Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change for an Extension of the Temporary Waiver of the Co-Location “Hot Hands” Fee, 19179-19181 [2020-07079]
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Federal Register / Vol. 85, No. 66 / Monday, April 6, 2020 / Notices
with the requirements of 39 CFR
3007.301.1
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern market dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3010, and 39
CFR part 3020, subpart B. For request(s)
that the Postal Service states concern
competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3015, and
39 CFR part 3020, subpart B. Comment
deadline(s) for each request appear in
section II.
II. Docketed Proceeding(s)
1. Docket No(s).: MC2020–111 and
CP2020–117; Filing Title: USPS Request
to Add Priority Mail Contract 602 to
Competitive Product List and Notice of
Filing Materials Under Seal; Filing
Acceptance Date: March 31, 2020; Filing
Authority: 39 U.S.C. 3642, 39 CFR
3020.30 et seq., and 39 CFR 3015.5;
Public Representative: Christopher C.
Mohr; Comments Due: April 8, 2020.
2. Docket No(s).: MC2020–112 and
CP2020–118; Filing Title: USPS Request
to Add Priority Mail Contract 603 to
Competitive Product List and Notice of
Filing Materials Under Seal; Filing
Acceptance Date: March 31, 2020; Filing
Authority: 39 U.S.C. 3642, 39 CFR
3020.30 et seq., and 39 CFR 3015.5;
Public Representative: Christopher C.
Mohr; Comments Due: April 8, 2020.
This Notice will be published in the
Federal Register.
Erica A. Barker,
Secretary.
[FR Doc. 2020–07124 Filed 4–3–20; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88523; File No. SR–
NYSEAMER–2020–23]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
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 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, 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 an extension
of the temporary waiver of the colocation ‘‘Hot Hands’’ fee. The proposed
change is available on the Exchange’s
website at www.nyse.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes an extension
of the temporary waiver of the co1 See Docket No. RM2018–3, Order Adopting
Final Rules Relating to Non-Public Information,
June 27, 2018, Attachment A at 19–22 (Order No.
4679).
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1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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19179
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
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.
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 American Rules 7.1E and
901NY to close the co-location facility
of the Exchange to third parties.
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).
5 See Securities Exchange Act Release No. 88403
(March 17, 2020), 85 FR 16400 (March 23, 2020)
(SR–NYSEAMER–2020–19).
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 Securities Exchange Act
Release No. 76009 (September 29, 2015), 80 FR
60213 (October 5, 2015) (SR–NYSEMKT–2015–67).
As specified in the NYSE American Equities Price
List and Fee Schedule and the NYSE American
Options Fee Schedule (together, 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). Each
Affiliate SRO has submitted substantially the same
proposed rule change to propose the changes
described herein. See SR–NYSE–2020–25, SR–
NYSEArca–2020–26, SR–NYSECHX–2020–10, and
SR–NYSENAT–2020–14.
7 See Securities Exchange Act Release No. 72719
(July 30, 2014), 79 FR 45502 (August 5, 2014) (SR–
NYSEMKT–2014–61).
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19180
Federal Register / Vol. 85, No. 66 / Monday, April 6, 2020 / Notices
jbell on DSKJLSW7X2PROD with NOTICES
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 Rules 7.1E and 901NY 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 and Fee Schedule 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
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
8 See
85 FR 16400, supra note 5.
U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4) and (5).
9 15
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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 Rules 7.1E and 901NY closure is in
effect, User representatives are not
allowed access to the Data Center. If a
User’s equipment 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
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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
Rules 7.1E and 901NY 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.
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 Rules 7.1E and 901NY 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.
11 15
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U.S.C. 78f(b)(8).
06APN1
Federal Register / Vol. 85, No. 66 / Monday, April 6, 2020 / Notices
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–413
thereunder, because it establishes a due,
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
jbell on DSKJLSW7X2PROD with NOTICES
• 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–2020–23 on the subject
line.
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–2020–23 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. 2020–07079 Filed 4–3–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: To Be Published.
PREVIOUSLY ANNOUNCED TIME AND DATE OF
THE MEETING: Wednesday, April 8, 2020
Paper Comments
at 3:00 p.m.
