81 FR 8316 - Self-Regulatory Organizations; NYSE MKT LLC; 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 MKT Equities Price List and the NYSE Amex 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 | 8316-8319 | |
| FR Document | 2016-03264 |
[Federal Register Volume 81, Number 32 (Thursday, February 18, 2016)] [Notices] [Pages 8316-8319] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-03264] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77120; File No. SR-NYSEMKT-2016-02] Self-Regulatory Organizations; NYSE MKT LLC; 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 MKT Equities Price List and the NYSE Amex 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 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, 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 MKT Equities Price List (``Price List'') and the NYSE Amex Options Fee Schedule (``Fee Schedule'') 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 have access to the NASDAQ TotalView Ultra (FGPA) market data [[Page 8317]] feed through a wireless connection. In addition, the proposed rule change reflects changes to the Price List and Fee Schedule 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. 62961 (September 21, 2010), 75 FR 59299 (September 27, 2010) (SR- NYSEAmex-2010-80). 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. 76009 (September 29, 2015), 80 FR 60213 (October 5, 2015) (SR-NYSEMKT-2015-67). As specified in the Price List and 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). --------------------------------------------------------------------------- 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 its Price List and Fee Schedule 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. 76750 (December 23, 2015), 80 FR 81648 (December 30, 2015) (SR-NYSEMKT-2015-85) (``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 its Price List and Fee Schedule 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 81649. --------------------------------------------------------------------------- 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. 74220 (February 6, 2015), 80 FR 7894 (February 12, 2015) (SR-NYSEMKT-2015-08) (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 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-NYSEMKT-2013-67, supra note 5 at 50471. 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-NYSEArca-2015-04. --------------------------------------------------------------------------- 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 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. 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 [[Page 8318]] 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 the 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. 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 [[Page 8319]] 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-NYSEMKT-2016-02 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-2016-02. 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 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-2016-02, 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\ --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-03264 Filed 2-17-16; 8:45 am] BILLING CODE 8011-01-P
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A proposed rule change filed under public in accordance with the I. Self-Regulatory Organization’s
Rule 19b–4(f)(6) 20 normally does not provisions of 5 U.S.C. 552, will be Statement of the Terms of the Substance
become operative prior to 30 days after available for Web site viewing and of the Proposed Rule Change
the date of the filing. However, pursuant printing in the Commission’s Public The Exchange proposes to change the
to Rule 19b4(f)(6)(iii),21 the Commission Reference Room, 100 F Street NE., co-location services offered by the
may designate a shorter time if such Washington, DC 20549 on official Exchange to include a means for co-
action is consistent with the protection business days between the hours of located Users to receive the NASDAQ
of investors and the public interest. 10:00 a.m. and 3:00 p.m. Copies of such TotalView Ultra (FGPA) market data
At any time within 60 days of the filing also will be available for feed through a wireless connection. In
filing of such proposed rule change, the inspection and copying at the principal addition, the proposed rule change
Commission summarily may office of the Exchange. All comments reflects changes to the NYSE MKT
temporarily suspend such rule change if received will be posted without change; Equities Price List (‘‘Price List’’) and the
it appears to the Commission that such the Commission does not edit personal NYSE Amex Options Fee Schedule
action is necessary or appropriate in the identifying information from (‘‘Fee Schedule’’) related to the
public interest, for the protection of submissions. You should submit only proposed service. The proposed rule
investors, or otherwise in furtherance of information that you wish to make change is available on the Exchange’s
the purposes of the Act. If the available publicly. All submissions Web site at www.nyse.com, at the
Commission takes such action, the should refer to File No. SR–NYSE– principal office of the Exchange, and at
Commission shall institute proceedings 2016–01, and should be submitted on or the Commission’s Public Reference
under Section 19(b)(2)(B) 22 of the Act to before March 10, 2016. Room.
determine whether the proposed rule For the Commission, by the Division of
change should be approved or II. Self-Regulatory Organization’s
Trading and Markets, pursuant to delegated
disapproved. Statement of the Purpose of, and
authority.23
Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Robert W. Errett, Change
Deputy Secretary.
