Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Connectivity Fee Schedule, 12398-12402 [2024-03223]
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Federal Register / Vol. 89, No. 33 / Friday, February 16, 2024 / Notices
and the MDC and the Exchange believes
it intends to expand its offering to
connect to the TR2, underscoring that
the Exchange could not impose any
impediments to a third party providing
wireless connectivity.
The proposed rule change would
provide customers the ability to connect
to a second Canadian data center for the
same price they currently pay to
connect to one. All customers would be
able to choose if they want connections
to one or both Canadian data centers
and the size of connection they want.
The Exchange does not believe that the
proposed rule change would place any
customer at a relative disadvantage
compared to other customers.
For these reasons, the Exchange
believes that the proposed rule change
reflects this competitive environment
and does not impose any undue burden
on intermarket competition.
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 17 and Rule
19b–4(f)(6) thereunder.18 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 19 and Rule 19b–4(f)(6)(iii)
thereunder.20
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
17 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
19 15 U.S.C. 78s(b)(3)(A).
20 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.
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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) 21 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–
NYSENAT–2024–02 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–NYSENAT–2024–02. 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
21 15
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U.S.C. 78s(b)(2)(B).
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withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–NYSENAT–2024–02 and should be
submitted on or before March 8, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–03222 Filed 2–15–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99522; File No. SR–
NYSECHX–2024–03]
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to Amend the
Connectivity Fee Schedule
February 12, 2024.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’),2 and Rule 19b–4 thereunder,3
notice is hereby given that on January
29, 2024, the NYSE Chicago, Inc.
(‘‘NYSE Chicago’’ or the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Connectivity Fee Schedule to expand
existing wireless connections between
the data center in Mahwah, New Jersey
and Canada. 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 the
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
22 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 89, No. 33 / Friday, February 16, 2024 / Notices
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Connectivity Fee Schedule to expand
existing wireless connections between
the data center in Mahwah, New Jersey
(‘‘MDC’’) 4 and Canada.5
The Exchange expects that the
proposed rule change would become
operative no later than March 31, 2024.
The Exchange will announce the date
that the proposed services will be
available through a customer notice.
Proposed Changes to the Wireless
Connections
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The Exchange currently offers
wireless connections between the MDC
and the access center in the Markham,
Canada data center (‘‘Markham’’) of 1, 5
and 10 Mb (the ‘‘Markham
Connections’’).6 The Exchange
understands that purchasers may also
wish to use a wireless bandwidth
connection to send trading orders and
relay market data between their
equipment in the MDC and a data center
in Toronto, Canada that hosts several
Canadian exchanges, including Nasdaq
Canada (‘‘TR2’’). With such a wireless
connection, purchasers’ wireless
connections to the Toronto area would
not be limited to Markham and the
exchanges located there. However, the
Exchange is not aware of any wireless
connection between the MDC and TR2
that is currently commercially available.
To that end, the Exchange proposes to
expand its existing wireless bandwidth
connections to Markham to include
connections of the same size to TR2 (the
‘‘TR2 Connections’’). As a result of the
proposed expansion, a purchaser’s
wireless bandwidth connection would
be between the MDC and both Markham
and TR2.7
The Exchange proposes to offer this
expanded service at no additional
charge. The previously filed 8 initial
charge and monthly recurring charge
(‘‘MRC’’) for the Markham Connections
would now also include the TR2
Connections as well. Customers
purchasing the service would not be
required to connect to both Markham
and TR2, but if they chose to do so, they
could connect to both data centers for
the same fees that currently apply to
connectivity to Markham only.
Customers that currently have a
Markham Connection would not have to
pay a second initial charge or a second
MRC in order to expand their Markham
12399
Connection to include a TR2
Connection of the same size.9
Under the proposed expanded
service, northbound and southbound
wireless services would operate in a
distinct manner. Data sent northbound
from the MDC would be transported to
both Canadian access centers such that
the same data would be delivered to
both Markham and TR2. The customer
would not have two independent
connections but rather would use a
single connection to reach both
Canadian access centers. At each, the
customer would have access to the total
Mb of the wireless circuit.10
Southbound, the purchaser could
choose to send data from one or both of
the Canadian access centers. The
purchaser could send data up to the
total number of Mb of the wireless
circuit from either access center, so long
as the combined amount of data that
reached the MDC did not exceed the
total Mb of the wireless circuit that the
customer purchased. The distribution
would not be static: the number of Mb
of data from either Canadian access
center could vary at the customer’s
discretion.11
In order to implement the proposed
change, the Exchange proposes to
amend the table under ‘‘B. Wireless
Connectivity’’ in the Connectivity Fee
Schedule as follows (proposed new text
italicized and proposed deletions in
brackets):
Type of service
Description
Amount of charge
Wireless Connectionss between Mahwah Data Center and one
or both of (a) Markham access center and (b) TR2 access
center.
