81 FR 12981 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1, Establishing Procedures for the Allocation of Cages to Its Co-Located Users, Including the Waiver of Certain Fees, and To Amend the Visitor Security Escort Requirements and Fee
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 48 (March 11, 2016)
Federal Register Volume 81, Issue 48 (March 11, 2016)
| Page Range | 12981-12986 | |
| FR Document | 2016-05435 |
[Federal Register Volume 81, Number 48 (Friday, March 11, 2016)] [Notices] [Pages 12981-12986] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-05435] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77304; File No. SR-NYSEMKT-2016-17] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1, Establishing Procedures for the Allocation of Cages to Its Co-Located Users, Including the Waiver of Certain Fees, and To Amend the Visitor Security Escort Requirements and Fee March 7, 2016. Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on February 23, 2016, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') 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. On March 1, 2016, the Exchange filed Amendment No. 1 to the proposed rule change.\4\ The Commission is publishing this notice to solicit comments on the proposed rule change, as modified by Amendment No. 1, from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C.78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. \4\ In Amendment No. 1, the Exchange clarified the proposal to specify that the visitor escort fee is equitable because all Users of the Exchange's Data Center would be charged the same fee. The Exchange also clarified the proposal to specify that while an individual User is on the waitlist for a cabinet, it will be granted a fee waiver for 2 bundles of 24 cross connects to be used to connect that User's non-contiguous cabinets. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to establish procedures for the allocation of cages to its co-located Users, including the waiver of certain fees, and to amend the visitor security escort requirements and fee. The Exchange proposes to amend the NYSE MKT Equities Price List (``Price List'') and the NYSE Amex Options Fee Schedule (``Fee Schedule'') to reflect the changes. The proposed change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. [[Page 12982]] 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 Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to establish procedures for the allocation of cages to Users, including the waiver of certain fees, and to amend the visitor security escort requirements.\5\ The Exchange proposes to amend the Price List and Fee Schedule to reflect the changes. --------------------------------------------------------------------------- \5\ The Exchange initially filed rule changes relating to its co-location services with the Securities and Exchange Commission (``Commission'') in 2010. See Securities Exchange Act Release No. 62961 (September 21, 2010), 75 FR 59299 (September 27, 2010) (SR- NYSEAmex-2010-80) (the ``Original Co-location Filing''). The Exchange operates a data center in Mahwah, New Jersey (the ``Data Center'') from which it provides co-location services to Users. --------------------------------------------------------------------------- Proposed Cage Allocation Procedure A User is able to purchase a cage to house its cabinets within the Data Center.\6\ A cage would typically be purchased by a User that has several cabinets within the Data Center and wishes to arrange its cabinets contiguously while also enhancing privacy around its cabinets. The Exchange offers three sizes of cages corresponding to the number of cabinets housed therein, and charges fees for the cages based on the size.\7\ The physical footprint of each cage is greater than that of the cabinets that it houses, as each cage is constructed so as to include aisles around the purchasing User's cabinets, for accessibility and in compliance with safety regulations.\8\ Accordingly, in order to provide a User with a cage, the Data Center must have sufficient contiguous open space available for the cage. The Exchange allocates cages on a first come/first serve basis. --------------------------------------------------------------------------- \6\ 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, a ``Hosting User'' means a User that hosts a Hosted Customer in the User's co-location space, and a ``Hosted Customer'' means a customer of a Hosting User that is hosted in a Hosting User's co-location space. See Securities Exchange Act Release No. 76009 (September 29, 2015), 80 FR 60213 (October 5, 2015) (SR-NYSEMKT-2015-67). As specified in the Price List and the Fee Schedule, 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 New York Stock Exchange LLC and NYSE Arca, Inc. See Securities Exchange Act Release No. 70176 (August 13, 2013), 78 FR 50471 (August 19, 2013) (SR-NYSEMKT-2013-67. \7\ See Securities Exchange Act Release No. 67665 (August 15, 2012), 77 FR 50734 (August 22, 2012) (SR-NYSEMKT-2012-11) (``2012 Release''). A User must have at least two cabinets in the Data Center to purchase a cage. See Securities Exchange Act Release No. 72719 (July 30, 2014), 79 FR 45502 (August 5, 2014) (SR-NYSEMKT- 2014-61) (``2014 Release''). \8\ For example, a cage for 20 cabinets takes up as much floor space as 33 cabinets. --------------------------------------------------------------------------- The Data Center opened in 2010, and at that time, the Exchange represented that it offers co-location space based on availability and that it had sufficient space in the Data Center to accommodate demand on an equitable basis for the foreseeable future.