12752 Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices 

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. 

21 Intercontinental Exchange, Inc. v. SEC, No. 20– 

1470 (DC Cir. 2020). 

22 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

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

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. 

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-a`-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 rule-comments@

sec.gov. Please include File Number SR– 

NYSEAMER–2021–10 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–NYSEAMER–2021–10. 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–NYSEAMER–2021–10, 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

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–04425 Filed 3–3–21; 8:45 am] 

BILLING CODE 8011–01–P 

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 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices 12753 

4For 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’’). 

5Each 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. 6See 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). 

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. 

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

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.’’ 

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 lowerlatency 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. 


jbell on DSKJLSW7X2PROD with NOTICES
12754 Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices 

8See 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’’). 

9See NYSE National Colocation Notice, supra 

note 4 at 26322–24. 

Type of service Amount of charge 

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.’’ 

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 Gb ..................... 10 Gb IDS Network port .................................. $10,000 initial charge plus $15,250 monthly 

charge. 

NCL IDS Network Access—40 Gb ..................... 40 Gb IDS Network port .................................. $10,000 initial 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

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, 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices 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 


jbell on DSKJLSW7X2PROD with NOTICES
12756 Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices 

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 passthrough 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 (CboeBYX) ...................................................................................... 2,000 

Cboe EDGX Exchange (CboeEDGX) and Cboe EDGA Exchange (CboeEDGA) ......................................................................... 2,000 

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 ≤100Mb ....................................................................................................... 200 

ICE Data Services Consolidated Feed Shared Farm >100 Mb to ≤1 Gb ...................................................................................... 500 

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 

Montre ́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 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices 12757 

CONNECTIVITY TO THIRD PARTY DATA FEEDS OVER THE IDS NETWORK (SEE NOTE 3)—Continued 

Description Monthly charge 

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 Gb ................... 10 Gb NCL NMS Network port ........................ $10,000 initial charge plus $11,000 monthly 

charge. 

NCL NMS Network Access—40 Gb ................... 40 Gb NCL NMS Network port ........................ $10,000 initial 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: 


jbell on DSKJLSW7X2PROD with NOTICES
12758 Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices 

10Because 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. 

11See NYSE National Colocation Notice, supra 

note 4, at 26318. 

12See id. 

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. 

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 one cross-connect ............................ $500 initial charge 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. 

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/completion of a customer’s NCL service ........................... $4,000 per request. 

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 onetime Change Fee of $950, which would 

cover the multiple services. 

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 has already been installed/completed for a customer.$950 per request. 

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 NonColocation 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. 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices 12759 

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. 

14See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(‘‘Regulation NMS Adopting Release’’). 

15 15 U.S.C. 78f(b). 

16 15 U.S.C. 78f(b)(5). 

17 15 U.S.C. 78f(b)(4). 

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

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. 

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 thirdparty 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 supracompetitive 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 


jbell on DSKJLSW7X2PROD with NOTICES
12760 Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices 

18See 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). 

19The 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. 

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. 

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, thirdparty 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 thirdparty 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. 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices 12761 

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. 

21 Intercontinental Exchange, Inc. v. SEC, No. 20– 

1470 (D.C. Cir. 2020). 

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

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. 

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-a`-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 rule-comments@

sec.gov. 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 


jbell on DSKJLSW7X2PROD with NOTICES
12762 Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices 

22 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Options 3, Section 11(a). 4See Options 3, Section 11(b). 5See Options 3, Section 11(d). 6See Options 3, Section 13. 7See Supplementary Material .03 to Options 3, 

Section 14. 8See Options 3, Section 15(a)(3)(A). 

9See Supplementary Material .02 to Options 5, 

Section 2. 

10See Securities Exchange Act Release No. 86947 

(September 12, 2019), 84 FR 49165 (September 18, 

2019) (SR–ISE–2019–21). 

