Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Approving a Proposed Rule Change Relating to Pricing for Direct Circuit Connections, 49543-49544 [2010-19972]
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Federal Register / Vol. 75, No. 156 / Friday, August 13, 2010 / Notices
of their determination that no restricted
period applies following the pricing of
the distribution. The proposed rule
change will not impact FINRA’s
Regulation M surveillance program.4
Additionally, a significant number of
distributions of ‘‘actively traded’’
securities evolve quickly after the
market close and are priced overnight
before the next trading session. Thus,
members frequently do not have
sufficient advance knowledge of their
participation in the distribution to
provide notice to FINRA at least one
business day prior to pricing and in
such instances are unable to comply
with the express terms of Rule
5190(d)(1). FINRA then must make a
determination whether later notification
was necessary under the circumstances,
in accordance with the rule. The
proposed rule change will clarify
members’ notice obligations in the
context of such distributions.
The proposed rule change will be
effective on the date of Commission
approval.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
2. Statutory Basis
• 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–FINRA–2010–037 on the
subject line.
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,5 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. FINRA believes that the
proposed rule change will streamline
FINRA’s Regulation M-related notice
requirements and, combined with
FINRA’s existing Regulation M
compliance program, will protect
investors.6
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA 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.
emcdonald on DSK2BSOYB1PROD with NOTICES
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.
4 See e-mail from Lisa Horrigan, Asssociate
General Counsel, FINRA, to Elizabeth Sandoe,
Branch Chief and Brad Gude, Special Counsel,
Division of Trading and Markets, Commission,
dated August 6, 2010 (‘‘FINRA Email’’).
5 15 U.S.C. 78o–3(b)(6).
6 See FINRA E-mail, supra note 4.
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16:35 Aug 12, 2010
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Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate 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 or disapprove
the proposed rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
49543
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of
FINRA. 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–FINRA–2010–037 and
should be submitted on or before
September 3, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–19966 Filed 8–12–10; 8:45 am]
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
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62663; File No. SR–
NASDAQ–2010–077]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Order
Approving a Proposed Rule Change
Relating to Pricing for Direct Circuit
Connections
August 9, 2010.
On June 21, 2010, The NASDAQ
Stock Market LLC (‘‘NASDAQ’’ or the
Paper Comments
‘‘Exchange’’) filed with the Securities
and Exchange Commission
• Send paper comments in triplicate
(‘‘Commission’’), pursuant to Section
to Elizabeth M. Murphy, Secretary,
19(b)(1) of the Securities Exchange Act
Securities and Exchange Commission,
of 1934 (‘‘Act’’) 1 and Rule 19b–4
100 F Street, NE., Washington, DC
thereunder,2 a proposed rule change to
20549–1090.
establish pricing for 10Gb direct circuit
All submissions should refer to File
Number SR–FINRA–2010–037. This file connections and codify pricing for 1Gb
direct circuit connections for customers
number should be included on the
subject line if e-mail is used. To help the who are not co-located in NASDAQ’s
datacenter. The proposed rule change
Commission process and review your
was published for comment in the
comments more efficiently, please use
3
only one method. The Commission will Federal Register on July 6, 2010. The
Commission received no comment
post all comments on the Commission’s
letters on the proposal. This order
Internet Web site (https://www.sec.gov/
approves the proposed rule change.
rules/sro.shtml). Copies of the
In its proposal, NASDAQ proposed to
submission, all subsequent
establish fees for direct 10Gb circuit
amendments, all written statements
connections, and codify fees for direct
with respect to the proposed rule
circuit connections capable of
change that are filed with the
supporting up to 1Gb, for customers
Commission, and all written
who are not co-located at the Exchange’s
communications relating to the
datacenter. NASDAQ represented that it
proposed rule change between the
Commission and any person, other than already makes available to co-located
customers a 10Gb circuit connection
those that may be withheld from the
and charges for each a $1000 initial
public in accordance with the
installation charge as well as an ongoing
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
7 17 CFR 200.30–3(a)(12).