\9\ The Exchange continues to believe that there is sufficient space in the Data Center to accommodate demand. --------------------------------------------------------------------------- \9\ See Original Co-Location Filing, at 59299. --------------------------------------------------------------------------- However, much of the space currently available for co-location is in smaller segments, resulting from an increasing number of Users, multiple moves within the Data Center, and changes to Users' space requirements--both increases and decreases--since 2010. Accordingly, in 2015, the Exchange determined that, to continue to be able to meet its obligation to accommodate demand, and in particular to make available more contiguous, larger spaces for new and existing Users, it would exercise its right to move some Users' equipment within the Data Center (the ``Migration'').\10\ The Exchange put procedures in place to manage the process for the Migration, and is implementing them. --------------------------------------------------------------------------- \10\ See Securities Exchange Act Release No. 76268 (October 26, 2015), 80 FR 66947 (October 30, 2015) SR-NYSEMKT-2015-70 (``Migration Release''). --------------------------------------------------------------------------- While the Migration will make available more contiguous, larger spaces for new and existing Users, the Exchange believes that even after the Migration such contiguous open space will be limited, and may become more limited over time. Accordingly, the Exchange proposes to put procedures in place for the allocation of cages if the available open contiguous space in the Data Center is not sufficient to house a new cage or the open contiguous space available is sufficiently limited that the Exchange cannot both provide new cages and satisfy all User demand for other co-location services. The proposed procedures are as follows:The Exchange will place Users seeking new cages on a waitlist. The order of Users on the list will be based on the date the Exchange receives signed orders for the cages from each User. Once the list is established, Users, on a rolling basis, will be allocated a cage each time one becomes available.\11\ --------------------------------------------------------------------------- \11\ A cage may become available, for example, if a User terminates use of an existing cage or if contiguous cabinets become vacant, opening up contiguous space. The Exchange believes that the proposed procedures are consistent with the NASDAQ procedures for allocating cabinets if NASDAQ's inventory shrinks to zero. See Securities Exchange Act Release No. 62397 (June 28, 2010), 75 FR 38860 (July 6, 2010) (SR-NASDAQ-2010-019). --------------------------------------------------------------------------- If a cage becomes available and the User that is at the top of the waitlist turns it down because it requested a different size cage, the Exchange will offer the available cage to the next Users on the list, in order, until a User accepts it. A User that turns down a cage because it is not the correct size will remain on the waitlist. A User that turns down a cage that is the size that it requested will be removed from the waitlist. If a User requests two cages, after receiving the first cage it will move to the bottom of the waitlist. In connection with the above procedure, the Exchange proposes to waive certain fees for Users that have requested a cage and have been added to the waitlist pursuant to the allocation procedure. The Exchange expects that, while on the waitlist for a cage or for a larger cage, a User may have to use non-contiguous cabinets and/or cages, in which case it would connect the cabinets with cross connects, which are fiber connections used to connect cabinets within the Data Center.\12\ In such circumstances, the Exchange proposes to waive the initial and monthly fee for two bundles of 24 cross connects between the User's non- [[Page 12983]] contiguous cabinets. Once the User is allocated a cage through the allocation procedure or is no longer on the waitlist, the Exchange would cease to waive the fee. --------------------------------------------------------------------------- \12\ A User is able to purchase cross connects individually or in bundles (i.e., multiple cross connects within a single sheath) of six, 12, 18 or 24 cross connects. The Commission approved the fee for cross connects between a single User's cabinets within the data center in the Original Co-Location Filing. See Original Co-Location Filing, at 59299. The use of cross connects was subsequently revised to allow each User to purchase cross connects between its cabinet(s) and the cabinets of separate Users or a non-User's equipment within the Data Center. See 2012 Release, at 50735, and Securities Exchange Act Release No. 74220 (February 6, 2015), 80 FR 7894 (February 12, 2015) (SR-NYSEMKT-2015-08). The Exchange notes that a User with a cage may request a new cage, either to add a second cage or to change cages. In such a case, the cross connects would be between the cabinets within the cage and the non-contiguous cabinets outside the cage. --------------------------------------------------------------------------- As noted above, a User that turns down a cage that is the size that it requested will be removed from the waitlist. If such User asks to be added back onto the waitlist, the Exchange will add the User to the bottom of the waitlist, but will not provide the proposed fee waiver a second time. The Exchange proposes to amend the Price List and Fee Schedule to add a new General Note 3 to the fee to furnish and install a bundle of 24 cross connects, as follows: The initial and monthly charge for 2 bundles of 24 cross connects will be waived for Users that are waitlisted for a cage for the duration of the waitlist period, provided that the cross connects may only be used to connect the