Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Connectivity Fee Schedule, 42518-42521 [2024-10599]
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Federal Register / Vol. 89, No. 95 / Wednesday, May 15, 2024 / Notices
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),14 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay so that the proposal may become
operative immediately upon filing. The
Exchange states that waiver of the 30day operative delay would be consistent
with the protection of investors and the
public interest because it would allow
the Exchange to offer, and therefore
ensure that Users could access, the
NYSE Pillar Depth market data feed
when it is available. For these reasons,
the Commission finds that waiver of the
operative delay is consistent with the
protection of investors and the public
interest. Accordingly, the Commission
hereby waives the 30-day operative
delay and designates the proposal
operative upon filing.15
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) 16 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
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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 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change 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.
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 For purposes only of accelerating the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
16 15 U.S.C. 78s(b)(2)(B).
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Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
NYSENAT–2024–14 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to file
number SR–NYSENAT–2024–14. 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–NYSENAT–2024–14 and should be
submitted on or before June 5, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Sherry R. Haywood,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100098; File No. SR–
NYSECHX–2024–16]
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the
Connectivity Fee Schedule
May 9, 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 29,
2024, the NYSE Chicago, Inc. (‘‘NYSE
Chicago’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Connectivity Fee Schedule (‘‘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
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.
[FR Doc. 2024–10600 Filed 5–14–24; 8:45 am]
BILLING CODE 8011–01–P
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
17 17
PO 00000
CFR 200.30–3(a)(12).
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Federal Register / Vol. 89, No. 95 / Wednesday, May 15, 2024 / Notices
NYSE Pillar Depth.
NYSE Trades.
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
The NYSE has filed to establish the
‘‘NYSE Pillar Depth’’ market data feed.6
Accordingly, the Exchange proposes to
update the table of Included Data
Products to include the NYSE Pillar
Depth market data feed. In addition, in
the current table the NYSE American
Options and NYSE Arca Options market
data feeds offered are not broken out.7
Accordingly, the Exchange proposes to
do so now.
To implement the proposed rule
change, the Exchange proposes to
update the table of Included Data
Products as follows (proposed additions
italicized):
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NYSE:
NYSE
NYSE
NYSE
NYSE
NYSE
NYSE
Aggregated Lite.
Alerts.
BBO.
Integrated Feed.
OpenBook.
Order Imbalances.
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. 87408 (October 28, 2019), 84 FR 58778
at n.6 (November 1, 2019) (SR–NYSECHX–2019–
12). 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 Arca, Inc. (‘‘NYSE
Arca’’), 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–2024–25, SR–NYSEAMER–
2024–27, SR–NYSEARCA–2024–35, and SR–
NYSENAT–2024–14.
5 See Securities Exchange Act Release 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.).
6 See Securities Exchange Act Release No. 100030
(April 25, 2024) (SR–NYSE–2024–24) (Notice of
Filing and Immediate Effectiveness of Proposed
Rule Change to Establish the NYSE Pillar Depth
Data Feed).
7 See 84 FR 58778, Note 5, supra.
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NYSE American Options:
NYSE American Options Top Feed.
NYSE American Options Deep Feed.
NYSE American Options Complex Order
Book.
NYSE Arca Options:
NYSE Arca Options Top Feed.
NYSE Arca Options Deep Feed.
NYSE Arca Options Complex Order
Book.
The Exchange expects that the present
filing will become operative on the later
of (a) the present filing becoming
operative; and (b) the filing to establish
a fee for the NYSE Pillar Depth market
data feed becoming operative.8 The
Exchange expects such operative date to
be no later than the end of the second
quarter of 2024.
The Exchange does not charge for
connectivity to the Included Data Feeds.
Accordingly, it would not charge for
connectivity to the NYSE Pillar Depth
market data feed.
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 NYSE Pillar Depth
market data feed, 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 colocation 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,9 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,10 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
8 If no such filing is made, then the present filing
would become operative upon the NYSE Pillar
Depth market data feed becoming operative.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
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remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest and because it is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers. The
Exchange further believes that the
proposed rule change is consistent with
Section 6(b)(4) of the Act,11 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 NYSE Pillar Depth market data feed
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 the additional
market data feed without paying
additional charges.
Adding the proposed additional
Included Data Product would allow a
User to connect to the NYSE Pillar
Depth market data feed if 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
NYSE Pillar Depth market data feed. As
alternatives to connecting to the NYSE
Pillar Depth market data feed as an
Included Data Product, a User may
connect to the market data feed 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 NYSE Pillar Depth
market data feed and setting forth the
11 15
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U.S.C. 78f(b)(4).
