[Federal Register Volume 87, Number 176 (Tuesday, September 13, 2022)]
[Notices]
[Pages 56145-56147]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19685]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95696; File No. SR-NYSENAT-2022-16]
Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Transfer
the Services and Fees Related to Colocation
September 7, 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 August 24, 2022, NYSE National, Inc. (``NYSE National'' 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 (1) transfer the services and fees related
to colocation from its Schedule of Fees and Rebates (``Fee Schedule'')
to the schedule of Wireless Connectivity Fees and Charges, and (2)
change the name of the schedule of Wireless Connectivity Fees and
Charges to the ``Connectivity Fee Schedule.'' The proposed 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 (1) transfer the services and fees related
to colocation from the Fee Schedule to the schedule of Wireless
Connectivity Fees and Charges (``Connectivity Fee Schedule''), and (2)
change the name of the schedule of Wireless Connectivity Fees and
Charges to the ``Connectivity Fee Schedule.'' There would be no changes
to the existing colocation services and fees as a result of these
administrative changes.
Background
The colocation services and related fees offered by the Exchange
are currently listed in the Exchange's Fee Schedule. Each of the
Exchange's Affiliate SROs \4\ similarly includes the colocation
services and related fees in its own separate price list or fee
schedule.\5\ The colocation portions of each of these price lists and
fee schedules are substantively identical.
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\4\ The ``Affiliate SROs'' are the Exchange's affiliates New
York Stock Exchange LLC, NYSE American LLC, NYSE Arca, Inc., and
NYSE Chicago, Inc.
\5\ See ``Co-Location Fees'' in ``New York Stock Exchange Price
List 2022'' at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf; ``NYSE American Equities Price List'' at
https://www.nyse.com/publicdocs/nyse/markets/nyse-american/NYSE_America_Equities_Price_List.pdf; ``NYSE American Options Fee
Schedule'' at https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf; ``NYSE Arca Equities
Fees and Charges'' at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf; ``NYSE Arca Options Fees
and Charges'' at https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf; ``Fee Schedule of NYSE
Chicago, Inc.'' at https://www.nyse.com/publicdocs/nyse/NYSE_Chicago_Fee_Schedule.pdf; and ``NYSE National, Inc. Schedule of
Fees and Rebates'' at https://www.nyse.com/publicdocs/nyse/regulation/nyse/NYSE_National_Schedule_of_Fees.pdf.
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In December 2020, the Exchange and the Affiliate SROs created the
Connectivity Fee Schedule to list their wireless connectivity services
and related fees. Instead of including the wireless connectivity
services and related fees in the seven price lists and fee schedules of
the Exchange and the Affiliate SROs, the Connectivity Fee Schedule
contains the wireless connectivity services and charges for the
[[Page 56146]]
Exchange and the Affiliate SROs in one single fee schedule.
In an administrative change, the Exchange now proposes to remove
its colocation services and related fees from its Fee Schedule and to
move them into the Connectivity Fee Schedule, so that services and fees
related to connectivity within, into and from the Mahwah Data Center
would appear in the same Connectivity Fee Schedule. Each of the
Affiliate SROs is contemporaneously making a similar filing.\6\ To
reflect the fact that the schedule would include services and fees for
connectivity with the Mahwah Data Center that are not wireless, the
Exchange also proposes to change its name to the ``Connectivity Fee
Schedule.''
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\6\ Each of the Affiliate SROs has submitted substantially
similar rule changes to move their colocation price lists to the
Connectivity Fee Schedule. See SR-NYSE-2022-40, SR-NYSEAMER-2022-37,
SR-NYSEARCA-2022-56, and SR-NYSECHX-2022-20.
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Proposed Amendments to the Fee Schedule
As shown in the attached Exhibit 5A [sic], the Exchange proposes to
delete the entirety of the text in the Exchange's Fee Schedule under
the heading ``VI. Co-Location Fees.''
Proposed Amendments to the Connectivity Fee Schedule
As shown in the attached Exhibit 5B [sic], the Exchange proposes to
amend the title to the ``Connectivity Fee Schedule.''
The Exchange proposes to insert the entirety of the text currently
located in the Exchange's Fee Schedule under the heading ``VI. Co-
Location Fees'' into the Connectivity Fee Schedule under the heading
``A. Colocation Fees.'' No changes would be made to any of this text,
except for the following clarifying and non-substantive changes:
1. The subheading ``Definitions'' would be amended to ``Colocation
Definitions.''
2. The subheading ``General Notes'' would be amended to
``Colocation Notes'' and current General Note 1 would be deleted, as it
would no longer be necessary since it would be duplicative of the
existing General Note in the Connectivity Fee Schedule. The remainder
of the current General Notes 2-8 would be renumbered as Colocation
Notes 1-7 and the cross references in current General Note 8 would be
updated accordingly.
3. In a conforming change, in the table of services and fees, the
note to the Partial Cabinet Solution bundles would be amended to change
the cross reference from ``Note 2 under `General Notes' '' to ``Note 1
under `Colocation Notes.' ''
4. In a conforming change, in the table of services and fees, the
note to the Data Center Fiber Cross Connect would be amended to change
the cross reference from ``General Note 3'' to ``Colocation Note 2.''
