Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing of Proposed Rule Change To Amend the Schedule of Wireless Connectivity Fees and Charges To Add Circuits for Connectivity Into and Out of the Data Center in Mahwah, New Jersey

Published date04 March 2021
FR Document2021-04422
Citation86 FR 12752
Pages12752-12762
SectionNotices
IssuerSecurities and Exchange Commission,Securities And Exchange Commission
Federal Register, Volume 86 Issue 41 (Thursday, March 4, 2021)
[Federal Register Volume 86, Number 41 (Thursday, March 4, 2021)]
                [Notices]
                [Pages 12752-12762]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2021-04422]
                -----------------------------------------------------------------------
                SECURITIES AND EXCHANGE COMMISSION
                [Release No. 34-91215; File No. SR-NYSENAT-2021-04]
                Self-Regulatory Organizations; NYSE National, Inc.; Notice of
                Filing of Proposed Rule Change To Amend the Schedule of Wireless
                Connectivity Fees and Charges To Add Circuits for Connectivity Into and
                Out of the Data Center in Mahwah, New Jersey
                February 26, 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 February
                [[Page 12753]]
                12, 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.
                ---------------------------------------------------------------------------
                 \1\ 15 U.S.C. 78s(b)(1).
                 \2\ 15 U.S.C. 78a.
                 \3\ 17 CFR 240.19b-4.
                ---------------------------------------------------------------------------
                I. Self-Regulatory Organization's Statement of the Terms of Substance
                of the Proposed Rule Change
                 The Exchange proposes to amend the schedule of Wireless
                Connectivity Fees and Charges (the ``Fee Schedule'') to (1) add
                circuits for connectivity into and out of the data center in Mahwah,
                New Jersey (the ``Mahwah Data Center''); (2) add services available to
                customers of the Mahwah Data Center that are not colocation Users; and
                (3) change the name of the Fee Schedule to ``Mahwah Wireless, Circuits,
                and Non-Colocation Connectivity Fee Schedule.'' 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 Fee Schedule to add services
                (``NCL Services'') and related fees available to customers of the
                Mahwah Data Center that are not colocation Users (``NCL
                Customers''),\4\ as well as circuits into and out of the Mahwah Data
                Center that are available to both colocation Users and NCL Customers.
                In addition, in a conforming change, because the Fee Schedule would no
                longer be limited to wireless services, the Exchange proposes to change
                the name of the Fee Schedule from ``Wireless Connectivity Fee
                Schedule'' to ``Mahwah Wireless, Circuits, and Non-Colocation
                Connectivity Fee Schedule.'' \5\
                ---------------------------------------------------------------------------
                 \4\ For purposes of the Exchange's colocation services, a
                ``User'' means any market participant that requests to receive
                colocation services directly from the Exchange. See Securities
                Exchange Act Release No. 83351 (May 31, 2018), 83 FR 26314 at n.9
                (June 6, 2018) (SR-NYSENAT-2018-07) (``NYSE National Colocation
                Notice'').
                 \5\ Each of the Exchange's affiliates (New York Stock Exchange
                LLC, NYSE American LLC, NYSE Arca, Inc., and NYSE Chicago, Inc.)
                (the ``Affiliate SROs'') has submitted substantially the same
                proposed rule change to propose the changes described herein. See
                SR-NYSE-2021-14, SR-NYSEAMER-2021-10, SR-NYSEArca-2021-13, and SR-
                NYSECHX-2021-03.
                ---------------------------------------------------------------------------
                 The Exchange makes the current proposal solely as a result of its
                determination that the Commission's recent interpretations of the Act's
                definitions of the terms ``exchange'' and ``facility,'' as expressed in
                the Wireless Approval Order,\6\ apply to connectivity services
                described herein that are offered by entities other than the Exchange.
                The Exchange disagrees with the Commission's interpretations, denies
                the services covered herein (and in the Wireless Approval Order) are
                offerings of an ``exchange'' or a ``facility'' thereof, and has sought
                review of the Commission's interpretations, as expressed in the
                Wireless Approval Order, in the Court of Appeals for the District of
                Columbia Circuit.\7\ Pending resolution of such appeal, however, the
                Exchange is making this proposal in recognition that the Commission's
                current interpretation brings certain offerings of the Exchange's
                affiliates into the scope of the terms ``exchange'' or ``facility.''
                ---------------------------------------------------------------------------
                 \6\ See 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) (``Wireless Approval Order'').
                 \7\ Intercontinental Exchange, Inc. v. SEC, No. 20-1470 (D.C.
                Cir. 2020).
                ---------------------------------------------------------------------------
                 The Exchange expects the proposed change to be operative 60 days
                after the present filing becomes effective.
                Mahwah Circuits
                 Customers can connect into and out of the Mahwah Data Center using
                either wireless connections or wired fiber optic circuits. Both IDS and
                numerous third-party telecommunications service providers offer wired
                circuits into and out of the Mahwah Data Center. The circuits that IDS
                offers are described below. Such IDS circuits are available to all
                colocation Users and NCL Customers, but such customers are not
                obligated to use them; rather, both colocation Users and NCL Customers
                may instead choose to contract directly with third-party telecom
                carriers for circuits into and out of the Mahwah Data Center.
                 The Exchange proposes to add to the Fee Schedule the circuit
                options offered by IDS to both colocation Users and NCL Customers to
                connect into and out of the Mahwah Data Center. Specifically, the
                Exchange proposes to amend the Fee Schedule to add two different types
                of circuits, each available in three different sizes, under the new
                heading ``C. Mahwah Circuits.''
                 First, the Exchange proposes to amend the Fee Schedule to add
                ``Optic Access'' circuits, which are circuits that IDS operates and
                that customers can use to connect between the Mahwah Data Center and
                IDS access centers at the following six third-party owned data centers:
                (1) 111 Eighth Avenue, New York, NY; (2) 32 Avenue of the Americas, New
                York, NY; (3) 165 Halsey, Newark, NJ; (4) Secaucus, NJ (the ``Secaucus
                Access Center''); (5) Carteret, NJ (the ``Carteret Access Center'');
                and (6) Weehawken, NJ. Optic Access circuits are available in 1 Gb, 10
                Gb, and 40 Gb sizes.
