[Federal Register Volume 89, Number 98 (Monday, May 20, 2024)]
[Notices]
[Pages 43907-43912]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10962]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-100146; File No. SR-NYSENAT-2024-15]


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

May 14, 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 May 1, 2024, 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 amend the Connectivity Fee Schedule to add 
wireless connectivity services that transport market data to Toronto, 
Canada. The proposed rule change is available on the Exchange's website 
at www.nyse.com, at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the Connectivity Fee Schedule to add 
wireless connectivity services that transport market data to Toronto, 
Canada.
    The Exchange expects that the proposed rule change would become 
operative no later than June 30, 2024. It will announce the proposed 
change to all Fixed Income and Data Services (``FIDS'') customers in 
the TR2 third party data center in Toronto, Canada (``TR2'').
    The Exchange proposes to add market data connections to a selection 
of symbols of the NYSE Integrated Feed (``NYSE IF'') and to a selection 
of symbols of the NYSE Arca Integrated Feed (``NYSE Arca IF'' and 
together with the NYSE IF, the ``Integrated Feeds'') in TR2 (``TR2 
Market Data Connections''). As is true for the existing market data 
connections to the Markham, Canada third party access center (such 
access center, ``Markham'', and such connections, ``Markham Market Data 
Connections''),\4\ the TR2 Market Data Connections would not include 
the Integrated Feeds themselves, just the connections to them.
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    \4\ See Securities Exchange Act Release No. 99972 (April 16, 
2024), 89 FR 29418 (April 22, 2024) (SR-NYSENAT-2024-13).
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    As there would be limited bandwidth available on the wireless 
network to TR2, the Exchange proposes that, as with the Markham Market 
Data

[[Page 43908]]

Connection, the TR2 Market Data Connection would not transport 
information for all the symbols included in the NYSE IF and NYSE Arca 
IF. Rather, FIDS would provide connectivity to the same selection of 
symbols from the Integrated Feeds that it includes in the Markham 
Market Data Connections, which include those symbols for which there is 
demand (the ``Proposed Market Data'').\5\
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    \5\ See id. When a market participant requested a TR2 Market 
Data Connection, it would receive connectivity to the Proposed 
Market Data. The customer would then determine the symbols for which 
it would receive data. The Exchange would not have visibility into 
which portions of the Proposed Market Data a given customer chooses 
to receive.
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    The charges for a TR2 Market Data Connection would be the same as 
for the Markham Market Data Connection: a non-recurring initial charge 
of $5,000 and a $6,500 monthly fee for the service of transporting the 
Proposed Market Data. The proposal would waive the first month's MRC, 
to allow customers to test a new TR2 Market Data Connection for a month 
before incurring any MRC.
    In order to implement the proposed change, the Exchange proposes to 
add the following items to the Connectivity Fee Schedule under ``C. 
Wireless Connectivity to Market Data'':

------------------------------------------------------------------------
              Type of service                     Amount of charge
------------------------------------------------------------------------
NYSE Integrated Feed: Wireless Connection   $5,000 per connection
 in TR2 access center.                       initial charge plus monthly
                                             charge per connection of
                                             $6,500.
NYSE Arca Integrated Feed: Wireless         $5,000 per connection
 Connection in TR2 access center.            initial charge plus monthly
                                             charge per connection of
                                             $6,500.
------------------------------------------------------------------------

