Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Transfer the Services and Fees Related to Colocation, 56107-56109 [2022-19686]
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Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–19683 Filed 9–12–22; 8:45 am]
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–95697; File No. SR–
NYSECHX–2022–20]
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Transfer the Services
and Fees Related to Colocation
September 7, 2022.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on August
24, 2022, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to (1) transfer
the services and fees related to
colocation from its Fee Schedule to the
schedule of Wireless Connectivity Fees
and Charges, and (2) change the name
of the schedule of Wireless Connectivity
Fees and Charges to the ‘‘Connectivity
Fee Schedule.’’ 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.
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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
21 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
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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. Purpose
The Exchange proposes to (1) transfer
the services and fees related to
colocation from the Fee Schedule to the
schedule of Wireless Connectivity Fees
and Charges (‘‘Connectivity Fee
Schedule’’), and (2) change the name of
the schedule of Wireless Connectivity
Fees and Charges to the ‘‘Connectivity
Fee Schedule.’’ There would be no
changes to the existing colocation
services and fees as a result of these
administrative changes.
Background
The colocation services and related
fees offered by the Exchange are
currently listed in the Exchange’s Fee
Schedule. Each of the Exchange’s
Affiliate SROs 4 similarly includes the
colocation services and related fees in
its own separate price list or fee
schedule.5 The colocation portions of
each of these price lists and fee
schedules are substantively identical.
In December 2020, the Exchange and
the Affiliate SROs created the
Connectivity Fee Schedule to list their
wireless connectivity services and
related fees. Instead of including the
wireless connectivity services and
related fees in the seven price lists and
fee schedules of the Exchange and the
Affiliate SROs, the Connectivity Fee
Schedule contains the wireless
4 The ‘‘Affiliate SROs’’ are the Exchange’s
affiliates New York Stock Exchange LLC, NYSE
American LLC, NYSE Arca, Inc., and NYSE
National, Inc.
5 See ‘‘Co-Location Fees’’ in ‘‘New York Stock
Exchange Price List 2022’’ at https://
www.nyse.com/publicdocs/nyse/markets/nyse/
NYSE_Price_List.pdf; ‘‘NYSE American Equities
Price List’’ at https://www.nyse.com/publicdocs/
nyse/markets/nyse-american/NYSE_America_
Equities_Price_List.pdf; ‘‘NYSE American Options
Fee Schedule’’ at https://www.nyse.com/
publicdocs/nyse/markets/american-options/NYSE_
American_Options_Fee_Schedule.pdf; ‘‘NYSE Arca
Equities Fees and Charges’’ at https://
www.nyse.com/publicdocs/nyse/markets/nyse-arca/
NYSE_Arca_Marketplace_Fees.pdf; ‘‘NYSE Arca
Options Fees and Charges’’ at https://
www.nyse.com/publicdocs/nyse/markets/arcaoptions/NYSE_Arca_Options_Fee_Schedule.pdf;
‘‘Fee Schedule of NYSE Chicago, Inc.’’ at https://
www.nyse.com/publicdocs/nyse/NYSE_Chicago_
Fee_Schedule.pdf; and ‘‘NYSE National, Inc.
Schedule of Fees and Rebates’’ at https://
www.nyse.com/publicdocs/nyse/regulation/nyse/
NYSE_National_Schedule_of_Fees.pdf.
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
56107
connectivity services and charges for the
Exchange and the Affiliate SROs in one
single fee schedule.
In an administrative change, the
Exchange now proposes to remove its
colocation services and related fees from
its Fee Schedule and to move them into
the Connectivity Fee Schedule, so that
services and fees related to connectivity
within, into and from the Mahwah Data
Center would appear in the same
Connectivity Fee Schedule. Each of the
Affiliate SROs is contemporaneously
making a similar filing.6 To reflect the
fact that the schedule would include
services and fees for connectivity with
the Mahwah Data Center that are not
wireless, the Exchange also proposes to
change its name to the ‘‘Connectivity
Fee Schedule.’’
