[Federal Register Volume 90, Number 187 (Tuesday, September 30, 2025)]
[Notices]
[Pages 47009-47012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-18952]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104061; File No. SR-NYSE-2025-37]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Various Port Fees in the Connectivity Fee Schedule
September 25, 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 September 18, 2025, the New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III 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 various port fees in the
Connectivity Fee Schedule. The proposed rule change is available on the
Exchange's website at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Connectivity Fee Schedule to
make changes to the monthly recurring fees that Users \4\ pay for ports
in the Mahwah Data Center (``MDC'').\5\ Specifically, the Exchange
proposes to adjust the monthly recurring fees for IP Network Access, IP
and NMS Network Access, and LCN and NMS Network Access in the MDC. Such
changes would become immediately effective, but the Exchange proposes
to delay the operative date of such changes until January 1, 2026, to
give sufficient notice to market participants.
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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. 76008 (September 29, 2015), 80 FR 60190
(October 5, 2015) (SR-NYSE-2015-40). As specified in the
Connectivity 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 NYSE
American LLC, NYSE Arca, Inc., NYSE National, Inc., and NYSE Texas,
Inc. (the ``Affiliate SROs''). Each Affiliate SRO has submitted
substantially the same proposed rule change to propose the changes
described herein. See SR-NYSEAMER-2025-60, SR-NYSEARCA-2025-71, SR-
NYSENAT-2025-23, and SR-NYSETEX-2025-35.
\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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The Exchange currently provides ports (also referred to as
``connections'' and ``network access'') to Users in the colocation
halls of the MDC at the prices shown below. With this proposal, the
Exchange proposes to increase its monthly recurring fees for these
ports by amounts between 9.1% to 11.1% (the initial port charges would
not change). As proposed, Users would be charged the following adjusted
prices:
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IP Network Access............. 1 Gb Circuit..... $2,500 per connection
initial charge plus
$2,750 [$2,500]
monthly per
connection.
IP Network and NMS Network 10 Gb IP Network $10,000 initial
Access. Circuit and 10 charge per
Gb NMS Network connection to both
Circuit. the IP Network and
NMS Network plus
$12,000 [$11,000]
monthly charge per
connection to both
the IP Network and
NMS Network.*
IP Network and NMS Network 40 Gb IP Network $10,000 initial
Access. Circuit and 40 charge per
Gb NMS Network connection to both
Circuit. the IP Network and
NMS Network plus
$20,000 [$18,000]
monthly charge per
connection to both
the IP Network and
NMS Network.*
LCN and NMS Network Access.... 10 Gb LX LCN $15,000 initial
Circuit and 10 charge per
Gb NMS Network connection to both
Circuit. the LCN and NMS
Network plus $24,000
[$22,000] monthly
charge per
connection to both
the LCN and NMS
Network.*
[[Page 47010]]
LCN and NMS Network Access.... 40 Gb LCN Circuit $15,000 initial
and 40 Gb NMS charge per
Network Circuit. connection to both
the LCN and NMS
Network plus $24,000
[$22,000] monthly
charge per
connection to both
the LCN and NMS
Network.*
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* As noted in the Connectivity Fee Schedule, for purposes of these
charges, the IP Network Circuit and NMS Network Circuit (or the LCN
Circuit and NMS Network Circuit) are together considered to be one
connection, such that Users are not subject to two initial or two
monthly charges.
The proposed port fee increases would enable the Exchange to
maintain and improve its market technology and services to remain
competitive with its peers. Over the years, customer demand for more
sophisticated, higher-throughput, lower-latency, and higher-power
connectivity solutions has increased. The Exchange continues to invest
in maintaining, improving, and enhancing its connectivity products,
services, and facilities for the benefit and often at the behest of its
customers. Such enhancements include refreshing hardware and expanding
the Exchange's existing colocation facility to offer customers
additional space and power.\6\ Nevertheless, the Exchange has not
increased its fees for ports in the colocation halls of the MDC since
2017,\7\ while inflation has been roughly 11.82% since 2017 as measured
using the ``Data PPI'' metric described below. As such, the Exchange
proposes increases in its monthly recurring fees for ports in the
colocation halls of the MDC ranging from 9.1% to 11.1% with respect to
inflation that has occurred since 2017.
