Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices 50177 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Exchange initially filed rule changes 

relating to its co-location services with the 

Commission in 2010. See Securities Exchange Act 

Release No. 63275 (November 8, 2010), 75 FR 70048 

(November 16, 2010) (SR–NYSEArca–2010–100) 

(the ‘‘Original Co-location Filing’’). The Exchange 

operates a data center in Mahwah, New Jersey (the 

‘‘data center’’) from which it provides co-location 

services to Users. 

5For purposes of the Exchange’s co-location 

services, a ‘‘User’’ means any market participant 

that requests to receive co-location services directly 

from the Exchange. See Securities Exchange Act 

Release No. 76010 (September 29, 2015), 80 FR 

60197 (October 5, 2015) (SR–NYSEArca–2015–82). 

As specified in the Fee Schedules, 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 Exchange’s affiliates New York 

Stock Exchange LLC (‘‘NYSE LLC’’) and NYSE MKT 

LLC (‘‘NYSE MKT and, together with NYSE LLC, 

the ‘‘Affiliate SROs’’). See Securities Exchange Act 

Release No. 70173 (August 13, 2013), 78 FR 50459 

(August 19, 2013) (SR–NYSEArca–2013–80). 

6See Securities Exchange Act Release No. 80310 

(March 24, 2017), 82 FR 15763 (March 30, 2017) 

(SR–NYSEArca–2016–89). 

7See Securities Exchange Act Release No. 74219 

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

(SR–NYSEArca–2015–03) (notice of filing and 

immediate effectiveness of proposed rule change to 

include IP network connections). 

8 Information flows over existing network 

connections in two formats: ‘‘unicast’’ format, 

which is a format that allows one-to-one 

Continued 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81929; File No. SR– 

NYSEARCA–2017–122] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Provide Users With 

Access to Five Additional Third Party 

Systems and Connectivity to Two 

Additional Third Party Data Feeds 

October 24, 2017. 

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 October 

11, 2017, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 provide 

Users with access to five additional 

third party systems and connectivity to 

two additional third party data feeds. In 

addition, the Exchange proposes to 

change its NYSE Arca Options Fees and 

Charges (the ‘‘Options Fee Schedule’’) 

and the NYSE Arca Equities Fees and 

Charges (the ‘‘Equities Fee Schedule’’ 

and, together with the Options Fee 

Schedule, the ‘‘Fee Schedules’’) related 

to these co-location services. The 

proposed rule change is available on the 

Exchange’s Web site 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 amend the 

co-location 4 services offered by the 

Exchange to provide Users 5 with access 

to five additional third party systems 

and connectivity to two additional third 

party data feeds. In addition the 

Exchange proposes to make the 

corresponding changes to the 

Exchange’s Fee Schedules related to 

these co-location services. 

As set forth in the Fee Schedules, the 

Exchange charges fees for connectivity 

to the execution systems of third party 

markets and other content service 

providers (‘‘Third Party Systems’’), and 

data feeds from third party markets and 

other content service providers (‘‘Third 

Party Data Feeds’’).6 The lists of Third 

Party Systems and Third Party Data 

Feeds are set forth in the Fee Schedules. 

The Exchange now proposes to make 

the following changes: 

• Add five content service providers 

to the list of Third Party Systems: 

Chicago Mercantile Exchange (CME 

Group), Chicago Stock Exchange (CHX), 

Investors Exchange (IEX), OneChicago 

and TMX Group (together, the 

‘‘Additional Third Party Systems’’ or 

‘‘ATPS’’); and 

• add two feeds to the list of Third 

Party Data Feeds: Investors Exchange 

and OneChicago (together the 

‘‘Additional Third Part Data Feeds’’ or 

‘‘ATPD’’). 

The Exchange would provide access 

to the Additional Third Party Systems 

(‘‘Access’’) and connectivity to the 

Additional Third Party Data Feeds 

(‘‘Connectivity’’) as conveniences to 

Users. Use of Access or Connectivity 

would be completely voluntary. The 

Exchange is not aware of any 

impediment to third parties offering 

Access or Connectivity. 