    As with the Markham Market Data Connections, the proposed TR2 
Market Data Connections would not utilize the pole on the grounds of 
the MDC.
The Proposed Market Data
    The Integrated Feeds are generated at the MDC in the trading and 
execution systems of the NYSE and NYSE Arca at the Mahwah data center. 
In each case, the NYSE or NYSE Arca, as applicable, files with the 
Commission for the Integrated Feed it generates, and the related 
fees.\6\ The filed market data fees apply to all customers of the 
Integrated Feeds, no matter what form of connectivity or connectivity 
provider they use.
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    \6\ See Securities Exchange Act Release Nos. 74128 (January 23, 
2015), 80 FR 4951 (January 29, 2015) (SR-NYSE-2015-03) (notice of 
filing and immediate effectiveness of proposed rule change 
establishing the NYSE Integrated Feed data feed); 76485 (November 
20, 2015), 80 FR 74158 (November 27, 2015) (SR-NYSE-2015-57) (notice 
of filing and immediate effectiveness of a proposed rule change 
establishing fees for the NYSE Integrated Feed); 65669 (November 2, 
2011), 76 FR 69311 (November 8, 2011) (SR-NYSEArca-2011-78) (notice 
of filing and immediate effectiveness of proposed rule change 
offering the NYSE Arca Integrated Feed); and 66128 (January 10, 
2012), 77 FR 2331 (January 17, 2012) (SR-NYSEArca-2011-96) (notice 
of filing and immediate effectiveness of a proposed rule change 
establishing fees for NYSE Arca Integrated Feed).
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    When a market participant wants to connect to an Integrated Feed, 
it requests a connection from the provider of its choice. All 
providers, including FIDS, may only provide the market participant with 
connectivity once the provider has received confirmation from the NYSE 
or NYSE Arca, as applicable, that the market participant is authorized 
to receive the requested data feed.
Application and Impact of the Proposed Change
    The proposed change would apply to all customers equally. The 
proposed change would not apply differently to distinct types or sizes 
of market participants. As is currently the case, the purchase of any 
connectivity service is completely voluntary and the Connectivity Fee 
Schedule is applied uniformly to all customers.
    FIDS expects few new customers in TR2.
Competitive Environment
    The Exchange operates in a highly competitive market in which other 
vendors offer connectivity services as a means to facilitate the 
trading and other market activities of those market participants who 
believe that it enhances the efficiency of their operations. The 
Commission has repeatedly expressed its preference for competition over 
regulatory intervention in determining prices, products, and services 
in the securities markets. Specifically, in Regulation NMS, the 
Commission highlighted the importance of market forces in determining 
prices and SRO revenues and, also, recognized that current regulation 
of the market system ``has been remarkably successful in promoting 
market competition in its broader forms that are most important to 
investors and listed companies.'' \7\
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    \7\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496, 37499 (June 29, 2005).
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    A third party has announced that it plans to create a wireless 
connection between Markham and the MDC. The Exchange believes it 
intends to expand its offering to connect to the TR2. Such a wireless 
connection would compete with the Exchange's TR2 Market Data 
Connection, as customers could use the third-party wireless connection 
to transport the Proposed Market Data. Third-party vendors are not at 
any competitive disadvantage created by the Exchange.
    The proposed change is not otherwise intended to address any other 
issues relating to colocation services or related fees, and the 
Exchange is not aware of any problems that market participants would 
have in complying with the proposed change.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\8\ in general, and furthers the 
objectives of section 6(b)(5) of the Act,\9\ in particular, because it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to, and 
perfect the mechanisms of, a free and open market and a national market 
system and, in general, to protect investors and the public interest 
and does not unfairly discriminate between customers, issuers, brokers, 
or dealers. The Exchange further believes that the proposed rule change 
is consistent with section 6(b)(4) of the Act,\10\ because it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among its members and issuers and other persons using its 
facilities and does not unfairly discriminate between customers, 
issuers, brokers, or dealers.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ 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. 
In considering the reasonableness of proposed services and fees, the 
Commission's market-based test considers ``whether the exchange was 
subject to significant competitive forces in setting the terms of its 
proposal . . . , including the level of any fees.'' \11\ If the 
Exchange meets that

[[Page 43909]]