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\6\ In addition, in 2020, the Exchange began providing Users, at
no additional charge, one port on the new NMS Network for each 10 Gb
or 40 Gb IP Network port or LCN port that Users purchased. The
Exchange did not increase the underlying IP Network or LCN port fees
at the time. See Securities Exchange Act Release Nos. 88837 (May 7,
2020), 85 FR 28671 (May 13, 2020) (SR-NYSE-2019-46, SR-NYSEAMER-
2019-34, SR-NYSEARCA-2019-61, SR-NYSENAT-2019-19) (Order Granting
Approval of Proposed Rule Change to Amend the Exchanges' Co-Location
Services to Offer Co-Location Users Access to the NMS Network);
88972 (May 29, 2020), 85 FR 34472 (June 4, 2020) (SR-NYSECHX-2020-
18).
\7\ In fact, the fee for the 1Gb IP Network port was not
increased in 2017, and thus has stayed at the same level for even
longer.
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As discussed below, the Exchange proposes to adjust its fees by an
industry- and product-specific inflationary measure. It is reasonable
and consistent with the Act for the Exchange to recoup its investments,
at least in part, by adjusting its fees. Continuing to operate at fees
frozen at 2017 levels impacts the Exchange's ability to enhance its
offerings and the interests of market participants and investors.
The fee increases the Exchange proposes are based on an industry-
specific Producer Price Index (``PPI''), which is a tailored measure of
inflation.\8\ As a general matter, the Producer Price Index is a family
of indexes that measures the average change over time in selling prices
received by domestic producers of goods and services. PPI measures
price change from the perspective of the seller. This contrasts with
other metrics, such as the Consumer Price Index (``CPI''), that measure
price change from the purchaser's perspective.\9\ About 10,000 PPIs for
individual products and groups of products are tracked and released
each month.\10\ PPIs are available for the output of nearly all
industries in the goods-producing sectors of the U.S. economy--mining,
manufacturing, agriculture, fishing, and forestry--as well as natural
gas, electricity, and construction, among others. The PPI program
covers approximately 69 percent of the service sector's output, as
measured by revenue reported in the 2017 Economic Census.
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\8\ See https://fred.stlouisfed.org/series/PCU51825182#0.
\9\ See https://www.bls.gov/ppi/overview.htm.
\10\ Id.
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For purposes of this proposal, the relevant industry-specific PPI
is the Data Processing and Related Services PPI (``Data PPI''), which
is an industry net-output PPI that measures the average change in
selling prices received by companies that provide data processing
services.
The Data PPI was introduced in January 2002 by the Bureau of Labor
Statistics (BLS) as part of an ongoing effort to expand Producer Price
Index coverage of the services sector of the U.S. economy and is
identified as NAICS 518210 in the North American Industry
Classification System.\11\ According to the BLS, ``[t]he primary output
of NAICS 518210 is the provision of electronic data processing
services. In the broadest sense, computer services companies help their
customers efficiently use technology. The processing services market
consists of vendors who use their own computer systems--often utilizing
proprietary software--to process customers' transactions and data.
Companies that offer processing services collect, organize, and store a
customer's transactions and other data for record-keeping purposes.
Price movements for the NAICS 518210 index are based on changes in the
revenue received by companies that provide data processing services.
Each month, companies provide net transaction prices for a specified
service. The transaction is an actual contract selected by probability,
where the price-determining characteristics are held constant while the
service is repriced. The prices used in index calculation are the
actual prices billed for the selected service contract.'' \12\
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\11\ NAICS appears in table 5 of the PPI Detailed Report and is
available at https://data.bls.gov/timeseries/PCU518210518210.
\12\ See https://www.bls.gov/ppi/factsheets/producer-price-index-for-the-data-processing-and-related-services-industry-naics-518210.htm.