Wireless Connections between Mahwah Data Center and one
or both of (a) Markham access center and (b) TR2 access
center.
Wireless Connections between Mahwah Data Center and one
or both of (a) Markham access center and (b) TR2 access
center.
1 Mb Circuit ....
$10,000 per connection initial charge plus monthly charge per
connection of $6,000.
5 Mb Circuit ....
$10,000 per connection initial charge plus monthly charge per
connection of $15,500.
10 Mb Circuit ..
$10,000 per connection initial charge plus monthly charge per
connection of $23,000.
The Exchange also proposes to add
the following to the Connectivity Fee
Schedule, following the table under ‘‘B.
Wireless Connectivity’’ (all text is new):
Wireless Connectivity Note
4 Through its Fixed Income and Data Services
(‘‘FIDS’’) business, Intercontinental Exchange, Inc.
(‘‘ICE’’) operates the MDC. The Exchange and its
affiliates the New York Stock Exchange LLC, NYSE
American LLC, NYSE Arca, Inc., and NYSE
National, Inc. (the ‘‘Affiliate SROs’’) are indirect
subsidiaries of ICE. Each of the Exchange’s Affiliate
SROs has submitted substantially the same
proposed rule change to propose the changes
described herein. See SR–NYSE–2024–05, SR–
NYSEAMER–2024–07, SR–NYSEArca–2024–11,
and SR–NYSENAT–2024–02.
5 Although it presently has proprietary use of it,
FIDS does not own the wireless network that would
be used to provide the services. The services would
be provided by FIDS pursuant to an agreement with
one or more non-ICE entities.
6 See Securities Exchange Act Release No. 90209
(October 15, 2020), 85 FR 67044 (October 21, 2020)
(SR–NYSE–2020–05, SR–NYSEAMER–2020–05,
SR–NYSEArca–2020–08, SR–NYSECHX–2020–02,
SR–NYSENAT–2020–03, SR–NYSE–2020–11, SR–
NYSEAMER–2020–10, SR–NYSEArca–2020–15,
SR–NYSECHX–2020–05, SR–NYSENAT–2020–08).
7 A purchaser would not be required to receive
the connection in both Markham and TR2 if they
chose to be present in only one Canadian access
center.
8 See id.
9 As is currently true for Markham Connections,
a customer that purchased a new connection would
have its first month’s MRC waived. As is true now,
if a customer that had a wireless connection
purchased a larger or smaller size wireless
connection to replace it, the customer would not be
subject to a second initial charge.
10 For example, if a customer had a 5 Mb circuit,
it would have a 5 Mb connection to Markham and
a 5 Mb connection to TR2. A customer that chose
to be at both access centers would receive all data
that has been sent northbound at both access
centers.
11 For example, if a customer had a 5 Mb circuit,
southbound the customer could choose to send 3
Mb of data from Markham and 2 Mb of data from
TR2 at one moment, and then 1 Mb of data from
Markham and 4 Mb of data from TR2 at the next
moment.
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A customer may purchase a Wireless
Connection between the Mahwah Data Center
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and one or both of (a) the Markham access
center and (b) the TR2 access center. If the
customer chooses to connect to both
Canadian access centers, the northbound and
southbound wireless services operate in a
distinct manner. Northbound, the same data
is sent to both the Markham and TR2 access
centers. Southbound, the customer may
choose the Mb of data it sends from each
Canadian access center, so long as the
combined total Mb entering the Mahwah
Data Center equals no more than the total Mb
of the wireless circuit.
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Once a customer requested
connectivity to TR2 as part of the
expanded service, FIDS would establish
a wireless connection between TR2 and
the MDC using the wireless network
owned by another party. As is currently
true of the Markham Connections, the
proposed expanded wireless connection
would terminate on a pole off the
grounds of the MDC property.12 Also as
currently true of the Markham
Connections, the expanded service
would not connect directly to the
Exchange trading and execution
systems.
The Exchange proposes to expand its
existing service because it understands
that purchasers may also wish to use a
wireless bandwidth connection to send
trading orders and relay market data
between their equipment in the MDC
and TR2. With such a wireless
connection, purchasers’ wireless
connections would not be limited to
Markham and the exchanges located
there.
Customers would have control over
what data they send over their TR2
Connection or Markham Connection.
They may, but are not required to, use
them to send trading orders to their
equipment in co-location; relay
Exchange market data, third party
market data and public quote feeds from
securities information processors; send
risk management, billing, or compliance
information; or to carry any other
market information or other data they
wish to and from their equipment in
TR2, Markham, and the MDC. The
Exchange would not, and could not,
know what data customers sent over the
connections and would not send or
receive any data over the connections.
General
The proposed changes would apply to
all customers equally. The proposed
changes would not apply differently to
distinct types or sizes of market
participants. As is currently the case,
the purchase of any connectivity service
is completely voluntary and the
Connectivity Fee Schedule is applied
uniformly to all customers.
