[Federal Register Volume 89, Number 197 (Thursday, October 10, 2024)]
[Notices]
[Pages 82282-82284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23415]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-101251; File No. SR-NYSECHX-2024-30]


Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the 
Connectivity Fee Schedule

October 4, 2024.
    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 September 20, 2024, the NYSE Chicago, Inc. (``NYSE Chicago'' 
or the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Connectivity Fee Schedule (``Fee 
Schedule'') to delete the currently-filed ``Optic Low Latency Circuit--
1 Gb'' service as obsolete. 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.

[[Page 82283]]

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 amend the Connectivity Fee Schedule (``Fee 
Schedule'') to delete the currently-filed ``Optic Low Latency Circuit--
1 Gb'' service as obsolete.
    In 2023, the Exchange filed to amend the Fee Schedule to add 
several ``FIDS Circuits'' available at the Mahwah, New Jersey data 
center (``MDC''),\4\ including Optic Low Latency Circuits in 1 Gb, 10 
Gb, and 40 Gb sizes.\5\
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    \4\ Through its Fixed Income and Data Services (``FIDS'') 
(previously ICE Data Services) business, Intercontinental Exchange, 
Inc. (``ICE'') operates the MDC. The Exchange and New York Stock 
Exchange LLC, NYSE American LLC, NYSE Arca, Inc. and NYSE National, 
Inc. (together, the ``Affiliate SROs'') are indirect subsidiaries of 
ICE.
    \5\ See Securities Exchange Act Release No. 99167 (December 14, 
2023), 88 FR 88141 (December 20, 2023) (SR-NYSECHX-2023-24).
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    Since that time, no Users \6\ have opted to utilize the 1 Gb Optic 
Low Latency Circuit. Some market participants have informed the 
Exchange that the 1 Gb size of the Optic Low Latency Circuit is too 
small for their needs. Because there is no customer demand for the 1 Gb 
Optic Low Latency Circuit, the Exchange proposes to discontinue the 
service as obsolete.
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    \6\ For purposes of the Exchange's colocation services, a 
``User'' means any market participant that requests to receive 
colocation services directly from the Exchange. See Securities 
Exchange Act Release No. 87408 (October 28, 2019), 84 FR 58778 at 
n.6 (November 1, 2019) (SR-NYSECHX-2019-12). As specified in the Fee 
Schedule, a User that incurs colocation fees for a particular 
colocation service pursuant thereto would not be subject to 
colocation fees for the same colocation service charged by the 
Affiliate SROs. Each Affiliate SRO has submitted substantially the 
same proposed rule change to propose the changes described herein. 
See SR-NYSE-2024-61, SR-NYSEAMER-2024-59, SR-NYSEARCA-2024-81, and 
SR-NYSENAT-2024-27.
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General
    The proposed changes would not apply differently to distinct types 
or sizes of market participants; rather, they would apply to all Users 
equally. As is currently the case, the Fee Schedule would be applied 
uniformly to all Users. The proposed changes are not intended to 
address any other issues and the Exchange is not aware of any problems 
that Users would have in complying with the proposed change.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\7\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\8\ in particular, because it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest 
and because it is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that discontinuing offering the 1 Gb Optic 
Low Latency Circuit would perfect the mechanisms of a free and open 
market and a national market system and, in general, protect investors 
and the public interest. Demand for the 1 Gb Optic Low Latency Circuit 
is non-existent and there are currently no customers that subscribe to 
the service. The Exchange does not expect demand to rebound given 
customers' assessment that the 1 Gb-size of the circuit is too small 
for their needs. Removing references to the fees for this obsolete 
service from the Fee Schedule would make the Fee Schedule easier to 
read, understand, and administer.
    The Exchange believes that the proposed rule change does not 
significantly affect the protection of investors or the public 
interest. The proposed rule change would delete an obsolete service 
from the Fee Schedule, which would enhance transparency and alleviate 
potential customer confusion.
    The Exchange believes that removing this obsolete service from the 
Fee Schedule would not permit unfair discrimination between customers, 
issuers, brokers, or dealers. The proposed changes would apply equally 
to all Users: the obsolete 1 Gb Optic Low Latency Circuit would be 
removed for all customers.
    For these reasons, the Exchange believes that the proposal is 
consistent with the Act.

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

    The Exchange believes that the proposal will not impose any burden 
on competition that is not necessary or appropriate in furtherance of 
the purposes of Section 6(b)(8) of the Act.\9\ The proposed rule change 
is not designed to address any competitive issues but rather is 
designed to enhance the clarity and transparency of the Fee Schedule 
and alleviate possible customer confusion that may arise from the 
inclusion of obsolete services.
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    \9\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ 
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.\12\
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii). 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.
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    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

[[Page 82284]]

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) \13\ of the Act to determine 
whether the proposed rule change should be approved or disapproved.
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    \13\ 15 U.S.C. 78s(b)(2)(B).
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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

    <bullet> Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#7d0f081118501e1210101813090e3d0e181e531a120b"><span class="__cf_email__" data-cfemail="2f5d5a434a024c4042424a415b5c6f5c4a4c01484059">[email protected]</span></a>. Please include 
file number SR-NYSECHX-2024-30 on the subject line.

Paper Comments

    <bullet> 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-NYSECHX-2024-30. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for website viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE, 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to file number SR-NYSECHX-2024-30 and should 
be submitted on or before October 31, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-23415 Filed 10-9-24; 8:45 am]
BILLING CODE 8011-01-P


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