Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Applicable Sections of Its Schedules of Fees and Charges for Exchange Services for Both Its Equities and Options Platforms (the “Schedules”) To Reflect Fees Charged for Co-location Services, 70048-70052 [2010-28691]
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70048
Federal Register / Vol. 75, No. 220 / Tuesday, November 16, 2010 / Notices
on the new collection of information
summarized below. The Commission
plans to submit this new collection of
information to the Office of
Management and Budget for approval.
The Securities and Exchange
Commission has begun the design of a
new Electronic Data Collection System
database (the Database) and invites
comment on the Database that will
support information provided by the
general public that would like to file a
tip or complaint with the SEC. The
Database will be a web based e-filed
dynamic report based on technology
that pre-populates and establishes a
series of questions based on the data
that the individual enters. The
individual will then complete specific
information on the subject(s) and nature
of the suspicious activity, using the data
elements appropriate to the type of
complaint or subject. The information
collection is voluntary. The first phase
of the Database is scheduled to be
released as a pilot in December 2010.
Any public suggestions that are received
during the pilot phase will be reviewed
and changes will be considered. The
final version will be available Spring
2011. There are no costs associated with
this collection. It will be available using
the agency’s Web site https://
www.sec.gov. Information is voluntary.
Estimated number of annual
responses = 25,000.
Estimated annual reporting burden =
12,500 hours (30 minutes per
submission).
Written comments are invited on: (a)
Whether this collection of information
is necessary for the proper performance
of the functions of the agency, including
whether the information will have
practical utility; (b) the accuracy of the
agency’s estimate of the burden imposed
by the collection of information; (c)
ways to enhance the quality, utility, and
clarity of the information collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 30 days of this
publication.
Background documentation for this
new information collection may be
viewed at the following Web site, https://
www.reginfo.gov. Please direct general
comments to the following persons: (i)
Desk Officer for the Securities and
Exchange Commission, Office of
Management and Budget, Room 10102,
New Executive Office Building,
Washington, DC 20503 or send an email to Shagufta Ahmed at
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19:33 Nov 15, 2010
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Shagufta_Ahmed@omb.eop.gov;
Thomas Bayer, Director/CIO, Securities
and Exchange Commission, C/O Remi
Pavlik-Simon, 6432 General Green Way,
Alexandria, VA 22312; or send an email to: PRA_Mailbox@sec.gov.
Comments must be submitted to OMB
within 30 days of this notice.
November 5, 2010.
Florence E. Harmon,
Deputy Secretary.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act 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 Thursday, November 18, 2010 at 3
p.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 Aguilar, as duty
officer, voted to consider the items
listed for the Closed Meeting in a closed
session, and determined that no earlier
notice thereof was possible.
The subject matter of the Closed
Meeting scheduled for Thursday,
November 18, 2010 will be:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Consideration of amicus participation;
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.
Frm 00136
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[FR Doc. 2010–28924 Filed 11–12–10; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
[FR Doc. 2010–28777 Filed 11–15–10; 8:45 am]
PO 00000
November 10, 2010.
Elizabeth M. Murphy,
Secretary.
Sfmt 4703
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 its annual forum
on small business capital formation on
November 18, 2010 beginning at 9 a.m.
The forum will include a panel
discussion focusing on selected
provisions of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act relating to securities regulation and
small business and presentations by
private organizations concerned with
small business capital formation.
The panel discussion and
presentations will take place in the
Auditorium of the Commission’s
headquarters at 100 F Street, NE.,
Washington, DC and will be open to the
public with seating on a first-come, firstserved basis. Doors will open at 8:30
a.m. Visitors will be subject to security
checks.
For further information, please
contact Anthony Barone at 202–551–
3261.
November 10, 2010.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–28865 Filed 11–12–10; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63275; File No. SR–
NYSEArca–2010–100]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending the Applicable
Sections of Its Schedules of Fees and
Charges for Exchange Services for
Both Its Equities and Options
Platforms (the ‘‘Schedules’’) 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
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
E:\FR\FM\16NON1.SGM
16NON1
Federal Register / Vol. 75, No. 220 / Tuesday, November 16, 2010 / Notices
notice is hereby given that, on
November 3, 2010, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
applicable sections of its Schedules of
Fees and Charges for Exchange Services
for both its equities and options
platforms (the ‘‘Schedules’’) 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
Schedules 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.