Interested persons are invited to In its filing with the Commission, the
submit written data, views, and [FR Doc. 2016–03271 Filed 2–17–16; 8:45 am]
self-regulatory organization included
arguments concerning the foregoing, BILLING CODE 8011–01–P
statements concerning the purpose of,
including whether the proposed rule and basis for, the proposed rule change
change is consistent with the Act. and discussed any comments it received
Comments may be submitted by any of SECURITIES AND EXCHANGE
on the proposed rule change. The text
the following methods: COMMISSION
of those statements may be examined at
Electronic Comments [Release No. 34–77120; File No. SR– the places specified in Item IV below.
NYSEMKT–2016–02] The Exchange has prepared summaries,
• Use the Commission’s Internet set forth in sections A, B, and C below,
comment form (http://www.sec.gov/ Self-Regulatory Organizations; NYSE of the most significant parts of such
rules/sro.shtml); or MKT LLC; Notice of Filing and statements.
• Send an email to rule-comments@ Immediate Effectiveness of Proposed
sec.gov. Please include File No. SR– Rule Change to the Co-location A. Self-Regulatory Organization’s
NYSE–2016–01 on the subject line. Services Offered by the Exchange To Statement of the Purpose of, and
Include a Means for Co-located Users Statutory Basis for, the Proposed Rule
Paper Comments Change
To Receive the NASDAQ TotalView
• Send paper comments in triplicate Ultra Market Data Feed Through a 1. Purpose
to Secretary, Securities and Exchange Wireless Connection and Reflect
Commission, 100 F Street NE., The Exchange proposes to change the
Changes to the NYSE MKT Equities co-location 4 services offered by the
Washington, DC 20549–1090. Price List and the NYSE Amex Options
All submissions should refer to File No. Exchange to include a means for Users 5
Fee Schedule to have access to the NASDAQ
SR–NYSE–2016–01. This file number
should be included on the subject line February 11, 2016. TotalView Ultra (FGPA) market data
if email is used. To help the Pursuant to Section 19(b)(1) 1 of the 4 The Exchange initially filed rule changes
Commission process and review your Securities Exchange Act of 1934 (the relating to its co-location services with the
comments more efficiently, please use ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Securities and Exchange Commission
only one method. The Commission will notice is hereby given that on February (‘‘Commission’’) in 2010. See Securities Exchange
2, 2016, NYSE MKT LLC (the Act Release No. 62961 (September 21, 2010), 75 FR
post all comments on the Commission’s 59299 (September 27, 2010) (SR–NYSEAmex–2010–
Internet Web site (http://www.sec.gov/ ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with 80). The Exchange operates a data center in
rules/sro.shtml). Copies of the the Securities and Exchange Mahwah, New Jersey (the ‘‘data center’’) from
submission, all subsequent Commission (the ‘‘Commission’’) the which it provides co-location services to Users.
5 For purposes of the Exchange’s co-location
amendments, all written statements proposed rule change as described in
services, a ‘‘User’’ means any market participant
with respect to the proposed rule Items I, II, and III below, which Items that requests to receive co-location services directly
change that are filed with the have been prepared by the self- from the Exchange. See Securities Exchange Act
Commission, and all written regulatory organization. The Release No. 76009 (September 29, 2015), 80 FR
mstockstill on DSK4VPTVN1PROD with NOTICES
Commission is publishing this notice to 60213 (October 5, 2015) (SR–NYSEMKT–2015–67).
communications relating to the As specified in the Price List and Fee Schedule, a
proposed rule change between the solicit comments on the proposed rule User that incurs co-location fees for a particular co-
Commission and any person, other than change from interested persons. location service pursuant thereto would not be
those that may be withheld from the subject to co-location fees for the same co-location
23 17
service charged by the Exchange’s affiliates New
CFR 200.30–3(a)(12). York Stock Exchange LLC and NYSE Arca, Inc. See
20 17 CFR 240.19b–4(f)(6). 1 15 U.S.C. 78s(b)(1). Securities Exchange Act Release No. 70176 (August
21 17 CFR 240.19b–4(f)(6)(iii). 2 15 U.S.C. 78a.
