26314 Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 80018 

(February 10, 2017), 82 FR 10947 (February 16, 

2017) (SR–NSX–2017–04) (‘‘Termination Filing’’). 

On January 31, 2017, Intercontinental Exchange, 

Inc. (‘‘ICE’’), through its wholly-owned subsidiary 

NYSE Group, acquired all of the outstanding capital 

stock of the Exchange (the ‘‘Acquisition’’). See 

Securities Exchange Act Release No. 79902 (January 

30, 2017), 82 FR 9258 (February 3, 2017) (SR–NSX– 

2016–16). Prior to the Acquisition, the Exchange 

was named ‘‘National Stock Exchange, Inc.’’ 

5See Securities Exchange Act Release No. 83289 

(May 17, 2018) (notice of filing of Amendment No. 

1 and order granting accelerated approval of a 

proposed rule change, as amended by Amendment 

No. 1, to support the re-launch of NYSE National, 

Inc. on the Pillar Trading Platform) (‘‘NYSE 

National Trading Rules Approval’’). See also 

Securities Exchange Act Release No. 82819 (March 

7, 2018), 83 FR 11098 (March 13, 2018) (SR– 

NYSENat–2018–02). 

6The Affiliate SROs initially filed rule changes 

relating to their co-location services and related fees 

with the Commission in 2010. See Securities 

Exchange Act Release Nos. 62960 (September 21, 

2010), 75 FR 59310 (September 27, 2010) (SR– 

NYSE–2010–56); 62961 (September 21, 2010), 75 

FR 59299 (September 27, 2010) (SR–NYSEAmex– 

2010–80); and 63275 (November 8, 2010), 75 FR 

70048 (November 16, 2010) (SR–NYSEArca–2010– 

100). 

7See ‘‘Co-Location Fees’’ in ‘‘New York Stock 

Exchange Price List 2018’’ (‘‘NYSE Price List’’) at 

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

nyse/NYSE_Price_List.pdf; ‘‘NYSE American 

Equities Price List’’ (‘‘NYSE American Equities 

Price List’’) at https://www.nyse.com/publicdocs/ 

nyse/markets/nyse-american/NYSE_America_

Equities_Price_List.pdf; ‘‘NYSE American Options 

Fee Schedule’’ (‘‘NYSE American Options Fee 

Schedule’’) at https://www.nyse.com/publicdocs/ 

nyse/markets/american-options/NYSE_American_

Options_Fee_Schedule.pdf; ‘‘NYSE Arca Equities 

Fees and Charges’’ (‘‘NYSE Arca Equities Fee 

Schedule’’) at https://www.nyse.com/publicdocs/ 

nyse/markets/nyse-arca/NYSE_Arca_Marketplace_

Fees.pdf; and ‘‘NYSE Arca Options Fees and 

Charges’’ (‘‘NYSE Arca Options Fee Schedule’’) at 

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

arca-options/NYSE_Arca_Options_Fee_

Schedule.pdf. 

8See NYSE National Trading Rules Approval, 

note 5, supra. 

9Consistent with the Affiliate SRO Price Lists, for 

purposes of the Exchange’s co-location services, a 

‘‘User’’ shall mean any market participant that 

requests to receive co-location services directly 

from the Exchange. See Securities Exchange Act 

Release Nos. 76008 (September 29, 2015), 80 FR 

60190 (October 5, 2015) (SR–NYSE–2015–40); 

76009 (September 29, 2015), 80 FR 60213 (October 

5, 2015) (SR–NYSEMKT–2015–67); and 76010 

(September 29, 2015), 80 FR 60197 (October 5, 

2015) (SR–NYSEArca–2015–82). 

10See 75 FR 59310, note 6, supra. 

11See Securities Exchange Act Release Nos. 

70206 (August 15, 2013), 78 FR 51765 (August 21, 

2013) (SR–NYSE–2013–59); 70176 (August 13, 

2013), 78 FR 50471 (August 19, 2013) (SR– 

NYSEMKT–2013–67); and 70173 (August 13, 2013), 

78 FR 50459 (August 19, 2013) (SR–NYSEArca– 

2013–80). 

12See id. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83351; File No. SR– 

NYSENAT–2018–07] 

Self-Regulatory Organizations; NYSE 

National, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Adopt Co-Location 

Services and Fees In Connection With 

the Re-Launch of Trading on the 

Exchange and To Amend Its Schedule 

of Fees and Rebates To Provide for 

Such Co-Location Services 

May 31, 2018. 

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 May 18, 

2018, NYSE National, Inc. (‘‘Exchange’’ 

or ‘‘NYSE National’’) 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 self-regulatory organization. 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 adopt colocation services and fees in connection 

with the re-launch of trading on the 

Exchange and to amend its Schedule of 

Fees and Rebates (the ‘‘Price List’’) to 

provide for such co-location services. 

The Exchange also proposes to delete 

the current fees and credits set forth on 

the Price List. The proposed rule change 

is available on the Exchange’s website at 

www.nyse.com, at the principal office of 

the Exchange, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to adopt colocation services and fees in connection 

with the re-launch of trading on the 

Exchange and to amend the Price List to 

provide for such co-location services. 

The Exchange also proposes to delete 

the current fees and credits set forth on 

the Price List. 

On February 1, 2017, the Exchange 

ceased trading operations.4 The 

Exchange filed rule changes to re-launch 

trading operations.5 The Exchange 

anticipates re-launching trading 

operations in the second quarter of 

2018. 

Proposed Co-Location Services and Fees 

In connection with the anticipated relaunch of the Exchange’s trading 

operations, the Exchange proposes to 

offer the same co-location services and 

fees offered by its affiliates, NYSE Arca, 

Inc. (‘‘NYSE Arca’’), NYSE American 

LLC (‘‘NYSE American’’), and New York 

Stock Exchange LLC (‘‘NYSE’’ and, 

together, the ‘‘Affiliate SROs’’).6

Accordingly, the Exchange proposes to 

adopt the same co-location provisions 

and fees set forth in the price lists and 

fee schedules of its Affiliate SROs 

(collectively, the ‘‘Affiliate SRO Price 

Lists’’),7 with the non-substantive 

differences described below. 

The Exchange requests that the 

proposed rule change become both 

effective and operative immediately 

upon filing.8

The proposed services and fees would 

allow Users 9 ‘‘to rent space on premises 

controlled by the Exchange in order that 

they may locate their electronic servers 

in close physical proximity to the 

Exchange’s trading and execution 

systems.’’ 10 The Exchange would 

provide co-location services to Users 

from a data center in Mahwah, New 

Jersey (the ‘‘data center’’). 

As is true for the Affiliate SROs and 

as specified in the proposed Price List, 

a User that incurs co-location fees for a 

particular co-location service pursuant 

thereto would not be subject to colocation fees for the same co-location 

service charged by the Affiliate SROs.11

As with the Affiliate SROs’ colocation services, Users that receive colocation services from the Exchange 

would not receive any means of access 

to the Exchange’s trading and execution 

systems that is separate from or superior 

to that of Users that do not receive colocation services.12 All orders sent to 

the Exchange would enter the 

Exchange’s trading and execution 

systems through the same order gateway 

regardless of whether the sender is colocated in the Exchange’s data center or 

not. In addition, co-located Users would 

not receive any market data or data 

service product that is not available to 


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13See id. 

14For example, the NYSE Arca Options Fee 

Schedule provides that ‘‘[a] User that incurs colocation fees for a particular co-location service 

pursuant to this Fee Schedule shall not be subject 

to co-location fees for the same co-location service 

charged pursuant to the NYSE Arca Equities Fee 

Schedule or by the Exchange’s affiliates NYSE 

American LLC (NYSE American) and New York 

Stock Exchange LLC (NYSE)’’ (emphasis added) 

while the NYSE Price List provides that ‘‘[a] User 

that incurs co-location fees for a particular colocation service pursuant to this Price List shall not 

be subject to co-location fees for the same colocation service charged by the Exchange’s affiliates 

NYSE American LLC (NYSE American) and NYSE 

Arca, Inc. (NYSE Arca).’’ (emphasis added) The 

Exchange’s proposed text for General Note 1 is 

consistent with the wording of General Note 1 in 

the NYSE Price List. 

15Each Affiliate SRO will submit a proposed rule 

change to update General Note 1 to include NYSE 

National. 

16See Securities Exchange Act Release Nos. 

77072 (February 5, 2016), 81 FR 7394 (February 11, 

2016) (SR–NYSE–2015–53); 77071 (February 5, 

2016), 81 FR 7382 (February 11, 2016) (SR– 

NYSEMKT–2015–89); and 77070 (February 5, 

2016), 81 FR 7401 (February 11, 2016) (SR– 

NYSEArca–2015–102). 

17See Securities Exchange Act Release Nos. 

77681 (April 21, 2016), 81 FR 24915 (April 27, 2016 

(SR–NYSE–2016–13); 77680 (April 21, 2016), 81 FR 

24905 (April 27, 2016) (NYSEMKT–2016–17); and 

77682 (April 21, 2016), 81 FR 24913 (April 27, 2016 

(NYSEArca–2016–21). 

all Users. However, Users that receive 

co-location services normally would 

expect reduced latencies in sending 

orders to the Exchange and receiving 

market data from the Exchange. 

As with the co-location services of the 

Affiliate SROs, (i) neither a User nor any 

of the User’s customers would be 

permitted to submit orders directly to 

the Exchange unless such User or 

customer is a member organization, a 

Sponsored Participant or an agent 

thereof (e.g., a service bureau providing 

order entry services); (ii) use of the 

proposed co-location services would be 

completely voluntary and available to 

all Users on a non-discriminatory basis; 

and (iii) a User would only incur one 

charge for the particular co-location 

service described herein, regardless of 

whether the User connects only to the 

Exchange or to the Exchange and one or 

more of the Affiliate SROs.13

Definitions 

The Exchange proposes to adopt the 

definitions of ‘‘Affiliate,’’ ‘‘Aggregate 

Cabinet Footprint,’’ ‘‘Hosted Customer,’’ 

‘‘Hosting User,’’ and ‘‘User’’ as set forth 

in the Affiliate SRO Price Lists. 

