Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend the NYSE American Equities Price List and the NYSE American Options Fee Schedule Related to Co-Location Services in Connection With the Re-Launch of Trading on NYSE National, Inc. and Proposed NYSE National Co-Location Services, 28041-28045 [2018-12851]
Download as PDF
Federal Register / Vol. 83, No. 116 / Friday, June 15, 2018 / Notices
offerings and conform the text of the
offerings. The Exchange’s proposal to
correct an inadvertent error within
Chapter XV, Section 3 will clarify the
manner in which OTTO Ports are billed
today on NOM. All OTTO Ports will
continue to be billed in a uniform
manner.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 8 and Rule 19b–4(f)(6)
thereunder.9
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii),11 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
upon filing. The Exchange states that
such waiver will allow it to update its
rules to provide more detail regarding
its data offerings and properly reflect
the manner in which an OTTO Port is
currently billed. The Exchange believes
this will further the protection of
investors and the public interest
because it will provide greater
transparency as to the data offerings
available to members and avoid
confusion by correcting an error on its
fee schedule. For this reason, the
Commission believes that waiving the
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice the Exchange’s 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 satisfied this requirement.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
sradovich on DSK3GMQ082PROD with NOTICES
9 17
VerDate Sep<11>2014
17:11 Jun 14, 2018
Jkt 244001
30-day operative delay is consistent
with the protection of investors and the
public interest and, therefore, the
Commission designates the proposed
rule change to be operative upon
filing.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 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:
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–
NASDAQ–2018–040 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
Number SR–NASDAQ–2018–040. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (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 website viewing and
12 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).
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28041
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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NASDAQ–2018–040 and
should be submitted on or before July 6,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–12854 Filed 6–14–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83402; File No. SR–
NYSEAMER–2018–23]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change To Amend the NYSE American
Equities Price List and the NYSE
American Options Fee Schedule
Related to Co-Location Services in
Connection With the Re-Launch of
Trading on NYSE National, Inc. and
Proposed NYSE National Co-Location
Services
June 11, 2018.
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 May 30,
2018, NYSE American LLC (the
‘‘Exchange’’ or ‘‘NYSE American’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
13 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
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Federal Register / Vol. 83, No. 116 / Friday, June 15, 2018 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
NYSE American Equities Price List
(‘‘Price List’’) and the NYSE American
Options Fee Schedule (‘‘Fee Schedule’’)
related to co-location services in
connection with the re-launch of trading
on NYSE National, Inc. (‘‘NYSE
National’’) and proposed NYSE National
co-location services. The Exchange also
proposes to make a non-substantive
change to remove obsolete text from the
Price List and Fee Schedule. The
proposed change is available on the
Exchange’s website 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.
sradovich on DSK3GMQ082PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
4 The Exchange initially filed rule changes
relating to its co-location services with the
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.
17:11 Jun 14, 2018
Jkt 244001
General Note 1
General Note 1 of the Price List and
Fee Schedule provides that a User 10
that incurs co-location fees for a
particular co-location service shall not
be subject to co-location fees for the
same co-location service charged by the
other Affiliate SROs.11 The Exchange
proposes to add NYSE National to
General Note 1 to the Price List, as
follows (additions underlined, deletions
in brackets):
A User that incurs co-location fees for a
particular co-location service pursuant to the
1. Purpose
The Exchange proposes to amend the
Price List and Fee Schedule related to
co-location 4 services in connection with
the re-launch of trading on NYSE
National and proposed NYSE National
co-location services. Specifically, the
Exchange proposes to make changes to
General Note 1 and General Note 4 of
the Price List and Fee Schedule to add
references to NYSE National. The
Exchange also proposes to make a nonsubstantive change to remove obsolete
text from the Price List and Fee
Schedule, with respect to the wireless
connection to third party data provided
by the Toronto Stock Exchange (‘‘TSX’’).
On January 31, 2017, Intercontinental
Exchange, Inc. (‘‘ICE’’), the indirect
VerDate Sep<11>2014
parent of the Exchange, acquired all of
the outstanding capital stock of NYSE
National through its wholly-owned
subsidiary NYSE Group.5 As a result,
NYSE National is an affiliate of the
Exchange. On February 1, 2017, NYSE
National ceased trading operations.6
NYSE National filed proposed rule
changes to re-launch trading
operations.7 NYSE National has stated
that it anticipates re-launching trading
operations in the second quarter of
2018. In connection with the anticipated
re-launch of NYSE National’s trading
operations, NYSE National has filed a
proposed rule change to offer the same
co-location services and fees offered by
the Exchange, the New York Stock
Exchange LLC (‘‘NYSE LLC’’) and NYSE
Arca, Inc. (‘‘NYSE Arca’’ and, together
with NYSE LLC, the ‘‘Affiliate SROs’’),
which are its affiliates.8
The Exchange requests that the
proposed rule change become both
effective and operative immediately
upon filing.9
5 See Securities Exchange Act Release No. 79902
(January 30, 2017), 82 FR 9258 (February 3, 2017)
(SR–NSX–2016–16). Prior to its acquisition, NYSE
National was named ‘‘National Stock Exchange,
Inc.’’