FIDS has proposed to expand the
existing service to include the TR2
Connections at the request of FIDS
customers. It does not expect that the
proposed change will result in new
customers in Markham.
The proposed changes are not
otherwise intended to address any other
issues relating to co-location services
and/or related fees, and the Exchange is
not aware of any problems that
customers 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,13 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,14 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest and because it is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers. The
Exchange further believes that the
proposed rule change is consistent with
Section 6(b)(4) of the Act,15 because it
provides for the equitable allocation of
reasonable dues, fees, and other charges
among its members and issuers and
other persons using its facilities and
does not unfairly discriminate between
customers, issuers, brokers, or dealers.
The Proposed Change is Reasonable
The Exchange believes that the
proposed expansion of the existing
services is reasonable and would perfect
the mechanisms of a free and open
market and a national market system
and, in general, protect investors and
the public interest, because it would
increase the connectivity currently
offered by allowing customers to
connect to TR2 as well as Markham for
no additional charge. Adding this
additional connection option would
allow the customer to use a wireless
bandwidth connection to relay market
data and send trading orders between
the MDC and the exchanges and
alternative trading systems located in
TR2. The purchaser would be able to
13 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
15 15 U.S.C. 78f(b)(4).
14 15
12 See
85 FR 67044, note 6, supra, at 67054.
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determine what data to transport
between the MDC and the two Canadian
access centers based on what would best
serve its needs, tailoring the service to
the requirements of its business
operations, at no additional cost to
customers.
The Exchange further believes that it
is reasonable and would perfect the
mechanisms of a free and open market
and a national market system and, in
general, protect investors and the public
interest to expand the connectivity
options because it would be responsive
to requests from customers, who have
asked for the TR2 Connections.
The Exchange believes that the
proposed wireless connection between
MDC and TR2 would be the first
commercially available wireless
connection between the two points,
creating a new connectivity option for
customers. The Exchange believes that
creating such a connection would be
reasonable and would perfect the
mechanisms of a free and open market
and a national market system and, in
general, protect investors and the public
interest because market participants
may create their own proprietary or
commercial wireless connections
between the two points. The Exchange
could not impose any impediments to a
third party seeking to offer a similar
service, including by placing them at a
latency or other competitive
disadvantage with respect to the
Exchange.
Because the proposed expanded
service is designed to offer market
participants a means to minimize the
latency of their communications,
including trading orders, and receipt of
market data, it will thereby enhance the
efficiency of their trading strategies on
the Exchange and elsewhere, and
because there is no impediment to
competitors offering similar services,
the Exchange believes that the proposed
change is reasonable and would perfect
the mechanisms of a free and open
market and a national market system
and, in general, protect investors and
the public interest.
The Exchange also believes that the
proposed change is reasonable and
would perfect the mechanisms of a free
and open market and a national market
system and, in general, protect investors
and the public interest because the
expanded service including TR2
Connections would be available at the
currently filed initial charge and MRC
for the Markham Connections, with no
additional charge for the expanded
service. Accordingly, the Exchange
believes that the proposed change is
reasonable because the change would
mean that a customer would receive an
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enhanced offering with the option of
adding connectivity to a second
Canadian access center for the same
price that the Exchange currently
charges for a connection to one
Canadian access center. Customers that
currently have a Markham Connection
would not have to pay a second initial
charge in order to obtain an expanded
connection. As is currently true for
Markham Connections, a customer that
purchased a new connection would
have its first month’s MRC waived.
The Exchange believes that it is
reasonable that the charge be the same
whether the purchaser opts to connect
to one or both Canadian access centers.
The size of the connection, not the
number of Canadian access centers it
leads to, factors into setting the price.
First, the Exchange believes it is
reasonable to view the expanded service
as one service, and not two. Whether a
purchaser connects to one or both
Canadian access centers, the
southbound connection is limited in
size to the total bandwidth of the
circuit. At the same time, northbound
both access centers will receive all data
sent on the connection. Second, the
Exchange believes it is reasonable to
base its cost on the size of the wireless
bandwidth connection, not the number
of Canadian access centers it reaches. If
one customer wishes to use more of the
wireless connection than its current
circuit allows, it would need to increase
the size of its circuit, and so its cost
would increase. Markham and TR2 are
geographically close together and both
are important access centers, so the
network was designed to connect to
both locations. Accordingly, it is the
size of the circuit, not the number of
Canadian access centers, that matters to
the Exchange.
The Exchange believes that it is
reasonable and would perfect the
mechanisms of a free and open market
and a national market system and, in
general, protect investors and the public
interest to add the proposed wireless
connectivity note. The Exchange
believes that adding such text would
alleviate any possible customer
confusion as to how the connections
between the MDC and Canadian access
centers would work. In this way, it
would enhance the clarity and
transparency of the Connectivity Fee
Schedule.
