Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Services Available to Users That Use Co-location Services in the Mahwah, New Jersey Data Center, 34472-34477 [2020-12017]
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Federal Register / Vol. 85, No. 108 / Thursday, June 4, 2020 / Notices
applicant and the applicant’s
investment adviser.
Filing Date: The application was filed
on March 11, 2020.
Applicant’s Address: jdamon@
eatonvance.com.
Eaton Vance Ohio Municipal Income
Trust [File No. 811–09149]
Summary: Applicant, a closed-end
investment company, seeks an order
declaring that it has ceased to be an
investment company. The applicant has
transferred its assets to Eaton Vance
Municipal Income Trust and, on January
18, 2019, made a final distribution to its
shareholders based on net asset value.
Expenses of approximately $53,456
incurred in connection with the
reorganization were paid by the
applicant.
Filing Date: The application was filed
on February 28, 2020.
Applicant’s Address: jdamon@
eatonvance.com.
Eaton Vance Pennsylvania Municipal
Bond Fund [File No. 811–21227]
Summary: Applicant, a closed-end
investment company, seeks an order
declaring that it has ceased to be an
investment company. The applicant has
transferred its assets to Eaton Vance
Municipal Bond Fund and, on January
18, 2019, made a final distribution to its
shareholders based on net asset value.
Expenses of approximately $53,978
incurred in connection with the
reorganization were paid by the
applicant and applicant’s investment
adviser.
Filing Date: The application was filed
on March 13, 2020.
Applicant’s Address: jdamon@
eatonvance.com.
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Eaton Vance Pennsylvania Municipal
Income Trust [File No. 811–09151]
Summary: Applicant, a closed-end
investment company, seeks an order
declaring that it has ceased to be an
investment company. The applicant has
transferred its assets to Eaton Vance
Municipal Income Trust and, on January
18, 2019, made a final distribution to its
shareholders based on net asset value.
Expenses of approximately $48,323
incurred in connection with the
reorganization were paid by the
applicant.
Filing Date: The application was filed
on February 28, 2020.
Applicant’s Address: jdamon@
eatonvance.com.
Engex, Incorporated [File No. 811–
01639]
Summary: Applicant, a closed-end
investment company, seeks an order
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17:24 Jun 03, 2020
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declaring that it has ceased to be an
investment company. On August 29,
2019, applicant made a final liquidating
distribution to its shareholders based on
net asset value. Expenses of $90,116
incurred in connection with the
liquidation were paid by applicant.
Applicant also has retained $18,531 in
a Federated US Treasury Reserve Fund
for the purpose of paying outstanding
debts.
Filing Dates: The application was
filed on August 31, 2018, and amended
on November 22, 2019 and May 26,
2020.
Applicant’s Address: msiciliano@
dhblair.com.
Nuveen Connecticut Quality Municipal
Income Fund [File No. 811–07606]
Summary: Applicant, a closed-end
investment company, seeks an order
declaring that it has ceased to be an
investment company. The applicant has
transferred its assets to Nuveen AMTFree Municipal Credit Income Fund
and, on November 15, 2019, made a
final distribution to its shareholders
based on net asset value. Expenses of
$601,677 incurred in connection with
the reorganization were paid by the
applicant.
Filing Date: The application was filed
on March 12, 2020.
Applicant’s Address: dglatz@
stradley.com.
Nuveen Emerging Markets Debt 2025
Term Fund [File No. 811–23335]
Summary: Applicant, a closed-end
investment company, seeks an order
declaring that it has ceased to be an
investment company. Applicant has
never made a public offering of its
securities and does not propose to make
a public offering or engage in business
of any kind.
Filing Date: The application was filed
on March 10, 2020.
Applicant’s Address: dglatz@
stradley.com.
Nuveen North Carolina Quality
Municipal Income Fund [File No. 811–
07608]
Summary: Applicant, a closed-end
investment company, seeks an order
declaring that it has ceased to be an
investment company. The applicant has
transferred its assets to Nuveen AMTFree Quality Municipal Income Fund
and, on November 15, 2019, made a
final distribution to its shareholders
based on net asset value. Expenses of
$611,734 incurred in connection with
the reorganization were paid by the
applicant.
Filing Date: The application was filed
on March 12, 2020.
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Applicant’s Address: dglatz@
stradley.com.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–12006 Filed 6–3–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34-88972; File No. SR–
NYSECHX–2020–18]
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Services
Available to Users That Use Colocation Services in the Mahwah, New
Jersey Data Center
May 29, 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 May 22,
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 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
services available to Users that use colocation services in the Mahwah, New
Jersey data center to add the NMS
network to connect to the NMS feeds.
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
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 85, No. 108 / Thursday, June 4, 2020 / Notices
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
Overview
The Exchange proposes to amend its
co-location services 4 to provide Users 5
with an alternate, dedicated network
connection to access the NMS feeds (the
‘‘NMS network’’) for which the
Securities Industry Automation
Corporation (‘‘SIAC’’) is engaged as the
securities information processor (‘‘SIP’’).
The Commission recently approved
similar filings by each Affiliate SRO.6
As described below, today Users can
connect to Regulation NMS equities and
options feeds 7 disseminated by the SIP
using either one of two co-location local
area networks. Currently, a User would
need to purchase a service that includes
either a 10 Gigabit (‘‘Gb’’) or 40 Gb
connection to access a local area
network in order to connect to the NMS
feeds.8 Users do not pay an additional
charge to connect to the NMS feeds: It
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4 The
Exchange initially filed rule changes
relating to its co-location services with the
Commission in 2019. See Securities Exchange Act
Release No. 87408 (October 28, 2019), 84 FR 58778
(November 1, 2019) (SR–NYSECHX–2019–12). 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. Id. at note 6. As specified in the
Fee Schedule of NYSE Chicago (the ‘‘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.
6 See Securities Exchange Act Release No. 88837
(May 7, 2020) (‘‘Approval Order’’), approving
Securities Exchange Act Release Nos. 87927
(January 9, 2020), 85 FR 2468 (January 15, 2020)
(SR–NYSE–2019–46); 87929 (January 9, 2020), 85
FR 2453 (January 15, 2020) (SR–NYSEAmer–2019–
34); 87928 (January 9, 2020), 85 FR 2447 (January
15, 2020) (SR–NYSEArca–2019–61); and 87930
(January 9, 2020), 85 FR 2459 (January 15, 2020)
(SR–NYSENAT–2019–19) (Notices of filing
Amendment No. 1).
7 The NMS feeds include the Consolidated Tape
System and Consolidated Quote System data
streams, as well as Options Price Reporting
Authority (‘‘OPRA’’) feeds.
