Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change Amending Its Price List To Reflect Fees Charged for Co-Location Services, 51512-51515 [2010-20682]
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51512
Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Notices
necessary or appropriate in furtherance
of the purposes of the Act.
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 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
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Exchange
Act. Comments may be submitted by
any of the following methods:
sroberts on DSKD5P82C1PROD with NOTICES
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–2010–099 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2010–099. 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
VerDate Mar<15>2010
17:19 Aug 19, 2010
Jkt 220001
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 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 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; 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–2010–099 and should be
submitted on or before September 10,
2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.28
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–20658 Filed 8–19–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62732; File No. SR–NYSE–
2010–56]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change
Amending Its Price List To Reflect
Fees Charged for Co-Location
Services
August 16, 2010.
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 August
3, 2010, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II 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.
28 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Price List to reflect fees charged for colocation services, as described more
fully herein. The text of the proposed
rule change is available at the Exchange,
the Commission’s Public Reference
Room, on the Commission’s Web site at
https://www.sec.gov, and the Exchange’s
Web site at https://www.nyse.com.
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 its
Price List to identify fees pertaining to
co-location services, which allow
Users 4 of the Exchange to rent space on
premises controlled by the Exchange in
order that they may locate their
electronic servers in close physical
proximity to the Exchange’s trading and
execution systems. The Exchange plans
to begin operating a data center in
Mahwah, New Jersey, from which it will
offer co-location services. The Exchange
will offer space at the data center in
cabinets with power usage capability of
either four or eight kilowatts (kW).5 In
4 For the purposes of this filing, the term ‘‘Users’’
includes any ‘‘member organization,’’ as that term is
defined in NYSE Rule 2(b) and any ‘‘Sponsored
Participant,’’ as that term is defined in NYSE Rule
123B.30(a)(ii)(B).
5 The Exchange also allows Users, for a monthly
fee (i.e., 40% of the applicable monthly per kW fee),
to obtain an option for future use on available,
unused cabinet space in proximity to their existing
cabinet space. Specifically, Users may reserve
cabinet space of up to 30% of the cabinet space
under contract, which the Exchange will endeavor
to provide as close as reasonably possible to the
User’s existing cabinet space, taking into
consideration power availability within segments of
the data center and the overall efficiency of use of
data center resources as determined by the
Exchange. (If the 30% measurement results in a
fractional cabinet, the cabinet count is adjusted up
to the next increment.) If reserved cabinet space
becomes needed for use, the reserving User will
E:\FR\FM\20AUN1.SGM
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Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Notices
addition, the Exchange will offer Users
services related to co-location, including
cross connections, equipment and cable
installation, and remote ‘‘hot-hands’’
services, which allow Users to use onsite data center personnel to maintain
User equipment. The Exchange notes
that Users will be able to obtain
permanent access badges for their
representatives at a cost of $50 per
badge, which includes the cost of a
background check. User representatives
are not required to obtain a permanent
access badge to gain access to the data
center, but all visitors to the data center
will be required to have a visitor
security escort at the cost of $75 per
hour.
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
Users that do not receive co-location
services. 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 Exchange’s
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. However, Users
that receive co-location services
normally would expect reduced
latencies in sending orders to the
Exchange and receiving market data
from the Exchange. In addition, colocated Users have the option of
obtaining access to the Exchange’s
Liquidity Center Network (‘‘LCN’’), a
local area network available in the data
center.6 Co-located Users have the
option of using either the LCN or the
Exchange’s Secure Financial
Transaction Infrastructure (‘‘SFTI’’)
network, to which all Users have access.
Because it operates as a local area
network within the data center, the LCN
provides reduced latencies in
comparison with SFTI. Other than the
reduced latencies, the Exchange
believes that there are no material
differences in terms of access to the
Exchange between Users that choose to
co-locate and those that do not. SFTI
and LCN both provide Users with access
to the Exchange’s trading and execution
systems and to the Exchange’s
51513
proprietary market data products. User
access to non-proprietary market data
products is available through SFTI and
not through LCN.
