Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change for an Extension of the Temporary Waiver of the Co-location “Hot Hands” Fee, 19191-19194 [2020-07078]
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Federal Register / Vol. 85, No. 66 / Monday, April 6, 2020 / Notices
perfect the mechanism of a free and
open market and a national market
system; and, in general to protect
investors and the public interest. As a
result of uncertainty related to the
ongoing spread of the COVID–19 virus,
the U.S. exchanges are experiencing
unprecedented market volatility. The
proposed rule change would allow the
Exchange to provide temporary relief for
members from the Supervision
Reporting Requirements, which
currently requires members to provide
written reports to the Exchange by April
1, 2020, and extend that deadline to
June 1, 2020. The Exchange believes
that this temporary relief is necessary
and appropriate in the public interest,
and consistent with the protection of
investors, given the unforeseen and
uncertain challenges, including
business continuity implementation and
market volatility, posed by COVID–19 to
members that must comply with the
Supervision Reporting Requirements.
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not designed to
address any competitive issues but
rather to provide temporary relief for all
members that are required to comply
with the Supervision Reporting
Requirements.
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 13 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 14
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has
requested that the Commission waive
the 30-day operative delay so that the
proposed rule change may become
operative upon filing. The Commission
notes that the proposed rule change
would allow the Exchange, in light of
the COVID–19 pandemic, to provide
temporary relief for members by
extending the deadline for written
reports pursuant to the Supervision
Reporting Requirements from April 1,
2020 to June 1, 2020. The Commission
believes that waiver of the 30-day
operative delay is consistent with the
protection of investors and the public
interest. Accordingly, the Commission
hereby waives the operative delay and
designates the proposed rule change
operative upon filing.15
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
19191
All submissions should refer to File
Number SR–PHLX–2020–16. 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–PHLX–2020–16 and should
be submitted on or before April 27,
2020.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
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:
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 11 and
subparagraph (f)(6) of Rule 19b–4
thereunder.12
Electronic Comments
[FR Doc. 2020–07083 Filed 4–3–20; 8:45 am]
• 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–
PHLX–2020–16 on the subject line.
BILLING CODE 8011–01–P
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
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Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
Commission. The Commission has waived this
requirement.
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
J. Matthew DeLesDernier,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88522; File No. SR–
NYSECHX–2020–10]
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change for an Extension of the
Temporary Waiver of the Co-location
‘‘Hot Hands’’ Fee
March 31, 2020.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
16 17
1 15
E:\FR\FM\06APN1.SGM
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
06APN1
19192
Federal Register / Vol. 85, No. 66 / Monday, April 6, 2020 / Notices
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on March
27, 2020 the NYSE Chicago, Inc.
(‘‘NYSE Chicago’’ 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to an
extension of the temporary waiver of the
co-location ‘‘Hot Hands’’ fee. 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes an extension
of the temporary waiver of the colocation 4 ‘‘Hot Hands’’ fee through the
earlier of the reopening of the Mahwah,
New Jersey data center (‘‘Data Center’’)
or May 15, 2020. The waiver of the Hot
Hands fee was originally through March
29, 2020.5
The Exchange is an indirect
subsidiary of Intercontinental Exchange,
2 15
U.S.C. 78a.
CFR 240.19b–4.
4 The Exchange initially filed rule changes
relating to its co-location services with the
Securities and Exchange Commission
(‘‘Commission’’) in October 2019. See Securities
Exchange Act Release No. 87408 (October 28, 2019),
84 FR 58778 (November 1, 2019) (SR–NYSECHX–
2019–27).
5 See Securities Exchange Act Release No. 88400
(March 17, 2020), 85 FR 16434 (March 23, 2020)
(SR–NYSECHX–2020–07).
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Inc. (‘‘ICE’’). Through its ICE Data
Services (‘‘IDS’’) business, ICE operates
the Mahwah, New Jersey data center
(‘‘Data Center’’), from which the
Exchange provides co-location services
to Users.6 Among those services is a
‘‘Hot Hands’’ service, which allows
Users to use on-site Data Center
personnel to maintain User equipment,
support network troubleshooting, rack
and stack a server in a User’s cabinet;
power recycling; and install and
document the fitting of cable in a User’s
cabinet(s).7 The Hot Hands fee is $100
per half hour.
ICE originally announced that the
Data Center would be closed to third
parties for the period from March 16,
2020 through March 29, 2020 (the
‘‘Initial Closure’’), to help avoid the
spread of COVID–19, which could
negatively impact Data Center functions.