8 Because of the volume of data, a 1 Gb
connection is not sufficient to connect to an NMS
feed.
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comes with their connection to the local
area network.
The Exchange has been authorized to
build the NMS network in the Mahwah
data center that will only connect to the
NMS feeds. The new network will
connect to the NMS feeds faster than
either of the existing local area
networks. Because a User currently
needs to purchase a service that
includes access to one of the two local
area networks in the data center via
either a 10 Gb or 40 Gb connection to
connect to the NMS feeds, the Exchange
proposes to expand that service to
include the option to also connect to the
NMS network via a same-sized
connection at no additional charge.
Accordingly, with this proposed rule
change, Users will have the option to
use the NMS network or either of the
existing local area networks to connect
to the NMS feeds. The Exchange is not
proposing any changes to its fees.
Because the NMS network has been
built and tested and is ready to be
implemented, subject to effectiveness of
this proposed rule change, the Exchange
proposes to implement the NMS
network as soon as practicable. The
Exchange will announce the
implementation date through a
customer notice.
Background
The Exchange’s affiliate, SIAC, is
engaged as the SIP for three separate
Regulation NMS plans (collectively, the
‘‘NMS Plans’’).9 SIAC operates as the
SIP for the NMS Plans in the same data
center where the Exchange and its
Affiliate SROs operate. In that data
center, Users can access SIAC as the SIP
over the same network connections
through which they access other
services. Specifically, a User can access
the SIAC SIP environment via either the
internet protocol (‘‘IP’’) network or the
Liquidity Center Network (‘‘LCN’’),
which are the local area networks in the
data center.10
9 SIAC has been engaged as the SIP to, among
other things, receive, process, validate and
disseminate: (1) Last-sale price information in Tape
A and Tape B-listed securities pursuant to the CTA
Plan (‘‘CTA Plan’’), which is available here: https://
www.nyse.com/publicdocs/ctaplan/notifications/
trader-update/CTA%20Plan%20-%20Composite
%20as%20of%20August%2027,%202018.pdf; (2)
quotation information in Tape A and B-listed
securities pursuant to the CQ Plan (‘‘CQ Plan’’),
which is available here: https://www.nyse.com/
publicdocs/ctaplan/notifications/trader-update/
CQ_Plan_Composite_as_of_July_9_2018.pdf; and (3)
quotation and last-sale price information in all
exchange options trading pursuant to the OPRA
Plan (‘‘OPRA Plan’’), which is available here:
https://uploads-ssl.webflow.com/5ba40927
ac854d8c97bc92d7/5bf419a6b7c4f5085340f9af_
opra_plan.pdf.
10 See 84 FR 58778, supra note 5, at 58780.
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The Exchange offers Users
connectivity to the SIAC SIP
environment at no additional charge
when a User purchases access to a 10 Gb
or 40 Gb LCN or IP network.11 In
connection with the services available
over the local area networks, the SIAC
feeds are referred to as the ‘‘NMS
feeds.’’ As described in General Note 4
of the Fee Schedule, when a User
purchases access to the LCN or IP
network, it receives connectivity to
certain market data products (the
‘‘Included Data Products’’) that it
selects, subject to technical provisioning
requirements and authorization from the
provider of the data feed. The NMS
feeds are included in the list of the
Included Data Products that come with
connections to the LCN or IP network.
The remaining Included Data Products
are proprietary feeds of the Exchange
and its Affiliate SROs (together, the
‘‘NYSE Exchanges’’).
A User that purchases access to the
LCN or IP network also receives the
ability to access the trading and
execution systems of the NYSE
Exchanges (the ‘‘Exchange Systems’’)
and the trading and execution systems
of OTC Global, an alternative trading
system (‘‘ATS’’), subject, in each case, to
authorization by the relevant entity.12
Accordingly, without paying an
additional connectivity fee, a User that
purchases access to either the LCN or IP
network can use such network to:
1. Access the trading and execution
services of five registered exchanges
(five equities markets, two options
markets, and a fixed income market)
and an ATS;
2. Connect to the market data of five
registered exchanges (five equities
exchanges, two options markets, and a
fixed income market); and
3. Connect to the NMS feeds.
A User may connect to the NMS feeds
through the IP network or LCN. Until
recently the operating committee for the
CTA and CQ Plans (‘‘CTA/CQ Plans’’)
mandated use of the IP network to
access the NMS feeds.13 As a result, all
LCN connections to the NMS feeds go
through the IP network before reaching
11 The range of LCN and IP network connectivity
options, including the bandwidth and latency
profile of the applicable networks, are described on
the Fee Schedule.
12 See id. Information regarding the Included Data
Products is currently set forth in the second
paragraph of General Note 4.
13 The Operating Committee of the CTA/CQ Plans
mandated the use of the IP network to access the
NMS feeds because the IP network was built as a
secure network designed for resiliency and
redundancy.
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Federal Register / Vol. 85, No. 108 / Thursday, June 4, 2020 / Notices
the NMS feeds,14 and so using the LCN
to connect to an NMS feed is slower
than using the IP network.15
Alternate, Dedicated Network
Connection for NMS Feeds
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As the SIP for the NMS Plans, SIAC
continually assesses the services it
provides and has been working with the
operating committees of the NMS Plans
and the industry-based advisory
committee to the CTA/CQ Plans to
identify potential performance
enhancements. Among other initiatives,
this group identified that, because the IP
network was not designed as a lowlatency network, the requirement to use
the IP network to access the NMS feeds
introduces a layer of latency.
To reduce network latency, the
Exchange sought and received approval
from the operating committees for the
CTA/CQ Plans to build an alternate to
the LCN and IP network to connect to
the NMS feeds.16 As approved by the
CTA/CQ Plans, the Exchange built the
NMS network, a low-latency network in
the data center that will provide Users
with dedicated access to the NMS
feeds.17
The Exchange currently anticipates
that the low-latency network will have
a one-way reduction in latency to access
the NMS feeds from the IP network and
LCN of over 140 microseconds.
Consistent with the current
bandwidth needs to connect to the NMS
feeds, connections to the NMS network
will be available in 10 Gb and 40 Gb
circuits. Because the NMS network will
be an alternate network to access the
NMS feeds, once it is available, Users
would have the choice between
continuing to use the LCN or IP network
to connect to NMS feeds or switching to
the NMS network.
Even though the NMS network will
provide access only to the NMS feeds,
the Exchange is funding the build of the
NMS network and is not being
reimbursed for such expenses by either
CTA or OPRA. The Exchange’s capital
expenditure costs for the build are
estimated to be $3.8 million, which
includes procurement of new lowlatency network switches, network
devices, and analytics tools and the onetime operational expenditures to build
this new network. In addition to this
initial estimated approximately $3.8
million outlay, the Exchange anticipates
that the ongoing costs to maintain and
operate the NMS network will be
approximately $215,000 annually.
