[Federal Register Volume 87, Number 145 (Friday, July 29, 2022)]
[Notices]
[Pages 45811-45814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16255]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95361; File No. SR-NYSECHX-2022-17]


Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its 
Fee Schedule

July 25, 2022.
    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 July 12, 2022, 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 its Fee Schedule (the ``Fee 
Schedule'') related to colocation to remove obsolete text. 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 its Fee Schedule related to 
colocation to remove obsolete text.\4\
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    \4\ The Exchange is an indirect subsidiary of Intercontinental 
Exchange, Inc. (``ICE''). Each of the Exchange's affiliates New York 
Stock Exchange LLC, NYSE American LLC, NYSE Arca, Inc., and NYSE 
National, Inc. has submitted substantially the same proposed rule 
change to propose the changes described herein. See SR-NYSE-2022-30, 
SR-NYSEAMER-2022-31, SR-NYSEArca-2022-41, and SR-NYSENAT-2022-12.
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(1) Proposal To Change Names of Select Third Party Systems and Third 
Party Data Feeds
    As set forth in the Fee Schedule, the Exchange charges fees for 
connectivity to the execution systems of third party markets and other 
content service providers (``Third Party Systems''), and data feeds 
from third party markets and other content service providers (``Third 
Party Data Feeds'').\5\ The lists of Third Party Systems and Third 
Party Data Feeds are set forth in the Fee Schedule.
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    \5\ See Securities Exchange Act Release No. 87408 (October 28, 
2019), 84 FR 58778 (November 1, 2019) (SR-NYSECHX-2019-27).
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    The Exchange proposes to amend the list of Third Party Systems in 
the Fee Schedule to reflect the following updated names for existing 
Third Party Systems:
     Change the name of the ``Miami International Securities 
Exchange'' to ``MIAX Options,'' and
     Change the name of the ``MIAX PEARL'' to ``MIAX PEARL 
Options.''
    The Exchange also proposes to amend the list of Third Party Data 
Feeds in the Fee Schedule to reflect the following updated names for 
existing Third Party Data Feeds:
     Change the name ``Miami International Securities Exchange/
MIAX PEARL'' to ``MIAX Options/MIAX PEARL Options;'' and
     Change ``SR Labs--SuperFeed'' data feeds to ``Vela--
SuperFeed,'' to reflect the content provider's recent change to the 
name of these products.
    This change would update the names of these services, but would not 
make any change to the services provided.
(2) Proposal To Delete Discontinued Third Party Data Feed
    The Exchange proposes to delete the ``NASDAQ OMDF'' data feed from 
the list of available Third Party Data Feeds, as it is no longer 
offered by the content service provider.
(3) Proposal To Remove References to ICE Data Global Index
    The Exchange proposes to remove obsolete references to the ICE Data 
Global Index (the ``GIF'') from the list of Third Party Data Feeds 
available for connectivity and related text.
    In May 2020, ICE, which publishes the GIF, announced to its 
customers that before the end of 2020, it would cease offering the GIF 
as a stand-alone product. The Exchange accordingly amended its Fee 
Schedule to inform customers that it would cease offering connectivity 
to the GIF once it is no longer available.\6\
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    \6\ See Securities Exchange Act Release No. 88990 (June 2, 
2020), 85 FR 34778 (June 8, 2020) (SR-NYSECHX-2020-17).
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    ICE has informed the Exchange that it ceased offering the GIF as a 
stand-alone product, making the references to the GIF obsolete. The 
operative date was announced through a customer notice. Accordingly, 
the Exchange proposes to remove ``ICE Data Global Index * '' and the 
corresponding asterisked note from the Fee Schedule.
    In order to implement the proposed change, the Exchange proposes to 
make the following changes to the section of the Fee Schedule entitled 
``Connectivity to Third Party Data Feeds'':
     In the first paragraph and in the table of Third Party 
Data Feeds, delete ``ICE Data Global Index * ''.
     Following the table of Third Party Data Feeds, delete the 
following text:
    * ICE will cease to offer the GIF as a stand-alone product, which 
the Exchange has been informed by ICE is currently expected to occur 
before the end of 2020. The Exchange will announce the operative date 
through a customer notice. Any change fees that a User would otherwise 
incur as a result of the proposed change will be waived.
(4) Proposal To Remove the Temporary Waiver of Hot Hands Fees
    The Exchange proposes to remove the obsolete reference to the 
waiver of Hot Hands fees in light of the reopening of the data center 
in Mahwah, New Jersey (``Mahwah Data Center'' or ``MDC'').
    In March 2020, ICE announced to each User that, starting on March 
16, 2020, the MDC would be closed to third parties in response to 
COVID-19. The Exchange temporarily waived all Hot Hands fees from the 
date of the closing through the date of the reopening of the MDC, and 
added a note to the fees for the Hot Hands service stating as much.\7\
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    \7\ The Exchange first waived the Hot Hands Fee in a March 17, 
2020 filing, and subsequently extended the waiver four times. See 
Securities Exchange Act Release Nos. 88400 (March 17, 2020), 85 FR 
16434 (March 23, 2020) (SRNYSECHX-2020-07); 88522 (March 31, 2020), 
85 FR 19191 (April 6, 2020) (SR-NYSECHX-2020-10); 88957 (May 27, 
2020), 85 FR 33766 (June 2, 2020) (SR-NYSECHX-2020-15); 89176 (June 
29, 2020), 85 FR 40377 (July 6, 2020) (SR-NYSECHX-2020-19); and 
89654 (August 25, 2020), 85 FR 53879 (August 31, 2020) (SR-NYSECHX-
2020-25).

