Federal Register / Vol. 86, No. 104 / Wednesday, June 2, 2021 / Notices 29601 

2See United States Postal Service, Delivering for 

America: Our Vision and Ten-Year Plan to Achieve 

Financial Sustainability and Service Excellence, 

March 23, 2021, at 53, available at https://

about.usps.com/what/strategic-plans/delivering-foramerica/assets/USPS_Delivering-For-America.pdf. 

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

2 17 CFR 240.19b–4. 

advisory opinion from the Commission. 

See id. The registration instructions, 

which are available at https://

about.usps.com/what/strategic-plans/ 

delivering-for-america/#conference, 

direct interested persons to a website to 

register to participate using Zoom, and 

state that ‘‘[s]pace is limited. Unless all 

available spaces are taken, you will have 

until June 1, 2021, at 5:00 p.m. EDT to 

register.’’ 

The Commission establishes Docket 

No. N2021–2 to consider the Postal 

Service’s proposed changes to the 

service standards for First-Class Package 

Services. In conjunction with the 

announcement of its 10-Year Strategic 

Plan,2 the Postal Service proposes to 

revise the existing service standards for 

First-Class Package Services, which 

would ‘‘generally affect service on a 

nationwide or substantially nationwide 

basis.’’ Notice at 1 (quoting 39 U.S.C. 

3661(b)). The Postal Service asserts that 

its proposed approach would be similar 

to the changes proposed to Market 

Dominant First-Class Mail (letter- and 

flat-shaped mailpieces) in Docket 

N2021–1, because the First-Class 

Package Services service standards 

would also be adjusted to account for 

additional drive time between origin 

and destination processing facilities. 

See Notice at 2. However, the actual 

service standards that the Postal Service 

proposes to apply to First-Class Package 

Services would diverge from those 

proposed for First-Class Mail. See id. 

Specifically, the Postal Service states 

that its proposal for First-Class Package 

Services would expand the drive time 

for the 2-Day service standard to allow 

additional drive time to certain 

processing facilities. See id. 

Additionally, within the contiguous 

United States, the Postal Service states 

that its proposal would narrow the 

scope of the existing 3-Day service 

standard; instead the 4-Day and 5-Day 

service standards would apply to certain 

First-Class Package Services traveling 

longer distances between origin and 

destination processing facilities. Id. 

Moreover, within the non-contiguous 

United States and certain territories, the 

Postal Service plans to increase service 

standards by up to one day. Id. The 

Postal Service adds that a 4-Day service 

standard would apply for certain 

volume, while all other volume to noncontiguous destinations would be 

subject to the 5-Day service standard. Id. 

The Postal Service must file its formal 

request for an advisory opinion with the 

Commission at least 90 days before 

implementing any of the proposed 

changes. 39 CFR 3020.112. This formal 

request must certify that the Postal 

Service has made good faith efforts to 

address the concerns raised at the prefiling conference and meet other content 

requirements. Id. section 3020.113. 

After the Postal Service files the formal 

request for an advisory opinion, the 

Commission will set forth a procedural 

schedule and provide additional 

information in a notice and order that 

will be published in the Federal 

Register. Id. section 3020.110. Before 

issuing its advisory opinion, the 

Commission must provide an 

opportunity for a formal, on-the-record 

hearing pursuant to 5 U.S.C. 556 and 

557. 39 U.S.C. 3661(c). The procedural 

rules in 39 CFR part 3020 apply to 

Docket No. N2021–2. 

Pursuant to 39 U.S.C. 3661(c) and 39 

CFR 3020.111(d), the Commission 

appoints Mallory L. Smith to represent 

the interests of the general public 

(Public Representative) in this 

proceeding. Pursuant to 39 CFR 

3020.111(d), the Secretary shall arrange 

for publication of this Order in the 

Federal Register. 

It is ordered: 

1. The Commission establishes Docket 

No. N2021–2 to consider the Postal 

Service’s proposed changes to the 

service standards for First-Class Package 

Services. 

2. The Postal Service shall conduct a 

virtual pre-filing conference regarding 

its proposal on June 8, 2021, from 1:00 

p.m. to 3:00 p.m. Eastern Daylight Time. 

3. Pursuant to 39 U.S.C. 3661(c) and 

39 CFR 3020.111(d), Mallory L. Smith is 

appointed to serve as an officer of the 

Commission (Public Representative) to 

represent the interests of the general 

public in this proceeding. 

4. Pursuant to 39 CFR 3020.111(d), 

the Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Erica A. Barker, 

Secretary. 

[FR Doc. 2021–11517 Filed 6–1–21; 8:45 am] 

BILLING CODE 7710–FW–P 

RAILROAD RETIREMENT BOARD 

Actuarial Advisory Committee With 

Respect to the Railroad Retirement 

Account; Notice of Public Meeting 

Notice is hereby given in accordance 

with Public Law 92–463 that the 

Actuarial Advisory Committee will hold 

a virtual meeting on June 7, 2021, at 

9:00 a.m. (Central Daylight Time) on the 

conduct of the 28th Actuarial Valuation 

of the Railroad Retirement System. The 

agenda for this meeting will include a 

discussion of the results and 

presentation of the 28th Actuarial 

Valuation. The text and tables that 

constitute the Valuation will have been 

prepared in draft form for review by the 

Committee. It is expected that this will 

be the last meeting of the Committee 

before publication of the Valuation. 

The meeting will be open to the 

public. Persons wishing to submit 

written statements, make oral 

presentations, or attend the meeting 

should address their communications or 

notices to Patricia Pruitt 

(Patricia.Pruitt@rrb.gov) so that 

information on how to join the virtual 

meeting can be provided. 

Dated: May 27, 2021. 

Stephanie Hillyard, 

Secretary to the Board. 

[FR Doc. 2021–11567 Filed 6–1–21; 8:45 am] 

BILLING CODE P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92033; File Nos. SR–NYSE– 

2021–14, SR–NYSEAMER–2021–10, SR– 

NYSEArca–2021–13, SR–NYSECHX–2021– 

03, SR–NYSENAT–2021–04] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC, NYSE 

American LLC, NYSE Arca, Inc., NYSE 

Chicago, Inc., and NYSE National, Inc.; 

Order Instituting Proceedings To 

Determine Whether To Approve or 

Disapprove Proposed Rule Changes 

To Amend the Schedule of Wireless 

Connectivity Fees and Charges To Add 

Circuits for Connectivity Into and Out 

of the Data Center in Mahwah, New 

Jersey 

May 26, 2021. 