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
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
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4–8 ...........................................................................................................................
12-20 ........................................................................................................................
24-40 ........................................................................................................................
44 + ..........................................................................................................................
4 For the purposes of this filing, the term ‘‘Users’’
includes any ETP Holder or Sponsored Participant
who is authorized to obtain access to the NYSE
Arca Marketplace pursuant to NYSE Arca Equities
Rule 7.29 (see NYSE Arca Equities Rule 1.1(yy)), or
any OTP Holder, OTP Firm or Sponsored
Participant that is authorized to obtain access to OX
pursuant to NYSE Arca Options Rule 6.2A (see
NYSE Arca Options Rule 6.1A(a)(19)).
5 The Commission has approved proposed rule
filings submitted by the Exchange’s affiliates, the
New York Stock Exchange LLC, and NYSE Amex
LLC (with respect to its equities business), 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–
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$1,200
$1,050
$950
$900
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
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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\16NON1.SGM
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70050
Federal Register / Vol. 75, No. 220 / Tuesday, November 16, 2010 / Notices
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 ..................................................
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 ......................................................
Cross connect between a single User’s cabinets within the data center.
Initial Install Services (Required per cabinet) .....................................
Includes initial racking of equipment in cabinet and provision of up to 10 cables (4
hrs).
Applies on non-NYSE Arca holidays, Monday to Friday, 9am to 5pm if scheduled at
least 1 day in advance.
Applies Monday to Friday 5pm to 9am,
NYSE Arca holidays, and weekends if
scheduled at least 1 day in advance.
Applies on non-NYSE Arca holidays, Monday to Friday, 9am to 5pm if NOT scheduled at least 1 day in advance.
Applies Monday to Friday 5pm to 9am,
NYSE Arca 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 x 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.
Hardware maintenance-break fix services
available through NYSE Arca arrangement with Delta Computer Group.
NYSE Arca 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.
$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.
$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.
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 ......................................................................
Badge Request ...................................................................................
External Cabinet Cable Tray ..............................................................
Custom External Cabinet Cable Tray .................................................
Install and Document Cable ...............................................................
Equipment Maintenance Call Escalation ............................................
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Visitor Security Escort ........................................................................
Technician Support Service-Non Emergency ....................................
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$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.
$100 per call.
$75 per hour.
$200 per hour.
70051
Federal Register / Vol. 75, No. 220 / Tuesday, November 16, 2010 / Notices
Type of service
Description
Technician Support Service-Emergency ............................................
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.
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 Schedules 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.
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.
mstockstill on DSKH9S0YB1PROD with NOTICES
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
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and 15 U.S.C. 78f(b)(5).
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
10 15
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19:33 Nov 15, 2010
Jkt 223001
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
on filings by the Exchange’s affiliates,
the New York Stock Exchange LLC and
NYSE Amex LLC, which have already
been approved by the Commission, and
that accelerated approval of the colocation fees will ensure that the colocation 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:
change, or such shorter time as designated by the
Commission. The Commission notes that the
Exchange satisfied this five-day pre-filing
requirement.
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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Amount of charge
$325 per hour.
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–NYSEArca-2010–100 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2010–100. 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 website 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–
NYSEArca–2010–100 and should be
submitted on or before December 7,
2010.
E:\FR\FM\16NON1.SGM
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70052
Federal Register / Vol. 75, No. 220 / Tuesday, November 16, 2010 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–28691 Filed 11–15–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63284; File No. SR–EDGX–
2010–15]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend EDGX Rules
2.5 and 11.4 To Permit Qualification
and Registration of Authorized Traders
of Members Pursuant to Certain
Foreign Examination Modules
Equivalent to the Series 7 Examination
November 9, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
27, 2010, the EDGX Exchange, Inc. (the
‘‘Exchange’’ or the ‘‘EDGX’’) 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 the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
mstockstill on DSKH9S0YB1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rules 2.5 and 11.4 to permit
qualification and registration of
Authorized Traders of Members
pursuant to certain foreign examination
modules equivalent to the Series 7
examination. The Exchange also
proposes to make a technical
amendment to Rule 2.3. The text of the
proposed rule change is available on the
Exchange’s Web site at https://
www.directedge.com, at the
Commission’s Web site at https://
www.sec.gov, at the Exchange’s
principal office, and at the Public
Reference Room of the Commission.
