80_FR_81859 80 FR 81609 - Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving Proposed Rule Change to the Co-Location Services Offered by the Exchange (the Offering of a Wireless Connection To Allow Users To Receive Market Data Feeds From Third Party Markets) and To Reflect Changes to the Exchange's Price List Related to These Services

80 FR 81609 - Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving Proposed Rule Change to the Co-Location Services Offered by the Exchange (the Offering of a Wireless Connection To Allow Users To Receive Market Data Feeds From Third Party Markets) and To Reflect Changes to the Exchange's Price List Related to These Services

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 250 (December 30, 2015)

Page Range81609-81611
FR Document2015-32817

Federal Register, Volume 80 Issue 250 (Wednesday, December 30, 2015)
[Federal Register Volume 80, Number 250 (Wednesday, December 30, 2015)]
[Notices]
[Pages 81609-81611]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32817]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76748; File No. SR-NYSE-2015-52]


Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Approving Proposed Rule Change to the Co-Location Services Offered by 
the Exchange (the Offering of a Wireless Connection To Allow Users To 
Receive Market Data Feeds From Third Party Markets) and To Reflect 
Changes to the Exchange's Price List Related to These Services

December 23, 2015.

I. Introduction

    On October 23, 2015, New York Stock Exchange LLC (``NYSE'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') pursuant to Section 19(b)(1) \1\ of the Securities 
Exchange Act

[[Page 81610]]

of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ a proposed rule 
change to amend the co-location services offered by the Exchange to 
include a means for co-located Users to receive market data feeds from 
third party markets through a wireless connection. The proposed rule 
change was published in the Federal Register on November 12, 2015.\4\ 
No comment letters were received in response to the Notice. This order 
approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
    \4\ See Securities Exchange Act Release No. 76374 (November 5, 
2015), 80 FR 70021 (November 12, 2015) (``Notice'').
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II. Description of the Proposed Rule Change

    The Exchange proposes to change the co-location services offered by 
the Exchange to include a means for Users to receive market data feeds 
from third party markets (the ``Third Party Data'') through a wireless 
connection.\5\ In addition, the proposed rule change reflects changes 
to the Exchange's Price List related to these co-location services.
---------------------------------------------------------------------------

    \5\ For purposes of the Exchange's co-location services, a 
``User'' means any market participant that requests to receive co-
location 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 Price List, 
a User that incurs co-location fees for a particular co-location 
service pursuant thereto would not be subject to co-location fees 
for the same co-location service charged by the Exchange's 
affiliates NYSE MKT LLC and NYSE Arca, Inc. See Securities Exchange 
Act Release No. 70206 (August 15, 2013), 78 FR 51765 (August 21, 
2013) (SR-NYSE-2013-59).
---------------------------------------------------------------------------

    The Exchange proposes to offer the wireless connection to provide 
Users with an alternative means of connectivity for Third Party Data. 
As the Exchange notes, wireless connections involve beaming signals 
through the air between antennas that are within sight of one 
another.\6\ Because the signals travel a straight, unimpeded line, and 
because light waves travel faster through air than through glass (fiber 
optics), wireless messages have lower latency than messages travelling 
through fiber optics.\7\
---------------------------------------------------------------------------

    \6\ See Notice, supra note 4 at 70021.
    \7\ See id.
---------------------------------------------------------------------------

    Under the proposed rule change, the Exchange would utilize a 
network vendor to provide a wireless connection to the Third Party Data 
through wireless connections from the Exchange access centers in 
Secaucus and Carteret, New Jersey, to its data center in Mahwah, New 
Jersey, through a series of towers equipped with wireless equipment.\8\ 
A User that chooses this optional service would be able to receive data 
feeds from NASDAQ and BATS Exchange, Inc. over a wireless connection. 
To receive Third Party Data, the User would enter into a contract with 
the relevant third party market, which would charge the User the 
applicable market data fees for the Third Party Data. The Exchange 
would charge the User fees for the wireless connection for the Third 
Party Data.\9\
---------------------------------------------------------------------------

    \8\ The NASDAQ Stock Market LLC (``NASDAQ'') offers a similar 
wireless service. See Securities Exchange Act Release No. 68735 
(January 25, 2013), 78 FR 6842 (January 31, 2013) (SR-NASDAQ-2012-
119) (approving a proposed rule change to establish a new optional 
wireless connectivity for co-located clients).
    \9\ A User would only receive the Third Party Data for which it 
had entered into a contract. For example, a User that contracted 
with NASDAQ for the NASDAQ Totalview-ITCH data feed but did not 
contract to receive any other Third Party Data would receive only 
the NASDAQ Totalview-ITCH data feed through its wireless connection.
---------------------------------------------------------------------------

