82 FR 3061 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule and the NYSE Arca Equities Schedule of Fees and Charges Related to Co-Location Services To Increase LCN and IP Network Fees and Add a Description of Access to Trading and Execution Services and Connectivity to Included Data Products
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 6 (January 10, 2017)
Federal Register Volume 82, Issue 6 (January 10, 2017)
| Page Range | 3061-3067 | |
| FR Document | 2017-00213 |
[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)] [Notices] [Pages 3061-3067] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-00213] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79729; File No. SR-NYSEArca-2016-172] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule and the NYSE Arca Equities Schedule of Fees and Charges Related to Co-Location Services To Increase LCN and IP Network Fees and Add a Description of Access to Trading and Execution Services and Connectivity to Included Data Products January 4, 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 December 22, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE Arca Options Fee Schedule and the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services related to co-location services to provide a more detailed description of the access to trading and execution services and connectivity to data provided to Users with local area networks available in the data center; and (b) modify certain fees for access to the local area networks in the Exchange's data center. 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 amend the Fee Schedules related to co- location \4\ services offered by the Exchange to (a) provide a more detailed description of the access to trading and execution services and connectivity to data provided to Users \5\ with connections to the Liquidity Center Network (``LCN'') and internet protocol (``IP'') network, [[Page 3062]] local area networks available in the data center; and (b) modify certain fees for access to the LCN and IP networks. The Exchange proposes to implement the fee changes effective January 1, 2017. --------------------------------------------------------------------------- \4\ The Exchange initially filed rule changes relating to its co-location services with the Securities and Exchange Commission (``Commission'') in 2010. See Securities Exchange Act Release No. 63275 (November 8, 2010), 75 FR 70048 (November 16, 2010) (SR- NYSEArca-2010-100) (the ``Original Co-location Filing''). The Exchange operates a data center in Mahwah, New Jersey (the ``data center'') from which it provides co-location services to Users. \5\ For purposes of the Exchange's co-location services, a ``User'' means any market participant that requests to receive co- location services directly from the Exchange. See Securities Exchange Act Release No. 76010 (September 29, 2015), 80 FR 60197 (October 5, 2015) (SR-NYSEArca-2015-82). As specified in the Fee Schedules, a User that incurs co-location fees for a particular co- location service pursuant thereto would not be subject to co- location fees for the same co-location service charged by the Exchange's affiliates New York Stock Exchange LLC (``NYSE LLC'') and NYSE MKT LLC (``NYSE MKT and, together with NYSE LLC, the ``Affiliate SROs''). See Securities Exchange Act Release No. 70173 (August 13, 2013), 78 FR 50459 (August 19, 2013) (SR-NYSEArca-2013- 80). --------------------------------------------------------------------------- The Exchange offers LCN access of 1, 10 and 40 Gigabits (``Gb'') as well as a lower-latency 10 Gb LCN connection, referred to as the ``LCN 10 Gb LX.'' \6\ The Exchange offers IP network access in 1, 10 and 40 Gb capacities.\7\ A User also may purchase access to the LCN or IP network through purchase of 1 Gb or 10 Gb bundled network access or a Partial Cabinet Solution bundle, which include 1 and 10 Gb LCN and IP network connections.\8\ --------------------------------------------------------------------------- \6\ See Original Co-location Filing, supra note 4, at 70050; and Securities Exchange Act Release Nos. 70173 (Aug. 13, 2013), 78 FR 50459 (Aug. 19, 2013) (SR-NYSEArca-2013-80) (notice of filing and immediate effectiveness of proposed rule change to offer LCN 40 Gb connection) and 70887 (Nov. 15, 2013), 78 FR 69897 (Nov. 21, 2013) (SR-NYSEArca-2013-123) (notice of filing and immediate effectiveness of proposed rule change to offer LCN 10 Gb LX connection). \7\ See Securities Exchange Act Release Nos. 74219 (February 6, 2015), 80 FR 7899 (February 12, 2015) (SR-NYSEArca-2015-03) (notice of filing and immediate effectiveness of proposed rule change to offer IP network connections as co-location services) (the ``IP Network Release'') and 76372 (Nov. 5, 2015), 80 FR 70039 (Nov. 12, 2015) (SR-NYSEArca-2015-105) (notice of filing and immediate effectiveness of proposed rule change to offer 40 Gb IP network connection). \8\ See Original Co-location Filing, supra note 4, at 70050; and Securities Exchange Act Release No. 77070 (February 5, 2016), 81 FR 7401 (February 11, 2016) (SR-NYSEArca-2015-102) (notice of filing and accelerated approval of proposed rule change to offer Partial Cabinet Bundle Options). --------------------------------------------------------------------------- Access to Trading and Execution Services and Connectivity to Data As the Exchange has previously stated, a User's connection to the LCN or IP network provides it access to the Exchange's trading and execution systems and Exchange market data products.\9\ More specifically, when a User purchases access to the LCN or IP network, it will receive access to the trading and execution systems of the Exchange and its Affiliate SROs (the ``Exchange Systems''), provided the User has authorization from the Exchange or relevant Affiliate SRO. In addition, when a User purchases access to the LCN or IP network, it will receive connectivity to certain market data products (the ``Included Data Products''), provided the User has have entered into a contract with the provider of the data feed. The Exchange proposes to revise the Fee Schedules to provide a more detailed description of the access to the Exchange Systems (``Access'') and connectivity to Included Data Products (``Connectivity'') that comes with connections to the LCN or IP network when the User has authorization from the Exchange or Affiliate SRO for such access or has a contract from the market data provider for such connectivity. --------------------------------------------------------------------------- \9\ See Original Co-location Filing, supra note 4, at 70049 (``SFTI and LCN both provide Users with access to the Exchange's trading and execution systems and to the Exchange's proprietary market data products.'') and IP Network Release, supra note 7, at 7899 (``Like the LCN, the IP network provides Users with access to the Exchange's trading and execution systems and to the Exchanges' proprietary