Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Price List Related to Co-Location Services, 10152-10154 [2019-05084]
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Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Notices
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
Commissioner Peirce, as duty officer,
voted to consider the items listed for the
closed meeting in closed session.
The subject matters of the closed
meeting will be:
Institution and settlement of injunctive
actions;
Institution and settlement of
administrative proceedings;
Resolution of litigation claims; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Dated: March 14, 2019.
Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019–05200 Filed 3–15–19; 11:15 am]
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Exchange’s Price List Related to CoLocation Services
March 13, 2019.
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 March 1,
2019, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
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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.
1. Purpose
[Release No. 34–85300; File No. SR–NYSE–
2019–11]
2 15
The Exchange proposes to amend the
Exchange’s Price List related to colocation services to make a ministerial
change to reflect the name change of its
affiliate Chicago Stock Exchange, Inc.
and to correct a typographical error. 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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
1 15
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Price List related to co-location 4
services offered by the Exchange to
make a ministerial change to reflect the
name change of its affiliate Chicago
Stock Exchange, Inc. (‘‘CHX’’) to NYSE
Chicago, Inc. (‘‘NYSE Chicago’’) and to
correct a typographical error.
4 The Exchange initially filed rule changes
relating to its co-location services with the
Securities and Exchange Commission
(‘‘Commission’’) in 2010. See Securities Exchange
Act Release No. 62960 (September 21, 2010), 75 FR
59310 (September 27, 2010) (SR–NYSE–2010–56).
The Exchange operates a data center in Mahwah,
New Jersey (the ‘‘data center’’) from which it
provides co-location services to Users. 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 American LLC (‘‘NYSE American’’),
NYSE Arca, Inc. (‘‘NYSE Arca’’), and NYSE
National, Inc. (‘‘NYSE National’’ and together, the
‘‘Affiliate SROs’’). See Securities Exchange Act
Release No. 70206 (August 15, 2013), 78 FR 51765
(August 21, 2013) (SR–NYSE–2013–59).
PO 00000
Frm 00133
Fmt 4703
Sfmt 4703
On February 15, 2019, CHX changed
its name to NYSE Chicago.5 In a nonsubstantive administrative change, the
Exchange proposes to update General
Note 4 related to co-location services 6
as follows:
• Delete references to ‘‘Chicago Stock
Exchange, Inc.’’ and ‘‘CHX’’ from the
first paragraph of General Note 4,
replacing them with references to
‘‘NYSE Chicago, Inc.’’ and ‘‘NYSE
Chicago’’; and
• In the table under Included Data
Products, delete ‘‘Chicago Stock
Exchange (CHX)’’ from the first line and
add a line for ‘‘NYSE Chicago’’ in
alphabetical order after NYSE Bonds.
In addition, in the third sentence of
the first paragraph under ‘‘Connectivity
to Third Party Data Feeds,’’ the
Exchange proposes to correct a
typographical error by replacing ‘‘Fees’’
with ‘‘Feeds.’’
General
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; 7 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
5 See Securities Exchange Release No. 84494
(October 26, 2018), 83 FR 54953 (November 1, 2018)
(SR–CHX–2018–05).
6 General Note 4 describes the access to trading
and execution systems and the connectivity to
included data products which a User receives when
it purchases access to the Liquidity Center Network
(‘‘LCN’’) or internet protocol (‘‘IP’’) network, local
area networks available in the data center. See
Securities Exchange Act Release No. 79730 (January
4, 2017), 82 FR 3045 (January 10, 2017) (SR–NYSE–
2016–92) (notice of filing and immediate
effectiveness of proposed rule change amending the
Exchange’s price list related to co-location services
to increase LCN and IP network fees and add a
description of access to trading and execution
services and connectivity to included data
products).
7 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, as compared to Users that are not
co-located, in sending orders to, and receiving
market data from, the Exchange.
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Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Notices
Exchange or to the Exchange and one or
more of the Affiliate SROs.8
The proposed change is not otherwise
intended to address any other issues
relating to co-location services and/or
related fees, and the Exchange is not
aware of any problems that Users would
have in complying with the proposed
change.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,9 in general, and
with Section 6(b)(1) 10 in particular, in
that it enables the Exchange to be so
organized as to have the capacity to be
able to carry out the purposes of the
Exchange Act and to comply, and to
enforce compliance by its exchange
members and persons associated with
its exchange members, with the
provisions of the Exchange Act, the
rules and regulations thereunder, and
the rules of the Exchange.
