72172 Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Notices 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 81907 

(October 19, 2017), 82 FR 49447 (October 25, 2017) 

(SR–MRX–2017–21). 

4NYSE provides a similar service for a $3,000 

initial charge plus a $400 monthly charge. See 

https://www.nyse.com/publicdocs/Wireless_

Connectivity_Fees_and_Charges.pdf. 

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 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–GEMX–2023–12 and should be 

submitted on or before November 9, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–23041 Filed 10–18–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98747; File No. SR–MRX– 

2023–19] 

Self-Regulatory Organizations; Nasdaq 

MRX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Its GPS 

Antenna Fees at General 8, Section 1 

October 13, 2023. 

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 

September 29, 2023, Nasdaq MRX, LLC 

(‘‘MRX’’ 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 the 

Exchange’s GPS antenna fees at General 

8, Section 1, as described further below. 

While these amendments are effective 

upon filing, the Exchange has 

designated the proposed amendments to 

be operative on October 1, 2023. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/mrx/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 Exchange offers a GPS antenna, 

which allows customers to synchronize 

their time recording systems to the U.S. 

Government’s Global Positioning 

System (‘‘GPS’’) network time (the 

‘‘Service’’). The Exchange proposes to 

modify its monthly fees for the Service 

at General 8, Section 1(d). 

GPS network time is the atomic time 

scale implemented by the atomic clocks 

in the GPS ground control stations and 

GPS satellites. Each GPS satellite 

contains multiple atomic clocks that 

contribute precise time data to the GPS 

signals. GPS receivers decode these 

signals, synchronizing the receivers to 

the atomic clocks. A GPS antenna serves 

as a time signal receiver and feeds a 

primary clock device the GPS network 

time using precise time data. Firms can 

use the precise time data provided by 

the GPS antenna to time-stamp 

transactional information. 

Time synchronization services are 

well established in the U.S. and utilized 

in many areas of the U.S. economy and 

infrastructure. The Service is not novel 

to the securities markets, or to the 

Exchange. 

The Exchange offers connectivity to a 

GPS antenna via two options, over 

shared infrastructure or a dedicated 

antenna. If a firm wishes to connect via 

a dedicated connection, it must supply 

the antenna hardware. 

The Exchange currently charges a 

monthly fee of $200 for the Service. The 

Exchange proposes to increase the 

monthly fee to $600 for the Service. As 

such, the Exchange proposes to amend 

its fee schedule at General 8, Section 

1(d) to reflect the increased monthly fee 

for the GPS antenna. The Exchange has 

not raised such price since the monthly 

fee of $200 was adopted.3 In addition, 

the Exchange charges a higher monthly 

fee of $350 for cross-connections to 

approved telecommunication carriers in 

the datacenter and for inter-cabinet 

connections to other customers in the 

datacenter, despite the fact that the 

Service not only provides connectivity 

(like the cross-connections), but also 

provides data (i.e., the network time) to 

customers. 

In addition, the Exchange’s fee 

schedule at General 8, Section 1(d) 

currently states that the installation fee 

for the GPS antenna is installation 

specific. The Exchange proposes to add 

specific installation amounts for the 

Service within the fee schedule, 

providing greater transparency to 

market participants. Specifically, the 

Exchange proposes to charge an 

installation fee of $900 for connectivity 

to a GPS antenna over shared 

infrastructure and $1,500 for 

connectivity to a GPS antenna over a 

dedicated antenna.4 The difference in 

installation costs reflects the differing 

levels of complexity. For the dedicated 

antenna option, installation involves 

installing an antenna on the roof 

whereas the shared option involves 

extending a cable from a device located 

inside the data center. 

The Service is an optional product 

available to any firm that chooses to 

subscribe. Firms may cancel their 

subscription at any time. The Service 

simply provides time synchronization 

that may be utilized by firms to adjust 

their own time systems and time-stamp 

transactional information. The GPS 

antenna is offered on a completely 

voluntary basis. No customer is required 

to purchase the GPS antenna. Potential 

subscribers may subscribe to the Service 

only if they voluntarily choose to do so. 

