Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Transfer the Services and Fees Related to Colocation, 56126-56129 [2022-19688]

Download as PDF 56126 Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. 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 19 and Rule 19b–4(f)(6) thereunder.20 Because the foregoing 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)(iii) of the Act 21 and Rule 19b–4(f)(6) thereunder.22 A proposed rule change filed under Rule 19b–4(f)(6) 23 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii),24 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 Exchange has represented that the proposal does not seek to introduce new functionality, but rather, it offers to OUCH users advanced functionality that already exists for RASH users. The Commission believes that waiver of the 30-day operative delay for this proposal is consistent with the protection of investors and the public interest as it will allow the Exchange to provide existing advanced functionality to OUCH users without delay. Accordingly, the Commission hereby waives the 30-day operative 19 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 21 15 U.S.C. 78s(b)(3)(A)(iii). 22 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6) requires a self-regulatory organization 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. 23 17 CFR 240.19b–4(f)(6). 24 17 CFR 240.19b–4(f)(6)(iii). jspears on DSK121TN23PROD with NOTICES 20 17 VerDate Sep<11>2014 17:30 Sep 12, 2022 Jkt 256001 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 under Section 19(b)(2)(B) 26 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– BX–2022–015 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–BX–2022–015. 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 25 For purposes only of accelerating the operative date of this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 26 15 U.S.C. 78s(b)(2)(B). PO 00000 Frm 00139 Fmt 4703 Sfmt 4703 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–BX–2022–015 and should be submitted on or before October 4, 2022. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.27 J. Matthew DeLesDernier, Deputy Secretary. [FR Doc. 2022–19684 Filed 9–12–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–95699; File No. SR– NYSEAMER–2022–37] Self-Regulatory Organizations; NYSE American LLC; 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 American LLC (‘‘NYSE American’’ 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 the NYSE American Equities Price List and Fee Schedule and the NYSE American Options Fee Schedule (together, the ‘‘Price List and 27 17 CFR 200.30–3(a)(12), (59). U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 1 15 E:\FR\FM\13SEN1.SGM 13SEN1 Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices 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 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 Price List and 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. jspears on DSK121TN23PROD with NOTICES Background The colocation services and related fees offered by the Exchange are currently listed in the Exchange’s Price List and 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 4 The ‘‘Affiliate SROs’’ are the Exchange’s affiliates New York Stock Exchange LLC, NYSE Arca, Inc., NYSE Chicago, 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:// VerDate Sep<11>2014 17:30 Sep 12, 2022 Jkt 256001 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 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 Price List and 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 Price List and Fee Schedule As shown in the attached Exhibit 5A [sic], the Exchange proposes to delete the entirety of the text in the NYSE American Equities Price List and Fee Schedule under the heading ‘‘CoLocation Fees’’ and the entirety of the text in the NYSE American Options Fee Schedule under heading ‘‘B. 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.’’ 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. 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–NYSEArca– 2022–56, SR–NYSECHX–2022–20, and SR– NYSENAT–2022–16. PO 00000 Frm 00140 Fmt 4703 Sfmt 4703 56127 The Exchange proposes to insert the entirety of the text currently located in the NYSE American Equities Price List and Fee Schedule under the heading ‘‘Co-Location Fees’’ (which is identical to the text in the NYSE American Options Fee Schedule under heading ‘‘B. 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 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 7 See Securities Exchange Act Release No. 76009 (September 29, 2015), 80 FR 60213 (October 5, 2015) (SR–NYSEMKT–2015–67). E:\FR\FM\13SEN1.SGM 13SEN1 56128 Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices jspears on DSK121TN23PROD with NOTICES 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 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 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(1). 10 15 U.S.C. 78f(b)(5). 9 15 VerDate Sep<11>2014 17:30 Sep 12, 2022 Jkt 256001 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 Price List and 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 PO 00000 Frm 00141 Fmt 4703 Sfmt 4703 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, 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 11 15 U.S.C. 78f(b)(8). U.S.C. 78s(b)(3)(A). 13 17 CFR 240.19b–4(f)(3). 12 15 E:\FR\FM\13SEN1.SGM 13SEN1 Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices 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: jspears on DSK121TN23PROD with NOTICES 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– NYSEAMER–2022–37 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–NYSEAMER–2022–37. 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 14 15 U.S.C. 78s(b)(2)(B). VerDate Sep<11>2014 17:30 Sep 12, 2022 Jkt 256001 submissions should refer to File Number SR–NYSEAMER–2022–37 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. 2022–19688 Filed 9–12–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–95685; File No. SR–ICEEU– 2022–014] Self-Regulatory Organizations; ICE Clear Europe Limited; Order Approving Proposed Rule Change Relating to the ICE Clear Europe Outsourcing Policy September 7, 2022. I. Introduction On July 19, 2022, ICE Clear Europe Limited (‘‘ICE Clear Europe’’ or ‘‘ICEEU’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 a proposed rule change to adopt an Outsourcing Policy. The proposed rule change was published for comment in the Federal Register on August 4, 2022.3 The Commission did not receive comments regarding the proposed rule change. For the reasons discussed below, the Commission is approving the proposed rule change. II. Description of the Proposed Rule Change The proposed rule change would create an Outsourcing Policy to describe, in a consolidated document, ICEEU’s procedures for management of its outsourcing arrangements with thirdparty providers and affiliates, including how ICEEU’s board maintains oversight of these outsourcing arrangements.4 The Outsourcing Policy, as a rule of the clearing agency, is designed to complement two of ICE Clear Europe’s 15 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of Proposed Rule Change Relating to the ICE Clear Europe Outsourcing Policy, Exchange Act Release No. 95394 (July 29, 2022); 87 FR 47809 (Aug. 4, 2022) (File No. SR– ICEEU–2022–014) (‘‘Notice’’). 4 The description that follows is substantially excerpted from the Notice. Capitalized terms not otherwise defined herein have the meanings assigned to them in ICEEU’s Outsourcing Policy or Rules, as applicable. 1 15 PO 00000 Frm 00142 Fmt 4703 Sfmt 4703 56129 policies: the Vendor Management Policy (‘‘VMP’’) and the Outsourcing Operating Manual (‘‘OOM’’). The VMP describes certain group-wide policies of ICEEU’s parent, Intercontinental Exchange, Inc., with respect to its outsourcing arrangements with third parties. The OOM sets out additional details concerning the steps it follows in order to introduce, amend and maintain outsourcing arrangements. Together with the VMP, the proposed Outsourcing Policy would document how the ICEEU assesses the risks of outsourcing certain functions. The Outsourcing Policy would not represent a change in the ICEEU’s current practices, but rather more clearly document those practices in an overall policy. The Outsourcing Policy would include an introduction section that describes the differences between outsourcing and purchasing services, the former described as ICEEU’s use of a service provider to perform an ongoing activity that would usually be performed by ICEEU and which often involves transferring or sharing related non-public proprietary information, and the latter being ICEEU’s purchases of services, goods and facilities and which would typically not include any transfer of non-public proprietary information. The Outsourcing Policy would also differentiate ICEEU’s outsourcing practices and purchasing arrangements with third-party providers from those with its affiliates. The Outsourcing Policy would state that outsourcing through its affiliates typically have a lower risk profile for ICEEU because affiliates tend to be regulated entities with the same or similar systems, risk appetites, standards and processes, among other commonalities, as ICE Clear Europe. The Outsourcing Policy would also set out ICEEU’s overall objectives when considering outsourcing. The Outsourcing Policy would include a discussion of outsourcing to third parties and to ICEEU’s affiliates. As mentioned, outsourcing to third parties is covered under the VMP, which covers due diligence, risk assessment, suitability, and performance management, among other topics. Outsourcing to affiliates of ICEEU would follow the same process and standards as under the VMP; however, assessments would be performed by ICEEU’s senior management rather than the ICEEU’s Vendor Management Office. ICEEU represented that, in all cases, it would look to ensure that all service provider-related incidents (such as service interruptions) are recorded, monitored, and escalated to ICEEU’s E:\FR\FM\13SEN1.SGM 13SEN1

