[Federal Register Volume 85, Number 108 (Thursday, June 4, 2020)]
[Notices]
[Pages 34472-34477]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12017]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88972; File No. SR-NYSECHX-2020-18]


Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the 
Services Available to Users That Use Co-location Services in the 
Mahwah, New Jersey Data Center

May 29, 2020.
    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 May 22, 2020, the NYSE Chicago, Inc. (``NYSE Chicago'' 
or the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I 
and II below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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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 amend the services available to Users that 
use co-location services in the Mahwah, New Jersey data center to add 
the NMS network to connect to the NMS feeds. The proposed rule change 
is available on the Exchange's website 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

[[Page 34473]]

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
Overview
    The Exchange proposes to amend its co-location services \4\ to 
provide Users \5\ with an alternate, dedicated network connection to 
access the NMS feeds (the ``NMS network'') for which the Securities 
Industry Automation Corporation (``SIAC'') is engaged as the securities 
information processor (``SIP''). The Commission recently approved 
similar filings by each Affiliate SRO.\6\
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    \4\ The Exchange initially filed rule changes relating to its 
co-location services with the Commission in 2019. See Securities 
Exchange Act Release No. 87408 (October 28, 2019), 84 FR 58778 
(November 1, 2019) (SR-NYSECHX-2019-12). 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. Id. at note 6. As 
specified in the Fee Schedule of NYSE Chicago (the ``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 the New York Stock Exchange LLC (``NYSE''), 
NYSE American LLC (``NYSE American''), NYSE Arca, Inc. (``NYSE 
Arca''), and NYSE National, Inc. (``NYSE National'' and, together, 
the ``Affiliate SROs''). See id. at 58779.
    \6\ See Securities Exchange Act Release No. 88837 (May 7, 2020) 
(``Approval Order''), approving Securities Exchange Act Release Nos. 
87927 (January 9, 2020), 85 FR 2468 (January 15, 2020) (SR-NYSE-
2019-46); 87929 (January 9, 2020), 85 FR 2453 (January 15, 2020) 
(SR-NYSEAmer-2019-34); 87928 (January 9, 2020), 85 FR 2447 (January 
15, 2020) (SR-NYSEArca-2019-61); and 87930 (January 9, 2020), 85 FR 
2459 (January 15, 2020) (SR-NYSENAT-2019-19) (Notices of filing 
Amendment No. 1).
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    As described below, today Users can connect to Regulation NMS 
equities and options feeds \7\ disseminated by the SIP using either one 
of two co-location local area networks. Currently, a User would need to 
purchase a service that includes either a 10 Gigabit (``Gb'') or 40 Gb 
connection to access a local area network in order to connect to the 
NMS feeds.\8\ Users do not pay an additional charge to connect to the 
NMS feeds: It comes with their connection to the local area network.
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    \7\ The NMS feeds include the Consolidated Tape System and 
Consolidated Quote System data streams, as well as Options Price 
Reporting Authority (``OPRA'') feeds.
    \8\ Because of the volume of data, a 1 Gb connection is not 
sufficient to connect to an NMS feed.
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    The Exchange has been authorized to build the NMS network in the 
Mahwah data center that will only connect to the NMS feeds. The new 
network will connect to the NMS feeds faster than either of the 
existing local area networks. Because a User currently needs to 
purchase a service that includes access to one of the two local area 
networks in the data center via either a 10 Gb or 40 Gb connection to 
connect to the NMS feeds, the Exchange proposes to expand that service 
to include the option to also connect to the NMS network via a same-
sized connection at no additional charge. Accordingly, with this 
proposed rule change, Users will have the option to use the NMS network 
or either of the existing local area networks to connect to the NMS 
feeds. The Exchange is not proposing any changes to its fees.