    A User would be charged a $5,000 non-recurring initial charge for 
each wireless connection and a monthly recurring charge (``MRC'') that 
would vary depending upon the feed that the User opts to receive. If a 
User purchased two wireless connections, it would pay two non-recurring 
initial charges. The MRC for a wireless connection to each of BATS 
Pitch BZX Gig shaped data, DirectEdge EDGX Gig shaped data, and NASDAQ 
BX Totalview-ITCH data will be $6,000; the MRC for a wireless 
connection of NASDAQ Totalview-ITCH data will be $8,500; and the MRC 
for a wireless connection of NASDAQ Totalview-ITCH and BX Totalview-
ITCH data will be $12,000. The Exchange proposes to waive the first 
month's MRC, to allow Users to test the receipt of the feed(s) for a 
month before incurring any MRCs.
    The wireless connections would include the use of one port for 
connectivity to the Third Party Data. A User will only require one port 
to connect to the Third Party Data, irrespective of how many of the 
five wireless connections it orders. If a User that has more than one 
wireless connection wishes to use more than one port to connect to the 
Third Party Data,\10\ the Exchange proposes to make such additional 
ports available for a monthly fee per port of $3,000.
---------------------------------------------------------------------------

    \10\ For example, a User with two wireless connections for Third 
Party Data may opt to purchase an additional port in order to route 
the options and equity data it receives to different cabinets.
---------------------------------------------------------------------------

    The Exchange represents that there is limited bandwidth available 
on the wireless connection for data feeds from third parties. As a 
result, the Exchange has decided to offer as Third Party Data only the 
data feeds that are in high demand from Users. Although constrained by 
bandwidth with respect to the number of feeds it can carry, the 
Exchange represents that the wireless network offered by the Exchange 
can be made available to an unlimited number of Users.
    The wireless connection would provide Users with an alternative 
means of connectivity for Third Party Data. Currently, Users can 
receive Third Party Data through other methods, including, for example, 
from another User, through a telecommunications provider, or over the 
internet protocol (``IP'') network.\11\ In addition, Users can receive 
Third Party Data from wireless networks offered by third party vendors. 
The Exchange represents that there are currently at least four third 
party vendors that offer Users wireless network connections using 
wireless equipment installed on towers and buildings near the data 
center. The Exchange states that its proposed wireless connection would 
traverse wireless connections through a series of towers equipped with 
wireless equipment, including a pole on the grounds of the data 
center.\12\ The Exchange states that access to such pole or the roof is 
not required for third parties to establish wireless networks that can 
compete with Exchange's proposed service and, in particular, represents 
that based on the information available to it, the proposed wireless 
connection would provide data at the same or similar speed, and at the 
same or similar cost, as existing wireless networks, thereby enhancing 
competition.\13\
---------------------------------------------------------------------------

    \11\ The IP network is a local area network available in the 
data center. See Securities Exchange Act Release No. 74222 (February 
6, 2015), 80 FR 7888 (February 12, 2015) (SR-NYSE-2015-05) (notice 
of filing and immediate effectiveness of proposed rule change to 
include IP network connections).
    \12\ See Notice, supra note 4 at 70023.
    \13\ See Notice, supra note 4 at 70022-23.
---------------------------------------------------------------------------

    The wireless connection to the Third Party Data is expected to be 
available no later than March 1, 2016. The Exchange will announce the 
date that the wireless connection to the Third Party Data will be 
available through a customer notice.

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities 
exchange.\14\ In particular, the Commission finds that the proposed 
rule change is consistent with Section 6(b)(4) of the Act,\15\ which 
requires that

[[Page 81611]]

the rules of a national securities exchange provide for the equitable 
allocation of reasonable dues, fees and other charges among its members 
and issuers and other persons using its facilities, and with Section 
6(b)(5) of the Act,\16\ which requires, among other things, that the 
rules of a national securities exchange be designed to promote just and 
equitable principles of trade, 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 not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. In addition, the Commission finds that the 
proposed rule change is consistent with Section 6(b)(8) of the Act,\17\ 
which requires that the rules of the exchange not impose any burden on 
competition not necessary or appropriate in furtherance of the purposes 
of the Act.
---------------------------------------------------------------------------

