[Federal Register Volume 84, Number 250 (Tuesday, December 31, 2019)]
[Notices]
[Pages 72392-72396]
[FR Doc No: 2019-28212]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87853; File No. SR-NYSECHX-2019-27]

Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its
Price List To Extend for One Year a Fee Discount for the Partial
Cabinet Solution Bundles Offered in Connection With the Exchange's Co-
Location Services and Update Obsolete Text

December 23, 2019.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on December 20, 2019 the NYSE Chicago, Inc. (``NYSE
Chicago'' or the ``Exchange'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I, II, and III below, which Items have been prepared by the
self-regulatory organization. The Commission is publishing this notice
to solicit comments on the proposed rule change from interested
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the Fee Schedule of NYSE Chicago,
Inc. (the ``Fee Schedule'') to extend for one year a fee discount for
the Partial Cabinet Solution bundles offered in connection with the
Exchange's co-location services and update obsolete text. The proposed
rule change is available on the Exchange's website at www.nyse.com, at
the principal office of the Exchange, and at the Commission's Public
Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the Fee Schedule related to co-
location \4\ services to extend a fee discount for the Partial Cabinet
Solution (``PCS'') bundles that the Exchange offers Users.\5\
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    \4\ The Exchange initially filed rule changes relating to its
co-location services with the Securities and Exchange Commission
(``Commission'') in October 2019. See Securities Exchange Act
Release No. 87408 (October 28, 2019), 84 FR 58778 (November 1, 2019)
(SR-NYSECHX-2019-27) (``Co-location Notice''). The Exchange operates
a data center in Mahwah, New Jersey (the ``data center'') from which
it provides co-location services to Users.
    \5\ For purposes of the Exchange's co-location services, a
``User'' means any market participant that requests to receive co-
location services directly from the Exchange. See id. at note 6. As
specified in the Fee Schedule, a User that incurs co-location fees
for a particular co-location service pursuant thereto would not be
subject to co-location fees for the same co-location service charged
by the Exchange's affiliates the New York Stock Exchange LLC, NYSE
American LLC, NYSE Arca, Inc., and NYSE National, Inc.
(collectively, the ``Affiliate SROs''). See id. at 58779.
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    There are four PCS bundles, each of which includes a partial
cabinet; access to the Liquidity Center Network (``LCN'') and internet
protocol (``IP'') network, 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 were 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 or
greater network connection bandwidth are too burdensome.\7\
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    \6\ See id. at 58782.
    \7\ See Securities Exchange Act Release No. 77072 (February 5,
2016), 81 FR 7394 (February 11, 2016) (SR-NYSE-2015-53).
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    The Exchange offers Users that purchase a PCS bundle on or before
December 31, 2019 a 50% reduction in the monthly recurring charges
(``MRC'') for the first 24 months.\8\ The Exchange proposes to extend
the 50% fee reduction to those Users that purchase a PCS bundle on or
before December 31, 2020.\9\ The Exchange does not propose to amend the
length of the discount period.
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    \8\ See Co-location Notice, supra note 4, at 58783.
    \9\ Affiliate SROs previously extended the MRC reduction for one
year. See Securities Exchange Act Release Nos. 82223 (December 6,
2017) 82 FR 58459 (December 12, 2017) (SR-NYSE-2017-62); and 79715
(December 30, 2016), 82 FR 1777 (January. 6, 2017) (SR-NYSE-2016-
91).
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    In addition, the Exchange proposes to update obsolete text. At the
time the Exchange added the PCS bundles to its Fee Schedule, the
Affiliate SROs had