Prior to the closure of the Data Center,
the Chief Executive Officer of the
Exchange took the actions required
under NYSE Chicago Rule 7.1 to close
the co-location facility of the Exchange
to third parties.
ICE has now announced to Users that,
because the concerns that led to the
Initial Closure still apply, the closure of
the Data Center will be extended to the
earlier of the reopening of the Mahwah,
New Jersey data center (‘‘Data Center’’)
or May 15, 2020. The date will be
announced through a customer notice.
If a User’s equipment requires work
while a Rule 7.1 closure is in effect, the
User has to use the Hot Hands service
and, absent a waiver, incurs Hot Hands
fees for the work. Given that, the
Exchange waived all Hot Hands fees for
the duration of the Initial Closure.8
Because the period has been extended,
the Exchange proposes to extend the
waiver of the Hot Hands Fee for the
length of the period. To that end, the
Exchange proposes to revise the
footnote to the Hot Hands Fee in the Fee
6 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 84 FR 58778, supra note 4,
at note 6. As specified in the Fee Schedule of NYSE
Chicago, Inc. (‘‘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 American LLC (‘‘NYSE
American’’), NYSE Arca, Inc. (‘‘NYSE Arca’’), and
NYSE National, Inc. (‘‘NYSE National’’ and
together, the ‘‘Affiliate SROs’’). See id. at 58779.
Each Affiliate SRO has submitted substantially the
same proposed rule change to propose the changes
described herein. See SR–NYSE–2020–25, SR–
NYSEAmer-2020–23, SR–NYSEArca-2020–26, and
SR–NYSENAT–2020–14.
7 See 84 FR 58778, supra note 4.
8 See 85 FR 16434, supra note 5.
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Schedule as follows (deletions
bracketed, additions italicized per OFR):
† Fees for Hot Hands Services will be
waived beginning on March 16, 2020
through [March 29, 2020] the earlier of
the reopening of the Mahwah, New
Jersey data center or May 15, 2020.
The Exchange believes that there will
be sufficient Data Center staff on-site to
comply with User requests for Hot
Hands service.
The proposed extension of the waiver
would apply equally to all Users. The
proposed extension of the fee waiver
would not apply differently to distinct
types or sizes of market participants.
Rather, it would continue to apply
uniformly to all Users.
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
furthers the objectives of Sections
6(b)(4) and (5) of the Act,10 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.
The Proposed Rule Change Is
Reasonable
The Exchange believes that the
proposed rule change is reasonable for
the following reasons.
Given that the closure of the Data
Center has been extended, the Exchange
believes that it is reasonable to grant the
proposed corresponding extension of
the waiver of the Hot Hands Fee. While
a Rule 7.1 closure is in effect, User
representatives are not allowed access to
the Data Center. If a User’s equipment
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
10 15
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Federal Register / Vol. 85, No. 66 / Monday, April 6, 2020 / Notices
requires work during such period, the
User has to use the Hot Hands service.
Absent a waiver, the User would incur
Hot Hands fees for the work.
The proposed extension of the waiver
would allow a User to have work carried
out on its equipment notwithstanding
the closure of the Data Center without
incurring Hot Hands fees.
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 proposed extension of the waiver
would apply equally to all Users. The
proposed extension would not apply
differently to distinct types or sizes of
market participants. Rather, it would
apply uniformly to all Users.
The Exchange believes that the
proposal is equitable because the
extension of the waiver would mean
that for the duration of the closure of the
Data Center all similarly-situated Users
would not be charged a fee to use the
Hot Hands service.
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The Proposed Change Is Not Unfairly
Discriminatory and Would Protect
Investors and the Public Interest
17:47 Apr 03, 2020
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In accordance with Section 6(b)(8) of
the Act,11 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 extension of the waiver
is not designed to affect competition,
but rather to provide relief to Users that,
while a Rule 7.1 closure is in effect,
have no option but to use the Hot Hands
service.
The proposed extension of the waiver
would not apply differently to distinct
types or sizes of market participants.
Rather, all Users whose equipment
requires work during the extension of
the Data Center closure would have the
resulting fees waived, and the extension
of the waiver would apply uniformly to
all Users during the period.
Intermarket Competition
The Exchange believes that the
proposed change is not unfairly
discriminatory for the following
reasons.
The proposed extension of the waiver
would not apply differently to distinct
types or sizes of market participants.