The proposed rule change is a nonsubstantive change and does not impact
the governance or ownership of the
Exchange. The Exchange believes that
the proposed rule change would enable
the Exchange to continue to be so
organized as to have the capacity to
carry out the purposes of the Exchange
Act and comply and enforce compliance
with the provisions of the Exchange Act
by its members and persons associated
with its members, because ensuring that
the Price List accurately reflects the
name change of its affiliate NYSE
Chicago and correcting a typographical
error would contribute to the orderly
operation of the Exchange by adding
clarity and transparency to such
document.
The Exchange also believes that the
proposed change furthers the objectives
of Section 6(b)(5) of the Act 11 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
8 See 78 FR 51765, supra note 4, at 51766. NYSE
American, NYSE Arca and NYSE National have
submitted substantially the same proposed rule
change to propose the changes described herein.
See SR–NYSEAmer-2019–02, SR–NYSEArca–2019–
11, and SR–NYSENat–2019–05.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(1).
11 15 U.S.C. 78f(b)(5).
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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 by ensuring that market
participants can more easily navigate,
understand and comply with the Price
List. The Exchange believes that, by
ensuring that such document accurately
reflects the name change of its affiliate
NYSE Chicago, the proposed change
would reduce potential investor or
market participant confusion by
providing market participants with
clarity as to what connectivity is
included in the purchase of access to
the LCN and IP network.
Similarly, correcting the
typographical error in the third sentence
of the first paragraph under
‘‘Connectivity to Third Party Data
Feeds’’ 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
change would clarify Exchange rules
and alleviate any possible market
participant confusion.
For the reasons above, the proposed
changes do not unfairly discriminate
between or among market participants
that are otherwise capable of satisfying
any applicable co-location fees,
requirements, terms and conditions
established from time to time by the
Exchange.
For these reasons, the Exchange
believes that the proposal is consistent
with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,12 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 it is
ministerial in nature and is not designed
to have any competitive impact, but
rather to update references and correct
a typographical error, thereby clarifying
the Price List and alleviating any
possible market participant confusion.
For the reasons described above, the
Exchange believes that the proposed
rule change reflects this competitive
environment.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 13 and Rule 19b–4(f)(3) 14
thereunder in that the proposed rule
change is concerned solely with the
administration of the Exchange.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may 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) 15 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:
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–
NYSE–2019–11 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–NYSE–2019–11. 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
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(3).
15 15 U.S.C. 78s(b)(2)(B).
14 17
12 15
PO 00000
U.S.C. 78f(b)(8).
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10153
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Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Notices
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 such
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–NYSE–2019–11, and
should be submitted on or before April
9, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–05084 Filed 3–18–19; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; NYSE
National, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its Schedule of
Fees and Rebates Related to CoLocation Services
March 13, 2019.
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 March 1,
2019, NYSE National, Inc. (‘‘NYSE
National’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
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The Exchange proposes to amend its
Schedule of Fees and Rebates (the
‘‘Price List’’) related to co-location
services to make a ministerial change to
reflect the name change of its affiliate
Chicago Stock Exchange, Inc. and to
correct a typographical error. 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.
1. Purpose
[Release No. 34–85305; File No. SR–
NYSENAT–2019–05]
1 15
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
16 17
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
The Exchange proposes to amend the
Price List related to co-location 4
services offered by the Exchange to
make a ministerial change to reflect the
name change of its affiliate Chicago
Stock Exchange, Inc. (‘‘CHX’’) to NYSE
Chicago, Inc. (‘‘NYSE Chicago’’) and to
correct a typographical error.
4 The Exchange initially filed rule changes
relating to its co-location services with the
Securities and Exchange Commission
(‘‘Commission’’) on May 18, 2018. See Securities
Exchange Act Release No. 83351 (May 31, 2018), 83
FR 26314 (June 6, 2018) (SR–NYSENAT–2018–07).
The Exchange operates a data center in Mahwah,
New Jersey (the ‘‘data center’’) from which it
provides co-location services to Users. 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 id. at note 9. 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 the New York Stock Exchange (‘‘NYSE’’),
NYSE American LLC (‘‘NYSE American’’), and
NYSE Arca, Inc. (‘‘NYSE Arca’’ and together, the
‘‘Affiliate SROs’’). See id. at note 11.
