[Federal Register Volume 86, Number 220 (Thursday, November 18, 2021)]
[Notices]
[Pages 64576-64580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25122]



[[Page 64576]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93567; File No. SR-NYSENAT-2021-23]


Self-Regulatory Organizations; NYSE National, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the 
Exchange's Price List Regarding Colocation Services

November 12, 2021.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on November 3, 2021, NYSE National, Inc. (``NYSE National'' or 
``Exchange'') 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 Exchange. 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 Exchange's Price List regarding 
colocation services and fees to provide Users with wireless 
connectivity to CME Group market data. 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the Price List regarding colocation 
services and fees to provide Users \4\ with wireless connectivity to 
CME Group market data.\5\
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    \4\ 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. 83351 (May 31, 2018), 83 FR 26314 (June 6, 
2018) (SR-NYSENAT-2018-07). 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 American LLC, NYSE Arca, Inc., and 
NYSE Chicago, 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-2021-67, 
SR-NYSEAMER-2021-43, SR-NYSEArca-2021-97, and SR-NYSECHX-2021-17.
    \5\ The Exchange initially filed rule changes relating to its 
co-location services with the Securities and Exchange Commission 
(``Commission'') in 2018. See 83 FR 26314, supra note 4.
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    The Exchange currently provides Users with wireless connections to 
eight market data feeds or combinations of feeds from third party 
markets (the ``Existing Third Party Data''),\6\ and wired connections 
to 43 market data feeds.\7\ The Exchange now proposes to add to its 
Price List wireless connections to CME Group, Inc. (``CME Group'') 
market data (such data, ``CME Group Data'' and, together with the 
Existing Third Party Data, the ``Third Party Data''). Users would be 
offered the proposed wireless connection to the CME Group Data through 
connections into the colocation center in the Mahwah, New Jersey data 
center (``Data Center'').\8\
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    \6\ See id., at 26319-26320.
    \7\ See id., at 26322-26323.
    \8\ Through its ICE Data Services (``IDS'') business, 
Intercontinental Exchange, Inc. (``ICE'') operates the Data Center 
in Mahwah, New Jersey. The Exchange and the Affiliate SROs are 
indirect subsidiaries of ICE. The proposed service would be provided 
by IDS pursuant to an agreement with a non-ICE entity. IDS does not 
own the wireless network that would be used to provide the service.
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    The Exchange expects that the proposed rule change would become 
operative no later than March 31, 2022. The Exchange will announce the 
date that the wireless connection to the CME Group Data will be 
available through a customer notice.
    To receive CME Group Data, the User would enter into an agreement 
with a non-Exchange affiliated party for permission to receive the 
data, if required. The User would pay this third party any fees for the 
data content.
    For each wireless connection to CME Group Data, a User would be 
charged a $5,000 non-recurring initial charge and a monthly recurring 
charge of $6,000. The Exchange proposes to revise its Price List to 
reflect fees related to the wireless connection to CME Group Data.
    The CME Group Data would not include all possible CME Group data 
feeds. There is limited bandwidth available on the wireless network to 
co-location, and there are currently dozens of CME Group data feeds. To 
provide connectivity to all of them would use a large amount of 
bandwidth.
    Accordingly, rather than provide connectivity to all possible 
symbols included in the CME Group data feeds, the wireless connection 
would only provide connectivity to a selection of CME Group market data 
for which IDS determines there is User demand. IDS similarly provides 
connectivity to a selection of data, rather than entire feeds, over a 
wireless connection to the Markham, Canada third party data center.\9\ 
The User would then determine the symbols for which it would receive 
data, which could include data regarding some or all of the symbols for 
which IDS provides connectivity.\10\ The Exchange would not have 
visibility into which portion of the CME Group Data a given User 
receives.
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    \9\ See Securities Exchange Act Release No. 88241 (February 19, 
2020), 85 FR 10738 (February 25, 2020) (SR-NYSENAT-2020-08). See 
also Securities Exchange Act Release No. 90209 (October 15, 2020), 
85 FR 67044 (October 21, 2020) (SR-NYSE-2020-05, SR-NYSEAMER-2020-
05, SR-NYSEArca-2020-08, SR-NYSECHX-2020-02, SR-NYSENAT-2020-03, SR-
NYSE-2020-11, SR-NYSEAMER-2020-10, SR-NYSEArca-2020-15, SR-NYSECHX-
2020-05, SR-NYSENAT-2020-08).
    \10\ The Exchange understands that the third parties that 
provide wireless connectivity to CME Group market data to the Data 
Center and other data centers in New Jersey follow a substantially 
similar model, offering connectivity to a selection of market data 
rather than entire feeds.
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    As with the Existing Third Party Data, if a User purchased two 
wireless connections, it would pay two non-recurring initial charges. 
Each wireless connection would include the use of one port for 
connectivity to CME Group Data. A User would not pay a fee for the use 
of such port. If a User also connects to Existing Third Party Data, it 
would not be able to use the same port that it uses for connectivity to 
CME Group Data to connect to such Existing Third Party Data. 
Accordingly, a User that connects to both CME Group Data and Existing 
Third Party Data would have at least two ports, and would not be 
separately charged for two ports.\11\
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    \11\ If a User purchased a wireless connection to CME Group 
Data, that connection would include the use of one port for 
connectivity to CME Group Data. If the same User connected to 
Existing Third Party Data, it would receive the use of one port for 
connectivity to the Existing Third Party Data. It would not be 
separately charged for such ports. A User may purchase additional 
ports. See 83 FR 26314, supra note 4, at 26318.