I. Introduction 

On February 12, 2021, New York 

Stock Exchange LLC (‘‘NYSE’’), NYSE 

American LLC (‘‘NYSE American’’), 

NYSE Arca, Inc. (‘‘NYSE Arca’’), NYSE 

Chicago, Inc. (‘‘NYSE Chicago’’), and 

NYSE National, Inc. (‘‘NYSE National’’) 

(collectively, the ‘‘Exchanges’’) each 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Exchange Act’’ 

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


jbell on DSKJLSW7X2PROD with NOTICES
29602 Federal Register / Vol. 86, No. 104 / Wednesday, June 2, 2021 / Notices 

3See Securities Exchange Act Release Nos. 91217 

(February 26, 2021), 86 FR 12715 (March 4, 2021) 

(SR–NYSE–2021–14) (‘‘Notice’’); 91218 (February 

26, 2021), 86 FR 12744 (March 4, 2021) (SR– 

NYSEAMER–2021–10); 91216 (February 26, 2021), 

86 FR 12735 (March 4, 2021) (SR–NYSEArca–2021– 

13); 91219 (February 26, 2021), 86 FR 12724 (March 

4, 2021) (SR–NYSECHX–2021–03); and 91215 

(February 26, 2021), 86 FR 12752 (March 4, 2021) 

(SR–NYSENAT–2021–04) (collectively, the 

‘‘Notices’’). Comments received on the Notices are 

available on the Commission’s website at: https:// 

www.sec.gov/comments/sr-nyse-2021-14/ 

srnyse202114.htm. For ease of reference, citations to 

the Notice(s) are to the Notice for SR–NYSE–2021– 

14. 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release No. 91490 

(April 7, 2021), 86 FR 19313 (April 13, 2021). The 

Commission designated June 2, 2021, as the date by 

which it should approve, disapprove, or institute 

proceedings to determine whether to disapprove the 

proposed rule changes. 

6 15 U.S.C. 78s(b)(2)(B). 

7See Notice, supra note 3, at 12715. For purposes 

of the Exchanges’ colocation services, a ‘‘User’’ 

means any market participant that requests to 

receive colocation services directly from the 

Exchanges. See id. at 12715 n.4 (citing Securities 

Exchange Act Release No. 76008 (September 29, 

2015), 80 FR 60190 (October 5, 2015) (SR–NYSE– 

2015–40)). NCL Customers do not co-locate any 

equipment in the Mahwah Data Center. See id. at 

12720 n.10. 

8See id. at 12715–16. 

9See id. at 12716. 

10See 15 U.S.C. 78c(a)(1) (‘‘The term ‘exchange’ 

means any organization, association, or group of 

persons, whether incorporated or unincorporated, 

which constitutes, maintains, or provides a market 

place or facilities for bringing together purchasers 

and sellers of securities or for otherwise performing 

with respect to securities the functions commonly 

performed by a stock exchange as that term is 

generally understood, and includes the market 

place and the market facilities maintained by such 

exchange.’’). 

11See 15 U.S.C. 78c(a)(2) (‘‘The term ‘facility’ 

when used with respect to an exchange includes its 

premises, tangible or intangible property whether 

on the premises or not, any right to the use of such 

premises or property or any service thereof for the 

purpose of effecting or reporting a transaction on an 

exchange (including, among other things, any 

system of communication to or from the exchange, 

by ticker or otherwise, maintained by or with the 

consent of the exchange), and any right of the 

exchange to the use of any property or service.’’). 

12See Notice, supra note 3, at 12716; see also 

Securities Exchange Act Release No. 90209 (October 

15, 2020), 85 FR 67044 (October 21, 2020) (SR– 

NYSE–2020–05, SR–NYSEAMER–2020–05, SR– 

NYSEArca–2020–08, SR–NYSECHX–2020–02, SR– 

NYSENAT–2020–03, SR–NYSE–2020–11, SR– 

NYSEAMER–2020–10, SR–NYSEArca–2020–15, 

SR–NYSECHX–2020–05, SR–NYSENAT–2020–08) 

(‘‘Wireless Approval Order’’). 

13See Notice, supra note 3, at 12716; see also 

Intercontinental Exchange, Inc. v. SEC, No. 20–1470 

(D.C. Cir. 2020). 

14See id. at 12716. 

15 IDS operates through several different 

Intercontinental Exchange, Inc. (‘‘ICE’’) affiliates, 

including NYSE Technologies Connectivity, Inc., an 

indirect subsidiary of NYSE. The Exchanges 

themselves are indirect subsidiaries of ICE. See 

Wireless Approval Order, supra note 12, at 67045. 

16See Notice, supra note 3, at 12716. 

17See id. 

18See id. 

19These data centers include: (1) 111 Eighth 

Avenue, New York, NY; (2) 32 Avenue of the 

Americas, New York, NY; (3) 165 Halsey, Newark, 

NJ; (4) Secaucus, NJ (the ‘‘Secaucus Access 

Center’’); (5) Carteret, NJ (the ‘‘Carteret Access 

Center’’); and (6) Weehawken, NJ. Optic Access 

circuits are available in 1 Gb, 10 Gb, and 40 Gb 

sizes. See id. 

20Optic Low Latency circuits are available in 1 

Gb, 10 Gb, and 40 Gb sizes. See id. 

21The proposed types of services and amounts of 

charges are as follows: Optic Access Circuit—1 Gb 

($1,500 initial charge plus $1,500 monthly charge); 

Optic Access Circuit—10 Gb ($5,000 initial charge 

plus $2,500 monthly charge); Optic Access 

Circuit—40 Gb ($5,000 initial charge plus $6,000 

monthly charge); Optic Low Latency Circuit—1 Gb 

($1,500 initial charge plus $2,750 monthly charge); 

Optic Low Latency Circuit—10 Gb ($5,000 initial 

charge plus $3,950 monthly charge); and Optic Low 

Latency Circuit—40 Gb ($5,000 initial charge plus 

$8,250 monthly charge). See id. 

22See id. 

23See id. 

a proposed rule change to amend their 

schedule of Wireless Connectivity Fees 

and Charges (‘‘Fee Schedule’’) to (1) add 

circuits for connectivity into and out of 

the data center in Mahwah, New Jersey 

(‘‘Mahwah Data Center’’); (2) add 

services available to customers of the 

Mahwah Data Center that are not 

colocation Users; and (3) change the 

name of the Fee Schedule to ‘‘Mahwah 

Wireless, Circuits, and Non-Colocation 

Connectivity Fees and Charges.’’ The 

proposed rule changes were published 

for comment in the Federal Register on 

March 4, 2021.3 On April 7, 2021, 

pursuant to Section 19(b)(2) of the Act,4

the Commission designated a longer 

period within which to either approve 

the proposed rule changes, disapprove 

the proposed rule changes, or institute 

proceedings to determine whether to 

disapprove the proposed rule changes.5

This order institutes proceedings under 

Section 19(b)(2)(B) of the Exchange Act 6

to determine whether to approve or 

disapprove the proposed rule changes. 

