Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Connectivity Fee Schedule, 29409-29413 [2024-08489]
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Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99969; File No. SR–NYSE–
2024–20]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Connectivity Fee Schedule
April 16, 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 April 2,
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, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Connectivity Fee Schedule to amend the
wireless connectivity services that
transport market data to Markham,
Canada. The proposed rule change is
available on the Exchange’s website at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
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.
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Connectivity Fee Schedule to amend the
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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wireless connectivity services that
transport market data to Markham,
Canada.
The Exchange expects that the
proposed rule change would become
operative no later than June 30, 2024. It
will announce the proposed change to
all Fixed Income and Data Services
(‘‘FIDS’’) customers in the Markham,
Canada third party access center
(‘‘Markham’’).
Current Markham Services
Currently, a market participant in
Markham may purchase a wireless
connection to connect to a selection of
symbols from the NYSE BBO and
Trades data feeds or the NYSE Arca
BBO and Trades data feeds (the
‘‘Current Market Data Connection’’)
distributed from the Mahwah, New
Jersey data center (‘‘MDC’’).4 Customers
that purchase a Current Market Data
Connection are charged a non-recurring
initial charge of $5,000 and a $6,500
monthly fee (‘‘MRC’’).
There is limited bandwidth available
on the wireless network to Markham.
Accordingly, the Current Market Data
Connection does not transport
information for all the symbols included
in the NYSE BBO and Trades and NYSE
Arca BBO and Trades data feeds. Rather,
FIDS provides connectivity to a
selection of such symbols, including the
data for which there is demand (the
‘‘Current Market Data’’). When a market
participant requests a Current Market
Data Connection, it receives
connectivity to the portions of the NYSE
BBO and Trades and NYSE Arca BBO
and Trades data that FIDS transmits
wirelessly. The customer then
determines the symbols in the Current
Market Data for which it will receive
data.
Proposed Changes to Markham Services
The Exchange proposes to replace (a)
the source of the selection of symbols
from the NYSE BBO and Trades to the
NYSE Integrated Feed (‘‘NYSE IF’’), and
(b) the source of the selection of
symbols from the NYSE Arca BBO and
Trades to the NYSE Arca Integrated
Feed (‘‘NYSE Arca IF’’ and together
with the NYSE IF, the ‘‘Integrated
Feeds’’).
As there is limited bandwidth
available on the wireless network to
4 See Securities Exchange Act Release No. 90209
(October 15. 2020), 85 FR 67044 (October 21, 2020).
Through its FIDS business, Intercontinental
Exchange, Inc. (‘‘ICE’’) operates the MDC. NYSE
American LLC, NYSE Arca, Inc. (‘‘NYSE Arca’’),
NYSE Chicago, Inc. and NYSE National, Inc. are
national securities exchanges that are affiliates of
the Exchange (collectively, the ‘‘Affiliate SROs’’).
The Exchange and the Affiliate SROs are indirect
subsidiaries of ICE.
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29409
Markham, the Exchange proposes that,
similar to the Current Market Data
Connection, the proposed market data
connection (‘‘Proposed Market Data
Connection’’) would not transport
information for all the symbols included
in the NYSE IF and NYSE Arca IF.
Rather, FIDS would provide
connectivity to a selection of such
symbols, including the symbols in the
Integrated Feeds for which there is
demand (the ‘‘Proposed Market Data’’).
When a market participant requested a
Proposed Market Data Connection, it
would receive connectivity to the
portions of the NYSE IF and NYSE Arca
IF that FIDS transmits wirelessly. The
customer would then determine the
symbols in the Proposed Market Data for
which it would receive data. As now,
the Exchange would not have visibility
into which portions of the data feed a
given customer chooses to receive.
Importantly, FIDS does not plan to
change the symbols and information
available. Because NYSE IF includes all
data in the NYSE BBO and Trades feeds,
and NYSE Arca IF includes all data in
the NYSE Arca BBO and Trades feeds,5
FIDS anticipates that customers will
continue to connect to the same
selection of symbols and information,
and so there will be no impact on the
customers due to the change. It does not
currently plan to do so, but if in the
future FIDS changes the symbols or
5 Although their list of symbols is the same, the
Integrated Feeds provide the information in the
NYSE BBO and Trades and NYSE Arca BBO and
Trades data feeds, and more. The NYSE BBO and
NYSE Arca BBO data feeds distribute on a real-time
basis the same best bid and offer (‘‘BBO’’)
information that NYSE and NYSE Arca,
respectively, report under the Consolidated
Quotation (‘‘CQ’’) Plan for inclusion in the CQ
Plan’s consolidated quotation information data
stream. The NYSE Trades and NYSE Arca Trades
data feeds distribute on a real-time basis the same
last sale information that NYSE and NYSE Arca,
respectively, report under the Consolidated Tape
Association (‘‘CTA’’) Plan for inclusion in the CTA
Plan’s consolidated data streams. See Securities
Exchange Act Release No. 99591 (February 23,
2024), 89 FR 14915 (February 29, 2024) (SR–NYSE–
2024–08) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change To Amend
the Content of the NYSE Best Quotes & Trades Data
Feed). In addition to the BBO and last sale
information, the Integrated Feeds provide real-time
market data in a unified view of events, in
sequence, as they appear on the NYSE and NYSE
Arca matching engine, respectively. They include
depth of book order data, and opening and closing
imbalance data, as well as security status updates
(e.g., trade corrections and trading halts) and stock
summary messages. See Securities Exchange Act
Release Nos. 99689 (March 7, 2024), 89 FR 18466
(March 13, 2024) (SR–NYSE–2024–12, at note 10
(Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Establish the NYSE
Aggregated Lite Market Data Feed), and 19381
(March 12, 2024), 89 FR 19381 (March 18, 2024)
(SR–NYSEArca–2024–22), at note 10 (Notice of
Filing and Immediate Effectiveness of Proposed
Rule Change To Establish the NYSE Arca
Aggregated Lite Market Data Feed).
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Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Notices
information available, customers may
have the option of connecting to
additional symbols or information that
are not part of the Current Market Data
but are part of the Proposed Market
Data.
