Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the New York Stock Exchange Price List, 24101-24103 [2021-09440]
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Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91711; File No. SR–NYSE–
2021–26]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending the
New York Stock Exchange Price List
April 29, 2021.
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 April 16,
2021, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
New York Stock Exchange Price List
(‘‘Price List’’) regarding colocation
services and fees to add further
specificity as to how monthly fees for
dedicated cabinets are calculated. 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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
Price List regarding colocation services
and fees 4 to add further specificity as to
how monthly fees for dedicated cabinets
are calculated. The proposed change is
not substantive and would not change
the amount or structure of the fees.
The Exchange offers Users 5 dedicated
and partial cabinets to house their
servers and other equipment.6 Each
dedicated cabinet has a standard power
allocation of either 4 kilowatts (‘‘kW’’)
or 8 kW, but additional power can be
added if the User requests.7 Users may
request that such additional power be
allocated to a dedicated cabinet when it
is first set up or later.
A User pays a monthly fee based on
the power allocated to its dedicated
cabinets. As previously indicated,8 the
tiered fee is based on the total kWs
allocated to all of a User’s dedicated
cabinets, not the kWs allocated to an
individual dedicated cabinet. For
example, a User that has two dedicated
cabinets with a total power allocation of
12 kW has a monthly charge of $1,200
per kW for the first eight kW and $1,050
per kW for the next four kW (between
9 kW and 12 kW), for a total of $13,800,
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. 62960 (September 21, 2010), 75 FR
59310 (September 27, 2010) (SR–NYSE–2010–56).
The Exchange is an indirect subsidiary of
Intercontinental Exchange, Inc. (‘‘ICE’’). Through its
ICE Data Services business, ICE operates a data
center in Mahwah, New Jersey, from which the
Exchange provides co-location services to Users.
5 For purposes of the Exchange’s co-location
services, a ‘‘User’’ means any market participant
that requests to receive co-location services directly
from the Exchange. See Securities Exchange Act
Release No. 76008 (September 29, 2015), 80 FR
60190 (October 5, 2015) (SR–NYSE–2015–40). As
specified in the Price List, a User that incurs colocation 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 NYSE American LLC, NYSE
Arca, Inc., NYSE Chicago, Inc., and NYSE National,
Inc. (together, the ‘‘Affiliate SROs’’). Each Affiliate
SRO has submitted substantially the same proposed
rule change to propose the changes described
herein. See SR–NYSEAMER–2021–22, SR–
NYSEArca–2021–26, SR–NYSECHX–2021–08, and
SR–NYSENAT–2021–10.
6 See Securities Exchange Act Release No. 71122
(December 18, 2013), 78 FR 77739 (December 24,
2013) (SR–NYSE–2013–81).
7 Presently, the maximum amount of power that
can be allocated to one dedicated cabinet is 15 kW.
8 See Securities Exchange Act Release No. 65237
(August 31, 2011), 76 FR 55432 (September 7, 2011)
(SR–NYSE–2011–46).
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24101
irrespective of how the User divides the
12 kW between its two cabinets.
To further clarify how the fees are
calculated, in a non-substantive change,
the Exchange proposes to make the
following edits to the Price List:
• Revise the title ‘‘Monthly Fee per
Cabinet’’ to read ‘‘Monthly Fee for
Cabinets’’; and
• under the heading ‘‘Dedicated
Cabinet,’’ add the following text:
‘‘Monthly fee is based on total kWs
allocated to all of a User’s dedicated
cabinets’’.
The Exchange does not propose to
change the fees.
Application and Impact of the Proposed
Changes
The proposed change is not expected
to have any impact on Users. Users are
currently subject to the described
services and fees, none of which is new
or novel. Current Users would not incur
any new or changed fees and the
Exchange does not expect to attract any
new Users as a result of the proposed
change. The change would simply add
clarity to the Price List concerning the
monthly fee for dedicated cabinets.