Specifically, the Exchange proposes the 

following definitions: 

• An ‘‘Affiliate’’ of a User is any other User 

or Hosted Customer that is under 50% or 

greater common ownership or control of the 

first User. 

• ‘‘Aggregate Cabinet Footprint’’ of a User 

or Hosted Customer is (a) for a User, the total 

kW of the User’s cabinets, including both 

partial and dedicated cabinets, and (b), for a 

Hosted Customer, the total kW of the portion 

of the Hosting User’s cabinet, whether partial 

or dedicated, allocated to such Hosted 

Customer. 

• A ‘‘Hosted Customer’’ means a customer 

of a Hosting User that is hosted in a Hosting 

User’s co-location space. 

• A ‘‘Hosting User’’ means a User of colocation services that hosts a Hosted 

Customer in the User’s co-location space. 

• A ‘‘User’’ means any market participant 

that requests to receive co-location services 

directly from the Exchange. 

As in the Affiliate SRO Price Lists, the 

Exchange would specify that the 

definitions were for purposes of the colocation fees only. 

General Notes 

The Exchange proposes to adopt 

General Notes 1 through 4 as set forth 

in the Affiliate SRO Price Lists, subject 

to the differences discussed below. 

General Note 1: General Note 1 of the 

Affiliate SRO Price Lists provides that a 

User that incurs co-location fees for a 

particular co-location service would not 

be subject to co-location fees for the 

same co-location service charged by the 

other Affiliate SROs. The wording of 

General Note 1 differs among the 

Affiliate SRO Price Lists both where it 

references the relevant price list or fee 

schedule and where it lists the relevant 

exchange’s affiliates.14

The Exchange proposes to adopt the 

following General Note 1: 15

A User that incurs co-location fees for a 

particular co-location service pursuant to this 

Price List shall not be subject to co-location 

fees for the same co-location service charged 

by the Exchange’s affiliates New York Stock 

Exchange LLC (NYSE), NYSE American LLC 

(NYSE American) and NYSE Arca, Inc. 

(NYSE Arca). 

General Note 2: The Exchange 

proposes the same General Note 2 as in 

the Affiliate SRO Price Lists, setting 

forth the requirements for qualifying for 

a ‘‘Partial Cabinet Solution’’ bundle.16

The proposed text is as follows: 

To qualify for a Partial Cabinet Solution 

bundle, a User must meet the following 

conditions: (1) It must purchase only one 

Partial Cabinet Solution bundle; (2) the User 

and its Affiliates must not currently have a 

Partial Cabinet Solution bundle; and (3) after 

the purchase of the Partial Cabinet Solution 

bundle, the User, together with its Affiliates, 

will have an Aggregate Cabinet Footprint of 

no more than 2 kW. 

• A User requesting a Partial Cabinet 

Solution bundle will be required to certify to 

the Exchange (a) whether any other Users or 

Hosted Customers are Affiliates of the 

certificating User, and (b) that after the 

purchase of the Partial Cabinet Solution 

bundle, the User, together with its Affiliates, 

would have an Aggregate Cabinet Footprint 

of no more than 2 kW. The certificating User 

will be required to inform the Exchange 

immediately of any event that causes another 

User or Hosted Customer to become an 

Affiliate. The Exchange shall review 

available information regarding the entities 

and may request additional information to 

verify the Affiliate status of a User or Hosted 

Customer. The Exchange shall approve a 

request for a Partial Cabinet Solution bundle 

unless it determines that the certification is 

not accurate. 

• If a User that has purchased a Partial 

Cabinet Solution bundle becomes affiliated 

with one or more other Users or Hosted 

Customers and thereby no longer meets the 

conditions for access to the Partial Cabinet 

Solution bundle, or if the User otherwise 

ceases to meet the conditions for access to 

the Partial Cabinet Solution bundle, the 

Exchange will no longer offer it to such User 

and the User will be charged for each of the 

services individually, at the price for each 

such service set out in the Price List. Such 

price change would be effective as of the date 

that the User ceased to meet the conditions. 

In addition, a User that changes its 

Partial Cabinet Solution bundle from 

one option to another will not be subject 

to a second initial charge, but will be 

required to pay the difference, if any, 

between the bundles’ initial charges. 

General Note 3: The Exchange 

proposes the same General Note 3 as in 

the Affiliate SRO Price Lists, setting 

forth the provisions relating to the use 

of a waitlist.17 The proposed text is as 

follows: 

The initial and monthly charge for 2 

bundles of 24 cross connects will be waived 

for a User that is waitlisted for a cage for the 

duration of the waitlist period, provided that 

the cross connects may only be used to 

connect the User’s non-contiguous cabinets. 

The charge will no longer be waived once a 

User is removed from the waitlist. 

• If a waitlist is created, a User seeking a 

new cage will be placed on the waitlist based 

on the date a signed order for the cage is 

received. 

• A User that turns down a cage because 

it is not the correct size will remain on the 

waitlist. A User that requests to be removed 

or that turns down a cage that is the size that 

it requested will be removed from the 

waitlist. 

• A User that is removed from the waitlist 

but subsequently requests a cage will be 

added back to the bottom of the waitlist, 

provided that, if the User was removed from 

the waitlist because it turned down a cage 

that is the size that it requested, it will not 

receive a second waiver of the charge. 

General Note 4: Proposed General 

Note 4 would establish that, when a 

User purchases access to the Liquidity 

Center Network (‘‘LCN’’) or the internet 

protocol (‘‘IP’’) network, the two local 

area networks available in the data 


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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); and 79729 (January 4, 

2017), 82 FR 3061 (January 10, 2017) (SR– 

NYSEArca–2016–172). 

19Each Affiliate SRO will submit a proposed rule 

change to update General Note 4 to include NYSE 

National in the lists of the Affiliate SROs in its first 

and third sentences and in the list of Included Data 

Products. 

20See Securities Exchange Act Release Nos. 

71122 (December 18, 2013), 78 FR 77739 (December 

24, 2013) (SR–NYSE–2013–81); 71131 (December 

18, 2013), 78 FR 77750 (December 24, 2013) (SR– 

NYSEMKT–2013–103); and 71130 (December 18, 

2013), 78 FR 77765 (December 24, 2013) (SR– 

NYSEArca–2013–143). 

21See id. 

22See Securities Exchange Act Release Nos. 

70913 (November 21, 2013), 78 FR 70987 

(November 27, 2013) (SR–NYSE–2013–74); 70914 

(November 21, 2013), 78 FR 71000 (November 27, 

2013) (SR–NYSEMKT–2013–93); and 70916 

(November 21, 2013), 78 FR 70989 (November 21, 

2013) (SR–NYSEArca–2013–124). 

23See Securities Exchange Act Release Nos. 

67666 (August 15, 2012), 77 FR 50742 (August 22, 

2012) (SR–NYSE–2012–18); 67665 (August 15, 

2012), 77 FR 50734 (August 22, 2012) (SR– 

NYSEMKT–2012–11); 67669 (August 15, 2012), 77 

FR 50746 (August 22, 2012) (SR–NYSEArca–2012– 

62); and 67667 (August 15, 2012), 77 FR 50743 

(August 22, 2012) (SR–NYSEArca–2012–63). 

center,18 a User would receive (a) the 

ability to access the trading and 

execution systems of the Exchange and 

Affiliate SROs (‘‘Exchange Systems’’), 

and (b) connectivity to any of the listed 

data products (‘‘Included Data 

Products’’) that it selects. The proposed 

General Note 4 would be the same as the 

General Note 4 in the Affiliate SRO 

Price Lists, except that those price lists 

do not include the Exchange in the lists 

of the three Affiliate SROs in its first 

and third sentences or in the list of 

Included Data Products.19

The Exchange proposes to adopt the 

following General Note 4: 

When a User purchases access to the LCN 

or IP network, it receives the ability to access 

the trading and execution systems of the 

NYSE, NYSE American, NYSE Arca and 

NYSE National (Exchange Systems), subject, 

in each case, to authorization by the NYSE, 

NYSE American, NYSE Arca or NYSE 

National, as applicable. Such access includes 

access to the customer gateways that provide 

for order entry, order receipt (i.e. 

confirmation that an order has been 

received), receipt of drop copies and trade 

reporting (i.e. whether a trade is executed or 

cancelled), as well as for sending information 

to shared data services for clearing and 

settlement. A User can change the access it 

receives at any time, subject to authorization 

by NYSE, NYSE American, NYSE Arca or 

NYSE National. NYSE, NYSE American, 

NYSE Arca, and NYSE National also offer 

access to Exchange Systems to their 

members, such that a User does not have to 

purchase access to the LCN or IP network to 

obtain access to Exchange Systems. 

When a User purchases access to the LCN 

or IP network it receives connectivity to any 

of the Included Data Products that it selects, 

subject to any technical provisioning 

requirements and authorization from the 

provider of the data feed. Market data fees for 

the Included Data Products are charged by 

the provider of the data feed. A User can 

change the Included Data Products to which 

it receives connectivity at any time, subject 

to authorization from the provider of the data 

feed. The Exchange is not the exclusive 

method to connect to the Included Data 

Products. 

