81_FR_83527 81 FR 83303 - Self-Regulatory Organizations; New York Stock Exchange LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Change, as Modified by Amendment Nos. 1 and 2, Amending the Co-Location Services Offered by the Exchange To Add Certain Access and Connectivity Fees

81 FR 83303 - Self-Regulatory Organizations; New York Stock Exchange LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Change, as Modified by Amendment Nos. 1 and 2, Amending the Co-Location Services Offered by the Exchange To Add Certain Access and Connectivity Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 224 (November 21, 2016)

Page Range83303-83308
FR Document2016-27896

Federal Register, Volume 81 Issue 224 (Monday, November 21, 2016) 
[Federal Register Volume 81, Number 224 (Monday, November 21, 2016)]
[Notices]
[Pages 83303-83308]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-27896]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79316; File No. SR-NYSE-2016-45]


Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Instituting Proceedings To Determine Whether To Approve or Disapprove a 
Proposed Change, as Modified by Amendment Nos. 1 and 2, Amending the 
Co-Location Services Offered by the Exchange To Add Certain Access and 
Connectivity Fees

November 15, 2016.

I. Introduction

    On July 29, 2016, the New York Stock Exchange LLC (``NYSE'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change (1) to provide additional information regarding 
access to various trading and execution services; connectivity to 
market data feeds and testing and certification feeds; connectivity to 
Third Party Systems; and connectivity to DTCC provided to Users using 
data center local area networks; and (2) to establish fees relating to 
a User's access to various trading and execution services; connectivity 
to market data feeds and testing and certification feeds; connectivity 
to DTCC; and other services. The proposed rule change was published for 
comment in the Federal Register on August 17, 2016.\3\ The Exchange 
filed Amendment No. 1 to the proposed rule change on August 16, 
2016.\4\ Amendment No. 1 was published for comment in the Federal 
Register on September 26, 2016.\5\ The Commission received one comment 
in response to the proposed rule change, as modified

[[Page 83304]]

by Amendment No. 1 and the Exchange responded.\6\ On October 4, 2016, 
the Commission extended the time period within which to approve the 
proposed rule change, disapprove the proposed rule change, or institute 
proceedings to determine whether to approve or disapprove the proposed 
rule change to November 15, 2016.\7\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 34-78556 (August 11, 
2016), 81 FR 54877 (``Original Notice'').
    \4\ Amendment No. 1 (i) Amended the third party data feed MSCI 
from 20 Gigabite (``Gb'') to 25 Gb and amended the price from $2,000 
to $1,200; (ii) clarified the costs associated with providing a 
greater amount of bandwidth for Premium NYSE Data Products for a 
particular market as compared to the bandwidth requirements for the 
Included Data Products for that same market; (iii) provided further 
details on Premium NYSE Data Products, including their composition, 
product release dates, and further detail on the reasonableness of 
their applicable fees; (iv) added an explanation for the varying fee 
differences for the same Gb usage for third party data feeds, DTCC, 
and Virtual Control Circuit.
    \5\ See Securities Exchange Act Release No. 34-78887 (September 
20, 2016), 81 FR 66095. (``Notice'')
    \6\ See letter to Brent J. Fields, Secretary, Commission, from 
John Ramsay, Chief Market Policy Officer, Investors Exchange LLC 
(IEX), dated September 9, 2016 (``IEX Letter'').
     On September 23, 2016, the NYSE submitted a response 
(``Response Letter'').
    \7\ See Securities Exchange Act Release No. 34-78966 (September 
28, 2016), 81 FR 68475.
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    On November 2, 2016, the Exchange filed Amendment No. 2 to the 
proposed rule change.\8\ The Commission is publishing this order to 
solicit comments on Amendment No. 2 from interested persons and to 
institute proceedings pursuant to Exchange Act Section 19(b)(2)(B) to 
determine whether to approve or disapprove the proposed rule change, as 
modified by Amendment Nos. 1 and 2.\9\ Institution of proceedings does 
not indicate that the Commission has reached any conclusions with 
respect to the proposed rule change, nor does it mean that the 
Commission will ultimately disapprove the proposed rule change. Rather, 
as discussed below, the Commission seeks additional input on the 
proposed rule change, as modified by Amendment Nos. 1 and 2, and on the 
issues presented by the proposal.
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    \8\ Amendment No. 2 is discussed further infra. Amendment No. 2 
is available on the Commission's Web site at https://www.sec.gov/comments/sr-nyse-2016-45/nyse201645-4.pdf.
    \9\ 15 U.S.C. 78s(b)(2)(B).
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II. Description of the Proposed Rule Change, as Modified by Amendment 
Nos. 1 and 2

    The proposed rule change seeks to amend the co-location services 
offered by the Exchange to (1) provide additional information regarding 
access to trading and execution services and connectivity to data 
provided to Users with local area networks available in the data 
center; and (2) establish fees relating to a User's \10\ access to 
trading and execution services; connectivity to data feeds and to 
testing and certification feeds; connectivity to clearing; and other 
services.\11\
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    \10\ For purposes of the Exchange's co-location services, a 
``User'' means any market participant that requests to receive co-
location services directly from the Exchange. See Securities 
Exchange Act Release No. 76008 (September 29, 2015), 80 FR 60190 
(October 5, 2015) (SR-NYSE-2015-40). As specified in the Price List, 
a User that incurs co-location fees for a particular co-location 
service pursuant thereto would not be subject to co-location fees 
for the same co-location service charged by the Exchange's 
affiliates NYSE MKT LLC (``NYSE MKT'') and NYSE Arca, Inc. (``NYSE 
Arca'' and, together with NYSE MKT, the ``Affiliate SROs''). See 
Securities Exchange Act Release No. 70206 (August 15, 2013), 78 FR 
51765 (August 21, 2013) (SR-NYSE-2013-59).
    \11\ See Notice, supra note 5, 81 FR at 66096.
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Background and Access to Exchange Systems

    As discussed more fully in the Notice, a User can purchase access 
to the Liquidity Center Network (``LCN'') and/or internet protocol 
(``IP'') network in the data center through the purchase of a 1, 10, or 
40 Gb LCN circuit, a 10 Gb LX Circuit, bundled network access, Partial 
Cabinet Solution bundle, or 1, 10 or 40 Gb IP network access.\12\ The 
purchase of any of the LCN or IP network circuit options gives a User 
access \13\ to the Exchange's trading and execution systems, 
connectivity to the Exchange's certification and testing feeds,\14\ and 
the ability to connect to any NYSE Data Product.\15\ More specifically, 
access to the Exchange's trading and execution system provides a User 
with access to the Exchange's ``customer gateways that provide for 
order entry, order receipt (i.e. confirmation that an order has been 
received), receipt of drop copies and trade reporting (i.e. whether a 
trade is executed or cancelled), as well as for sending information to 
shared data services for clearing and settlement.'' \16\ The Exchange 
seeks to add clarifying language in its proposed rule to reflect the 
services included with purchase of Exchange system access.\17\
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    \12\ See id. at 66097.
    \13\ The purchase of access is subject to receiving 
authorization from the NYSE, NYSE MKT or NYSE Arca for the Included 
Data Products, as applicable. See id. at 66097 n.12.
    \14\ Certification feeds are used to certify that a User 
conforms to any relevant technical requirements for receipt of data 
or access to Exchange systems. Testing feeds, which do not carry 
live production data, provide Users with an environment to conduct 
tests with the non-live data, including testing for upcoming 
Exchange releases and product enhancements or the User's own 
software development. See id. at 66097. These feeds are only 
available over the IP network, however a User without an IP network 
connection may obtain an IP network circuit for purposes of testing 
and certification for free for three months. See id. at 66097 n.14.
    \15\ See id. at 66097.
    \16\ See Notice, supra note 5, 81 FR at 66097. The Exchange 
represents that connectivity to the Exchange systems can be obtained 
without the purchase of access to the LCN or IP network. See id.
    \17\ See id.
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Connectivity to Included Data Products

    As discussed more fully below, the Exchange offers connectivity to 
three types of data products: Included Data Products, Premium NYSE Data 
Products, and Third Party Data Feeds.\18\ As discussed more fully in 
the Notice, the Included Data Products include Consolidated Tape 
Association (``CTA'') disseminated data feeds and NMS data feeds.\19\ 
The CTA disseminates consolidated real-time trade and quote information 
in NYSE listed securities (Network A) and NYSE MKT, NYSE Arca and other 
regional exchanges' listed securities (Network B) pursuant to a 
national market system plan.\20\ The NMS data feeds include 
Consolidated Tape System and Consolidated Quote System data streams, as 
well as Options Price Reporting Authority feeds.\21\ To obtain 
connectivity to the Included Data Products, a User must enter into a 
contract with the data provider and pay any applicable fees.\22\ Once 
the Exchange receives an authorization from the data feed provider, the 
Exchange will provide connectivity to the Included Data Product(s) 
through a User's LCN or IP network port.\23\ The Exchange does not 
charge any additional fees for this connectivity ``because such access 
and connectivity is directly related to the purpose of co-location.'' 
\24\ The Exchange proposes to add language to the Price List to specify 
that there are no additional fees for connectivity to Included Data 
Products.\25\
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    \18\ See id. Neither the NYSE Data Products or Third Party Data 
Feeds provide access or order entry to the Exchange's execution 
system. See id. Connectivity to the NYSE Data Products is available 
in three forms: A resilient feed, ``Feed A'', or ``Feed B.'' A 
resilient feed includes two copies of the same feed for redundancy 
purposes and Feed A and Feed B are identical feeds. A User that 
wants redundancy would connect to both Feed A and Feed B or two 
resilient feeds, using two different ports. See id.; see also id. at 
66097 n. 15.
    \19\ See id. at 66097.
    \20\ See id.
    \21\ See id.
    \22\ See id.
    \23\ See id.
    \24\ See id.; see also Amendment No. 2, supra note 8.
    \25\ See id. at 66098.
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Connectivity to Premium NYSE Data Products

