Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Connectivity Fee Schedule, 21575-21579 [2024-06583]
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Federal Register / Vol. 89, No. 61 / Thursday, March 28, 2024 / Notices
legacy/companysearch.html. You may
also call the SEC’s Public Reference
Room at (202) 551–8090.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–06541 Filed 3–27–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–614, OMB Control No.
3235–0682]
Submission for OMB Review;
Comment Request; Extension: Rule
13h–1 and Form 13H
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the existing collection of
information provided for in Rule 13h–
1 (17 CFR 240.13h–1) and Form 13H—
registration of large traders 1 submitted
pursuant to section 13(h) of the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) (‘‘Exchange Act’’).
Rule 13h–1 and Form 13H under
section 13(h) of the Exchange Act
established a large trader reporting
framework.2 The framework assists the
Commission in identifying and
obtaining certain baseline information
about traders that conduct a substantial
amount of trading activity, as measured
by volume or market value, in the U.S.
securities markets.
The identification, recordkeeping, and
reporting framework provides the
Commission with a mechanism to
identify large traders and obtain
additional information on their trading
activity. Specifically, the rule requires
large traders to identify themselves to
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1 Rule
13h–1(a)(1) defines ‘‘large trader’’ as any
person that directly or indirectly, including through
other persons controlled by such person, exercises
investment discretion over one or more accounts
and effects transactions for the purchase or sale of
any NMS security for or on behalf of such accounts,
by or through one or more registered broker-dealers,
in an aggregate amount equal to or greater than the
identifying activity level or voluntarily registers as
a large trader by filing electronically with the
Commission Form 13H.
2 See Securities Exchange Act Release No. 64976
(July 27, 2011), 76 FR 46959 (August 3, 2011).
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the Commission and file certain interim
updates with the Commission on Form
13H. Upon receipt of Form 13H, the
Commission issues a unique
identification number to the large
trader, which the large trader then
provides to its registered broker-dealers.
Certain registered broker-dealers are
required to maintain transaction records
for each large trader and are required to
report that information to the
Commission upon request.3 In addition,
certain registered broker-dealers are
required to adopt procedures to monitor
their customers for activity that would
trigger the identification requirements of
the rule.
The respondents to the collection of
information required by Rule 13h–1 and
Form 13H are large traders and
registered broker-dealers. The
Commission estimates that the total
annual time burden associated with
Rule 13h–1 and Form 13H is
approximately 131,415 hours per year.
This burden is comprised of 31,140
hours for initial filings by large traders
on Form 13H, 75,300 hours for updates
by large traders, 22,200 hours for brokerdealer reporting, and 2,775 hours for
broker-dealer monitoring.
Compliance with Rule 13h–1 is
mandatory. The information collection
under Rule 13h–1 is considered
confidential subject to the limited
exceptions provided by the Freedom of
Information Act.4
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
3 The Commission, pursuant to Rule 17a–25 (17
CFR 240.17a–25), currently collects transaction data
from registered broker-dealers through the
Electronic Blue Sheets (‘‘EBS’’) system to support
its regulatory and enforcement activities. The large
trader framework added two new fields, the time of
the trade and the identity of the trader, to the EBS
system. Additionally, pursuant to Rule 613 (17 CFR
242.613), the Commission requires each national
securities exchange and national securities
association to collect transaction data from
registered broker-dealers through the consolidated
audit trail, to which the agency has access, to
support regulatory and enforcement activities. This
data includes the time of each trade and the LTID
number of the person exercising investment
discretion over the trade, the latter of which is
assigned by the Commission pursuant to Rule 13h–
1.
4 See 5 U.S.C. 552 and 15 U.S.C. 78m(h)(7).
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information collection should be sent by
April 29, 2024 to (i) www.reginfo.gov/
public/do/PRAMain; and (ii) David
Bottom, Director/Chief Information
Officer, Securities and Exchange
Commission, c/o John Pezzullo, 100 F
Street NE, Washington, DC 20549, or by
sending an email to: PRA_Mailbox@
sec.gov.