burden, ``the Commission will find that its proposal is consistent with 
the Act unless `there is a substantial countervailing basis to find 
that the terms' of the proposal violate the Act or the rules 
thereunder.'' \12\ Here, the Exchange is subject to significant 
competitive forces in setting the terms on which it offers its 
proposal, in particular because substantially similar substitutes are 
available, and the Exchange has not placed the third party vendors at a 
competitive disadvantage created by the Exchange.
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    \11\ See Securities Exchange Act Release No. 90209 (October 15, 
2020), 85 FR 67044, 67049 (October 21, 2020) (SR-NYSE-2020-05, SR-
NYSEAMER-2020-05, SR-NYSEARCA-2020-08, SR-NYSECHX-2020-02, SR-
NYSENAT-2020-03, SR-NYSE-2020-11, SR-NYSEAMER-2020-10, SR-NYSEArca-
2020-15, SR-NYSECHX-2020-05, SR-NYSENAT-2020-08) (Order Granting 
Accelerated Approval to Establish a Wireless Fee Schedule Setting 
Forth Available Wireless Bandwidth Connections and Wireless Market 
Data Connections) (``Wireless Approval Order''), citing Securities 
Exchange Act Release No. 59039 (December 2, 2008), 73 FR 74770, 
74781 (December 9, 2008) (``2008 ArcaBook Approval Order''). See 
NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \12\ See Wireless Approval Order, supra note 11, at 67049, 
citing 2008 ArcaBook Approval Order, supra note 11, at 74781.
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    For the first time, a customer would be able to connect to the 
Proposed Market Data at TR2, increasing the options available to it. 
Without this proposed rule change, any market participants in TR2 would 
not have access to the Proposed Market Data.
    The Exchange believes that it is reasonable to charge the same 
amount for the TR2 Market Data Connection as for the Markham Market 
Data Connection, as the same market data would be transported over both 
connections. Given the limitation on bandwidth, the Exchange believes 
that it is reasonable not to transport information for all the symbols 
included in the Integrated Feeds to TR2, but rather that the Proposed 
Market Data include a subset of that data.
    The Exchange offers wireless bandwidth connections, without 
connectivity to market data, between the Mahwah data center and Markham 
and TR2. It does not charge separately for the Markham and TR2 
connections, as ``the Exchange believes that it is reasonable to view 
the . . . service as one service, and not two.'' \13\ This is because 
northbound, the same data, put on the connection by the customer, is 
delivered to both Markham and TR2, while southbound, the customer may 
choose the Mb of data it sends from each Canadian data center, but the 
combined total must equal no more than the total Mb of the wireless 
circuit.\14\
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    \13\ Securities Act Release No. 99519 (February 12, 2024), 89 FR 
12394 (February 16, 2024) (SR-NYSENAT-2024-02), at 12397.
    \14\ See Connectivity Fee Schedule--B. Wireless Connectivity--
Wireless Connectivity Note.
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    By contrast, in the present case, the Exchange believes that it is 
reasonable to charge for the TR2 Market Data Connection separately from 
the Markham Market Data Connection. First, the customers would be 
located in Canada and need not have a presence in the Mahwah data 
center, and charging for the TR2 Market Data Connection separately from 
the Markham Market Data Connection reflects that usage of the 
Integrated Feed serves a different purpose at each location, and is 
consistent with the NYSE Wireless Order regarding wireless market data 
connections. Second, the nature of the services is different: the 
present connectivity would not be to a wireless bandwidth on which the 
customer can put data, irrespective of whether the data is northbound 
or southbound. Rather, the TR2 Market Data Connection would be limited 
to connectivity to the Integrated Feeds. Accordingly, the Exchange 
believes that the Markham and TR2 services are two services.\15\