Proposed Amendments to the Fee
Schedule
As shown in the attached Exhibit 5A
[sic], the Exchange proposes to delete
the entirety of the text in the Exchange’s
Fee Schedule under the heading ‘‘CoLocation Fees.’’
Proposed Amendments to the
Connectivity Fee Schedule
As shown in the attached Exhibit 5B
[sic], the Exchange proposes to amend
the title to the ‘‘Connectivity Fee
Schedule.’’
The Exchange proposes to insert the
entirety of the text currently located in
the Exchange’s Fee Schedule under the
heading ‘‘Co-Location Fees’’ into the
Connectivity Fee Schedule under the
heading ‘‘A. Colocation Fees.’’ No
changes would be made to any of this
text, except for the following clarifying
and non-substantive changes:
1. The subheading ‘‘Definitions’’
would be amended to ‘‘Colocation
Definitions.’’
2. The subheading ‘‘General Notes’’
would be amended to ‘‘Colocation
Notes’’ and current General Note 1
would be deleted, as it would no longer
be necessary since it would be
duplicative of the existing General Note
in the Connectivity Fee Schedule. The
remainder of the current General Notes
2–8 would be renumbered as Colocation
Notes 1–7 and the cross references in
current General Note 8 would be
updated accordingly.
3. In a conforming change, in the table
of services and fees, the note to the
Partial Cabinet Solution bundles would
be amended to change the cross
6 Each of the Affiliate SROs has submitted
substantially similar rule changes to move their
colocation price lists to the Connectivity Fee
Schedule. See SR–NYSE–2022–40, SR–
NYSEAMER–2022–37, SR–NYSEARCA–2022–56,
and SR–NYSENAT–2022–16.
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Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices
reference from ‘‘Note 2 under ‘General
Notes’ ’’ to ‘‘Note 1 under ‘Colocation
Notes.’ ’’
4. In a conforming change, in the table
of services and fees, the note to the Data
Center Fiber Cross Connect would be
amended to change the cross reference
from ‘‘General Note 3’’ to ‘‘Colocation
Note 2.’’
5. With the addition of the Colocation
Fees at subheading ‘‘A.’’ of the
Connectivity Fee Schedule, each of the
subsequent headings would be
renumbered accordingly. Specifically,
‘‘A. Wireless Connectivity’’ would
become ‘‘B. Wireless Connectivity,’’ and
‘‘B. Wireless Connectivity to Market
Data’’ would become ‘‘C. Wireless
Connectivity to Market Data.’’
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Application and Impact of the Proposed
Changes
As noted above, the proposed change
is administrative in nature. Any market
participant that requests to receive
colocation services directly from the
Exchange (a ‘‘User’’) 7 is currently
subject to the described services and
fees, none of which are new or novel.
Current Users would not incur any new
fees and the Exchange does not expect
to attract any new Users as a result of
the proposed change. Rather, the change
would simply move the description of
the existing colocation services and fees
to the Connectivity Fee Schedule and
change its title accordingly.
As a result of the proposed change,
the services and fees related to
connectivity within, into, and from the
Mahwah Data Center, including
colocation, would appear in the same
Connectivity Fee Schedule, and market
participants would be able to see all
such connectivity services and fees in
one place.
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 changes are 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,8 in general, and
with Section 6(b)(1) 9 in particular, in
7 See Securities Exchange Act Release No. 87408
(October 28, 2019), 84 FR 58778 at n.6 (November
1, 2019) (SR–NYSECHX–2019–12).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(1).
