81 FR 8265 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to the Co-Location Services Offered by the Exchange To Include a Means for Co-Located Users To Receive the NASDAQ TotalView Ultra Market Data Feed Through a Wireless Connection and Reflect Changes to the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services and the Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 32 (February 18, 2016)
Federal Register Volume 81, Issue 32 (February 18, 2016)
| Page Range | 8265-8269 | |
| FR Document | 2016-03270 |
[Federal Register Volume 81, Number 32 (Thursday, February 18, 2016)] [Notices] [Pages 8265-8269] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-03270] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77118; File No. SR-NYSEARCA-2016-04] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to the Co-Location Services Offered by the Exchange To Include a Means for Co-Located Users To Receive the NASDAQ TotalView Ultra Market Data Feed Through a Wireless Connection and Reflect Changes to the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services and the Options Fee Schedule February 11, 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 2, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange [[Page 8266]] Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C.78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to change the co-location services offered by the Exchange to include a means for co-located Users to receive the NASDAQ TotalView Ultra (FGPA) market data feed through a wireless connection. In addition, the proposed rule change reflects changes to the NYSE Arca Options Fee Schedule (the ``Options Fee Schedule'') and, through its wholly owned subsidiary NYSE Arca Equities, Inc. (``NYSE Arca Equities''), the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services (the ``Equities Fee Schedule'' and, together with the Options Fee Schedule, the ``Fee Schedules'') related to the proposed service. The proposed rule 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. 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 change the co-location \4\ services-- offered by the Exchange to include a means for Users \5\ to receive the NASDAQ TotalView Ultra (FGPA) market data feed through a wireless connection. In addition, the proposed rule change reflects changes to the Fee Schedules related to the proposed service. --------------------------------------------------------------------------- \4\ 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. 63275 (November 8, 2010), 75 FR 70048 (November 16, 2010) (SR- NYSEArca-2010-100). The Exchange operates a data center in Mahwah, New Jersey (the ``data center'') from which it provides co-location services to Users. \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. 76010 (September 29, 2015), 80 FR 60197 (October 5, 2015) (SR-NYSEArca-2015-82). As specified in the Fee Schedules, 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 MKT LLC. See Securities Exchange Act Release No. 70173 (August 13, 2013), 78 FR 50459 (August 19, 2013) (SR-NYSEArca-2013-80). --------------------------------------------------------------------------- The Commission has approved the Exchange's proposed rule change to provide a wireless connection to five market data feeds from third party markets.\6\ The Exchange now proposes to add to the Fee Schedules a sixth market data feed, NASDAQ TotalView Ultra (FGPA) (``TotalView Ultra'' and, together with the previously filed five market data feeds, the ``Third Party Data''). --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 76749 (December 23, 2015), 80 FR 81640 (December 30, 2015) (SR-NYSEArca-2015-99) (``Wireless Approval Release''). --------------------------------------------------------------------------- As with the previously approved connectivity to Third Party Data through the wireless connection, the Exchange would utilize a network vendor to provide a wireless connection to TotalView Ultra through wireless connections from an Exchange access center to its data center in Mahwah, New Jersey, through a series of towers equipped with wireless equipment. To receive TotalView Ultra, the User would enter into a contract with NASDAQ, which would charge the User the applicable market data fees for TotalView Ultra. The Exchange would charge the User fees for the wireless connection to TotalView Ultra.\7\ --------------------------------------------------------------------------- \7\ A User would only receive TotalView Ultra if it had entered into a contract with NASDAQ. --------------------------------------------------------------------------- For each wireless connection to TotalView Ultra, a User would be charged a $5,000 non-recurring initial charge and a monthly recurring charge (``MRC'') of $11,000. The Exchange proposes to revise the Fee Schedules to reflect fees related to the connection to TotalView Ultra. As with the previously approved wireless connections to Third Party Data, if a User purchased two wireless connections, it would pay two non-recurring initial charges, and the wireless connection would include the use of one port for connectivity to Third Party Data.\8\ Also as with the previously approved wireless connections to Third Party Data, the Exchange proposes to waive the first month's MRC, to allow Users to test the receipt of TotalView Ultra for a month before incurring any MRCs. --------------------------------------------------------------------------- \8\ A User only requires one port to connect to the Third Party Data, irrespective of how many of the wireless connections it orders. It may, however, purchase additional ports. See Wireless Approval Release, at 81641. --------------------------------------------------------------------------- The Exchange proposes to offer the wireless connection to provide Users with an alternative means of connectivity to TotalView Ultra. Currently, Users can receive TotalView Ultra from wireless networks offered by third party vendors.\9\ Users may also receive connections to TotalView Ultra through other methods, including, for example, from another User, through a telecommunications provider, or over the internet protocol (``IP'') network.\10\ --------------------------------------------------------------------------- \9\ Currently, at least four third party vendors offer Users wireless network connections using wireless equipment installed on towers and buildings near the data center. \10\ The IP network is a local area network available in the data center. See Securities Exchange Act Release No. 74219 (February 6, 2015), 80 FR 7899 (February 12, 2015) (SR-NYSEArca-2015-03) (notice of filing and immediate effectiveness of proposed rule change to include IP network connections). --------------------------------------------------------------------------- The wireless connection to the Third Party Data is expected to be available in January 2016, and 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. 