It is a business decision of each firm 

whether to subscribe to the Service or 

not. Furthermore, firms have an array of 

options for time synchronization. Firms 

may purchase the Service (or enhanced 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Notices 72173 

5For example, Pico, Guava Tech, and SFTI 

provide GPS time synchronization services. 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(4) and (5). 

8See NetCoalition, 615 F.3d at 539 (D.C. Cir. 

2010) (quoting Securities Exchange Act Release No. 

59039 (December 2, 2008), 73 FR 74770, 74782–83 

(December 9, 2008) (SR–NYSEArca–2006–21)). 

9See Securities Exchange Act Release No. 51808 

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

(‘‘Regulation NMS Adopting Release’’). 

10See NetCoalition, 615 F.3d at 534–35; see also 

H.R. Rep. No. 94–229 at 92 (1975) (‘‘[I]t is the intent 

of the conferees that the national market system 

evolve through the interplay of competitive forces 

as unnecessary regulatory restrictions are 

removed.’’). 

11See Securities Exchange Act Release No. 59039 

(December 2, 2008), 73 FR 74770 (December 9, 

2008) (SR–NYSEArca–2006–21). 

12 Id. 

13See U.S. Securities and Exchange Commission, 

‘‘Staff Guidance on SRO Rule filings Relating to 

Fees’’ (May 21, 2019), available at https://

www.sec.gov/tm/staff-guidance-sro-rule-filings-fees. 

14Approximately 59% of the Exchange’s colocation customers subscribe to the Service, most of 

which opt for the shared option. 

15Of the Exchange’s customers that subscribe to 

the Service, approximately 9% of such customers 

purchase both the dedicated and the shared options 

of the Service. 

16 In offering the Service as a convenience to 

firms, the Exchange incurs certain costs, including 

costs related to the data center facility, hardware 

and equipment, and personnel. 

time synchronization services) from 

other vendors.5

If the Exchange is incorrect in its 

determination that the proposed fees 

reflect the value of the GPS antenna, 

customers will not purchase the product 

or will seek other options at their 

disposal. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with section 6(b) 

of the Act,6 in general, and furthers the 

objectives of sections 6(b)(4) and 6(b)(5) 

of the Act,7 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The proposed change to the pricing 

schedule is reasonable in several 

respects. As a threshold matter, the 

Exchange is subject to significant 

competitive forces in the market for 

order flow, which constrains its pricing 

determinations. The fact that the market 

for order flow is competitive has long 

been recognized by the courts. In 

NetCoalition v. Securities and Exchange 

Commission, the D.C. Circuit stated, 

‘‘[n]o one disputes that competition for 

order flow is ‘fierce.’ . . . As the SEC 

explained, ‘[i]n the U.S. national market 

system, buyers and sellers of securities, 

and the broker-dealers that act as their 

order-routing agents, have a wide range 

of choices of where to route orders for 

execution’; [and] ‘no exchange can 

afford to take its market share 

percentages for granted’ because ‘no 

exchange possesses a monopoly, 

regulatory or otherwise, in the execution 

of order flow from broker 

dealers’. . . .’’ 8

The Commission and the courts have 

repeatedly expressed their preference 

for competition over regulatory 

intervention to determine prices, 

products, and services in the securities 

markets. In Regulation NMS, while 

adopting a series of steps to improve the 

current market model, 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.’’ 9

Congress directed the Commission to 

‘‘rely on ‘competition, whenever 

possible, in meeting its regulatory 

responsibilities for overseeing the SROs 

and the national market system.’ ’’ 10 As 

a result, the Commission has 

historically relied on competitive forces 

to determine whether a fee proposal is 

equitable, fair, reasonable, and not 

unreasonably or unfairly discriminatory. 

‘‘If competitive forces are operative, the 

self-interest of the exchanges themselves 

will work powerfully to constrain 

unreasonable or unfair behavior.’’ 11

Accordingly, ‘‘the existence of 

significant competition provides a 

substantial basis for finding that the 

terms of an exchange’s fee proposal are 

equitable, fair, reasonable, and not 

unreasonably or unfairly 

discriminatory.’’ 12 In its 2019 guidance 

on fee proposals, Commission staff 

indicated that they would look at factors 

beyond the competitive environment, 

such as cost, only if a ‘‘proposal lacks 

persuasive evidence that the proposed 

fee is constrained by significant 

competitive forces.’’ 13

The proposed fees are reasonable and 

unlikely to burden the market because 

the purchase of the Service is optional 

for all categories of customers. No firms 

are required to purchase the Service. 