The Exchange offers co-location space
based on availability and the Exchange
believes that it has sufficient space in
the Mahwah data center to
accommodate current demand on an
equitable basis for the foreseeable
future. In addition, the Exchange
believes that any difference among the
positions of the cabinets within the data
center does not create any material
difference to co-location Users in terms
of access to the Exchange.
The following charts identify the
proposed tiered fees for co-location and
the proposed fees for related services.
Initial fee per cabinet ................
Number of kWs
4–8 ............................................
12–20 ........................................
24–40 ........................................
44 + ..........................................
$5,000
Per kW fee
monthly
$1,200
1,050
950
900
Type of service
Description
Amount of charge
LCN Access ........................................................
1Gb Circuit .......................................................
LCN Access ........................................................
Bundled Network Access, Option 1 (2 LCN connections, 2 SFTI connections, and 2 optic
connections to outside access center).
10 Gb Circuit ....................................................
1 GB Bundle ....................................................
$6,000 per connection initial charge plus
$5,000 monthly per connection.
$10,000 per connection.
$25,000 initial charge plus $13,000 monthly
charge.
10 GB Bundle ..................................................
Bundled Network Access, Option 2 (2 LCN connections, 2 SFTI connections, 1 optic connection to outside access center, and 1 optic
connection in data center).
1 GB Bundle ....................................................
10 Gb Bundle ...................................................
Bundled Network Access, Option 3 (2 LCN
Connections, 2 SFTI connections, and 2 optic
connections in data center).
1 Gb Bundle .....................................................
10 Gb Bundle ...................................................
Data Center Fiber Cross Connect ......................
Initial Install Services (Required per cabinet) ....
Hot Hands Service: Normal Business Hours,
Scheduled.
Hot Hands Service: Extended Business Hours,
Scheduled.
sroberts on DSKD5P82C1PROD with NOTICES
Hot Hands Service: Normal Business Hours,
Expedited.
Hot Hands Service: Extended Business Hours,
Expedited.
have 30 business days to formally contract with the
Exchange for full payment for the reserved cabinet
space needed or the space will be reassigned.
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17:19 Aug 19, 2010
Jkt 220001
Cross connect between a single User’s cabinets within the data center.
Includes initial racking of equipment in cabinet
and provision of up to 10 cables (4 hrs).
Applies on non-NYSE holidays, Monday to
Friday, 9am to 5pm if scheduled at least 1
day in advance.
Applies Monday to Friday 5pm to 9am, NYSE
holidays, and weekends if scheduled at
least 1 day in advance.
Applies on non-NYSE holidays, Monday to
Friday, 9am to 5pm if NOT scheduled at
least 1 day in advance.
Applies Monday to Friday 5pm to 9am, NYSE
holidays, and weekends if NOT scheduled
at least 1 day in advance.
6 As set forth below, pricing for LCN access is
provided on a stand-alone basis and on a bundled
basis in combination with SFTI connections and
optic connections to outside access centers and
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
$50,000 initial charge plus $47,000 monthly
charge
$26,000 initial charge plus $16,000 monthly
charge.
$50,000 initial charge plus $54,250 monthly
charge.
$27,500 initial charge plus $19,000 monthly
charge.
$50,000 initial charge plus $61,500 monthly
charge.
$500 per unit initial charge plus $500 monthly
per unit.
$800 per cabinet.
$200 per hour.
$275 per hour.
$250 per hour.
$325 per hour.
within the data center. The SFTI and optic
connections are not related to the co-location
services.
E:\FR\FM\20AUN1.SGM
20AUN1
51514
Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Notices
Type of service
Description
Rack and Stack ..................................................
Installation of one server in User’s cabinet.
Service encompasses handling, unpacking,
tagging, and installation of the server as
well as 1 network connection within the
User rack.
Reboot of power on one server or switch as
well as observing and reporting on the status of the reboot back to the User.
Receipt of one shipment of goods at data
center from User/supplier. Includes coordination of shipping and receiving.
