Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving 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 Exchange's Price List Related to These Services, 81609-81611 [2015-32817]

Download as PDF Federal Register / Vol. 80, No. 250 / Wednesday, December 30, 2015 / Notices which should protect investors and the public interest. (B) Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. Implementation of the proposed changes to the Exchange’s registration rules in coordination with the FINRA Amendments does not present any competitive issues, but rather is designed to provide less burdensome and more efficient regulatory compliance for members and enhance the ability of the Exchange to fairly and efficiently regulate members, which will further enhance competition. Additionally, the proposed rule change should not affect intramarket competition because all similarly situated representatives and principals will be required to complete the same qualification examinations and maintain the same registrations. mstockstill on DSK4VPTVN1PROD with NOTICES (C) Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. IV. Solicitation of Comments III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (A) Significantly affect the protection of investors or the public interest; (B) impose any significant burden on competition; and (C) by its terms, become operative for 30 days from the date on which it was filed or such shorter time as the Commission may designate it has become effective pursuant to Section 19(b)(3)(A) of the Act 10 and paragraph (f)(6) of Rule 19b– 4 thereunder,11 the Exchange has designated this rule filing as noncontroversial. The Exchange has given the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of 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 requested that the Commission waive the thirty-day operative delay so that the proposal may become operative as of January 4, 2016. 10 15 11 17 U.S.C. 78s(b)(3)(A). CFR 240.19b–4. VerDate Sep<11>2014 21:00 Dec 29, 2015 Jkt 238001 The Exchange states that waiving the thirty-day delay would allow the Exchange to eliminate the Proprietary Trader and Proprietary Trader Principal registration categories and adopt the Securities Trader and Securities Trader Principal registration categories at the same time as FINRA and the other national securities exchanges. The Commission believes that waiving the thirty day delay is consistent with the protection of investors and the public interest, as it will enable BYX to have the new requirements in effect at the same time as the other SROs . Therefore, the Commission hereby waives the thirty-day operative delay and designates the proposal operative as of January 4, 2016.12 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: (1) Necessary or appropriate in the public interest; (2) for the protection of investors; or (3) 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. Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal is consistent with the Act. Comments may be submitted by any of the following methods: 81609 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 such filing will also 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 No. SR–BYX–2015– 52 and should be submitted on or before January 20, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Brent J. Fields, Secretary. [FR Doc. 2015–32814 Filed 12–29–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION 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 No. SR– BYX–2015–52 on the subject line. Paper Comments • 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 No. SR–BYX–2015–52. 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/ 12 For purposes of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 [Release No. 34–76748; File No. SR–NYSE– 2015–52] Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving 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 Exchange’s Price List Related to These Services December 23, 2015. I. Introduction On October 23, 2015, New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) pursuant to Section 19(b)(1) 1 of the Securities Exchange Act 13 17 1 15 E:\FR\FM\30DEN1.SGM CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 30DEN1 81610 Federal Register / Vol. 80, No. 250 / Wednesday, December 30, 2015 / Notices of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 a proposed rule change to amend 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. The proposed rule change was published in the Federal Register on November 12, 2015.4 No comment letters were received in response to the Notice. This order approves the proposed rule change. II. Description of the Proposed Rule Change The Exchange proposes to change the co-location 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, the proposed rule change reflects changes to the Exchange’s Price List 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. As the Exchange notes, wireless connections involve beaming signals through the air between antennas that are within sight of one another.6 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.7 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.8 A 2 15 U.S.C. 78a. CFR 240.19b–4. 4 See Securities Exchange Act Release No. 76374 (November 5, 2015), 80 FR 70021 (November 12, 2015) (‘‘Notice’’). 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. 76008 (September 29, 2015), 80 FR 60190 (October 5, 2015) (SR–NYSE–2015–40). As specified in the Price List, a User that incurs colocation 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 NYSE MKT LLC and NYSE Arca, Inc. See Securities Exchange Act Release No. 70206 (August 15, 2013), 78 FR 51765 (August 21, 2013) (SR–NYSE–2013–59). 6 See Notice, supra note 4 at 70021. 7 See id. 8 The NASDAQ Stock Market LLC (‘‘NASDAQ’’) offers a similar wireless service. See Securities Exchange Act Release No. 68735 (January 25, 2013), mstockstill on DSK4VPTVN1PROD with NOTICES 3 17 VerDate Sep<11>2014 17:59 Dec 29, 2015 Jkt 238001 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.9 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 MRC for a wireless connection to each of BATS Pitch BZX Gig shaped data, DirectEdge EDGX Gig shaped data, and NASDAQ BX Totalview-ITCH data will be $6,000; the MRC for a wireless connection of NASDAQ Totalview-ITCH data will be $8,500; and the MRC for a wireless connection of NASDAQ Totalview-ITCH and BX TotalviewITCH data will be $12,000. 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 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,10 the Exchange proposes to make such additional ports available for a monthly fee per port of $3,000. The Exchange represents that there is limited bandwidth available on the wireless connection for data feeds from third parties. As a result, the Exchange has decided to offer as Third Party Data only the data feeds that are in high demand from Users. Although constrained by bandwidth with respect to the number of feeds it can carry, the 78 FR 6842 (January 31, 2013) (SR–NASDAQ–2012– 119) (approving a proposed rule change to establish a new optional wireless connectivity for co-located clients). 9 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. 