market data products.''). The IP network was previously sometimes referred to as SFTI. See id. --------------------------------------------------------------------------- Access to certification and testing feeds comes with the purchase of some Included Data Products from the provider of such data. Certification feeds are used to certify that a User conforms to any relevant technical requirements for receipt of data or access to Exchange Systems. Test feeds provide Users an environment in which to conduct tests with non-live data, including testing for upcoming Exchange releases and product enhancements or the User's own software development. Such feeds are solely used for certification and testing and do not carry live production data. When access to certification and testing feeds comes with the purchase of an Included Data Product from the provider of such data, the purchase of access to the IP network from the Exchange \10\ will provide Connectivity to such certification and testing feeds. --------------------------------------------------------------------------- \10\ Access to certification and testing feeds is only available over the IP network. A User that does not have an IP network connection may obtain an IP network circuit for purposes of testing and certification for free for three months. See IP Network Release, supra note 7, at 7899. --------------------------------------------------------------------------- The Exchange provides Access and Connectivity as conveniences to Users. Use of Access or Connectivity is completely voluntary, and several other access and connectivity options are available to a User. As 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 Secure Financial Transaction Infrastructure (``SFTI'') network, or a combination thereof.\11\ --------------------------------------------------------------------------- \11\ A User that opted to obtain connectivity to Included Data Products through another User, a telecommunication provider, third party wireless network, or the SFTI network would receive the corresponding testing and certification feeds. --------------------------------------------------------------------------- Access to Exchange Systems As the Exchange has previously stated, Users' connections to the LCN or IP networks include access to Exchange Systems when the User has authorization from the Exchange or relevant Affiliate SRO.\12\ The Exchange notes that including access to Exchange Systems with the purchase of access to the LCN or IP network is consistent with Nasdaq's colocation service, which does not charge its co-located customers a separate fee for access to Exchange Systems.\13\ --------------------------------------------------------------------------- \12\ See note 9, supra. \13\ See Nasdaq Stock Market Rule 7034--Connectivity to Nasdaq. --------------------------------------------------------------------------- Accordingly, the Exchange proposes to add a new note to the Fee Schedules stating the following: When a User purchases access to the LCN or IP network, it receives the ability to access the trading and execution systems of the NYSE, NYSE MKT and NYSE Arca (Exchange Systems), subject, in each case, to authorization by the NYSE, NYSE MKT or NYSE Arca, as applicable. Such access includes access to the 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. A User can change the access it receives at any time, subject to authorization by NYSE, NYSE MKT or NYSE Arca, as applicable. NYSE, NYSE MKT and NYSE Arca also offer access to Exchange Systems to their members, such that a User does not have to purchase access to the LCN or IP network to obtain access to Exchange Systems. Connectivity to Included Data Products The majority of the Included Data Products are proprietary feeds of the Exchange and the Affiliate SROs.\14\ The Included Data Products also include the data feeds disseminated by the Consolidated Tape Association (``CTA'') (such data feeds, the ``NMS feeds''). CTA is responsible for disseminating [[Page 3063]] 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.\15\ The NMS feeds include the Consolidated Tape System and Consolidated Quote System data streams, as well as Options Price Reporting Authority feeds. --------------------------------------------------------------------------- \14\ See Securities Exchange Act Release Nos. 44138 (December 7, 2001), 66 FR 64895 (December 14, 2001) (SR-NYSE-2001-42) (establishing fees for NYSE OpenBook); 50844 (December 13, 2004), 69 FR 76806 (December 22, 2004) (SR-NYSE-2004-53) (establishing fee for NYSE Alerts); 59290 (January 23, 2009) 74 FR 5707 (January 30, 2009) (SR-NYSE- 2009-05) (establishing pilot program for NYSE Trades); 59543 (March 9, 2009), 74 FR 11159 (March 16, 2009) (establishing fee for NYSE Order Imbalances); 62181 (May 26, 2010), 75 FR 31488 (June 3, 2010) (SR-NYSE-2010-30) (establishing NYSE BBO); 65669 (Nov. 2, 2011), 76 FR 69311 (Nov. 8, 2011) (SR-NYSEArca-2011-78) (establishing the NYSE Arca Integrated Feed); 73553 (Nov. 6, 2014), 79 FR 67491 (Nov. 13, 2014) (SR-NYSE-2014-40) (establishing the NYSE Best Quote & Trades Data Feed); 74128 (Jan. 23, 2015), 80 FR 4951 (Jan. 29, 2015) (SR-NYSE-2015-03) (establishing the NYSE Integrated Feed); 74127 (Jan. 23, 2015), 80 FR 4956 (Jan. 29, 2015) (SR- NYSEMKT-2015-06) (establishing the NYSE MKT Integrated Feed); and 76968 (January 22, 2016), 81 FR 4689 (January 27, 2016) (establishing NYSE Arca Order Imbalances). \15\ The Included Data Products do not include the data feeds disseminated pursuant to the ``Joint Self-Regulatory Organization Plan Governing the Collection, Consolidation and Dissemination of Quotation and Transaction Information for Nasdaq-Listed Securities Traded on Exchanges on an Unlisted Trading Privilege Basis'' (the ``UTP Plan''). The UTP Plan is responsible for disseminating consolidated, real-time trade and quote information in Nasdaq Stock Exchange LLC listed securities (Network C). --------------------------------------------------------------------------- In order to connect to an Included Data Product, a User enters into a contract with the provider of such data, pursuant to which the User is charged for the Included Data Product. After the User and data provider enter into the contract and the Exchange receives authorization from the provider of the data feed, the Exchange provides the User with connectivity to the Included Data Product over the User's LCN or IP network port. The Exchange does not charge the User separately for such connectivity to the Included Data Product, as it is included in the purchase of the access to the LCN or IP network. The Included Data Products are available over both the LCN and IP network.\16\ For a User that purchases access to the LCN and IP network, the Exchange works with such User to allocate its connectivity to Included Data Products between its LCN and IP network connections. Some Included Data Products require a network connection with a minimum Gb size in order to accommodate the feed.