Request for provision of a permanent data
center site access badge for a User representative.
Engineer, furnish and install Rittal 5″H × 12″W
cable tray on cabinet.
Engineer, furnish and install 4″ H × 24″ W
custom basket cable tray above client’s
cabinet rows.
Labor charges to install and document the fitting of a cable(s) in a User’s cabinet(s) in
excess of the 10 copper cables include in
the cabinet installation fee.
Hardware maintenance-break fix services
available through NYSE arrangement with
Delta Computer Group.
NYSE employee escort, which is required during User visits to the data center.
Network technician equipped to support User
network troubleshooting activity and to provide all necessary testing instruments to
support the User request. Prior day notice
is required.
Network technician equipped to support User
network troubleshooting activity and to provide all necessary testing instruments to
support the User request. Two hour notice
is required.
Power Recycling .................................................
Shipping and Receiving .....................................
Badge Request ...................................................
External Cabinet Cable Tray ..............................
Custom External Cabinet Cable Tray ................
Install and Document Cable ...............................
Equipment Maintenance Call Escalation ............
Visitor Security Escort ........................................
Technician Support Service—Non Emergency ..
Technician Support Service—Emergency ..........
sroberts on DSKD5P82C1PROD with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the
Securities Exchange Act of 1934 (the
‘‘Act’’),7 in general, and Sections 6(b)(4)
and 6(b)(5), of the Act,8 in particular, in
that it is designed to (i) provide for the
equitable allocation of reasonable dues,
fees, and other charges among its
members and other persons using its
facilities, and (ii) prevent fraudulent
and manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system. The Exchange believes that the
proposed changes to the Schedule are
equitable in that they apply fees for
comparable co-location services
uniformly to our Users. Moreover, the
Exchange believes that, as described
7 15
U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4) and 15 U.S.C. 78f(b)(5).
VerDate Mar<15>2010
17:19 Aug 19, 2010
Jkt 220001
Amount of charge
$200 per server.
$50 per reset.
$100 per shipment.
$50 per badge.
$400 per tray.
$100 per linear foot.
$200 per hour.
$100 per call.
$75 per hour.
$200 per hour.
$325 per hour.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
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
herein, access to its market is offered on
fair and non-discriminatory terms.
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.
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
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
• 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–NYSE–2010–56 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
E:\FR\FM\20AUN1.SGM
20AUN1
Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Notices
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2010–56. 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
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–NYSE–
2010–56 and should be submitted on or
before September 10, 2010.
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on August
4, 2010, NYSE Amex LLC (‘‘NYSE
Amex’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2010–20682 Filed 8–19–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
sroberts on DSKD5P82C1PROD with NOTICES
[Release No. 34–62731; File No. SR–
NYSEAmex–2010–80]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing of
Proposed Rule Change Amending Its
Price List To Reflect Fees Charged for
Co-Location Services
August 16, 2010.
1 15
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
VerDate Mar<15>2010
17:19 Aug 19, 2010
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.
1. Purpose
The Exchange proposes to amend its
Price List to identify fees pertaining to
co-location services, which allow
Users 4 of the Exchange to rent space on
premises controlled by the Exchange in
order that they may locate their
electronic servers in close physical
proximity to the Exchange’s trading and
execution systems. The Exchange plans
to begin operating a data center in
Mahwah, New Jersey, from which it will
offer co-location services. The Exchange
will offer space at the data center in
cabinets with power usage capability of
2 15
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
9 17
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Price List to reflect fees charged for colocation services, as described more
fully herein. The text of the proposed
rule change is available at the Exchange,
the Commission’s Public Reference
Room, on the Commission’s Web site at
https://www.sec.gov, and the Exchange’s
Web site at https://www.nyse.com.
Jkt 220001
U.S.C. 78a.
CFR 240.19b–4.
4 For the purposes of this filing, the term ‘‘Users’’
includes any ‘‘member organization,’’ as that term is
defined in NYSE Amex Equities Rule 2(b) and any
‘‘Sponsored Participant,’’ as that term is defined in
NYSE Amex Equities Rule 123B.30(a)(ii)(B).