PO 00000
Frm 00135
Fmt 4703
Sfmt 4703
On February 15, 2019, CHX changed
its name to NYSE Chicago.5 In a nonsubstantive administrative change, the
Exchange proposes to update General
Note 4 related to co-location services 6
as follows:
• Delete references to ‘‘Chicago Stock
Exchange, Inc.’’ and ‘‘CHX’’ from the
first paragraph of General Note 4,
replacing them with references to
‘‘NYSE Chicago, Inc.’’ and ‘‘NYSE
Chicago’’; and
• In the table under Included Data
Products, delete ‘‘Chicago Stock
Exchange (CHX)’’ from the first line and
add a line for ‘‘NYSE Chicago’’ in
alphabetical order after NYSE Bonds.
In addition, in the third sentence of
the first paragraph under ‘‘Connectivity
to Third Party Data Feeds,’’ the
Exchange proposes to correct a
typographical error by replacing ‘‘Fees’’
with ‘‘Feeds.’’
General
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; 7 and (iii) a User would only incur
one charge for the particular co-location
service described herein, regardless of
whether the User connects only to the
Exchange or to the Exchange and one or
more of the Affiliate SROs.8
5 See Securities Exchange Release No. 84494
(October 26, 2018), 83 FR 54953 (November 1, 2018)
(SR–CHX–2018–05).
6 General Note 4 describes the access to trading
and execution systems and the connectivity to
included data products which a User receives when
it purchases access to the Liquidity Center Network
(‘‘LCN’’) or internet protocol (‘‘IP’’) network, local
area networks available in the data center. See 83
FR 26314, supra note 3, at 26316.
7 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, as compared to Users that are not
co-located, in sending orders to, and receiving
market data from, the Exchange.
8 See id. at 26315. NYSE, NYSE American, and
NYSE Arca have submitted substantially the same
proposed rule change to propose the changes
described herein. See SR–NYSE–2019–11, SR–
NYSEAmer–2019–02, and SR–NYSEArca–2019–11.
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Agencies
[Federal Register Volume 84, Number 53 (Tuesday, March 19, 2019)]
[Notices]
[Pages 10152-10154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05084]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85300; File No. SR-NYSE-2019-11]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Exchange's Price List Related to Co-Location Services
March 13, 2019.
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 March 1, 2019, New York Stock Exchange LLC (``NYSE'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Exchange's Price List related to
co-location services to make a ministerial change to reflect the name
change of its affiliate Chicago Stock Exchange, Inc. and to correct a
typographical error. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Price List related to co-
location \4\ services offered by the Exchange to make a ministerial
change to reflect the name change of its affiliate Chicago Stock
Exchange, Inc. (``CHX'') to NYSE Chicago, Inc. (``NYSE Chicago'') and
to correct a typographical error.
---------------------------------------------------------------------------
\4\ The Exchange initially filed rule changes relating to its
co-location services with the Securities and Exchange Commission
(``Commission'') in 2010. See Securities Exchange Act Release No.
62960 (September 21, 2010), 75 FR 59310 (September 27, 2010) (SR-
NYSE-2010-56). The Exchange operates a data center in Mahwah, New
Jersey (the ``data center'') from which it provides co-location
services to Users. 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 American LLC (``NYSE American''), NYSE
Arca, Inc. (``NYSE Arca''), and NYSE National, Inc. (``NYSE
National'' and together, the ``Affiliate SROs''). See Securities
Exchange Act Release No. 70206 (August 15, 2013), 78 FR 51765
(August 21, 2013) (SR-NYSE-2013-59).
---------------------------------------------------------------------------
On February 15, 2019, CHX changed its name to NYSE Chicago.\5\ In a
non-substantive administrative change, the Exchange proposes to update
General Note 4 related to co-location services \6\ as follows:
---------------------------------------------------------------------------
\5\ See Securities Exchange Release No. 84494 (October 26,
2018), 83 FR 54953 (November 1, 2018) (SR-CHX-2018-05).