Users' non-contiguous cabinets. The charge will no longer be waived once a User is removed from the waitlist. If a waitlist is created, a User seeking a new cage will be placed on the waitlist based on the date a signed order for the cage is received. A User that turns down a cage because it is not the correct size will remain on the waitlist. A User that requests to be removed or that turns down a cage that is the size that it requested will be removed from the waitlist. A User that is removed from the waitlist but subsequently requests a cage will be added back to the bottom of the waitlist, provided that, if the User was removed from the waitlist because it turned down a cage that is the size that it requested, it will not receive a second waiver of the charge. Visitor Security Escorts Currently, all User representatives are required to have a visitor security escort during visits to the Data Center, including User representatives who have a permanent Data Center site access badge.\13\ The Exchange proposes to amend the description of the visitor security escort fee to provide that it would not apply to User representatives visiting the User's cage and to provide that the cost is $75 per visit. --------------------------------------------------------------------------- \13\ See Securities Exchange Act Release No. 62731 (August 16, 2010), 75 FR 51515 (August 20, 2010) (SR-NYSEAmex-2010-80) (notice of proposed rule change amending price list to reflect fees charged for co-location services); see also Original Co-location Filing, at 59299. Fees for visitor security escorts for the move of a User's equipment within the Data Center are waived when incurred in connection with such a move required by the Exchange as part of the Migration. See Migration Release, at 66945. --------------------------------------------------------------------------- The Exchange requires visitor security escorts for security purposes, primarily to ensure that a visitor does not interfere with the cabinets of other Users or Exchange equipment. The Exchange believes it is not necessary to have a User representative accompanied by a visitor security escort when the representative is visiting the User's cage, because the User representative would only have access to that User's cabinets, which would be in the confined area within the locked cage. The User representative would not have access to the cabinets of other Users or Exchange equipment, which are locked as well. By comparison, Users that do not have cages share colocation space with other Users. While such spaces are locked, more than one User may have cabinets within a given locked space, and so a visitor security escort is warranted. The Exchange proposes to make several additional non-substantive changes to the description of the visitor security escort fee, to reduce redundancy and increase clarity. The current description is as follows: NYSE employee escort, which is required during User visits to the data center. (Note: all User representatives are required to have a visitor security escort during visits to the data center, including User representatives who have a permanent data center site access badge.) The proposed description of the visitor escort fee would read as follows: All User representatives are required to be accompanied by a visitor security escort during visits to the data center unless visiting the User's cage. Requirement includes User representatives who have a permanent data center site access badge. The Exchange proposes to remove the first clause, with its reference to the visitor security escort as an ``NYSE employee escort,'' because it is redundant with the parenthetical and because the reference to ``NYSE employees'' could be potentially confusing, given that not just the New York Stock Exchange LLC but also its affiliates, the Exchange and NYSE Arca, Inc., provide co-location services at the Data Center. In addition, the Exchange proposes to use ``accompanied by a visitor security escort'' rather than ``have a visitor security escort'' because it believes that ``accompanied'' makes it more clear that the escort will accompany the User representative. The Price List and Fee Schedule include a Visitor Security Escort fee of $75 per hour. The Exchange proposes to amend the Price List and Fee Schedule to charge Users $75 per visit for such visitor security escorts. Based on the Exchange's experience, currently many of the escorted visits last an hour or less, and for Users that do not have a cage, escorted visits are typically about an hour. General As is the case with all Exchange co-location arrangements, (i) neither a User nor any of the User's customers would be permitted to submit orders directly to the Exchange unless such User or customer is a member organization, a Sponsored Participant or an agent thereof (e.g., a service bureau providing order entry services); (ii) use of the co-location services proposed herein would be completely voluntary and available to all Users on a non-discriminatory basis; \14\ and (iii) a User would only incur one charge for the particular co-location service described herein, regardless of whether the User connects only to the Exchange or to the Exchange and one or both of its affiliates.