Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change To Codify Prices for Co-Location Services, 6748-6750 [2010-2861]
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6748
Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
A. By order approve such proposed
rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–2864 Filed 2–9–10; 8:45 am]
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–BX–2010–012 on the
subject line.
sroberts on DSKD5P82C1PROD with NOTICES
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BX–
2010–012 and should be submitted on
or before March 3, 2010.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61488; File No. SR–
NASDAQ–2010–019]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of Proposed Rule Change To
Codify Prices for Co-Location Services
February 3, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on January
29, 2010, The NASDAQ Stock Market
• Send paper comments in triplicate
LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed
to Elizabeth M. Murphy, Secretary,
with the Securities and Exchange
Securities and Exchange Commission,
Commission (‘‘Commission’’) the
Station Place, 100 F Street, NE.,
proposed rule change as described in
Washington, DC 20549–1090.
Items I, II, and III below, which Items
All submissions should refer to File
have been substantially prepared by
Number SR–BX–2010–012. This file
NASDAQ. The Commission is
number should be included on the
publishing this notice to solicit
subject line if e-mail is used. To help the
comments on the proposed rule change
Commission process and review your
from interested persons.
comments more efficiently, please use
only one method. The Commission will I. Self-Regulatory Organization’s
post all comments on the Commission’s Statement of the Terms of the Substance
of the Proposed Rule Change
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
NASDAQ is filing with the Securities
submission, all subsequent
and Exchange Commission
amendments, all written statements
(‘‘Commission’’) a proposed rule change
with respect to the proposed rule
to codify pricing for co-location
change that are filed with the
services. The text of the proposed rule
Commission, and all written
change is available at https://
communications relating to the
nasdaqomx.cchwallstreet.com/, on the
proposed rule change between the
Commission’s Web site at https://
Commission and any person, other than www.sec.gov, at the Exchange’s
those that may be withheld from the
principal office, and at the
public in accordance with the
Commission’s Public Reference Room.
provisions of 5 U.S.C. 552, will be
NASDAQ will implement the proposed
available for Web site viewing and
printing in the Commission’s Public
9 17 C.F.R. 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
Reference Room, 100 F Street, NE.,
2 17 CFR 240.19b–4.
Washington, DC 20549, on official
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16:21 Feb 09, 2010
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Frm 00127
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rule change on the first day of the
month immediately following
Commission approval (or on the date of
approval, if on the first business day of
a month).
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NASDAQ 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 these
statements may be examined at the
places specified in Item IV below.
NASDAQ has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NASDAQ is proposing to codify fees
for its existing co-location services. Colocation services are a suite of hardware,
power, telecommunication, and other
ancillary products and services that
allow market participants and vendors
to place their trading and
communications equipment in close
physical proximity to the quoting and
execution facilities of the Exchange and
other NASDAQ OMX Group, Inc.
markets. The Exchange provides colocation services and imposes fees
through its wholly-owned subsidiary
Nasdaq Technology Services LLC and
pursuant to agreements with the owner/
operator of its data center where both
the Exchange’s quoting and trading
facilities and co-located customer
equipment are housed.3 Users of colocation services include private
extranet providers, data vendors, as well
as NASDAQ Exchange members and
non-members. The use of co-location
services is entirely voluntary.
As detailed in the proposed colocation fee schedule, NASDAQ
imposes a uniform, non-discriminatory
set of fees for various co-location
services, including: Fees for cabinet
space usage, or options for future space
usage;4 installation and related power
3 NASDAQ has provided co-location services at
various data centers since approximately 2004.
Currently, the Exchange provides its current colocation services through data centers located in the
New York City and Mid-Atlantic areas.
4 NASDAQ is implementing a Cabinet Proximity
Option program where, for a monthly fee,
customers can obtain an option for future use on
available currently unused cabinet floor space in
E:\FR\FM\10FEN1.SGM
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Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices
sroberts on DSKD5P82C1PROD with NOTICES
provision for hosted equipment;
connectivity among multiple cabinets
being used by the same customer as well
as customer connectivity to the
Exchange and telecommunications
providers;5 and related maintenance
and consulting services. Fees related to
cabinet and power usage are
incremental, with additional charges
being imposed based on higher levels of
cabinet and/or power usage, the use of
non-standard cabinet sizes or special
cabinet cooling equipment, or the reselling of cabinet space.