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[[Page 64577]]

Application and Impact of the Proposed Changes
    The proposed changes would not apply differently to distinct types 
or sizes of market participants. Rather, they would apply to all Users 
equally.
    As is currently the case, the purchase of any co-location service, 
including connectivity to Third Party Data, is completely voluntary and 
the Price List is applied uniformly to all Users.
Competitive Environment
    Users that do not opt to utilize the Exchange's proposed wireless 
connection would still be able to obtain CME Group market data using 
other methods: From another User, a third party wireless connection, or 
through an IDS or third party fiber connection.
    Based on the information available to it, the Exchange believes 
that at least one market participant provides wireless connectivity to 
CME Group market data in the Data Center. The Exchange believes that 
the wireless connection offered by this third party entity provides 
connectivity at the same or similar speed as the proposed connection to 
CME Group Data, and at the same or similar cost.\12\ The proposed 
connection to CME Group Data and the existing third party wireless 
connection to CME Group Data would follow the same route within the 
Data Center: They would both enter through a meet-me-room, connect to 
equipment in co-location, and then connect to any Users that are 
customers. Because of this, the Exchange does not believe that IDS has 
an advantage over the third party in providing the connectivity. The 
proposed wireless connection would lead to a pole, from where a fiber 
connection would lead into the Data Center. The pole is owned by a 
third party and is not on the grounds of the Data Center.
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    \12\ Because the third party is not a regulated entity, it is 
not obligated to make its latency figures or fees publicly available 
or the same for all entities.
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    IDS already offers fiber connections to CME Group market data to 
Users.\13\ The Exchange also believes that at least two third party 
market participants offer such fiber connections to CME Group market 
data. In addition to these options, a User may create a proprietary 
wireless connection or connect through another User in order to connect 
to CME Group market data. The Exchange believes that at least two 
market participants already provide wireless connectivity to CME Group 
market data to other data centers in New Jersey.
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    \13\ See id., at 26323.
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    Wireless connections involve beaming signals through the air 
between antennas that are within line of sight of one another. Because 
the signals travel a straight, unimpeded line, and because light waves 
travel faster through air than through glass (fiber optics), wireless 
messages have lower latency than messages travelling through fiber 
optics. At the same time, as a general rule wireless networks have less 
uptime than fiber networks. Wireless networks are directly and 
immediately affected by adverse weather conditions, which can cause 
message loss and outage periods. Wireless networks cannot be configured 
with redundancy in the same way that fiber networks can. As a result, 
an equipment or weather issue at any one location on the network will 
cause the entire network to have an outage. In addition, maintenance 
can take longer than it would with a fiber based network, as the 
relevant tower may be in a hard to reach location, or weather 
conditions may present safety issues, delaying technicians servicing 
equipment. Even under normal conditions, a wireless network will have a 
higher error rate than a fiber network of the same length.
    The latency of a wireless network depends on several factors. 
Variables include the wireless equipment utilized; the route of, and 
number of towers or buildings in, the network; their proximity to the 
data centers on either end; and the fiber equipment used at either end 
of the connection. Moreover, latency is not the only consideration that 
a customer may have in selecting a wireless network to connect to CME 
Group market data. Other considerations may include the amount of 
network uptime; the equipment that the network uses; the cost of the 
connection; and the applicable contractual provisions. Indeed, fiber 
network connections may be more attractive to some market participants 
as they are more reliable and less susceptible to weather conditions.
    The Exchange operates in a highly competitive market in which 
exchanges and other vendors (e.g., Hosting Users) 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. The Commission has 
repeatedly expressed its preference for competition over regulatory 
intervention in determining prices, products, and services in the 
securities markets. Specifically, in Regulation NMS, the Commission 
highlighted the importance of market forces in determining prices and 
SRO revenues and, also, recognized that current regulation of the 
market system ``has been remarkably successful in promoting market 
competition in its broader forms that are most important to investors 
and listed companies.'' \14\
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    \14\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496, 37499 (June 29, 2005).
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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,\15\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\16\ 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,\17\ 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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    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
    \17\ 15 U.S.C. 78f(b)(4).
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The Proposed Change Is Reasonable
    The Exchange believes that the proposed rule change is reasonable.
    The wireless connection would provide Users with an alternative 
means of connectivity to CME Group Data. The proposed change would 
provide Users with an additional choice with respect to the form and 
optimal latency of the connectivity they use to receive CME Group 
market data, allowing a User to select the connectivity that better 
suits its needs, helping it tailor its colocation operations to the 
requirements of its