13, 2013), 78 FR 50471 (August 19, 2013) (SR–
22 15 U.S.C. 78s(b)(2)(B). 3 17 CFR 240.19b–4. NYSEMKT–2013–67).
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members, issuers and other persons fees also reflect the benefit received by because such access will satisfy User
using its facilities and does not unfairly Users in terms of lower latency over the demand for additional options for
discriminate between customers, fiber optics option. The Exchange connectivity to TotalView Ultra.
issuers, brokers or dealers. believes that the proposed waiver of the Currently, Users can receive TotalView
The Exchange believes that the first month’s MRC is reasonable as it Ultra from wireless networks offered by
proposed change is equitable and not would allow Users to test the receipt of third party vendors. Based on the
unfairly discriminatory because it will the feed for a month before incurring information available to it, the Exchange
result in fees being charged only to any monthly recurring fees and may act believes that its proposed wireless
Users that voluntarily select to receive as an incentive to Users to connect to connection would provide data at the
the corresponding services and because TotalView Ultra. same or similar speed and at the same
those services will be available to all Moreover, the fees are equity [sic] or similar cost as the other wireless
Users. Furthermore, the Exchange allocated and not unfairly networks. Accordingly, the proposed
believes that the services and fees discriminatory because the wireless wireless connection to TotalView Ultra
proposed herein are not unfairly connection to TotalView Ultra would would provide Users with an additional
discriminatory and are equitably provide Users with an alternative means wireless connectivity option, thereby
allocated because, in addition to the of connectivity to TotalView Ultra. enhancing competition.
services being completely voluntary, Users that do not opt to utilize the The Exchange notes that the proposed
they are available to all Users on an Exchange’s proposed wireless wireless connection to TotalView Ultra
equal basis (i.e., the same products and connections would still be able to obtain would compete not just with other
services are available to all Users). All TotalView Ultra through other methods, wireless connections to TotalView
Users that voluntarily select wireless including, for example, from wireless Ultra, but also with fiber optic network
connections to TotalView Ultra would networks offered by third party vendors, connections to TotalView Ultra, which
be charged the same amount for the another User, through a may be more attractive to some Users as
same services and would have their first telecommunications provider, or over they are more reliable and less
month MRC for wireless connections the IP network. Users that opt to use susceptible to weather conditions. Users
waived. wireless connections to TotalView Ultra that do not opt to utilize wireless
Overall, the Exchange believes that would receive the TotalView Ultra that connections would be able to obtain
the proposed change is reasonable is available to all Users, as all market TotalView Ultra through other methods,
because the Exchange proposes to offer participants that contract with NASDAQ including, for example, from another
the wireless connection to TotalView for TotalView Ultra may receive it. User, through a telecommunications
Ultra described herein as a convenience For the reasons above, the proposed provider, or over the IP network. In this
to Users, but in doing so would incur changes do not unfairly discriminate way, the proposed changes would
certain costs, including costs related to between or among market participants enhance competition by helping Users
the data center facility, hardware and that are otherwise capable of satisfying tailor their connectivity to TotalView
equipment and costs related to any applicable co-location fees, Ultra to the needs of their business
personnel required for initial requirements, terms and conditions operations by allowing them to select
installation and monitoring, support established from time to time by the the form and optimal latency of the
and maintenance of such services. The Exchange. connectivity they use to receive
costs associated with the wireless Finally, the Exchange believes that it TotalView Ultra that best suits their
connections are incrementally higher is subject to significant competitive needs, helping them tailor their data
than fiber optics-based solutions due to forces, as described below in the center operations to the requirements of
the expense of the wireless equipment, Exchange’s statement regarding the their business operations.