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The Exchange believes the Data PPI is an appropriate measure to be
considered in the context of the proposed rule change to modify its
port fees because the Exchange uses its ``own computer systems'' and
``proprietary software,'' i.e., its own data center, including the
hardware and equipment that it uses to bring customers' orders,
transactions, and other data into the data center for processing,
routing, and execution. In other words, the Exchange is in the business
of data processing and related services.
For purposes of this proposed rule change, the Exchange examined
the Data PPI value for the period from January 2017 through March 2025
(the last month for which finalized data is available). The Data PPI
had a starting value of 109.0 in January 2017 and an ending value of
121.880 in March 2025, an 11.82% increase. This indicates that
companies who are also in the data storage and processing business have
generally increased prices for a specified service covered under NAICS
518210 by an average of 11.82% during this period. Based on that
percentage change, the Exchange proposes to increase its monthly
recurring fees for the ports in the colocation halls of the MDC by up
to 11.1%--slightly below the Data PPI increase of 11.82%--which
reflects an increase covering the entire period since the last price
adjustment to these fees was made.
The Exchange further believes the Data PPI is an appropriate
measure for purposes of the proposed rule change on the basis that it
is a stable metric with limited volatility, unlike other consumer-side
inflation metrics. In fact, the Data PPI has not experienced a
[[Page 47011]]
greater than 3.00% increase for any one calendar year period since
2004, the earliest Data PPI is available. The average calendar year
change from 2004 to 2025 was 0.76%, with a cumulative increase of
17.15% over this 21-year period. The Exchange believes the Data PPI is
considerably less volatile than other inflation metrics such as CPI,
which has had individual calendar-year increases averaging 2.62%, and a
cumulative increase of 71.53% during the same period.\13\
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\13\ See https://www.usinflationcalculator.com/inflation/consumer-price-index-and-annual-percent-changes-from-1913-to-2008/.
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The Exchange believes the Data PPI, and significant investments
into, and enhanced performance of, the Exchange support the
reasonableness of the proposed fee increases.\14\
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\14\ See supra discussion of system performance advancements.
Additionally, other exchanges have filed for increases in certain
fees, based in part on comparisons to inflation. See, e.g.,
Securities Exchange Act Release Nos. 102073 (January 2, 2025), 90 FR
1558 (January 8, 2025) (SR-BOX-2024-30); and 102103 (January 3,
2025), 90 FR 2045 (January 10, 2025) (SR-NASDAQ-2024-087).
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These proposed fee increases will be immediately effective upon
filing. However, the Exchange proposes to delay the operative date of
such changes until January 1, 2026, to give sufficient notice to market
participants.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the provisions of Section 6 of the Act,\15\ in general, and Sections
6(b)(4) and 6(b)(5) of the Act,\16\ in particular, in that it provides
an equitable allocation of reasonable fees among users and recipients
of the data and is not designed to permit unfair discrimination among
customers, issuers, and brokers.
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\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(4), (5).
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This belief is based on two factors. First, the current fees do not
properly reflect the quality of the services and products, as fees for
these ports have been static in nominal terms, and therefore falling in
real terms due to inflation. Second, the Exchange believes that
investments made in enhancing the capacity and speed of Exchange
systems has increased the performance of these ports.
The Proposed Rule Change Is Reasonable
As noted above, the Exchange has not increased any of the fees
included in the proposal since 2017 or earlier. However, in the years
following the last fee increases, the Exchange has made significant
investments in upgrades to its connectivity products, services, and
facilities, enhancing the quality of its services. In other words,
Exchange customers have greatly benefited, while the Exchange's ability
to recoup its investments has been hampered.
Between 2017 and 2025, the inflation rate was 3.51% per year, on
average, producing a cumulative inflation rate of 31.79%.\17\ Using the
more targeted inflation number of Data PPI, the cumulative inflation
rate was 11.82%. The exchange believes the Data PPI is a reasonable
metric to base this fee increase on because it is targeted to producer-
side increases in the data processing industry.