                 Second, the Exchange proposes to amend the Fee Schedule to add
                lower-latency Optic Low Latency circuits that IDS operates and that
                customers can use to connect between the Mahwah Data Center and IDS's
                Secaucus Access Center or Carteret Access Center. Optic Low Latency
                circuits are available in 1 Gb, 10 Gb, and 40 Gb sizes.
                 The Exchange proposes to add the following chart to the Fee
                Schedule to include these circuits, as follows:
                ------------------------------------------------------------------------
                 Type of service Amount of charge
                ------------------------------------------------------------------------
                Optic Access Circuit--1 Gb............. $1,500 initial charge plus
                 $1,500 monthly charge.
                Optic Access Circuit--10 Gb............ $5,000 initial charge plus
                 $2,500 monthly charge.
                [[Page 12754]]
                
                Optic Access Circuit--40 Gb............ $5,000 initial charge plus
                 $6,000 monthly charge.
                Optic Low Latency Circuit--1 Gb........ $1,500 initial charge plus
                 $2,750 monthly charge.
                Optic Low Latency Circuit--10 Gb....... $5,000 initial charge plus
                 $3,950 monthly charge.
                Optic Low Latency Circuit--40 Gb....... $5,000 initial charge plus
                 $8,250 monthly charge.
                ------------------------------------------------------------------------
                Non-Colocation Services
                 The Exchange proposes to amend the Fee Schedule to add several
                services available to NCL Customers as well as several notes, under the
                new heading ``D. Non-Colocation (``NCL'') Services.'' These are the
                services that IDS offers within the Mahwah Data Center that are not
                colocation services. The Exchange proposes to amend the Fee Schedule to
                add services that include ports to the IDS Network--a wide area network
                available in the Mahwah Data Center and other access centers--and ports
                to a dedicated network to access the NMS feeds for which the Securities
                Industry Automation Corporation is engaged as the securities
                information processor (the ``NMS Network'').\8\ The Fee Schedule would
                also specify the data products and data feeds to which an NCL Customer
                could connect via these ports. The Exchange also proposes to amend the
                Fee Schedule to enable NCL Customers to purchase cross connects and to
                request services subject to an ``Expedite Fee'' or ``Change Fee.''
                ---------------------------------------------------------------------------
                 \8\ See Securities Exchange Act Release Nos. 88837 (May 7,
                2020), 85 FR 28671 (May 13, 2020) (SR-NYSE-2019-46, SR-NYSEAMER-
                2019-34, SR-NYSEArca-2019-61, SR-NYSENAT-2019-19) (``NMS Network
                Approval Order'') and 88972 (May 29, 2020), 85 FR 34472 (June 4,
                2020) (``NYSE Chicago NMS Network Approval Order'').
                ---------------------------------------------------------------------------
                1. IDS Network Ports
                 The Exchange proposes to amend the Fee Schedule to add services
                that IDS offers enabling NCL Customers to connect to the IDS Network in
                the Mahwah Data Center.
                 The Exchange proposes to add the following fees and language to the
                Fee Schedule:
                 IDS Network Ports (See Note 1)
                ------------------------------------------------------------------------
                 Type of service Description Amount of charge
                ------------------------------------------------------------------------
                NCL IDS Network Access--10 10 Gb IDS Network $10,000 initial
                 Gb. port. charge plus $15,250
                 monthly charge.
                NCL IDS Network Access--40 40 Gb IDS Network $10,000 initial
                 Gb. port. charge plus $19,750
                 monthly charge.
                ------------------------------------------------------------------------
                 The Exchange also proposes to add to the Fee Schedule several notes
                regarding these services that are based on General Notes 4, 5, and 6 of
                the Exchange's Price List regarding colocation.
                 Specifically, the Exchange proposes to add the heading ``NCL
                Notes'' after the tables in the proposed section of the Fee Schedule
                titled ``D. Non-Colocation (``NCL'') Services.'' Note 1 would establish
                that when an NCL Customer purchases access to the IDS Network, the NCL
                Customer would receive (a) the ability to access the trading and
                execution systems of the Exchange and Affiliate SROs (``Exchange
                Systems'') as well as of the Global OTC System (``Global OTC''), and
                (b) connectivity to any of the listed data products (``Included Data
                Products'') that it selects. References in the proposed Fee Schedule
                would refer customers to the applicable note.
                 Proposed Note 1 would be titled ``Note 1: IDS Network'' and would
                provide:
                 When an NCL Customer purchases access to the IDS Network, it
                receives the ability to access the trading and execution systems of
                the NYSE, NYSE American, NYSE Arca, NYSE Chicago, and NYSE National
                (together, the Exchange Systems) as well as of Global OTC (the
                Global OTC System), subject, in each case, to authorization by the
                NYSE, NYSE American, NYSE Arca, NYSE Chicago, NYSE National, or
                Global OTC, as applicable. Each Exchange listed above offers access
                to its Exchange Systems to its members and Global OTC offers access
                to the Global OTC System to its subscribers, such that an NCL
                Customer does not have to purchase a service that includes access to
                the IDS Network to obtain access to Exchange Systems or the Global
                OTC System.
                 When an NCL Customer purchases access to the IDS Network, it
                receives connectivity to any of the Included Data Products that it
                selects, subject to any necessary technical provisioning
                requirements, authorization, and licensing by the provider of the
                Included Data Feed. Fees for the Included Data Products are charged
                by the provider of such Included Data Products. An NCL Customer can
                change the Included Data Products to which it receives connectivity
                at any time, subject to authorization from the provider of such
                Included Data Product. Because access to the IDS Network is not the
                exclusive method to connect to the Included Data Products, an NCL
                Customer does not have to purchase a service that includes access to
                the IDS Network to connect to such Included Data Products. The
                Included Data Products are as follows:
                NMS feeds--CTS, CQS, OPRA
                 NYSE
                 NYSE American
                 NYSE American Options
                 NYSE Arca
                 NYSE Arca Options
                 NYSE Best Quote and Trades (BQT)
                 NYSE Bonds
                 NYSE Chicago
                 NYSE National
                2. NCL Connectivity to Third Party Systems, Data Feeds, Testing and
                Certification Feeds, and DTCC
                 The Exchange also proposes to amend the Fee Schedule to provide for
                the connectivity services that IDS offers for NCL Customers to Third
                Party Systems, Third Party Data Feeds, third party testing and
                certification feeds, and DTCC. The Exchange proposes to adopt
                substantially similar services and fees as set forth in the Exchange's
                Price List regarding colocation.\9\
                ---------------------------------------------------------------------------
                 \9\ See NYSE National Colocation Notice, supra note 4 at 26322-
                24.