filed to amend two of the PCS bundles by replacing the 10 Gb LCN
connection with a LCN 10 Gb LX connection, but the changes had not yet
become operative.\10\ The Exchange included notes to the two Partial
Cabinet Solution bundles in the Fee Schedule indicating the expected
change.\11\
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    \10\ See Securities Exchange Act Release Nos. 86550 (August 1,
2019), 84 FR 38696 (August 7, 2019) (SR-NYSE-2019-41); 86548 (August
1, 2019), 84 FR 38704 (August 7, 2019) (SR-NYSEAmer-2019-28); 86547
(August 1, 2019), 84 FR 38708 (August 7, 2019) (SR-NYSEArca-2019-
54); and 86549 (August 1, 2019), 84 FR 38700 (August 7, 2019) (SR-
NYSENat-2019-17).
    \11\ See Co-location Notice, supra note 4, at note 26.
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    The change has since become operative, and the Exchange proposes to
amend the Fee Schedule accordingly. More specifically, in the text
describing the Option C and Option D PCS bundles, the Exchange proposes
to
     replace ``LCN connection (10 Gb),*'' with ``LCN connection
(10 GB LX),'' and
     delete the text stating ``* The LCN connection (10 Gb)
will be replaced with an LCN connection (10 Gb LX) on a date to be
announced by customer notice, expected to be during the fourth quarter
of 2019.''
    The amended portion of the Fee Schedule would read as follows:

------------------------------------------------------------------------
         Type of service              Description      Amount of charge
------------------------------------------------------------------------
Partial Cabinet Solution          Option A: 1 kW      $7,500 initial
 bundles. Note: A User and its     partial cabinet,    charge per bundle
 Affiliates are limited to one     1 LCN connection    plus monthly
 Partial Cabinet Solution bundle   (1 Gb), 1 IP        charge per bundle
 at a time. A User and its         network             as follows:
 Affiliates must have an           connection (1       For Users
 Aggregate Cabinet Footprint of    Gb), 2 fiber        that order on or
 2 kW or less to qualify for a     cross connections   before December
 Partial Cabinet Solution          and either the      31, 2020: $3,000
 bundle. See Note 2 under          Network Time        monthly for first
 ``General Notes.''                Protocol Feed or    24 months of
                                   Precision Timing    service, and
                                   Protocol.           $6,000 monthly
                                                       thereafter.
                                                       For Users
                                                       that order after
                                                       December 31,
                                                       2020: $6,000
                                                       monthly.
                                  Option B: 2 kW      $7,500 initial
                                   partial cabinet,    charge per bundle
                                   1 LCN connection    plus monthly
                                   (1 Gb), 1 IP        charge per bundle
                                   network             as follows:
                                   connection (1       For Users
                                   Gb), 2 fiber        that order on or
                                   cross connections   before December
                                   and either the      31, 2020: $3,500
                                   Network Time        monthly for first
                                   Protocol Feed or    24 months of
                                   Precision Timing    service, and
                                   Protocol.           $7,000 monthly
                                                       thereafter.
                                                       For Users
                                                       that order after
                                                       December 31,
                                                       2020: $7,000
                                                       monthly.
                                  Option C: 1 kW      $10,000 initial
                                   partial cabinet,    charge per bundle
                                   1 LCN connection    plus monthly
                                   (10 Gb LX), 1 IP    charge per bundle
                                   network             as follows:
                                   connection (10      For Users
                                   Gb), 2 fiber        that order on or
                                   cross connections   before December
                                   and either the      31, 2020: $7,000
                                   Network Time        monthly for first
                                   Protocol Feed or    24 months of
                                   Precision Timing    service, and
                                   Protocol.           $14,000 monthly
                                                       thereafter.
                                                       For Users
                                                       that order after
                                                       December 31,
                                                       2020: $14,000
                                                       monthly.
                                  Option D: 2 kW      $10,000 initial
                                   partial cabinet,    charge per bundle
                                   1 LCN connection    plus monthly
                                   (10 Gb LX), 1 IP    charge per bundle
                                   network             as follows:
                                   connection (10      For Users
                                   Gb), 2 fiber        that order on or
                                   cross connections   before December
                                   and either the      31, 2020: $7,500
                                   Network Time        monthly for first
                                   Protocol Feed or    24 months of
                                   Precision Timing    service, and
                                   Protocol.           $15,000 monthly
                                                       thereafter.
                                                       For Users
                                                       that order after
                                                       December 31,
                                                       2020: $15,000
                                                       monthly.
------------------------------------------------------------------------

