NYSE Wireless Market Data Connectivity
Summary
SIFMA provided comments to the Securities and Exchange Commission (SEC) on the NYSE Rule Proposal to Amend the Schedule of Wireless Connectivity Fees and Charges to Add Wireless Connectivity Services (File No. SR-NYSE-2020-11; Release No. 34-88237).
Excerpt
April 3, 2020
Vanessa Countryman
Secretary
Securities and Exchange Commission
100 F Street NE., Washington, DC 20549
Re: NYSE Rule Proposal to Amend the Schedule of Wireless Connectivity Fees and Charges to Add Wireless Connectivity Services; File No. SR-NYSE-2020-11
Dear Ms. Countryman:
The Securities Industry and Financial Markets Association (“SIFMA”)1 submits this letter to comment on the above-referenced filing submitted to the U.S. Securities and Exchange Commission (“Commission”) to add wireless connectivity services and charge applicable fees by New York Stock Exchange LLC (“NYSE”).2 First, we agree with the Commission that the wireless market data connections are facilities of the exchange and that the NYSE proposed rule filing with the Commission is appropriate. Second, we believe NYSE failed to provide sufficient information for the Commission to determine whether the proposed fees for the wireless connectivity services meet the requirements of the Securities Exchange Act of 1934 (“Exchange Act”).3
Ice Data Services (“NYSE Affiliate”) offering of the wireless connectivity service with NYSE’s consent falls within the definition of an exchange facility, and therefore NYSE appropriately filed the proposed rule with the Commission. As noted in the proposal,4 the definition of an exchange includes the “market facilities maintained by such exchange.” Part of the definition of “facility” under the Exchange Act includes “any right to the use of such premises or property or any service thereof for the purpose of effecting or reporting a transaction on an exchange (including, among other things, any system of communication to or from the exchange, by ticker or otherwise, maintained by or with the consent of the exchange).”5 The relevant determining factor for whether the wireless connectivity services should be considered an exchange facility depends on whether the provider of such services operates a communication system that provides reports of transactions effected on the exchange with the consent of the exchange.6
1 SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.
2 See Securities Exchange Act Release No. 88237 (Feb. 19, 2020) (“Proposal”).
3 See,e.g., 15 U.S.C. 78f(b)(4); 78f(b)(5); and 78f(b)(8).
4 Proposal at 7.
5 15 U.S.C. 78c(a)(2).