3 17
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
51515
either four or eight kilowatts (kW).5 In
addition, the Exchange will offer Users
services related to co-location, including
cross connections, equipment and cable
installation, and remote ‘‘hot-hands’’
services.
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
Users that do not receive co-location
services. 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 Exchange’s
data center or not. In addition, colocated Users do not receive any market
data or data service product that is not
available to all Users. However, Users
that receive co-location services
normally would expect reduced
latencies in sending orders to the
Exchange and receiving market data
from the Exchange. In addition, colocated Users have the option of
obtaining access to the Exchange’s
Liquidity Center Network (‘‘LCN’’), a
local area network available in the data
center.6 Co-located Users have the
option of using either the LCN or the
Exchange’s Secure Financial
Transaction Infrastructure (‘‘SFTI’’)
network, to which all Users have access.
Because it operates as a local area
network within the data center, the LCN
provides reduced latencies in
comparison with SFTI. Other than the
reduced latencies, the Exchange
believes that there are no material
differences in terms of access to the
Exchange between Users that choose to
co-locate and those that do not. SFTI
and LCN both provide Users with access
to the Exchange’s trading and execution
systems and to the Exchange’s
5 The Exchange also allows Users, for a monthly
fee (i.e., 40% of the applicable monthly per kW fee),
to obtain an option for future use on available,
unused cabinet space in proximity to their existing
cabinet space. Specifically, Users may reserve
cabinet space of up to 30% of the cabinet space
under contract, which the Exchange will endeavor
to provide as close as reasonably possible to the
User’s existing cabinet space, taking into
consideration power availability within segments of
the data center and the overall efficiency of use of
data center resources as determined by the
Exchange. (If the 30% measurement results in a
fractional cabinet, the cabinet count is adjusted up
to the next increment.) If reserved cabinet space
becomes needed for use, the reserving User will
have 30 business days to formally contract with the
Exchange for full payment for the reserved cabinet
space needed or the space will be reassigned.
6 As set forth below, pricing for LCN access is
provided on a stand-alone basis and on a bundled
basis in combination with SFTI connections and
optic connections to outside access centers and
within the data center. The SFTI and optic
connections are not related to the co-location
services.
E:\FR\FM\20AUN1.SGM
20AUN1
]]>Agencies
[Federal Register Volume 75, Number 161 (Friday, August 20, 2010)]
[Notices]
[Pages 51512-51515]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-20682]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62732; File No. SR-NYSE-2010-56]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing of Proposed Rule Change Amending Its Price List To
Reflect Fees Charged for Co-Location Services
August 16, 2010.
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 August 3, 2010, New York Stock Exchange LLC (``NYSE'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Price List to reflect fees
charged for co-location services, as described more fully herein. The
text of the proposed rule change is available at the Exchange, the
Commission's Public Reference Room, on the Commission's Web site at
https://www.sec.gov, and the Exchange's Web site at https://www.nyse.com.
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 its Price List to identify fees
pertaining to co-location services, which allow Users \4\ of the
Exchange to rent space on premises controlled by the Exchange in order
that they may locate their electronic servers in close physical
proximity to the Exchange's trading and execution systems. The Exchange
plans to begin operating a data center in Mahwah, New Jersey, from
which it will offer co-location services. The Exchange will offer space
at the data center in cabinets with power usage capability of either
four or eight kilowatts (kW).\5\ In
[[Page 51513]]
addition, the Exchange will offer Users services related to co-
location, including cross connections, equipment and cable
installation, and remote ``hot-hands'' services, which allow Users to
use on-site data center personnel to maintain User equipment. The
Exchange notes that Users will be able to obtain permanent access
badges for their representatives at a cost of $50 per badge, which
includes the cost of a background check. User representatives are not
required to obtain a permanent access badge to gain access to the data
center, but all visitors to the data center will be required to have a
visitor security escort at the cost of $75 per hour.