Application and Impact of the Proposed Change
    The proposed change would apply to all PCS bundles. The proposed
change would not apply differently to distinct types or sizes of market
participants. Rather, it 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 colocation service, including
PCS bundles, is completely voluntary and the Fee Schedule is applied
uniformly to all Users.
Competitive Environment
    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.'' \12\
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    \12\ 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 Co-location Notice, supra note 4, at 58782-58783.
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    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 and IP
network connections--and that the Hosting User Bundles provide their
end users with a service similar to that of the PCS bundles, but with a
lower cost and latency.\13\
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    \13\ 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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    The Exchange believes that, by extending the existing eligibility
for a 50% MRC reduction for another year, the proposed change may make
PCS bundles more competitive with the services that Hosting Users
offer. Importantly, the proposed extension would provide potential
Users with a wider range of choices for the period of the extension,
which would be especially beneficial for potential Users with minimal
power or cabinet space demands or those for which the costs attendant
with having a dedicated cabinet or greater network connection bandwidth
are too burdensome.\14\
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    \14\ See supra note 7.
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    The Exchange operates in a highly competitive market in which
exchanges and other vendors (i.e., Hosting Users) offer co-location
services as a means to

facilitate the trading and other market activities of those market
participants who believe that co-location enhances the efficiency of
their operations. 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 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.'' \15\
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    \15\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
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General
    As is the case with all Exchange co-location arrangements, (i)
neither a User nor any of the User's customers would be permitted to
submit orders directly to the Exchange unless such User or customer is
a member organization, a Sponsored Participant or an agent thereof
(e.g., a service bureau providing order entry services); (ii) use of
the co-location services proposed herein would be completely voluntary
and available to all Users on a non-discriminatory basis; \16\ and
(iii) a User would only incur one charge for the particular co-location
service described herein, regardless of whether the User connects only
to the Exchange or to the Exchange and one or more of the Affiliate
SROs.\17\
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    \16\ As is currently the case, Users that receive co-location
services from the Exchange will not receive any means of access to
the Exchange's trading and execution systems that is separate from,
or superior to, that of other Users. In this regard, all orders sent
to the Exchange enter the Exchange's trading and execution systems
through the same order gateway, regardless of whether the sender is
co-located in the data center or not. In addition, co-located Users
do not receive any market data or data service product that is not
available to all Users, although Users that receive co-location
services normally would expect reduced latencies, as compared to
Users that are not co-located, in sending orders to, and receiving
market data from, the Exchange.
    \17\ See Co-location Notice, supra note 4, at 58790. Each of the
Affiliate SROs has submitted substantially the same proposed rule
change to propose the changes described herein. See SR-NYSE-2019-72,
SR-NYSEAmer-2019-58, SR-NYSEArca-2019-97, and SR-NYSENAT-2019-32.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\18\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\19\ 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 mechanisms of, a free and open market and a national market