    As part of its data product offerings, the Exchange now proposes to 
provide connectivity to Premium NYSE Data Products from the Exchange 
and its Affiliate SROs to Users over either the LCN and/or IP network 
``because such access and connectivity is directly related to the 
purpose of co-location.'' \26\ The proposed rule change seeks to amend 
the Price List to specify the connectivity fees for Premium NYSE Data 
Products.\27\
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    \26\ See id.; see also Amendment No. 2, supra note 8.
    \27\ See Notice, supra note 5, 81 FR at 66098.
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    As discussed more fully in the Notice, the Premium NYSE Data 
Products are ``equity market data products that are

[[Page 83305]]

variants of the equity Included Data Products. Each Premium NYSE Data 
Product integrates, or includes data elements from, several Included 
Data Products.'' \28\ These Integrated Feeds include ``depth of book 
order data (with add, modify and delete orders), trades (with 
corrections and cancel/errors), opening and closing imbalance data, 
security status updates (e.g., trade corrections and trading halts) and 
stock summary messages. The stock summary messages display a market's 
opening price, high price, low price, closing price, and cumulative 
volume for a security. Only the Integrated Feeds offer all these 
components in sequence in one feed.'' \29\ Additionally, the NYSE BQT 
data feed includes, among other things, certain data elements from six 
of the equity Included Data Products of the Exchange and Affiliated 
SROs in one data feed: NYSE Trades, NYSE BBO, NYSE Arca Trades, NYSE 
Arca BBO, NYSE MKT Trades, and NYSE MKT BBO.\30\
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    \28\ See id. Examples include: (1) The NYSE Integrated Feed that 
includes, among other items, data from three of the equity Included 
Data Products: NYSE OpenBook, NYSE Trades, and NYSE Order 
Imbalances; and (2) the NYSE BQT data feed that includes, among 
other items, specific data elements from six of the equity Included 
Data Products: NYSE Trades, NYSE BBO, NYSE Arca Trades, NYSE Arca 
BBO, NYSE MKT Trades, and NYSE MKT BBO. See id. Additionally, with 
respect to the NYSE Amex and NYSE Arca options data, neither NYSE 
Amex nor NYSE Arca offer Premium NYSE Data Products because there 
are ``no options data products that integrate, or include data 
elements from, other option data products in the same manner that 
the NYSE, NYSE MKT and NYSE Arca Integrated Feeds integrate, or 
include data elements from, equity Included Data Products.'' See id.
    \29\ See Amendment No. 2, supra note 8.
    \30\ See id. None of the Included Data Products provide Users 
with data from the Exchange and Affiliate SROs in one feed. See id. 
Also, according to the Exchange, the Premium Data Products contain 
more data overall in comparison to the Included Data Products and 
potentially can be subject to greater technical specifications in 
order to receive the feed(s). See Notice, supra note 5, 81 FR at 
66098. ``For example, a User connecting to the NYSE Arca Integrated 
Feed, NYSE Integrated Feed or NYSE MKT Integrated Feed would need at 
least a 1 Gb IP network connection in order to connect to either 
Feed A or Feed B. To connect to a resilient feed, the User would 
require an LCN or IP network connection of at least 10 Gb.'' See id. 
at 66097 n. 15.
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    As is the case with Included Data Products, a User of Premium NYSE 
Data Products must enter into a contract with the data provider for 
each feed and the provider would then authorize the Exchange to provide 
connectivity of the particular feed to that User's LCN or IP Network 
port.\31\ The Exchange proposes to charge a User a monthly recurring 
fee per each Premium NYSE Data Product feed for the connectivity 
provided by the Exchange.\32\
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    \31\ See Notice, supra note 5, 81 FR at 66098.
    \32\ See id.
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Connectivity to Third Party Data Feeds

    The Exchange's proposal further seeks to offer Third Party Data 
Feeds to Users and to charge a connectivity fee per feed as reflected 
on its Price List.\33\ In the data center, the Exchange receives Third 
Party Data Feeds from multiple national securities exchanges and other 
content service providers which it then provides to requesting Users 
for a fee.\34\ With the exceptions of Global OTC and NYSE Global Index, 
Users connect to Third Party Data Feeds over the IP network.\35\ In 
charging for this service, the Exchange notes that its practice is 
consistent with the monthly fee Nasdaq charges its co-location 
customers for connectivity to third party data.\36\
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    \33\ See id. at 66099.
    \34\ See id.
    \35\ See id.
    \36\ See id. The Exchange notes that Nasdaq charges monthly fees 
of $1,500 and $4,000 for connectivity to BATS Y and BATS, 
respectively, and of $2,500 for connectivity to EDGA or EDGX. See 
id.
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    In order to connect to a Third Party Data Feed, a User must enter 
into a contract with the relevant third party market or content service 
provider, under which the third party market or content service 
provider charges the User for the data feed.\37\ The Exchange receives 
these Third Party Data Feeds over its fiber optic network and, after 
the data provider and User enter into a contract and the Exchange 
receives authorization from the data provider, the Exchange re-
transmits the data to the User over a User's port.\38\ Users only 
receive, and are only charged for, the feed(s) which they have entered 
into contracts for.\39\ Additionally, the Exchange notes that Third 
Party Data Feeds do not provide access or order entry to its execution 
system or access to the execution system of the third party generating 
the feed.\40\ The Exchange proposes to charge a monthly recurring fee 
for connectivity to each Third Party Data Feed, however for SuperFeed 
and MSCI it proposes to charge different fees which vary based on the 
bandwidth requirements for the connection.\41\ A User is free to 
receive all or some of the feeds included in the Price List.\42\ 
Moreover, the Exchange notes that Third Party Data Feed providers may 
charge redistribution fees, such as Nasdaq's Extranet Access Fees and 
OTC Markets Group's Access Fees,\43\ which the Exchange will pass 
through to the User in addition to charging the applicable connectivity 
fee.\44\ Finally, the Exchange permits third party markets or content 
providers that are also Users to connect to their own Third Party Data 
Feeds without a charge.\45\ The Exchange represents that it does not 
charge Users that are third party markets or content providers for 
connectivity to their own feeds because such parties generally receive 
their own feeds for purposes of diagnostics and testing.\46\
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    \37\ See id.
    \38\ See id.
    \39\ See id.
    \40\ See id. There is one exception to this for the ICE feeds 
which include both market data and trading and clearing services. In 
order to receive the ICE feeds, a User must receive authorization 
from ICE to receive both market data and trading and clearing 
services. See id.
    \41\ See id.
    \42\ See id.
    \43\ See id. at 66100.
    \44\ See id.
    \45\ See id.
    \46\ See id.
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Connectivity to Other Services

    As part of its data center offerings, the Exchange also seeks to 
provide access and connectivity to Third Party Systems/content service 
providers, the DTCC \47\ (collectively ``Service Providers''), third 
party certification and testing feeds,\48\ and Virtual Control Circuits 
\49\ (``VCCs'').\50\ The proposed rule change seeks to amend the Price 
List to add new fees for connectivity to these Service Providers and 
third party certification and testing feeds and to specify that 
connectivity is dependent on a User meeting the necessary technical 
requirements, paying the applicable fees, and the Exchange receiving 
authorization to establish a connection for a User.\51\ Similarly, the 
proposed rule change seeks to amend the Price List to add a new fee for 
connectivity for VCCs which will similarly require permission from the 
other User before the Exchange will establish the connection.\52\ 
Accordingly,