Proposed Amendment To Add the NMS
Network
The proposed structure for the NMS
network has been designed so that the
services available in co-location would
be expanded so that a User can opt to
connect to the NMS network at no
additional charge.
To effect the proposed change, the
Exchange proposes to amend the
services available in co-location to
provide that if a User purchases a
service that includes a 10 Gb or 40 Gb
connection to access either local area
network, that access would include a
connection to the NMS network of the
same size. Although the Exchange is
funding and expanding the types of
local area network connections that
would be available in the data center,
the Exchange does not propose to
change any of the fees related to
purchasing a service that includes a
connection to a local area network.
More specifically, the services
available in co-location currently
include LCN Access, IP Network
Access, and Partial Cabinet Solution
bundles. In order to implement the
proposed change, the Exchange
proposes the following amendments to
Exchange Rules that describe the
following services in co-location:
• In the column titled ‘‘Type of
Service,’’ the Exchange proposes to
amend the text describing the 10 Gb and
40 Gb LCN and IP Network Access
options to include text referencing the
NMS network.
• In the column titled ‘‘Description,’’
the Exchange proposes to amend the
descriptions of the 10 Gb LX LCN
Circuit, 40 Gb LCN Circuit, Partial
Cabinet Solution bundle Option C and
Option D, 10 Gb IP Network Circuit and
40 Gb IP Network Circuit to include text
referencing the specific NMS Network
connection that would be part of the
service. In addition, because the
descriptions of the LCN and IP network
services do not currently reference
either ‘‘LCN’’ or ‘‘IP Network,’’
respectively, the Exchange proposes to
add text references as applicable.
• Finally, the Exchange proposes to
amend text in the column titled
‘‘Amount of Charge’’ to specify that the
current initial and monthly recurring
charges would not change and that for
purposes of such charges, the existing
local area network connection and NMS
network connection would be together
considered one connection. These text
changes would make clear that Users
would not be subject to two initial or
two monthly charges. The Partial
Cabinet Solution bundle description
already indicates that the charges are
‘‘per bundle’’ and therefore no similar
clarifying language is proposed.
The Exchange proposes to set forth
these changes as follows (proposed new
text italicized and proposed text for
deletion in brackets):
Type of service
Description
Amount of charge
LCN and NMS Network Access .................
10 Gb LX LCN Circuit and 10 Gb NMS
Network Circuit.
LCN and NMS Network Access .................
40 Gb LCN Circuit and 40 Gb NMS Network Circuit.
$15,000 initial charge per connection [initial charge] to
both the LCN and NMS Network plus $22,000
monthly charge per connection to both the LCN and
NMS Network.
For purposes of these charges, the LCN Circuit and
NMS Network Circuit are together considered to be
one connection, and so Users are not subject to two
initial or two monthly charges.
$15,000 initial charge per connection [initial charge] to
both the LCN and NMS Network plus $22,000
monthly charge per connection to both the LCN and
NMS Network.
14 By contrast, the LCN does not connect to the
IP network for access to the Exchange Systems or
connectivity to the other Included Data Products.
15 A User that uses the LCN to connect to an NMS
feed does not need to separately purchase an IP
network connection.
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16 The alternate network to access the NMS feeds
will not be available outside of the data center.
17 Because SIAC, as the SIP for the NMS Plans,
is also responsible for collecting data from the
participants of the CTA/CQ Plans and members of
the OPRA Plan, Users that are participants of the
applicable NMS Plans could use this alternate
network connection for purposes of both
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transmitting and receiving data. Users that are not
participants of the NMS Plans could use this
alternate network connection for purposes of
receiving data. This alternate network would not be
available to connect to the other Included Data
Products or to access the Exchange Systems or
Global OTC.
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Federal Register / Vol. 85, No. 108 / Thursday, June 4, 2020 / Notices
Type of service
Partial Cabinet Solution bundles ................
Note: A User and its Affiliates are limited
to one Partial Cabinet Solution bundle at
a time. A User and its Affiliates must
have an Aggregate Cabinet Footprint of
2 kW or less to qualify for a Partial Cabinet Solution bundle. See Note 2 under
‘‘General Notes.’’.
IP Network and NMS Network Access ......
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IP Network and NMS Network Access ......
Description
Amount of charge
No change ................................................
No change ................................................
For purposes of these charges, the LCN Circuit and
NMS Network Circuit are together considered to be
one connection, and so Users are not subject to two
initial or two monthly charges.
No change.
No change.
Option C: ...................................................
1 kW partial cabinet, 1 LCN connection
(10 Gb LX), 1 IP network connection
(10 Gb), 2 NMS Network connections
(10 Gb each), 2 fiber cross connections
and either the Network Time Protocol
Feed or Precision Timing Protocol.
Option D: ...................................................
2 kW partial cabinet, 1 LCN connection
(10 Gb LX), 1 IP network connection
(10 Gb), 2 NMS Network connections
(10 Gb each), 2 fiber cross connections
and either the Network Time Protocol
Feed or Precision Timing Protocol.
10 Gb IP Network Circuit and 10 GB
NMS Network Circuit.
40 Gb IP Network Circuit and 40 Gb
NMS Network Circuit.
As noted above, Users that purchase
access to the LCN or IP Network
currently can use such networks to
connect to the NMS feeds. Once the
NMS Network is available, Users can
continue to use either their existing LCN
or IP Network connection or the new
NMS network connection to connect to
the NMS feeds.
The Exchange proposes to amend the
current General Note 4 to describe what
a User obtains when it purchases a
service that includes access to the LCN,
IP network, or NMS Network.
First, the Exchange proposes to split
current Note 4 into three separate notes.
The first paragraph of current Note 4
would continue to be numbered Note 4,
and would specify which trading and
execution services a User can access
when it purchases a service that
includes access to the LCN or IP
network, which are not changing.
Because the services that a User
purchases may include access to the
NMS network in addition to access to
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No change.
No change.
$10,000 initial charge per connection [initial charge] to
both the IP Network and NMS Network plus $11,000
monthly charge per connection to both the IP Network and NMS Network.
For purposes of these charges, the IP Network Circuit
and NMS Network Circuit are together considered to
be one connection, and so Users are not subject to
two initial or two monthly charges.
$10,000 initial charge per connection [initial charge]to
both the IP Network and NMS Network plus $18,000
monthly charge per connection to both the IP Network and NMS Network.