system and, in general, to protect investors and the public interest
and does not unfairly discriminate between customers, issuers, brokers,
or dealers. The Exchange also believes that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\20\ because it provides for
the equitable allocation of reasonable dues, fees, and other charges
among its members, issuers and other persons using its facilities and
does not unfairly discriminate between customers, issuers, brokers or
dealers.
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    \18\ 15 U.S.C. 78f(b).
    \19\ 15 U.S.C. 78f(b)(5).
    \20\ 15 U.S.C. 78f(b)(4).
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The Proposed Change Is Not Unfairly Discriminatory
    The Exchange believes its proposal is not unfairly discriminatory.
    The proposed change would not apply differently to distinct types
or sizes of market participants. Rather, it would apply to all Users
equally. The Exchange would continue to offer the four different PCS
bundles with different cabinet footprints and network connections
options. 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 colocation service, including
PCS bundles, would be completely voluntary.
    The proposed change would ensure that all Users that order a bundle
on or before December 31, 2020 would have their MRC reduced by 50% for
the first 24 months. Extending the period would make it more cost
effective for current or potential Users to utilize co-location by
offering a cost effective, convenient way to create a colocation
environment, through the choice among PCS bundles with different
cabinet footprints and network connections options. The Exchange
expects that such Users would include those with minimal power or
cabinet space demands and Users for which the costs attendant with
having a dedicated cabinet or greater network connection bandwidth are
too burdensome.
The Proposed Change Is Reasonable
    The Exchange believes its proposal is reasonable.
    The Exchange believes that it is reasonable to extend the period of
eligibility for a 50% MRC reduction as an incentive to Users to utilize
PCS bundles. Extending the existing eligibility for a 50% MRC reduction
for another year would provide smaller current or potential Users with
minimal power or cabinet space demands with additional time to purchase
a PCS bundle at a discounted rate.
    The Exchange believes that, by extending the existing eligibility
for a 50% MRC reduction for another year, the proposed change may make
PCS bundles more competitive with the services that Hosting Users
offer. The proposed extension would continue to provide potential Users
with a wider range of choices for the period of the extension.
    With respect to the proposed changes to update obsolete text, the
Exchange believes that the proposed change is reasonable because the
PCS bundles would remain the same as the ones to which Users already
have access, but, by updating the description and eliminating obsolete
text, the change would make the Fee Schedule description easier to
read, understand and administer. The Exchange believes that the change
would protect investors and the public interest because, by updating
the description and eliminating obsolete text, the change would make
the description more accessible and transparent, thereby providing
market participants with clarity as to what PCS bundles were offered.
The Proposed Change Is an Equitable Allocation of Fees and Credits
    The Exchange believes its proposal equitably allocates its fees
among its market participants.
    The proposed change would not apply differently to distinct types
or sizes of market participants. Rather, it would apply to all Users
equally. The Exchange would continue to offer the four different PCS
bundles with different cabinet footprints and network connections
options. 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 colocation service, including
PCS bundles, would be completely voluntary.
    Having the change apply to all PCS bundles would ensure that all
Users that order a bundle on or before December 31, 2020 would have
their MRC reduced by 50% for the first 24 months. Extending the period
would make it more cost effective for current or potential Users to
utilize co-location by continuing to offer a cost effective, convenient
way to create a colocation environment, through the choice among