\17\ The Included Data Products do not provide access or order entry to the Exchange's execution system. --------------------------------------------------------------------------- \16\ As noted above, certification and testing feeds included by a data provider with an Included Data Product are only available over the IP network. \17\ Because each Included Data Product uses part of a User's bandwidth, a User may wish to limit the number of Included Data Products that it receives to those that it requires. --------------------------------------------------------------------------- The Exchange offers connectivity to Included Data Products in three forms: As a resilient feed, as ``Feed A'' or as ``Feed B.'' Resilient feeds include two copies of the same feed, for redundancy purposes. Feed A and Feed B are identical feeds.\18\ --------------------------------------------------------------------------- \18\ A User that wants redundancy would connect to both Feed A and Feed B or two resilient feeds, using two different ports. A User may opt to connect both Feed A and Feed B to the same port, the effect of which would be the same as if the User had connected to a resilient feed. The form of feed that a User selects may affect the connection it requires. 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. --------------------------------------------------------------------------- For some Included Data Products, connectivity to identical Feeds A and B is only available on the IP network. The Included Data Products are as follows: ------------------------------------------------------------------------ ------------------------------------------------------------------------- NMS Feeds ------------------------------------------------------------------------ NYSE: NYSE Alerts NYSE BBO NYSE Integrated Feed NYSE OpenBook NYSE Order Imbalances NYSE Trades ------------------------------------------------------------------------ NYSE Amex Options ------------------------------------------------------------------------ NYSE Arca: NYSE ArcaBook NYSE Arca BBO NYSE Arca Integrated Feed NYSE Arca Order Imbalances NYSE Arca Trades NYSE Arca Options NYSE Best Quote and Trades (BQT) NYSE Bonds NYSE MKT: NYSE MKT Alerts NYSE MKT BBO NYSE MKT Integrated Feed NYSE MKT OpenBook NYSE MKT Order Imbalances NYSE MKT Trades ------------------------------------------------------------------------ In addition to the above list of Included Data Products, the Exchange proposes to add the following language to the Fee Schedules: When a User purchases access to the LCN or IP network it receives connectivity to any of the Included Data Products that it selects, subject to any technical provisioning requirements and authorization from the provider of the data feed. Market data fees for the Included Data Products are charged by the provider of the data feed. A User can change the Included Data Products to which it receives connectivity at any time, subject to authorization from the provider of the data feed. The Exchange is not the exclusive method to connect to the Included Data Products. Fees for Access to the LCN and IP Network Users that connect to the LCN or IP network pay an initial non- recurring charge and a monthly recurring charge (``MRC''). A User that purchases five 10 GB LCN Circuits receives the sixth 10 GB LCN Circuit without being subject to an additional MRC. The Exchange proposes to amend the MRCs for 10 and 40 Gb LCN circuits, 10 Gb LX LCN circuits, 10 and 40 Gb IP network circuits, and the 10 Gb bundled network access (together, the ``Network Access Services''). The Exchange has not increased the MRCs for the Network Access Services since they were first filed: The proposed change will be the first increase in such fees.\19\ --------------------------------------------------------------------------- \19\ The 10 Gb LCN circuits and 10 Gb bundled network access were first filed in 2010, and the 40 Gb LCN and 10 Gb LX LCN circuits were first filed in 2013. The 10 and 40 Gb IP network circuits were first filed in 2015. See Original Co-location Filing, supra note 4, at 70050; Securities Exchange Act Release Nos. 65238 (Aug. 31, 2011), 76 FR 55431 (Sept. 7, 2011) (SR-NYSEArca-2011-64) (notice of filing and immediate effectiveness of proposed rule change adding MRC for 10 Gb circuit); 70286 (Aug. 29, 2013), 78 FR 54710 (Sept. 5, 2013) (SR-NYSEArca-2013-82) (notice of filing and immediate effectiveness of proposed rule change to offer LCN 40 Gb connection); 70981 (Dec. 4, 2013), 78 FR 74203 (Dec. 10, 2013) (SR- NYSEArca-2013-131) (notice of filing and immediate effectiveness of proposed rule change amending price list in order to provide fees for LCN 10 Gb LX); 74219 (Feb. 6, 2015), 80 FR 7899 (Feb. 12, 2015) (SR-NYSEArca-2015-03) (notice of filing and immediate effectiveness of proposed rule change to offer 1 Gb and 10 Gb IP network connections); and 76372 (Nov. 5, 2015), 80 FR 70039 (Nov. 12, 2015) (SR-NYSEArca-2015-105) (notice of filing and immediate effectiveness of proposed rule change to offer 40 Gb IP network connection). --------------------------------------------------------------------------- The proposed changes to the Network Access Service MRCs are as follows: ---------------------------------------------------------------------------------------------------------------- Amount of Amount of Type of service Description current MRC proposed MRC ---------------------------------------------------------------------------------------------------------------- LCN Access.................................... 10 Gb Circuit................... $12,000 $14,000 LCN Access.................................... 10 Gb LX Circuit................ 20,000 22,000 LCN Access.................................... 40 Gb Circuit................... 20,000 22,000 Bundled Network Access (2 LCN connections, 2 10 Gb Bundle.................... 47,000 53,000 IP network connections, and 2 optic connections to outside access center). IP Network Access............................. 10 Gb Circuit................... 10,000 11,000 [[Page 3064]] IP Network Access............................. 40 Gb Circuit................... 17,000 18,000 ---------------------------------------------------------------------------------------------------------------- The initial non-recurring charge for the Network Access Services would not change, and Users that purchase five 10 Gb LCN circuits will continue to receive the sixth 10 Gb LCN Circuit without an additional MRC. The Exchange does not propose to change the fees associated with 1 Gb LCN and 1 Gb IP network access, 1 Gb bundled network access, or the Partial Cabinet Solution bundles. Currently, the Fee Schedules use both ``Gb'' and ``GB'' as an abbreviation for gigabits. To make the usage consistent, the Exchange proposes to make non-substantive changes to the Fee Schedules to replace ``GB'' with ``Gb.'' General As is the case with all Exchange co-location arrangements, (i) neither a User nor any of the User's customers would be permitted to submit orders directly to the Exchange unless such User or customer is a member organization, a Sponsored Participant or an agent thereof (e.g., a service bureau providing order entry services); (ii) use of the co-location services proposed herein would be completely voluntary and available to all Users on a non-discriminatory basis; \20\ 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 Affiliate SROs.