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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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 these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization 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
Exchange Rules 2.5 and 11.4 both
state that the Series 7 is required for
registration with the Exchange as an
Authorized Trader. The purpose of the
proposed rule change is to expand the
types of exams that may satisfy the
Exchange’s Series 7 requirement by
recognizing foreign examination
modules equivalent to the Series 7
examination.
The proposal would reduce
duplicative qualification standards that
foreign registered representatives
encounter to qualify as a U.S. general
securities registered representative. For
example, the examination modules for
the U.K. (Series 17) and Canada (Series
37/38) currently are accepted as
equivalent to the U.S. Series 7 by the
NYSE, the Financial Industry
Regulatory Authority (‘‘FINRA’’), the
NASDAQ Stock Market, NYSE
AlterNext US [sic], NYSE Arca, the
Chicago Board Options Exchange
(‘‘CBOE’’), and the BATS Exchange, Inc.
(‘‘BATS’’).3
3 See, e.g., Securities Exchange Act Release No.
27967 (May 1, 1990), 55 FR 19124 (May 8, 1990)
(approving File No. SR–NYSE–89–22, Series 17);
Securities Exchange Act Release No. 36629,
International Series Release No. 909 (Dec. 21, 1995),
60 FR 67385, corrected, Securities Exchange Act
Release No. 36629A, International Series Release
No. 909A (Jan. 4, 1996), 61 FR 744 (Jan. 10, 1996)
(approving File No. SR–NYSE–95–29, Series 37 and
Series 38); Securities Exchange Act Release No.
36825 (Feb. 9, 1996), 61 FR 6052 (approving File
No. SR–NASD–96–04, Series 37 and 38); Securities
Exchange Act Release No. 38274 (February 12,
1997), 62 FR 7485 (approving File No. SR–CBOE–
97–04, Series 17, 37 and 38); Securities Exchange
Act Release No. 38921 (August 11, 1997), 62 FR
44023 (approving File No. SR–AMEX–97–26, Series
17, 37 and 38); see also NASD Rule 1032(a)(2)(B)
and (C); NASDAQ Rule 1032(a)(2)(B) and (C);
Securities Exchange Act Release No. 59292 (January
23, 2009), 74 FR 5690 (January 30, 2009) (approving
File No. SR–BATS–2009–003).
PO 00000
Frm 00140
Fmt 4703
Sfmt 4703
The Series 17 version, the United
Kingdom—Limited General Securities
Registered Representative Examination,
is for U.K. registrants who have
successfully completed the basic exam
of the U.K. and who are in good
standing with the Financial Services
Authority (‘‘FSA’’). Essentially, this
modified Series 7 examination deletes
those substantive sections of the
standard Series 7 that overlap with the
FSA examination. The Series 17 is a 100
question examination, is 120 minutes in
duration, and deals with U.S. securities
laws, regulations, sales practices and
special products drawn from the
standard Series 7 examination.
The Series 37 version is for Canadian
registrants who have successfully
completed the basic core module of the
CSI Global Education (‘‘CSI’’, formerly
the Canadian Securities Institute)
program. The Series 38 version is for
Canadian registrants who, in addition to
having successfully completed the basic
core module of the CSI program, have
also successfully completed the
Canadian option and futures program.
Both the Series 37 and 38 share topics
and test questions with the parent Series
7 program but cover only subject matter
that is not covered, or not covered in
sufficient detail, on the Canadian
qualification examination. The Series 37
has 90 questions and is 150 minutes in
duration, while the Series 38, an
abbreviated version of the series 37, has
only 45 questions and is 75 minutes in
duration. Forty-five questions pertaining
to options from the series 37 were
omitted from the Series 38.
The Exchange wishes to give U.K. and
Canadian registered representatives the
same advantage they have at other
exchanges by eliminating duplicative
examinations. The Exchange believes
that acceptance of these examinations
will benefit both the Exchange and the
foreign representatives affected by the
proposal. Accordingly, pursuant to the
amended rules, as proposed, the
Exchange would approve the
examination modules for the U.K.