The Exchange does not have visibility 

into whether third parties currently 

offer, or intend to offer, Users access to 

the Additional Third Party Systems and 

connectivity to the Additional Third 

Party Data Feeds, as such third parties 

are not required to make that 

information public. However, if one or 

more third parties presently offer, or in 

the future opt to offer, such Access and 

Connectivity to Users, a User may 

utilize the Secure Financial Transaction 

Infrastructure (‘‘SFTI’’) network, a third 

party telecommunication network, third 

party wireless network, a cross connect, 

or a combination thereof to access such 

services and products through a 

connection to an access center outside 

the data center (which could be a SFTI 

access center, a third-party access 

center, or both), another User, or a third 

party vendor. 

The Exchange will announce the 

dates that each Product is available 

through customer notices disseminated 

to all Users simultaneously. 

Connectivity to Additional Third Party 

Systems 

The Exchange proposes to revise the 

Fee Schedules to provide that Users 

may obtain connectivity to the five 

Additional Third Party Systems for a 

fee. As with the current Third Party 

Systems, Users would connect to the 

Additional Third Party Systems over the 

internet protocol (‘‘IP’’) network, a local 

area network available in the data 

center.7

As with the current Third Party 

Systems, in order to obtain access to an 

Additional Third Party System, the 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 

Additional 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.8 The 


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50178 Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices 

communication, similar to a phone line, in which 

information is sent to and from the Exchange; and 

‘‘multicast’’ format, which is a format in which 

information is sent one-way from the Exchange to 

multiple recipients at once, like a radio broadcast. 

9See supra note 7, at 7899 (‘‘The IP network also 

provides Users with access to away market data 

products’’). 

10As is currently the case, Users that receive colocation services from the Exchange will not receive 

any means of access to the Exchange’s trading and 

execution systems that is separate from, or superior 

to, that of other Users. In this regard, all orders sent 

to the Exchange enter the Exchange’s trading and 

execution systems through the same order gateway, 

regardless of whether the sender is co-located in the 

data center or not. In addition, co-located Users do 

not receive any market data or data service product 

that is not available to all Users, although Users that 

receive co-location services normally would expect 

reduced latencies in sending orders to, and 

receiving market data from, the Exchange. 

11See SR–NYSEArca–2013–80, supra note 5 at 

50459. The Affiliate SROs have also submitted 

substantially the same proposed rule change to 

propose the changes described herein. See SR–

NYSE–2017–52 and SR–NYSEAMER–2017–24. 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(5). 

Exchange would charge the User for the 

connectivity to the Additional Third 

Party System. A User would only 

receive, and only be charged for, access 

to Additional Third Party Systems for 

which it enters into agreements with the 

third party content service provider. 

The Exchange has no ownership 

interest in the Additional Third Party 

Systems. Establishing a User’s access to 

an Additional Third Party System 

would not give the Exchange any right 

to use the Additional Third Party 

Systems. Connectivity to an Additional 

Third Party System would not provide 

access or order entry to the Exchange’s 

execution system, and a User’s 

connection to an Additional Third Party 

System would not be through the 

Exchange’s execution system. 

As with the existing connections to 

Third Party Systems, the Exchange 

proposes to charge a monthly recurring 

fee for connectivity to an Additional 

Third Party System. Specifically, when 

a User requests access to an Additional 

Third Party System, it would identify 

the applicable content service provider 

and what bandwidth connection it 

required. 

The Exchange proposes to modify its 

Fee Schedules to add the Additional 

Third Party Systems to its existing list 

of Third Party Systems. The additional 

items would be as follows: 

Third Party Systems 

Chicago Mercantile Exchange (CME 

Group) 

Chicago Stock Exchange (CHX) 

Investors Exchange (IEX) 

OneChicago 

TMX Group 

The Exchange does not propose to 

change the monthly recurring fee the 

Exchange charges Users for unicast 

connectivity to each Third Party 

System, including the Additional Third 

Party Systems. 

Connectivity to Additional Third Party 

Data Feeds 

The Exchange proposes to revise the 

Fee Schedules to provide that Users 

may obtain connectivity to each of the 

two Additional Third Party Data Feeds 

for a fee. The Exchange would receive 

the Additional Third Party Data Feeds 

from the content service provider, at its 

data center. It would then provide 

connectivity to that data to Users for a 

fee. Users would connect to the 

Additional Third Party Data Feeds over 

the IP network.9

In order to connect to an Additional 

Third Party Data Feed, a User would 

enter into a contract with the 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 content service 

provider and User entered into the 

contract and the Exchange received 

authorization from the content service 

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 

Additional Third Party Data Feed. A 

User would only receive, and would 

only be charged for, connectivity to the 

Additional Third Party Data Feeds for 

which it entered into contracts. 