printing in the Commission’s Public
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
3 See Securities Exchange Act Release No. 62392
(July 6, 2010), 75 FR 38857 (‘‘Notice’’).
business days between the hours of 10
PO 00000
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49544
Federal Register / Vol. 75, No. 156 / Friday, August 13, 2010 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
monthly fee of $5000. The Exchange
proposed to establish the same fees for
non-co-located customers with a 10Gb
circuit connection.4
NASDAQ represented that it also
already makes available to both colocated and non-co-located customers
direct connections capable of
supporting up to 1Gb, with per
connection monthly fees of $500 for colocated customers and $1000 for non colocated customers. According to the
Exchange, monthly fees are higher for
non-co-located customers because direct
connections require NASDAQ to
provide cabinet space and middleware
for those customers’ third-party vendors
to connect into the datacenter and,
ultimately, to the trading system.
Finally, the Exchange represented that
for non-co-located customers, it charges
an optional installation fee of $925 if the
customer chooses to use an on-site
router.
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.5 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(4) of the Act,6 which requires that
the rules of a national securities
exchange provide for the equitable
allocation of reasonable dues, fees and
other charges among its members and
issuers and other persons using its
facilities, and with Section 6(b)(5) of the
Act,7 which requires, among other
things, that the rules of a national
securities exchange be designed to
promote just and equitable principles of
trade, 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, and
not be designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Commission believes that the
proposed fees for 10Gb and 1Gb direct
circuit connections are reasonable and
equitably allocated insofar as they are
applied on the same terms to similarlysituated market participants. In
4 According to the Exchange, NASDAQ provides
an additional 1Gb copper connection option for colocated customers. NASDAQ represented that,
given the technological constraints of copper
connections over longer distances, it does not offer
a copper connection option to users outside of its
datacenter.
5 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b)(4).
7 15 U.S.C. 78f(b)(5).
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16:35 Aug 12, 2010
Jkt 220001
addition, the Commission believes that
the connectivity options described in
the proposed rule change are not
unfairly discriminatory because
NASDAQ makes the 10Gb and 1Gb
direct circuit connections uniformly
available to all non-co-located
customers who voluntarily request them
and pay the fees as detailed in the
proposal. As represented by NASDAQ,
these fees are uniform for all such
customers and are either the same as
fees charged to co-located customers, or
vary due to different costs incurred by
NASDAQ associated with providing
service to the two different customer
types. Finally, the Commission believes
that the proposal will further the
protection of investors and the public
interest because it will provide greater
transparency regarding the connectivity
options available to market participants.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–NASDAQ–
2010–077) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–19972 Filed 8–12–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62661; File No. SR–Phlx–
2010–110]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NASDAQ
OMX PHLX, Inc. Relating to Billing
Policies
August 6, 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 August
4, 2010, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II
and III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
8 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
9 17
PO 00000
Frm 00091
Fmt 4703
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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 its
Fee Schedule to: (i) Require members
and member organizations to identify
accounts to properly identify joint backoffice (‘‘JBO’’) participant transactions;
(ii) specify certain policies to dispute
billing invoices; and (iii) amend the
index to rearrange the order of fees on
the Fee Schedule.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqtrader.com/
micro.aspx?id=PHLXfilings, at the
principal office of the Exchange, on the
Commission’s Web site at https://
www.sec.gov, 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
Exchange 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. The
Exchange 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
The purpose of the proposed rule
change is to memorialize current
practices for the Exchange to clearly
identify orders that are not subject to the
Firm Related Equity Option Cap in
order to ensure that members and
member organizations are being
properly billed the Exchange fees and
also to modify the time requirements to
dispute Exchange dues and fees to
reduce the Exchange’s operational costs.
The Exchange proposes to memorialize
an existing process that requires
members and member organizations to
identify certain trades which are not
subject to the Firm Related Equity
Option Cap and to set concrete
timelines to dispute any assessed
Exchange dues and fees.