6 See Securities Exchange Act Release No. 80018
(February 10, 2017), 82 FR 10947 (February 16,
2017) (SR–NSX–2017–04).
7 See Securities Exchange Act Release No. 83289
(May 17, 2018) (notice of filing of Amendment No.
1 and order granting accelerated approval of a
proposed rule change, as amended by Amendment
No. 1, to support the re-launch of NYSE National,
Inc. on the Pillar Trading Platform) (‘‘NYSE
National Trading Rules Approval’’). See also
Securities Exchange Act Release No. 82819 (March
7, 2018), 83 FR 11098 (March 13, 2018) (SR–
NYSENat–2018–02).
8 See SR–NYSENat–2018–07 (May 18, 2018).
9 See NYSE National Trading Rules Approval,
supra note 7.
10 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).
11 See Securities Exchange Act Release No. 70176
(August 13, 2013), 78 FR 50471 (August 19, 2013)
(SR–NYSEMKT–2013–67). Some Users do not
connect to the Exchange or the Affiliate SROs, but
rather provide services to other Users co-located at
the data center. Id.
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Sfmt 4703
NYSE American Equities Price List shall not
be subject to co-location fees for the same colocation service charged pursuant to the
NYSE American Options Fee Schedule or by
the Exchange’s affiliates New York Stock
Exchange LLC (NYSE), [and] NYSE Arca, Inc.
(NYSE Arca) and NYSE National, Inc. (NYSE
National).
The Exchange proposes to add NYSE
National to General Note 1 to the Fee
Schedule, as follows (additions
underlined, deletions in brackets):
A User that incurs co-location fees for a
particular co-location service pursuant to this
Fee Schedule shall not be subject to colocation fees for the same co-location service
charged pursuant to the NYSE American
Equities Price List or by the Exchange’s
affiliates New York Stock Exchange LLC
(NYSE), [and] NYSE Arca, Inc. (NYSE Arca)
and NYSE National, Inc. (NYSE National).
By including the proposed reference
to NYSE National, General Note 1
would provide that the fees a User pays
for co-location services would not
depend on whether the User connects to
none, one, some, or all of the Exchange,
the Affiliate SROs, and NYSE National.
General Note 4
General Note 4 of the Price List and
Fee Schedule provides that, when a
User purchases access to the Liquidity
Center Network (‘‘LCN’’) or the internet
protocol (‘‘IP’’) network, the two local
area networks available in the data
center,12 a User receives (a) the ability
to access the trading and execution
systems of the Exchange and Affiliate
SROs, and (b) connectivity to any of the
listed data products (‘‘Included Data
Products’’) that it selects.
The Exchange proposes to add NYSE
National to the list of trading and
execution system providers in the first
sentence of the first paragraph, thereby
expanding the definition of ‘‘Exchange
Systems’’ which Users may access to
include NYSE National. It also proposes
to add NYSE National to the lists of
affiliated entities in the first, third and
fourth sentences. The proposed changes
are as follows (additions underlined,
deletions in brackets):
When a User purchases access to the LCN
or IP network, it receives the ability to access
the trading and execution systems of the
NYSE, NYSE American, [and] NYSE Arca
and NYSE National (Exchange Systems),
subject, in each case, to authorization by the
NYSE, NYSE American, [or] NYSE Arca or
NYSE National, as applicable. Such access
includes access to the customer gateways that
provide for order entry, order receipt (i.e.
confirmation that an order has been
received), receipt of drop copies and trade
reporting (i.e. whether a trade is executed or
12 See Securities Exchange Act Release No. 79728
(January 4, 2017), 82 FR 3035 (January 10, 2017)
(SR–NYSEMKT–2016–126).