The charges for the services would
not change. As is true now, the proposal
would waive the first month’s MRC, to
allow customers to test a new Proposed
Market Data Connection for a month
before incurring any MRC.6 Also as
currently true, the fees for a Proposed
Market Data Connection would not
include the cost of the Integrated Feeds
themselves, just the connection.
Type of service
Amount of charge
NYSE [BBO and Trades]Integrated Feed: Wireless Connection in Markham, Canada access center.
NYSE Arca [BBO and Trades]Integrated Feed: Wireless Connection in
Markham, Canada access center.
As now, the Proposed Market Data
Connections would not utilize the pole
on the grounds of the MDC.
The Proposed Market Data
Like the NYSE BBO and Trades and
NYSE Arca BBO and Trades, the
Integrated Feeds are generated at the
MDC in the trading and execution
systems of the NYSE and NYSE Arca. In
each case, the NYSE or NYSE Arca, as
applicable, files with the Commission
for the Integrated Feed it generates, and
the related fees.7 The filed market data
fees apply to all customers of the
Integrated Feeds, no matter what form of
connectivity or connectivity provider
they use.
When a market participant wants to
connect to an Integrated Feed, it
requests a connection from the provider
of its choice. All providers, including
FIDS, may only provide the market
participant with connectivity once the
provider has received confirmation from
the NYSE or NYSE Arca, as applicable,
that the market participant is authorized
to receive the requested data feed.
$5,000 per connection initial charge plus monthly charge per connection of $6,500.
$5,000 per connection initial charge plus monthly charge per connection of $6,500.
stated to FIDS that they would prefer
connectivity to the Proposed Market
Data instead of the Current Market Data.
It is the Exchange’s understanding that
they connect to the Integrated Feeds in
Markham over a fiber connection. Given
that, changing to the Proposed Market
Data may remove the necessity of their
also subscribing to NYSE BBO and
Trades or NYSE Arca BBO and Trades.
FIDS does not expect that the
proposed change will result in new
customers in Markham.
The proposed change is not intended
to address any other issues relating to
connectivity or related fees, and the
Exchange is not aware of any problems
that customers would have in
complying with 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.
The Proposed Change Is Reasonable
The proposed change would apply to
all customers equally. The proposed
change would not apply differently to
distinct types or sizes of market
participants. As is currently the case,
the purchase of any connectivity service
is completely voluntary and the
Connectivity Fee Schedule is applied
uniformly to all customers.
The Exchange is proposing the change
at the request of FIDS customers. The
customers in Markham that would be
affected by the proposed change have
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
mechanisms of, a free and open market
and a national market system and, in
general, to protect investors and the
public interest and does not unfairly
discriminate 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
The Exchange believes that the
proposed rule change to the wireless
connectivity services that transport
market data to Markham would remove
impediments to, and perfect the
mechanisms of, a free and open market
and a national market system, and, in
general, protect investors and the public
interest, as the change would respond to
customer requests while keeping the
cost the same.
Importantly, FIDS does not plan to
change the symbols and information
available. Because NYSE IF includes all
data in the NYSE BBO and Trades feeds,
and NYSE Arca IF includes all data in
the NYSE Arca BBO and Trades feeds,
FIDS anticipates that customers will
continue to connect to the same
selection, and so there will be no impact
on the customers due to the change.
It does not currently plan to do so, but
if FIDS does change the symbols or
information available, customers may
have the option of connecting to
additional symbols or information that
are not part of the Current Market Data
but are part of the Proposed Market
Data. NYSE IF and NYSE Arca IF
include additional data, such as depth
of book order data, last sale data, and
opening and closing imbalance data, as
well as the data in the Current Market
Data. As a result, customers in Markham
may be able to select what market data
6 Customers that have a Current Market Data
Connection would not receive a second waiver.
7 See Securities Exchange Act Release Nos. 74128
(January 23, 2015), 80 FR 4951 (January 29, 2015)
(SR–NYSE–2015–03) (notice of filing and
immediate effectiveness of proposed rule change
establishing the NYSE Integrated Feed data feed);
76485 (November 20, 2015), 80 FR 74158
(November 27, 2015) (SR–NYSE–2015–57) (notice
of filing and immediate effectiveness of a proposed
rule change establishing fees for the NYSE
Integrated Feed); 65669 (November 2, 2011), 76 FR
69311 (November 8, 2011) (SR–NYSEArca–2011–
78) (notice of filing and immediate effectiveness of
proposed rule change offering the NYSE Arca
Integrated Feed); and 66128 (January 10, 2012), 77
FR 2331 (January 17, 2012) (SR–NYSEArca–2011–
96) (notice of filing and immediate effectiveness of
a proposed rule change establishing fees for NYSE
Arca Integrated Feed).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 15 U.S.C. 78f(b)(4).
Application and Impact of the Proposed
Change
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In order to implement the proposed
change, the Exchange proposes to make
the following changes to the
Connectivity Fee Schedule under ‘‘C.
Wireless Connectivity to Market Data’’
(proposed additions italicized and
proposed deletions in brackets):
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2. Statutory Basis
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Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Notices
they wish to receive from an expanded
set.
At the same time, there would be no
change to the costs for the Current
Market Data Connection. The Exchange
believes that it is reasonable that the fee
remain the same because, as noted
above, FIDS anticipates that customers
will continue to connect to the same
selection of symbols and, even if there
is a change in the information available,
there is limited bandwidth available on
the wireless network to Markham, and
that would not change.
The Exchange is not aware of any
other public, commercially available
wireless connections between the MDC
and Markham that connect to the
Proposed Market Data. However, the
third party McKay Brothers LLC
(‘‘McKay’’) offers wireless connectivity
between the MDC and Markham. Such
wireless connection would compete
with the Exchange’s Proposed Market
Data Connection, as customers could
use the McKay wireless connection to
transport the Proposed Market Data.