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Federal Register / Vol. 89, No. 95 / Wednesday, May 15, 2024 / Notices
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NYSE American Options and NYSE
Arca Options feeds already offered, the
proposed change would ensure that the
list of Included Data Products was up to
date and consistent in the level of detail.
Accordingly, the Exchange believes that
the proposed rule change is reasonable
and would perfect the mechanisms of a
free and open market and a national
market system and, in general, protect
investors and the public interest, as it
would ensure that the description of
Included Data Products was complete,
ensuring that it is accessible and
transparent, and providing market
participants with clarity as to what
connectivity is included in the purchase
of access to the LCN and IP networks.
The Proposed Change Is Equitable and
Not Unfairly Discriminatory
The Exchange believes that the
proposed change provides for the
equitable allocation of reasonable dues,
fees, and other charges among its
members and issuers and other persons
using its facilities and does not unfairly
discriminate between customers,
issuers, brokers, or dealers because
adding the NYSE Pillar Depth market
data feed 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 the
additional market data feed 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
NYSE Pillar Depth market data feed
would allow a User to connect to it if
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 NYSE Pillar Depth
market data feed and setting forth the
NYSE American Options and NYSE
Arca Options 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
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19:12 May 14, 2024
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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
proposed change would 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.
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 NYSE Pillar Depth market
data feed 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 the additional
market data feed without paying
additional charges.
Adding the proposed additional
Included Data Products would allow a
User to connect to the NYSE Pillar
Depth market data feed if 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 NYSE Pillar Depth
market data feed. As alternatives to
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connecting to the NYSE Pillar Depth
market data feed as an Included Data
Product, a User may connect to the
market data feed 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 NYSE Pillar Depth
market data feed and setting forth the
NYSE American Options and NYSE
Arca Options 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
12 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change 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.
13 17
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Federal Register / Vol. 89, No. 95 / Wednesday, May 15, 2024 / Notices
A proposed rule change filed under
Rule 19b–4(f)(6) 15 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),16 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay so that the proposal may become
operative immediately upon filing. The
Exchange states that waiver of the 30day operative delay would be consistent
with the protection of investors and the
public interest because it would allow
the Exchange to offer, and therefore
ensure that Users could access, the
NYSE Pillar Depth market data feed
when it is available. For these reasons,
the Commission finds that waiver of the
operative delay is consistent with the
protection of investors and the public
interest. Accordingly, the Commission
hereby waives the 30-day operative
delay and designates the proposal
operative upon filing.17
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) 18 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
lotter on DSK11XQN23PROD with NOTICES1
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
NYSECHX–2024–16 on the subject line.
CFR 240.19b–4(f)(6).
CFR 240.19b–4(f)(6)(iii).
17 For purposes only of accelerating the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
18 15 U.S.C. 78s(b)(2)(B).
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to file
number SR–NYSECHX–2024–16. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–NYSECHX–2024–16 and should be
submitted on or before June 5, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–10599 Filed 5–14–24; 8:45 am]
BILLING CODE 8011–01–P
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16 17
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100091; File No. SR–
CBOE–2024–021]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Its Fees
Schedule
May 9, 2024.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 1,
2024, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) 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 Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to amend
its Fees Schedule. The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/CBOELegalRegulatory
Home.aspx), at the Exchange’s Office of
the Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
1 15
19 17
PO 00000
CFR 200.30–3(a)(12).
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2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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]]>Agencies
[Federal Register Volume 89, Number 95 (Wednesday, May 15, 2024)]
[Notices]
[Pages 42518-42521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10599]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100098; File No. SR-NYSECHX-2024-16]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Connectivity Fee Schedule
May 9, 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 29, 2024, the NYSE Chicago, Inc. (``NYSE Chicago'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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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 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.
[[Page 42519]]
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. 87408 (October 28, 2019), 84 FR 58778 at
n.6 (November 1, 2019) (SR-NYSECHX-2019-12). 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 Arca, Inc. (``NYSE
Arca''), 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-2024-25, SR-NYSEAMER-2024-27, SR-NYSEARCA-2024-
35, and SR-NYSENAT-2024-14.
\5\ See Securities Exchange Act Release 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.).