PCS bundles with different cabinet footprints and network connections
options. The Exchange expects that such Users would include those with
minimal power or cabinet space demands and Users for which the costs
attendant with having a dedicated cabinet or greater network connection
bandwidth are too burdensome.
    Without this proposed rule change, potential Users choosing between
a PCS bundle and a Hosting User Bundle would have fewer attractive
options. This would be a detriment for them, especially for potential
Users with minimal power or cabinet space demands or those for which
the costs attendant with having a dedicated cabinet or greater network
connection bandwidth are too burdensome.\21\
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    \21\ See supra note 7.
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    Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition.
    For the reasons above, the proposed changes do not unfairly
discriminate between or among market participants that are otherwise
capable of satisfying any applicable co-location fees, requirements,
terms and conditions established from time to time by the Exchange.
    For these reasons, the Exchange believes that the proposal is
consistent with the Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule changes will not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
Section 6(b)(8) of the Act.\22\
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    \22\ 15 U.S.C. 78f(b)(8).
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Intramarket Competition
    The Exchange does not believe that the proposed change would place
any burden on intramarket competition that is not necessary or
appropriate. The proposed changes would enhance competition by
extending the period of eligibility for a 50% MRC reduction to all
Users that order a bundle on or before December 31, 2020. Such change
would make it more cost effective for current or potential Users to
utilize co-location by offering a cost effective, convenient way to
create a colocation environment, through the choice among PCS bundles
with different cabinet footprints and network connections options. The
Exchange believes that, by extending the period of eligibility, the
proposed change may make PCS bundles more attractive to potential Users
who might otherwise opt to become Hosted Customers, and thus enhance
the competitive environment for potential Users (who would then have
more options from which to select).
    Importantly, the proposed extension would provide potential Users
with a wider range of choices for the period of the extension, which
would be especially beneficial for potential Users with minimal power
or cabinet space demands or those for which the costs attendant with
having a dedicated cabinet or greater network connection bandwidth are
too burdensome. At the same time, however, no potential User would be
obligated to purchase a PCS bundle, and it would still have the options
offered by Hosting Users.
    PCS bundles allow Users to select their desired cabinet footprint
and network connections at a reduced MRC for the first 24 months. Such
Users may choose, in turn, to pass on such cost savings to their
customers. In addition to the proposed services being completely
voluntary, they are available to all Users on an equal basis (i.e. the
same products and services are available to all Users, and the
extension of the 50% reduction for the MRC for the PCS bundles, would
apply to all Users).
    With respect to the proposed edits to update obsolete text, the
change would not have any impact on competition, because it is solely
designed to update the description of the PCS bundles and eliminate
obsolete text, without changing the service that Users are currently
offered.
Intermarket Competition
    The Exchange does not believe that the proposed fee would impose
any burden on intermarket competition that is not necessary or
appropriate. The proposed change is not meant to affect competition
among national securities exchanges. Rather, the Exchange believes that
the proposed change is a reasonable attempt to maintain a more level
playing field between the Exchange and the Hosting Users, who compete
for Hosted Customer business. Because Hosting Users' services are not
regulated, they may offer differentiated pricing and are not required
to make their pricing public. The Exchange believes that the proposed
change may make PCS bundles more attractive to potential Users who
might otherwise opt to become Hosted Customers.
    The Exchange operates in a highly competitive market in which
exchanges offer co-location services as a means to facilitate the
trading and other market activities of those market participants who
believe that co-location enhances the efficiency of their operations.
Accordingly, fees charged for co-location services are constrained by
the active competition for the order flow of, and other business from,
such market participants. If a particular exchange charges excessive
fees for co-location services, affected market participants will opt to
terminate their co-location arrangements with that exchange, and adopt
a possible range of alternative strategies, including placing their
servers in a physically proximate location outside the exchange's data
center (which could be a competing exchange), or pursuing strategies
less dependent upon the lower exchange-to-participant latency
associated with co-location. Accordingly, the exchange charging
excessive fees would stand to lose not only co-location revenues but
also the liquidity of the formerly co-located trading firms, which
could have additional follow-on effects on the market share and revenue
of the affected exchange. In such an environment, the Exchange must
continually review, and consider adjusting, its services and related
fees and credits to remain competitive with other exchanges.
    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.'' \23\
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    \23\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
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    For the reasons described above, the Exchange believes that the
proposed rule changes reflect this competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \24\ of the Act and subparagraph (f)(2) of Rule
19b-4 \25\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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    \24\ 15 U.S.C. 78s(b)(3)(A).
    \25\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \26\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \26\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSECHX-2019-27 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSECHX-2019-27. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSECHX-2019-27 and should be submitted
on or before January 21, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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    \27\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-28212 Filed 12-30-19; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 212 (Friday, November 3, 2023)]
[Notices]
[Pages 75572-75576]
[FR Doc No: 2023-24316]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP23-544-000]