\15\ --------------------------------------------------------------------------- \14\ As is currently the case, Users that receive co-location services from the Exchange will not receive any means of access to the Exchange's trading and execution systems that is separate from, or superior to, that of others with access to the Exchange's trading and execution systems. In this regard, all orders sent to the Exchange enter the Exchange's trading and execution systems through the same order gateway, regardless of whether the sender is co- located in the Data Center or not. In addition, co-located Users do not receive any market data or data service product that is not available to users that have access to the Exchange's trading and execution systems, although Users that receive co-location services normally would expect reduced latencies in sending orders to, and receiving market data from, the Exchange. \15\ See SR-NYSEMKT-2013-67, supra note 5 at 50471. The Exchange's affiliates have also submitted substantially the same proposed rule change. See SR-NYSE-2016-13 and SR-NYSEArca-2016-21. --------------------------------------------------------------------------- The proposed change is not otherwise intended to address any other issues relating to co-location services and/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,\16\ in general, and furthers the objectives of sections 6(b)(5) of the Act,\17\ 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 [[Page 12984]] remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general, to protect investors and the public interest and because it is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78f(b). \17\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed procedure for allocating cages is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers because the proposal would establish rational, objective procedures that would be applied uniformly by the Exchange to Users that requested cages and would not unfairly discriminate among similarly situated Users of co-location services. All Users seeking to purchase a cage would be subject to the same procedures. The Exchange believes that the proposed procedure would serve to reduce any potential for confusion on how cages would be allocated should it become necessary. In addition, the proposed allocation procedure would assist the Exchange to ensure that it has sufficient space in the Data Center to accommodate demand for co- location services on an equitable basis for the foreseeable future. The Exchange believes that the proposal to waive fees for two bundles of 24 cross connects between a waitlisted User's non-contiguous cabinets is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers because the waiver would be applied uniformly by the Exchange to all waitlisted Users and would not unfairly discriminate among similarly situated Users of co-location services. A waitlisted User would only require cross connects between its non-contiguous cabinets due to the waitlist. If, instead of being put on the waitlist, the User had received the cage it requested, the User would not require the cross connects. In addition, the Exchange proposes that the cross connects could only be used to connect the User's non-contiguous cabinets. The waiver would help to alleviate the inconvenience for the waitlisted User of having cabinets in non- contiguous space by directly addressing, for the time period during which the User is waitlisted, a cost directly related to being on the waitlist. Once the User was allocated a cage through the allocation procedure or was removed from the waitlist, the Exchange would cease to waive the fee. The Exchange believes that the proposed amendment to the visitor security escort fee is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers because the escort fee would be applied uniformly by the Exchange to all Users unless a User representative was visiting the User's cage, and would not unfairly discriminate among similarly situated Users of co-location services. The Exchange also believes that the proposed rule change is consistent with section 6(b)(4),\18\ in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78f(b)(4), (5). --------------------------------------------------------------------------- The Exchange believes that the proposed procedure for allocating cages is equitable and not unfairly discriminatory because the cages are offered simply as a convenience to Users. A User does not require a cage to trade on the Exchange, and usage of a cage has no effect on a User's orders going to, or trade data coming from, the Exchange, or the User's ability to utilize other co-location services. The proposed allocation procedure would assist the Exchange to ensure that it has sufficient space in the Data Center to accommodate demand for co- location services on an equitable basis for the foreseeable future. The Exchange believes that the proposal to waive fees for two bundles of 24 cross connects between a waitlisted User's non-contiguous cabinets is equitable and not unfairly discriminatory because a waitlisted User would only require the cross connects due to the waitlist. If, instead of being put on the waitlist, the User had received the cage it requested, the User would not require the cross connects. In addition, the Exchange proposes that the cross connects could only be used to connect the User's non-contiguous cabinets. The waiver would help to alleviate the inconvenience for the waitlisted User of having cabinets in non-contiguous space by directly addressing, for the time period during which the User is waitlisted, a cost directly related to being on the waitlist. Once the User was allocated a cage through the allocation procedure or was removed from the waitlist, the Exchange would cease to waive the fee. The Exchange believes that the proposed amendment to the visitor security escort fee is equitable and not unfairly discriminatory because the escort fee would be applied uniformly by the Exchange to all Users unless a User representative was visiting the User's cage, and would not unfairly discriminate among similarly situated Users of co-location services. The same requirements and fees would be applied uniformly to all Users. The Exchange believes that the amendment is equitable because the security purposes that lead the Exchange