[Federal Register Volume 90, Number 64 (Friday, April 4, 2025)]
[Notices]
[Pages 14878-14881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-05779]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-102748; File No. SR-NYSEARCA-2025-26]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Connectivity Fee Schedule
March 31, 2025.
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 March 25, 2025, NYSE Arca, Inc. (``NYSE Arca'' 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
amend the list of third party systems and third party data feeds to
which Users can connect. 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
amend the list of third party systems and third party data feeds to
which Users \4\ can connect.
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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. 76010 (September 29, 2015), 80 FR 60197
(October 5, 2015) (SR-NYSEArca-2015-82). 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 New
York Stock Exchange LLC, NYSE American LLC, NYSE Chicago, 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-2025-08,
SR-NYSEAMER-2025-17, SR-NYSECHX-2025-05, and SR-NYSENAT-2025-06.
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Currently, Users are offered connectivity to the execution systems
of third party markets and other service providers (``Third Party
Systems'') and connectivity to data feeds from third party markets and
other content service providers (``Third Party Data Feeds'') at the
Mahwah, New Jersey data center (``MDC'').\5\ The Exchange proposes to
amend the two lists to delete systems and feeds to which no User
connects, update the names of systems and feeds, and consolidate
systems. None of the changes are substantive or will affect current
Users.
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\5\ Through its Fixed Income and Data Services (``FIDS'')
business, Intercontinental Exchange, Inc. (``ICE'') operates the
MDC. The Exchange and the Affiliate SROs are indirect subsidiaries
of ICE.
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Proposed Changes
Changes to the List of Third Party Systems
The Exchange proposes to make the following changes to the list of
Third Party Systems:
Consistent with the fact that no User connects to them,
delete Americas Trading Group (ATG); Canadian Securities Exchange
(CSE); Credit Suisse; Euronext Optiq Cash and Derivatives Unicast
(EUA); Euronext Optiq Cash and Derivatives Unicast (Production), and
OneChicago (collectively, the ``Proposed Third Party Systems
Deletions'').
Change the name of ``BM&F Bovespa'' to ``B3 Bovespa''
consistent with the name change of BM&FBOVESPA S.A.\6\
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\6\ See 003-2017-DF-External Communication, Re. New Corporate
Name of BM&FBOVESPA and Merger of Cetip (June 19, 2017) (available
at https://www.b3.com.br/en_us/regulation/circular-letters-and-external-communications/bm-fbovespa/?dataFim=2017&pagination=3).
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Combine Cboe BYX Exchange (CboeBYX), Cboe BZX Exchange
(CboeBZX), Cboe EDGA Exchange (CboeEDGA), and Cboe EDGX Exchange
(CboeEDGX) and Cboe Exchange (Cboe) and Cboe C2 Exchange (C2) and
change the name of the combined Third Party System to ``Cboe US.''
Combine MIAX Options and MIAX Pearl Options under
``MIAX.''
Combine Nasdaq and Nasdaq ISE under ``Nasdaq US Stock
Market.''
Change the name of ITG TriAct Matchnow to Cboe MATCHNow,
consistent with its sale to Cboe Global Markets.\7\
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\7\ See ``Cboe Completes MATCHNow Technology Migration and
Launches its First New Canadian Offering,'' February 8, 2022, at
https://ir.cboe.com/news/news-details/2022/Cboe-Completes-MATCHNow-Technology-Migration-and-Launches-its-First-New-Canadian-Offering-02-08-2022/default.aspx.
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Change the name of Neo Aequitas to Cboe Canada, consistent
with its sale to Cboe Global Markets.\8\
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\8\ See ``Cboe Global Markets Completes Acquisition of NEO,
Strengthening Global Equities and Listings Offerings,'' June 1,
2022, at https://www.cboe.ca/en/about/press-releases/cboe-global-markets-completes-acquisition-of-neo-strengthening-global-equities-and-listings-offerings.