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Federal Register / Vol. 83, No. 116 / Friday, June 15, 2018 / Notices
cancelled), as well as for sending information
to shared data services for clearing and
settlement. A User can change the access it
receives at any time, subject to authorization
by NYSE, NYSE American, [or] NYSE Arca,
or NYSE National. NYSE, NYSE American,
[and ]NYSE Arca and NYSE National also
offer access to Exchange Systems to their
members, such that a User does not have to
purchase access to the LCN or IP network to
obtain access to Exchange Systems.
In addition, the Exchange proposes to
add NYSE National to the table of
Included Data Products set forth in
General Note 4.
Toronto Stock Exchange
The Exchange offers Users the option
to receive certain market data feeds from
third party markets through a wireless
connection. The description of the
charge for the TSX wireless connection
in the Price List and Fee Schedule states
that ‘‘[c]ustomers with an existing
wireless connection to TSX at the time
the Exchange makes the service
available will not be subject to an initial
charge or receive 30-day testing period.’’
Because the wireless connection to the
TSX has become effective, the statement
is obsolete. Accordingly, the Exchange
proposes to delete the statement from
the Price List and Fee Schedule.
General
sradovich on DSK3GMQ082PROD with NOTICES
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; 13 and (iii) a User would only
incur one charge for the particular colocation service described herein,
regardless of whether the User connects
only to the Exchange or to the Exchange,
one or both of its Affiliate SROs, or
NYSE National.14
13 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.
14 See 78 FR 50471, supra note 11, at 50471. The
Affiliate SROs have also submitted substantially the
same proposed rule change to propose the changes
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17:11 Jun 14, 2018
Jkt 244001
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
proposal is consistent with Section 6(b)
of the Act,15 in general, and furthers the
objectives of Section 6(b)(5) of the Act,16
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 change would remove
impediments to, and perfect the
mechanisms of, a free and open market
and a national market system and, in
general, protect investors and the public
interest because the amendments would
update General Note 1 to reflect NYSE
National’s provision of co-location
services. By including the proposed
reference to NYSE National, General
Note 1 would provide that the fees a
User pays for co-location services would
not depend on whether the User
connects to none, one, some, or all of
the Exchange, the Affiliate SROs, and
NYSE National. For example, to charge
one User three times for a cage because
that User connects to the Exchange,
NYSE National, and an Affiliate SRO,
when another User that buys the same
size cage and only connects to the
Exchange only pays once, would not
promote just and equitable principles of
trade. The Exchange also believes that
the proposed amendments to General
Note 1 are not designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers because
charging a User for co-location services
based on how many markets to which
a User connects could result in the
Exchange, NYSE National and the
Affiliate SROs receiving the proceeds
described herein. See SR–NYSE–2018–23 and SR–
NYSEArca–2018–36.
15 15 U.S.C. 78f(b).
16 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
28043
from multiple fees despite only
providing a service once.
The Exchange believes that the
proposed amendments would remove
impediments to, and perfect the
mechanisms of, a free and open market
and a national market system and, in
general, protect investors and the public
interest because the amendments would
update General Note 4 to reflect NYSE
National’s provision of co-location
services. By expanding the definition of
‘‘Exchange Systems’’ to include the
NYSE National trading and execution
system, incorporating references to
NYSE National, and adding NYSE
National to the list of Included Data
Products, the Exchange would provide
market participants with clarity as to
what access and connectivity a User
receives when it purchases access to the
LCN or IP network, thereby making the
description more accessible and
transparent.
Further, the Exchange believes that
revising General Note 4 to provide a
more detailed description of the access
and connectivity to NYSE National that
Users would receive with their purchase
of access to the LCN or IP network
would promote just and equitable
principles of trade and remove
impediments to, and perfect the
mechanisms of, a free and open market
and a national market system as it
would make clear that all Users that
voluntarily select to access the LCN or
IP network would receive the same
access to the NYSE National trading and
execution systems and connectivity to
NYSE National data and would not be
subject to a charge above and beyond
the fee paid for the relevant LCN or IP
network access. In addition, a User
would not be required to use any of its
bandwidth to access the NYSE National
trading and execution system or connect
to NYSE National data unless it wishes
to do so. A User only receives the access
to Exchange Systems and connectivity
to Included Data Products that it selects,
and a User can change such access or
connectivity it receives at any time,
subject to authorization from the data
provider or relevant Exchange or
Affiliate SRO.
The Exchange believes that the nonsubstantive change to remove obsolete
text with respect to the wireless
connection to TSX data would remove
impediments to, and perfect the
mechanisms of, a free and open market
and a national market system and, in
general, protect investors and the public
interest because the amendment would
clarify Exchange rules and alleviate any
possible market participant confusion
caused by the obsolete reference.