                ---------------------------------------------------------------------------
                 Connectivity to Third Party Systems: The Exchange proposes to
                specify in the Fee Schedule services that IDS offers NCL Customers to
                access the trading and execution services of Third Party markets and
                other content service providers (``Third Party Systems'') for a fee.
                NCL Customers connect to Third Party Systems over the IDS Network.
                 In order to obtain access to a Third Party System, an NCL Customer
                enters into an agreement with the relevant third-party content service
                provider,
                [[Page 12755]]
                pursuant to which the third-party content service provider charges the
                NCL Customer for access to the Third Party System. When such services
                are requested, IDS establishes a connection between the NCL Customer
                and the relevant third party content service provider over the IDS
                Network. IDS charges the NCL Customer for the connectivity to the Third
                Party System. An NCL Customer only receives, and is only charged by IDS
                for, connectivity to each Third Party System for which the customer
                enters into an agreement with the third-party content service provider.
                 Neither the Exchange nor IDS has an affiliation with the providers
                of the Third Party Systems. Establishing an NCL Customer's access to a
                Third Party System does not give either IDS or the Exchange any right
                to use the Third Party Systems. Connectivity to a Third Party System
                does not provide access or order entry to the Exchange's execution
                system, and an NCL Customer's connection to a Third Party System is not
                through the Exchange's execution system.
                 IDS charges a monthly recurring fee for connectivity to a Third
                Party System, which the Exchange proposes to add to its Fee Schedule.
                Specifically, when an NCL Customer requests access to a Third Party
                System, IDS identifies the applicable third-party market or other
                content service provider and the bandwidth connection it requires.
                 The Exchange proposes to add the following fees and language to the
                Fee Schedule:
                 Connectivity to Third Party Systems Over IDS Network (See Note 2)
                ------------------------------------------------------------------------
                 Description Amount of charge
                ------------------------------------------------------------------------
                1Mb.................................... $200 per connection monthly
                 charge.
                3Mb.................................... $400 per connection monthly
                 charge.
                5Mb.................................... $500 per connection monthly
                 charge.
                10Mb................................... $800 per connection monthly
                 charge.
                25Mb................................... $1,200 per connection monthly
                 charge.
                50Mb................................... $1,800 per connection monthly
                 charge.
                100Mb.................................. $2,500 per connection monthly
                 charge.
                200Mb.................................. $3,000 per connection monthly
                 charge.
                1Gb.................................... $3,500 per connection monthly
                 charge.
                ------------------------------------------------------------------------
                 The Exchange proposes to add Note 2 to the section of the Fee
                Schedule titled ``D. Non-Colocation (``NCL'') Services.'' Proposed Note
                2 would be titled ``Note 2: Third Party Systems'' and would provide:
                 When an NCL Customer purchases a connection that includes access
                to Third Party Systems, it receives access to Third Party Systems it
                selects subject to any technical provisioning requirements,
                authorization, and licensing from such Third Party System. Fees for
                the Third Party Systems are charged by the provider of such Third
                Party System. The Exchange is not the exclusive method to connect to
                Third Party Systems. The Third Party Systems are as follows:
                 Third Party Systems
                ------------------------------------------------------------------------
                
                -------------------------------------------------------------------------
                Americas Trading Group (ATG).
                BM&F Bovespa.
                Boston Options Exchange (BOX).
                Canadian Securities Exchange (CSE).
                Cboe BYX Exchange (CboeBYX), Cboe BZX Exchange (CboeBZX), Cboe EDGA
                 Exchange (CboeEDGA), and Cboe EDGX Exchange (CboeEDGX).
                Cboe Exchange (Cboe) and Cboe C2 Exchange (C2).
                Chicago Mercantile Exchange (CME Group).
                Credit Suisse.
                Euronext Optiq Cash and Derivatives Unicast (EUA).
                Euronext Optiq Cash and Derivatives Unicast (Production).
                Investors Exchange (IEX).
                ITG TriAct Matchnow.
                Long Term Stock Exchange (LTSE).
                Members Exchange (MEMX).
                MIAX Options, MIAX PEARL Options, MIAX PEARL Equities, and MIAX Emerald.
                Morgan Stanley.
                Nasdaq.
                NASDAQ Canada (CXC, CXD, CX2).
                NASDAQ ISE.
                Neo Aequitas.
                NYFIX Marketplace.
                Omega.
                OneChicago.
                OTC Markets Group.
                TD Ameritrade.
                TMX Group.
                ------------------------------------------------------------------------
                 Connectivity to Third Party Data Feeds: The Exchange proposes to
                specify in the Fee Schedule connectivity services that IDS offers NCL
                Customers to connect to data feeds from third-party markets and other
                content service providers (``Third Party Data Feeds'') for a fee. IDS
                receives Third Party Data Feeds from multiple national securities
                [[Page 12756]]
                exchanges and other content service providers at the Mahwah Data
                Center. IDS provides connectivity to that data to NCL Customers for a
                fee. NCL Customers connect to Third Party Data Feeds over the IDS
                Network.
                 In order to connect to a Third Party Data Feed, an NCL Customer
                enters into a contract with the relevant third-party market or other
                content service provider, pursuant to which the content service
                provider charges the NCL Customer for the Third Party Data Feed. IDS
                receives the Third Party Data Feed over its fiber optic network and,
                after the data provider and NCL Customer enter into an agreement and
                IDS receives authorization from the data provider, IDS retransmits the
                data to the NCL Customer over the NCL Customer's IDS Network port. IDS
                charges the NCL Customer for the connectivity to the Third Party Data
                Feed. An NCL Customer only receives, and is only charged for,
                connectivity to the Third Party Data Feeds for which it entered into
                contracts.
                 With the exception of the ICE Data Services, ICE, and Global OTC
                feeds, neither the Exchange nor IDS has any affiliation with the
                sellers of the Third Party Data Feeds. The Exchange and IDS have no
                right to use the Third Party Data Feeds other than as a redistributor
                of the data. The Third Party Data Feeds do not provide access or order
                entry to the Exchange's execution system. With the exception of the ICE
                feed, the Third Party Data Feeds do not provide access or order entry
                to the execution systems of the third party generating the feed. IDS
                receives Third Party Data Feeds via arms-length agreements and has no
                inherent advantage over any other distributor of such data.