The Exchange has no affiliation with 

the sellers of the Additional Third Party 

Data Feeds. It would have no right to 

use the Additional Third Party Data 

Feeds other than as a redistributor of the 

data. The Additional Third Party Data 

Feeds would not provide access or order 

entry to the Exchange’s execution 

system. The Additional Third Party Data 

Feeds would not provide access or order 

entry to the execution systems of the 

third parties generating the feed. The 

Exchange would receive the Additional 

Third Party Data Feeds via arms-length 

agreements and it would have no 

inherent advantage over any other 

distributor of such data. 

As it does with the existing Third 

Party Data Feeds, the Exchange 

proposes to charge a monthly recurring 

fee for connectivity to each Additional 

Third Party Data Feed. The monthly 

recurring fee would be per Additional 

Third Party Data Feed. Depending on its 

needs and bandwidth, a User may opt 

to receive all or some of the feeds or 

services included in an Additional 

Third Party Data Feed. 

The Exchange proposes to add the 

connectivity fees for the Additional 

Third Party Data to its existing list in 

the Fee Schedules. The additional items 

would be as follows: 

Third party data feed 

Monthly 

recurring 

connectivity 

fee per third 

party data 

feed 

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

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

General 

As is the case with all Exchange colocation arrangements, (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 colocation services proposed herein would 

be completely voluntary and available 

to all Users on a non-discriminatory 

basis; 10 and (iii) a User would only 

incur one charge for the particular colocation service described herein, 

regardless of whether the User connects 

only to the Exchange or to the Exchange 

and one or both the Affiliate SROs.11

The proposed change is not otherwise 

intended to address any other issues 

relating to co-location services and/or 

related fees, 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,12 in general, and 

furthers the objectives of Sections 

6(b)(5) of the Act,13 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. 


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14 15 U.S.C. 78f(b)(4). 15 15 U.S.C. 78f(b)(8). 

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, by offering additional 

services, the Exchange would give each 

User additional options for addressing 

its access and connectivity needs, 

responding to User demand for access 

and connectivity options. Providing 

additional services 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. Use of Access or Connectivity 

would be completely voluntary. The 

Exchange is not aware of any 

impediment to third parties offering 

Access or Connectivity. The Exchange 

does not have visibility into whether 

third parties currently offer, or intend to 

offer, Users access to the Additional 

Third Party Systems and connectivity to 

the Additional Third Party Data Feeds. 

However, if one or more third parties 

presently offer, or in the future opt to 

offer, such Access and Connectivity to 

Users, a User may utilize the SFTI 

network, a third party 

telecommunication network, third party 

wireless network, a cross connect, or a 

combination thereof to access such 

services and products through a 

connection to an access center outside 

the data center (which could be a SFTI 

access center, a third-party access 

center, or both), another User, or a third 

party vendor. 

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, by offering access to 

the Additional Third Party Systems and 

connectivity to the Additional Third 

Party Data Feeds to Users upon the 

effective date of this filing, the Exchange 

would give Users additional options for 

connectivity and access to new services 

as soon as they are available, responding 

to User demand for access and 

connectivity options. 

The Exchange also believes that the 

proposed rule change is consistent with 

Section 6(b)(4) of the Act,14 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 fee 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 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 

market share and revenue of the affected 

exchange. 

The Exchange believes that the 

additional services and fees proposed 

herein would be 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 products and services 

would be available to all Users). All 

Users that voluntarily selected to 

receive Access or Connectivity would be 

charged the same amount for the same 

services. Users that opted to use Access 

or Connectivity would not receive 

access or connectivity that is not 

available to all Users, as all market 

participants that contracted with the 

relevant market or content provider 

would receive access or connectivity. 

The Exchange believes that the 

proposed charges would be reasonable, 

equitably allocated and not unfairly 

discriminatory because the Exchange 

would offer the Access and Connectivity 

as conveniences to Users, but in order 

to do so must provide, maintain and 

operate the data center facility hardware 

and technology infrastructure. The 

Exchange must handle the installation, 

administration, monitoring, support and 

maintenance of such services, including 

by responding to any production issues. 