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Federal Register / Vol. 83, No. 116 / Friday, June 15, 2018 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
The Exchange also believes that the
proposed fee change is consistent with
Section 6(b)(4) of the Act,17 in
particular, because it provides for the
equitable allocation of reasonable dues,
fees, and other charges among its
members, issuers and other persons
using its facilities and does not unfairly
discriminate between customers,
issuers, brokers or dealers.
The Exchange believes that the
proposed change provides for the
equitable allocation of reasonable dues,
fees, and other charges among its
members, issuers and other persons
using its facilities and does not unfairly
discriminate between customers,
issuers, brokers or dealers, because the
change would result in the Exchange
offering co-location services related to
access and connectivity to NYSE
National, an affiliate of the Exchange, on
the same terms and in the same manner
as it offers access and connectivity to
the Exchange and the Affiliate SROs. By
adding NYSE National to General Notes
1 and 4, the proposed change would
ensure that the fees a User pays for colocation services would not depend on
whether the User connects to none, one
or more of the Exchange, the SRO
Affiliates and NYSE National. For
example, a User that connects to the
Exchange, NYSE National, and an
Affiliate SRO, and another User that
only connects to the Exchange, would
both receive the same services for the
same fee, including the same access and
connectivity with their purchase of
access to the LCN or IP network.
The Exchange believes that the
proposed non-substantive change to
remove obsolete text with respect to the
wireless connection to TSX data would
be reasonable because the change would
have no impact on pricing. Rather, the
change would remove obsolete
information from the description of the
pricing for the service, alleviating
possible market participant confusion.
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,18 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 use of co-location
services being completely voluntary,
they are available to all Users on an
equal basis (i.e., the same range of
17 15
18 15
17:11 Jun 14, 2018
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
U.S.C. 78f(b)(4).
U.S.C. 78f(b)(8).
VerDate Sep<11>2014
products and services are available to all
Users).
The Exchange believes that the
proposed change would not impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because the
change would result in the Exchange
offering co-location services related to
access and connectivity to NYSE
National, an affiliate of the Exchange, on
the same terms and in the same manner
as it offers access and connectivity to
the Exchange and the Affiliate SROs. By
adding NYSE National to General Notes
1 and 4, the proposed change would
ensure that the fees a User pays for colocation services would not depend on
whether the User connects only to none,
one or more of the Exchange, the SRO
Affiliates and NYSE National. Further,
the Exchange believes that revising
General Note 4 to provide a more
detailed description of the access and
connectivity to NYSE National that
Users would receive with their purchase
of access to the LCN or IP network
would make clear that all Users that
voluntarily select to access the LCN or
IP network would receive the same
access to the NYSE National trading and
execution systems and connectivity to
NYSE National data and would not be
subject to a charge above and beyond
the fee paid for the relevant LCN or IP
network access.
In addition, a User would not be
required to use any of its bandwidth to
access the NYSE National trading and
execution system or connect to NYSE
National data unless it wishes to do so.
The Exchange believes that the nonsubstantive change to remove obsolete
text with respect to the wireless
connection to TSX data would not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act
because it would have no impact on
pricing or existing services. Rather, the
change would remove obsolete
information from the description of the
pricing for the service, alleviating
possible market participant confusion.
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Sfmt 4703
19(b)(3)(A)(iii) of the Act 19 and Rule
19b–4(f)(6) thereunder.20 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.21
A proposed rule change filed under
Rule 19b–4(f)(6) 22 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),23 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange requests that the Commission
waive the 30-day operative delay so that
the proposed rule changes may become
operative immediately upon filing. The
Exchange believes that waiver of the
operative delay is consistent with the
protection of investors and the public
interest because it would allow the
Exchange to offer co-location services
related to access and connectivity to
NYSE National to coincide with the
relaunch of the NYSE National and its
proposed co-location services. The
Exchange also notes that waiver would
alleviate the possibility of confusion
that could be caused by inconsistencies
between the Exchange’s Price List and
NYSE National co-location services that
are to be included in NYSE National’s
price list. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest as it
would allow the Exchange to offer colocations services in the form of access
and connectivity to NYSE National
without undue delay. Accordingly, the
Commission waives the 30-day
operative delay and designates the
proposed rule change operative upon
filing.24
19 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
21 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires the Exchange to give 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
satisfied this requirement.
22 17 CFR 240.19b–4(f)(6).
23 17 CFR 240.19b–4(f)(6)(iii).