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\4\ For the purposes of this filing, the term ``Users'' includes
any ``member organization,'' as that term is defined in NYSE Rule
2(b) and any ``Sponsored Participant,'' as that term is defined in
NYSE Rule 123B.30(a)(ii)(B).
\5\ The Exchange also allows Users, for a monthly fee (i.e., 40%
of the applicable monthly per kW fee), to obtain an option for
future use on available, unused cabinet space in proximity to their
existing cabinet space. Specifically, Users may reserve cabinet
space of up to 30% of the cabinet space under contract, which the
Exchange will endeavor to provide as close as reasonably possible to
the User's existing cabinet space, taking into consideration power
availability within segments of the data center and the overall
efficiency of use of data center resources as determined by the
Exchange. (If the 30% measurement results in a fractional cabinet,
the cabinet count is adjusted up to the next increment.) If reserved
cabinet space becomes needed for use, the reserving User will have
30 business days to formally contract with the Exchange for full
payment for the reserved cabinet space needed or the space will be
reassigned.
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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 Users that do not
receive co-location services. 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 Exchange's 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.
However, Users that receive co-location services normally would expect
reduced latencies in sending orders to the Exchange and receiving
market data from the Exchange. In addition, co-located Users have the
option of obtaining access to the Exchange's Liquidity Center Network
(``LCN''), a local area network available in the data center.\6\ Co-
located Users have the option of using either the LCN or the Exchange's
Secure Financial Transaction Infrastructure (``SFTI'') network, to
which all Users have access. Because it operates as a local area
network within the data center, the LCN provides reduced latencies in
comparison with SFTI. Other than the reduced latencies, the Exchange
believes that there are no material differences in terms of access to
the Exchange between Users that choose to co-locate and those that do
not. SFTI and LCN both provide Users with access to the Exchange's
trading and execution systems and to the Exchange's proprietary market
data products. User access to non-proprietary market data products is
available through SFTI and not through LCN.
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\6\ As set forth below, pricing for LCN access is provided on a
stand-alone basis and on a bundled basis in combination with SFTI
connections and optic connections to outside access centers and
within the data center. The SFTI and optic connections are not
related to the co-location services.
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The Exchange offers co-location space based on availability and the
Exchange believes that it has sufficient space in the Mahwah data
center to accommodate current demand on an equitable basis for the
foreseeable future. In addition, the Exchange believes that any
difference among the positions of the cabinets within the data center
does not create any material difference to co-location Users in terms
of access to the Exchange.
The following charts identify the proposed tiered fees for co-
location and the proposed fees for related services.
------------------------------------------------------------------------
------------------------------------------------------------------------
Initial fee per cabinet.................................... $5,000
------------------------------------------------------------------------
Number of kWs Per kW fee
monthly
------------------------------------------------------------------------
4-8........................................................ $1,200
12-20...................................................... 1,050
24-40...................................................... 950
44 +....................................................... 900
------------------------------------------------------------------------
------------------------------------------------------------------------
Type of service Description Amount of charge
------------------------------------------------------------------------
LCN Access.................. 1Gb Circuit......... $6,000 per
connection initial
charge plus $5,000
monthly per
connection.
LCN Access.................. 10 Gb Circuit....... $10,000 per
connection.
Bundled Network Access, 1 GB Bundle......... $25,000 initial
Option 1 (2 LCN charge plus $13,000
connections, 2 SFTI monthly charge.
connections, and 2 optic
connections to outside
access center).
10 GB Bundle........ $50,000 initial
charge plus $47,000
monthly charge
Bundled Network Access, 1 GB Bundle......... $26,000 initial
Option 2 (2 LCN charge plus $16,000
connections, 2 SFTI monthly charge.
connections, 1 optic
connection to outside
access center, and 1 optic
connection in data center).
10 Gb Bundle........ $50,000 initial
charge plus $54,250
monthly charge.
Bundled Network Access, 1 Gb Bundle......... $27,500 initial
Option 3 (2 LCN charge plus $19,000
Connections, 2 SFTI monthly charge.
connections, and 2 optic
connections in data center).