• 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–2020–23. This
file number should be included on the
CHANGES IN THE MEETING:
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
14 15 U.S.C. 78s(b)(2)(B).
The Closed
Meeting scheduled for Wednesday,
April 8, 2020 at 3:00 p.m. has been
changed to Wednesday, April 8, 2020 at
2:00 p.m.
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed, please contact the
13 17
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CFR 200.30–3(a)(12).
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19181
Office of the Secretary at (202) 551–
5400.
Dated: April 1, 2020.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020–07259 Filed 4–2–20; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
Notice is hereby given,
pursuant to the provisions of the
Government in the Sunshine Act, Public
Law 94–409, the Securities and
Exchange Commission will hold an
Open Meeting on Wednesday, April 8,
2020 at 3:00 p.m.
TIME AND DATE:
The meeting will be held via
remote means and/or at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
PLACE:
This meeting will begin at 3:00
p.m. (ET) and will be open to the public
via audio webcast only on the
Commission’s website at www.sec.gov.
STATUS:
The
Commission will consider whether to
adopt rule and form amendments that
would improve access to capital and
facilitate investor communications by
business development companies,
which primarily invest in small and
developing companies, and registered
closed-end investment companies. The
Commission will consider these
amendments, in part, to implement
certain provisions of the Small Business
Credit Availability Act and the
Economic Growth, Regulatory Relief,
and Consumer Protection Act.
Specifically, the Commission will
consider whether to modify the
registration, communications, and
offering processes for business
development companies and other
closed-end investment companies under
the Securities Act of 1933, as well as
related rule and form amendments
under the Investment Company Act of
1940 to tailor the disclosure and
regulatory framework to these
investment companies. The Commission
also will consider whether to adopt rule
and form amendments to modernize
securities registration fee payments for
certain registrants.
MATTERS TO BE CONSIDERED:
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed, please contact
Vanessa A. Countryman, Office of the
Secretary, at (202) 551–5400.
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]]>Agencies
[Federal Register Volume 85, Number 66 (Monday, April 6, 2020)]
[Notices]
[Pages 19179-19181]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07079]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88523; File No. SR-NYSEAMER-2020-23]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed 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 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,
II, and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes an extension of the temporary waiver of the
co-location ``Hot Hands'' fee. The proposed change is available on the
Exchange's website at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes 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 2010. See Securities Exchange Act Release No.
62961 (September 21, 2010), 75 FR 59299 (September 27, 2010) (SR-
NYSEAmex-2010-80).
\5\ See Securities Exchange Act Release No. 88403 (March 17,
2020), 85 FR 16400 (March 23, 2020) (SR-NYSEAMER-2020-19).
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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 Securities
Exchange Act Release No. 76009 (September 29, 2015), 80 FR 60213
(October 5, 2015) (SR-NYSEMKT-2015-67). As specified in the NYSE
American Equities Price List and Fee Schedule and the NYSE American
Options Fee Schedule (together, 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). Each Affiliate SRO has submitted substantially the same
proposed rule change to propose the changes described herein. See
SR-NYSE-2020-25, SR-NYSEArca-2020-26, SR-NYSECHX-2020-10, and SR-
NYSENAT-2020-14.
\7\ See Securities Exchange Act Release No. 72719 (July 30,
2014), 79 FR 45502 (August 5, 2014) (SR-NYSEMKT-2014-61).
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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 American Rules 7.1E and 901NY to close the
co-location facility of the Exchange to third parties.
[[Page 19180]]
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 Rules 7.1E and 901NY
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 and Fee Schedule as follows (deletions
bracketed, additions italicized):
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\8\ See 85 FR 16400, supra note 5.
---------------------------------------------------------------------------
[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
Rules 7.1E and 901NY closure is in effect, User representatives are not
allowed access to the Data Center. If a User's equipment 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 Rules 7.1E and 901NY 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 Rules
7.1E and 901NY 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.
[[Page 19181]]
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-NYSEAMER-2020-23 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-2020-23. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEAMER-2020-23 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. 2020-07079 Filed 4-3-20; 8:45 am]
BILLING CODE 8011-01-P