The Included Data Products are as 

follows: 

NMS feeds 

NYSE: 

NYSE Alerts 

NYSE BBO 

NYSE Integrated Feed 

NYSE OpenBook 

NYSE Order Imbalances 

NYSE Trades 

NYSE Amex Options 

NYSE Arca: 

NYSE ArcaBook 

NYSE Arca BBO 

NYSE Arca Integrated Feed 

NYSE Arca Order Imbalances 

NYSE Arca Trades 

NYSE Arca Options 

NYSE Best Quote and Trades (BQT) 

NYSE Bonds 

NYSE American: 

NYSE American Alerts 

NYSE American BBO 

NYSE American Integrated Feed 

NYSE American OpenBook 

NYSE American Order Imbalances 

NYSE American Trades 

NYSE National 

Cabinet-Related Fees 

The Exchange proposes the same 

services and fees set forth in the 

Affiliate SRO Price Lists under ‘‘Initial 

Fee per Cabinet’’; ‘‘Monthly Fee per 

Cabinet’’; ‘‘Cabinet Upgrade Fee’’; ‘‘PNU 

Cabinet’’; and ‘‘Cage Fees’’ (collectively, 

the ‘‘Cabinet-Related Fees’’). 

Initial Fee per Cabinet and Monthly 

Fee per Cabinet: As in the Affiliate SRO 

Price Lists, the Exchange proposes that, 

to house its servers and other equipment 

in the data center, a User have the 

option of an entire cabinet dedicated 

solely to that User (‘‘dedicated cabinet’’) 

or a partial cabinet alternative (‘‘partial 

cabinet’’).20 Partial cabinets would be 

made available in increments of eightrack units of space. Users would pay an 

initial fee and a monthly fee based on 

the number of kilowatts (‘‘kW’’). 

Cabinet Upgrade Fee: Users that 

require additional power allocation may 

prefer to maintain their hardware within 

one of their existing cabinets rather than 

add an additional cabinet. Specifically, 

Users may develop their hardware 

infrastructure within a particular 

cabinet in such a way that, if expansion 

of such hardware is needed, it can be 

accomplished within the space 

constraints of that particular cabinet. If 

this type of User requires additional 

power allocation, it would likely want 

to modify its existing cabinet in this 

manner, rather than taking an additional 

dedicated cabinet due to the expense of 

re-developing its infrastructure within 

such additional dedicated cabinet. 

Accordingly, as in the Affiliate SRO 

Price Lists, the Exchange would offer 

Users the option of a ‘‘Cabinet Upgrade’’ 

and related fee, pursuant to which the 

Exchange would accommodate requests 

for additional power allocation beyond 

the typical amount that the Exchange 

allocates per dedicated cabinet, at 

which point the Exchange must upgrade 

the cabinet’s power capacity.21

The Exchange notes that the Cabinet 

Upgrade Fees in the Affiliate SRO Price 

Lists have a parenthetical setting forth 

lower fees for a User that submitted a 

written order for a Cabinet Upgrade by 

January 31, 2014, provided that the 

Cabinet Upgrade became fully 

operational by March 31, 2014. Because 

a User that incurs co-location fees for a 

particular co-location service would not 

be subject to co-location fees for the 

same co-location service charged by the 

Affiliate SROs and such Users may 

already be subject to this different 

charge based on the Price List of an 

Affiliate SRO, the Exchange proposes to 

maintain the information regarding the 

lower price on its Price List. 

PNU Fee: As in the Affiliate SRO 

Price Lists, the Exchange proposes to 

offer Users the option of a unused 

cabinet for which power is not utilized 

(‘‘PNU cabinet’’) and charge a monthly 

fee.22 A User may wish to have a PNU 

cabinet it reserves for future use. 

Although PNU cabinets do not use 

power, when the Exchange establishes a 

PNU cabinet, it would include wiring, 

circuitry, and hardware and allocate 

kWs of unused power capacity. This 

would allow the PNU cabinet to be 

powered and used promptly upon the 

User’s request. 

Cage Fee: As in the Affiliate SRO 

Price Lists, the Exchange proposes to 

offer Users the use of cages to house 

their cabinets within the data center, 

with initial and monthly charges based 

on the size of the cage.23 A cage would 

typically be purchased by a User that 

has several cabinets within the data 

center and that wishes to enhance 

privacy around its cabinets, e.g., so that 

other Users cannot see what type of 

hardware is being utilized. 


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24See note 18, supra. 

25See note 23, supra. 

26See note 18, supra. 

27See note 16, supra. 

28See text accompanying note 16, supra. 

29See note 18, supra. See also Securities 

Exchange Act Release Nos. 74222 (February 6, 

2015), 80 FR 7888 (February 12, 2015 (SR–NYSE– 

2015–05); 74220 (February 6, 2015), 80 FR 7894 

(February 12, 2015) (SR–NYSEMKT–2015–08); and 

74219 (February 6, 2015), 80 FR 7899 (February 12, 

2015) (SR–NYSEArca–2015–03). 

The Exchange proposes to add the 

following fees and language to its Price 

List: 

Initial Fee per Cabinet 

Dedicated Cabinet .................................................................................... $5,000. 

8-Rack Unit of a Partial Cabinet .............................................................. $2,500. 

Monthly Fee per Cabinet 

Dedicated Cabinet 

Number of kWs Per kW Fee Monthly 

4–8 ............................................................................................................ $1,200. 

9–20 .......................................................................................................... $1,050. 

21–40 ........................................................................................................ $950. 

41 + ........................................................................................................... $900. 

8-Rack Unit of a Partial Cabinet 

Number of kWs Total Fee Monthly 

1 ................................................................................................................ $1,500. 

2 ................................................................................................................ $2,700. 

Cabinet Upgrade Fee 

Dedicated Cabinet .................................................................................... $9,200 ($4,600 for a User that submitted a written order for a Cabinet 

Upgrade by January 31, 2014, provided that the Cabinet Upgrade 

became fully operational by March 31, 2014). 

PNU Cabinet ............................................................................................. monthly charge of $360 per kW allocated to PNU Cabinet. 

Cage Fees 

2–14 Cabinets .......................................................................................... $5,000 initial charge plus $2,700 monthly charge. 

15–28 Cabinets ........................................................................................ $10,000 initial charge plus $4,100 monthly charge. 

29+ Cabinets ............................................................................................ $15,000 initial charge plus $5,500 monthly charge. 

Access and Service Fees 

The Exchange proposes to adopt the 

same services and fees set forth in the 

Affiliate SRO Price Lists under ‘‘LCN 

Access’’; ‘‘Bundled Network Access’’; 

‘‘Partial Cabinet Solution bundles’’; ‘‘IP 

Network Access’’; ‘‘Testing and 

Certification IP Network Access’’; 

‘‘Wireless Connections for Third Party 

Data’’; ‘‘Virtual Control Circuit between 

two Users’’; ‘‘Hosting Fee’’; ‘‘Data Center 

Fiber Cross Connect’’; ‘‘Connection to 

Time Protocol Feed’’ and ‘‘Expedite 

Fee’’ (collectively, the ‘‘Access and 

Service Fees’’). 

LCN Access: As in the Affiliate SRO 

Price Lists, the Exchange proposes to 

offer Users the option to purchase 1 Gb, 

10 Gb, 40 Gb, and 10 Gb LX LCN 

circuits, with initial and monthly 

charges.24 As in the Affiliate SRO Price 

Lists, the Exchange proposes that a User 

that purchases five 10 Gb LCN 

connections would only be charged the 

initial fee for a sixth 10 Gb LCN 

connection and would not be charged 

the monthly fee that would otherwise be 

applicable. This would apply to a User 

that purchases six 10 Gb LCN 

connections at one time as well as to a 

User that purchases six 10 Gb LCN 

connections at separate times.25

Bundled Network Access: As in the 

Affiliate SRO Price Lists, the Exchange 

proposes to offer Users two ‘‘Bundled 

Network Access’’ options, with initial 

and monthly charges.26 Both bundles 

would include two LCN connections, 

two IP network connections, and two 

optic connections to outside access 

centers. One bundle would have 1 Gb 

connections, and the other 10 Gb 

connections. 

Partial Cabinet Solution Bundles: As 

in the Affiliate SRO Price Lists, the 

Exchange proposes to offer Users four 

‘‘Partial Cabinet Solution’’ bundles.27

Each Partial Cabinet Solution bundle 

option would include a one or two kW 

partial cabinet, one LCN connection, 

one IP network connection, two fiber 

cross connections, and connectivity to 

either the Network Time Protocol 

(‘‘NTP’’) or Precision Timing Protocol 

(‘‘PTP’’) time feed. The power of the 

partial cabinet and Gb of the network 

connections would vary by bundle. A 

User and its Affiliates would be limited 

to one Partial Cabinet Solution bundle 

at a time, and must have an Aggregate 

Cabinet Footprint of 2 kW or less to 

qualify. As noted above, such 

requirements would be set forth in 

General Note 2.28 Finally, a User 

purchasing a Partial Cabinet Solution 

bundle would be subject to a 90-day 

minimum commitment, after which 

period it would be subject to the 60-day 

rolling time period. 

IP Network Access: As in the Affiliate 

SRO Price Lists, the Exchange proposes 

to offer Users the option to purchase 1 

Gb, 10 Gb, and 40 Gb IP network 

circuits, with initial and monthly 

charges.29

Testing and Certification IP Network 

Access: As in the Affiliate SRO Price 

Lists, the Exchange proposes to offer 

Users access to an IP network circuit for 


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30See id. 80 FR at 7888, 80 FR at 7894, and 80 

FR at 7899. 

31See Securities Exchange Act Release Nos. 

76748 (December 23, 2015), 80 FR 81609 (December 

30, 2015) (SR–NYSE–2015–52); 76750 (December 

23, 2015), 80 FR 81648 (December 30, 2015) (SR– 

NYSEMKT–2015–85); and 76749 (December 23, 

2015), 80 FR 81640 (December 30, 2015) (SR– 

NYSEArca–2015–99). 

32See id. 

33See Securities Exchange Act Release Nos. 

80311 (March 24, 2017), 82 FR 15749 (March 30, 

2017) (SR–NYSE–2016–45); 80309 (March 24, 

2017), 82 FR 15725 (March 30, 2017) (SR– 

NYSEMKT–2016–63); and 80310 (March 24, 2017), 

82 FR 15763 (March 30, 2017) (SR–NYSEArca– 

2016–89). 