10 Gb Bundle........ $50,000 initial
charge plus $61,500
monthly charge.
Data Center Fiber Cross Cross connect $500 per unit
Connect. between a single initial charge plus
User's cabinets $500 monthly per
within the data unit.
center.
Initial Install Services Includes initial $800 per cabinet.
(Required per cabinet). racking of
equipment in
cabinet and
provision of up to
10 cables (4 hrs).
Hot Hands Service: Normal Applies on non-NYSE $200 per hour.
Business Hours, Scheduled. holidays, Monday to
Friday, 9am to 5pm
if scheduled at
least 1 day in
advance.
Hot Hands Service: Extended Applies Monday to $275 per hour.
Business Hours, Scheduled. Friday 5pm to 9am,
NYSE holidays, and
weekends if
scheduled at least
1 day in advance.
Hot Hands Service: Normal Applies on non-NYSE $250 per hour.
Business Hours, Expedited. holidays, Monday to
Friday, 9am to 5pm
if NOT scheduled at
least 1 day in
advance.
Hot Hands Service: Extended Applies Monday to $325 per hour.
Business Hours, Expedited. Friday 5pm to 9am,
NYSE holidays, and
weekends if NOT
scheduled at least
1 day in advance.
[[Page 51514]]
Rack and Stack.............. Installation of one $200 per server.
server in User's
cabinet. Service
encompasses
handling,
unpacking, tagging,
and installation of
the server as well
as 1 network
connection within
the User rack.
Power Recycling............. Reboot of power on $50 per reset.
one server or
switch as well as
observing and
reporting on the
status of the
reboot back to the
User.
Shipping and Receiving...... Receipt of one $100 per shipment.
shipment of goods
at data center from
User/supplier.
Includes
coordination of
shipping and
receiving.
Badge Request............... Request for $50 per badge.
provision of a
permanent data
center site access
badge for a User
representative.
External Cabinet Cable Tray. Engineer, furnish $400 per tray.
and install Rittal
5''H x 12''W cable
tray on cabinet.
Custom External Cabinet Engineer, furnish $100 per linear
Cable Tray. and install 4'' H x foot.
24'' W custom
basket cable tray
above client's
cabinet rows.
Install and Document Cable.. Labor charges to $200 per hour.
install and
document the
fitting of a
cable(s) in a
User's cabinet(s)
in excess of the 10
copper cables
include in the
cabinet
installation fee.
Equipment Maintenance Call Hardware maintenance- $100 per call.
Escalation. break fix services
available through
NYSE arrangement
with Delta Computer
Group.
Visitor Security Escort..... NYSE employee $75 per hour.
escort, which is
required during
User visits to the
data center.
Technician Support Service-- Network technician $200 per hour.
Non Emergency. equipped to support
User network
troubleshooting
activity and to
provide all
necessary testing
instruments to
support the User
request. Prior day
notice is required.
Technician Support Service-- Network technician $325 per hour.
Emergency. equipped to support
User network
troubleshooting
activity and to
provide all
necessary testing
instruments to
support the User
request. Two hour
notice is required.
------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Securities Exchange Act of 1934
(the ``Act''),\7\ in general, and Sections 6(b)(4) and 6(b)(5), of the
Act,\8\ in particular, in that it is designed to (i) provide for the
equitable allocation of reasonable dues, fees, and other charges among
its members and other persons using its facilities, and (ii) prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system. The Exchange believes that the
proposed changes to the Schedule are equitable in that they apply fees
for comparable co-location services uniformly to our Users. Moreover,
the Exchange believes that, as described herein, access to its market
is offered on fair and non-discriminatory terms.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4) and 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
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
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
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 (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2010-56 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission,
[[Page 51515]]
100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2010-56. 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 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-NYSE-2010-56 and should be
submitted on or before September 10, 2010.
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\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-20682 Filed 8-19-10; 8:45 am]
BILLING CODE 8010-01-P