                 IDS charges a monthly recurring fee for connectivity to each Third
                Party Data Feed. The monthly recurring fee is per Third Party Data
                Feed, with the exception that the monthly recurring fee for the ICE
                Data Services Consolidated Feeds (including the ICE Data Services
                Consolidated Feed Shared Farm feeds), Vela--SuperFeeds, and MSCI feeds
                vary by the bandwidth of the connection. Depending on its needs and
                bandwidth, an NCL Customer may opt to receive all or some of the Third
                Party Data Feeds.
                 Third Party Data Feed providers may charge redistribution fees. The
                Exchange proposes that, when IDS is charged a redistribution fee by the
                Third Party Data Feed provider, IDS would pass through the charge to
                the NCL Customer, without change to the fee. The fee would be labeled
                as a pass-through of a redistribution fee on the NCL Customer's
                invoice.
                 The Exchange proposes that it would not charge NCL Customers that
                are third-party markets or content providers for connectivity to their
                own feeds, as it understands that such parties generally receive their
                own feeds for purposes of diagnostics and testing.
                 The Exchange proposes to add the following fees and language to the
                Fee Schedule:
                Connectivity to Third Party Data Feeds Over the IDS Network (See Note 3)
                ------------------------------------------------------------------------
                 Description Monthly charge
                ------------------------------------------------------------------------
                BM&F Bovespa.......................................... $3,000
                Boston Options Exchange (BOX)......................... 1,000
                Canadian Securities Exchange (CSE).................... 1,000
                Cboe BZX Exchange (CboeBZX) and Cboe BYX Exchange 2,000
                 (CboeBYX)............................................
                Cboe EDGX Exchange (CboeEDGX) and Cboe EDGA Exchange 2,000
                 (CboeEDGA)...........................................
                Cboe Exchange (Cboe) and Cboe C2 Exchange (C2)........ 2,000
                CME Group............................................. 3,000
                Euronext Optiq Compressed Cash........................ 900
                Euronext Optiq Compressed Derivatives................. 600
                Euronext Optiq Shaped Cash............................ 1,200
                Euronext Optiq Shaped Derivatives..................... 900
                Financial Industry Regulatory Authority (FINRA)....... 500
                Global OTC............................................ 100
                ICE Data Services Consolidated Feed <=100 Mb.......... 200
                ICE Data Services Consolidated Feed >100 Mb to <=1 Gb. 500
                ICE Data Services Consolidated Feed >1 Gb............. 1,000
                ICE Data Services Consolidated Feed Shared Farm 200
                 <=100Mb..............................................
                ICE Data Services Consolidated Feed Shared Farm >100 500
                 Mb to <=1 Gb.........................................
                ICE Data Services Consolidated Feed Shared Farm >1 Gb. 1,000
                ICE Data Services--ICE TMC............................ 200
                ICE Data Services PRD................................. 200
                ICE Data Services PRD CEP............................. 400
                Intercontinental Exchange (ICE)....................... 1,500
                Investors Exchange (IEX).............................. 1,000
                ITG TriAct Matchnow................................... 1,000
                Members Exchange (MEMX)............................... 3,000
                MIAX Emerald.......................................... 3,500
                MIAX Options/MIAX PEARL Options....................... 2,000
                MIAX PEARL Equities................................... 2,500
                Montr[eacute]al Exchange (MX)......................... 1,000
                MSCI 5 Mb............................................. 500
                MSCI 25 Mb............................................ 1,200
                NASDAQ Stock Market................................... 2,000
                NASDAQ OMX Global Index Data Service.................. 100
                NASDAQ UQDF & UTDF.................................... 500
                NASDAQ Canada (CXC, CXD, CX2)......................... 1,500
                NASDAQ ISE............................................ 1,000
                Neo Aequitas.......................................... 1,200
                Omega................................................. 1,000
                OneChicago............................................ 1,000
                OTC Markets Group..................................... 1,000
                Vela--SuperFeed <500 Mb............................... 250
                [[Page 12757]]
                
                Vela--SuperFeed >500 Mb to <1.25 Gb................... 800
                Vela--SuperFeed >1.25 Gb.............................. 1,000
                TMX Group............................................. 2,500
                ------------------------------------------------------------------------
                 The Exchange proposes to add Note 3 to the section of the Fee
                Schedule titled ``D. Non-Colocation (``NCL'') Services.'' Proposed Note
                3 would be titled ``Note 3: Third Party Systems'' and would provide:
                 Pricing for data feeds from third party markets and other
                service providers (Third Party Data Feeds) is for connectivity only.
                Connectivity to Third Party Data Feeds is subject to any technical
                provisioning requirements, authorization, and licensing from the
                provider of the data feed. Connectivity to Third Party Data Feeds is
                over the IDS Network. Fees for Third Party Data Feeds are charged by
                the provider of such data feeds. Third Party Data Feed providers may
                charge redistribution fees. When IDS is charged a redistribution
                fee, IDS passes the charge through to the customer, without change
                to the fee. The fee is labeled as a pass-through of a redistribution
                fee on the customer's invoice. IDS does not charge third party
                markets or content providers for connectivity to their own feeds.
                IDS is not the exclusive method to connect to Third Party Data
                Feeds.
                 Connectivity to Third Party Data Testing and Certification Feeds:
                The Exchange proposes to specify in the Fee Schedule that NCL Customers
                may obtain connectivity to third-party testing and certification feeds.
                Certification feeds are used to certify that an NCL Customer conforms
                to any of the relevant content service provider's requirements for
                accessing Third Party Systems or receiving Third Party Data Feeds,
                while testing feeds would provide NCL Customers an environment in which
                to conduct tests with non-live data. Such feeds, which are solely used
                for certification and testing and do not carry live production data,
                are available over the IDS Network.
                 Connectivity to third party testing and certification feeds would
                be subject to any technical provisioning requirements, authorization,
                and licensing from the provider of the data feed. Fees for such feeds
                are charged by the provider of the feed. The Exchange is not the
                exclusive method to connect to third-party testing and certification
                feeds.