The Proposed Change Is Equitable and
Not Unfairly Discriminatory
The Exchange believes that the
proposed change provides for the
equitable allocation of reasonable dues,
fees, and other charges among its
members and issuers and other persons
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using its facilities and does not unfairly
discriminate between customers,
issuers, brokers, or dealers because the
change would mean that a customer
would receive an expanded service,
with the option of adding connectivity
to two Canadian access centers for the
same price that the Exchange currently
charges for a connection to one
Canadian access center.
Customers that currently have a
Markham Connection would not have to
pay a second initial charge in order to
also obtain a TR2 Connection of the
same size. As is currently true for
Markham Connections, a customer that
purchased a new connection would
have its first month’s MRC waived.
Further, the Exchange believes that
the proposed change is equitable and
not unfairly discriminatory since, as is
true now, only customers that
purchased the proposed service would
be charged for it. The proposed change
would not apply differently to distinct
types or sizes of market participants but
would apply to all customers equally.
Moreover, although the Exchange
proposes to expand the connectivity
options, a customer that currently has a
Markham Connection would not be
obligated to make any changes. As is
currently the case, the purchase of any
connectivity service would be
completely voluntary.
The Exchange believes that it is
equitable and not unfairly
discriminatory that the charge be the
same whether the purchaser opts to
connect to one or both Canadian access
centers. The size of the connection, not
the number of Canadian access centers
it leads to, factors into setting the price.
First, the Exchange believes it is
equitable and not unfairly
discriminatory to view the expanded
service as one service, and not two.
Whether a purchaser connects to one or
both Canadian access centers, the
southbound connection is limited in
size to the total bandwidth of the
circuit. At the same time, northbound
both access centers will receive all data
sent on the connection. Second, the
Exchange believes it is equitable and not
unfairly discriminatory to base its cost
on the size of the wireless bandwidth
connection, not the number of Canadian
access centers it reaches. If one
customer wishes to use more of the
wireless connection than its current
circuit allows, it would need to increase
the size of its circuit, and so its cost
would increase. Markham and TR2 are
geographically close together, and both
are important access centers, so the
network was designed to connect to
both locations. Accordingly, it is the
size of the circuit, not the number of
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12401
Canadian access centers, that matters to
the Exchange.
The Exchange believes that the
proposed wireless connection between
MDC and TR2 would be the first
commercially available wireless
connection between the two points,
creating a new connectivity option for
customers. The Exchange believes that
creating such a connection would be
equitable and not unfairly
discriminatory because market
participants may create their own
proprietary or commercial wireless
connections between the two points.
The Exchange could not impose any
impediments to a third party seeking to
offer a similar service, including by
placing them at a latency or other
competitive disadvantage with respect
to the Exchange.
The Exchange believes that it is
equitable and not unfairly
discriminatory to add the proposed
wireless connectivity note. The
Exchange believes that adding such text
would alleviate any possible customer
confusion as to how the connections
between the MDC and Canadian access
centers would work. In this way, it
would enhance the clarity and
transparency of the Connectivity Fee
Schedule, making it easier to read and
understand and alleviating possible
customer confusion for all market
participants.
For the reasons above, the proposed
changes do not unfairly discriminate
between or among market participants
that are otherwise capable of satisfying
any applicable co-location 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
The Exchange believes that the
proposal will not impose any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of Section 6(b)(8) of the Act 16
because it is not designed to address any
competitive issues. The proposed rule
change would provide customers with a
wider range of choices for wireless
connectivity to Canada.
The Exchange believes the wireless
connections between MDC and TR2 are
the first commercially available wireless
connections between the two points,
creating a new connectivity option for
customers. The Exchange believes that
creating such a connection would not
16 15
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U.S.C. 78f(b)(8).
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impose any burden on competition that
is not necessary or appropriate because
market participants may create their
own proprietary or commercial wireless
connections between the two points.
The Exchange could not impose any
impediments to a third party seeking to
offer a similar service, including by
placing them at a latency or other
competitive disadvantage with respect
to the Exchange. Indeed, a third party
has announced that it plans to create a
wireless connection between Markham
and the MDC and the Exchange believes
it intends to expand its offering to
connect to the TR2, underscoring that
the Exchange could not impose any
impediments to a third party providing
wireless connectivity.
The proposed rule change would
provide customers the ability to connect
to a second Canadian data center for the
same price they currently pay to
connect to one. All customers would be
able to choose if they want connections
to one or both Canadian data centers
and the size of connection they want.
The Exchange does not believe that the
proposed rule change would place any
customer at a relative disadvantage
compared to other customers.
For these reasons, the Exchange
believes that the proposed rule change
reflects this competitive environment
and does not impose any undue burden
on intermarket competition.