In addition, the Exchange
understands that other providers offer
connectivity to the Proposed Market
Data in Markham through fiber
connections. Such third party providers
obtain one or more of the Integrated
Feeds from FIDS at the MDC and send
it over their own fiber networks to
Markham. It is the Exchange’s
understanding that various customers
already connect to the Proposed Market
Data over a fiber connection. The
Exchange does not know how many
firms distribute the Proposed Market
Data in Markham.
Additional third party competitors
could offer fiber or wireless connectivity
to the Proposed Market Data in
Markham by obtaining the market data
at the MDC and sending it over a fiber
or wireless network to Canada. A market
participant in Markham also may create
a proprietary market data connection,
whether fiber or wireless; connect
through another market participant;
utilize fiber connections offered by third
parties; or utilize fiber connections
offered by FIDS. The Exchange could
not impose any impediments to a third
party seeking to offer a similar service,
including by placing them at a latency
or other competitive disadvantage with
respect to the Exchange.
Wireless connections and fiber
connections to the Proposed Market
Data in Markham would compete with
each other. Given the various
advantages and disadvantages of both
wireless and fiber connections, a market
participant interested in purchasing a
connection to the Proposed Market Data
in Markham is likely to consider a
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variety of factors in deciding whether to
use a wireless versus fiber connection,
including latency; the amount of
network uptime; the equipment the
network uses; the cost of the
connection; and the applicable
contractual provisions. Indeed, fiber
network connections may be more
attractive to some market participants as
they are more reliable and less
susceptible to weather conditions.
The Exchange does not believe that
FIDS would have any competitive
advantage over any future providers of
wireless connectivity to the Proposed
Market Data in Markham. The Proposed
Market Data Connection does not have
any special access to or advantage
within the MDC. The Integrated Feeds
are generated at the MDC in the trading
and execution systems of the NYSE and
NYSE Arca. FIDS would collect the
Proposed Market Data, then send it over
the Proposed Market Data Connection
by connecting to equipment in an MDC
meet-me-room and from there to a pole.
The pole is owned by a third party and
is not on the grounds of the MDC, and
the path into the MDC through a meetme-room is available to any
telecommunications provider. Further,
all distances in the MDC are
normalized.
The Exchange believes that the
proposed rule change is reasonable
because a market participant in
Markham that opted for a Proposed
Market Data Connection would be able
to select the specific Proposed Market
Data that it wanted to receive in
accordance with its needs, thereby
helping it tailor its operations to the
requirements of its business operations.
The Proposed Change Is an Equitable
Allocation of Fees and Credits
The Exchange believes that its
proposal equitably allocates its fees
among market participants.
The Exchange believes that the
proposed rule change to the wireless
connectivity services that transport
market data to Markham would be
equitable as the change would respond
to customer requests while keeping the
cost the same. The customers in
Markham that would be affected by the
proposed change have stated that they
would prefer connectivity to the
Proposed Market Data instead of the
Current Market Data. If they already
subscribe to one or more of the
Integrated Feeds, changing to the
Proposed Market Data may remove the
necessity of their also subscribing to
NYSE BBO and Trades or NYSE Arca
BBO and Trades.
Importantly, FIDS does not plan to
change the symbols and information
PO 00000
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29411
available. Because NYSE IF includes all
data in the NYSE BBO and Trades feeds,
and NYSE Arca IF includes all data in
the NYSE Arca BBO and Trades feeds,
FIDS anticipates that customers will
continue to connect to the same
selection, and so there will be no impact
on the customers due to the change.
It does not currently plan to do so, but
if FIDS does change the symbols or
information available, customers may
have the option of connecting to
additional symbols or information that
are not part of the Current Market Data
but are part of the Proposed Market
Data. NYSE IF and NYSE Arca IF
include additional data as well as the
data in the NYSE and NYSE Arca BBO
and Trades Feeds. As a result,
customers in Markham may be able to
select what market data they wish to
receive from an expanded set.
At the same time, there would be no
change to the costs for the Current
Market Data Connection. The Exchange
believes that it is equitable that the fee
remain the same because, as noted
above, FIDS anticipates that customers
will continue to connect to the same
selection of symbols and, even if there
is a change in the information available,
there is limited bandwidth available on
the wireless network to Markham, and
that would not change.
The McKay wireless connection
would compete with the Proposed
Market Data Connection, as customers
could use the McKay wireless
connection to transport Proposed
Market Data. The Exchange is not aware
of any other public, commercially
available wireless connections to the
Proposed Market Data between the MDC
and Markham. Based on the information
available to it, the Exchange
understands that other providers offer
connectivity to the Proposed Market
Data in Markham through fiber
connections. It is the Exchange’s
understanding that various customers
already connect to the Proposed Market
Data over a fiber connection, and so the
Proposed Market Data Connection may
act as a supplement to their existing
fiber connections. The Exchange does
not know how many firms redistribute
the Proposed Market Data in Markham.
Additional third party competitors
could offer fiber or wireless connectivity
to the Proposed Market Data in
Markham by obtaining the market data
at the MDC and sending it over a fiber
or wireless network to Canada. A market
participant in Markham also may create
a proprietary market data connection,
whether fiber or wireless; connect
through another market participant;
utilize fiber connections offered by third
parties; or utilize fiber connections
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Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Notices
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offered by FIDS. The Exchange could
not impose any impediments to a third
party seeking to offer a similar service,
including by placing them at a latency
or other competitive disadvantage with
respect to the Exchange.
The Exchange believes that the
proposed change is equitable because it
will result in fees being charged only to
market participants that voluntarily
select to receive the corresponding
services and because those services will
be available to all market participants.
Furthermore, the Exchange believes that
the services and fees proposed herein
are equitably allocated because, in
addition to the services being
completely voluntary, they are available
to all market participants on an equal
basis (i.e., the same products and
services are available to all market
participants). All market participants
that voluntarily select a Proposed
Market Data Connection would be
charged the same amount for the same
services.
The Proposed Change Is Not Unfairly
Discriminatory
The Exchange believes that the
proposed rule change is not unfairly
discriminatory, for the following
reasons.
The Exchange believes that the
proposed rule change to the wireless
connectivity services that transport
market data to Markham is not unfairly
discriminatory, as the change would
respond to customer requests while
keeping the cost the same. The
customers in Markham that would be
affected by the proposed change have
stated that they would prefer
connectivity to the Proposed Market
Data instead of the Current Market Data.