The proposed change is not targeted
at, or expected to be limited in
applicability to, a specific segment of
market participant, as colocation is
available to any market participant that
wishes to be a User.
The proposed change is not otherwise
intended to address any other issues,
and the Exchange is not aware of any
problems that member organizations
would have in complying with the
proposed change.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,9 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,10 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism 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
Exchange further believes that the
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15
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Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Notices
proposed rule change is consistent with
Section 6(b)(4) of the Act,11 because it
provides for the equitable allocation of
reasonable dues, fees, and other charges
among its members and issuers and
other persons using its facilities and
does not unfairly discriminate between
customers, issuers, brokers, or dealers.
The Exchange believes that the
proposed rule change is reasonable
because it would add clarity to the Price
List regarding how the monthly fee for
dedicated cabinets is calculated,
clarifying that the monthly fee for
dedicated cabinets is based on the
aggregate number of kW allocated to all
the User’s dedicated cabinets, and not
charged on a per-cabinet basis. It would
add detail previously stated in rule
filings with the Commission 12 to the
Price List. Doing so would remove
impediments to, and perfecting the
mechanisms of, a free and open market
and a national market system and, in
general, protecting investors and the
public interest because the change
would add clarity and transparency to
the Exchange rules, alleviating potential
investor or market participant
confusion.
The proposed change is equitable, as
it would add clarity for all market
participants with respect to how the
monthly fee for dedicated cabinets is
calculated. At the same time, it is a nonsubstantive change that would not
impact the services available to Users or
the fees charged for such services. The
Exchange does not expect to attract any
new Users as a result of the proposed
change. The proposed change is not
expected to have any impact on Users.
Users are currently subject to the
described services and fees, none of
which is new or novel.
For the reasons above, the proposed
changes do not unfairly discriminate
between or among market participants
that are otherwise capable of satisfying
any applicable colocation fees,
requirements, terms, and conditions
established from time to time by the
Exchange.
For these 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,13 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 because it is
11 15
U.S.C. 78f(b)(4).
76 FR 55432, supra note 8.
13 15 U.S.C. 78f(b)(8).
12 See
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ministerial in nature and is not designed
to have any competitive impact. Rather,
the change would simply add clarity to
the Price List regarding how the
monthly fee for dedicated cabinets is
calculated, clarifying that the monthly
fee for dedicated cabinets is based on
the aggregate number of kW allocated to
all the User’s dedicated cabinets, and
not charged on a per-cabinet basis. The
change would add clarity and
transparency to the Exchange rules,
alleviating potential investor or market
participant confusion.
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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 14 and Rule
19b–4(f)(6) thereunder.15 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.16
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
14 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires the Exchange to give the
Commission written notice of its intent to file the
proposed rule change, along with a brief description
and text of the proposed rule change, at least five
business days prior to the date of filing of the
proposed rule change, or such shorter time as
designated by the Commission. The Exchange has
satisfied this requirement.
15 17
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Fmt 4703
Sfmt 4703
under Section 19(b)(2)(B) 17 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–2021–26 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–2021–26. 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–NYSE–2021–26 and should
be submitted on or before May 26, 2021.
17 15
E:\FR\FM\05MYN1.SGM
U.S.C. 78s(b)(2)(B).
05MYN1
Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–09440 Filed 5–4–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91708; File No. SR–
NYSECHX–2021–09]
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Effective
Date in Interpretation and Policy .10
Under NYSE Chicago Article 6, Rule 13
April 29, 2021.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 2 and Rule 19b–4
thereunder,3 notice is hereby given that
on April 19, 2021, NYSE Chicago, Inc.
(‘‘NYSE Chicago’’ or the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II 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 a rule change
to extend the effective date in
Interpretation and Policy .10
(Temporary Extension of the Limited
Period for Registered Persons to
Function as Principals) under NYSE
Chicago Article 6, Rule 13 (Registration
Requirements) applicable to
Participants, from April 30, 2021 to June
30, 2021. The Exchange does not
anticipate providing any further
extensions to the temporary relief
identified in this proposed rule change
beyond June 30, 2021.4 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.
