Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Temporary Waiver of the Co-location Hot Hands Fee, 40349-40352 [2020-14386]
Download as PDF
<![CDATA[
Federal Register / Vol. 85, No. 129 / Monday, July 6, 2020 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,12 the Exchange believes that the
proposed rule change will not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
Intramarket Competition
The Exchange does not believe that
the proposed change would place any
burden on intramarket competition that
is not necessary or appropriate.
The proposed extension of the waiver
is not designed to affect competition,
but rather to provide relief to Users that,
while a Rule 7.1 closure is in effect,
have no option but to use the Hot Hands
service.
The proposed extension of the waiver
would not apply differently to distinct
types or sizes of market participants.
Rather, all Users whose equipment
requires work during the extension of
the Data Center closure would have the
resulting fees waived, and the extension
of the waiver would apply uniformly to
all Users during the period.
Intermarket Competition
The Exchange does not believe that
the proposed change would impose any
burden on intermarket competition that
is not necessary or appropriate.
The Exchange believes that the
proposed change would not affect the
competitive landscape among the
national securities exchanges, as the Hot
Hands service is solely charged within
co-location to existing Users, and would
be temporary.
For the reasons described above, the
Exchange believes that the proposed
rule change reflects this competitive
environment.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
khammond on DSKJM1Z7X2PROD with NOTICES
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) 13 of the Act and
subparagraph (f)(2) of Rule 19b–4 14
thereunder, because it establishes a due,
12 15
U.S.C. 78f(b)(8).
13 15 U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
04:41 Jul 03, 2020
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) 15 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSE–2020–53 on the subject line.
Paper Comments
• Send paper comments in triplicate
to: Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2020–53. 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
15 15
Jkt 250001
PO 00000
U.S.C. 78s(b)(2)(B).
Frm 00166
Fmt 4703
Sfmt 4703
40349
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSE–2020–53 and should
be submitted on or before July 27, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–14384 Filed 7–2–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89174; File No. SR–
NYSEARCA–2020–58]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Temporary
Waiver of the Co-location Hot Hands
Fee
June 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 June 17,
2020, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend the
temporary waiver of the co-location
‘‘Hot Hands’’ fee. The proposed rule
change is available on the Exchange’s
website at www.nyse.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\06JYN1.SGM
06JYN1
40350
Federal Register / Vol. 85, No. 129 / Monday, July 6, 2020 / Notices
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to extend of
the temporary waiver of the colocation 4 ‘‘Hot Hands’’ fee through the
earlier of August 31, 2020 and the
reopening of the Mahwah, New Jersey
data center (‘‘Data Center’’). The waiver
of the Hot Hands fee is scheduled to
expire on June 30, 2020.5
The Exchange is an indirect
subsidiary of Intercontinental Exchange,
Inc. (‘‘ICE’’). Through its ICE Data
Services (‘‘IDS’’) business, ICE operates
the 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,
khammond on DSKJM1Z7X2PROD with NOTICES
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. 63275 (November 8, 2010), 75 FR
70048 (November 16, 2010) (SR–NYSEArca-2010–
100).
5 See Securities Exchange Act Release No. 88961
(May 27, 2020), 85 FR 33755 (June 2, 2020) (SR–
NYSEArca–2020–47).
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. 76010 (September 29, 2015), 80 FR
60197 (October 5, 2015) (SR–NYSEArca–2015–82).
As specified in the NYSE Arca Options Fees and
Charges and the NYSE Arca Equities Fees and
Charges (together, the ‘‘Fee Schedules’’), a User that
incurs co-location fees for a particular co-location
service pursuant thereto would not be subject to colocation fees for the same co-location service
charged by the Exchange’s affiliates the New York
Stock Exchange LLC, NYSE American LLC, NYSE
Chicago, Inc., and NYSE National, Inc. (together,
the ‘‘Affiliate SROs’’). See Securities Exchange Act
Release No. 70173 (August 13, 2013), 78 FR 50459
(August 19, 2013) (SR–NYSEArca-2013–80). Each
Affiliate SRO has submitted substantially the same
proposed rule change to propose the changes
described herein. See SR–NYSE–2020–53, SR–
NYSEAmer-2020–46, SR–NYSECHX–2020–19, and
SR–NYSENAT–2020–20.
