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, 53879-53881 [2020-19048]

Download as PDF Federal Register / Vol. 85, No. 169 / Monday, August 31, 2020 / Notices Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,15 which requires that the rules of an exchange be designed to promote just and equitable principles of trade, to remove impediments and to perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Commission also believes that the proposal is consistent with Sections 6(b)(1) and 6(b)(6) of the Act 16 which require that the rules of an exchange enforce compliance with, and provide appropriate discipline for, violations of Commission and Exchange rules. Finally, the Commission finds that the proposal is consistent with the public interest, the protection of investors, or otherwise in furtherance of the purposes of the Act, as required by Rule 19d– 1(c)(2) under the Act,17 which governs minor rule violation plans. As stated above, the Exchange proposes to add the CAT Compliance Rules to the list of minor rule violations in IM–9216, Options 11, and the Equity Minor Rule Violations to be consistent with the approach FINRA has taken for minor violations of its corresponding CAT Compliance Rules.18 The Commission has already approved FINRA’s treatment of CAT Compliance Rules violations when it approved the addition of CAT Compliance Rules to FINRA’s MRVP.19 As noted in that order, and similarly herein, the Commission believes that Exchange’s treatment of CAT Compliance Rules violations as part of its MRVP provides a reasonable means of addressing violations that do not rise to the level of requiring formal disciplinary proceedings, while providing greater flexibility in handling certain violations. However, the Commission expects that, as with FINRA, the Exchange will continue to conduct surveillance with due diligence and make determinations based on its findings, on a case-by-case basis, regarding whether a sanction under the rule is appropriate, or 15 15 U.S.C. 78f(b)(5). U.S.C. 78f(b)(1) and 78f(b)(6). 17 17 CFR 240.19d–1(c)(2). 18 As discussed above, the Exchange has entered into a Rule 17d-2 Plan and an RSA with FINRA with respect to the CAT Compliance Rules. The Commission notes that, unless relieved by the Commission of its responsibility, as may be the case under the Rule 17d-2 Plan, the Exchange continues to bear the responsibility for self-regulatory conduct and liability for self-regulatory failures, not the selfregulatory organization retained to perform regulatory functions on the Exchange’s behalf pursuant to an RSA. See Securities Exchange Release No. 61419 (January 26, 2010), 75 FR 5157 (February 1, 2010) (SR–BATS–2009–031), note 93 and accompanying text. 19 See SR–FINRA–2020–013. khammond on DSKJM1Z7X2PROD with NOTICES 16 15 VerDate Sep<11>2014 19:30 Aug 28, 2020 Jkt 250001 whether a violation requires formal disciplinary action. Accordingly, the Commission believes the proposal raises no novel or significant issues. For the same reasons discussed above, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,20 for approving the proposed rule change prior to the thirtieth day after the date of publication of the notice of the filing thereof in the Federal Register. The proposal merely adds the CAT Compliance Rules to the Exchange’s MRVP and harmonizes its application with FINRA’s application of CAT Compliance Rules under its own MRVP. Accordingly, the Commission believes that a full notice-and-comment period is not necessary before approving the proposal. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act 21 and Rule 19d–1(c)(2) thereunder,22 that the proposed rule change (SR–PHLX–2020– 40) be, and hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.23 Jill M. Peterson, Assistant Secretary. [FR Doc. 2020–19053 Filed 8–28–20; 8:45 am] BILLING CODE P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–89654; File No. SR– NYSECHX–2020–25] 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 August 25, 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 August 11, 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 self20 15 U.S.C. 78s(b)(2). U.S.C. 78s(b)(2). 22 17 CFR 240.19d-1(c)(2). 23 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. 21 15 PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 53879 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. 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 reopening of the Mahwah, New Jersey data center (‘‘Data Center’’). The waiver of the Hot Hands fee is scheduled to expire on August 31, 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 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. 89176 (June 29, 2020), 85 FR 40377 (July 6, 2020) (SR– NYSECHX–2020–19). 6 For purposes of the Exchange’s co-location services, a ‘‘User’’ means any market participant that requests to receive co-location services directly from the Exchange. See 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 Continued E:\FR\FM\31AUN1.SGM 31AUN1 53880 Federal Register / Vol. 85, No. 169 / Monday, August 31, 2020 / Notices ‘‘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 Chicago Rule 7.1 to close the co-location facility of the Exchange to third parties. The closure period was extended three times, through August 31, 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 underlined): † Fees for Hot Hands Services will be waived beginning on March 16, 2020 through [the earlier of August 31, 2020 and] the reopening of the Mahwah, New Jersey data center. The date of the reopening will be announced through a customer notice. khammond on DSKJM1Z7X2PROD with NOTICES The Exchange believes that there will be sufficient Data Center staff on-site to 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–2020–69, SR–NYSEAmer-2020–63, SR–NYSEArca-2020–74, and SR–NYSENAT–2020– 26. 7 See 84 FR 58778, supra note 4. 8 See Securities Exchange Act Release Nos. 88400 (March 17, 2020), 85 FR 16434 (March 23, 2020) (SR–NYSECHX–2020–07); 88522 (March 31, 2020), 85 FR 19191 (April 6, 2020) (SR–NYSECHX–2020– 10); and 88957 (May 27, 2020), 85 FR 33766 (June 2, 2020) (SR–NYSECHX–2020–15). 9 See 85 FR 40377, supra note 5. VerDate Sep<11>2014 19:30 Aug 28, 2020 Jkt 250001 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. 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. 10 15 11 15 PO 00000 U.S.C. 78f(b). U.S.C. 78f(b)(4) and (5). Frm 00095 Fmt 4703 Sfmt 4703 The Exchange does not know when the Mahwah data center will be reopened, and so believes it is reasonable to leave the date open ended. Adding a revised potential reopening date to the footnote may create an expectation that the closure has a stated end point. The Exchange believes that it is more reasonable to state that the waiver will continue until the data center is reopened, and to inform Users how they will receive notice of the reopening. The change would also be consistent with the announcement that ICE has made to Users. 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 E:\FR\FM\31AUN1.SGM 31AUN1 Federal Register / Vol. 85, No. 169 / Monday, August 31, 2020 / Notices 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 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. khammond on DSKJM1Z7X2PROD with NOTICES 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. 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–2020–25 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–2020–25. 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–2020–25 and should be submitted on or before September 21, 2020. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Jill M. Peterson, Assistant Secretary. [FR Doc. 2020–19048 Filed 8–28–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–89668; File No. SR–LTSE– 2020–13] Self-Regulatory Organizations; LongTerm Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.410(a) August 25, 2020. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b-4 thereunder,2 notice is hereby given that on August 18, 2020, Long-Term Stock Exchange, Inc. (‘‘LTSE’’ 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 LTSE proposes a rule change to amend Rule 11.410(a) to (i) update the Exchange’s source of data feeds for purposes of order handling and execution, and regulatory compliance, to include data regarding MEMX LLC (‘‘MEMX’’); and (ii) make ministerial changes to the existing list of exchanges 16 17 12 15 U.S.C. 78f(b)(8). 13 15 U.S.C. 78s(b)(3)(A). VerDate Sep<11>2014 19:30 Aug 28, 2020 14 17 CFR 240.19b–4(f)(2). 15 15 U.S.C. 78s(b)(2)(B). Jkt 250001 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 53881 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\31AUN1.SGM 31AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 85, Number 169 (Monday, August 31, 2020)]
[Notices]
[Pages 53879-53881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19048]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89654; File No. SR-NYSECHX-2020-25]


