection is waived.
$5,000 per connection initial charge plus monthly charge per
tion of $8,500.
Fees are subject to a 30-day testing period, during which the
charge per connection is waived.
$5,000 per connection initial charge plus monthly charge per
tion of $6,000.
Fees are subject to a 30-day testing period, during which the
charge per connection is waived.
$5,000 per connection initial charge plus monthly charge per
tion of $12,000.
Fees are subject to a 30-day testing period, during which the
charge per connection is waived.
$3,000 monthly charge per port, excluding first port.
As specified in the Price List and the Fee Schedule,
a User that incurs co-location fees for a particular
co-location service pursuant thereto would not be
subject to co-location fees for the same co-location
service charged by the Exchange’s affiliates New
York Stock Exchange LLC and NYSE Arca, Inc. See
Securities Exchange Act Release No. 70176 (August
13, 2013), 78 FR 50471 (August 19, 2013) (SR–
NYSEMKT–2013–67).
6 The NASDAQ Stock Market LLC (‘‘NASDAQ’’)
offers a similar wireless service. See Securities
Exchange Act Release No. 68735 (January 25, 2013),
78 FR 6842 (January 31, 2013) (SR–NASDAQ–2012–
119) (approving a proposed rule change to establish
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
connecmonthly
connecmonthly
connecmonthly
connecmonthly
connecmonthly
a new optional wireless connectivity for collocated
clients).
7 A User would only receive the Third Party Data
for which it had entered into a contract. For
example, a User that contracted with NASDAQ for
the NASDAQ Totalview-ITCH data feed but did not
contract to receive any other Third Party Data
would receive only the NASDAQ Totalview-ITCH
data feed through its wireless connection.
8 For example, a User with two wireless
connections for Third Party Data may opt to
purchase an additional port in order to route the
options and equity data it receives to different
cabinets.
E:\FR\FM\12NON1.SGM
12NON1
Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
There is limited bandwidth available
on the wireless connection for data
feeds from third parties, and so the
Exchange has opted to offer only the
Third Party Data, which are data feeds
that are in high demand from Users. The
wireless network offered by the
Exchange, although constrained by
bandwidth with respect to the number
of feeds it can carry, can be made
available to an unlimited number of
Users.
The Exchange proposes to offer the
wireless connection to provide Users
with an alternative means of
connectivity for Third Party Data.
Currently, Users can receive Third Party
Data from wireless networks offered by
third party vendors.9 Users can also
receive Third Party Data through other
methods, including, for example, from
another User, through a
telecommunications provider, or over
the internet protocol (‘‘IP’’) network.10
The wireless connection to the Third
Party Data is expected to be available no
later than March 1, 2016. The Exchange
will announce the date that the wireless
connection to the Third Party Data will
be available through a customer notice.
As is the case with all Exchange colocation arrangements, (i) neither a User
nor any of the User’s customers would
be permitted to submit orders directly to
the Exchange unless such User or
customer is a member organization, a
Sponsored Participant or an agent
thereof (e.g., a service bureau providing
order entry services); (ii) use of the colocation services proposed herein would
be completely voluntary and available
to all Users on a non-discriminatory
basis; 11 and (iii) a User would only
incur one charge for the particular colocation service described herein,
regardless of whether the User connects
9 Currently, at least four third party vendors offer
Users wireless network connections using wireless
equipment installed on towers and buildings near
the data center.
10 The IP network is a local area network available
in the data center. See Securities Exchange Act
Release No. 74220 (February 6, 2015), 80 FR 7894
(February 12, 2015) (SR–NYSEMKT–2015–08)
(notice of filing and immediate effectiveness of
proposed rule change to include IP network
connections).