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.
lotter on DSK11XQN23PROD with NOTICES1
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 17 and Rule
19b–4(f)(6) thereunder.18 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)
17 15
18 17
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
VerDate Sep<11>2014
17:24 Feb 15, 2024
Jkt 262001
of the Act 19 and Rule 19b–4(f)(6)(iii)
thereunder.20
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) 21 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–2024–03 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–2024–03. 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
19 15
U.S.C. 78s(b)(3)(A).
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.
21 15 U.S.C. 78s(b)(2)(B).
20 17
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–NYSECHX–2024–03 and should be
submitted on or before March 8, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–03223 Filed 2–15–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99520; File No. SR–NYSE–
2024–05]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Connectivity Fee Schedule
February 12, 2024.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’),2 and Rule 19b–4 thereunder,3
notice is hereby given that on January
29, 2024, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Connectivity Fee Schedule to expand
existing wireless connections between
22 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\16FEN1.SGM
16FEN1
]]>Agencies
[Federal Register Volume 89, Number 33 (Friday, February 16, 2024)]
[Notices]
[Pages 12398-12402]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03223]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99522; File No. SR-NYSECHX-2024-03]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Amend the
Connectivity Fee Schedule
February 12, 2024.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on January 29, 2024, the NYSE Chicago, Inc. (``NYSE
Chicago'' or the ``Exchange'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I and II below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Connectivity Fee Schedule to
expand existing wireless connections between the data center in Mahwah,
New Jersey and Canada. 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 the
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
[[Page 12399]]
and discussed any comments it received on the proposed rule change. The
text of those statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Connectivity Fee Schedule to
expand existing wireless connections between the data center in Mahwah,
New Jersey (``MDC'') \4\ and Canada.\5\
---------------------------------------------------------------------------
\4\ Through its Fixed Income and Data Services (``FIDS'')
business, Intercontinental Exchange, Inc. (``ICE'') operates the
MDC. The Exchange and its affiliates the New York Stock Exchange
LLC, NYSE American LLC, NYSE Arca, Inc., and NYSE National, Inc.
(the ``Affiliate SROs'') are indirect subsidiaries of ICE. Each of
the Exchange's Affiliate SROs has submitted substantially the same
proposed rule change to propose the changes described herein. See
SR-NYSE-2024-05, SR-NYSEAMER-2024-07, SR-NYSEArca-2024-11, and SR-
NYSENAT-2024-02.
\5\ Although it presently has proprietary use of it, FIDS does
not own the wireless network that would be used to provide the
services. The services would be provided by FIDS pursuant to an
agreement with one or more non-ICE entities.
---------------------------------------------------------------------------
The Exchange expects that the proposed rule change would become
operative no later than March 31, 2024. The Exchange will announce the
date that the proposed services will be available through a customer
notice.
Proposed Changes to the Wireless Connections
The Exchange currently offers wireless connections between the MDC
and the access center in the Markham, Canada data center (``Markham'')
of 1, 5 and 10 Mb (the ``Markham Connections'').\6\ The Exchange
understands that purchasers may also wish to use a wireless bandwidth
connection to send trading orders and relay market data between their
equipment in the MDC and a data center in Toronto, Canada that hosts
several Canadian exchanges, including Nasdaq Canada (``TR2''). With
such a wireless connection, purchasers' wireless connections to the
Toronto area would not be limited to Markham and the exchanges located
there. However, the Exchange is not aware of any wireless connection
between the MDC and TR2 that is currently commercially available.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 90209 (October 15,
2020), 85 FR 67044 (October 21, 2020) (SR-NYSE-2020-05, SR-NYSEAMER-
2020-05, SR-NYSEArca-2020-08, SR-NYSECHX-2020-02, SR-NYSENAT-2020-
03, SR-NYSE-2020-11, SR-NYSEAMER-2020-10, SR-NYSEArca-2020-15, SR-
NYSECHX-2020-05, SR-NYSENAT-2020-08).
---------------------------------------------------------------------------
To that end, the Exchange proposes to expand its existing wireless
bandwidth connections to Markham to include connections of the same
size to TR2 (the ``TR2 Connections''). As a result of the proposed
expansion, a purchaser's wireless bandwidth connection would be between
the MDC and both Markham and TR2.\7\
---------------------------------------------------------------------------
\7\ A purchaser would not be required to receive the connection
in both Markham and TR2 if they chose to be present in only one
Canadian access center.
---------------------------------------------------------------------------
The Exchange proposes to offer this expanded service at no
additional charge. The previously filed \8\ initial charge and monthly
recurring charge (``MRC'') for the Markham Connections would now also
include the TR2 Connections as well. Customers purchasing the service
would not be required to connect to both Markham and TR2, but if they
chose to do so, they could connect to both data centers for the same
fees that currently apply to connectivity to Markham only. Customers
that currently have a Markham Connection would not have to pay a second
initial charge or a second MRC in order to expand their Markham
Connection to include a TR2 Connection of the same size.\9\
---------------------------------------------------------------------------
\8\ See id.
