82 FR 12658 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to the Co-Location Services Offered by the Exchange Adding a Wireless Connection to Toronto Stock Exchange (TSX) Third Party Data
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 42 (March 6, 2017)
Federal Register Volume 82, Issue 42 (March 6, 2017)
| Page Range | 12658-12662 | |
| FR Document | 2017-04208 |
[Federal Register Volume 82, Number 42 (Monday, March 6, 2017)] [Notices] [Pages 12658-12662] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-04208] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80125; File No. SR-NYSE-2017-05] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to the Co-Location Services Offered by the Exchange Adding a Wireless Connection to Toronto Stock Exchange (TSX) Third Party Data February 28, 2017. 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 15, 2017, New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. 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 Toronto Stock Market market data feed through a wireless connection. In addition, the proposed rule change reflects changes to the Exchange's Price List 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\ [[Page 12659]] to have access to the Toronto Stock Exchange market data feed through a wireless connection. In addition, the proposed rule change reflects changes to the Exchange's Price List 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. 62960 (September 21, 2010), 75 FR 59310 (September 27, 2010) (SR- NYSE-2010-56). 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. 76008 (September 29, 2015), 80 FR 60190 (October 5, 2015) (SR-NYSE-2015-40). As specified in the Price List, a User that incurs co-location fees for a particular co-location service pursuant thereto would not be subject to co-location fees for the same co-location service charged by the Exchange's affiliates NYSE MKT LLC and NYSE Arca, Inc. See Securities Exchange Act Release No. 70206 (August 15, 2013), 78 FR 51765 (August 21, 2013) (SR-NYSE-2013-59). --------------------------------------------------------------------------- The Exchange provides Users with wireless connections to seven market data feeds or combinations of feeds from third party markets (the ``Existing Third Party Data'').\6\ The Exchange now proposes to add to its Price List a new market data feed from the Toronto Stock Exchange (such feed, ``TSX'' and, together with the Existing Third Party Data, the ``Third Party Data''). --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release Nos. 76748 (December 23, 2015), 80 FR 81609 (December 30, 2015) (SR-NYSE-2015-52) (``Wireless Approval Release''); and 78378 (July 21, 2016), 81 FR 49315 (July 27, 2016) (SR-NYSE-2016-49). --------------------------------------------------------------------------- Through a new affiliate, the Exchange would provide the proposed wireless connection to TSX through wireless connections into the colocation center in the Data Center. The proposed rule change would become operative when the Exchange acquires such new affiliate (the ``Acquisition''), expected to be no later than June 30, 2017. The Exchange will announce the date that the wireless connection to the TSX will be available through a customer notice. To receive TSX, the User would enter into a contract with the Toronto Stock Exchange, which would charge the User the applicable market data fees for TSX. The Exchange would charge the User fees for the wireless connection for TSX.\7\ --------------------------------------------------------------------------- \7\ A User would only receive TSX if it had entered into a contract with the Toronto Stock Exchange. --------------------------------------------------------------------------- For each wireless connection to TSX, a User would be charged a $5,000 non-recurring initial charge and a monthly recurring charge (``MRC'') of $8,500. The Exchange proposes to revise its Price List to reflect fees related to the connection to TSX. As with the Existing Third Party Data, if a User purchased two wireless connections, it would pay two non-recurring initial charges. The wireless connection would include the use of one port for connectivity to TSX. A User would not pay a fee for the use of such port. However, a User would not be able to use the same port that it uses for connectivity to TSX to connect to Existing Third Party Data. Accordingly, a User that connects to both TSX and Existing Third Party Data would have at least two ports.\8\ --------------------------------------------------------------------------- \8\ If a User purchases a wireless connection to TSX, that connection would include the use of one port for connectivity to TSX. If the same User connects to Existing Third Party Data, it would receive the use of one port for connectivity to the Existing Third Party Data. It would not be separately charged for such ports. A User only requires one port to connect to Existing Third Party Data, irrespective of how many of the wireless connections it orders. It may purchase additional ports. See Wireless Approval Release, at 81610. --------------------------------------------------------------------------- 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 TSX for a month before incurring any MRCs. The company which the Exchange expects to acquire in the Acquisition currently provides wireless connections to TSX to customers who are also Users (the ``Existing Customers''). The Exchange would not charge such Existing Customers the non-recurring initial charge or waive the first month's MRC for their wireless connection to TSX. The Exchange proposes to offer the wireless connection to provide Users with an alternative means of connectivity for TSX. For example, Users may receive connections to TSX from another User, through a telecommunications provider, or over the internet protocol (``IP'') network.\9\ --------------------------------------------------------------------------- \9\ The IP network is a local area network available in the data center. See Securities Exchange Act Release No. 74222 (February 6, 2015), 80 FR 7888 (February 12, 2015) (SR-NYSE-2015-05) (notice of filing and immediate effectiveness of proposed rule change to include IP network connections). --------------------------------------------------------------------------- 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; \10\ 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.