    Because the NMS network has been built and tested and is ready to 
be implemented, subject to effectiveness of this proposed rule change, 
the Exchange proposes to implement the NMS network as soon as 
practicable. The Exchange will announce the implementation date through 
a customer notice.
Background
    The Exchange's affiliate, SIAC, is engaged as the SIP for three 
separate Regulation NMS plans (collectively, the ``NMS Plans'').\9\ 
SIAC operates as the SIP for the NMS Plans in the same data center 
where the Exchange and its Affiliate SROs operate. In that data center, 
Users can access SIAC as the SIP over the same network connections 
through which they access other services. Specifically, a User can 
access the SIAC SIP environment via either the internet protocol 
(``IP'') network or the Liquidity Center Network (``LCN''), which are 
the local area networks in the data center.\10\
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    \9\ SIAC has been engaged as the SIP to, among other things, 
receive, process, validate and disseminate: (1) Last-sale price 
information in Tape A and Tape B-listed securities pursuant to the 
CTA Plan (``CTA Plan''), which is available here: https://www.nyse.com/publicdocs/ctaplan/notifications/trader-update/CTA%20Plan%20-%20Composite%20as%20of%20August%2027,%202018.pdf; (2) 
quotation information in Tape A and B-listed securities pursuant to 
the CQ Plan (``CQ Plan''), which is available here: https://www.nyse.com/publicdocs/ctaplan/notifications/trader-update/CQ_Plan_Composite_as_of_July_9_2018.pdf; and (3) quotation and last-
sale price information in all exchange options trading pursuant to 
the OPRA Plan (``OPRA Plan''), which is available here: https://uploads-ssl.webflow.com/5ba40927ac854d8c97bc92d7/5bf419a6b7c4f5085340f9af_opra_plan.pdf.
    \10\ See 84 FR 58778, supra note 5, at 58780.
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    The Exchange offers Users connectivity to the SIAC SIP environment 
at no additional charge when a User purchases access to a 10 Gb or 40 
Gb LCN or IP network.\11\ In connection with the services available 
over the local area networks, the SIAC feeds are referred to as the 
``NMS feeds.'' As described in General Note 4 of the Fee Schedule, when 
a User purchases access to the LCN or IP network, it receives 
connectivity to certain market data products (the ``Included Data 
Products'') that it selects, subject to technical provisioning 
requirements and authorization from the provider of the data feed. The 
NMS feeds are included in the list of the Included Data Products that 
come with connections to the LCN or IP network. The remaining Included 
Data Products are proprietary feeds of the Exchange and its Affiliate 
SROs (together, the ``NYSE Exchanges'').
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    \11\ The range of LCN and IP network connectivity options, 
including the bandwidth and latency profile of the applicable 
networks, are described on the Fee Schedule.
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    A User that purchases access to the LCN or IP network also receives 
the ability to access the trading and execution systems of the NYSE 
Exchanges (the ``Exchange Systems'') and the trading and execution 
systems of OTC Global, an alternative trading system (``ATS''), 
subject, in each case, to authorization by the relevant entity.\12\
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    \12\ See id. Information regarding the Included Data Products is 
currently set forth in the second paragraph of General Note 4.
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    Accordingly, without paying an additional connectivity fee, a User 
that purchases access to either the LCN or IP network can use such 
network to:
    1. Access the trading and execution services of five registered 
exchanges (five equities markets, two options markets, and a fixed 
income market) and an ATS;
    2. Connect to the market data of five registered exchanges (five 
equities exchanges, two options markets, and a fixed income market); 
and
    3. Connect to the NMS feeds.
    A User may connect to the NMS feeds through the IP network or LCN. 
Until recently the operating committee for the CTA and CQ Plans (``CTA/
CQ Plans'') mandated use of the IP network to access the NMS feeds.\13\ 
As a result, all LCN connections to the NMS feeds go through the IP 
network before reaching

