[Federal Register Volume 89, Number 108 (Tuesday, June 4, 2024)]
[Notices]
[Pages 48014-48016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12141]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-100242; File No. SR-NYSECHX-2024-19]


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

May 29, 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 17, 2024, the NYSE Chicago, Inc. (``NYSE Chicago'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Connectivity Fee Schedule (``Fee 
Schedule'') to make clarifying changes with respect to the wireless 
connections to third party data in co-location. The proposed rule 
change is available on the Exchange's website at www.nyse.com, at the 
principal office of the Exchange, and

[[Page 48015]]

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 Fee Schedule to make clarifying 
changes with respect to the wireless connections to third party data in 
co-location.
    The Exchange currently provides Users \4\ with wireless connections 
to ten market data feeds or combinations of feeds from third-party 
markets (the ``Existing Third Party Data'').\5\
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    \4\ For purposes of the Exchange's colocation services, a 
``User'' means any market participant that requests to receive 
colocation services directly from the Exchange. See Securities 
Exchange Act Release No. 87408 (October 28, 2019), 84 FR 58778 at 
n.6 (November 1, 2019) (SR-NYSECHX-2019-12). As specified in the Fee 
Schedule, a User that incurs colocation fees for a particular 
colocation service pursuant thereto would not be subject to 
colocation fees for the same colocation service charged by the 
Exchange's affiliates the New York Stock Exchange LLC, NYSE American 
LLC, NYSE Arca, Inc., and NYSE National, Inc. (together, the 
``Affiliate SROs''). Each Affiliate SRO has submitted substantially 
the same proposed rule change to propose the changes described 
herein. See SR-NYSE-2024-31, SR-NYSEAMER-2024-33, SR-NYSEARCA-2024-
42, and SR-NYSENAT-2024-16.
    \5\ See Securities Exchange Act Release No. 99809 (March 20, 
2024), 89 FR 21158 (March 26, 2024) (SR-NYSECHX-2024-11).
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    The Exchange recently filed to provide wireless connection to MEMX 
Memoir Depth market data feed (``MEMX Data''), noting that the wireless 
connection to MEMX Data would lead to the data center pole.\6\ For all 
the Existing Third Party Data that leads to that pole,\7\ the monthly 
charge for wireless connections is subject to a 30-day testing period, 
during which the monthly charge per connection would be waived. 
Consistent with that fact, the Exchange proposes to amend the Fee 
Schedule to clarify that this provision is applicable to wireless 
connections to MEMX Data.
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    \6\ See id.
    \7\ See 84 FR 58778, supra note 3, at 58784-85.
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    In addition, the Exchange proposes to make the following non-
substantive changes to the Fee Schedule:
     Move the existing service for a wireless connection of 
NASDAQ BX-Totalview-ITCH data to place the wireless connections in 
alphabetical order.
     To conform to the corporate branding of Nasdaq, amend 
``NASDAQ'' to ``Nasdaq'' and delete ``OMX'' and ``Ultra'' throughout 
the Fee Schedule.\8\
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    \8\ See Securities Exchange Act Release No. 801917 (October 23, 
2017), 82 FR 49879 (October 27, 2017) (SR-NASDAQ-2017-111). See also 
https://www.nasdaq.com/solutions/nasdaq-canada, and https://www.nasdaq.com/solutions/nasdaq-ise.
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     To conform to Nasdaq's usage of the term, amend 
``Totalview'' to ``TotalView'' in the Existing Third Party Services.\9\
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    \9\ See https://www.nasdaqtrader.com/Trader.aspx?id=DPUSdata.
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    These changes are typographical in nature and are not intended to 
change the substance or meaning of the Fee Schedule.
    The proposed changes would not apply differently to distinct types 
or sizes of market participants. Rather, they would apply to all Users 
equally. As is currently the case, the purchase of any colocation 
service is completely voluntary and the Fee Schedule is applied 
uniformly to all Users.
    The Exchange does not believe that it would obtain any new 
customers due to the proposed change.
    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 Users would have in 
complying with the proposed change.
Timing and Implementation
    The proposed change to the Fee Schedule to clarify the provisions 
regarding the MEMX Memoir Depth market feed would become operative when 
the wireless connection to MEMX Memoir Depth market data feed becomes 
operative. The Exchange expects that to be no later than the third 
quarter of 2024.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\10\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\11\ in particular, because it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest 
and because it is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers. The Exchange further believes 
that the proposed rule change is consistent with Section 6(b)(4) of the 
Act,\12\ 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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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
    \12\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the proposed changes would remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general, protect investors and the 
public interest. With respect to the wireless connection to MEMX Memoir 
Depth data, the proposed change simply would clarify that the terms on 
which it is offered are the same as those of the Existing Third Party 
Data feeds that also connect to the data center pole. With respect to 
the other changes, putting the existing services in alphabetical order 
and conforming the descriptions to Nasdaq's usage would make the Fee 
Schedule easier to read, understand, and administer, alleviating any 
possible market participant confusion.
    The Exchange believes that its proposed rule change provides for 
the equitable allocation of reasonable dues, fees, and other charges 
among its members, issuers, and other persons using its facilities and 
does not unfairly discriminate between customers, issuers, brokers, or 
dealers. The proposed rule change would clarify that the terms under 
which the wireless connection to the MEMX Memoir Depth data is offered 
are the same as those of the Existing Third Party Data feeds that also 
connect to the data center pole. With respect to the other changes, 
putting the existing services in alphabetical order and conforming the 
descriptions to Nasdaq's usage would make the Fee Schedule easier to 
read, understand, and administer, alleviating any possible market 
participant confusion. The proposed changes would not alter any of the 
fees charged.

[[Page 48016]]

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

    The Exchange believes that the proposal 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.\13\
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    \13\ 15 U.S.C. 78f(b)(8).
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    The proposed change would not affect competition among national 
securities exchanges or among members of the Exchange. The proposed 
rule change is not designed to address any competitive issues but 
rather to enhance the clarity and transparency of the Fee Schedule and 
alleviate possible customer confusion that may arise. The proposed rule 
change would have no impact on pricing or existing services. Rather, 
the changes would clarify the Fee Schedule, making it easier to 
understand and alleviating any possible market participant confusion.

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 \14\ and Rule 19b-4(f)(6) thereunder.\15\ 
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.\16\
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    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 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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    A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\18\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing.
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    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission agrees with the Exchange that waiver of the 30-day 
operative delay would be consistent with the protection of investors 
and the public interest because it would allow the Exchange to 
implement this proposed change immediately, ensuring that Users could 
benefit from the 30-day testing period for the existing service for a 
wireless connection of MEMX Memoir Depth data. Investors and the public 
interest would also benefit from the increased clarity and transparency 
the other amendments would provide to the Fee Schedule. The Commission 
therefore believes that waiver of the 30-day operative delay is 
appropriate.
    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) \19\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \19\ 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
     Send an email to [email protected]. Please include 
file number
    SR-NYSECHX-2024-19 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-2024-19. 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-NYSECHX-2024-19 and should 
be submitted on or before June 25, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-12141 Filed 6-3-24; 8:45 am]
BILLING CODE 8011-01-P