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that it enables the Exchange to be so
organized as to have the capacity to be
able to carry out the purposes of the
Exchange Act and to comply, and to
enforce compliance by its exchange
members and persons associated with
its exchange members, with the
provisions of the Exchange Act, the
rules and regulations thereunder, and
the rules of the Exchange. The Exchange
also believes that the proposed change
furthers the objectives of Section 6(b)(5)
of the Act 10 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 mechanisms of, a free
and open market and a national market
system and, in general, to protect
investors and the public interest and
because it is not designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
The proposed rule change is a nonsubstantive change and does not impact
the services available to Users or the
fees charged for such services.
Currently, colocation services and the
related fees for the Exchange and its
Affiliate SROs are substantively
identical yet are located in seven
separate price lists and fee schedules
and not in the Connectivity Fee
Schedule. The Exchange believes that
the proposed rule change would enable
the Exchange to continue to be so
organized as to have the capacity to
carry out the purposes of the Exchange
Act and comply and enforce compliance
with the provisions of the Exchange Act
by its members and persons associated
with its members, because moving the
description of the existing colocation
services and fees to the Connectivity Fee
Schedule and changing the Connectivity
Fee Schedule’s title would mean that
the services and fees related to
connectivity within, into, and from the
Mahwah Data Center, including
colocation, would appear in one
Connectivity Fee Schedule. All market
participants would be able to enjoy the
convenience of seeing such connectivity
services and fees in one place,
alleviating any possible market
participant confusion that could
currently arise from having to consult
more than one document. Making the
change would therefore contribute to
the orderly operation of the Exchange by
adding clarity and transparency
regarding what connectivity is offered
10 15
PO 00000
U.S.C. 78f(b)(5).
Frm 00121
Fmt 4703
within, into, and from the Mahwah Data
Center.
The Exchange believes that the
proposed change would remove
impediments to, and perfect the
mechanisms of, a free and open market
and a national market system and, in
general, protect investors and the public
interest because moving the colocation
services and charges from the
Exchange’s Fee Schedule to the
Connectivity Fee Schedule would more
accurately reflect the fact that Users are
not required to be members of the
Exchange or of any of the Affiliate
SROs. A User, like any market
participant, could more easily navigate,
understand, and comply with the list of
colocation services and fees, without
having to access the price list or fee
schedule of an exchange of which it is
not a member. The Exchange believes
that the proposed change would thereby
reduce potential investor or market
participant confusion. Similarly, the
Exchange believes that the proposed
change would reduce potential investor
or market participant confusion because
market participants would be able to see
all connectivity services and fees in one
place, alleviating any possible market
participant confusion that could
currently arise from having to consult
more than one document.
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,11 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 move the
description of the existing colocation
services and fees to the Connectivity Fee
Schedule and change its title. As a
result of the proposed rule change, the
services and fees related to connectivity
within, into, and from the Mahwah Data
Center would appear in the same
Connectivity Fee Schedule. All market
participants would be able to see the
connectivity services and fees within,
11 15
Sfmt 4703
E:\FR\FM\13SEN1.SGM
U.S.C. 78f(b)(8).
13SEN1
Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices
into, and from the Mahwah Data Center
in one place, alleviating any possible
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 proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and Rule 19b–4(f)(3) 13
thereunder in that the proposed rule
change is concerned solely with the
administration of the Exchange.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 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–
NYSECHX–2022–20 on the subject line.
jspears on DSK121TN23PROD with NOTICES
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–2022–20. This
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(3).
14 15 U.S.C. 78s(b)(2)(B).
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–2022–20 and
should be submitted on or before
October 4, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–19686 Filed 9–12–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–359, OMB Control No.
3235–0410]
Submission for OMB Review;
Comment Request: Extension; Rules
17h–1T and 17h–2T
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
13 17
VerDate Sep<11>2014
17:30 Sep 12, 2022
15 17
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PO 00000
CFR 200.30–3(a)(12).
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56109
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rules 17h–1T and 17h–2T (17 CFR
240.17h–1T and 17 CFR 240.17h–2T),
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.).