Agencies

[Federal Register Volume 87, Number 176 (Tuesday, September 13, 2022)]
[Notices]
[Pages 56126-56129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19688]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95699; File No. SR-NYSEAMER-2022-37]


Self-Regulatory Organizations; NYSE American LLC; 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 American LLC (``NYSE American'' 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 the NYSE American Equities Price List and Fee 
Schedule and the NYSE American Options Fee Schedule (together, the 
``Price List and

[[Page 56127]]

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 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 Price List and 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 Price List and 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 Arca, Inc., NYSE Chicago, 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 Price List and 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-NYSEArca-2022-56, 
SR-NYSECHX-2022-20, and SR-NYSENAT-2022-16.
---------------------------------------------------------------------------

Proposed Amendments to the Price List and Fee Schedule
    As shown in the attached Exhibit 5A [sic], the Exchange proposes to 
delete the entirety of the text in the NYSE American Equities Price 
List and Fee Schedule under the heading ``Co-Location Fees'' and the 
entirety of the text in the NYSE American Options Fee Schedule under 
heading ``B. 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 NYSE American Equities Price List and Fee Schedule under 
the heading ``Co-Location Fees'' (which is identical to the text in the 
NYSE American Options Fee Schedule under heading ``B. 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 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

[[Page 56128]]

would simply move the description of the existing colocation services 
and fees to the Connectivity Fee Schedule and change its title 
accordingly.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 76009 (September 29, 
2015), 80 FR 60213 (October 5, 2015) (SR-NYSEMKT-2015-67).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(1).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    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 Price List and 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, into, and from 
the Mahwah Data Center in one place, alleviating any possible market 
participant confusion.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------

    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

[[Page 56129]]

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.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSEAMER-2022-37 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-NYSEAMER-2022-37. 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-NYSEAMER-2022-37 and should be submitted 
on or before October 4, 2022.
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-19688 Filed 9-12-22; 8:45 am]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.