Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Options Fee Schedule To Reflect Fees Charged for Co-location Services, 69722-69725 [2010-28607]
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69722
Federal Register / Vol. 75, No. 219 / Monday, November 15, 2010 / Notices
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 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 offices 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–2010–138, and
should be submitted on or before
December 6, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–28548 Filed 11–12–10; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–63274; File No. SR–
NYSEAmex–2010–101]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Its Options
Fee Schedule To Reflect Fees Charged
for Co-location Services
srobinson on DSKHWCL6B1PROD with NOTICES
November 8, 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 October
26, 2010, NYSE Amex LLC (‘‘NYSE
Amex’’ or the ‘‘Exchange’’) filed with the
8 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
18:04 Nov 12, 2010
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Options Fee Schedule 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
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
SECURITIES AND EXCHANGE
COMMISSION
VerDate Mar<15>2010
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 self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
Jkt 223001
The Exchange proposes to amend its
Options Fee Schedule 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.5 The Exchange plans
to offer these co-location services
4 For the purposes of this filing, the term ‘‘Users’’
includes any ‘‘ATP Holder,’’ as that term is defined
in NYSE Amex (Options) Rule 900.2NY(4) and any
‘‘Sponsored Participant,’’ as that term is defined in
NYSE Amex (Options) Rule 900.2NY(77).
5 The Commission has approved proposed rule
filings submitted by the Exchange (with respect to
its equities business) and the Exchange’s affiliate,
the New York Stock Exchange LLC to offer the same
co-location services from the Mahwah data center
at the same prices. See Securities Exchange Act
Release No. 62961 (September 21, 2010), 75 FR
59299 (September 27, 2010) (SR–NYSE–2010–56);
Securities Exchange Act Release No. 62960
(September 21, 2010) 75 FR 59310 (September 27,
2010) (SR–NYSEAmex–2010–80).
PO 00000
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beginning in January 2011 at its data
center in Mahwah New Jersey.6 The
Exchange will offer space at the data
center in cabinets with power usage
capability of either four or eight
kilowatts (kW).7 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.8 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
6 The Exchange will announce the effective date
of the fees set forth in this proposed rule change
through a notice to Users.
7 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.
8 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\15NON1.SGM
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Federal Register / Vol. 75, No. 219 / Monday, November 15, 2010 / Notices
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.
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
12–20
24–40
44 +
$1,200
1,050
950
900
Type of service
Description
Amount of charge
LCN Access ........................................................
1 GB 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 (Note: Hot Hands Service allows
Users to use on-site data center personnel to
maintain User equipment.).
Hot Hands Service: Extended Business Hours,
Scheduled.
Hot Hands Service: Normal Business Hours,
Expedited.
Hot Hands Service: Extended Business Hours,
Expedited.
Rack and Stack ..................................................
Power Recycling .................................................
Shipping and Receiving .....................................
srobinson on DSKHWCL6B1PROD with NOTICES
Badge Request ...................................................
External Cabinet Cable Tray ..............................
Custom External Cabinet Cable Tray ................
Install and Document Cable ...............................
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18:04 Nov 12, 2010
Jkt 223001
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 Amex holidays, Monday to Friday, 9 am to 5 pm if scheduled at
least 1 day in advance.
Applies Monday to Friday 5 pm to 9 am,
NYSE Amex holidays, and weekends if
scheduled at least 1 day in advance.
Applies on non-NYSE Amex holidays, Monday to Friday, 9 am to 5 pm if NOT scheduled at least 1 day in advance.
Applies Monday to Friday 5 pm to 9 am,
NYSE Amex holidays, and weekends if
NOT scheduled at least 1 day in advance.
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 X 12″
W cable tray on cabinet.
Engineer, furnish and install 4″ H V 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 included in
the cabinet installation fee.
PO 00000
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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.
$200 per server.
$50 per reset.
$100 per shipment.
$50 per badge.
$400 per tray.
$100 per linear foot.
$200 per hour.
E:\FR\FM\15NON1.SGM
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Federal Register / Vol. 75, No. 219 / Monday, November 15, 2010 / Notices
Type of service
Description
Equipment Maintenance Call Escalation ............