24 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
20 17
E:\FR\FM\15JNN1.SGM
15JNN1
Federal Register / Vol. 83, No. 116 / Friday, June 15, 2018 / Notices
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 25 of the Act to
determine whether the proposed rule
change 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:
sradovich on DSK3GMQ082PROD with NOTICES
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–
NYSEAMER–2018–23 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–NYSEAMER–2018–23. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (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 website 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSEAMER–2018–23 and
should be submitted on or before July 6,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–12851 Filed 6–14–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83407; File No. SR–FINRA–
2018–024]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Security
Futures Risk Disclosure Statement To
Reflect the T+2 Settlement Cycle,
Incorporate Prior Supplements, and
Make Other Non-Substantive Changes
June 11, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 7,
2018, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared by FINRA. FINRA has
designated the proposed rule change as
constituting a non-controversial rule
change under paragraph (f)(6) of Rule
19b–4 under the Act,3 which renders
the proposal effective upon receipt of
this filing by the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
26 17
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
25 15 U.S.C. 78s(b)(2)(B).
VerDate Sep<11>2014
17:11 Jun 14, 2018
Jkt 244001
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
28045
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to update the
2002 security futures risk disclosure
statement (‘‘2002 Statement’’ or
‘‘Statement’’) 4 that would incorporate
prior supplements pertaining to
Sections 5.2 (Settlement by Physical
Delivery) and 8.1 (Corporate Events),5
make a technical change to Section 5.2
to reflect that the normal clearance and
settlement cycle for securities
transaction is now two business days,
amend Section 6.1 (Protections for
Securities Accounts) to reflect the
current address for the Securities
Investor Protection Corporation
(‘‘SIPC’’), and make other nonsubstantive and technical changes.
FINRA is not proposing any textual
changes to FINRA rules.
The proposed updated Statement is
attached as Exhibit 3a. The proposed
supplement pertaining to changes to the
specified paragraphs under Sections 5.2
and 6.1, and the proposed nonsubstantive and technical changes to the
other Sections as described herein are
attached as Exhibit 3b.
The text [sic] of the proposed rule
change is available on FINRA’s website
at https://www.finra.org, at the principal
office of FINRA 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,
FINRA 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 these statements
may be examined at the places specified
in Item IV below. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Rule 2370(b)(11)(A) requires a
member to deliver the current security
futures risk disclosure statement to each
customer at or prior to the time such
customer’s account is approved for
4 See
infra note 8.
infra notes 10 and 11. The Commission
notes that the exhibits referenced are exhibits to the
proposed rule change, not to this Notice.
5 See
E:\FR\FM\15JNN1.SGM
15JNN1
Agencies
[Federal Register Volume 83, Number 116 (Friday, June 15, 2018)]
[Notices]
[Pages 28041-28045]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12851]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83402; File No. SR-NYSEAMER-2018-23]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change To Amend the NYSE
American Equities Price List and the NYSE American Options Fee Schedule
Related to Co-Location Services in Connection With the Re-Launch of
Trading on NYSE National, Inc. and Proposed NYSE National Co-Location
Services
June 11, 2018.
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 May 30, 2018, NYSE American LLC (the ``Exchange'' or
``NYSE American'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
[[Page 28042]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the NYSE American Equities Price
List (``Price List'') and the NYSE American Options Fee Schedule (``Fee
Schedule'') related to co-location services in connection with the re-
launch of trading on NYSE National, Inc. (``NYSE National'') and
proposed NYSE National co-location services. The Exchange also proposes
to make a non-substantive change to remove obsolete text from the Price
List and Fee Schedule. The proposed change is available on the
Exchange's website 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Price List and Fee Schedule
related to co-location \4\ services in connection with the re-launch of
trading on NYSE National and proposed NYSE National co-location
services. Specifically, the Exchange proposes to make changes to
General Note 1 and General Note 4 of the Price List and Fee Schedule to
add references to NYSE National. The Exchange also proposes to make a
non-substantive change to remove obsolete text from the Price List and
Fee Schedule, with respect to the wireless connection to third party
data provided by the Toronto Stock Exchange (``TSX'').
---------------------------------------------------------------------------
\4\ The Exchange initially filed rule changes relating to its
co-location services with the 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.
---------------------------------------------------------------------------
On January 31, 2017, Intercontinental Exchange, Inc. (``ICE''), the
indirect parent of the Exchange, acquired all of the outstanding
capital stock of NYSE National through its wholly-owned subsidiary NYSE
Group.\5\ As a result, NYSE National is an affiliate of the Exchange.