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The NYSE has filed to establish the ``NYSE Pillar Depth'' market
data feed.\6\ Accordingly, the Exchange proposes to update the table of
Included Data Products to include the NYSE Pillar Depth market data
feed. In addition, in the current table the NYSE American Options and
NYSE Arca Options market data feeds offered are not broken out.\7\
Accordingly, the Exchange proposes to do so now.
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\6\ See Securities Exchange Act Release No. 100030 (April 25,
2024) (SR-NYSE-2024-24) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change to Establish the NYSE Pillar
Depth Data Feed).
\7\ See 84 FR 58778, Note 5, supra.
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To implement the proposed rule change, the Exchange proposes to
update the table of Included Data Products as follows (proposed
additions italicized):
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NYSE:
NYSE Aggregated Lite.
NYSE Alerts.
NYSE BBO.
NYSE Integrated Feed.
NYSE OpenBook.
NYSE Order Imbalances.
NYSE Pillar Depth.
NYSE Trades.
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NYSE American Options:
NYSE American Options Top Feed.
NYSE American Options Deep Feed.
NYSE American Options Complex Order Book.
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NYSE Arca Options:
NYSE Arca Options Top Feed.
NYSE Arca Options Deep Feed.
NYSE Arca Options Complex Order Book.
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The Exchange expects that the present filing will become operative
on the later of (a) the present filing becoming operative; and (b) the
filing to establish a fee for the NYSE Pillar Depth market data feed
becoming operative.\8\ The Exchange expects such operative date to be
no later than the end of the second quarter of 2024.
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\8\ If no such filing is made, then the present filing would
become operative upon the NYSE Pillar Depth market data feed
becoming operative.
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The Exchange does not charge for connectivity to the Included Data
Feeds. Accordingly, it would not charge for connectivity to the NYSE
Pillar Depth market data feed.
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 NYSE Pillar Depth market data
feed, 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 colocation 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,\9\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\10\ 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,\11\ 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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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ 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 NYSE Pillar Depth market data feed
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 the additional market data feed without paying
additional charges.
Adding the proposed additional Included Data Product would allow a
User to connect to the NYSE Pillar Depth market data feed if 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 NYSE Pillar Depth market
data feed. As alternatives to connecting to the NYSE Pillar Depth
market data feed as an Included Data Product, a User may connect to the
market data feed 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 NYSE Pillar Depth market data feed and setting forth
the
[[Page 42520]]
NYSE American Options and NYSE Arca Options feeds already offered, the
proposed change would ensure that the list of Included Data Products
was up to date and consistent in the level of detail. Accordingly, the
Exchange believes that the proposed rule change is reasonable and would
perfect the mechanisms of a free and open market and a national market
system and, in general, protect investors and the public interest, as
it would ensure that the description of Included Data Products was
complete, ensuring that it is accessible and transparent, and providing
market participants with clarity as to what connectivity is included in
the purchase of access to the LCN and IP networks.
The Proposed Change Is Equitable and Not Unfairly Discriminatory
The Exchange believes that the proposed change provides for the
equitable allocation of reasonable dues, fees, and other charges among
its members and issuers and other persons using its facilities and does
not unfairly discriminate between customers, issuers, brokers, or
dealers because adding the NYSE Pillar Depth market data feed 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 the additional market data
feed 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
NYSE Pillar Depth market data feed would allow a User to connect to it
if 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 NYSE Pillar Depth market data feed and setting forth
the NYSE American Options and NYSE Arca Options 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 proposed change would 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.
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 NYSE Pillar
Depth market data feed 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 the additional market data
feed without paying additional charges.
Adding the proposed additional Included Data Products would allow a
User to connect to the NYSE Pillar Depth market data feed if 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 NYSE Pillar Depth market data feed. As alternatives to
connecting to the NYSE Pillar Depth market data feed as an Included
Data Product, a User may connect to the market data feed 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 NYSE Pillar Depth market data feed and setting forth
the NYSE American Options and NYSE Arca Options 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)(iii). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change 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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[[Page 42521]]
A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\16\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
states that waiver of the 30-day operative delay would be consistent
with the protection of investors and the public interest because it
would allow the Exchange to offer, and therefore ensure that Users
could access, the NYSE Pillar Depth market data feed when it is
available. For these reasons, the Commission finds that waiver of the
operative delay is consistent with the protection of investors and the
public interest. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\17\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ For purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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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) \18\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\18\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-NYSECHX-2024-16 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-NYSECHX-2024-16. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-NYSECHX-2024-16 and should
be submitted on or before June 5, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-10599 Filed 5-14-24; 8:45 am]
BILLING CODE 8011-01-P
