Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Temporary Waiver of the Co-location Hot Hands Fee, 40377-40379 [2020-14387]
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Federal Register / Vol. 85, No. 129 / Monday, July 6, 2020 / Notices
that the proposed rule change is
consistent with Rule 17Ad–22(e)(2)(v).15
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C. Consistency with Rule 17Ad–
22(e)(13)
Rule 17Ad–22(e)(13) requires that ICE
Clear Europe establish, implement,
maintain and enforce written policies
and procedures reasonably designed to
ensure ICE Clear Europe has the
authority and operational capacity to
take timely action to contain losses and
liquidity demands and continue to meet
its obligations by, at a minimum,
requiring its Clearing Members and,
when practicable, other stakeholders to
participate in the testing and review of
its default procedures, including any
close-out procedures, at least annually
and following material changes
thereto.16
As discussed above, the Commission
believes the proposed rule change
should generally improve the clarity
and operation of the CDS Auction
Terms and, therefore, ICE Clear Europe’s
ability to conduct a successful Auction
via the CDS Auction Terms. Because
ICE Clear Europe uses Auctions to close
out a defaulting Clearing Member’s
contracts and contain the losses and
liquidity demands stemming from a
Clearing Member’s default, the
Commission believes the proposed rule
change, in improving ICE Clear Europe’s
ability to conduct a successful Auction
via the CDS Auction Terms, should help
to ensure ICE Clear Europe has the
authority and operational capacity to
take timely action to contain losses and
liquidity demands. Moreover, as
discussed in Part II.B above, the
proposed rule change would amend the
Policy to add a provision explaining
that ICE Clear Europe, in coordination
with its Clearing Members, would
conduct an annual mock Clearing
Member default test with the Clearing
Risk Department, appropriate ICE Clear
Europe management, and CDS Default
Committee Members for each Clearing
Member. The Commission believes this
particular change should help to ensure
that ICE Clear Europe requires its
Clearing Members to participate in the
testing and review of its default
procedures.
For these reasons, the Commission
finds that the proposed rule change is
consistent with Rule 17Ad–22(e)(13).17
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
15 15
U.S.C. 17Ad–22(e)(2)(v).
U.S.C. 17Ad–22(e)(13).
17 15 U.S.C. 17Ad–22(e)(13).
16 15
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requirements of the Act, and in
particular, with the requirements of
Section 17A(b)(3)(F) of the Act 18 and
Rules 17Ad–22(e)(2)(v) and (e)(13).19
It is therefore ordered pursuant to
Section 19(b)(2) of the Act 20 that the
proposed rule change, as modified by
Partial Amendment No. 1 (SR–ICEEU–
2020–007), be, and hereby is,
approved.21
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–14389 Filed 7–2–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89176; File No. SR–
NYSECHX–2020–19]
Self-Regulatory Organizations; NYSE
Chicago, 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 the NYSE Chicago, Inc. (‘‘NYSE
Chicago’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to 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
18 15
U.S.C. 78q–1(b)(3)(F).
CFR 240.17Ad–22(e)(2)(v) and (e)(13).
20 15 U.S.C. 78s(b)(2).
21 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
22 17 CFR 200.30–3(a)(12).
1 15 U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
19 17
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40377
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to 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;
4 The Exchange initially filed rule changes
relating to its co-location services with the
Securities and Exchange Commission
(‘‘Commission’’) in October 2019. See Securities
Exchange Act Release No. 87408 (October 28, 2019),
84 FR 58778 (November 1, 2019) (SR–NYSECHX–
2019–27).
5 See Securities Exchange Act Release No. 88957
(May 27, 2020), 85 FR 33766 (June 2, 2020) (SR–
NYSECHX–2020–15).
6 For purposes of the Exchange’s co-location
services, a ‘‘User’’ means any market participant
that requests to receive co-location services directly
from the Exchange. See 84 FR 58778, supra note 4,
at note 6. As specified in the Fee Schedule of NYSE
Chicago, Inc. (‘‘Fee Schedule’’), a User that incurs
co-location fees for a particular co-location service
pursuant thereto would not be subject to co-location
fees for the same co-location service charged by the
Exchange’s affiliates the New York Stock Exchange
LLC, NYSE American LLC, NYSE Arca, Inc., and
NYSE National, Inc. (together, the ‘‘Affiliate
SROs’’). See id. at 58779. Each Affiliate SRO has
submitted substantially the same proposed rule
change to propose the changes described herein.
See SR–NYSE–2020–53, SR–NYSEAmer-2020- 46,
SR–NYSEArca-2020–58, and SR–NYSENAT–2020–
20.
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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 Chicago Rule 7.1
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 Rule 7.1 closure is in effect, the
User has to use the Hot Hands service
and, absent a waiver, incurs Hot Hands
fees for the work. Given that, the
Exchange waived all Hot Hands fees for
the duration of the Initial Closure.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
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.