[[Page 34474]]

the NMS feeds,\14\ and so using the LCN to connect to an NMS feed is 
slower than using the IP network.\15\
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    \13\ The Operating Committee of the CTA/CQ Plans mandated the 
use of the IP network to access the NMS feeds because the IP network 
was built as a secure network designed for resiliency and 
redundancy.
    \14\ By contrast, the LCN does not connect to the IP network for 
access to the Exchange Systems or connectivity to the other Included 
Data Products.
    \15\ A User that uses the LCN to connect to an NMS feed does not 
need to separately purchase an IP network connection.
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Alternate, Dedicated Network Connection for NMS Feeds
    As the SIP for the NMS Plans, SIAC continually assesses the 
services it provides and has been working with the operating committees 
of the NMS Plans and the industry-based advisory committee to the CTA/
CQ Plans to identify potential performance enhancements. Among other 
initiatives, this group identified that, because the IP network was not 
designed as a low-latency network, the requirement to use the IP 
network to access the NMS feeds introduces a layer of latency.
    To reduce network latency, the Exchange sought and received 
approval from the operating committees for the CTA/CQ Plans to build an 
alternate to the LCN and IP network to connect to the NMS feeds.\16\ As 
approved by the CTA/CQ Plans, the Exchange built the NMS network, a 
low-latency network in the data center that will provide Users with 
dedicated access to the NMS feeds.\17\
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    \16\ The alternate network to access the NMS feeds will not be 
available outside of the data center.
    \17\ Because SIAC, as the SIP for the NMS Plans, is also 
responsible for collecting data from the participants of the CTA/CQ 
Plans and members of the OPRA Plan, Users that are participants of 
the applicable NMS Plans could use this alternate network connection 
for purposes of both transmitting and receiving data. Users that are 
not participants of the NMS Plans could use this alternate network 
connection for purposes of receiving data. This alternate network 
would not be available to connect to the other Included Data 
Products or to access the Exchange Systems or Global OTC.
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    The Exchange currently anticipates that the low-latency network 
will have a one-way reduction in latency to access the NMS feeds from 
the IP network and LCN of over 140 microseconds.
    Consistent with the current bandwidth needs to connect to the NMS 
feeds, connections to the NMS network will be available in 10 Gb and 40 
Gb circuits. Because the NMS network will be an alternate network to 
access the NMS feeds, once it is available, Users would have the choice 
between continuing to use the LCN or IP network to connect to NMS feeds 
or switching to the NMS network.
    Even though the NMS network will provide access only to the NMS 
feeds, the Exchange is funding the build of the NMS network and is not 
being reimbursed for such expenses by either CTA or OPRA. The 
Exchange's capital expenditure costs for the build are estimated to be 
$3.8 million, which includes procurement of new low-latency network 
switches, network devices, and analytics tools and the one-time 
operational expenditures to build this new network. In addition to this 
initial estimated approximately $3.8 million outlay, the Exchange 
anticipates that the ongoing costs to maintain and operate the NMS 
network will be approximately $215,000 annually.
Proposed Amendment To Add the NMS Network
    The proposed structure for the NMS network has been designed so 
that the services available in co-location would be expanded so that a 
User can opt to connect to the NMS network at no additional charge.
    To effect the proposed change, the Exchange proposes to amend the 
services available in co-location to provide that if a User purchases a 
service that includes a 10 Gb or 40 Gb connection to access either 
local area network, that access would include a connection to the NMS 
network of the same size. Although the Exchange is funding and 
expanding the types of local area network connections that would be 
available in the data center, the Exchange does not propose to change 
any of the fees related to purchasing a service that includes a 
connection to a local area network.
    More specifically, the services available in co-location currently 
include LCN Access, IP Network Access, and Partial Cabinet Solution 
bundles. In order to implement the proposed change, the Exchange 
proposes the following amendments to Exchange Rules that describe the 
following services in co-location:
     In the column titled ``Type of Service,'' the Exchange 
proposes to amend the text describing the 10 Gb and 40 Gb LCN and IP 
Network Access options to include text referencing the NMS network.
     In the column titled ``Description,'' the Exchange 
proposes to amend the descriptions of the 10 Gb LX LCN Circuit, 40 Gb 
LCN Circuit, Partial Cabinet Solution bundle Option C and Option D, 10 
Gb IP Network Circuit and 40 Gb IP Network Circuit to include text 
referencing the specific NMS Network connection that would be part of 
the service. In addition, because the descriptions of the LCN and IP 
network services do not currently reference either ``LCN'' or ``IP 
Network,'' respectively, the Exchange proposes to add text references 
as applicable.
     Finally, the Exchange proposes to amend text in the column 
titled ``Amount of Charge'' to specify that the current initial and 
monthly recurring charges would not change and that for purposes of 
such charges, the existing local area network connection and NMS 
network connection would be together considered one connection. These 
text changes would make clear that Users would not be subject to two 
initial or two monthly charges. The Partial Cabinet Solution bundle 
description already indicates that the charges are ``per bundle'' and 
therefore no similar clarifying language is proposed.
    The Exchange proposes to set forth these changes as follows 
(proposed new text italicized and proposed text for deletion in 
brackets):