If they already subscribe to one or more
of the Integrated Feeds, changing to the
Proposed Market Data may remove the
necessity of their also subscribing to
NYSE BBO and Trades or NYSE Arca
BBO and Trades.
Importantly, FIDS does not plan to
change the symbols and information
available. Because NYSE IF includes all
data in the NYSE BBO and Trades feeds,
and NYSE Arca IF includes all data in
the NYSE Arca BBO and Trades feeds,
FIDS anticipates that customers will
continue to connect to the same
selection, and so there will be no impact
on the customers due to the change.
It does not currently plan to do so, but
if FIDS does change the symbols or
information available, customers may
have the option of connecting to
additional symbols or information that
are not part of the Current Market Data
but are part of the Proposed Market
Data. NYSE IF and NYSE Arca IF
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06:41 Apr 20, 2024
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include additional data, such as depth
of book order data, last sale data, and
opening and closing imbalance data, as
well as the data in the Current Market
Data. As a result, customers in Markham
may be able to select what market data
they wish to receive from an expanded
set.
At the same time, there would be no
change to the cost for the Current
Market Data Connection. The Exchange
believes that it is not unfairly
discriminatory that the fee remain the
same because, as noted above, FIDS
anticipates that customers will continue
to connect to the same selection of
symbols and, even if there is a change
in the information available, there is
limited bandwidth available on the
wireless network to Markham, and that
would not change.
The Exchange believes that the
proposed change is not unfairly
discriminatory because it will result in
fees being charged only to market
participants that voluntarily select to
receive the corresponding services and
because those services will be available
to all market participants. Furthermore,
the Exchange believes that the services
and fees proposed herein are not
unfairly discriminatory because, in
addition to the services being
completely voluntary, they are available
to all market participants on an equal
basis (i.e., the same products and
services are available to all market
participants). All market participants
that voluntarily select a Proposed
Market Data Connection would be
charged the same amount for the same
services.
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 proposed rule changes 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
Importantly, FIDS does not plan to
change the symbols and information
available. Because NYSE IF includes all
data in the NYSE BBO and Trades feeds,
and NYSE Arca IF includes all data in
the NYSE Arca BBO and Trades feeds,
FIDS anticipates that customers will
continue to connect to the same
selection, and so there will be no impact
on customers due to the change.
It does not currently plan to do so, but
if FIDS does change the symbols or
information available, customers may
have the option of connecting to
11 15
PO 00000
U.S.C. 78f(b)(8).
Frm 00131
Fmt 4703
Sfmt 4703
additional symbols or information that
are not part of the Current Market Data
but are part of the Proposed Market
Data. NYSE IF and NYSE Arca IF
include additional data, such as depth
of book order data, last sale data, and
opening and closing imbalance data, as
well as the data in the Current Market
Data. As a result, customers in Markham
may be able to select what market data
they wish to receive from an expanded
set.
At the same time, there would be no
change to the costs for the Current
Market Data Connection. As noted
above, FIDS anticipates that customers
will continue to connect to the same
selection of symbols and, even if there
is a change in the information available,
there is limited bandwidth available on
the wireless network to Markham, and
that would not change.
The McKay wireless connection
would compete with the Exchange’s
Proposed Market Data Connection, as
customers could use the McKay wireless
connection to transport the Proposed
Market Data. The Exchange is not aware
of any other public, commercially
available wireless connections to the
Proposed Market Data between the MDC
and Markham.
Based on the information available to
it, the Exchange understands that other
providers offer connectivity to the
Proposed Market Data in Markham
through fiber connections. Such third
party providers obtain one or both of the
Integrated Feeds from FIDS at the MDC
and send it over their own fiber
networks to Markham. It is the
Exchange’s understanding that various
customers already connect to the
Proposed Market Data over a fiber
connection, and so the Proposed Market
Data Connection may act as a
supplement to their existing fiber
connections. The Exchange does not
know how many firms redistribute the
Proposed Market Data in Markham.
Additional third party competitors
could offer fiber or wireless connectivity
to the Proposed Market Data in
Markham by obtaining the market data
at the MDC and sending it over a fiber
or wireless network to Canada. A market
participant in Markham also may create
a proprietary market data connection,
whether fiber or wireless; connect
through another market participant;
utilize fiber connections offered by third
parties; or utilize fiber connections
offered by FIDS. The Exchange could
not impose any impediments to a third
party seeking to offer a similar service,
including by placing them at a latency
or other competitive disadvantage with
respect to the Exchange.
E:\FR\FM\22APN1.SGM
22APN1
Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Notices
Fiber network connections may be
more attractive to some market
participants as they are more reliable
and less susceptible to weather
conditions. Market participants’
considerations in determining what
connectivity to purchase may include
latency; the amount of network uptime;
the equipment that the network uses;
the cost of the connection; and the
applicable contractual provisions.
In addition, due to bandwidth
considerations, not all of the symbols
included in the NYSE IF and NYSE
Arca IF would be transported to
Markham, Canada. Accordingly, market
participants in Markham that wish to
obtain information for all of the symbols
in the NYSE IF or NYSE Arca IF may
prefer to use a fiber connection offered
by a FIDS or one of its competitors.
The Proposed Market Data in
Markham would not have any special
access to or advantage within the MDC.
The Integrated Feeds are generated at
the MDC in the trading and execution
systems of the NYSE and NYSE Arca.
FIDS would collect the Proposed Market
Data, then send it over the Proposed
Market Data Connection by connecting
to equipment in an MDC meet-me-room
and from there to a pole. The pole is
owned by a third party and is not on the
grounds of the MDC, and the path into
the MDC through a meet-me-room is
available to any telecommunications
provider. Further, all distances in the
MDC are normalized.
Because the Exchange does not
control Markham and could not impose
any impediments to a third party
seeking to offer a similar service,
including by placing them at a latency
or other competitive disadvantage with
respect to the Exchange., the Exchange
believes that the proposed change
would not impose a burden on
competition that is not necessary or
appropriate.
