Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7034 Regarding Co-Location Fees for Additional Power and Cable Options, 38715-38717 [2011-16538]
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Federal Register / Vol. 76, No. 127 / Friday, July 1, 2011 / Notices
particular, the Commission finds that
the proposal is consistent with Section
6(b)(5) of the Act,20 which requires,
among other things, that the Exchange’s
rules be designed to prevent fraudulent
and manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Additionally, the Commission finds that
the proposal is consistent with Rules
610(d) 21and 612 22 of Regulation NMS.
The Commission believes that the
proposed order handling rule change
providing for the execution, under
certain circumstances, of certain NonDisplayed Orders and orders subject to
price sliding that are not executable at
their most aggressive prices should
serve to enhance the quality of
execution on the Exchange by
facilitating executions that would not
occur pursuant to the Exchange’s
current order handling process. In
addition to facilitating executions that
currently would not take place, the
proposed rule change will offer price
improvement to the orders executed
under the new order handling process.
The Commission believes that the new
order handling process should benefit
market participants by, among other
things, providing greater opportunities
for buy and sell orders to interact with
each other and potentially reducing
certain trading costs for market
participants. The Commission further
believes that any potential abuses are
mitigated by the Exchange’s addition of
Interpretation and Policy .01 to BYX
Rule 11.13 and its commitment to
monitor relevant trading on its market.
Additionally, the Commission believes
that this proposed order handling
process is consistent with Rule 612 of
Regulation NMS because any executions
in an increment smaller than $0.01 are
the result of bids, offers or orders that
are priced in increments at least equal
to $0.01.23 With regard to the proposed
rule change clarifying that an order
20 15
U.S.C. 78f(b)(5).
Rule 610(d) of Regulation NMS requires
policies and procedures to avoid the display of
quotations that lock or cross protected quotations.
17 CFR 242.610(d).
22 SEC Rule 612 of Regulation NMS states that no
national securities exchange, national securities
association, alternative trading system, vendor, or
broker or dealer shall display, rank, or accept from
any person a bid or offer, an order, or an indication
of interest in any NMS stock priced in an increment
smaller than $0.01 if that bid or offer, order, or
indication of interest is priced equal to or greater
than $1.00 per share. 17 CFR 242.612.
23 See Rule 612 of Regulation NMS. 17 CFR
242.612.
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21 SEC
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18:54 Jun 30, 2011
Jkt 223001
subject to NMS price sliding pursuant to
BYX Rule 11.9 can be ranked at the
same price as an order displayed on the
other side of the BATS Book, the
Commission believes that such
clarification is consistent with Rule
610(d) of Regulation NMS because the
proposed rule change would not result
in the display of a locking quotation.24
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,25 that the
proposed rule change (SR–BYX–2011–
009) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–16550 Filed 6–30–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64744; File No. SR–
NASDAQ–2011–086]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
7034 Regarding Co-Location Fees for
Additional Power and Cable Options
June 24, 2011.
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 June 23,
2011, The NASDAQ Stock Market LLC
(‘‘NASDAQ’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend
Rule 7034 regarding co-location fees for
additional power and cable options. The
text of the proposed rule change is
available at https://nasdaq.
cchwallstreet.com/, at the Exchange’s
24 See Rule 610(d) of Regulation NMS. 17 CFR
242.610(d).
25 15 U.S.C. 78s(b)(2).
26 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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Fmt 4703
Sfmt 4703
38715
principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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
Exchange 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
The Exchange proposes to amend
Rule 7034 regarding co-location fees for
additional power and cable options. The
Exchange proposes to offer a new choice
of a pair of power receptacles (60 amps
208 volts), which would provide enough
power for a high density cabinet. The
proposed fee for installation of the pair
of the 60-amp 208-volt power
receptacles is $3,000. There are ten
other power choices already available
and this new receptacle choice is being
offered as more clients are requesting
higher power density cabinets.
Additionally, the Exchange proposes to
offer a new choice of patch cable,
twinaxial (otherwise known as
‘‘Twinax’’) cables, in lengths of one
meter to five meters. The proposed fee
for the Twinax cables is $34 + $10 per
meter. The Exchange is making the
Twinax cables available as a
convenience to customers, and notes
that use of Exchange-provided patch
cords is completely voluntary, and that
such patch cords may be freely obtained
from other vendors for use by customers
in the datacenter.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,3
in general, and with Section 6(b)(4) of
the Act,4 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among members and issuers and other
persons using any facility or system
3 15
4 15
E:\FR\FM\01JYN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
01JYN1
mstockstill on DSK4VPTVN1PROD with NOTICES6
38716
Federal Register / Vol. 76, No. 127 / Friday, July 1, 2011 / Notices
which the Exchange operates or
controls.