Though many firms use GPS network 

time to synchronize their internal 

primary clock devices, firms can 

purchase time sync services from thirdparty vendors.14 Firms are also free to 

utilize other services that may assist 

them in enhanced time synchronization 

of their systems. Firms may choose to 

purchase multiple time synchronization 

services for resiliency or otherwise.15 In 

addition to cost, a firm’s decision 

regarding which, if any, time 

synchronization option to purchase may 

depend, among other factors, on the 

design of the firm’s systems and 

whether they use such time information 

to trigger trading decisions. The 

Exchange offers the Service as a 

convenience to firms to provide them 

with the ability to synchronize their 

own primary clock devices to the GPS 

network time and time-stamp 

transactional information.16 Firms that 

choose to subscribe to the Service may 

discontinue the use of the Service at any 

time if they determine that the time 

synchronization services provided via 

the GPS antenna are no longer useful. In 

sum, customers can discontinue the use 

of the Service at any time, decide not to 

subscribe, or use a third-party vendor 

for time synchronization services, for 

any reason, including the fees. 

The optional Service is available to all 

customers that choose to subscribe. The 

proposed fees would apply to all 

customers on a non-discriminatory 

basis, and therefore are not designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange also believes that the 

proposed changes to include specific 

installation fees promote just and 

equitable principles of trade and remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system because 

the proposed rule changes will provide 

greater clarity to Members and the 

public regarding the Exchange’s fees. It 

is in the public interest for rules to be 

accurate and transparent so as to 

eliminate the potential for confusion. 

If the Exchange is incorrect in its 

determination that the proposed fees 

reflect the value of the GPS antenna, 

customers will not purchase the product 

or will seek other options at their 

disposal. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

In terms of inter-market competition 

(the competition among self-regulatory 

organizations), the Exchange notes that 

it operates in a highly competitive 

market in which market participants can 

readily favor competing venues if they 

deem fee levels at a particular venue to 

be excessive. In such an environment, 

the Exchange must continually adjust its 

fees to remain competitive with other 


lotter on DSK11XQN23PROD with NOTICES1
72174 Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Notices 

17 15 U.S.C. 78s(b)(3)(A)(ii). 18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

exchanges and with alternative trading 

systems that have been exempted from 

compliance with the statutory standards 

applicable to exchanges. Because 

competitors are free to modify their own 

fees in response, the Exchange believes 

that the degree to which fee changes in 

this market may impose any burden on 

competition is extremely limited. 

Approval of the proposal does not 

impose any burden on the ability of 

other exchanges to compete. As noted 

above, time synchronization services are 

offered by other vendors and any 

exchange has the ability to offer such 

services if it so chooses. 

Nothing in the proposal burdens 

intra-market competition (the 

competition among consumers of 

exchange data) because the GPS antenna 

is available to any customer under the 

same fees as any other customer, and 

any market participant that wishes to 

purchase a GPS antenna can do so on 

a non-discriminatory basis. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to section 

19(b)(3)(A)(ii) of the Act.17 At any time 

within 60 days of the filing of the 

proposed rule change, the Commission 

summarily may temporarily suspend 

such rule change if it appears to the 

Commission that such action is: (i) 

necessary or appropriate in the public 

interest; (ii) for the protection of 

investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

MRX–2023–19 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–MRX–2023–19. 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 (https://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 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–MRX–2023–19 and should be 

submitted on or before November 9, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–23035 Filed 10–18–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98751; File No. SR– 

EMERALD–2023–27] 

Self-Regulatory Organizations; MIAX 

Emerald, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fee 

Schedule To Modify Certain 

Connectivity and Port Fees 

October 13, 2023. 

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 October 

2, 2023, MIAX Emerald, LLC (‘‘MIAX 

Emerald’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) a 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 is filing a proposal to 

amend the MIAX Emerald Options 

Exchange Fee Schedule (‘‘Fee 

Schedule’’) to amend certain 

connectivity and port fees. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://www.miaxoptions.com/rulefilings, at MIAX Emerald’s principal 

office, 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. 


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