For the reasons described above, the
Exchange believes that the proposed
rule changes reflect this competitive
environment.
lotter on DSK11XQN23PROD with NOTICES1
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
VerDate Sep<11>2014
06:41 Apr 20, 2024
Jkt 262001
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–2024–20 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to file
number SR–NYSE–2024–20. This file
number should be included on the
subject line if email is used. To help the
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
PO 00000
Frm 00132
Fmt 4703
Sfmt 4703
29413
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–2024–20 and should be
submitted on or before May 13, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–08489 Filed 4–19–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99970; File No. SR–
NYSEARCA–2024–32]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the
Connectivity Fee Schedule
April 16, 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 April 2,
2024, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\22APN1.SGM
22APN1
]]>Agencies
[Federal Register Volume 89, Number 78 (Monday, April 22, 2024)]
[Notices]
[Pages 29409-29413]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08489]
[[Page 29409]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99969; File No. SR-NYSE-2024-20]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Connectivity Fee Schedule
April 16, 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 April 2, 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, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Connectivity Fee Schedule to
amend the wireless connectivity services that transport market data to
Markham, Canada. The proposed rule change is available on the
Exchange's website at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
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 to
amend the wireless connectivity services that transport market data to
Markham, Canada.
The Exchange expects that the proposed rule change would become
operative no later than June 30, 2024. It will announce the proposed
change to all Fixed Income and Data Services (``FIDS'') customers in
the Markham, Canada third party access center (``Markham'').
Current Markham Services
Currently, a market participant in Markham may purchase a wireless
connection to connect to a selection of symbols from the NYSE BBO and
Trades data feeds or the NYSE Arca BBO and Trades data feeds (the
``Current Market Data Connection'') distributed from the Mahwah, New
Jersey data center (``MDC'').\4\ Customers that purchase a Current
Market Data Connection are charged a non-recurring initial charge of
$5,000 and a $6,500 monthly fee (``MRC'').
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 90209 (October 15.
2020), 85 FR 67044 (October 21, 2020). Through its FIDS business,
Intercontinental Exchange, Inc. (``ICE'') operates the MDC. NYSE
American LLC, NYSE Arca, Inc. (``NYSE Arca''), NYSE Chicago, Inc.
and NYSE National, Inc. are national securities exchanges that are
affiliates of the Exchange (collectively, the ``Affiliate SROs'').
The Exchange and the Affiliate SROs are indirect subsidiaries of
ICE.
---------------------------------------------------------------------------
There is limited bandwidth available on the wireless network to
Markham. Accordingly, the Current Market Data Connection does not
transport information for all the symbols included in the NYSE BBO and
Trades and NYSE Arca BBO and Trades data feeds. Rather, FIDS provides
connectivity to a selection of such symbols, including the data for
which there is demand (the ``Current Market Data''). When a market
participant requests a Current Market Data Connection, it receives
connectivity to the portions of the NYSE BBO and Trades and NYSE Arca
BBO and Trades data that FIDS transmits wirelessly. The customer then
determines the symbols in the Current Market Data for which it will
receive data.
Proposed Changes to Markham Services
The Exchange proposes to replace (a) the source of the selection of
symbols from the NYSE BBO and Trades to the NYSE Integrated Feed
(``NYSE IF''), and (b) the source of the selection of symbols from the
NYSE Arca BBO and Trades to the NYSE Arca Integrated Feed (``NYSE Arca
IF'' and together with the NYSE IF, the ``Integrated Feeds'').
As there is limited bandwidth available on the wireless network to
Markham, the Exchange proposes that, similar to the Current Market Data
Connection, the proposed market data connection (``Proposed Market Data
Connection'') would not transport information for all the symbols
included in the NYSE IF and NYSE Arca IF. Rather, FIDS would provide
connectivity to a selection of such symbols, including the symbols in
the Integrated Feeds for which there is demand (the ``Proposed Market
Data''). When a market participant requested a Proposed Market Data
Connection, it would receive connectivity to the portions of the NYSE
IF and NYSE Arca IF that FIDS transmits wirelessly. The customer would
then determine the symbols in the Proposed Market Data for which it
would receive data. As now, the Exchange would not have visibility into
which portions of the data feed a given customer chooses to receive.
Importantly, FIDS does not plan to change the symbols and
information available. Because NYSE IF includes all data in the NYSE
BBO and Trades feeds, and NYSE Arca IF includes all data in the NYSE
Arca BBO and Trades feeds,\5\ FIDS anticipates that customers will
continue to connect to the same selection of symbols and information,
and so there will be no impact on the customers due to the change. It
does not currently plan to do so, but if in the future FIDS changes the
symbols or
[[Page 29410]]
information available, customers may have the option of connecting to
additional symbols or information that are not part of the Current
Market Data but are part of the Proposed Market Data.
---------------------------------------------------------------------------
\5\ Although their list of symbols is the same, the Integrated
Feeds provide the information in the NYSE BBO and Trades and NYSE
Arca BBO and Trades data feeds, and more. The NYSE BBO and NYSE Arca
BBO data feeds distribute on a real-time basis the same best bid and
offer (``BBO'') information that NYSE and NYSE Arca, respectively,
report under the Consolidated Quotation (``CQ'') Plan for inclusion
in the CQ Plan's consolidated quotation information data stream. The
NYSE Trades and NYSE Arca Trades data feeds distribute on a real-
time basis the same last sale information that NYSE and NYSE Arca,
respectively, report under the Consolidated Tape Association
(``CTA'') Plan for inclusion in the CTA Plan's consolidated data
streams. See Securities Exchange Act Release No. 99591 (February 23,
2024), 89 FR 14915 (February 29, 2024) (SR-NYSE-2024-08) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
the Content of the NYSE Best Quotes & Trades Data Feed). In addition
to the BBO and last sale information, the Integrated Feeds provide
real-time market data in a unified view of events, in sequence, as
they appear on the NYSE and NYSE Arca matching engine, respectively.
