Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Connectivity Fee Schedule, 21636-21640 [2024-06581]
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21636
Federal Register / Vol. 89, No. 61 / Thursday, March 28, 2024 / Notices
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. 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–NASDAQ–2023–022
and should be submitted on or before
April 18, 2024.
V. Accelerated Approval of the
Proposed Rule Change, as Modified by
Amendment Nos. 2 and 3
The Commission finds good cause to
approve the proposed rule change, as
modified by Amendment Nos. 2 and 3,
prior to the thirtieth day after the date
of publication of notice of the filing of
Amendment Nos. 2 and 3 in the Federal
Register. In Amendment No. 2, the
Exchange amended the proposal to,
among other things, (i) exclude Section
1032 of General 3, a new provision,
from the rules the Exchange proposes to
apply to Limited Underwriting Members
under General 3, Section 1031(c); (ii)
add General 9, Section 21 to the rules
the Exchange proposes to apply to
Limited Underwriting Members under
General 3, Section 1031(c); (iii) update
existing rule language in Equity 7,
Section 10 to reflect changes in current
text; (iv) remove a proposed exemption
from registration for certain banking
representatives associated with Limited
Underwriting Members; and (v) add
language to General 3, Section
1031(c)(2) to clarify that associated
persons of Limited Underwriting
Members shall at all times be properly
qualified and registered under FINRA
rules.120 Amendment No. 2 also made
some numbering updates, provided
additional rationale for the inclusion
and exclusion of certain rules, and
provided additional language in the
statutory basis.121 Amendment No. 2
120 See
supra note 9.
id. Amendment No. 2 also removed
proposed rule language from proposed General 3,
Section 1032(a), which provided that any person
shall be eligible to become an associated persons of
a Limited Underwriting Member, and removed
General 4 from the list of rules applicable to
Limited Underwriting Members in proposed
General 3, General 1031(c)(1). As discussed below,
these provisions were put back into the proposal in
Amendment No. 3. Additionally, some of the
changes described in Amendment No. 2 were
originally proposed in Amendment No. 1 but
included in Amendment No. 2 since Amendment
No. 2 superseded Amendment No. 1. See supra
notes 8 and 11.
was published for comment in the
Federal Register and no comments were
received.122
In its Amendment No. 3, the
Exchange added back proposed rule
language to General 3, Section
1032(a)(2) that was in the original
proposal about the eligibility of any
person to become an associated person
of a Limited Underwriting Member,
except such persons as are excluded
under General 3, Rule 1002(b).123 In
Amendment No. 3, the Exchange also
provided additional language on the
consistency of General 3, Section
1032(a)(1) and (a)(2) with the
requirements of section 6(b)(2) of the
Act.124 In Amendment No. 3, the
Exchange also amended the proposal to
add General 4 (Registration
Requirements) back into the list of rules
that a Limited Underwriting Member
and their associated persons must
comply with, as originally proposed.125
The proposed rule language changes to
the proposal, as described above, are
identical to provisions that were in the
original proposal and published for
comment.126 No comments were
received in response to that Notice.
Amendment No. 3 also excluded
General 5, Rule 9400 from the list of
rules that Limited Underwriting
Members must comply with because
that rule relates to expedited procedures
for certain trading activity and Limited
Underwriting Members have no trading
rights on the Exchange.127 Amendment
No. 3 also provided updates and other
clarifying changes to, and justification
for, the proposed rule change in
addition to adding the provisions
described above.128
The Commission believes
Amendment Nos. 2 and 3 will help to
strengthen the Exchange proposal and
support its consistency with the Act.
Amendment Nos. 2 and 3 assist the
Commission in evaluating the
Exchange’s proposal and in determining
that it is consistent with the Act.
Amendment Nos. 2 and 3 also have
raised no new or novel issues.
Accordingly, the Commission finds
good cause, pursuant to section 19(b)(2)
of the Act,129 to approve the proposed
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121 See
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122 See supra note 11. The Commission notes that
the full 21-day comment period has already ended.
123 See supra note 28.
124 See Amendment No. 3, supra note 12, at 12–
13.
125 See supra notes 35 and 46.
126 See Notice, supra note 3. As noted above,
these provisions were removed from the proposal
in Amendment No. 2. See Amendment No. 2, supra
note 11.