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. (Note: all
User representatives are required to have a
visitor security escort during visits to the
data center, including User representatives
who have a permanent data center site access badge.).
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.
Visitor Security Escort ........................................
Technician Support Service—Non Emergency ..
Technician Support Service—Emergency ..........
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’’),9 in general, and Sections 6(b)(4)
and 6(b)(5), of the Act,10 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.
srobinson on DSKHWCL6B1PROD with NOTICES
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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 11 and Rule
19b–4(f)(6) thereunder.12 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
The Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. The
Commission notes that the co-location
fees sought to be codified here are based
11 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Commission notes that the
Exchange satisfied this five-day pre-filing
requirement.
12 17
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and 15 U.S.C. 78f(b)(5).
10 15
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18:04 Nov 12, 2010
Jkt 223001
Amount of charge
PO 00000
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Fmt 4703
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$100 per call.
$75 per hour.
$200 per hour.
$325 per hour.
on filings by the Exchange and the
Exchange’s affiliate, the New York Stock
Exchange LLC, which have already been
approved by the Commission, and that
accelerated approval of the co-location
fees will ensure that the co-location
services and fees are made available to
all interested parties without delay. For
this reason, the Commission designates
the proposed rule change as operative
upon filing.13
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
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 rulecomments@sec.gov. Please include File
Number SR–NYSEAmex–2010–101 on
the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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Federal Register / Vol. 75, No. 219 / Monday, November 15, 2010 / Notices
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–NYSEAmex–2010–101.
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–
NYSEAmex–2010–101 and should be
submitted on or before December 6,
2010.
[Release No. 34–63277; File No. SR–FINRA–
2010–058]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–28607 Filed 11–12–10; 8:45 am]
srobinson on DSKHWCL6B1PROD with NOTICES
BILLING CODE 8011–01–P
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Delay the Effective
Date of the Changes to the FINRA
Trade Reporting and Order Audit Trail
System Rules Approved in SR–FINRA–
2010–043
November 8, 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 November
5, 2010, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
substantially prepared by FINRA.
FINRA has designated the proposed rule
change as ‘‘constituting a stated policy,
practice, or interpretation with respect
to the meaning, administration, or
enforcement of an existing rule’’ under
Section 19(b)(3)(A)(i) of the Act 3 and
Rule 19b–4(f)(1) thereunder,4 which
renders the proposal effective upon
receipt of this filing by the Commission.
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 a rule change to
delay the effective date of the changes
to the FINRA trade reporting and Order
Audit Trail System (‘‘OATS’’) rules as
proposed in SR–FINRA–2010–043 and
approved by the SEC on October 4,
2010.5 The new effective date will be
the new compliance date of the
amendments to SEC Regulation SHO.
The proposed rule change would not
make any changes to the text of FINRA
rules.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
5 See Securities Exchange Act Release No. 63032
(October 4, 2010), 75 FR 62439 (October 8, 2010)
(Order Approving File No. SR–FINRA–2010–043).
2 17
14 17
CFR 200.30–3(a)(12).
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18:04 Nov 12, 2010
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69725
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
On February 26, 2010, the SEC
adopted changes to SEC Regulation SHO
with a compliance date of November 10,
2010.6 On November 4, 2010, the SEC
delayed the compliance date of these
amendments to SEC Regulation SHO
until February 28, 2011.7
On August 6, 2010, FINRA filed a
proposed rule change, including
amendments to FINRA’s trade reporting
and OATS rules consistent with the
amendments to SEC Regulation SHO
(SR–FINRA–2010–043) (the ‘‘Short
Exempt Filing’’). The Short Exempt
Filing was approved by the Commission
on October 4, 2010 with an effective
date of November 10, 2010. In light of
the delay of the compliance date for the
amendments to SEC Regulation SHO,
FINRA is proposing to likewise delay
the effective date of the FINRA
amendments proposed in the Short
Exempt Filing until the new compliance
date of SEC Regulation SHO.
FINRA has filed the proposed rule
change for immediate effectiveness. The
implementation date will be the new
compliance date of SEC Regulation
SHO.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,8 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
delaying the effective date of the
6 See Securities Exchange Act Release No. 61595
(February 26, 2010), 75 FR 11232 (March 10, 2010).