For purposes of these charges, the IP Network Circuit
and NMS Network Circuit are together considered to
be one connection, and so Users are not subject to
two initial or two monthly charges.
the LCN or IP network, the Exchange
proposes a non-substantive amendment
to the first sentence of this note to add
the phrase ‘‘a service that includes.’’
Second, the Exchange proposes that
the current second paragraph of Note 4
and following table would be
renumbered as Note 5. As the paragraph
does currently, Note 5 would specify the
Included Data Products that a User can
connect to if it purchases a service that
includes access to the LCN or IP
network. Similar to the proposed
amendment to the first sentence of Note
4, the Exchange proposes a nonsubstantive amendment to add the
phrase ‘‘a service that includes’’ to the
first sentence of new Note 5. In
addition, the Exchange proposes a nonsubstantive amendment to the table to
clarify that the NMS feeds are the CTA,
CQ, and OPRA feeds.
Finally, the Exchange proposes new
Note 6, which would describe in more
detail the NMS network. As proposed,
Note 6 would provide that when a User
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purchases a service that includes access
to the NMS Network, upon its request
it would receive connectivity to the
NMS network and any of the NMS feeds
that it selects, subject to any technical
provisioning requirements and
authorization from the provider of the
data feed. Consistent with existing Note
4 (proposed Note 5), Note 6 would
provide that market data fees for the
NMS feeds would be charged by the
provider of the NMS data feed. The
proposed note would further state that
the NMS Network would provide
connectivity to the NMS feeds only.
Expected Application of the Proposed
Change
The proposed NMS network would be
available to all Users that purchase a
service that includes a 10 Gb or 40 Gb
connection to access either the LCN or
IP network, which are the networks
currently available to provide
connections to the NMS feeds.
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General
The Exchange believes that the
proposed change to include access to
the NMS network as part of existing
services available in co-location would
remove impediments to, and perfect the
mechanisms of, a free and open market
and a national market system and, in
general, protect investors and the public
interest because, by offering access to
the dedicated, low-latency NMS
network, the Exchange will be providing
Users with an additional option to
connect to the NMS feeds. Until
recently, SIAC was required to provide
connectivity to the NMS feeds via only
the IP network. As recently approved by
the operating committees for the CTA/
CQ Plans, SIAC is now authorized to
offer connectivity to the NMS feeds in
the data center via an alternate,
dedicated, low-latency NMS network.
The proposed NMS network has been
designed consistent with this directive
and will provide greater choice to Users
that are seeking a low-latency network
to connect to the NMS feeds. In
addition, the proposed rule change is
identical to the proposals approved for
the Affiliate SROs.22 The proposal
therefore would provide market
participants the ability to obtain
consolidated market data in a more
timely manner, which would enhance
the utility of this critical component of
the national market system for the
benefit of market participants and
investors that rely upon access to
consolidated market data to effectuate
trades and otherwise have confidence in
the efficiency and integrity of that
system.
For these reasons, the Exchange
believes that the proposal is consistent
with the Act.
As is the case with all Exchange colocation arrangements, (i) neither a User
nor any of the User’s customers would
be permitted to submit orders directly to
the Exchange unless such User or
customer is a member organization, a
Sponsored Participant or an agent
thereof (e.g., a service bureau providing
order entry services); (ii) use of the colocation services proposed herein would
be completely voluntary and available
to all Users on a non-discriminatory
basis; 18 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.19
2. Statutory Basis
khammond on DSKJM1Z7X2PROD with NOTICES
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,20 in general, and
furthers the objectives of Sections
6(b)(5) of the Act,21 in particular,
because it is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to,
and perfect the mechanisms of, a free
and open market and a national market
system and, in general, to protect
investors and the public interest and
because it is not designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
18 As is currently the case, Users that receive colocation services from the Exchange will not receive
any means of access to the Exchange’s trading and
execution systems that is separate from, or superior
to, that of other Users. In this regard, all orders sent
to the Exchange enter the Exchange’s trading and
execution systems through the same order gateway,
regardless of whether the sender is co-located in the
data center or not. In addition, co-located Users do
not receive any market data or data service product
that is not available to all Users, although Users that
receive co-location services normally would expect
reduced latencies in sending orders to, and
receiving market data from, the Exchange.
19 See 84 FR 58778, supra note 5, at 58779. The
NYSE, NYSE American, NYSE Arca, and NYSE
National rule changes approved by the Commission
in the Approval Order all contained substantially
the same changes described herein. See Securities
Exchange Act Release Nos. Nos. 87927 (January 9,
2020), 85 FR 2468 (January 15, 2020) (SR–NYSE–
2019–46); 87929 (January 9, 2020), 85 FR 2453
(January 15, 2020) (SR–NYSEAmer–2019–34);
87928 (January 9, 2020), 85 FR 2447 (January 15,
2020) (SR–NYSEArca–2019–61); and 87930
(January 9, 2020), 85 FR 2459 (January 15, 2020)
(SR–NYSENAT–2019–19) (Notices of filing
Amendment No. 1).
20 15 U.S.C. 78f(b).
21 15 U.S.C. 78f(b)(5).
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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 that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that the proposed
rule change would not impose any
burden on competition because it is not
designed to address any competitive
issues. As described above, SIAC is the
single plan processor for Tape A and B
equities securities and all options
securities and does not currently
compete with any other providers for
these processor services. The proposed
rule change would amend the services
available in co-location to include the
NMS network when a User purchases a
10 Gb or 40 Gb connection to access
either local area network service.
22 See
PO 00000
Approval Order, supra note 6.
Frm 00080
Fmt 4703
Sfmt 4703
Accordingly, the proposed rule change
would expand the services available in
co-location without changing any fees
for the existing services, or adding fees
for the expanded services. All Users
would have access to the NMS network
and it would be their choice of whether
and at what level to subscribe to such
services, including whether to utilize
the NMS network connection.
Accordingly, the Exchange does not
believe that the proposed rule change
would place any User at a relative
disadvantage compared to other Users.
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 23 and Rule
19b–4(f)(6) thereunder.24 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 25 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),26 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has requested the Commission
to waive the 30-day operative delay so
that the proposal may become operative
immediately upon filing. The Exchange
believes that such waiver would be
consistent with the protection of
investors and the public interest
because the waiver of the operative
delay would allow the Exchange to
provide Users with access to the NMS
network on the same schedule as the
Affiliate SROs, for which the proposed
23 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
25 17 CFR 240.19b–4(f)(6).
26 17 CFR 240.19b–4(f)(6)(iii).