127 See supra note 51.
128 See Amendment No. 3, supra note 12.
129 15 U.S.C. 78s(b)(2).
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rule change, as modified by Amendment
Nos. 2 and 3, on an accelerated basis.
VI. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,130 that the
proposed rule change (SR–NASDAQ–
2023–022), as modified by Amendment
Nos. 2 and 3, be, and hereby is,
approved on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.131
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–06579 Filed 3–27–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99848; File No. SR–NYSE–
2024–17]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Connectivity Fee Schedule
March 22, 2024.
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 March 15,
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 (‘‘Fee
Schedule’’) regarding colocation
services and fees to update the list of
included data products. 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.
130 Id.
131 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. 61 / Thursday, March 28, 2024 / Notices
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
A. 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
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1. Purpose
The Exchange proposes to amend the
Connectivity Fee Schedule (‘‘Fee
Schedule’’) regarding colocation
services and fees to update the list of
included data products (‘‘Included Data
Products’’).
Currently, the table of Included Data
Products in Colocation Note 4 sets forth
the market data feeds that Users 4 can
connect to at no additional cost when
21637
they purchase a service that includes
access to the LCN or IP network.5
Each of the Exchange and the Affiliate
SROs has filed to establish an
‘‘Aggregated Lite’’ market data feed (the
‘‘Aggregated Lite Feeds’’).6 Accordingly,
the Exchange proposes to update the
table of Included Data Products to
include the Aggregated Lite Feeds. To
implement the change, the Exchange
proposes to update the table of Included
Data Products of the NYSE, NYSE
American and NYSE Arca as follows
(proposed additions underlined):
NYSE:
When NYSE Chicago and NYSE
National were added to the Included
Data Products, the individual market
data feeds offered were not broken out.7
Accordingly, in addition to adding the
Aggregated Lite Feeds, the Exchange
proposes to break out the NYSE Chicago
and NYSE National market data feeds in
Included Data Products, as follows
(proposed additions underlined):
4 For purposes of the Exchange’s colocation
services, a ‘‘User’’ means any market participant
that requests to receive colocation services directly
from the Exchange. See Securities Exchange Act
Release No. 76008 (September 29, 2015), 80 FR
60190 (October 5, 2015) (SR–NYSE–2015–40). As
specified in the Fee Schedule, a User that incurs
colocation fees for a particular colocation service
pursuant thereto would not be subject to colocation
fees for the same colocation service charged by the
Exchange’s affiliates NYSE American LLC (‘‘NYSE
American’’), NYSE Arca, Inc. (‘‘NYSE Arca’’), NYSE
Chicago, Inc. (‘‘NYSE Chicago’’), and NYSE
National, Inc. (‘‘NYSE National’’ and together, the
‘‘Affiliate SROs’’). Each Affiliate SRO has submitted
substantially the same proposed rule change to
propose the changes described herein. See SR–
NYSEAMER–2024–20, SR–NYSEARCA–2024–28,
SR–NYSECHX–2024–13, and SR–NYSENAT–2024–
11.
5 See Securities Exchange Act Release No. 79730
(January 4, 2017), 82 FR 3045 (January 10, 2017)
(SR–NYSE–2016–92) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
Amending the Exchange’s Price List Related to
Colocation Services To Increase LCN and IP
Network Fees and Add a Description of Access To
Trading and Execution Services and Connectivity to
Included Data Products).
6 See Securities Exchange Act Release No. 99689
(March 7, 2024), 89 FR 18468 (March 13, 2024) (SR–
NYSE–2024–12).
7 See Securities Exchange Act Releases No. 87408
(October 28, 2019), 84 FR 58778 (November 1, 2019)
(SR–NYSECHX–2019–12) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
To Amend the Fee Schedule of NYSE Chicago,
Inc.), and 83351 (May 31, 2018), 83 FR 26314 (June
6, 2018) (SR–NYSENAT–2018–07) (Notice of Filing
and Immediate Effectiveness of Proposed Rule
Change To Adopt Co-Location Services and Fees In
Connection With the Re-Launch of Trading on the
Exchange and To Amend Its Schedule of Fees and
Rebates To Provide for Such Co-Location Services).