11 As is currently the case, Users that receive colocation services from the Exchange will not receive
any means of access to the Exchange’s trading and
execution systems that is separate from, or superior
to, that of other Users. In this regard, all orders sent
to the Exchange enter the Exchange’s trading and
execution systems through the same order gateway,
regardless of whether the sender is co-located in the
data center or not. In addition, co-located Users do
not receive any market data or data service product
that is not available to all Users, although Users that
receive co-location services normally would expect
reduced latencies in sending orders to, and
receiving market data from, the Exchange.
VerDate Sep<11>2014
18:15 Nov 10, 2015
Jkt 238001
only to the Exchange or to the Exchange
and one or both of its affiliates.12
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 Users 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 Sections
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 mechanisms 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 believes that the
proposed services are not designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers
because the wireless connection for
Third Party Data would provide Users
with an alternative means of
connectivity for Third Party Data. Users
that do not opt to utilize the Exchange’s
proposed wireless connections would
still be able to obtain Third Party Data
through other methods, including, for
example, from wireless networks offered
by third party vendors, another User,
through a telecommunications provider,
or over the IP network. Users that opt
to use wireless connections for Third
Party Data would not receive Third
Party Data that is not available to all
Users, as all market participants that
contract with the relevant third party
market for the Third Party Data may
receive it.
The Exchange believes that this
removes impediments to, and perfects
the mechanisms of, a free and open
market and a national market system
and, in general, protects investors and
the public interest because it would
12 See SR–NYSEMKT–2013–67, supra note 5 at
50471. The Exchange’s affiliates have also
submitted substantially the same proposed rule
change to propose the changes described herein.
See SR–NYSE–2015–52 and SR–NYSEArca–2015–
99.
13 15 U.S.C. 78f(b).
14 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00115
Fmt 4703
Sfmt 4703
70049
provide Users with choices with respect
to the form and optimal latency of the
connectivity they use to receive Third
Party Data, allowing a User that opts to
receive Third Party Data to select the
connectivity and number of ports that
better suit its needs, helping it tailor its
data center operations to the
requirements of its business operations.
The Exchange also believes that the
proposed rule change is consistent with
Section 6(b)(4) of the Act,15 in
particular, because it provides for the
equitable allocation of reasonable dues,
fees, and other charges among its
member organizations, issuers and other
persons using its facilities and does not
unfairly discriminate between
customers, issuers, brokers or dealers.
Overall, the Exchange believes that
the proposed change is reasonable
because the Exchange proposes to offer
wireless connection for Third Party Data
described herein as a convenience to
Users, but in doing so would incur
certain costs, including costs related to
the data center facility, hardware and
equipment and costs related to
personnel required for initial
installation and monitoring, support
and maintenance of such services. The
costs associated with the wireless
connections are incrementally higher
than fiber optics-based solutions due to
the expense of the wireless equipment,
cost of installation and testing and
ongoing maintenance of the network.
The Exchange believes that the
proposed pricing for the wireless
connection for Third Party Data is
reasonable because it allows Users to
select the Third Party Data connectivity
option and number of ports that better
suit their needs. The fees also reflect the
benefit received by Users in terms of
lower latency over the fiber optics
option. The Exchange believes that the
proposed waiver of the first month’s
MRC is reasonable as it would allow
Users to test the receipt of the feed(s) for
a month before incurring any monthly
recurring fees and may act as an
incentive to Users to utilize the new
service.
The Exchange believes that the
proposed change is equitable and not
unfairly discriminatory because it will
result in fees being charged only to
Users that voluntarily select to receive
the corresponding services and because
those services will be available to all
Users. Furthermore, the Exchange
believes that the services and fees
proposed herein are not unfairly
discriminatory and are equitably
allocated because, in addition to the
services being completely voluntary,
15 15
E:\FR\FM\12NON1.SGM
U.S.C. 78f(b)(4).
12NON1
70050
Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
they are available to all Users on an
equal basis (i.e., the same products and
services are available to all Users). All
Users that voluntarily select wireless
connections and ports would be charged
the same amount for the same services
and would have their first month MRC
for wireless connections waived.
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.
