Self-Regulatory Organizations; NYSE Texas, Inc.; Notice of Filing of a Proposed Rule Change To Amend the Connectivity Fee Schedule To Add Hardware Procurement Services and Managed Services

<NOTICE> SECURITIES AND EXCHANGE COMMISSION <DEPDOC>[Release No. 34-103829; File No. SR-NYSETEX-2025-28]</DEPDOC> <SUBJECT>Self-Regulatory Organizations; NYSE Texas, Inc.; Notice of Filing of a Proposed Rule Change To Amend the Connectivity Fee Schedule To Add Hardware Procurement Services and Managed Services</SUBJECT> <DATE>September 2, 2025.</DATE> Pursuant to Section 19(b)(1)  <SU>1</SU> <FTREF/> of the Securities Exchange Act of 1934 (“Act”)  <SU>2</SU> <FTREF/> and Rule 19b-4 thereunder, <SU>3</SU> <FTREF/> notice is hereby given that, on August 27, 2025, the NYSE Texas, Inc. (“NYSE Texas” or “Exchange”) filed with the Securities and Exchange Commission (“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. <FTNT> <SU>1</SU>  15 U.S.C. 78s(b)(1). </FTNT> <FTNT> <SU>2</SU>  15 U.S.C. 78a. </FTNT> <FTNT> <SU>3</SU>  17 CFR 240.19b-4. </FTNT> <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD> The Exchange proposes to amend the Connectivity Fee Schedule to add hardware procurement services and managed services in the colocation halls at the Mahwah Data Center. The proposed rule change is available on the Exchange's website at <E T="03">www.nyse.com</E> and at the principal office of the Exchange. <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD> 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. <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change</HD> <HD SOURCE="HD3">1. Purpose</HD> The Exchange proposes  <SU>4</SU> <FTREF/> to amend the Connectivity Fee Schedule to add hardware procurement services and managed services in the colocation halls at the Mahwah Data Center (“MDC”). <SU>5</SU> <FTREF/> <FTNT> <SU>4</SU>  The Exchange previously filed and withdrew an earlier version of this proposal. <E T="03">See</E> Securities Exchange Act Release No. 103128 (May 27, 2025), 90 FR 23391 (June 2, 2025) (SR-NYSETEX-2025-07). </FTNT> <FTNT> <SU>5</SU>  Through its Fixed Income and Data Services (“FIDS”) business, Intercontinental Exchange, Inc. (“ICE”) operates the MDC. The Exchange and its affiliates New York Stock Exchange LLC, NYSE American LLC, NYSE Arca, Inc., and NYSE National, Inc. (the “Affiliate SROs”) are indirect subsidiaries of ICE. Each of the Exchange's Affiliate SROs has submitted substantially the same proposed rule change to propose the changes described herein. <E T="03">See</E> SR-NYSE-2025-34, SR-NYSEAMER-2025-55, SR-NYSEARCA-2025-63, and SR-NYSENAT-2025-19. </FTNT> <HD SOURCE="HD3">Hardware Procurement Services</HD> The Exchange has recently received requests from several Users  <SU>6</SU> <FTREF/> and prospective Users for the Exchange to start providing hardware procurement services in the colocation halls at the MDC. Under such services, FIDS  <SU>7</SU> <FTREF/> would engage a third-party procurement specialist to procure, purchase, format, and deliver hardware for the User to use in the colocation halls at the MDC based on specifications provided by the User. <SU>8</SU> <FTREF/> <FTNT> <SU>6</SU>  For purposes of the Exchange's colocation services, a “User” means any market participant that requests to receive colocation services directly from the Exchange. <E T="03">See</E> Securities Exchange Act Release No. 87408 (October 28, 2019), 84 FR 58778 at n.6 (November 1, 2019) (SR-NYSECHX-2019-12). As specified in the Connectivity Fee Schedule, a User that incurs colocation fees for a particular colocation service pursuant thereto would not be subject to colocation fees for the same colocation service charged by the Affiliate SROs. </FTNT> <FTNT> <SU>7</SU>  In this proposal, the term “FIDS” includes FIDS and any ICE subsidiaries that are successors-in-interest to FIDS. </FTNT> <FTNT> <SU>8</SU>  Installation is handled either by FIDS or by the User or prospective User. </FTNT> Specifically, under this arrangement, FIDS would work with one or more specific third-party procurement specialists (each, a “Procurement Specialist”). <SU>9</SU> <FTREF/> A User or prospective User interested in the service would work with a Procurement Specialist to identify the specific hardware it wishes to procure. The Procurement Specialist would contact various original equipment manufacturers to determine equipment availability and the pricing of one or more procurement options ( <E T="03">e.g.,</E> outright purchase of the equipment vs. 12-month lease vs. 24-month lease). The quotes would be passed on to the User or prospective User, with FIDS adding to each quote a 10% service fee. <FTNT> <SU>9</SU>  FIDS currently plans to work with only one specific third-party procurement specialist, but may determine in the future to work with a different specialist or more than one specialist. </FTNT> The User or prospective User would have the opportunity to review all terms before deciding whether to proceed. If the User or prospective User decides to proceed, it would enter into a contract with FIDS for the services, and would send payment to FIDS. FIDS would forward the payment to the Procurement Specialist, less the 10% service fee, which FIDS would retain. The Exchange understands that some Users would find such an arrangement desirable because it would allow them to obtain all necessary hardware from FIDS, with whom the User already has a contractual relationship, as opposed to having to contract directly with a procurement specialist or with multiple third-party hardware vendors. These Users have explained that contracting with FIDS to obtain hardware would allow the Users to avoid the onerous process of onboarding the hardware vendors as approved sellers in their procurement systems. It is the Exchange's understanding that such onboarding generally requires Users to, among other things: evaluate each vendor's financial and credit history; check their service track record; evaluate their sustainability credentials; assess their compliance with regulations; obtain their agreement to an ethical code of conduct; and establish ordering processes, payment terms, and delivery processes with each vendor. By contrast, the proposed arrangement would permit the User to obtain necessary hardware by contracting only with FIDS—a vendor already established in the User's systems—in exchange for paying FIDS a service fee equal to 10% of the Procurement Specialist's fees for procuring such hardware. A Procurement Specialist working with FIDS under the proposed arrangement would not receive any advantages or privileges (in terms of access to the MDC or otherwise) over any other third-party procurement specialist that a User may independently hire. In addition, any Procurement Specialist working with FIDS pursuant to this proposal would retain its ability to separately contract with customers outside of the FIDS arrangement described in this proposal. <HD SOURCE="HD3">Managed Services</HD> Similarly, some Users and prospective Users have also requested that the Exchange begin providing “managed services” in the colocation halls at the MDC. The term “managed services” typically refers to a customer's hiring a third-party vendor to provide information technology (“IT”) support for the customer's hardware in a data center, so that the customer can focus its own IT resources elsewhere. A vendor providing managed services typically deploys software and technical tooling to monitor the health and status of the customer's servers and other hardware in the data center, diagnoses solutions for configuration challenges, works with the data center's operations team regarding any changes to such configurations, and provides around-the-clock monitoring, trouble-shooting, and remediation of any problems concerning the customer's hardware in the data center. As with hardware procurement, Users and prospective Users have asked the Exchange to add a service in the colocation halls at the MDC that would permit FIDS to contract with a third-party managed services provider on the User's or prospective User's behalf. This would allow the Users and prospective Users to benefit from managed services within the colocation halls at the MDC while avoiding the many challenges (listed above) with onboarding a new vendor as an approved seller in their procurement systems. Under the proposed arrangement, FIDS would work with one or more specific third-party managed service providers (each, a “Managed Services Specialist”). <SU>10</SU> <FTREF/> A User or prospective User interested in the service would work with the Managed Services Specialist to identify the specific services it wishes to procure. The quote for those services would be sent to the User or prospective User, with FIDS adding to each quote a 10% service fee. <FTNT> <SU>10</SU>  FIDS currently plans to work with only one specific third-party managed services specialist, but may determine in the future to work with a different specialist or more than one specialist. </FTNT> The User or prospective User would have the opportunity to review all terms before deciding whether to proceed with the arra ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 23k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━