[Federal Register Volume 87, Number 176 (Tuesday, September 13, 2022)]
[Notices]
[Pages 56107-56109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19686]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95697; File No. SR-NYSECHX-2022-20]


Self-Regulatory Organizations; NYSE Chicago, 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 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 (1) transfer the services and fees related 
to colocation from its 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 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 (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 National, 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 
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-NYSENAT-2022-16.
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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 ``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 ``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

[[Page 56108]]

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. 87408 (October 28, 
2019), 84 FR 58778 at n.6 (November 1, 2019) (SR-NYSECHX-2019-12).
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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 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,

[[Page 56109]]

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-NYSECHX-2022-20 on the subject line.

Paper Comments

     Send paper comments in triplicate to: Secretary, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549-1090.

All submissions should refer to File Number SR-NYSECHX-2022-20. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (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-2022-20 and should be submitted 
on or before October 4, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-19686 Filed 9-12-22; 8:45 am]
BILLING CODE 8011-01-P