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[[Page 45812]]

    The MDC reopened on October 1, 2020. The date of the reopening was 
announced through a customer notice. As a result of the reopening, the 
waiver of Hot Hands fees ceased, and the note became obsolete. The 
Exchange now proposes to remove the obsolete text.
    In order to implement this proposed change, the Exchange proposes 
to make the following changes to the Fee Schedule:
     In the Types of Service table, remove the ``[dagger]'' 
symbol after ``Hot Hands Service *** ''.
     Following the Types of Service table, remove the following 
text:
    [dagger] Fees for Hot Hands Services will be waived beginning on 
March 16, 2020 through the reopening of the Mahwah, New Jersey data 
center. The date of the reopening will be announced through a customer 
notice.
(5) Proposal To Remove Obsolete Text About Transition Period for 
Suspended Services
    The Exchange proposes to remove obsolete text regarding the 
transition period that expired on May 24, 2021 concerning the 
Exchange's provision of suspended services at no charge.
    As background, on March 10, 2021, the Exchange filed with the 
Commission a proposed rule change for immediate effectiveness that 
amended the colocation services offered by the Exchange to provide 
Users the option to access the systems and data feeds of various 
additional third parties.\8\ The proposed rule change became operative 
on April 9, 2021, and five Users subsequently contracted to receive the 
services that were added in the filing.
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    \8\ See Securities Exchange Act Release No. 91390 (March 23, 
2021), 86 FR 16424 (March 29, 2021) (SR-NYSECHX-2021-04).
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    On May 7, 2021, the Commission suspended the filing and instituted 
proceedings to determine whether the proposed rule change should be 
approved or disapproved.\9\ Such action suspended the Exchange's 
ability to offer access to Third Party Systems from Long Term Stock 
Exchange, Members Exchange, MIAX Emerald, MIAX PEARL Equities, Morgan 
Stanley, and TD Ameritrade, and to offer connectivity to Third Party 
Data Feeds from ICE Data Services--ICE TMC, Members Exchange, MIAX 
Emerald, and MIAX PEARL Equities (together, the ``Suspended 
Services'').
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    \9\ See Securities Exchange Act Release No. 91790 (May 7, 2021) 
(SR-NYSE-2021-15, SR-NYSEAMER-2021-13, SR-NYSEArca-2021-15, SR-
NYSECHX-2021-04, SR-NYSENAT-2021-05).
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    On May 12, 2021, the Commission approved for immediate 
effectiveness the Exchange's filing proposing to provide the Suspended 
Services to all Users, at no charge, for a period of 14 days 
(``Transition Period'') through May 24, 2021, to enable current Users 
to maintain their connectivity while establishing alternate 
connectivity.\10\
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    \10\ See Securities Exchange Act Release No. 91862 (May 12, 
2021) (SR-NYSECHX-2021-10).
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    Given that the Transition Period has expired, the Exchange proposes 
to remove the obsolete text regarding this provision. To that end, the 
Exchange proposes to delete the following text:

Connectivity to Suspended Third Party Systems and Suspended Third 
Party Data Feeds

    Connectivity to the Third Party Systems and Third Party Data 
Feeds listed below (``Suspended Services'') is available until May 
24, 2021 (``Transition Period''). During the Transition Period, the 
Exchange will not charge any fees for the Suspended Services. At the 
conclusion of the Transition Period, any remaining customers of 
Suspended Services will have their Suspended Services terminated.

