Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amending Its NYSE American Equities Price List and Fee Schedule and the NYSE American Options Fee Schedule Related to Co-Location Services, 68220-68225 [2019-26834]
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Federal Register / Vol. 84, No. 240 / Friday, December 13, 2019 / Notices
SECURITIES AND EXCHANGE
COMMISSION
of the most significant parts of such
statements.
[Release No. 34–87684; File No. SR–
NYSEAMER–2019–52]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amending Its NYSE
American Equities Price List and Fee
Schedule and the NYSE American
Options Fee Schedule Related to CoLocation Services
December 9, 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 November
25, 2019, NYSE American LLC (‘‘NYSE
American’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
NYSE American Equities Price List and
Fee Schedule (’’ Price List and Fee
Schedule’’) and the NYSE American
Options Fee Schedule (‘‘Fee Schedule’’)
related to co-location services to
eliminate (a) a connectivity option
whose manufacturer will no longer
support a key component of the network
hardware, and (b) services that are no
longer utilized by Users. The proposed
rule 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,
1 15
U.S.C.78s(b) (1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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1. Purpose
The Exchange proposes to amend the
Price List and Fee Schedule related to
co-location 4 services offered by the
Exchange to eliminate (a) a connectivity
option whose manufacturer will no
longer support a key component of the
network hardware, and (b) services that
are no longer utilized by Users.5
Proposed Change
LCN 10 Gb Circuit
Among other connectivity options,
Users are able to connect to the
Exchange over the Liquidity Center
Network (‘‘LCN’’), a local area network
available in the data center.6 LCN access
is available at 1, 10 and 40 Gb
bandwidth capacities. Currently, Users
have two 10 Gb options for LCN access:
• LCN 10 Gb, which has been in place
since 2010,7 and
• LCN 10 Gb LX, which was
introduced in 2013.8
The LCN 10 Gb LX has a lower
latency than the LCN 10 Gb connection,
and has latency levels substantially
similar to those of the LCN 40 Gb
connection.9 Between the two 10 Gb
4 The Exchange initially filed rule changes
relating to its co-location services with the
Securities and Exchange Commission
(‘‘Commission’’) in 2010. See Securities Exchange
Act Release No. 62961 (September 21, 2010), 75 FR
59299 (September 27, 2010) (SR–NYSEAmex–2010–
80). The Exchange operates a data center in
Mahwah, New Jersey (the ‘‘data center’’) from
which it provides co-location services to Users.
5 For purposes of the Exchange’s co-location
services, a ‘‘User’’ means any market participant
that requests to receive co-location services directly
from the Exchange. See Securities Exchange Act
Release No. 76009 (September 29, 2015), 80 FR
60213 (October 5, 2015) (SR–NYSEMKT–2015–67).
As specified in the Price List and Fee Schedule, a
User that incurs co-location fees for a particular colocation 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 LLC (‘‘NYSE’’), NYSE Arca,
Inc. (‘‘NYSE Arca’’), NYSE Chicago, Inc. (‘‘NYSE
Chicago’’), and NYSE National, Inc. (‘‘NYSE
National’’ and together, the ‘‘Affiliate SROs’’). See
Securities Exchange Act Release No. 70176 (August
13, 2013), 78 FR 50471 (August 19, 2013) (SR–
NYSEMKT–2013–67).
6 The other local area network is the internet
protocol (‘‘IP’’) network. See Securities Exchange
Act Release No. 79728 (January 4, 2017), 82 FR
3035 (January 10, 2017) (SR–NYSEMKT–2016–126).
7 See 75 FR 59299, supra note 4, at 59299.
8 See Securities Exchange Act Release Nos. 70886
(November 15, 2013), 78 FR 69904 (November 21,
2013) (SR–NYSEMKT–2013–92); and 70982
(December 4, 2013), 78 FR 74197 (December 10,
2013) (SR–NYSEMKT–2013–97).
9 See 78 FR 69904 supra note 8, at 69905.
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LCN alternatives, the vast majority
(80%) of User connections are the newer
LCN 10Gb LX connections.
The Exchange proposes to cease
offering the LCN 10 Gb connection. The
Exchange does not propose the current
change lightly: It recognizes that
removing the LCN 10 Gb connection
from its Price List and Fee Schedule
would eliminate a connectivity option
previously available to Users. For the
reasons discussed below, however, the
Exchange has concluded that the
proposed change is necessary because it
believes that if it does not eliminate the
LCN 10 Gb connections, the Exchange’s
ability to provide support or supplies to
Users with LCN 10 Gb connections
would be compromised.
For each LCN connection, the
network hardware relies on a switch,
which acts as the ‘‘gatekeeper’’ for a
User’s inbound messaging (e.g., orders
and quotes) sent to the Exchange’s
trading and execution system and the
Exchange’s outbound messaging (e.g.,
market data and drop copies) within the
data center.10 Switches are
manufactured and sold to the Exchange
by third parties. Currently, the LCN 1
Gb and LCN 10 Gb connections use one
type of switch (the ‘‘First Switch’’) and
the LCN 10 Gb LX and LCN 40 Gb
connections use a second type of switch
(the ‘‘Second Switch’’).11
The manufacturer of the First Switch
made an ‘‘end of life’’ (‘‘EOL’’)
announcement notifying customers that
the First Switch is being discontinued.
The manufacturer stated that it is
phasing out the provision of
replacement parts and support for the
First Switch. Per its EOL notice, it has
ceased offering the First Switch, and, as
of January 1, 2020: 12
• It has no commitment to furnish
software engineering level support for
the operating system software licensed
for the First Switch. No further service
or maintenance releases or patches will
be created to support the First Switch.
• It has no commitment to perform
hardware engineering level support,
including hardware modifications and
failure analysis, for hardware defects.
As a consequence, the Exchange will
not be able to provide Users with new
LCN 10 Gb connections or give the
present level of support to existing ones,
and so it proposes to discontinue the
10 See
id.
id. at note 7.
12 ‘‘JTAC Technical Bulletin,’’ at https://
kb.juniper.net/resources/sites/CUSTOMER
SERVICE/content/live/TECHNICAL_BULLETINS/
16000/TSB16960/en_US/TSB16960.pdf. See also
‘‘Juniper Networks Product End-of-Life,’’ at https://
support.juniper.net/support/pdf/eol/990833.pdf.
11 See
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service and remove it from the Price List
and Fee Schedule.13
The Exchange plans to implement the
change during the first half of 2020.14 It
will announce the implementation date
through a customer notice. After the
implementation date, the Exchange will
not accept new orders for LCN 10 Gb
connections.15
To provide time for Users that have
LCN 10 Gb connections (‘‘Current
Users’’) to implement any changes, the
Exchange proposes to give them a six
month grace period, starting on the
implementation date. After the grace
period ends, any remaining LCN 10 Gb
connections will be terminated. The
Exchange also proposes to waive any
change fees 16 and non-recurring
charges 17 that a Current User would
otherwise incur as a result of the
proposed change.
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Bundled Network Access
The Exchange currently offers a pair
of ‘‘bundled’’ connectivity options
(‘‘Bundled Network Access’’) at 1 and
13 The Price List and Fee Schedule provide that
a User that purchased five 10 Gb LCN connections
would be charged the initial fee for a sixth 10 Gb
LCN connection but would not be charged the
monthly fee that would otherwise be applicable.
Currently, no Users qualify for the discount. As part
of the proposed change, the provision would be
deleted.
14 Also during the first half of 2020, the Exchange
expects to update the network hardware of the LCN
10 Gb LX and LCN 40 Gb connections by replacing
the Second Switch with a new switch (the ‘‘New
Switch’’). The Exchange plans to update the LCN
1 Gb network hardware with the New Switch as
well, which would allow the Exchange to continue
to offer the LCN 1 Gb circuit despite the EOL of the
First Switch. Because the New Switch, like the
Second Switch, will provide a lower-latency
connection, the Exchange expects that the latency
of the LCN 1 Gb will decrease.
