82 FR 50190 - Self-Regulatory Organizations; NYSE American LLC; 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)

Page Range		50190-50194
FR Document		2017-23474
Federal Register, Volume 82 Issue 208 (Monday, October 30, 2017)
[Federal Register Volume 82, Number 208 (Monday, October 30, 2017)]
[Notices]
[Pages 50190-50194]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-23474]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81927; File No. SR-NYSEAMER-2017-24]


Self-Regulatory Organizations; NYSE American LLC; 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 American LLC (the ``Exchange'' or 
``NYSE American'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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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 
American Equities Price List (``Price List'') and the NYSE American 
Options Fee Schedule (``Fee Schedule'') 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.

[[Page 50191]]

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 Price List and Fee Schedule related to these 
co-location services.
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    \4\ The Exchange initially filed rule changes relating to its 
co-location services with the Commission in 2010. See Securities 
Exchange Act Release No. 62961 (September 21, 2010), 75 FR 59299 
(September 27, 2010) (SR-NYSEAmex-2010-80) (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. 76009 (September 29, 2015), 80 FR 60213 
(October 5, 2015) (SR-NYSEMKT-2015-67). As specified in the Price 
List and Fee Schedule, a User that incurs co-location fees for a 
particular co-location service pursuant thereto would not be subject 
to co-location fees for the same co-location service charged by the 
Exchange's affiliates New York Stock Exchange LLC (``NYSE LLC'') and 
NYSE Arca, Inc. (``NYSE Arca'' and, together with NYSE LLC, the 
``Affiliate SROs''). See Securities Exchange Act Release No. 70176 
(August 13, 2013), 78 FR 50471 (August 19, 2013) (SR-NYSEMKT-2013-
67).
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    As set forth in the Price List and Fee Schedule, 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 Price List and 
Fee Schedule.
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    \6\ See Securities Exchange Act Release No. 80309 (March 24, 
2017), 82 FR 15725 (March 30, 2017) (SR-NYSEMKT-2016-63).
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    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 Price List and Fee Schedule 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\
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    \7\ See Securities Exchange Act Release No. 74220 (February 6, 
2015), 80 FR 7894 (February 12, 2015) (SR-NYSEMKT-2015-08) (notice 
of filing and immediate effectiveness of proposed rule change to 
include IP network connections).
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    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 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.
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    \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.
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    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 Price List and Fee Schedule 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
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Chicago Mercantile Exchange (CME Group)
Chicago Stock Exchange (CHX)
Investors Exchange (IEX)
OneChicago
TMX Group
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    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 Price List and Fee Schedule 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

[[Page 50192]]

connect to the Additional Third Party Data Feeds over the IP 
network.\9\
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    \9\ See supra note 7, at 7894 (``The IP network also provides 
Users with access to away market data products'').
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    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 Price List and 
Fee Schedule. The additional items would be as follows:

------------------------------------------------------------------------
                                                              Monthly
                                                             recurring
                                                           connectivity
                  Third party data feed                    fee per third
                                                            party data
                                                               feed
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Investors Exchange (IEX)................................          $1,000
OneChicago..............................................           1,000
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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\
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    \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-NYSEMKT-2013-67, supra note 5 at 50471. 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-NYSEArca-2017-122.
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    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.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
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    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

[[Page 50193]]

using its facilities and does not unfairly discriminate between 
customers, issuers, brokers or dealers.
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    \14\ 15 U.S.C. 78f(b)(4).
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    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.
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    \15\ 15 U.S.C. 78f(b)(8).
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    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 
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

[[Page 50194]]

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\
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    \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.
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    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\
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    \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).
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    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.
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    \22\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEAMER-2017-24 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-NYSEAMER-2017-24. 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 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-NYSEAMER-2017-24 and should 
be submitted on or before November 20, 2017.
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    \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. 2017-23474 Filed 10-27-17; 8:45 am]
 BILLING CODE 8011-01-P
50190 Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices

A proposed rule change filed under Electronic Comments SECURITIES AND EXCHANGE
Rule 19b–4(f)(6) 19 normally does not COMMISSION
become operative for 30 days after the • Use the Commission’s Internet
date of the filing. However, Rule 19b– comment form (http://www.sec.gov/ [Release No. 34–81927; File No. SR–
4(f)(6)(iii) 20 permits the Commission to rules/sro.shtml); or NYSEAMER–2017–24]
designate a shorter time if such action • Send an email to rule-comments@
is consistent with the protection of sec.gov. Please include File Number SR– Self-Regulatory Organizations; NYSE
investors and the public interest. The NYSE–2017–52 on the subject line. American LLC; Notice of Filing and
Exchange has requested that the Immediate Effectiveness of Proposed
Paper Comments Rule Change To Provide Users With
Commission waive the 30-day operative
Access to Five Additional Third Party
delay so that the proposal may become • Send paper comments in triplicate Systems and Connectivity to Two
operative immediately upon filing. The to Secretary, Securities and Exchange Additional Third Party Data Feeds
Exchange represents that the proposed Commission, 100 F Street NE.,
rule changes present no new or novel Washington, DC 20549–1090. October 24, 2017.
issues. According to the Exchange, Pursuant to Section 19(b)(1) 1 of the
waiver of the operative delay would All submissions should refer to File Securities Exchange Act of 1934 (the
allow Users to access the Additional Number SR–NYSE–2017–52. This file ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Third Party Systems and the Additional number should be included on the notice is hereby given that on October
Third Party Data Feeds without delay, subject line if email is used. To help the 11, 2017, NYSE American LLC (the
which would assist Users in tailoring Commission process and review your ‘‘Exchange’’ or ‘‘NYSE American’’) filed
their data center operations to the comments more efficiently, please use with the Securities and Exchange
requirements of their business only one method. The Commission will Commission (‘‘Commission’’) the
operations. The Exchange also post all comments on the Commission’s proposed rule change as described in
represents that the proposed changes to Internet Web site (http://www.sec.gov/ Items I and II below, which Items have
the Price List would provide Users with rules/sro.shtml). Copies of the been prepared by the self-regulatory
more complete information regarding submission, all subsequent organization. The Commission is
their Access and Connectivity options. amendments, all written statements publishing this notice to solicit
The Commission believes that waiving with respect to the proposed rule comments on the proposed rule change
the 30-day operative delay is consistent change that are filed with the from interested persons.
with the protection of investors and the Commission, and all written I. Self-Regulatory Organization’s
public interest. Accordingly, the communications relating to the Statement of the Terms of Substance of
Commission waives the 30-day proposed rule change between the the Proposed Rule Change
operative delay and designates the Commission and any person, other than
The Exchange proposes to provide
proposed rule change operative upon those that may be withheld from the
Users with access to five additional
filing.21 public in accordance with the
third party systems and connectivity to
At any time within 60 days of the provisions of 5 U.S.C. 552, will be
two additional third party data feeds. In
filing of such proposed rule change, the available for Web site viewing and addition, the Exchange proposes to
Commission summarily may printing in the Commission’s Public change its NYSE American Equities
temporarily suspend such rule change if Reference Room, 100 F Street NE., Price List (‘‘Price List’’) and the NYSE
it appears to the Commission that such Washington, DC 20549 on official American Options Fee Schedule (‘‘Fee
action is necessary or appropriate in the business days between the hours of Schedule’’) related to these co-location
public interest, for the protection of 10:00 a.m. and 3:00 p.m. Copies of the services. The proposed rule change is
investors, or otherwise in furtherance of filing also will be available for available on the Exchange’s Web site at
the purposes of the Act. If the inspection and copying at the principal www.nyse.com, at the principal office of
Commission takes such action, the office of the Exchange. All comments the Exchange, and at the Commission’s
Commission shall institute proceedings received will be posted without change. Public Reference Room.
under Section 19(b)(2)(B) 22 of the Act to Persons submitting comments are
II. Self-Regulatory Organization’s
determine whether the proposed rule cautioned that we do not redact or edit
Statement of the Purpose of, and
change should be approved or personal identifying information from Statutory Basis for, the Proposed Rule
disapproved. comment submissions. You should Change
submit only information that you wish
IV. Solicitation of Comments to make available publicly. All In its filing with the Commission, the
submissions should refer to File self-regulatory organization included
Interested persons are invited to statements concerning the purpose of,
submit written data, views, and Number SR–NYSE–2017–52 and should
be submitted on or before November 20, and basis for, the proposed rule change
arguments concerning the foregoing, and discussed any comments it received
including whether the proposed rule 2017.
on the proposed rule change. The text
change is consistent with the Act. For the Commission, by the Division of of those statements may be examined at
Comments may be submitted by any of Trading and Markets, pursuant to delegated the places specified in Item IV below.
the following methods: authority.23
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The Exchange has prepared summaries,
Eduardo A. Aleman, set forth in sections A, B, and C below,
19 17 CFR 240.19b–4(f)(6). Assistant Secretary. of the most significant parts of such
20 17 CFR 240.19b–4(f)(6)(iii).
21 For purposes only of waiving the 30-day [FR Doc. 2017–23481 Filed 10–27–17; 8:45 am] statements.
operative delay, the Commission has considered the BILLING CODE 8011–01–P
1 15 U.S.C. 78s(b)(1).
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f). 2 15 U.S.C. 78a.
22 15 U.S.C. 78s(b)(2)(B). 23 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.