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,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 because, in
addition to the proposed services being
completely voluntary, they are available
to all Users on an equal basis (i.e. the
same products and services are available
to all Users).
The Exchange believes that allowing
Users to receive Third Party Data
through a wireless connection will not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act
because such access will satisfy User
demand for additional options for
connectivity for Third Party Data.
Currently, Users can receive Third Party
Data from wireless networks offered by
third party vendors. Based on the
information available to it, the Exchange
believes that its proposed wireless
connection would provide data at the
same or similar speed and at the same
or similar cost as the existing wireless
networks. Accordingly, the proposed
wireless connection for Third Party Data
would provide Users with an additional
wireless connectivity option, thereby
enhancing competition.
The Exchange notes that the proposed
wireless connection would compete not
just with other wireless connections, but
also with fiber optic networks, which
may be more attractive to some Users as
they are more reliable and less
susceptible to weather conditions. Users
16 15
U.S.C. 78f(b)(8).
VerDate Sep<11>2014
18:15 Nov 10, 2015
Jkt 238001
that do not opt to utilize wireless
connections would be able to obtain
Third Party Data through other methods,
including, for example, from another
User, through a telecommunications
provider, or over the IP network. In this
way, the proposed changes would
enhance competition by helping Users
tailor their connectivity for Third Party
Data to the needs of their business
operations by allowing them to select
the form and optimal latency of the
connectivity they use to receive Third
Party Data that best suits their needs,
helping them tailor their data center
operations to the requirements of their
business operations.
The proposed wireless connection to
the Third Party Data would traverse
wireless connections through a series of
towers equipped with wireless
equipment, including a pole on the
grounds of the data center. The
proposed wireless network would have
exclusive rights to operate wireless
equipment on the data center pole. The
Exchange will not sell rights to third
parties to operate wireless equipment on
the pole, due to space limitations,
security concerns, and the interference
that would arise between equipment
placed too closely together. In addition
to space issues, there are contractual
restrictions on the use of the roof that
the Exchange has determined would not
be met if it offered space on the roof for
third party wireless equipment.
Moreover, access to the pole or roof is
not required for third parties to establish
wireless networks that can compete
with the Exchange’s proposed service,
as witnessed by the existing wireless
networks currently serving Users. Based
on the information available to it, the
Exchange believes that its proposed
wireless connection would provide data
at the same or similar speed, and at the
same or similar cost, as its proposed
wireless connection, thereby enhancing
competition.17
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 review,
and consider adjusting, its services and
related fees and credits to remain
competitive with other exchanges. For
the reasons described above, the
Exchange believes that the proposed
17 The Exchange notes that the distance of a
wireless network provider’s wireless equipment
from the User is only one factor in determining
overall latency. Other factors include the number of
repeaters in the route, the number of switches the
data has to travel through, and the millimeter wave
and switch technology used.
PO 00000
Frm 00116
Fmt 4703
Sfmt 4703
rule change reflects 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
Within 45 days of the date of
publication of this notice in the Federal
Register or 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
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEMKT–2015–85 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEMKT–2015–85. 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 Web site (https://www.sec.gov/
rules/sro.shtml). 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
E:\FR\FM\12NON1.SGM
12NON1
Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices
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 Web site 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
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEMKT–2015–85 and should be
submitted on or before December 3,
2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–28686 Filed 11–10–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76364; File No. SR–
NYSEArca–2015–99]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change to the Co-Location
Services Offered by the Exchange (the
Offering of a Wireless Connection To
Allow Users To Receive Market Data
Feeds From Third Party Markets) and
To Reflect Changes to the NYSE Arca
Options Fee Schedule and the NYSE
Arca Equities Schedule of Fees and
Charges Related to These Services
mstockstill on DSK4VPTVN1PROD with NOTICES
November 5, 2015.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on October
23, 2015, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 selfregulatory organization. The
Commission is publishing this notice to
18 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
18:15 Nov 10, 2015
Jkt 238001
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to change the
co-location services offered by the
Exchange to include a means for colocated Users to receive market data
feeds from third party markets through
a wireless connection. In addition, the
proposed rule change reflects changes to
the NYSE MKT Equities Price List
(‘‘Price List’’) and the NYSE Amex
Options Fee Schedule (‘‘Fee Schedule’’)
related to these services. The text of the
proposed rule change is available on the
Exchange’s Web site at www.nyse.com,
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to change the
co-location 4 services offered by the
Exchange to include a means for Users
to receive market data feeds from third
party markets (the ‘‘Third Party Data’’)
through a wireless connection.5 In
4 The Exchange initially filed rule changes
relating to its co-location services with the
Securities and Exchange Commission
(‘‘Commission’’) in 2010. See Securities Exchange
Act Release No. 63275 (November 8, 2010), 75 FR
70048 (November 16, 2010) (SR–NYSEArca–2010–
100). The Exchange operates a data center in
Mahwah, New Jersey (the ‘‘data center’’) from
which it provides co-location services to Users.