Northern Border Pipeline Company; Notice of Scoping Period
Requesting Comments on Environmental Issues for the Proposed Bison
XPress Project

    The staff of the Federal Energy Regulatory Commission (FERC or
Commission) will prepare an environmental document, that will discuss
the environmental impacts of the Bison XPress Project involving
construction and operation of facilities by Northern Border Pipeline
Company (Northern Border) in in McKenzie, Dunn, and Morton Counties,
North Dakota. The Commission will use this environmental document in
its decision-making process to determine whether the project is in the
public convenience and necessity. Applications by Bison Pipeline, LLC
(Docket No. CP23-543-000) and Wyoming Interstate Company, LLC and Fort
Union Gas Gathering, LLC (Docket No. CP23-545-000) are associated
projects being evaluated under the applicable Commission regulations.
    This notice announces the opening of the scoping process the
Commission will use to gather input from the public and interested
agencies regarding the project. As part of the National Environmental
Policy Act (NEPA) review process, the Commission takes into account
concerns the public may have about proposals and the environmental
impacts that could result from its action whenever it considers the
issuance of a Certificate of Public Convenience and Necessity. This
gathering of public input is referred to as ``scoping.'' The main goal
of the scoping process is to focus the analysis in the environmental
document on the important environmental issues. Additional information
about the Commission's NEPA process is described below in the NEPA
Process and Environmental Document section of this notice.
    By this notice, the Commission requests public comments on the
scope of issues to address in the environmental document. To ensure
that your comments are timely and properly recorded, please submit your
comments so that the Commission receives them in Washington, DC on or
before 5:00 p.m. Eastern Time on November 29, 2023. Comments may be
submitted in written form. Further details on how to submit comments
are provided in the Public Participation section of this notice.
    Your comments should focus on the potential environmental effects,
reasonable alternatives, and measures to avoid or lessen environmental
impacts. Your input will help the Commission staff determine what
issues they need to evaluate in the environmental document. Commission
staff will consider all written comments during the preparation of the
environmental document.
    If you submitted comments on this project to the Commission before
the opening of this docket on September 15, 2023, you will need to file
those comments in Docket No. CP23-544-000 to ensure they are considered
as part of this proceeding.
    This notice is being sent to the Commission's current environmental
mailing list for this project. State and local government
representatives should notify their constituents of this proposed
project and encourage them to comment on their areas of concern.
    If you are a landowner receiving this notice, a pipeline company
representative may contact you about the acquisition of an easement to
construct, operate, and maintain the proposed facilities. The company
would seek to negotiate a mutually acceptable easement agreement. You
are not required to enter into an agreement. However, if the Commission
approves the project, the Natural Gas Act conveys the right of eminent
domain to the company. Therefore, if you and the company do not reach
an easement agreement, the pipeline company could initiate condemnation
proceedings in court. In such instances, compensation would be
determined by a judge in accordance with state law. The Commission does
not subsequently grant, exercise, or oversee the exercise of that
eminent domain authority. The courts have exclusive authority to handle
eminent domain cases; the Commission has no jurisdiction over these
matters.
    Northern Border provided landowners with a fact sheet prepared by
the FERC entitled ``An Interstate Natural Gas Facility On My Land? What
Do I Need To Know?'' which addresses typically asked questions,
including the use of eminent domain and how to participate in the
Commission's proceedings. This fact sheet along with other landowner
topics of interest are available for viewing on the FERC website
(www.ferc.gov) under the Natural Gas, Landowner Topics link.

Public Participation

    There are three methods you can use to submit your comments to the
Commission. Please carefully follow these instructions so that your
comments are properly recorded. The Commission encourages electronic
filing of comments and has staff available to assist you at (866) 208-
3676 or [email protected].
    (1) You can file your comments electronically using the eComment
feature, which is located on the Commission's website (www.ferc.gov)
under the link to FERC Online. Using eComment is an easy method for
submitting brief, text-only comments on a project;
    (2) You can file your comments electronically by using the eFiling
feature, which is located on the Commission's website (www.ferc.gov)
under the link to FERC Online. With eFiling, you can provide comments
in a variety of formats by attaching them as a file with your
submission. New eFiling users must first create an account by clicking
on ``eRegister.'' You will be asked to select the type of filing you
are making; a comment on a particular project is considered a ``Comment
on a Filing''; or
    (3) You can file a paper copy of your comments by mailing them to
the Commission. Be sure to reference the project docket number (CP23-
544-000) on your letter. Submissions sent via the U.S. Postal Service
must be addressed to: Kimberly D. Bose, Secretary, Federal Energy
Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC
20426. Submissions sent via any other carrier must be addressed to:
Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission,
12225 Wilkins Avenue, Rockville, Maryland 20852.
    Additionally, the Commission offers a free service called
eSubscription which makes it easy to stay informed of all issuances and
submittals regarding the dockets/projects to which you subscribe. These
instant email notifications are the fastest way to receive notification
and provide a link to the document files which can reduce the amount of
time you spend researching proceedings. Go to https://www.ferc.gov/ferc-online/overview to register for eSubscription.
    The Commission's Office of Public Participation (OPP) supports
meaningful public engagement and participation in Commission
proceedings. OPP can help members of the public, including landowners,
environmental justice communities, Tribal members and others, access
publicly available information and navigate Commission processes. For
public inquiries and assistance with making filings such as
interventions, comments, or requests for rehearing, the public is
encouraged to contact OPP at<PHONE_NUMBER> or [email protected].