24 17
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Federal Register / Vol. 85, No. 108 / Thursday, June 4, 2020 / Notices
rule change has already been approved
in the Approval Order. The Exchange
notes that the technology for the NMS
network was available in production on
May 18, 2020. The Exchange states that
waiver of the operative delay would
allow the Exchange to implement the
NMS network without delay, thus
enhancing the performance of the CTA/
CQ and OPRA SIPs. For those reasons,
the Commission believes that waiving
the 30-day operative delay is consistent
with the protection of investors and the
public interest. Accordingly, the
Commission waives the 30-day
operative delay and designates the
proposed rule change operative upon
filing.27
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) 28 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
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–NYSECHX–2020–18 and
should be submitted on or before June
25, 2020.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
J. Matthew DeLesDernier,
Assistant Secretary.
khammond on DSKJM1Z7X2PROD with NOTICES
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSECHX–2020–18 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–2020–18. 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
27 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
28 15 U.S.C. 78s(b)(2)(B).
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[FR Doc. 2020–12017 Filed 6–3–20; 8:45 am]
BILLING CODE 8011–01–P
SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA–2020–0004]
Privacy Act of 1974; System of
Records
Office of Retirement and
Disability Policy, Social Security
Administration (SSA).
ACTION: Notice of a modified system of
records.
AGENCY:
In accordance with the
Privacy Act, we are issuing public
notice of our intent to modify an
existing system of records entitled,
Electronic Disability Claim File (60–
0320), hereinafter referred to as the eDib
Claim File, last published on December
22, 2003. This notice publishes details
of the modified system as set forth
below under the caption,
SUPPLEMENTARY INFORMATION.
SUMMARY:
29 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00081
Fmt 4703
Sfmt 4703
34477
The system of records notice
(SORN) is applicable upon its
publication in today’s Federal Register,
with the exception of the routine uses,
which are effective July 6, 2020. We
invite public comment on the routine
uses or other aspects of this SORN. In
accordance with 5 U.S.C. 552a(e)(4) and
(e)(11), the public is given a 30-day
period in which to submit comments.
Therefore, please submit any comments
by July 6, 2020.
ADDRESSES: The public, Office of
Management and Budget (OMB), and
Congress may comment on this
publication by writing to the Executive
Director, Office of Privacy and
Disclosure, Office of the General
Counsel, SSA, Room G–401 West High
Rise, 6401 Security Boulevard,
Baltimore, Maryland 21235–6401, or
through the Federal e-Rulemaking Portal
at https://www.regulations.gov, please
reference docket number SSA–2020–
0004. All comments we receive will be
available for public inspection at the
above address and we will post them to
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Anthony Tookes, Government
Information Specialist, Privacy
Implementation Division, Office of
Privacy and Disclosure, Office of the
General Counsel, SSA, Room G–401
West High Rise, 6401 Security
Boulevard, Baltimore, Maryland 21235–
6401, telephone: (410) 966–5855, email:
Anthony.Tookes@ssa.gov.
SUPPLEMENTARY INFORMATION: We are
modifying the system of records name
from ‘‘eDib Claim File, Social Security
Administration, Deputy Commissioner
for Disability and Income Security
Programs’’ to ‘‘Electronic Disability
(eDib) Claim File’’ to accurately reflect
the system. We are modifying the
system manager to clarify the name of
the office.
In addition, we are clarifying the
categories of individuals covered by the
system of records and expanding the
categories of records to include vendor
information concerning medical
examiners or medical providers from
whom SSA obtains medical records to
support medical disability
determinations. Specific identifying
information concerning the vendor
could include name, address, telephone
number, tax identification number or
employer identification number.
We are modifying the categories of
records to include beneficiary notice
control number (BNC). Section 2 of the
Social Security Number Fraud
Prevention Act of 2017 (H.R. 624, Pub.
L. 115–59, hereafter referred to as P.L.
115–59), restricts the inclusion of Social
DATES:
E:\FR\FM\04JNN1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 108 (Thursday, June 4, 2020)]
[Notices]
[Pages 34472-34477]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12017]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88972; File No. SR-NYSECHX-2020-18]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Services Available to Users That Use Co-location Services in the
Mahwah, New Jersey Data Center
May 29, 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 May 22, 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
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 the services available to Users that
use co-location services in the Mahwah, New Jersey data center to add
the NMS network to connect to the NMS feeds. 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
[[Page 34473]]
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
Overview
The Exchange proposes to amend its co-location services \4\ to
provide Users \5\ with an alternate, dedicated network connection to
access the NMS feeds (the ``NMS network'') for which the Securities
Industry Automation Corporation (``SIAC'') is engaged as the securities
information processor (``SIP''). The Commission recently approved
similar filings by each Affiliate SRO.\6\
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\4\ The Exchange initially filed rule changes relating to its
co-location services with the Commission in 2019. See Securities
Exchange Act Release No. 87408 (October 28, 2019), 84 FR 58778
(November 1, 2019) (SR-NYSECHX-2019-12). 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. Id. at note 6. As
specified in the Fee Schedule of NYSE Chicago (the ``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.
\6\ See Securities Exchange Act Release No. 88837 (May 7, 2020)
(``Approval Order''), approving Securities Exchange Act Release Nos.
87927 (January 9, 2020), 85 FR 2468 (January 15, 2020) (SR-NYSE-
2019-46); 87929 (January 9, 2020), 85 FR 2453 (January 15, 2020)
(SR-NYSEAmer-2019-34); 87928 (January 9, 2020), 85 FR 2447 (January
15, 2020) (SR-NYSEArca-2019-61); and 87930 (January 9, 2020), 85 FR
2459 (January 15, 2020) (SR-NYSENAT-2019-19) (Notices of filing
Amendment No. 1).
---------------------------------------------------------------------------
As described below, today Users can connect to Regulation NMS
equities and options feeds \7\ disseminated by the SIP using either one
of two co-location local area networks. Currently, a User would need to
purchase a service that includes either a 10 Gigabit (``Gb'') or 40 Gb
connection to access a local area network in order to connect to the
NMS feeds.\8\ Users do not pay an additional charge to connect to the
NMS feeds: It comes with their connection to the local area network.
---------------------------------------------------------------------------
\7\ The NMS feeds include the Consolidated Tape System and
Consolidated Quote System data streams, as well as Options Price
Reporting Authority (``OPRA'') feeds.
\8\ Because of the volume of data, a 1 Gb connection is not
sufficient to connect to an NMS feed.