                 The Exchange proposes to add the following fees and language to the
                Fee Schedule:
                Connectivity to Third Party Testing and Certification Feeds--$100
                monthly recurring charge per feed
                 Connectivity to DTCC: The Exchange proposes to specify in the Fee
                Schedule services that IDS provides to connect NCL Customers to
                Depository Trust & Clearing Corporation (``DTCC'') for clearing, fund
                transfer, insurance, and settlement services.
                 In order to connect to DTCC, an NCL Customer enters into a contract
                with DTCC, pursuant to which DTCC charges the NCL Customer for the
                services provided. IDS receives the DTCC feed over its fiber optic
                network and, after DTCC and the NCL Customer entered into the services
                contract and IDS received authorization from DTCC, IDS provides
                connectivity to DTCC to the NCL Customer over the NCL Customer's IDS
                Network port. IDS charges the NCL Customer for the connectivity to
                DTCC.
                 Connectivity to DTCC does not provide access or order entry to the
                Exchange's execution system, and an NCL Customer's connection to DTCC
                is not through the Exchange's execution system.
                 Connectivity to DTCC is subject to any technical provisioning
                requirements, authorization, and licensing from DTCC. Fees for such
                feeds are charged by DTCC. IDS is not the exclusive provider to connect
                to DTCC feeds.
                 The Exchange proposes to add the following fees and language to the
                Fee Schedule:
                 Connectivity to DTCC
                ------------------------------------------------------------------------
                 Description Amount of charge
                ------------------------------------------------------------------------
                5 Mb connection to DTCC................ $500 monthly recurring charge.
                50 Mb connection to DTCC............... $2,500 monthly recurring
                 charge.
                ------------------------------------------------------------------------
                3. NCL NMS Network Ports
                 The Exchange proposes to amend the Fee Schedule to add services
                that IDS currently offers enabling NCL Customers to connect to the NMS
                Network in the Mahwah Data Center.
                 The Exchange proposes to add the following fees and language to the
                Fee Schedule:
                 NCL NMS Network Ports (See Note 4)
                ------------------------------------------------------------------------
                 Type of service Description Amount of charge
                ------------------------------------------------------------------------
                NCL NMS Network Access--10 10 Gb NCL NMS $10,000 initial
                 Gb. Network port. charge plus $11,000
                 monthly charge.
                NCL NMS Network Access--40 40 Gb NCL NMS $10,000 initial
                 Gb. Network port. charge plus $18,000
                 monthly charge.
                ------------------------------------------------------------------------
                 The Exchange also proposes to add Note 4 to the section of the Fee
                Schedule titled ``D. Non-Colocation (``NCL'') Services,'' to establish
                that, when an NCL Customer purchases an NMS Network port, it has the
                option of receiving the NMS feeds over the NMS Network.
                 Proposed Note 4 would be titled ``Note 4: NMS Network'' and would
                provide:
                [[Page 12758]]
                 When an NCL Customer purchases access to the NMS Network, upon
                its request, it will receive connectivity to any of the NMS feeds
                that it selects, subject to any necessary technical provisioning
                requirements, authorization, and licensing from the provider of such
                NMS feed. Fees for the NMS feeds are charged by the provider of such
                NMS feed. The NMS feeds are as follows:
                NMS feeds--CTS, CQS, OPRA
                4. NCL Cross Connect
                 The Exchange proposes to amend the Fee Schedule to specify fiber
                cross connect services that IDS offers NCL Customers for an initial and
                monthly charge.\10\ A cross connect is used to connect a circuit to a
                port. NCL Customers use such cross connects to connect from the IDS
                Network or NMS Network to a circuit connecting outside the Mahwah Data
                Center. The Exchange proposes that the fees for this service would be
                identical to the fees for the corresponding service in colocation.
                ---------------------------------------------------------------------------
                 \10\ Because NCL Customers do not co-locate any equipment in the
                Mahwah Data Center, they generally require fewer fiber cross
                connects than colocation Users. Accordingly, the Exchange does not
                propose amending the Fee Schedule to include bundles of 6, 12, 18,
                or 24 cross connects as are available to colocation Users.
                ---------------------------------------------------------------------------
                 The Exchange proposes to add the following fees and language to the
                Fee Schedule:
                ------------------------------------------------------------------------
                 Type of service Description Amount of charge
                ------------------------------------------------------------------------
                NCL Cross Connect........... Furnish and install $500 initial charge
                 one cross-connect. plus $600 monthly
                 charge.
                ------------------------------------------------------------------------
                5. NCL Expedite Fee
                 The Exchange proposes to amend the Fee Schedule to specify optional
                services that IDS offers NCL Customers to expedite the completion of
                services purchased or ordered by the NCL Customer, for which IDS
                charges an ``Expedite Fee.'' Similar to the ``Expedite Fee'' applicable
                to Users in colocation,\11\ if an NCL Customer wishes to obtain NCL
                Services earlier than the expected completion date, the NCL Customer
                may pay the Expedite Fee. The time saved would vary depending on the
                type(s) of service(s) ordered, but the Expedite Fee would always be a
                flat $4,000, allowing the NCL Customer to determine if the expected
                time savings warrants payment of the fee.
                ---------------------------------------------------------------------------
                 \11\ See NYSE National Colocation Notice, supra note 4, at
                26318.
                ---------------------------------------------------------------------------
                 The Exchange proposes to add the following fees and language to the
                Fee Schedule:
                ----------------------------------------------------------------------------------------------------------------
                 Type of service Description Amount of charge
                ----------------------------------------------------------------------------------------------------------------
                NCL Expedite Fee........................ Expedited installation/ $4,000 per request.
                 completion of a customer's NCL
                 service.
                ----------------------------------------------------------------------------------------------------------------
                6. NCL Change Fee
                 The Exchange proposes to amend the Fee Schedule to specify the
                ``Change Fee'' that IDS charges an NCL Customer if the NCL Customer
                requests a change to one or more existing NCL Services that IDS has
                already established or completed for the NCL Customer.
                 In this regard, the Exchange notes that several of the proposed
                services that would be added to the Fee Schedule include an initial fee
                in addition to an ongoing monthly fee. These initial fees are related
                to IDS's initial cost of establishing or installing a particular
                service for the NCL Customer. Similar to the ``Change Fee'' applicable
                to Users in colocation,\12\ IDS charges a fee of $950 per order if the
                NCL Customer requests a change to one or more existing NCL Services
                that IDS has already established or completed for the NCL Customer. For
                example, the initial installation of an IDS Network connection would
                include establishing and configuring market data services requested by
                the NCL Customer, which would be covered by the initial install fee.