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NYSE Aggregated Lite
NYSE Alerts
NYSEBBO
NYSE Integrated Feed
NYSE OpenBook
NYSE Order Imbalances
NYSE Trades
NYSE American:
NYSE American Aggregated Lite
NYSE American Alerts
NYSE American BBO
NYSE American Integrated Feed
NYSE American OpenBook
NYSE American Order Imbalances
NYSE American Trades
NYSE American Options
NYSE Arca:
NYSE Arca Aggregated Lite
NYSE ArcaBook
NYSE Arca BBO
NYSE Arca Integrated Feed
NYSE Arca Order Imbalances
NYSE Arca Trades
21638
Federal Register / Vol. 89, No. 61 / Thursday, March 28, 2024 / Notices
NYSE Chicago
NYSE Chicago Aggregated Lite
NYSE Chicago BBO
NYSE Chicago Integrated Feed
NYSE Chica1m Trades
NYSE National
NYSE National Aggregated Lite
NYSE National BBO
NYSE National Integrated Feed
NYSE National Trades
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General
The proposed changes would not
apply differently to distinct types or
sizes of market participants. Rather,
they would apply to all Users equally.
As is currently the case, the purchase of
any colocation service, including
connectivity to the Aggregated Lite
Feeds, would be completely voluntary
and the Fee Schedule would be applied
uniformly to all Users. FIDS does not
expect that the proposed rule change
will result in new Users.
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,8 in general, and
furthers the objectives of section 6(b)(5)
of the Act,9 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
8 15
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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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,10 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 rule 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 adding
the Aggregated Lite Feeds would
increase the number of Included Data
Products available to Users for no
additional charge. All Users that
voluntarily select to access the LCN or
IP network would not be subject to a
charge above and beyond the fee paid
for the relevant LCN or IP network
access. Accordingly, the Exchange
believes that the proposed change is
reasonable because the change would
mean that a User would have the option
of adding connectivity to additional
market data feeds without paying
additional charges.
Adding the proposed additional
Included Data Products would allow a
User to connect to any of the Aggregated
Lite Feeds that it wished, but would not
require it to do so. As now, a User
would be able to determine which
Included Data Products, if any, to which
it connects, based on what would best
serve its needs, tailoring the service to
the requirements of its business
operations.
10 15
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U.S.C. 78f(b)(4).
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The Exchange believes that the
proposed rule change is reasonable
because, as with the other Included Data
Products, it believes it is not the
exclusive method to connect to the
Aggregated Lite Feeds. As alternatives to
connecting to the Aggregated Lite Feeds
as Included Data Products, a User may
connect to the market data feeds
through another User or through a
connection to an Exchange access center
outside the data center, third party
access center, or third party vendor.
By adding the Aggregated Lite Feeds
and setting forth the NYSE Chicago and
NYSE National feeds already offered,
the proposed change would ensure that
the list of Included Data Products was
up to date and consistent in the level of
detail. Accordingly, the Exchange
believes that the proposed rule 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, as it would ensure that the
description of Included Data Products
was complete, ensuring that it is
accessible and transparent, and
providing market participants with
clarity as to what connectivity is
included in the purchase of access to
the LCN and IP networks.
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
adding the Aggregated Lite Feeds would
increase the number of Included Data
Products available to Users for no
additional charge. All Users that
voluntarily select to access the LCN or
IP network would not be subject to a
charge above and beyond the fee paid
for the relevant LCN or IP network
access. Accordingly, the Exchange
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The Exchange expects that the present
filing will become operative
immediately upon the filings to
establish a fee for the Aggregated Lite
Feed becoming operative. The Exchange
expects such operative date or dates to
be no later than the second quarter of
2024. It will announce the date or dates
through a customer notice.
The Exchange does not charge for
connectivity to the Included Data Feeds.
Accordingly, it would not charge for
connectivity to the Aggregated Lite
Feeds.
Federal Register / Vol. 89, No. 61 / Thursday, March 28, 2024 / Notices
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believes that the proposed change is
equitable and not unfairly
discriminatory because the change
would mean that a User would have the
option of adding connectivity to
additional market data feeds without
paying additional charges.
