82 FR 50177 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide Users With Access to Five Additional Third Party Systems and Connectivity to Two Additional Third Party Data Feeds
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 208 (October 30, 2017)
Federal Register Volume 82, Issue 208 (October 30, 2017)
| Page Range | 50177-50181 | |
| FR Document | 2017-23476 |
[Federal Register Volume 82, Number 208 (Monday, October 30, 2017)] [Notices] [Pages 50177-50181] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-23476] [[Page 50177]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81929; File No. SR-NYSEARCA-2017-122] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide Users With Access to Five Additional Third Party Systems and Connectivity to Two Additional Third Party Data Feeds October 24, 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 October 11, 2017, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (``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 Substance of the Proposed Rule Change The Exchange proposes to provide Users with access to five additional third party systems and connectivity to two additional third party data feeds. In addition, the Exchange proposes to change its NYSE Arca Options Fees and Charges (the ``Options Fee Schedule'') and the NYSE Arca Equities Fees and Charges (the ``Equities Fee Schedule'' and, together with the Options Fee Schedule, the ``Fee Schedules'') related to these co-location services. 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the co-location \4\ services offered by the Exchange to provide Users \5\ with access to five additional third party systems and connectivity to two additional third party data feeds. In addition the Exchange proposes to make the corresponding changes to the Exchange's Fee Schedules related to these co-location services. --------------------------------------------------------------------------- \4\ The Exchange initially filed rule changes relating to its co-location services with the 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). --------------------------------------------------------------------------- As set forth in the Fee Schedules, the Exchange charges fees for connectivity to the execution systems of third party markets and other content service providers (``Third Party Systems''), and data feeds from third party markets and other content service providers (``Third Party Data Feeds'').\6\ The lists of Third Party Systems and Third Party Data Feeds are set forth in the Fee Schedules. --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 80310 (March 24, 2017), 82 FR 15763 (March 30, 2017) (SR-NYSEArca-2016-89). --------------------------------------------------------------------------- The Exchange now proposes to make the following changes:Add five content service providers to the list of Third Party Systems: Chicago Mercantile Exchange (CME Group), Chicago Stock Exchange (CHX), Investors Exchange (IEX), OneChicago and TMX Group (together, the ``Additional Third Party Systems'' or ``ATPS''); and add two feeds to the list of Third Party Data Feeds: Investors Exchange and OneChicago (together the ``Additional Third Part Data Feeds'' or ``ATPD''). The Exchange would provide access to the Additional Third Party Systems (``Access'') and connectivity to the Additional Third Party Data Feeds (``Connectivity'') as conveniences to Users. Use of Access or Connectivity would be completely voluntary. The Exchange is not aware of any impediment to third parties offering Access or Connectivity. The Exchange does not have visibility into whether third parties currently offer, or intend to offer, Users access to the Additional Third Party Systems and connectivity to the Additional Third Party Data Feeds, as such third parties are not required to make that information public. However, if one or more third parties presently offer, or in the future opt to offer, such Access and Connectivity to Users, a User may utilize the Secure Financial Transaction Infrastructure (``SFTI'') network, a third party telecommunication network, third party wireless network, a cross connect, or a combination thereof to access such services and products through a connection to an access center outside the data center (which could be a SFTI access center, a third-party access center, or both), another User, or a third party vendor. The Exchange will announce the dates that each Product is available through customer notices disseminated to all Users simultaneously. Connectivity to Additional Third Party Systems The Exchange proposes to revise the Fee Schedules to provide that Users may obtain connectivity to the five Additional Third Party Systems for a fee. As with the current Third Party Systems, Users would connect to the Additional Third Party Systems over the internet protocol (``IP'') network, a local area network available in the data center.\7\ --------------------------------------------------------------------------- \7\ See Securities Exchange Act Release No. 74219 (February 6, 2015), 80 FR 7899 (February 12, 2015) (SR-NYSEArca-2015-03) (notice of filing and immediate effectiveness of proposed rule change to include IP network connections). --------------------------------------------------------------------------- As with the current Third Party Systems, in order to obtain access to an Additional Third Party System, the User would enter into an agreement with the relevant third party content service provider, pursuant to which the third party content service provider would charge the User for access to the Additional Third Party System. The Exchange would then establish a unicast connection between the User and the relevant third party content service provider over the IP network.