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\17\ See https://www.officialdata.org/us/inflation/2019?endYear=2023&amount=1 (as of August 25, 2025).
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Notwithstanding inflation, as noted above, the Exchange has not
increased its fees for the subject services for more than eight years.
The proposed fee changes therefore represent a modest increase from the
current fees.
The Exchange believes the proposed fee increase is reasonable in
light of the Exchange's continued expenditure in maintaining a robust
technology ecosystem. Furthermore, the Exchange continues to invest in
maintaining and enhancing its connectivity products--for the benefit
and often at the behest of its customers and global investors. Such
enhancements include refreshing several aspects of the technology
ecosystem including software, hardware, and network while introducing
new and innovative products and expanded and modernized facilities. The
goal of the enhancements discussed above, among other things, is to
provide faster, higher-capacity, and more modern connectivity products
and services. Accordingly, the Exchange continues to expend resources
to innovate and modernize its technology so that it may benefit its
members in offering connectivity products and services.
The Proposed Fees Are Equitably Allocated and Not Unfairly
Discriminatory
The Exchange believes that the proposed fee increases are equitably
allocated and not unfairly discriminatory because they would apply to
all market participants that choose to purchase such connectivity
products and services from the Exchange. Any participant that chooses
to purchase the Exchange's connectivity products and services would be
subject to the same Connectivity Fee Schedule, regardless of what type
of business they operate or the use they plan to make of the products
and services. Additionally, the fee increases would be applied
uniformly to market participants without regard to Exchange membership
status or the extent of any other business with the Exchange or
affiliated entities.
The Exchange also believes that the proposal represents an
equitable allocation of reasonable dues, fees, and other charges
because Exchange fees have fallen in real terms during the relevant
period. Finally, the Exchange believes that the proposed fee changes
are not unfairly discriminatory because the fees would be assessed
uniformly across all market participants, in the same manner they are
today, that voluntarily purchase the Exchange's connectivity products
and services, which would remain available for purchase by all market
participants.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed fees will impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
Intramarket Competition. The Exchange believes that the proposed
fees do not put any market participants at a relative disadvantage
compared to other market participants. As noted above, the Connectivity
Fee Schedule would continue to apply to all purchasers of the
Exchange's connectivity products and services in the same manner as it
does today, albeit at inflation-adjusted rates for port fees, and
customers may choose whether to purchase these products and services at
all. The Exchange also believes that the level of the proposed fees
neither favors nor penalizes one or more categories of market
participants in a manner that would impose an undue burden on
competition.
Intermarket Competition. The Exchange believes that the proposed
fees do not impose a burden on competition or on other SROs that is not
necessary or appropriate. In determining the proposed fees, the
Exchange utilized an objective and stable metric with limited
volatility. Utilizing Data PPI over a specified period of time is a
reasonable means of recouping the Exchange's investment in maintaining
and enhancing its connectivity products, services, and facilities. The
Exchange believes utilizing Data PPI, a tailored measure of inflation,
to increase certain fees for connectivity products and services to
recoup the Exchange's investment in maintaining and enhancing such
products, services, and
[[Page 47012]]
facilities would not impose a burden on competition.
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
Pursuant to Section 19(b)(3)(A)(ii) of the Act,\18\ and Rule 19b-
4(f)(2) thereunder \19\ the Exchange has designated this proposal as
establishing or changing a due, fee, or other charge imposed on any
person, whether or not the person is a member of the self-regulatory
organization, which renders the proposed rule change effective upon
filing. At any time within 60 days of the filing of the 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.
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\18\ 15 U.S.C. 78s(b)(3)(A)(ii).
\19\ 17 CFR 240.19b-4.
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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-NYSE-2025-37 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-NYSE-2025-37. 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 filing 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-NYSE-2025-37 and should be submitted on
or before October 21, 2025.
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. 2025-18952 Filed 9-29-25; 8:45 am]
BILLING CODE 8011-01-P