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; \11\ and (iii) a User would only incur one charge for the particular co-location service described herein, regardless of whether the User connects [[Page 8267]] only to the Exchange or to the Exchange and one or both of its affiliates.\12\ --------------------------------------------------------------------------- \11\ 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 other Users. 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 all Users, although Users that receive co-location services normally would expect reduced latencies in sending orders to, and receiving market data from, the Exchange. \12\ See SR-NYSEArca-2013-80, supra note 5 at 50459. The Exchange's affiliates have also submitted substantially the same proposed rule change to propose the changes described herein. See SR-NYSE-2015-01 and SR-NYSEMKT-2015-02. --------------------------------------------------------------------------- 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,\13\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\14\ in particular, because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to, and perfect the 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(4), (5). --------------------------------------------------------------------------- The Exchange believes that the proposed service is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers because the wireless connection toTotalView Ultra would provide Users with an alternative means of connectivity to TotalView Ultra. Users that do not opt to utilize the Exchange's proposed wireless connections would still be able to obtain TotalView Ultra through other methods, including, for example, from wireless networks offered by third party vendors, another User, through a telecommunications provider, or over the IP network. Users that opt to use wireless connections to TotalView Ultra would receive the TotalView Ultra that is available to all Users, as all market participants that contract with NASDAQ for TotalView Ultra may receive it. The Exchange believes that this removes impediments to, and perfects the mechanisms of, a free and open market and a national market system and, in general, protects investors and the public interest because it would provide Users with choices with respect to the form and optimal latency of the connectivity they use to receive TotalView Ultra, allowing a User that opts to receive TotalView Ultra to select the connectivity and number of ports that better suit its needs, helping it tailor its data center operations to the requirements of its business operations. The Exchange also believes that the proposed rule change is consistent with Section 6(b)(4) of the Act,\15\ in particular, because 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. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that the proposed change is equitable and not unfairly discriminatory because it will result in fees being charged only to Users that voluntarily select to receive the corresponding services and because those services will be available to all Users. Furthermore, the Exchange believes that the services and fees proposed herein are not unfairly discriminatory and are equitably allocated because, in addition to the services being completely voluntary, they are available to all Users on an equal basis (i.e., the same products and services are available to all Users). All Users that voluntarily select wireless connections to TotalView Ultra would be charged the same amount for the same services and would have their first month MRC for wireless connections waived. Overall, the Exchange believes that the proposed change is reasonable because the Exchange proposes to offer wireless connection to TotalView Ultra described herein as a convenience to Users, but in doing so would 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 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. The Exchange believes that it is reasonable that a User that has already purchased wireless connections to other Third Party Data would be charged a non-recurring charge when it purchases a wireless connection to TotalView Ultra, because the Exchange would incur certain costs in installing the wireless connection to TotalView Ultra irrespective of whether the User had existing wireless connections to Third Party Data. Such costs related to initial installation include, in particular, costs related to personnel required for initial installation and testing. The costs associated with installing wireless connections are incrementally higher than those associated with installing fiber optics-based solutions. The Exchange believes that the proposed pricing for the wireless connection to TotalView Ultra is reasonable because it allows Users to select the TotalView Ultra connectivity option that better suits their needs. The fees also reflect the benefit received by Users in terms of lower latency over the fiber optics option. 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 for a month before incurring any monthly recurring fees and may act as an incentive to Users to connect to TotalView Ultra. Moreover, the fees are equity [sic] allocated and not unfairly discriminatory because the wireless connection to TotalView Ultra would provide Users with an alternative means of connectivity to TotalView Ultra. Users that do not opt to utilize the Exchange's proposed wireless connections would still be able to obtain TotalView Ultra through other methods, including, for example, from wireless networks offered by third party vendors, another User, through a telecommunications provider, or over the IP network. Users that opt to use wireless connections to TotalView Ultra would receive the TotalView Ultra that is available to all Users, as all market participants that contract with NASDAQ for TotalView Ultra may receive it. 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 proposed fees are reasonable, equitable, and not unfairly discriminatory. [[Page 8268]] B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\16\ 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 because, in addition to the proposed services being completely voluntary, they are available to all Users on an equal basis (i.e. the same products and services are available to all Users). --------------------------------------------------------------------------- \16\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange believes that allowing Users to receive TotalView Ultra through a wireless connection will not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act because such access will satisfy User demand for additional options for connectivity to TotalView Ultra. Currently, Users can receive TotalView Ultra from wireless networks offered by third party vendors. Based on the information available to it, the Exchange believes that its proposed wireless connection would provide data at the same or similar speed and at the same or similar cost as the other wireless networks. Accordingly, the proposed wireless connection to TotalView Ultra would provide Users with an additional wireless connectivity option, thereby enhancing competition. The Exchange notes that the proposed wireless connection to