---------------------------------------------------------------------------
The Exchange has been authorized to build the NMS network in the
Mahwah data center that will only connect to the NMS feeds. The new
network will connect to the NMS feeds faster than either of the
existing local area networks. Because a User currently needs to
purchase a service that includes access to one of the two local area
networks in the data center via either a 10 Gb or 40 Gb connection to
connect to the NMS feeds, the Exchange proposes to expand that service
to include the option to also connect to the NMS network via a same-
sized connection at no additional charge. Accordingly, with this
proposed rule change, Users will have the option to use the NMS network
or either of the existing local area networks to connect to the NMS
feeds. The Exchange is not proposing any changes to its fees.
Because the NMS network has been built and tested and is ready to
be implemented, subject to effectiveness of this proposed rule change,
the Exchange proposes to implement the NMS network as soon as
practicable. The Exchange will announce the implementation date through
a customer notice.
Background
The Exchange's affiliate, SIAC, is engaged as the SIP for three
separate Regulation NMS plans (collectively, the ``NMS Plans'').\9\
SIAC operates as the SIP for the NMS Plans in the same data center
where the Exchange and its Affiliate SROs operate. In that data center,
Users can access SIAC as the SIP over the same network connections
through which they access other services. Specifically, a User can
access the SIAC SIP environment via either the internet protocol
(``IP'') network or the Liquidity Center Network (``LCN''), which are
the local area networks in the data center.\10\
---------------------------------------------------------------------------
\9\ SIAC has been engaged as the SIP to, among other things,
receive, process, validate and disseminate: (1) Last-sale price
information in Tape A and Tape B-listed securities pursuant to the
CTA Plan (``CTA Plan''), which is available here: https://www.nyse.com/publicdocs/ctaplan/notifications/trader-update/CTA%20Plan%20-%20Composite%20as%20of%20August%2027,%202018.pdf; (2)
quotation information in Tape A and B-listed securities pursuant to
the CQ Plan (``CQ Plan''), which is available here: https://www.nyse.com/publicdocs/ctaplan/notifications/trader-update/CQ_Plan_Composite_as_of_July_9_2018.pdf; and (3) quotation and last-
sale price information in all exchange options trading pursuant to
the OPRA Plan (``OPRA Plan''), which is available here: https://uploads-ssl.webflow.com/5ba40927ac854d8c97bc92d7/5bf419a6b7c4f5085340f9af_opra_plan.pdf.
\10\ See 84 FR 58778, supra note 5, at 58780.
---------------------------------------------------------------------------
The Exchange offers Users connectivity to the SIAC SIP environment
at no additional charge when a User purchases access to a 10 Gb or 40
Gb LCN or IP network.\11\ In connection with the services available
over the local area networks, the SIAC feeds are referred to as the
``NMS feeds.'' As described in General Note 4 of the Fee Schedule, when
a User purchases access to the LCN or IP network, it receives
connectivity to certain market data products (the ``Included Data
Products'') that it selects, subject to technical provisioning
requirements and authorization from the provider of the data feed. The
NMS feeds are included in the list of the Included Data Products that
come with connections to the LCN or IP network. The remaining Included
Data Products are proprietary feeds of the Exchange and its Affiliate
SROs (together, the ``NYSE Exchanges'').
---------------------------------------------------------------------------
\11\ The range of LCN and IP network connectivity options,
including the bandwidth and latency profile of the applicable
networks, are described on the Fee Schedule.
---------------------------------------------------------------------------
A User that purchases access to the LCN or IP network also receives
the ability to access the trading and execution systems of the NYSE
Exchanges (the ``Exchange Systems'') and the trading and execution
systems of OTC Global, an alternative trading system (``ATS''),
subject, in each case, to authorization by the relevant entity.\12\
---------------------------------------------------------------------------
\12\ See id. Information regarding the Included Data Products is
currently set forth in the second paragraph of General Note 4.
---------------------------------------------------------------------------
Accordingly, without paying an additional connectivity fee, a User
that purchases access to either the LCN or IP network can use such
network to:
1. Access the trading and execution services of five registered
exchanges (five equities markets, two options markets, and a fixed
income market) and an ATS;
2. Connect to the market data of five registered exchanges (five
equities exchanges, two options markets, and a fixed income market);
and
3. Connect to the NMS feeds.
A User may connect to the NMS feeds through the IP network or LCN.
Until recently the operating committee for the CTA and CQ Plans (``CTA/
CQ Plans'') mandated use of the IP network to access the NMS feeds.\13\
As a result, all LCN connections to the NMS feeds go through the IP
network before reaching
[[Page 34474]]
the NMS feeds,\14\ and so using the LCN to connect to an NMS feed is
slower than using the IP network.\15\
---------------------------------------------------------------------------
\13\ The Operating Committee of the CTA/CQ Plans mandated the
use of the IP network to access the NMS feeds because the IP network
was built as a secure network designed for resiliency and
redundancy.
\14\ By contrast, the LCN does not connect to the IP network for
access to the Exchange Systems or connectivity to the other Included
Data Products.
\15\ A User that uses the LCN to connect to an NMS feed does not
need to separately purchase an IP network connection.
---------------------------------------------------------------------------
Alternate, Dedicated Network Connection for NMS Feeds
As the SIP for the NMS Plans, SIAC continually assesses the
services it provides and has been working with the operating committees
of the NMS Plans and the industry-based advisory committee to the CTA/
CQ Plans to identify potential performance enhancements. Among other
initiatives, this group identified that, because the IP network was not
designed as a low-latency network, the requirement to use the IP
network to access the NMS feeds introduces a layer of latency.
To reduce network latency, the Exchange sought and received
approval from the operating committees for the CTA/CQ Plans to build an
alternate to the LCN and IP network to connect to the NMS feeds.\16\ As
approved by the CTA/CQ Plans, the Exchange built the NMS network, a
low-latency network in the data center that will provide Users with
dedicated access to the NMS feeds.\17\
---------------------------------------------------------------------------
\16\ The alternate network to access the NMS feeds will not be
available outside of the data center.
\17\ Because SIAC, as the SIP for the NMS Plans, is also
responsible for collecting data from the participants of the CTA/CQ
Plans and members of the OPRA Plan, Users that are participants of
the applicable NMS Plans could use this alternate network connection
for purposes of both transmitting and receiving data. Users that are
not participants of the NMS Plans could use this alternate network
connection for purposes of receiving data. This alternate network
would not be available to connect to the other Included Data
Products or to access the Exchange Systems or Global OTC.
---------------------------------------------------------------------------
The Exchange currently anticipates that the low-latency network
will have a one-way reduction in latency to access the NMS feeds from
the IP network and LCN of over 140 microseconds.