    \14\ In approving this proposed rule change, the Commission 
notes that it has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
    \15\ 15 U.S.C. 78f(b)(4).
    \16\ 15 U.S.C. 78f(b)(5).
    \17\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

    The Commission believes that the Exchange's proposal to provide 
this additional connectivity option is consistent with the requirement 
of Section 6(b)(5) of the Act. The Commission believes that the 
proposal is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers because the Exchange makes 
wireless connectivity available to all Users on an equal basis. All 
Users that voluntarily select this service option will be charged the 
same amount for the same services, and there would be no 
differentiation among Users with regard to the fees charged for the 
service. Further, the Exchange represents that Users of the new 
wireless connection would not receive Third Party Data that is not 
available to all Users. In addition, the Exchange represents that Users 
that do not opt to utilize the Exchange's wireless connections would 
still be able to obtain Third Party Data through other methods, such as 
from wireless networks offered by third party vendors, other Users, 
through telecommunications providers, or over the IP network.
    The Commission also believes that the proposed rule change is 
consistent with Section 6(b)(4) of the Act.\18\ All Users that 
voluntarily select this service option will be charged the same amount 
for the same services, and there would be no differentiation among 
Users with regard to the fees charged for the service. The Commission 
notes the Exchange's representation that the fees associated with 
providing the wireless connections are reasonable because the Exchange 
will incur certain costs, including costs related to the data center 
facility, hardware and equipment and costs related to personnel 
required for initial installation and monitoring, support and 
maintenance of such services. The Exchange states that the costs 
associated with the wireless connections are incrementally higher than 
fiber optics-based solutions due to the expense of the wireless 
equipment, cost of installation and testing and ongoing maintenance of 
the network, and that fees also reflect the benefit received by Users 
in terms of lower latency over the fiber optics option. In addition, 
the Exchange believes that the proposed waiver of the first month's MRC 
is reasonable as it would allow Users to test the receipt of the 
feed(s) for a month before incurring any monthly recurring fees and may 
act as an incentive to Users to utilize the new service.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Commission also finds that consistent with Section 6(b)(8) of 
the Act the proposed rule change does not impose a burden on 
competition not necessary or appropriate in furtherance of the purposes 
of the Act. The Exchange states that Users currently can receive Third 
Party Data from competing wireless networks offered by third party 
vendors, including at least four third party vendors that offer Users 
wireless network connections using wireless equipment installed on 
towers and buildings near the data center. The Exchange represents, 
based on the information available to it, that the proposed wireless 
connection would provide data at the same or similar speed, and at the 
same or similar cost, as existing wireless networks, thereby enhancing 
competition.\19\ The Exchange also notes that the proposed wireless 
connection would compete not just with other wireless connections, but 
also with fiber optic networks, which may be more attractive to some 
Users as they are more reliable and less susceptible to weather 
conditions. For these reasons, the Commission does not believe that the 
proposed rule change imposes a burden on competition not necessary or 
appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \19\ See supra notes 12 and 13 and accompanying text.
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\20\ that the proposed rule change (SR-NYSE-2015-52) be, and it 
hereby is, approved.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-32817 Filed 12-29-15; 8:45 am]
BILLING CODE 8011-01-P



                                                                              Federal Register / Vol. 80, No. 250 / Wednesday, December 30, 2015 / Notices                                                  81609