\9\ As is currently true for Markham Connections, a customer
that purchased a new connection would have its first month's MRC
waived. As is true now, if a customer that had a wireless connection
purchased a larger or smaller size wireless connection to replace
it, the customer would not be subject to a second initial charge.
---------------------------------------------------------------------------
Under the proposed expanded service, northbound and southbound
wireless services would operate in a distinct manner. Data sent
northbound from the MDC would be transported to both Canadian access
centers such that the same data would be delivered to both Markham and
TR2. The customer would not have two independent connections but rather
would use a single connection to reach both Canadian access centers. At
each, the customer would have access to the total Mb of the wireless
circuit.\10\
---------------------------------------------------------------------------
\10\ For example, if a customer had a 5 Mb circuit, it would
have a 5 Mb connection to Markham and a 5 Mb connection to TR2. A
customer that chose to be at both access centers would receive all
data that has been sent northbound at both access centers.
---------------------------------------------------------------------------
Southbound, the purchaser could choose to send data from one or
both of the Canadian access centers. The purchaser could send data up
to the total number of Mb of the wireless circuit from either access
center, so long as the combined amount of data that reached the MDC did
not exceed the total Mb of the wireless circuit that the customer
purchased. The distribution would not be static: the number of Mb of
data from either Canadian access center could vary at the customer's
discretion.\11\
---------------------------------------------------------------------------
\11\ For example, if a customer had a 5 Mb circuit, southbound
the customer could choose to send 3 Mb of data from Markham and 2 Mb
of data from TR2 at one moment, and then 1 Mb of data from Markham
and 4 Mb of data from TR2 at the next moment.
---------------------------------------------------------------------------
In order to implement the proposed change, the Exchange proposes to
amend the table under ``B. Wireless Connectivity'' in the Connectivity
Fee Schedule as follows (proposed new text italicized and proposed
deletions in brackets):
------------------------------------------------------------------------
Type of service Description Amount of charge
------------------------------------------------------------------------
Wireless Connectionss between 1 Mb Circuit..... $10,000 per
Mahwah Data Center and one or connection initial
both of (a) Markham access charge plus monthly
center and (b) TR2 access charge per
center. connection of
$6,000.
Wireless Connections between 5 Mb Circuit..... $10,000 per
Mahwah Data Center and one or connection initial
both of (a) Markham access charge plus monthly
center and (b) TR2 access charge per
center. connection of
$15,500.
Wireless Connections between 10 Mb Circuit.... $10,000 per
Mahwah Data Center and one or connection initial
both of (a) Markham access charge plus monthly
center and (b) TR2 access charge per
center. connection of
$23,000.
------------------------------------------------------------------------
The Exchange also proposes to add the following to the Connectivity
Fee Schedule, following the table under ``B. Wireless Connectivity''
(all text is new):
Wireless Connectivity Note
A customer may purchase a Wireless Connection between the Mahwah
Data Center
[[Page 12400]]
and one or both of (a) the Markham access center and (b) the TR2
access center. If the customer chooses to connect to both Canadian
access centers, the northbound and southbound wireless services
operate in a distinct manner. Northbound, the same data is sent to
both the Markham and TR2 access centers. Southbound, the customer
may choose the Mb of data it sends from each Canadian access center,
so long as the combined total Mb entering the Mahwah Data Center
equals no more than the total Mb of the wireless circuit.
Once a customer requested connectivity to TR2 as part of the
expanded service, FIDS would establish a wireless connection between
TR2 and the MDC using the wireless network owned by another party. As
is currently true of the Markham Connections, the proposed expanded
wireless connection would terminate on a pole off the grounds of the
MDC property.\12\ Also as currently true of the Markham Connections,
the expanded service would not connect directly to the Exchange trading
and execution systems.
---------------------------------------------------------------------------
\12\ See 85 FR 67044, note 6, supra, at 67054.
---------------------------------------------------------------------------
The Exchange proposes to expand its existing service because it
understands that purchasers may also wish to use a wireless bandwidth
connection to send trading orders and relay market data between their
equipment in the MDC and TR2. With such a wireless connection,
purchasers' wireless connections would not be limited to Markham and
the exchanges located there.
Customers would have control over what data they send over their
TR2 Connection or Markham Connection. They may, but are not required
to, use them to send trading orders to their equipment in co-location;
relay Exchange market data, third party market data and public quote
feeds from securities information processors; send risk management,
billing, or compliance information; or to carry any other market
information or other data they wish to and from their equipment in TR2,
Markham, and the MDC. The Exchange would not, and could not, know what
data customers sent over the connections and would not send or receive
any data over the connections.
General
The proposed changes would apply to all customers equally. The
proposed changes would not apply differently to distinct types or sizes
of market participants. As is currently the case, the purchase of any
connectivity service is completely voluntary and the Connectivity Fee
Schedule is applied uniformly to all customers.
