SEC to Decide on NYSE Wireless Data Proposal in October
August 21st| 2020
The SEC announced it is taking an additional 60 days to either approve or disapprove NYSE’s Proposed Rule Change to Establish a Schedule of Wireless Connectivity Fees and Charges with Wireless Connections. NYSE’s proposal centers around whether a new wireless data service between data centers are a part of “the market facilities maintained by [an] exchange.” NYSE believes they are not and argues its proposal fails to meet the four-prong definition of a “facility”.
Several commenters disagree. One contentious point is that one of the wireless antennae will be located on NYSE data center property at the exclusion of others. Several commenters argue this is a physical advantage, much like having a shorter cable from a server to the exchange, that no one else will be able to match. Thus, high-speed traders and other brokers say they will have no choice but to subscribe to NYSE’s new service. The SEC now has until October 15, 2020 to rule on the proposed rule change pursuant to Section 19(b)(2) of the Act.