Consistent with the current bandwidth needs to connect to the NMS
feeds, connections to the NMS network will be available in 10 Gb and 40
Gb circuits. Because the NMS network will be an alternate network to
access the NMS feeds, once it is available, Users would have the choice
between continuing to use the LCN or IP network to connect to NMS feeds
or switching to the NMS network.
Even though the NMS network will provide access only to the NMS
feeds, the Exchange is funding the build of the NMS network and is not
being reimbursed for such expenses by either CTA or OPRA. The
Exchange's capital expenditure costs for the build are estimated to be
$3.8 million, which includes procurement of new low-latency network
switches, network devices, and analytics tools and the one-time
operational expenditures to build this new network. In addition to this
initial estimated approximately $3.8 million outlay, the Exchange
anticipates that the ongoing costs to maintain and operate the NMS
network will be approximately $215,000 annually.
Proposed Amendment To Add the NMS Network
The proposed structure for the NMS network has been designed so
that the services available in co-location would be expanded so that a
User can opt to connect to the NMS network at no additional charge.
To effect the proposed change, the Exchange proposes to amend the
services available in co-location to provide that if a User purchases a
service that includes a 10 Gb or 40 Gb connection to access either
local area network, that access would include a connection to the NMS
network of the same size. Although the Exchange is funding and
expanding the types of local area network connections that would be
available in the data center, the Exchange does not propose to change
any of the fees related to purchasing a service that includes a
connection to a local area network.
More specifically, the services available in co-location currently
include LCN Access, IP Network Access, and Partial Cabinet Solution
bundles. In order to implement the proposed change, the Exchange
proposes the following amendments to Exchange Rules that describe the
following services in co-location:
In the column titled ``Type of Service,'' the Exchange
proposes to amend the text describing the 10 Gb and 40 Gb LCN and IP
Network Access options to include text referencing the NMS network.
In the column titled ``Description,'' the Exchange
proposes to amend the descriptions of the 10 Gb LX LCN Circuit, 40 Gb
LCN Circuit, Partial Cabinet Solution bundle Option C and Option D, 10
Gb IP Network Circuit and 40 Gb IP Network Circuit to include text
referencing the specific NMS Network connection that would be part of
the service. In addition, because the descriptions of the LCN and IP
network services do not currently reference either ``LCN'' or ``IP
Network,'' respectively, the Exchange proposes to add text references
as applicable.
Finally, the Exchange proposes to amend text in the column
titled ``Amount of Charge'' to specify that the current initial and
monthly recurring charges would not change and that for purposes of
such charges, the existing local area network connection and NMS
network connection would be together considered one connection. These
text changes would make clear that Users would not be subject to two
initial or two monthly charges. The Partial Cabinet Solution bundle
description already indicates that the charges are ``per bundle'' and
therefore no similar clarifying language is proposed.
The Exchange proposes to set forth these changes as follows
(proposed new text italicized and proposed text for deletion in
brackets):
------------------------------------------------------------------------
Type of service Description Amount of charge
------------------------------------------------------------------------
LCN and NMS Network Access.... 10 Gb LX LCN $15,000 initial
Circuit and 10 charge per
Gb NMS Network connection [initial
Circuit. charge] to both the
LCN and NMS Network
plus $22,000 monthly
charge per
connection to both
the LCN and NMS
Network.
For purposes of these
charges, the LCN
Circuit and NMS
Network Circuit are
together considered
to be one
connection, and so
Users are not
subject to two
initial or two
monthly charges.
LCN and NMS Network Access.... 40 Gb LCN Circuit $15,000 initial
and 40 Gb NMS charge per
Network Circuit. connection [initial
charge] to both the
LCN and NMS Network
plus $22,000 monthly
charge per
connection to both
the LCN and NMS
Network.
[[Page 34475]]
For purposes of these
charges, the LCN
Circuit and NMS
Network Circuit are
together considered
to be one
connection, and so
Users are not
subject to two
initial or two
monthly charges.
Partial Cabinet Solution No change........ No change.
bundles.
Note: A User and its No change........ No change.
Affiliates are limited to one
Partial Cabinet Solution
bundle at a time. A User and
its Affiliates must have an
Aggregate Cabinet Footprint
of 2 kW or less to qualify
for a Partial Cabinet
Solution bundle. See Note 2
under ``General Notes.''.
Option C:........ No change.
1 kW partial
cabinet, 1 LCN
connection (10
Gb LX), 1 IP
network
connection (10
Gb), 2 NMS
Network
connections (10
Gb each), 2
fiber cross
connections and
either the
Network Time
Protocol Feed or
Precision Timing
Protocol.
Option D:........ No change.
2 kW partial
cabinet, 1 LCN
connection (10
Gb LX), 1 IP
network
connection (10
Gb), 2 NMS
Network
connections (10
Gb each), 2
fiber cross
connections and
either the
Network Time
Protocol Feed or
Precision Timing
Protocol.
IP Network and NMS Network 10 Gb IP Network $10,000 initial
Access. Circuit and 10 charge per
GB NMS Network connection [initial
Circuit. charge] to both the
IP Network and NMS
Network plus $11,000
monthly charge per
connection to both
the IP Network and
NMS Network.
For purposes of these
charges, the IP
Network Circuit and
NMS Network Circuit
are together
considered to be one
connection, and so
Users are not
subject to two
initial or two
monthly charges.
IP Network and NMS Network 40 Gb IP Network $10,000 initial
Access. Circuit and 40 charge per
Gb NMS Network connection [initial
Circuit. charge]to both the
IP Network and NMS
Network plus $18,000
monthly charge per
connection to both
the IP Network and
NMS Network.
For purposes of these
charges, the IP
Network Circuit and
NMS Network Circuit
are together
considered to be one
connection, and so
Users are not
subject to two
initial or two
monthly charges.
------------------------------------------------------------------------
As noted above, Users that purchase access to the LCN or IP Network
currently can use such networks to connect to the NMS feeds. Once the
NMS Network is available, Users can continue to use either their
existing LCN or IP Network connection or the new NMS network connection
to connect to the NMS feeds.
The Exchange proposes to amend the current General Note 4 to
describe what a User obtains when it purchases a service that includes
access to the LCN, IP network, or NMS Network.
First, the Exchange proposes to split current Note 4 into three
separate notes. The first paragraph of current Note 4 would continue to
be numbered Note 4, and would specify which trading and execution
services a User can access when it purchases a service that includes
access to the LCN or IP network, which are not changing. Because the
services that a User purchases may include access to the NMS network in
addition to access to the LCN or IP network, the Exchange proposes a
non-substantive amendment to the first sentence of this note to add the
phrase ``a service that includes.''