\6\ General Note 4 describes the access to trading and execution
systems and the connectivity to included data products which a User
receives when it purchases access to the Liquidity Center Network
(``LCN'') or internet protocol (``IP'') network, local area networks
available in the data center. See Securities Exchange Act Release
No. 79730 (January 4, 2017), 82 FR 3045 (January 10, 2017) (SR-NYSE-
2016-92) (notice of filing and immediate effectiveness of proposed
rule change amending the Exchange's price list related to co-
location services to increase LCN and IP network fees and add a
description of access to trading and execution services and
connectivity to included data products).
---------------------------------------------------------------------------
Delete references to ``Chicago Stock Exchange, Inc.'' and
``CHX'' from the first paragraph of General Note 4, replacing them with
references to ``NYSE Chicago, Inc.'' and ``NYSE Chicago''; and
In the table under Included Data Products, delete
``Chicago Stock Exchange (CHX)'' from the first line and add a line for
``NYSE Chicago'' in alphabetical order after NYSE Bonds.
In addition, in the third sentence of the first paragraph under
``Connectivity to Third Party Data Feeds,'' the Exchange proposes to
correct a typographical error by replacing ``Fees'' with ``Feeds.''
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; \7\ 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
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Exchange or to the Exchange and one or more of the Affiliate SROs.\8\
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\7\ 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, as compared to
Users that are not co-located, in sending orders to, and receiving
market data from, the Exchange.
\8\ See 78 FR 51765, supra note 4, at 51766. NYSE American, NYSE
Arca and NYSE National have submitted substantially the same
proposed rule change to propose the changes described herein. See
SR-NYSEAmer-2019-02, SR-NYSEArca-2019-11, and SR-NYSENat-2019-05.
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The proposed change is not otherwise intended to address any other
issues relating to co-location services and/or related fees, and the
Exchange is not aware of any problems that Users would have in
complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and with Section 6(b)(1)
\10\[thinsp]in particular, in that it enables the Exchange to be so
organized as to have the capacity to be able to carry out the purposes
of the Exchange Act and to comply, and to enforce compliance by its
exchange members and persons associated with its exchange members, with
the provisions of the Exchange Act, the rules and regulations
thereunder, and the rules of the Exchange.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(1).
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The proposed rule change is a non-substantive change and does not
impact the governance or ownership of the Exchange. The Exchange
believes that the proposed rule change would enable the Exchange to
continue to be so organized as to have the capacity to carry out the
purposes of the Exchange Act and comply and enforce compliance with the
provisions of the Exchange Act by its members and persons associated
with its members, because ensuring that the Price List accurately
reflects the name change of its affiliate NYSE Chicago and correcting a
typographical error would contribute to the orderly operation of the
Exchange by adding clarity and transparency to such document.
The Exchange also believes that the proposed change furthers the
objectives of Section 6(b)(5) of the Act \11\ 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.
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\11\ 15 U.S.C. 78f(b)(5).
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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 by ensuring that market participants can more easily
navigate, understand and comply with the Price List. The Exchange
believes that, by ensuring that such document accurately reflects the
name change of its affiliate NYSE Chicago, the proposed change would
reduce potential investor or market participant confusion by providing
market participants with clarity as to what connectivity is included in
the purchase of access to the LCN and IP network.
Similarly, correcting the typographical error in the third sentence
of the first paragraph under ``Connectivity to Third Party Data Feeds''
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 change would clarify
Exchange rules and alleviate any possible market participant confusion.
For the reasons above, the proposed changes do not unfairly
discriminate between or among market participants that are otherwise
capable of satisfying any applicable co-location fees, requirements,
terms and conditions established from time to time by the Exchange.
For these reasons, the Exchange believes that the proposal is
consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\12\ 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 it is ministerial in nature and is not
designed to have any competitive impact, but rather to update
references and correct a typographical error, thereby clarifying the
Price List and alleviating any possible market participant confusion.
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\12\ 15 U.S.C. 78f(b)(8).
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For the reasons described above, the Exchange believes that the
proposed rule change reflects this competitive environment.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(3) \14\ thereunder in
that the proposed rule change is concerned solely with the
administration of the Exchange.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(3).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may 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) \15\ of the Act to determine whether the proposed rule
change should be approved or disapproved.
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\15\ 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 rule-comments@sec.gov. Please include
File Number SR-NYSE-2019-11 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-NYSE-2019-11. 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
[[Page 10154]]
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
such 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-
NYSE-2019-11, and should be submitted on or before April 9, 2019.
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\16\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-05084 Filed 3-18-19; 8:45 am]
BILLING CODE 8011-01-P