Since the inception of co-location, the 

Exchange has made numerous 

improvements to the network hardware 

and technology infrastructure and has 

established additional administrative 

controls. The Exchange has expanded 

the network infrastructure to keep pace 

with the increased number of services 

available to Users, including resilient 

and redundant feeds. In addition, in 

order to provide Access and 

Connectivity, the Exchange would 

maintain multiple connections to each 

ATPD and ATPS, allowing the Exchange 

to provide resilient and redundant 

connections; adapt to any changes made 

by the relevant third party; and cover 

any applicable fees charged by the 

relevant third party, such as port fees. 

In addition, Users would not be 

required to use any of their bandwidth 

for Access and Connectivity unless they 

wish to do so. 

The Exchange believes the proposed 

fees for Access and Connectivity would 

be reasonable because they would allow 

the Exchange to defray or cover the 

costs associated with offering Users 

access to Additional Third Party 

Systems and connectivity to Additional 

Third Party Data Feeds while providing 

Users the convenience of receiving such 

Access and Connectivity within colocation, helping them tailor their data 

center operations to the requirements of 

their business operations. 

For the reasons above, the proposed 

changes would not unfairly discriminate 

between or among market participants 

that are otherwise capable of satisfying 

any applicable co-location fees, 

requirements, terms and conditions 

established from time to time by the 

Exchange. 

For these 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,15 the Exchange believes that the 

proposed rule change will 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 providing 

Users with additional options for 

connectivity and access to new 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 Access and Connectivity 


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16 15 U.S.C. 78s(b)(3)(A)(iii). 

17 17 CFR 240.19b–4(f)(6). 

18 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. 

19 17 CFR 240.19b–4(f)(6). 

20 17 CFR 240.19b–4(f)(6)(iii). 

21For 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). 

22 15 U.S.C. 78s(b)(2)(B). 

would satisfy User demand for access 

and connectivity options. The Exchange 

would provide Access and Connectivity 

as conveniences equally to all Users. 

The Exchange does not have visibility 

into whether third parties currently 

offer, or intend to offer, Users access to 

the Additional Third Party Systems and 

connectivity to the Additional Third 

Party Data Feeds, as such third parties 

are not required to make that 

information public. However, if one or 

more third parties presently offer, or in 

the future opt to offer, such Access and 

Connectivity to Users, a User may 

utilize the SFTI network, a third party 

telecommunication network, third party 

wireless network, a cross connect, or a 

combination thereof to access such 

services and products through a 

connection to an access center outside 

the data center (which could be a SFTI 

access center, a third-party access 

center, or both), another User, or a third 

party vendor. Users that opt to use the 

proposed Access or Connectivity would 

not receive access or connectivity that is 

not available to all Users, as all market 

participants that contract with the 

content provider may receive access or 

connectivity. In this way, the proposed 

changes would enhance competition by 

helping Users tailor their Access and 

Connectivity to the needs of their 

business operations by allowing them to 

select the form and latency of access 

and connectivity that best suits their 

needs. 

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 

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 16 and Rule 

19b–4(f)(6) thereunder.17 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.18

A proposed rule change filed under 

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

become operative for 30 days after the 

date of the filing. However, Rule 19b– 

4(f)(6)(iii) 20 permits the Commission to 

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 proposal may become 

operative immediately upon filing. The 

Exchange represents that the proposed 

rule changes present no new or novel 

issues. According to the Exchange, 

waiver of the operative delay would 

allow Users to access the Additional 

Third Party Systems and the Additional 

Third Party Data Feeds without delay, 

which would assist Users in tailoring 

their data center operations to the 

requirements of their business 

operations. The Exchange also 

represents that the proposed changes to 

the Price List would provide Users with 

more complete information regarding 

their Access and Connectivity options. 

The Commission believes that waiving 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest. Accordingly, the 

Commission waives the 30-day 

operative delay and designates the 

proposed rule change operative upon 

filing.21

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) 22 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– 

NYSEARCA–2017–122 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–NYSEARCA–2017–122. 