7 See Securities Exchange Act Release No. 63247
(November 4, 2010).
8 15 U.S.C. 78o–3(b)(6).
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]]>Agencies
[Federal Register Volume 75, Number 219 (Monday, November 15, 2010)]
[Notices]
[Pages 69722-69725]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-28607]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63274; File No. SR-NYSEAmex-2010-101]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Its
Options Fee Schedule To Reflect Fees Charged for Co-location Services
November 8, 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 October 26, 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 self-regulatory
organization. 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 Options Fee Schedule 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 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 Options Fee Schedule 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.\5\ The
Exchange plans to offer these co-location services beginning in January
2011 at its data center in Mahwah New Jersey.\6\ The Exchange will
offer space at the data center in cabinets with power usage capability
of either four or eight kilowatts (kW).\7\ In addition, the Exchange
will offer Users services related to co-location, including cross
connections, equipment and cable installation, and remote ``hot-hands''
services.
---------------------------------------------------------------------------
\4\ For the purposes of this filing, the term ``Users'' includes
any ``ATP Holder,'' as that term is defined in NYSE Amex (Options)
Rule 900.2NY(4) and any ``Sponsored Participant,'' as that term is
defined in NYSE Amex (Options) Rule 900.2NY(77).
\5\ The Commission has approved proposed rule filings submitted
by the Exchange (with respect to its equities business) and the
Exchange's affiliate, the New York Stock Exchange LLC to offer the
same co-location services from the Mahwah data center at the same
prices. See Securities Exchange Act Release No. 62961 (September 21,
2010), 75 FR 59299 (September 27, 2010) (SR-NYSE-2010-56);
Securities Exchange Act Release No. 62960 (September 21, 2010) 75 FR
59310 (September 27, 2010) (SR-NYSEAmex-2010-80).
\6\ The Exchange will announce the effective date of the fees
set forth in this proposed rule change through a notice to Users.
\7\ 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.\8\ 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
[[Page 69723]]
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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\8\ 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.................. 1 GB 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 Amex holidays,
(Note: Hot Hands Service Monday to Friday, 9
allows Users to use on-site am to 5 pm if
data center personnel to scheduled at least
maintain User equipment.). 1 day in advance.
Hot Hands Service: Extended Applies Monday to $275 per hour.
Business Hours, Scheduled. Friday 5 pm to 9
am, NYSE Amex
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. Amex holidays,
Monday to Friday, 9
am to 5 pm if NOT
scheduled at least
1 day in advance.
Hot Hands Service: Extended Applies Monday to $325 per hour.
Business Hours, Expedited. Friday 5 pm to 9
am, NYSE Amex
holidays, and
weekends if NOT
scheduled at least
1 day in advance.
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 V 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
included in the
cabinet
installation fee.
[[Page 69724]]
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. (Note:
all User
representatives are
required to have a
visitor security
escort during
visits to the data
center, including
User
representatives who
have a permanent
data center site
access badge.).
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''),\9\ in general, and Sections 6(b)(4) and 6(b)(5), of the
Act,\10\ 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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\9\ 15 U.S.C. 78f(b).
\10\ 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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Commission notes that the Exchange satisfied this five-day pre-
filing requirement.
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The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest. The Commission notes that the co-location fees sought
to be codified here are based on filings by the Exchange and the
Exchange's affiliate, the New York Stock Exchange LLC, which have
already been approved by the Commission, and that accelerated approval
of the co-location fees will ensure that the co-location services and
fees are made available to all interested parties without delay. For
this reason, the Commission designates the proposed rule change as
operative upon filing.\13\
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\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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-NYSEAmex-2010-101 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary,
[[Page 69725]]
Securities and Exchange Commission, 100 F Street, NE., Washington, DC
20549-1090.
All submissions should refer to File Number SR-NYSEAmex-2010-101. 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-
NYSEAmex-2010-101 and should be submitted on or before December 6,
2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-28607 Filed 11-12-10; 8:45 am]
BILLING CODE 8011-01-P