34See note 9, supra. 

35See note 23, supra. 

36See note 16, supra. 

37See note 23, supra. 

testing and certification at no charge.30

The circuit could only be used for 

testing and certification, and the testing 

and certification period would be 

limited to three months. 

Wireless Connections for Third Party 

Data: As in the Affiliate SRO Price Lists, 

the Exchange proposes to offer Users a 

means to receive market data feeds from 

third party markets (‘‘Wireless Third 

Party Data’’) through a wireless 

connection, for an initial and monthly 

fee.31 Fees would be subject to a 30-day 

testing period, during which the 

monthly charge per connection would 

be waived. The wireless connections 

would include the use of one port for 

connectivity to the Wireless Third Party 

Data. If a User that has more than one 

wireless connection wishes to use more 

than one port to connect to the Wireless 

Third Party Data, the Exchange proposes 

to make such additional ports available 

for a monthly fee per port.32

The Exchange notes that the 

description of the charge for the 

wireless connection of Toronto Stock 

Exchange (‘‘TSX’’) in the Affiliate SRO 

Price Lists includes a statement that 

‘‘Customers with an existing wireless 

connection to TSX at the time the 

Exchange makes the service available 

will not be subject to an initial charge 

or receive 30-day testing period’’. 

Because the wireless connection to the 

TSX has become effective, the statement 

is obsolete. Accordingly, the Exchange 

does not propose to include the 

statement on its Price List. 

Virtual Control Circuit between two 

Users: As in the Affiliate SRO Price 

Lists, the Exchange proposes to offer 

Users ‘‘Virtual Control Circuits’’ 

(‘‘VCCs’’) between two Users for a 

monthly charge based on the size of the 

VCC.33 VCCs are connections between 

two points over dedicated bandwidth 

using the IP network. A VCC is a twoway connection which the two 

participants can use for any purpose. 

The Exchange would bill the User 

requesting the VCC, but would not set 

up a VCC until the other User confirmed 

that it wishes to have the VCC set up. 

Hosting Fee: As in the Affiliate SRO 

Price Lists, the Exchange proposes to 

offer Users a hosting service for a 

monthly fee per cabinet per Hosted 

Customer for each cabinet in which 

such Hosted Customer is hosted.34

‘‘Hosting’’ would be a service offered by 

a User to another entity in the User’s 

space within the data center and could 

include, for example, a User supporting 

such other entity’s technology, whether 

hardware or software, through the 

User’s co-location space. A Hosting User 

would be required to be a User pursuant 

to the definition of User proposed 

above. Since only Users could be 

Hosting Users, a Hosted Customer 

would not be able to provide hosting 

services to any other entities in the 

space in which it is hosted. 

Data Center Fiber Cross Connect: As 

in the Affiliate SRO Price Lists, the 

Exchange proposes to offer Users fiber 

cross connects for an initial and 

monthly charge.35 A User would be able 

to use cross connects between its 

cabinets or between its cabinet(s) and 

the cabinets of separate Users within the 

data center. A cross connect would be 

used to connect cabinets of separate 

Users when, for example, a User 

receives technical support, order 

routing, and/or market data delivery 

services from another User in the data 

center. Cross connects may be bundled 

(i.e., multiple cross connects within a 

single sheath) such that a single sheath 

can hold either one cross connect or 

several cross connects in multiples of 

six (e.g., six or 12 cross connects). The 

Exchange is proposing fees for bundled 

cross connects that correspond to the 

number of cross connects in the bundle. 

Connection to Time Protocol Feed: As 

in the Affiliate SRO Price Lists, the 

Exchange proposes to offer Users the 

option to purchase connectivity to one 

or more of three time feeds, with 

monthly and initial charges.36 Each 

proposed time feed would provide a 

feed with the current time of day using 

one of three different time protocols: 

GPS Time Source, the NTP, and PTP. 

Users may make use of time feeds to 

receive time and to synchronize clocks 

between computer systems or 

throughout a computer network, and 

time feeds may assist Users in other 

functions, including record keeping or 

measuring response times. Only the 

NTP and PTP time feeds would be 

available to partial cabinet Users, 

whereas dedicated cabinet Users would 

have access to all three time feeds. The 

NTP feed would only be available on 

the LCN. 

Expedite Fee: As in the Affiliate SRO 

Price Lists, the Exchange proposes to 

offer Users the option to expedite the 

completion of co-location services 

purchased or ordered by the User, for 

which the Exchange would charge an 

‘‘Expedite Fee.’’ 37

The Exchange proposes to add the 

following fees and language to its Price 

List: 

Type of service Description Amount of charge 

LCN Access ........................................................ 1 Gb Circuit ...................................................... $6,000 per connection initial charge plus 

$5,000 monthly per connection. 

LCN Access ........................................................ 10 Gb Circuit .................................................... $10,000 per connection initial charge plus 

$14,000 monthly per connection. A User 

that purchases 5 10 GB LCN Circuits will 

receive the 6th 10 GB LCN Circuit without 

an additional monthly charge. 

LCN Access ........................................................ 10 Gb LX Circuit .............................................. $15,000 per connection initial charge plus 

$22,000 monthly per connection. 

LCN Access ........................................................ 40 Gb Circuit .................................................... $15,000 per connection initial charge plus 

$22,000 monthly per connection. 

Bundled Network Access (2 LCN connections, 

2 IP network connections, and 2 optic connections to outside access center).

1 Gb Bundle ..................................................... $25,000 initial charge plus $13,000 monthly 

charge. 

10 Gb Bundle ................................................... $50,000 initial charge plus $53,000 monthly 

charge. 


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Type of service Description Amount of charge 

Partial Cabinet Solution bundles ........................

Note: A User and its Affiliates are limited to one 

Partial Cabinet Solution bundle at a time. A 

User and its Affiliates must have an Aggregate Cabinet Footprint of 2 kW or less to 

qualify for a Partial Cabinet Solution bundle. 

See Note 2 under ‘‘General Notes.’’.

Option A: ..........................................................

1 kW partial cabinet, 1 LCN connection (1 

Gb), 1 IP network connection (1 Gb), 2 fiber 

cross connections and either the Network 

Time Protocol Feed or Precision Timing 

Protocol.

$7,500 initial charge per bundle plus monthly 

charge per bundle as follows: 

• For Users that order on or before December 31, 2018: $3,000 monthly for first 24 

months of service, and $6,000 monthly 

thereafter. 

• For Users that order after December 31, 

2018: $6,000 monthly. 

Option B: ..........................................................

2 kW partial cabinet, 1 LCN connection (1 

Gb), 1 IP network connection (1 Gb), 2 fiber 

cross connections and either the Network 

Time Protocol Feed or Precision Timing 

Protocol.

$7,500 initial charge per bundle plus monthly 

charge per bundle as follows: 

• For Users that order on or before December 31, 2018: $3,500 monthly for first 24 

months of service, and $7,000 monthly 

thereafter. 

• For Users that order after December 31, 

2018: $7,000 monthly. 

Option C: ..........................................................

1 kW partial cabinet, 1 LCN connection (10 

Gb), 1 IP network connection (10 Gb), 2 

fiber cross connections and either the Network Time Protocol Feed or Precision Timing Protocol.

$10,000 initial charge per bundle plus monthly 

charge per bundle as follows: 

• For Users that order on or before December 31, 2018: $7,000 monthly for first 24 

months of service, and $14,000 monthly 

thereafter. 

• For Users that order after December 31, 

2018: $14,000 monthly. 

Option D: ..........................................................

2 kW partial cabinet, 1 LCN connection (10 

Gb), 1 IP network connection (10 Gb), 2 

fiber cross connections and either the Network Time Protocol Feed or Precision Timing Protocol.

$10,000 initial charge per bundle plus monthly 

charge per bundle as follows: 

• For Users that order on or before December 31, 2018: $7,500 monthly for first 24 

months of service, and $15,000 monthly 

thereafter. 

• For Users that order after December 31, 

2018: $15,000 monthly. 

IP Network Access ............................................. 1 Gb Circuit ...................................................... $2,500 per connection initial charge plus 

$2,500 monthly per connection. 

IP Network Access ............................................. 10 Gb Circuit .................................................... $10,000 per connection initial charge plus 

$11,000 monthly per connection. 

IP Network Access ............................................. 40 Gb Circuit .................................................... $10,000 per connection initial charge plus 

$18,000 monthly per connection. 

Testing and certification IP Network Access ...... IP network circuit for testing and certification. 

Circuit can only be used for testing and certification and testing and certification period 

is limited to three months.

No charge. 

Wireless Connection for Third Party Data ......... Wireless connection of Cboe Pitch BZX Gig 

shaped data and Cboe Pitch BYX Gig 

shaped data.

$5,000 per connection initial charge plus 

monthly charge per connection of $6,000. 

Fees are subject to a 30-day testing period, 

during which the monthly charge per connection is waived. 

Wireless Connection for Third Party Data ......... Wireless connection of Cboe EDGX Gig 

shaped data and Cboe EDGA Gig shaped 

data.

$5,000 per connection initial charge plus 

monthly charge per connection of $6,000 

Fees are subject to a 30-day testing period, 

during which the monthly charge per connection is waived. 

Wireless Connection for Third Party Data ......... Wireless connection of NASDAQ TotalviewITCH data.$5,000 per connection initial charge plus 

monthly charge per connection of $8,500. 

Fees are subject to a 30-day testing period, 

during which the monthly charge per connection is waived. 

Wireless Connection for Third Party Data ......... Wireless connection of NASDAQ BX 

Totalview-ITCH data.

$5,000 per connection initial charge plus 

monthly charge per connection of $6,000. 

Fees are subject to a 30-day testing period, 

during which the monthly charge per connection is waived. 