Dated: March 25, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–06631 Filed 3–27–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99850; File No. SR–
NYSEARCA–2024–28]
Self-Regulatory Organizations; NYSE
Arca, Inc.; 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
14, 2024, NYSE Arca, Inc. (‘‘NYSE
Arca’’ 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.
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
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 89, No. 61 / Thursday, March 28, 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 (‘‘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
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):
BILLING CODE 8011–01–P
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
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. 76010 (September 29, 2015), 80 FR
60197 (October 5, 2015) (SR–NYSEArca–2015–82).
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 the New York Stock Exchange
LLC (‘‘NYSE’’), NYSE American LLC (‘‘NYSE
American’’), 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–NYSE–2024–17, SR–NYSEAMER–2023–20,
SR–NYSECHX–2024–13, and SR–NYSENAT–2024–
11.
5 See Securities Exchange Act Release No. 79729
(January 4, 2017), 82 FR 3061 (January 10, 2017)
(SR–NYSEArca–2016–172) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
Amending the NYSE Arca Options Fee Schedule
and the NYSE Arca Equities Schedule of Fees and
Charges Related to Co-Location 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. 99713
(March 12, 2024) (SR–NYSEArca–2024–22).
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
Federal Register / Vol. 89, No. 61 / Thursday, March 28, 2024 / Notices
proposes to break out the NYSE Chicago
and NYSE National market data feeds in
21577
Included Data Products, as follows
(proposed additions underlined):
NYSE Chicago
NYSE Chicago Aggregated Lite
NYSE Chicago BBO
NYSE Chicago Integrated Feed
NYSE Chicag:o Trades
NYSE National
NYSE National Aggregated Lite
NYSE National BBO
NYSE National Integrated Feed
NYSE National Trades
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.
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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
8 15
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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20:27 Mar 27, 2024
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.
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
10 15
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PO 00000
U.S.C. 78f(b)(4).
Frm 00095
Fmt 4703
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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
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BILLING CODE 8011–01–C
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Federal Register / Vol. 89, No. 61 / Thursday, March 28, 2024 / Notices
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
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
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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
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
11 15
PO 00000
U.S.C. 78f(b)(8).
Frm 00096
Fmt 4703
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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
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:
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
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–
NYSEARCA–2024–28 on the subject
line.
[Release No. 34–99847; File No. SR–LCH
SA–2024–002]
Self-Regulatory Organizations; LCH
SA; Notice of Filing of Proposed Rule
Change Relating to the CDSClear
Select Membership Model
March 22, 2024.
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–NYSEARCA–2024–28. 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–NYSEARCA–2024–28 and should be
submitted on or before April 18, 2024.
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SECURITIES AND EXCHANGE
COMMISSION
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–06583 Filed 3–27–24; 8:45 am]
BILLING CODE 8011–01–P
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 13,
2024, Banque Centrale de
Compensation, which conducts
business under the name LCH SA (‘‘LCH
SA’’), filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change described in
Items I, II and III below, which Items
have been primarily prepared by LCH
SA. The Commission is publishing this
notice to solicit comments on the
Proposed Rule Change from interested
persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
LCH SA is proposing to amend its
CDS Clearing Rule Book (‘‘Rule Book’’)
and CDS Clearing Procedures
(‘‘Procedures’’) to incorporate new terms
and to make conforming, clarifying and
clean-up changes to implement the new
model of CDSClear select membership
(the ‘‘Proposed Rule Change’’).
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission,
LCH SA 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. LCH
SA has prepared summaries, set forth in
sections A, B, and C below, of the most
significant aspects of such statements.
A. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
1. Purpose
In accordance with the current Rule
Book, Select Members can provide
clearing services in respect of credit
default swaps (‘‘CDS’’) and options on
CDS (collectively, the ‘‘CDSClear
Clearing Services’’) to Affiliates only.
LCH SA is proposing to extend the
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
CFR 200.30–3(a)(12).