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Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices 50191

A. Self-Regulatory Organization’s Additional Third Party Data Feeds Exchange would charge the User for the
Statement of the Purpose of, and the (‘‘Connectivity’’) as conveniences to connectivity to the Additional Third
Statutory Basis for, the Proposed Rule Users. Use of Access or Connectivity Party System. A User would only
Change would be completely voluntary. The receive, and only be charged for, access
Exchange is not aware of any to Additional Third Party Systems for
1. Purpose impediment to third parties offering which it enters into agreements with the
The Exchange proposes to amend the Access or Connectivity. third party content service provider.
co-location 4 services offered by the The Exchange does not have visibility
Exchange to provide Users 5 with access into whether third parties currently The Exchange has no ownership
to five additional third party systems offer, or intend to offer, Users access to interest in the Additional Third Party
and connectivity to two additional third the Additional Third Party Systems and Systems. Establishing a User’s access to
party data feeds. In addition the connectivity to the Additional Third an Additional Third Party System
Exchange proposes to make the Party Data Feeds, as such third parties would not give the Exchange any right
corresponding changes to the are not required to make that to use the Additional Third Party
Exchange’s Price List and Fee Schedule information public. However, if one or Systems. Connectivity to an Additional
related to these co-location services. more third parties presently offer, or in Third Party System would not provide
As set forth in the Price List and Fee the future opt to offer, such Access and access or order entry to the Exchange’s
Schedule, the Exchange charges fees for Connectivity to Users, a User may execution system, and a User’s
connectivity to the execution systems of utilize the Secure Financial Transaction connection to an Additional Third Party
third party markets and other content Infrastructure (‘‘SFTI’’) network, a third System would not be through the
service providers (‘‘Third Party party telecommunication network, third Exchange’s execution system.
Systems’’), and data feeds from third party wireless network, a cross connect, As with the existing connections to
party markets and other content service or a combination thereof to access such Third Party Systems, the Exchange
providers (‘‘Third Party Data Feeds’’).6 services and products through a proposes to charge a monthly recurring
The lists of Third Party Systems and connection to an access center outside
fee for connectivity to an Additional
Third Party Data Feeds are set forth in the data center (which could be a SFTI
Third Party System. Specifically, when
the Price List and Fee Schedule. access center, a third-party access
a User requests access to an Additional
The Exchange now proposes to make center, or both), another User, or a third
the following changes: party vendor. Third Party System, it would identify
• Add five content service providers The Exchange will announce the the applicable content service provider
to the list of Third Party Systems: dates that each Product is available and what bandwidth connection it
Chicago Mercantile Exchange (CME through customer notices disseminated required.
Group), Chicago Stock Exchange (CHX), to all Users simultaneously. The Exchange proposes to modify its
Investors Exchange (IEX), OneChicago Connectivity to Additional Third Party Price List and Fee Schedule to add the
and TMX Group (together, the Systems Additional Third Party Systems to its
‘‘Additional Third Party Systems’’ or existing list of Third Party Systems. The
‘‘ATPS’’); and The Exchange proposes to revise the additional items would be as follows:
• add two feeds to the list of Third Price List and Fee Schedule to provide