TotalView Ultra would compete not just with other wireless connections to TotalView Ultra, but also with fiber optic network connections to TotalView Ultra, which may be more attractive to some Users as they are more reliable and less susceptible to weather conditions. Users that do not opt to utilize wireless connections would be able to obtain TotalView Ultra through other methods, including, for example, from another User, through a telecommunications provider, or over the IP network. In this way, the proposed changes would enhance competition by helping Users tailor their connectivity to TotalView Ultra to the needs of their business operations by allowing them to select the form and optimal latency of the connectivity they use to receive TotalView Ultra that best suits their needs, helping them tailor their data center operations to the requirements of their business operations. The proposed wireless connection to TotalView Ultra would traverse wireless connections through a series of towers equipped with wireless equipment, including a pole on the grounds of the data center. The proposed wireless network would have exclusive rights to operate wireless equipment on the data center pole. The Exchange will not sell rights to third parties to operate wireless equipment on the pole, due to space limitations, security concerns, and the interference that would arise between equipment placed too closely together. In addition to space issues, there are contractual restrictions on the use of the roof that the Exchange has determined would not be met if it offered space on the roof for third party wireless equipment. Moreover, access to the pole or roof is not required for third parties to establish wireless networks that can compete with the Exchange's proposed service, as witnessed by the existing wireless networks currently serving Users. Based on the information available to it, the Exchange believes that its proposed wireless connection to TotalView Ultra would provide data at the same or similar speed, and at the same or similar cost, as its proposed wireless connection [sic], thereby enhancing competition.\17\ --------------------------------------------------------------------------- \17\ The Exchange notes that the distance of a wireless network provider's wireless equipment from the User is only one factor in determining overall latency. Other factors include the number of repeaters in the route, the number of switches the data has to travel through, and the millimeter wave and switch technology used. --------------------------------------------------------------------------- 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \18\ and Rule 19b-4(f)(6) thereunder.\19\ Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(3)(A)(iii). \19\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \20\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\21\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \20\ 17 CFR 240.19b-4(f)(6). \21\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \22\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \22\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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 CommentsUse 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-NYSEARCA-2016-04 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-NYSEARCA-2016-04. 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 [[Page 8269]] 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 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-NYSEARCA-2016-04, and should be submitted on or before March 10, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\23\ Robert W. Errett, Deputy Secretary. --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2016-03270 Filed 2-17-16; 8:45 am] BILLING CODE 8011-01-P
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symbol shall automatically be reserved reasonable determination as to whether method. The Commission will post all
for such Party for 24 months, as further the reuse of a symbol would cause comments on the Commission’s Internet
described in the Plan. The proposed investor confusion, Parties would Web site (http://www.sec.gov/rules/
amendments further clarify that, if the consider factors such as the level of sro.shtml). Copies of the submission, all
Party does not place the symbol on List recent activity in the old security, subsequent amendments, all written
A or use the symbol within 24 months, including trading frequency, volume statements with respect to the Plan that
the symbol shall be released for use and the number of market maker quotes. are filed with the Commission, and all
pursuant to subparagraph (b)(5). The Amendment also contains several written communications relating to the
The amendment also proposes a new technical and ministerial amendments. Plan between the Commission and any
requirement. Specifically, that where a First, the Plan is being amended to person, other than those that may be
symbol has become available for reuse update NSX’s principal place of withheld from the public in accordance
by a new Party (e.g., where a Party business from its former address of 440 with the provisions of 5 U.S.C. 552, will
releases a symbol), such symbol may not South LaSalle Street, Suite 2600, be available for Web site viewing and
be reused to identify a new security Chicago, IL 60605 to its new address of printing in the Commission’s Public
(other than the security that has been 101 Hudson Street, Suite 1200, Jersey Reference Room, 100 F Street NE.,
trading under such symbol) within 90 City, NJ 07302. This Amendment also Washington, DC 20549 on official
calendar days from the last day of its reflects a name change by one of the business days between the hours of
use to identify the old security, without Parties. Specifically, the ‘‘NYSE 10:00 a.m. and 3:00 p.m. Copies of such
the consent of the Party that released the Alternext US LLC’’ is now called ‘‘NYSE filing also will be available for
symbol pursuant to paragraph (b)(5) of MKT LLC.’’ Finally, the Parties also are inspection and copying at the Parties’
Section IV. Thus, even where a symbol amending the Plan to update the principal offices. All comments received
is not reserved for the Party most principal place of business for both will be posted without change; the
recently using the symbol, the amended EDGA and EDGX from its former Commission does not edit personal
Plan would continue to provide for a address at 545 Washington Blvd., Jersey identifying information from
fair and orderly approach with regard to City, NJ 07310 to 8050 Marshall Drive, submissions. You should submit only
the reuse of the symbol. Lenexa, KS 66214. information that you wish to make
For example, the amendment would The Parties believe that the available publicly. All submissions
address situations where a Party had Amendment provides for a fair and should refer to File Number 4–533, and
been using symbol WXYZ for a period orderly approach that would be applied should be submitted on or before March
of years to identify the security of a consistently by all Parties to facilitate 10, 2016.