\21\ --------------------------------------------------------------------------- \20\ 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, as compared to Users that are not co-located, in sending orders to, and receiving market data from, the Exchange. \21\ See SR-NYSEArca-2013-80, supra note 5, at 50459. The Affiliate SROs have also submitted substantially the same proposed rule change to propose the changes described herein. See SR-NYSE- 2016-92 and SR-NYSEMKT-2016-126. --------------------------------------------------------------------------- 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,\22\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\23\ 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. --------------------------------------------------------------------------- \22\ 15 U.S.C. 78f(b). \23\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that revising the Fee Schedules to provide a more detailed description of the Access and Connectivity Users receive with their purchase of access to the LCN or IP network would remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general, protect investors and the public interest because the proposed changes would make the descriptions of access to the LCN and IP network more accessible and transparent, thereby providing market participants with clarity as to what connectivity is included in the purchase of access to the LCN and IP network. Including the more detailed description of Access and Connectivity in the Fee Schedules is consistent with Nasdaq's Rule 7034, which includes similar information.\24\ --------------------------------------------------------------------------- \24\ See Nasdaq Stock Market Rule 7034--Market Data Connectivity (``Pricing is for connectivity only and is similar to connectivity fees imposed by other vendors. The fees are generally based on the amount of bandwidth needed to accommodate a particular feed and Nasdaq is not the exclusive method to get market data connectivity. Market data fees are charged independently by the Nasdaq Stock Market and other exchanges.''). --------------------------------------------------------------------------- Co-location was created to permit Users ``to rent space on premises controlled by the Exchange in order that they may locate their electronic servers in close physical proximity to the Exchange's trading and execution systems.'' \25\ The expectation was that normally Users ``would expect reduced latencies in sending orders to the Exchange and in receiving market data from the Exchange.'' \26\ Accordingly, the Exchange believes the Access and Connectivity is directly related to the purpose of co-location, and so revising the Fee Schedules to increase the description of such Access and Connectivity would remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general protect investors and the public interest by increasing the transparency around Access and Connectivity. --------------------------------------------------------------------------- \25\ Original Co-Location Filing, supra note 4, at 70049. \26\ Id. --------------------------------------------------------------------------- Further, the Exchange believes that revising the Fee Schedules to provide a more detailed description of the Access and Connectivity Users receive with their purchase of access to the LCN or IP network would promote just and equitable principles of trade and remove impediments to, and perfect the mechanisms of, a free and open market and a national market system as it would make clear that all Users that voluntarily select to access the LCN or IP network would receive the same Access and Connectivity, and would not be subject to a charge above and beyond the fee paid for the relevant LCN or IP network access. Users are not required to use any of their bandwidth to access Exchange Systems or connect to an Included Data Product unless they wish to do so. Rather, a User only receives the Access and Connectivity that it selects, and a User can change what Access or Connectivity it receives at any time, subject to authorization from the data provider or relevant Exchange or Affiliate SRO. The Exchange believes that the proposed changes remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general, protect investors and the public interest because, by offering Access and Connectivity, the Exchange gives each User additional options for addressing its access and connectivity needs, responding to User demand for access and connectivity options. Providing Access and Connectivity helps each User tailor its data center operations to the [[Page 3065]] requirements of its business operations by allowing it to select the form and latency of access and connectivity that best suits its needs. The Exchange provides Access and Connectivity as conveniences to Users. Use of Access or Connectivity is completely voluntary, and each User has several other access and connectivity options available to it. As 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. Similarly, the Exchange believes that the proposed fee changes remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general, protect investors and the public interest because, by offering the Network Access Services, the Exchange gives each User options for access to the LCN and IP network, responding to User demand for options. Users have the convenience of choosing among the array of different Network Access Services available, as well as the 1 Gb LCN and 1 Gb IP network access options, 1 Gb bundled network access and Partial Cabinet Solutions, helping them tailor their data center operations to the requirements of their business operations by allowing them to select the capacity, form and latency of connectivity that best suits their needs. The Exchange believes that the proposed fee changes remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general, protect investors and the public interest because the Exchange provides Network Access Services as conveniences to Users. Use of Network Access Services is completely voluntary, and each User has several other options available to it. As alternatives to using the Network Access Services provided by the Exchange, a User may access or connect to the Exchange through another User, as well as 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. The Exchange believes that conforming the use of ``Gb'' would remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general, protect investors and the public interest because the proposed changes would make the Fee Schedules more transparent, thereby providing market participants with additional clarity. The Exchange also believes that the proposed rule changes are consistent with Section 6(b)(4) of the Act,\27\ 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. --------------------------------------------------------------------------- \27\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that the proposed changes are consistent with Section 6(b)(4) of the Act \28\ 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. --------------------------------------------------------------------------- \28\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that the proposed changes to the Network Access Service MRCs would provide for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities, and are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers, because the Network Access Services 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 purchase an Network Access Service would be charged the same amount for the same service. As is currently the case, the purchase of any colocation service (including Network Access Services) would be completely voluntary. Furthermore, each of the Network Access Services can be purchased independently of each other, and independently of any other colocation services or products that a User may choose. The Exchange believes that the proposed changes to the Network Access Service MRCs are reasonable, equitably allocated and not unfairly discriminatory because the MRCs for the Network Access Services have been the same since they were first filed, with some MRCs dating to the inception of co-location in 2010.\29\ During the time since the MRCs for the Network Access Services were filed, however, the Exchange has made numerous improvements to the network hardware and technology infrastructure. The Exchange has expanded the network infrastructure to keep pace with the increased number of services available to Users, including the increasing demand for bandwidth, and has established additional administrative controls. The Exchange offers the Network Access Services as conveniences 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 the Network Access Services, including by responding to any production issues. The Exchange accordingly believes that the proposed changes to the Network Access Service MRCs will allow them to more accurately reflect the value of the services provided. --------------------------------------------------------------------------- \29\ See note 19, supra. The 10 LCN circuits and 1 Gb bundled network access were first filed in 2010, and the 40 Gb LCN and 10 Gb LX LCN circuits were first filed in 2013. The 10 and 40 Gb IP network circuits were first filed in 2015. --------------------------------------------------------------------------- The Exchange believes the proposed fees are reasonable because they allow the Exchange to defray or cover the costs associated with offering the Network Access Services while providing Users the benefit of choosing among the array of different Network Access Services available, as well as the 1 Gb LCN and 1 Gb IP network access options, 1 Gb bundled network access and Partial Cabinet Solutions, helping them tailor their data center operations to the requirements of their business operations by allowing them to select [[Page 3066]] the capacity, form and latency of connectivity that best suits their needs. In addition, the Exchange believes the proposed increases in the MRCs for the Network Access Services are reasonable because they reflect the inclusion of additional data products in the list of Included Data Products. More specifically, the Exchange has opted to include connectivity to the three integrated feeds and the NYSE BQT as Included Data Products. The Exchange believes that its proposed MRCs for the Network Access Services are comparable to the fees Nasdaq charges its co-location customers. For instance, the ongoing monthly fees for 40 Gb and 10 Gb fiber connections to Nasdaq are $20,000 and $10,000, respectively, compared to the proposed $22,000 and $14,000 for the 40 Gb and 10 Gb LCN circuits and $18,000 and $11,000 for the 40 Gb and 10 Gb IP network circuits, respectively.\30\ --------------------------------------------------------------------------- \30\ See Nasdaq Stock Market Rule 7034--Connectivity to Nasdaq. --------------------------------------------------------------------------- Excluding the Partial Cabinet Solutions with 10 Gb connections to the LCN and IP networks from the proposed changes to MRCs is a business decision that the Exchange believes is reasonable, equitably allocated and not unfairly discriminatory because the MRCs for the Partial Cabinet Solutions have been in place less than a year, and so the Exchange believes they more accurately reflect the value of the services provided than those in place for longer periods.\31\ The Exchange believes that excluding the Partial Cabinet Solution MRCs from the present proposed changes would continue to make it more cost effective for smaller Users, including those with minimal power or cabinet space demands or those for which the costs attendant with having a dedicated cabinet or greater network connection bandwidth are too burdensome, to utilize co-location.\32\ --------------------------------------------------------------------------- \31\ The order approving the proposed rule change to provide that co-location services include the Partial Cabinet Solution Bundles was issued in February, 2016. See Securities Exchange Act Release No. 77070, supra note 8. \32\ See id, at 7402. --------------------------------------------------------------------------- Excluding the 1 Gb LCN, 1 Gb IP network access and 1 Gb bundled network access options from the proposed changes to the MRC is a business decision that the Exchange believes is reasonable, equitably allocated and not unfairly discriminatory, because the Exchange believes that the current MRCs for the services reflect the value of the services provided to the smallest connections. In addition, Users with 1 Gb connections generally do not connect to the new Included Data Products, which generally require a larger connection than 1 Gb. For the reasons above, the proposed changes do not unfairly discriminate between or among market participants that are otherwise capable of satisfying any applicable co-location fees, requirements, terms and conditions established from time to time by the Exchange. For these reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\33\ 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). The Exchange believes that the proposed changes are reasonable and designed to be fair and equitable, and therefore, will not unduly burden any particular group of