Further, the Exchange believes that
the proposed change is equitable and
not unfairly discriminatory since, as is
true now, the proposed change would
not apply differently to distinct types or
sizes of Users but would apply to all
Users equally. Moreover, adding the
proposed additional Included Data
Products would allow a User to connect
to any of the Aggregated Lite Feeds that
it wished, but would not require it to do
so. As now, a User would be able to
determine which Included Data
Products, if any, to which it connects,
based on what would best serve its
needs, tailoring the service to the
requirements of its business operations.
By adding the Aggregated Lite Feeds
and setting forth the NYSE Chicago and
NYSE National feeds already offered,
the proposed change would ensure that
the list of Included Data Products was
up to date and consistent in the level of
detail. Accordingly, the Exchange
believes that the proposed rule change
is equitable and not unfairly
discriminatory, as it would ensure that
the description of Included Data
Products was complete, ensuring that it
is accessible and transparent, and
providing market participants with
clarity as to what connectivity is
included in the purchase of access to
the LCN and IP networks.
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.11
The Exchange believes that the
proposed rule change does not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because
adding the Aggregated Lite Feeds would
increase the number of Included Data
11 15
U.S.C. 78f(b)(8).
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Products available to Users for no
additional charge. All Users that
voluntarily select to access the LCN or
IP network would not be subject to a
charge above and beyond the fee paid
for the relevant LCN or IP network
access. Accordingly, the change would
mean that a User would have the option
of adding connectivity to additional
market data feeds without paying
additional charges.
Adding the proposed additional
Included Data Products would allow a
User to connect to any of the Aggregated
Lite Feeds that it wished, but would not
require it to do so. In this way, the
proposed changes would enhance
competition by, as now, enabling a User
to determine to which Included Data
Products, if any, it connects, based on
what would best serve its needs,
tailoring the service to the requirements
of its business operations.
The Exchange believes that the
proposed rule change does not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because, as
with the other Included Data Products,
it believes it is not the exclusive method
to connect to the Aggregated Lite Feeds.
As alternatives to connecting to the
Aggregated Lite Feeds as Included Data
Products, a User may connect to the
market data feeds through another User
or through a connection to an Exchange
access center outside the data center,
third party access center, or third party
vendor.
By adding the Aggregated Lite Feeds
and setting forth the NYSE Chicago and
NYSE National feeds already offered,
the proposed change would ensure that
the list of Included Data Products was
up to date and consistent in the level of
detail. Accordingly, the Exchange
believes that the proposed additions to
the description of Included Data
Products would make the description
more accessible and transparent. In this
manner, the proposed change would
provide market participants with clarity
as to what connectivity is included in
the purchase of access to the LCN and
IP networks, thereby enhancing
competition by ensuring that all Users
have access to the same information
regarding the Included Data Products.
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.
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21639
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 12 and Rule
19b–4(f)(6) thereunder.13 Because the
proposed rule change does not: (i)
significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.14
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) 15 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
NYSE–2024–17 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
12 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires the Exchange to give the
Commission written notice of its intent to file the
proposed rule change, along with a brief description
and text of the proposed rule change, at least five
business days prior to the date of filing of the
proposed rule change, or such shorter time as
designated by the Commission. The Exchange has
satisfied this requirement.
15 15 U.S.C. 78s(b)(2)(B).
13 17
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Federal Register / Vol. 89, No. 61 / Thursday, March 28, 2024 / Notices
Commission, 100 F Street NE,
Washington, DC 20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to file
number SR–NYSE–2024–17. 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–NYSE–2024–17 and should be
submitted on or before April 18, 2024.
[Release No. 34–99839; File No. SR–CBOE–
2024–014]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–06581 Filed 3–27–24; 8:45 am]
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BILLING CODE 8011–01–P
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Update Its Fees
Schedule in Connection With the
Exchange’s Plans To List and Trade
Options That Overlie a Reduced Value
of the MSCI World Index, the Full Value
of the MSCI ACWI Index, and a
Reduced Value of the MSCI USA Index
March 22, 2024.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 18,
2024, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by the Exchange.
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
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to update
its Fees Schedule in connection with
the Exchange’s plans to list and trade
options that overlie a reduced value of
the MSCI World Index, the full value of
the MSCI ACWI Index, and a reduced
value of the MSCI USA Index. The text
of the proposed rule change is provided
in Exhibit 5.