Rather, all Users whose equipment
requires work during the extension of
the Data Center closure would have the
resulting fees waived, and the extension
of the waiver would apply uniformly to
all Users during the period. For the
reasons above, the proposed changes do
not unfairly discriminate between or
among market participants.
In addition, 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 because it would
allow a User to have work carried out
on its equipment notwithstanding a
Rule 7.1 closure without incurring Hot
Hands fees. Accordingly, the Exchange
believes that the requested extension of
the waiver is designed to perfect the
mechanisms of a free and open market
and a national market system and, in
general, protect investors and the public
interest by facilitating the uninterrupted
availability of Users’ equipment.
For all of the above reasons, the
Exchange believes that the proposal is
consistent with the Act.
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed change would impose any
burden on intermarket competition that
is not necessary or appropriate.
The Exchange believes that the
proposed change would not affect the
competitive landscape among the
national securities exchanges, as the Hot
Hands service is solely charged within
co-location to existing Users, and would
be temporary.
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 foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 12 of the Act and
subparagraph (f)(2) of Rule 19b–4 13
thereunder, because it establishes a due,
11 15
U.S.C. 78f(b)(8).
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(2).
fee, or other charge imposed by the
Exchange.
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) 14 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–
NYSECHX–2020–10 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–NYSECHX–2020–10. 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
12 15
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19193
14 15
E:\FR\FM\06APN1.SGM
U.S.C. 78s(b)(2)(B).
06APN1
19194
Federal Register / Vol. 85, No. 66 / Monday, April 6, 2020 / Notices
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–NYSECHX–2020–10 and
should be submitted on or before April
27, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–07078 Filed 4–3–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88521; File No. SR–
NYSENAT–2020–14]
Self-Regulatory Organizations; NYSE
National, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change for an Extension of the
Temporary Waiver of the Co-location
‘‘Hot Hands’’ Fee
March 31, 2020.
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
27, 2020, 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
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 an
extension of the temporary waiver of the
co-location ‘‘Hot Hands’’ fee. 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.
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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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 an extension
of the temporary waiver of the colocation 4 ‘‘Hot Hands’’ fee through the
earlier of the reopening of the Mahwah,
New Jersey data center (‘‘Data Center’’)
or May 15, 2020. The waiver of the Hot
Hands fee was originally through March
29, 2020.5
The Exchange is an indirect
subsidiary of Intercontinental Exchange,
Inc. (‘‘ICE’’). Through its ICE Data
Services (‘‘IDS’’) business, ICE operates
the Mahwah, New Jersey data center
(‘‘Data Center’’), from which the
Exchange provides co-location services
to Users.6 Among those services is a
‘‘Hot Hands’’ service, which allows
Users to use on-site Data Center
personnel to maintain User equipment,
support network troubleshooting, rack
and stack a server in a User’s cabinet;
power recycling; and install and
4 The Exchange initially filed rule changes
relating to its co-location services with the
Securities and Exchange Commission
(‘‘Commission’’) in May 2018. See Securities
Exchange Act Release No. 83351 (May 31, 2018), 83
FR 26314 (June 6, 2018) (SR–NYSENAT–2018–07).
5 See Securities Exchange Act Release No. 88399
(March 17, 2020), 85 FR 16428 (March 23, 2020)
(SR–NYSENAT–2020–10).
6 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 83 FR 26314, supra note 4,
at note 9. As specified in the Exchange’s 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 LLC (‘‘NYSE’’), NYSE
American LLC (‘‘NYSE American’’), NYSE Arca,
Inc. (‘‘NYSE Arca’’), and NYSE Chicago, Inc.
(‘‘NYSE Chicago’’ and together, the ‘‘Affiliate
SROs’’). See id. at note 11. Each Affiliate SRO has
submitted substantially the same proposed rule
change to propose the changes described herein.
See SR–NYSE–2020–25, SR–NYSEAmer–2020–23,
SR–NYSEArca–2020–26, and SR–NYSECHX–2020–
10.
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document the fitting of cable in a User’s
cabinet(s).7 The Hot Hands fee is $100
per half hour.
ICE originally announced that the
Data Center would be closed to third
parties for the period from March 16,
2020 through March 29, 2020 (the
‘‘Initial Closure’’), to help avoid the
spread of COVID–19, which could
negatively impact Data Center functions.
Prior to the closure of the Data Center,
the Chief Executive Officer of the
Exchange took the actions required
under NYSE National Rule 7.1 to close
the co-location facility of the Exchange
to third parties.