The Exchange does not propose to make a similar
change to the LCN 10 Gb network hardware
because, if it did, there would be no difference
between the LCN 10 Gb and the LCN 10 Gb LX
connection: They would have the same bandwidth
and latency levels. However, the two services
cannot have the same latency. Rather, as the
Exchange has stated, the LCN 10 Gb LX has a lower
latency than the LCN 10 Gb connection. 78 FR
69904 supra note 8, at 69905. Its latency levels are
similar to those of the LCN 40 Gb connection, and
the same fees are assessed for both services. See 78
FR 74197 supra note 8, at 74197–74198. In
addition, the Exchange does not believe that it
would be reasonable or equitable to charge different
fees for equivalent services. See id.
15 The Exchange believes that it has enough First
Switches to fulfil any orders it may receive prior to
the implementation date.
16 The Exchange charges a User a ‘‘Change Fee’’
if the User requests a change to one or more existing
co-location services that the Exchange has already
established or completed for the User. See
Securities Exchange Act Release No. 67665 (August
15, 2012), 77 FR 50734 (August 22, 2012) (SR–
NYSEMKT–2012–11).
17 Co-location connectivity services have a nonrecurring initial charge. For example, the LCN 10
Gb LX has a $15,000 initial charge per connection.
See 78 FR 74197 supra note 8, at 74198.
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10 Gb bandwidths,18 but no User is
utilizing one. Accordingly, the
Exchange proposes to discontinue the
Bundled Network Access options and
remove references to the related pricing
from the Price List and Fee Schedule.
The change would be consistent with
previous practice: In 2014 and 2016
previously existing bundled network
access connectivity options were
discontinued, as they were no longer
utilized by Users.19
Application and Impact of the Proposed
Change
The proposed change would not
apply differently to distinct types or
sizes of market participants. Rather, it
would apply to all Users equally. As is
currently the case, the purchase of any
colocation service is completely
voluntary and the Price List and Fee
Schedule are applied uniformly to all
Users.
LCN 10 Gb
As a consequence of the
manufacturer’s declaration of EOL for
the First Switch, the Exchange will not
be able to provide Users with new LCN
10 Gb connections or give the present
level of support to the nine Current
Users’ existing LCN 10 Gb connections.
Accordingly, after the implementation
date, the Exchange will not accept new
orders for LCN 10 Gb connections and,
after the grace period, it will terminate
any remaining LCN 10 Gb connections.
The Exchange also proposes to waive
any change fees and non-recurring
charges that a Current User would
otherwise incur as a result of the
proposed change.
The Current Users have several
options available to them upon
termination of the LCN 10 GB
connections:
• A Current User may move to the
faster LCN 10 Gb LX connection. The
change would increase the User’s
monthly recurring charge from $14,000
to $22,000, but the User would benefit
from a faster connection while
maintaining the same amount of
bandwidth and system redundancy.
• A Current User may move to the
slower IP Network, which offers a 10 Gb
circuit alternative. The change would
lower the User’s monthly recurring
charge from $14,000 to $11,000. The
connection would have greater latency,
but the User would maintain the same
bandwidth and resiliency.
18 See Securities Exchange Act Release No. 77973
(June 2, 2016), 81 FR 36975 (June 8, 2016) (SR–
NYSEMKT–2016–57).
19 See id. and Securities Exchange Act Release
No. 72719 (July 30, 2014), 79 FR 45502 (August 5,
2014) (SR–NYSEMKT–2014–61).
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• A Current User may opt to re-tailor
its system to reduce the number of LCN
connections it has. For example, a
Current User with two LCN 10 Gb
connections could consolidate them
into one LCN 40 Gb connection. The
change would decrease the User’s
monthly recurring charge from $28,000
to $22,000 while allowing it to benefit
from a faster connection and increased
bandwidth, although it would reduce
the redundancy of its connection.
• A Current User may opt to become
a ‘‘Hosted Customer’’ by being hosted by
another User (a ‘‘Hosting User’’), or to
cross connect to another User within colocation, either of which would likely
decrease its monthly connectivity costs
and available bandwidth.20
The Exchange expects to work with
the Current Users to implement the
change.
Bundled Network Access
As no Users utilize a Bundled
Network Access option, no Users will be
impacted by the proposed change.
Competitive Environment
The Exchange operates in a highly
competitive market in which exchanges
and other vendors (e.g., Hosting Users)
offer co-location services as a means to
facilitate the trading and other market
activities of those market participants
who believe that co-location enhances
the efficiency of their operations. The
Commission has repeatedly expressed
its preference for competition over
regulatory intervention in determining
prices, products, and services in the
securities markets. Specifically, in
Regulation NMS, the Commission
highlighted the importance of market
forces in determining prices and SRO
revenues and, also, recognized that
current regulation of the market system
‘‘has been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 21
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
20 See 76009 (September 29, 2015), 80 FR 60213
(October 5, 2015) (SR–NYSEMKT–2015–67). The
Exchange does not have visibility into what other
Users, including Hosting Users, charge or the
bandwidth they offer, but to the best of its
knowledge no Hosting User offers its hosted
customers a 10 Gb connection.
21 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
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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; 22 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
and one or more of the Affiliate SROs.23
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.
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The Proposed Rule Change Is
Reasonable
The Exchange believes that the
proposed rule change is reasonable for
the following reasons.
As a consequence of the
manufacturer’s declaration of the First
Switch’s EOL, the Exchange believes
that, if it did not eliminate the LCN 10
Gb connections, it would be unable to
provide the current level of support to
Users that have such connections. More
specifically, pursuant to its EOL, the
manufacturer is ceasing to offer the First
Switch and terminating its software and
hardware engineering level support. As
a result, when the inevitable hardware
or software issues involving the First
Switch arose, the Exchange would not
2. Statutory Basis
have the manufacturer resources
The Exchange believes that the
available to solve connectivity issues or
proposed rule change is consistent with replace switches, and Users’
Section 6(b) of the Act,24 in general, and connections to the Exchange could be
compromised or wholly cut off. At the
furthers the objectives of Sections
6(b)(4) and (5) of the Act,25 in particular, same time, if a User requested a new or
replacement LCN 10 Gb connection, the
because it provides for the equitable
Exchange would not be able to obtain
allocation of reasonable dues, fees, and
one. Accordingly, the Exchange believes
other charges among its members,
that it is reasonable to eliminate the
issuers and other persons using its
LCN 10 Gb connectivity option.
facilities and does not unfairly
The Exchange believes that the
discriminate between customers,
proposed change will facilitate its
issuers, brokers or dealers. In addition,
compliance with the requirements of
it is designed to foster cooperation and
Regulation Systems Compliance and
coordination with persons engaged in
Integrity (‘‘SCI’’).26 The LCN is an SCI
regulating, clearing, settling, processing
system 27 of the Exchange, which is
information with respect to, and
itself an SCI entity. Accordingly, the
facilitating transactions in securities, to
Exchange is obligated to have
remove impediments to, and perfect the reasonable policies and procedures in
mechanisms of, a free and open market
place to ensure the LCN has a level of
and a national market system and, in
capacity, integrity, resiliency,
general, to protect investors and the
availability and security, adequate to
public interest and because it is not
maintain the Exchange’s operational
designed to permit unfair
capability and promote the maintenance
discrimination between customers,
of fair and orderly markets.28 Because
issuers, brokers, or dealers.
the manufacturer is ceasing to offer the
First Switch, if the Exchange is unable
to eliminate the LCN 10 Gb connectivity
22 As is currently the case, Users that receive colocation services from the Exchange will not receive option its reasonable policies and
procedures would need to contemplate
any means of access to the Exchange’s trading and
execution systems that is separate from, or superior
being unable to resolve connectivity
to, that of other Users. In this regard, all orders sent
issues related to First Switches or even
to the Exchange enter the Exchange’s trading and
replace them. Regulation SCI also
execution systems through the same order gateway,
obligates SCI entities such as the
regardless of whether the sender is co-located in the
Exchange to take corrective action upon
data center or not. In addition, co-located Users do
the occurrence of an SCI event to
not receive any market data or data service product
that is not available to all Users, although Users that mitigate potential harm to investors and
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.
