Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Continue Offering Certain Connectivity Services That Have Been Suspended by the Securities and Exchange Commission, 26995-26997 [2021-10381]
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Federal Register / Vol. 86, No. 94 / Tuesday, May 18, 2021 / Notices
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–NYSEAMER–2021–26, and
should be submitted on or before June
8, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–10382 Filed 5–17–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91871; File No. SR–NYSE–
2021–20]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Withdrawal of a Proposed Rule Change
To Amend Section 102.04 of the NYSE
Listed Company Manual To Establish
Limits on Investments in Unregistered
Investment Vehicles by Listed Closed
End Funds
May 12, 2021.
On April 9, 2021, New York Stock
Exchange LLC (‘‘NYSE’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 1 and Rule 19b–4 thereunder,2 a
proposed rule change to establish limits
on investments in unregistered
investment vehicles by listed closed end
funds. The proposed rule change was
published for comment in the Federal
Register on April 26, 2021.3 On May 6,
2021, NYSE withdrew the proposed rule
change (SR–NYSE–2021–20).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.4
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–10387 Filed 5–17–21; 8:45 am]
jbell on DSKJLSW7X2PROD with NOTICES
BILLING CODE 8011–01–P
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 91618
(April 20, 2021), 86 FR 22080 (April 26, 2021).
4 17 CFR 200.30–3(a)(12).
1 15
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16:40 May 17, 2021
Jkt 253001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91859; File No. SR–NYSE–
2021–31]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Continue
Offering Certain Connectivity Services
That Have Been Suspended by the
Securities and Exchange Commission
May 12, 2021.
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 May 7,
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 continue
offering certain connectivity services
that have been suspended by the
Securities and Exchange Commission
(‘‘Commission’’) at no charge, for a
period of 14 days, in order to provide
affected Users time to acquire substitute
services before their connectivity is
terminated. 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
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00104
Fmt 4703
Sfmt 4703
26995
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to continue
offering certain connectivity services
that have been suspended by the
Commission at no charge, for a period
of 14 days, in order to provide affected
Users 3 time to acquire substitute
services before their connectivity is
terminated.
As background, on March 10, 2021,
the Exchange filed with the Commission
a proposed rule change for immediate
effectiveness (the ‘‘Filing’’) that
amended the colocation services offered
by the Exchange to provide Users the
option to access to the systems and data
feeds of various additional third
parties.4 The proposed rule change
became operative on April 9, 2021.
Since then, five Users have contracted
to receive the services that were added
in the Filing.
On May 7, 2021, the Commission
suspended the Filing and instituted
proceedings to determine whether the
proposed rule change should be
approved or disapproved.5 Such action
suspended the Exchange’s ability to
offer access to Third Party Systems from
Long Term Stock Exchange, Members
Exchange, MIAX Emerald, MIAX
PEARL Equities, Morgan Stanley, and
TD Ameritrade, and to offer
connectivity to Third Party Data Feeds
from ICE Data Services—ICE TMC,
Members Exchange, MIAX Emerald, and
MIAX PEARL Equities (together, the
‘‘Suspended Services’’).
The Commission’s suspension of such
services is likely to cause disruption to
the current Users of such services, who
must now acquire substitutes for the
3 For purposes of the Exchange’s colocation
services, a ‘‘User’’ means any market participant
that requests to receive colocation 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 colocation service
pursuant thereto would not be subject to colocation
fees for the same colocation 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–2021–26, SR–
NYSEArca–2021–38, SR–NYSECHX–2021–10, and
SR–NYSENAT–2021–13.
4 See Securities Exchange Act Release No. 91386
(March 23, 2021), 86 FR 16410 (March 29, 2021)
(SR–NYSE–2021–15).
5 See Securities Exchange Act Release No. 91790
(May 7, 2021) (SR–NYSE–2021–15, SR–
NYSEAMER–2021–13, SR–NYSEArca–2021–15,
SR–NYSECHX–2021–04, SR–NYSENAT–2021–05).
E:\FR\FM\18MYN1.SGM
18MYN1
26996
Federal Register / Vol. 86, No. 94 / Tuesday, May 18, 2021 / Notices
Suspended Services. As an
accommodation to such current Users,
the Exchange now proposes to provide
the Suspended Services to all Users, at
no charge, for a period of 14 days from
the date of filing (‘‘Transition Period’’),
to enable current Users to maintain their
connectivity while establishing alternate
connectivity.