cost of installation and testing and burden on competition. The proposed wireless connection to
ongoing maintenance of the network. For these reasons, the Exchange TotalView Ultra would traverse wireless
The Exchange believes that it is believes that the proposed fees are connections through a series of towers
reasonable that a User that has already reasonable, equitable, and not unfairly equipped with wireless equipment,
purchased wireless connections to other discriminatory. including a pole on the grounds of the
Third Party Data would be charged a data center. The proposed wireless
non-recurring charge when it purchases B. Self-Regulatory Organization’s network would have exclusive rights to
a wireless connection to TotalView Statement on Burden on Competition operate wireless equipment on the data
Ultra, because the Exchange would In accordance with Section 6(b)(8) of center pole. The Exchange will not sell
incur certain costs in installing the the Act,16 the Exchange believes that the rights to third parties to operate wireless
wireless connection to TotalView Ultra proposed rule change will not impose equipment on the pole, due to space
irrespective of whether the User had any burden on competition that is not limitations, security concerns, and the
existing wireless connections to Third necessary or appropriate in furtherance interference that would arise between
Party Data. Such costs related to initial of the purposes of the Act because, in equipment placed too closely together.
installation include, in particular, costs addition to the proposed services being In addition to space issues, there are
related to personnel required for initial completely voluntary, they are available contractual restrictions on the use of the
installation and testing. The costs to all Users on an equal basis (i.e. the roof that the Exchange has determined
associated with installing wireless same products and services are available would not be met if it offered space on
connections are incrementally higher to all Users). the roof for third party wireless
mstockstill on DSK4VPTVN1PROD with NOTICES
than those associated with installing The Exchange believes that allowing equipment. Moreover, access to the pole
fiber optics-based solutions. Users to receive TotalView Ultra or roof is not required for third parties
The Exchange believes that the through a wireless connection will not to establish wireless networks that can
proposed pricing for the wireless impose any burden on competition that compete with the Exchange’s proposed
connection to TotalView Ultra is is not necessary or appropriate in service, as witnessed by the existing
reasonable because it allows Users to furtherance of the purposes of the Act wireless networks currently serving
select the TotalView Ultra connectivity Users. Based on the information
option that better suits their needs. The 16 15 U.S.C. 78f(b)(8). available to it, the Exchange believes
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![Federal Register / Vol. 81, No. 32 / Thursday, February 18, 2016 / Notices 8319
that its proposed wireless connection to At any time within 60 days of the office of the Exchange. All comments
TotalView Ultra would provide data at filing of such proposed rule change, the received will be posted without change;
the same or similar speed, and at the Commission summarily may the Commission does not edit personal
same or similar cost, as its proposed temporarily suspend such rule change if identifying information from
wireless connection [sic], thereby it appears to the Commission that such submissions. You should submit only
enhancing competition.17 action is necessary or appropriate in the information that you wish to make
Finally, the Exchange notes that it public interest, for the protection of available publicly. All submissions
operates in a highly competitive market investors, or otherwise in furtherance of should refer to File No. SR–NYSEMKT–
in which market participants can the purposes of the Act. If the 2016–02, and should be submitted on or
readily favor competing venues if they Commission takes such action, the before March 10, 2016.
deem fee levels at a particular venue to Commission shall institute proceedings For the Commission, by the Division of
be excessive. In such an environment, under Section 19(b)(2)(B) 22 of the Act to Trading and Markets, pursuant to delegated
the Exchange must continually review, determine whether the proposed rule authority.23
and consider adjusting, its services and change should be approved or Robert W. Errett,
related fees and credits to remain disapproved. Deputy Secretary.
competitive with other exchanges. For IV. Solicitation of Comments [FR Doc. 2016–03264 Filed 2–17–16; 8:45 am]
the reasons described above, the BILLING CODE 8011–01–P
Exchange believes that the proposed Interested persons are invited to
rule change reflects this competitive submit written data, views, and
environment. arguments concerning the foregoing,
SECURITIES AND EXCHANGE
including whether the proposed rule
C. Self-Regulatory Organization’s COMMISSION
change is consistent with the Act.