23 See 78 FR 50471, supra note 5, at 50471. Each
Affiliate SRO has submitted substantially the same
proposed rule change to propose the changes
described herein. See SR–NYSE–2019–66, SR–
NYSEArca–2019–85, SR–NYSECHX–2019–23, and
SR–NYSENAT–2019–29.
24 15 U.S.C. 78f(b).
25 15 U.S.C. 78f(b)(4) and (5).
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26 17 CFR 242.1000 through 242.1007; see also
Securities Exchange Act Release No. 73639, 79 FR
72251 (December 5, 2015) (adopting Regulation
Systems Compliance and Integrity).
27 ‘‘SCI systems’’ means ‘‘all computer, network,
electronic, technical, automated, or similar systems
of, or operated by or on behalf of, an SCI entity that,
with respect to securities, directly support trading,
clearance and settlement, order routing, market
data, market regulation, or market surveillance.’’ 17
CFR 242.1000.
28 79 FR 72251, supra note 26, at 72256–72257.
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market integrity. The Exchange’s ability
to take such action promptly and
effectively, if needed, with respect to
the LCN 10 Gb connection would be
severely limited by its inability to seek
support from the manufacturer should
issues arise with the First Switch.
Accordingly, the Exchange believes that,
in light of the EOL of the First Switch,
the proposed change to eliminate the
LCN 10 Gb connectivity option is a
reasonable solution.
The Exchange believes the situation is
analogous to when an SCI entity
determines to utilize a third party to
operate an SCI system on its behalf. As
the Commission has noted, in such case,
the SCI entity ‘‘is responsible for having
in place processes and requirements to
ensure that it is able to satisfy the
requirements of Regulation SCI for
systems operated on behalf of the SCI
entity by a third party.’’ 29 Likewise, ‘‘if
an SCI entity is uncertain of its ability
to manage a third-party relationship
(whether through due diligence,
contract terms, monitoring, or other
methods) to satisfy the requirements of
Regulation SCI, then it would need to
reassess its decision to outsource the
applicable system to such third
party.’’ 30 In the present case, the third
party that provides the First Switch, an
important part of the network hardware
for the LCN 10 Gb connection, has
declared its intention to discontinue
both production of and technical
support for the First Switch. Given that,
the Exchange has assessed its ability to
manage the LCN 10 Gb connection going
forward, and has concluded that it
cannot continue to offer a product that
relies on the First Switch.
The Exchange believes that providing
Current Users with a six month grace
period and waiving any applicable
change fees and non-recurring charges
would be reasonable because Current
Users would be terminating their LCN
10 Gb connections at the Exchange’s
request. The grace period would provide
a Current User with time to terminate its
LCN 10 Gb connection, move to an LCN
10 Gb LX connection, move to a 10 Gb
IP network connection, re-tailor its
system to reduce the number of
connections, become a Hosted
Customer, cross-connect to another
User, or otherwise adjust for the change.
The fee waivers would help to alleviate
the burden of the change on the Current
Users.
With respect to the Bundled Network
Access, the Exchange believes that the
proposed change is reasonable because
it would permit the Exchange to
29 Id.
at 72276.
30 Id.
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streamline the offerings available to
Users in the data center by eliminating
services that Users no longer utilize and,
by removing references to related
pricing from the Price List and Fee
Schedule, make the Price List and Fee
Schedule easier to read, understand and
administer. In addition, removing
services that Users do not utilize from
the co-location offerings would
contribute to a more efficient process for
managing the various services offered to
Users, which would improve the
utilization of the data center resources,
both with respect to personnel and
infrastructure, including hardware and
software.
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The Proposed Rule Change Is Equitable
The Exchange believes the proposed
rule change is an equitable allocation of
its fees and credits for the following
reasons.
The Exchange believes that providing
Current Users with a six month grace
period and waiving any applicable
change fees and non-recurring charges
would be equitable because Current
Users would be terminating their LCN
10 Gb connections at the Exchange’s
request. The grace period would provide
a Current User with time to terminate its
LCN 10 Gb connection, move to an LCN
10 Gb LX connection, move to a 10 Gb
IP network connection, re-tailor its
system to reduce the number of
connections, become a Hosted
Customer, cross-connect to another
User, or otherwise adjust for the change.
The fee waivers would help to
alleviate the burden of the change on
the Current Users. With respect to the
Bundled Network Access, the Exchange
believes that the proposed change is
reasonable because it would permit the
Exchange to streamline the offerings
available to Users in the data center by
eliminating services that Users no
longer utilize and, by removing
references to related pricing from the
Price List and Fee Schedule, make the
Price List and Fee Schedule easier to
read, understand and administer.
The Proposed Rule Change Would
Protect Investors and the Public Interest
The Exchange believes that the
proposed rule change would perfect the
mechanisms of a free and open market
and a national market system and, in
general, protect investors and the public
interest for the following reasons.
It would be against the protection of
investors and the public interest if the
Exchange were to continue to offer an
older connectivity option that it could
not support at current levels, or if, as a
consequence of the EOL, Users’
connectivity was compromised or they
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were wholly unable to use it to connect
to the Exchange. As noted above, as a
consequence of the manufacturer’s
declaration of the First Switch’s EOL, if
the Exchange did not eliminate the LCN
10 Gb connections, the Exchange
believes it would be unable to provide
the current level of support to Users that
have such connections. When the
inevitable hardware or software issues
involving the First Switch arose, the
Exchange would not have the
manufacturer resources available to
solve connectivity issues or replace
switches, and Users’ connections to the
Exchange could be compromised or
wholly cut off. At the same time, if a
User requested a new or replacement
LCN 10 Gb connection, the Exchange
would not be able to obtain one.
The Exchange believes that the
proposed change will protect investors
and the public interest because it will
facilitate the Exchange’s compliance
with the requirements of Regulation
SCI. The Exchange is obligated to have
reasonable policies and procedures in
place to ensure the LCN, as an SCI
system, has a level of capacity, integrity,
resiliency, availability and security,
adequate to maintain the Exchange’s
operational capability and promote the
maintenance of fair and orderly
markets.31 Because the manufacturer is
ceasing to offer the First Switch, if the
Exchange is unable to eliminate the LCN
10 Gb connectivity option its reasonable
policies and procedures would need to
contemplate being unable to resolve
connectivity issues related to First
Switches or even replace them.
Regulation SCI also obligates SCI
entities such as the Exchange to take
corrective action upon the occurrence of
an SCI event to mitigate potential harm
to investors and market integrity. The
Exchange’s ability to take such action
promptly and effectively, if needed,
with respect to the LCN 10 Gb
connection would be severely limited
by its inability to seek support from the
manufacturer should issues arise with
the First Switch. Not being able to
resolve connectivity issues related to
First Switches or even replace them
would make the Exchange’s compliance
with Regulation SCI suboptimal.
With respect to the Bundled Network
Access, the Exchange believes that the
proposed change would protect
investors and the public interest
because it would permit the Exchange to
streamline the offerings available to
Users in the data center by eliminating
services that Users no longer utilize and,
by removing references to related
pricing from the Price List and Fee
31 Id.
PO 00000
Frm 00124
Schedule, make the Price List and Fee
Schedule easier to read, understand and
administer.