They include depth of book order data, and opening and closing
imbalance data, as well as security status updates (e.g., trade
corrections and trading halts) and stock summary messages. See
Securities Exchange Act Release Nos. 99689 (March 7, 2024), 89 FR
18466 (March 13, 2024) (SR-NYSE-2024-12, at note 10 (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To
Establish the NYSE Aggregated Lite Market Data Feed), and 19381
(March 12, 2024), 89 FR 19381 (March 18, 2024) (SR-NYSEArca-2024-
22), at note 10 (Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Establish the NYSE Arca Aggregated Lite
Market Data Feed).
---------------------------------------------------------------------------
The charges for the services would not change. As is true now, the
proposal would waive the first month's MRC, to allow customers to test
a new Proposed Market Data Connection for a month before incurring any
MRC.\6\ Also as currently true, the fees for a Proposed Market Data
Connection would not include the cost of the Integrated Feeds
themselves, just the connection.
---------------------------------------------------------------------------
\6\ Customers that have a Current Market Data Connection would
not receive a second waiver.
---------------------------------------------------------------------------
In order to implement the proposed change, the Exchange proposes to
make the following changes to the Connectivity Fee Schedule under ``C.
Wireless Connectivity to Market Data'' (proposed additions italicized
and proposed deletions in brackets):
------------------------------------------------------------------------
Type of service Amount of charge
------------------------------------------------------------------------
NYSE [BBO and Trades]Integrated Feed: $5,000 per connection initial
Wireless Connection in Markham, Canada charge plus monthly charge per
access center. connection of $6,500.
NYSE Arca [BBO and Trades]Integrated $5,000 per connection initial
Feed: Wireless Connection in Markham, charge plus monthly charge per
Canada access center. connection of $6,500.
------------------------------------------------------------------------
As now, the Proposed Market Data Connections would not utilize the
pole on the grounds of the MDC.
The Proposed Market Data
Like the NYSE BBO and Trades and NYSE Arca BBO and Trades, the
Integrated Feeds are generated at the MDC in the trading and execution
systems of the NYSE and NYSE Arca. In each case, the NYSE or NYSE Arca,
as applicable, files with the Commission for the Integrated Feed it
generates, and the related fees.\7\ The filed market data fees apply to
all customers of the Integrated Feeds, no matter what form of
connectivity or connectivity provider they use.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release Nos. 74128 (January 23,
2015), 80 FR 4951 (January 29, 2015) (SR-NYSE-2015-03) (notice of
filing and immediate effectiveness of proposed rule change
establishing the NYSE Integrated Feed data feed); 76485 (November
20, 2015), 80 FR 74158 (November 27, 2015) (SR-NYSE-2015-57) (notice
of filing and immediate effectiveness of a proposed rule change
establishing fees for the NYSE Integrated Feed); 65669 (November 2,
2011), 76 FR 69311 (November 8, 2011) (SR-NYSEArca-2011-78) (notice
of filing and immediate effectiveness of proposed rule change
offering the NYSE Arca Integrated Feed); and 66128 (January 10,
2012), 77 FR 2331 (January 17, 2012) (SR-NYSEArca-2011-96) (notice
of filing and immediate effectiveness of a proposed rule change
establishing fees for NYSE Arca Integrated Feed).
---------------------------------------------------------------------------
When a market participant wants to connect to an Integrated Feed,
it requests a connection from the provider of its choice. All
providers, including FIDS, may only provide the market participant with
connectivity once the provider has received confirmation from the NYSE
or NYSE Arca, as applicable, that the market participant is authorized
to receive the requested data feed.
Application and Impact of the Proposed Change
The proposed change would apply to all customers equally. The
proposed change would not apply differently to distinct types or sizes
of market participants. As is currently the case, the purchase of any
connectivity service is completely voluntary and the Connectivity Fee
Schedule is applied uniformly to all customers.
The Exchange is proposing the change at the request of FIDS
customers. The customers in Markham that would be affected by the
proposed change have stated to FIDS that they would prefer connectivity
to the Proposed Market Data instead of the Current Market Data. It is
the Exchange's understanding that they connect to the Integrated Feeds
in Markham over a fiber connection. Given that, changing to the
Proposed Market Data may remove the necessity of their also subscribing
to NYSE BBO and Trades or NYSE Arca BBO and Trades.
FIDS does not expect that the proposed change will result in new
customers in Markham.
The proposed change is not intended to address any other issues
relating to connectivity 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 mechanisms of, a free and open market and a national market
system and, in general, to protect investors and the public interest
and does not unfairly discriminate 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.
---------------------------------------------------------------------------
\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 to the wireless
connectivity services that transport market data to Markham would
remove impediments to, and perfect the mechanisms of, a free and open
market and a national market system, and, in general, protect investors
and the public interest, as the change would respond to customer
requests while keeping the cost the same.
Importantly, FIDS does not plan to change the symbols and
information available. Because NYSE IF includes all data in the NYSE
BBO and Trades feeds, and NYSE Arca IF includes all data in the NYSE
Arca BBO and Trades feeds, FIDS anticipates that customers will
continue to connect to the same selection, and so there will be no
impact on the customers due to the change.
It does not currently plan to do so, but if FIDS does change the
symbols or information available, customers may have the option of
connecting to additional symbols or information that are not part of
the Current Market Data but are part of the Proposed Market Data. NYSE
IF and NYSE Arca IF include additional data, such as depth of book
order data, last sale data, and opening and closing imbalance data, as
well as the data in the Current Market Data. As a result, customers in
Markham may be able to select what market data
[[Page 29411]]
they wish to receive from an expanded set.
At the same time, there would be no change to the costs for the
Current Market Data Connection. The Exchange believes that it is
reasonable that the fee remain the same because, as noted above, FIDS
anticipates that customers will continue to connect to the same
selection of symbols and, even if there is a change in the information
available, there is limited bandwidth available on the wireless network
to Markham, and that would not change.
The Exchange is not aware of any other public, commercially
available wireless connections between the MDC and Markham that connect
to the Proposed Market Data. However, the third party McKay Brothers
LLC (``McKay'') offers wireless connectivity between the MDC and
Markham. Such wireless connection would compete with the Exchange's
Proposed Market Data Connection, as customers could use the McKay
wireless connection to transport the Proposed Market Data.