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 Web site (http:// 

www.sec.gov/rules/sro.shtml). Copies of 

the submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 


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Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices 50181 

23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 3See MIAX PEARL Fee Schedule, Section 6. 

4The term ‘‘PBBO’’ means the best bid or offer 

on the PEARL Exchange. See Exchange Rule 100. 

See also Exchange Rule 506(d). 

5See Securities Exchange Act Release No. 79913 

(February 1, 2017), 82 FR 9617 (February 7, 2017) 

(SR–PEARL–2017–01) (Establishing MIAX PEARL 

ToM and PLF Data Products). 

6The term ‘‘System’’ means the automated 

trading system used by the Exchange for the trading 

of securities. See Exchange Rule 100. 

7See supra note 5. 

8See SR–MIAX–2017–42 (filed on October 11, 

2017). 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(4). 

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 Web site 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–NYSEARCA–2017–122 and 

should be submitted on or before 

November 20, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23476 Filed 10–27–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81932; File No. SR– 

PEARL–2017–35] 

Self-Regulatory Organizations; MIAX 

PEARL, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the MIAX 

PEARL Fee Schedule 

October 24, 2017. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on October 

11, 2017, MIAX PEARL, LLC (‘‘MIAX 

PEARL’’ or ‘‘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 Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

amend the MIAX PEARL Fee Schedule 

(the ‘‘Fee Schedule’’) to adopt a fee for 

the sale of certain historical market data. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.miaxoptions.com/rulefilings/pearl at MIAX PEARL’s principal 

office, and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Fee Schedule to adopt a fee for the sale 

of certain historical market data. 

The historical market data that the 

Exchange proposes to sell provides 

information about the past activity of all 

option products traded on the Exchange 

for each trading session conducted 

during a particular calendar month. The 

data is intended to enhance the user’s 

ability to analyze option trade and 

volume data, evaluate historical trends 

in the trading activity of a particular 

option product, and enable the testing of 

trading models and analytical strategies. 

Specifically, the historical market data 

that the Exchange proposes to sell 

includes all data that is captured and 

disseminated on the following 

proprietary MIAX PEARL data feeds, on 

a T+1 basis: MIAX PEARL Top of 

Market (‘‘ToM’’); and MIAX PEARL 

Liquidity Feed (‘‘PLF’’) (‘‘Historical 

Market Data’’). All such proprietary 

MIAX PEARL data feeds that, on a T+1 

basis, comprise the Historical Market 

Data are described on the Exchange’s 

Fee Schedule.3

ToM provides real-time, ultra-low 

latency updates of the MIAX PEARL 

Best Bid or Offer, or PBBO,4 the last sale 

with trade price, size and condition, last 

sale cancellations, listed series updates, 

system state, and underlying trading 

state.5 PLF provides real-time, ultra-low 

latency updates of new simple orders 

added to the MIAX PEARL order book, 

updates to simple orders resting on the 

MIAX PEARL order book, listed series 

updates, System 6 state, and underlying 

trading state.7

MIAX PEARL will only assess the fee 

for Historical Market Data on a user 

(whether Member or Non-Member) that 

specifically requests such Historical 

Market Data. Historical Market Data will 

be uploaded onto an Exchange-provided 

device. The amount of the fee is $500, 

and it will be assessed on a per device 

basis. Each device shall have a 

maximum storage capacity of 8 

Terabytes and will be configured to 

include data for both MIAX Options and 

MIAX PEARL. Users may request up to 

six months of Historical Market Data per 

device, subject to the device’s storage 

capacity. Historical Market Data is 

available from August 1, 2017 to the 

present (always on a T+1 basis), 

however only the most recent six 

months of Historical Market Data shall 

be available for purchase from the 

request date. Historical Market Data 

usage is restricted to internal use only, 

and thus may not be distributed to any 

third-party. 

The Exchange notes that this filing is 

substantially similar to a companion 

MIAX Options filing 8 establishing a fee 

for historical market data on its 

exchange. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 9

in general, and furthers the objectives of 

Section 6(b)(4) of the Act,10 in 

particular, in that it is an equitable 

allocation of reasonable dues, fees and 

other charges among Exchange members 

and issuers and other persons using its 

facilities. The proposal provides for the 

equitable allocation of reasonable fees 

and other charges among Exchange 


sradovich on DSK3GMQ082PROD with NOTICES