The Proposed Change Is Not Unfairly
Discriminatory
The Exchange believes that the
proposed change is not unfairly
discriminatory for the following
reasons.
The proposed change would not
apply differently to distinct types or
sizes of market participants. Rather, it
would apply to all Users equally. As a
consequence of the manufacturer’s
declaration of EOL for the First Switch,
the Exchange will not be able to provide
any Users with new LCN 10 Gb
connections or give the present level of
support to Current Users’ existing ones.
In addition, no Users would be able to
purchase the Bundled Network Access.
The Exchange believes that, because no
Users utilize such services, it would be
equitable and not unfairly
discriminatory to discontinue the
services.
At the same time, Users would
continue to have the choice of
purchasing an LCN 1 Gb, LCN 10 Gb LX,
LCN 40 Gb or IP network connection or
any of the other connectivity options
available. Use of any co-location service
is completely voluntary, and each
market participant is able to determine
whether to use co-location services
based on the requirements of its
business operations.
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,32 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.
Intramarket Competition
The Exchange does not believe that
the proposed change would place any
burden on intramarket competition that
is not necessary or appropriate. The
proposed change would not apply
differently to distinct types or sizes of
market participants. Rather, it would
32 15
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U.S.C. 78f(b)(8).
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apply to all Users equally: No Users
would be able to purchase a LCN 10 Gb
connection or Bundled Network Access.
The Exchange does not propose the
current change lightly: It recognizes that
removing the LCN 10 Gb connection
from its Price List and Fee Schedule
would eliminate a connectivity option
previously available to Users. As a
consequence of the change, nine Current
Users would be required to terminate
their LCN 10 Gb connections and either
move to LCN 10 Gb LX connections,
move to 10 Gb IP network connections,
re-tailor their systems to reduce the
number of connections, become Hosted
Customers, cross-connect to other Users,
or otherwise adjust for the change.
Nonetheless, the Exchange believes
that the change is necessary and
appropriate because, as a consequence
of the manufacturer’s declaration of the
First Switch’s EOL, if the Exchange did
not eliminate the LCN 10 Gb
connections, the Exchange’s ability to
provide support or supplies to Users
that have such connections would be
compromised. Not being able to resolve
connectivity issues related to First
Switches or even replace them would
make the Exchange’s compliance with
Regulation SCI suboptimal. When the
inevitable hardware or software issues
involving the First Switch arose, the
Exchange would not have the
manufacturer resources available to
solve connectivity issues or replace
switches. Users’ connections to the
Exchange could be compromised or
wholly cut off. At the same time, if a
User requested a new or replacement
LCN 10 Gb connection, the Exchange
would not be able to obtain one. It
would be contrary to the protection of
investors and the public interest if the
Exchange were to continue to offer a
connectivity option that it could not
support, or if Users were compromised
or wholly unable to use their
connectivity to connect to the Exchange.
The Exchange believes that providing
Current Users with a six month grace
period and waiving any applicable
change fees and non-recurring charges
would not place any burden on
intramarket competition that is not
necessary or appropriate because
Current Users would be terminating
their LCN 10 Gb connections at the
Exchange’s request. The grace period
would provide a Current User with time
to terminate its LCN 10 Gb connections
and adjust for the change, while the fee
waivers would help to alleviate the
burden of the change.
With respect to the Bundled Network
Access, the Exchange believes that the
proposed change would not place any
burden on intramarket competition that
VerDate Sep<11>2014
17:42 Dec 12, 2019
Jkt 250001
is not necessary or appropriate, as
currently no Users utilize the service,
and so no Users would be affected. The
change would permit the Exchange to
streamline the offerings available to
Users in the data center and, by
removing references to related pricing
from the Price List and Fee Schedule,
make the Price List and Fee Schedule
easier to read, understand and
administer. In addition, removing
services that Users do not utilize from
the co-location offerings would
contribute to a more efficient process for
managing the various services offered to
Users, which would improve the
utilization of the data center resources,
both with respect to personnel and
infrastructure, including hardware and
software.
Users would continue to have the
choice of purchasing an LCN 1 Gb, LCN
10 Gb LX, LCN 40 Gb or IP network
connection or any of the other
connectivity options available. Use of
any co-location service is completely
voluntary, and each market participant
is able to determine whether to use colocation services based on the
requirements of its business operations.
Intermarket Competition
The Exchange does not believe that
the proposed fee would impose any
burden on intermarket competition that
is not necessary or appropriate.
The Exchange operates in a highly
competitive market in which exchanges
and other vendors (i.e., Hosting Users)
offer co-location services as a means to
facilitate the trading and other market
activities of those market participants
who believe that co-location enhances
the efficiency of their operations.
Accordingly, fees charged for colocation services are constrained by the
active competition for the order flow of,
and other business from, such market
participants.
The Commission has repeatedly
expressed its preference for competition
over regulatory intervention in
determining prices, products, and
services in the securities markets.
Specifically, in Regulation NMS, the
Commission highlighted the importance
of market forces in determining prices
and SRO revenues and, also, recognized
that current regulation of the market
system ‘‘has been remarkably successful
in promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 33
As noted above, the Exchange
recognizes that removing the LCN 10 Gb
connection from its Price List and Fee
33 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
PO 00000
Frm 00125
Fmt 4703
Sfmt 4703
Schedule would eliminate a
connectivity option previously available
to Users. Indeed, the proposed change
may negatively impact the Exchange’s
revenues, since Current Users may opt
to re-tailor their systems to reduce the
number of connections, move to 10 Gb
IP network connections, re-tailor
become Hosted Customers, or crossconnect to another User. Such choices,
any of which would reduce revenue,
may be more attractive to Users as a
consequence of the change.
Nonetheless, the Exchange believes
that the change is necessary and
appropriate because, as a consequence
of the manufacturer’s declaration of the
First Switch’s EOL, if the Exchange did
not eliminate the LCN 10 Gb
connections, the Exchange’s ability to
provide support or supplies to Users
that have such connections would be
compromised. Not being able to resolve
connectivity issues related to First
Switches or even replace them would
make the Exchange’s compliance with
Regulation SCI suboptimal. When the
inevitable hardware or software issues
involving the First Switch arose, the
Exchange would not have the
manufacturer resources available to
solve connectivity issues or replace
switches. Users’ connections to the
Exchange could be compromised or
wholly cut off. At the same time, if a
User requested a new or replacement
LCN 10 Gb connection, the Exchange
would not be able to obtain one. It
would be contrary to the protection of
investors and the public interest if the
Exchange were to continue to offer a
connectivity option that it could not
support, or if Users were compromised
or wholly unable to use their
connectivity to connect to the Exchange.
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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 34 and Rule
19b–4(f)(6) thereunder.35 Because the
proposed rule change does not: (i)
34 15
35 17
E:\FR\FM\13DEN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
13DEN1
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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.36
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) 37 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–
NYSEAMER–2019–52 on the subject
line.
jbell on DSKJLSW7X2PROD with NOTICES
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–NYSEAMER–2019–52. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
36 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.
37 15 U.S.C. 78s(b)(2)(B).
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17:42 Dec 12, 2019
Jkt 250001
68225
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–2019–52 and
should be submitted on or before
January 3, 2020.
to be assessed on Members. The
proposed rule change was immediately
effective upon filing with the
Commission pursuant to Section
19(b)(3)(A) of the Act.3 The proposed
rule change was published for comment
in the Federal Register on August 21,
2019.4 The Commission received one
comment letter on the proposed rule
change, and one response letter from the
Exchange.5 On September 27, 2019, the
Commission temporarily suspended the
proposed rule change and instituted
proceedings to determine whether to
approve or disapprove the proposed
rule change.6
On November 21, 2019, the Exchange
withdrew the proposed rule change
(SR–CboeBYX–2019–013).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.38
Jill M. Peterson,
Assistant Secretary.