to require visitor security escorts, namely to ensure that a visitor does not interfere with the cabinets of other Users or Exchange equipment, are not present when a User representative is visiting the User's cage, because the User representative would only have access to the Users' cabinets, which would be in the confined area within the locked cage. The User representative would not have access to the cabinets of other Users or Exchange equipment, which are locked as well. The Exchange believes that the proposed allocation procedure for cages is reasonable because the proposal would establish rational, objective procedures that would be applied uniformly by the Exchange to Users. All Users seeking to purchase a cage would be subject to the same procedures. In addition, the Exchange believes that the proposed procedure would serve to reduce any potential for confusion on how cages would be allocated should it become necessary. The Exchange believes that the proposal to waive fees for two bundles of 24 cross connects between a waitlisted User's non-contiguous cabinets is reasonable because the waitlisted User would only require the cross connects due to the waitlist. If, instead of being put on the waitlist, the User had received the cage it requested, the User would not require the cross connects. In addition, the Exchange proposes that the cross connects could only be used to connect the User's non- contiguous cabinets. The waiver would help to alleviate the inconvenience for the waitlisted User of having cabinets in non- contiguous space by directly addressing, for the time period during which the User is waitlisted, a cost directly related to being on the waitlist. In addition, the Exchange believes that the proposal is reasonable because once the User was allocated a cage through the allocation procedure or was removed from the waitlist, the Exchange would cease to waive the fee. The Exchange also believes that, if a User is removed from the waitlist because it turned down a cage that is the size that it requested, it is reasonable not to provide the User a second waiver of the fee if the User subsequently requests a cage. To provide a second waiver would create an incentive for a User to use the waitlist to avoid paying the waived fees for cross connects despite being given an opportunity to get off the waitlist. [[Page 12985]] The Exchange believes that the proposed amendments to the visitor security escort fee are reasonable, because the security purposes that lead the Exchange to visitor security escorts, namely to ensure that a visitor does not interfere with the cabinets of other Users or Exchange equipment, are not present when a User representative is visiting the User's cage, because the User representative would only have access to the Users' cabinets, which would be in the confined area within the locked cage. The User representative would not have access to the cabinets of other Users or Exchange equipment, which are locked as well. Finally, the Exchange believes that its non-substantive changes to the description of the visitor security escort fee are reasonable, because they would reduce redundancy and increase clarity in the description. The Exchange believes that the proposed rate of $75 per visit for the Visitor Security Escort, as opposed to $75 per hour, is reasonable because all Users would be subject to the same fee. The Exchange believes that charging a flat fee per visit is consistent with fees for other services performed by data center staff, including Change Fees and Initial Install Services.\19\ The proposed rate of $75 per visit for the Visitor Security Escort would be a fee reduction for any visit that lasted more than an hour, and so it would reduce the burden placed on Users that are still subject to the fee. --------------------------------------------------------------------------- \19\ See 2012 Release, supra note 6, at 50735, and 2014 Release, supra note 6, at 45503. Change Fees are charged per request and Initial Install Services fees are charged per cabinet or eight-rack unit in a partial cabinet. --------------------------------------------------------------------------- For the reasons above, the proposed changes do not unfairly discriminate between or among market participants that are otherwise capable of satisfying any applicable co-location fees, requirements, terms and conditions established from time to time by the Exchange. Finally, the Exchange believes that it is subject to significant competitive forces, as described below in the Exchange's statement regarding the burden on competition. For 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,\20\ 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. The Exchange believes that the proposed allocation procedures for cages would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed allocation procedure would assist the Exchange to ensure that it has sufficient space in the Data Center to accommodate demand for co-location services on an equitable basis for the foreseeable future. Similarly, the Exchange believes that the proposed fee waiver would facilitate the proposed allocation procedure, which would in turn facilitate use of the Data Center and provide access to the Data Center to current and additional market participants. In addition, because a User does not require a cage to trade on the Exchange, and usage of a cage has no effect on a User's orders going to, or trade data coming from, the Exchange, or the User's ability to utilize other co-location services, the Exchange believes that being waitlisted for a cage will not impose a burden on a User's ability to compete. The Exchange believes that the proposed allocation procedure would establish rational, objective procedures that would reduce any potential