[[Page 83306]]

the Exchange proposes to amend its Price List to add recurring monthly 
connectivity fees for Service Providers and VCCs based upon the 
bandwidth requirements per system and/or VCC connection between two 
Users.\53\ For third party certification and testing feeds, the 
Exchange proposes to revise its Price List to include a monthly 
recurring $100 fee per feed.\54\
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    \47\ ``Such connectivity to DTCC is distinct from the access to 
shared data services for clearing and settlement services that a 
User receives when it purchases access to the LCN or IP network. The 
shared data services allow Users and other entities with access to 
the Trading Systems to post files for settlement and clearing 
services to access.'' See id. at 66100 n. 36.
    \48\ Certification feeds certify that a User conforms to any of 
the relevant content service providers' requirements for accessing 
Third Party Systems or receiving Third Party Data, whereas testing 
feeds provide Users an environment in which to conduct system tests 
with non-live data. See id. at 66100.
    \49\ A VCC (previously called a ``peer to peer'' connection) is 
a two-way connection through which two participants can establish a 
connection between two points over dedicated bandwidth using the IP 
network to be used for any purpose. See id. at 66101.
    \50\ See id. at 66099-66101.
    \51\ See id. at 66099-66100.
    \52\ See id. at 66100-66101.
    \53\ See id. at 66099-66101.
    \54\ See id. at 66100.
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    For each service, a User must execute a contract with the 
respective Service Provider and/or third party certification and 
testing feed provider(s) pursuant to which a User pays each the 
associated fee(s) for their services.\55\ Once the Exchange receives 
authorization from the Service Provider and/or third party 
certification and testing feed provider(s), the Exchange will enable a 
User to connect to the Service Provider and/or third party 
certification and testing feed(s) over the IP Network.\56\ Similarly, 
with respect to VCCs, the Exchange will not establish a VCC connection 
over its IP Network until the other User confirms the VCC request.\57\ 
Finally, the Exchange notes, that its execution system does not provide 
access to Service Provider systems, nor do the Service Provider systems 
provide access to the Exchange's execution system.\58\
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    \55\ See id. at 66099-66100.
    \56\ See id. For Third Party Systems, once the Exchange receives 
the authorization from the respective third party it establishes a 
unicast connection between the User and the relevant third party 
over the IP network. See id. at 66099. For the DTCC, ``[t]he 
Exchange receives the DTCC feed over its fiber optic network and, 
after DTCC and the User enter into the services contract and the 
Exchange receives authorization from DTCC, the Exchange provides 
connectivity to DTCC to the User over the User's IP network port.'' 
See id. at 66100.
    \57\ See Notice, supra note 5, 81 FR at 66101.
    \58\ See id. at 66099-66100.
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    As noted above, the Commission received one comment letter.\59\ 
This commenter (1) requested clarification about the history of the 
fees and ``the increasing costs of maintaining the data center and 
providing co-location compared to any related fee revenue'' and (2) 
expressed a concern about whether ``there are any true alternatives 
that are practically available to various types of participants who are 
seeking to compete with those who are paying exchanges for co-location 
and data services.'' \60\ Specifically, the commenter noted that the 
NYSE states that the connectivity fees are used to defray the costs 
associated with providing co-location to Users, but, the commenter 
questions whether the fees to cover the increasing costs of providing 
co-location are applied in an equitable manner.\61\ Moreover, with 
respect to alternatives, the commenter noted that broker-dealers face 
best execution obligations that are ``critically impacted by sub-
millisecond differences in access to exchange systems and market 
data.'' \62\ As a result, market participants face the quandary of 
whether to trade from outside the data center if other members are 
trading from inside.\63\ Additionally, some broker-dealers trading for 
clients ``may be practically required to buy and consume proprietary 
market data feeds directly from exchanges in order to provide 
competitive products for those clients.'' \64\ The commenter believes 
that this environment ``imposes a form of trading tax on all members by 
offering different methods of access to different members.'' \65\ The 
commenter questions whether true alternatives are available for 
participants seeking to compete with firms paying for exchange co-
location and data services and whether the Exchange's ability to set 
fees is truly constrained by market forces for a ``comparable 
product''.\66\
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    \59\ See IEX Letter, supra note 6.
    \60\ See id. at 1-2.
    \61\ See id. at 1-2.
    \62\ See id. at 2.
    \63\ See id.
    \64\ See id.
    \65\ See id.
    \66\ See id.
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    As discussed above, the Exchange submitted a response to the 
commenter.\67\ The Exchange in its Response Letter stated that 
historical information about the development of these product offerings 
is ``not required by the Act and is not relevant to [ ] the substance 
of the Proposal-which is, by definition, forward looking. . . .'' \68\ 
Additionally, the Response Letter noted that costs are not the only 
consideration in setting its prices, but rather the prices ``include 
the competitive landscape; whether Users would be required to utilize a 
given service; the alternatives available to Users; and, significantly, 
the benefits Users obtain from the services.'' \69\ With respect to the 
commenter's concern about members needing additional information to 
assess the fixed costs of exchange membership, the Exchange responded 
that these are not fixed costs of ``Exchange members'' but instead 
costs to any User who voluntarily chooses to purchase such services 
based upon ``[t]he form and latency of access and connectivity that 
bests suits a User's needs . . .'' \70\ Users do not require the 
Exchange's access or connectivity to trade on the Exchange and can 
instead use alternative access and connectivity options for trading if 
they choose.\71\
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    \67\ See Response Letter, supra note 6.
    \68\ See id. at 2.
    \69\ See id.
    \70\ See id. at 4.
    \71\ See id.
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    In response to the commenter's argument regarding different methods 
of access to trading, the Exchange stated that ``it is a vendor of fair 
and non-discriminatory access, and like any vendor with multiple 
product offerings, different purchasers may make different choices 
regarding which products they wish to purchase.'' \72\ The Exchange 
further stated in response to the commenter's concern of a lack of true 
alternatives for a ``comparable product'', that the filing lists 
several alternative options for Users and a User can evaluate the 
``relative benefits of those alternatives and choose whichever it deems 
most beneficial to it. . . .'' \73\
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    \72\ See id. at 5. The Exchange makes a further argument about 
the Exchange being a regulated co-location space whereas other 
unregulated co-location options are available. See id.
    \73\ See id. at 6. The Exchange noted that it is not addressing 
the commenter's statements about broker-dealers needing to purchase 
market data from the Exchange as that is outside the scope of this 
proposal. See id. at 5 n.13.
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Amendment No. 2

    In Amendment No. 2, the Exchange offers additional justification 
for the proposed rule change.\74\ In Amendment No. 2, the Exchange 
addressed (1) the benefits offered by the Premium NYSE Data Products 
that are not present in the Included Data Products (2) how Premium NYSE 
Data Products are related to the purpose of co-location, (3) the 
similarity of charging for connectivity to Third Party Systems and DTCC 
and charging for connectivity to Premium NYSE Data Products and (4) the 
costs incurred by the Exchange in providing connectivity to Premium 
NYSE Data Products to Users in the data center.\75\ In the Amendment, 
the Exchange provided further detail on the benefits provided to Users 
through the Premium NYSE Data Products including ``depth of book order 
data (with add, modify and delete orders), trades (with corrections and 
cancel/errors), opening and closing imbalance data, security status 
updates (e.g., trade corrections and trading halts) and stock summary 
messages.'' \76\ The Exchange also clarified which costs are associated 
with providing Users with access and connectivity to the various 
services discussed in the filing, including the Premium NYSE Data 
Products.
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    \74\ See Amendment No. 2, supra note 8.
    \75\ See id.
    \76\ See id.; see also supra note 29 and accompanying text.

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[[Page 83307]]

III. Proceedings To Determine Whether To Disapprove SR-NYSE-2016-45 and 
Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section 
19(b)(2)(B) of the Act \77\ to determine whether the proposed rule 
change, as modified by Amendment Nos. 1 and 2, should be approved or 
disapproved. Institution of such proceedings is appropriate at this 
time in view of the legal and policy issues raised by the proposed rule 
change, as modified by Amendment Nos. 1 and 2. Institution of 
proceedings does not indicate that the Commission has reached any 
conclusions with respect to any of the issues involved. Rather, as 
described below, the Commission seeks and encourages interested persons 
to provide comments on the proposed rule change, as modified by 
Amendment Nos. 1 and 2.
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    \77\ 15 U.S.C. 78s(b)(2)(B).
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    Pursuant to Section 19(b)(2)(B) of the Act, the Commission is 
providing notice of the following grounds for disapproval that are 
under consideration:
     Section 6(b)(4) of the Act, which requires that the rules 
of a national securities exchange ``provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and issuers and other persons using its facilities,'' \78\
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    \78\ 15 U.S.C. 78f(b)(4).
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     Section 6(b)(5) of the Act, which requires, among other 
things, that the rules of a national securities exchange be ``designed 
to perfect the operation of a free and open market and a national 
market system'' and ``protect investors and the public interest,'' and 
not be ``designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers,'' \79\ and
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    \79\ 15 U.S.C. 78f(b)(5).
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     Section 6(b)(8) of the Act, which requires that the rules 
of a national securities exchange ``not impose any burden on 
competition not necessary or appropriate in furtherance of the purposes 
of [the Act].'' \80\
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    \80\ 15 U.S.C. 78f(b)(8).
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    As discussed above, the Exchange's proposal would, among other 
things, establish fees relating to a User's access to trading and 
execution services, connectivity to data feeds and to testing and 
certification feeds, connectivity to clearing, and other services. The 
Exchange believes that the proposed fees are consistent with Sections 
6(b)(4), (5), and (8) of the Act because the fees charged for co-
location services are constrained by the active competition for the 
order flow and other business from such market participants.\81\ The 
Exchange stated that charging excessive fees would make it stand to 
lose not only co-location revenues but also the liquidity of the 
formerly co-located trading firms.\82\ Additionally, the Exchange 
believes that because there are alternatives for a User both in and 
outside of the data center if it believes the fees are too excessive, 
the fees are consistent with the Act.\83\ Specifically, the Exchange 
noted that a User could terminate its co-location arrangement with the 
exchange ``and adopt a possible range of alternative strategies, 
including placing their servers in a physically proximate location 
outside the exchange's data center (which could be a competing 
exchange), or pursuing strategies less dependent upon the lower 
exchange-to-participant latency associated with co-location.'' \84\ 
Additionally, ``[a]s alternatives to using the Access and Connectivity 
provided by the Exchange, a User may access or connect to such services 
and products through another User or through a connection to an 
Exchange access center outside the data center, third party access 
center, or third party vendor. The User may make such connection 
through a third party telecommunication provider, third party wireless 
network, the SFTI network, or a combination thereof.'' \85\ However, 
the Exchange also stated that the expectation of co-location was that 
normally Users would expect reduced latencies in sending orders to the 
Exchange and in receiving market data from the Exchange by being co-
located.\86\ Therefore, as the Exchange states in Amendment No. 2, both 
Included Data Products and Premium NYSE Data Products are ``directly 
related to the purpose of co-location.'' \87\ The commenter suggests 
\88\ that Users do not in fact have alternatives to paying the 
connectivity fee to obtain NYSE Premium Data Products. If these 
products are integral to co-located Users for trading on the Exchange, 
the Commission questions whether obtaining the information contained in 
these products from another source is, in fact, a viable alternative 
given the importance of receiving such information in a timely manner. 
The Commission is concerned that the Exchange has not supported its 
argument that there are viable alternatives for Users inside the data 
center in lieu of obtaining such information from the Exchange. The 
Commission seeks comment on whether Users do have viable alternatives 
to paying the Exchange a connectivity fee for the NYSE Premium Data 
Products.
---------------------------------------------------------------------------