------------------------------------------------------------------------
        Type of service            Description        Amount of charge
------------------------------------------------------------------------
LCN and NMS Network Access....  10 Gb LX LCN       $15,000 initial
                                 Circuit and 10     charge per
                                 Gb NMS Network     connection [initial
                                 Circuit.           charge] to both the
                                                    LCN and NMS Network
                                                    plus $22,000 monthly
                                                    charge per
                                                    connection to both
                                                    the LCN and NMS
                                                    Network.
                                                   For purposes of these
                                                    charges, the LCN
                                                    Circuit and NMS
                                                    Network Circuit are
                                                    together considered
                                                    to be one
                                                    connection, and so
                                                    Users are not
                                                    subject to two
                                                    initial or two
                                                    monthly charges.
LCN and NMS Network Access....  40 Gb LCN Circuit  $15,000 initial
                                 and 40 Gb NMS      charge per
                                 Network Circuit.   connection [initial
                                                    charge] to both the
                                                    LCN and NMS Network
                                                    plus $22,000 monthly
                                                    charge per
                                                    connection to both
                                                    the LCN and NMS
                                                    Network.

[[Page 34475]]

 
                                                   For purposes of these
                                                    charges, the LCN
                                                    Circuit and NMS
                                                    Network Circuit are
                                                    together considered
                                                    to be one
                                                    connection, and so
                                                    Users are not
                                                    subject to two
                                                    initial or two
                                                    monthly charges.
Partial Cabinet Solution        No change........  No change.
 bundles.
Note: A User and its            No change........  No change.
 Affiliates are limited to one
 Partial Cabinet Solution
 bundle at a time. A User and
 its Affiliates must have an
 Aggregate Cabinet Footprint
 of 2 kW or less to qualify
 for a Partial Cabinet
 Solution bundle. See Note 2
 under ``General Notes.''.
                                Option C:........  No change.
                                1 kW partial
                                 cabinet, 1 LCN
                                 connection (10
                                 Gb LX), 1 IP
                                 network
                                 connection (10
                                 Gb), 2 NMS
                                 Network
                                 connections (10
                                 Gb each), 2
                                 fiber cross
                                 connections and
                                 either the
                                 Network Time
                                 Protocol Feed or
                                 Precision Timing
                                 Protocol.
                                Option D:........  No change.
                                2 kW partial
                                 cabinet, 1 LCN
                                 connection (10
                                 Gb LX), 1 IP
                                 network
                                 connection (10
                                 Gb), 2 NMS
                                 Network
                                 connections (10
                                 Gb each), 2
                                 fiber cross
                                 connections and
                                 either the
                                 Network Time
                                 Protocol Feed or
                                 Precision Timing
                                 Protocol.
IP Network and NMS Network      10 Gb IP Network   $10,000 initial
 Access.                         Circuit and 10     charge per
                                 GB NMS Network     connection [initial
                                 Circuit.           charge] to both the
                                                    IP Network and NMS
                                                    Network plus $11,000
                                                    monthly charge per
                                                    connection to both
                                                    the IP Network and
                                                    NMS Network.
                                                   For purposes of these
                                                    charges, the IP
                                                    Network Circuit and
                                                    NMS Network Circuit
                                                    are together
                                                    considered to be one
                                                    connection, and so
                                                    Users are not
                                                    subject to two
                                                    initial or two
                                                    monthly charges.
IP Network and NMS Network      40 Gb IP Network   $10,000 initial
 Access.                         Circuit and 40     charge per
                                 Gb NMS Network     connection [initial
                                 Circuit.           charge]to both the
                                                    IP Network and NMS
                                                    Network plus $18,000
                                                    monthly charge per
                                                    connection to both
                                                    the IP Network and
                                                    NMS Network.
                                                   For purposes of these
                                                    charges, the IP
                                                    Network Circuit and
                                                    NMS Network Circuit
                                                    are together
                                                    considered to be one
                                                    connection, and so
                                                    Users are not
                                                    subject to two
                                                    initial or two
                                                    monthly charges.
------------------------------------------------------------------------