Statement on Comments on the Comments may be submitted by any of [Release No. 34–77116; File No. SR–
Proposed Rule Change Received From the following methods: NASDAQ–2016–012]
Members, Participants, or Others
Electronic Comments Self-Regulatory Organizations; The
No written comments were solicited
• Use the Commission’s Internet NASDAQ Stock Market LLC; Notice of
or received with respect to the proposed Filing and Immediate Effectiveness of
comment form (http://www.sec.gov/
rule change. Proposed Rule Change To Amend
rules/sro.shtml); or
III. Date of Effectiveness of the • Send an email to rule-comments@ NOM Rules at Chapter XV, Section 2
Proposed Rule Change and Timing for sec.gov. Please include File No. SR–
February 11, 2016.
Commission Action NYSEMKT–2016–02 on the subject line.
Pursuant to Section 19(b)(1) of the
The Exchange has filed the proposed Paper Comments Securities Exchange Act of 1934
rule change pursuant to Section • Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2
19(b)(3)(A)(iii) of the Act 18 and Rule to Secretary, Securities and Exchange notice is hereby given that, on January
19b–4(f)(6) thereunder.19 Because the Commission, 100 F Street NE., 28, 2016, The NASDAQ Stock Market
proposed rule change does not: (i) Washington, DC 20549–1090. LLC (‘‘Exchange’’) filed with the
Significantly affect the protection of All submissions should refer to File No. Securities and Exchange Commission
investors or the public interest; (ii) SR–NYSEMKT–2016–02. This file (‘‘SEC’’ or ‘‘Commission’’) the proposed
impose any significant burden on number should be included on the rule change as described in Items I, II,
competition; and (iii) become operative subject line if email is used. To help the and III below, which Items have been
prior to 30 days from the date on which Commission process and review your prepared by the Exchange. The
it was filed, or such shorter time as the comments more efficiently, please use Commission is publishing this notice to
Commission may designate, if only one method. The Commission will solicit comments on the proposed rule
consistent with the protection of post all comments on the Commission’s change from interested persons.
investors and the public interest, the Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s
proposed rule change has become rules/sro.shtml). Copies of the Statement of the Terms of Substance of
effective pursuant to Section 19(b)(3)(A) submission, all subsequent the Proposed Rule Change
of the Act and Rule 19b–4(f)(6)(iii) amendments, all written statements
thereunder. The Exchange proposes to amend
with respect to the proposed rule Chapter XV, entitled ‘‘Options Pricing,’’
A proposed rule change filed under change that are filed with the
Rule 19b–4(f)(6) 20 normally does not at Section 2, which governs pricing for
Commission, and all written Exchange members using the NASDAQ
become operative prior to 30 days after communications relating to the
the date of the filing. However, pursuant Options Market (‘‘NOM’’), the
proposed rule change between the Exchange’s facility for executing and
to Rule 19b4(f)(6)(iii),21 the Commission Commission and any person, other than
may designate a shorter time if such routing standardized equity and index
those that may be withheld from the options.
action is consistent with the protection public in accordance with the
of investors and the public interest. While changes to the Pricing
provisions of 5 U.S.C. 552, will be Schedule pursuant to this proposal are
17 The Exchange notes that the distance of a
available for Web site viewing and effective upon filing, the Exchange has
wireless network provider’s wireless equipment printing in the Commission’s Public designated these changes to be operative
mstockstill on DSK4VPTVN1PROD with NOTICES
from the User is only one factor in determining Reference Room, 100 F Street NE., on February 1, 2016.
overall latency. Other factors include the number of Washington, DC 20549 on official The text of the proposed rule change
repeaters in the route, the number of switches the business days between the hours of
data has to travel through, and the millimeter wave is available on the Exchange’s Web site
and switch technology used. 10:00 a.m. and 3:00 p.m. Copies of such at http://nasdaq.cchwallstreet.com, at
18 15 U.S.C. 78s(b)(3)(A)(iii). filing also will be available for
19 17 CFR 240.19b–4(f)(6). inspection and copying at the principal 23 17 CFR 200.30–3(a)(12).
20 17 CFR 240.19b–4(f)(6). 1 15 U.S.C. 78s(b)(1).
21 17 CFR 240.19b–4(f)(6)(iii). 22 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4.
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Document Created: 2016-02-18 07:46:08
Document Modified: 2016-02-18 07:46:08
| 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 8316 |
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