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20:27 Mar 27, 2024
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Fmt 4703
possibility for Select Members to
provide CDSClear Clearing Services to
any client, including Affiliates (the
‘‘New Select Membership’’) to allow
some prospective clearing members that
wish to provide clearing services to nonaffiliated clients without becoming
General Members. General Members
must participate in Competitive Bidding
for Auction Packages and submit prices
to LCH SA, and thus the New Select
Membership would allow some clearing
members to provide clearing services to
non-affiliated clients even if they do not
have the capacity to participate in
competitive bidding or to submit prices
to LCH SA.
Pursuant to the New Select
Membership, LCH SA is proposing to
remove the requirement for Select
Members to participate in Competitive
Bidding for Auction Packages, including
trades belonging to the Product Families
they have elected to clear with LCH SA.
Indeed, as part of the competitive
auction process applicable in the
context of the default management
process implemented in respect of the
default of a Clearing Member, each nondefaulting Clearing Member is required
to submit bids in respect of any
portfolio of trades reflecting the Cleared
Transactions of the Defaulting Clearing
Member, subject to exceptions provided
for in the Rule Book; among them, a
non-defaulting Clearing Member which
is a Select Member shall submit bids
only in respect of a portfolio of trades
that does not include any trade which
does not belong to the relevant Select
Member’s Products Families, currently
defined as the categories of credit
default swaps (‘‘CDS’’) and options on
CDS in respect of which LCH SA
provides clearing services and that may
be selected by a Select Member in the
relevant form (the ‘‘Product Family
Form’’). Instead, LCH SA is proposing to
add the option for Select Members to
elect to participate in Competitive
Bidding for Auction Packages at their
own discretion, in addition to
participating in the CDS Default
Management Group and CDS Default
Management Committee. Unlike
Clearing Members admitted as General
Members, Select Members will not
benefit from the possibility to subscribe
to the unlimited tariff allowing them to
clear an unlimited number of trades for
their own account for an annual fixed
fee set out in the CDSClear fee grid.3
Pursuant to the New Select
Membership, LCH SA also is proposing
to change the method by which Select
3 The CDSClear fee grid is available on LCH SA’s
website at the following link: https://www.lch.com/
services/cdsclear/fees.
1 15
16 17
21579
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28MRN1
]]>Agencies
[Federal Register Volume 89, Number 61 (Thursday, March 28, 2024)]
[Notices]
[Pages 21575-21579]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06583]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99850; File No. SR-NYSEARCA-2024-28]
Self-Regulatory Organizations; NYSE Arca, Inc.; 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 14, 2024, NYSE Arca, Inc. (``NYSE Arca'' 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.
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
[[Page 21576]]
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. 76010 (September 29, 2015), 80 FR 60197
(October 5, 2015) (SR-NYSEArca-2015-82). 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 the New York Stock Exchange LLC (``NYSE''),
NYSE American LLC (``NYSE American''), 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-NYSE-2024-17, SR-NYSEAMER-2023-20, SR-
NYSECHX-2024-13, and SR-NYSENAT-2024-11.
\5\ See Securities Exchange Act Release No. 79729 (January 4,
2017), 82 FR 3061 (January 10, 2017) (SR-NYSEArca-2016-172) (Notice
of Filing and Immediate Effectiveness of Proposed Rule Change
Amending the NYSE Arca Options Fee Schedule and the NYSE Arca
Equities Schedule of Fees and Charges Related to Co-Location
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).
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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):
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\6\ See Securities Exchange Act Release No. 99713 (March 12,
2024) (SR-NYSEArca-2024-22).
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BILLING CODE 8011-01-P
[GRAPHIC] [TIFF OMITTED] TN28MR24.033
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
[[Page 21577]]
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).
[GRAPHIC] [TIFF OMITTED] TN28MR24.034
BILLING CODE 8011-01-C
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).
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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
[[Page 21578]]
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 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:
[[Page 21579]]
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-NYSEARCA-2024-28 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-NYSEARCA-2024-28. 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-NYSEARCA-2024-28 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. 2024-06583 Filed 3-27-24; 8:45 am]
BILLING CODE 8011-01-P