Specifically, the Exchange proposes to
amend its Price List relating to
colocation to provide:
Connectivity to Suspended Third Party
Systems and Suspended Third Party
Data Feeds
Connectivity to the Third Party
Systems and Third Party Data Feeds
listed below (‘‘Suspended Services’’) is
available until May 24, 2021
(‘‘Transition Period’’). During the
Transition Period, the Exchange will not
charge any fees for the Suspended
Services. At the conclusion of the
Transition Period, any remaining
customers of Suspended Services will
have their Suspended Services
terminated.
Suspended Third Party Systems:
Long Term Stock Exchange (LTSE)
Members Exchange (MEMX)
MIAX Emerald
MIAX PEARL Equities
Morgan Stanley
TD Ameritrade
Suspended Third Party Data Feeds:
ICE Data Services—ICE TMC
Members Exchange (MEMX)
MIAX Emerald
MIAX PEARL Equities
Application and Impact of the Proposed
Changes
The proposed rule change would
apply to all Users, each of which would
be eligible to receive the Suspended
Services, at no charge, for a period of up
to 14 days.
Competitive Environment
The proposed changes are not
intended to address any other issues
relating to colocation services and/or
related fees, and the Exchange is not
aware of any problems that Users would
have in complying with the proposed
change.
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2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,7 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, to
6 15
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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16:40 May 17, 2021
Jkt 253001
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 believes that the
proposed rule change would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and
would further the protection of
investors and the public interest.
Without the proposed rule change, the
Suspended Services would be
terminated immediately, leaving the
current Users without access and
connectivity to the Suspended Services.
As a result, the Commission’s
suspension of the services at issue is
likely to cause disruption to the current
Users of the Suspended Services, who
must now acquire substitute services.
The Exchange’s proposal to provide the
Suspended Services, at no charge, to all
Users during the Transition Period
would give such current Users an
opportunity to transition to substitute
services without a gap in their service,
which would mitigate the disruption
and lessen the burden on such current
Users.
Further, the Exchange believes that
providing a 14-day Transition Period
would remove impediments to and
perfect the mechanism of a free and
open market and a national market
system and would protect investors and
the public interest. Current Users that
wish to replace the Suspended Services
will have to investigate their other
options, negotiate new terms, and
establish and test their new
connections. The proposed Transition
Period gives current Users time to
complete all the steps required to make
the transition without having a gap in
their connectivity to the Suspended
Services.
The Exchange believes that its
proposed rule change would perfect the
mechanism of a free and open market
and a national market system and, in
general, protect investors and the public
interest because it would highlight that
the Suspended Services are only
available during the Transition Period,
that no fee will be charged for the
Suspended Services during the
Transition Period. At the end of the
Transition Period, all Users will have
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
their Suspended Services terminated. It
would thereby reduce any potential
ambiguity and provide current Users
and other market participants with
clarity concerning the terms and period
of availability of the Suspended
Services.
In addition, the Exchange believes
that the proposed rule change would
promote just and equitable principles of
trade. In light of the Commission’s
suspension, the current Users of the
affected services are faced with an
unexpected, immediate disruption of
their connectivity, while market
participants that opted to obtain similar
connectivity from alternate providers
are is not. The Exchange’s proposal to
allow all Users to receive the Suspended
Services at no charge during the
Transition Period would help equalize
the treatment of these two groups of
market participants by providing the
same 14 day prospective period to both
groups and giving current Users time to
make the transition without having a
gap in their connectivity to the third
party systems and data feeds at issue.
Finally, the proposed rule change is
not designed to permit unfair
discrimination between market
participants. The proposed rule change
would apply equally to all Users. All
Users would be entitled to receive the
Suspended Services at no charge during
the Transition Period. At the conclusion
of the Transition Period, any remaining
customers of Suspended Services would
have their Suspended Services
terminated.
For all 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,8 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.
The Exchange believes that the
proposed rule change would not place
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not designed to
address any competitive issues but
rather is designed to give current Users
time to make a fair and orderly
transition to substitute services without
the disruptions to their operations and,
potentially, to the markets that would be
caused by an immediate termination of
the Suspended Services.
8 15
U.S.C. 78f(b)(8).
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Federal Register / Vol. 86, No. 94 / Tuesday, May 18, 2021 / 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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 9 and Rule
19b–4(f)(6) thereunder.10 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.
A proposed rule change filed under
Rule 19b–4(f)(6) 11 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),12 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest, as it
will allow the 14 day period to take
effect immediately. For this reason, the
Commission designates the proposed
rule change to be operative upon
filing.13
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
jbell on DSKJLSW7X2PROD with NOTICES
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
10 17
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16:40 May 17, 2021
Jkt 253001
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 14 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–2021–31 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–2021–31. 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
14 15
PO 00000
U.S.C. 78s(b)(2)(B).