5 For purposes of the Exchange’s co-location
services, a ‘‘User’’ means any market participant
that requests to receive co-location services directly
from the Exchange. See Securities Exchange Act
Release No. 76010 (September 29, 2015), 80 FR
60197 (October 5, 2015) (SR–NYSEArca–2015–82).
As specified in the Fee Schedules, a User that
incurs co-location fees for a particular co-location
service pursuant thereto would not be subject to colocation fees for the same co-location service
charged by the Exchange’s affiliates New York
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
70051
addition, this proposed rule change
reflects changes to the Fee Schedules
related to these co-location services.
The Exchange proposes to offer the
wireless connection to provide Users
with an alternative means of
connectivity for Third Party Data.
Wireless connections involve beaming
signals through the air between
antennas that are within sight of one
another. Because the signals travel a
straight, unimpeded line, and because
light waves travel faster through air than
through glass (fiber optics), wireless
messages have lower latency than
messages travelling through fiber optics.
Under the proposed rule change, the
Exchange would utilize a network
vendor to provide a wireless connection
to the Third Party Data through wireless
connections from the Exchange access
centers in Secaucus and Carteret, New
Jersey, to its data center in Mahwah,
New Jersey, through a series of towers
equipped with wireless equipment.6
The wireless connectivity would be an
optional offering, offering an alternative
method for connectivity to the Third
Party Data.
A User that chooses this optional
service would be able to receive data
feeds from NASDAQ and BATS
Exchange, Inc. over a wireless
connection. To receive Third Party Data,
the User would enter into a contract
with the relevant third party market,
which would charge the User the
applicable market data fees for the Third
Party Data. The Exchange would charge
the User fees for the wireless connection
for the Third Party Data.7
A User would be charged a $5,000
non-recurring initial charge for each
wireless connection and a monthly
recurring charge (‘‘MRC’’) that would
vary depending upon the feed that the
User opts to receive. If a User purchased
two wireless connections, it would pay
two non-recurring initial charges. The
Exchange proposes to waive the first
month’s MRC, to allow Users to test the
receipt of the feed(s) for a month before
incurring any MRCs.
Stock Exchange LLC and NYSE MKT LLC. See
Securities Exchange Act Release No. 70173 (August
13, 2013), 78 FR 50459 (August 19, 2013) (SR–
NYSEArca–2013–80).
6 The NASDAQ Stock Market LLC (‘‘NASDAQ’’)
offers a similar wireless service. See Securities
Exchange Act Release No. 68735 (January 25, 2013),
78 FR 6842 (January 31, 2013) (SR–NASDAQ–2012–
119) (approving a proposed rule change to establish
a new optional wireless connectivity for collocated
clients).
7 A User would only receive the Third Party Data
for which it had entered into a contract. For
example, a User that contracted with NASDAQ for
the NASDAQ Totalview-ITCH data feed but did not
contract to receive any other Third Party Data
would receive only the NASDAQ Totalview-ITCH
data feed through its wireless connection.
