In a story about a CBOE filing seeking to exempt its Order Management System from Exchange oversight, HMA President & CEO Tyler Gellasch is cited in the article stating “Cboe is not the first exchange to attempt to exclude product offerings from the definition of a ‘facility’ of an ‘exchange so as to avoid Commission oversight’.” He cited a case involving NYSE in which it sought to offer wireless connections to the exchanges through an exchange affiliate (ICE Data Services), a case which involved the wireless service being offered over a shorter distance – leading to faster data exchange and trading – than rivals were able to offer. “The Commission rightly rejected NYSE’s tortured interpretation of the “facility” of an “exchange” [after which] the NYSE family of exchanges and others challenged the Commission’s decision in the Court of Appeals for the DC Circuit … The Court of Appeals for the DC Circuit was not persuaded by the exchanges. It flatly rejected NYSE’s arguments that wireless communications were not part of a facility of the exchange, noting that the products were a “system of communication to or from the exchange . . . maintained by or with the consent of the exchange” that is offered “for the purpose of effecting and reporting transactions on the Exchange.” (Full Story).
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