II. Description of the Proposed Rule 

Changes 

The Exchanges propose to amend the 

Fee Schedule to add services (‘‘NCL 

Services’’) and related fees available to 

customers of the data center in Mahwah 

Data Center that are not colocation 

Users (‘‘NCL Customers’’), as well as 

circuits into and out of the Mahwah 

Data Center that are available to both 

colocation Users and NCL Customers.7

The Exchanges also propose changing 

the name of the Fee Schedule from 

‘‘Wireless Connectivity Fees and 

Charges’’ to ‘‘Mahwah Wireless, 

Circuits, and Non-Colocation 

Connectivity Fees and Charges.’’ 8 The 

Exchanges expect the proposed changes 

to be operative 60 days after the 

proposed rule changes become 

effective.9

The Exchanges state that they make 

the current proposals solely as a result 

of their determination that the 

Commission’s interpretations of the 

Act’s definitions of the terms 

‘‘exchange’’ 10 and ‘‘facility’’ 11 apply to 

connectivity services described herein 

that are offered by entities other than 

the Exchanges.12 The Exchanges state 

that they disagree with the 

Commission’s interpretations, deny the 

services covered herein are offerings of 

an ‘‘exchange’’ or a ‘‘facility’’ thereof, 

and have sought review of the 

Commission’s interpretations as 

expressed in the Wireless Approval 

Order in the Court of Appeals for the 

District of Columbia Circuit.13

A. Mahwah Circuits 

According to the Exchanges, 

customers can connect into and out of 

the Mahwah Data Center using either 

wireless connections or wired fiber 

optic circuits.14 Both ICE Data Services 

(‘‘IDS’’) 15 and third-party 

telecommunications service providers 

offer wired circuits into and out of the 

Mahwah Data Center.16 The Exchanges 

propose to add to the Fee Schedule the 

circuit options offered by IDS to both 

colocation Users and NCL Customers to 

connect into and out of the Mahwah 

Data Center.17

Specifically, the Exchanges propose to 

amend the Fee Schedule to add two 

different types of circuits, each available 

in three different sizes, under the new 

heading ‘‘C. Mahwah Circuits.’’ 18 First, 

the Exchanges propose to amend the Fee 

Schedule to add ‘‘Optic Access’’ 

circuits, which are circuits that IDS 

operates and that customers can use to 

connect between the Mahwah Data 

Center and IDS access centers at six 

third-party owned data centers.19

Second, the Exchanges propose to 

amend the Fee Schedule to add lowerlatency Optic Low Latency circuits that 

IDS operates and that customers can use 

to connect between the Mahwah Data 

Center and IDS’s Secaucus Access 

Center or Carteret Access Center.20 The 

Exchanges propose to add a chart to the 

Fee Schedule to include these circuits, 

setting forth each type of service and the 

associated amounts of initial plus 

monthly fees.21

B. Non-Colocation Services 

The Exchanges propose to amend the 

Fee Schedule to add several services 

available to NCL Customers as well as 

several notes under the new heading ‘‘D. 

Non-Colocation (‘‘NCL’’) Services.’’ 22

According to the Exchanges, these are 

the services that IDS offers within the 

Mahwah Data Center that are not 

colocation services.23


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24See id. 

25See id. 

26A port is connected to a circuit by using a cross 

connect. See id. at 12720; see also infra note 65 and 

accompanying text. 

27The proposed types of services and the 

Exchanges’ descriptions of them, along with the 

associated amounts of initial plus monthly fees, are 

as follows: NCL IDS Network Access—10 Gb, a 10 

Gb IDS Network port ($10,000 initial charge plus 

$15,250 monthly charge); and NCL IDS Network 

Access—40 Gb, a 40 Gb IDS Network port ($10,000 

initial charge plus $19,750 monthly charge). See 

Notice, supra note 3, at 12716–17. 

28See id. at 12717. 

29See id. 

30Proposed Note 1 states that when an NCL 

Customer purchases access to the IDS Network, it 

receives the ability to access the trading and 

execution systems of the NYSE, NYSE American, 

NYSE Arca, NYSE Chicago, and NYSE National 

(together, the Exchange Systems) as well as of 

Global OTC (the Global OTC System), subject, in 

each case, to authorization by the NYSE, NYSE 

American, NYSE Arca, NYSE Chicago, NYSE 

National, or Global OTC, as applicable. Proposed 

Note 1 also states that each Exchange listed above 

offers access to its Exchange Systems to its members 

and Global OTC offers access to the Global OTC 

System to its subscribers, such that an NCL 

Customer does not have to purchase a service that 

includes access to the IDS Network to obtain access 

to Exchange Systems or the Global OTC System. See 

id. 

31Proposed Note 1 provides that these ‘‘Included 

Data Products’’ are as follows: NMS feeds—CTS, 

CQS, and OPRA; NYSE; NYSE American; NYSE 

American Options; NYSE Arca; NYSE Arca 

Options; NYSE Best Quote and Trades (BQT); NYSE 

Bonds; NYSE Chicago; and NYSE National. See id. 

32Proposed Note 1 also states that when an NCL 

Customer purchases access to the IDS Network, it 

receives connectivity to any of the Included Data 

Products that it selects, subject to any necessary 

technical provisioning requirements, authorization, 

and licensing by the provider of the Included Data 

Feed. Fees for the Included Data Products are 

charged by the provider of such Included Data 

Products. An NCL Customer can change the 

Included Data Products to which it receives 

connectivity at any time, subject to authorization 

from the provider of such Included Data Product. 

Proposed note 1 also states that because access to 

the IDS Network is not the exclusive method to 

connect to the Included Data Products, an NCL 

Customer does not have to purchase a service that 

includes access to the IDS Network to connect to 

such Included Data Products. See id. 

33The Exchanges state that they propose to adopt 

substantially similar services and fees as set forth 

in the Exchanges’ Price List regarding colocation. 

See id. (citing Securities Exchange Act Release No. 

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

2017) (SR–NYSE–2016–45)). 

34See id. 

35The Exchanges state that in order to obtain 

access to a Third Party System, an NCL Customer 

enters into an agreement with the relevant thirdparty content service provider, pursuant to which 

the third-party content service provider charges the 

NCL Customer for access to the Third Party System. 

When such services are requested, IDS establishes 

a connection between the NCL Customer and the 

relevant third party content service provider over 

the IDS Network. IDS charges the NCL Customer for 

the connectivity to the Third Party System. An NCL 

Customer only receives, and is only charged by IDS 

for, connectivity to each Third Party System for 

which the customer enters into an agreement with 

the third-party content service provider. According 

to the Exchanges, neither the Exchanges nor IDS has 

an affiliation with the providers of the Third Party 

Systems. Establishing an NCL Customer’s access to 

a Third Party System does not give either IDS or 

the Exchanges any right to use the Third Party 

Systems. Connectivity to a Third Party System does 

not provide access or order entry to the Exchange’s 

execution system, and an NCL Customer’s 

connection to a Third Party System is not through 

the Exchange’s execution system. See id. 

36Specifically, when an NCL Customer requests 

access to a Third Party System, IDS identifies the 

applicable third-party market or other content 

service provider and the bandwidth connection it 

requires. See id. 