The Exchange operates in a highly
competitive market, in which exchanges
offer co-location services as a means to
facilitate the trading activities of those
members who believe that co-location
enhances the efficiency of their trading.
Accordingly, fees charged for colocation services are constrained by the
active competition for the order flow of
such members. If a particular exchange
charges excessive fees for co-location
services, affected members will opt to
terminate their co-location arrangements
with that exchange, and adopt a
possible range of alternative strategies,
including co-locating with a different
exchange, placing their servers in a
physically proximate location outside
the exchange’s data center, or pursuing
trading strategies not dependent upon
co-location. Accordingly, the exchange
charging excessive fees would stand to
lose not only co-location revenues but
also revenues associated with the
execution of orders routed to it by
affected members. The Exchange
believes that this competitive dynamic
imposes powerful restraints on the
ability of any exchange to charge
unreasonable fees for co-location
services.
It should be noted, however, that the
costs associated with operating a colocation facility, like the costs of
operating the electronic trading facility
with which the co-location facility is
associated, are primarily fixed costs,
and in the case of co-location are
primarily the costs of renting or owning
data center space and retaining a staff of
technical personnel. Accordingly, the
Exchange establishes a range of colocation fees with the goal of covering
these fixed costs, covering less
significant marginal costs, such as the
cost of electricity, and providing the
Exchange a profit to the extent the costs
are covered. Because fixed costs must be
allocated among all customers, the
Exchange’s fee schedule reflects an
effort to assess a range of relatively low
fees for specific aspects of co-location
services, which, in the aggregate, will
allow the Exchange to cover its costs
and to the extent the costs are covered,
allow the Exchange to earn a profit.
In the case of the proposed fees for a
pair of the 60-amp power receptacles
and the Twinax cables, the proposed
fees cover the marginal costs of
establishing and maintaining the
electrical installation, the costs of
obtaining the cable equipment from the
Exchange’s vendors, and allow the
Exchange to earn a profit; to the extent
the costs are covered. Accordingly, the
Exchange believes that it is reasonable
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18:54 Jun 30, 2011
Jkt 223001
to use fees assessed on this basis as a
means to recoup a share of fixed costs
associated with the proposed power and
cable options, provide a convenience for
the customers and to the extent the costs
are covered, provide a profit to the
Exchange.
The Exchange also notes that the fees
charged by the Exchange are generally
lower or comparable to prices charged
by other exchanges or unregulated
vendors for similar services. For
instance, NYSE Arca, Inc. charges for
the power installation by including it in
a higher install for the co-location
cabinet.5 With respect to the proposed
fees for Twinax cables, the fees charged
by the Exchange are generally lower or
comparable to prices charged by
unregulated vendors for similar
products. See https://www.google.com/
products/catalog?hl=en&biw=1259&
bih=813&q=Twinax+cable&
um=1&ie=UTF-8&tbm=shop&
cid=15023972358025904938&
sa=X&ei=8tDfTaOwIcHagQeVu6DUCg&
ved=0CDcQ8wIwAw#.
Furthermore, because the proposed
services are available to all members
through optional co-location services,
the Exchange’s fees for proposed colocation services are reasonable and
equitably allocated across the
membership. All co-location customers
are offered the same range of products
and services and there is no
differentiation among customers with
regard to the fees charged for a
particular product, service, or piece of
equipment.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.6 At any time
within 60 days of the filing of the
proposed rule change, the Commission
summarily may temporarily suspend
5 See Release No. 63275 (November 8, 2010) at
page 4, 75 FR 70048 (November 16, 2010) (SR–
NYSEArca–2010–100).
6 15 U.S.C. 78s(b)(3)(a)(ii) [sic].
PO 00000
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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. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule should be
approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2011–086 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2011–086. 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 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
E:\FR\FM\01JYN1.SGM
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Federal Register / Vol. 76, No. 127 / Friday, July 1, 2011 / Notices
submissions should refer to File
Number SR–NASDAQ–2011–086, and
should be submitted on or before July
22, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–16538 Filed 6–30–11; 8:45 am]
All other information in the original
declaration remains unchanged.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Joseph P. Loddo,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. 2011–16529 Filed 6–30–11; 8:45 am]
SMALL BUSINESS ADMINISTRATION
U.S. SMALL BUSINESS
ADMINISTRATION
[Disaster Declaration #12586 and #12587]
[Disaster Declaration #12560 and #12561]
North Dakota Disaster Number ND–
00025
U.S. Small Business
Administration.