18 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.
4 If due to unforeseen circumstances a further
extension is necessary, the Exchange will submit a
separate rule filing to further extend the temporary
relief.
1 15
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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 these 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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to extend the
effective date in Interpretation and
Policy .10 (Temporary Extension of the
Limited Period for Registered Persons to
Function as Principals) under NYSE
Chicago Article 6, Rule 13 (Registration
Requirements) applicable to
Participants,5 from April 30, 2021 to
June 30, 2021. The proposed rule
change would extend the 120-day
period that certain individuals can
function as a principal without having
successfully passed an appropriate
qualification examination through June
30, 2021, and would apply only to those
individuals who were designated to
function as a principal prior to March 3,
2021. This proposed rule change is
based on a filing recently submitted by
the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) 6 and is
intended to harmonize the Exchange’s
registration rules with those of FINRA
so as to promote uniform standards
across the securities industry.
In response to COVID–19 global
pandemic, last year FINRA began
providing temporary relief by way of
frequently asked questions (‘‘FAQs’’) 7
5 The term ‘‘Participant’’ means any Participant
Firm that holds a valid Trading Permit and any
person associated with a Participant Firm who is
registered with the Exchange. A Participant shall be
considered a ‘‘member’’ of the Exchange for
purposes of the Exchange Act. See NYSE Chicago
Article 1, Rule 1(s).
6 See Exchange Act Release No. 91506 (April 8,
2021) 86 FR 19671 (April 14, 2021) (SR–FINRA–
2021–005) (the ‘‘FINRA Filing’’). The Exchange
notes that the FINRA Filing also provides
temporary relief to individuals registered with
FINRA as Operations Professionals under FINRA
Rule 1220. The Exchange does not have a
registration category for Operations Professionals
and therefore, the Exchange is not proposing to
adopt that aspect of the FINRA Filing.
7 See https://www.finra.org/rules-guidance/keytopics/covid-19/faq#qe.
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24103
to address disruptions to the
administration of FINRA qualification
examinations caused by the pandemic
that have significantly limited the
ability of individuals to sit for
examinations due to Prometric test
center capacity issues.8
FINRA published the first FAQ on
March 20, 2020, providing that
individuals who were designated to
function as principals under FINRA
Rule 1210.04 9 prior to February 2, 2020,
would be given until May 31, 2020, to
pass the appropriate principal
qualification examination.10 FINRA
revised the FAQ to extend the
expiration of the temporary relief to
pass the appropriate principal
examination until June 30, 2020, and
then until August 31, 2020.
On September 25, 2020, NYSE
Chicago filed with the Commission a
proposed rule change for immediate
effectiveness to extend the temporary
relief provided via the FAQ by adopting
temporary Interpretation and Policy .10
(Temporary Extension of the Limited
Period for Registered Persons to
Function as Principals) under NYSE
Chicago Article 6, Rule 13 (Registration
Requirements).11 Pursuant to this rule
filing, individuals who were designated
prior to September 3, 2020, to function
as a principal under Interpretation and
Policy .10 of NYSE Chicago Article 6,
Rule 13 had until December 31, 2020, to
pass the appropriate qualification
examination. The Exchange thereafter
filed a proposed rule change to extend
the expiration date of the temporary
relief from December 31, 2020, to April
30, 2021.12
8 At the outset of the COVID–19 pandemic, all
FINRA qualification examinations were
administered at test centers operated by Prometric.
Based on the health and welfare concerns resulting
from COVID–19, in March 2020 Prometric closed all
of its test centers in the United States and Canada
and began to slowly reopen some of them at limited
capacity in May. Currently, Prometric has resumed
testing in many of its United States and Canada test
centers, at either full or limited occupancy, based
on local and government mandates.