In addition, the Exchange understands that other providers offer
connectivity to the Proposed Market Data in Markham through fiber
connections. Such third party providers obtain one or more of the
Integrated Feeds from FIDS at the MDC and send it over their own fiber
networks to Markham. It is the Exchange's understanding that various
customers already connect to the Proposed Market Data over a fiber
connection. The Exchange does not know how many firms distribute the
Proposed Market Data in Markham.
Additional third party competitors could offer fiber or wireless
connectivity to the Proposed Market Data in Markham by obtaining the
market data at the MDC and sending it over a fiber or wireless network
to Canada. A market participant in Markham also may create a
proprietary market data connection, whether fiber or wireless; connect
through another market participant; utilize fiber connections offered
by third parties; or utilize fiber connections offered by FIDS. The
Exchange could not impose any impediments to a third party seeking to
offer a similar service, including by placing them at a latency or
other competitive disadvantage with respect to the Exchange.
Wireless connections and fiber connections to the Proposed Market
Data in Markham would compete with each other. Given the various
advantages and disadvantages of both wireless and fiber connections, a
market participant interested in purchasing a connection to the
Proposed Market Data in Markham is likely to consider a variety of
factors in deciding whether to use a wireless versus fiber connection,
including latency; the amount of network uptime; the equipment the
network uses; the cost of the connection; and the applicable
contractual provisions. Indeed, fiber network connections may be more
attractive to some market participants as they are more reliable and
less susceptible to weather conditions.
The Exchange does not believe that FIDS would have any competitive
advantage over any future providers of wireless connectivity to the
Proposed Market Data in Markham. The Proposed Market Data Connection
does not have any special access to or advantage within the MDC. The
Integrated Feeds are generated at the MDC in the trading and execution
systems of the NYSE and NYSE Arca. FIDS would collect the Proposed
Market Data, then send it over the Proposed Market Data Connection by
connecting to equipment in an MDC meet-me-room and from there to a
pole. The pole is owned by a third party and is not on the grounds of
the MDC, and the path into the MDC through a meet-me-room is available
to any telecommunications provider. Further, all distances in the MDC
are normalized.
The Exchange believes that the proposed rule change is reasonable
because a market participant in Markham that opted for a Proposed
Market Data Connection would be able to select the specific Proposed
Market Data that it wanted to receive in accordance with its needs,
thereby helping it tailor its operations to the requirements of its
business operations.
The Proposed Change Is an Equitable Allocation of Fees and Credits
The Exchange believes that its proposal equitably allocates its
fees among market participants.
The Exchange believes that the proposed rule change to the wireless
connectivity services that transport market data to Markham would be
equitable as the change would respond to customer requests while
keeping the cost the same. The customers in Markham that would be
affected by the proposed change have stated that they would prefer
connectivity to the Proposed Market Data instead of the Current Market
Data. If they already subscribe to one or more of the Integrated Feeds,
changing to the Proposed Market Data may remove the necessity of their
also subscribing to NYSE BBO and Trades or NYSE Arca BBO and Trades.
Importantly, FIDS does not plan to change the symbols and
information available. Because NYSE IF includes all data in the NYSE
BBO and Trades feeds, and NYSE Arca IF includes all data in the NYSE
Arca BBO and Trades feeds, FIDS anticipates that customers will
continue to connect to the same selection, and so there will be no
impact on the customers due to the change.
It does not currently plan to do so, but if FIDS does change the
symbols or information available, customers may have the option of
connecting to additional symbols or information that are not part of
the Current Market Data but are part of the Proposed Market Data. NYSE
IF and NYSE Arca IF include additional data as well as the data in the
NYSE and NYSE Arca BBO and Trades Feeds. As a result, customers in
Markham may be able to select what market data they wish to receive
from an expanded set.
At the same time, there would be no change to the costs for the
Current Market Data Connection. The Exchange believes that it is
equitable that the fee remain the same because, as noted above, FIDS
anticipates that customers will continue to connect to the same
selection of symbols and, even if there is a change in the information
available, there is limited bandwidth available on the wireless network
to Markham, and that would not change.
The McKay wireless connection would compete with the Proposed
Market Data Connection, as customers could use the McKay wireless
connection to transport Proposed Market Data. The Exchange is not aware
of any other public, commercially available wireless connections to the
Proposed Market Data between the MDC and Markham. Based on the
information available to it, the Exchange understands that other
providers offer connectivity to the Proposed Market Data in Markham
through fiber connections. It is the Exchange's understanding that
various customers already connect to the Proposed Market Data over a
fiber connection, and so the Proposed Market Data Connection may act as
a supplement to their existing fiber connections. The Exchange does not
know how many firms redistribute the Proposed Market Data in Markham.
Additional third party competitors could offer fiber or wireless
connectivity to the Proposed Market Data in Markham by obtaining the
market data at the MDC and sending it over a fiber or wireless network
to Canada. A market participant in Markham also may create a
proprietary market data connection, whether fiber or wireless; connect
through another market participant; utilize fiber connections offered
by third parties; or utilize fiber connections
[[Page 29412]]
offered by FIDS. The Exchange could not impose any impediments to a
third party seeking to offer a similar service, including by placing
them at a latency or other competitive disadvantage with respect to the
Exchange.
The Exchange believes that the proposed change is equitable because
it will result in fees being charged only to market participants that
voluntarily select to receive the corresponding services and because
those services will be available to all market participants.
Furthermore, the Exchange believes that the services and fees proposed
herein are equitably allocated because, in addition to the services
being completely voluntary, they are available to all market
participants on an equal basis (i.e., the same products and services
are available to all market participants). All market participants that
voluntarily select a Proposed Market Data Connection would be charged
the same amount for the same services.
The Proposed Change Is Not Unfairly Discriminatory
The Exchange believes that the proposed rule change is not unfairly
discriminatory, for the following reasons.