Frm 00106
Fmt 4703
Sfmt 4703
26997
Number SR–NYSE–2021–31, and
should be submitted on or before June
8, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–10381 Filed 5–17–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91877]
Order Granting Application by Nasdaq
PHLX LLC for an Exemption Pursuant
to Section 36(a) of the Exchange Act
From the Rule Filing Requirements of
Section 19(b) of the Exchange Act With
Respect to Certain Rules Incorporated
by Reference
May 12, 2021.
Nasdaq PHLX LLC (‘‘PHLX’’ or the
‘‘Exchange’’) has filed with the
Securities and Exchange Commission
(‘‘Commission’’) an application for an
exemption under Section 36(a)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 1 from the rule filing
requirements of Section 19(b) of the
Act 2 with respect to certain rules of the
Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) that the
Exchange seeks to incorporate by
reference.3 Section 36 of the Exchange
Act authorizes the Commission to
conditionally or unconditionally
exempt any person, security, or
transaction, or any class thereof, from
any provision of the Exchange Act or
rule thereunder, if necessary or
appropriate in the public interest and
consistent with the protection of
investors.
On March 17, 2021, the Commission
published notice of the Exchange’s
proposal to adopt rules that update an
existing but outdated reference to an
NASD rule to refer instead to a current
FINRA rule, and that incorporate certain
FINRA rules related to recordkeeping
requirements.4 The proposed rule
change was immediately effective upon
filing pursuant to Section
15 17
CFR 200.30–3(a)(12).
U.S.C. 78mm(a)(1).
2 15 U.S.C. 78s(b).
3 See Letter from Angela Dunn, Principal
Associate General Counsel, to J. Matthew
DeLesDernier, Assistant Secretary, Securities and
Exchange Commission, dated March 5, 2021
(‘‘Exemptive Request’’).
4 See Exchange Act Release No. 91342 (Mar. 17,
2021), 86 FR 15538 (Mar. 23, 2021) (SR–PHLX–
2021–13).
1 15
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]]>Agencies
[Federal Register Volume 86, Number 94 (Tuesday, May 18, 2021)]
[Notices]
[Pages 26995-26997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10381]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91859; File No. SR-NYSE-2021-31]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Continue Offering Certain Connectivity Services That Have Been
Suspended by the Securities and Exchange Commission
May 12, 2021.
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 May 7, 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\ 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 continue offering certain connectivity
services that have been suspended by the Securities and Exchange
Commission (``Commission'') at no charge, for a period of 14 days, in
order to provide affected Users time to acquire substitute services
before their connectivity is terminated. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to continue offering certain connectivity
services that have been suspended by the Commission at no charge, for a
period of 14 days, in order to provide affected Users \3\ time to
acquire substitute services before their connectivity is terminated.
---------------------------------------------------------------------------
\3\ For purposes of the Exchange's colocation services, a
``User'' means any market participant that requests to receive
colocation 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 colocation
service pursuant thereto would not be subject to colocation fees for
the same colocation 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-2021-26, SR-
NYSEArca-2021-38, SR-NYSECHX-2021-10, and SR-NYSENAT-2021-13.
---------------------------------------------------------------------------
As background, on March 10, 2021, the Exchange filed with the
Commission a proposed rule change for immediate effectiveness (the
``Filing'') that amended the colocation services offered by the
Exchange to provide Users the option to access to the systems and data
feeds of various additional third parties.\4\ The proposed rule change
became operative on April 9, 2021. Since then, five Users have
contracted to receive the services that were added in the Filing.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 91386 (March 23,
2021), 86 FR 16410 (March 29, 2021) (SR-NYSE-2021-15).
---------------------------------------------------------------------------
On May 7, 2021, the Commission suspended the Filing and instituted
proceedings to determine whether the proposed rule change should be
approved or disapproved.\5\ Such action suspended the Exchange's
ability to offer access to Third Party Systems from Long Term Stock
Exchange, Members Exchange, MIAX Emerald, MIAX PEARL Equities, Morgan
Stanley, and TD Ameritrade, and to offer connectivity to Third Party
Data Feeds from ICE Data Services--ICE TMC, Members Exchange, MIAX
Emerald, and MIAX PEARL Equities (together, the ``Suspended
Services'').
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 91790 (May 7, 2021)
(SR-NYSE-2021-15, SR-NYSEAMER-2021-13, SR-NYSEArca-2021-15, SR-
NYSECHX-2021-04, SR-NYSENAT-2021-05).