ACTION: Amendment 8.
mstockstill on DSK4VPTVN1PROD with NOTICES6
AGENCY:
AGENCY: U.S. Small Business
Administration.
ACTION:
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for the State of Arkansas
(FEMA–1975–DR), dated 05/02/2011.
Incident: Severe Storms, Tornadoes,
and Associated Flooding.
Incident Period: 04/14/2011 through
06/03/2011.
Effective Date: 06/22/2011.
Physical Loan Application Deadline
Date: 08/01/2011.
EIDL Loan Application Deadline Date:
02/02/2012.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the Presidential disaster declaration
for the State of ARKANSAS, dated 05/
02/2011 is hereby amended to include
the following areas as adversely affected
by the disaster:
Primary Counties: (Physical Damage
and Economic Injury Loans): Desha,
Carroll, Chicot, Clark, Crawford,
Dallas, Hot Spring.
Contiguous Counties: (Economic Injury
Loans Only):
Arkansas: Ashley, Calhoun, Nevada,
Ouachita, Sebastian.
Louisiana: East Carroll, Morehouse,
West Carroll.
Mississippi: Issaquena, Washington.
Missouri: Stone.
Oklahoma: Sequoyah.
Amendment 3.
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of North Dakota (FEMA–1981–
DR), dated 05/10/2011.
Incident: Flooding.
Incident Period: 02/14/2011 and
continuing.
Effective Date: 06/23/2011.
Physical Loan Application Deadline
Date: 07/11/2011.
Economic Injury (EIDL) Loan
Application Deadline Date: 02/10/2012.
Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT: A
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of North
Dakota, dated 05/10/2011, is hereby
amended to include the following areas
as adversely affected by the disaster.
SUPPLEMENTARY INFORMATION:
Primary Counties: Mckenzie.
All other information in the original
declaration remains unchanged.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Joseph P. Loddo,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. 2011–16530 Filed 6–30–11; 8:45 am]
7 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
18:54 Jun 30, 2011
BILLING CODE 8025–01–P
Jkt 223001
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #12530 and #12531]
North Carolina Disaster Number NC–
00033
AGENCY: U.S. Small Business
Administration.
ACTION: Amendment 4.
BILLING CODE 8025–01–P
BILLING CODE 8011–01–P
Arkansas Disaster Number AR–00048
38717
PO 00000
Frm 00119
Fmt 4703
Sfmt 4703
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for the State of North Carolina
(FEMA–1969–DR), dated 04/19/2011.
Incident: Severe Storms, Tornadoes,
and Flooding.
Incident Period: 04/16/2011.
Effective Date: 06/22/2011.
Physical Loan Application Deadline
Date: 07/05/2011.
EIDL Loan Application Deadline Date:
01/20/2012.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the Presidential disaster declaration
for the State of North Carolina, dated
04/19/2011 is hereby amended to
include the following areas as adversely
affected by the disaster:
Primary Counties: (Physical Damage and
Economic Injury Loans): Alamance.
Contiguous Counties: (Economic Injury
Loans Only):
North Carolina: Caswell, Guilford,
Orange, Randolph, Rockingham.
All other information in the original
declaration remains unchanged.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Joseph P. Loddo,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. 2011–16531 Filed 6–30–11; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
Interest Rates
The Small Business Administration
publishes an interest rate called the
optional ‘‘peg’’ rate (13 CFR 120.214) on
a quarterly basis. This rate is a weighted
average cost of money to the
government for maturities similar to the
average SBA direct loan. This rate may
be used as a base rate for guaranteed
fluctuating interest rate SBA loans. This
E:\FR\FM\01JYN1.SGM
01JYN1
]]>Agencies
[Federal Register Volume 76, Number 127 (Friday, July 1, 2011)]
[Notices]
[Pages 38715-38717]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16538]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64744; File No. SR-NASDAQ-2011-086]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 7034 Regarding Co-Location Fees for Additional Power and
Cable Options
June 24, 2011.