Currently, the Firms are subject to a
maximum fee of $75,000 also known as
the Firm Related Equity Option Cap.
Firm equity option transaction charges,
in the aggregate, for one billing month
cannot exceed the Firm Related Equity
E:\FR\FM\13AUN1.SGM
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]]>Agencies
[Federal Register Volume 75, Number 156 (Friday, August 13, 2010)]
[Notices]
[Pages 49543-49544]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19972]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62663; File No. SR-NASDAQ-2010-077]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order
Approving a Proposed Rule Change Relating to Pricing for Direct Circuit
Connections
August 9, 2010.
On June 21, 2010, The NASDAQ Stock Market LLC (``NASDAQ'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to establish pricing for 10Gb direct circuit
connections and codify pricing for 1Gb direct circuit connections for
customers who are not co-located in NASDAQ's datacenter. The proposed
rule change was published for comment in the Federal Register on July
6, 2010.\3\ The Commission received no comment letters on the proposal.
This order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 62392 (July 6,
2010), 75 FR 38857 (``Notice'').
---------------------------------------------------------------------------
In its proposal, NASDAQ proposed to establish fees for direct 10Gb
circuit connections, and codify fees for direct circuit connections
capable of supporting up to 1Gb, for customers who are not co-located
at the Exchange's datacenter. NASDAQ represented that it already makes
available to co-located customers a 10Gb circuit connection and charges
for each a $1000 initial installation charge as well as an ongoing
[[Page 49544]]
monthly fee of $5000. The Exchange proposed to establish the same fees
for non-co-located customers with a 10Gb circuit connection.\4\
---------------------------------------------------------------------------
\4\ According to the Exchange, NASDAQ provides an additional 1Gb
copper connection option for co-located customers. NASDAQ
represented that, given the technological constraints of copper
connections over longer distances, it does not offer a copper
connection option to users outside of its datacenter.
---------------------------------------------------------------------------
NASDAQ represented that it also already makes available to both co-
located and non-co-located customers direct connections capable of
supporting up to 1Gb, with per connection monthly fees of $500 for co-
located customers and $1000 for non co-located customers. According to
the Exchange, monthly fees are higher for non-co-located customers
because direct connections require NASDAQ to provide cabinet space and
middleware for those customers' third-party vendors to connect into the
datacenter and, ultimately, to the trading system. Finally, the
Exchange represented that for non-co-located customers, it charges an
optional installation fee of $925 if the customer chooses to use an on-
site router.
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange.\5\
In particular, the Commission finds that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\6\ which requires that the
rules of a national securities exchange provide for the equitable
allocation of reasonable dues, fees and other charges among its members
and issuers and other persons using its facilities, and with Section
6(b)(5) of the Act,\7\ which requires, among other things, that the
rules of a national securities exchange be designed to promote just and
equitable principles of trade, 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, and not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\5\ In approving this proposal, the Commission has considered
the proposed rule's impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b)(4).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that the proposed fees for 10Gb and 1Gb
direct circuit connections are reasonable and equitably allocated
insofar as they are applied on the same terms to similarly-situated
market participants. In addition, the Commission believes that the
connectivity options described in the proposed rule change are not
unfairly discriminatory because NASDAQ makes the 10Gb and 1Gb direct
circuit connections uniformly available to all non-co-located customers
who voluntarily request them and pay the fees as detailed in the
proposal. As represented by NASDAQ, these fees are uniform for all such
customers and are either the same as fees charged to co-located
customers, or vary due to different costs incurred by NASDAQ associated
with providing service to the two different customer types. Finally,
the Commission believes that the proposal will further the protection
of investors and the public interest because it will provide greater
transparency regarding the connectivity options available to market
participants.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-NASDAQ-2010-077) be, and
hereby is, approved.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19972 Filed 8-12-10; 8:45 am]
BILLING CODE 8010-01-P