Co-location customers are not
provided any separate or superior
means of direct access to NASDAQ
quoting and trading facilities. Nor does
the Exchange offer any separate or
superior means of access to the
Exchange quoting and trading facilities
as among co-location customers
themselves within in [sic] the
datacenter. Likewise, NASDAQ does not
make available to co-located customers
any market data or data feed product or
service for data going into, or out of, the
Exchange systems that is not likewise
available to all the Exchange members.6
Finally, all orders sent to the Exchange
market enter the marketplace through
[sic] same central system quote and
order gateway regardless of whether the
sender is co-located in the Exchange
data center or not. In short, the
Exchange has created no special market
technology or programming that is
available only to co-located customers
and the Exchange has organized its
proximity to their existing equipment. Under the
program, customers can reserve up to maximum of
20 cabinets which the Exchange will endeavor to
provide as close as reasonably possible to the
customer’s existing cabinet space, taking into
consideration power availability within segments of
the datacenter and the overall efficiency of use of
datacenter resources as determined by the
Exchange. Should reserved datacenter space be
needed for use, the reserving customer will have
three business days to formally contract with the
Exchange for full payment for the reserved cabinet
space in contention or it will be reassigned. In
making determinations to require exercise or
relinquishment of reserved space as among
numerous customers, the Exchange will take into
consideration several factors, including: Proximity
between available reserved cabinet space and the
existing space of a customer seeking additional
space for actual cabinet usage; a customer’s ratio of
cabinets in use to those reserved; the length of time
that a particular reservation(s) has been in place;
and any other factor that the Exchange deems
relevant to ensure overall efficiency in use of the
datacenter space.
5 These fees are for telecommunications
connectivity only. Market Data fees are charged
independently by NASDAQ and other exchanges.
6 Currently, the Exchange makes available to colocated customers a 10Gb fiber connection. The
Exchange will likewise make available a 10Gb fiber
connection to other customers in the first quarter
of 2010. The Exchange has not received any
requests for 10Gb fiber connections from firms that
are not co-located.
VerDate Nov<24>2008
16:21 Feb 09, 2010
Jkt 220001
systems to minimize, to the greatest
extent possible, any advantage for one
customer versus another.
Co-location services are generally
available to all qualified market
participants who desire them. With the
exception of customers participating in
the Cabinet Proximity Option program,
the Exchange allocates cabinets and
power on a first-come/first-serve basis.
Should available cabinet inventory
shrink to 40 cabinets or less, the
Exchange will limit new cabinet orders
to a maximum of 4 cabinets each, and
all new cabinets will be limited to a
maximum power level of 5kW. Should
available cabinet inventory shrink to
zero, the Exchange will place firms
seeking services on a waiting list based
on that date the Exchange receives
signed orders for the services from the
firm. In order to be placed on the
waiting list, a firm must have utilized
all existing cabinets they already have
in the datacenter. Once on the list, the
firms, on a rolling basis, will allocated
a single 5kW cabinet each time one
becomes available. After receiving a
cabinet, the firm will move to the
bottom of the waiting list.
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,7 in
general, and with Sections 6(b)(5) of the
Act,8 in particular, in that the proposal
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
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. In particular, the filing
codifies and makes transparent the
uniform fees imposed by the Exchange’s
technology subsidiary for co-location
services.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASDAQ does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
7 15
8 15
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(5).
Frm 00128
Fmt 4703
Sfmt 4703
6749
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
A. By order approve such proposed
rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2010–019 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2010–019. This
file number should be included on the
subject line if e-mail 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 Web site (https://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
E:\FR\FM\10FEN1.SGM
10FEN1
6750
Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site 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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2010–019 and should be
submitted on or before March 3, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–2861 Filed 2–9–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61485; File No. SR–OCC–
2010–01]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
Options for Which the Premium and
Exercise Price Are Expressed as a
Multiple of the Per-Share Amount
sroberts on DSKD5P82C1PROD with NOTICES
February 3, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934,1 notice
is hereby given that on January 14, 2010,
The Options Clearing Corporation
(‘‘OCC’’) filed with the Securities and
Exchange Commission the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared primarily by OCC. OCC filed
the proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 2 and
Rule 19b–4(f)(4) thereunder 3 so that the
proposal was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
9 17
C.F.R. 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(iii).
3 17 CFR 240.19b–4(f)(4).
1 15
VerDate Nov<24>2008
16:21 Feb 09, 2010
Jkt 220001
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The proposed rule change would
revise OCC’s By-Laws and Rules to
accommodate options for which the
premium and exercise price are
expressed on other than a per-unit basis.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
OCC 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 these statements
may be examined at the places specified
in Item IV below. OCC has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The purpose of this rule change is to
revise OCC By-Law, Article I.A.5
(definition of ‘‘Aggregate Exercise
Price’’) and OCC Rule 805(d)(2) to
accommodate options for which the
premium and exercise price are
expressed as other than a per-unit basis.