for User confusion on how cages would be allocated should it become necessary. --------------------------------------------------------------------------- \20\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange believes that the proposed amendment to the visitor security escort fee would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act because it would eliminate an unnecessary requirement, as the security purposes that lead the Exchange to visitor security escorts are not present when a User representative is visiting the User's cage, because the User representative would only have access to the Users' cabinets, which would be in the confined area within the locked cage. The User representative would not have access to the cabinets of other Users or Exchange equipment, which are locked as well. The proposed rate of $75 per visit for the Visitor Security Escort would be a fee reduction for any visit that lasted more than an hour, and so it would reduce the burden placed on Users that are still subject to the fee. Finally, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. In such an environment, the Exchange must continually review, and consider adjusting, its services and related fees and credits to remain competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed rule change reflects this competitive environment. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission shall: (a) By order approve or disapprove such proposed rule change, or (b) institute proceedings to determine whether the proposed rule change should be disapproved. 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 (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-NYSEMKT-2016-17 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 No. SR-NYSEMKT-2016-17. 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 Web site (http://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 [[Page 12986]] those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site 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 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-NYSEMKT-2016-17, and should be submitted on or before April 1, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\21\ --------------------------------------------------------------------------- \21\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-05435 Filed 3-10-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 48 / Friday, March 11, 2016 / Notices 12981
B. Self-Regulatory Organization’s Paper Comments: SECURITIES AND EXCHANGE
Statement on Burden on Competition COMMISSION
• Send paper comments in triplicate
The Exchange does not believe that to Brent J. Fields, Secretary, Securities
the proposed rule change will impose [Release No. 34–77304; File No. SR–
and Exchange Commission, 100 F Street
any burden on competition that is not NYSEMKT–2016–17]
NE., Washington, DC 20549–1090.
necessary or appropriate in furtherance
of the purposes of the Act. The All submissions should refer to File Self-Regulatory Organizations; NYSE
proposed rule change is not designed to Number SR–NYSE–2016–18. This file MKT LLC; Notice of Filing of Proposed
address any competitive issues, but number should be included on the Rule Change, as Modified by
rather to provide for how the Exchange subject line if email is used. To help the Amendment No. 1, Establishing
would determine an Official Closing Commission process and review your Procedures for the Allocation of Cages
Price for Exchange-listed securities if it comments more efficiently, please use to Its Co-Located Users, Including the
is impaired and cannot conduct a only one method. The Commission will Waiver of Certain Fees, and To Amend
closing transaction due to a systems or post all comments on the Commission’s the Visitor Security Escort
technical issue. The proposal has been Internet Web site (http://www.sec.gov/ Requirements and Fee
crafted with input from market rules/sro.shtml). Copies of the
March 7, 2016.
participants, Nasdaq, and the SIPs, and submission, all subsequent
is designed to reduce the burden on amendments, all written statements Pursuant to section 19(b)(1) 1 of the
competition by having similar back-up with respect to the proposed rule Securities Exchange Act of 1934 (the
procedures across all primary listing change that are filed with the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
exchanges if such exchange is is [sic] Commission, and all written notice is hereby given that, on February
impaired and cannot conduct a closing communications relating to the 23, 2016, NYSE MKT LLC (the
transaction. proposed rule change between the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
C. Self-Regulatory Organization’s Commission and any person, other than the Securities and Exchange
Statement on Comments on the those that may be withheld from the Commission (the ‘‘Commission’’) the
Proposed Rule Change Received From public in accordance with the proposed rule change as described in
Members, Participants, or Others provisions of 5 U.S.C. 552, will be Items I and II below, which Items have
available for Web site viewing and been prepared by the self-regulatory
No written comments were solicited printing in the Commission’s Public organization. On March 1, 2016, the
or received with respect to the proposed Reference Room, 100 F Street NE., Exchange filed Amendment No. 1 to the
rule change. proposed rule change.4 The Commission
Washington, DC 20549, on official
III. Date of Effectiveness of the business days between the hours of is publishing this notice to solicit
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the comments on the proposed rule change,
Commission Action filing also will be available for as modified by Amendment No. 1, from
inspection and copying at the principal interested persons.