Summary of the Proposed Project

    Northern Border's proposed Bison XPress Project consists of the
replacement and expansion of compression facilities at Northern
Border's existing compressor stations including Arnegard (No. 4) in
McKenzie County, North Dakota, Manning (No. 5) in Dunn County North
Dakota, and Glen Ullin (No. 6) in Morton County, North Dakota (Appendix
1). Upon completion, the Bison XPress Project would (a) replace and
expand existing compressor facilities with new, more modern and
efficient compression facilities; (b) create 300,000 dekatherms per day
of incremental mainline natural gas capacity from receipt points
between Northern Border's Culbertson (No. 3) Compressor Station and
Glen Ullin (No. 6) Compressor Station (``Bakken Receipt Points'') to
its interconnection with Bison in Morton County, North Dakota (Kurtz
Delivery Point); and (c) introduce standby horsepower for the first
time on Northern Border's system, as opposed to the previous single
compressor unit design at each station.

Land Requirements for Construction

    All facility modifications and additions proposed as part of the
Bison XPress Project would be entirely on property owned by Northern
Border, within Northern Border easements, or on leased space. The Bison
XPress Project would require the use of a total of 102.70 acres of land
during construction, including 26.86 acres at the Arnegard Compressor
Station, 33.15 acres at the Manning Compressor Station, and 42.69 acres
at the Glen Ullin Compressor Station. Permanent impacts (a total of
4.11 acres) would only occur at the Manning Compressor Station and
would be associated with the expansion of the existing facility fence
line and grading to level the land surface. Construction activities at
all three of the compressor stations would require temporary workspace
both within and directly adjacent to the existing facility fence lines.
    Temporary workspace outside of the existing facility fence lines at
the compressor stations would be used primarily for the staging,
parking, and storage of construction equipment and materials. Temporary
workspace at all three of the compressor stations that extends beyond
Northern Border's property would be leased from the landowner during
Project construction. Following the completion of construction,
temporary workspace outside of the existing facilities would be
restored to pre-construction contours and allowed to revegetate.

NEPA Process and the Environmental Document

    Any environmental document issued by the Commission will discuss
impacts that could occur as a result of the construction and operation
of the proposed Bison XPress Project under the relevant general
resource areas:
     geology and soils;
     water resources and wetlands;
     vegetation and wildlife;
     threatened and endangered species;
     cultural resources;
     land use;
     environmental justice;
     air quality and noise; and
     reliability and safety.
    Commission staff have already identified several issues that
deserve attention based on a preliminary review of the proposed
facilities and the environmental information provided by Northern
Border. This preliminary list of issues may change based on your
comments and our analysis:
     environmental justice;
     air quality; and
     cultural resources.
    Commission staff will also evaluate reasonable alternatives to the
proposed Bison XPress Project or portions of the project and make
recommendations on how to lessen or avoid impacts on the various
resource areas. Your comments will help Commission staff identify and
focus on the issues that might have an effect on the human environment
and potentially eliminate others from further study and discussion in
the environmental document.
    Following this scoping period, Commission staff will determine
whether to prepare an Environmental Assessment (EA) or an Environmental
Impact Statement (EIS) for the Bison XPress Project. The EA or the EIS
will present Commission staff's independent analysis of the issues. If
Commission staff prepares an EA, a Notice of Schedule for the
Preparation of an Environmental Assessment will be issued. The EA may
be issued for an allotted public comment period. The Commission would
consider timely comments on the EA before making its decision regarding
the proposed Bison XPress Project. If Commission staff prepares an EIS,
a Notice of Intent to Prepare an EIS/Notice of Schedule will be issued,
which will open up an additional comment period. Staff will

