[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'':
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Type of service Amount of charge
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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.
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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