Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving a Proposed Rule Change Amending Its Price List To Reflect Fees Charged for Co-Location Services, 59310-59311 [2010-24061]
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59310
Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices
applicable trigger pause percentage
(31.5%) whereupon the CBSX MarketMaker must immediately move its quote
back to at least the permissible default
level of 30%. These requirements shall
apply to Regulation NMS stocks during
CBSX Regular Trading Hours after the
primary listing market has disseminated
an opening quote in the stock for the
given trading day.
Nothing in the above precludes a
CBSX Market-Maker from voluntarily
quoting at price levels that are closer to
the national best bid and best offer than
required under the proposal.
2. Statutory Basis
The statutory basis for the proposed
rule change is Section 6(b)(5) of the
Act,6 which requires the rules of an
exchange 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. The proposed rule
change also is designed to support the
principles of Section 11A(a)(1) 7 of the
Act in that it seeks to assure fair
competition among brokers and dealers
and among exchange markets. The
Exchange believes that the proposed
rule meets these requirements in that it
promotes transparency and uniformity
across markets concerning minimum
market maker quotation requirements.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
srobinson on DSKHWCL6B1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange neither solicited nor
received comments on the proposal.
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 (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:
6 15
7 15
U.S.C. 78f(b)(5).
U.S.C. 78k–1(a)(1).
VerDate Mar<15>2010
17:01 Sep 24, 2010
Jkt 220001
(A) By order approve or disapprove
such proposed rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
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:
[FR Doc. 2010–24055 Filed 9–24–10; 8:45 am]
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–CBOE–2010–087 on the
subject line.
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Approving a Proposed Rule Change
Amending Its Price List To Reflect
Fees Charged for Co-Location
Services
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–CBOE–2010–087. 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 inspection and copying 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 publicly available. All
submissions should refer to File
Number SR–CBOE–2010–087 and
should be submitted on or before
October 18, 2010.
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BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62960; File No. SR–NYSE–
2010–56]
September 21, 2010.
On August 3, 2010, New York Stock
Exchange LLC (‘‘NYSE’’ 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
amend its Price List to reflect fees
charged for co-location services. The
proposed rule change was published for
comment in the Federal Register on
August 20, 2010.3 The Commission
received no comment letters on the
proposal. This order approves the
proposed rule change.
In its proposal, NYSE proposed 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 so that they may locate their
electronic servers in close physical
proximity to the Exchange’s trading and
execution systems. NYSE represented
that it planned to begin operating a data
center in Mahwah, New Jersey, from
which it will offer co-location services.
The Exchange represented that it will
offer space at the data center in cabinets
with power usage capability of either
four or eight kilowatts (kW).5 In
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR240.19b–4.
3 See Securities Exchange Act Release No. 62732
(Aug 16, 2010), 75 FR 51512 (‘‘Notice’’).
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 represented that it 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
1 15
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27SEN1
Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices
srobinson on DSKHWCL6B1PROD with NOTICES
addition, the Exchange stated that it will
offer Users services related to colocation, 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 proposed tiered colocation fees based on the level of
service (1Gb circuit, 10Gb circuit and
various bundled options), and
additional fees for related services.
NYSE represented that 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. The
Exchange noted that all orders sent to
NYSE 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. Furthermore, NYSE
noted that co-located Users do not
receive any market data or data service
product that is not available to all Users.
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, the Exchange represented
that 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.
According to NYSE, SFTI and LCN both
provide Users with access to the
Exchange’s trading and execution
systems and to the Exchange’s
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.
6 NYSE represented that 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.
VerDate Mar<15>2010
17:01 Sep 24, 2010
Jkt 220001
proprietary market data products. User
access to non-proprietary market data
products is available through SFTI and
not through LCN.
NYSE represented that it offers colocation 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.