37The Exchanges propose the following monthly 

fees per connection: 1Mb ($200 per connection 

monthly charge); 3Mb ($400 per connection 

monthly charge); 5Mb ($500 per connection 

monthly charge); 10Mb ($800 per connection 

monthly charge); 25Mb ($1,200 per connection 

monthly charge); 50Mb ($1,800 per connection 

monthly charge); 100Mb ($2,500 per connection 

monthly charge); 200Mb ($3,000 per connection 

monthly charge); and 1Gb, $3,500 per connection 

monthly charge. See id. at 12717–18. 

38See id. at 12718. 

39See id. 

40Proposed Note 2 would further provide that 

these ‘‘The Third Party Systems’’ are as follows: 

American Trading Group (ATG); BM&F Bovespa; 

Boston Options Exchange (BOX), Canadian 

Securities Exchange (CSE); Cboe BYX Exchange 

(CboeBYX), Cboe BZX Exchange (CboeBZX), Cboe 

EDGA Exchange (CboeEDGA), and Cboe EDGX 

Exchange (CboeEDGX); Cboe Exchange (Cboe) and 

Cboe C2 Exchange (C2); Chicago Mercantile 

Exchange (CME Group); Credit Suisse; Euronext 

Optiq Cash and Derivatives Unicast (EUA); 

Euronext Optiq Cash and Derivatives (Production); 

Investor Exchange (IEX); ITG TriAct Matchnow; 

Long Term Stock Exchange (LTSE); Members 

Exchange (MEMX); MIAX Options, MIAX PEARL 

Options, MIAX PEARL Equities, and MIAX 

Emerald; Morgan Stanley; Nasdaq; NASDAQ 

Canada (CXC, CXD, CX2); NASDAQ ISE; Neo 

Aequitas; NYFIX Marketplace; Omega; OneChicago; 

OTC Markets Group; TD Ameritrade; and TMX 

Group. See id. 

1. IDS Network Ports 

The Exchanges propose to amend the 

Fee Schedule to add services that IDS 

offers enabling NCL Customers to 

connect to the IDS Network in the 

Mahwah Data Center.24 The Exchanges 

describe the ‘‘IDS Network’’ as a wide 

area network available in the Mahwah 

Data Center and other access centers.25

The Exchanges propose to add a chart 

to the Fee Schedule setting forth and 

describing each type of IDS Network 

Port providing NCL Customers access to 

IDS’s network,26 along with the 

associated amounts of initial plus 

monthly fees.27

The Exchanges also propose to add to 

the Fee Schedule several notes 

regarding these services, which they 

state are based on General Notes 4, 5, 

and 6 of the Exchanges’ Price List 

regarding colocation.28 Specifically, the 

Exchanges propose to add the heading 

‘‘NCL Notes’’ after the tables in the 

proposed section of the Fee Schedule 

titled ‘‘D. Non-Colocation (‘‘NCL’’) 

Services.’’ 29 Proposed Note 1, titled 

‘‘Note 1: IDS Network,’’ would establish 

that when an NCL Customer purchases 

access to the IDS Network, the NCL 

Customer would receive: (a) The ability 

to access the trading and execution 

systems of the Exchanges (‘‘Exchange 

Systems’’) as well as of the Global OTC 

System (‘‘Global OTC’’); 30 and (b) 

connectivity to any of the listed data 

products (‘‘Included Data Products’’) 31

that it selects.32

2. NCL Connectivity to Third Party 

Systems, Data Feeds, Testing and 

Certification Feeds, and DTCC 

The Exchanges also propose to amend 

the Fee Schedule to provide for the 

connectivity services that IDS offers for 

NCL Customers to Third Party Systems, 

Third Party Data Feeds, third party 

testing and certification feeds, and 

DTCC (each as defined below).33

a. Connectivity to Third Party Systems 

The Exchanges propose to specify in 

the Fee Schedule services that IDS offers 

NCL Customers to access the trading 

and execution services of Third Party 

markets and other content service 

providers (‘‘Third Party Systems’’) for a 

fee.34 According to the Exchanges, NCL 

Customers connect to Third Party 

Systems over the IDS Network.35 The 

Exchanges state that IDS charges a 

monthly recurring fee for connectivity 

to a Third Party System, which the 

Exchanges propose to add to their Fee 

Schedule.36 The Exchanges propose to 

add a chart to the Fee Schedule setting 

forth a description of each type of 

connectivity service to Third Party 

Systems over the IDS Network, along 

with the associated amount of monthly 

fees per connection.37

The Exchanges also propose to add 

Note 2, titled ‘‘Note 2: Third Party 

Systems,’’ to the section of the Fee 

Schedule titled ‘‘D. Non-Colocation 

(‘‘NCL’’) Services,’’ which would 

provide that when an NCL Customer 

purchases a connection that includes 

access to Third Party Systems, it 

receives access to Third Party Systems 

it selects subject to any technical 

provisioning requirements, 

authorization, and licensing from such 

Third Party System.38 Proposed Note 2 

also provides that fees for the Third 

Party Systems are charged by the 

provider of such Third Party System.39

In addition, proposed Note 2 states that 

the Exchanges are not the exclusive 

method to connect to Third Party 

Systems.40


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41See id. 

42The Exchanges state that IDS receives Third 

Party Data Feeds from multiple national securities 

exchanges and other content service providers at 

the Mahwah Data Center, and provides connectivity 

to that data to NCL Customers for a fee. According 

to the Exchanges, in order to connect to a Third 

Party Data Feed, an NCL Customer enters into a 

contract with the relevant third-party market or 

other content service provider, pursuant to which 

the content service provider charges the NCL 

Customer for the Third Party Data Feed. IDS 

receives the Third Party Data Feed over its fiber 

optic network and, after the data provider and NCL 

Customer enter into an agreement and IDS receives 

authorization from the data provider, IDS 

retransmits the data to the NCL Customer over the 

NCL Customer’s IDS Network port. IDS charges the 

NCL Customer for the connectivity to the Third 

Party Data Feed. An NCL Customer only receives, 

and is only charged for, connectivity to the Third 

Party Data Feeds for which it entered into contracts. 

With the exception of the IDS, ICE, and Global OTC 

feeds, neither the Exchanges nor IDS has any 

affiliation with the sellers of the Third Party Data 

Feeds. The Exchanges and IDS have no right to use 

the Third Party Data Feeds other than as a 

redistributor of the data. The Third Party Data 

Feeds do not provide access or order entry to the 

Exchange’s execution system. With the exception of 

the ICE feed, the Third Party Data Feeds do not 

provide access or order entry to the execution 

systems of the third party generating the feed. The 

Exchanges further represent that IDS receives Third 

Party Data Feeds via arms-length agreements and 

has no inherent advantage over any other 

distributor of such data. See id. 