[[Page 64578]]

business operations. Users that do not opt to utilize the Exchange's 
proposed wireless connection would still be able to obtain CME Group 
market data using other methods: From another User, a third party 
wireless connection, or through an IDS or third party fiber connection.
    Based on the information available to it, the Exchange believes 
that at least one market participant provides wireless connectivity to 
CME Group market data in the Data Center. The Exchange believes that 
the wireless connection offered by this third party entity provides 
connectivity at the same or similar speed as the proposed connection to 
CME Group Data, and at the same or similar cost. The proposed 
connection to CME Group Data and the existing third party wireless 
connection to CME Group Data would follow the same route within the 
Data Center: They would both enter through a meet-me-room, connect to 
equipment in co-location, and then connect to any Users that are 
customers. Because of this, the Exchange does not believe that IDS has 
an advantage over the third party in providing the connectivity. The 
proposed wireless connection would lead to a pole, from where a fiber 
connection would lead into the Data Center. The pole is owned by a 
third party and is not on the grounds of the Data Center.
    IDS already offers fiber connections to CME Group market data to 
Users.\18\ The Exchange also believes that at least two third party 
market participants offer such fiber connections to CME Group. In 
addition to these options, a User may create a proprietary wireless 
connection or connect through another User in order to connect to CME 
Group market data. The Exchange believes that at least two market 
participants already provide wireless connectivity to CME Group market 
data to other data centers in New Jersey.
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    \18\ See 83 FR 26314, supra note 4, at 26323.
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    Market participants' considerations in determining what 
connectivity to purchase may include latency; the amount of network 
uptime; the equipment that the network uses; the cost of the 
connection; and the applicable contractual provisions. Indeed, fiber 
network connections may be more attractive to some market participants 
as they are more reliable and less susceptible to weather conditions.
    The Exchange believes that it is reasonable to not transport 
information for all of the symbols included in CME Group data feeds to 
the Data Center, but rather to transport a subset of that data. There 
is limited bandwidth available on the wireless network to co-location, 
and there are a number of CME Group data feeds. Limiting the feeds to 
the selection of CME Group market data regarding securities for which 
IDS determines there is demand would allow Users to receive the 
relevant CME Group Data over a wireless network, which could include 
data regarding some or all of the symbols for which IDS provides 
connectivity. The User would then determine those symbols for which it 
will receive data.
    The Exchange believes that it is reasonable that a User that has 
already purchased wireless connections to other Third Party Data would 
be charged a non-recurring charge when it purchases a wireless 
connection to the CME Group Data, because it would allow the Exchange 
to defray or cover certain costs it incurs in installing the wireless 
connection to the CME Group Data, which costs it incurs irrespective of 
whether the User has existing wireless connections to Third Party Data, 
while providing the User the benefit of the installation, which would 
allow it to receive CME Group Data within co-location and with a lower 
latency over the fiber optics option. To do the initial installation, 
the Exchange must provide the personnel required for initial 
installation and testing. The costs associated with installing wireless 
connections are incrementally higher than those associated with 
installing fiber optics-based solutions.
    The Exchange believes that it is reasonable that a User that 
connects to both CME Group Data and Existing Third Party Data may not 
use the same port for connectivity to both, and so would have at least 
two ports, because the proposed wireless connection would include the 
use of one port for connectivity to CME Group Data and connectivity to 
the Existing Third Party Data includes the use of one port for 
connectivity to Existing Third Party Data. A User would not pay a 
separate fee for using such ports.
    The Exchange believes the proposed pricing for the wireless 
connection to CME Group Data is reasonable because it would allow the 
Exchange to defray or cover the costs associated with offering Users a 
wireless connection to CME Group Data while providing Users the benefit 
of receiving CME Group Data within co-location and with a lower latency 
over the fiber optics option. The wireless connection for CME Group 
Data would allow Users to select the CME Group Data connectivity option 
that better suits their needs.
    The Exchange believes that the proposed pricing is reasonable 
because the Exchange proposes to offer the wireless connection to CME 
Group Data described herein as a convenience 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. Specifically, in order to offer 
wireless connections, the Exchange must install, test, maintain and 
operate the wireless equipment.
The Proposed Change Is Not Unfairly Discriminatory
    The Exchange believes that the proposed rule change is not unfairly 
discriminatory for the following reasons.
    Without this proposed rule change, Users would have fewer options 
for connectivity to CME Group Data. The proposed change would provide 
Users with an additional choice with respect to the form and optimal 
latency of the connectivity they use to receive CME Group market data, 
allowing a User to select the connectivity that better suits its needs, 
helping it tailor its colocation operations to the requirements of its 
business operations. Users that do not opt to utilize the Exchange's 
proposed wireless connection would still be able to obtain CME Group 
market data using other methods: From another User, a third party 
wireless connection, or through an IDS or third party fiber connection.
    The Exchange believes that it is not unfairly discriminatory to not 
transport information for all of the symbols included in CME Group data 
feeds to the Data Center, but rather to transport a subset of that 
data. There is limited bandwidth available on the wireless network to 
co-location, and there are a number of CME Group data feeds. Limiting 
the feeds to the selection of CME Group market data regarding 
securities for which IDS determines there is demand would allow Users 
to receive the relevant CME Group Data over a wireless network. The 
User would then determine those symbols for which it will receive data, 
which could include data regarding some or all of the symbols for which 
IDS provides connectivity.