---------------------------------------------------------------------------
The Commission's suspension of such services is likely to cause
disruption to the current Users of such services, who must now acquire
substitutes for the
[[Page 26996]]
Suspended Services. As an accommodation to such current Users, the
Exchange now proposes to provide the Suspended Services to all Users,
at no charge, for a period of 14 days from the date of filing
(``Transition Period''), to enable current Users to maintain their
connectivity while establishing alternate connectivity.
Specifically, the Exchange proposes to amend its Price List
relating to colocation to provide:
Connectivity to Suspended Third Party Systems and Suspended Third Party
Data Feeds
Connectivity to the Third Party Systems and Third Party Data Feeds
listed below (``Suspended Services'') is available until May 24, 2021
(``Transition Period''). During the Transition Period, the Exchange
will not charge any fees for the Suspended Services. At the conclusion
of the Transition Period, any remaining customers of Suspended Services
will have their Suspended Services terminated.
Suspended Third Party Systems:
Long Term Stock Exchange (LTSE)
Members Exchange (MEMX)
MIAX Emerald
MIAX PEARL Equities
Morgan Stanley
TD Ameritrade
Suspended Third Party Data Feeds:
ICE Data Services--ICE TMC
Members Exchange (MEMX)
MIAX Emerald
MIAX PEARL Equities
Application and Impact of the Proposed Changes
The proposed rule change would apply to all Users, each of which
would be eligible to receive the Suspended Services, at no charge, for
a period of up to 14 days.
Competitive Environment
The proposed changes are not intended to address any other issues
relating to colocation 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,\6\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\7\ 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.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change would remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and would further the protection of investors
and the public interest. Without the proposed rule change, the
Suspended Services would be terminated immediately, leaving the current
Users without access and connectivity to the Suspended Services. As a
result, the Commission's suspension of the services at issue is likely
to cause disruption to the current Users of the Suspended Services, who
must now acquire substitute services. The Exchange's proposal to
provide the Suspended Services, at no charge, to all Users during the
Transition Period would give such current Users an opportunity to
transition to substitute services without a gap in their service, which
would mitigate the disruption and lessen the burden on such current
Users.
Further, the Exchange believes that providing a 14-day Transition
Period would remove impediments to and perfect the mechanism of a free
and open market and a national market system and would protect
investors and the public interest. Current Users that wish to replace
the Suspended Services will have to investigate their other options,
negotiate new terms, and establish and test their new connections. The
proposed Transition Period gives current Users time to complete all the
steps required to make the transition without having a gap in their
connectivity to the Suspended Services.
The Exchange believes that its proposed rule change would perfect
the mechanism of a free and open market and a national market system
and, in general, protect investors and the public interest because it
would highlight that the Suspended Services are only available during
the Transition Period, that no fee will be charged for the Suspended
Services during the Transition Period. At the end of the Transition
Period, all Users will have their Suspended Services terminated. It
would thereby reduce any potential ambiguity and provide current Users
and other market participants with clarity concerning the terms and
period of availability of the Suspended Services.
In addition, the Exchange believes that the proposed rule change
would promote just and equitable principles of trade. In light of the
Commission's suspension, the current Users of the affected services are
faced with an unexpected, immediate disruption of their connectivity,
while market participants that opted to obtain similar connectivity
from alternate providers are is not. The Exchange's proposal to allow
all Users to receive the Suspended Services at no charge during the
Transition Period would help equalize the treatment of these two groups
of market participants by providing the same 14 day prospective period
to both groups and giving current Users time to make the transition
without having a gap in their connectivity to the third party systems
and data feeds at issue.
Finally, the proposed rule change is not designed to permit unfair
discrimination between market participants. The proposed rule change
would apply equally to all Users. All Users would be entitled to
receive the Suspended Services at no charge during the Transition
Period. At the conclusion of the Transition Period, any remaining
customers of Suspended Services would have their Suspended Services
terminated.
For all 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,\8\ the Exchange
believes that the proposed rule change will not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.
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\8\ 15 U.S.C. 78f(b)(8).
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The Exchange believes that the proposed rule change would not place
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change is not
designed to address any competitive issues but rather is designed to
give current Users time to make a fair and orderly transition to
substitute services without the disruptions to their operations and,
potentially, to the markets that would be caused by an immediate
termination of the Suspended Services.
[[Page 26997]]
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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
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.
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing.
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest, as
it will allow the 14 day period to take effect immediately. For this
reason, the Commission designates the proposed rule change to be
operative upon filing.\13\
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\13\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 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-2021-31 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-2021-31. 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-2021-31, and should be submitted on
or before June 8, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-10381 Filed 5-17-21; 8:45 am]
BILLING CODE 8011-01-P