VerDate Sep<11>2014
04:41 Jul 03, 2020
Jkt 250001
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 previously announced to Users
that the Data Center would be closed to
third parties starting on March 16, 2020,
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 Arca Rules 7.1–E
and 7.1–O to close the co-location
facility of the Exchange to third parties.
The closure period was extended twice,
through June 30, 2020 (the ‘‘Initial
Closure’’).8
ICE has announced to Users that,
because the concerns that led to the
Initial Closure still apply, the closure of
the Data Center will be extended, with
the date of the reopening announced
through a customer notice.
If a User’s equipment requires work
while a Rules 7.1–E and 7.1–O 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.9 Because the period has been
extended, the Exchange proposes to
extend the waiver of the Hot Hands Fee
for the length of the period. To that end,
the Exchange proposes to revise the
footnote to the Hot Hands Fee in the Fee
Schedules as follows (deletions
bracketed, additions italicized):
† Fees for Hot Hands Services will be
waived beginning on March 16, 2020 through
the earlier of [June 30]August 31, 2020 and
the reopening of the Mahwah, New Jersey
data center.
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
7 See Securities Exchange Act Release No. 72720
(July 30, 2014), 79 FR 45577 (August 5, 2014) (SR–
NYSEArca-2014–81).
8 See Securities Exchange Act Release Nos. 88398
(March 17, 2020), 85 FR 16398 (March 23, 2020)
(SR–NYSEArca-2020–22), and 88520 (March 31,
2020), 85 FR 19208 (April 6, 2020) (SR–NYSEArca2020–26).
9 See 85 FR 33755, supra note 5.
PO 00000
Frm 00167
Fmt 4703
Sfmt 4703
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,10 in general, and
furthers the objectives of Sections
6(b)(4) and (5) of the Act,11 in particular,
because it provides for the equitable
allocation of reasonable dues, fees, and
other charges among its members,
issuers and other persons using its
facilities and does not unfairly
discriminate between customers,
issuers, brokers or dealers. In addition,
it is designed to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to, and perfect the
mechanisms of, a free and open market
and a national market system and, in
general, to protect investors and the
public interest and because it is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Proposed Rule Change is
Reasonable
The Exchange believes that the
proposed rule change is reasonable for
the following reasons.
Given that the closure of the Data
Center has been extended, the Exchange
believes that it is reasonable to grant the
proposed corresponding extension of
the waiver of the Hot Hands Fee. While
a Rules 7.1–E and 7.1–O 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
10 15
11 15
E:\FR\FM\06JYN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
06JYN1
Federal Register / Vol. 85, No. 129 / Monday, July 6, 2020 / Notices
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 7.1–E and 7.1–O 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.
khammond on DSKJM1Z7X2PROD with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,12 the Exchange believes that the
proposed rule change will not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
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 7.1–E and 7.1–O closure
is in effect, have no option but to use
the Hot Hands service.
The proposed extension of the waiver
would not apply differently to distinct
types or sizes of market participants.
Rather, all Users whose equipment
requires work during the extension of
the Data Center closure would have the
resulting fees waived, and the extension
of the waiver would apply uniformly to
all Users during the period.
Intermarket Competition
The Exchange does not believe that
the proposed change would impose any
burden on intermarket competition that
is not necessary or appropriate.
The Exchange believes that the
proposed change would not affect the
competitive landscape among the
national securities exchanges, as the Hot
Hands service is solely charged within
co-location to existing Users, and would
be temporary.
For the reasons described above, the
Exchange believes that the proposed
rule change reflects this competitive
environment.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 13 of the Act and
subparagraph (f)(2) of Rule 19b–4 14
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) 15 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
15 15 U.S.C. 78s(b)(2)(B).
14 17
12 15
U.S.C. 78f(b)(8).
VerDate Sep<11>2014
04:41 Jul 03, 2020
Jkt 250001
PO 00000
Frm 00168
Fmt 4703
Sfmt 4703
40351
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 mailto:rulecomments@sec.gov. Please include File
Number SR–NYSEARCA–2020–58 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–NYSEARCA–2020–58. 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–NYSEARCA–2020–58 and
should be submitted on or before July
27, 2020.