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

August 25, 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 August 11, 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 reopening of the Mahwah, New 
Jersey data center (``Data Center''). The waiver of the Hot Hands fee 
is scheduled to expire on August 31, 2020.\5\
---------------------------------------------------------------------------

    \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. 89176 (June 29, 
2020), 85 FR 40377 (July 6, 2020) (SR-NYSECHX-2020-19).
---------------------------------------------------------------------------

    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

[[Page 53880]]

``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 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-2020-69, SR-NYSEAmer-2020-63, 
SR-NYSEArca-2020-74, and SR-NYSENAT-2020-26.
    \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 three times, through August 
31, 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); 88522 
(March 31, 2020), 85 FR 19191 (April 6, 2020) (SR-NYSECHX-2020-10); 
and 88957 (May 27, 2020), 85 FR 33766 (June 2, 2020) (SR-NYSECHX-
2020-15).
---------------------------------------------------------------------------

    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 underlined):
---------------------------------------------------------------------------

    \9\ See 85 FR 40377, supra note 5.

[dagger] Fees for Hot Hands Services will be waived beginning on 
March 16, 2020 through [the earlier of August 31, 2020 and] the 
reopening of the Mahwah, New Jersey data center. The date of the 
---------------------------------------------------------------------------
reopening will be announced through a customer notice.

    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 
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 Exchange does not know when the Mahwah data center will be 
reopened, and so believes it is reasonable to leave the date open 
ended. Adding a revised potential reopening date to the footnote may 
create an expectation that the closure has a stated end point. The 
Exchange believes that it is more reasonable to state that the waiver 
will continue until the data center is reopened, and to inform Users 
how they will receive notice of the reopening. The change would also be 
consistent with the announcement that ICE has made to Users.
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

[[Page 53881]]

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).
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Intramarket Competition
    The Exchange does not believe that the proposed change would place 
any burden on intramarket competition that is not necessary or 
appropriate.
    The proposed extension of the waiver is not designed to affect 
competition, but rather to provide relief to Users that, while a Rule 
7.1 closure is in effect, have no option but to use the Hot Hands 
service.
    The proposed extension of the waiver would not apply differently to 
distinct types or sizes of market participants. Rather, all Users whose 
equipment requires work during the extension of the Data Center closure 
would have the resulting fees waived, and the extension of the waiver 
would apply uniformly to all Users during the period.
Intermarket Competition
    The Exchange does not believe that the proposed change would impose 
any burden on intermarket competition that is not necessary or 
appropriate.
    The Exchange believes that the proposed change would not affect the 
competitive landscape among the national securities exchanges, as the 
Hot Hands service is solely charged within co-location to existing 
Users, and would be temporary.
    For the reasons described above, the Exchange believes that the 
proposed rule change reflects this competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \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-2020-25 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-2020-25. 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-2020-25 and should be submitted 
on or before September 21, 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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2020-19048 Filed 8-28-20; 8:45 am]
BILLING CODE 8011-01-P

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