On February 1, 2017, NYSE National ceased trading operations.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 79902 (January 30,
2017), 82 FR 9258 (February 3, 2017) (SR-NSX-2016-16). Prior to its
acquisition, NYSE National was named ``National Stock Exchange,
Inc.''
\6\ See Securities Exchange Act Release No. 80018 (February 10,
2017), 82 FR 10947 (February 16, 2017) (SR-NSX-2017-04).
---------------------------------------------------------------------------
NYSE National filed proposed rule changes to re-launch trading
operations.\7\ NYSE National has stated that it anticipates re-
launching trading operations in the second quarter of 2018. In
connection with the anticipated re-launch of NYSE National's trading
operations, NYSE National has filed a proposed rule change to offer the
same co-location services and fees offered by the Exchange, the New
York Stock Exchange LLC (``NYSE LLC'') and NYSE Arca, Inc. (``NYSE
Arca'' and, together with NYSE LLC, the ``Affiliate SROs''), which are
its affiliates.\8\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 83289 (May 17, 2018)
(notice of filing of Amendment No. 1 and order granting accelerated
approval of a proposed rule change, as amended by Amendment No. 1,
to support the re-launch of NYSE National, Inc. on the Pillar
Trading Platform) (``NYSE National Trading Rules Approval''). See
also Securities Exchange Act Release No. 82819 (March 7, 2018), 83
FR 11098 (March 13, 2018) (SR-NYSENat-2018-02).
\8\ See SR-NYSENat-2018-07 (May 18, 2018).
---------------------------------------------------------------------------
The Exchange requests that the proposed rule change become both
effective and operative immediately upon filing.\9\
---------------------------------------------------------------------------
\9\ See NYSE National Trading Rules Approval, supra note 7.
---------------------------------------------------------------------------
General Note 1
General Note 1 of the Price List and Fee Schedule provides that a
User \10\ that incurs co-location fees for a particular co-location
service shall not be subject to co-location fees for the same co-
location service charged by the other Affiliate SROs.\11\ The Exchange
proposes to add NYSE National to General Note 1 to the Price List, as
follows (additions underlined, deletions in brackets):
---------------------------------------------------------------------------
\10\ 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).
\11\ See Securities Exchange Act Release No. 70176 (August 13,
2013), 78 FR 50471 (August 19, 2013) (SR-NYSEMKT-2013-67). Some
Users do not connect to the Exchange or the Affiliate SROs, but
rather provide services to other Users co-located at the data
center. Id.
A User that incurs co-location fees for a particular co-location
service pursuant to the NYSE American Equities Price List shall not
be subject to co-location fees for the same co-location service
charged pursuant to the NYSE American Options Fee Schedule or by the
Exchange's affiliates New York Stock Exchange LLC (NYSE), [and] NYSE
---------------------------------------------------------------------------
Arca, Inc. (NYSE Arca) and NYSE National, Inc. (NYSE National).
The Exchange proposes to add NYSE National to General Note 1 to the
Fee Schedule, as follows (additions underlined, deletions in brackets):
A User that incurs co-location fees for a particular co-location
service pursuant to this Fee Schedule shall not be subject to co-
location fees for the same co-location service charged pursuant to
the NYSE American Equities Price List or by the Exchange's
affiliates New York Stock Exchange LLC (NYSE), [and] NYSE Arca, Inc.
(NYSE Arca) and NYSE National, Inc. (NYSE National).
By including the proposed reference to NYSE National, General Note
1 would provide that the fees a User pays for co-location services
would not depend on whether the User connects to none, one, some, or
all of the Exchange, the Affiliate SROs, and NYSE National.
General Note 4
General Note 4 of the Price List and Fee Schedule provides that,
when a User purchases access to the Liquidity Center Network (``LCN'')
or the internet protocol (``IP'') network, the two local area networks
available in the data center,\12\ a User receives (a) the ability to
access the trading and execution systems of the Exchange and Affiliate
SROs, and (b) connectivity to any of the listed data products
(``Included Data Products'') that it selects.
---------------------------------------------------------------------------
\12\ See Securities Exchange Act Release No. 79728 (January 4,
2017), 82 FR 3035 (January 10, 2017) (SR-NYSEMKT-2016-126).