E:\FR\FM\12NON1.SGM
12NON1
Agencies
[Federal Register Volume 80, Number 218 (Thursday, November 12, 2015)]
[Notices]
[Pages 70047-70051]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28686]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76366; File No. SR-NYSEMKT-2015-85]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of
Proposed Rule Change to the Co-Location Services Offered by the
Exchange (the Offering of a Wireless Connection To Allow Users To
Receive Market Data Feeds From Third Party Markets) and To Reflect
Changes to the NYSE MKT Equities Price List and the NYSE Amex Options
Fee Schedule Related to These Services
November 5, 2015.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on October 23, 2015, NYSE MKT LLC (the ``Exchange'' or
``NYSE MKT'') 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.
---------------------------------------------------------------------------
\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 change the co-location services offered by
the Exchange to include a means for co-located Users to receive market
data feeds from third party markets through a wireless connection. In
addition, the proposed rule change reflects changes to the NYSE MKT
Equities Price List (``Price List'') and the NYSE Amex Options Fee
Schedule (``Fee Schedule'') related to these services. The text of the
proposed rule change is available on the Exchange's Web site at
www.nyse.com, 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
[[Page 70048]]
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to change the co-location \4\ services
offered by the Exchange to include a means for Users to receive market
data feeds from third party markets (the ``Third Party Data'') through
a wireless connection.\5\ In addition, this proposed rule change
reflects changes to the Price List and the Fee Schedule related to
these co-location services.
---------------------------------------------------------------------------
\4\ The Exchange initially filed rule changes relating to its
co-location services with the Securities and Exchange Commission
(``Commission'') in 2010. See Securities Exchange Act Release No.
62961 (September 21, 2010), 75 FR 59299 (September 27, 2010) (SR-
NYSEAmex-2010-80). The Exchange operates a data center in Mahwah,
New Jersey (the ``data center'') from which it provides co-location
services to Users.
\5\ For purposes of the Exchange's co-location services, a
``User'' means any market participant that requests to receive co-
location services directly from the Exchange. See Securities
Exchange Act Release No. 76009 (September 29, 2015), 80 FR 60213
(October 5, 2015) (SR-NYSEMKT-2015-67). As specified in the Price
List and the Fee Schedule, a User that incurs co-location fees for a
particular co-location service pursuant thereto would not be subject
to co-location fees for the same co-location service charged by the
Exchange's affiliates New York Stock Exchange LLC and NYSE Arca,
Inc. See Securities Exchange Act Release No. 70176 (August 13,
2013), 78 FR 50471 (August 19, 2013) (SR-NYSEMKT-2013-67).
---------------------------------------------------------------------------
The Exchange proposes to offer the wireless connection to provide
Users with an alternative means of connectivity for Third Party Data.
Wireless connections involve beaming signals through the air between
antennas that are within sight of one another. Because the signals
travel a straight, unimpeded line, and because light waves travel
faster through air than through glass (fiber optics), wireless messages
have lower latency than messages travelling through fiber optics.
Under the proposed rule change, the Exchange would utilize a
network vendor to provide a wireless connection to the Third Party Data
through wireless connections from the Exchange access centers in
Secaucus and Carteret, New Jersey, to its data center in Mahwah, New
Jersey, through a series of towers equipped with wireless equipment.\6\
The wireless connectivity would be an optional offering, offering an
alternative method for connectivity to the Third Party Data.
---------------------------------------------------------------------------
\6\ The NASDAQ Stock Market LLC (``NASDAQ'') offers a similar
wireless service. See Securities Exchange Act Release No. 68735
(January 25, 2013), 78 FR 6842 (January 31, 2013) (SR-NASDAQ-2012-
119) (approving a proposed rule change to establish a new optional
wireless connectivity for collocated clients).
