[Federal Register Volume 86, Number 85 (Wednesday, May 5, 2021)]
[Notices]
[Pages 24096-24098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09450]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91731; File No. SR-NYSECHX-2021-08]


Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Amending the 
Fee Schedule of NYSE Chicago, Inc.

April 29, 2021.
    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 April 16, 2021, 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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[[Page 24097]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Fee Schedule of NYSE Chicago, 
Inc. (``Fee Schedule'') regarding colocation services and fees to add 
further specificity as to how monthly fees for dedicated cabinets are 
calculated. 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 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 its Fee Schedule regarding 
colocation services and fees \4\ to add further specificity as to how 
monthly fees for dedicated cabinets are calculated. The proposed change 
is not substantive and would not change the amount or structure of the 
fees.
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    \4\ The Exchange initially filed rule changes relating to its 
co-location services with the Securities and Exchange Commission 
(``Commission'') in 2019. See Securities Exchange Act Release No. 
87408 (October 28, 2019), 84 FR 58778 (November 1, 2019) (SR-
NYSECHX-2019-27). The Exchange is an indirect subsidiary of 
Intercontinental Exchange, Inc. (``ICE''). Through its ICE Data 
Services business, ICE operates a data center in Mahwah, New Jersey, 
from which the Exchange provides co-location services to Users.
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    The Exchange offers Users \5\ dedicated and partial cabinets to 
house their servers and other equipment.\6\ Each dedicated cabinet has 
a standard power allocation of either 4 kilowatts (``kW'') or 8 kW, but 
additional power can be added if the User requests.\7\ Users may 
request that such additional power be allocated to a dedicated cabinet 
when it is first set up or later.
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    \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 id., at note 6. As 
specified in 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 New York Stock Exchange LLC, NYSE 
American LLC, NYSE Arca, Inc., and NYSE National, Inc. (together, 
the ``Affiliate SROs''). Each Affiliate SRO has submitted 
substantially the same proposed rule change to propose the changes 
described herein. See SR-NYSE-2021-26, SR-NYSEAMER-2021-22, SR-
NYSEArca-2021-26, and SR-NYSENAT-2021-10.
    \6\ See Securities Exchange Act Release No. 84 FR 58778, supra 
note 4.
    \7\ Presently, the maximum amount of power that can be allocated 
to one dedicated cabinet is 15 kW.
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    A User pays a monthly fee based on the power allocated to its 
dedicated cabinets. As previously indicated,\8\ the tiered fee is based 
on the total kWs allocated to all of a User's dedicated cabinets, not 
the kWs allocated to an individual dedicated cabinet. For example, a 
User that has two dedicated cabinets with a total power allocation of 
12 kW has a monthly charge of $1,200 per kW for the first eight kW and 
$1,050 per kW for the next four kW (between 9 kW and 12 kW), for a 
total of $13,800, irrespective of how the User divides the 12 kW 
between its two cabinets.
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    \8\ See Securities Exchange Act Release No. 65237 (August 31, 
2011), 76 FR 55432 (September 7, 2011) (SR-NYSE-2011-46).
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    To further clarify how the fees are calculated, in a non-
substantive change, the Exchange proposes to make the following edits 
to the Fee Schedule:
     Revise the title ``Monthly Fee per Cabinet'' to read 
``Monthly Fee for Cabinets''; and
     under the heading ``Dedicated Cabinet,'' add the following 
text: ``Monthly fee is based on total kWs allocated to all of a User's 
dedicated cabinets''.
    The Exchange does not propose to change the fees.
Application and Impact of the Proposed Changes
    The proposed change is not expected to have any impact on Users. 
Users are currently subject to the described services and fees, none of 
which is new or novel. Current Users would not incur any new or changed 
fees and the Exchange does not expect to attract any new Users as a 
result of the proposed change. The change would simply add clarity to 
the Fee Schedule concerning the monthly fee for dedicated cabinets.
    The proposed change is not targeted at, or expected to be limited 
in applicability to, a specific segment of market participant, as 
colocation is available to any market participant that wishes to be a 
User.
    The proposed change is not otherwise intended to address any other 
issues, and the Exchange is not aware of any problems that member 
organizations 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,\9\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\10\ 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 mechanism 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. The Exchange further believes 
that the proposed rule change is consistent with Section 6(b)(4) of the 
Act,\11\ because it provides for the equitable allocation of reasonable 
dues, fees, and other charges among its members and issuers and other 
persons using its facilities and does not unfairly discriminate between 
customers, issuers, brokers, or dealers.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the proposed rule change is reasonable 
because it would add clarity to the Fee Schedule regarding how the 
monthly fee for dedicated cabinets is calculated, clarifying that the 
monthly fee for dedicated cabinets is based on the aggregate number of 
kW allocated to all the User's dedicated cabinets, and not charged on a 
per-cabinet basis. It would add detail previously stated in rule 
filings with the Commission \12\ to the Fee Schedule. Doing so would 
remove impediments to, and perfecting the mechanisms of, a free and 
open market and a national market system and, in general, protecting 
investors and the public interest because the change would add clarity 
and transparency to the Exchange rules, alleviating potential investor 
or market participant confusion.
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    \12\ See 76 FR 55432, supra note 8.
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    The proposed change is equitable, as it would add clarity for all 
market participants with respect to how the monthly fee for dedicated 
cabinets is calculated. At the same time, it is a non-substantive 
change that would not impact the services available to Users or

[[Page 24098]]

the fees charged for such services. The Exchange does not expect to 
attract any new Users as a result of the proposed change. The proposed 
change is not expected to have any impact on Users. Users are currently 
subject to the described services and fees, none of which is new or 
novel.
    For the reasons above, the proposed changes do not unfairly 
discriminate between or among market participants that are otherwise 
capable of satisfying any applicable colocation 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,\13\ 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 ministerial in nature and is not 
designed to have any competitive impact. Rather, the change would 
simply add clarity to the Fee Schedule regarding how the monthly fee 
for dedicated cabinets is calculated, clarifying that the monthly fee 
for dedicated cabinets is based on the aggregate number of kW allocated 
to all the User's dedicated cabinets, and not charged on a per-cabinet 
basis. The change would add clarity and transparency to the Exchange 
rules, alleviating potential investor or market participant confusion.
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    \13\ 15 U.S.C. 78f(b)(8).
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    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 \14\ and Rule 19b-4(f)(6) thereunder.\15\ 
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.\16\
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    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires the Exchange to give the Commission written notice of its 
intent to file the proposed rule change, along with a brief 
description and text of 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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    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) \17\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \17\ 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-2021-08 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-2021-08. 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-2021-08 and should be submitted 
on or before May 26, 2021.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-09450 Filed 5-4-21; 8:45 am]
BILLING CODE 8011-01-P