FIDS has proposed to expand the existing service to include the TR2
Connections at the request of FIDS customers. It does not expect that
the proposed change will result in new customers in Markham.
The proposed changes are not otherwise intended to address any
other issues relating to co-location services and/or related fees, and
the Exchange is not aware of any problems that customers 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,\13\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\14\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest
and because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The Exchange further believes
that the proposed rule change is consistent with Section 6(b)(4) of the
Act,\15\ because it provides for the equitable allocation of reasonable
dues, fees, and other charges among its members and issuers and other
persons using its facilities and does not unfairly discriminate between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
\15\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Proposed Change is Reasonable
The Exchange believes that the proposed expansion of the existing
services is reasonable and would perfect the mechanisms of a free and
open market and a national market system and, in general, protect
investors and the public interest, because it would increase the
connectivity currently offered by allowing customers to connect to TR2
as well as Markham for no additional charge. Adding this additional
connection option would allow the customer to use a wireless bandwidth
connection to relay market data and send trading orders between the MDC
and the exchanges and alternative trading systems located in TR2. The
purchaser would be able to determine what data to transport between the
MDC and the two Canadian access centers based on what would best serve
its needs, tailoring the service to the requirements of its business
operations, at no additional cost to customers.
The Exchange further believes that it is reasonable and would
perfect the mechanisms of a free and open market and a national market
system and, in general, protect investors and the public interest to
expand the connectivity options because it would be responsive to
requests from customers, who have asked for the TR2 Connections.
The Exchange believes that the proposed wireless connection between
MDC and TR2 would be the first commercially available wireless
connection between the two points, creating a new connectivity option
for customers. The Exchange believes that creating such a connection
would be reasonable and would perfect the mechanisms of a free and open
market and a national market system and, in general, protect investors
and the public interest because market participants may create their
own proprietary or commercial wireless connections between the two
points. The Exchange could not impose any impediments to a third party
seeking to offer a similar service, including by placing them at a
latency or other competitive disadvantage with respect to the Exchange.
Because the proposed expanded service is designed to offer market
participants a means to minimize the latency of their communications,
including trading orders, and receipt of market data, it will thereby
enhance the efficiency of their trading strategies on the Exchange and
elsewhere, and because there is no impediment to competitors offering
similar services, the Exchange believes that the proposed change is
reasonable and would perfect the mechanisms of a free and open market
and a national market system and, in general, protect investors and the
public interest.
The Exchange also believes that the proposed change is reasonable
and would perfect the mechanisms of a free and open market and a
national market system and, in general, protect investors and the
public interest because the expanded service including TR2 Connections
would be available at the currently filed initial charge and MRC for
the Markham Connections, with no additional charge for the expanded
service. Accordingly, the Exchange believes that the proposed change is
reasonable because the change would mean that a customer would receive
an
[[Page 12401]]
enhanced offering with the option of adding connectivity to a second
Canadian access center for the same price that the Exchange currently
charges for a connection to one Canadian access center. Customers that
currently have a Markham Connection would not have to pay a second
initial charge in order to obtain an expanded connection. As is
currently true for Markham Connections, a customer that purchased a new
connection would have its first month's MRC waived.
The Exchange believes that it is reasonable that the charge be the
same whether the purchaser opts to connect to one or both Canadian
access centers. The size of the connection, not the number of Canadian
access centers it leads to, factors into setting the price. First, the
Exchange believes it is reasonable to view the expanded service as one
service, and not two. Whether a purchaser connects to one or both
Canadian access centers, the southbound connection is limited in size
to the total bandwidth of the circuit. At the same time, northbound
both access centers will receive all data sent on the connection.
Second, the Exchange believes it is reasonable to base its cost on the
size of the wireless bandwidth connection, not the number of Canadian
access centers it reaches. If one customer wishes to use more of the
wireless connection than its current circuit allows, it would need to
increase the size of its circuit, and so its cost would increase.
Markham and TR2 are geographically close together and both are
important access centers, so the network was designed to connect to
both locations. Accordingly, it is the size of the circuit, not the
number of Canadian access centers, that matters to the Exchange.
The Exchange believes that it is reasonable and would perfect the
mechanisms of a free and open market and a national market system and,
in general, protect investors and the public interest to add the
proposed wireless connectivity note. The Exchange believes that adding
such text would alleviate any possible customer confusion as to how the
connections between the MDC and Canadian access centers would work. In
this way, it would enhance the clarity and transparency of the
Connectivity Fee Schedule.
The Proposed Change Is Equitable and Not Unfairly Discriminatory
The Exchange believes that the proposed change provides for the
equitable allocation of reasonable dues, fees, and other charges among
its members and issuers and other persons using its facilities and does
not unfairly discriminate between customers, issuers, brokers, or
dealers because the change would mean that a customer would receive an
expanded service, with the option of adding connectivity to two
Canadian access centers for the same price that the Exchange currently
charges for a connection to one Canadian access center.