Rule 17h–1T requires a covered
broker-dealer to maintain and preserve
records and other information
concerning certain entities that are
associated with the broker-dealer. This
requirement extends to the financial and
securities activities of the holding
company, affiliates and subsidiaries of
the broker-dealer that are reasonably
likely to have a material impact on the
financial or operational condition of the
broker-dealer. Rule 17h–2T requires a
covered broker-dealer to file with the
Commission quarterly reports and a
cumulative year-end report concerning
the information required to be
maintained and preserved under Rule
17h–1T.
The collection of information required
by Rules 17h–1T and 17h–2T,
collectively referred to as the ‘‘risk
assessment rules,’’ is necessary to
enable the Commission to monitor the
activities of a broker-dealer affiliate
whose business activities are reasonably
likely to have a material impact on the
financial or operational condition of the
broker-dealer. Without this information,
the Commission would be unable to
assess the potentially damaging impact
of the affiliate’s activities on the brokerdealer.
There are currently 235 respondents
that must comply with Rules 17h–1T
and 17h–2T. Each of these 235
respondents are estimated to require 10
hours per year to maintain the records
required under Rule 17h–1T, for an
aggregate estimated annual burden of
2,350 hours (235 respondents × 10
hours). In addition, each of these 235
respondents must make five annual
responses under Rule 17h–2T. These
five responses are estimated to require
14 hours per respondent per year for an
aggregate estimated annual burden of
3,290 hours (235 respondents × 14
hours).
In addition, new respondents must
draft an organizational chart required
under Rule 17h–1T and establish a
system for complying with the risk
assessment rules. The staff estimates
that drafting the required organizational
chart requires one hour and establishing
a system for complying with the risk
assessment rules requires three hours.
Based on the reduction in the number
of filers in recent years, the staff
estimates there will be zero new
E:\FR\FM\13SEN1.SGM
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]]>Agencies
[Federal Register Volume 87, Number 176 (Tuesday, September 13, 2022)]
[Notices]
[Pages 56107-56109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19686]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95697; File No. SR-NYSECHX-2022-20]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Transfer
the Services and Fees Related to Colocation
September 7, 2022.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on August 24, 2022, 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to (1) transfer the services and fees related
to colocation from its Fee Schedule to the schedule of Wireless
Connectivity Fees and Charges, and (2) change the name of the schedule
of Wireless Connectivity Fees and Charges to the ``Connectivity Fee
Schedule.'' 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 (1) transfer the services and fees related
to colocation from the Fee Schedule to the schedule of Wireless
Connectivity Fees and Charges (``Connectivity Fee Schedule''), and (2)
change the name of the schedule of Wireless Connectivity Fees and
Charges to the ``Connectivity Fee Schedule.'' There would be no changes
to the existing colocation services and fees as a result of these
administrative changes.
Background
The colocation services and related fees offered by the Exchange
are currently listed in the Exchange's Fee Schedule. Each of the
Exchange's Affiliate SROs \4\ similarly includes the colocation
services and related fees in its own separate price list or fee
schedule.\5\ The colocation portions of each of these price lists and
fee schedules are substantively identical.
---------------------------------------------------------------------------
\4\ The ``Affiliate SROs'' are the Exchange's affiliates New
York Stock Exchange LLC, NYSE American LLC, NYSE Arca, Inc., and
NYSE National, Inc.
\5\ See ``Co-Location Fees'' in ``New York Stock Exchange Price
List 2022'' at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf; ``NYSE American Equities Price List'' at
https://www.nyse.com/publicdocs/nyse/markets/nyse-american/NYSE_America_Equities_Price_List.pdf; ``NYSE American Options Fee
Schedule'' at https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf; ``NYSE Arca Equities
Fees and Charges'' at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf; ``NYSE Arca Options Fees
and Charges'' at https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf; ``Fee Schedule of NYSE
Chicago, Inc.'' at https://www.nyse.com/publicdocs/nyse/NYSE_Chicago_Fee_Schedule.pdf; and ``NYSE National, Inc. Schedule of
Fees and Rebates'' at https://www.nyse.com/publicdocs/nyse/regulation/nyse/NYSE_National_Schedule_of_Fees.pdf.