7 See
84 FR 58778, supra note 4.
Securities Exchange Act Release Nos. 88400
(March 17, 2020), 85 FR 16434 (March 23, 2020)
(SR–NYSECHX–2020–07), and 88522 (March 31,
2020), 85 FR 19191 (April 6, 2020) (SR–NYSECHX–
2020–10).
9 See 85 FR 33766, supra note 5.
8 See
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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 Rule 7.1 closure is in effect, User
representatives are not allowed access to
the Data Center. If a User’s equipment
requires work during such period, the
User has to use the Hot Hands service.
Absent a waiver, the User would incur
Hot Hands fees for the work.
The proposed extension of the waiver
would allow a User to have work carried
out on its equipment notwithstanding
the closure of the Data Center without
incurring Hot Hands fees.
The Proposed Rule Change is Equitable
The Exchange believes the proposed
rule change is an equitable allocation of
its fees and credits for the following
reasons.
The proposed extension of the waiver
would apply equally to all Users. The
proposed extension would not apply
differently to distinct types or sizes of
market participants. Rather, it would
apply uniformly to all Users.
The Exchange believes that the
proposal is equitable because the
extension of the waiver would mean
that for the duration of the closure of the
Data Center all similarly-situated Users
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10 15
11 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
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would not be charged a fee to use the
Hot Hands service.
The Proposed Change is Not Unfairly
Discriminatory and Would Protect
Investors and the Public Interest
The Exchange believes that the
proposed change is not unfairly
discriminatory for the following
reasons.
The proposed extension of the waiver
would not apply differently to distinct
types or sizes of market participants.
Rather, all Users whose equipment
requires work during the extension of
the Data Center closure would have the
resulting fees waived, and the extension
of the waiver would apply uniformly to
all Users during the period. For the
reasons above, the proposed changes do
not unfairly discriminate between or
among market participants.
In addition, the Exchange believes
that the proposed rule change would
perfect the mechanisms of a free and
open market and a national market
system and, in general, protect investors
and the public interest because it would
allow a User to have work carried out
on its equipment notwithstanding a
Rule 7.1 closure without incurring Hot
Hands fees. Accordingly, the Exchange
believes that the requested extension of
the waiver is designed to perfect the
mechanisms of a free and open market
and a national market system and, in
general, protect investors and the public
interest by facilitating the uninterrupted
availability of Users’ equipment.
For all of the above reasons, the
Exchange believes that the proposal is
consistent with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,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
12 15
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U.S.C. 78f(b)(8).
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Federal Register / Vol. 85, No. 129 / Monday, July 6, 2020 / Notices
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.
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IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSECHX–2020–19 on the subject line.
• 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–2020–19. 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–2020–19 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. 2020–14387 Filed 7–2–20; 8:45 am]
BILLING CODE 8011–01–P
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SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting; Cancellation
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: 85 FR 39035, June 29,
2020.
PREVIOUSLY ANNOUNCED TIME AND DATE OF
THE MEETING: Wednesday, July 1, 2020
Paper Comments
U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(2).
15 15 U.S.C. 78s(b)(2)(B).
40379
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at 2:00 p.m.
The Closed
Meeting scheduled for Wednesday, July
1, 2020 at 2:00 p.m., has been cancelled.
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
CHANGES IN THE MEETING:
Dated: June 30, 2020.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020–14498 Filed 7–1–20; 11:15 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice: 11151]
Determination Pursuant to The Foreign
Missions Act
Pursuant to the authority vested in the
Secretary of State by the laws of the
United States including the Foreign
Missions Act (22 U.S.C. 4301 et seq.)
and delegated from the Under Secretary
for Management pursuant to the
Delegation of Authority No. 484, dated
May 26, 2020, I hereby determine that
the representative offices and operations
in the United States of the following
entities:
1. China Central Television (CCTV)
2. The People’s Daily
3. Global Times
4. China News Service
including their real property and
personnel, are foreign missions within
the meaning of 22 U.S.C. 302(a)(3).
Furthermore, I hereby determine it to
be reasonably necessary to protect the
interests of the United States to require
the representative offices and operations
in the United States of the above noted
entities, and their agents or employees
acting on their behalf, to comply with
the terms and conditions specified by
the Department of State’s Office of
Foreign Missions relating to the above
noted entities’ activities in the United
States.
Finally, I determine that the
requirements established by Designation
2020–2, dated June 5, 2020, will not be
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]]>Agencies
[Federal Register Volume 85, Number 129 (Monday, July 6, 2020)]
[Notices]
[Pages 40377-40379]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14387]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-89176; File No. SR-NYSECHX-2020-19]
Self-Regulatory Organizations; NYSE Chicago, 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 the NYSE Chicago, Inc. (``NYSE Chicago''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\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.