Wireless Connection for Third Party Data ......... Wireless connection of NASDAQ Totalview 

Ultra (FPGA).

$5,000 per connection initial charge plus 

monthly charge per connection of $11,000. 

Fees are subject to a 30-day testing period, 

during which the monthly charge per connection is waived. 

Wireless Connection for Third Party Data ......... Wireless connection of NASDAQ TotalviewITCH and BX Totalview-ITCH data.$5,000 per connection initial charge plus 

monthly charge per connection of $12,000. 

Fees are subject to a 30-day testing period, 

during which the monthly charge per connection is waived. 


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38See id. 

39See note 20, supra. 40See Securities Exchange Act Release Nos. 

72721 (July 30, 2014), 79 FR 45562 (August 5, 2014) 

(SR–NYSE–2014–37); 72719 (July 30, 2014), 79 FR 

45502 (August 5, 2014) (SR–NYSEMKT–2014–61); 

and 72720 (July 30, 2014), 79 FR 45577 (August 5, 

2014) (SR–NYSEArca–2014–81). 41See note 5, supra. 42See id. 43See id. 44See id. 

Type of service Description Amount of charge 

Wireless Connection for Third Party Data ......... Wireless connection of NASDAQ Totalview 

Ultra (FPGA) and BX Totalview-ITCH data.

$5,000 per connection initial charge plus 

monthly charge per connection of $14,500. 

Fees are subject to a 30-day testing period, 

during which the monthly charge per connection is waived. 

Wireless Connection for Third Party Data ......... Wireless connection of Toronto Stock Exchange (TSX).$5,000 per connection initial charge plus 

monthly charge per connection of $8,500. 

Fees are subject to a 30-day testing period, 

during which the monthly charge per connection is waived. 

Wireless Connection for Third Party Data ......... Port for wireless connection ............................ $3,000 monthly charge per port, excluding 

first port. 

Virtual Control Circuit between two Users ......... 1Mb .................................................................. $200 monthly charge. 

3Mb .................................................................. $400 monthly charge. 

5Mb .................................................................. $500 monthly charge. 

10Mb ................................................................ $800 monthly charge. 

25Mb ................................................................ $1,200 monthly charge. 

50Mb ................................................................ $1,800 monthly charge. 

100Mb .............................................................. $2,500 monthly charge. 

Hosting Fee ........................................................ ...................................................................... $1,000 monthly charge per cabinet per 

Hosted Customer for each cabinet in which 

such Hosted Customer is hosted. 

Data Center Fiber Cross Connect ...................... Furnish and install 1 cross connect ................. $500 initial charge plus $600 monthly charge. 

Furnish and install bundle of 6 cross connects $500 initial charge plus $1,800 monthly 

charge. 

Furnish and install bundle of 12 cross connects.$500 initial charge plus $3,000 monthly 

charge. 

Furnish and install bundle of 18 cross connects.$500 initial charge plus $3,840 monthly 

charge. 

Furnish and install bundle of 24 cross connects between cabinets within the data center.$500 initial charge plus $4,680 monthly 

charge. 

See General Note 3. 

Connection to Time Protocol Feed .................... Network Time Protocol Feed (Note: LCN only) $300 initial charge plus $100 monthly charge. 

Precision Time Protocol ................................... $1,000 initial charge plus $250 monthly 

charge. 

GPS Time Source (Note: dedicated cabinets 

only).

$3,000 initial charge plus $400 monthly 

charge. 

Expedite Fee ...................................................... Expedited installation/completion of a User’s 

co-location service.

$4,000 per request. 

Service-Related Fees 

The Exchange proposes to adopt the 

same services and fees set forth in the 

Affiliate SRO Price Lists under ‘‘Change 

Fee’’; ‘‘Initial Install Services’’; ‘‘Hot 

Hands Service’’; ‘‘Shipping and 

Receiving’’; ‘‘Badge Request’’; ‘‘External 

Cabinet Cable Tray’’; ‘‘Custom External 

Cabinet Cable Tray’’ and ‘‘Visitor 

Security Escort’’ (collectively, the 

‘‘Service-related Fees’’) and related note, 

as follows. 

Change Fee: As in the Affiliate SRO 

Price Lists, the Exchange proposes to 

charge a User a ‘‘Change Fee’’ if the User 

requests a change to one or more 

existing co-location services that the 

Exchange has already established or 

completed for the User.38 The Change 

Fee would be charged per order. If a 

User ordered two or more services at 

one time (for example, through 

submitting an order form requesting 

multiple services) the User would be 

charged a one-time Change Fee, which 

would cover the multiple services. 

Initial Install Services: As in the 

Affiliate SRO Price Lists, the Exchange 

proposes to charge a User an ‘‘Initial 

Install Services’’ fee for the installation 

of a dedicated or partial cabinet.39 The 

proposed fee would be lower for a 

partial cabinet. The Initial Install 

Services fee would include initial 

racking of equipment in the cabinet, 

provision of cables and labor. The 

number of hours would depend on 

whether the cabinet was partial or 

dedicated. 

Hot Hands Service: As in the Affiliate 

SRO Price Lists, the Exchange proposes 

to offer Users a ‘‘Hot Hands’’ service, 

which would allow Users to use on-site 

data center personnel to maintain User 

equipment, support network 

troubleshooting, rack and stack a server 

in a User’s cabinet; power recycling; and 

install and document the fitting of cable 

in a User’s cabinet(s).40 The Hot Hands 

fee would be charged per half hour. 

Shipping and Receiving: As in the 

Affiliate SRO Price Lists, the Exchange 

proposes to offer Users shipping and 

receiving services, with a per shipment 

fee for the receipt of one shipment of 

goods at the data center from the User 

or supplier.41

Badge Request: As in the Affiliate 

SRO Price Lists, the Exchange proposes 

to offer Users the option to obtain a 

permanent data center site access badge 

for a User representative.42

External Cabinet Cable Tray: As in the 

Affiliate SRO Price Lists, the Exchange 

proposes to offer to engineer, furnish 

and install a Rittal 5′′ H x 12′′ W cable 

tray on a cabinet for a flat fee per tray.43

Custom External Cabinet Cable Tray: 

As in the Affiliate SRO Price Lists, the 

Exchange proposes to offer to engineer, 

furnish and install 4′′ H x 24′′ W custom 

basket cable tray above a client’s cabinet 

rows for a fee per linear foot.44


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45See note 17, supra. 46See Securities Exchange Act Release Nos. 

76269 (October 26, 2015), 80 FR 66942 (October 30, 

2015) (SR–NYSE–2015–42); 76268 (October 26, 

2015), 80 FR 66944 (October 30, 2015) (SR– 

NYSEMKT–2015–70); and 76270 (October 26, 

2015), 80 FR 66958 (October 30, 2015) (SR– 

NYSEArca–2015–85). 

47The Exchange notes that, while the other 

Affiliate SRO Price Lists use three asterisks to 

identify the Service-Related Fees and the 

corresponding note, the NYSE Amex Options Fee 

Schedule uses the numeral ‘‘1’’. The Exchange 

proposes to use three asterisks. 

Visitor Security Escort: As in the 

Affiliate SRO Price Lists, the Exchange 

proposes that User representatives be 

required to be accompanied by a visitor 

security escort during visits to the data 

center, unless visiting the User’s cage. A 

fee per visit would be charged.45 The 

proposed requirement would include 

User representatives who have a 

permanent data center site access badge. 

In order to be able to meet its 

obligation to accommodate demand, and 

in particular to make available more 

contiguous, larger spaces for new and 

existing Users, if necessary, the 

Exchange would exercise its right to 

move some Users’ equipment within the 

data center (‘‘Migration’’). To manage 

the process for a future Migration, the 

Exchange proposes to put the same 

Migration procedures in place as the 

Affiliate SROs, as follow: 46

• First, the Exchange would identify Users 

that would be required to move in the 

Migration based on (a) the current location of 

the User and its current equipment and 

power requirements and (b) the availability 

of another location in the Data Center that 

would accommodate the equipment and 

power requirements for which such User 

currently subscribes. No User would be 

required to move more than once within any 

12-month period. 

• Second, the Exchange would notify a 

User in writing (the ‘‘Notice’’) that the User’s 

equipment and network connections in the 

Data Center were to be moved as part of the 

Migration. The Notice would identify the 90- 

day period during which the User must move 

its equipment, which period would 

commence at least 60 days from the date of 

the Notice. The exact date or dates for the 

move for each User would be agreed upon 

between the User and the Exchange. If a 

move date or dates cannot be agreed on, the 

Exchange would schedule the move for a 

date or dates no later than 180 days after the 

date of the Notice. 

• Third, each User’s move would be 

facilitated by the Exchange in cooperation 

with the User, including the un-racking and 

re-racking of all of the User’s equipment, and 

the re-installation of the User’s networking 

connections, and the Exchange would make 

reasonable efforts to ensure that the moves 

take place outside of the Exchange’s hours for 

business. 

• Fourth, in connection with facilitating 

each User’s move, the Exchange proposes to 

waive certain fees. Specifically, the Exchange 

proposes to waive: 

Æ The monthly recurring fees for the User’s 

existing space, based on the rate of the 

monthly recurring fees that the User is 

paying as of the date of the Notice, for the 

month during which the User’s move takes 

place. This waiver of the monthly recurring 

fees would mean that the User would not 

incur these fees for the period of overlapping 

use of the equipment and services in the old 

and the new locations, as long as the move 

is completed within one month. 

Æ all Service-Related Fees that the User 

would incur if such a move were to take 

place at a User’s request with respect to the 

User’s existing services and equipment. 

Æ for the month following the completion 

of a User’s move, the monthly recurring 

charges for that User, based on the rate of the 

monthly recurring fees that the User is 

paying as of the date of the Notice, in 

consideration for the Migration. 