    \81\ See Notice, supra note 5, 81 FR at 66102.
    \82\ See id.
    \83\ See id.
    \84\ See id.
    \85\ See id.
    \86\ See id.
    \87\ See Amendment No. 2, supra note 8.
    \88\ See IEX Letter, supra note 6.
---------------------------------------------------------------------------

    Additionally, the Exchange states that both Included Data Products 
and Premium NYSE Data Products are ``directly related to the purpose of 
co-location.'' The Commission is concerned that the Exchange has not 
made clear why including the cost of connectivity to the Included Data 
Products in the purchase of a LCN or IP network connection and charging 
an additional fee to obtain the Premium NYSE Data Products is an 
equitable allocation of reasonable dues, fees, and other charges among 
Users in the data center; does not unfairly discriminate between 
customers, issuers, brokers, or dealers; and does not impose a burden 
on competition which is not necessary or appropriate in furtherance of 
the purposes of the Act. The Commission is concerned that the Exchange 
has not identified a distinction between the provision of connectivity 
to Included Data Products and the provision of connectivity to Premium 
NYSE Data Products, as opposed to a distinction between the utility of 
the Included Data Products and Premium NYSE Data Products to Users, 
which the Exchange has demonstrated, even though these are all NYSE 
proprietary data products. Therefore, the Commission is concerned that 
the Exchange has not identified a reasonable basis for charging Users a 
separate connectivity fee for the Premium NYSE Data Products while 
including connectivity in the purchase price for a LCN/IP network 
connection. The Exchange stated in its filing that both are ``directly 
related to the purpose of co-location'' but it has not clearly 
justified why this permits including the connectivity fee for Included 
Data Products as part of the LCN or IP Network connection, even for 
those Users that do not use the Included Data Products, but not 
including the connectivity fee for the Premium NYSE Data Products as 
well.
    Similarly, the Exchange justifies the costs associated with 
providing these feeds by stating ``[i]n order to offer connectivity to 
the Premium NYSE Data Products, the Exchange must provide, maintain and 
operate the data center facility hardware and technology 
infrastructure. The Exchange must handle the installation, 
administration, monitoring, support and maintenance of the 
connectivity, including by ensuring that the network infrastructure has 
the

[[Page 83308]]

necessary bandwidth for the Premium NYSE Data Products and responding 
to any production issues.'' \89\ The Commission does not believe the 
Exchange has clearly explained why the same rationale would not apply 
to the Included Data Products. The Exchange has sought to justify this 
on the basis that the Premium NYSE Data Products are similar to any 
other service offered by the Exchange such as connectivity to Third 
Party Systems and DTCC.\90\ The Commission however is concerned that 
these Premium NYSE Data Products are similar to the Included Data 
Products and therefore should not include different fee structures as 
they are the same offering by the Exchange within the contemplated 
purpose of co-location. The Commission seeks comment on whether 
charging fees for Included Data Products and Premium NYSE Data Products 
in a different manner is consistent with Section 6(b)(4) of the Act.
---------------------------------------------------------------------------

    \89\ See Amendment No. 2, supra note 8.
    \90\ See id.
---------------------------------------------------------------------------

Procedure: Request for Written Comments

    The Commission requests that interested persons provide written 
submissions of their views, data and arguments with respect to the 
concerns identified above, as well as any other concerns they may have 
with the proposed rule change, as modified by Amendment Nos. 1 and 2. 
In particular, the Commission invites the written views of interested 
persons concerning whether the proposal, as modified by Amendment Nos. 
1 and 2, is consistent with Sections 6(b)(4), (5), or (8) \91\ or any 
other provision of the Act, or the rules and regulations thereunder. 
Although there does not appear to be any issue relevant to approval or 
disapproval which would be facilitated by an oral presentation of 
views, data, and arguments, the Commission will consider, pursuant to 
Rule 19b-4 under the Act,\92\ any request for an opportunity to make an 
oral presentation.\93\
---------------------------------------------------------------------------

    \91\ 15 U.S.C. 78f(b)(4), (b)(5) and (b)(8).
    \92\ 17 CFR 240.19b-4.
    \93\ Section 19(b)(2) of the Act, as amended by the Securities 
Act Amendments of 1975, Public Law 94-29 (June 4, 1975), grants to 
the Commission flexibility to determine what type of proceeding--
either oral or notice and opportunity for written comments--is 
appropriate for consideration of a particular proposal by a self-
regulatory organization. See Securities Act Amendments of 1975, 
Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75, 
94th Cong., 1st Sess. 30 (1975).
---------------------------------------------------------------------------

    Interested persons are invited to submit written data, views, and 
arguments regarding whether the proposal, as modified by Amendment Nos. 
1 and 2, should be approved or disapproved by December 12, 2016. Any 
person who wishes to file a rebuttal to any other person's submission 
must file that rebuttal by December 27, 2016. In light of the concerns 
raised by the proposed rule change, as discussed above, the Commission 
invites additional comment on the proposed rule change, as modified by 
Amendment Nos. 1 and 2, as the Commission continues its analysis of the 
proposed rule change's consistency with Sections 6(b)(4), (5) and 
(8),\94\ or any other provision of the Act, or the rules and 
regulations thereunder. The Commission asks that commenters address the 
sufficiency and merit of the Exchange's statements in support of the 
proposed rule change, as modified by Amendment Nos. 1 and 2, in 
addition to any other comments they may wish to submit about the 
proposed rule change.
---------------------------------------------------------------------------

    \94\ 15 U.S.C. 78f(b)(4), (b)(5), and (b)(8).
---------------------------------------------------------------------------

    Comments may be submitted by any of the following methods:

Electronic Comments:

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-NYSE-2016-45 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File No. SR-NYSE-2016-45. 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-NYSE-2016-45, and shoul`d be 
submitted by December 12, 2016. Rebuttal comments should be submitted 
by December 27, 2016.
    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\95\
---------------------------------------------------------------------------

    \95\ 17 CFR 200.30-3(a)(57).