---------------------------------------------------------------------------
A User that chooses this optional service would be able to receive
data feeds from NASDAQ and BATS Exchange, Inc. over a wireless
connection. To receive Third Party Data, the User would enter into a
contract with the relevant third party market, which would charge the
User the applicable market data fees for the Third Party Data. The
Exchange would charge the User fees for the wireless connection for the
Third Party Data.\7\
---------------------------------------------------------------------------
\7\ A User would only receive the Third Party Data for which it
had entered into a contract. For example, a User that contracted
with NASDAQ for the NASDAQ Totalview-ITCH data feed but did not
contract to receive any other Third Party Data would receive only
the NASDAQ Totalview-ITCH data feed through its wireless connection.
---------------------------------------------------------------------------
A User would be charged a $5,000 non-recurring initial charge for
each wireless connection and a monthly recurring charge (``MRC'') that
would vary depending upon the feed that the User opts to receive. If a
User purchased two wireless connections, it would pay two non-recurring
initial charges. The Exchange proposes to waive the first month's MRC,
to allow Users to test the receipt of the feed(s) for a month before
incurring any MRCs.
The Exchange proposes that the wireless connections would include
the use of one port for connectivity to the Third Party Data. A User
will only require one port to connect to the Third Party Data,
irrespective of how many of the five wireless connections it orders. If
a User that has more than one wireless connection wishes to use more
than one port to connect to the Third Party Data,\8\ the Exchange
proposes to make such additional ports available for a monthly fee per
port of $3,000.
---------------------------------------------------------------------------
\8\ For example, a User with two wireless connections for Third
Party Data may opt to purchase an additional port in order to route
the options and equity data it receives to different cabinets.
---------------------------------------------------------------------------
The Exchange proposes to revise its Price List and the Fee Schedule
to reflect fees related to these connections and ports, as follows:
------------------------------------------------------------------------
Description Amount of charge
------------------------------------------------------------------------
Wireless connection of BATS Pitch BZX $5,000 per connection initial
Gig shaped data. charge plus monthly charge per
connection of $6,000.
Fees are subject to a 30-day
testing period, during which
the monthly charge per
connection is waived.
Wireless connection of DirectEdge EDGX $5,000 per connection initial
Gig shaped data. charge plus monthly charge per
connection of $6,000.
Fees are subject to a 30-day
testing period, during which
the monthly charge per
connection is waived.
Wireless connection of NASDAQ Totalview- $5,000 per connection initial
ITCH data. charge plus monthly charge per
connection of $8,500.
Fees are subject to a 30-day
testing period, during which
the monthly charge per
connection is waived.
Wireless connection of NASDAQ BX $5,000 per connection initial
Totalview-ITCH data. charge plus monthly charge per
connection of $6,000.
Fees are subject to a 30-day
testing period, during which
the monthly charge per
connection is waived.
Wireless connection of NASDAQ Totalview- $5,000 per connection initial
ITCH and BX Totalview-ITCH data. charge plus monthly charge per
connection of $12,000.
Fees are subject to a 30-day
testing period, during which
the monthly charge per
connection is waived.
Port for wireless connection........... $3,000 monthly charge per port,
excluding first port.
------------------------------------------------------------------------
[[Page 70049]]
There is limited bandwidth available on the wireless connection for
data feeds from third parties, and so the Exchange has opted to offer
only the Third Party Data, which are data feeds that are in high demand
from Users. The wireless network offered by the Exchange, although
constrained by bandwidth with respect to the number of feeds it can
carry, can be made available to an unlimited number of Users.
The Exchange proposes to offer the wireless connection to provide
Users with an alternative means of connectivity for Third Party Data.
Currently, Users can receive Third Party Data from wireless networks
offered by third party vendors.\9\ Users can also receive Third Party
Data through other methods, including, for example, from another User,
through a telecommunications provider, or over the internet protocol
(``IP'') network.\10\
---------------------------------------------------------------------------
\9\ Currently, at least four third party vendors offer Users
wireless network connections using wireless equipment installed on
towers and buildings near the data center.