---------------------------------------------------------------------------
In December 2020, the Exchange and the Affiliate SROs created the
Connectivity Fee Schedule to list their wireless connectivity services
and related fees. Instead of including the wireless connectivity
services and related fees in the seven price lists and fee schedules of
the Exchange and the Affiliate SROs, the Connectivity Fee Schedule
contains the wireless connectivity services and charges for the
Exchange and the Affiliate SROs in one single fee schedule.
In an administrative change, the Exchange now proposes to remove
its colocation services and related fees from its Fee Schedule and to
move them into the Connectivity Fee Schedule, so that services and fees
related to connectivity within, into and from the Mahwah Data Center
would appear in the same Connectivity Fee Schedule. Each of the
Affiliate SROs is contemporaneously making a similar filing.\6\ To
reflect the fact that the schedule would include services and fees for
connectivity with the Mahwah Data Center that are not wireless, the
Exchange also proposes to change its name to the ``Connectivity Fee
Schedule.''
---------------------------------------------------------------------------
\6\ Each of the Affiliate SROs has submitted substantially
similar rule changes to move their colocation price lists to the
Connectivity Fee Schedule. See SR-NYSE-2022-40, SR-NYSEAMER-2022-37,
SR-NYSEARCA-2022-56, and SR-NYSENAT-2022-16.
---------------------------------------------------------------------------
Proposed Amendments to the Fee Schedule
As shown in the attached Exhibit 5A [sic], the Exchange proposes to
delete the entirety of the text in the Exchange's Fee Schedule under
the heading ``Co-Location Fees.''
Proposed Amendments to the Connectivity Fee Schedule
As shown in the attached Exhibit 5B [sic], the Exchange proposes to
amend the title to the ``Connectivity Fee Schedule.''
The Exchange proposes to insert the entirety of the text currently
located in the Exchange's Fee Schedule under the heading ``Co-Location
Fees'' into the Connectivity Fee Schedule under the heading ``A.
Colocation Fees.'' No changes would be made to any of this text, except
for the following clarifying and non-substantive changes:
1. The subheading ``Definitions'' would be amended to ``Colocation
Definitions.''
2. The subheading ``General Notes'' would be amended to
``Colocation Notes'' and current General Note 1 would be deleted, as it
would no longer be necessary since it would be duplicative of the
existing General Note in the Connectivity Fee Schedule. The remainder
of the current General Notes 2-8 would be renumbered as Colocation
Notes 1-7 and the cross references in current General Note 8 would be
updated accordingly.
3. In a conforming change, in the table of services and fees, the
note to the Partial Cabinet Solution bundles would be amended to change
the cross
[[Page 56108]]
reference from ``Note 2 under `General Notes' '' to ``Note 1 under
`Colocation Notes.' ''
4. In a conforming change, in the table of services and fees, the
note to the Data Center Fiber Cross Connect would be amended to change
the cross reference from ``General Note 3'' to ``Colocation Note 2.''
5. With the addition of the Colocation Fees at subheading ``A.'' of
the Connectivity Fee Schedule, each of the subsequent headings would be
renumbered accordingly. Specifically, ``A. Wireless Connectivity''
would become ``B. Wireless Connectivity,'' and ``B. Wireless
Connectivity to Market Data'' would become ``C. Wireless Connectivity
to Market Data.''
Application and Impact of the Proposed Changes
As noted above, the proposed change is administrative in nature.
Any market participant that requests to receive colocation services
directly from the Exchange (a ``User'') \7\ is currently subject to the
described services and fees, none of which are new or novel. Current
Users would not incur any new fees and the Exchange does not expect to
attract any new Users as a result of the proposed change. Rather, the
change would simply move the description of the existing colocation
services and fees to the Connectivity Fee Schedule and change its title
accordingly.
