2024-31505Notice

Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change To Amend the Connectivity Fee Schedule

Published Date: 1/3/2025

Notice

Summary

The New York Stock Exchange (NYSE) wants to update its fee schedule to charge for new connections between its data center in New Jersey and its trading floors. This change affects traders and firms who use these connections to send and receive trading info. The new fees will kick in once approved, so users should get ready for possible extra costs.

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Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

New monthly fees for floor connectivity

The NYSE proposes to add paid connections between the Mahwah, New Jersey data center (MDC) and NYSE, NYSE American, and NYSE Arca trading floors. The Fee Schedule lists monthly charges including: 1 Mb for $200 monthly, 5 Mb for $400 monthly, 25 Mb for $500 monthly, 100 Mb for $800 monthly, and additional monthly charge levels shown as $1,200, $1,800, and $2,500; these fees would apply once the Commission approves the proposed rule change.

Different billing for VCC versus VRF

The Fee Schedule notes two TF Connection types: a virtual control circuit (VCC) between the MDC and a single Trading Floor, and a virtual routing and forwarding service (VRF) between the MDC and one or more Trading Floors. If a User chooses VCCs (or a combination of VCC and VRF) to connect to several Trading Floors, the User will be charged separately for each connection; if the User chooses one VRF for multiple Trading Floors, the User will be charged for one connection.

Connections limited to data, not order entry

The Exchange states that TF Connections are for receiving and transmitting trading-related data and providing services to individuals on the floor; establishing a TF Connection will not provide direct access or order entry to the Exchange's execution system, and will not give FIDS or the Exchange any right to use the Exchange's system.

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Key Dates

Published Date
1/3/2025

Department and Agencies

Department
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