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 June 23, 2011, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange proposes to amend Rule 7034 regarding co-location fees
for additional power and cable options. The text of the proposed rule
change is available at https://nasdaq.cchwallstreet.com/, at the
Exchange's principal office, and at the Commission's Public Reference
Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange 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 Exchange 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
The Exchange proposes to amend Rule 7034 regarding co-location fees
for additional power and cable options. The Exchange proposes to offer
a new choice of a pair of power receptacles (60 amps 208 volts), which
would provide enough power for a high density cabinet. The proposed fee
for installation of the pair of the 60-amp 208-volt power receptacles
is $3,000. There are ten other power choices already available and this
new receptacle choice is being offered as more clients are requesting
higher power density cabinets. Additionally, the Exchange proposes to
offer a new choice of patch cable, twinaxial (otherwise known as
``Twinax'') cables, in lengths of one meter to five meters. The
proposed fee for the Twinax cables is $34 + $10 per meter. The Exchange
is making the Twinax cables available as a convenience to customers,
and notes that use of Exchange-provided patch cords is completely
voluntary, and that such patch cords may be freely obtained from other
vendors for use by customers in the datacenter.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\3\ in general, and with
Section 6(b)(4) of the Act,\4\ in particular, in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility or
system
[[Page 38716]]
which the Exchange operates or controls.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f.
\4\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange operates in a highly competitive market, in which
exchanges offer co-location services as a means to facilitate the
trading activities of those members who believe that co-location
enhances the efficiency of their trading. Accordingly, fees charged for
co-location services are constrained by the active competition for the
order flow of such members. If a particular exchange charges excessive
fees for co-location services, affected members will opt to terminate
their co-location arrangements with that exchange, and adopt a possible
range of alternative strategies, including co-locating with a different
exchange, placing their servers in a physically proximate location
outside the exchange's data center, or pursuing trading strategies not
dependent upon co-location. Accordingly, the exchange charging
excessive fees would stand to lose not only co-location revenues but
also revenues associated with the execution of orders routed to it by
affected members. The Exchange believes that this competitive dynamic
imposes powerful restraints on the ability of any exchange to charge
unreasonable fees for co-location services.
It should be noted, however, that the costs associated with
operating a co-location facility, like the costs of operating the
electronic trading facility with which the co-location facility is
associated, are primarily fixed costs, and in the case of co-location
are primarily the costs of renting or owning data center space and
retaining a staff of technical personnel. Accordingly, the Exchange
establishes a range of co-location fees with the goal of covering these
fixed costs, covering less significant marginal costs, such as the cost
of electricity, and providing the Exchange a profit to the extent the
costs are covered. Because fixed costs must be allocated among all
customers, the Exchange's fee schedule reflects an effort to assess a
range of relatively low fees for specific aspects of co-location
services, which, in the aggregate, will allow the Exchange to cover its
costs and to the extent the costs are covered, allow the Exchange to
earn a profit.
In the case of the proposed fees for a pair of the 60-amp power
receptacles and the Twinax cables, the proposed fees cover the marginal
costs of establishing and maintaining the electrical installation, the
costs of obtaining the cable equipment from the Exchange's vendors, and
allow the Exchange to earn a profit; to the extent the costs are
covered. Accordingly, the Exchange believes that it is reasonable to
use fees assessed on this basis as a means to recoup a share of fixed
costs associated with the proposed power and cable options, provide a
convenience for the customers and to the extent the costs are covered,
provide a profit to the Exchange.
The Exchange also notes that the fees charged by the Exchange are
generally lower or comparable to prices charged by other exchanges or
unregulated vendors for similar services. For instance, NYSE Arca, Inc.
charges for the power installation by including it in a higher install
for the co-location cabinet.\5\ With respect to the proposed fees for
Twinax cables, the fees charged by the Exchange are generally lower or
comparable to prices charged by unregulated vendors for similar
products. See https://www.google.com/products/
catalog?hl=en&biw=1259&bih=813&q=Twinax+cable&um=1&ie=UTF-
8&tbm=shop&cid=15023972358025904938&sa=X&ei=8tDfTaOwIcHagQeVu6DUCg&ved=0
CDcQ8wIwAw#.
---------------------------------------------------------------------------
\5\ See Release No. 63275 (November 8, 2010) at page 4, 75 FR
70048 (November 16, 2010) (SR-NYSEArca-2010-100).
---------------------------------------------------------------------------
Furthermore, because the proposed services are available to all
members through optional co-location services, the Exchange's fees for
proposed co-location services are reasonable and equitably allocated
across the membership. All co-location customers are offered the same
range of products and services and there is no differentiation among
customers with regard to the fees charged for a particular product,
service, or piece of equipment.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\6\ 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. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
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\6\ 15 U.S.C. 78s(b)(3)(a)(ii) [sic].
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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-NASDAQ-2011-086 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2011-086. 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 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
[[Page 38717]]
submissions should refer to File Number SR-NASDAQ-2011-086, and should
be submitted on or before July 22, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-16538 Filed 6-30-11; 8:45 am]
BILLING CODE 8011-01-P