particular company and, following the investor protection, does not disparately
dissolution of the company, symbol By the Commission.
affect any single Party, and thus, does
WXYZ is released by the Party that had Robert W. Errett,
not impose any burden on competition
been using it. Under the current Plan, that is not necessary or appropriate in Deputy Secretary.
the Party using WXYZ to identify the furtherance of the purposes of the Act. [FR Doc. 2016–03275 Filed 2–17–16; 8:45 am]
security of the dissolved company BILLING CODE 8011–01–P
would have that symbol reserved for a II. Implementation of Plan Amendment
period of 24 months, and, at any time The Parties will implement the
within this 24-month period, pursuant Amendment upon Commission SECURITIES AND EXCHANGE
to Section IV(b)(6) (Request for Release approval. COMMISSION
of a Symbol), any other Party may have
requested the voluntary release of the III. Solicitation of Comments [Release No. 34–77118; File No. SR–
NYSEARCA–2016–04]
symbol for reuse. The amendment to the Interested persons are invited to
Plan retains this same basic framework, submit written data, views, and Self-Regulatory Organizations; NYSE
but also explicitly addresses arguments concerning the foregoing, Arca, Inc.; Notice of Filing and
circumstances in which a Party does not including whether the Amendment is Immediate Effectiveness of Proposed
reserve the symbol but elects to release consistent with the Act. Comments may Rule Change to the Co-Location
the symbol pursuant to paragraph (b)(5), be submitted by any of the following Services Offered by the Exchange To
in which case the symbol becomes methods: Include a Means for Co-Located Users
immediately available to be reused by To Receive the NASDAQ TotalView
another Party to identify a different Electronic Comments
Ultra Market Data Feed Through a
security. Under the amendment to the • Use the Commission’s Internet Wireless Connection and Reflect
Plan, at any time within 90 calendar comment form (http://www.sec.gov/ Changes to the NYSE Arca Equities
days from the last day of its use to rules/sro.shtml); or Schedule of Fees and Charges for
identify the old security, such symbol • Send an email to rule-comments@
Exchange Services and the Options
may not be reused to identify a new sec.gov. Please include File Number
Fee Schedule
security unless the Party seeking to 4–533 on the subject line.
reuse the symbol obtains the consent of Paper Comments February 11, 2016.
the Party that most recently released the Pursuant to Section 19(b)(1) 1 of the
symbol. The Party most recently • Send paper comments in triplicate Securities Exchange Act of 1934 (the
releasing the symbol must reasonably to Brent J. Fields, Secretary, Securities ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
and Exchange Commission, 100 F Street
mstockstill on DSK4VPTVN1PROD with NOTICES
determine that reuse would not cause notice is hereby given that, on February
investor confusion prior to providing its NE., Washington, DC 20549–1090. 2, 2016, NYSE Arca, Inc. (the
consent. All submissions should refer to File ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
As is the case today, at no time may Number 4–533. This file number should the Securities and Exchange
a Party reuse a symbol unless the Party be included on the subject line if email
seeking the reuse also reasonably is used. To help the Commission 1 15 U.S.C.78s(b)(1).
determines that such use would not process and review your comments 2 15 U.S.C. 78a.
cause investor confusion. In making a more efficiently, please use only one 3 17 CFR 240.19b–4.