11Specifically in Options 3, Section 11, the 

Exchange will amend current subsections (a)(2)(B), 

(b)(3)(A)–(C) (renumbered to (b)(4)(A)–(C) under 

this proposal), (c)(7)(A)–(C), (d)(2)(C) (renumbered 

to (d)(3)(C) under this proposal), and (e)(4)(D). In 

Options 3, Section 13, the Exchange will amend 

current subsections (d)(1)–(3) and (e)(5)(i)–(iii). 

12Specifically in Options 3, Section 11, 

subsections (b)(3)(A)–(C) (renumbered to (b)(4)(A)– 

(C)), and (d)(2)(A) and (C) (renumbered to (d)(3)(A) 

and (C)) will be updated. 

13A ‘‘Response’’ is an electronic message that is 

sent by Members in response to a broadcast 

message. See Options 3, Section 11. 

14See Options 3, Section 11(c)(7) and (e)(4). 

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

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–04422 Filed 3–3–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–91223; File No. SR–ISE– 

2021–01] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Various Rules 

in Options 3 and Options 5 

February 26, 2021. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

18, 2021, Nasdaq ISE, LLC (‘‘ISE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III, 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

various rules in Options 3 and Options 

5. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/ise/rules, 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 

Exchange 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 these 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend various rules in 

Options 3 and Options 5. The proposed 

changes consist of conforming existing 

rules to current System technology, 

amending rule text to add greater detail 

on how certain Exchange functionality 

operate today, and conforming language 

within the Exchange’s rules to the rules 

of other exchanges. As such, no System 

changes to existing functionality are 

being made pursuant to this proposal. 

Rather, this proposal is designed to 

reduce any potential investor confusion 

as to the features and applicability of 

certain functionality presently available 

on the Exchange. These changes are 

described in detail below, and include 

amending Exchange rules governing: (1) 

The Block Order Mechanism (‘‘Block’’),3

(2) the Facilitation Mechanism 

(‘‘Facilitation’’),4 (3) the Solicited Order 

Mechanism (‘‘Solicitation’’),5 (4) the 

Price Improvement Mechanism 

(‘‘PIM’’),6 (5) Trade Value Allowance 

(‘‘TVA’’),7 (6) Anti-Internalization,8 and 

(7) the exposure mechanism 

(‘‘Exposure’’).9

Universal Changes 

In September 2019, the Exchange 

amended its regular allocation rule in 

Options 7, Section 10 (Priority of Quotes 

and Orders) to make non-substantive 

changes, among other changes, to 

replace references to Professional 

interest with non-Priority Customer 

interest.10 The Exchange now proposes 

to make similar changes to replace all 

instances of ‘‘Professional’’ interest with 

‘‘non-Priority Customer’’ interest 

throughout its auction allocation rules 

in Options 3, Section 11 and Section 13 

to align with the changes made in SR– 

ISE–2019–21.11 While the term 

‘‘Professional Orders’’ is defined within 

Options 1, Section 1(a)(39) as an order 

that is for the account of a person or 

entity that is not a Priority Customer, 

the Exchange believes that using the 

term ‘‘non-Priority Customer’’ is more 

clear in describing the types of market 

participant to which the allocation 

applies, and also reduces confusion 

regarding any reference to Professional 

Orders or Professional Customer orders. 

In addition, the Exchange proposes to 

make universal changes in its 

Facilitation and Solicitation rules 12 to 

clearly delineate between orders and 

Responses 13 of the same capacity. For 

example, where the existing rule text 

currently states ‘‘Priority Customer bids 

(offers),’’ the Exchange proposes instead 

to state ‘‘Priority Customer Orders and 

Priority Customer Responses to buy 

(sell).’’ The Exchange notes that this is 

merely a non-substantive change as 

auction orders and Responses of the 

same capacity do not get treated 

differently for allocation purposes 

today. The rules for complex 

Facilitation and Solicitation already 

distinguish between orders and 

Responses, so the Exchange is simply 

amending those complex rules to clearly 

state how, for example, Priority 

Customer Complex Orders and Priority 

Customer Responses get allocated 

today 14 With the proposed changes, the 

Exchange seeks to include a similar 

level of detail within its simple and 

complex Facilitation and Solicitation 

rules in order to bring transparency 


jbell on DSKJLSW7X2PROD with NOTICES