Self-Regulatory Organizations; NYSE Amex LLC; Order Approving a Proposed Rule Change Amending Its Price List To Reflect Fees Charged for Co-Location Services, 59299-59300 [2010-24063]
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Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act; Notice of Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Wednesday, September 29, 2010 at
10:30 a.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matters at the Closed
Meeting.
Commissioner Casey, as duty officer,
voted to consider the items listed for the
Closed Meeting in a closed session.
The subject matter of the Closed
Meeting scheduled for Wednesday,
September 29, 2010 will be:
institution and settlement of injunctive
actions; institution and settlement of
administrative proceedings; and other
matters relating to enforcement proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact:
The Office of the Secretary at (202)
551–5400.
Dated: September 23, 2010.
Elizabeth M. Murphy,
Secretary.
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, Amex 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. Amex 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
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.
Amex 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
Amex enter the Exchange’s trading and
execution systems through the same
[FR Doc. 2010–24228 Filed 9–23–10; 11:15 am]
1 15
BILLING CODE 8010–01–P
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 62731
(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 Amex Equities Rule 2(b) and any
‘‘Sponsored Participant,’’ as that term is defined in
NYSE Amex Equities 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.
2 17
SECURITIES AND EXCHANGE
COMMISSION
srobinson on DSKHWCL6B1PROD with NOTICES
[Release No. 34–62961; File No. SR–
NYSEAmex–2010–80]
Self-Regulatory Organizations; NYSE
Amex LLC; Order Approving a
Proposed Rule Change Amending Its
Price List To Reflect Fees Charged for
Co-Location Services
September 21, 2010.
On August 4, 2010, NYSE Amex LLC
(‘‘Amex’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
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17:01 Sep 24, 2010
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Frm 00094
Fmt 4703
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59299
order gateway regardless of whether the
sender is co-located in the Exchange’s
data center or not. Furthermore, Amex
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 Amex, 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.
Amex 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 Amex 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.
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).
E:\FR\FM\27SEN1.SGM
27SEN1
59300
Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices
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 similarly
situated market participants. In
addition, the Commission believes that
the connectivity options described in
the proposed rule change are not
unfairly discriminatory because Amex
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 Amex, 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–NYSEAmex–
2010–80) 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. 2010–24063 Filed 9–24–10; 8:45 am]
srobinson on DSKHWCL6B1PROD with NOTICES
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62953; File No. SR–FINRA–
2010–049]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a
Proposed Rule Change Relating to
Quotation Requirements on the
Alternative Display Facility
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, Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by FINRA. 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
FINRA is proposing to amend FINRA
Rule 6272 to enhance quotation
requirements on the Alternative Display
Facility (‘‘ADF’’).
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA, 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,
FINRA 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. FINRA 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
In 2002, FINRA created the ADF to
ensure that any FINRA member,
including alternative trading systems,
seeking to display quotations for NMS
8 15
U.S.C. 78f(b)(4).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(2).
11 17 CFR 200.30–3(a)(12).
9 15
VerDate Mar<15>2010
17:01 Sep 24, 2010
1 15
2 17
Jkt 220001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00095
Fmt 4703
Sfmt 4703
stocks in the over-the-counter (‘‘OTC’’)
market, rather than through an exchange
platform, has an alternative venue
through which to post its OTC
quotations and report trades.3
FINRA and numerous exchanges are
filing proposed rule changes to enhance
the minimum quotation requirements
for market makers by requiring market
makers for each stock in which they are
registered to continuously maintain
two-sided quotations within a
designated percentage of the National
Best Bid and National Best Offer (or if
there is not a National Best Bid or Offer,
the last reported sale). These proposed
rule changes are intended to eliminate
trade executions against market maker
‘‘placeholder’’ quotations that are priced
far away from the inside market,
commonly known as ‘‘stub quotes.’’
Under these proposed rules, limitations
on permissible quotations are
determined by the individual character
of the security, the time of day in which
the quote is entered, and any applicable
stock trading pause triggers.
In order to ensure consistency in
quotation requirements across markets,
FINRA is proposing to amend Rule 6272
to impose the same limitations on a
Registered Reporting ADF Market
Maker’s quotations on the ADF that will
apply to market makers on national
securities exchanges. The proposed rule
change would thus require all
Registered Reporting ADF Market
Makers to have systems in place to
ensure that any quotations displayed on
the ADF met the requirements of Rule
6272.
FINRA will announce the
implementation date on its Web site.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,4 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 ensure
consistent treatment of quotations
across markets and could prevent the
execution of numerous transactions at
3 Initially, the ADF was limited to quotations and
trade reports in Nasdaq securities. See Securities
Exchange Act Release No. 46249 (July 24, 2002), 67
FR 49822 (July 31, 2002). In 2006, the ADF was
expanded to include all NMS stocks. See Securities
Exchange Act Release No. 54537 (September 28,
2006), 71 FR 59173 (October 6, 2006).
4 15 U.S.C. 78o–3(b)(6).
E:\FR\FM\27SEN1.SGM
27SEN1
]]>Agencies
[Federal Register Volume 75, Number 186 (Monday, September 27, 2010)]
[Notices]
[Pages 59299-59300]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-24063]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62961; File No. SR-NYSEAmex-2010-80]
Self-Regulatory Organizations; NYSE Amex LLC; Order Approving a
Proposed Rule Change Amending Its Price List To Reflect Fees Charged
for Co-Location Services
September 21, 2010.
On August 4, 2010, NYSE Amex LLC (``Amex'' 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 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 62731 (Aug. 16,
2010), 75 FR 51512 (``Notice'').
---------------------------------------------------------------------------
In its proposal, Amex 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. Amex 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 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 Amex
Equities Rule 2(b) and any ``Sponsored Participant,'' as that term
is defined in NYSE Amex Equities 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.
---------------------------------------------------------------------------
Amex 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 Amex 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, Amex
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 Amex, 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\ Amex 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.
---------------------------------------------------------------------------
Amex 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
[[Page 59300]]
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 Amex 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 Amex, 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-NYSEAmex-2010-80) 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. 2010-24063 Filed 9-24-10; 8:45 am]
BILLING CODE 8010-01-P