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    \15\ The Exchange believes that this would be consistent with 
its existing approach to wireless connectivity. See Wireless 
Approval Order, supra note 11, Connectivity Fee Schedule--B. 
Wireless Connectivity, and Connectivity Fee Schedule--C. Wireless 
Connectivity to Market Data.
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The Exchange Would Not Preclude Other Connections to Proposed Market 
Data in TR2
    The Exchange is not aware of any other public, commercially 
available wireless or fiber connections to the Proposed Market Data 
between the MDC and TR2.
    Additional third party competitors could offer fiber or wireless 
connectivity to the Proposed Market Data in TR2 by obtaining the market 
data at the MDC and sending it over a fiber or wireless network to 
Canada. A market participant in TR2 also may create a proprietary 
market data connection, whether fiber or wireless; connect through 
another market participant; utilize fiber connections offered by third 
parties; or utilize fiber connections offered by FIDS. The Exchange 
could not impose any impediments to a third party seeking to offer a 
similar service, including by placing them at a latency or other 
competitive disadvantage with respect to the Exchange. Indeed, as noted 
above, the Exchange believes that in the future a third party may offer 
a wireless connection to TR2, which would compete with the TR2 Market 
Data Connection, as customers could use the third-party wireless 
connection to transport the Proposed Market Data.
    Wireless connections and fiber connections to the Proposed Market 
Data in Markham would compete with each other. Given the various 
advantages and disadvantages of both wireless and fiber connections, a 
market participant interested in purchasing a connection to the 
Proposed Market Data in Markham is likely to consider a variety of 
factors in deciding whether to use a wireless versus fiber connection, 
including latency; the amount of network uptime; the equipment the 
network uses; the cost of the connection; and the applicable 
contractual provisions. Indeed, fiber network connections may be more 
attractive to some market participants as they are more reliable and 
less susceptible to weather conditions.
Third Party Competitors Would Not Be at a Competitive Disadvantage 
Created by the Exchange
    The Exchange does not believe that FIDS would have any competitive 
advantage over any future providers of connectivity to the Proposed 
Market Data in TR2. The Exchange's proposed service for connectivity to 
Proposed Market Data in TR2 does not have any special access to or 
advantage within the MDC. The Integrated Feeds are generated at the MDC 
in the trading and execution systems of the NYSE and NYSE Arca. FIDS 
would collect the Proposed Market Data, then send it over the TR2 
Market Data Connection by connecting to equipment in a MDC meet-me-room 
and from there to a pole. The pole is owned by a third party and is not 
on the grounds of the MDC, and the path into the MDC through a meet-me-
room is available to any telecommunications provider. Further, all 
distances in the MDC are normalized.
    Nor would the Exchange have a competitive advantage over third-
party competitors offering wireless connectivity to the Proposed Market 
Data in TR2 by virtue of the fact that it owns and operates the MDC's 
meet-me-rooms. Third parties purchasing wireless connectivity to the 
Proposed Market Data would require a circuit connecting out of the MDC, 
and in most cases, such circuits are provided by third-party 
telecommunications service providers that have installed their 
equipment in the MDC's two meet-me-rooms (``Telecoms''). Currently, 16 
Telecoms operate in the meet-me-rooms and provide a variety of circuit 
choices. It is in the Exchange's best interest to set the fees that 
Telecoms pay to operate in the meet-me-rooms at a reasonable level \16\ 
so that market participants, including Telecoms, will maximize their 
use of the MDC. By setting the meet-me-room fees at a reasonable level, 
the Exchange encourages Telecoms to participate in the meet-me-rooms 
and to