Within 45 days of the date of
office of the Exchange. All comments I. Self-Regulatory Organization’s
publication of this notice in the Federal
received will be posted without change; Statement of the Terms of the Substance
Register or up to 90 days (i) as the
Commission may designate if it finds the Commission does not edit personal of the Proposed Rule Change
such longer period to be appropriate identifying information from
and publishes its reasons for so finding submissions. You should submit only The Exchange proposes to establish
or (ii) as to which the self-regulatory information that you wish to make procedures for the allocation of cages to
organization consents, the Commission available publicly. All submissions its co-located Users, including the
will: should refer to File Number SR–NYSE– waiver of certain fees, and to amend the
2016–18 and should be submitted on or visitor security escort requirements and
(A) By order approve or disapprove
the proposed rule change, or before April 1, 2016. fee. The Exchange proposes to amend
For the Commission, by the Division of the NYSE MKT Equities Price List
(B) institute proceedings to determine (‘‘Price List’’) and the NYSE Amex
whether the proposed rule change Trading and Markets, pursuant to delegated
authority.11 Options Fee Schedule (‘‘Fee Schedule’’)
should be disapproved.
Robert W. Errett, to reflect the changes. The proposed
IV. Solicitation of Comments change is available on the Exchange’s
Deputy Secretary.
Web site at www.nyse.com, at the
Interested persons are invited to [FR Doc. 2016–05436 Filed 3–10–16; 8:45 am]
principal office of the Exchange, and at
submit written data, views, and BILLING CODE 8011–01–P
the Commission’s Public Reference
arguments concerning the foregoing,
Room.
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of 1 15 U.S.C.78s(b)(1).
the following methods: 2 15 U.S.C. 78a.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
3 17 CFR 240.19b–4.
Electronic Comments 4 In Amendment No. 1, the Exchange clarified the
• Use the Commission’s Internet proposal to specify that the visitor escort fee is
equitable because all Users of the Exchange’s Data
comment form (http://www.sec.gov/ Center would be charged the same fee. The
rules/sro.shtml); or Exchange also clarified the proposal to specify that
while an individual User is on the waitlist for a
• Send an email to rule-comments@ cabinet, it will be granted a fee waiver for 2 bundles
sec.gov. Please include File Number SR– of 24 cross connects to be used to connect that
NYSE–2016–18 on the subject line. 11 17 CFR 200.30–3(a)(12). User’s non-contiguous cabinets.
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![12986 Federal Register / Vol. 81, No. 48 / Friday, March 11, 2016 / Notices
those that may be withheld from the I. Self-Regulatory Organization’s within a reasonable time frame from the
public in accordance with the Statement of the Terms of Substance of normal closing time;
provisions of 5 U.S.C. 552, will be the Proposed Rule Change • Minimizing the need for industry
available for Web site viewing and participants to modify their processing
The Exchange proposes to amend
printing in the Commission’s Public of data from the SIPs; and
Rule 123C—Equities to provide for how • Providing advance notification of
Reference Room, 100 F Street NE., the Exchange would determine an
Washington, DC 20549 on official the applicable closing contingency plan
Official Closing Price if the Exchange is to provide sufficient time for industry
business days between the hours of unable to conduct a closing transaction. participants to route any closing interest
10:00 a.m. and 3:00 p.m. Copies of such The proposed rule change is available to an alternate venue to participate in
filing also will be available for on the Exchange’s Web site at that venue’s closing auction.
inspection and copying at the principal www.nyse.com, at the principal office of
office of the Exchange. All comments the Exchange, and at the Commission’s Background
received will be posted without change; Public Reference Room. The Exchange recently amended Rule
the Commission does not edit personal 123C to add the definition of ‘‘Official
II. Self-Regulatory Organization’s
identifying information from Statement of the Purpose of, and Closing Price’’ for all Exchange-listed
submissions. You should submit only Statutory Basis for, the Proposed Rule securities and, once implemented, will
information that you wish to make Change disseminate to the SIP the Official
available publicly. All submissions Closing Price as an ‘‘M’’ value.5 In that
should refer to File No. SR–NYSEMKT– In its filing with the Commission, the filing, the Exchange amended Rule
2016–17, and should be submitted on or self-regulatory organization included 123C(1)(e)(i) to define the ‘‘Official
before April 1, 2016. statements concerning the purpose of, Closing Price’’ of a security listed on the
and basis for, the proposed rule change Exchange as the price established in a
For the Commission, by the Division of and discussed any comments it received closing transaction under paragraphs (7)
Trading and Markets, pursuant to delegated on the proposed rule change. The text and (8) of Rule 123C of one round lot
authority.21 of those statements may be examined at or more. If there is no closing
Robert W. Errett, the places specified in Item IV below. transaction in a security or if a closing
Deputy Secretary. The Exchange has prepared summaries, transaction is less than one round lot,
[FR Doc. 2016–05435 Filed 3–10–16; 8:45 am] set forth in sections A, B, and C below, the Official Closing Price will be the