                                                  which should protect investors and the                     The Exchange states that waiving the                    rules/sro.shtml). Copies of the
                                                  public interest.                                           thirty-day delay would allow the                        submission, all subsequent
                                                                                                             Exchange to eliminate the Proprietary                   amendments, all written statements
                                                  (B) Self-Regulatory Organization’s
                                                                                                             Trader and Proprietary Trader Principal                 with respect to the proposed rule
                                                  Statement on Burden on Competition
                                                                                                             registration categories and adopt the                   change that are filed with the
                                                     The Exchange does not believe that                      Securities Trader and Securities Trader                 Commission, and all written
                                                  the proposed rule change will impose                       Principal registration categories at the                communications relating to the
                                                  any burden on competition not                              same time as FINRA and the other                        proposed rule change between the
                                                  necessary or appropriate in furtherance                    national securities exchanges. The                      Commission and any person, other than
                                                  of the purposes of the Act.                                Commission believes that waiving the                    those that may be withheld from the
                                                  Implementation of the proposed                             thirty day delay is consistent with the                 public in accordance with the
                                                  changes to the Exchange’s registration                     protection of investors and the public                  provisions of 5 U.S.C. 552, will be
                                                  rules in coordination with the FINRA                       interest, as it will enable BYX to have                 available for Web site viewing and
                                                  Amendments does not present any                            the new requirements in effect at the                   printing in the Commission’s Public
                                                  competitive issues, but rather is                          same time as the other SROs . Therefore,                Reference Room, 100 F Street NE.,
                                                  designed to provide less burdensome                        the Commission hereby waives the                        Washington, DC 20549, on official
                                                  and more efficient regulatory                              thirty-day operative delay and                          business days between the hours of
                                                  compliance for members and enhance                         designates the proposal operative as of                 10:00 a.m. and 3:00 p.m. Copies of such
                                                  the ability of the Exchange to fairly and                  January 4, 2016.12                                      filing will also be available for
                                                  efficiently regulate members, which will                      At any time within 60 days of the                    inspection and copying at the principal
                                                  further enhance competition.                               filing of the proposed rule change, the                 office of the Exchange. All comments
                                                  Additionally, the proposed rule change                     Commission summarily may                                received will be posted without change;
                                                  should not affect intramarket                              temporarily suspend such rule change if                 the Commission does not edit personal
                                                  competition because all similarly                          it appears to the Commission that such                  identifying information from
                                                  situated representatives and principals                    action is: (1) Necessary or appropriate in              submissions. You should submit only
                                                  will be required to complete the same                      the public interest; (2) for the protection             information that you wish to make
                                                  qualification examinations and maintain                    of investors; or (3) otherwise in                       available publicly. All submissions
                                                  the same registrations.                                    furtherance of the purposes of the Act.                 should refer to File No. SR–BYX–2015–
                                                  (C) Self-Regulatory Organization’s                         If the Commission takes such action, the                52 and should be submitted on or before
                                                  Statement on Comments on the                               Commission shall institute proceedings                  January 20, 2016.
                                                  Proposed Rule Change Received From                         to determine whether the proposed rule                    For the Commission, by the Division of
                                                  Members, Participants or Others                            should be approved or disapproved.                      Trading and Markets, pursuant to delegated
                                                                                                             IV. Solicitation of Comments                            authority.13
                                                    The Exchange has neither solicited
                                                  nor received written comments on the                                                                               Brent J. Fields,
                                                                                                               Interested persons are invited to                     Secretary.
                                                  proposed rule change.                                      submit written data, views and
                                                                                                                                                                     [FR Doc. 2015–32814 Filed 12–29–15; 8:45 am]
                                                  III. Date of Effectiveness of the                          arguments concerning the foregoing,
                                                                                                                                                                     BILLING CODE 8011–01–P
                                                  Proposed Rule Change and Timing for                        including whether the proposal is
                                                  Commission Action                                          consistent with the Act. Comments may
                                                                                                             be submitted by any of the following
                                                     Because the foregoing proposed rule                                                                             SECURITIES AND EXCHANGE
                                                                                                             methods:
                                                  change does not: (A) Significantly affect                                                                          COMMISSION
                                                  the protection of investors or the public                  Electronic Comments
                                                  interest; (B) impose any significant                         • Use the Commission’s Internet                       [Release No. 34–76748; File No. SR–NYSE–
                                                  burden on competition; and (C) by its                      comment form (http://www.sec.gov/                       2015–52]
                                                  terms, become operative for 30 days                        rules/sro.shtml); or
                                                  from the date on which it was filed or                       • Send an email to rule-comments@                     Self-Regulatory Organizations; New
                                                  such shorter time as the Commission                        sec.gov. Please include File No. SR–                    York Stock Exchange LLC; Order
                                                  may designate it has become effective                      BYX–2015–52 on the subject line.                        Approving Proposed Rule Change to
                                                  pursuant to Section 19(b)(3)(A) of the                                                                             the Co-Location Services Offered by
                                                  Act 10 and paragraph (f)(6) of Rule 19b–                   Paper Comments                                          the Exchange (the Offering of a
                                                  4 thereunder,11 the Exchange has                              • Send paper comments in triplicate                  Wireless Connection To Allow Users
                                                  designated this rule filing as non-                        to Secretary, Securities and Exchange                   To Receive Market Data Feeds From
                                                  controversial. The Exchange has given                      Commission, 100 F Street NE.,                           Third Party Markets) and To Reflect
                                                  the Commission written notice of its                       Washington, DC 20549–1090.                              Changes to the Exchange’s Price List
                                                  intent to file the proposed rule change,                                                                           Related to These Services
                                                                                                             All submissions should refer to File No.
                                                  along with a brief description and text
                                                                                                             SR–BYX–2015–52. This file number                        December 23, 2015.
                                                  of the proposed rule change at least five
                                                                                                             should be included on the subject line
                                                  business days prior to the date of filing                                                                          I. Introduction
                                                                                                             if email is used. To help the
                                                  of the proposed rule change, or such
                                                                                                             Commission process and review your                         On October 23, 2015, New York Stock
                                                  shorter time as designated by the
                                                                                                             comments more efficiently, please use
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  Commission.                                                                                                        Exchange LLC (‘‘NYSE’’ or the
                                                                                                             only one method. The Commission will                    ‘‘Exchange’’) filed with the Securities
                                                     The Exchange has requested that the
                                                                                                             post all comments on the Commission’s                   and Exchange Commission (the
                                                  Commission waive the thirty-day
                                                                                                             Internet Web site (http://www.sec.gov/                  ‘‘Commission’’) pursuant to Section
                                                  operative delay so that the proposal may
                                                  become operative as of January 4, 2016.                      12 For purposes of waiving the 30-day operative
                                                                                                                                                                     19(b)(1) 1 of the Securities Exchange Act
                                                                                                             delay, the Commission has considered the proposed
                                                    10 15   U.S.C. 78s(b)(3)(A).                                                                                       13 17   CFR 200.30–3(a)(12).
                                                                                                             rule’s impact on efficiency, competition, and capital
                                                    11 17   CFR 240.19b–4.                                   formation. See 15 U.S.C. 78c(f).                          1 15   U.S.C. 78s(b)(1).