\8\ The [[Page 50178]] Exchange would charge the User for the connectivity to the Additional Third Party System. A User would only receive, and only be charged for, access to Additional Third Party Systems for which it enters into agreements with the third party content service provider. --------------------------------------------------------------------------- \8\ Information flows over existing network connections in two formats: ``unicast'' format, which is a format that allows one-to- one communication, similar to a phone line, in which information is sent to and from the Exchange; and ``multicast'' format, which is a format in which information is sent one-way from the Exchange to multiple recipients at once, like a radio broadcast. --------------------------------------------------------------------------- The Exchange has no ownership interest in the Additional Third Party Systems. Establishing a User's access to an Additional Third Party System would not give the Exchange any right to use the Additional Third Party Systems. Connectivity to an Additional Third Party System would not provide access or order entry to the Exchange's execution system, and a User's connection to an Additional Third Party System would not be through the Exchange's execution system. As with the existing connections to Third Party Systems, the Exchange proposes to charge a monthly recurring fee for connectivity to an Additional Third Party System. Specifically, when a User requests access to an Additional Third Party System, it would identify the applicable content service provider and what bandwidth connection it required. The Exchange proposes to modify its Fee Schedules to add the Additional Third Party Systems to its existing list of Third Party Systems. The additional items would be as follows: Third Party Systems Chicago Mercantile Exchange (CME Group) Chicago Stock Exchange (CHX) Investors Exchange (IEX) OneChicago TMX Group The Exchange does not propose to change the monthly recurring fee the Exchange charges Users for unicast connectivity to each Third Party System, including the Additional Third Party Systems. Connectivity to Additional Third Party Data Feeds The Exchange proposes to revise the Fee Schedules to provide that Users may obtain connectivity to each of the two Additional Third Party Data Feeds for a fee. The Exchange would receive the Additional Third Party Data Feeds from the content service provider, at its data center. It would then provide connectivity to that data to Users for a fee. Users would connect to the Additional Third Party Data Feeds over the IP network.\9\ --------------------------------------------------------------------------- \9\ See supra note 7, at 7899 (``The IP network also provides Users with access to away market data products''). --------------------------------------------------------------------------- In order to connect to an Additional Third Party Data Feed, a User would enter into a contract with the content service provider, pursuant to which the content service provider would charge the User for the Third Party Data Feed. The Exchange would receive the Third Party Data Feed over its fiber optic network and, after the content service provider and User entered into the contract and the Exchange received authorization from the content service provider, the Exchange would re- transmit the data to the User over the User's port. The Exchange would charge the User for the connectivity to the Additional Third Party Data Feed. A User would only receive, and would only be charged for, connectivity to the Additional Third Party Data Feeds for which it entered into contracts. The Exchange has no affiliation with the sellers of the Additional Third Party Data Feeds. It would have no right to use the Additional Third Party Data Feeds other than as a redistributor of the data. The Additional Third Party Data Feeds would not provide access or order entry to the Exchange's execution system. The Additional Third Party Data Feeds would not provide access or order entry to the execution systems of the third parties generating the feed. The Exchange would receive the Additional Third Party Data Feeds via arms-length agreements and it would have no inherent advantage over any other distributor of such data. As it does with the existing Third Party Data Feeds, the Exchange proposes to charge a monthly recurring fee for connectivity to each Additional Third Party Data Feed. The monthly recurring fee would be per Additional Third Party Data Feed. Depending on its needs and bandwidth, a User may opt to receive all or some of the feeds or services included in an Additional Third Party Data Feed. The Exchange proposes to add the connectivity fees for the Additional Third Party Data to its existing list in the Fee Schedules. The additional items would be as follows: ------------------------------------------------------------------------ Monthly recurring connectivity Third party data feed fee per third party data feed ------------------------------------------------------------------------ Investors Exchange (IEX)................................ $1,000 OneChicago.............................................. 1,000 ------------------------------------------------------------------------ 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; \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 the Affiliate SROs.\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-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- 2017-52 and SR-NYSEAMER-2017-24. --------------------------------------------------------------------------- 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 Sections 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)(5). --------------------------------------------------------------------------- [[Page 50179]] The Exchange believes that the proposed changes 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, by offering additional services, the Exchange would give each User additional options for addressing its access and connectivity needs, responding to User demand for access and connectivity options. Providing additional services would help each User tailor its data center operations to the 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 would provide Access and Connectivity as conveniences to Users. Use of Access or Connectivity would be completely voluntary. The Exchange is not aware of any impediment to third parties offering Access or Connectivity. The Exchange does not have visibility into whether third parties currently offer, or intend to offer, Users access to the Additional Third Party Systems and connectivity to the Additional Third Party Data Feeds. However, if one or more third parties presently offer, or in the future opt to offer, such Access and Connectivity to Users, a User may utilize the SFTI network, a third party telecommunication network, third party wireless network, a cross connect, or a combination thereof to access such services and products through a connection to an access center outside the data center (which could be a SFTI access center, a third-party access center, or both), another User, or a third party vendor. The Exchange believes that the proposed changes 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, by offering access to the Additional Third Party Systems and connectivity to the Additional Third Party Data Feeds to Users upon the effective date of this filing, the Exchange would give Users additional options for connectivity and access to new services as soon as they are available, responding to User demand for access and connectivity options. 