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.7 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(4) of the Act,8 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,9 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 tiered fees for co-location and
related services are reasonable and
equitably allocated insofar as they are
applied on the same terms to similarlysituated market participants. In
addition, the Commission believes that
the connectivity options described in
the proposed rule change are not
unfairly discriminatory because NYSE
makes the co-location services
uniformly available to all Users who
voluntarily request them and pay the
fees as detailed in the proposal. As
represented by NYSE, these fees are
uniform for all such customers and may
vary from User to User due to each
User’s choice of service package.
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,10 that the
proposed rule change (SR–NYSE–2010–
56) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–24061 Filed 9–24–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62950; File No. SR–
NASDAQ–2010–115]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of a Proposed Rule Change To
Enhance Quotation Requirements for
Market Makers
September 20, 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
September 17, 2010, The NASDAQ
Stock Market LLC (‘‘Nasdaq’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASDAQ proposes to enhance
quotation requirements for market
makers.
The text of the proposed rule change
is below. Proposed new language is in
* * * proposed deletions are in
[brackets].3
*
*
*
*
*
4751. Definitions
The following definitions apply to the
Rule 4600 and 4750 Series for the
trading of securities listed on Nasdaq or
10 15
7 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).
8 15 U.S.C. 78f(b)(4).
9 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
59311
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.
3 Changes are marked to the rule text that appears
in the electronic manual of Nasdaq found at https://
nasdaqomx.cchwallstreet.com.
11 17
E:\FR\FM\27SEN1.SGM
27SEN1
]]>Agencies
[Federal Register Volume 75, Number 186 (Monday, September 27, 2010)]
[Notices]
[Pages 59310-59311]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-24061]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62960; File No. SR-NYSE-2010-56]
Self-Regulatory Organizations; New York Stock Exchange LLC; Order
Approving a Proposed Rule Change Amending Its Price List To Reflect
Fees Charged for Co-Location Services
September 21, 2010.
On August 3, 2010, New York Stock Exchange LLC (``NYSE'' 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 amend its Price List to reflect fees charged
for co-location services. The proposed rule change was published for
comment in the Federal Register on August 20, 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 CFR240.19b-4.
\3\ See Securities Exchange Act Release No. 62732 (Aug 16,
2010), 75 FR 51512 (``Notice'').
---------------------------------------------------------------------------
In its proposal, NYSE proposed 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 so that
they may locate their electronic servers in close physical proximity to
the Exchange's trading and execution systems. NYSE represented that it
planned to begin operating a data center in Mahwah, New Jersey, from
which it will offer co-location services. The Exchange represented that
it will offer space at the data center in cabinets with power usage
capability of either four or eight kilowatts (kW).\5\ In
[[Page 59311]]
addition, the Exchange stated that it 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 proposed tiered co-location fees based on the level of service
(1Gb circuit, 10Gb circuit and various bundled options), and additional
fees for related services.
---------------------------------------------------------------------------
\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 represented that it 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.
---------------------------------------------------------------------------
NYSE represented that 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. The Exchange noted
that all orders sent to NYSE 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. Furthermore, NYSE
noted that co-located Users do not receive any market data or data
service product that is not available to all Users. 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, the Exchange represented that 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. According to NYSE, 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.
---------------------------------------------------------------------------
\6\ NYSE represented that 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.
---------------------------------------------------------------------------
NYSE represented that it 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.
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.\7\
In particular, the Commission finds that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\8\ 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,\9\ 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.
---------------------------------------------------------------------------
\7\ 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).
\8\ 15 U.S.C. 78f(b)(4).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that the proposed tiered fees for co-
location and related services 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 NYSE makes the co-location services
uniformly available to all Users who voluntarily request them and pay
the fees as detailed in the proposal. As represented by NYSE, these
fees are uniform for all such customers and may vary from User to User
due to each User's choice of service package. 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,\10\ that the proposed rule change (SR-NYSE-2010-56) be, and hereby
is, approved.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-24061 Filed 9-24-10; 8:45 am]
BILLING CODE 8010-01-P