43The monthly recurring fee is per Third Party 

Data Feed, with the exception that the monthly 

recurring fee for the ICE Data Services Consolidated 

Feeds (including the ICE Data Services 

Consolidated Feed Shared Farm feeds), Vela— 

SuperFeeds, and MSCI feeds vary by the bandwidth 

of the connection. According to the Exchanges, 

depending on its needs and bandwidth, an NCL 

Customer may opt to receive all or some of the 

Third Party Data Feeds. See id. 

44See id. 

45The fee would be labeled as a pass-through of 

a redistribution fee on the NCL Customer’s invoice. 

See id. 

46See id. 

47The proposed descriptions of these services 

and associated amount of monthly fees are as 

follows: BM&F Bovespa ($3,000); Boston Options 

Exchange (BOX) ($1,000); Canadian Securities 

Exchange (CSE) ($1,000); Cboe BZX Exchange 

(CboeBZX) and Cboe BYX Exchange (CboeBYX) 

($2,000); Cboe EDGX Exchange (CboeEDGX) and 

Cboe EDGA Exchange (CboeEDGA) ($2,000); Cboe 

Exchange (Cboe) and Cboe C2 Exchange (C2) 

($2,000); CME Group ($3,000); Euronext Optiq 

Compressed Cash ($900); Euronext Optiq 

Compressed Derivatives ($600); Euronext Optiq 

Shaped Cash ($1,200); Euronext Optiq Shaped 

Derivatives ($900); Financial Industry Regulatory 

Authority (FINRA) ($500); Global OTC ($100); ICE 

Data Services Consolidated Feed ≤100 Mb ($200); 

ICE Data Services Consolidated Feed >100 Mb to ≤1 

Gb ($500); ICE Data Services Consolidated Feed >1 

Gb ($1,000); ICE Data Services Consolidated Feed 

Shared Farm ≤100Mb ($200); ICE Data Services 

Consolidated Feed Shared Farm >100 Mb to ≤1 Gb 

($500); ICE Data Services Consolidated Feed Shared 

Farm >1 Gb ($1,000); ICE Data Services—ICE TMC 

($200); ICE Data Services PRD ($200); ICE Data 

Services PRD CEP ($400); Intercontinental 

Exchange (ICE) ($1,500); Investors Exchange (IEX) 

($1,000); ITG TriAct Matchnow ($1,000); Members 

Exchange (MEMX) ($3,000); MIAX Emerald 

($3,500); MIAX Options/MIAX PEARL Options 

($2,000); MIAX PEARL Equities ($2,500); Montre ́al 

Exchange (MX) ($1,000); MSCI 5 Mb ($500); MSCI 

25 Mb ($1,200); NASDAQ Stock Market ($2,000); 

NASDAQ OMX Global Index Data Service ($100); 

NASDAQ UQDF & UTDF ($500); NASDAQ Canada 

(CXC, CXD, CX2) ($1,500); NASDAQ ISE ($1,000); 

Neo Aequitas ($1,200); Omega ($1,000); OneChicago 

($1,000); OTC Markets Group ($1,000); Vela— 

SuperFeed <500 Mb ($250); Vela—SuperFeed >500 

Mb to <1.25 Gb ($800); Vela—SuperFeed >1.25 Gb 

($1,000); and TMX Group ($2,500). See id. at 

12718–19. 

48See id. at 12719. 

49See id. 

50Proposed Note 3 further provides that Third 

Party Data Feed providers may charge redistribution 

fees, and that when IDS is charged a redistribution 

fee, IDS passes the charge through to the customer, 

without change to the fee. The fee is labeled as a 

pass-through of a redistribution fee on the 

customer’s invoice. Proposed Note 3 also states that 

IDS does not charge third party markets or content 

providers for connectivity to their own feeds. See 

id. 

51See id. 

52See id. 

53See id. 

54The Exchanges state that connectivity to third 

party testing and certification feeds would be 

subject to any technical provisioning requirements, 

authorization, and licensing from the provider of 

the data feed; fees for such feeds are charged by the 

provider of the feed; and the Exchanges are not the 

exclusive method to connect to third-party testing 

and certification feeds. See id. 

55See id. 

56According to the Exchanges, in order to 

connect to DTCC, an NCL Customer enters into a 

contract with DTCC, pursuant to which DTCC 

charges the NCL Customer for the services 

provided. IDS receives the DTCC feed over its fiber 

optic network and, after DTCC and the NCL 

Customer entered into the services contract and IDS 

received authorization from DTCC, IDS provides 

connectivity to DTCC to the NCL Customer over the 

NCL Customer’s IDS Network port. The Exchanges 

state that connectivity to DTCC does not provide 

access or order entry to the Exchanges’ execution 

systems, and an NCL Customer’s connection to 

DTCC is not through the Exchanges’ execution 

systems. See id. at 12719–20. 

57The Exchanges state that connectivity to DTCC 

is subject to any technical provisioning 

requirements, authorization, and licensing from 

DTCC; fees for such feeds are charged by DTCC; and 

IDS is not the exclusive provider to connect to 

DTCC feeds. See id. at 12720. 