10 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. PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 Exchange represents that the wireless network offered by the Exchange can be made available to an unlimited number of Users. The wireless connection would provide Users with an alternative means of connectivity for Third Party Data. Currently, Users can receive Third Party Data through other methods, including, for example, from another User, through a telecommunications provider, or over the internet protocol (‘‘IP’’) network.11 In addition, Users can receive Third Party Data from wireless networks offered by third party vendors. The Exchange represents that there are currently at least four third party vendors that offer Users wireless network connections using wireless equipment installed on towers and buildings near the data center. The Exchange states that its proposed wireless connection would traverse wireless connections through a series of towers equipped with wireless equipment, including a pole on the grounds of the data center.12 The Exchange states that access to such pole or the roof is not required for third parties to establish wireless networks that can compete with Exchange’s proposed service and, in particular, represents that based on the information available to it, the proposed wireless connection would provide data at the same or similar speed, and at the same or similar cost, as existing wireless networks, thereby enhancing competition.13 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. III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.14 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(4) of the Act,15 which requires that 11 The IP network is a local area network available in the data center. See Securities Exchange Act Release No. 74222 (February 6, 2015), 80 FR 7888 (February 12, 2015) (SR–NYSE–2015–05) (notice of filing and immediate effectiveness of proposed rule change to include IP network connections). 12 See Notice, supra note 4 at 70023. 13 See Notice, supra note 4 at 70022–23. 14 In approving this proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 15 15 U.S.C. 78f(b)(4). E:\FR\FM\30DEN1.SGM 30DEN1 mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 80, No. 250 / Wednesday, December 30, 2015 / Notices the rules of a national securities exchange provide for the equitable allocation of reasonable dues, fees and other charges among its members and issuers and other persons using its facilities, and with Section 6(b)(5) of the Act,16 which requires, among other things, that the rules of a national securities exchange be designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. In addition, the Commission finds that the proposed rule change is consistent with Section 6(b)(8) of the Act,17 which requires that the rules of the exchange not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Commission believes that the Exchange’s proposal to provide this additional connectivity option is consistent with the requirement of Section 6(b)(5) of the Act. The Commission believes that the proposal is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers because the Exchange makes wireless connectivity available to all Users on an equal basis. All Users that voluntarily select this service option will be charged the same amount for the same services, and there would be no differentiation among Users with regard to the fees charged for the service. Further, the Exchange represents that Users of the new wireless connection would not receive Third Party Data that is not available to all Users. In addition, the Exchange represents that Users that do not opt to utilize the Exchange’s wireless connections would still be able to obtain Third Party Data through other methods, such as from wireless networks offered by third party vendors, other Users, through telecommunications providers, or over the IP network. The Commission also believes that the proposed rule change is consistent with Section 6(b)(4) of the Act.18 All Users that voluntarily select this service option will be charged the same amount for the same services, and there would be no differentiation among Users with regard to the fees charged for the service. The Commission notes the Exchange’s representation that the fees associated with providing the wireless 16 15 U.S.C. 78f(b)(5). U.S.C. 78f(b)(8). 18 15 U.S.C. 78f(b)(4). 17:59 Dec 29, 2015 IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,20 that the proposed rule change (SR–NYSE–2015– 52) be, and it hereby is, approved. 19 See 17 15 VerDate Sep<11>2014 connections are reasonable because the Exchange will 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 Exchange states that 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, and that fees also reflect the benefit received by Users in terms of lower latency over the fiber optics option. In addition, 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 Commission also finds that consistent with Section 6(b)(8) of the Act the proposed rule change does not impose a burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange states that Users currently can receive Third Party Data from competing wireless networks offered by third party vendors, including at least four third party vendors that offer Users wireless network connections using wireless equipment installed on towers and buildings near the data center. The Exchange represents, based on the information available to it, that the proposed wireless connection would provide data at the same or similar speed, and at the same or similar cost, as existing wireless networks, thereby enhancing competition.19 The Exchange also 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. For these reasons, the Commission does not believe that the proposed rule change imposes a burden on competition not necessary or appropriate in furtherance of the purposes of the Act. supra notes 12 and 13 and accompanying For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 Brent J. Fields, Secretary. [FR Doc. 2015–32817 Filed 12–29–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. IC–31949] Notice of Applications for Deregistration Under Section 8(f) of the Investment Company Act of 1940 December 23, 2015. The following is a notice of applications for deregistration under section 8(f) of the Investment Company Act of 1940 for the month of December 2015. A copy of each application may be obtained via the Commission’s Web site by searching for the file number, or for an applicant using the Company name box, at https://www.sec.gov/search/ search.htm or by calling (202) 551– 8090. An order granting each application will be issued unless the SEC orders a hearing. Interested persons may request a hearing on any application by writing to the SEC’s Secretary at the address below and serving the relevant applicant with a copy of the request, personally or by mail. Hearing requests should be received by the SEC by 5:30 p.m. on January 19, 2016, and should be accompanied by proof of service on applicants, in the form of an affidavit or, for lawyers, a certificate of service. Pursuant to Rule 0–5 under the Act, hearing requests should state the nature of the writer’s interest, any facts bearing upon the desirability of a hearing on the matter, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by writing to the Commission’s Secretary. ADDRESSES: The Commission: Secretary, U.S. Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. FOR FURTHER INFORMATION CONTACT: HaeSung Lee, Attorney-Adviser, at (202) 551–7345 or Chief Counsel’s Office at (202) 551–6821; SEC, Division of Investment Management, Chief Counsel’s Office, 100 F Street NE., Washington, DC 20549–8010. College and University Facility Loan Trust One [File No. 811–05291] Summary: Applicant, a closed-end investment company, seeks an order text. 20 15 Jkt 238001 PO 00000 U.S.C. 78s(b)(2). Frm 00105 Fmt 4703 21 17 Sfmt 4703 81611 E:\FR\FM\30DEN1.SGM CFR 200.30–3(a)(12). 30DEN1