\10\ The IP network is a local area network available in the
data center. See Securities Exchange Act Release No. 74220 (February
6, 2015), 80 FR 7894 (February 12, 2015) (SR-NYSEMKT-2015-08)
(notice of filing and immediate effectiveness of proposed rule
change to include IP network connections).
---------------------------------------------------------------------------
The wireless connection to the Third Party Data is expected to be
available no later than March 1, 2016. The Exchange will announce the
date that the wireless connection to the Third Party Data will be
available through a customer notice.
As is the case with all Exchange co-location arrangements, (i)
neither a User nor any of the User's customers would be permitted to
submit orders directly to the Exchange unless such User or customer is
a member organization, a Sponsored Participant or an agent thereof
(e.g., a service bureau providing order entry services); (ii) use of
the co-location services proposed herein would be completely voluntary
and available to all Users on a non-discriminatory basis; \11\ and
(iii) a User would only incur one charge for the particular co-location
service described herein, regardless of whether the User connects only
to the Exchange or to the Exchange and one or both of its
affiliates.\12\
---------------------------------------------------------------------------
\11\ As is currently the case, Users that receive co-location
services from the Exchange will not receive any means of access to
the Exchange's trading and execution systems that is separate from,
or superior to, that of other Users. In this regard, all orders sent
to the Exchange enter the Exchange's trading and execution systems
through the same order gateway, regardless of whether the sender is
co-located in the data center or not. In addition, co-located Users
do not receive any market data or data service product that is not
available to all Users, although Users that receive co-location
services normally would expect reduced latencies in sending orders
to, and receiving market data from, the Exchange.
\12\ See SR-NYSEMKT-2013-67, supra note 5 at 50471. The
Exchange's affiliates have also submitted substantially the same
proposed rule change to propose the changes described herein. See
SR-NYSE-2015-52 and SR-NYSEArca-2015-99.
---------------------------------------------------------------------------
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 Users 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 Sections 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 mechanisms 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.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed services are not designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers because the wireless connection for Third Party Data would
provide Users with an alternative means of connectivity for Third Party
Data. Users that do not opt to utilize the Exchange's proposed wireless
connections would still be able to obtain Third Party Data through
other methods, including, for example, from wireless networks offered
by third party vendors, another User, through a telecommunications
provider, or over the IP network. Users that opt to use wireless
connections for Third Party Data would not receive Third Party Data
that is not available to all Users, as all market participants that
contract with the relevant third party market for the Third Party Data
may receive it.
The Exchange believes that this removes impediments to, and
perfects the mechanisms of, a free and open market and a national
market system and, in general, protects investors and the public
interest because it would provide Users with choices with respect to
the form and optimal latency of the connectivity they use to receive
Third Party Data, allowing a User that opts to receive Third Party Data
to select the connectivity and number of ports that better suit its
needs, helping it tailor its data center operations to the requirements
of its business operations.
The Exchange also believes that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\15\ in particular, because
it provides for the equitable allocation of reasonable dues, fees, and
other charges among its member organizations, issuers and other persons
using its facilities and does not unfairly discriminate between
customers, issuers, brokers or dealers.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
Overall, the Exchange believes that the proposed change is
reasonable because the Exchange proposes to offer wireless connection
for Third Party Data described herein as a convenience to Users, but in
doing so would incur certain costs, including costs related to the data
center facility, hardware and equipment and costs related to personnel
required for initial installation and monitoring, support and
maintenance of such services. The costs associated with the wireless
connections are incrementally higher than fiber optics-based solutions
due to the expense of the wireless equipment, cost of installation and
testing and ongoing maintenance of the network.
The Exchange believes that the proposed pricing for the wireless
connection for Third Party Data is reasonable because it allows Users
to select the Third Party Data connectivity option and number of ports
that better suit their needs. The fees also reflect the benefit
received by Users in terms of lower latency over the fiber optics
option. The Exchange believes that the proposed waiver of the first
month's MRC is reasonable as it would allow Users to test the receipt
of the feed(s) for a month before incurring any monthly recurring fees
and may act as an incentive to Users to utilize the new service.