9 Interpretation and Policy .03 under NYSE
Chicago Article 6, Rule 13 is the corresponding rule
to FINRA Rule 1210.04.
10 FINRA Rule 1210.04 (Requirements for
Registered Persons Functioning as Principals for a
Limited Period) allows a member firm to designate
certain individuals to function in a principal
capacity for 120 calendar days before having to pass
an appropriate principal qualification examination
Interpretation and Policy .03 under NYSE Chicago
Article 6, Rule 13 provides the same allowance to
Participants.
11 See Exchange Act Release No. 90114 (October
7, 2020), 85 FR 64556 (October 13, 2020) (Notice
of Filing and Immediate Effectiveness of SR–
NYSECHX–2020–28).
12 See Exchange Act Release No. 90762
(December 21, 2020), 85 FR 85756 (December 29,
2020) (Notice of Filing and Immediate Effectiveness
of SR–NYSECHX–2020–33).
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Agencies
[Federal Register Volume 86, Number 85 (Wednesday, May 5, 2021)]
[Notices]
[Pages 24101-24103]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09440]
[[Page 24101]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91711; File No. SR-NYSE-2021-26]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending the New York Stock Exchange Price List
April 29, 2021.
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 April 16, 2021, New York Stock Exchange LLC (``NYSE'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the New York Stock Exchange Price
List (``Price List'') regarding colocation services and fees to add
further specificity as to how monthly fees for dedicated cabinets are
calculated. 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 amend its Price List regarding colocation
services and fees \4\ to add further specificity as to how monthly fees
for dedicated cabinets are calculated. The proposed change is not
substantive and would not change the amount or structure of the fees.
---------------------------------------------------------------------------
\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.
62960 (September 21, 2010), 75 FR 59310 (September 27, 2010) (SR-
NYSE-2010-56). The Exchange is an indirect subsidiary of
Intercontinental Exchange, Inc. (``ICE''). Through its ICE Data
Services business, ICE operates a data center in Mahwah, New Jersey,
from which the Exchange provides co-location services to Users.
---------------------------------------------------------------------------
The Exchange offers Users \5\ dedicated and partial cabinets to
house their servers and other equipment.\6\ Each dedicated cabinet has
a standard power allocation of either 4 kilowatts (``kW'') or 8 kW, but
additional power can be added if the User requests.\7\ Users may
request that such additional power be allocated to a dedicated cabinet
when it is first set up or later.
---------------------------------------------------------------------------
\5\ For purposes of the Exchange's co-location services, a
``User'' means any market participant that requests to receive co-
location services directly from the Exchange. See Securities
Exchange Act Release No. 76008 (September 29, 2015), 80 FR 60190
(October 5, 2015) (SR-NYSE-2015-40). As specified in the Price List,
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 NYSE American LLC, NYSE Arca, Inc., NYSE Chicago, Inc.,
and NYSE National, Inc. (together, the ``Affiliate SROs''). Each
Affiliate SRO has submitted substantially the same proposed rule
change to propose the changes described herein. See SR-NYSEAMER-
2021-22, SR-NYSEArca-2021-26, SR-NYSECHX-2021-08, and SR-NYSENAT-
2021-10.
\6\ See Securities Exchange Act Release No. 71122 (December 18,
2013), 78 FR 77739 (December 24, 2013) (SR-NYSE-2013-81).
\7\ Presently, the maximum amount of power that can be allocated
to one dedicated cabinet is 15 kW.
---------------------------------------------------------------------------
A User pays a monthly fee based on the power allocated to its
dedicated cabinets. As previously indicated,\8\ the tiered fee is based
on the total kWs allocated to all of a User's dedicated cabinets, not
the kWs allocated to an individual dedicated cabinet. For example, a
User that has two dedicated cabinets with a total power allocation of
12 kW has a monthly charge of $1,200 per kW for the first eight kW and
$1,050 per kW for the next four kW (between 9 kW and 12 kW), for a
total of $13,800, irrespective of how the User divides the 12 kW
between its two cabinets.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 65237 (August 31,
2011), 76 FR 55432 (September 7, 2011) (SR-NYSE-2011-46).
---------------------------------------------------------------------------
To further clarify how the fees are calculated, in a non-
substantive change, the Exchange proposes to make the following edits
to the Price List:
Revise the title ``Monthly Fee per Cabinet'' to read
``Monthly Fee for Cabinets''; and
under the heading ``Dedicated Cabinet,'' add the following
text: ``Monthly fee is based on total kWs allocated to all of a User's
dedicated cabinets''.
The Exchange does not propose to change the fees.
Application and Impact of the Proposed Changes
The proposed change is not expected to have any impact on Users.
Users are currently subject to the described services and fees, none of
which is new or novel. Current Users would not incur any new or changed
fees and the Exchange does not expect to attract any new Users as a
result of the proposed change. The change would simply add clarity to
the Price List concerning the monthly fee for dedicated cabinets.
The proposed change is not targeted at, or expected to be limited
in applicability to, a specific segment of market participant, as
colocation is available to any market participant that wishes to be a
User.
The proposed change is not otherwise intended to address any other
issues, and the Exchange is not aware of any problems that member
organizations would have in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\10\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism 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 Exchange further believes
that the
[[Page 24102]]
proposed rule change is consistent with Section 6(b)(4) of the Act,\11\
because it provides for the equitable allocation of reasonable dues,
fees, and other charges among its members and issuers and other persons
using its facilities and does not unfairly discriminate between
customers, issuers, brokers, or dealers.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposed rule change is reasonable
because it would add clarity to the Price List regarding how the
monthly fee for dedicated cabinets is calculated, clarifying that the
monthly fee for dedicated cabinets is based on the aggregate number of
kW allocated to all the User's dedicated cabinets, and not charged on a
per-cabinet basis. It would add detail previously stated in rule
filings with the Commission \12\ to the Price List. Doing so would
remove impediments to, and perfecting the mechanisms of, a free and
open market and a national market system and, in general, protecting
investors and the public interest because the change would add clarity
and transparency to the Exchange rules, alleviating potential investor
or market participant confusion.
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\12\ See 76 FR 55432, supra note 8.
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The proposed change is equitable, as it would add clarity for all
market participants with respect to how the monthly fee for dedicated
cabinets is calculated. At the same time, it is a non-substantive
change that would not impact the services available to Users or the
fees charged for such services. The Exchange does not expect to attract
any new Users as a result of the proposed change. The proposed change
is not expected to have any impact on Users. Users are currently
subject to the described services and fees, none of which is new or
novel.
For the reasons above, the proposed changes do not unfairly
discriminate between or among market participants that are otherwise
capable of satisfying any applicable colocation fees, requirements,
terms, and conditions established from time to time by the Exchange.
For these 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,\13\ 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 because it is ministerial in nature and is not
designed to have any competitive impact. Rather, the change would
simply add clarity to the Price List regarding how the monthly fee for
dedicated cabinets is calculated, clarifying that the monthly fee for
dedicated cabinets is based on the aggregate number of kW allocated to
all the User's dedicated cabinets, and not charged on a per-cabinet
basis. The change would add clarity and transparency to the Exchange
rules, alleviating potential investor or market participant confusion.
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\13\ 15 U.S.C. 78f(b)(8).
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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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\16\
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\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange to give the Commission written notice of its
intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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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) \17\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\17\ 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-NYSE-2021-26 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-2021-26. 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-NYSE-2021-26 and should be submitted on
or before May 26, 2021.
[[Page 24103]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-09440 Filed 5-4-21; 8:45 am]
BILLING CODE 8011-01-P