[[Page 64579]]

    The Exchange believes that the proposed pricing is not unfairly 
discriminatory because the Exchange proposes to offer the wireless 
connection to CME Group Data described herein as a convenience 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. Specifically, in 
order to offer wireless connections, the Exchange must install, test, 
maintain and operate the wireless equipment.
    The Exchange believes that the proposed change is not unfairly 
discriminatory because it will result in fees being charged only to 
Users that voluntarily select to receive the corresponding services and 
because those services will be available to all Users. Furthermore, the 
Exchange believes that the services and fees proposed herein are not 
unfairly discriminatory because, in addition to the services being 
completely voluntary, they are available to all Users on an equal basis 
(i.e., the same products and services are available to all Users). All 
Users that voluntarily select wireless connections to CME Group Data 
would be charged the same amount for the same services.
    Users that opt to use wireless connections to CME Group Data would 
receive the CME Group Data that is available to all Users, as all 
market participants that contract with CME Group or its affiliate for 
CME Group Data, as required, may receive it.
The Proposed Change Is an Equitable Allocation of Fees and Credits
    The Exchange believes that its proposal equitably allocates its 
fees among Users.
    Without this proposed rule change, Users would have fewer options 
for connectivity to CME Group Data. The proposed change would provide 
Users with an additional choice with respect to the form and optimal 
latency of the connectivity they use to receive CME Group market data, 
allowing a User to select the connectivity that better suits its needs, 
helping it tailor its colocation operations to the requirements of its 
business operations. Users that do not opt to utilize the Exchange's 
proposed wireless connection would still be able to obtain CME Group 
market data using other methods: From another User, a third party 
wireless connection, or through an IDS or third party fiber connection.
    The Exchange believes that the proposed change is equitable because 
it will result in fees being charged only to Users that voluntarily 
select to receive the corresponding services and because those services 
will be available to all Users. Furthermore, the Exchange believes that 
the services and fees proposed herein are equitably allocated because, 
in addition to the services being completely voluntary, they are 
available to all Users on an equal basis (i.e., the same products and 
services are available to all Users). All Users that voluntarily select 
wireless connections to CME Group Data would be charged the same amount 
for the same services.
    The Exchange operates in a highly competitive market in which 
exchanges offer co-location services as a means to facilitate the 
trading and other market activities of those market participants who 
believe that co-location enhances the efficiency of their operations. 
Accordingly, fees charged for co-location services are constrained by 
the active competition for the order flow of, and other business from, 
such market participants. If a particular exchange charges excessive 
fees for co-location services, affected market participants will opt to 
terminate their co-location arrangements with that exchange, and adopt 
a possible range of alternative strategies, including placing their 
servers in a physically proximate location outside the exchange's data 
center (which could be a competing exchange), or pursuing strategies 
less dependent upon the lower exchange-to-participant latency 
associated with co-location. Accordingly, the exchange charging 
excessive fees would stand to lose not only co-location revenues but 
also the liquidity of the formerly co-located trading firms, which 
could have additional follow-on effects on the market share and revenue 
of the affected exchange.
    For the reasons above, the proposed changes do 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.