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only to the Exchange or to the Exchange to the form and optimal latency of the irrespective of whether the User had
and one or both of its affiliates.12 connectivity they use to receive existing wireless connections to Third
The proposed change is not otherwise TotalView Ultra, allowing a User that Party Data. Such costs related to initial
intended to address any other issues opts to receive TotalView Ultra to select installation include, in particular, costs
relating to co-location services and/or the connectivity and number of ports related to personnel required for initial
related fees, and the Exchange is not that better suit its needs, helping it installation and testing. The costs
aware of any problems that Users would tailor its data center operations to the associated with installing wireless
have in complying with the proposed requirements of its business operations. connections are incrementally higher
change. The Exchange also believes that the
than those associated with installing
proposed rule change is consistent with
2. Statutory Basis fiber optics-based solutions.
Section 6(b)(4) of the Act,15 in
The Exchange believes that the particular, because it provides for the The Exchange believes that the
proposed rule change is consistent with equitable allocation of reasonable dues, proposed pricing for the wireless
Section 6(b) of the Act,13 in general, and fees, and other charges among its connection to TotalView Ultra is
furthers the objectives of Sections members, issuers and other persons reasonable because it allows Users to
6(b)(4) and 6(b)(5) of the Act,14 in using its facilities and does not unfairly select the TotalView Ultra connectivity
particular, because it is designed to discriminate between customers, option that better suits their needs. The
prevent fraudulent and manipulative issuers, brokers or dealers. fees also reflect the benefit received by
acts and practices, to promote just and The Exchange believes that the Users in terms of lower latency over the
equitable principles of trade, to foster proposed change is equitable and not fiber optics option. The Exchange
cooperation and coordination with unfairly discriminatory because it will believes that the proposed waiver of the
persons engaged in regulating, clearing, result in fees being charged only to first month’s MRC is reasonable as it
settling, processing information with Users that voluntarily select to receive
would allow Users to test the receipt of
respect to, and facilitating transactions the corresponding services and because
in securities, to remove impediments to, the feed for a month before incurring
those services will be available to all
and perfect the mechanisms of, a free Users. Furthermore, the Exchange any monthly recurring fees and may act
and open market and a national market believes that the services and fees as an incentive to Users to connect to
system and, in general, to protect proposed herein are not unfairly TotalView Ultra.
investors and the public interest and discriminatory and are equitably Moreover, the fees are equity [sic]
because it is not designed to permit allocated because, in addition to the allocated and not unfairly
unfair discrimination between services being completely voluntary, discriminatory because the wireless
customers, issuers, brokers, or dealers. they are available to all Users on an connection to TotalView Ultra would
The Exchange believes that the equal basis (i.e., the same products and provide Users with an alternative means
proposed service is not designed to services are available to all Users). All of connectivity to TotalView Ultra.
permit unfair discrimination between Users that voluntarily select wireless Users that do not opt to utilize the
customers, issuers, brokers, or dealers connections to TotalView Ultra would Exchange’s proposed wireless
because the wireless connection be charged the same amount for the connections would still be able to obtain
toTotalView Ultra would provide Users same services and would have their first
TotalView Ultra through other methods,
with an alternative means of month MRC for wireless connections
including, for example, from wireless
connectivity to TotalView Ultra. Users waived.
Overall, the Exchange believes that networks offered by third party vendors,
that do not opt to utilize the Exchange’s
proposed wireless connections would the proposed change is reasonable another User, through a
still be able to obtain TotalView Ultra because the Exchange proposes to offer telecommunications provider, or over
through other methods, including, for wireless connection to TotalView Ultra the IP network. Users that opt to use
example, from wireless networks offered described herein as a convenience to wireless connections to TotalView Ultra
by third party vendors, another User, Users, but in doing so would incur would receive the TotalView Ultra that
through a telecommunications provider, certain costs, including costs related to is available to all Users, as all market
or over the IP network. Users that opt the data center facility, hardware and participants that contract with NASDAQ
to use wireless connections to equipment and costs related to for TotalView Ultra may receive it.
TotalView Ultra would receive the personnel required for initial For the reasons above, the proposed
TotalView Ultra that is available to all installation and monitoring, support changes do not unfairly discriminate
Users, as all market participants that and maintenance of such services. The
between or among market participants
contract with NASDAQ for TotalView costs associated with the wireless
connections are incrementally higher that are otherwise capable of satisfying
Ultra may receive it. any applicable co-location fees,
The Exchange believes that this than fiber optics-based solutions due to
the expense of the wireless equipment, requirements, terms and conditions
removes impediments to, and perfects
cost of installation and testing and established from time to time by the
the mechanisms of, a free and open
ongoing maintenance of the network. Exchange.
market and a national market system
and, in general, protects investors and The Exchange believes that it is Finally, the Exchange believes that it
the public interest because it would reasonable that a User that has already is subject to significant competitive
provide Users with choices with respect purchased wireless connections to other forces, as described below in the
mstockstill on DSK4VPTVN1PROD with NOTICES
Third Party Data would be charged a Exchange’s statement regarding the
12 See SR–NYSEArca–2013–80, supra note 5 at non-recurring charge when it purchases burden on competition.
50459. The Exchange’s affiliates have also a wireless connection to TotalView
submitted substantially the same proposed rule For these reasons, the Exchange
Ultra, because the Exchange would
change to propose the changes described herein.
incur certain costs in installing the believes that the proposed fees are
See SR–NYSE–2015–01 and SR–NYSEMKT–2015– reasonable, equitable, and not unfairly
02. wireless connection to TotalView Ultra
13 15 U.S.C. 78f(b). discriminatory.
