8011-01P
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100421; File No. SR-NYSE-2024-37]
Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change to Amend the Connectivity Fee
Schedule
June 25, 2024.
Pursuant to Section 19(b)(1)1 of the Securities Exchange Act of 1934 (“Act”)2 and Rule
19b-4 thereunder,3 notice is hereby given that on June 12, 2024, New York Stock Exchange LLC
(“NYSE” or the “Exchange”) filed with the Securities and Exchange Commission (the
“Commission”) the proposed rule change as described in Items I and II below, which Items have
been prepared by the self-regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
I.

Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed
Rule Change
The Exchange proposes to amend the Connectivity Fee Schedule (“Fee Schedule”)

regarding colocation services and fees to provide Users with wireless connectivity to additional
market data feeds. The proposed rule change is available on the Exchange’s website at
www.nyse.com, at the principal office of the Exchange, and at the Commission’s Public
Reference Room.
II.

Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the self-regulatory organization included statements

concerning the purpose of, and basis for, the proposed rule change and discussed any comments

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

15 U.S.C. 78a.

17 CFR 240.19b-4.

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 Fee Schedule regarding colocation services and
fees to provide Users4 with wireless connectivity to additional market data feeds.
The Exchange currently provides Users with wireless connections to nine market data
feeds or combinations of feeds from third-party markets (the “Existing Third Party Data”), and
wired connections to more than 45 market data feeds or combinations of feeds.5
The Exchange proposes to add to the Fee Schedule wireless connections (“Connectivity”)
to four additional market data feeds (together, the “Proposed Third Party Data”):
•

MIAX Pearl Equities Depth of Market Feed (“MIAX DoM”),6

•

Nasdaq BX TotalView-ITCH FPGA,7

For purposes of the Exchange’s colocation services, a “User” means any market participant that requests to
receive colocation services directly from the Exchange. See Securities Exchange Act Release No. 76008
(September 29, 2015), 80 FR 60190 (October 5, 2015) (SR-NYSE-2015-40). As specified in the Fee
Schedule, a User that incurs colocation fees for a particular colocation service pursuant thereto would not
be subject to colocation fees for the same colocation service charged by the Exchange’s affiliates NYSE
American LLC, NYSE Arca, Inc., NYSE Chicago, Inc., and NYSE National, Inc. (together, the “Affiliate
SROs”). Each Affiliate SRO has submitted substantially the same proposed rule change to propose the
changes described herein. See SR-NYSEAMER-2024-40, SR-NYSEARCA-2024-54, SR-NYSECHX2024-24, and SR-NYSENAT-2024-20.

See Securities Exchange Act Release No. 99806 (March 20. 2024), 89 FR 21055 (March 26, 2024) (SRNYSE-2024-15).

As described by MIAX PEARL, LCC, “[t]he [MIAX] DoM feed is a data feed that contains the displayed
price and size of each order entered on MIAX PEARL Equities, as well as order execution information,
order cancellations, order modifications, order identification numbers, and administrative messages.”
Securities Exchange Act Release No. 91073 (February 5, 2021), 86 FR 9096, 9100 (February 11, 2021)
(SR-PEARL-2021-02).

The difference between the Nasdaq BX TotalView feed and the Nasdaq BX TotalView-ITCH feed, which
is part of the Existing Third Party Data, is the delivery mechanism: the data is the same. As described by
Nasdaq BX, Inc., “BX TotalView is a real-time market data product that provides full order depth using a
series of order messages to track the life of customer orders in the BX market, as well as trade data for BX
executions and administrative messages such as Trading Action messages, Symbol Directory, and Event
Control messages.” Securities Exchange Act Release No. 98158 (August 17, 2023), 88 FR 57505 (August
23, 2023) (SR-BX-2023-020), at 57506.