The Exchange proposes to add a note 

to each Service-Related Fee outlining 

the Migration process, as in the Affiliate 

SRO Price Lists.47 The Exchange 

proposes to add the following fees and 

note to its Price List: 

Type of service Description Amount of charge 

Change Fee *** .................... Change to a co-location service that has already been 

installed/completed for a User.

$950 per request. 

Initial Install Services *** 

(Required per cabinet).

Dedicated Cabinet: Includes initial racking of equipment 

in cabinet and provision of cables (4 hrs).

$800 per dedicated cabinet. 

Partial Cabinet: Includes initial racking of equipment in 

cabinet and provision of cables (2 hrs).

$400 per eight-rack unit in a partial cabinet. 

Hot Hands Service *** .......... Allows Users to use on-site data center personnel to 

maintain User equipment, support network troubleshooting, rack and stack, power recycling, and install 

and document cable.

$100 per half hour. 

Shipping and Receiving *** .. Receipt of one shipment of goods at data center from 

User/supplier. Includes coordination of shipping and 

receiving.

$100 per shipment. 

Badge Request *** ............... Request for provision of a permanent data center site 

access badge for a User representative.

$50 per badge. 

External Cabinet Cable 

Tray ***.

Engineer, furnish and install Rittal 5′′ H x 12′′ W cable 

tray on cabinet.

$400 per tray. 

Custom External Cabinet 

Cable Tray ***.

Engineer, furnish and install 4′′ H x 24′′ W custom basket cable tray above client’s cabinet rows.$100 per linear foot. 

Visitor Security Escort *** ..... All User representatives are required to be accompanied by a visitor security escort during visits to the 

data center, unless visiting the User’s cage. Requirement includes User representatives who have a permanent data center site access badge.

$75 per visit. 

*** These fees are waived for the move of a User’s equipment within the Data Center when incurred in connection with such a move required 

by the Exchange (‘‘Migration Move’’). A User selected by the Exchange for a Migration Move will receive written notice (the ‘‘Notice’’). The Notice 

will identify the 90-day period during which a User must move its equipment, which period would commence at least 60 days from the date of the 

Notice. Monthly recurring fees for the User’s existing space based on the rate of the monthly recurring fees that the User was paying as of the 

date of the Notice are also waived for the month during which a User’s Migration Move takes place, so the User would not incur these fees for 

the period of overlapping use of equipment and services in the old and new locations. In addition, the monthly recurring charges are waived for 

the month following the completion of a User’s Migration Move, based on the rate of the monthly recurring fees that the User was paying as of 

the date of the Notice. No User will be required to move more than once within any 12-month period. 


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48See note 33, supra. 

49See id. 50See id. 

Connectivity to Third Party Systems, 

Data Feeds, Testing and Certification 

Feeds, and DTCC 

The Exchange proposes to adopt the 

same services and fees set forth in the 

Affiliate SRO Price Lists under 

‘‘Connectivity to Third Party Systems, 

Data Feeds, Testing and Certification 

Feeds, and DTCC.’’ 48

Connectivity to Third Party Systems: 

As in the Affiliate SRO Price Lists, the 

Exchange proposes to provide that Users 

may obtain access to the trading and 

execution services of Third Party 

markets and other content service 

providers (‘‘Third Party Systems’’) of 

multiple third party markets and other 

content service providers for a fee.49

Users would connect to Third Party 

Systems over the IP network. 

In order to obtain access to a Third 

Party System, a User would enter into 

an agreement with the relevant third 

party content service provider, pursuant 

to which the third party content service 

provider would charge the User for 

access to the Third Party System. The 

Exchange would then establish a unicast 

connection between the User and the 

relevant third party content service 

provider over the IP network. The 

Exchange would charge the User for the 

connectivity to the Third Party System. 

A User would only receive, and would 

only be charged for, access to Third 

Party Systems for which it enters into 

agreements with the third party content 

service provider. 

With the exception of the ICE feed, 

the Exchange would have no ownership 

interest in the Third Party Systems. 

Establishing a User’s access to a Third 

Party System would not give the 

Exchange any right to use the Third 

Party Systems. Connectivity to a Third 

Party System would not provide access 

or order entry to the Exchange’s 

execution system, and a User’s 

connection to a Third Party System 

would not be through the Exchange’s 

execution system. 

The Exchange would charge a 

monthly recurring fee for connectivity 

to a Third Party System. Specifically, 

when a User requested access to a Third 

Party System, it would identify the 

applicable third party market or other 

content service provider and what 

bandwidth connection it required. 

The Exchange proposes to add the 

following fees and language to its Price 

List: 

Connectivity to Third Party Systems 

Pricing for access to the execution 

systems of third party markets and other 

service providers (Third Party Systems) 

is for connectivity only. Connectivity to 

Third Party Systems is subject to any 

technical provisioning requirements and 

authorization from the provider of the 

data feed. Connectivity to Third Party 

Systems is over the IP network. Any 

applicable fees are charged 

independently by the relevant third 

party content service provider. The 

Exchange is not the exclusive method to 

connect to Third Party Systems. 

Bandwidth of connection to 

Third Party System 

Monthly 

recurring 

fee per 

connection to 

Third Party 

System 

1Mb ....................................... $200 

3Mb ....................................... 400 

5Mb ....................................... 500 

10Mb ..................................... 800 

25Mb ..................................... 1,200 

50Mb ..................................... 1,800 

100Mb ................................... 2,500 

200 Mb .................................. 3,000 

1 Gb ...................................... 3,500 

Third Party Systems 

Americas Trading Group (ATG). 

BATS. 

Boston Options Exchange (BOX). 

Chicago Board Options Exchange (CBOE). 

Chicago Mercantile Exchange (CME Group). 

Chicago Stock Exchange (CHX). 

Credit Suisse. 

Euronext Optiq Cash and Derivatives Unicast 

(EUA). 

Euronext Optiq Cash and Derivatives Unicast 

(Production). 

International Securities Exchange (ISE). 

Investors Exchange (IEX). 

Miami International Securities Exchange. 

MIAX PEARL. 

Nasdaq. 

NYFIX Marketplace. 

OneChicago. 

TMX Group. 

Connectivity to Third Party Data 

Feeds: As in the Affiliate SRO Price 

Lists, the Exchange proposes to provide 

that Users may obtain connectivity to 

data feeds from third party markets and 

other content service providers (‘‘Third 

Party Data Feeds’’) for a fee.50 The 

Exchange would receive Third Party 

Data Feeds from multiple national 

securities exchanges and other content 

service providers at its data center. It 

would then provide connectivity to that 

data to Users for a fee. With the 

exceptions of Global OTC and ICE Data 

Global Index, Users would connect to 

Third Party Data Feeds over the IP 

network. 

In order to connect to a Third Party 

Data Feed, a User would enter into a 

contract with the relevant third party 

market or other content service 

provider, pursuant to which the content 

service provider would charge the User 

for the Third Party Data Feed. The 

Exchange would receive the Third Party 

Data Feed over its fiber optic network 

and, after the data provider and User 

enter into the contract and the Exchange 

receives authorization from the data 

provider, the Exchange would retransmit the data to the User over the 

User’s port. The Exchange would charge 

the User for the connectivity to the 

Third Party Data Feed. A User would 

only receive, and would only be 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, the 

Exchange would have no affiliation with 

the sellers of the Third Party Data Feeds. 

It would have no right to use the Third 

Party Data Feeds other than as a 

redistributor of the data. The Third 

Party Data Feeds would not provide 

access or order entry to the Exchange’s 

execution system. With the exception of 

the ICE feeds, the Third Party Data 

Feeds would not provide access or order 

entry to the execution systems of the 

third party generating the feed. The 

Exchange would receive Third Party 

Data Feeds via arms-length agreements 

and would have no inherent advantage 

over any other distributor of such data. 

The Exchange would charge a 

monthly recurring fee for connectivity 

to each Third Party Data Feed. The 

monthly recurring fee would be 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 FeedsShared Farm feeds), 

SR Labs—SuperFeeds and MSCI feeds 

would vary by the bandwidth of the 

connection. Depending on its needs and 

bandwidth, a User may opt to receive all 

or some of the feeds or services 

included in a Third Party Data Feed. 

Third Party Data Feed providers may 

charge redistribution fees. The Exchange 

proposes that, when it receives a 

redistribution fee, it pass through the 

charge to the User, without change to 

the fee. The fee would be labeled as a 

pass-through of a redistribution fee on 

the User’s invoice. As in the Affiliate 

SRO Price Lists, the Exchange proposes 

to add language to the Price List 

accordingly. 

The Exchange proposes that it not 

charge Users 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 


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51See id. 

testing. As in the Affiliate SRO Price 

Lists, the Exchange proposes to add 

language to the Price List accordingly. 

The Exchange proposes to add the 

following fees and language to its Price 

List: 

Connectivity to Third Party Data Feeds 

Pricing for data feeds from third party 

markets and other content service 

providers (Third Party Data Feeds) is for 

connectivity only. Connectivity to Third 

Party Data Feeds is subject to any 

technical provisioning requirements and 

authorization from the provider of the 

data feed. Connectivity to Third Party 

Data Fees is over the IP network, with 

the exception that Users can connect to 

Global OTC and ICE Data Global Index 

over the IP network or LCN. Market data 

fees are charged independently by the 

relevant third party market or content 

service provider. The Exchange is not 

the exclusive method to connect to 

Third Party Data Feeds. 

Third Party Data Feed providers may 

charge redistribution fees. When the 

Exchange receives a redistribution fee, it 

passes through the charge to the User, 

without change to the fee. The fee is 

labeled as a pass-through of a 

redistribution fee on the User’s invoice. 

The Exchange does not charge third 

party markets or content providers for 

connectivity to their own feeds. 