ICE has now announced to Users that,
because the concerns that led to the
Initial Closure still apply, the closure of
the Data Center will be extended to the
earlier of the reopening of the Mahwah,
New Jersey data center (‘‘Data Center’’)
or May 15, 2020. The date will be
announced through a customer notice.
If a User’s equipment requires work
while a Rule 7.1 closure is in effect, the
User has to use the Hot Hands service
and, absent a waiver, incurs Hot Hands
fees for the work. Given that, the
Exchange waived all Hot Hands fees for
the duration of the Initial Closure.8
Because the period has been extended,
the Exchange proposes to extend the
waiver of the Hot Hands Fee for the
length of the period. To that end, the
Exchange proposes to revise the
footnote to the Hot Hands Fee in the
Price List as follows (deletions
bracketed, additions italicized):
† Fees for Hot Hands Services will be
waived beginning on March 16, 2020
through [March 29, 2020]the earlier of
the reopening of the Mahwah, New
Jersey data center or May 15, 2020.
The Exchange believes that there will
be sufficient Data Center staff on-site to
comply with User requests for Hot
Hands service.
The proposed extension of the waiver
would apply equally to all Users. The
proposed extension of the fee waiver
would not apply differently to distinct
types or sizes of market participants.
Rather, it would continue to apply
uniformly to all Users.
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
7 See
8 See
E:\FR\FM\06APN1.SGM
83 FR 26314, supra note 4.
85 FR 16428, supra note 5.
06APN1
]]>Agencies
[Federal Register Volume 85, Number 66 (Monday, April 6, 2020)]
[Notices]
[Pages 19191-19194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07078]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88522; File No. SR-NYSECHX-2020-10]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change for an
Extension of the Temporary Waiver of the Co-location ``Hot Hands'' Fee
March 31, 2020.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the
[[Page 19192]]
``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that,
on March 27, 2020 the NYSE Chicago, Inc. (``NYSE Chicago'' 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to an extension of the temporary waiver of
the co-location ``Hot Hands'' fee. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes an extension of the temporary waiver of the
co-location \4\ ``Hot Hands'' fee through the earlier of the reopening
of the Mahwah, New Jersey data center (``Data Center'') or May 15,
2020. The waiver of the Hot Hands fee was originally through March 29,
2020.\5\
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\4\ The Exchange initially filed rule changes relating to its
co-location services with the Securities and Exchange Commission
(``Commission'') in October 2019. See Securities Exchange Act
Release No. 87408 (October 28, 2019), 84 FR 58778 (November 1, 2019)
(SR-NYSECHX-2019-27).
\5\ See Securities Exchange Act Release No. 88400 (March 17,
2020), 85 FR 16434 (March 23, 2020) (SR-NYSECHX-2020-07).
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The Exchange is an indirect subsidiary of Intercontinental
Exchange, Inc. (``ICE''). Through its ICE Data Services (``IDS'')
business, ICE operates the Mahwah, New Jersey data center (``Data
Center''), from which the Exchange provides co-location services to
Users.\6\ Among those services is a ``Hot Hands'' service, which allows
Users to use on-site Data Center personnel to maintain User equipment,
support network troubleshooting, rack and stack a server in a User's
cabinet; power recycling; and install and document the fitting of cable
in a User's cabinet(s).\7\ The Hot Hands fee is $100 per half hour.
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\6\ 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 84 FR 58778, supra
note 4, at note 6. As specified in the Fee Schedule of NYSE Chicago,
Inc. (``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 American LLC (``NYSE American''), NYSE Arca, Inc. (``NYSE
Arca''), and NYSE National, Inc. (``NYSE National'' and together,
the ``Affiliate SROs''). See id. at 58779. Each Affiliate SRO has
submitted substantially the same proposed rule change to propose the
changes described herein. See SR-NYSE-2020-25, SR-NYSEAmer-2020-23,
SR-NYSEArca-2020-26, and SR-NYSENAT-2020-14.
\7\ See 84 FR 58778, supra note 4.
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ICE originally announced that the Data Center would be closed to
third parties for the period from March 16, 2020 through March 29, 2020
(the ``Initial Closure''), to help avoid the spread of COVID-19, which
could negatively impact Data Center functions. Prior to the closure of
the Data Center, the Chief Executive Officer of the Exchange took the
actions required under NYSE Chicago Rule 7.1 to close the co-location
facility of the Exchange to third parties.
