Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fee Schedule of NYSE Chicago, Inc., 24096-24098 [2021-09450]
Download as PDF
24096
Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Notices
operative immediately upon filing. As
noted above, the Exchange stated that
the conditions necessitating the
temporary relief continue to exist and
the proposed extension of time will help
minimize the impact of the COVID–19
outbreak on NYSE Arca Members’
operations by allowing them to keep
principal positions filled and
minimizing disruptions to client
services and other critical
responsibilities. Despite signs of
improvement, the Exchange further
stated that the ongoing extenuating
circumstances of the COVID–19
pandemic make it impractical to ensure
that individuals designated to act in
these capacities are able to take and pass
the appropriate qualification
examination during the 120-calendar
day period required under the rules.
The Exchange observed that,
following a nationwide closure of all
test centers earlier in the year, some test
centers have re-opened, but are
operating at limited capacity or are only
delivering certain examinations that
have been deemed essential by the local
government.22 However, on February
24, 2021, FINRA began providing the
General Securities Principal (Series 24)
Examination online through an interim
accommodation request process.23 Prior
to this change, if individuals wanted to
take these qualifying examinations, they
were required to accept the health risks
associated with taking an in-person
examination. Even with the expansion
of online qualifications examinations,
the Exchange stated that extending the
expiration date of the relief set forth in
SR–NYSEArca–2020–112 until June 30,
2021 is still needed. The Exchange
stated that this temporary relief will
provide flexibility to allow individuals
who have been designated to function in
a principal sufficient time to schedule,
study for and take the applicable
examination before the temporary relief
expires. Notably, the Exchange stated
that it does not anticipate providing any
further extensions to the temporary
amendments and that any individuals
designated to function as a principal on
or after March 3, 2021 will need to
successfully pass an appropriate
qualification examination within 120
days.
For these reasons, the Commission
believes that waiver of the 30-day
operative delay is consistent with the
22 See supra notes 13 and 14. The Exchange states
that Prometric has also had to close some reopened
test centers due to incidents of COVID–19 cases.
23 See supra note 13 (including the February 24,
2021 announcement of the interim accommodation
process for candidates to take certain examinations,
including the General Securities Principal (Series
24) Examination, online.)
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23:06 May 04, 2021
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protection of investors and the public
interest.24 Accordingly, the Commission
hereby waives the 30-day operative
delay and designates the proposal
operative upon filing.25
At any time within 60 days of the
filing of the 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
to determine whether the proposed rule
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–
NYSEArca–2021–30 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2021–30. 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
24 As noted above by the Exchange, this proposal
is an extension of temporary relief provided in SR–
NYSEArca–2020–87 and SR–NYSEArca–2020–112
where the Exchange also requested and the
Commission granted a waiver of the 30-day
operative delay. See SR–NYSEArca–2020–87, 85 FR
at 65112 and SR–NYSEArca–2020–112, 85 FR at
85830.
25 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule change’s impact on efficiency,
competition, and capital formation. See 15 U.S.C.
78c(f).
PO 00000
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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 such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2021–30 and
should be submitted on or before May
26, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–09436 Filed 5–4–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91731; File No. SR–
NYSECHX–2021–08]
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending the Fee
Schedule of NYSE Chicago, Inc.
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, the NYSE Chicago, Inc. (‘‘NYSE
Chicago’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
26 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\05MYN1.SGM
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Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Fee Schedule of NYSE Chicago, Inc.
(‘‘Fee Schedule’’) 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
Fee Schedule 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
4 The Exchange initially filed rule changes
relating to its co-location services with the
Securities and Exchange Commission
(‘‘Commission’’) in 2019. See Securities Exchange
Act Release No. 87408 (October 28, 2019), 84 FR
58778 (November 1, 2019) (SR–NYSECHX–2019–
27). 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 id., at note 6. As specified
in the Fee Schedule, a User that incurs co-location
fees for a particular co-location service pursuant
thereto would not be subject to co-location fees for
the same co-location service charged by the
Exchange’s affiliates New York Stock Exchange
LLC, NYSE American LLC, NYSE Arca, 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–
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23:06 May 04, 2021
Jkt 253001
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,
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 Fee Schedule:
• 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 Fee Schedule 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
NYSE–2021–26, SR–NYSEAMER–2021–22, SR–
NYSEArca-2021–26, and SR–NYSENAT–2021–10.
6 See Securities Exchange Act Release No. 84 FR
58778, supra note 4.
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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24097
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
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 Fee
Schedule 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
Fee Schedule. 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
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 15 U.S.C. 78f(b)(4).
12 See 76 FR 55432, supra note 8.
10 15
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24098
Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Notices
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 Fee Schedule 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)
13 15
U.S.C. 78f(b)(8).
14 15 U.S.C. 78s(b)(3)(A)(iii).
15 17 CFR 240.19b–4(f)(6).
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23:06 May 04, 2021
Jkt 253001
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
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–
NYSECHX–2021–08 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–2021–08. 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
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.
17 15 U.S.C. 78s(b)(2)(B).
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Frm 00185
Fmt 4703
Sfmt 4703
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–2021–08 and
should be submitted on or before May
26, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–09450 Filed 5–4–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91713; File No. SR–
NYSEArca–2021–26]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending the NYSE Arca
Options Fees and Charges and the
NYSE Arca Equities Fees and Charges
Schedules
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, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
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.
1 15
E:\FR\FM\05MYN1.SGM
05MYN1
Agencies
[Federal Register Volume 86, Number 85 (Wednesday, May 5, 2021)]
[Notices]
[Pages 24096-24098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09450]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91731; File No. SR-NYSECHX-2021-08]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Amending the
Fee Schedule of NYSE Chicago, Inc.
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, the NYSE Chicago, Inc. (``NYSE Chicago''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
[[Page 24097]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Fee Schedule of NYSE Chicago,
Inc. (``Fee Schedule'') 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 Fee Schedule 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 2019. See Securities Exchange Act Release No.
87408 (October 28, 2019), 84 FR 58778 (November 1, 2019) (SR-
NYSECHX-2019-27). 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 id., at note 6. As
specified in the Fee Schedule, a User that incurs co-location fees
for a particular co-location service pursuant thereto would not be
subject to co-location fees for the same co-location service charged
by the Exchange's affiliates New York Stock Exchange LLC, NYSE
American LLC, NYSE Arca, 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-NYSE-2021-26, SR-NYSEAMER-2021-22, SR-
NYSEArca-2021-26, and SR-NYSENAT-2021-10.
\6\ See Securities Exchange Act Release No. 84 FR 58778, supra
note 4.
\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 Fee Schedule:
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 Fee Schedule 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 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 Fee Schedule 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 Fee Schedule. 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
[[Page 24098]]
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 Fee Schedule 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-NYSECHX-2021-08 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-2021-08. 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-2021-08 and should be submitted
on or before May 26, 2021.
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. 2021-09450 Filed 5-4-21; 8:45 am]
BILLING CODE 8011-01-P