Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7034 To Extend the Waiver of Certain Co-Location Installation Fees for an Additional Month, 42152-42153 [2011-17954]

Download as PDF 42152 Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Notices 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–NYSE–2011–32 on the subject line. Paper Comments srobinson on DSK4SPTVN1PROD with NOTICES • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64858; File No. SR– NASDAQ–2011–094] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7034 To Extend the Waiver of Certain Co-Location Installation Fees for an Additional Month July 12, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 All submissions should refer to File notice is hereby given that on July 1, Number SR–NYSE–2011–32. This file 2011, The NASDAQ Stock Market LLC number should be included on the (‘‘NASDAQ’’ or ‘‘Exchange’’) filed with subject line if e-mail is used. To help the the Securities and Exchange Commission process and review your Commission (‘‘Commission’’) the comments more efficiently, please use proposed rule change as described in only one method. The Commission will Items I, II, and III below, which Items post all comments on the Commission’s have been prepared by the Exchange. Internet Web site (https://www.sec.gov/ The Commission is publishing this rules/sro.shtml). Copies of the notice to solicit comments on the submission, all subsequent proposed rule change from interested amendments, all written statements persons. with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the proposed rule change between the The Exchange proposes to amend Commission and any person, other than Rule 7034 to extend the waiver of fees those that may be withheld from the assessed for the installation of certain public in accordance with the co-location services for an additional provisions of 5 U.S.C. 552, will be month. The text of the proposed rule available for Web site viewing and change is available at https:// printing in the Commission’s Public nasdaq.cchwallstreet.com/, at the Reference Room on official business Exchange’s principal office, at the days between the hours of 10 a.m. and Commission’s Public Reference Room, 3 p.m. Copies of such filing also will be and at the Commission’s Web site at available for inspection and copying at the principal office of the Exchange. All https://www.sec.gov. comments received will be posted II. Self-Regulatory Organization’s without change; the Commission does Statement of the Purpose of, and not edit personal identifying Statutory Basis for, the Proposed Rule information from submissions. You Change should submit only information that In its filing with the Commission, the you wish to make available publicly. All Exchange included statements submissions should refer to File Number SR–NYSE–2011–32 and should concerning the purpose of and basis for the proposed rule change and discussed be submitted on or before August 8, any comments it received on the 2011. proposed rule change. The text of these For the Commission, by the Division of statements may be examined at the Trading and Markets, pursuant to delegated places specified in Item IV below. The 17 authority. Exchange has prepared summaries, set Cathy H. Ahn, forth in Sections A, B, and C below, of Deputy Secretary. the most significant aspects of such [FR Doc. 2011–17955 Filed 7–15–11; 8:45 am] statements. BILLING CODE 8011–01–P 1 15 17 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:43 Jul 15, 2011 2 17 Jkt 223001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00041 Fmt 4703 Sfmt 4703 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 to extend for a one-month period the initial waiver of fees assessed for the installation of certain co-location services, in order to provide its existing and potential new customers a full opportunity to avail themselves of the waiver. The initial waiver of fees for the installation of certain co-location services commenced June 1, 2011 and ended June 30, 2011.3 Since the initial waiver, there has been significant demand for the select co-location services by existing customers, as well as new customers. However, the Exchange has become aware that a significant number of new and existing customers are unable to complete their requests by June 30, 2011 due to the need for additional time to order new equipment to be housed in the cabinets, or, to complete the internal approval process for the ongoing monthly fees that will be incurred as part of the service. Therefore, the Exchange proposes to extend the waiver of fees until July 29, 2011 (the ‘‘extended period’’). Beginning August 1, 2011, the above-referenced waived fees will revert to the amount in effect prior to June 1, 2011. The Exchange proposes to extend the waiver of the following installation fees during the extended period: 1. Rule 7034(a): installation fees for new cabinets with power. 