b. Connectivity to Third Party Data 

Feeds 

The Exchanges propose to specify in 

the Fee Schedule connectivity services 

that IDS offers NCL Customers to 

connect to data feeds from third-party 

markets and other content service 

providers (‘‘Third Party Data Feeds’’) for 

a fee.41 According to the Exchanges, 

NCL Customers connect to Third Party 

Data Feeds over the IDS Network.42

The Exchanges state that IDS charges 

a monthly recurring fee for connectivity 

to each Third Party Data Feed.43 Third 

Party Data Feed providers may charge 

redistribution fees.44 The Exchanges 

propose that, when IDS is charged a 

redistribution fee by the Third Party 

Data Feed provider, IDS would pass 

through the charge to the NCL 

Customer, without change to the fee.45

In addition, the Exchanges propose they 

it would not charge NCL Customers that 

are third-party markets or content 

providers for connectivity to their own 

feeds, as the Exchanges maintain that 

such parties generally receive their own 

feeds for purposes of diagnostics and 

testing.46 The Exchanges propose to add 

a chart to the Fee Schedule setting forth 

a description of each type of 

connectivity service to Third Party 

Feeds over the IDS Network, along with 

the associated amount of monthly 

fees.47

The Exchanges also propose to add 

Note 3, titled ‘‘Note 3: Third Party 

Systems,’’ to the section of the Fee 

Schedule titled ‘‘D. Non-Colocation 

(‘‘NCL’’) Services.’’ 48 Proposed Note 3 

would provide that pricing for data 

feeds from third party markets and other 

service providers (Third Party Data 

Feeds) is for connectivity only, which is 

subject to any technical provisioning 

requirements, authorization, and 

licensing from the provider of the data 

feed, and is over the IDS Network.49

Proposed Note 3 would also state that 

fees for Third Party Data Feeds are 

charged by the provider of such data 

feeds,50 as well as that IDS is not the 

exclusive method to connect to Third 

Party Data Feeds.51

c. Connectivity to Third Party Data 

Testing and Certification Feeds 

The Exchanges propose to specify in 

the Fee Schedule that NCL Customers 

may obtain connectivity to third-party 

testing and certification feeds.52

According to the Exchanges, 

certification feeds are used to certify 

that an NCL Customer conforms to any 

of the relevant content service 

provider’s requirements for accessing 

Third Party Systems or receiving Third 

Party Data Feeds, while testing feeds 

would provide NCL Customers an 

environment in which to conduct tests 

with non-live data.53 The Exchanges 

state that such feeds, which are solely 

used for certification and testing and do 

not carry live production data, are 

available over the IDS Network.54 The 

Exchanges propose to add a $100 

monthly recurring charge per feed for 

connectivity to Third Party Testing and 

Certification Feeds to the Fee 

Schedule.55

d. Connectivity to DTCC 

The Exchanges propose to specify in 

the Fee Schedule services that IDS 

provides to connect NCL Customers to 

Depository Trust & Clearing Corporation 

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

insurance, and settlement services.56

IDS charges the NCL Customer for the 

connectivity to DTCC.57 The Exchanges 


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58See id. 

59See id. 

60The Exchanges propose a $10,000 initial charge 

plus $11,000 monthly charge for a 10 Gb NCL NMS 

Network port, and a $10,000 initial charge plus 

$18,000 monthly charge for a 40 Gb NCL NMS 

Network port. See id. 

61See id. 

62Proposed Note 4 would further provide that 

these NMS feeds are as follows: CTS; CQS; and 

OPRA. See id. 

63See id. 

64See id. According to the Exchanges, because 

NCL Customers do not co-locate any equipment in 

the Mahwah Data Center, they generally require 

fewer fiber cross connects than colocation Users. 

Hence, the Exchanges do not propose amending the 

Fee Schedule to include bundles of 6, 12, 18, or 24 

cross connects as are available to colocation Users. 

See id. at 12720 n.10. 

65See id. at 12720. 

66See id. 

67See id. 

68According to the Exchanges, the proposed fees 

would be similar to the ‘‘Expedite Fee’’ applicable 

to Users in colocation. See id. (citing Securities 

Exchange Act Release No. 67666 (August 15, 2012), 

77 FR 50742 (August 22, 2012) (SR–NYSE–2012– 

18). 

69The Exchanges state that the time saved would 

vary depending on the type(s) of service(s) ordered, 

but the Expedite Fee would always be a flat $4,000, 

allowing the NCL Customer to determine if the 

expected time savings warrants payment of the fee. 

See id. 

70See id. 

71The Exchanges state that several of the 

proposed services that would be added to the Fee 

Schedule include an initial fee in addition to an 

ongoing monthly fee. These initial fees are related 

to IDS’s initial cost of establishing or installing a 

particular service for the NCL Customer. IDS 

charges a fee of $950 per order if the NCL Customer 

requests a change to one or more existing NCL 

Services that IDS has already established or 

completed for the NCL Customer. According to the 

Exchanges, this is similar to the ‘‘Change Fee’’ 

applicable to Users in colocation. For example, the 

initial installation of an IDS Network connection 

would include establishing and configuring market 

data services requested by the NCL Customer, 

which would be covered by the initial install fee. 

However, if the NCL Customer requests that IDS 

establish and configure additional market data 

services for its IDS Network connection, the NCL 

Customer would be charged a one-time Change Fee 

of $950 for that request. If an NCL Customer orders 

two or more services at one time (for example, 

through submitting an order form requesting 

multiple services), the NCL Customer would be 

charged a one-time Change Fee of $950, which 

would cover the multiple services. See id. at 12720– 

21. 

72See id. at 12721. 

73See id. 

74See id. 

75 ‘‘Hosting’’ is a service offered by a User to 

another entity in the User’s space within the 

Mahwah Data Center. The Exchanges allow Users 

to act as Hosting Users for a monthly fee. See id. 

(citing Securities Exchange Act Release No. 76008 

(September 29, 2015), 80 FR 60190 (October 5, 

2015) (SR–NYSE–2015–40)). 

76See id. In this regard, the Exchanges maintain 

that most of the third-party telecommunications 

providers that provide circuits do so at fees lower 

than those proposed herein, and that most NCL 

Customers and colocation Users use such third 

party telecommunication circuits into and out of 

the Mahwah Data Center. See id. at 12722. 

77See id. at 12723. More generally, the Exchanges 

maintain that market participants consider various 

factors in determining which connectivity options 

to choose, including latency; bandwidth size; 

amount of network uptime; the equipment that the 

network uses; the cost of the connection; and the 

applicable contractual provisions. See id. at 12722. 

propose to add a $500 monthly 

recurring charge for a 5 Mb connection 

to DTCC and a $2,500 monthly recurring 

charge for a 10 Mb connection to DTCC 

to the Fee Schedule.58

3. NCL NMS Network Ports 

The Exchanges propose to amend the 

Fee Schedule to add services that IDS 

currently offers enabling NCL 

Customers to connect to the NMS feeds 

for which the Securities Industry 

Automation Corporation is engaged as 

the securities information processor (the 

‘‘NMS Network’’) in the Mahwah Data 

Center.59 The Exchanges propose to add 

a chart to the Fee Schedule setting forth 

and describing each type of NCL NMS 

Network Port providing NCL Customers 

access to the NCL NMS Network, along 

with the associated amounts of initial 

plus monthly fees.60

The Exchanges also propose to add 

Note 4, titled ‘‘Note 4: NMS Network,’’ 

to the section of the Fee Schedule titled 

‘‘D. Non-Colocation (‘‘NCL’’) Services,’’ 