Agencies

[Federal Register Volume 80, Number 250 (Wednesday, December 30, 2015)]
[Notices]
[Pages 81609-81611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32817]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76748; File No. SR-NYSE-2015-52]


Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Approving 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 Exchange's Price List Related to These Services

December 23, 2015.

I. Introduction

    On October 23, 2015, New York Stock Exchange LLC (``NYSE'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') pursuant to Section 19(b)(1) \1\ of the Securities 
Exchange Act

[[Page 81610]]

of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ a proposed rule 
change to amend 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. The proposed rule 
change was published in the Federal Register on November 12, 2015.\4\ 
No comment letters were received in response to the Notice. This order 
approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
    \4\ See Securities Exchange Act Release No. 76374 (November 5, 
2015), 80 FR 70021 (November 12, 2015) (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    The Exchange proposes to change the co-location 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, the proposed rule change reflects changes 
to the Exchange's Price List related to these co-location services.
---------------------------------------------------------------------------

    \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. 76008 (September 29, 2015), 80 FR 60190 
(October 5, 2015) (SR-NYSE-2015-40). As specified in the Price List, 
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 NYSE MKT LLC and NYSE Arca, Inc. See Securities Exchange 
Act Release No. 70206 (August 15, 2013), 78 FR 51765 (August 21, 
2013) (SR-NYSE-2013-59).
---------------------------------------------------------------------------

    The Exchange proposes to offer the wireless connection to provide 
Users with an alternative means of connectivity for Third Party Data. 
As the Exchange notes, wireless connections involve beaming signals 
through the air between antennas that are within sight of one 
another.\6\ 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.\7\
---------------------------------------------------------------------------

    \6\ See Notice, supra note 4 at 70021.
    \7\ See id.
---------------------------------------------------------------------------

    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.\8\ 
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.\9\
---------------------------------------------------------------------------

    \8\ 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 co-located clients).
    \9\ 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 MRC for a wireless connection to each of BATS 
Pitch BZX Gig shaped data, DirectEdge EDGX Gig shaped data, and NASDAQ 
BX Totalview-ITCH data will be $6,000; the MRC for a wireless 
connection of NASDAQ Totalview-ITCH data will be $8,500; and the MRC 
for a wireless connection of NASDAQ Totalview-ITCH and BX Totalview-
ITCH data will be $12,000. 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 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,\10\ the Exchange proposes to make such additional 
ports available for a monthly fee per port of $3,000.
---------------------------------------------------------------------------