2. Rule 7034(b): installation fees for external telecommunication, intercabinet connectivity, connectivity to NASDAQ and market data connectivity related to an order for a new cabinet. However, the one-time telecommunication connectivity expedite fee 4 will not be waived during the extended period. 3. Rule 7034(c): installation fees for cabinet power related to an order for a new cabinet. 4. Rule 7034(d): installation fees for cooling fans, perforated floor tiles and fiber downspouts, which are necessary items to support a higher density cabinet and fiber cross connects, relating to an order for a new cabinet placed during the extended period. Installation fees for other items that are 3 See Securities Exchange Act Release No. 64630 (June 8, 2011), 76 FR 34783 (June 14, 2011) (SR– NASDAQ–2011–074). 4 The one-time telecommunication connectivity expedite fee is a fee for an optional request to complete the installation in a shorter time period than the install timeframes. E:\FR\FM\18JYN1.SGM 18JYN1 Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Notices 42153 customized or options are not waived during the extended period. The following requirements must be met to receive the waiver of the installation fee: 1. The new cabinet order must be placed in the CoLo Console 5 during the extended period; and 2. The new cabinet must be live within 90 days of the date of the order.6 Finally, extending the program for a month will ensure that several customers that have expressed an interest in expanding their data center presence but that have not yet been able to do so will have the opportunity to benefit from the waiver. Paper Comments B. Self-Regulatory Organization’s Statement on Burden on Competition 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,7 in general, and with Section 6(b)(4) of the Act,8 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 which the Exchange operates or controls. The proposed fee waiver is reasonable because it provides an opportunity for all new customers and all existing customer [sic] that desire additional cabinet space to obtain that space without incurring fees. This decrease in fees provided a savings of over $100,000 to customers that took advantage of the fee waiver during the month of June. In addition, the Exchange believes that the fee waiver results in an equitable allocation of fees among the members of the Exchange. Specifically, the Exchange believes that by encouraging new and existing colocation customers to increase their presence in the Exchange’s data center, the Exchange will generate additional order execution and data consumption activity. If it materializes, such an increase in activity would assist the Exchange in controlling the charges it imposes on members generally for their use of a variety of Exchange services. The waiver of fees is also equitably allocated since all existing and potential co-location customers may avail themselves of the waiver during the period of availability. Notably, during June 2011, the preponderance of customers availing themselves of the waiver were existing, rather than new customers, demonstrating the benefit of the program to a variety of members. 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. The Exchange believes that the extension of the waiver of fees for certain co-location services is equitable because all customers may avail themselves of the waiver. All submissions should refer to File Number SR–NASDAQ–2011–94. 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 the 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–NASDAQ–2011–094 and should be submitted on or before August 8, 2011. srobinson on DSK4SPTVN1PROD with NOTICES 5 The ‘‘CoLo Console’’ is web-based ordering tool that is utilized by NASDAQ to place co-location orders. 6 Exchange staff generally installs and makes operational a new cabinet within 90 days of the date of the order (the ‘‘live date’’). The estimated live date is communicated to the customer. However, there may be instances where the customer desires the live date to be later than the estimated live date provided by Exchange staff. In such instances, the live date cannot extend beyond 90 days of the date of the order. 7 15 U.S.C. 78f. 8 15 U.S.C. 78f(b)(4). VerDate Mar<15>2010 16:43 Jul 15, 2011 Jkt 223001 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.9 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. 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: • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–17954 Filed 7–15–11; 8:45 am] BILLING CODE 8011–01–P 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–2011–094 on the subject line. PO 00000 9 15 U.S.C. 78s(b)(3)(A)(ii). Frm 00042 Fmt 4703 Sfmt 9990 10 17 E:\FR\FM\18JYN1.SGM CFR 200.30–3(a)(12). 18JYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 76, Number 137 (Monday, July 18, 2011)]
[Notices]
[Pages 42152-42153]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-17954]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64858; File No. SR-NASDAQ-2011-094]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change To Amend Rule 7034 To Extend the 
Waiver of Certain Co-Location Installation Fees for an Additional Month