14 15 U.S.C. 78f(b)(4), (5). 15 15 U.S.C. 78f(b)(4).
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![8268 Federal Register / Vol. 81, No. 32 / Thursday, February 18, 2016 / Notices
B. Self-Regulatory Organization’s data center. The proposed wireless investors or the public interest; (ii)
Statement on Burden on Competition network would have exclusive rights to impose any significant burden on
In accordance with Section 6(b)(8) of operate wireless equipment on the data competition; and (iii) become operative
the Act,16 the Exchange believes that the center pole. The Exchange will not sell prior to 30 days from the date on which
proposed rule change will not impose rights to third parties to operate wireless it was filed, or such shorter time as the
any burden on competition that is not equipment on the pole, due to space Commission may designate, if
necessary or appropriate in furtherance limitations, security concerns, and the consistent with the protection of
of the purposes of the Act because, in interference that would arise between investors and the public interest, the
addition to the proposed services being equipment placed too closely together. proposed rule change has become
completely voluntary, they are available In addition to space issues, there are effective pursuant to Section 19(b)(3)(A)
to all Users on an equal basis (i.e. the contractual restrictions on the use of the of the Act and Rule 19b–4(f)(6)(iii)
same products and services are available roof that the Exchange has determined thereunder.
to all Users). would not be met if it offered space on A proposed rule change filed under
The Exchange believes that allowing the roof for third party wireless Rule 19b–4(f)(6) 20 normally does not
Users to receive TotalView Ultra equipment. Moreover, access to the pole become operative prior to 30 days after
through a wireless connection will not or roof is not required for third parties the date of the filing. However, pursuant
impose any burden on competition that to establish wireless networks that can to Rule 19b4(f)(6)(iii),21 the Commission
is not necessary or appropriate in compete with the Exchange’s proposed may designate a shorter time if such
furtherance of the purposes of the Act service, as witnessed by the existing action is consistent with the protection
because such access will satisfy User wireless networks currently serving of investors and the public interest.
Users. Based on the information At any time within 60 days of the
demand for additional options for
available to it, the Exchange believes filing of such proposed rule change, the
connectivity to TotalView Ultra.
that its proposed wireless connection to Commission summarily may
Currently, Users can receive TotalView
TotalView Ultra would provide data at temporarily suspend such rule change if
Ultra from wireless networks offered by
the same or similar speed, and at the it appears to the Commission that such
third party vendors. Based on the
same or similar cost, as its proposed action is necessary or appropriate in the
information available to it, the Exchange
wireless connection [sic], thereby public interest, for the protection of
believes that its proposed wireless
enhancing competition.17 investors, or otherwise in furtherance of
connection would provide data at the
Finally, the Exchange notes that it the purposes of the Act. If the
same or similar speed and at the same
operates in a highly competitive market Commission takes such action, the
or similar cost as the other wireless
in which market participants can Commission shall institute proceedings
networks. Accordingly, the proposed
readily favor competing venues if they under Section 19(b)(2)(B) 22 of the Act to
wireless connection to TotalView Ultra
deem fee levels at a particular venue to determine whether the proposed rule
would provide Users with an additional
be excessive. In such an environment, change should be approved or
wireless connectivity option, thereby
the Exchange must continually review, disapproved.
enhancing competition.
The Exchange notes that the proposed and consider adjusting, its services and IV. Solicitation of Comments
wireless connection to TotalView Ultra related fees and credits to remain
competitive with other exchanges. For Interested persons are invited to
would compete not just with other submit written data, views, and
wireless connections to TotalView the reasons described above, the
Exchange believes that the proposed arguments concerning the foregoing,
Ultra, but also with fiber optic network including whether the proposed rule
connections to TotalView Ultra, which rule change reflects this competitive
environment. change is consistent with the Act.