[[Page 43910]]

sell circuits to Users \17\ for connecting into and out of the MDC. 
These Telecoms then compete with each other by pricing such circuits at 
competitive rates. These competitive rates for circuits help draw in 
more Users and Hosted Customers \18\ to the MDC, which directly 
benefits the Exchange by increasing the customer base to whom the 
Exchange can sell its colocation services, which include cabinets, 
power, ports, and connectivity to many third-party data feeds, and 
because having more Users and Hosted Customers leads, in many cases, to 
greater participation on the Exchange. In this way, by setting the 
meet-me-room fees at a level attractive to telecommunications firms, 
the Exchange spurs demand for all of the services it sells at the 
MDC.\19\
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    \16\ See Securities Exchange Act Release No. 98002 (July 26, 
2023), 88 FR 50232 (August 1, 2023) (SR-NYSENat-2023-12) (``MMR 
Notice'').
    \17\ ``User'' means any market participant that requests to 
receive co-location services directly from the Exchange.
    \18\ A User may host another entity in its space within the MDC. 
Such Users are called ``Hosting Users'' and their customers are 
referred to as ``Hosted Customers.'' See Securities Exchange Act 
Release No. 83351 (May 31, 2018), 83 FR 26314 (June 6, 2018) (SR-
NYSENAT-2018-07).
    \19\ See MMR Notice, supra note 16.
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    If anything, the Exchange would be subject to a competitive 
disadvantage vis-[agrave]-vis third party competitors offering wireless 
or fiber connectivity to the Proposed Market Data in TR2. Third-party 
competitors would not be subject to the Commission's filing 
requirements, and therefore could freely change their services and 
pricing in response to competitive forces. In contrast, the Exchange's 
service and pricing would be standardized as set out in this filing, 
and the Exchange would be unable to respond to pricing pressure from 
its competitors without seeking a formal fee change in a filing before 
the Commission.
    In sum, because the Exchange could not impose any impediments to a 
third party seeking to offer a similar service, including by placing 
them at a latency or other competitive disadvantage with respect to the 
Exchange the proposed fees for the TR2 Market Data Connection are 
reasonable.\20\
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    \20\ See Wireless Approval Order, supra note 11.
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    The Exchange believes that the proposed rule change is reasonable 
because a market participant in the Canadian data center that opted for 
a TR2 Market Data Connection would be able to select the specific 
Proposed Market Data feed that it wanted to receive in accordance with 
its needs, thereby helping it tailor its operations to the requirements 
of its business operations.
The Proposed Change Is an Equitable Allocation of Fees and Credits
    The Exchange believes that its proposal equitably allocates its 
fees among market participants.
    The Exchange believes that it is equitable to make wireless 
connectivity to the Proposed Market Data available at TR2. For the 
first time, a customer would be able to connect to the Proposed Market 
Data at TR2, increasing the options available to it. Without this 
proposed rule change, any market participants in TR2 would not have 
access to the Proposed Market Data.
    The Exchange believes that it is equitable to charge the same 
amount for the TR2 Market Data Connection as for the Markham Market 
Data Connection, as the same market data would be transported over both 
connections. Given the limitation on bandwidth, the Exchange believes 
that it is equitable not to transport information for all the symbols 
included in the Integrated Feeds to TR2, but rather that the Proposed 
Market Data include a subset of that data.
    Additional third party competitors could offer fiber or wireless 
connectivity to the Proposed Market Data in TR2 by obtaining the market 
data at the MDC and sending it over a fiber or wireless network to 
Canada. A market participant in TR2 also may create a proprietary 
market data connection, whether fiber or wireless; connect through 
another market participant; utilize fiber connections offered by third 
parties; or utilize fiber connections offered by FIDS. The Exchange 
could not impose any impediments to a third party seeking to offer a 
similar service, including by placing them at a latency or other 
competitive disadvantage with respect to the Exchange. Indeed, as noted 
above, the Exchange believes that in the future a third party may offer 
a wireless connection to TR2, which would compete with the TR2 Market 
Data Connection, as customers could use the third-party wireless 
connection to transport the Proposed Market Data.
    The Exchange believes that the proposed change is equitable because 
it will result in fees being charged only to market participants that 
voluntarily select to receive the corresponding services and because 
those services will be available to all market participants. 
Furthermore, the Exchange believes that the services and fees proposed 
herein are equitably allocated because, in addition to the services 
being completely voluntary, they are available to all market 
participants on an equal basis (i.e., the same products and services 
are available to all market participants). All market participants that 
voluntarily select a TR2 Market Data Connection would be charged the 
same amount for the same services.
The Proposed Change Is Not Unfairly Discriminatory
    The Exchange believes that the proposed rule change is not unfairly 
discriminatory, for the following reasons.
    The Exchange believes that it is not unfairly discriminatory to 
make wireless connectivity to the Proposed Market Data available at 
TR2. For the first time, a customer would be able to connect to the 
Proposed Market Data at TR2, increasing the options available to it. 
Without this proposed rule change, any market participants in TR2 would 
not have access to the Proposed Market Data.
    The Exchange believes that it is not unfairly discriminatory to 
charge the same amount for the TR2 Market Data Connection as for the 
Markham Market Data Connection, as the same market data would be 
transported over both connections. Given the limitation on bandwidth, 
the Exchange believes that it is not unfairly discriminatory not to 
transport information for all the symbols included in the Integrated 
Feeds to TR2, but rather that the Proposed Market Data include a subset 
of that data.
    The Exchange believes that the proposed change is not unfairly 
discriminatory because it will result in fees being charged only to 
market participants that voluntarily select to receive the 
corresponding services and because those services will be available to 
all market participants. Furthermore, the Exchange believes that the 
services and fees proposed herein are not unfairly discriminatory 
because, in addition to the services being completely voluntary, they 
are available to all market participants on an equal basis (i.e., the 
same products and services are available to all market participants). 
All market participants that voluntarily select a TR2 Market Data 
Connection would be charged the same amount for the same services.
    For these reasons, the Exchange believes that the proposal is 
consistent with the Act.

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

    The proposed rule changes will not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
section 6(b)(8) of the Act.\21\
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    \21\ 15 U.S.C. 78f(b)(8).