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 fee 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 additional services and fees proposed herein would be equitably allocated and not unfairly discriminatory because, in addition to the services being completely voluntary, they would be available to all Users on an equal basis (i.e., the same products and services would be available to all Users). All Users that voluntarily selected to receive Access or Connectivity would be charged the same amount for the same services. Users that opted to use Access or Connectivity would not receive access or connectivity that is not available to all Users, as all market participants that contracted with the relevant market or content provider would receive access or connectivity. The Exchange believes that the proposed charges would be reasonable, equitably allocated and not unfairly discriminatory because the Exchange would offer the Access and Connectivity 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 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, including resilient and redundant feeds. In addition, in order to provide Access and Connectivity, the Exchange would maintain multiple connections to each ATPD and ATPS, allowing the Exchange to provide resilient and redundant connections; adapt to any changes made by the relevant third party; and cover any applicable fees charged by the relevant third party, such as port fees. In addition, Users would not be required to use any of their bandwidth for Access and Connectivity unless they wish to do so. The Exchange believes the proposed fees for Access and Connectivity would be reasonable because they would allow the Exchange to defray or cover the costs associated with offering Users access to Additional Third Party Systems and connectivity to Additional Third Party Data Feeds while providing Users the convenience of receiving such Access and Connectivity within co-location, helping them tailor their data center operations to the requirements of their business operations. For the reasons above, the proposed changes would 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,\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 all of the proposed services are completely voluntary. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange believes that providing Users with additional options for connectivity and access to new services would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act because such proposed Access and Connectivity [[Page 50180]] would satisfy User demand for access and connectivity options. The Exchange would provide Access and Connectivity as conveniences equally to all Users. The Exchange does not have visibility into whether third parties currently offer, or intend to offer, Users access to the Additional Third Party Systems and connectivity to the Additional Third Party Data Feeds, as such third parties are not required to make that information public. However, if one or more third parties presently offer, or in the future opt to offer, such Access and Connectivity to Users, a User may utilize the SFTI network, a third party telecommunication network, third party wireless network, a cross connect, or a combination thereof to access such services and products through a connection to an access center outside the data center (which could be a SFTI access center, a third-party access center, or both), another User, or a third party vendor. Users that opt to use the proposed Access or Connectivity would not receive access or connectivity that is not available to all Users, as all market participants that contract with the 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 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 Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \16\ and Rule 19b-4(f)(6) thereunder.\17\ Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder.\18\ --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(3)(A)(iii). \17\ 17 CFR 240.19b-4(f)(6). \18\ 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. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally does not become operative for 30 days after the date of the filing. However, Rule 19b-4(f)(6)(iii) \20\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. 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 represents that the proposed rule changes present no new or novel issues. According to the Exchange, waiver of the operative delay would allow Users to access the Additional Third Party Systems and the Additional Third Party Data Feeds without delay, which would assist Users in tailoring their data center operations to the requirements of their business operations. The Exchange also represents that the proposed changes to the Price List would provide Users with more complete information regarding their Access and Connectivity options. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Accordingly, the Commission waives the 30-day operative delay and designates the proposed rule change operative upon filing.\21\ --------------------------------------------------------------------------- \19\ 17 CFR 240.19b-4(f)(6). \20\ 17 CFR 240.19b-4(f)(6)(iii). \21\ 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) \22\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \22\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSEARCA-2017-122 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-NYSEARCA-2017-122. 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 [[Page 50181]] 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 the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR- NYSEARCA-2017-122 and should be submitted on or before November 20, 2017. --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\23\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-23476 Filed 10-27-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices 50177
SECURITIES AND EXCHANGE of the most significant parts of such (‘‘Access’’) and connectivity to the
COMMISSION statements. Additional Third Party Data Feeds
(‘‘Connectivity’’) as conveniences to
[Release No. 34–81929; File No. SR– A. Self-Regulatory Organization’s
Users. Use of Access or Connectivity
NYSEARCA–2017–122] Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule would be completely voluntary. The
Self-Regulatory Organizations; NYSE Change Exchange is not aware of any
Arca, Inc.; Notice of Filing and impediment to third parties offering
Immediate Effectiveness of Proposed 1. Purpose Access or Connectivity.