\11\ --------------------------------------------------------------------------- \10\ 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. \11\ See SR-NYSE-2013-59, supra note 5 at 51766. The Exchange's affiliates have also submitted substantially the same proposed rule change to propose the changes described herein. See SR-NYSEMKT-2017- 09 and SR-NYSEArca-2017-18. --------------------------------------------------------------------------- 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,\12\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\13\ 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. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b). \13\ 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 TSX would provide Users with an alternative means of connectivity to TSX. Users that do not opt to utilize the Exchange's proposed wireless connections would still be able to obtain TSX through other methods. For example, Users may receive connections to TSX from another User, through a telecommunications provider, or over the IP network. Users that opt to use wireless connections to TSX would receive the TSX that is available to all Users, as all market participants that contract with Toronto Stock Exchange for TSX 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 TSX, allowing a User that opts to receive TSX [[Page 12660]] 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,\14\ in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that the proposed fees changes are consistent with Section 6(b)(4) of the Act for multiple reasons. The Exchange operates in a highly competitive market in which exchanges offer co- location services as a means to facilitate the trading and other market activities of those market participants who believe that co-location enhances the efficiency of their operations. Accordingly, fees charged for co-location services are constrained by the active competition for the order flow of, and other business from, such market participants. If a particular exchange charges excessive fees for co-location services, affected market participants will opt to terminate their co- location arrangements with that 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. Accordingly, the exchange charging excessive fees would stand to lose not only co-location revenues but also the liquidity of the formerly co-located trading firms, which could have additional follow-on effects on the market share and revenue of the affected exchange. 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 TSX would be charged the same amount for the same services and would have their first month MRC for wireless connections waived. The Exchange believes that the proposed charges are reasonable, equitably allocated and not unfairly discriminatory because the Exchange proposes to offer the wireless connection to TSX described herein as a convenience to Users, but in order to do so 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 such services, including by responding to any production issues. Since the inception of co-location, the Exchange has made numerous improvements to the network hardware and technology infrastructure and has established additional administrative controls. The Exchange has expanded the network infrastructure to keep pace with the increased number of services available to Users. Specifically, in order to offer wireless connections, the Exchange must install, test, maintain and operate the wireless equipment. The Exchange believes that it is reasonable and not unfairly discriminatory 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 TSX, because it would allow the Exchange to defray or cover certain costs it incurs in installing the wireless connection to TSX, which costs it incurs irrespective of whether the User has existing wireless connections to Third Party Data, while providing the User the benefit of the installation, which would allow it to receive TSX within co-location and with a lower latency over the fiber optics option. To do the initial installation, the Exchange must provide the 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 it is reasonable and not unfairly discriminatory that an Existing Customer would not be subject to the non-recurring initial charge, because such User's wireless connection to TSX would be in place at the time of the Acquisition, and the Exchange would not have to install the wireless connection. The Exchange believes that it is reasonable and not unfairly discriminatory that a User that connects to both TSX and Existing Third Party Data may not use the same port for connectivity to both, and so would have at least two ports, because the proposed wireless connection would include the use of one port for connectivity to TSX and the Existing Third Party Data includes the use of one port for connectivity to Existing Third Party Data. A User would not pay a separate fee for using such ports. The Exchange believes the proposed pricing for the wireless connection to TSX is reasonable because it would allow the Exchange to defray or cover the costs associated with offering Users a wireless connection to TSX while providing Users the benefit of receiving TSX within co-location and with a lower latency over the fiber optics option. The wireless connection for TSX allows Users to select the TSX connectivity option that better suits their needs. The Exchange believes that the proposed waiver of the first month's MRC is reasonable and not unfairly discriminatory as it would allow Users to test the receipt of TSX for a month before incurring any monthly recurring fees and may act as an incentive to Users to connect to TSX. The Exchange believes that it is reasonable and not unfairly discriminatory that an Existing Customer would not have its first month's MRC for the wireless connection waived, as such User's wireless connection to TSX would be in place prior to the Acquisition, and therefore would not need to be tested. From the perspective of the Existing Customer, the wireless connection to TSX would continue without interruption, before and after the Acquisition. Moreover, the fees are equitably allocated, reasonable and not unfairly discriminatory because the wireless connection for TSX would provide Users with an alternative means of connectivity for TSX. Users that do not opt to utilize the Exchange's proposed wireless connections would still be able to obtain TSX through other methods. For example, Users may receive connections to TSX from another User, through a telecommunications provider, or over the IP network. Users that opt to use wireless connections for TSX would receive the TSX that is available to all Users, as all market participants that contract with the Toronto Stock Exchange for TSX 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 [[Page 12661]] 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,\15\ 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). --------------------------------------------------------------------------- \15\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange believes that allowing Users to receive TSX 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 TSX. The proposed wireless connection to TSX would compete with fiber optic network connections to TSX, 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 the proposed wireless connection would be able to obtain TSX through other methods, including, for example, from another User, through a telecommunications provider, or over the IP network.