                                             VerDate Sep<11>2014      21:00 Dec 29, 2015   Jkt 238001   PO 00000   Frm 00103   Fmt 4703   Sfmt 4703   E:\FR\FM\30DEN1.SGM      30DEN1


                                                  81610                    Federal Register / Vol. 80, No. 250 / Wednesday, December 30, 2015 / Notices

                                                  of 1934 (the ‘‘Act’’) 2 and Rule 19b–4                   User that chooses this optional service               Exchange represents that the wireless
                                                  thereunder,3 a proposed rule change to                   would be able to receive data feeds from              network offered by the Exchange can be
                                                  amend the co-location services offered                   NASDAQ and BATS Exchange, Inc. over                   made available to an unlimited number
                                                  by the Exchange to include a means for                   a wireless connection. To receive Third               of Users.
                                                  co-located Users to receive market data                  Party Data, the User would enter into a                  The wireless connection would
                                                  feeds from third party markets through                   contract with the relevant third party                provide Users with an alternative means
                                                  a wireless connection. The proposed                      market, which would charge the User                   of connectivity for Third Party Data.
                                                  rule change was published in the                         the applicable market data fees for the               Currently, Users can receive Third Party
                                                  Federal Register on November 12,                         Third Party Data. The Exchange would                  Data through other methods, including,
                                                  2015.4 No comment letters were                           charge the User fees for the wireless                 for example, from another User, through
                                                  received in response to the Notice. This                 connection for the Third Party Data.9                 a telecommunications provider, or over
                                                  order approves the proposed rule                            A User would be charged a $5,000                   the internet protocol (‘‘IP’’) network.11
                                                  change.                                                  non-recurring initial charge for each                 In addition, Users can receive Third
                                                                                                           wireless connection and a monthly                     Party Data from wireless networks
                                                  II. Description of the Proposed Rule                     recurring charge (‘‘MRC’’) that would                 offered by third party vendors. The
                                                  Change                                                   vary depending upon the feed that the                 Exchange represents that there are
                                                     The Exchange proposes to change the                   User opts to receive. If a User purchased             currently at least four third party
                                                  co-location services offered by the                      two wireless connections, it would pay                vendors that offer Users wireless
                                                  Exchange to include a means for Users                    two non-recurring initial charges. The                network connections using wireless
                                                  to receive market data feeds from third                  MRC for a wireless connection to each                 equipment installed on towers and
                                                  party markets (the ‘‘Third Party Data’’)                 of BATS Pitch BZX Gig shaped data,                    buildings near the data center. The
                                                  through a wireless connection.5 In                       DirectEdge EDGX Gig shaped data, and                  Exchange states that its proposed
                                                  addition, the proposed rule change                       NASDAQ BX Totalview-ITCH data will                    wireless connection would traverse
                                                  reflects changes to the Exchange’s Price                 be $6,000; the MRC for a wireless                     wireless connections through a series of
                                                  List related to these co-location services.              connection of NASDAQ Totalview-ITCH                   towers equipped with wireless
                                                     The Exchange proposes to offer the                    data will be $8,500; and the MRC for a                equipment, including a pole on the
                                                  wireless connection to provide Users                     wireless connection of NASDAQ                         grounds of the data center.12 The
                                                  with an alternative means of                             Totalview-ITCH and BX Totalview-                      Exchange states that access to such pole
                                                  connectivity for Third Party Data. As the                ITCH data will be $12,000. The                        or the roof is not required for third
                                                  Exchange notes, wireless connections                     Exchange proposes to waive the first                  parties to establish wireless networks
                                                  involve beaming signals through the air                  month’s MRC, to allow Users to test the               that can compete with Exchange’s
                                                  between antennas that are within sight                   receipt of the feed(s) for a month before             proposed service and, in particular,
                                                  of one another.6 Because the signals                     incurring any MRCs.                                   represents that based on the information
                                                  travel a straight, unimpeded line, and                      The wireless connections would                     available to it, the proposed wireless
                                                  because light waves travel faster through                include the use of one port for                       connection would provide data at the
                                                  air than through glass (fiber optics),                   connectivity to the Third Party Data. A               same or similar speed, and at the same
                                                  wireless messages have lower latency                     User will only require one port to                    or similar cost, as existing wireless
                                                  than messages travelling through fiber                   connect to the Third Party Data,                      networks, thereby enhancing
                                                  optics.7                                                 irrespective of how many of the five                  competition.13