Users. --------------------------------------------------------------------------- \33\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange believes that providing Users with Access and Connectivity does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act because such Access and Connectivity satisfies User demand for access and connectivity options, and each User has several other access and connectivity options available to it. As 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. Users that opt to use Access or Connectivity would not receive access or connectivity that is not available to all Users, as all market participants that contract with the relevant market or content provider may receive access or connectivity. In this way, the proposed changes would enhance competition by helping Users tailor their Access and Connectivity to the needs of their business operations by allowing them to select the form and latency of access and connectivity that best suits their needs. The Exchange believes that revising the Fee Schedules to provide a more detailed description of the Access and Connectivity available to Users would make such descriptions more accessible and transparent, thereby providing market participants with clarity as to what Access and Connectivity is available to them and what the related costs are, thereby enhancing competition by ensuring that all Users have access to the same information regarding Access and Connectivity. Similarly, the Exchange believes that the proposed changes to the Network Access Service MRCs would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act because, by offering the Network Access Services, the Exchange gives each User options for access to the LCN and IP network, responding to User demand for options. All Users that voluntarily purchase Network Access Services would be charged the same amount for the same services. As is currently the case, the purchase of any colocation service (including network and capacities) would be completely voluntary. Furthermore, each of the Network Access Services can be purchased independently of each other, and independently of any other colocation services or products that a User may choose. The Exchange believes that the proposed changes to the Network Access Service MRCs would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act because the MRCs for the Network Access Services have been the same since they were first filed, with some MRCs dating to the inception of co-location in 2010.\34\ During the time since the MRCs for the Network Access Services were filed, however, the Exchange has made numerous improvements to the network hardware and technology infrastructure. The Exchange has expanded the network infrastructure to keep pace with the increased number of services available to Users, including the increasing demand for bandwidth, and has established additional administrative controls. The Exchange offers the Network Access Services as conveniences 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 [[Page 3067]] maintenance of the Network Access Services, including by responding to any production issues. The Exchange accordingly believes that the proposed changes to the Network Access Service MRCs will allow them to more accurately reflect the value of the services provided. --------------------------------------------------------------------------- \34\ See note 19, supra. --------------------------------------------------------------------------- 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 The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) \35\ of the Act and subparagraph (f)(2) of Rule 19b-4 \36\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \35\ 15 U.S.C. 78s(b)(3)(A). \36\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- 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) \37\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \37\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-NYSEArca-2016-172 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File No. SR-NYSEArca-2016-172. 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-NYSEArca-2016-172, and should be submitted on or before January 31, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\38\ --------------------------------------------------------------------------- \38\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-00213 Filed 1-9-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Notices 3061
rule change as operative upon filing printing in the Commission’s Public Fees and Charges for Exchange Services
with the Commission.12 Reference Room. Copies of such filing related to co-location services to provide
At any time within 60 days of the also will be available for inspection and a more detailed description of the access
filing of such proposed rule change, the copying at the principal office of ISE to trading and execution services and
Commission summarily may Mercury. All comments received will be connectivity to data provided to Users
temporarily suspend such rule change if posted without change; the Commission with local area networks available in the
it appears to the Commission that such does not edit personal identifying data center; and (b) modify certain fees
action is necessary or appropriate in the information from submissions. You for access to the local area networks in
public interest, for the protection of should submit only information that the Exchange’s data center. The
investors, or otherwise in furtherance of you wish to make available publicly. All proposed rule change is available on the
the purposes of the Act. If the submissions should refer to File Exchange’s Web site at www.nyse.com,
Commission takes such action, the Number SR–ISEMercury–2016–26 and at the principal office of the Exchange,
Commission shall institute proceedings should be submitted by January and at the Commission’s Public
under Section 19(b)(2)(B) 13 of the Act to 31,2017. Reference Room.
determine whether the proposed rule For the Commission, by the Division of
change should be approved or II. Self-Regulatory Organization’s
Trading and Markets, pursuant to delegated
disapproved. authority.14
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Eduardo A. Aleman,
Change
Assistant Secretary.
Interested persons are invited to In its filing with the Commission, the
[FR Doc. 2017–00224 Filed 1–9–17; 8:45 am]
submit written data, views, and self-regulatory organization included
arguments concerning the foregoing, BILLING CODE 8011–01–P
statements concerning the purpose of,
including whether the proposed rule and basis for, the proposed rule change
change is consistent with the Act. and discussed any comments it received
SECURITIES AND EXCHANGE
Comments may be submitted by any of on the proposed rule change. The text
COMMISSION
the following methods: of those statements may be examined at
[Release No. 34–79729; File No. SR– the places specified in Item IV below.