Third Party Data Feed 

Monthly 

recurring 

connectivity 

fee per 

Third Party 

Data Feed 

Boston Options Exchange (BOX) ........................................................................................................................................................ $1,000 

Cboe BZX Exchange (CboeBZX) and Cboe BYX Exchange (CboeBYX) .......................................................................................... 2,000 

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

Chicago Board Options Exchange (CBOE) ........................................................................................................................................ 2,000 

Chicago Stock Exchange (CHX) ......................................................................................................................................................... 400 

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 Global Index ......................................................................................................................................................................... 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 >1Gb ..................................................................................................................................... 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 >1Gb ............................................................................................................... 1,000 

ICE Data Services PRD ...................................................................................................................................................................... 200 

ICE Data Services PRD CEP .............................................................................................................................................................. 400 

Intercontinental Exchange (ICE) .......................................................................................................................................................... 1,500 

International Securities Exchange (ISE) .............................................................................................................................................. 1,000 

Investors Exchange (IEX) .................................................................................................................................................................... 1,000 

Miami International Securities Exchange/MIAX PEARL ..................................................................................................................... 2,000 

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 OMDF .................................................................................................................................................................................. 100 

NASDAQ UQDF & UTDF .................................................................................................................................................................... 500 

OneChicago ......................................................................................................................................................................................... 1,000 

OTC Markets Group ............................................................................................................................................................................ 1,000 

SR Labs—SuperFeed <500 Mb .......................................................................................................................................................... 250 

SR Labs—SuperFeed >500 Mb to <1.25 Gb ...................................................................................................................................... 800 

SR Labs—SuperFeed >1.25 Gb ......................................................................................................................................................... 1,000 

TMX Group .......................................................................................................................................................................................... 2,500 

Connectivity to Third Party Testing 

and Certification Feeds: As in the 

Affiliate SRO Price Lists, the Exchange 

proposes to provide that Users may 

obtain connectivity to third party testing 

and certification feeds.51 Certification 

feeds would be used to certify that a 

User conforms to any of the relevant 

content service provider’s requirements 

for accessing Third Party Systems or 

receiving Third Party Data, while testing 

feeds would provide Users an 

environment in which to conduct tests 

with non-live data. Such feeds, which 

would solely be used for certification 

and testing and do not carry live 

production data, would be available 

over the IP network. 

The Exchange proposes to add the 

following fees and language to its Price 

List: 

Connectivity to Third Party Testing and 

Certification Feeds 

The Exchange provides connectivity 

to third party testing and certification 

feeds provided by third party markets 

and other content service providers. 

Pricing for third party testing and 

certification feeds is for connectivity 

only. Connectivity to third party testing 

and certification feeds is subject to any 

technical provisioning requirements and 

authorization from the provider of the 


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52See id. 

53See Termination Filing, supra note 4. 

54 15 U.S.C. 78f(b). 

55 15 U.S.C. 78f(b)(4) & (5). 56See notes 15 and 19, supra. 

data feed. Connectivity to third party 

testing and certification feeds is over the 

IP network. Any applicable fees are 

charged independently by the relevant 

third party market or content service 

provider. The Exchange is not the 

exclusive method to connect to third 

party testing and certification feeds. 

Connectivity to third 

party certification 

and testing feeds.

$100 monthly recurring fee per feed. 

Connectivity to DTCC: As in the 

Affiliate SRO Price Lists, the Exchange 

proposes to provide Users connectivity 

to Depository Trust & Clearing 

Corporation (‘‘DTCC’’) for clearing, fund 

transfer, insurance, and settlement 

services.52

In order to connect to DTCC, a User 

would enter into a contract with DTCC, 

pursuant to which DTCC would charge 

the User for the services provided. The 

Exchange would receive the DTCC feed 

over its fiber optic network and, after 

DTCC and the User entered into the 

services contract and the Exchange 

received authorization from DTCC, the 

Exchange would provide connectivity to 

DTCC to the User over the User’s IP 

network port. The Exchange would 

charge the User for the connectivity to 

DTCC. 

Connectivity to DTCC would not 

provide access or order entry to the 

Exchange’s execution system, and a 

User’s connection to DTCC would not 

be through the Exchange’s execution 

system. 

The Exchange proposes to add the 

following fees and language to its Price 

List: 

Connectivity to DTCC 

Pricing for connectivity to DTCC feeds 

is for connectivity only. Connectivity to 

DTCC feeds is subject to any technical 

provisioning requirements and 

authorization from DTCC. Connectivity 

to DTCC feeds is over the IP network. 

Any applicable fees are charged 

independently by DTCC. The Exchange 

is not the exclusive method to connect 

to DTCC feeds. 

5 Mb connection to 

DTCC.

$500 monthly recurring fee. 

50 Mb connection to 

DTCC.

$2,500 monthly recurring fee. 

Proposed Deletion of Current Fees and 

Rebates Set Forth on the Price List 

In addition to adding Co-Location 

Fees to the Price List, the Exchange also 

proposes to delete the current fees and 

credits set forth on the Price List, 

including the Transaction Fees and 

Rebates, Market Data Revenue, 

Regulatory Fee, Market Data, and 

Connectivity Fees. 

As noted above, the Exchange ceased 

operations on February 1, 2017 and in 

connection with the relevant filing, 

terminated the membership status of all 

Exchange ETP Holders.53 Because the 

Exchange has not been operating and 

does not have any ETP Holders, the 

Exchange has not been charging any of 

the fees set forth on the current Price 

List. In addition, the Exchange intends 

to file a separate proposed rule change 

to establish fees and credits for the relaunch of operations. The Exchange 

believes that deleting the fees and 

credits currently set forth on the Price 

List would promote transparency and 

reduce confusion among the public, 

members, and the Commission 

regarding the fees and credits that 

would be applicable when the Exchange 

re-launches trading, as the current fees 

and credits are now obsolete. 

* * * * * 

The proposed changes are not 

otherwise intended to address any other 

issues, and the Exchange is not aware of 

any problems that member 

organizations would have in complying 

with the proposed change. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,54 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,55 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 

mechanisms 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 believes that offering 

co-location services would 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 it would provide 

market participants with the option to 

co-locate, but would not require it. The 

Exchange would provide co-location 

services, including various options for 

cabinets, LCN and IP network access, 

connectivity to Included Data Products, 

Third Party Data Feeds, third party 

testing and certification feeds, DTCC 

and Wireless Third Party Data 

(collectively, ‘‘Connectivity’’), access to 

Exchange Systems and Third Party 

Systems (together, ‘‘Access’’), hosting, 

and services, as conveniences to Users. 

Use of any co-location services would 

be completely voluntary, and each 

market participant would be able to 

determine whether to use co-location 

services based on the requirements of its 

business operations. If it chose to colocate, it would be able to determine 

what size of cabinet, form and latency 

of network, Access and Connectivity 

would best suits its needs. As 

alternatives to using co-location, a 

market participant would be able to 

access or connect to the Exchange 

through a connection to an Exchange 

access center outside the data center, a 

third party access center, or a third 

party vendor. The market participant 

could make such connection through a 

third party telecommunication provider, 

third party wireless network, the Secure 

Financial Transaction Infrastructure 

(‘‘SFTI’’) network, or a combination 

thereof. 

Further, by having the Price List set 

forth the same co-location services and 

fees offered by the Affiliate SROs, with 

only non-substantive differences from 

the Affiliate SRO Price Lists,56 the 

Exchange would 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 Users 

would benefit from having consistent 

products and pricing across the 

Exchange and the three Affiliate SROs. 

As is true for the Affiliate SROs and as 

specified in the proposed Price List, a 

User that incurred co-location fees for a 

particular co-location service pursuant 

thereto would not be subject to colocation fees for the same co-location 

service charged by the Affiliate SROs. 

The Exchange believes that the 

proposed changes would 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 the Price List would set 

forth: (a) The relevant definitions and 

General Notes, including a detailed 

description of the Access and 

Connectivity Users receive with their 

purchase of access to the LCN or IP 

network; (b) the Cabinet-Related Fees; 


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57 15 U.S.C. 78f(b)(4). 

(c) the Access and Service Fees; (d) the 

Service-related Fees; (e) a description of 

the Migration; and (f) information 

regarding connectivity to Third Party 

Systems, Third Party Data Feeds, third 

party testing and certification feeds, and 

DTCC. Such proposed Price List text 

would make the description of colocation services and fees accessible and 

transparent, providing market 

participants with clarity as to what 

services were offered within co-location 

and what the related fees would be. 

The Exchange believes that the 

proposal to provide Access and 

Connectivity would 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, by offering Access and 

Connectivity, the Exchange would give 

each User access and connectivity 

options. Providing Access and 

Connectivity would help each User 

tailor its data center operations to the 

requirements of its business operations 

by allowing it to select the form and 

latency of access and connectivity that 

best suits its needs. The Exchange 

would provide Access and Connectivity 

as conveniences to Users. As with all 

co-location services, use of Access or 

Connectivity would be completely 

voluntary. Each User would have 

several other access and connectivity 

options available to it. As alternatives to 

using the Access and Connectivity 

provided by the Exchange, a User 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, DTCC and Wireless Third Party 

Data through another User or through a 

connection to an Exchange access center 

outside the data center, third party 

access center, or third party vendor. The 

User may make such connection 

through a third party 

telecommunication provider, third party 

wireless network, the SFTI network, or 

a combination thereof. 

Users would not be required to use 

any of their bandwidth for Access or 

Connectivity unless they wished to do 

so. Rather, a User would only receive 

the Access and Connectivity that it 

selected, and a User could change what 

Access or Connectivity it receives at any 

time, subject to authorization from the 

third party system or data provider, the 

Exchange or relevant Affiliate SRO. 

In addition, the Exchange believes 

that providing connectivity to testing 

and certification feeds would 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 such feeds would 

provide Users an environment in which 

to conduct tests with non-live data, 

including testing for upcoming releases 

and product enhancements or the User’s 

own software development, and allow 

Users to certify conformance to any 

applicable technical requirements. 