Brent J. Fields,
Secretary.
[FR Doc. 2016-27896 Filed 11-18-16; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Notices 83303 from the market that might arise from Commission, 100 F Street NE., SECURITIES AND EXCHANGE the proposal. Washington, DC 20549–1090. COMMISSION 4. What are commenters’ views on All submissions should refer to File [Release No. 34–79316; File No. SR–NYSE– how the proposal would affect NOM 2016–45] Participants and EA clients? Would the Number SR–NASDAQ–2016–121. This ‘‘dual access’’ requirement affect the file number should be included on the Self-Regulatory Organizations; New number NOM Participants or EA subject line if email is used. To help the York Stock Exchange LLC; Order clients? Commission process and review your Instituting Proceedings To Determine 5. What are commenters’ views on the comments more efficiently, please use Whether To Approve or Disapprove a impact of the proposal on NOM only one method. The Commission will Proposed Change, as Modified by Participants who would meet the post all comments on the Commission’s Amendment Nos. 1 and 2, Amending required MARS thresholds but are not Internet Web site (http://www.sec.gov/ the Co-Location Services Offered by dual access clients and thus would not rules/sro.shtml). Copies of the the Exchange To Add Certain Access be able to benefit from the credit on EA? submission, all subsequent and Connectivity Fees 6. What are commenters’ views on the amendments, all written statements with respect to the proposed rule November 15, 2016. impact of the proposal on EA clients who are not NOM Participants and thus change that are filed with the I. Introduction would not be eligible for the credits? Commission, and all written On July 29, 2016, the New York Stock 7. What are commenters’ views on communications relating to the Exchange LLC (‘‘NYSE’’ or the how EA would likely recoup the cost of proposed rule change between the ‘‘Exchange’’) filed with the Securities the proposed credit? Commission and any person, other than and Exchange Commission 8. What are commenters’ views on those that may be withheld from the (‘‘Commission’’), pursuant to Section whether the proposal would affect public in accordance with the 19(b)(1) of the Securities Exchange Act competitors to NOM and EA or clients provisions of 5 U.S.C. 552, will be of 1934 (‘‘Act’’) 1 and Rule 19b–4 of such competitors? Specifically, what available for Web site viewing and thereunder,2 a proposed rule change (1) are commenters’ views on the impact of printing in the Commission’s Public to provide additional information the proposal on exchanges that do not Reference Room, 100 F Street NE., regarding access to various trading and have affiliated broker-dealers/ Washington, DC 20549, on official execution services; connectivity to Alternative Trading Systems that business days between the hours of market data feeds and testing and transact securities not listed on a 10:00 a.m. and 3:00 p.m. Copies of the certification feeds; connectivity to Third national securities exchange—e.g., U.S. filing also will be available for Party Systems; and connectivity to Treasury securities? Would the proposal DTCC provided to Users using data inspection and copying at the principal lead to a decline in number of clients, center local area networks; and (2) to office of the Exchange. All comments or client volume for competitors? establish fees relating to a User’s access received will be posted without change; 9. What are commenters’ views on to various trading and execution how the proposal would impact the the Commission does not edit personal services; connectivity to market data incentives for existing exchanges or new identifying information from feeds and testing and certification feeds; entities to create multiple trading submissions. You should submit only connectivity to DTCC; and other venues or broker-dealers/Alternative information that you wish to make services. The proposed rule change was Trading Systems under one group? available publicly. All submissions published for comment in the Federal 10. What are commenters’ views on should refer to File Number SR– Register on August 17, 2016.3 The the impact the proposal would have, if NASDAQ–2016–121 and should be Exchange filed Amendment No. 1 to the any, on the trading of options orders submitted on or before December 12, proposed rule change on August 16, across multiple options exchanges? 2016. Rebuttal comments should be 2016.4 Amendment No. 1 was published Please explain. What are commenters’ submitted by December 27, 2016. for comment in the Federal Register on views on the impact the proposal would For the Commission, by the Division of September 26, 2016.5 The Commission have, if any, on the best execution of Trading and Markets, pursuant to delegated received one comment in response to investor orders, including the implicit authority.23 the proposed rule change, as modified costs of executing their orders (such as Brent J. Fields, spreads and price impact)? Please 1 15 U.S.C. 78s(b)(1). explain. Secretary. 2 17 CFR 240.19b–4. Commenters are requested to provide [FR Doc. 2016–27897 Filed 11–18–16; 8:45 am] 3 See Securities Exchange Act Release No. 34– 78556 (August 11, 2016), 81 FR 54877 (‘‘Original empirical data and other factual support BILLING CODE 8011–01–P Notice’’). for their views. 4 Amendment No. 1 (i) Amended the third party Comments may be submitted by any data feed MSCI from 20 Gigabite (‘‘Gb’’) to 25 Gb of the following methods: and amended the price from $2,000 to $1,200; (ii) clarified the costs associated with providing a Electronic Comments greater amount of bandwidth for Premium NYSE Data Products for a particular market as compared • Use the Commission’s Internet to the bandwidth requirements for the Included comment form (http://www.sec.gov/ Data Products for that same market; (iii) provided asabaliauskas on DSK3SPTVN1PROD with NOTICES rules/sro.shtml); or further details on Premium NYSE Data Products, including their composition, product release dates, • Send an email to rule-comments@ and further detail on the reasonableness of their sec.gov. Please include File Number SR– applicable fees; (iv) added an explanation for the NASDAQ–2016–121 on the subject line. varying fee differences for the same Gb usage for third party data feeds, DTCC, and Virtual Control Paper Comments Circuit. 5 See Securities Exchange Act Release No. 34– • Send paper comments in triplicate 78887 (September 20, 2016), 81 FR 66095. to Secretary, Securities and Exchange 23 17 CFR 200.30–3(a)(57). (‘‘Notice’’) VerDate Sep<11>2014 18:09 Nov 18, 2016 Jkt 241001 PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 E:\FR\FM\21NON1.SGM 21NON1

83304 Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Notices by Amendment No. 1 and the Exchange and execution services; connectivity to As discussed more fully in the Notice, responded.6 On October 4, 2016, the data feeds and to testing and the Included Data Products include Commission extended the time period certification feeds; connectivity to Consolidated Tape Association (‘‘CTA’’) within which to approve the proposed clearing; and other services.11 disseminated data feeds and NMS data rule change, disapprove the proposed feeds.19 The CTA disseminates Background and Access to Exchange rule change, or institute proceedings to consolidated real-time trade and quote Systems determine whether to approve or information in NYSE listed securities disapprove the proposed rule change to As discussed more fully in the Notice, (Network A) and NYSE MKT, NYSE November 15, 2016.7 a User can purchase access to the Arca and other regional exchanges’ On November 2, 2016, the Exchange Liquidity Center Network (‘‘LCN’’) and/ listed securities (Network B) pursuant to filed Amendment No. 2 to the proposed or internet protocol (‘‘IP’’) network in a national market system plan.20 The rule change.8 The Commission is the data center through the purchase of NMS data feeds include Consolidated publishing this order to solicit a 1, 10, or 40 Gb LCN circuit, a 10 Gb Tape System and Consolidated Quote comments on Amendment No. 2 from LX Circuit, bundled network access, System data streams, as well as Options interested persons and to institute Partial Cabinet Solution bundle, or 1, 10 Price Reporting Authority feeds.21 To proceedings pursuant to Exchange Act or 40 Gb IP network access.12 The obtain connectivity to the Included Data Section 19(b)(2)(B) to determine purchase of any of the LCN or IP Products, a User must enter into a whether to approve or disapprove the network circuit options gives a User contract with the data provider and pay proposed rule change, as modified by access 13 to the Exchange’s trading and any applicable fees.22 Once the Amendment Nos. 1 and 2.9 Institution execution systems, connectivity to the Exchange receives an authorization from of proceedings does not indicate that the Exchange’s certification and testing the data feed provider, the Exchange Commission has reached any feeds,14 and the ability to connect to any will provide connectivity to the conclusions with respect to the NYSE Data Product.15 More specifically, Included Data Product(s) through a proposed rule change, nor does it mean access to the Exchange’s trading and User’s LCN or IP network port.23 The that the Commission will ultimately execution system provides a User with Exchange does not charge any disapprove the proposed rule change. access to the Exchange’s ‘‘customer additional fees for this connectivity Rather, as discussed below, the gateways that provide for order entry, ‘‘because such access and connectivity Commission seeks additional input on order receipt (i.e. confirmation that an is directly related to the purpose of co- the proposed rule change, as modified order has been received), receipt of drop location.’’ 24 The Exchange proposes to by Amendment Nos. 1 and 2, and on the copies and trade reporting (i.e. whether add language to the Price List to specify issues presented by the proposal. a trade is executed or cancelled), as well that there are no additional fees for as for sending information to shared connectivity to Included Data II. Description of the Proposed Rule data services for clearing and Change, as Modified by Amendment Products.25 settlement.’’ 16 The Exchange seeks to Nos. 1 and 2 add clarifying language in its proposed Connectivity to Premium NYSE Data The proposed rule change seeks to rule to reflect the services included with Products amend the co-location services offered purchase of Exchange system access.17 As part of its data product offerings, by the Exchange to (1) provide the Exchange now proposes to provide additional information regarding access Connectivity to Included Data Products connectivity to Premium NYSE Data to trading and execution services and As discussed more fully below, the Products from the Exchange and its connectivity to data provided to Users Exchange offers connectivity to three Affiliate SROs to Users over either the with local area networks available in the types of data products: Included Data LCN and/or IP network ‘‘because such data center; and (2) establish fees Products, Premium NYSE Data access and connectivity is directly relating to a User’s 10 access to trading Products, and Third Party Data Feeds.18 related to the purpose of co-location.’’ 26 The proposed rule change seeks to 11 See Notice, supra note 5, 81 FR at 66096. 6 See letter to Brent J. Fields, Secretary, amend the Price List to specify the Commission, from John Ramsay, Chief Market 12 See id. at 66097. connectivity fees for Premium NYSE Policy Officer, Investors Exchange LLC (IEX), dated 13 The purchase of access is subject to receiving September 9, 2016 (‘‘IEX Letter’’). authorization from the NYSE, NYSE MKT or NYSE Data Products.27 On September 23, 2016, the NYSE submitted a Arca for the Included Data Products, as applicable. As discussed more fully in the Notice, response (‘‘Response Letter’’). See id. at 66097 n.12. the Premium NYSE Data Products are 7 See Securities Exchange Act Release No. 34– 14 Certification feeds are used to certify that a ‘‘equity market data products that are 78966 (September 28, 2016), 81 FR 68475. User conforms to any relevant technical 8 Amendment No. 2 is discussed further infra. requirements for receipt of data or access to entry to the Exchange’s execution system. See id. Amendment No. 2 is available on the Commission’s Exchange systems. Testing feeds, which do not Connectivity to the NYSE Data Products is available Web site at https://www.sec.gov/comments/sr-nyse- carry live production data, provide Users with an in three forms: A resilient feed, ‘‘Feed A’’, or ‘‘Feed 2016-45/nyse201645-4.pdf. environment to conduct tests with the non-live B.’’ A resilient feed includes two copies of the same 9 15 U.S.C. 78s(b)(2)(B). data, including testing for upcoming Exchange feed for redundancy purposes and Feed A and Feed releases and product enhancements or the User’s 10 For purposes of the Exchange’s co-location B are identical feeds. A User that wants redundancy own software development. See id. at 66097. These services, a ‘‘User’’ means any market participant would connect to both Feed A and Feed B or two feeds are only available over the IP network, resilient feeds, using two different ports. See id.; see that requests to receive co-location services directly however a User without an IP network connection also id. at 66097 n. 15. from the Exchange. See Securities Exchange Act may obtain an IP network circuit for purposes of Release No. 76008 (September 29, 2015), 80 FR 19 See id. at 66097. testing and certification for free for three months. asabaliauskas on DSK3SPTVN1PROD with NOTICES 60190 (October 5, 2015) (SR–NYSE–2015–40). As 20 See id. See id. at 66097 n.14. specified in the Price List, a User that incurs co- 15 See id. at 66097. 21 See id. location fees for a particular co-location service 22 See id. 16 See Notice, supra note 5, 81 FR at 66097. The pursuant thereto would not be subject to co-location 23 See id. fees for the same co-location service charged by the Exchange represents that connectivity to the 24 See id.; see also Amendment No. 2, supra note Exchange’s affiliates NYSE MKT LLC (‘‘NYSE Exchange systems can be obtained without the MKT’’) and NYSE Arca, Inc. (‘‘NYSE Arca’’ and, purchase of access to the LCN or IP network. See 8. together with NYSE MKT, the ‘‘Affiliate SROs’’). id. 25 See id. at 66098. 17 See id. 26 See id.; see also Amendment No. 2, supra note See Securities Exchange Act Release No. 70206 (August 15, 2013), 78 FR 51765 (August 21, 2013) 18 See id. Neither the NYSE Data Products or 8. (SR–NYSE–2013–59). Third Party Data Feeds provide access or order 27 See Notice, supra note 5, 81 FR at 66098. VerDate Sep<11>2014 18:09 Nov 18, 2016 Jkt 241001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\21NON1.SGM 21NON1

Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Notices 83305 variants of the equity Included Data feed for the connectivity provided by notes that Third Party Data Feed Products. Each Premium NYSE Data the Exchange.32 providers may charge redistribution Product integrates, or includes data Connectivity to Third Party Data Feeds fees, such as Nasdaq’s Extranet Access elements from, several Included Data Fees and OTC Markets Group’s Access Products.’’ 28 These Integrated Feeds The Exchange’s proposal further seeks Fees,43 which the Exchange will pass include ‘‘depth of book order data (with to offer Third Party Data Feeds to Users through to the User in addition to add, modify and delete orders), trades and to charge a connectivity fee per feed charging the applicable connectivity (with corrections and cancel/errors), as reflected on its Price List.33 In the fee.44 Finally, the Exchange permits opening and closing imbalance data, data center, the Exchange receives Third third party markets or content providers security status updates (e.g., trade Party Data Feeds from multiple national that are also Users to connect to their securities exchanges and other content own Third Party Data Feeds without a corrections and trading halts) and stock service providers which it then provides charge.45 The Exchange represents that summary messages. The stock summary to requesting Users for a fee.34 With the it does not charge Users that are third messages display a market’s opening exceptions of Global OTC and NYSE party markets or content providers for price, high price, low price, closing Global Index, Users connect to Third price, and cumulative volume for a connectivity to their own feeds because Party Data Feeds over the IP network.35 such parties generally receive their own security. Only the Integrated Feeds offer In charging for this service, the all these components in sequence in one feeds for purposes of diagnostics and Exchange notes that its practice is testing.46 feed.’’ 29 Additionally, the NYSE BQT consistent with the monthly fee Nasdaq data feed includes, among other things, charges its co-location customers for Connectivity to Other Services certain data elements from six of the connectivity to third party data.36 equity Included Data Products of the In order to connect to a Third Party As part of its data center offerings, the Exchange and Affiliated SROs in one Data Feed, a User must enter into a Exchange also seeks to provide access data feed: NYSE Trades, NYSE BBO, contract with the relevant third party and connectivity to Third Party NYSE Arca Trades, NYSE Arca BBO, market or content service provider, Systems/content service providers, the NYSE MKT Trades, and NYSE MKT under which the third party market or DTCC 47 (collectively ‘‘Service BBO.30 content service provider charges the Providers’’), third party certification and As is the case with Included Data User for the data feed.37 The Exchange testing feeds,48 and Virtual Control Products, a User of Premium NYSE Data receives these Third Party Data Feeds Circuits 49 (‘‘VCCs’’).50 The proposed over its fiber optic network and, after rule change seeks to amend the Price Products must enter into a contract with the data provider and User enter into a List to add new fees for connectivity to the data provider for each feed and the contract and the Exchange receives these Service Providers and third party provider would then authorize the authorization from the data provider, certification and testing feeds and to Exchange to provide connectivity of the the Exchange re-transmits the data to specify that connectivity is dependent particular feed to that User’s LCN or IP the User over a User’s port.38 Users only on a User meeting the necessary Network port.31 The Exchange proposes technical requirements, paying the receive, and are only charged for, the to charge a User a monthly recurring fee feed(s) which they have entered into applicable fees, and the Exchange per each Premium NYSE Data Product contracts for.39 Additionally, the receiving authorization to establish a Exchange notes that Third Party Data connection for a User.51 Similarly, the 28 See id. Examples include: (1) The NYSE Feeds do not provide access or order proposed rule change seeks to amend Integrated Feed that includes, among other items, data from three of the equity Included Data entry to its execution system or access the Price List to add a new fee for Products: NYSE OpenBook, NYSE Trades, and to the execution system of the third connectivity for VCCs which will NYSE Order Imbalances; and (2) the NYSE BQT party generating the feed.40 The similarly require permission from the data feed that includes, among other items, specific Exchange proposes to charge a monthly other User before the Exchange will data elements from six of the equity Included Data Products: NYSE Trades, NYSE BBO, NYSE Arca recurring fee for connectivity to each establish the connection.52 Accordingly, Trades, NYSE Arca BBO, NYSE MKT Trades, and Third Party Data Feed, however for NYSE MKT BBO. See id. Additionally, with respect SuperFeed and MSCI it proposes to 43 See id. at 66100. to the NYSE Amex and NYSE Arca options data, charge different fees which vary based 44 See id. neither NYSE Amex nor NYSE Arca offer Premium NYSE Data Products because there are ‘‘no options on the bandwidth requirements for the 45 See id. data products that integrate, or include data connection.41 A User is free to receive 46 See id. 47 ‘‘Such connectivity to DTCC is distinct from elements from, other option data products in the all or some of the feeds included in the same manner that the NYSE, NYSE MKT and NYSE the access to shared data services for clearing and Price List.42 Moreover, the Exchange settlement services that a User receives when it Arca Integrated Feeds integrate, or include data elements from, equity Included Data Products.’’ See purchases access to the LCN or IP network. The 32 See id. id. shared data services allow Users and other entities 33 See id. at 66099. 29 See Amendment No. 2, supra note 8. with access to the Trading Systems to post files for 30 See id. None of the Included Data Products 34 See id. settlement and clearing services to access.’’ See id. 35 See id. at 66100 n. 36. provide Users with data from the Exchange and 48 Certification feeds certify that a User conforms 36 See id. The Exchange notes that Nasdaq charges Affiliate SROs in one feed. See id. Also, according to the Exchange, the Premium Data Products monthly fees of $1,500 and $4,000 for connectivity to any of the relevant content service providers’ contain more data overall in comparison to the to BATS Y and BATS, respectively, and of $2,500 requirements for accessing Third Party Systems or Included Data Products and potentially can be for connectivity to EDGA or EDGX. See id. receiving Third Party Data, whereas testing feeds subject to greater technical specifications in order 37 See id. provide Users an environment in which to conduct asabaliauskas on DSK3SPTVN1PROD with NOTICES to receive the feed(s). See Notice, supra note 5, 81 38 See id. system tests with non-live data. See id. at 66100. 39 See id. 49 A VCC (previously called a ‘‘peer to peer’’ FR at 66098. ‘‘For example, a User connecting to the NYSE Arca Integrated Feed, NYSE Integrated Feed 40 See id. There is one exception to this for the connection) is a two-way connection through which or NYSE MKT Integrated Feed would need at least ICE feeds which include both market data and two participants can establish a connection between a 1 Gb IP network connection in order to connect trading and clearing services. In order to receive the two points over dedicated bandwidth using the IP to either Feed A or Feed B. To connect to a resilient ICE feeds, a User must receive authorization from network to be used for any purpose. See id. at feed, the User would require an LCN or IP network ICE to receive both market data and trading and 66101. clearing services. See id. 50 See id. at 66099–66101. connection of at least 10 Gb.’’ See id. at 66097 n. 15. 41 See id. 51 See id. at 66099–66100. 31 See Notice, supra note 5, 81 FR at 66098. 42 See id. 52 See id. at 66100–66101. VerDate Sep<11>2014 18:09 Nov 18, 2016 Jkt 241001 PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 E:\FR\FM\21NON1.SGM 21NON1