The text of the proposed rule change
is available on the Exchange’s website
(https://www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
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
Exchange 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 these
statements may be examined at the
places specified in Item IV below. The
1 15
16 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
20:27 Mar 27, 2024
2 17
Jkt 262001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00158
Fmt 4703
Sfmt 4703
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
Fees Schedule in connection with its
plans to list and trade options that
overlie a reduced value of the MSCI
World Index (‘‘MXWLD options’’), the
full value of the MSCI ACWI Index
(‘‘MXACW options’’), and a reduced
value of the MSCI USA Index (‘‘MXUSA
options’’), effective March 18, 2024.
Background
Each of the MSCI World, ACWI, and
USA Indexes is a free float-adjusted
market capitalization index designed to
measure equity market performance
throughout the world (MSCI World and
ACWI Indexes) or the United States
(MSCI USA Index). The MSCI World,
ACWI, and USA Indexes are calculated
by MSCI Inc. (‘‘MSCI’’), which is a
provider of investment support tools.3
Each of these indexes is calculated in
U.S. dollars on a real-time basis from
the open of the first market on which
the components are traded to the closing
of the last market on which the
components are traded. The
methodology used to calculate each
index is similar to the methodology
used to calculate the value of other
benchmark market-capitalization
weighted indexes (including the MSCI
MXEA and MXEF Indexes, on which the
Exchange may currently list options).4
MXACW options are options that are
based on the value of the MSCI ACWI
Index. The MSCI ACWI Index is a free
float-adjusted market capitalization
index that is designed to measure the
equity performance of developed
markets and emerging markets. The
MSCI ACWI Index consists of
component stocks from 23 developed
markets 5 and 24 emerging markets.6
3 See
Rule 4.12(c).
Rule 4.10(h); see also Securities Exchange
Act Release No. 74681 (April 8, 2015), 80 FR 20032
(April 14, 2015) (SR–CBOE–2015–023) (order
approving proposed rule change to adopt rules to
permit listing and trading of options on the MSCI
EAFE Index (‘‘MXEA options’’) and the MSCI EM
Index) (‘‘MXEF options’’).
5 These developed markets include Australia,
Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Hong Kong, Ireland, Israel, Italy,
Japan, Netherlands, New Zealand, Norway,
Portugal, Singapore, Spain, Sweden, Switzerland,
the United Kingdom, and the United States.
6 These emerging markets include Brazil, Chile,
China, Colombia, Czech Republic, Egypt, Greece,
4 See
E:\FR\FM\28MRN1.SGM
28MRN1
]]>Agencies
[Federal Register Volume 89, Number 61 (Thursday, March 28, 2024)]
[Notices]
[Pages 21636-21640]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06581]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99848; File No. SR-NYSE-2024-17]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Connectivity Fee Schedule
March 22, 2024.
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 March 15, 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.
---------------------------------------------------------------------------
\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 (``Fee
Schedule'') regarding colocation services and fees to update the list
of included data products. 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.
[[Page 21637]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Connectivity Fee Schedule (``Fee
Schedule'') regarding colocation services and fees to update the list
of included data products (``Included Data Products'').
Currently, the table of Included Data Products in Colocation Note 4
sets forth the market data feeds that Users \4\ can connect to at no
additional cost when they purchase a service that includes access to
the LCN or IP network.\5\
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\4\ For purposes of the Exchange's colocation services, a
``User'' means any market participant that requests to receive
colocation services directly from the Exchange. See Securities
Exchange Act Release No. 76008 (September 29, 2015), 80 FR 60190
(October 5, 2015) (SR-NYSE-2015-40). As specified in the Fee
Schedule, a User that incurs colocation fees for a particular
colocation service pursuant thereto would not be subject to
colocation fees for the same colocation service charged by the
Exchange's affiliates NYSE American LLC (``NYSE American''), NYSE
Arca, Inc. (``NYSE Arca''), NYSE Chicago, Inc. (``NYSE Chicago''),
and NYSE National, Inc. (``NYSE National'' and together, the
``Affiliate SROs''). Each Affiliate SRO has submitted substantially
the same proposed rule change to propose the changes described
herein. See SR-NYSEAMER-2024-20, SR-NYSEARCA-2024-28, SR-NYSECHX-
2024-13, and SR-NYSENAT-2024-11.