    As noted above, Users that purchase access to the LCN or IP Network 
currently can use such networks to connect to the NMS feeds. Once the 
NMS Network is available, Users can continue to use either their 
existing LCN or IP Network connection or the new NMS network connection 
to connect to the NMS feeds.
    The Exchange proposes to amend the current General Note 4 to 
describe what a User obtains when it purchases a service that includes 
access to the LCN, IP network, or NMS Network.
    First, the Exchange proposes to split current Note 4 into three 
separate notes. The first paragraph of current Note 4 would continue to 
be numbered Note 4, and would specify which trading and execution 
services a User can access when it purchases a service that includes 
access to the LCN or IP network, which are not changing. Because the 
services that a User purchases may include access to the NMS network in 
addition to access to the LCN or IP network, the Exchange proposes a 
non-substantive amendment to the first sentence of this note to add the 
phrase ``a service that includes.''
    Second, the Exchange proposes that the current second paragraph of 
Note 4 and following table would be renumbered as Note 5. As the 
paragraph does currently, Note 5 would specify the Included Data 
Products that a User can connect to if it purchases a service that 
includes access to the LCN or IP network. Similar to the proposed 
amendment to the first sentence of Note 4, the Exchange proposes a non-
substantive amendment to add the phrase ``a service that includes'' to 
the first sentence of new Note 5. In addition, the Exchange proposes a 
non-substantive amendment to the table to clarify that the NMS feeds 
are the CTA, CQ, and OPRA feeds.
    Finally, the Exchange proposes new Note 6, which would describe in 
more detail the NMS network. As proposed, Note 6 would provide that 
when a User purchases a service that includes access to the NMS 
Network, upon its request it would receive connectivity to the NMS 
network and any of the NMS feeds that it selects, subject to any 
technical provisioning requirements and authorization from the provider 
of the data feed. Consistent with existing Note 4 (proposed Note 5), 
Note 6 would provide that market data fees for the NMS feeds would be 
charged by the provider of the NMS data feed. The proposed note would 
further state that the NMS Network would provide connectivity to the 
NMS feeds only.
Expected Application of the Proposed Change
    The proposed NMS network would be available to all Users that 
purchase a service that includes a 10 Gb or 40 Gb connection to access 
either the LCN or IP network, which are the networks currently 
available to provide connections to the NMS feeds.