E:\FR\FM\06JYN1.SGM
06JYN1
40352
Federal Register / Vol. 85, No. 129 / Monday, July 6, 2020 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–14386 Filed 7–2–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89173; File No. SR–
NYSEAMER–2020–46]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change To Extend the Temporary
Waiver of the Co-Location Hot Hands
Fee
June 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 June 17,
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.
khammond on DSKJM1Z7X2PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend 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.
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
04:41 Jul 03, 2020
Jkt 250001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to extend of
the temporary waiver of the colocation 4 ‘‘Hot Hands’’ fee through the
earlier of August 31, 2020 and the
reopening of the Mahwah, New Jersey
data center (‘‘Data Center’’). The waiver
of the Hot Hands fee is scheduled to
expire on June 30, 2020.5
The Exchange is an indirect
subsidiary of Intercontinental Exchange,
Inc. (‘‘ICE’’). Through its ICE Data
Services (‘‘IDS’’) business, ICE operates
the 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 previously announced to Users
that the Data Center would be closed to
third parties starting on March 16, 2020,
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
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. 88956
(May 27, 2020), 85 FR 33760 (June 2, 2020) (SR–
NYSEAmer-2020–39).
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
Arca, Inc., NYSE Chicago, Inc., and NYSE National,
Inc. (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–2020–53, SR–NYSEArca–2020–58, SR–
NYSECHX–2020–19, and SR–NYSENAT–2020–20.
7 See Securities Exchange Act Release No. 72719
(July 30, 2014), 79 FR 45502 (August 5, 2014) (SR–
NYSEMKT–2014–61).
PO 00000
Frm 00169
Fmt 4703
Sfmt 4703
7.1E and 901NY to close the co-location
facility of the Exchange to third parties.
The closure period was extended twice,
through June 30, 2020 (the ‘‘Initial
Closure’’).8
ICE has announced to Users that,
because the concerns that led to the
Initial Closure still apply, the closure of
the Data Center will be extended, with
the date of the reopening 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.9 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 the earlier of [June 30]August
31, 2020 and the reopening of the
Mahwah, New Jersey data center.
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,10 in general, and
furthers the objectives of Sections
6(b)(4) and (5) of the Act,11 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
8 See Securities Exchange Act Release Nos. 88403
(March 17, 2020), 85 FR 16400 (March 23, 2020)
(SR–NYSEAMER–2020–19), and 88523 (March 31,
2020), 85 FR 19179 (April 6, 2020) (SR–
NYSEAMER–2020–23).
9 See 85 FR 33760, supra note 5.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(4) and (5).
E:\FR\FM\06JYN1.SGM
06JYN1
]]>Agencies
[Federal Register Volume 85, Number 129 (Monday, July 6, 2020)]
[Notices]
[Pages 40349-40352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14386]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-89174; File No. SR-NYSEARCA-2020-58]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Extend the
Temporary Waiver of the Co-location Hot Hands Fee
June 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 June 17, 2020, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend the temporary waiver of the co-
location ``Hot Hands'' fee. The proposed rule change is available on
the Exchange's website at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
[[Page 40350]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to extend of the temporary waiver of the co-
location \4\ ``Hot Hands'' fee through the earlier of August 31, 2020
and the reopening of the Mahwah, New Jersey data center (``Data
Center''). The waiver of the Hot Hands fee is scheduled to expire on
June 30, 2020.\5\
---------------------------------------------------------------------------
\4\ The Exchange initially filed rule changes relating to its
co-location services with the Securities and Exchange Commission
(``Commission'') in 2010. See Securities Exchange Act Release No.
63275 (November 8, 2010), 75 FR 70048 (November 16, 2010) (SR-
NYSEArca-2010-100).
\5\ See Securities Exchange Act Release No. 88961 (May 27,
2020), 85 FR 33755 (June 2, 2020) (SR-NYSEArca-2020-47).
---------------------------------------------------------------------------
The Exchange is an indirect subsidiary of Intercontinental
Exchange, Inc. (``ICE''). Through its ICE Data Services (``IDS'')
business, ICE operates the 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.