\5\ See Securities Exchange Act Release No. 79730 (January 4,
2017), 82 FR 3045 (January 10, 2017) (SR-NYSE-2016-92) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Amending
the Exchange's Price List Related to Colocation Services To Increase
LCN and IP Network Fees and Add a Description of Access To Trading
and Execution Services and Connectivity to Included Data Products).
---------------------------------------------------------------------------
Each of the Exchange and the Affiliate SROs has filed to establish
an ``Aggregated Lite'' market data feed (the ``Aggregated Lite
Feeds'').\6\ Accordingly, the Exchange proposes to update the table of
Included Data Products to include the Aggregated Lite Feeds. To
implement the change, the Exchange proposes to update the table of
Included Data Products of the NYSE, NYSE American and NYSE Arca as
follows (proposed additions underlined):
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 99689 (March 7,
2024), 89 FR 18468 (March 13, 2024) (SR-NYSE-2024-12).
[GRAPHIC] [TIFF OMITTED] TN28MR24.031
When NYSE Chicago and NYSE National were added to the Included Data
Products, the individual market data feeds offered were not broken
out.\7\ Accordingly, in addition to adding the Aggregated Lite Feeds,
the Exchange proposes to break out the NYSE Chicago and NYSE National
market data feeds in Included Data Products, as follows (proposed
additions underlined):
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\7\ See Securities Exchange Act Releases No. 87408 (October 28,
2019), 84 FR 58778 (November 1, 2019) (SR-NYSECHX-2019-12) (Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Fee Schedule of NYSE Chicago, Inc.), and 83351 (May 31,
2018), 83 FR 26314 (June 6, 2018) (SR-NYSENAT-2018-07) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Adopt
Co-Location Services and Fees In Connection With the Re-Launch of
Trading on the Exchange and To Amend Its Schedule of Fees and
Rebates To Provide for Such Co-Location Services).
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[[Page 21638]]
[GRAPHIC] [TIFF OMITTED] TN28MR24.032
The Exchange expects that the present filing will become operative
immediately upon the filings to establish a fee for the Aggregated Lite
Feed becoming operative. The Exchange expects such operative date or
dates to be no later than the second quarter of 2024. It will announce
the date or dates through a customer notice.
The Exchange does not charge for connectivity to the Included Data
Feeds. Accordingly, it would not charge for connectivity to the
Aggregated Lite Feeds.
General
The proposed changes would not apply differently to distinct types
or sizes of market participants. Rather, they would apply to all Users
equally. As is currently the case, the purchase of any colocation
service, including connectivity to the Aggregated Lite Feeds, would be
completely voluntary and the Fee Schedule would be applied uniformly to
all Users. FIDS does not expect that the proposed rule change will
result in new Users.
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,\8\ in general, and furthers the
objectives of section 6(b)(5) of the Act,\9\ 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,\10\ because it provides for the equitable allocation of reasonable
dues, fees, and other charges among its members and issuers and other
persons using its facilities and does not unfairly discriminate between
customers, issuers, brokers, or dealers.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Proposed Change is Reasonable
The Exchange believes that the proposed rule 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 adding the Aggregated Lite Feeds would
increase the number of Included Data Products available to Users for no
additional charge. All Users that voluntarily select to access the LCN
or IP network would not be subject to a charge above and beyond the fee
paid for the relevant LCN or IP network access. Accordingly, the
Exchange believes that the proposed change is reasonable because the
change would mean that a User would have the option of adding
connectivity to additional market data feeds without paying additional
charges.
Adding the proposed additional Included Data Products would allow a
User to connect to any of the Aggregated Lite Feeds that it wished, but
would not require it to do so. As now, a User would be able to
determine which Included Data Products, if any, to which it connects,
based on what would best serve its needs, tailoring the service to the
requirements of its business operations.
The Exchange believes that the proposed rule change is reasonable
because, as with the other Included Data Products, it believes it is
not the exclusive method to connect to the Aggregated Lite Feeds. As
alternatives to connecting to the Aggregated Lite Feeds as Included
Data Products, a User may connect to the market data feeds through
another User or through a connection to an Exchange access center
outside the data center, third party access center, or third party
vendor.