Customers that currently have a Markham Connection would not have
to pay a second initial charge in order to also obtain a TR2 Connection
of the same size. As is currently true for Markham Connections, a
customer that purchased a new connection would have its first month's
MRC waived.
Further, the Exchange believes that the proposed change is
equitable and not unfairly discriminatory since, as is true now, only
customers that purchased the proposed service would be charged for it.
The proposed change would not apply differently to distinct types or
sizes of market participants but would apply to all customers equally.
Moreover, although the Exchange proposes to expand the connectivity
options, a customer that currently has a Markham Connection would not
be obligated to make any changes. As is currently the case, the
purchase of any connectivity service would be completely voluntary.
The Exchange believes that it is equitable and not unfairly
discriminatory that the charge be the same whether the purchaser opts
to connect to one or both Canadian access centers. The size of the
connection, not the number of Canadian access centers it leads to,
factors into setting the price. First, the Exchange believes it is
equitable and not unfairly discriminatory to view the expanded service
as one service, and not two. Whether a purchaser connects to one or
both Canadian access centers, the southbound connection is limited in
size to the total bandwidth of the circuit. At the same time,
northbound both access centers will receive all data sent on the
connection. Second, the Exchange believes it is equitable and not
unfairly discriminatory to base its cost on the size of the wireless
bandwidth connection, not the number of Canadian access centers it
reaches. If one customer wishes to use more of the wireless connection
than its current circuit allows, it would need to increase the size of
its circuit, and so its cost would increase. Markham and TR2 are
geographically close together, and both are important access centers,
so the network was designed to connect to both locations. Accordingly,
it is the size of the circuit, not the number of Canadian access
centers, that matters to the Exchange.
The Exchange believes that the proposed wireless connection between
MDC and TR2 would be the first commercially available wireless
connection between the two points, creating a new connectivity option
for customers. The Exchange believes that creating such a connection
would be equitable and not unfairly discriminatory because market
participants may create their own proprietary or commercial wireless
connections between the two points. The Exchange could not impose any
impediments to a third party seeking to offer a similar service,
including by placing them at a latency or other competitive
disadvantage with respect to the Exchange.
The Exchange believes that it is equitable and not unfairly
discriminatory to add the proposed wireless connectivity note. The
Exchange believes that adding such text would alleviate any possible
customer confusion as to how the connections between the MDC and
Canadian access centers would work. In this way, it would enhance the
clarity and transparency of the Connectivity Fee Schedule, making it
easier to read and understand and alleviating possible customer
confusion for all market participants.
For the reasons above, the proposed changes do not unfairly
discriminate between or among market participants that are otherwise
capable of satisfying any applicable co-location 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
The Exchange believes that the proposal will not impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of Section 6(b)(8) of the Act \16\ because it is not
designed to address any competitive issues. The proposed rule change
would provide customers with a wider range of choices for wireless
connectivity to Canada.
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
The Exchange believes the wireless connections between MDC and TR2
are the first commercially available wireless connections between the
two points, creating a new connectivity option for customers. The
Exchange believes that creating such a connection would not
[[Page 12402]]
impose any burden on competition that is not necessary or appropriate
because market participants may create their own proprietary or
commercial wireless connections between the two points. The Exchange
could not impose any impediments to a third party seeking to offer a
similar service, including by placing them at a latency or other
competitive disadvantage with respect to the Exchange. Indeed, a third
party has announced that it plans to create a wireless connection
between Markham and the MDC and the Exchange believes it intends to
expand its offering to connect to the TR2, underscoring that the
Exchange could not impose any impediments to a third party providing
wireless connectivity.
The proposed rule change would provide customers the ability to
connect to a second Canadian data center for the same price they
currently pay to connect to one. All customers would be able to choose
if they want connections to one or both Canadian data centers and the
size of connection they want. The Exchange does not believe that the
proposed rule change would place any customer at a relative
disadvantage compared to other customers.
For these reasons, the Exchange believes that the proposed rule
change reflects this competitive environment and does not impose any
undue burden on intermarket competition.
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 \17\ and Rule 19b-4(f)(6) thereunder.\18\
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 \19\ and Rule 19b-
4(f)(6)(iii) thereunder.\20\
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\17\ 15 U.S.C. 78s(b)(3)(A)(iii).
\18\ 17 CFR 240.19b-4(f)(6).
\19\ 15 U.S.C. 78s(b)(3)(A).
\20\ 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.
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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) \21\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\21\ 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-2024-03 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-2024-03. 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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-NYSECHX-2024-03 and should
be submitted on or before March 8, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-03223 Filed 2-15-24; 8:45 am]
BILLING CODE 8011-01-P