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To make these changes, the list of available Third Party Systems
would be
[[Page 14879]]
amended as follows (proposed deletions bracketed, proposed additions
italicized):
Third Party Systems
[Americas Trading Group (ATG)]
[BM&F]B3 Bovespa
Boston Options Exchange (BOX)
[Canadian Securities Exchange (CSE)]
Cboe Canada
Cboe MATCHNow
Cboe US[BYX Exchange (CboeBYX), Cboe BZX Exchange (CboeBZX), Cboe EDGA
Exchange (CboeEDGA), and Cboe EDGX Exchange (CboeEDGX)]
[Cboe Exchange (Cboe) and Cboe C2 Exchange (C2)]
Chicago Mercantile Exchange (CME Group)
[Credit Suisse]
[Euronext Optiq Cash and Derivatives Unicast (EUA)]
[Euronext Optiq Cash and Derivatives Unicast (Production)]
Investors Exchange (IEX)
[ITG TriAct Matchnow]
MIAX [Options]
[MIAX PEARL Options]
[Nasdaq]
Nasdaq Canada (CXC, CXD, CX2)
Nasdaq US Stock Market[ISE]
[Neo Aequitas]
NYFIX Marketplace
Omega
[OneChicago]
OTC Markets Group
TMX Group
The Exchange does not propose to change the monthly recurring fee
Users pay for access to each Third Party System. Although the proposed
changes to the list of Third Party Systems would combine the names of
several current Third Party Systems, no User would be charged more as a
consequence of the combinations. A User would continue to be able to
choose which systems it wants from any combined Third Party System. It
would not have to receive any systems, or pay for any bandwidth, that
it did not choose.\9\
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\9\ For example, if a User connected to CboeBYX and CboeBZX but
did not access any other Cboe system, including Cboe C2, it would
not pay for any additional system or have its monthly fee changed as
a consequence of the proposed combination.
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Changes to the List of Third Party Data Feeds
The Exchange proposes to make the following changes to the list of
Third Party Data Feeds:
Consistent with the fact that no User connects to them,
delete Canadian Securities Exchange (CSE), Euronext Optiq Compressed
Cash, Euronext Optiq Compressed Derivatives, Euronext Optiq Shaped
Cash, Euronext Optiq Shaped Derivatives, MSCI 5 Mb, MSCI 25 Mb,
OneChicago, Vela--SuperFeed <500 Mb, Vela--SuperFeed >500 Mb to <1.25
Gb, and Vela--SuperFeed >1.25 Gb and the associated monthly recurring
fees (collectively and together with the Proposed Third Party Systems
Deletions, the ``Proposed Deletions'').
Change the name of ``BM&F Bovespa'' to ``B3 Bovespa''
consistent with the name change of BM&FBOVESPA S.A.\10\
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\10\ See note 6, supra.
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To add clarity, add ``Chicago Mercantile Exchange'' before
``CME Group,'' and put ``CME Group'' in parentheses.
To add clarity, add ``(GIDS)'' after ``Nasdaq Global Index
Data Service.''
Change the name of ITG TriAct Matchnow to Cboe MATCHNow,
consistent with its sale to Cboe Global Markets.\11\
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\11\ See note 7, supra.
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Change the name of Neo Aequitas to Cboe Canada, consistent
with its sale to Cboe Global Markets.\12\
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\12\ See note 8, supra.
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To make these changes, the list of available Third Party Data Feeds
would be amended as follows (proposed deletions bracketed, proposed
additions italicized):
------------------------------------------------------------------------
Monthly recurring
Third Party Data Feed connectivity fee per
Third Party Data Feed
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[BM&F]B3 Bovespa............................... $3,000
Boston Options Exchange (BOX).................. 1,000
[Canadian Securities Exchange (CSE)............ 1,000]
Cboe BZX Exchange (CboeBZX) and Cboe BYX 2,000
Exchange (CboeBYX)............................
Cboe Canada.................................... 1,200
Cboe EDGX Exchange (CboeEDGX) and Cboe EDGA 2,000
Exchange (CboeEDGA)...........................
Cboe Exchange (Cboe) and Cboe C2 Exchange (C2). 2,000
Cboe MATCHNow.................................. 1,000
Chicago Mercantile Exchange (CME Group)........ 3,000
[Euronext Optiq Compressed Cash................ 900]
[Euronext Optiq Compressed Derivatives......... 600]
[Euronext Optiq Shaped Cash.................... 1,200]
[Euronext Optiq Shaped Derivatives............. 900]
* * * * * * *
Investors Exchange (IEX)....................... 1,000
[ITG TriAct Matchnow........................... 1,000]
Miami International Securities Exchange/MIAX 2,000
PEARL.........................................
Montr[eacute]al Exchange (MX).................. 1,000
[MSCI 5 Mb..................................... 500]
[MSCI 25 Mb.................................... 1,200]
Nasdaq Stock Market............................ 2,000
Nasdaq Global Index Data Service (GIDS)........ 100
* * * * * * *
[Neo Aequitas.................................. 1,200]
Omega.......................................... 1,000
[OneChicago.................................... 1,000]
OTC Markets Group.............................. 1,000
[Vela--SuperFeed <500 Mb....................... 250]
[Vela--SuperFeed >500 Mb to <1.25 Gb........... 800]
[Vela--SuperFeed >1.25 Gb...................... 1,000]
[[Page 14880]]
TMX Group...................................... 2,500
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Application and Impact of the Proposed Changes
The proposed rule change would not apply differently to distinct
types or sizes of market participants. Rather, it 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 expect that the proposed
rule change will affect current Users or result in new Users.