                                                     Under the proposed rule change, the                   wireless connections it orders. If a User                The wireless connection to the Third
                                                  Exchange would utilize a network                         that has more than one wireless                       Party Data is expected to be available no
                                                  vendor to provide a wireless connection                  connection wishes to use more than one                later than March 1, 2016. The Exchange
                                                  to the Third Party Data through wireless                 port to connect to the Third Party                    will announce the date that the wireless
                                                  connections from the Exchange access                     Data,10 the Exchange proposes to make                 connection to the Third Party Data will
                                                  centers in Secaucus and Carteret, New                    such additional ports available for a                 be available through a customer notice.
                                                  Jersey, to its data center in Mahwah,                    monthly fee per port of $3,000.
                                                  New Jersey, through a series of towers                      The Exchange represents that there is              III. Discussion and Commission
                                                  equipped with wireless equipment.8 A                     limited bandwidth available on the                    Findings
                                                                                                           wireless connection for data feeds from                  After careful review, the Commission
                                                    2 15 U.S.C. 78a.                                       third parties. As a result, the Exchange              finds that the proposed rule change is
                                                    3 17 CFR 240.19b–4.                                    has decided to offer as Third Party Data              consistent with the requirements of the
                                                    4 See Securities Exchange Act Release No. 76374
                                                                                                           only the data feeds that are in high                  Act and the rules and regulations
                                                  (November 5, 2015), 80 FR 70021 (November 12,
                                                  2015) (‘‘Notice’’).                                      demand from Users. Although                           thereunder applicable to a national
                                                    5 For purposes of the Exchange’s co-location           constrained by bandwidth with respect                 securities exchange.14 In particular, the
                                                  services, a ‘‘User’’ means any market participant        to the number of feeds it can carry, the              Commission finds that the proposed
                                                  that requests to receive co-location services directly                                                         rule change is consistent with Section
                                                  from the Exchange. See Securities Exchange Act
                                                  Release No. 76008 (September 29, 2015), 80 FR
                                                                                                           78 FR 6842 (January 31, 2013) (SR–NASDAQ–2012–        6(b)(4) of the Act,15 which requires that
                                                                                                           119) (approving a proposed rule change to establish
                                                  60190 (October 5, 2015) (SR–NYSE–2015–40). As            a new optional wireless connectivity for co-located      11 The IP network is a local area network available
                                                  specified in the Price List, a User that incurs co-      clients).
                                                  location fees for a particular co-location service          9 A User would only receive the Third Party Data
                                                                                                                                                                 in the data center. See Securities Exchange Act
                                                  pursuant thereto would not be subject to co-location                                                           Release No. 74222 (February 6, 2015), 80 FR 7888
                                                                                                           for which it had entered into a contract. For
                                                  fees for the same co-location service charged by the                                                           (February 12, 2015) (SR–NYSE–2015–05) (notice of
                                                                                                           example, a User that contracted with NASDAQ for
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  Exchange’s affiliates NYSE MKT LLC and NYSE                                                                    filing and immediate effectiveness of proposed rule
                                                                                                           the NASDAQ Totalview-ITCH data feed but did not
                                                  Arca, Inc. See Securities Exchange Act Release No.                                                             change to include IP network connections).
                                                                                                           contract to receive any other Third Party Data           12 See Notice, supra note 4 at 70023.
                                                  70206 (August 15, 2013), 78 FR 51765 (August 21,         would receive only the NASDAQ Totalview-ITCH
                                                  2013) (SR–NYSE–2013–59).                                 data feed through its wireless connection.               13 See Notice, supra note 4 at 70022–23.
                                                    6 See Notice, supra note 4 at 70021.                                                                            14 In approving this proposed rule change, the
                                                                                                              10 For example, a User with two wireless
                                                    7 See id.                                                                                                    Commission notes that it has considered the
                                                                                                           connections for Third Party Data may opt to
                                                    8 The NASDAQ Stock Market LLC (‘‘NASDAQ’’)             purchase an additional port in order to route the     proposed rule’s impact on efficiency, competition,
                                                  offers a similar wireless service. See Securities        options and equity data it receives to different      and capital formation. See 15 U.S.C. 78c(f).
                                                  Exchange Act Release No. 68735 (January 25, 2013),       cabinets.                                                15 15 U.S.C. 78f(b)(4).