    \10\ 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 represents that there is limited bandwidth available 
on the wireless connection for data feeds from third parties. As a 
result, the Exchange has decided to offer as Third Party Data only the 
data feeds that are in high demand from Users. Although constrained by 
bandwidth with respect to the number of feeds it can carry, the 
Exchange represents that the wireless network offered by the Exchange 
can be made available to an unlimited number of Users.
    The wireless connection would provide Users with an alternative 
means of connectivity for Third Party Data. Currently, Users can 
receive Third Party Data through other methods, including, for example, 
from another User, through a telecommunications provider, or over the 
internet protocol (``IP'') network.\11\ In addition, Users can receive 
Third Party Data from wireless networks offered by third party vendors. 
The Exchange represents that there are currently at least four third 
party vendors that offer Users wireless network connections using 
wireless equipment installed on towers and buildings near the data 
center. The Exchange states that its proposed wireless connection would 
traverse wireless connections through a series of towers equipped with 
wireless equipment, including a pole on the grounds of the data 
center.\12\ The Exchange states that access to such pole or the roof is 
not required for third parties to establish wireless networks that can 
compete with Exchange's proposed service and, in particular, represents 
that based on the information available to it, the proposed wireless 
connection would provide data at the same or similar speed, and at the 
same or similar cost, as existing wireless networks, thereby enhancing 
competition.\13\
---------------------------------------------------------------------------

    \11\ The IP network is a local area network available in the 
data center. See Securities Exchange Act Release No. 74222 (February 
6, 2015), 80 FR 7888 (February 12, 2015) (SR-NYSE-2015-05) (notice 
of filing and immediate effectiveness of proposed rule change to 
include IP network connections).
    \12\ See Notice, supra note 4 at 70023.
    \13\ See Notice, supra note 4 at 70022-23.
---------------------------------------------------------------------------

    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.

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities 
exchange.\14\ In particular, the Commission finds that the proposed 
rule change is consistent with Section 6(b)(4) of the Act,\15\ which 
requires that

[[Page 81611]]

the rules of a national securities exchange provide for the equitable 
allocation of reasonable dues, fees and other charges among its members 
and issuers and other persons using its facilities, and with Section 
6(b)(5) of the Act,\16\ which requires, among other things, that the 
rules of a national securities exchange be designed to promote just and 
equitable principles of trade, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system and, 
in general, to protect investors and the public interest, and not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. In addition, the Commission finds that the 
proposed rule change is consistent with Section 6(b)(8) of the Act,\17\ 
which requires that the rules of the exchange not impose any burden on 
competition not necessary or appropriate in furtherance of the purposes 
of the Act.
---------------------------------------------------------------------------

    \14\ In approving this proposed rule change, the Commission 
notes that it has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
    \15\ 15 U.S.C. 78f(b)(4).
    \16\ 15 U.S.C. 78f(b)(5).
    \17\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

    The Commission believes that the Exchange's proposal to provide 
this additional connectivity option is consistent with the requirement 
of Section 6(b)(5) of the Act. The Commission believes that the 
proposal is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers because the Exchange makes 
wireless connectivity available to all Users on an equal basis. All 
Users that voluntarily select this service option will be charged the 
same amount for the same services, and there would be no 
differentiation among Users with regard to the fees charged for the 
service. Further, the Exchange represents that Users of the new 
wireless connection would not receive Third Party Data that is not 
available to all Users. In addition, the Exchange represents that Users 
that do not opt to utilize the Exchange's wireless connections would 
still be able to obtain Third Party Data through other methods, such as 
from wireless networks offered by third party vendors, other Users, 
through telecommunications providers, or over the IP network.
    The Commission also believes that the proposed rule change is 
consistent with Section 6(b)(4) of the Act.\18\ All Users that 
voluntarily select this service option will be charged the same amount 
for the same services, and there would be no differentiation among 
Users with regard to the fees charged for the service. The Commission 
notes the Exchange's representation that the fees associated with 
providing the wireless connections are reasonable because the Exchange 
will 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 Exchange states that 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, and that fees also reflect the benefit received by Users 
in terms of lower latency over the fiber optics option. In addition, 
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.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Commission also finds that consistent with Section 6(b)(8) of 
the Act the proposed rule change does not impose a burden on 
competition not necessary or appropriate in furtherance of the purposes 
of the Act. The Exchange states that Users currently can receive Third 
Party Data from competing wireless networks offered by third party 
vendors, including at least four third party vendors that offer Users 
wireless network connections using wireless equipment installed on 
towers and buildings near the data center. The Exchange represents, 
based on the information available to it, that the proposed wireless 
connection would provide data at the same or similar speed, and at the 
same or similar cost, as existing wireless networks, thereby enhancing 
competition.\19\ The Exchange also 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. For these reasons, the Commission does not believe that the 
proposed rule change imposes a burden on competition not necessary or 
appropriate in furtherance of the purposes of the Act.
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    \19\ See supra notes 12 and 13 and accompanying text.
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\20\ that the proposed rule change (SR-NYSE-2015-52) be, and it 
hereby is, approved.
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    \20\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-32817 Filed 12-29-15; 8:45 am]
BILLING CODE 8011-01-P
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