\16\ In this way, the proposed changes would enhance competition by helping Users tailor their connectivity for TSX to the needs of their business operations by allowing them to select the form and optimal latency of the connectivity they use to receive TSX that best suits their needs, helping them tailor their Data Center operations to the requirements of their business operations. --------------------------------------------------------------------------- \16\ Currently, at least four third party vendors offer Users wireless network connections using wireless equipment installed on towers and buildings near the data center. The Exchange does not believe that any of such vendors offer Users connections to TSX, but is not aware of any impediment to a third party wireless network doing so. --------------------------------------------------------------------------- Through an affiliate, the Exchange would provide the proposed wireless connection to TSX through wireless connections into the co- location center in the Data Center. The proposed connection to TSX will not traverse through the pole on the grounds of the Data Center utilized for the Existing Third Party Data, as the wireless network utilized for the Existing Third Party Data has exclusive rights to operate wireless equipment on the Data Center pole.\17\ --------------------------------------------------------------------------- \17\ The Exchange will not sell rights to third parties to operate wireless equipment on the Data Center 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. --------------------------------------------------------------------------- Finally, the Exchange operates in a highly competitive market in which exchanges offer co-location services as a means to facilitate the trading and other market activities of those market participants who believe that co-location enhances the efficiency of their operations. Accordingly, fees charged for co-location services are constrained by the active competition for the order flow of, and other business from, such market participants. If a particular exchange charges excessive fees for co-location services, affected market participants will opt to terminate their co-location arrangements with that 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. Accordingly, the exchange charging excessive fees would stand to lose not only co-location revenues but also the liquidity of the formerly co-located trading firms, which could have additional follow-on effects on the market share and revenue of the affected exchange. 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 Because the foregoing 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 for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \18\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\19\ A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative prior to 30 days after the date of filing.\20\ Rule 19b-4(f)(6)(iii), however, permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest.\21\ --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(3)(a)(iii). \19\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. \20\ 17 CFR 240.19b-4(f)(6)(iii). \21\ Id. --------------------------------------------------------------------------- The Exchange has requested that the Commission waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange notes that waiver of the operative delay will ensure that Existing Customers are able to continue their existing wireless connectivity to TSX after the Acquisition, without any cessation of service. The Commission believes that it is consistent with the protection of investors and the public interest to waive the 30-day operative delay and hereby waives the 30-day operative delay and designates the proposal operative upon filing.\22\ --------------------------------------------------------------------------- \22\ For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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) of the Act \23\ to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \23\ 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 [[Page 12662]] 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 Number SR-NYSE-2017-05 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 Number SR-NYSE-2017-05. 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 Number SR-NYSE-2017-05, and should be submitted on or before March 27, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\24\ --------------------------------------------------------------------------- \24\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-04208 Filed 3-3-17; 8:45 am] BILLING CODE 8011-01-P
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C. Self-Regulatory Organization’s subject line if email is used. To help the 15, 2017, New York Stock Exchange
Statement on Comments on the Commission process and review your LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
Proposed Rule Change Received From comments more efficiently, please use with the Securities and Exchange
Members, Participants, or Others only one method. The Commission will Commission (the ‘‘Commission’’) the
Written comments were neither post all comments on the Commission’s proposed rule change as described in
solicited nor received. Internet Web site (http://www.sec.gov/ Items I and II below, which Items have
rules/sro.shtml). Copies of the been prepared by the self-regulatory
III. Date of Effectiveness of the submission, all subsequent organization. The Commission is
Proposed Rule Change and Timing for amendments, all written statements publishing this notice to solicit
Commission Action with respect to the proposed rule comments on the proposed rule change
Because the foregoing proposed rule change that are filed with the from interested persons.