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of
Withdrawal of a Proposed Rule Change
To Amend the Fee Schedule Assessed
on Members To Establish a Monthly
Trading Rights Fee
[FR Doc. 2019–26834 Filed 12–12–19; 8:45 am]
BILLING CODE 8011–01–P
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–26839 Filed 12–12–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87687; File No. SR–
CboeBZX–2019–072]
December 9, 2019.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87689; File No. SR–
CboeBYX–2019–013]
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of
Withdrawal of a Proposed Rule Change
To Amend the Fee Schedule Assessed
on Members To Establish a Monthly
Trading Rights Fee
On August 1, 2019, Cboe BZX
Exchange, Inc. (‘‘BZX’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend the BZX Fee Schedule to
establish a monthly Trading Rights Fee
to be assessed on Members. The
proposed rule change was immediately
effective upon filing with the
December 9, 2019.
On August 1, 2019, Cboe BYX
Exchange, Inc. (‘‘BYX’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend the BYX Fee Schedule to
establish a monthly Trading Rights Fee
38 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00126
Fmt 4703
Sfmt 4703
3 15
U.S.C. 78s(b)(3)(A).
Securities Exchange Act Release No. 86685
(August 15, 2019), 84 FR 43627.
5 See Letters from: Theodore R. Lazo, Managing
Director and Associate General Counsel, SIFMA,
dated September 12, 2019; Adrian Griffiths,
Assistant General Counsel, Cboe, dated September
25, 2019. Comment letters are available on the
Commission’s website at: https://www.sec.gov/
comments/sr-cboebyx-2019-013/srcboebyx
2019013.htm.
6 See Securities Exchange Act Release No. 87140,
84 FR 52917 (October 3, 2019).
7 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
4 See
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]]>Agencies
[Federal Register Volume 84, Number 240 (Friday, December 13, 2019)]
[Notices]
[Pages 68220-68225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26834]
[[Page 68220]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87684; File No. SR-NYSEAMER-2019-52]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amending
Its NYSE American Equities Price List and Fee Schedule and the NYSE
American Options Fee Schedule Related to Co-Location Services
December 9, 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 November 25, 2019, NYSE American LLC (``NYSE American''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C.78s(b) (1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its NYSE American Equities Price
List and Fee Schedule ('' Price List and Fee Schedule'') and the NYSE
American Options Fee Schedule (``Fee Schedule'') related to co-location
services to eliminate (a) a connectivity option whose manufacturer will
no longer support a key component of the network hardware, and (b)
services that are no longer utilized by Users. The proposed rule 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 offered by the Exchange to
eliminate (a) a connectivity option whose manufacturer will no longer
support a key component of the network hardware, and (b) services that
are no longer utilized by Users.\5\
---------------------------------------------------------------------------
\4\ The Exchange initially filed rule changes relating to its
co-location services with the Securities and Exchange Commission
(``Commission'') in 2010. See Securities Exchange Act Release No.
62961 (September 21, 2010), 75 FR 59299 (September 27, 2010) (SR-
NYSEAmex-2010-80). The Exchange operates a data center in Mahwah,
New Jersey (the ``data center'') from which it provides co-location
services to Users.
\5\ For purposes of the Exchange's co-location services, a
``User'' means any market participant that requests to receive co-
location services directly from the Exchange. See Securities
Exchange Act Release No. 76009 (September 29, 2015), 80 FR 60213
(October 5, 2015) (SR-NYSEMKT-2015-67). As specified in the Price
List and Fee Schedule, a User that incurs co-location fees for a
particular co-location service pursuant thereto would not be subject
to co-location fees for the same co-location service charged by the
Exchange's affiliates the New York Stock Exchange LLC (``NYSE''),
NYSE Arca, Inc. (``NYSE Arca''), NYSE Chicago, Inc. (``NYSE
Chicago''), and NYSE National, Inc. (``NYSE National'' and together,
the ``Affiliate SROs''). See Securities Exchange Act Release No.
70176 (August 13, 2013), 78 FR 50471 (August 19, 2013) (SR-NYSEMKT-
2013-67).
---------------------------------------------------------------------------
Proposed Change
LCN 10 Gb Circuit
Among other connectivity options, Users are able to connect to the
Exchange over the Liquidity Center Network (``LCN''), a local area
network available in the data center.\6\ LCN access is available at 1,
10 and 40 Gb bandwidth capacities. Currently, Users have two 10 Gb
options for LCN access:
---------------------------------------------------------------------------
\6\ The other local area network is the internet protocol
(``IP'') network. See Securities Exchange Act Release No. 79728
(January 4, 2017), 82 FR 3035 (January 10, 2017) (SR-NYSEMKT-2016-
126).
---------------------------------------------------------------------------
LCN 10 Gb, which has been in place since 2010,\7\ and
---------------------------------------------------------------------------
\7\ See 75 FR 59299, supra note 4, at 59299.
---------------------------------------------------------------------------
LCN 10 Gb LX, which was introduced in 2013.\8\
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release Nos. 70886 (November 15,
2013), 78 FR 69904 (November 21, 2013) (SR-NYSEMKT-2013-92); and
70982 (December 4, 2013), 78 FR 74197 (December 10, 2013) (SR-
NYSEMKT-2013-97).
---------------------------------------------------------------------------
The LCN 10 Gb LX has a lower latency than the LCN 10 Gb connection,
and has latency levels substantially similar to those of the LCN 40 Gb
connection.\9\ Between the two 10 Gb LCN alternatives, the vast
majority (80%) of User connections are the newer LCN 10Gb LX
connections.
---------------------------------------------------------------------------
\9\ See 78 FR 69904 supra note 8, at 69905.
---------------------------------------------------------------------------
The Exchange proposes to cease offering the LCN 10 Gb connection.
The Exchange does not propose the current change lightly: It recognizes
that removing the LCN 10 Gb connection from its Price List and Fee
Schedule would eliminate a connectivity option previously available to
Users. For the reasons discussed below, however, the Exchange has
concluded that the proposed change is necessary because it believes
that if it does not eliminate the LCN 10 Gb connections, the Exchange's
ability to provide support or supplies to Users with LCN 10 Gb
connections would be compromised.
For each LCN connection, the network hardware relies on a switch,
which acts as the ``gatekeeper'' for a User's inbound messaging (e.g.,
orders and quotes) sent to the Exchange's trading and execution system
and the Exchange's outbound messaging (e.g., market data and drop
copies) within the data center.\10\ Switches are manufactured and sold
to the Exchange by third parties. Currently, the LCN 1 Gb and LCN 10 Gb
connections use one type of switch (the ``First Switch'') and the LCN
10 Gb LX and LCN 40 Gb connections use a second type of switch (the
``Second Switch'').\11\
---------------------------------------------------------------------------
\10\ See id.
\11\ See id. at note 7.
---------------------------------------------------------------------------
The manufacturer of the First Switch made an ``end of life''
(``EOL'') announcement notifying customers that the First Switch is
being discontinued. The manufacturer stated that it is phasing out the
provision of replacement parts and support for the First Switch. Per
its EOL notice, it has ceased offering the First Switch, and, as of
January 1, 2020: \12\
---------------------------------------------------------------------------
\12\ ``JTAC Technical Bulletin,'' at https://kb.juniper.net/resources/sites/CUSTOMERSERVICE/content/live/TECHNICAL_BULLETINS/16000/TSB16960/en_US/TSB16960.pdf. See also ``Juniper Networks
Product End-of-Life,'' at https://support.juniper.net/support/pdf/eol/990833.pdf.
---------------------------------------------------------------------------
It has no commitment to furnish software engineering level
support for the operating system software licensed for the First
Switch. No further service or maintenance releases or patches will be
created to support the First Switch.