By adding the Aggregated Lite Feeds and setting forth the NYSE
Chicago and NYSE National feeds already offered, the proposed change
would ensure that the list of Included Data Products was up to date and
consistent in the level of detail. Accordingly, the Exchange believes
that the proposed rule 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, as it would
ensure that the description of Included Data Products was complete,
ensuring that it is accessible and transparent, and providing market
participants with clarity as to what connectivity is included in the
purchase of access to the LCN and IP networks.
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 adding the Aggregated Lite Feeds would increase the
number of Included Data Products available to Users for no additional
charge. All Users that voluntarily select to access the LCN or IP
network would not be subject to a charge above and beyond the fee paid
for the relevant LCN or IP network access. Accordingly, the Exchange
[[Page 21639]]
believes that the proposed change is equitable and not unfairly
discriminatory because the change would mean that a User would have the
option of adding connectivity to additional market data feeds without
paying additional charges.
Further, the Exchange believes that the proposed change is
equitable and not unfairly discriminatory since, as is true now, the
proposed change would not apply differently to distinct types or sizes
of Users but would apply to all Users equally. Moreover, adding the
proposed additional Included Data Products would allow a User to
connect to any of the Aggregated Lite Feeds that it wished, but would
not require it to do so. As now, a User would be able to determine
which Included Data Products, if any, to which it connects, based on
what would best serve its needs, tailoring the service to the
requirements of its business operations.
By adding the Aggregated Lite Feeds and setting forth the NYSE
Chicago and NYSE National feeds already offered, the proposed change
would ensure that the list of Included Data Products was up to date and
consistent in the level of detail. Accordingly, the Exchange believes
that the proposed rule change is equitable and not unfairly
discriminatory, as it would ensure that the description of Included
Data Products was complete, ensuring that it is accessible and
transparent, and providing market participants with clarity as to what
connectivity is included in the purchase of access to the LCN and IP
networks.
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.\11\
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\11\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change does not impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act because adding the Aggregated
Lite Feeds would increase the number of Included Data Products
available to Users for no additional charge. All Users that voluntarily
select to access the LCN or IP network would not be subject to a charge
above and beyond the fee paid for the relevant LCN or IP network
access. Accordingly, the change would mean that a User would have the
option of adding connectivity to additional market data feeds without
paying additional charges.
Adding the proposed additional Included Data Products would allow a
User to connect to any of the Aggregated Lite Feeds that it wished, but
would not require it to do so. In this way, the proposed changes would
enhance competition by, as now, enabling a User to determine to which
Included Data Products, if any, it connects, based on what would best
serve its needs, tailoring the service to the requirements of its
business operations.
The Exchange believes that the proposed rule change does not impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act because, as with the other
Included Data Products, it believes it is not the exclusive method to
connect to the Aggregated Lite Feeds. As alternatives to connecting to
the Aggregated Lite Feeds as Included Data Products, a User may connect
to the market data feeds through another User or through a connection
to an Exchange access center outside the data center, third party
access center, or third party vendor.
By adding the Aggregated Lite Feeds and setting forth the NYSE
Chicago and NYSE National feeds already offered, the proposed change
would ensure that the list of Included Data Products was up to date and
consistent in the level of detail. Accordingly, the Exchange believes
that the proposed additions to the description of Included Data
Products would make the description more accessible and transparent. In
this manner, the proposed change would provide market participants with
clarity as to what connectivity is included in the purchase of access
to the LCN and IP networks, thereby enhancing competition by ensuring
that all Users have access to the same information regarding the
Included Data Products.
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 \12\ and Rule 19b-4(f)(6) thereunder.\13\
Because the proposed rule change does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\14\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange to give the Commission written notice of its
intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
---------------------------------------------------------------------------
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) \15\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\15\ 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-NYSE-2024-17 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange
[[Page 21640]]
Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-NYSE-2024-17. 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-NYSE-2024-17 and should be
submitted on or before April 18, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-06581 Filed 3-27-24; 8:45 am]
BILLING CODE 8011-01-P