                However, if the NCL Customer requests that IDS establish and configure
                additional market data services for its IDS Network connection, the NCL
                Customer would be charged a one-time Change Fee of $950 for that
                request. If an NCL Customer orders two or more services at one time
                (for example, through submitting an order form requesting multiple
                services), the NCL Customer would be charged a one-time Change Fee of
                $950, which would cover the multiple services.
                ---------------------------------------------------------------------------
                 \12\ See id.
                ---------------------------------------------------------------------------
                 The Exchange proposes to add the following fees and language to the
                Fee Schedule:
                ----------------------------------------------------------------------------------------------------------------
                 Type of service Description Amount of charge
                ----------------------------------------------------------------------------------------------------------------
                NCL Change Fee.......................... Change to an NCL service that $950 per request.
                 has already been installed/
                 completed for a customer.
                ----------------------------------------------------------------------------------------------------------------
                Fee Schedule Name
                 In addition, the Exchange proposes to change the name of the
                ``Wireless Connectivity Fee Schedule'' to ``Connectivity Fee
                Schedule.'' [sic] Because the Fee Schedule will no longer be limited to
                wireless services, the Exchange proposes to change the name of the Fee
                Schedule from ``Wireless Connectivity Fee Schedule'' [sic] to ``Mahwah
                Wireless, Circuits, and Non-Colocation Connectivity Fee Schedule.''
                Application and Impact of the Proposed Changes
                 There are currently few NCL Customers. Accordingly, the Exchange
                expects that the impact of the proposed change would be minimal.
                 The proposed change is not targeted at, or expected to be limited
                in applicability to, a specific segment of market participant. The
                Mahwah Circuits are available for purchase for any potential customer
                requiring a circuit between the Mahwah Data Center and a remote
                location. The NCL Services are available for purchase by any customer.
                The proposed changes do not apply differently to distinct types or
                sizes of customers. Rather, they apply to all customers equally.
                 Use of the services proposed in this filing are completely
                voluntary and available to all market participants on a non-
                discriminatory basis.
                [[Page 12759]]
                Competitive Environment
                 IDS operates in a highly competitive market in which exchanges,
                third party telecommunications providers, Hosting Users,\13\ and other
                third-party vendors offer connectivity services as a means to
                facilitate the trading and other market activities of market
                participants. 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\
                ---------------------------------------------------------------------------
                 \13\ ``Hosting'' is a service offered by a User to another
                entity In the User's space within the Mahwah Data Center. The
                Exchange allows Users to act as Hosting Users for a monthly fee. See
                NYSE National Colocation Notice, supra note 4, at 26318.
                 \14\ See Securities Exchange Act Release No. 51808 (June 9,
                2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
                Release'').
                ---------------------------------------------------------------------------
                 The proposed changes are not otherwise intended to address any
                other issues relating to services related to the Mahwah Data Center
                and/or related fees, and the Exchange is not aware of any problems that
                market participants 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.
                ---------------------------------------------------------------------------
                 \15\ 15 U.S.C. 78f(b).
                 \16\ 15 U.S.C. 78f(b)(5).
                 \17\ 15 U.S.C. 78f(b)(4).
                ---------------------------------------------------------------------------
                The Proposed Change Is Reasonable
                 The Exchange believes that the proposed rule change is reasonable
                and would perfect the mechanisms of a free and open market and a
                national market system and, in general, protect investors and the
                public interest, for the following reasons.
                 General: Only the market participants that voluntarily select to
                receive the IDS services described herein are charged for them, and
                those services are available to all market participants. Furthermore,
                the IDS services described in this filing are available to all market
                participants on an equal basis (i.e., the same products and services
                are available to all market participants). All market participants that
                voluntarily select a specific proposed IDS service would be charged the
                same amount for that service as all other market participants
                purchasing that service.
                 In addition, the Exchange believes that the proposed rule change is
                reasonable because the IDS services described herein are offered as a
                convenience to market participants, but offering them requires the
                provision, maintenance, and operation of the Mahwah Data Center,
                including the installation, monitoring, support, and maintenance of the
                services.
                 Mahwah Circuits: The Exchange believes the fees proposed herein for
                IDS's Mahwah Circuits are reasonable. The market for circuits into and
                out of the Mahwah Data Center is competitive, and the proposed IDS
                offerings are merely one of several options from which market
                participants can choose. Each of the third-party telecommunications
                providers that has a presence in the Mahwah Data Center's ``Meet Me
                Rooms'' offers similar circuits to market participants, in competition
                with the IDS offerings proposed here. Each market participant
                considering whether to purchase a circuit directly can weigh that
                option against similar circuits offered by those third-party carriers,
                and can choose which circuit to purchase based on which combination of
                latency, bandwidth, price, and other factors best meets its business
                needs. Indeed, the Exchange understands that most of the third-party
                telecommunications providers that provide circuits do so at fees lower
                than those proposed herein, and that most NCL Customers and colocation
                Users use such third party telecommunication circuits into and out of
                the Mahwah Data Center.
                 IDS Network Ports: The Exchange believes that the IDS Network ports
                proposed herein are reasonable. The market for connecting with the
                Exchange's trading and execution systems is competitive, and the
                proposed IDS Network ports that IDS provides are merely one of several
                options that market participants may choose. As alternatives to the IDS
                Network ports, a market participant would be able to access or connect
                to Exchange Systems, Third Party Systems, Included Data Products, Third
                Party Data Feeds, third party testing and certification feeds, and DTCC
                through (a) a connection to an IDS access center outside of the Mahwah
                Data Center, (b) a third-party access center, (c) a third-party vendor,
                (d) a Hosting User, or (e) colocation.
                 Market participants consider various factors in determining which
                connectivity options to choose, including latency; bandwidth size;
                amount of network uptime; the equipment that the network uses; the cost
                of the connection; and the applicable contractual provisions. IDS's
                offering of connectivity services via IDS Network ports gives market
                participants another service to evaluate and consider, thereby
                broadening their options for connectivity to the Exchange Systems and
                allowing them to tailor their connectivity options to their specific
                needs.