July 12, 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 July 1, 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 Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 7034 to extend the waiver of 
fees assessed for the installation of certain co-location services for 
an additional month. The text of the proposed rule change is available 
at https://nasdaq.cchwallstreet.com/, at the Exchange's principal 
office, at the Commission's Public Reference Room, and at the 
Commission's Web site at https://www.sec.gov.

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 to extend for a one-month 
period the initial waiver of fees assessed for the installation of 
certain co-location services, in order to provide its existing and 
potential new customers a full opportunity to avail themselves of the 
waiver. The initial waiver of fees for the installation of certain co-
location services commenced June 1, 2011 and ended June 30, 2011.\3\ 
Since the initial waiver, there has been significant demand for the 
select co-location services by existing customers, as well as new 
customers. However, the Exchange has become aware that a significant 
number of new and existing customers are unable to complete their 
requests by June 30, 2011 due to the need for additional time to order 
new equipment to be housed in the cabinets, or, to complete the 
internal approval process for the ongoing monthly fees that will be 
incurred as part of the service. Therefore, the Exchange proposes to 
extend the waiver of fees until July 29, 2011 (the ``extended 
period''). Beginning August 1, 2011, the above-referenced waived fees 
will revert to the amount in effect prior to June 1, 2011. The Exchange 
proposes to extend the waiver of the following installation fees during 
the extended period:
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 64630 (June 8, 
2011), 76 FR 34783 (June 14, 2011) (SR-NASDAQ-2011-074).
---------------------------------------------------------------------------

    1. Rule 7034(a): installation fees for new cabinets with power.
    2. Rule 7034(b): installation fees for external telecommunication, 
inter-cabinet connectivity, connectivity to NASDAQ and market data 
connectivity related to an order for a new cabinet. However, the one-
time telecommunication connectivity expedite fee \4\ will not be waived 
during the extended period.
---------------------------------------------------------------------------

    \4\ The one-time telecommunication connectivity expedite fee is 
a fee for an optional request to complete the installation in a 
shorter time period than the install timeframes.
---------------------------------------------------------------------------

    3. Rule 7034(c): installation fees for cabinet power related to an 
order for a new cabinet.
    4. Rule 7034(d): installation fees for cooling fans, perforated 
floor tiles and fiber downspouts, which are necessary items to support 
a higher density cabinet and fiber cross connects, relating to an order 
for a new cabinet placed during the extended period. Installation fees 
for other items that are

[[Page 42153]]

customized or options are not waived during the extended period.
    The following requirements must be met to receive the waiver of the 
installation fee:
    1. The new cabinet order must be placed in the CoLo Console \5\ 
during the extended period; and
---------------------------------------------------------------------------

    \5\ The ``CoLo Console'' is web-based ordering tool that is 
utilized by NASDAQ to place co-location orders.
---------------------------------------------------------------------------

    2. The new cabinet must be live within 90 days of the date of the 
order.\6\
---------------------------------------------------------------------------

    \6\ Exchange staff generally installs and makes operational a 
new cabinet within 90 days of the date of the order (the ``live 
date''). The estimated live date is communicated to the customer. 
However, there may be instances where the customer desires the live 
date to be later than the estimated live date provided by Exchange 
staff. In such instances, the live date cannot extend beyond 90 days 
of the date of the order.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\7\ in general, and with 
Section 6(b)(4) of the Act,\8\ 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 which the Exchange operates or controls. The proposed fee waiver 
is reasonable because it provides an opportunity for all new customers 
and all existing customer [sic] that desire additional cabinet space to 
obtain that space without incurring fees. This decrease in fees 
provided a savings of over $100,000 to customers that took advantage of 
the fee waiver during the month of June. In addition, the Exchange 
believes that the fee waiver results in an equitable allocation of fees 
among the members of the Exchange. Specifically, the Exchange believes 
that by encouraging new and existing co-location customers to increase 
their presence in the Exchange's data center, the Exchange will 
generate additional order execution and data consumption activity. If 
it materializes, such an increase in activity would assist the Exchange 
in controlling the charges it imposes on members generally for their 
use of a variety of Exchange services. The waiver of fees is also 
equitably allocated since all existing and potential co-location 
customers may avail themselves of the waiver during the period of 
availability. Notably, during June 2011, the preponderance of customers 
availing themselves of the waiver were existing, rather than new 
customers, demonstrating the benefit of the program to a variety of 
members. Finally, extending the program for a month will ensure that 
several customers that have expressed an interest in expanding their 
data center presence but that have not yet been able to do so will have 
the opportunity to benefit from the waiver.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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. The 
Exchange believes that the extension of the waiver of fees for certain 
co-location services is equitable because all customers may avail 
themselves of the waiver.

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.\9\ 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

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-2011-094 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-2011-94. 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 the 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-NASDAQ-2011-094 and 
should be submitted on or before August 8, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-17954 Filed 7-15-11; 8:45 am]
BILLING CODE 8011-01-P

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