Rule Change To Provide Users With The Exchange proposes to amend the The Exchange does not have visibility
Access to Five Additional Third Party co-location 4 services offered by the into whether third parties currently
Systems and Connectivity to Two Exchange to provide Users 5 with access offer, or intend to offer, Users access to
Additional Third Party Data Feeds to five additional third party systems the Additional Third Party Systems and
and connectivity to two additional third connectivity to the Additional Third
October 24, 2017. party data feeds. In addition the Party Data Feeds, as such third parties
Pursuant to Section 19(b)(1) 1 of the Exchange proposes to make the are not required to make that
Securities Exchange Act of 1934 (the corresponding changes to the information public. However, if one or
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Exchange’s Fee Schedules related to more third parties presently offer, or in
notice is hereby given that, on October these co-location services. the future opt to offer, such Access and
11, 2017, NYSE Arca, Inc. (the As set forth in the Fee Schedules, the Connectivity to Users, a User may
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with Exchange charges fees for connectivity utilize the Secure Financial Transaction
the Securities and Exchange to the execution systems of third party Infrastructure (‘‘SFTI’’) network, a third
Commission (‘‘Commission’’) the markets and other content service party telecommunication network, third
proposed rule change as described in providers (‘‘Third Party Systems’’), and party wireless network, a cross connect,
Items I and II below, which Items have data feeds from third party markets and or a combination thereof to access such
been prepared by the self-regulatory other content service providers (‘‘Third services and products through a
organization. The Commission is Party Data Feeds’’).6 The lists of Third connection to an access center outside
publishing this notice to solicit Party Systems and Third Party Data the data center (which could be a SFTI
comments on the proposed rule change Feeds are set forth in the Fee Schedules. access center, a third-party access
from interested persons. The Exchange now proposes to make center, or both), another User, or a third
I. Self-Regulatory Organization’s the following changes: party vendor.
• Add five content service providers The Exchange will announce the
Statement of the Terms of Substance of
to the list of Third Party Systems: dates that each Product is available
the Proposed Rule Change
Chicago Mercantile Exchange (CME through customer notices disseminated
The Exchange proposes to provide Group), Chicago Stock Exchange (CHX), to all Users simultaneously.
Users with access to five additional Investors Exchange (IEX), OneChicago
third party systems and connectivity to and TMX Group (together, the Connectivity to Additional Third Party
two additional third party data feeds. In ‘‘Additional Third Party Systems’’ or Systems
addition, the Exchange proposes to ‘‘ATPS’’); and The Exchange proposes to revise the
change its NYSE Arca Options Fees and • add two feeds to the list of Third Fee Schedules to provide that Users
Charges (the ‘‘Options Fee Schedule’’) Party Data Feeds: Investors Exchange may obtain connectivity to the five
and the NYSE Arca Equities Fees and and OneChicago (together the Additional Third Party Systems for a
Charges (the ‘‘Equities Fee Schedule’’ ‘‘Additional Third Part Data Feeds’’ or fee. As with the current Third Party
and, together with the Options Fee ‘‘ATPD’’). Systems, Users would connect to the
Schedule, the ‘‘Fee Schedules’’) related The Exchange would provide access Additional Third Party Systems over the
to these co-location services. The to the Additional Third Party Systems internet protocol (‘‘IP’’) network, a local
proposed rule change is available on the area network available in the data
4 The Exchange initially filed rule changes
Exchange’s Web site at www.nyse.com, center.7
relating to its co-location services with the
at the principal office of the Exchange, Commission in 2010. See Securities Exchange Act As with the current Third Party
and at the Commission’s Public Release No. 63275 (November 8, 2010), 75 FR 70048 Systems, in order to obtain access to an
Reference Room. (November 16, 2010) (SR–NYSEArca–2010–100) Additional Third Party System, the User
(the ‘‘Original Co-location Filing’’). The Exchange
II. Self-Regulatory Organization’s operates a data center in Mahwah, New Jersey (the
would enter into an agreement with the
Statement of the Purpose of, and ‘‘data center’’) from which it provides co-location relevant third party content service
Statutory Basis for, the Proposed Rule services to Users. provider, pursuant to which the third
Change
5 For purposes of the Exchange’s co-location
party content service provider would
services, a ‘‘User’’ means any market participant charge the User for access to the
In its filing with the Commission, the that requests to receive co-location services directly
from the Exchange. See Securities Exchange Act Additional Third Party System. The
self-regulatory organization included Release No. 76010 (September 29, 2015), 80 FR Exchange would then establish a unicast