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.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\13\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\14\ 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,\15\ 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.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
\15\ 15 U.S.C. 78f(b)(4).
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The Proposed Rule Change Is Reasonable and Not Unfairly Discriminatory
The Exchange believes that the proposed changes are reasonable and
not unfairly discriminatory, as it believes that none of the changes
are substantive or will affect current Users. Simply put, no Users
would be adversely affected by the proposed changes.
No change to existing fees is proposed. Specifically, the Exchange
does not propose to change the monthly recurring fee Users pay for
access to each Third Party System. Although the proposed changes to the
list of Third Party Systems would combine the names of several current
Third Party Systems, no User would be charged more as a consequence of
the combinations. A User would continue to be able to choose which
systems it wants from any combined Third Party System. It would not
have to receive any systems, or pay for any bandwidth, that it did not
choose. Similarly, the Exchange or does not propose to change any
existing fees for connectivity to Third Party Data Feeds.
No User connects to any of the Proposed Deletions--in fact, one of
the Proposed Deletions is for an entity that is no longer offering
trading.\16\ As a result, no User would be affected by the Proposed
Deletions.
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\16\ OneChicago, a U.S. based futures exchange, ceased trading
in September 2020. See Securities Exchange Act Release No. 91117
(February 11, 2021), 86 FR 03218 (February 18, 2021) (Order Granting
OneChicago, LLC's Request To Withdraw From Registration as a
National Securities Exchange Solely for the Purposes of Trading
Security Futures Products).
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The proposed alterations to the names of BM&F Bovespa, CME Group,
ITG TriAct Matchnow, Nasdaq Global Index Data Services and NeoAequitas
are name changes only and would have no effect on the fee charged.
Rather, they would add clarity and consistency for Users and, for BM&F
Bovespa, ITG TriAct Matchnow, and Neo Aequitas, be consistent with name
changes and sales, The proposed alterations to the names would
therefore increase Users' ability to recognize Third Party Systems and
Third Party Data Feeds.
The Exchange believes that the proposed change is not unfairly
discriminatory because it will not result in any changed fees. Fees
will continue only being charged to Users that voluntarily select to
receive the corresponding services. Furthermore, the Exchange believes
that the proposed change is not unfairly discriminatory because the
changed services would be available to all Users on an equal basis
(i.e., the same products and services are available to all Users).
The Proposed Rule Change Is Equitable
The Exchange believes that the proposed rule change is equitable.
No change to existing fees is proposed. Specifically, the Exchange
does not propose to change the monthly recurring fee Users pay for
access to each Third Party System. Although the proposed changes to the
list of Third Party Systems would combine the names of several current
Third Party Systems, no User would be charged more as a consequence. A
User would not have to receive any systems, or pay for any bandwidth,
that it did not choose. Similarly, the Exchange does not propose to
change any existing fees for connectivity to Third Party Data Feeds.
The Exchange believes that the changes proposed herein are
equitably allocated because, in addition to the services being
completely voluntary, they are available to all Users on an equal basis
(i.e., the same products and services are available to all Users).
For all 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,\17\ 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.
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\17\ 15 U.S.C. 78f(b)(8).
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The proposed change would not affect competition among national
securities exchanges, among members of the Exchange, or between FIDS
and its commercial competitors.
The proposed changes are not designed to address competitive
issues. The Exchange does not believe that any Users would be adversely
affected by the changes. Rather, the changes would simplify the
Connectivity Fee Schedule, enhancing its clarity and transparency. The
changes would not put any market participants at a relative
disadvantage compared to other market participants or penalize one or
more categories of market participants in a manner that would impose an
undue burden on competition.
[[Page 14881]]
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 \18\ and Rule 19b-4(f)(6) thereunder.\19\
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.\20\
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\18\ 15 U.S.C. 78s(b)(3)(A)(iii).
\19\ 17 CFR 240.19b-4(f)(6).
\20\ 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) \21\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\21\ 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-NYSEARCA-2025-26 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-NYSEARCA-2025-26. 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-NYSEARCA-2025-26 and should
be submitted on or before April 25, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-05779 Filed 4-3-25; 8:45 am]
BILLING CODE 8011-01-P