Electronic Statements NYSEArca–2016–172]
The Exchange has prepared summaries,
• Use the Commission’s Internet
Self-Regulatory Organizations; NYSE set forth in sections A, B, and C below,
comment form http://www.sec.gov/
Arca, Inc.; Notice of Filing and of the most significant parts of such
rules/sro.shtml); or
• Send an email to rule-comments@ Immediate Effectiveness of Proposed statements.
sec.gov. Please include File No. SR– Rule Change Amending the NYSE Arca A. Self-Regulatory Organization’s
ISEMercury–2016–26 on the subject Options Fee Schedule and the NYSE Statement of the Purpose of, and
line. Arca Equities Schedule of Fees and Statutory Basis for, the Proposed Rule
Charges Related to Co-Location Change
Paper Comments Services To Increase LCN and IP
• Send paper comments in triplicate Network Fees and Add a Description of 1. Purpose
to Secretary, Securities and Exchange Access to Trading and Execution The Exchange proposes to amend the
Commission, 100 F Street NE., Services and Connectivity to Included Fee Schedules related to co-location 4
Washington, DC 20549–1090. Data Products services offered by the Exchange to (a)
All submissions should refer to File provide a more detailed description of
January 4, 2017.
Number SR–ISEMercury–2016–26. This the access to trading and execution
file number should be included on the Pursuant to Section 19(b)(1) 1 of the services and connectivity to data
subject line if email is used. To help the Securities Exchange Act of 1934 (the provided to Users 5 with connections to
Commission process and review your ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 the Liquidity Center Network (‘‘LCN’’)
comments more efficiently, please use notice is hereby given that, on December and internet protocol (‘‘IP’’) network,
only one method. The Commission will 22, 2016, NYSE Arca, Inc. (the
post all comments on the Commission’s ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with 4 The Exchange initially filed rule changes
Internet Web site (http://www.sec.gov/ the Securities and Exchange relating to its co-location services with the
rules/sro.shtml). Copies of the Commission (the ‘‘Commission’’) the Securities and Exchange Commission
proposed rule change as described in (‘‘Commission’’) in 2010. See Securities Exchange
submission, all subsequent Act Release No. 63275 (November 8, 2010), 75 FR
amendments, all written statements Items I, II, and III below, which Items 70048 (November 16, 2010) (SR–NYSEArca–2010–
with respect to the proposed rule have been prepared by the self- 100) (the ‘‘Original Co-location Filing’’). The
change that are filed with the regulatory organization. The Exchange operates a data center in Mahwah, New
Commission is publishing this notice to Jersey (the ‘‘data center’’) from which it provides
Commission, and all written co-location services to Users.
communications relating to the solicit comments on the proposed rule 5 For purposes of the Exchange’s co-location
proposed rule change between the change from interested persons. services, a ‘‘User’’ means any market participant
that requests to receive co-location services directly
Commission and any person, other than I. Self-Regulatory Organization’s from the Exchange. See Securities Exchange Act
those that may be withheld from the Statement of the Terms of the Substance Release No. 76010 (September 29, 2015), 80 FR
public in accordance with the of the Proposed Rule Change 60197 (October 5, 2015) (SR–NYSEArca–2015–82).
pmangrum on DSK3GDR082PROD with NOTICES
provisions of 5 U.S.C. 552, will be As specified in the Fee Schedules, a User that
The Exchange proposes to amend the incurs co-location fees for a particular co-location
available for Web site viewing and NYSE Arca Options Fee Schedule and service pursuant thereto would not be subject to co-
the NYSE Arca Equities Schedule of location fees for the same co-location service
12 For purposes only of waiving the operative
charged by the Exchange’s affiliates New York
delay for this proposal, the Commission has Stock Exchange LLC (‘‘NYSE LLC’’) and NYSE MKT
14 17 CFR 200.30–3(a)(12).
considered the proposed rule’s impact on LLC (‘‘NYSE MKT and, together with NYSE LLC,
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See the ‘‘Affiliate SROs’’). See Securities Exchange Act
15 U.S.C. 78c(f). 2 15 U.S.C. 78a.
Release No. 70173 (August 13, 2013), 78 FR 50459
13 15 U.S.C. 78s(b)(2)(B). 3 17 CFR 240.19b–4. (August 19, 2013) (SR–NYSEArca–2013–80).