The Exchange believes that the proposed change is equitable and not
unfairly discriminatory because it will result in fees being charged
only to Users that voluntarily select to receive the corresponding
services and because those services will be available to all Users.
Furthermore, the Exchange believes that the services and fees proposed
herein are not unfairly discriminatory and are equitably allocated
because, in addition to the services being completely voluntary,
[[Page 70050]]
they are available to all Users on an equal basis (i.e., the same
products and services are available to all Users). All Users that
voluntarily select wireless connections and ports would be charged the
same amount for the same services and would have their first month MRC
for wireless connections waived.
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.
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,\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 because, in addition to the proposed services being
completely voluntary, they are available to all Users on an equal basis
(i.e. the same products and services are available to all Users).
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
The Exchange believes that allowing Users to receive Third Party
Data through a wireless connection will not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act because such access will satisfy User demand for
additional options for connectivity for Third Party Data. Currently,
Users can receive Third Party Data from wireless networks offered by
third party vendors. Based on the information available to it, the
Exchange believes that its proposed wireless connection would provide
data at the same or similar speed and at the same or similar cost as
the existing wireless networks. Accordingly, the proposed wireless
connection for Third Party Data would provide Users with an additional
wireless connectivity option, thereby enhancing competition.
The Exchange notes that the proposed wireless connection would
compete not just with other wireless connections, but also with fiber
optic networks, which may be more attractive to some Users as they are
more reliable and less susceptible to weather conditions. Users that do
not opt to utilize wireless connections would be able to obtain Third
Party Data through other methods, including, for example, from another
User, through a telecommunications provider, or over the IP network. In
this way, the proposed changes would enhance competition by helping
Users tailor their connectivity for Third Party Data to the needs of
their business operations by allowing them to select the form and
optimal latency of the connectivity they use to receive Third Party
Data that best suits their needs, helping them tailor their data center
operations to the requirements of their business operations.
The proposed wireless connection to the Third Party Data would
traverse wireless connections through a series of towers equipped with
wireless equipment, including a pole on the grounds of the data center.
The proposed wireless network would have exclusive rights to operate
wireless equipment on the data center pole. The Exchange will not sell
rights to third parties to operate wireless equipment on the pole, due
to space limitations, security concerns, and the interference that
would arise between equipment placed too closely together. In addition
to space issues, there are contractual restrictions on the use of the
roof that the Exchange has determined would not be met if it offered
space on the roof for third party wireless equipment. Moreover, access
to the pole or roof is not required for third parties to establish
wireless networks that can compete with the Exchange's proposed
service, as witnessed by the existing wireless networks currently
serving Users. Based on the information available to it, the Exchange
believes that its proposed wireless connection would provide data at
the same or similar speed, and at the same or similar cost, as its
proposed wireless connection, thereby enhancing competition.\17\
---------------------------------------------------------------------------
\17\ The Exchange notes that the distance of a wireless network
provider's wireless equipment from the User is only one factor in
determining overall latency. Other factors include the number of
repeaters in the route, the number of switches the data has to
travel through, and the millimeter wave and switch technology used.
---------------------------------------------------------------------------
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
review, and consider adjusting, its services and related fees and
credits to remain competitive with other exchanges. For the reasons
described above, the Exchange believes that the proposed rule change
reflects 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
Within 45 days of the date of publication of this notice in the
Federal Register or 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
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEMKT-2015-85 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEMKT-2015-85. 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 Web site (https://www.sec.gov/rules/sro.shtml). 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
[[Page 70051]]
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 Web site 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 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSEMKT-2015-85 and should be submitted on or before
December 3, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------
\18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-28686 Filed 11-10-15; 8:45 am]
BILLING CODE 8011-01-P