Suspended Third Party Systems
    Long Term Stock Exchange (LTSE)
    Members Exchange (MEMX)
    MIAX Emerald
    MIAX PEARL Equities
    Morgan Stanley
    TD Ameritrade
Suspended Third Party Data Feeds
    ICE Data Services--ICE TMC
    Members Exchange (MEMX)
    MIAX Emerald
    MIAX PEARL Equities
(6) Proposal To Remove LCN Access--1 Gb Circuit
    The Exchange proposes to delete the service ``LCN Access--1 Gb 
Circuit'' from the list of available types of services. The number of 1 
Gb LCN ports purchased by Users has steadily declined from 4 in 2017, 
to 2 in 2018, to 1 in 2021, to zero currently. The Exchange understands 
that this fall-off in demand for the 1 Gb LCN port is due to the fact 
that market data feeds continue to increase in bandwidth, such that 
Users prefer to purchase larger port sizes. Indeed, the last remaining 
User with a 1 Gb LCN port discontinued that port in June 2022 and has 
switched to a 10 Gb LCN port instead. The Exchange believes that there 
is no remaining User demand for the 1 Gb LCN port, and accordingly, the 
Exchange proposes to discontinue the service as obsolete.
Application and Impact of the Proposed Changes
    The Exchange does not expect that the proposed changes would have 
any impact. The proposed changes would not apply differently to 
distinct types or sizes of market participants. Rather, they would 
apply to all Users \11\ equally. As is currently the case, the purchase 
of any colocation service is completely voluntary and the Fee Schedule 
is applied uniformly to all Users.
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    \11\ 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 84 FR 58778, 
supra note 4, at 58778 n.6. 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 Affiliate SROs.
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Competitive Environment
    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 Users 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,\12\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\13\ 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.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that updating the names of existing Third 
Party Services and Third Party Data Feeds and removing obsolete text 
from the Fee Schedule would perfect the mechanisms of a free and open 
market and a national market system and, in general, protect investors 
and the public interest. Updating the names of the Third Party Services 
and Third Party Data Feeds at issue will enhance the clarity and 
transparency of the Fee Schedule and reduce potential customer 
confusion. Removing obsolete references to (i) the

[[Page 45813]]

GIF and its associated fee, (ii) the note regarding the Hot Hands 
service, and (iii) the availability of the Suspended Services would 
make it easier to read, understand, and administer the Fee Schedule, 
enhancing its clarity and transparency and alleviating possible 
customer confusion.
    Similarly, the Exchange believes that discontinuing offering the 1 
Gb LCN connection would perfect the mechanisms of a free and open 
market and a national market system and, in general, protect investors 
and the public interest. Demand for the 1 Gb LCN connection has 
declined in recent years and there are currently no Users that 
subscribe to the service. The Exchange does not expect demand to 
rebound given Users' overall preference for larger port sizes to 
accommodate larger market data feeds. Removing references to the fees 
for this obsolete service from the Price List would make the Price List 
easier to read, understand, and administer.
    The Exchange believes that the proposed rule change does not 
significantly affect the protection of investors or the public 
interest. The proposed rule change would update obsolete product names, 
delete obsolete services, and remove obsolete text from the Fee 
Schedule, in order to enhance transparency and alleviate potential 
customer confusion.
    The Exchange believes that updating the names of existing Third 
Party Systems and Third Party Data Feeds and removing obsolete text 
from the Fee Schedule would not permit unfair discrimination between 
customers, issuers, brokers, or dealers. The proposed changes would 
apply equally to all Users: the names of the existing systems and data 
feeds at issue would be updated and clarified in the Fee Schedule for 
all Users; the obsolete 1 Gb LCN connection would be removed for all 
Users; and obsolete text regarding the GIF, the note to the Hot Hands 
service, and the availability of the Suspended Services would be 
removed from the Fee Schedule as to all Users.
    For these reasons, the Exchange believes that the proposal is 
consistent with the Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\14\ the Exchange 
believes that the proposed rule change will not impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act.
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    \14\ 15 U.S.C. 78f(b)(8).
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    The Exchange believes that the proposed rule change would not place 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed rule change is not 
designed to address any competitive issues but rather is designed to 
enhance the clarity and transparency of the Fee Schedule and alleviate 
possible customer confusion that may arise from the inclusion of 
obsolete services and product names.

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 \15\ and Rule 19b-4(f)(6) thereunder.\16\ 
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.\17\
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    \15\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 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) \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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSECHX-2022-17 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-2022-17. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://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 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSECHX-2022-17 and should be submitted 
on or before August 19, 2022.


[[Page 45814]]


    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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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-16255 Filed 7-28-22; 8:45 am]
BILLING CODE 8011-01-P