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                                                                              Federal Register / Vol. 80, No. 250 / Wednesday, December 30, 2015 / Notices                                                81611

                                                  the rules of a national securities                       connections are reasonable because the                    For the Commission, by the Division of
                                                  exchange provide for the equitable                       Exchange will incur certain costs,                      Trading and Markets, pursuant to delegated
                                                  allocation of reasonable dues, fees and                  including costs related to the data center              authority.21
                                                  other charges among its members and                      facility, hardware and equipment and                    Brent J. Fields,
                                                  issuers and other persons using its                      costs related to personnel required for                 Secretary.
                                                  facilities, and with Section 6(b)(5) of the              initial installation and monitoring,                    [FR Doc. 2015–32817 Filed 12–29–15; 8:45 am]
                                                  Act,16 which requires, among other                       support and maintenance of such                         BILLING CODE 8011–01–P
                                                  things, that the rules of a national                     services. The Exchange states that the
                                                  securities exchange be designed to                       costs associated with the wireless
                                                  promote just and equitable principles of                 connections are incrementally higher                    SECURITIES AND EXCHANGE
                                                  trade, to remove impediments to and                      than fiber optics-based solutions due to                COMMISSION
                                                  perfect the mechanism of a free and                      the expense of the wireless equipment,                  [Release No. IC–31949]
                                                  open market and a national market                        cost of installation and testing and
                                                  system and, in general, to protect                       ongoing maintenance of the network,                     Notice of Applications for
                                                  investors and the public interest, and                   and that fees also reflect the benefit                  Deregistration Under Section 8(f) of the
                                                  not be designed to permit unfair                         received by Users in terms of lower                     Investment Company Act of 1940
                                                  discrimination between customers,                        latency over the fiber optics option. In
                                                  issuers, brokers, or dealers. In addition,                                                                       December 23, 2015.
                                                                                                           addition, the Exchange believes that the
                                                  the Commission finds that the proposed                   proposed waiver of the first month’s                      The following is a notice of
                                                  rule change is consistent with Section                   MRC is reasonable as it would allow                     applications for deregistration under
                                                  6(b)(8) of the Act,17 which requires that                Users to test the receipt of the feed(s) for            section 8(f) of the Investment Company
                                                  the rules of the exchange not impose                     a month before incurring any monthly                    Act of 1940 for the month of December
                                                  any burden on competition not                            recurring fees and may act as an                        2015. A copy of each application may be
                                                  necessary or appropriate in furtherance                  incentive to Users to utilize the new                   obtained via the Commission’s Web site
                                                  of the purposes of the Act.                                                                                      by searching for the file number, or for
                                                                                                           service.
                                                     The Commission believes that the                                                                              an applicant using the Company name
                                                  Exchange’s proposal to provide this                         The Commission also finds that                       box, at http://www.sec.gov/search/
                                                  additional connectivity option is                        consistent with Section 6(b)(8) of the                  search.htm or by calling (202) 551–
                                                  consistent with the requirement of                       Act the proposed rule change does not                   8090. An order granting each
                                                  Section 6(b)(5) of the Act. The                          impose a burden on competition not                      application will be issued unless the
                                                  Commission believes that the proposal                    necessary or appropriate in furtherance                 SEC orders a hearing. Interested persons
                                                  is not designed to permit unfair                         of the purposes of the Act. The                         may request a hearing on any
                                                  discrimination between customers,                        Exchange states that Users currently can                application by writing to the SEC’s
                                                  issuers, brokers, or dealers because the                 receive Third Party Data from                           Secretary at the address below and
                                                  Exchange makes wireless connectivity                     competing wireless networks offered by                  serving the relevant applicant with a