                 The Exchange further believes that the proposed fees for IDS
                Network ports for NCL Customers are reasonable because such prices are
                constrained by competition with the numerous other providers that offer
                connectivity to the Exchange Systems. If IDS were to attempt to offer
                such ports at a supra-competitive price, potential customers would
                likely respond by seeking out less expensive substitutes from other
                providers.
                 NCL NMS Network Ports: The Exchange believes that the proposed fees
                for NMS Network ports for NCL Customers are reasonable to recoup the
                costs of building the NMS Network. Until 2019, SIAC was required to
                provide connectivity to the NMS feeds only via the IP network. Although
                the operating committees for the CTA/CQ Plans authorized SIAC to offer
                connectivity to the NMS feeds in the Mahwah Data Center via an
                alternate, dedicated, low-latency NMS Network, the operating committee
                did not assume the costs of creating such a network; instead, the
                Exchange and the Affiliate SROs funded the capital and operational
                expenses to build and operate the NMS Network. The implementation costs
                of approximately $3.8 million are
                [[Page 12760]]
                applicable only to the NMS Network, which is used for the sole purpose
                of providing access to the NMS feeds. None of the implementation costs
                are applicable to any other Exchange services. As of the date of this
                filing, only one customer has contracted with IDS for an NCL NMS
                Network port, and the Exchange expects that demand for NMS Network
                ports outside of colocation will be very low. The service is
                nevertheless available, and so the Exchange proposes to add it to the
                Fee Schedule.
                 NCL Notes: With respect to proposed NCL Notes 1, 2, 3, and 4, the
                Exchange believes they are reasonable because they provide detailed
                descriptions of the access and connectivity that NCL Customers receive
                when they purchase IDS Network or NMS Network ports. Such detailed
                descriptions 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 they provide market
                participants with transparency and clarity as to what connectivity is
                included in the purchase of IDS Network or NMS Network ports by NCL
                Customers.\18\ The notes would also make clear that all NCL Customers
                that voluntarily select to access the IDS Network or NMS Network
                receive the same access and connectivity, and are not subject to a
                charge above and beyond the fee paid for the relevant IDS Network or
                NMS Network ports. The notes further make clear that NCL Customers are
                not required to use any of their bandwidth to access Exchange systems
                or connect to an Included Data Product unless they wish to do so;
                rather, an NCL Customer only receives the access and connectivity that
                it selects, and can change what access or connectivity it receives at
                any time, subject to authorization from the data provider or the
                relevant Exchange or Affiliate SRO.\19\ Notes 1, 2, 3, and 4 are all
                based on similar provisions in the Exchange's Price List for
                colocation.
                ---------------------------------------------------------------------------
                 \18\ See Securities Exchange Act Release Nos. 79730 (January 4,
                2017), 82 FR 3045 (January 10, 2017) (SR-NYSE-2016-92); 79728
                (January 4, 2017), 82 FR 3035 (January 10, 2017) (SR-NYSEMKT-2016-
                126); 79729 (January 4, 2017), 82 FR 3061 (January 10, 2017) (SR-
                NYSEArca-2016-172).
                 \19\ The General Note on page 1 of the Fee Schedule would also
                apply to all of the services proposed herein. A market participant
                that incurs fees for NCL connectivity or other NCL Services from the
                Exchange or one of the Affiliate SROs would not be subject to fees
                for the same service charged by the other Affiliate SROs.
                ---------------------------------------------------------------------------
                 Other NCL Services: The Exchange believes it is reasonable to
                specify in the Fee Schedule NCL Services that IDS offers including NCL
                cross connects, the NCL Expedite Fee, the NCL Change Fee, and NCL
                connectivity to Third Party Systems, Third Party Data Feeds, third-
                party testing and certification feeds, and DTCC.
                 The Exchange believes that the specific fees it has proposed for
                NCL cross connects, the NCL Expedite Fee, and the NCL Change Fee are
                reasonable. As noted above, IDS faces competition in the market for
                connectivity from Hosting Users, IDS access centers outside of the
                Mahwah Data Center, third-party access centers, and third-party
                vendors. Market participants can consider IDS's proposed fees for the
                specific services listed above in the context of this competition, and
                choose the connectivity provider that offers the services the market
                participant needs at the optimal cost. As such, the proposed fees for
                these IDS services are constrained by competition.
                 The Exchange believes that charging distinct fees for different NCL
                Services is reasonable because not all market participants need or wish
                to utilize the same NCL Services. The proposed choice of services
                allows market participants to select which NCL Services to use, based
                on their business needs, and market participants are only charged for
                the services that they select. By charging only those market
                participants that utilize an NCL Service the related fee, those market
                participants that directly benefit from a service support its cost.
                 In addition, the Exchange believes that the proposed fees are
                reasonable because they allow the costs associated with offering
                different NCL Services to be defrayed or covered while providing market
                participants the benefit of such services. The Exchange believes that
                the proposed charges are reasonable because IDS offers NCL Services as
                conveniences to market participants, but in order to do so must
                provide, maintain, and operate the Mahwah Data Center facility hardware
                and technology infrastructure. IDS needs to provide network
                infrastructure that keeps pace with the number of services available to
                NCL Customers, including any increasing demand for bandwidth, and
                handle the installation, administration, monitoring, support, and
                maintenance of such services, including by responding to any production
                issues. In addition, in order to provide connectivity to Third Party
                Data Feeds, Third Party Systems, third party testing and certification
                feeds, and DTCC, IDS must establish and maintain multiple connections
                to each Third Party Data Feed, Third Party System, and DTCC, allowing
                IDS to provide resilient and redundant connections, adapt to any
                changes made by the relevant third party, and cover any applicable fees
                (other than redistribution fees) charged by the relevant third party,
                such as port fees.
                 The Exchange believes it is reasonable for redistribution fees
                charged by providers of Third Party Data Feeds to be passed through to
                NCL Customers, without change to the fee. If not passed through, the
                cost of the redistribution fees would be factored into the proposed
                fees for connectivity to Third Party Data Feeds. The Exchange believes
                that passing through the fees makes them more transparent to the NCL
                Customer, allowing the NCL Customer to better assess the cost of the
                connectivity to a Third Party Data Feed by seeing the individual
                components of the cost, i.e., IDS's fee and redistribution fee.