It has no commitment to perform hardware engineering level
support, including hardware modifications and failure analysis, for
hardware defects.
As a consequence, the Exchange will not be able to provide Users
with new LCN 10 Gb connections or give the present level of support to
existing ones, and so it proposes to discontinue the
[[Page 68221]]
service and remove it from the Price List and Fee Schedule.\13\
---------------------------------------------------------------------------
\13\ The Price List and Fee Schedule provide that a User that
purchased five 10 Gb LCN connections would be charged the initial
fee for a sixth 10 Gb LCN connection but would not be charged the
monthly fee that would otherwise be applicable. Currently, no Users
qualify for the discount. As part of the proposed change, the
provision would be deleted.
---------------------------------------------------------------------------
The Exchange plans to implement the change during the first half of
2020.\14\ It will announce the implementation date through a customer
notice. After the implementation date, the Exchange will not accept new
orders for LCN 10 Gb connections.\15\
---------------------------------------------------------------------------
\14\ Also during the first half of 2020, the Exchange expects to
update the network hardware of the LCN 10 Gb LX and LCN 40 Gb
connections by replacing the Second Switch with a new switch (the
``New Switch''). The Exchange plans to update the LCN 1 Gb network
hardware with the New Switch as well, which would allow the Exchange
to continue to offer the LCN 1 Gb circuit despite the EOL of the
First Switch. Because the New Switch, like the Second Switch, will
provide a lower-latency connection, the Exchange expects that the
latency of the LCN 1 Gb will decrease.
The Exchange does not propose to make a similar change to the
LCN 10 Gb network hardware because, if it did, there would be no
difference between the LCN 10 Gb and the LCN 10 Gb LX connection:
They would have the same bandwidth and latency levels. However, the
two services cannot have the same latency. Rather, as the Exchange
has stated, the LCN 10 Gb LX has a lower latency than the LCN 10 Gb
connection. 78 FR 69904 supra note 8, at 69905. Its latency levels
are similar to those of the LCN 40 Gb connection, and the same fees
are assessed for both services. See 78 FR 74197 supra note 8, at
74197-74198. In addition, the Exchange does not believe that it
would be reasonable or equitable to charge different fees for
equivalent services. See id.
\15\ The Exchange believes that it has enough First Switches to
fulfil any orders it may receive prior to the implementation date.
---------------------------------------------------------------------------
To provide time for Users that have LCN 10 Gb connections
(``Current Users'') to implement any changes, the Exchange proposes to
give them a six month grace period, starting on the implementation
date. After the grace period ends, any remaining LCN 10 Gb connections
will be terminated. The Exchange also proposes to waive any change fees
\16\ and non-recurring charges \17\ that a Current User would otherwise
incur as a result of the proposed change.
---------------------------------------------------------------------------
\16\ The Exchange charges a User a ``Change Fee'' if the User
requests a change to one or more existing co-location services that
the Exchange has already established or completed for the User. See
Securities Exchange Act Release No. 67665 (August 15, 2012), 77 FR
50734 (August 22, 2012) (SR-NYSEMKT-2012-11).
\17\ Co-location connectivity services have a non-recurring
initial charge. For example, the LCN 10 Gb LX has a $15,000 initial
charge per connection. See 78 FR 74197 supra note 8, at 74198.
---------------------------------------------------------------------------
Bundled Network Access
The Exchange currently offers a pair of ``bundled'' connectivity
options (``Bundled Network Access'') at 1 and 10 Gb bandwidths,\18\ but
no User is utilizing one. Accordingly, the Exchange proposes to
discontinue the Bundled Network Access options and remove references to
the related pricing from the Price List and Fee Schedule.
---------------------------------------------------------------------------
\18\ See Securities Exchange Act Release No. 77973 (June 2,
2016), 81 FR 36975 (June 8, 2016) (SR-NYSEMKT-2016-57).
---------------------------------------------------------------------------
The change would be consistent with previous practice: In 2014 and
2016 previously existing bundled network access connectivity options
were discontinued, as they were no longer utilized by Users.\19\
---------------------------------------------------------------------------
\19\ See id. and Securities Exchange Act Release No. 72719 (July
30, 2014), 79 FR 45502 (August 5, 2014) (SR-NYSEMKT-2014-61).
---------------------------------------------------------------------------
Application and Impact of the Proposed Change
The proposed change would not apply differently to distinct types
or sizes of market participants. Rather, it would apply to all Users
equally. As is currently the case, the purchase of any colocation
service is completely voluntary and the Price List and Fee Schedule are
applied uniformly to all Users.
LCN 10 Gb
As a consequence of the manufacturer's declaration of EOL for the
First Switch, the Exchange will not be able to provide Users with new
LCN 10 Gb connections or give the present level of support to the nine
Current Users' existing LCN 10 Gb connections. Accordingly, after the
implementation date, the Exchange will not accept new orders for LCN 10
Gb connections and, after the grace period, it will terminate any
remaining LCN 10 Gb connections. The Exchange also proposes to waive
any change fees and non-recurring charges that a Current User would
otherwise incur as a result of the proposed change.
The Current Users have several options available to them upon
termination of the LCN 10 GB connections:
A Current User may move to the faster LCN 10 Gb LX
connection. The change would increase the User's monthly recurring
charge from $14,000 to $22,000, but the User would benefit from a
faster connection while maintaining the same amount of bandwidth and
system redundancy.
A Current User may move to the slower IP Network, which
offers a 10 Gb circuit alternative. The change would lower the User's
monthly recurring charge from $14,000 to $11,000. The connection would
have greater latency, but the User would maintain the same bandwidth
and resiliency.
A Current User may opt to re-tailor its system to reduce
the number of LCN connections it has. For example, a Current User with
two LCN 10 Gb connections could consolidate them into one LCN 40 Gb
connection. The change would decrease the User's monthly recurring
charge from $28,000 to $22,000 while allowing it to benefit from a
faster connection and increased bandwidth, although it would reduce the
redundancy of its connection.
A Current User may opt to become a ``Hosted Customer'' by
being hosted by another User (a ``Hosting User''), or to cross connect
to another User within co-location, either of which would likely
decrease its monthly connectivity costs and available bandwidth.\20\
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\20\ See 76009 (September 29, 2015), 80 FR 60213 (October 5,
2015) (SR-NYSEMKT-2015-67). The Exchange does not have visibility
into what other Users, including Hosting Users, charge or the
bandwidth they offer, but to the best of its knowledge no Hosting
User offers its hosted customers a 10 Gb connection.
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The Exchange expects to work with the Current Users to implement
the change.
Bundled Network Access
As no Users utilize a Bundled Network Access option, no Users will
be impacted by the proposed change.
Competitive Environment
The Exchange operates in a highly competitive market in which
exchanges and other vendors (e.g., Hosting Users) offer co-location
services as a means to facilitate the trading and other market
activities of those market participants who believe that co-location
enhances the efficiency of their operations. The Commission has
repeatedly expressed its preference for competition over regulatory
intervention in determining prices, products, and services in the
securities markets. Specifically, in Regulation NMS, the Commission
highlighted the importance of market forces in determining prices and
SRO revenues and, also, recognized that current regulation of the
market system ``has been remarkably successful in promoting market
competition in its broader forms that are most important to investors
and listed companies.'' \21\
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\21\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
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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
[[Page 68222]]
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; \22\ 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.\23\
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\22\ 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.
\23\ See 78 FR 50471, supra note 5, at 50471. Each Affiliate SRO
has submitted substantially the same proposed rule change to propose
the changes described herein. See SR-NYSE-2019-66, SR-NYSEArca-2019-
85, SR-NYSECHX-2019-23, and SR-NYSENAT-2019-29.
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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,\24\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\25\ 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. In addition, it is designed 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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\24\ 15 U.S.C. 78f(b).
\25\ 15 U.S.C. 78f(b)(4) and (5).
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The Proposed Rule Change Is Reasonable
The Exchange believes that the proposed rule change is reasonable
for the following reasons.
As a consequence of the manufacturer's declaration of the First
Switch's EOL, the Exchange believes that, if it did not eliminate the
LCN 10 Gb connections, it would be unable to provide the current level
of support to Users that have such connections. More specifically,
pursuant to its EOL, the manufacturer is ceasing to offer the First
Switch and terminating its software and hardware engineering level
support. As a result, when the inevitable hardware or software issues
involving the First Switch arose, the Exchange would not have the
manufacturer resources available to solve connectivity issues or
replace switches, and Users' connections to the Exchange could be
compromised or wholly cut off. At the same time, if a User requested a
new or replacement LCN 10 Gb connection, the Exchange would not be able
to obtain one. Accordingly, the Exchange believes that it is reasonable
to eliminate the LCN 10 Gb connectivity option.
The Exchange believes that the proposed change will facilitate its
compliance with the requirements of Regulation Systems Compliance and
Integrity (``SCI'').\26\ The LCN is an SCI system \27\ of the Exchange,
which is itself an SCI entity. Accordingly, the Exchange is obligated
to have reasonable policies and procedures in place to ensure the LCN
has a level of capacity, integrity, resiliency, availability and
security, adequate to maintain the Exchange's operational capability
and promote the maintenance of fair and orderly markets.\28\ Because
the manufacturer is ceasing to offer the First Switch, if the Exchange
is unable to eliminate the LCN 10 Gb connectivity option its reasonable
policies and procedures would need to contemplate being unable to
resolve connectivity issues related to First Switches or even replace
them. Regulation SCI also obligates SCI entities such as the Exchange
to take corrective action upon the occurrence of an SCI event to
mitigate potential harm to investors and market integrity. The
Exchange's ability to take such action promptly and effectively, if
needed, with respect to the LCN 10 Gb connection would be severely
limited by its inability to seek support from the manufacturer should
issues arise with the First Switch. Accordingly, the Exchange believes
that, in light of the EOL of the First Switch, the proposed change to
eliminate the LCN 10 Gb connectivity option is a reasonable solution.
---------------------------------------------------------------------------
\26\ 17 CFR 242.1000 through 242.1007; see also Securities
Exchange Act Release No. 73639, 79 FR 72251 (December 5, 2015)
(adopting Regulation Systems Compliance and Integrity).
\27\ ``SCI systems'' means ``all computer, network, electronic,
technical, automated, or similar systems of, or operated by or on
behalf of, an SCI entity that, with respect to securities, directly
support trading, clearance and settlement, order routing, market
data, market regulation, or market surveillance.'' 17 CFR 242.1000.
\28\ 79 FR 72251, supra note 26, at 72256-72257.
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The Exchange believes the situation is analogous to when an SCI
entity determines to utilize a third party to operate an SCI system on
its behalf. As the Commission has noted, in such case, the SCI entity
``is responsible for having in place processes and requirements to
ensure that it is able to satisfy the requirements of Regulation SCI
for systems operated on behalf of the SCI entity by a third party.''
\29\ Likewise, ``if an SCI entity is uncertain of its ability to manage
a third-party relationship (whether through due diligence, contract
terms, monitoring, or other methods) to satisfy the requirements of
Regulation SCI, then it would need to reassess its decision to
outsource the applicable system to such third party.'' \30\ In the
present case, the third party that provides the First Switch, an
important part of the network hardware for the LCN 10 Gb connection,
has declared its intention to discontinue both production of and
technical support for the First Switch. Given that, the Exchange has
assessed its ability to manage the LCN 10 Gb connection going forward,
and has concluded that it cannot continue to offer a product that
relies on the First Switch.
---------------------------------------------------------------------------
\29\ Id. at 72276.
\30\ Id.
---------------------------------------------------------------------------
The Exchange believes that providing Current Users with a six month
grace period and waiving any applicable change fees and non-recurring
charges would be reasonable because Current Users would be terminating
their LCN 10 Gb connections at the Exchange's request. The grace period
would provide a Current User with time to terminate its LCN 10 Gb
connection, move to an LCN 10 Gb LX connection, move to a 10 Gb IP
network connection, re-tailor its system to reduce the number of
connections, become a Hosted Customer, cross-connect to another User,
or otherwise adjust for the change. The fee waivers would help to
alleviate the burden of the change on the Current Users.
With respect to the Bundled Network Access, the Exchange believes
that the proposed change is reasonable because it would permit the
Exchange to
[[Page 68223]]
streamline the offerings available to Users in the data center by
eliminating services that Users no longer utilize and, by removing
references to related pricing from the Price List and Fee Schedule,
make the Price List and Fee Schedule easier to read, understand and
administer. In addition, removing services that Users do not utilize
from the co-location offerings would contribute to a more efficient
process for managing the various services offered to Users, which would
improve the utilization of the data center resources, both with respect
to personnel and infrastructure, including hardware and software.
The Proposed Rule Change Is Equitable
The Exchange believes the proposed rule change is an equitable
allocation of its fees and credits for the following reasons.
The Exchange believes that providing Current Users with a six month
grace period and waiving any applicable change fees and non-recurring
charges would be equitable because Current Users would be terminating
their LCN 10 Gb connections at the Exchange's request. The grace period
would provide a Current User with time to terminate its LCN 10 Gb
connection, move to an LCN 10 Gb LX connection, move to a 10 Gb IP
network connection, re-tailor its system to reduce the number of
connections, become a Hosted Customer, cross-connect to another User,
or otherwise adjust for the change.
The fee waivers would help to alleviate the burden of the change on
the Current Users. With respect to the Bundled Network Access, the
Exchange believes that the proposed change is reasonable because it
would permit the Exchange to streamline the offerings available to
Users in the data center by eliminating services that Users no longer
utilize and, by removing references to related pricing from the Price
List and Fee Schedule, make the Price List and Fee Schedule easier to
read, understand and administer.
The Proposed Rule Change Would Protect Investors and the Public
Interest
The Exchange believes that the proposed rule change would perfect
the mechanisms of a free and open market and a national market system
and, in general, protect investors and the public interest for the
following reasons.
It would be against the protection of investors and the public
interest if the Exchange were to continue to offer an older
connectivity option that it could not support at current levels, or if,
as a consequence of the EOL, Users' connectivity was compromised or
they were wholly unable to use it to connect to the Exchange. As noted
above, as a consequence of the manufacturer's declaration of the First
Switch's EOL, if the Exchange did not eliminate the LCN 10 Gb
connections, the Exchange believes it would be unable to provide the
current level of support to Users that have such connections. When the
inevitable hardware or software issues involving the First Switch
arose, the Exchange would not have the manufacturer resources available
to solve connectivity issues or replace switches, and Users'
connections to the Exchange could be compromised or wholly cut off. At
the same time, if a User requested a new or replacement LCN 10 Gb
connection, the Exchange would not be able to obtain one.
The Exchange believes that the proposed change will protect
investors and the public interest because it will facilitate the
Exchange's compliance with the requirements of Regulation SCI. The
Exchange is obligated to have reasonable policies and procedures in
place to ensure the LCN, as an SCI system, has a level of capacity,
integrity, resiliency, availability and security, adequate to maintain
the Exchange's operational capability and promote the maintenance of
fair and orderly markets.\31\ Because the manufacturer is ceasing to
offer the First Switch, if the Exchange is unable to eliminate the LCN
10 Gb connectivity option its reasonable policies and procedures would
need to contemplate being unable to resolve connectivity issues related
to First Switches or even replace them. Regulation SCI also obligates
SCI entities such as the Exchange to take corrective action upon the
occurrence of an SCI event to mitigate potential harm to investors and
market integrity. The Exchange's ability to take such action promptly
and effectively, if needed, with respect to the LCN 10 Gb connection
would be severely limited by its inability to seek support from the
manufacturer should issues arise with the First Switch. Not being able
to resolve connectivity issues related to First Switches or even
replace them would make the Exchange's compliance with Regulation SCI
suboptimal.
---------------------------------------------------------------------------
\31\ Id.
---------------------------------------------------------------------------
With respect to the Bundled Network Access, the Exchange believes
that the proposed change would protect investors and the public
interest because it would permit the Exchange to streamline the
offerings available to Users in the data center by eliminating services
that Users no longer utilize and, by removing references to related
pricing from the Price List and Fee Schedule, make the Price List and
Fee Schedule easier to read, understand and administer.
The Proposed Change Is Not Unfairly Discriminatory
The Exchange believes that the proposed change is not unfairly
discriminatory for the following reasons.
The proposed change would not apply differently to distinct types
or sizes of market participants. Rather, it would apply to all Users
equally. As a consequence of the manufacturer's declaration of EOL for
the First Switch, the Exchange will not be able to provide any Users
with new LCN 10 Gb connections or give the present level of support to
Current Users' existing ones. In addition, no Users would be able to
purchase the Bundled Network Access. The Exchange believes that,
because no Users utilize such services, it would be equitable and not
unfairly discriminatory to discontinue the services.
At the same time, Users would continue to have the choice of
purchasing an LCN 1 Gb, LCN 10 Gb LX, LCN 40 Gb or IP network
connection or any of the other connectivity options available. Use of
any co-location service is completely voluntary, and each market
participant is able to determine whether to use co-location services
based on the requirements of its business operations.
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,\32\ 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.
---------------------------------------------------------------------------
\32\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
Intramarket Competition
The Exchange does not believe that the proposed change would place
any burden on intramarket competition that is not necessary or
appropriate. The proposed change would not apply differently to
distinct types or sizes of market participants. Rather, it would
[[Page 68224]]
apply to all Users equally: No Users would be able to purchase a LCN 10
Gb connection or Bundled Network Access.
The Exchange does not propose the current change lightly: It
recognizes that removing the LCN 10 Gb connection from its Price List
and Fee Schedule would eliminate a connectivity option previously
available to Users. As a consequence of the change, nine Current Users
would be required to terminate their LCN 10 Gb connections and either
move to LCN 10 Gb LX connections, move to 10 Gb IP network connections,
re-tailor their systems to reduce the number of connections, become
Hosted Customers, cross-connect to other Users, or otherwise adjust for
the change.
Nonetheless, the Exchange believes that the change is necessary and
appropriate because, as a consequence of the manufacturer's declaration
of the First Switch's EOL, if the Exchange did not eliminate the LCN 10
Gb connections, the Exchange's ability to provide support or supplies
to Users that have such connections would be compromised. Not being
able to resolve connectivity issues related to First Switches or even
replace them would make the Exchange's compliance with Regulation SCI
suboptimal. When the inevitable hardware or software issues involving
the First Switch arose, the Exchange would not have the manufacturer
resources available to solve connectivity issues or replace switches.
Users' connections to the Exchange could be compromised or wholly cut
off. At the same time, if a User requested a new or replacement LCN 10
Gb connection, the Exchange would not be able to obtain one. It would
be contrary to the protection of investors and the public interest if
the Exchange were to continue to offer a connectivity option that it
could not support, or if Users were compromised or wholly unable to use
their connectivity to connect to the Exchange.
The Exchange believes that providing Current Users with a six month
grace period and waiving any applicable change fees and non-recurring
charges would not place any burden on intramarket competition that is
not necessary or appropriate because Current Users would be terminating
their LCN 10 Gb connections at the Exchange's request. The grace period
would provide a Current User with time to terminate its LCN 10 Gb
connections and adjust for the change, while the fee waivers would help
to alleviate the burden of the change.
With respect to the Bundled Network Access, the Exchange believes
that the proposed change would not place any burden on intramarket
competition that is not necessary or appropriate, as currently no Users
utilize the service, and so no Users would be affected. The change
would permit the Exchange to streamline the offerings available to
Users in the data center and, by removing references to related pricing
from the Price List and Fee Schedule, make the Price List and Fee
Schedule easier to read, understand and administer. In addition,
removing services that Users do not utilize from the co-location
offerings would contribute to a more efficient process for managing the
various services offered to Users, which would improve the utilization
of the data center resources, both with respect to personnel and
infrastructure, including hardware and software.
Users would continue to have the choice of purchasing an LCN 1 Gb,
LCN 10 Gb LX, LCN 40 Gb or IP network connection or any of the other
connectivity options available. Use of any co-location service is
completely voluntary, and each market participant is able to determine
whether to use co-location services based on the requirements of its
business operations.
Intermarket Competition
The Exchange does not believe that the proposed fee would impose
any burden on intermarket competition that is not necessary or
appropriate.
The Exchange operates in a highly competitive market in which
exchanges and other vendors (i.e., Hosting Users) offer co-location
services as a means to facilitate the trading and other market
activities of those market participants who believe that co-location
enhances the efficiency of their operations. Accordingly, fees charged
for co-location services are constrained by the active competition for
the order flow of, and other business from, such market participants.
The Commission has repeatedly expressed its preference for
competition over regulatory intervention in determining prices,
products, and services in the securities markets. Specifically, in
Regulation NMS, the Commission highlighted the importance of market
forces in determining prices and SRO revenues and, also, recognized
that current regulation of the market system ``has been remarkably
successful in promoting market competition in its broader forms that
are most important to investors and listed companies.'' \33\
---------------------------------------------------------------------------
\33\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
---------------------------------------------------------------------------
As noted above, the Exchange recognizes that removing the LCN 10 Gb
connection from its Price List and Fee Schedule would eliminate a
connectivity option previously available to Users. Indeed, the proposed
change may negatively impact the Exchange's revenues, since Current
Users may opt to re-tailor their systems to reduce the number of
connections, move to 10 Gb IP network connections, re-tailor become
Hosted Customers, or cross-connect to another User. Such choices, any
of which would reduce revenue, may be more attractive to Users as a
consequence of the change.
Nonetheless, the Exchange believes that the change is necessary and
appropriate because, as a consequence of the manufacturer's declaration
of the First Switch's EOL, if the Exchange did not eliminate the LCN 10
Gb connections, the Exchange's ability to provide support or supplies
to Users that have such connections would be compromised. Not being
able to resolve connectivity issues related to First Switches or even
replace them would make the Exchange's compliance with Regulation SCI
suboptimal. When the inevitable hardware or software issues involving
the First Switch arose, the Exchange would not have the manufacturer
resources available to solve connectivity issues or replace switches.
Users' connections to the Exchange could be compromised or wholly cut
off. At the same time, if a User requested a new or replacement LCN 10
Gb connection, the Exchange would not be able to obtain one. It would
be contrary to the protection of investors and the public interest if
the Exchange were to continue to offer a connectivity option that it
could not support, or if Users were compromised or wholly unable to use
their connectivity to connect to the Exchange.
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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \34\ and Rule 19b-4(f)(6) thereunder.\35\
Because the proposed rule change does not: (i)
[[Page 68225]]
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.\36\
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\34\ 15 U.S.C. 78s(b)(3)(A)(iii).
\35\ 17 CFR 240.19b-4(f)(6).
\36\ 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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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) \37\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\37\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
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-2019-52 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEAMER-2019-52. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet 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-2019-52 and should be submitted
on or before January 3, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\38\
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\38\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-26834 Filed 12-12-19; 8:45 am]
BILLING CODE 8011-01-P