NYSE Amex LLC (‘‘NYSE Amex’’) is
proposing to trade physically-settled
options on exchange-traded funds
(‘‘ETFs’’) with a unit of trading of 1,000
shares (‘‘Grand Options’’) rather than the
standard unit of trading of 100 shares.
When NYSE Amex previously
introduced ETF options with units of
trading of 1,000 shares, NYSE Amex
followed the usual convention of
quoting premiums and exercise prices
as per-share amounts. The extended
premium and aggregate exercise price
were then calculated in the usual way
by multiplying the per-share amount by
the unit of trading (i.e. 1,000). In NYSE
Amex’s experience, this approach
caused investor confusion because
investors in some cases failed to realize
that they were trading large-sized
options until premiums equal to ten
times the expected amount were debited
from their accounts. To address this,
NYSE Amex intends to modify the
standard method of stating premiums
and exercise prices for Grand Options
by multiplying the per-share amount by
10. Extended premiums and exercise
prices for such contracts would then be
calculated by multiplying by 100 rather
than the actual unit of trading of 1,000.
NYSE Amex believes that, by increasing
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
the size of the stated premiums and
exercise prices by a factor of 10, the
larger size of these options will be more
apparent to investors.
To accommodate options for which
the premium and exercise price are
expressed as a multiple of the per-share
amount, OCC proposes to make minor
technical amendments to a few
definitions in its By-Laws and to its rule
governing expiration date exercise
procedures. The changes being
proposed can be viewed at https://
www.optionsclearing.com/components/
docs/legal/rules_and_bylaws/
sr_occ_10_01.pdf.
OCC believes that the proposed
changes to OCC’s By-Laws and Rules are
consistent with the purposes and
requirements of Section 17A of the Act 4
because the changes promote the
prompt and accurate clearance and
settlement of Grand Options, protect
investors by reducing the likelihood of
investor confusion, and permit Grand
Options to be traded, cleared, and
settled in the same basic manner as
other currently available options and be
subject to the same rules and procedures
that have been successfully used by
OCC to clear and settle other options.
Furthermore, OCC states that the
proposed rule change is not inconsistent
with OCC’s existing rules, including
those proposed to be amended.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
OCC does not believe that the
proposed rule change would impose any
burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
OCC has not solicited or received
written comments relating to the
proposed rule change. OCC will notify
the Commission of any written
comments it receives.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(i) of the Act 5 and Rule 19b–
4(f)(4) 6 thereunder because the
proposed rule change effects a change in
an existing service of a registered
clearing agency that (i) does not
adversely affect the safeguarding of
securities or funds in the custody or
control of the clearing agency or for
4 15
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A)(i).
6 17 C.F.R. 240.19b(f)(1).
5 15
E:\FR\FM\10FEN1.SGM
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]]>Agencies
[Federal Register Volume 75, Number 27 (Wednesday, February 10, 2010)]
[Notices]
[Pages 6748-6750]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-2861]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61488; File No. SR-NASDAQ-2010-019]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change To Codify Prices for Co-
Location Services
February 3, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 29, 2010, The NASDAQ Stock Market LLC (``NASDAQ'' 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 substantially prepared by NASDAQ.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
NASDAQ is filing with the Securities and Exchange Commission
(``Commission'') a proposed rule change to codify pricing for co-
location services. The text of the proposed rule change is available at
https://nasdaqomx.cchwallstreet.com/, on the Commission's Web site at
https://www.sec.gov, at the Exchange's principal office, and at the
Commission's Public Reference Room. NASDAQ will implement the proposed
rule change on the first day of the month immediately following
Commission approval (or on the date of approval, if on the first
business day of a month).
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASDAQ 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 these statements may be examined at the places specified in
Item IV below. NASDAQ has prepared summaries, set forth in Sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ is proposing to codify fees for its existing co-location
services. Co-location services are a suite of hardware, power,
telecommunication, and other ancillary products and services that allow
market participants and vendors to place their trading and
communications equipment in close physical proximity to the quoting and
execution facilities of the Exchange and other NASDAQ OMX Group, Inc.
markets. The Exchange provides co-location services and imposes fees
through its wholly-owned subsidiary Nasdaq Technology Services LLC and
pursuant to agreements with the owner/operator of its data center where
both the Exchange's quoting and trading facilities and co-located
customer equipment are housed.\3\ Users of co-location services include
private extranet providers, data vendors, as well as NASDAQ Exchange
members and non-members. The use of co-location services is entirely
voluntary.
---------------------------------------------------------------------------
\3\ NASDAQ has provided co-location services at various data
centers since approximately 2004. Currently, the Exchange provides
its current co-location services through data centers located in the
New York City and Mid-Atlantic areas.