•

Nasdaq PSX TotalView, and

•

Nasdaq PSX TotalView-ITCH FPGA.8

As with most other Existing Third Party Data,9 the monthly charge for Connectivity to
Proposed Third Party Data would be subject to a 30-day testing period, during which the
monthly charge per connection would be waived. Consistent with that fact, the Exchange
proposes to amend the Fee Schedule to clarify that this provision is applicable to Connectivity to
the Proposed Third Party Data.
Users would be offered Connectivity to Proposed Third Party Data through connections
into the colocation center in the Mahwah, New Jersey data center (“MDC”).10
The Exchange expects that the proposed Connectivity to Proposed Third Party Data
would become operative during 2024. The Exchange will announce the date or dates that
Connectivity to Proposed Third Party Data will be available through a customer notice.
The Exchange proposes to add the following to the Fee Schedule to reflect fees for
Connectivity to Proposed Third Party Data:
Type of Service

Description

Wireless Connection for
Third Party Data

Wireless connection of
MIAX Pearl Equities
Depth of Market Feed
(DoM) data

Amount of Charge
$5,000 per connection
initial charge plus
monthly charge per
connection of $6,000
Fees are subject to a 30day testing period,
during which the
monthly charge per
connection is waived.

According to Nasdaq PHLX LLC, “PSX TotalView is a real-time market data product that provides full
order depth using a series of order messages to track the life of customer orders in the PSX market, as well
as trade data for PSX executions and administrative messages such as Trading Action messages, Symbol
Directory, and Event Control messages.” Securities Exchange Act Release No. 95195 (August 21, 2023),
88 FR 58324 (August 25, 2023) (SR-Phlx-2023-37), at 58325. The difference between the two PSX
TotalView feeds is the delivery mechanism: the data is the same. Id.

See Securities Exchange Act Release No. 76748 (December 23, 2015), 80 FR 81609 (December 30, 2015)
(SR–NYSE–2015–52).

Through its Fixed Income and Data Services (“FIDS”) (previously ICE Data Services) business,
Intercontinental Exchange, Inc. (“ICE”) operates the MDC. The Exchange and the Affiliate SROs are
indirect subsidiaries of ICE. The proposed services would be provided by FIDS pursuant to an agreement
with a non-ICE entity. FIDS does not own the wireless network that would be used to provide the services.

Wireless Connection for
Third Party Data

Wireless connection of
Nasdaq BX TotalViewITCH FPGA data

Wireless Connection for
Third Party Data

Wireless connection of
Nasdaq PSX TotalView
data

Wireless Connection for
Third Party Data

Wireless connection of
Nasdaq PSX TotalViewITCH FPGA data

$5,000 per connection
initial charge plus
monthly charge per
connection of $7,500
Fees are subject to a 30day testing period,
during which the
monthly charge per
connection is waived.
$5,000 per connection
initial charge plus
monthly charge per
connection of $6,000
Fees are subject to a 30day testing period,
during which the
monthly charge per
connection is waived.
$5,000 per connection
initial charge plus
monthly charge per
connection of $7,500
Fees are subject to a 30day testing period,
during which the
monthly charge per
connection is waived.

Each proposed Connectivity service would include the use of one wireless connection
port, and a User would not pay a separate fee for the use of such port, provided that if a User
already had a port for Existing Third Party Data other than Toronto Stock Exchange data or
CME Group data (“Single Port Third Party Data”), it would not receive an additional port for the
Proposed Third Party Data, as one would not be needed.11 Rather, the User would be able to
connect to Proposed Third Party Data using the same port that it already had, as a User would

Similarly, if a User connected to Proposed Third Party Data on a port for which it did not pay a separate fee
for its use, it would not receive a new port if it subsequently connected to Single Port Third Party Data.
Connection to Toronto Stock Exchange data and CME Group data are excepted because they each require
their own port. See Securities Act Release Nos. 80215 (February 28, 2017), 82 FR 12658 (March 6, 2017)
(SR-NYSE-2017-05), and 98962 (November 16, 2023), 88 FR 81485 (November 22, 2023) (SR-NYSE2023-44).