may be more attractive to some Users as Comments may be submitted by any of
they are more reliable and less C. Self-Regulatory Organization’s the following methods:
susceptible to weather conditions. Users Statement on Comments on the
that do not opt to utilize wireless Proposed Rule Change Received From Electronic Comments
connections would be able to obtain Members, Participants, or Others • Use the Commission’s Internet
TotalView Ultra through other methods, comment form (http://www.sec.gov/
No written comments were solicited
including, for example, from another rules/sro.shtml); or
or received with respect to the proposed
User, through a telecommunications
rule change. • Send an email to rule-comments@
provider, or over the IP network. In this sec.gov. Please include File No. SR–
way, the proposed changes would III. Date of Effectiveness of the NYSEARCA–2016–04 on the subject
enhance competition by helping Users Proposed Rule Change and Timing for line.
tailor their connectivity to TotalView Commission Action
Ultra to the needs of their business Paper Comments
The Exchange has filed the proposed
operations by allowing them to select rule change pursuant to Section • Send paper comments in triplicate
the form and optimal latency of the 19(b)(3)(A)(iii) of the Act 18 and Rule to Secretary, Securities and Exchange
connectivity they use to receive 19b–4(f)(6) thereunder.19 Because the Commission, 100 F Street NE.,
TotalView Ultra that best suits their proposed rule change does not: (i) Washington, DC 20549–1090.
needs, helping them tailor their data Significantly affect the protection of All submissions should refer to File No.
center operations to the requirements of SR–NYSEARCA–2016–04. This file
mstockstill on DSK4VPTVN1PROD with NOTICES
their business operations. 17 The Exchange notes that the distance of a number should be included on the
The proposed wireless connection to wireless network provider’s wireless equipment subject line if email is used. To help the
TotalView Ultra would traverse wireless from the User is only one factor in determining Commission process and review your
connections through a series of towers overall latency. Other factors include the number of
repeaters in the route, the number of switches the comments more efficiently, please use
equipped with wireless equipment, data has to travel through, and the millimeter wave
including a pole on the grounds of the and switch technology used. 20 17 CFR 240.19b–4(f)(6).
18 15 U.S.C. 78s(b)(3)(A)(iii). 21 17 CFR 240.19b–4(f)(6)(iii).
16 15 U.S.C. 78f(b)(8). 19 17 CFR 240.19b–4(f)(6). 22 15 U.S.C. 78s(b)(2)(B).
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![Federal Register / Vol. 81, No. 32 / Thursday, February 18, 2016 / Notices 8269
only one method. The Commission will change as described in Items I, II, and Portfolio Shares, which are securities
post all comments on the Commission’s III below, which Items have been issued by an actively managed open-end
Internet Web site (http://www.sec.gov/ prepared by the Exchange. The investment management company.3 The
rules/sro.shtml). Copies of the Commission is publishing this notice to Exchange also proposes to amend NYSE
submission, all subsequent solicit comments on the proposed rule Arca Equities Rule 7.34 (Trading
amendments, all written statements change from interested persons. Sessions) to reference securities
with respect to the proposed rule described in proposed NYSE Arca
change that are filed with the I. Self-Regulatory Organization’s Equities Rule 8.900 in Rule 7.34(a)(3)(A)
Commission, and all written Statement of the Terms of Substance of relating to securities traded in the Core
communications relating to the the Proposed Rule Change Trading Session.
proposed rule change between the The Exchange proposes to adopt a In addition to the above-mentioned
Commission and any person, other than new NYSE Arca Equities Rule 8.900 to proposed rule changes, the Exchange
those that may be withheld from the permit it to list and trade Managed proposes to list and trade shares
public in accordance with the Portfolio Shares, which are shares of (‘‘Shares’’) of the following under
provisions of 5 U.S.C. 552, will be actively managed exchange-traded proposed NYSE Arca Equities Rule
available for Web site viewing and funds (‘‘ETFs’’) for which the portfolio 8.900: Precidian U.S. Managed
printing in the Commission’s Public is disclosed in accordance with Volatility Fund; Precidian Strategic
Reference Room, 100 F Street NE., standard mutual fund disclosure rules. Value; Precidian Large Cap Value;
Washington, DC 20549 on official In addition, the Exchange proposes to Precidian Focused Dividend Strategy;
business days between the hours of list and trade shares of the following Precidian U.S. Large Cap Growth;
10:00 a.m. and 3:00 p.m. Copies of such under proposed NYSE Arca Equities Precidian U.S. Core Equity; Precidian
filing also will be available for Rule 8.900: Precidian U.S. Managed U.S. Mid Cap Growth; Precidian Total
inspection and copying at the principal Volatility Fund; Precidian Strategic Return; Precidian High Dividend Yield;
office of the Exchange. All comments Value; Precidian Large Cap Value; Precidian Small Cap Dividend Value;
received will be posted without change; Precidian Focused Dividend Strategy; Precidian Multi-factor Small Cap Core;
the Commission does not edit personal Precidian U.S. Large Cap Growth; Precidian Multi-factor Small Cap
identifying information from Precidian U.S. Core Equity; Precidian Growth; Precidian Large Cap Core Plus
submissions. You should submit only U.S. Mid Cap Growth; Precidian Total 130/30; Precidian Mid Cap Core Plus
information that you wish to make Return; Precidian High Dividend Yield; 130/30; and Precidian Small Cap Core
available publicly. All submissions Precidian Small Cap Dividend Value; Plus 130/30 (each, a ‘‘Fund’’ and,
should refer to File No. SR– Precidian Multi-factor Small Cap Core; collectively, the ‘‘Funds’’).
