Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding a Clarifying Amendment To Direct Connectivity Services, 55988-55989 [2011-23113]
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55988
Federal Register / Vol. 76, No. 175 / Friday, September 9, 2011 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary .
[FR Doc. 2011–23112 Filed 9–8–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65252; File No. SR–
NASDAQ–2011–119]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Regarding a
Clarifying Amendment To Direct
Connectivity Services
September 2, 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 August
31, 2011, The NASDAQ Stock Market
LLC (the ‘‘Exchange’’ or ‘‘NASDAQ’’)
filed with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III, below, which Items
have been prepared by NASDAQ. 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 a clarifying
amendment to Exchange Rule 7051
regarding the Exchange’s direct
connectivity services. 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
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.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
16:58 Sep 08, 2011
Jkt 223001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this rule filing is to
amend Rule 7051 entitled ‘‘Direct
Connectivity to Nasdaq’’ to clarify the
Exchange’s direct connectivity services.
Currently, the Exchange assesses fees for
direct 10Gb circuit connections, and
fees for direct circuit connections
capable of supporting up to 1Gb, for
customers who are not co-located at the
Exchange’s datacenter.3 The Exchange
noted in SR–NASDAQ–2010–077 that it
makes available to both co-located and
non-co-located customers direct
connections capable of supporting up to
1Gb, with per connection monthly fees
of $500 for co-located customers and
$1000 for non co-located customers.4
Monthly fees are higher for non colocated customers because direct
connection requires the Exchange to
provide cabinet space and middleware
for those customers’ third-party vendors
to connect to the datacenter and,
ultimately, to the trading system.5 The
Exchange also assesses an optional
installation fee of $925 if the customer
chooses to use an on-site router
(collectively ‘‘Direct Connectivity
Fees’’).6 The Exchange provides direct
connect services and assesses fees
through NASDAQ Technology Services,
LLC, as it does with similar co-location
services.7
Subsequently, the Exchange amended
these Direct Connectivity Fees to
establish pricing for customers who are
not co-located in the Exchange’s data
center, but require shared cabinet space
and power for optional routers,
switches, or modems to support their
direct circuit connections. The
Exchange assesses customers who are
not co-located in the Exchange’s data
center monthly fees for space based on
a height unit of approximately two
inches high, commonly call a ‘‘U’’ space
and a maximum power of 125 Watts per
U space.8
The Exchange now seeks to add
clarifying text to Exchange Rule 7051 to
state that the direct connectivity
services are provided by NASDAQ
3 See Securities Exchange Act Release No. 62663
(August 9, 2010), 75 FR 49543 (August 13, 2010)
(SR–NASDAQ–2010–077).
4 Id. at page 5 and page 8.
5 Id.
6 Id.
7 See Exchange Rule 7034(b), Connectivity to
Nasdaq.
8 See Securities Exchange Act Release No. 64440
(May 9, 2011), 76 FR 28262 (May 16, 2011) (SR–
NASDAQ–2011–061).
PO 00000
Frm 00122
Fmt 4703
Sfmt 4703
Technology Services, LLC. The
Exchange’s proposal is the result of its
desire to prominently place language in
the Exchange Rule 7051 to make
transparent that the connectivity
services are provided by NASDAQ
Technology Services, LLC. Such change
will assist with easy identification of
items not serviced, and billed, by the
Exchange. This change merely codifies
the practice of the Exchange.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,9
in general, and furthers the objectives of
Section 6(b)(5) of the Act 10 in
particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest. The
Exchange believes the proposed
amendment to Exchange Rule 7051
makes transparent that the direct
connectivity services are provided by
NASDAQ Technology Services, LLC.
The Exchange believes that this
clarifying amendment will benefit all
market participants by making
transparent the source of the direct
connectivity services.
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.
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)(i) of the Act.11 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
9 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
11 15 U.S.C. 78s(b)(3)(a)(i).
10 15
E:\FR\FM\09SEN1.SGM
09SEN1
Federal Register / Vol. 76, No. 175 / Friday, September 9, 2011 / Notices
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–2011–119 on the
subject line.
mstockstill on DSK4VPTVN1PROD with NOTICES
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–2011–119. 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 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–2011–119 and should be
VerDate Mar<15>2010
16:58 Sep 08, 2011
Jkt 223001
submitted on or before September 30,
2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–23113 Filed 9–8–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65263; File No. SR–MSRB–
2011–09]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing of Proposed
Rule Change Consisting of Proposed
Interpretive Notice Concerning the
Application of MSRB Rule G–17, on
Conduct of Municipal Securities and
Municipal Advisory Activities, to
Underwriters of Municipal Securities
September 6, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on August 22, 2011, the Municipal
Securities Rulemaking Board (‘‘Board’’
or ‘‘MSRB’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the MSRB. 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 MSRB is filing with the SEC a
proposed rule change consisting of a
proposed interpretive notice (the
‘‘Notice’’) concerning the application of
MSRB Rule G–17 (on conduct of
municipal securities and municipal
advisory activities) to underwriters of
municipal securities. The MSRB
requests that the proposed rule change
be made effective 90 days after approval
by the Commission.
The text of the proposed rule change
is available on the MSRB’s Web site at
https://www.msrb.org/Rules-andInterpretations/SEC-Filings/2011Filings.aspx, at the MSRB’s principal
office, and at the Commission’s Public
Reference Room.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00123
Fmt 4703
Sfmt 4703
55989
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
MSRB 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 Board 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
(a) With the passage of the DoddFrank Act, the MSRB was expressly
directed by Congress to protect
municipal entities. Accordingly, the
MSRB is proposing to provide
additional interpretive guidance that
addresses how Rule G–17 applies to
dealers in the municipal securities
activities described below.
A more-detailed description of the
provisions of the Notice follows:
Representations to Issuers. The Notice
would provide that all representations
made by underwriters to issuers of
municipal securities in connection with
municipal securities underwritings (e.g.,
issue price certificates and responses to
requests for proposals), whether written
or oral, must be truthful and accurate
and may not misrepresent or omit
material facts.
Required Disclosures to Issuers. The
Notice would provide that an
underwriter of a negotiated issue that
recommends a complex municipal
securities transaction or product (e.g., a
variable rate demand obligation with a
swap) to an issuer has an obligation
under Rule G–17 to disclose all material
risks (e.g., in the case of a swap, market,
credit, operational, and liquidity risks),
characteristics, incentives, and conflicts
of interest (e.g., payments received from
a swap provider) regarding the
transaction or product. Such disclosure
would be required to be sufficient to
allow the issuer to assess the magnitude
of its potential exposure as a result of
the complex municipal securities
financing. In the case of routine
financing structures, underwriters
would be required to disclose the
material aspects of the structures if the
issuers did not otherwise have
knowledge or experience with respect to
such structures.
E:\FR\FM\09SEN1.SGM
09SEN1
]]>Agencies
[Federal Register Volume 76, Number 175 (Friday, September 9, 2011)]
[Notices]
[Pages 55988-55989]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-23113]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65252; File No. SR-NASDAQ-2011-119]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding a Clarifying Amendment To Direct Connectivity Services
September 2, 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 August 31, 2011, The NASDAQ Stock Market LLC (the ``Exchange''
or ``NASDAQ'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III, below, which Items have been prepared by NASDAQ. 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 a clarifying amendment to Exchange Rule 7051
regarding the Exchange's direct connectivity services. 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this rule filing is to amend Rule 7051 entitled
``Direct Connectivity to Nasdaq'' to clarify the Exchange's direct
connectivity services. Currently, the Exchange assesses fees for direct
10Gb circuit connections, and fees for direct circuit connections
capable of supporting up to 1Gb, for customers who are not co-located
at the Exchange's datacenter.\3\ The Exchange noted in SR-NASDAQ-2010-
077 that it makes available to both co-located and non-co-located
customers direct connections capable of supporting up to 1Gb, with per
connection monthly fees of $500 for co-located customers and $1000 for
non co-located customers.\4\ Monthly fees are higher for non co-located
customers because direct connection requires the Exchange to provide
cabinet space and middleware for those customers' third-party vendors
to connect to the datacenter and, ultimately, to the trading system.\5\
The Exchange also assesses an optional installation fee of $925 if the
customer chooses to use an on-site router (collectively ``Direct
Connectivity Fees'').\6\ The Exchange provides direct connect services
and assesses fees through NASDAQ Technology Services, LLC, as it does
with similar co-location services.\7\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 62663 (August 9,
2010), 75 FR 49543 (August 13, 2010) (SR-NASDAQ-2010-077).
\4\ Id. at page 5 and page 8.
\5\ Id.
\6\ Id.
\7\ See Exchange Rule 7034(b), Connectivity to Nasdaq.
---------------------------------------------------------------------------
Subsequently, the Exchange amended these Direct Connectivity Fees
to establish pricing for customers who are not co-located in the
Exchange's data center, but require shared cabinet space and power for
optional routers, switches, or modems to support their direct circuit
connections. The Exchange assesses customers who are not co-located in
the Exchange's data center monthly fees for space based on a height
unit of approximately two inches high, commonly call a ``U'' space and
a maximum power of 125 Watts per U space.\8\
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 64440 (May 9, 2011),
76 FR 28262 (May 16, 2011) (SR-NASDAQ-2011-061).
---------------------------------------------------------------------------
The Exchange now seeks to add clarifying text to Exchange Rule 7051
to state that the direct connectivity services are provided by NASDAQ
Technology Services, LLC. The Exchange's proposal is the result of its
desire to prominently place language in the Exchange Rule 7051 to make
transparent that the connectivity services are provided by NASDAQ
Technology Services, LLC. Such change will assist with easy
identification of items not serviced, and billed, by the Exchange. This
change merely codifies the practice of the Exchange.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\9\ in general, and
furthers the objectives of Section 6(b)(5) of the Act \10\ in
particular, in that it is designed to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and, in general
to protect investors and the public interest. The Exchange believes the
proposed amendment to Exchange Rule 7051 makes transparent that the
direct connectivity services are provided by NASDAQ Technology
Services, LLC. The Exchange believes that this clarifying amendment
will benefit all market participants by making transparent the source
of the direct connectivity services.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f.
\10\ 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
result in 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
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)(i) of the Act.\11\ 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
[[Page 55989]]
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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(a)(i).
---------------------------------------------------------------------------
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-2011-119 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-2011-119. 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 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-2011-119 and should be submitted on or before September 30,
2011.
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-23113 Filed 9-8-11; 8:45 am]
BILLING CODE 8011-01-P