change does not: (i) Significantly affect Commission, and all written
communications relating to the I. Self-Regulatory Organization’s
the protection of investors or the public Statement of the Terms of the Substance
interest; (ii) impose any significant proposed rule change between the
Commission and any person, other than of the Proposed Rule Change
burden on competition; and (iii) become
operative for 30 days after the date of those that may be withheld from the The Exchange proposes to change the
the filing, or such shorter time as the public in accordance with the co-location services offered by the
Commission may designate, it has provisions of 5 U.S.C. 552, will be Exchange to include a means for co-
become effective pursuant to 19(b)(3)(A) available for Web site viewing and located Users to receive the Toronto
of the Act 16 and Rule 19b–4(f)(6) 17 printing in the Commission’s Public Stock Market market data feed through
thereunder. Reference Room, 100 F Street NE., a wireless connection. In addition, the
At any time within 60 days of the Washington, DC 20549, on official proposed rule change reflects changes to
filing of the proposed rule change, the business days between the hours of the Exchange’s Price List related to the
Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the proposed service. The proposed rule
temporarily suspend such rule change if filing also will be available for change is available on the Exchange’s
it appears to the Commission that such inspection and copying at the principal Web site at www.nyse.com, at the
action is necessary or appropriate in the office of the Exchange. All comments principal office of the Exchange, and at
public interest, for the protection of received will be posted without change; the Commission’s Public Reference
investors, or otherwise in furtherance of the Commission does not edit personal Room.
the purposes of the Act. If the identifying information from
submissions. You should submit only II. Self-Regulatory Organization’s
Commission takes such action, the Statement of the Purpose of, and
Commission shall institute proceedings information that you wish to make
available publicly. All submissions Statutory Basis for, the Proposed Rule
to determine whether the proposed rule Change
should refer to File Number SR–MIAX–
should be approved or disapproved.
2017–09 and should be submitted on or In its filing with the Commission, the
IV. Solicitation of Comments before March 27, 2017. self-regulatory organization included
Interested persons are invited to For the Commission, by the Division of statements concerning the purpose of,
submit written data, views, and Trading and Markets, pursuant to delegated and basis for, the proposed rule change
arguments concerning the foregoing, authority.18 and discussed any comments it received
including whether the proposed rule Eduardo A. Aleman, on the proposed rule change. The text
change is consistent with the Act. Assistant Secretary. of those statements may be examined at
Comments may be submitted by any of [FR Doc. 2017–04205 Filed 3–3–17; 8:45 am] the places specified in Item IV below.
the following methods: BILLING CODE 8011–01–P
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
Electronic Comments of the most significant parts of such
• Use the Commission’s Internet SECURITIES AND EXCHANGE statements.
