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Federal Register / Vol. 86, No. 24 / Monday, February 8, 2021 / Notices Proposed Addition of Option E and Option F PCS Bundles
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The Fee Schedules currently list four PCS bundles, Options A through D. As originally formulated, each PCS bundle option included a partial cabinet powered to a maximum of 2 kilowatts kW; access to the liquidity center network LCN and internet protocol IP networks, the local area networks available in the data center; two fiber cross connections; and connectivity to one of two time feeds.6 The PCS
bundles are designed to attract smaller Users, including those with minimal power or cabinet space demands or those for which the costs attendant with having a dedicated cabinet are too burdensome.7 Users are only eligible to purchase PCS bundles if they meet specified requirements, set forth in General Note 2 of Fee Schedules.8

In May 2020, the Exchange amended PCS bundle Options C and D to each include two 10 Gb connections to the NMS Network, an alternate dedicated network connection that Users could use to access the NMS feeds for which the Securities Industry Automation Corporation SIAC is engaged as the securities information processor SIP.9 These two 10 Gb NMS
Network connections were added to the Option C and D bundles at no additional cost.
In response to customer interest, the Exchange now proposes to add two new PCS bundles to the Fee Schedules.
Proposed Options E and F would be substantially similar to Options C and D, respectively, with the difference that each connection included in the proposed bundles would be upgraded to 40 Gb from 10 Gb: That is, proposed Options E and F would include a 1 kw
8663

Option E or 2 kw Option F partial cabinet, one 40 Gb LCN connection, one 40 Gb IP network connection, two 40 Gb NMS Network connections, and either the Network Time Protocol Feed or the Precision Timing Protocol. Users selecting an Option E or F bundle would be charged the same initial charge of $10,000 that currently applies to Options C and D. In addition, Users would be charged monthly recurring charges MRC of $18,000 for an Option E bundle and $19,000 for an Option F bundle. The Exchange proposes that Users that purchase Option E or F bundles on or before December 31, 2021 would receive a 50%
reduction in the MRC for the first 12
months.
The amended portion of the Fee Schedules would read as follows proposed additions italicized:

Type of service
Description
Amount of charge
Partial Cabinet Solution bundles Note:
A User and its Affiliates are limited to one Partial Cabinet Solution bundle at a time. A User and its Affiliates must have an Aggregate Cabinet Footprint of 2 kW or less to qualify for a Partial Cabinet Solution bundle. See Note 2 under General Notes.

Option E: 1 kW partial cabinet, 1 LCN connection 40 Gb, 1 IP network connection 40 Gb, 2
NMS Network connections 40 Gb each, 2 fiber cross connections and either the Network Time Protocol Feed or Precision Timing Protocol.

$10,000 initial charge per bundle plus monthly charge per bundle as follows:
For Users that order on or before December 31, 2021: $9,000 monthly for first 12 months of service, and $18,000 monthly thereafter.
For Users that order after December 31, 2021:
$18,000 monthly.

Option F: 2 kW partial cabinet, 1 LCN connection 40 Gb, 1 IP network connection 40 Gb, 2
NMS Network connections 40 Gb each, 2 fiber cross connections and either the Network Time Protocol Feed or Precision Timing Protocol.

$10,000 initial charge per bundle plus monthly charge per bundle as follows:
For Users that order on or before December 31, 2021: $9,500 monthly for first 12 months of service, and $19,000 monthly thereafter.
For Users that order after December 31, 2021:
$19,000 monthly.

The Exchange proposes that General Note 2 of the Fee Scheduleswhich currently applies to PCS bundle Options A through Dwould also apply to proposed Option E and F bundles, without alteration. Specifically, a User and its Affiliates would be limited to one PCS bundle at a time, and a User and its Affiliates must have an Aggregate Cabinet Footprint of 2 kW or less to qualify for a PCS bundle.
The Exchange is not proposing any changes to PCS bundle Options A
through D.

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.
Users that require other sizes or combinations of cabinets, network connections, and cross connects could still request them. As is currently the case, the purchase of any co-location service, including PCS bundles, is completely voluntary and the Fee Schedules are applied uniformly to all Users.

A User may host another entity in its space within the data center. Such Users are called Hosting Users, and their customers are Hosted Customers. 10
Based on conversations with Users and potential customers, the Exchange believes that Hosting Users offer bundles Hosting User Bundles that include cabinet space and space on shared LCN, IP, and NMS network connections, and that the Hosting User Bundles provide their end users with a service similar to that of the PCS
bundles.11

6 See Securities Exchange Act Release No. 77070
February 5, 2016, 81 FR 7401 February 11, 2016
SRNYSEArca2015102.
7 See id. at 7402.
8 See id. The definitions of Affiliate and Aggregate Cabinet Footprint were added to the Fee Schedules at the same time.
9 See Securities Exchange Act Release Nos. 88837
May 7, 2020, 85 FR 28671 May 13, 2020 SR

NYSE201946, SRNYSEAMER201934, SR
NYSEArca201961, SRNYSENAT201919
NMS Network Approval Order and 88972 May 29, 2020, 85 FR 34472 June 4, 2020 NYSE
Chicago NMS Network Approval Order.
10 A Hosting User is required to be a User, but because only Users can be Hosting Users, a Hosted Customer is not able to provide hosting services to any other entities in the space in which it is hosted.
The Exchange allows Users to act as Hosting Users
for a monthly fee. See Securities Exchange Act Release No. 76010 September 29, 2015, 80 FR
60197 October 5, 2015 SRNYSEArca201582.
11 Because Hosting Users services are not regulated, they may offer differentiated pricing and are not required to make their pricing public or disclose it to the Exchange. The Exchange therefore does not have direct visibility into the specific range of options, or cost thereof, offered by Hosting Users, and relies on third parties for information.

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