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\
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\4\ The Exchange initially filed rule changes relating to its
co-location services with the Securities and Exchange Commission
(``Commission'') in October 2019. See Securities Exchange Act
Release No. 87408 (October 28, 2019), 84 FR 58778 (November 1, 2019)
(SR-NYSECHX-2019-27).
\5\ See Securities Exchange Act Release No. 88957 (May 27,
2020), 85 FR 33766 (June 2, 2020) (SR-NYSECHX-2020-15).
---------------------------------------------------------------------------
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;
[[Page 40378]]
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 84 FR 58778, supra
note 4, at note 6. As specified in the Fee Schedule of NYSE Chicago,
Inc. (``Fee Schedule''), a User that incurs co-location fees for a
particular co-location service pursuant thereto would not be subject
to co-location fees for the same co-location service charged by the
Exchange's affiliates the New York Stock Exchange LLC, NYSE American
LLC, NYSE Arca, Inc., and NYSE National, Inc. (together, the
``Affiliate SROs''). See id. at 58779. Each Affiliate SRO has
submitted substantially the same proposed rule change to propose the
changes described herein. See SR-NYSE-2020-53, SR-NYSEAmer-2020- 46,
SR-NYSEArca-2020-58, and SR-NYSENAT-2020-20.
\7\ See 84 FR 58778, supra note 4.
---------------------------------------------------------------------------
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 Chicago
Rule 7.1 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. 88400 (March 17,
2020), 85 FR 16434 (March 23, 2020) (SR-NYSECHX-2020-07), and 88522
(March 31, 2020), 85 FR 19191 (April 6, 2020) (SR-NYSECHX-2020-10).
---------------------------------------------------------------------------
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 Rule 7.1 closure is in
effect, the User has to use the Hot Hands service and, absent a waiver,
incurs Hot Hands fees for the work. Given that, the Exchange waived all
Hot Hands fees for the duration of the Initial Closure.\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 Schedule as follows (deletions bracketed, additions italicized):
---------------------------------------------------------------------------
\9\ See 85 FR 33766, 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.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4) and (5).
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The Proposed Rule Change is Reasonable
The Exchange believes that the proposed rule change is reasonable
for the following reasons.
Given that the closure of the Data Center has been extended, the
Exchange believes that it is reasonable to grant the proposed
corresponding extension of the waiver of the Hot Hands Fee. While a
Rule 7.1 closure is in effect, User representatives are not allowed
access to the Data Center. If a User's equipment requires work during
such period, the User has to use the Hot Hands service. Absent a
waiver, the User would incur Hot Hands fees for the work.
The proposed extension of the waiver would allow a User to have
work carried out on its equipment notwithstanding the closure of the
Data Center without incurring Hot Hands fees.
The Proposed Rule Change is Equitable
The Exchange believes the proposed rule change is an equitable
allocation of its fees and credits for the following reasons.
The proposed extension of the waiver would apply equally to all
Users. The proposed extension would not apply differently to distinct
types or sizes of market participants. Rather, it would apply uniformly
to all Users.
The Exchange believes that the proposal is equitable because the
extension of the waiver would mean that for the duration of the closure
of the Data Center all similarly-situated Users would not be charged a
fee to use the Hot Hands service.
The Proposed Change is Not Unfairly Discriminatory and Would Protect
Investors and the Public Interest
The Exchange believes that the proposed change is not unfairly
discriminatory for the following reasons.
The proposed extension of the waiver would not apply differently to
distinct types or sizes of market participants. Rather, all Users whose
equipment requires work during the extension of the Data Center closure
would have the resulting fees waived, and the extension of the waiver
would apply uniformly to all Users during the period. For the reasons
above, the proposed changes do not unfairly discriminate between or
among market participants.
In addition, the Exchange believes that the proposed rule change
would perfect the mechanisms of a free and open market and a national
market system and, in general, protect investors and the public
interest because it would allow a User to have work carried out on its
equipment notwithstanding a Rule 7.1 closure without incurring Hot
Hands fees. Accordingly, the Exchange believes that the requested
extension of the waiver is designed to perfect the mechanisms of a free
and open market and a national market system and, in general, protect
investors and the public interest by facilitating the uninterrupted
availability of Users' equipment.
For all of the above reasons, the Exchange believes that the
proposal is consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\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.
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\12\ 15 U.S.C. 78f(b)(8).
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Intramarket Competition
The Exchange does not believe that the proposed change would place
any burden on intramarket competition that is not necessary or
appropriate.
The proposed extension of the waiver is not designed to affect
competition, but rather to provide relief to Users that, while a Rule
7.1 closure is in effect, have no option but to use the Hot Hands
service.
The proposed extension of the waiver would not apply differently to
distinct types or sizes of market participants. Rather, all Users whose
equipment
[[Page 40379]]
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.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \15\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\15\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSECHX-2020-19 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-2020-19. 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-2020-19 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\
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\16\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-14387 Filed 7-2-20; 8:45 am]
BILLING CODE 8011-01-P