[[Page 34476]]

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; \18\ 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 more of the Affiliate 
SROs.\19\
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    \18\ 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.
    \19\ See 84 FR 58778, supra note 5, at 58779. The NYSE, NYSE 
American, NYSE Arca, and NYSE National rule changes approved by the 
Commission in the Approval Order all contained substantially the 
same changes described herein. See Securities Exchange Act Release 
Nos. Nos. 87927 (January 9, 2020), 85 FR 2468 (January 15, 2020) 
(SR-NYSE-2019-46); 87929 (January 9, 2020), 85 FR 2453 (January 15, 
2020) (SR-NYSEAmer-2019-34); 87928 (January 9, 2020), 85 FR 2447 
(January 15, 2020) (SR-NYSEArca-2019-61); and 87930 (January 9, 
2020), 85 FR 2459 (January 15, 2020) (SR-NYSENAT-2019-19) (Notices 
of filing Amendment No. 1).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\20\ in general, and furthers the 
objectives of Sections 6(b)(5) of the Act,\21\ 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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    \20\ 15 U.S.C. 78f(b).
    \21\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed change to include access to 
the NMS network as part of existing services available in co-location 
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 
dedicated, low-latency NMS network, the Exchange will be providing 
Users with an additional option to connect to the NMS feeds. Until 
recently, SIAC was required to provide connectivity to the NMS feeds 
via only the IP network. As recently approved by the operating 
committees for the CTA/CQ Plans, SIAC is now authorized to offer 
connectivity to the NMS feeds in the data center via an alternate, 
dedicated, low-latency NMS network. The proposed NMS network has been 
designed consistent with this directive and will provide greater choice 
to Users that are seeking a low-latency network to connect to the NMS 
feeds. In addition, the proposed rule change is identical to the 
proposals approved for the Affiliate SROs.\22\ The proposal therefore 
would provide market participants the ability to obtain consolidated 
market data in a more timely manner, which would enhance the utility of 
this critical component of the national market system for the benefit 
of market participants and investors that rely upon access to 
consolidated market data to effectuate trades and otherwise have 
confidence in the efficiency and integrity of that system.
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    \22\ See Approval Order, supra note 6.
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    For these reasons, the Exchange believes that the proposal is 
consistent with the Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange believes that 
the proposed rule change would not impose any burden on competition 
because it is not designed to address any competitive issues. As 
described above, SIAC is the single plan processor for Tape A and B 
equities securities and all options securities and does not currently 
compete with any other providers for these processor services. The 
proposed rule change would amend the services available in co-location 
to include the NMS network when a User purchases a 10 Gb or 40 Gb 
connection to access either local area network service. Accordingly, 
the proposed rule change would expand the services available in co-
location without changing any fees for the existing services, or adding 
fees for the expanded services. All Users would have access to the NMS 
network and it would be their choice of whether and at what level to 
subscribe to such services, including whether to utilize the NMS 
network connection. Accordingly, the Exchange does not believe that the 
proposed rule change would place any User at a relative disadvantage 
compared to other Users.

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 \23\ and Rule 19b-4(f)(6) thereunder.\24\ 
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.
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    \23\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \24\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \25\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\26\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has 
requested the Commission to waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. The Exchange 
believes that such waiver would be consistent with the protection of 
investors and the public interest because the waiver of the operative 
delay would allow the Exchange to provide Users with access to the NMS 
network on the same schedule as the Affiliate SROs, for which the 
proposed

[[Page 34477]]

rule change has already been approved in the Approval Order. The 
Exchange notes that the technology for the NMS network was available in 
production on May 18, 2020. The Exchange states that waiver of the 
operative delay would allow the Exchange to implement the NMS network 
without delay, thus enhancing the performance of the CTA/CQ and OPRA 
SIPs. For those reasons, 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.\27\
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    \25\ 17 CFR 240.19b-4(f)(6).
    \26\ 17 CFR 240.19b-4(f)(6)(iii).
    \27\ 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) \28\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \28\ 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 rule-comments@sec.gov. Please include 
File Number SR-NYSECHX-2020-18 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-NYSECHX-2020-18. 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 website (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 website 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-NYSECHX-2020-18 and should be submitted 
on or before June 25, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\29\
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    \29\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-12017 Filed 6-3-20; 8:45 am]
BILLING CODE 8011-01-P