comment form (http://www.sec.gov/ COMMISSION A. Self-Regulatory Organization’s
rules/sro.shtml); or Statement of the Purpose of, and
[Release No. 34–80125; File No. SR–NYSE–
• Send an email to rule-comments@ 2017–05] Statutory Basis for, the Proposed Rule
sec.gov. Please include File Number SR– Change
MIAX–2017–09 on the subject line. Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of 1. Purpose
Paper Comments
Filing and Immediate Effectiveness of The Exchange proposes to change the
• Send paper comments in triplicate Proposed Rule Change to the Co- co-location 4 services offered by the
to Secretary, Securities and Exchange Location Services Offered by the Exchange to include a means for Users 5
Commission, 100 F Street NE., Exchange Adding a Wireless
Washington, DC 20549–1090. Connection to Toronto Stock 4 The Exchange initially filed rule changes
All submissions should refer to File Exchange (TSX) Third Party Data relating to its co-location services with the
Number SR–MIAX–2017–09. This file Securities and Exchange Commission
February 28, 2017. (‘‘Commission’’) in 2010. See Securities Exchange
number should be included on the Act Release No. 62960 (September 21, 2010), 75 FR
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Pursuant to Section 19(b)(1) 1 of the 59310 (September 27, 2010) (SR–NYSE–2010–56).
16 15 U.S.C. 78s(b)(3)(A). Securities Exchange Act of 1934 (the The Exchange operates a data center in Mahwah,
17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 New Jersey (the ‘‘Data Center’’) from which it
4(f)(6) requires a self-regulatory organization to give notice is hereby given that on February provides co-location services to Users.
the Commission written notice of its intent to file 5 For purposes of the Exchange’s co-location
the proposed rule change at least five business days 18 17
services, a ‘‘User’’ means any market participant
prior to the date of filing of the proposed rule CFR 200.30–3(a)(12). that requests to receive co-location services directly
1 15 U.S.C.78s(b)(1).
change, or such shorter time as designated by the from the Exchange. See Securities Exchange Act
2 15 U.S.C. 78a.
Commission. The Exchange has satisfied this Release No. 76008 (September 29, 2015), 80 FR
requirement. 3 17 CFR 240.19b–4. 60190 (October 5, 2015) (SR–NYSE–2015–40). As
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change is consistent with the Act. SECURITIES AND EXCHANGE ADDRESSES: Secretary, U.S. Securities
Comments may be submitted by any of COMMISSION and Exchange Commission, 100 F Street
the following methods: NE., Washington, DC 20549–1090;
[Investment Company Act Release No. Applicants: c/o Jill T. McGruder, 303
Electronic Comments Broadway, Suite 1100, Cincinnati, Ohio
32515; File No. 812–14612]
• Use the Commission’s Internet 45202.
comment form (http://www.sec.gov/ Touchstone Investment Trust, et al.; FOR FURTHER INFORMATION CONTACT:
rules/sro.shtml); or Notice of Application Steven I. Amchan, Senior Counsel, at
(202) 551–6826 or David J. Marcinkus,
• Send an email to rule-comments@ February 28, 2017.
Branch Chief, at (202) 551–6821
sec.gov. Please include File Number SR– AGENCY: Securities and Exchange
(Division of Investment Management,
NYSE–2017–05 on the subject line. Commission (‘‘Commission’’).
Chief Counsel’s Office).
ACTION: Notice of an application for an
Paper Comments SUPPLEMENTARY INFORMATION: The
order pursuant to: (a) Section 6(c) of the
following is a summary of the
• Send paper comments in triplicate Investment Company Act of 1940
application. The complete application
to Secretary, Securities and Exchange (‘‘Act’’) granting an exemption from
may be obtained via the Commission’s
Commission, 100 F Street NE., sections 18(f) and 21(b) of the Act; (b)
Web site by searching for the file
Washington, DC 20549–1090. section 12(d)(1)(J) of the Act granting an
number, or an applicant using the
exemption from section 12(d)(1) of the
All submissions should refer to File Company name box, at http://
Act; (c) sections 6(c) and 17(b) of the
Number SR–NYSE–2017–05. This file www.sec.gov/search/search.htm or by
Act granting an exemption from sections
number should be included on the calling (202) 551–8090.