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[[Page 43911]]

    The Exchange believes that it would not impose a burden on 
competition that is not necessary or appropriate to expand the 
connectivity options to make wireless connectivity to the Proposed 
Market Data available at TR2. For the first time, a customer would be 
able to connect to the Proposed Market Data at TR2, increasing the 
options available to it. Without this proposed rule change, any market 
participants in TR2 would not have access to the Proposed Market Data.
    The Exchange believes that it would not impose a burden on 
competition that is not necessary or appropriate to charge the same 
amount for the TR2 Market Data Connection as for the Markham Market 
Data Connection, as the same market data would be transported over both 
connections. Given the limitation on bandwidth, the Exchange believes 
that it is reasonable not to transport information for all the symbols 
included in the Integrated Feeds to TR2, but rather that the Proposed 
Market Data include a subset of that data.
    Additional third party competitors could offer fiber or wireless 
connectivity to the Proposed Market Data in TR2 by obtaining the market 
data at the MDC and sending it over a fiber or wireless network to 
Canada. A market participant in Markham or TR2 also may create a 
proprietary market data connection, whether fiber or wireless; connect 
through another market participant; utilize fiber connections offered 
by third parties; or utilize fiber connections offered by FIDS. The 
Exchange could not impose any impediments to a third party seeking to 
offer a similar service, including by placing them at a latency or 
other competitive disadvantage with respect to the Exchange.
    The Exchange does not believe that FIDS would have any competitive 
advantage over any future providers of connectivity to the Proposed 
Market Data in TR2. The Exchange's proposed service for connectivity to 
Proposed Market Data in TR2 does not have any special access to or 
advantage within the MDC. The Integrated Feeds are generated at the MDC 
in the trading and execution systems of the NYSE and NYSE Arca. FIDS 
would collect the Proposed Market Data, then send it over the TR2 
Market Data Connection by connecting to equipment in a MDC meet-me-room 
and from there to a pole. The pole is owned by a third party and is not 
on the grounds of the MDC, and the path into the MDC through a meet-me-
room is available to any telecommunications provider. Further, all 
distances in the MDC are normalized.
    Because the Exchange could not impose any impediments to a third 
party seeking to offer a similar service, including by placing them at 
a latency or other competitive disadvantage with respect to the 
Exchange, the Exchange believes that it would not impose a burden on 
competition that is not necessary or appropriate to expand the 
connectivity options to make wireless connectivity to the Proposed 
Market Data available at TR2.
    Nor does the Exchange have a competitive advantage over any future 
third-party competitors offering wireless or fiber connectivity to the 
Proposed Market Data in TR2 by virtue of the fact that it owns and 
operates the MDC's meet-me-rooms. Third parties purchasing wireless 
connectivity to the Proposed Market Data would require a circuit 
connecting out of the MDC, and in most cases, such circuits are 
provided by third-party Telecoms. Currently, 16 Telecoms operate in the 
meet-me-rooms and provide a variety of circuit choices. It is in the 
Exchange's best interest to set the fees that Telecoms pay to operate 
in the meet-me-rooms at a reasonable level \22\ so that market 
participants, including Telecoms, will maximize their use of the MDC. 
By setting the meet-me-room fees at a reasonable level, the Exchange 
encourages Telecoms to participate in the meet-me-rooms and to sell 
circuits to Users for connecting into and out of the MDC. These 
Telecoms then compete with each other by pricing such circuits at 
competitive rates. These competitive rates for circuits help draw in 
more Users and Hosted Customers to the MDC, which directly benefits the 
Exchange by increasing the customer base to whom the Exchange can sell 
its colocation services, which include cabinets, power, ports, and 
connectivity to many third-party data feeds, and because having more 
Users and Hosted Customers leads, in many cases, to greater 
participation on the Exchange. In this way, by setting the meet-me-room 
fees at a level attractive to telecommunications firms, the Exchange 
spurs demand for all of the services it sells at the MDC.\23\
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    \22\ See MMR Notice, supra note 16.
    \23\ See id.
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    For the reasons described above, the Exchange believes that the 
proposed rule changes reflect this competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to section 
19(b)(3)(A)(iii) of the Act \24\ and Rule 19b-4(f)(6) thereunder.\25\ 
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.\26\
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    \24\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \25\ 17 CFR 240.19b-4(f)(6).
    \26\ 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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    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) \27\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \27\ 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

[[Page 43912]]

     Send an email to [email protected]. Please include 
file number
    SR-NYSENAT-2024-15 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-2024-15. 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-2024-15 and should 
be submitted on or before June 10, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\28\
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    \28\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-10962 Filed 5-17-24; 8:45 am]
BILLING CODE 8011-01-P