Similarly, the Exchange believes that 

providing connectivity to DTCC would 

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 it would provide 

efficient connection to clearing, fund 

transfer, insurance, and settlement 

services. 

Finally, the Exchange believes that 

the proposal to establish procedures and 

waive certain fees in connection with 

the movement of equipment at the data 

center in a Migration would 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 it would allow the 

Exchange to have sufficient space in the 

data center to accommodate demand on 

an equitable basis for the foreseeable 

future. The Exchange believes that the 

waiver of overlapping monthly 

recurring charges, the waiver of the 

Service-Related Fees, and the waiver of 

one month of monthly recurring charges 

in a Migration would be reasonable 

because Users would be moving at the 

Exchange’s request and the waivers 

would help to alleviate the burden on 

the Users that are required to move. 

The Exchange also believes that the 

proposed fee change is consistent with 

Section 6(b)(4) of the Act,57 in 

particular, because it provides for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

members, issuers and other persons 

using its facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

The Exchange believes that the 

proposed fees changes are consistent 

with Section 6(b)(4) of the Act for 

multiple reasons. The Exchange 

operates in a highly competitive market 

in which exchanges offer co-location 

services as a means to facilitate the 

trading and other market activities of 

those market participants who believe 

that co-location enhances the efficiency 

of their operations. Accordingly, fees 

charged for co-location services would 

be constrained by the active competition 

for the order flow of, and other business 

from, such market participants. If a 

particular exchange charges excessive 

fees for colocation services, affected 

market participants will opt to terminate 

their colocation arrangements with that 

exchange, and adopt a possible range of 

alternative strategies, including placing 

their servers in a physically proximate 

location outside the exchange’s data 

center (which could be a competing 

exchange), or pursuing strategies less 

dependent upon the lower exchange-toparticipant latency associated with colocation. Accordingly, the exchange 

charging excessive fees would stand to 

lose not only co-location revenues but 

also the liquidity of the formerly colocated trading firms, which could have 

additional follow-on effects on the 

market share and revenue of the affected 

exchange. 

The Exchange believes that the 

services and fees proposed herein are 

equitably allocated and not unfairly 

discriminatory because, in addition to 

the services being completely voluntary, 

they would be available to all Users on 

an equal basis (i.e., the same co-location 

services would be available to all Users). 

All Users that voluntarily elected to 

receive a co-location service would be 

charged the same amount for the same 

service. 

The Exchange believes that charging 

distinct fees for different co-location 

services would be reasonable and not 

unfairly discriminatory because not all 

Users would need, or wish, to utilize the 

same co-location services. The proposed 

variety of services would allow Users to 

select which co-location services to use, 

based on their business needs, and 

Users would only be charged for the 

services that they selected. By charging 

only those Users that utilize a colocation service the related fee, those 

Users that directly benefit from a service 

would support its cost. 

Similarly, the Exchange believes the 

proposed fees are reasonable because 

they would allow the Exchange to 

defray or cover the costs associated with 

offering different co-location services 

while providing Users the benefit of 

such services, including the benefits of, 

among other things, choosing among the 

array of different options for cabinets, 

power, LCN and IP network access, 

Connectivity, Access, hosting and 

services; having an efficient connection 

to clearing, fund transfer, insurance, and 

settlement services; and having an 

environment in which to conduct tests 

with nonlive data and to certify 

conformance to any applicable technical 

requirements. 

The Exchange believes that the 

proposed charges are reasonable, 

equitably allocated and not unfairly 

discriminatory because the Exchange 


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58 15 U.S.C. 78f(b)(8). 

would offer co-location services as 

conveniences to Users, but in order to 

do so would have to provide, maintain 

and operate the data center facility 

hardware and technology infrastructure. 

The Exchange would need to expand 

the network infrastructure to keep pace 

with the number of services available to 

Users, including any increasing demand 

for bandwidth, and to establish any 

additional administrative controls. The 

Exchange would have to 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, the Exchange would have to 

maintain multiple connections to each 

Third Party Data Feed, Third Party 

System, and DTCC, allowing the 

Exchange 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 

that redistribution fees charged by 

providers of Third Party Data Feeds 

would be passed through to the User, 

without change to the fee. If not passed 

through, the cost of the re-distribution 

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 User, 

allowing the User to better assess the 

cost of the connectivity to a Third Party 

Data Feed by seeing the individual 

components of the cost, i.e. the 

Exchange’s fee and the 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 would 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. 

The Exchange believes that the 

proposal to establish procedures and 

waive certain fees in connection with 

the movement of equipment at the data 

center in a Migration would provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

members, issuers and other persons 

using its facilities and would not 

unfairly discriminate between 

customers, issuers, brokers or dealers, 

because pursuant to the proposed 

procedures for selecting which Users 

would be required to move within the 

data center, a User would be required to 

move only if the Exchange would be 

able to accommodate such User’s 

current space and power requirements 

at the new location, so as to minimize 

the disruption to the User. The 

Exchange believes that the waiver of 

overlapping monthly recurring charges, 

the waiver of the Service-Related Fees, 

and the waiver of one month of monthly 

recurring charges in a Migration would 

be reasonable because Users would be 

moving at the Exchange’s request and 

the waivers would help to alleviate the 

burden on the Users that are required to 

move. 

Finally, the Exchange believes that 

the proposed rule change to delete the 

current fees and credits set forth on the 

Price List would remove impediments 

to and perfect the mechanism of a free 

and open market and a national market 

system because the Exchange ceased 

operations and terminated membership 

status of all ETP Holders, and therefore 

these fees and credits are now moot. 

Because the Exchange will file a 

separate proposed rule change to 

establish fees and credits for the relaunch of operations, the Exchange 

believes that leaving the current Price 

List as is could result in confusion 

among members, the public, and the 

Commission, which may believe that 

these are the fees that would be 

applicable for the re-launch. To reduce 

such potential confusion and to promote 

transparency, the Exchange proposes to 

delete these fees and credits. 

For the foregoing reasons, the 

Exchange believes that the proposal is 

consistent with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,58 the Exchange believes that the 

proposed rule change would not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act because all of 

the proposed services are completely 

voluntary. 

The Exchange believes that offering 

co-location services would not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act because such 

proposed co-location services would 

provide market participants with the 

option to co-locate, but would not 

require it. Use of any co-location 

services would be completely voluntary, 

and each market participant would be 

able to determine whether to use colocation services based on the 

requirements of its business operations. 

In this way, the proposed changes 

would enhance competition by 

providing market participants with 

additional options for their business 

operations. 

In addition, the proposed co-location 

services would be available to all Users 

on an equal basis. All Users that 

voluntarily selected to receive colocation services, including cabinets, 

LCN and IP network access, 

Connectivity, Access and other services, 

would be charged the same amount for 

the same services. In the case of a 

Migration, all Users would be subject to 

the same proposed procedures for 

selecting which Users would be 

required to move within the data center 

and what fees would be affected. 

Further, the proposed changes would 

not impose any burden on competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the Price List would set forth 

the same co-location services and fees 

offered by the Affiliate SROs, with only 

non-substantive differences from the 

Affiliate SRO Price Lists, allowing Users 

to benefit from having consistent 

products and pricing across the 

Exchange and the three Affiliate SROs. 

The Exchange operates in a highly 

competitive market in which exchanges 

offer co-location services as a means to 

facilitate the trading and other market 

activities of those market participants 

who believe that co-location enhances 

the efficiency of their operations. 

Accordingly, fees charged for colocation services are constrained by the 

active competition for the order flow of, 

and other business from, such market 

participants. If a particular exchange 

charges excessive fees for co-location 

services, affected market participants 

will opt to terminate their co-location 

arrangements with that exchange, and 

adopt a possible range of alternative 

strategies, including placing their 

servers in a physically proximate 

location outside the exchange’s data 

center (which could be a competing 

exchange), or pursuing strategies less 

dependent upon the lower exchange-toparticipant latency associated with colocation. Accordingly, the exchange 

charging excessive fees would stand to 

lose not only co-location revenues but 

also the liquidity of the formerly colocated trading firms, which could have 

additional follow-on effects on the 


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Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Notices 26327 

59 15 U.S.C. 78s(b)(3)(A)(iii). 

60 17 CFR 240.19b–4(f)(6). 

61 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

62 17 CFR 240.19b–4(f)(6). 

63 17 CFR 240.19b–4(f)(6)(iii). 

64For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

65 15 U.S.C. 78s(b)(2)(B). 

66 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. 

market share and revenue of the affected 

exchange. 

For the reasons described above, the 

Exchange believes that the proposed 

rule change reflects this competitive 

environment. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 59 and Rule 

19b–4(f)(6) thereunder.60 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder.61

A proposed rule change filed under 

Rule 19b–4(f)(6) 62 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),63 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the proposed rule change 

may become operative immediately 

upon filing. The Exchange believes that 

such waiver is consistent with the 

protection of investors and the public 

interest because it would allow the 

Exchange to provide the proposed colocation services to coincide with the 

launch of the Exchange. The Exchange 

also notes that waiver would promote 

transparency and potentially reduce 

confusion among members, the public, 

and the Commission that could result 

from maintaining the former fees and 

credits on the Price List. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest as it would allow the 

Exchange to offer co-location services 

without undue delay. Accordingly, the 

Commission waives the 30-day 

operative delay and designates the 

proposed rule change operative upon 

filing.64

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 65 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSENAT–2018–07 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–2018–07. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–NYSENAT–2018–07 and 

should be submitted on or before June 

27, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.66

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–12111 Filed 6–5–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83357; File No. SR– 

NYSEAMER–2018–24] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule 7.37E and 

Rule 7.45E With Respect to NYSE 

National’s Reopening of Trading and 

Reactivating Connection to the 

Securities Information Processors 

May 31, 2018. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on May 18, 

2018, NYSE American LLC (the 

‘‘Exchange’’ or ‘‘NYSE American’’) 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 self-regulatory 

organization. The Commission is 


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