                                                  available to all Users on an equal basis.                third party vendors, including at least                 copy of the request, personally or by
                                                  All Users that voluntarily select this                   four third party vendors that offer Users               mail. Hearing requests should be
                                                  service option will be charged the same                  wireless network connections using                      received by the SEC by 5:30 p.m. on
                                                  amount for the same services, and there                  wireless equipment installed on towers                  January 19, 2016, and should be
                                                  would be no differentiation among                        and buildings near the data center. The                 accompanied by proof of service on
                                                  Users with regard to the fees charged for                Exchange represents, based on the                       applicants, in the form of an affidavit or,
                                                  the service. Further, the Exchange                       information available to it, that the                   for lawyers, a certificate of service.
                                                  represents that Users of the new                         proposed wireless connection would                      Pursuant to Rule 0–5 under the Act,
                                                  wireless connection would not receive                    provide data at the same or similar                     hearing requests should state the nature
                                                  Third Party Data that is not available to                speed, and at the same or similar cost,                 of the writer’s interest, any facts bearing
                                                  all Users. In addition, the Exchange                     as existing wireless networks, thereby                  upon the desirability of a hearing on the
                                                  represents that Users that do not opt to                 enhancing competition.19 The Exchange                   matter, the reason for the request, and
                                                  utilize the Exchange’s wireless                          also notes that the proposed wireless                   the issues contested. Persons who wish
                                                  connections would still be able to obtain                connection would compete not just with                  to be notified of a hearing may request
                                                  Third Party Data through other methods,                  other wireless connections, but also                    notification by writing to the
                                                  such as from wireless networks offered                   with fiber optic networks, which may be                 Commission’s Secretary.
                                                  by third party vendors, other Users,                     more attractive to some Users as they                   ADDRESSES: The Commission: Secretary,
                                                  through telecommunications providers,                    are more reliable and less susceptible to               U.S. Securities and Exchange
                                                  or over the IP network.                                  weather conditions. For these reasons,                  Commission, 100 F Street NE.,
                                                     The Commission also believes that the                 the Commission does not believe that                    Washington, DC 20549–1090.
                                                  proposed rule change is consistent with                  the proposed rule change imposes a                      FOR FURTHER INFORMATION CONTACT: Hae-
                                                  Section 6(b)(4) of the Act.18 All Users                  burden on competition not necessary or                  Sung Lee, Attorney-Adviser, at (202)
                                                  that voluntarily select this service                     appropriate in furtherance of the                       551–7345 or Chief Counsel’s Office at
                                                  option will be charged the same amount                   purposes of the Act.                                    (202) 551–6821; SEC, Division of
                                                  for the same services, and there would                   IV. Conclusion                                          Investment Management, Chief
                                                  be no differentiation among Users with                                                                           Counsel’s Office, 100 F Street NE.,
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  regard to the fees charged for the                         It is therefore ordered, pursuant to                  Washington, DC 20549–8010.
                                                  service. The Commission notes the                        Section 19(b)(2) of the Act,20 that the
                                                                                                                                                                   College and University Facility Loan
                                                  Exchange’s representation that the fees                  proposed rule change (SR–NYSE–2015–
                                                                                                                                                                   Trust One [File No. 811–05291]
                                                  associated with providing the wireless                   52) be, and it hereby is, approved.
                                                                                                                                                                     Summary: Applicant, a closed-end
                                                    16 15 U.S.C. 78f(b)(5).                                  19 See   supra notes 12 and 13 and accompanying       investment company, seeks an order
                                                    17 15 U.S.C. 78f(b)(8).                                text.
                                                    18 15 U.S.C. 78f(b)(4).                                  20 15   U.S.C. 78s(b)(2).                               21 17   CFR 200.30–3(a)(12).



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Document Created: 2015-12-30 03:16:28
Document Modified: 2015-12-30 03:16:28
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 81609 

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