establishing that when an NCL 

Customer purchases an NMS Network 

port, it has the option of receiving the 

NMS feeds over the NMS Network.61

Proposed Note 4 would provide that 

when an NCL Customer purchases 

access to the NMS Network, upon its 

request, it will receive connectivity to 

any of the NMS feeds that it selects, 

subject to any necessary technical 

provisioning requirements, 

authorization, and licensing from the 

provider of such NMS feed.62 Proposed 

Note 4 would also state that fees for the 

NMS feeds are charged by the provider 

of such NMS feed.63

4. NCL Cross Connect 

The Exchanges propose to amend the 

Fee Schedule to specify fiber cross 

connect services that IDS offers NCL 

Customers for an initial and monthly 

charge.64 A cross connect is used to 

connect a circuit to a port, the 

Exchanges state, and NCL Customers 

use such cross connects to connect from 

the IDS Network or NMS Network to a 

circuit connecting outside the Mahwah 

Data Center.65 According to the 

Exchanges, the proposed fees for this 

service would be identical to the fees for 

the corresponding service in 

colocation.66 The Exchanges propose to 

add a $500 initial charge plus a $600 

monthly charge to furnish and install 

one NCL Cross Connect to the Fee 

Schedule.67

5. NCL Expedite Fee 

The Exchanges propose to amend the 

Fee Schedule to specify optional 

services that IDS offers NCL Customers 

to expedite the completion of services 

purchased or ordered by the NCL 

Customer, for which IDS charges an 

‘‘Expedite Fee.’’ 68 If an NCL Customer 

wishes to obtain NCL Services earlier 

than the expected completion date, the 

NCL Customer may pay the Expedite 

Fee.69 The Exchanges propose to add a 

$4,000 per request charge for expedited 

installation/completion of a customer’s 

NCL service to the Fee Schedule.70

6. NCL Change Fee 

The Exchanges propose to amend the 

Fee Schedule to specify the ‘‘Change 

Fee’’ that IDS charges an NCL Customer 

if the NCL Customer requests a change 

to one or more existing NCL Services 

that IDS has already established or 

completed for the NCL Customer.71 The 

Exchanges propose to add a $950 per 

request charge to change an NCL service 

that has already been installed/ 

completed for a customer to the Fee 

Schedule.72

C. Fee Schedule Name 

Finally, the Exchanges propose 

change the name of the Fee Schedule 

from ‘‘Wireless Connectivity Fees and 

Charges’’ to ‘‘Mahwah Wireless, 

Circuits, and Non-Colocation 

Connectivity Fees and Charges,’’ since 

the Fee Schedule will no longer be 

limited to wireless services.73

III. Exchanges’ Justification and 

Comments Received 

The Exchanges generally argue that 

the proposed rule changes are 

reasonable, equitable, and not unfairly 

discriminatory because use of the 

proposed services is completely 

voluntary and alternatives to them are 

available.74 According to the Exchanges, 

IDS operates in a highly competitive 

market in which exchanges, third party 

telecommunications providers, Hosting 

Users,75 and other third-party vendors 

offer connectivity services as a means to 

facilitate the trading and other market 

activities of market participants.76 With 

these proposals, the Exchanges assert 

that market participants would have 

more choices with respect to the form 

and price of the services they use, 

allowing market participants to select 

the services and connectivity options 

that better suit their needs, thereby 

helping them tailor their connectivity 

operations to the requirements of their 

businesses.77 In any case, the Exchanges 

state that there are currently few NCL 

Customers, and thus expect that the 


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78See id. at 12721. 

79See id. at 12721–22. 

80See id. at 12721. 

81See id. at 12721–23. 

82See id. at 12722. 

83See id. at 12723. 

84See id. 

85See id. at 12724. 

86See id. at 12723–24. 

87Letter from John Ramsay, Chief Market Policy 

Officer, Investors Exchange LLC (‘‘IEX’’) to Vanessa 

Countryman, Secretary, Commission, dated March 

25, 2021 (‘‘IEX Letter’’). 

88See id. at 1, 4–5. The commenter also disputes 

the Exchanges’ assertion that the proposed services 

are not offerings of an ‘‘exchange’’ or a ‘‘facility’’ 

thereof. See id. at 2; see also supra notes 10–13 and 

accompanying text. 

89This commenter states that it is important for 

providing informed comment on the proposals that 

the Exchanges be clear as to whether they are 

seeking retroactive approval of offerings and fees 

that are already in effect, and if so, understanding 

their history. The commenter states that the 

Exchanges should at a minimum explain: Which 

fees are already in effect and how long have they 

been in effect; if previously charged by an entity 

other than IDS, by which entity, and what the 

purpose was for the change in entity; and if any 

specific fees have increased, what the dates and 

amounts of the increases were, as well as the 

reasons for such increases. See IEX Letter at 2. 

90See id. at 3. 

91See id. at 4. 

92See id. 

93See id.; see also supra note 76. 

94See IEX Letter at 3. 

95See id. 

96 15 U.S.C. 78s(b)(2)(B). 

97 Id. Section 19(b)(2)(B) of the Act also provides 

that proceedings to determine whether to 

disapprove a proposed rule change must be 

concluded within 180 days of the date of 

publication of notice of the filing of the proposed 

rule change. See id. The time for conclusion of the 

proceedings may be extended for up to 60 days if 

the Commission finds good cause for such 

extension and publishes its reasons for so finding, 

or if the exchange consents to the longer period. See 

id. 

98 15 U.S.C. 78f(b)(4). 

impact of the proposals would be 

minimal.78

With respect to the competitive 

environment, the Exchanges maintain 

generally that the proposed rule changes 

are reasonable because the proposed 

fees are constrained by competition.79 In 

this regard, the Exchanges argue that the 

proposed services are voluntary and 

available to all market participants on 

an equal basis.80 In addition, the 

Exchanges provide some cost-based 

justifications throughout for why the 

proposals are reasonable, claiming that 

offering the proposed services requires 

the provision, maintenance, and 

operation of the Mahwah Data Center, 

including the installation, monitoring, 

support, and maintenance of the 

proposed services.81 The Exchanges also 

assert that various of the proposed 

changes to the Fee Schedule would 

provide market participants with greater 

transparency and clarity.82

The Exchanges argue that the 

proposals provide for an equitable 

allocation of fees and are not unfairly 

discriminatory, again contending that 

the proposed services are voluntary and 

available to all market participants on 

an equal basis.83 The Exchanges claim 

that the proposed rule changes do not 

apply differently to distinct types or 

sizes of market participants, but rather 

apply to all market participants equally, 

and state that the Fee Schedule would 

be applied uniformly to all market 

participants.84

Lastly, the Exchanges argue that the 

proposed rule changes do not impose an 

unnecessary or inappropriate burden on 

competition because there are numerous 

other third parties that provide circuits 

and connectivity at the Mahwah Data 

Center, with whom IDS competes for the 

provision of such services to 

customers.85 According to the 

Exchanges, the proposals do not affect 

competition among national securities 

exchanges or among members of the 

Exchanges, but rather the Exchanges’ 

filing of the proposals puts IDS at a 

competitive disadvantage relative to its 

commercial competitors that are not 

subject to filing requirements of Section 

19(b) of the Act.86

The Commission has received one 

comment letter regarding the proposed 

rule changes.87 This commenter argues 

that the Exchanges have failed to 

demonstrate that the proposed rule 

changes are consistent with the Act.88

The commenter asserts that the 

proposals are not transparent as to 

whether they are only prospective, or 

whether and to what extent they cover 

services and fees that are already in 

effect.89

This commenter further argues that 

the Exchanges’ competition- and costbased justifications for the proposals 

amount to conclusory assertions.90 The 

commenter maintains that the 

Exchanges do not specifically assert that 

other service providers can offer the 

ability to transmit data or messages into 

or out of the Mahwah Data Center as 

quickly and efficiently as IDS can.91

With respect to competition, the 

commenter states that the Exchanges 

should explain the following: Who the 

other competing providers are and 

which, if any of them, provide all of the 

same functionality as is provided by IDS 

in terms of access to exchange systems, 

third market systems, and market data; 