---------------------------------------------------------------------------
The Exchange proposes to add NYSE National to the list of trading
and execution system providers in the first sentence of the first
paragraph, thereby expanding the definition of ``Exchange Systems''
which Users may access to include NYSE National. It also proposes to
add NYSE National to the lists of affiliated entities in the first,
third and fourth sentences. The proposed changes are as follows
(additions underlined, deletions in brackets):
When a User purchases access to the LCN or IP network, it
receives the ability to access the trading and execution systems of
the NYSE, NYSE American, [and] NYSE Arca and NYSE National (Exchange
Systems), subject, in each case, to authorization by the NYSE, NYSE
American, [or] NYSE Arca or NYSE National, as applicable. Such
access includes access to the customer gateways that provide for
order entry, order receipt (i.e. confirmation that an order has been
received), receipt of drop copies and trade reporting (i.e. whether
a trade is executed or
[[Page 28043]]
cancelled), as well as for sending information to shared data
services for clearing and settlement. A User can change the access
it receives at any time, subject to authorization by NYSE, NYSE
American, [or] NYSE Arca, or NYSE National. NYSE, NYSE American,
[and ]NYSE Arca and NYSE National also offer access to Exchange
Systems to their members, such that a User does not have to purchase
access to the LCN or IP network to obtain access to Exchange
Systems.
In addition, the Exchange proposes to add NYSE National to the
table of Included Data Products set forth in General Note 4.
Toronto Stock Exchange
The Exchange offers Users the option to receive certain market data
feeds from third party markets through a wireless connection. The
description of the charge for the TSX wireless connection in the Price
List and Fee Schedule states that ``[c]ustomers with an existing
wireless connection to TSX at the time the Exchange makes the service
available will not be subject to an initial charge or receive 30-day
testing period.'' Because the wireless connection to the TSX has become
effective, the statement is obsolete. Accordingly, the Exchange
proposes to delete the statement from the Price List and Fee Schedule.
General
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; \13\ 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, one or both of its Affiliate SROs,
or NYSE National.\14\
---------------------------------------------------------------------------
\13\ 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.
\14\ See 78 FR 50471, supra note 11, at 50471. The Affiliate
SROs have also submitted substantially the same proposed rule change
to propose the changes described herein. See SR-NYSE-2018-23 and SR-
NYSEArca-2018-36.
---------------------------------------------------------------------------
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 proposal is consistent with Section
6(b) of the Act,\15\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\16\ 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.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed change would remove
impediments to, and perfect the mechanisms of, a free and open market
and a national market system and, in general, protect investors and the
public interest because the amendments would update General Note 1 to
reflect NYSE National's provision of co-location services. By including
the proposed reference to NYSE National, General Note 1 would provide
that the fees a User pays for co-location services would not depend on
whether the User connects to none, one, some, or all of the Exchange,
the Affiliate SROs, and NYSE National. For example, to charge one User
three times for a cage because that User connects to the Exchange, NYSE
National, and an Affiliate SRO, when another User that buys the same
size cage and only connects to the Exchange only pays once, would not
promote just and equitable principles of trade. The Exchange also
believes that the proposed amendments to General Note 1 are not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers because charging a User for co-location services
based on how many markets to which a User connects could result in the
Exchange, NYSE National and the Affiliate SROs receiving the proceeds
from multiple fees despite only providing a service once.
The Exchange believes that the proposed amendments would remove
impediments to, and perfect the mechanisms of, a free and open market
and a national market system and, in general, protect investors and the
public interest because the amendments would update General Note 4 to
reflect NYSE National's provision of co-location services. By expanding
the definition of ``Exchange Systems'' to include the NYSE National
trading and execution system, incorporating references to NYSE
National, and adding NYSE National to the list of Included Data
Products, the Exchange would provide market participants with clarity
as to what access and connectivity a User receives when it purchases
access to the LCN or IP network, thereby making the description more
accessible and transparent.
Further, the Exchange believes that revising General Note 4 to
provide a more detailed description of the access and connectivity to
NYSE National that Users would receive with their purchase of access to
the LCN or IP network would promote just and equitable principles of
trade and remove impediments to, and perfect the mechanisms of, a free
and open market and a national market system as it would make clear
that all Users that voluntarily select to access the LCN or IP network
would receive the same access to the NYSE National trading and
execution systems and connectivity to NYSE National data and would not
be subject to a charge above and beyond the fee paid for the relevant
LCN or IP network access. In addition, a User would not be required to
use any of its bandwidth to access the NYSE National trading and
execution system or connect to NYSE National data unless it wishes to
do so. A User only receives the access to Exchange Systems and
connectivity to Included Data Products that it selects, and a User can
change such access or connectivity it receives at any time, subject to
authorization from the data provider or relevant Exchange or Affiliate
SRO.
The Exchange believes that the non-substantive change to remove
obsolete text with respect to the wireless connection to TSX data would
remove impediments to, and perfect the mechanisms of, a free and open
market and a national market system and, in general, protect investors
and the public interest because the amendment would clarify Exchange
rules and alleviate any possible market participant confusion caused by
the obsolete reference.