83306 Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Notices the Exchange proposes to amend its to cover the increasing costs of connectivity to trade on the Exchange Price List to add recurring monthly providing co-location are applied in an and can instead use alternative access connectivity fees for Service Providers equitable manner.61 Moreover, with and connectivity options for trading if and VCCs based upon the bandwidth respect to alternatives, the commenter they choose.71 requirements per system and/or VCC noted that broker-dealers face best In response to the commenter’s connection between two Users.53 For execution obligations that are ‘‘critically argument regarding different methods of third party certification and testing impacted by sub-millisecond differences access to trading, the Exchange stated feeds, the Exchange proposes to revise in access to exchange systems and that ‘‘it is a vendor of fair and non- its Price List to include a monthly market data.’’ 62 As a result, market discriminatory access, and like any recurring $100 fee per feed.54 participants face the quandary of vendor with multiple product offerings, For each service, a User must execute whether to trade from outside the data different purchasers may make different a contract with the respective Service center if other members are trading from choices regarding which products they Provider and/or third party certification inside.63 Additionally, some broker- wish to purchase.’’ 72 The Exchange and testing feed provider(s) pursuant to dealers trading for clients ‘‘may be further stated in response to the which a User pays each the associated practically required to buy and consume commenter’s concern of a lack of true fee(s) for their services.55 Once the proprietary market data feeds directly alternatives for a ‘‘comparable product’’, Exchange receives authorization from from exchanges in order to provide that the filing lists several alternative the Service Provider and/or third party competitive products for those options for Users and a User can certification and testing feed clients.’’ 64 The commenter believes that evaluate the ‘‘relative benefits of those provider(s), the Exchange will enable a this environment ‘‘imposes a form of alternatives and choose whichever it User to connect to the Service Provider trading tax on all members by offering deems most beneficial to it. . . .’’ 73 and/or third party certification and different methods of access to different testing feed(s) over the IP Network.56 members.’’ 65 The commenter questions Amendment No. 2 Similarly, with respect to VCCs, the whether true alternatives are available In Amendment No. 2, the Exchange Exchange will not establish a VCC for participants seeking to compete with offers additional justification for the connection over its IP Network until the firms paying for exchange co-location proposed rule change.74 In Amendment other User confirms the VCC request.57 and data services and whether the No. 2, the Exchange addressed (1) the Finally, the Exchange notes, that its Exchange’s ability to set fees is truly benefits offered by the Premium NYSE execution system does not provide constrained by market forces for a Data Products that are not present in the access to Service Provider systems, nor ‘‘comparable product’’.66 As discussed above, the Exchange Included Data Products (2) how do the Service Provider systems provide Premium NYSE Data Products are access to the Exchange’s execution submitted a response to the commenter.67 The Exchange in its related to the purpose of co-location, (3) system.58 the similarity of charging for As noted above, the Commission Response Letter stated that historical information about the development of connectivity to Third Party Systems and received one comment letter.59 This DTCC and charging for connectivity to commenter (1) requested clarification these product offerings is ‘‘not required by the Act and is not relevant to [ ] the Premium NYSE Data Products and (4) about the history of the fees and ‘‘the the costs incurred by the Exchange in increasing costs of maintaining the data substance of the Proposal–which is, by definition, forward looking. . . .’’ 68 providing connectivity to Premium center and providing co-location NYSE Data Products to Users in the data Additionally, the Response Letter noted compared to any related fee revenue’’ center.75 In the Amendment, the that costs are not the only consideration and (2) expressed a concern about Exchange provided further detail on the in setting its prices, but rather the prices whether ‘‘there are any true alternatives benefits provided to Users through the ‘‘include the competitive landscape; that are practically available to various Premium NYSE Data Products including whether Users would be required to types of participants who are seeking to ‘‘depth of book order data (with add, utilize a given service; the alternatives compete with those who are paying modify and delete orders), trades (with available to Users; and, significantly, the exchanges for co-location and data corrections and cancel/errors), opening benefits Users obtain from the services.’’ 60 Specifically, the and closing imbalance data, security services.’’ 69 With respect to the commenter noted that the NYSE states status updates (e.g., trade corrections commenter’s concern about members that the connectivity fees are used to needing additional information to assess and trading halts) and stock summary defray the costs associated with the fixed costs of exchange membership, messages.’’ 76 The Exchange also providing co-location to Users, but, the the Exchange responded that these are clarified which costs are associated with commenter questions whether the fees not fixed costs of ‘‘Exchange members’’ providing Users with access and but instead costs to any User who connectivity to the various services 53 See id. at 66099–66101. 54 See voluntarily chooses to purchase such discussed in the filing, including the id. at 66100. 55 See id. at 66099–66100. services based upon ‘‘[t]he form and Premium NYSE Data Products. 56 See id. For Third Party Systems, once the latency of access and connectivity that Exchange receives the authorization from the bests suits a User’s needs . . .’’ 70 Users 71 See id. respective third party it establishes a unicast do not require the Exchange’s access or 72 See id. at 5. The Exchange makes a further connection between the User and the relevant third argument about the Exchange being a regulated co- party over the IP network. See id. at 66099. For the location space whereas other unregulated co- asabaliauskas on DSK3SPTVN1PROD with NOTICES 61 See id. at 1–2. DTCC, ‘‘[t]he Exchange receives the DTCC feed over location options are available. See id. 62 See id. at 2. its fiber optic network and, after DTCC and the User 73 See id. at 6. The Exchange noted that it is not 63 See id. enter into the services contract and the Exchange addressing the commenter’s statements about 64 See id. receives authorization from DTCC, the Exchange broker-dealers needing to purchase market data provides connectivity to DTCC to the User over the 65 See id. from the Exchange as that is outside the scope of User’s IP network port.’’ See id. at 66100. 66 See id. this proposal. See id. at 5 n.13. 57 See Notice, supra note 5, 81 FR at 66101. 67 See Response Letter, supra note 6. 74 See Amendment No. 2, supra note 8. 58 See id. at 66099–66100. 68 See id. at 2. 75 See id. 59 See IEX Letter, supra note 6. 69 See id. 76 See id.; see also supra note 29 and 60 See id. at 1–2. 70 See id. at 4. accompanying text. VerDate Sep<11>2014 18:09 Nov 18, 2016 Jkt 241001 PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 E:\FR\FM\21NON1.SGM 21NON1

Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Notices 83307 III. Proceedings To Determine Whether from such market participants.81 The argument that there are viable To Disapprove SR–NYSE–2016–45 and Exchange stated that charging excessive alternatives for Users inside the data Grounds for Disapproval Under fees would make it stand to lose not center in lieu of obtaining such Consideration only co-location revenues but also the information from the Exchange. The The Commission is instituting liquidity of the formerly co-located Commission seeks comment on whether proceedings pursuant to Section trading firms.82 Additionally, the Users do have viable alternatives to 19(b)(2)(B) of the Act 77 to determine Exchange believes that because there are paying the Exchange a connectivity fee whether the proposed rule change, as alternatives for a User both in and for the NYSE Premium Data Products. modified by Amendment Nos. 1 and 2, outside of the data center if it believes Additionally, the Exchange states that should be approved or disapproved. the fees are too excessive, the fees are both Included Data Products and Institution of such proceedings is consistent with the Act.83 Specifically, Premium NYSE Data Products are appropriate at this time in view of the the Exchange noted that a User could ‘‘directly related to the purpose of co- legal and policy issues raised by the terminate its co-location arrangement location.’’ The Commission is proposed rule change, as modified by with the exchange ‘‘and adopt a possible concerned that the Exchange has not Amendment Nos. 1 and 2. Institution of range of alternative strategies, including made clear why including the cost of proceedings does not indicate that the placing their servers in a physically connectivity to the Included Data Commission has reached any proximate location outside the Products in the purchase of a LCN or IP conclusions with respect to any of the exchange’s data center (which could be network connection and charging an issues involved. Rather, as described a competing exchange), or pursuing additional fee to obtain the Premium below, the Commission seeks and strategies less dependent upon the NYSE Data Products is an equitable encourages interested persons to lower exchange-to-participant latency allocation of reasonable dues, fees, and provide comments on the proposed rule associated with co-location.’’ 84 other charges among Users in the data change, as modified by Amendment Additionally, ‘‘[a]s alternatives to using center; does not unfairly discriminate Nos. 1 and 2. the Access and Connectivity provided between customers, issuers, brokers, or Pursuant to Section 19(b)(2)(B) of the by the Exchange, a User may access or dealers; and does not impose a burden Act, the Commission is providing notice connect to such services and products on competition which is not necessary of the following grounds for disapproval through another User or through a or appropriate in furtherance of the that are under consideration: connection to an Exchange access center purposes of the Act. The Commission is • Section 6(b)(4) of the Act, which outside the data center, third party concerned that the Exchange has not requires that the rules of a national access center, or third party vendor. The identified a distinction between the securities exchange ‘‘provide for the User may make such connection provision of connectivity to Included equitable allocation of reasonable dues, through a third party Data Products and the provision of fees, and other charges among its telecommunication provider, third party connectivity to Premium NYSE Data members and issuers and other persons wireless network, the SFTI network, or Products, as opposed to a distinction using its facilities,’’ 78 a combination thereof.’’ 85 However, the between the utility of the Included Data • Section 6(b)(5) of the Act, which Exchange also stated that the Products and Premium NYSE Data requires, among other things, that the expectation of co-location was that Products to Users, which the Exchange rules of a national securities exchange normally Users would expect reduced has demonstrated, even though these are be ‘‘designed to perfect the operation of all NYSE proprietary data products. latencies in sending orders to the a free and open market and a national Therefore, the Commission is concerned Exchange and in receiving market data market system’’ and ‘‘protect investors that the Exchange has not identified a from the Exchange by being co- and the public interest,’’ and not be reasonable basis for charging Users a located.86 Therefore, as the Exchange ‘‘designed to permit unfair separate connectivity fee for the states in Amendment No. 2, both discrimination between customers, Premium NYSE Data Products while Included Data Products and Premium issuers, brokers, or dealers,’’ 79 and including connectivity in the purchase NYSE Data Products are ‘‘directly • Section 6(b)(8) of the Act, which related to the purpose of co-location.’’ 87 price for a LCN/IP network connection. requires that the rules of a national The Exchange stated in its filing that The commenter suggests 88 that Users do securities exchange ‘‘not impose any both are ‘‘directly related to the purpose not in fact have alternatives to paying of co-location’’ but it has not clearly burden on competition not necessary or the connectivity fee to obtain NYSE appropriate in furtherance of the justified why this permits including the Premium Data Products. If these connectivity fee for Included Data purposes of [the Act].’’ 80 products are integral to co-located Users As discussed above, the Exchange’s Products as part of the LCN or IP for trading on the Exchange, the Network connection, even for those proposal would, among other things, Commission questions whether establish fees relating to a User’s access Users that do not use the Included Data obtaining the information contained in Products, but not including the to trading and execution services, these products from another source is, connectivity to data feeds and to testing connectivity fee for the Premium NYSE in fact, a viable alternative given the Data Products as well. and certification feeds, connectivity to importance of receiving such clearing, and other services. The Similarly, the Exchange justifies the information in a timely manner. The costs associated with providing these Exchange believes that the proposed Commission is concerned that the fees are consistent with Sections 6(b)(4), feeds by stating ‘‘[i]n order to offer Exchange has not supported its connectivity to the Premium NYSE Data asabaliauskas on DSK3SPTVN1PROD with NOTICES (5), and (8) of the Act because the fees charged for co-location services are Products, the Exchange must provide, 81 See Notice, supra note 5, 81 FR at 66102. constrained by the active competition 82 See maintain and operate the data center id. for the order flow and other business 83 See id. facility hardware and technology 84 See id. infrastructure. The Exchange must 77 15 U.S.C. 78s(b)(2)(B). 85 See id. handle the installation, administration, 78 15 U.S.C. 78f(b)(4). 86 See id. monitoring, support and maintenance of 79 15 U.S.C. 78f(b)(5). 87 See Amendment No. 2, supra note 8. the connectivity, including by ensuring 80 15 U.S.C. 78f(b)(8). 88 See IEX Letter, supra note 6. that the network infrastructure has the VerDate Sep<11>2014 18:09 Nov 18, 2016 Jkt 241001 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 E:\FR\FM\21NON1.SGM 21NON1

83308 Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Notices necessary bandwidth for the Premium proposal, as modified by Amendment 10:00 a.m. and 3:00 p.m. Copies of such NYSE Data Products and responding to Nos. 1 and 2, should be approved or filing also will be available for any production issues.’’ 89 The disapproved by December 12, 2016. Any inspection and copying at the principal Commission does not believe the person who wishes to file a rebuttal to office of the Exchange. All comments Exchange has clearly explained why the any other person’s submission must file received will be posted without change; same rationale would not apply to the that rebuttal by December 27, 2016. In the Commission does not edit personal Included Data Products. The Exchange light of the concerns raised by the identifying information from has sought to justify this on the basis proposed rule change, as discussed submissions. You should submit only that the Premium NYSE Data Products above, the Commission invites information that you wish to make are similar to any other service offered additional comment on the proposed available publicly. All submissions by the Exchange such as connectivity to rule change, as modified by Amendment should refer to File No. SR–NYSE– Third Party Systems and DTCC.90 The Nos. 1 and 2, as the Commission 2016–45, and shoul‘d be submitted by Commission however is concerned that continues its analysis of the proposed December 12, 2016. Rebuttal comments these Premium NYSE Data Products are rule change’s consistency with Sections should be submitted by December 27, similar to the Included Data Products 6(b)(4), (5) and (8),94 or any other 2016. and therefore should not include provision of the Act, or the rules and For the Commission, by the Division different fee structures as they are the regulations thereunder. The of Trading and Markets, pursuant to same offering by the Exchange within Commission asks that commenters delegated authority.95 the contemplated purpose of co- address the sufficiency and merit of the Brent J. Fields, location. The Commission seeks Exchange’s statements in support of the Secretary. comment on whether charging fees for proposed rule change, as modified by [FR Doc. 2016–27896 Filed 11–18–16; 8:45 am] Included Data Products and Premium Amendment Nos. 1 and 2, in addition to any other comments they may wish BILLING CODE 8011–01–P NYSE Data Products in a different manner is consistent with Section to submit about the proposed rule 6(b)(4) of the Act. change. Comments may be submitted by any SECURITIES AND EXCHANGE Procedure: Request for Written of the following methods: COMMISSION Comments [Release No. 34–79314; File No. SR– Electronic Comments: The Commission requests that NYSEMKT–2016–101] interested persons provide written • Use the Commission’s Internet submissions of their views, data and comment form (http://www.sec.gov/ Self-Regulatory Organizations; NYSE arguments with respect to the concerns rules/sro.shtml); or MKT LLC; Notice of Filing and identified above, as well as any other • Send an email to rule-comments@ Immediate Effectiveness of Proposed concerns they may have with the sec.gov. Please include File No. SR– Change Amending the Fees for NYSE proposed rule change, as modified by NYSE–2016–45 on the subject line. MKT BBO and NYSE MKT Trades To Amendment Nos. 1 and 2. In particular, Lower the Enterprise Fee Paper Comments the Commission invites the written • Send paper comments in triplicate November 15, 2016. views of interested persons concerning to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) 1 of the whether the proposal, as modified by and Exchange Commission, 100 F Street Securities Exchange Act of 1934 (the Amendment Nos. 1 and 2, is consistent NE., Washington, DC 20549–1090. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 with Sections 6(b)(4), (5), or (8) 91 or any notice is hereby given that, on All submissions should refer to File No. other provision of the Act, or the rules November 1, 2016, NYSE MKT LLC (the SR–NYSE–2016–45. This file number and regulations thereunder. Although ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with should be included on the subject line there does not appear to be any issue the Securities and Exchange if email is used. To help the relevant to approval or disapproval Commission (the ‘‘Commission’’) the Commission process and review your which would be facilitated by an oral proposed rule change as described in comments more efficiently, please use presentation of views, data, and Items I, II, and III below, which Items only one method. The Commission will arguments, the Commission will have been prepared by the self- post all comments on the Commission’s consider, pursuant to Rule 19b-4 under regulatory organization. The Internet Web site (http://www.sec.gov/ the Act,92 any request for an Commission is publishing this notice to rules/sro.shtml). Copies of the opportunity to make an oral solicit comments on the proposed rule submission, all subsequent presentation.93 change from interested persons. Interested persons are invited to amendments, all written statements submit written data, views, and with respect to the proposed rule I. Self-Regulatory Organization’s arguments regarding whether the change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change 89 See Amendment No. 2, supra note 8. communications relating to the The Exchange proposes to amend the 90 See id. proposed rule change between the fees for NYSE MKT BBO and NYSE 91 15 U.S.C. 78f(b)(4), (b)(5) and (b)(8). Commission and any person, other than MKT Trades to lower the Enterprise Fee. 92 17 CFR 240.19b–4. those that may be withheld from the The proposed change is available on the public in accordance with the asabaliauskas on DSK3SPTVN1PROD with NOTICES 93 Section 19(b)(2) of the Act, as amended by the Securities Act Amendments of 1975, Public Law Exchange’s Web site at www.nyse.com, provisions of 5 U.S.C. 552, will be at the principal office of the Exchange, 94–29 (June 4, 1975), grants to the Commission flexibility to determine what type of proceeding— available for Web site viewing and and at the Commission’s Public either oral or notice and opportunity for written printing in the Commission’s Public Reference Room. comments—is appropriate for consideration of a Reference Room, 100 F Street NE., particular proposal by a self-regulatory Washington, DC 20549 on official 95 17 organization. See Securities Act Amendments of CFR 200.30–3(a)(57). 1975, Senate Comm. on Banking, Housing & Urban business days between the hours of 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). 94 15 U.S.C. 78f(b)(4), (b)(5), and (b)(8). 3 17 CFR 240.19b–4. VerDate Sep<11>2014 18:09 Nov 18, 2016 Jkt 241001 PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 E:\FR\FM\21NON1.SGM 21NON1


Document Created: 2018-02-14 08:33:48
Document Modified: 2018-02-14 08:33:48
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 83303 
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