then prepare a draft EIS which will be issued for public comment.
Commission staff will consider all timely comments received during the
comment period on the draft EIS and revise the document, as necessary,
before issuing a final EIS. Any EA or draft and final EIS will be
available in electronic format in the public record through eLibrary
\1\ and the Commission's natural gas environmental documents web page
(https://www.ferc.gov/industries-data/natural-gas/environment/environmental-documents). If eSubscribed, you will receive instant
email notification when the environmental document is issued.
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    \1\ For instructions on connecting to eLibrary, refer to the
last page of this notice.
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    With this notice, the Commission is asking agencies with
jurisdiction by law and/or special expertise with respect to the
environmental issues of this project to formally cooperate in the
preparation of the environmental document.\2\ Agencies that would like
to request cooperating agency status should follow the instructions for
filing comments provided under the Public Participation section of this
notice.
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    \2\ The Council on Environmental Quality regulations addressing
cooperating agency responsibilities are at title 40, Code of Federal
Regulations, section 1501.8.
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Consultation Under Section 106 of the National Historic Preservation
Act

    In accordance with the Advisory Council on Historic Preservation's
implementing regulations for section 106 of the National Historic
Preservation Act, the Commission is using this notice to initiate
consultation with the applicable State Historic Preservation Office(s),
and to solicit their views and those of other government agencies,
interested Indian tribes, and the public on the project's potential
effects on historic properties.\3\ The environmental document for the
project will document findings on the impacts on historic properties
and summarize the status of consultations under section 106.
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    \3\ The Advisory Council on Historic Preservation's regulations
are at title 36, Code of Federal Regulations, part 800. Those
regulations define historic properties as any prehistoric or
historic district, site, building, structure, or object included in
or eligible for inclusion in the National Register of Historic
Places.
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Environmental Mailing List

    The environmental mailing list includes federal, state, and local
government representatives and agencies; elected officials;
environmental and public interest groups; Native American Tribes; other
interested parties; and local libraries and newspapers. This list also
includes all affected landowners (as defined in the Commission's
regulations) who are potential right-of-way grantors, whose property
may be used temporarily for project purposes, or who own homes within
certain distances of aboveground facilities, and anyone who submits
comments on the project and includes a mailing address with their
comments. Commission staff will update the environmental mailing list
as the analysis proceeds to ensure that Commission notices related to
this environmental review are sent to all individuals, organizations,
and government entities interested in and/or potentially affected by
the proposed Bison XPress Project.
    If you need to make changes to your name/address, or if you would
like to remove your name from the mailing list, please complete one of
the following steps:
    (1) Send an email to [email protected] stating your
request. You must include the docket number CP23-544-000 in your
request. If you are requesting a change to your address, please be sure
to include your name and the correct address. If you are requesting to
delete your address from the mailing list, please include your name and
address as it appeared on this notice. This email address is unable to
accept comments.
    OR
    (2) Return the attached ``Mailing List Update Form'' (appendix 2).

Additional Information

    Additional information about the project is available from the
Commission's Office of External Affairs, at (866) 208-FERC, or on the
FERC website at www.ferc.gov using the eLibrary link. Click on the
eLibrary link, click on ``General Search'' and enter the docket number
in the ``Docket Number'' field. Be sure you have selected an
appropriate date range. For assistance, please contact FERC Online
Support at [email protected] or<PHONE_NUMBER>, or for TTY,
contact<PHONE_NUMBER>. The eLibrary link also provides access to the
texts of all formal documents issued by the Commission, such as orders,
notices, and rulemakings.
    Public sessions or site visits will be posted on the Commission's
calendar located at https://www.ferc.gov/news-events/events along with
other related information.

    Dated: October 30, 2023.
Kimberly D. Bose,
Secretary.
BILLING CODE 6717-01-P

Appendix 1

[GRAPHIC] [TIFF OMITTED] TN03NO23.029

Appendix 2

[GRAPHIC] [TIFF OMITTED] TN03NO23.030

[GRAPHIC] [TIFF OMITTED] TN03NO23.031

[FR Doc. 2023-24316 Filed 11-2-23; 8:45 am]
BILLING CODE 6717-01-C