how the fees for the services compare to 

the prices charged by competing 

providers for the same or similar 

services; and whether competing 

providers have the ability to provide 

services that are equivalent to the 

services in terms of latency or other 

characteristics, and if so, the basis for 

that conclusion (and if not equivalent, 

what differences there are and how they 

affect the question of whether the fees 

charged are fair and reasonable).92 The 

commenter also notes the Exchanges’ 

claim that third-party providers of 

circuits in the Mahwah Data Center 

charge lower fees than IDS, and argues 

that this raises the question of why IDS 

is able to charge more and what benefits 

IDS may be able to provide that third 

parties cannot.93

Moreover, the commenter argues that 

the Exchanges have not provided any 

quantitative or other specific 

information to support their argument 

that fees for the proposed services are 

reasonable because of the need to 

recover data center costs.94 The 

commenter states that the following 

information would be relevant with 

respect to the Exchanges’ cost-based 

arguments: Which cost components the 

Exchanges believe are relevant to the 

services and why; the amount of those 

costs over some specified period of 

recent time (e.g., during the last year); 

and how those costs compare to the 

amount of fees from the services that 

has been collected or is expected to be 

collected over the same time period.95

IV. Proceedings To Determine Whether 

To Approve or Disapprove the 

Proposed Rule Changes 

The Commission is instituting 

proceedings pursuant to Section 

19(b)(2)(B) of the Act to determine 

whether the Exchanges’ proposed rule 

changes should be approved or 

disapproved.96 Institution of 

proceedings does not indicate that the 

Commission has reached any 

conclusions with respect to any of the 

issues involved. Rather, the Commission 

seeks and encourages interested persons 

to provide additional comment on the 

proposed rule changes to inform the 

Commission’s analysis of whether to 

approve or disapprove the proposed 

rule changes. 

Pursuant to Section 19(b)(2)(B) of the 

Act,97 the Commission is providing 

notice of the grounds for possible 

disapproval under consideration: 

• Whether the Exchanges have 

demonstrated how the proposals are 

consistent with Section 6(b)(4) of the 

Act, which requires that the rules of a 

national securities exchange ‘‘provide 

for the equitable allocation of reasonable 

dues, fees, and other charges among its 

members and issuers and other persons 

using its facilities;’’ 98


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99 15 U.S.C. 78f(b)(5). 

100 15 U.S.C. 78f(b)(8). 

101 17 CFR 201.700(b)(3). 

102See id. 

103See id. 

104See 15 U.S.C. 78f(b)(4), (5), and (8). 

105 15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act 

grants the Commission flexibility to determine what 

type of proceeding—either oral or notice and 

opportunity for written comments—is appropriate 

for consideration of a particular proposal by an 

SRO. See Securities Acts Amendments of 1975, 

Report of the Senate Committee on Banking, 

Housing and Urban Affairs to Accompany S. 249, 

S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). 106 17 CFR 200.30–3(a)(57). 

• Whether the Exchanges have 

demonstrated how the proposals are 

consistent with Section 6(b)(5) of the 

Act, which requires, among other 

things, that the rules of a national 

securities exchange be ‘‘designed to 

perfect the operation of a free and open 

market and a national market system’’ 

and ‘‘protect investors and the public 

interest,’’ and not be ‘‘designed to 

permit unfair discrimination between 

customers, issuers, brokers, or 

dealers;’’ 99 and 

• Whether the Exchanges have 

demonstrated how the proposals are 

consistent with Section 6(b)(8) of the 

Act, which requires that the rules of a 

national securities exchange ‘‘not 

impose any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of [the Act].’’ 100

As discussed in Section III above, the 

Exchanges made various arguments in 

support of the proposals and the 

Commission received a comment letter 

that expressed concerns regarding the 

proposals, including that the Exchanges 

did not provide sufficient information to 

establish that the proposals are 

consistent with the Act and the rules 

thereunder. 

Under the Commission’s Rules of 

Practice, the ‘‘burden to demonstrate 

that a proposed rule change is 

consistent with the Exchange Act and 

the rules and regulations issued 

thereunder . . . is on the self-regulatory 

organization [‘SRO’] that proposed the 

rule change.’’ 101 The description of a 

proposed rule change, its purpose and 

operation, its effect, and a legal analysis 

of its consistency with applicable 

requirements must all be sufficiently 

detailed and specific to support an 

affirmative Commission finding.102 Any 

failure of an SRO to provide this 

information may result in the 

Commission not having a sufficient 

basis to make an affirmative finding that 

a proposed rule change is consistent 

with the Act and the applicable rules 

and regulations.103

The Commission is instituting 

proceedings to allow for additional 

consideration and comment on the 

issues raised herein, including as to 

whether the proposals are consistent 

with the Act, specifically, with its 

requirements that the rules of a national 

securities exchange provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

members, issuers, and other persons 

using its facilities; are designed to 

perfect the operation of a free and open 

market and a national market system, 

and to protect investors and the public 

interest; are not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers; 

and do not impose any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act; 104 as well as any 

other provision of the Act, or the rules 

and regulations thereunder. 

V. Commission’s Solicitation of 

Comments 

The Commission requests written 

views, data, and arguments with respect 

to the concerns identified above as well 

as any other relevant concerns. Such 

comments should be submitted by June 

23, 2021. Rebuttal comments should be 

submitted by July 7, 2021. Although 

there do not appear to be any issues 

relevant to approval or disapproval that 

would be facilitated by an oral 

presentation of views, data, and 

arguments, the Commission will 

consider, pursuant to Rule 19b–4, any 

request for an opportunity to make an 

oral presentation.105

The Commission asks that 

commenters address the sufficiency and 

merit of the Exchanges’ statements in 

support of the proposals, in addition to 

any other comments they may wish to 

submit about the proposed rule changes. 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the proposed rule 

changes, including whether the 

proposals are 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 Nos. SR– 

NYSE–2021–14, SR–NYSEAMER–2021– 

10, SR–NYSEArca–2021–13, SR– 

NYSECHX–2021–03, SR–NYSENAT– 

2021–04 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Nos. SR–NYSE–2021–14, SR– 

NYSEAMER–2021–10, SR–NYSEArca– 

2021–13, SR–NYSECHX–2021–03, and 

SR–NYSENAT–2021–04. The file 

numbers 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 such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchanges. 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 publicly available. All 

submissions should refer to File Nos. 

SR–NYSE–2021–14, SR–NYSEAMER– 

2021–10, SR–NYSEArca–2021–13, SR– 

NYSECHX–2021–03, and SR– 

NYSENAT–2021–04 and should be 

submitted on or before June 23, 2021. 

Rebuttal comments should be submitted 

by July 7, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.106

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–11533 Filed 6–1–21; 8:45 am] 

BILLING CODE 8011–01–P 


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