statements concerning the purpose of, 60197 (October 5, 2015) (SR–NYSEArca–2015–82). connection between the User and the
and basis for, the proposed rule change As specified in the Fee Schedules, a User that relevant third party content service
and discussed any comments it received incurs co-location fees for a particular co-location
service pursuant thereto would not be subject to co- provider over the IP network.8 The
on the proposed rule change. The text location fees for the same co-location service
sradovich on DSK3GMQ082PROD with NOTICES
of those statements may be examined at charged by the Exchange’s affiliates New York 7 See Securities Exchange Act Release No. 74219
the places specified in Item IV below. Stock Exchange LLC (‘‘NYSE LLC’’) and NYSE MKT (February 6, 2015), 80 FR 7899 (February 12, 2015)
The Exchange has prepared summaries, LLC (‘‘NYSE MKT and, together with NYSE LLC, (SR–NYSEArca–2015–03) (notice of filing and
the ‘‘Affiliate SROs’’). See Securities Exchange Act immediate effectiveness of proposed rule change to
set forth in sections A, B, and C below, Release No. 70173 (August 13, 2013), 78 FR 50459 include IP network connections).
(August 19, 2013) (SR–NYSEArca–2013–80). 8 Information flows over existing network
1 15 U.S.C. 78s(b)(1). 6 See Securities Exchange Act Release No. 80310 connections in two formats: ‘‘unicast’’ format,
2 15 U.S.C. 78a. (March 24, 2017), 82 FR 15763 (March 30, 2017) which is a format that allows one-to-one
3 17 CFR 240.19b–4. (SR–NYSEArca–2016–89). Continued
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![Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices 50181
change that are filed with the I. Self-Regulatory Organization’s Best Bid or Offer, or PBBO,4 the last sale
Commission, and all written Statement of the Terms of Substance of with trade price, size and condition, last
communications relating to the the Proposed Rule Change sale cancellations, listed series updates,
proposed rule change between the The Exchange is filing a proposal to system state, and underlying trading
Commission and any person, other than amend the MIAX PEARL Fee Schedule state.5 PLF provides real-time, ultra-low
those that may be withheld from the (the ‘‘Fee Schedule’’) to adopt a fee for latency updates of new simple orders
public in accordance with the the sale of certain historical market data. added to the MIAX PEARL order book,
provisions of 5 U.S.C. 552, will be The text of the proposed rule change updates to simple orders resting on the
available for Web site viewing and is available on the Exchange’s Web site MIAX PEARL order book, listed series
printing in the Commission’s Public at http://www.miaxoptions.com/rule- updates, System 6 state, and underlying
Reference Room, 100 F Street NE., filings/pearl at MIAX PEARL’s principal trading state.7
Washington, DC 20549 on official office, and at the Commission’s Public MIAX PEARL will only assess the fee
business days between the hours of Reference Room. for Historical Market Data on a user
10:00 a.m. and 3:00 p.m. Copies of the (whether Member or Non-Member) that
filing also will be available for II. Self-Regulatory Organization’s specifically requests such Historical
inspection and copying at the principal Statement of the Purpose of, and Market Data. Historical Market Data will
office of the Exchange. All comments Statutory Basis for, the Proposed Rule be uploaded onto an Exchange-provided
received will be posted without change. Change device. The amount of the fee is $500,
Persons submitting comments are In its filing with the Commission, the and it will be assessed on a per device
cautioned that we do not redact or edit Exchange included statements basis. Each device shall have a
personal identifying information from concerning the purpose of and basis for maximum storage capacity of 8
comment submissions. You should the proposed rule change and discussed Terabytes and will be configured to
submit only information that you wish any comments it received on the include data for both MIAX Options and
to make available publicly. All proposed rule change. The text of these MIAX PEARL. Users may request up to
submissions should refer to File statements may be examined at the six months of Historical Market Data per
Number SR–NYSEARCA–2017–122 and places specified in Item IV below. The device, subject to the device’s storage
should be submitted on or before Exchange has prepared summaries, set capacity. Historical Market Data is
November 20, 2017. forth in sections A, B, and C below, of available from August 1, 2017 to the
the most significant aspects of such present (always on a T+1 basis),
For the Commission, by the Division of
statements. however only the most recent six
Trading and Markets, pursuant to delegated
authority.23 months of Historical Market Data shall
A. Self-Regulatory Organization’s be available for purchase from the
Eduardo A. Aleman, Statement of the Purpose of, and request date. Historical Market Data
Assistant Secretary. Statutory Basis for, the Proposed Rule usage is restricted to internal use only,
[FR Doc. 2017–23476 Filed 10–27–17; 8:45 am] Change and thus may not be distributed to any