ICE has now announced to Users that, because the concerns that led
to the Initial Closure still apply, the closure of the Data Center will
be extended to the earlier of the reopening of the Mahwah, New Jersey
data center (``Data Center'') or May 15, 2020. The date will be
announced through a customer notice.
If a User's equipment requires work while a Rule 7.1 closure is in
effect, the User has to use the Hot Hands service and, absent a waiver,
incurs Hot Hands fees for the work. Given that, the Exchange waived all
Hot Hands fees for the duration of the Initial Closure.\8\ Because the
period has been extended, the Exchange proposes to extend the waiver of
the Hot Hands Fee for the length of the period. To that end, the
Exchange proposes to revise the footnote to the Hot Hands Fee in the
Fee Schedule as follows (deletions bracketed, additions italicized per
OFR):
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\8\ See 85 FR 16434, supra note 5.
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[dagger] Fees for Hot Hands Services will be waived beginning on
March 16, 2020 through [March 29, 2020] the earlier of the reopening of
the Mahwah, New Jersey data center or May 15, 2020.
The Exchange believes that there will be sufficient Data Center
staff on-site to comply with User requests for Hot Hands service.
The proposed extension of the waiver would apply equally to all
Users. The proposed extension of the fee waiver would not apply
differently to distinct types or sizes of market participants. Rather,
it would continue to apply uniformly to all Users.
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 furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\10\ 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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\9\ 15 U.S.C. 78f(b).
\10\ 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.
Given that the closure of the Data Center has been extended, the
Exchange believes that it is reasonable to grant the proposed
corresponding extension of the waiver of the Hot Hands Fee. While a
Rule 7.1 closure is in effect, User representatives are not allowed
access to the Data Center. If a User's equipment
[[Page 19193]]
requires work during such period, the User has to use the Hot Hands
service. Absent a waiver, the User would incur Hot Hands fees for the
work.
The proposed extension of the waiver would allow a User to have
work carried out on its equipment notwithstanding the closure of the
Data Center without incurring Hot Hands fees.
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 proposed extension of the waiver would apply equally to all
Users. The proposed extension would not apply differently to distinct
types or sizes of market participants. Rather, it would apply uniformly
to all Users.
The Exchange believes that the proposal is equitable because the
extension of the waiver would mean that for the duration of the closure
of the Data Center all similarly-situated Users would not be charged a
fee to use the Hot Hands service.
The Proposed Change Is Not Unfairly Discriminatory and Would Protect
Investors and the Public Interest
The Exchange believes that the proposed change is not unfairly
discriminatory for the following reasons.
The proposed extension of the waiver would not apply differently to
distinct types or sizes of market participants. Rather, all Users whose
equipment requires work during the extension of the Data Center closure
would have the resulting fees waived, and the extension of the waiver
would apply uniformly to all Users during the period. For the reasons
above, the proposed changes do not unfairly discriminate between or
among market participants.
In addition, 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 because it would allow a User to have work carried out on its
equipment notwithstanding a Rule 7.1 closure without incurring Hot
Hands fees. Accordingly, the Exchange believes that the requested
extension of the waiver is designed to perfect the mechanisms of a free
and open market and a national market system and, in general, protect
investors and the public interest by facilitating the uninterrupted
availability of Users' equipment.
For all of the above 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,\11\ 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.
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\11\ 15 U.S.C. 78f(b)(8).
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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 extension of the waiver is not designed to affect
competition, but rather to provide relief to Users that, while a Rule
7.1 closure is in effect, have no option but to use the Hot Hands
service.
The proposed extension of the waiver would not apply differently to
distinct types or sizes of market participants. Rather, all Users whose
equipment requires work during the extension of the Data Center closure
would have the resulting fees waived, and the extension of the waiver
would apply uniformly to all Users during the period.
Intermarket Competition
The Exchange does not believe that the proposed change would impose
any burden on intermarket competition that is not necessary or
appropriate.
The Exchange believes that the proposed change would not affect the
competitive landscape among the national securities exchanges, as the
Hot Hands service is solely charged within co-location to existing
Users, and would be temporary.
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 foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \12\ of the Act and subparagraph (f)(2) of Rule
19b-4 \13\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(2).
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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) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSECHX-2020-10 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-NYSECHX-2020-10. 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
[[Page 19194]]
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-
NYSECHX-2020-10 and should be submitted on or before April 27, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-07078 Filed 4-3-20; 8:45 am]
BILLING CODE 8011-01-P