The Exchange believes that the proposed rule change to the wireless
connectivity services that transport market data to Markham is not
unfairly discriminatory, as the change would respond to customer
requests while keeping the cost the same. The customers in Markham that
would be affected by the proposed change have stated that they would
prefer connectivity to the Proposed Market Data instead of the Current
Market Data. If they already subscribe to one or more of the Integrated
Feeds, changing to the Proposed Market Data may remove the necessity of
their also subscribing to NYSE BBO and Trades or NYSE Arca BBO and
Trades.
Importantly, FIDS does not plan to change the symbols and
information available. Because NYSE IF includes all data in the NYSE
BBO and Trades feeds, and NYSE Arca IF includes all data in the NYSE
Arca BBO and Trades feeds, FIDS anticipates that customers will
continue to connect to the same selection, and so there will be no
impact on the customers due to the change.
It does not currently plan to do so, but if FIDS does change the
symbols or information available, customers may have the option of
connecting to additional symbols or information that are not part of
the Current Market Data but are part of the Proposed Market Data. NYSE
IF and NYSE Arca IF include additional data, such as depth of book
order data, last sale data, and opening and closing imbalance data, as
well as the data in the Current Market Data. As a result, customers in
Markham may be able to select what market data they wish to receive
from an expanded set.
At the same time, there would be no change to the cost for the
Current Market Data Connection. The Exchange believes that it is not
unfairly discriminatory that the fee remain the same because, as noted
above, FIDS anticipates that customers will continue to connect to the
same selection of symbols and, even if there is a change in the
information available, there is limited bandwidth available on the
wireless network to Markham, and that would not change.
The Exchange believes that the proposed change is not unfairly
discriminatory because it will result in fees being charged only to
market participants that voluntarily select to receive the
corresponding services and because those services will be available to
all market participants. Furthermore, the Exchange believes that the
services and fees proposed herein are not unfairly discriminatory
because, in addition to the services being completely voluntary, they
are available to all market participants on an equal basis (i.e., the
same products and services are available to all market participants).
All market participants that voluntarily select a Proposed Market Data
Connection would be charged the same amount for the same services.
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 proposed rule changes 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).
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Importantly, FIDS does not plan to change the symbols and
information available. Because NYSE IF includes all data in the NYSE
BBO and Trades feeds, and NYSE Arca IF includes all data in the NYSE
Arca BBO and Trades feeds, FIDS anticipates that customers will
continue to connect to the same selection, and so there will be no
impact on customers due to the change.
It does not currently plan to do so, but if FIDS does change the
symbols or information available, customers may have the option of
connecting to additional symbols or information that are not part of
the Current Market Data but are part of the Proposed Market Data. NYSE
IF and NYSE Arca IF include additional data, such as depth of book
order data, last sale data, and opening and closing imbalance data, as
well as the data in the Current Market Data. As a result, customers in
Markham may be able to select what market data they wish to receive
from an expanded set.
At the same time, there would be no change to the costs for the
Current Market Data Connection. As noted above, FIDS anticipates that
customers will continue to connect to the same selection of symbols
and, even if there is a change in the information available, there is
limited bandwidth available on the wireless network to Markham, and
that would not change.
The McKay wireless connection would compete with the Exchange's
Proposed Market Data Connection, as customers could use the McKay
wireless connection to transport the Proposed Market Data. The Exchange
is not aware of any other public, commercially available wireless
connections to the Proposed Market Data between the MDC and Markham.
Based on the information available to it, the Exchange understands
that other providers offer connectivity to the Proposed Market Data in
Markham through fiber connections. Such third party providers obtain
one or both of the Integrated Feeds from FIDS at the MDC and send it
over their own fiber networks to Markham. It is the Exchange's
understanding that various customers already connect to the Proposed
Market Data over a fiber connection, and so the Proposed Market Data
Connection may act as a supplement to their existing fiber connections.
The Exchange does not know how many firms redistribute the Proposed
Market Data in Markham.
Additional third party competitors could offer fiber or wireless
connectivity to the Proposed Market Data in Markham by obtaining the
market data at the MDC and sending it over a fiber or wireless network
to Canada. A market participant in Markham also may create a
proprietary market data connection, whether fiber or wireless; connect
through another market participant; utilize fiber connections offered
by third parties; or utilize fiber connections offered by FIDS. The
Exchange could not impose any impediments to a third party seeking to
offer a similar service, including by placing them at a latency or
other competitive disadvantage with respect to the Exchange.
[[Page 29413]]
Fiber network connections may be more attractive to some market
participants as they are more reliable and less susceptible to weather
conditions. Market participants' considerations in determining what
connectivity to purchase may include latency; the amount of network
uptime; the equipment that the network uses; the cost of the
connection; and the applicable contractual provisions.
In addition, due to bandwidth considerations, not all of the
symbols included in the NYSE IF and NYSE Arca IF would be transported
to Markham, Canada. Accordingly, market participants in Markham that
wish to obtain information for all of the symbols in the NYSE IF or
NYSE Arca IF may prefer to use a fiber connection offered by a FIDS or
one of its competitors.
The Proposed Market Data in Markham would not have any special
access to or advantage within the MDC. The Integrated Feeds are
generated at the MDC in the trading and execution systems of the NYSE
and NYSE Arca. FIDS would collect the Proposed Market Data, then send
it over the Proposed Market Data Connection by connecting to equipment
in an MDC meet-me-room and from there to a pole. The pole is owned by a
third party and is not on the grounds of the MDC, and the path into the
MDC through a meet-me-room is available to any telecommunications
provider. Further, all distances in the MDC are normalized.
Because the Exchange does not control Markham and could not impose
any impediments to a third party seeking to offer a similar service,
including by placing them at a latency or other competitive
disadvantage with respect to the Exchange., the Exchange believes that
the proposed change would not impose a burden on competition that is
not necessary or appropriate.
For the reasons described above, the Exchange believes that the
proposed rule changes reflect this competitive environment.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The 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.
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \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).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-NYSE-2024-20 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-NYSE-2024-20. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
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-2024-20 and should be
submitted on or before May 13, 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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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-08489 Filed 4-19-24; 8:45 am]
BILLING CODE 8011-01-P