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\7\ See Securities Exchange Act Release No. 87408 (October 28,
2019), 84 FR 58778 at n.6 (November 1, 2019) (SR-NYSECHX-2019-12).
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As a result of the proposed change, the services and fees related
to connectivity within, into, and from the Mahwah Data Center,
including colocation, would appear in the same Connectivity Fee
Schedule, and market participants would be able to see all such
connectivity services and fees in one place.
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 changes are 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,\8\ in general, and with Section 6(b)(1)
\9\ in particular, in that it enables the Exchange to be so organized
as to have the capacity to be able to carry out the purposes of the
Exchange Act and to comply, and to enforce compliance by its exchange
members and persons associated with its exchange members, with the
provisions of the Exchange Act, the rules and regulations thereunder,
and the rules of the Exchange. The Exchange also believes that the
proposed change furthers the objectives of Section 6(b)(5) of the Act
\10\ 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 mechanisms of, a free and open market and a national market
system and, in general, to protect investors and the public interest
and because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(1).
\10\ 15 U.S.C. 78f(b)(5).
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The proposed rule change is a non-substantive change and does not
impact the services available to Users or the fees charged for such
services. Currently, colocation services and the related fees for the
Exchange and its Affiliate SROs are substantively identical yet are
located in seven separate price lists and fee schedules and not in the
Connectivity Fee Schedule. The Exchange believes that the proposed rule
change would enable the Exchange to continue to be so organized as to
have the capacity to carry out the purposes of the Exchange Act and
comply and enforce compliance with the provisions of the Exchange Act
by its members and persons associated with its members, because moving
the description of the existing colocation services and fees to the
Connectivity Fee Schedule and changing the Connectivity Fee Schedule's
title would mean that the services and fees related to connectivity
within, into, and from the Mahwah Data Center, including colocation,
would appear in one Connectivity Fee Schedule. All market participants
would be able to enjoy the convenience of seeing such connectivity
services and fees in one place, alleviating any possible market
participant confusion that could currently arise from having to consult
more than one document. Making the change would therefore contribute to
the orderly operation of the Exchange by adding clarity and
transparency regarding what connectivity is offered within, into, and
from the Mahwah Data Center.
The Exchange believes that the proposed change would remove
impediments to, and perfect the mechanisms of, a free and open market
and a national market system and, in general, protect investors and the
public interest because moving the colocation services and charges from
the Exchange's Fee Schedule to the Connectivity Fee Schedule would more
accurately reflect the fact that Users are not required to be members
of the Exchange or of any of the Affiliate SROs. A User, like any
market participant, could more easily navigate, understand, and comply
with the list of colocation services and fees, without having to access
the price list or fee schedule of an exchange of which it is not a
member. The Exchange believes that the proposed change would thereby
reduce potential investor or market participant confusion. Similarly,
the Exchange believes that the proposed change would reduce potential
investor or market participant confusion because market participants
would be able to see all connectivity services and fees in one place,
alleviating any possible market participant confusion that could
currently arise from having to consult more than one document.
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,\11\ 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 move the description of the existing colocation services and
fees to the Connectivity Fee Schedule and change its title. As a result
of the proposed rule change, the services and fees related to
connectivity within, into, and from the Mahwah Data Center would appear
in the same Connectivity Fee Schedule. All market participants would be
able to see the connectivity services and fees within,
[[Page 56109]]
into, and from the Mahwah Data Center in one place, alleviating any
possible market participant confusion.
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\11\ 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 proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(3) \13\ thereunder in
that the proposed rule change is concerned solely with the
administration of the Exchange.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(3).
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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-NYSECHX-2022-20 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-2022-20. 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-2022-20 and should be submitted
on or before October 4, 2022.
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,
Deputy Secretary.
[FR Doc. 2022-19686 Filed 9-12-22; 8:45 am]
BILLING CODE 8011-01-P