17(a)(1), 17(a)(2) and 17(a)(3) of the Act;
subject line if email is used. To help the and (d) section 17(d) of the Act and rule Summary of the Application
Commission process and review your 17d–1 under the Act to permit certain 1. Applicants request an order that
comments more efficiently, please use joint arrangements and transactions. would permit the applicants to
only one method. The Commission will Applicants request an order that would participate in an interfund lending
post all comments on the Commission’s permit certain registered open-end facility where each Fund could lend
Internet Web site (http://www.sec.gov/ management investment companies to money directly to and borrow money
rules/sro.shtml). Copies of the participate in a joint lending and directly from other Funds to cover
submission, all subsequent borrowing facility. unanticipated cash shortfalls, such as
amendments, all written statements unanticipated redemptions or trade
with respect to the proposed rule APPLICANTS: Touchstone Investment fails.1 The Funds will not borrow under
change that are filed with the Trust, Touchstone Strategic Trust, the facility for leverage purposes and
Commission, and all written Touchstone Variable Series Trust, the loans’ duration will be no more than
communications relating to the Touchstone Funds Group Trust, and 7 days.2
proposed rule change between the Touchstone Institutional Funds Trust, 2. Applicants anticipate that the
Commission and any person, other than registered under the Act as open-end proposed facility would provide a
those that may be withheld from the management investment companies borrowing Fund with a source of
public in accordance with the with one or more series, and liquidity at a rate lower than the bank
provisions of 5 U.S.C. 552, will be Touchstone Advisors, Inc. (the borrowing rate at times when the cash
available for Web site viewing and ‘‘Adviser’’), registered as an investment position of the Fund is insufficient to
printing in the Commission’s Public adviser under the Investment Advisers meet temporary cash requirements. In
Reference Room, 100 F Street NE., Act of 1940. addition, Funds making short-term cash
Washington, DC 20549 on official FILING DATES: The application was filed loans directly to other Funds would
business days between the hours of on February 11, 2016, and amended on earn interest at a rate higher than they
10:00 a.m. and 3:00 p.m. Copies of such July 11, 2016 and January 26, 2017. otherwise could obtain from investing
filing also will be available for HEARING OR NOTIFICATION OF HEARING: their cash in repurchase agreements or
inspection and copying at the principal An order granting the requested relief certain other short term money market
office of the Exchange. All comments will be issued unless the Commission instruments. Thus, applicants assert that
received will be posted without change; orders a hearing. Interested persons may the facility would benefit both
the Commission does not edit personal request a hearing by writing to the borrowing and lending Funds.
identifying information from Commission’s Secretary and serving 3. Applicants agree that any order
submissions. You should submit only applicants with a copy of the request, granting the requested relief will be
information that you wish to make personally or by mail. Hearing requests subject to the terms and conditions
available publicly. All submissions should be received by the Commission
should refer to File Number SR–NYSE– by 5:30 p.m. on March 27, 2017 and 1 Applicants request that the order apply to the
2017–05, and should be submitted on or should be accompanied by proof of applicants and to any existing or future registered
open-end management investment company or
before March 27, 2017. service on the applicants, in the form of series thereof for which the Adviser or any
For the Commission, by the Division of an affidavit, or, for lawyers, a certificate successor thereto or an investment adviser
of service. Pursuant to Rule 0–5 under controlling, controlled by, or under common
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Trading and Markets, pursuant to delegated
the Act, hearing requests should state control with the Adviser or any successor thereto
authority.24 serves as investment adviser (each a ‘‘Fund’’ and
Eduardo A. Aleman,
the nature of the writer’s interest, any collectively the ‘‘Funds’’ and each such investment
facts bearing upon the desirability of a adviser an ‘‘Adviser’’). For purposes of the
Assistant Secretary. hearing on the matter, the reason for the requested order, ‘‘successor’’ is limited to any entity
[FR Doc. 2017–04208 Filed 3–3–17; 8:45 am] request, and the issues contested. that results from a reorganization into another
jurisdiction or a change in the type of a business
BILLING CODE 8011–01–P Persons who wish to be notified of a organization.
hearing may request notification by 2 Any Fund, however, will be able to call a loan
24 17 CFR 200.30–3(a)(12). writing to the Commission’s Secretary. on one business day’s notice.
VerDate Sep<11>2014 19:24 Mar 03, 2017 Jkt 241001 PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 E:\FR\FM\06MRN1.SGM 06MRN1](https://thefederalregister.org/doc/82_FR_12700/page/5.svg)
Document Created: 2017-03-04 00:07:11
Document Modified: 2017-03-04 00:07:11
| 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 | 82 FR 12658 |
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