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![Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Notices 3067
maintenance of the Network Access it appears to the Commission that such identifying information from
Services, including by responding to action is necessary or appropriate in the submissions. You should submit only
any production issues. The Exchange public interest, for the protection of information that you wish to make
accordingly believes that the proposed investors, or otherwise in furtherance of available publicly. All submissions
changes to the Network Access Service the purposes of the Act. If the should refer to File No. SR–NYSEArca–
MRCs will allow them to more Commission takes such action, the 2016–172, and should be submitted on
accurately reflect the value of the Commission shall institute proceedings or before January 31, 2017.
services provided. under Section 19(b)(2)(B) 37 of the Act to For the Commission, by the Division of
The Exchange operates in a highly determine whether the proposed rule Trading and Markets, pursuant to delegated
competitive market in which exchanges change should be approved or authority.38
offer co-location services as a means to disapproved. Eduardo A. Aleman,
facilitate the trading and other market
IV. Solicitation of Comments Assistant Secretary.
activities of those market participants
who believe that co-location enhances Interested persons are invited to [FR Doc. 2017–00213 Filed 1–9–17; 8:45 am]
the efficiency of their operations. submit written data, views, and BILLING CODE 8011–01–P
Accordingly, fees charged for co- arguments concerning the foregoing,
location services are constrained by the including whether the proposed rule
active competition for the order flow of, change is consistent with the Act. SECURITIES AND EXCHANGE
and other business from, such market Comments may be submitted by any of COMMISSION
participants. If a particular exchange the following methods:
charges excessive fees for co-location Electronic Comments [Release No. 34–79736; File No. SR–NYSE–
services, affected market participants 2016–44]
will opt to terminate their co-location • Use the Commission’s Internet
arrangements with that exchange, and comment form (http://www.sec.gov/ Self-Regulatory Organizations; New
adopt a possible range of alternative rules/sro.shtml); or York Stock Exchange LLC; Notice of
• Send an email to rule-comments@ Designation of a Longer Period for
strategies, including placing their
sec.gov. Please include File No. SR– Commission Action on Proceedings To
servers in a physically proximate
NYSEArca–2016–172 on the subject Determine Whether To Approve or
location outside the exchange’s data
line. Disapprove a Proposed Rule Change,
center (which could be a competing
exchange), or pursuing strategies less Paper Comments as Modified by Amendments No. 1 and
dependent upon the lower exchange-to- 2, Allowing the Exchange To Trade
• Send paper comments in triplicate Pursuant to Unlisted Trading
participant latency associated with co- to Secretary, Securities and Exchange
location. Accordingly, the exchange Privileges any NMS Stock Listed on
Commission, 100 F Street NE., Another National Securities Exchange;
charging excessive fees would stand to Washington, DC 20549–1090.
lose not only co-location revenues but Establishing Listing and Trading
All submissions should refer to File No. Requirements for Exchange Traded
also the liquidity of the formerly co- SR–NYSEArca–2016–172. This file
located trading firms, which could have Products; and Adopting New Equity
number should be included on the Trading Rules Relating To Trading
additional follow-on effects on the subject line if email is used. To help the
market share and revenue of the affected Halts of Securities Traded Pursuant to
Commission process and review your UTP on the Pillar Platform
exchange. For the reasons described comments more efficiently, please use
above, the Exchange believes that the only one method. The Commission will January 4, 2017.
proposed rule change reflects this post all comments on the Commission’s
competitive environment. On June 30, 2016, New York Stock
Internet Web site (http://www.sec.gov/ Exchange LLC (‘‘Exchange’’) filed with
C. Self-Regulatory Organization’s rules/sro.shtml). Copies of the the Securities and Exchange
Statement on Comments on the submission, all subsequent Commission (‘‘Commission’’), pursuant
Proposed Rule Change Received From amendments, all written statements to Section 19(b)(1) of the Securities
Members, Participants, or Others with respect to the proposed rule Exchange Act of 1934 (‘‘Act’’) 1 and Rule
No written comments were solicited change that are filed with the 19b–4 thereunder,2 a proposed rule
or received with respect to the proposed Commission, and all written change to (1) allow the Exchange to
rule change. communications relating to the trade pursuant to unlisted trading
proposed rule change between the privileges (‘‘UTP’’) any NMS Stock
III. Date of Effectiveness of the Commission and any person, other than listed on another national securities
Proposed Rule Change and Timing for those that may be withheld from the exchange; (2) establish listing and
Commission Action public in accordance with the trading requirements for exchange-
The foregoing rule change is effective provisions of 5 U.S.C. 552, will be traded products (‘‘ETPs’’); and (3) adopt
upon filing pursuant to Section available for Web site viewing and new equity trading rules relating to
19(b)(3)(A) 35 of the Act and printing in the Commission’s Public trading halts of securities traded
subparagraph (f)(2) of Rule 19b–4 36 Reference Room, 100 F Street NE., pursuant to UTP on the Pillar platform.
thereunder, because it establishes a due, Washington, DC 20549 on official The proposed rule change was
fee, or other charge imposed by the business days between the hours of published for comment in the Federal
pmangrum on DSK3GDR082PROD with NOTICES
Exchange. 10:00 a.m. and 3:00 p.m. Copies of such Register on July 14, 2016.3 On July 26,
At any time within 60 days of the filing also will be available for 2016, the Exchange filed Amendment
filing of such proposed rule change, the inspection and copying at the principal
Commission summarily may office of the Exchange. All comments 38 17 CFR 200.30–3(a)(12).
temporarily suspend such rule change if received will be posted without change; 1 15 U.S.C. 78s(b)(1).
the Commission does not edit personal 2 17 CFR 240.19b–4.
35 15 U.S.C. 78s(b)(3)(A). 3 See Securities Exchange Act Release No. 78263
36 17 CFR 240.19b–4(f)(2). 37 15 U.S.C. 78s(b)(2)(B). (July 8, 2016), 81 FR 45580 (July 14, 2016).
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Document Created: 2018-02-01 14:54:03
Document Modified: 2018-02-01 14:54:03
| 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 3061 |
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