Voglio sapere a riguardo di…

Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices Competitive Environment IDS operates in a highly competitive market in which exchanges, third party telecommunications providers, Hosting Users,13 and other third-party vendors offer connectivity services as a means to facilitate the trading and other market activities of market participants. 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. 14
The proposed changes are not otherwise intended to address any other issues relating to services related to the Mahwah Data Center and/or related fees, and the Exchange is not aware of any problems that market participants would have in complying with the proposed change.

jbell on DSKJLSW7X2PROD with NOTICES

2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6b of the Act,15 in general, and furthers the objectives of Section 6b5
of the Act,16 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 6b4 of the Act,17 because it provides for the equitable allocation of reasonable dues, fees, and other charges 13 Hosting is a service offered by a User to another entity In the Users space within the Mahwah Data Center. The Exchange allows Users to act as Hosting Users for a monthly fee. See NYSE
National Colocation Notice, supra note 4, at 26318.
14 See Securities Exchange Act Release No. 51808
June 9, 2005, 70 FR 37496, 37499 June 29, 2005
Regulation NMS Adopting Release.
15 15 U.S.C. 78fb.
16 15 U.S.C. 78fb5.
17 15 U.S.C. 78fb4.

VerDate Sep<11>2014

20:27 Mar 03, 2021

Jkt 253001

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 and would perfect the mechanisms of a free and open market and a national market system and, in general, protect investors and the public interest, for the following reasons.
General: Only the market participants that voluntarily select to receive the IDS
services described herein are charged for them, and those services are available to all market participants.
Furthermore, the IDS 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. All market participants that voluntarily select a specific proposed IDS service would be charged the same amount for that service as all other market participants purchasing that service.
In addition, the Exchange believes that the proposed rule change is reasonable because the IDS services described herein are offered as a convenience to market participants, but offering them requires the provision, maintenance, and operation of the Mahwah Data Center, including the installation, monitoring, support, and maintenance of the services.
Mahwah Circuits: The Exchange believes the fees proposed herein for IDSs Mahwah Circuits are reasonable.
The market for circuits into and out of the Mahwah Data Center is competitive, and the proposed IDS offerings are merely one of several options from which market participants can choose.
Each of the third-party telecommunications providers that has a presence in the Mahwah Data Centers Meet Me Rooms offers similar circuits to market participants, in competition with the IDS offerings proposed here.
Each market participant considering whether to purchase a circuit directly can weigh that option against similar circuits offered by those third-party carriers, and can choose which circuit to purchase based on which combination of latency, bandwidth, price, and other factors best meets its business needs.
Indeed, the Exchange understands 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.

PO 00000

Frm 00167

Fmt 4703

Sfmt 4703

12759

IDS Network Ports: The Exchange believes that the IDS Network ports proposed herein are reasonable. The market for connecting with the Exchanges trading and execution systems is competitive, and the proposed IDS Network ports that IDS
provides are merely one of several options that market participants may choose. As alternatives to the IDS
Network ports, a market participant would be able to access or connect to Exchange Systems, Third Party Systems, Included Data Products, Third Party Data Feeds, third party testing and certification feeds, and DTCC through a a connection to an IDS access center outside of the Mahwah Data Center, b a third-party access center, c a thirdparty vendor, d a Hosting User, or e colocation.
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. IDSs offering of connectivity services via IDS
Network ports gives market participants another service to evaluate and consider, thereby broadening their options for connectivity to the Exchange Systems and allowing them to tailor their connectivity options to their specific needs.
The Exchange further believes that the proposed fees for IDS Network ports for NCL Customers are reasonable because such prices are constrained by competition with the numerous other providers that offer connectivity to the Exchange Systems. If IDS were to attempt to offer such ports at a supracompetitive price, potential customers would likely respond by seeking out less expensive substitutes from other providers.
NCL NMS Network Ports: The Exchange believes that the proposed fees for NMS Network ports for NCL
Customers are reasonable to recoup the costs of building the NMS Network.
Until 2019, SIAC was required to provide connectivity to the NMS feeds only via the IP network. Although the operating committees for the CTA/CQ
Plans authorized SIAC to offer connectivity to the NMS feeds in the Mahwah Data Center via an alternate, dedicated, low-latency NMS Network, the operating committee did not assume the costs of creating such a network;
instead, the Exchange and the Affiliate SROs funded the capital and operational expenses to build and operate the NMS
Network. The implementation costs of approximately $3.8 million are
E:FRFM04MRN1.SGM

04MRN1