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

    The Exchange believes that the proposal will not impose any burden 
on competition that is not necessary or appropriate in furtherance of 
the purposes of Section 6(b)(8) of the Act.\19\
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    \19\ 15 U.S.C. 78f(b)(8).
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    The proposed change does not affect competition among national 
securities exchanges or among members of the Exchange, but rather 
between IDS and its commercial competitors.
    The wireless connection would provide Users with an alternative 
means of connectivity to CME Group Data. The proposed change would 
provide Users with an additional choice with respect to the form and 
optimal latency of the connectivity they use to receive CME Group 
market data, allowing a User to select the connectivity that better 
suits its needs, helping it tailor its colocation operations to the 
requirements of its business operations.
    Users that do not opt to utilize the Exchange's proposed wireless 
connection would still be able to obtain CME Group market data using 
other methods: From another User, a third party wireless connection, or 
through an IDS or third party fiber connection. Based on the 
information available to it, the Exchange believes that at least one 
market participant provides wireless connectivity to CME Group market 
data in the Data Center. The Exchange believes that the wireless 
connection offered by this third party entity provides connectivity at 
the same or similar latency as the proposed connection to CME Group 
Data, and at the same or similar cost. The proposed connection to CME 
Group Data and the existing third party wireless connection to CME 
Group Data would follow the same route within the Data Center: They 
would both enter through a meet-me-room, connect to equipment in co-
location, and then connect to any Users that are customers. Because of 
this, the Exchange does not believe that IDS has an advantage over the 
third party in providing the connectivity. The proposed wireless 
connection would lead to a pole, from where a fiber connection would 
lead into the Data Center. The pole is owned by a third party and is 
not on the grounds of the Data Center.
    IDS already offers fiber connections to CME Group market data to 
Users.\20\ The Exchange also believes that at least two third party 
market participants offer such fiber connections to CME Group. In 
addition to these options, a User may

[[Page 64580]]

create a proprietary wireless connection or connect through another 
User in order to connect to CME Group market data. The Exchange 
believes that at least two market participants already provide wireless 
connectivity to CME Group market data to other data centers in New 
Jersey.
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    \20\ See 83 FR 26314, supra note 4, at 26323.
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    The Exchange notes that the proposed wireless connection would 
compete not just with other wireless connections to CME Group market 
data, but also with fiber network connections, which may be more 
attractive to some market participants as they are more reliable and 
less susceptible to weather conditions. Market participants' 
considerations in determining what connectivity to purchase may include 
latency; the amount of network uptime; the equipment that the network 
uses; the cost of the connection; and the applicable contractual 
provisions. As noted above, a User may purchase a fiber connection to 
CME Group market data from at least three providers, including IDS.
    The Exchange operates in a highly competitive market in which 
exchanges and other vendors (e.g., Hosting Users) 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. The Commission has 
repeatedly expressed its preference for competition over regulatory 
intervention in determining prices, products, and services in the 
securities markets. Specifically, in Regulation NMS, the Commission 
highlighted the importance of market forces in determining prices and 
SRO revenues and, also, recognized that current regulation of the 
market system ``has been remarkably successful in promoting market 
competition in its broader forms that are most important to investors 
and listed companies.'' \21\
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    \21\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496, 37499 (June 29, 2005).
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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

    Because the foregoing 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 for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \22\ and Rule 19b-
4(f)(6) thereunder.\23\
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    \22\ 15 U.S.C. 78s(b)(3)(A).
    \23\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization 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 the 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 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:

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-NYSENAT-2021-23 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-NYSENAT-2021-23. 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-NYSENAT-2021-23, and should be submitted 
on or before December 9, 2021.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-25122 Filed 11-17-21; 8:45 am]
BILLING CODE 8011-01-P