(Series 17) and Canada (Series 37/38) as
equivalent foreign examination
modules.4 The Exchange has added
Interpretation .05 to Rule 2.5 to define
4 The Exchange notes that the U.K. (Series 17) and
Canada (Series 37/38) represent foreign
examination modules that allow persons in good
standing with the securities regulators of their
respective countries to qualify as general securities
registered representatives (equivalent to Series 7
registrants) by successfully completing certain
modified general securities representative
examinations which were developed, along with
others for other foreign jurisdictions, by the New
York Stock Exchange (‘‘NYSE’’) more than 10 years
ago.
E:\FR\FM\16NON1.SGM
16NON1
]]>Agencies
[Federal Register Volume 75, Number 220 (Tuesday, November 16, 2010)]
[Notices]
[Pages 70048-70052]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-28691]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63275; File No. SR-NYSEArca-2010-100]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending the
Applicable Sections of Its Schedules of Fees and Charges for Exchange
Services for Both Its Equities and Options Platforms (the
``Schedules'') 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\
[[Page 70049]]
notice is hereby given that, on November 3, 2010, NYSE Arca, Inc. (the
``Exchange'' or ``NYSE Arca'') 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 the applicable sections of its
Schedules of Fees and Charges for Exchange Services for both its
equities and options platforms (the ``Schedules'') 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 Schedules 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 ETP Holder or Sponsored Participant who is authorized to obtain
access to the NYSE Arca Marketplace pursuant to NYSE Arca Equities
Rule 7.29 (see NYSE Arca Equities Rule 1.1(yy)), or any OTP Holder,
OTP Firm or Sponsored Participant that is authorized to obtain
access to OX pursuant to NYSE Arca Options Rule 6.2A (see NYSE Arca
Options Rule 6.1A(a)(19)).
\5\ The Commission has approved proposed rule filings submitted
by the Exchange's affiliates, the New York Stock Exchange LLC, and
NYSE Amex LLC (with respect to its equities business), 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.
---------------------------------------------------------------------------
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 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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------------------------
[[Page 70050]]
------------------------------------------------------------------------
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, Option 1 GB Bundle........ $25,000 initial
1 (2 LCN connections, 2 SFTI 10 GB Bundle....... charge plus
connections, and 2 optic $13,000 monthly
connections to outside access charge.
center). $50,000 initial
charge plus
$47,000 monthly
charge.
Bundled Network Access, Option 1 GB Bundle........ $26,000 initial
2 (2 LCN connections, 2 SFTI 10 GB Bundle....... charge plus
connections, 1 optic $16,000 monthly
connection to outside access charge.
center, and 1 optic connection $50,000 initial
in data center). charge plus
$54,250 monthly
charge.
Bundled Network Access, Option 1 GB Bundle........ $27,500 initial
3 (2 LCN Connections, 2 SFTI 10 GB Bundle....... charge plus
connections, and 2 optic $19,000 monthly
connections in data center). charge.
$50,000 initial
charge plus
$61,500 monthly
charge.
Data Center Fiber Cross Connect Cross connect $500 per unit
between a single initial charge
User's cabinets plus $500 monthly
within the data per 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 Arca holidays,
(Note: Hot Hands Service Monday to Friday,
allows Users to use on-site 9am to 5pm 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 5pm to 9am,
NYSE Arca
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. Arca holidays,
Monday to Friday,
9am to 5pm if NOT
scheduled at least
1 day in advance.
Hot Hands Service: Extended Applies Monday to $325 per hour.
Business Hours, Expedited. Friday 5pm to 9am,
NYSE Arca
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 Cable Engineer, furnish $100 per linear
Tray. and install 4'' H foot.
x 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.
Equipment Maintenance Call Hardware $100 per call.
Escalation. maintenance-break
fix services
available through
NYSE Arca
arrangement with
Delta Computer
Group.
Visitor Security Escort........ NYSE Arca 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-Non Network technician $200 per hour.
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.
[[Page 70051]]
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 Schedules 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) and 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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's affiliates,
the New York Stock Exchange LLC and NYSE Amex 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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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-NYSEArca-2010-100 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2010-100.
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 website
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-
NYSEArca-2010-100 and should be submitted on or before December 7,
2010.
[[Page 70052]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-28691 Filed 11-15-10; 8:45 am]
BILLING CODE 8011-01-P