only require one port to connect to the Proposed Third Party Data and Single Port Third Party
Data, irrespective of how many of the wireless connections it orders.
To receive a market data feed in the Proposed Third Party Data, the User would enter into
an agreement with a third party for permission to receive the data, if required. The User would
pay this third party any fees for the data content. If a User were to purchase more than one
wireless connection to Proposed Third Party Data, it would pay more than one non-recurring
initial charge.
Application and Impact of the Proposed Changes
The proposed changes would not apply differently to distinct types or sizes of market
participants. Rather, they would apply to all Users equally. As is currently the case, the purchase
of any colocation service is completely voluntary and the Fee Schedule is applied uniformly to
all Users.
The Connectivity to Proposed Third Party Data was requested by Users, but the
Exchange believes that it would obtain less than a handful of new customers due to the proposed
change.
Competitive Environment
The Exchange operates in a highly competitive market in which other vendors offer
colocation services as a means to facilitate the trading and other market activities of those market
participants who believe that colocation enhances the efficiency of their operations. The
Commission has repeatedly expressed its preference for competition over regulatory intervention
in determining prices, products, and services in the securities markets. Specifically, in Regulation
NMS, the Commission highlighted the importance of market forces in determining prices and
SRO revenues and, also, recognized that current regulation of the market system “has been
remarkably successful in promoting market competition in its broader forms that are most
important to investors and listed companies.”12
See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).

As explained below in this filing, the Exchange’s proposed Connectivity to Proposed
Third Party Data would compete with the wireless connections provided by at least two third
parties. Third-party vendors are not at any competitive disadvantage created by the Exchange.
The proposed change is not otherwise intended to address any other issues relating to
colocation services 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,13 in general, and furthers the objectives of Section 6(b)(5) of the Act,14 in particular,
because it is designed to prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and coordination with persons engaged in
regulating, clearing, settling, processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the public interest and because
it is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
The Exchange further believes that the proposed rule change is consistent with Section 6(b)(4) of
the Act,15 because it provides for the equitable allocation of reasonable dues, fees, and other
charges among its members and issuers and other persons using its facilities and does not
unfairly discriminate between customers, issuers, brokers, or dealers.
The Proposed Change Is Reasonable
The Exchange believes that the proposed rule change is reasonable. In considering the
reasonableness of proposed services and fees, the Commission’s market-based test considers
“whether the exchange was subject to significant competitive forces in setting the terms of its

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

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

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

proposal . . . , including the level of any fees.”16 If the Exchange meets that burden, “the
Commission will find that its proposal is consistent with the Act unless ‘there is a substantial
countervailing basis to find that the terms’ of the proposal violate the Act or the rules
thereunder.”17 Here, the Exchange is subject to significant competitive forces in setting the terms
on which it offers its proposal, in particular because substantially similar substitutes are
available, and the Exchange has not placed the third party vendors at a competitive disadvantage
created by the Exchange.
Substantially Similar Substitutes Are Available
The Exchange’s proposed Connectivity to Proposed Third Party Data would compete
with other methods by which both the Exchange and various third parties already provide, or
could provide, Users with connectivity to the Proposed Third Party Data.
At least two telecoms provide wireless connectivity in the MDC. A User could use such
connectivity to connect to the Proposed Third Party Data. The Exchange believes that these
wireless connections are at a same or similar speed as the Exchange’s proposed Connectivity,
and at a similar price.18
Accordingly, the wireless connections would compete with the Exchange’s proposed
Connectivity and would exert significant competitive forces on the Exchange in setting the terms
of its proposal, including the level of the Exchange’s proposed fees.19 If the Exchange were to set

See Securities Exchange Act Release No. 90209 (October 15, 2020), 85 FR 67044, 67049 (October 21,
2020) (Order Granting Accelerated Approval to Establish a Wireless Fee Schedule Setting Forth Available
Wireless Bandwidth Connections and Wireless Market Data Connections) (SR-NYSE-2020-05, SRNYSEAMER-2020-05, SR-NYSEARCA-2020-08, SR-NYSECHX-2020-02, SR-NYSENAT-2020-03, SRNYSE-2020-11, SR-NYSEAMER-2020-10, SR-NYSEArca-2020-15, SR-NYSECHX-2020-05, SRNYSENAT-2020-08) (“Wireless Approval Order”), citing Securities Exchange Act Release No. 59039
(December 2, 2008), 73 FR 74770, 74781 (December 9, 2008) (“2008 ArcaBook Approval Order”). See
NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).