Second, the Exchange proposes that the current second paragraph of
Note 4 and following table would be renumbered as Note 5. As the
paragraph does currently, Note 5 would specify the Included Data
Products that a User can connect to if it purchases a service that
includes access to the LCN or IP network. Similar to the proposed
amendment to the first sentence of Note 4, the Exchange proposes a non-
substantive amendment to add the phrase ``a service that includes'' to
the first sentence of new Note 5. In addition, the Exchange proposes a
non-substantive amendment to the table to clarify that the NMS feeds
are the CTA, CQ, and OPRA feeds.
Finally, the Exchange proposes new Note 6, which would describe in
more detail the NMS network. As proposed, Note 6 would provide that
when a User purchases a service that includes access to the NMS
Network, upon its request it would receive connectivity to the NMS
network and any of the NMS feeds that it selects, subject to any
technical provisioning requirements and authorization from the provider
of the data feed. Consistent with existing Note 4 (proposed Note 5),
Note 6 would provide that market data fees for the NMS feeds would be
charged by the provider of the NMS data feed. The proposed note would
further state that the NMS Network would provide connectivity to the
NMS feeds only.
Expected Application of the Proposed Change
The proposed NMS network would be available to all Users that
purchase a service that includes a 10 Gb or 40 Gb connection to access
either the LCN or IP network, which are the networks currently
available to provide connections to the NMS feeds.
[[Page 34476]]
General
As is the case with all Exchange co-location arrangements, (i)
neither a User nor any of the User's customers would be permitted to
submit orders directly to the Exchange unless such User or customer is
a member organization, a Sponsored Participant or an agent thereof
(e.g., a service bureau providing order entry services); (ii) use of
the co-location services proposed herein would be completely voluntary
and available to all Users on a non-discriminatory basis; \18\ 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.\19\
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\18\ As is currently the case, Users that receive co-location
services from the Exchange will not receive any means of access to
the Exchange's trading and execution systems that is separate from,
or superior to, that of other Users. In this regard, all orders sent
to the Exchange enter the Exchange's trading and execution systems
through the same order gateway, regardless of whether the sender is
co-located in the data center or not. In addition, co-located Users
do not receive any market data or data service product that is not
available to all Users, although Users that receive co-location
services normally would expect reduced latencies in sending orders
to, and receiving market data from, the Exchange.
\19\ See 84 FR 58778, supra note 5, at 58779. The NYSE, NYSE
American, NYSE Arca, and NYSE National rule changes approved by the
Commission in the Approval Order all contained substantially the
same changes described herein. See Securities Exchange Act Release
Nos. Nos. 87927 (January 9, 2020), 85 FR 2468 (January 15, 2020)
(SR-NYSE-2019-46); 87929 (January 9, 2020), 85 FR 2453 (January 15,
2020) (SR-NYSEAmer-2019-34); 87928 (January 9, 2020), 85 FR 2447
(January 15, 2020) (SR-NYSEArca-2019-61); and 87930 (January 9,
2020), 85 FR 2459 (January 15, 2020) (SR-NYSENAT-2019-19) (Notices
of filing Amendment No. 1).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\20\ in general, and furthers the
objectives of Sections 6(b)(5) of the Act,\21\ in particular, because
it is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to, and
perfect the mechanisms of, a free and open market and a national market
system and, in general, to protect investors and the public interest
and because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\20\ 15 U.S.C. 78f(b).
\21\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed change to include access to
the NMS network as part of existing services available in co-location
would remove impediments to, and perfect the mechanisms of, a free and
open market and a national market system and, in general, protect
investors and the public interest because, by offering access to the
dedicated, low-latency NMS network, the Exchange will be providing
Users with an additional option to connect to the NMS feeds. Until
recently, SIAC was required to provide connectivity to the NMS feeds
via only the IP network. As recently approved by the operating
committees for the CTA/CQ Plans, SIAC is now authorized to offer
connectivity to the NMS feeds in the data center via an alternate,
dedicated, low-latency NMS network. The proposed NMS network has been
designed consistent with this directive and will provide greater choice
to Users that are seeking a low-latency network to connect to the NMS
feeds. In addition, the proposed rule change is identical to the
proposals approved for the Affiliate SROs.\22\ The proposal therefore
would provide market participants the ability to obtain consolidated
market data in a more timely manner, which would enhance the utility of
this critical component of the national market system for the benefit
of market participants and investors that rely upon access to
consolidated market data to effectuate trades and otherwise have
confidence in the efficiency and integrity of that system.
---------------------------------------------------------------------------
\22\ See Approval Order, supra note 6.
---------------------------------------------------------------------------
For these reasons, the Exchange believes that the proposal is
consistent with the Act.
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 that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes that
the proposed rule change would not impose any burden on competition
because it is not designed to address any competitive issues. As
described above, SIAC is the single plan processor for Tape A and B
equities securities and all options securities and does not currently
compete with any other providers for these processor services. The
proposed rule change would amend the services available in co-location
to include the NMS network when a User purchases a 10 Gb or 40 Gb
connection to access either local area network service. Accordingly,
the proposed rule change would expand the services available in co-
location without changing any fees for the existing services, or adding
fees for the expanded services. All Users would have access to the NMS
network and it would be their choice of whether and at what level to
subscribe to such services, including whether to utilize the NMS
network connection. Accordingly, the Exchange does not believe that the
proposed rule change would place any User at a relative disadvantage
compared to other Users.
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 \23\ and Rule 19b-4(f)(6) thereunder.\24\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------
\23\ 15 U.S.C. 78s(b)(3)(A)(iii).
\24\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \25\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\26\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
believes that such waiver would be consistent with the protection of
investors and the public interest because the waiver of the operative
delay would allow the Exchange to provide Users with access to the NMS
network on the same schedule as the Affiliate SROs, for which the
proposed
[[Page 34477]]
rule change has already been approved in the Approval Order. The
Exchange notes that the technology for the NMS network was available in
production on May 18, 2020. The Exchange states that waiver of the
operative delay would allow the Exchange to implement the NMS network
without delay, thus enhancing the performance of the CTA/CQ and OPRA
SIPs. For those reasons, the Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and
the public interest. Accordingly, the Commission waives the 30-day
operative delay and designates the proposed rule change operative upon
filing.\27\
---------------------------------------------------------------------------
\25\ 17 CFR 240.19b-4(f)(6).
\26\ 17 CFR 240.19b-4(f)(6)(iii).
\27\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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) \28\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\28\ 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-NYSECHX-2020-18 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-2020-18. 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-NYSECHX-2020-18 and should be submitted
on or before June 25, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
---------------------------------------------------------------------------
\29\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-12017 Filed 6-3-20; 8:45 am]
BILLING CODE 8011-01-P