---------------------------------------------------------------------------
As detailed in the proposed co-location fee schedule, NASDAQ
imposes a uniform, non-discriminatory set of fees for various co-
location services, including: Fees for cabinet space usage, or options
for future space usage;\4\ installation and related power
[[Page 6749]]
provision for hosted equipment; connectivity among multiple cabinets
being used by the same customer as well as customer connectivity to the
Exchange and telecommunications providers;\5\ and related maintenance
and consulting services. Fees related to cabinet and power usage are
incremental, with additional charges being imposed based on higher
levels of cabinet and/or power usage, the use of non-standard cabinet
sizes or special cabinet cooling equipment, or the re-selling of
cabinet space.
---------------------------------------------------------------------------
\4\ NASDAQ is implementing a Cabinet Proximity Option program
where, for a monthly fee, customers can obtain an option for future
use on available currently unused cabinet floor space in proximity
to their existing equipment. Under the program, customers can
reserve up to maximum of 20 cabinets which the Exchange will
endeavor to provide as close as reasonably possible to the
customer's existing cabinet space, taking into consideration power
availability within segments of the datacenter and the overall
efficiency of use of datacenter resources as determined by the
Exchange. Should reserved datacenter space be needed for use, the
reserving customer will have three business days to formally
contract with the Exchange for full payment for the reserved cabinet
space in contention or it will be reassigned. In making
determinations to require exercise or relinquishment of reserved
space as among numerous customers, the Exchange will take into
consideration several factors, including: Proximity between
available reserved cabinet space and the existing space of a
customer seeking additional space for actual cabinet usage; a
customer's ratio of cabinets in use to those reserved; the length of
time that a particular reservation(s) has been in place; and any
other factor that the Exchange deems relevant to ensure overall
efficiency in use of the datacenter space.
\5\ These fees are for telecommunications connectivity only.
Market Data fees are charged independently by NASDAQ and other
exchanges.
---------------------------------------------------------------------------
Co-location customers are not provided any separate or superior
means of direct access to NASDAQ quoting and trading facilities. Nor
does the Exchange offer any separate or superior means of access to the
Exchange quoting and trading facilities as among co-location customers
themselves within in [sic] the datacenter. Likewise, NASDAQ does not
make available to co-located customers any market data or data feed
product or service for data going into, or out of, the Exchange systems
that is not likewise available to all the Exchange members.\6\ Finally,
all orders sent to the Exchange market enter the marketplace through
[sic] same central system quote and order gateway regardless of whether
the sender is co-located in the Exchange data center or not. In short,
the Exchange has created no special market technology or programming
that is available only to co-located customers and the Exchange has
organized its systems to minimize, to the greatest extent possible, any
advantage for one customer versus another.
---------------------------------------------------------------------------
\6\ Currently, the Exchange makes available to co-located
customers a 10Gb fiber connection. The Exchange will likewise make
available a 10Gb fiber connection to other customers in the first
quarter of 2010. The Exchange has not received any requests for 10Gb
fiber connections from firms that are not co-located.
---------------------------------------------------------------------------
Co-location services are generally available to all qualified
market participants who desire them. With the exception of customers
participating in the Cabinet Proximity Option program, the Exchange
allocates cabinets and power on a first-come/first-serve basis. Should
available cabinet inventory shrink to 40 cabinets or less, the Exchange
will limit new cabinet orders to a maximum of 4 cabinets each, and all
new cabinets will be limited to a maximum power level of 5kW. Should
available cabinet inventory shrink to zero, the Exchange will place
firms seeking services on a waiting list based on that date the
Exchange receives signed orders for the services from the firm. In
order to be placed on the waiting list, a firm must have utilized all
existing cabinets they already have in the datacenter. Once on the
list, the firms, on a rolling basis, will allocated a single 5kW
cabinet each time one becomes available. After receiving a cabinet, the
firm will move to the bottom of the waiting list.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\7\ in general, and with
Sections 6(b)(5) of the Act,\8\ in particular, in that the proposal 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
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. In
particular, the filing codifies and makes transparent the uniform fees
imposed by the Exchange's technology subsidiary for co-location
services.
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\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
A. By order approve such proposed rule change, or
B. institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, is consistent with the Act. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2010-019 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2010-019. This
file number should be included on the subject line if e-mail 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 Web site (https://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
[[Page 6750]]
those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site 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
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2010-019 and should
be submitted on or before March 3, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 C.F.R. 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-2861 Filed 2-9-10; 8:45 am]
BILLING CODE 8011-01-P