BILLING CODE 8011–01–P
of the most significant parts of such most recent last-sale eligible trade in
statements. such security on the Exchange on that
A. Self-Regulatory Organization’s trading day.
SECURITIES AND EXCHANGE The Exchange further amended Rule
Statement of the Purpose of, and the
COMMISSION 123C(1)(e)(ii) to provide for how the
Statutory Basis for, the Proposed Rule
Exchange would determine an Official
Change
Closing Price if the Exchange is unable
[Release No. 34–77306; File No. SR–
1. Purpose to conduct a closing transaction in a
NYSEMKT–2016–31]
The Exchange is proposing to amend security or securities due to a systems
Self-Regulatory Organizations; NYSE or technical issue. In such case, the
its rules to specify back-up procedures
Official Closing Price will be the last
MKT LLC; Notice of Filing of Proposed for determining an Official Closing Price
consolidated last-sale eligible trade for
Rule Change Amending Rule 123C— for Exchange-listed securities if it is
such security during regular trading
Equities To Provide for How the unable to conduct a closing transaction
hours on that trading day. The rule
Exchange Would Determine an Official in one or more securities due to a
further provides that if there were no
Closing Price if the Exchange Is systems or technical issue.4 Specifically,
consolidated last-sale eligible trades in
Unable To Conduct a Closing the Exchange proposes to amend Rule
a security on a trading day when the
Transaction 123C—Equities (‘‘Rule 123C’’) to
Exchange is unable to conduct a closing
provide for how the Exchange would
March 7, 2016.
transaction in a security or securities
determine an Official Closing Price if due to a systems or technical issue, the
Pursuant to Section 19(b)(1) 1 of the the Exchange is impaired. Official Closing Price of such security
Securities Exchange Act of 1934 (the The Exchange developed this will be the prior day’s Official Closing
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 proposal in consultation with its Price.
notice is hereby given that on February affiliated exchanges, NYSE Arca, Inc. The Exchange also amended Rule
25, 2016, NYSE MKT LLC (the (‘‘NYSE Arca’’) and New York Stock 440B(b)—Equities to provide that
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with Exchange LLC (‘‘NYSE’’), and the Exchange systems will not execute or
NASDAQ Stock Market LLC (‘‘Nasdaq’’), display a short sale order with respect
the Securities and Exchange
and took into consideration feedback to a covered security at a price that is
Commission (the ‘‘Commission’’) the
from discussions with industry less than or equal to the current national
proposed rule change as described in
participants, including meeting the best bid if the price of that security
Items I, II, and III below, which Items
following key goals important to market decreases by 10% or more, as
have been prepared by the self- participants:
asabaliauskas on DSK3SPTVN1PROD with NOTICES
regulatory organization. The • Providing a pre-determined, 5 See Securities Exchange Act Release No. 76601
Commission is publishing this notice to consistent solution that would result in (Dec. 9, 2015), 80 FR 77680 (Dec. 15, 2015) (SR–
solicit comments on the proposed rule a closing print to the applicable NYSEMKT–2015–98). For a description of all sale
change from interested persons. securities information processor (‘‘SIP’’) conditions that are reportable to the SIP, including
the ‘‘M’’ value, see the Consolidated Tape System
21 17
Participant Communications Interface
CFR 200.30–3(a)(12). 4 See NYSE press release dated July 22, 2015, Specification, dated November 16, 2015, at 86,
1 15 U.S.C.78s(b)(1). available here: http://ir.theice.com/press-and- available here: https://www.ctaplan.com/
2 15 U.S.C. 78a.
publications/press-releases/all-categories/2015/07- publicdocs/ctaplan/notifications/trader-update/
3 17 CFR 240.19b–4. 22-2015.aspx. cts_input_spec.pdf.
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Document Created: 2016-03-11 01:51:14
Document Modified: 2016-03-11 01:51:14
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 81 FR 12981 |
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