See Wireless Approval Order, supra note 16, at 67049, citing 2008 ArcaBook Approval Order, supra note
16, at 74781.

Because the telecoms are not regulated entities, they are not obligated to make its latency figures or fees
publicly available or the same for all entities.

See 2008 ArcaBook Approval Order, supra note 16, at 74789 and n.295 (recognizing that products need not
be identical to be substitutable).

its proposed fees too high, Users could respond by instead selecting the telecoms’ substantially
similar wireless connectivity.20
Third Party Competitors Are Not at a Competitive Disadvantage Created by the
Exchange
The Exchange does not believe that FIDS would have any competitive advantage over
either the existing third-party telecom connections or any future providers of wireless
connectivity to Proposed Third Party Data. The Exchange’s proposed service for connectivity to
Proposed Third Party Data does not have any special access to or advantage within the MDC.
More specifically, the Exchange’s proposed wireless connection would lead to the data center
pole, from which a fiber connection would lead into the MDC. The data center pole is on the
grounds of the MDC, but pursuant to Exchange rule, the distance from such pole to the patch
panel where fiber connections for wireless services connect to the network row in the space used
for co-location in the MDC (the “Patch Panel Point”) is normalized.21
Exchange rules also require that the distance from the Patch Panel Point to each User
cabinet in colocation be the same.22 Further, all distances in the MDC are normalized. Every
provider of wireless connectivity to Users, including FIDS, is connected to the Patch Panel Point,
and the length of the fiber path from the Patch Panel Point to each User cabinet in colocation is
the same.
Nor does the Exchange have a competitive advantage over any third-party competitors
offering wireless connectivity to the Proposed Third Party Data by virtue of the fact that it owns
and operates the MDC’s meet-me-rooms. Users purchasing wireless connectivity to the Proposed
Third Party Data – like Users of any other colocation service – would require a circuit

In addition, the Exchange believes that at least three third-party market participants, as well as FIDS, offer
fiber connections to the Proposed Third Party Data in colocation. See Securities Exchange Act Release No.
82620 (February 1, 2018), 83 FR 5488 (February 7, 2018) (SR-NYSE-2018-05).

See NYSE Rule 3.13, NYSE American Rule 3.13E, NYSE Arca Rule 3.13, NYSE Chicago Rule 3.13, and
NYSE National Rule 3.13 (Data Center Pole Restrictions—Connectivity to Co-Location Space) (placing
restrictions on use of the data center pole designed to address any advantage that the wireless connections
have by virtue of a data center pole).

See id.

connecting out of the MDC, and in most cases, such circuits are provided by third-party
telecommunications service providers that have installed their equipment in the MDC’s two
meet-me-rooms (“Telecoms”).23 Currently, 16 Telecoms operate in the meet-me-rooms and
provide a variety of circuit choices. It is in the Exchange’s best interest to set the fees that
Telecoms pay to operate in the meet-me-rooms at a reasonable level24 so that market
participants, including Telecoms, will maximize their use of the MDC. By setting the meet-meroom fees at a reasonable level, the Exchange encourages Telecoms to participate in the meetme-rooms and to sell circuits to Users for connecting into and out of the MDC. These Telecoms
then compete with each other by pricing such circuits at competitive rates. These competitive
rates for circuits help draw in more Users and Hosted Customers to the MDC, which directly
benefits the Exchange by increasing the customer base to whom the Exchange can sell its
colocation services, which include cabinets, power, ports, and connectivity to many third-party
data feeds, and because having more Users and Hosted Customers leads, in many cases, to
greater participation on the Exchange. In this way, by setting the meet-me-room fees at a level
attractive to telecommunications firms, the Exchange spurs demand for all of the services it sells
at the MDC, while setting the meet-me-room fees too high would negatively affect the
Exchange’s ability to sell its services at the MDC.25 Accordingly, there are real constraints on the
meet-me-room fees the Exchange charges, such that the Exchange does not have an advantage in
terms of costs when compared to third parties that enter the MDC through the meet-me-rooms to
provide services to compete with the Exchange’s services.
If anything, the Exchange would be subject to a competitive disadvantage vis-à-vis thirdparty competitors offering wireless connectivity to the Proposed Third Party Data. Third-party
Note that in the case of wireless connectivity, a User in colocation still requires a fiber circuit to transport
data. If a Telecom is used, the data is transmitted wirelessly to the relevant pole, and then from the pole to
the meet-me-room using a fiber circuit.

See Securities Exchange Act Release No. 97998 (July 26, 2023), 88 FR 50238 (August 1, 2023) (SRNYSE-2023-27) (“MMR Notice”).

See id. at 50241. Importantly, the Exchange is prevented from making any alteration to its meet-me-room
services or fees without filing a proposal for such changes with the Commission.

competitors are not subject to the Commission’s filing requirements, and therefore can freely
change their services and pricing in response to competitive forces. In contrast, the Exchange’s
service and pricing would be standardized as set out in this filing, and the Exchange would be
unable to respond to pricing pressure from its competitors without seeking a formal fee change in
a filing before the Commission.
In sum, because the Exchange is subject to significant competitive forces in setting the
terms on which it offers its proposal, in particular because a substantially similar substitute is
available, and the Exchange has not placed third-party vendors at a competitive disadvantage
created by the Exchange, the proposed fees for the Exchange’s Connectivity to Proposed Third
Party Data are reasonable.26 If the Exchange were to set its prices for Connectivity to Proposed
Third Party Data at a level that Users found to be too high, Users could easily choose to connect
to Proposed Third Party Data in colocation at the MDC through the competing wireless
connections, as detailed above.
Additional Considerations
The Exchange believes that it is reasonable to add text to the Fee Schedule indicating that
the monthly charge for the proposed Connectivity is subject to a 30-day testing period, during
which the monthly charge per connection would be waived. The change would clarify that the
terms on which the Connectivity to Proposed Third Party Data is offered are the same as those of
most connections to Existing Third Party Data.
The Exchange believes it is reasonable that if a User already had a port for Single Port
Third Party Data, it would not receive an additional port for the Proposed Third Party Data. In
such a case, no additional port would be needed, as the User would be able to connect to
Proposed Third Party Data using the port it already had. Similarly, the Exchange believes it is
reasonable that if a User connected to Proposed Third Party Data on a port for which it did not

See Wireless Approval Order, supra note 16.

pay a separate fee for its use, it would not receive a new port if it subsequently connected to
Single Port Third Party Data. This is because a User would only require one port to connect to
Proposed Third Party Data and Single Port Third Party Data, irrespective of how many of the
wireless connections it orders.
The Proposed Change Is an Equitable Allocation of Fees and Credits
The Exchange believes that its proposal equitably allocates its fees among Users. Without
this proposed rule change, Users would have fewer options for connectivity to Proposed Third
Party Data. The proposed change would provide Users with an additional choice with respect to
the form and optimal latency of the connectivity they use to receive Proposed Third Party Data,
allowing a User to select the connectivity that better suits its needs, helping it tailor its colocation
operations to the requirements of its business operations. Users that do not opt to utilize the
Exchange’s proposed wireless Connectivity would still be able to connect to Proposed Third
Party Data wirelessly using third party wireless connections.
The Exchange believes that the proposed change is equitable because it will result in fees
being charged only to Users that voluntarily select to receive the corresponding services and
because those services will be available to all Users. Furthermore, the Exchange believes that the
services and fees proposed herein are equitably allocated because, in addition to the services
being completely voluntary, they are available to all Users on an equal basis (i.e., the same
products and services are available to all Users). All Users that voluntarily select the Exchange’s
proposed Connectivity to Proposed Third Party Data would be charged the same amount for the
same services.
The Exchange believes it is equitable that if a User already had a port for Single Port
Third Party Data, it would not receive an additional port for the Proposed Third Party Data.
Similarly, the Exchange believes it is equitable that if a User connected to Proposed Third Party
Data on a port for which it did not pay a separate fee for its use, it would not receive a new port
if it subsequently connected to Single Port Third Party Data. This is because a User would only

require one port to connect to Proposed Third Party Data and Single Port Third Party Data,
irrespective of how many of the wireless connections it orders.
The Proposed Change Is Not Unfairly Discriminatory
The Exchange believes that the proposed rule change is not unfairly discriminatory, for
the following reasons.
Without this proposed rule change, Users would have fewer options for Connectivity to
Proposed Third Party Data. The proposed change would provide Users with an additional choice
with respect to the form and optimal latency of the connectivity they use to receive Proposed
Third Party Data, allowing a User to select the connectivity that better suits its needs, helping it
tailor its colocation operations to the requirements of its business operations. Users that do not
opt to utilize the Exchange’s proposed wireless Connectivity would still be able to connect to
Proposed Third Party Data wirelessly using third party wireless connections.
The Exchange believes that the proposed change is not unfairly discriminatory because it
will result in fees being charged only to Users that voluntarily select to receive the corresponding
services and because those services will be available to all Users. Furthermore, the Exchange
believes that the services and fees proposed herein are not unfairly discriminatory because, in
addition to the services being completely voluntary, they are available to all Users on an equal
basis (i.e., the same products and services are available to all Users). All Users that voluntarily
select the Exchange’s proposed Connectivity to Proposed Third Party Data would be charged the
same amount for the same services.
The Exchange believes it is not unfairly discriminatory that if a User already had a port
for Single Port Third Party Data, it would not receive an additional port for the Proposed Third
Party Data. Similarly, the Exchange believes that it is not unfairly discriminatory that if a User
connected to Proposed Third Party Data on a port for which it did not pay a separate fee for its
use, it would not receive a new port if it subsequently connected to Single Port Third Party Data.
This is because a User would only require one port to connect to Proposed Third Party Data and

Single Port Third Party Data, irrespective of how many of the wireless connections it orders.
B.

Self-Regulatory Organization’s Statement on Burden on Competition

The Exchange believes that the proposal will not impose any burden on competition that
is not necessary or appropriate in furtherance of the purposes of Section 6(b)(8) of the Act.27
The proposed change would not affect competition among national securities exchanges
or among members of the Exchange, but rather between FIDS and its commercial competitors.
The proposed wireless Connectivity would provide Users with an alternative means of
connectivity to Proposed Third Party Data. The proposed change would provide Users with an
additional choice with respect to the form and optimal latency of the connectivity they use to
receive Proposed Third Party Data, allowing a User to select the connectivity that better suits its
needs, helping it tailor its colocation operations to the requirements of its business operations.
Users that do not opt to utilize the Exchange’s proposed wireless Connectivity would still
be able to connect to Proposed Third Party Data wirelessly using third party wireless
connections.
The Exchange does not believe that FIDS would have any competitive advantage over
either the existing third-party telecom connections or any future providers of wireless
connectivity to Proposed Third Party Data. The proposed Connectivity to Proposed Third Party
Data does not have any special access to or advantage within the MDC. More specifically, the
Exchange’s proposed wireless connection would lead to the data center pole, from which a fiber
connection would lead into the MDC. The data center pole is on the grounds of the MDC, but
pursuant to Exchange rule, the distance from such pole to the Patch Panel Point is normalized.28
Exchange rules also require that the distance from the Patch Panel Point to each User cabinet in
colocation be the same.29 Further, all distances in the MDC are normalized. Every provider of

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

See supra note 21.

See id.

wireless connectivity to Users, including FIDS, is connected to the Patch Panel Point, and the
length of the fiber path from the Patch Panel Point to each User cabinet in colocation is the same.
Adding text to the Fee Schedule indicating that the monthly charge for Connectivity to
the Proposed Third Party Data is subject to a 30-day testing period, during which the monthly
charge per connection would be waived, is not designed to address any competitive issues, but
rather to enhance the clarity and transparency of the Fee Schedule and alleviate possible
customer confusion that may arise. Nor does the Exchange have a competitive advantage over
any third-party competitors offering wireless connectivity to the Proposed Third Party Data by
virtue of the fact that it owns and operates the MDC’s meet-me-rooms. Users purchasing
wireless connectivity to the Proposed Third Party Data – like Users of any other colocation
service – would require a circuit connecting out of the MDC, and in most cases, such circuits are
provided by third-party Telecoms.30 Currently, 16 Telecoms operate in the meet-me-rooms and
provide a variety of circuit choices. It is in the Exchange’s best interest to set the fees that
Telecoms pay to operate in the meet-me-rooms at a reasonable level31 so that market
participants, including Telecoms, will maximize their use of the MDC. By setting the meet-meroom fees at a reasonable level, the Exchange encourages Telecoms to participate in the meetme-rooms and to sell circuits to Users for connecting into and out of the MDC. These Telecoms
then compete with each other by pricing such circuits at competitive rates. These competitive
rates for circuits help draw in more Users and Hosted Customers to the MDC, which directly
benefits the Exchange by increasing the customer base to whom the Exchange can sell its
colocation services, which include cabinets, power, ports, and connectivity to many third-party
data feeds, and because having more Users and Hosted Customers leads, in many cases, to
greater participation on the Exchange. In this way, by setting the meet-me-room fees at a level
attractive to telecommunications firms, the Exchange spurs demand for all of the services it sells

See supra note 23.

See MMR Notice, supra note 24.

at the MDC, while setting the meet-me-room fees too high would negatively affect the
Exchange’s ability to sell its services at the MDC.32 Accordingly, there are real constraints on the
meet-me-room fees the Exchange charges, such that the Exchange does not have an advantage in
terms of costs when compared to third parties that enter the MDC through the meet-me-rooms to
provide services to compete with the Exchange’s services.
If anything, the Exchange would be subject to a competitive disadvantage vis-à-vis thirdparty competitors offering wireless connectivity to the Proposed Third Party Data. Third-party
competitors are not subject to the Commission’s filing requirements, and therefore can freely
change their services and pricing in response to competitive forces. In contrast, the Exchange’s
service and pricing would be standardized as set out in this filing, and the Exchange would be
unable to respond to pricing pressure from its competitors without seeking a formal fee change in
a filing before the Commission.
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 Act33 and Rule 19b-4(f)(6) thereunder.34 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.35
See id. at 50241.

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

17 CFR 240.19b-4(f)(6).

17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file the proposed rule change at least five business days prior
to the date of filing of the proposed rule change, or such shorter time as designated by the Commission.

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)36 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
(https://www.sec.gov/rules/sro.shtml); or

•

Send an email to rule-comments@sec.gov. Please include file number
SR-NYSE-2024-37 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-NYSE-2024-37. This file number should
be included on the subject line if email is used. To help the Commission process and review
your comments more efficiently, please use only one method. The Commission will post all
comments on the Commission’s internet website (https://www.sec.gov/rules/sro.shtml). Copies
of the submission, all subsequent amendments, all written statements with respect to the
proposed rule change that are filed with the Commission, and all written communications

The Exchange has satisfied this requirement.
15 U.S.C. 78s(b)(2)(B).

relating to the proposed rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission’s Public Reference Room, 100 F
Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3
p.m. Copies of the filing also will be available for inspection and copying at the principal office
of the Exchange. Do not include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We may redact in part or
withhold entirely from publication submitted material that is obscene or subject to copyright
protection. All submissions should refer to file number SR-NYSE-2024-37 and should be
submitted on or before [INSERT DATE 21 DAYS AFTER DATE OF PUBLICATION IN THE
FEDERAL REGISTER].
For the Commission, by the Division of Trading and Markets, pursuant to delegated
authority.37
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-14380 Filed: 6/28/2024 8:45 am; Publication Date: 7/1/2024]

17 CFR 200.30-3(a)(12).