BILLING CODE 8011–01–P
1. Purpose third-party.
The Exchange notes that this filing is
The Exchange proposes to amend its substantially similar to a companion
SECURITIES AND EXCHANGE Fee Schedule to adopt a fee for the sale MIAX Options filing 8 establishing a fee
COMMISSION of certain historical market data. for historical market data on its
The historical market data that the exchange.
[Release No. 34–81932; File No. SR– Exchange proposes to sell provides
PEARL–2017–35] information about the past activity of all 2. Statutory Basis
option products traded on the Exchange The Exchange believes that its
Self-Regulatory Organizations; MIAX for each trading session conducted proposal to amend its Fee Schedule is
PEARL, LLC; Notice of Filing and during a particular calendar month. The consistent with Section 6(b) of the Act 9
Immediate Effectiveness of a Proposed data is intended to enhance the user’s in general, and furthers the objectives of
Rule Change To Amend the MIAX ability to analyze option trade and Section 6(b)(4) of the Act,10 in
PEARL Fee Schedule volume data, evaluate historical trends particular, in that it is an equitable
in the trading activity of a particular allocation of reasonable dues, fees and
October 24, 2017.
option product, and enable the testing of other charges among Exchange members
Pursuant to Section 19(b)(1) of the trading models and analytical strategies. and issuers and other persons using its
Securities Exchange Act of 1934 (the Specifically, the historical market data facilities. The proposal provides for the
‘‘Act’’) 1 and Rule 19b 4 thereunder,2 that the Exchange proposes to sell equitable allocation of reasonable fees
notice is hereby given that on October includes all data that is captured and and other charges among Exchange
11, 2017, MIAX PEARL, LLC (‘‘MIAX disseminated on the following
PEARL’’ or ‘‘Exchange’’) filed with the proprietary MIAX PEARL data feeds, on 4 The term ‘‘PBBO’’ means the best bid or offer
Securities and Exchange Commission a T+1 basis: MIAX PEARL Top of on the PEARL Exchange. See Exchange Rule 100.
(the ‘‘Commission’’) the proposed rule Market (‘‘ToM’’); and MIAX PEARL See also Exchange Rule 506(d).
5 See Securities Exchange Act Release No. 79913
change as described in Items I and II Liquidity Feed (‘‘PLF’’) (‘‘Historical (February 1, 2017), 82 FR 9617 (February 7, 2017)
below, which Items have been prepared Market Data’’). All such proprietary (SR–PEARL–2017–01) (Establishing MIAX PEARL
sradovich on DSK3GMQ082PROD with NOTICES
by the Exchange. The Commission is MIAX PEARL data feeds that, on a T+1 ToM and PLF Data Products).
publishing this notice to solicit basis, comprise the Historical Market 6 The term ‘‘System’’ means the automated
comments on the proposed rule change Data are described on the Exchange’s trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
from interested persons. Fee Schedule.3 7 See supra note 5.
ToM provides real-time, ultra-low 8 See SR–MIAX–2017–42 (filed on October 11,
23 17 CFR 200.30–3(a)(12). latency updates of the MIAX PEARL 2017).
1 15 U.S.C. 78s(b)(1). 9 15 U.S.C. 78f(b).
2 17 CFR 240.19b–4. 3 See MIAX PEARL Fee Schedule, Section 6. 10 15 U.S.C. 78f(b)(4).
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Document Created: 2017-10-28 00:29:09
Document Modified: 2017-10-28 00:29:09
| 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 50177 |
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