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Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fees and Charges Schedule and the NYSE Arca Equities Fees and Charges Schedule Relating to Co-Location Services To Reflect the Name Change of a Third Party Data Feed
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Published Document: 2017-24442 (82 FR 52347)
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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 25, 2017, NYSE Arca, Inc. (“Exchange” or “NYSE Arca”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange proposes to amend the NYSE Arca Options Fees and Charges schedule and the NYSE Arca Equities Fees and Charges schedule (together, the “Fee Schedules”) relating to co-location services to reflect the name change of a third party data feed. The Exchange proposes to implement the proposed change on November 1, 2017. 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 Fee Schedules relating to co-location [4]
services to reflect the name change of a third party data feed. The Exchange proposes to implement the proposed change on November 1, 2017.
The co-location services that the Exchange offers Users [5]
include connectivity to third party data feeds from third party markets and other content service providers (“Third Party Data Feeds”).[6]
The list of Third Party Data Feeds is set forth in the Fee Schedules, and includes the NYSE Global Index.[7]
The name of NYSE Global Index is changing to “ICE Data Global Index.”
( printed page 52348)
The Exchange accordingly proposes to amend the Fee Schedules to reflect the change. The Exchange does not propose to change the applicable monthly recurring connectivity fee. The Exchange proposes the following changes:
In the third sentence under “Connectivity to Third Party Data Feeds,” the reference to “NYSE Global Index” would be changed to “ICE Data Global Index.”
In the table under “Connectivity to Third Party Data Feeds,” the line listing “NYSE Global Index” and the related $100 monthly recurring connectivity fee would be deleted, and a new line added, as follows (additions italicized):
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; [8]
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.[9]
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,[10]
in general, and furthers the objectives of Sections 6(b)(5) of the Act,[11]
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.
The non-substantive change proposed is intended solely to reflect the name change of “NYSE Global Index” to “ICE Data Global Index.” The proposed rule change, therefore 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 it would update the Fee Schedules to reflect the name change, increasing the clarity and transparency of the Exchange's rules.
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,[12]
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 it is solely intended to reflect the name change of “NYSE Global Index” to “ICE Data Global Index.” No other change is proposed.
C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) [13]
of the Act and subparagraph (f)(2) of Rule 19b-4 [14]
thereunder, because it establishes a due, fee, or other charge imposed by the Exchange.
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) [15]
of the Act to determine whether the proposed rule change should be approved or disapproved.
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:
Send an email torule-comments@sec.gov.
Please include File Number SR-NYSEARCA-2017-124 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.
November 6, 2017.
Third Party Data Feed
Monthly
recurring connectivity fee per Third Party Data Feed
Global OTC
$100
ICE Data Global Index
100
ICE Data Services Consolidated Feed ≤ 100 Mb
200
All submissions should refer to File Number SR-NYSEARCA-2017-124. 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
( printed page 52349)
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-NYSEARCA-2017-124 and should be submitted on or before December 4, 2017.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.[16]
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 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 Price List, a User that incurs co-location fees for a particular co-location service pursuant thereto would not be subject to co-location fees for the same co-location service charged by the Exchange's affiliates New York Stock Exchange LLC (“NYSE LLC”) and NYSE American LLC (“NYSE American” 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).
7.
The NYSE Global Index feed includes index and exchange traded product valuations data, with data drawn from the Exchange, the Affiliate SROS, and third party exchanges. Because it includes third party data, the NYSE Global Index feed is considered a Third Party Data Feed.
See id.,
at 15771.
8.
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.
9.
See 78 FR 50459,
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-2017-55 and SR-NYSEAMER-2017-28.