                 The Exchange believes that it is reasonable to not charge third-
                party markets or content providers for connectivity to their own Third
                Party Data Feeds, as the Exchange understands that such parties
                generally receive their own feeds for purposes of diagnostics and
                testing. The Exchange believes that facilitating such diagnostics and
                testing removes impediments to, and perfects the mechanisms of, a free
                and open market and a national market system and, in general, protects
                investors and the public interest.
                 Finally, the Exchange believes it is reasonable to make available
                third party testing and certification feeds to enable customers to test
                and certify their connections to third party data feeds.
                The Proposed Change Is Equitable
                 The Exchange believes that its proposal equitably allocates its
                fees among market participants.
                 The Exchange believes that the proposed change is equitable because
                it would not apply differently to distinct types or sizes of market
                participants. Rather, it would apply to all NCL Customers equally.
                 In addition, the Exchange believes that the proposal is equitable
                because only the market participants that voluntarily select to receive
                the services described herein would be charged for them. The services
                described in this filing are available to all market participants on an
                equal basis (i.e., the same products and services are available to all
                market participants), and all market participants that voluntarily
                select a specific proposed service are charged the same amount for that
                service as all other market participants purchasing that service.
                [[Page 12761]]
                 IDS faces competition from numerous other providers that offer
                market participants choices for connectivity to the Mahwah Data Center,
                Exchange Systems, Third Party Systems, Included Data Products, Third
                Party Data Feeds, third party testing and certification feeds, and
                DTCC. Without this proposed rule change, market participants seeking
                such connectivity would have fewer options. With this proposal, market
                participants would have more choices with respect to the form and price
                of the services they use, allowing market participants to select the
                services and connectivity options that better suit their needs, thereby
                helping them tailor their connectivity operations to the requirements
                of their businesses.
                 The Exchange believes that the proposed NCL Notes 1 and 4 are
                equitable because they specify that NCL Customers that voluntarily
                select to access the IDS Network or NMS Network would not be subject to
                charges above and beyond the fee paid for the relevant IDS Network or
                NMS Network port. Further, Notes 1, 2, 3, and 4 specify that NCL
                Customers will not be charged for any access or connectivity that they
                had not selected.
                The Proposed Change Is Not Unfairly Discriminatory
                 The Exchange believes its proposal is not unfairly discriminatory.
                The proposed change does not apply differently to distinct types or
                sizes of market participants. Rather, it applies to all market
                participants equally. The purchase of any proposed service is
                completely voluntarily and the Fee Schedule will be applied uniformly
                to all market participants.
                 IDS faces competition from numerous other providers that offer
                market participants choices for connectivity to the Mahwah Data Center,
                Exchange Systems, Third Party Systems, Included Data Products, Third
                Party Data Feeds, third party testing and certification feeds, and
                DTCC. Without this proposed rule change, market participants seeking
                such connectivity would have fewer options. With this proposal, market
                participants would have more choices with respect to the form and price
                of the services they use, allowing market participants to select the
                services and connectivity options that better suit their needs, thereby
                helping them tailor their connectivity operations to the requirements
                of their businesses.
                 The Exchange believes that the proposed NCL Notes 1 and 4 are not
                be unfairly discriminatory because they specify that NCL Customers that
                voluntarily select to access the IDS Network or NMS Network are not be
                subject to charges above and beyond the fee paid for the relevant IDS
                Network or NMS Network port. Further, Notes 1, 2, 3, and 4 specify that
                NCL Customers will not be charged for any access or connectivity that
                they had not selected.\20\
                ---------------------------------------------------------------------------
                 \20\ In addition, the General Note on page 1 of the Fee Schedule
                would apply to all of the services proposed herein. See supra note
                19.
                ---------------------------------------------------------------------------
                 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 proposed change does not affect competition among national
                securities exchanges or among members of the Exchange, but rather
                between IDS and its commercial competitors.
                 As noted above, the Exchange is making the current proposal solely
                as a result of the Commission's recent interpretation of the
                definitions of ``exchange'' and ``facility'' in the Wireless Approval
                Order, which the Exchange is presently challenging on appeal to the
                Court of Appeals for the District of Columbia Circuit.\21\ The Exchange
                has nevertheless proposed this rule change in order to preserve the
                ability of IDS to offer the services at issue herein. If IDS were
                compelled to stop offering such services, consumers would have fewer
                service providers to choose from for their connectivity needs, which
                would be a detriment to competition overall.
                ---------------------------------------------------------------------------
                 \21\ Intercontinental Exchange, Inc. v. SEC, No. 20-1470 (D.C.
                Cir. 2020).
                ---------------------------------------------------------------------------
                 Notwithstanding the foregoing, the Exchange notes that there are
                numerous other third parties that provide circuits and connectivity at
                the Mahwah Data Center, and that IDS competes with those third parties
                for the provision of such services to customers. None of these third
                parties have been compelled to file their services or fees with the
                Commission, and requiring IDS to do so puts IDS at a competitive
                disadvantage vis-[agrave]-vis its competitors. Requiring the Exchange
                to file IDS services and fees herein is therefore a burden on
                competition.
                 The Exchange believes competition would be best served by allowing
                IDS to freely compete with the other providers of connectivity
                services, without the additional burden on IDS alone to file any
                proposed changes to services and fees with the Commission.
                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
                 Within 45 days of the date of publication of this notice in the
                Federal Register, or such longer period up to 90 days (i) as the
                Commission may designate if it finds such longer period to be
                appropriate and publishes its reasons for so finding or (ii) as to
                which the self-regulatory organization consents, the Commission will:
                 (A) By order approve or disapprove the proposed rule change, or
                 (B) institute proceedings to determine whether the proposed rule
                change should be 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-2021-04 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-2021-04. 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
                [[Page 12762]]
                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-2021-04, and should
                be submitted on or before March 25, 2021.
                 For the Commission, by the Division of Trading and Markets,
                pursuant to delegated authority.\22\
                ---------------------------------------------------------------------------
                 \22\ 17 CFR 200.30-3(a)(12).
                ---------------------------------------------------------------------------
                J. Matthew DeLesDernier,
                Assistant Secretary.
                [FR Doc. 2021-04422 Filed 3-3-21; 8:45 am]
                BILLING CODE 8011-01-P
                

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex