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Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices
jbell on DSKJLSW7X2PROD with NOTICES

applicable only to the NMS Network, which is used for the sole purpose of providing access to the NMS feeds.
None of the implementation costs are applicable to any other Exchange services. As of the date of this filing, only one customer has contracted with IDS for an NCL NMS Network port, and the Exchange expects that demand for NMS Network ports outside of colocation will be very low. The service is nevertheless available, and so the Exchange proposes to add it to the Fee Schedule.
NCL Notes: With respect to proposed NCL Notes 1, 2, 3, and 4, the Exchange believes they are reasonable because they provide detailed descriptions of the access and connectivity that NCL
Customers receive when they purchase IDS Network or NMS Network ports.
Such detailed descriptions 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 they provide market participants with transparency and clarity as to what connectivity is included in the purchase of IDS
Network or NMS Network ports by NCL
Customers.18 The notes would also make clear that all NCL Customers that voluntarily select to access the IDS
Network or NMS Network receive the same access and connectivity, and are not subject to a charge above and beyond the fee paid for the relevant IDS
Network or NMS Network ports. The notes further make clear that NCL
Customers are not required to use any of their bandwidth to access Exchange systems or connect to an Included Data Product unless they wish to do so;
rather, an NCL Customer only receives the access and connectivity that it selects, and can change what access or connectivity it receives at any time, subject to authorization from the data provider or the relevant Exchange or Affiliate SRO.19 Notes 1, 2, 3, and 4 are all based on similar provisions in the Exchanges Price List for colocation.
Other NCL Services: The Exchange believes it is reasonable to specify in the Fee Schedule NCL Services that IDS
18 See Securities Exchange Act Release Nos.
79730 January 4, 2017, 82 FR 3045 January 10, 2017 SRNYSE201692; 79728 January 4, 2017, 82 FR 3035 January 10, 2017 SR
NYSEMKT2016126; 79729 January 4, 2017, 82
FR 3061 January 10, 2017 SRNYSEArca2016
172.
19 The General Note on page 1 of the Fee Schedule would also apply to all of the services proposed herein. A market participant that incurs fees for NCL connectivity or other NCL Services from the Exchange or one of the Affiliate SROs would not be subject to fees for the same service charged by the other Affiliate SROs.

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offers including NCL cross connects, the NCL Expedite Fee, the NCL Change Fee, and NCL connectivity to Third Party Systems, Third Party Data Feeds, thirdparty testing and certification feeds, and DTCC.
The Exchange believes that the specific fees it has proposed for NCL
cross connects, the NCL Expedite Fee, and the NCL Change Fee are reasonable.
As noted above, IDS faces competition in the market for connectivity from Hosting Users, IDS access centers outside of the Mahwah Data Center, third-party access centers, and thirdparty vendors. Market participants can consider IDSs proposed fees for the specific services listed above in the context of this competition, and choose the connectivity provider that offers the services the market participant needs at the optimal cost. As such, the proposed fees for these IDS services are constrained by competition.
The Exchange believes that charging distinct fees for different NCL Services is reasonable because not all market participants need or wish to utilize the same NCL Services. The proposed choice of services allows market participants to select which NCL
Services to use, based on their business needs, and market participants are only charged for the services that they select.
By charging only those market participants that utilize an NCL Service the related fee, those market participants that directly benefit from a service support its cost.
In addition, the Exchange believes that the proposed fees are reasonable because they allow the costs associated with offering different NCL Services to be defrayed or covered while providing market participants the benefit of such services. The Exchange believes that the proposed charges are reasonable because IDS offers NCL Services as conveniences to market participants, but in order to do so must provide, maintain, and operate the Mahwah Data Center facility hardware and technology infrastructure. IDS needs to provide network infrastructure that keeps pace with the number of services available to NCL Customers, including any increasing demand for bandwidth, and handle the installation, administration, monitoring, support, and maintenance of such services, including by responding to any production issues. In addition, in order to provide connectivity to Third Party Data Feeds, Third Party Systems, third party testing and certification feeds, and DTCC, IDS
must establish and maintain multiple connections to each Third Party Data Feed, Third Party System, and DTCC, allowing IDS to provide resilient and
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redundant connections, adapt to any changes made by the relevant third party, and cover any applicable fees other than redistribution fees charged by the relevant third party, such as port fees.
The Exchange believes it is reasonable for redistribution fees charged by providers of Third Party Data Feeds to be passed through to NCL Customers, without change to the fee. If not passed through, the cost of the redistribution fees would be factored into the proposed fees for connectivity to Third Party Data Feeds. The Exchange believes that passing through the fees makes them more transparent to the NCL
Customer, allowing the NCL Customer to better assess the cost of the connectivity to a Third Party Data Feed by seeing the individual components of the cost, i.e., IDSs fee and redistribution fee.
The Exchange believes that it is reasonable to not charge third-party markets or content providers for connectivity to their own Third Party Data Feeds, as the Exchange understands that such parties generally receive their own feeds for purposes of diagnostics and testing. The Exchange believes that facilitating such diagnostics and testing removes impediments to, and perfects the mechanisms of, a free and open market and a national market system and, in general, protects investors and the public interest.
Finally, the Exchange believes it is reasonable to make available third party testing and certification feeds to enable customers to test and certify their connections to third party data feeds.
The Proposed Change Is Equitable The Exchange believes that its proposal equitably allocates its fees among market participants.
The Exchange believes that the proposed change is equitable because it would not apply differently to distinct types or sizes of market participants.
Rather, it would apply to all NCL
Customers equally.
In addition, the Exchange believes that the proposal is equitable because only the market participants that voluntarily select to receive the services described herein would be charged for them. The services described in this filing are available to all market participants on an equal basis i.e., the same products and services are available to all market participants, and all market participants that voluntarily select a specific proposed service are charged the same amount for that service as all other market participants purchasing that service.

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