5. With the addition of the Colocation Fees at subheading ``A.'' of
the Connectivity Fee Schedule, each of the subsequent headings would be
renumbered accordingly. Specifically, ``A. Wireless Connectivity''
would become ``B. Wireless Connectivity,'' and ``B. Wireless
Connectivity to Market Data'' would become ``C. Wireless Connectivity
to Market Data.''
Application and Impact of the Proposed Changes
As noted above, the proposed change is administrative in nature.
Any market participant that requests to receive colocation services
directly from the Exchange (a ``User'') \7\ is currently subject to the
described services and fees, none of which are new or novel. Current
Users would not incur any new fees and the Exchange does not expect to
attract any new Users as a result of the proposed change. Rather, the
change would simply move the description of the existing colocation
services and fees to the Connectivity Fee Schedule and change its title
accordingly.
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\7\ See Securities Exchange Act Release No. 83351 (May 31,
2018), 83 FR 26314 at n.9 (June 6, 2018) (SR-NYSENAT-2018-07).
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As a result of the proposed change, the services and fees related
to connectivity within, into, and from the Mahwah Data Center,
including colocation, would appear in the same Connectivity Fee
Schedule, and market participants would be able to see all such
connectivity services and fees in one place.
The proposed change is not targeted at, or expected to be limited
in applicability to, a specific segment of market participant, as
colocation is available to any market participant that wishes to be a
User.
The proposed changes are not otherwise intended to address any
other issues, and the Exchange is not aware of any problems that member
organizations 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 with Section 6(b)(1)
\9\ in particular, in that it enables the Exchange to be so organized
as to have the capacity to be able to carry out the purposes of the
Exchange Act and to comply, and to enforce compliance by its exchange
members and persons associated with its exchange members, with the
provisions of the Exchange Act, the rules and regulations thereunder,
and the rules of the Exchange. The Exchange also believes that the
proposed change furthers the objectives of Section 6(b)(5) of the Act
\10\ 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 because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(1).
\10\ 15 U.S.C. 78f(b)(5).
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The proposed rule change is a non-substantive change and does not
impact the services available to Users or the fees charged for such
services. Currently, colocation services and the related fees for the
Exchange and its Affiliate SROs are substantively identical yet are
located in seven separate price lists and fee schedules and not in the
Connectivity Fee Schedule. The Exchange believes that the proposed rule
change would enable the Exchange to continue to be so organized as to
have the capacity to carry out the purposes of the Exchange Act and
comply and enforce compliance with the provisions of the Exchange Act
by its members and persons associated with its members, because moving
the description of the existing colocation services and fees to the
Connectivity Fee Schedule and changing the Connectivity Fee Schedule's
title would mean that the services and fees related to connectivity
within, into, and from the Mahwah Data Center, including colocation,
would appear in one Connectivity Fee Schedule. All market participants
would be able to enjoy the convenience of seeing such connectivity
services and fees in one place, alleviating any possible market
participant confusion that could currently arise from having to consult
more than one document. Making the change would therefore contribute to
the orderly operation of the Exchange by adding clarity and
transparency regarding what connectivity is offered
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within, into, and from the Mahwah Data Center.
The Exchange believes that the proposed change 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 because moving the colocation services and charges from
the Exchange's Fee Schedule to the Connectivity Fee Schedule would more
accurately reflect the fact that Users are not required to be members
of the Exchange or of any of the Affiliate SROs. A User, like any
market participant, could more easily navigate, understand, and comply
with the list of colocation services and fees, without having to access
the price list or fee schedule of an exchange of which it is not a
member. The Exchange believes that the proposed change would thereby
reduce potential investor or market participant confusion. Similarly,
the Exchange believes that the proposed change would reduce potential
investor or market participant confusion because market participants
would be able to see all connectivity services and fees in one place,
alleviating any possible market participant confusion that could
currently arise from having to consult more than one document.
For the reasons above, the proposed changes do not unfairly
discriminate between or among market participants that are otherwise
capable of satisfying any applicable colocation 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
In accordance with Section 6(b)(8) of the Act,\11\ 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 because it is ministerial in nature and is not
designed to have any competitive impact. Rather, the change would
simply move the description of the existing colocation services and
fees to the Connectivity Fee Schedule and change its title. As a result
of the proposed rule change, the services and fees related to
connectivity within, into, and from the Mahwah Data Center would appear
in the same Connectivity Fee Schedule. All market participants would be
able to see the connectivity services and fees within, into, and from
the Mahwah Data Center in one place, alleviating any possible market
participant confusion.
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\11\ 15 U.S.C. 78f(b)(8).
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For the reasons described above, the Exchange believes that the
proposed rule change reflects 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 proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(3) \13\ thereunder in
that the proposed rule change is concerned solely with the
administration of the Exchange.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(3).
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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) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 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-NYSENAT-2022-16 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-NYSENAT-2022-16. 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 (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-NYSENAT-2022-16 and should be submitted
on or before October 4, 2022.
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\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-19685 Filed 9-12-22; 8:45 am]
BILLING CODE 8011-01-P