NYSEARCA–2016–04, and should be Precidian Multi-factor Small Cap Proposed Listing Rules
submitted on or before March 10, 2016. Growth; Precidian Large Cap Core Plus
Proposed Rule 8.900 (a) provides that
For the Commission, by the Division of 130/30; Precidian Mid Cap Core Plus
the Corporation will consider for
Trading and Markets, pursuant to delegated 130/30; and Precidian Small Cap Core
authority.23 trading, whether by listing or pursuant
Plus 130/30. The proposed rule change
Robert W. Errett, to UTP, Managed Portfolio Shares that
is available on the Exchange’s Web site
meet the criteria of Rule 8.900.
Deputy Secretary. at www.nyse.com, at the principal office Proposed Rule 8.900 (b) provides that
[FR Doc. 2016–03270 Filed 2–17–16; 8:45 am] of the Exchange, and at the Rule 8.900 is applicable only to
BILLING CODE 8011–01–P Commission’s Public Reference Room. Managed Portfolio Shares and that,
II. Self-Regulatory Organization’s except to the extent inconsistent with
Statement of the Purpose of, and Rule 8.900, or unless the context
SECURITIES AND EXCHANGE
Statutory Basis for, the Proposed Rule otherwise requires, the rules and
COMMISSION
Change procedures of the Corporation’s Board of
[Release No. 34–77117; File No. SR– Directors shall be applicable to the
NYSEArca–2016–08] In its filing with the Commission, the
trading on the Corporation of such
self-regulatory organization included
securities. Proposed Rule 8.900 (b)
Self-Regulatory Organizations; NYSE statements concerning the purpose of,
provides further that Managed Portfolio
Arca, Inc.; Notice of Filing of Proposed and basis for, the proposed rule change
Shares are included within the
Rule Change To Adopt NYSE Arca and discussed any comments it received
definition of ‘‘security’’ or ‘‘securities’’
Equities Rule 8.900 To Permit Listing on the proposed rule change. The text
as such terms are used in the Rules of
and Trading of Managed Portfolio of those statements may be examined at
the Corporation.
Shares and To Permit Listing and the places specified in Item IV below.
Proposed Definitions. Proposed Rule
Trading of Shares of Fifteen Issues of The Exchange has prepared summaries,
8.900(c)(1) defines the term ‘‘Managed
the Precidian ETFs Trust set forth in sections A, B, and C below,
of the most significant parts of such 3 A Managed Portfolio Share is a security that
February 11, 2016. statements. represents an interest in an investment company
Pursuant to Section 19(b)(1) of the registered under the Investment Company Act of
Securities Exchange Act of 1934 A. Self-Regulatory Organization’s 1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’) organized as
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Statement of the Purpose of, and the an open-end investment company or similar entity
notice is hereby given that, on January Statutory Basis for, the Proposed Rule that invests in a portfolio of securities selected by
its investment adviser consistent with its
mstockstill on DSK4VPTVN1PROD with NOTICES
27, 2016, NYSE Arca, Inc. (‘‘Exchange’’ Change
investment objectives and policies. In contrast, an
or ‘‘NYSE Arca’’) filed with the 1. Purpose open-end investment company that issues
Securities and Exchange Commission Investment Company Units, listed and traded on
(‘‘Commission’’) the proposed rule The Exchange proposes to add new the Exchange under NYSE Arca Equities Rule
NYSE Arca Equities Rule 8.900 for the 5.2(j)(3) (‘‘Index ETFs’’), seeks to provide
investment results that correspond generally to the
23 17 CFR 200.30–3(a)(12). purpose of permitting the listing and price and yield performance of a specific foreign or
1 15 U.S.C. 78s(b)(1). trading, or trading pursuant to unlisted domestic stock index, fixed income securities index
2 17 CFR 240.19b–4. trading privileges (‘‘UTP’’), of Managed or combination thereof.
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Document Created: 2016-02-18 07:46:13
Document Modified: 2016-02-18 07:46:13
| 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 8265 |
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