---------------------------------------------------------------------------
\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. 76010 (September 29, 2015), 80 FR 60197
(October 5, 2015) (SR-NYSEArca-2015-82). As specified in the NYSE
Arca Options Fees and Charges and the NYSE Arca Equities Fees and
Charges (together, the ``Fee Schedules''), 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 American LLC, NYSE Chicago, Inc., and NYSE
National, Inc. (together, the ``Affiliate SROs''). See Securities
Exchange Act Release No. 70173 (August 13, 2013), 78 FR 50459
(August 19, 2013) (SR-NYSEArca-2013-80). Each Affiliate SRO has
submitted substantially the same proposed rule change to propose the
changes described herein. See SR-NYSE-2020-53, SR-NYSEAmer-2020-46,
SR-NYSECHX-2020-19, and SR-NYSENAT-2020-20.
\7\ See Securities Exchange Act Release No. 72720 (July 30,
2014), 79 FR 45577 (August 5, 2014) (SR-NYSEArca-2014-81).
---------------------------------------------------------------------------
ICE previously announced to Users that the Data Center would be
closed to third parties starting on March 16, 2020, 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 Arca Rules
7.1-E and 7.1-O to close the co-location facility of the Exchange to
third parties. The closure period was extended twice, through June 30,
2020 (the ``Initial Closure'').\8\
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release Nos. 88398 (March 17,
2020), 85 FR 16398 (March 23, 2020) (SR-NYSEArca-2020-22), and 88520
(March 31, 2020), 85 FR 19208 (April 6, 2020) (SR-NYSEArca-2020-26).
---------------------------------------------------------------------------
ICE has announced to Users that, because the concerns that led to
the Initial Closure still apply, the closure of the Data Center will be
extended, with the date of the reopening announced through a customer
notice.
If a User's equipment requires work while a Rules 7.1-E and 7.1-O
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.\9\ Because the period has been extended, the Exchange proposes
to extend the waiver of the Hot Hands Fee for the length of the period.
To that end, the Exchange proposes to revise the footnote to the Hot
Hands Fee in the Fee Schedules as follows (deletions bracketed,
additions italicized):
---------------------------------------------------------------------------
\9\ See 85 FR 33755, supra note 5.
[dagger] Fees for Hot Hands Services will be waived beginning on
March 16, 2020 through the earlier of [June 30]August 31, 2020 and
---------------------------------------------------------------------------
the reopening of the Mahwah, New Jersey data center.
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,\10\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\11\ 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
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 7.1-E and 7.1-O 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
[[Page 40351]]
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 7.1-E and 7.1-O 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,\12\ the Exchange
believes that the proposed rule change will not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
Intramarket Competition
The Exchange does not believe that the proposed change would place
any burden on intramarket competition that is not necessary or
appropriate.
The proposed extension of the waiver is not designed to affect
competition, but rather to provide relief to Users that, while a Rules
7.1-E and 7.1-O closure is in effect, have no option but to use the Hot
Hands service.
The proposed extension of the waiver would not apply differently to
distinct types or sizes of market participants. Rather, all Users whose
equipment requires work during the extension of the Data Center closure
would have the resulting fees waived, and the extension of the waiver
would apply uniformly to all Users during the period.
Intermarket Competition
The Exchange does not believe that the proposed change would impose
any burden on intermarket competition that is not necessary or
appropriate.
The Exchange believes that the proposed change would not affect the
competitive landscape among the national securities exchanges, as the
Hot Hands service is solely charged within co-location to existing
Users, and would be temporary.
For the reasons described above, the Exchange believes that the
proposed rule change reflects this competitive environment.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \13\ of the Act and subparagraph (f)(2) of Rule
19b-4 \14\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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) \15\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\15\ 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 mailto:[email protected]. Please
include File Number SR-NYSEARCA-2020-58 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-NYSEARCA-2020-58. 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-NYSEARCA-2020-58 and should be submitted
on or before July 27, 2020.
[[Page 40352]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-14386 Filed 7-2-20; 8:45 am]
BILLING CODE 8011-01-P