Party Data Feeds: Investors Exchange that Users may obtain connectivity to Third party systems
and OneChicago (together the the five Additional Third Party Systems
‘‘Additional Third Part Data Feeds’’ or for a fee. As with the current Third Chicago Mercantile Exchange (CME Group)
‘‘ATPD’’). Party Systems, Users would connect to Chicago Stock Exchange (CHX)
The Exchange would provide access the Additional Third Party Systems over Investors Exchange (IEX)
to the Additional Third Party Systems the internet protocol (‘‘IP’’) network, a OneChicago
(‘‘Access’’) and connectivity to the local area network available in the data TMX Group
center.7
4 The Exchange initially filed rule changes As with the current Third Party
The Exchange does not propose to
relating to its co-location services with the Systems, in order to obtain access to an
Commission in 2010. See Securities Exchange Act change the monthly recurring fee the
Additional Third Party System, the User
Release No. 62961 (September 21, 2010), 75 FR Exchange charges Users for unicast
would enter into an agreement with the
59299 (September 27, 2010) (SR–NYSEAmex–2010– connectivity to each Third Party
80) (the ‘‘Original Co-location Filing’’). The relevant third party content service
System, including the Additional Third
Exchange operates a data center in Mahwah, New provider, pursuant to which the third
Jersey (the ‘‘data center’’) from which it provides party content service provider would Party Systems.
co-location services to Users.
5 For purposes of the Exchange’s co-location
charge the User for access to the Connectivity to Additional Third Party
services, a ‘‘User’’ means any market participant Additional Third Party System. The Data Feeds
that requests to receive co-location services directly Exchange would then establish a unicast
from the Exchange. See Securities Exchange Act connection between the User and the The Exchange proposes to revise the
Release No. 76009 (September 29, 2015), 80 FR relevant third party content service Price List and Fee Schedule to provide
60213 (October 5, 2015) (SR–NYSEMKT–2015–67).
As specified in the Price List and Fee Schedule, a provider over the IP network.8 The that Users may obtain connectivity to
User that incurs co-location fees for a particular co- each of the two Additional Third Party
location service pursuant thereto would not be 7 See Securities Exchange Act Release No. 74220
Data Feeds for a fee. The Exchange
subject to co-location fees for the same co-location (February 6, 2015), 80 FR 7894 (February 12, 2015) would receive the Additional Third
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service charged by the Exchange’s affiliates New (SR–NYSEMKT–2015–08) (notice of filing and
York Stock Exchange LLC (‘‘NYSE LLC’’) and NYSE immediate effectiveness of proposed rule change to Party Data Feeds from the content
Arca, Inc. (‘‘NYSE Arca’’ and, together with NYSE include IP network connections). service provider, at its data center. It
LLC, the ‘‘Affiliate SROs’’). See Securities Exchange 8 Information flows over existing network
would then provide connectivity to that
Act Release No. 70176 (August 13, 2013), 78 FR connections in two formats: ‘‘unicast’’ format,
50471 (August 19, 2013) (SR–NYSEMKT–2013–67).
data to Users for a fee. Users would
which is a format that allows one-to-one
6 See Securities Exchange Act Release No. 80309 communication, similar to a phone line, in which
(March 24, 2017), 82 FR 15725 (March 30, 2017) information is sent to and from the Exchange; and information is sent one-way from the Exchange to
(SR–NYSEMKT–2016–63). ‘‘multicast’’ format, which is a format in which multiple recipients at once, like a radio broadcast.

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Document Created: 2017-10-28 00:28:52
Document Modified: 2017-10-28 00:28:52
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 50190