[[Page 28044]]
The Exchange also believes that the proposed fee change is
consistent with Section 6(b)(4) of the Act,\17\ in particular, because
it provides for the equitable allocation of reasonable dues, fees, and
other charges among its members, issuers and other persons using its
facilities and does not unfairly discriminate between customers,
issuers, brokers or dealers.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the proposed change provides for the
equitable allocation of reasonable dues, fees, and other charges among
its members, issuers and other persons using its facilities and does
not unfairly discriminate between customers, issuers, brokers or
dealers, because the change would result in the Exchange offering co-
location services related to access and connectivity to NYSE National,
an affiliate of the Exchange, on the same terms and in the same manner
as it offers access and connectivity to the Exchange and the Affiliate
SROs. By adding NYSE National to General Notes 1 and 4, the proposed
change would ensure that the fees a User pays for co-location services
would not depend on whether the User connects to none, one or more of
the Exchange, the SRO Affiliates and NYSE National. For example, a User
that connects to the Exchange, NYSE National, and an Affiliate SRO, and
another User that only connects to the Exchange, would both receive the
same services for the same fee, including the same access and
connectivity with their purchase of access to the LCN or IP network.
The Exchange believes that the proposed non-substantive change to
remove obsolete text with respect to the wireless connection to TSX
data would be reasonable because the change would have no impact on
pricing. Rather, the change would remove obsolete information from the
description of the pricing for the service, alleviating possible market
participant confusion.
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,\18\ 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 use of co-location
services being completely voluntary, they are available to all Users on
an equal basis (i.e., the same range of products and services are
available to all Users).
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
The Exchange believes that the proposed change would not impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act because the change would result
in the Exchange offering co-location services related to access and
connectivity to NYSE National, an affiliate of the Exchange, on the
same terms and in the same manner as it offers access and connectivity
to the Exchange and the Affiliate SROs. By adding NYSE National to
General Notes 1 and 4, the proposed change would ensure that the fees a
User pays for co-location services would not depend on whether the User
connects only to none, one or more of the Exchange, the SRO Affiliates
and NYSE National. Further, the Exchange believes that revising General
Note 4 to provide a more detailed description of the access and
connectivity to NYSE National that Users would receive with their
purchase of access to the LCN or IP network would make clear that all
Users that voluntarily select to access the LCN or IP network would
receive the same access to the NYSE National trading and execution
systems and connectivity to NYSE National data and would not be subject
to a charge above and beyond the fee paid for the relevant LCN or IP
network access.
In addition, a User would not be required to use any of its
bandwidth to access the NYSE National trading and execution system or
connect to NYSE National data unless it wishes to do so.
The Exchange believes that the non-substantive change to remove
obsolete text with respect to the wireless connection to TSX data would
not impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act because it would
have no impact on pricing or existing services. Rather, the change
would remove obsolete information from the description of the pricing
for the service, alleviating possible market participant confusion.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \19\ and Rule 19b-4(f)(6) thereunder.\20\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\21\
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\19\ 15 U.S.C. 78s(b)(3)(A)(iii).
\20\ 17 CFR 240.19b-4(f)(6).
\21\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange to give 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 satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \22\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\23\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requests
that the Commission waive the 30-day operative delay so that the
proposed rule changes may become operative immediately upon filing. The
Exchange believes that waiver of the operative delay is consistent with
the protection of investors and the public interest because it would
allow the Exchange to offer co-location services related to access and
connectivity to NYSE National to coincide with the relaunch of the NYSE
National and its proposed co-location services. The Exchange also notes
that waiver would alleviate the possibility of confusion that could be
caused by inconsistencies between the Exchange's Price List and NYSE
National co-location services that are to be included in NYSE
National's price list. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest as it would allow the Exchange to offer co-locations
services in the form of access and connectivity to NYSE National
without undue delay. Accordingly, the Commission waives the 30-day
operative delay and designates the proposed rule change operative upon
filing.\24\
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\22\ 17 CFR 240.19b-4(f)(6).
\23\ 17 CFR 240.19b-4(f)(6)(iii).
\24\ For purposes only 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).
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[[Page 28045]]
At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \25\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\25\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSEAMER-2018-23 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-NYSEAMER-2018-23. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (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 website 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEAMER-2018-23 and should be submitted
on or before July 6, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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\26\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12851 Filed 6-14-18; 8:45 am]
BILLING CODE 8011-01-P