Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Clarifying Amendments to Direct Connectivity Services, 55995-55996 [2011-23114]
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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.11
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–23103 Filed 9–8–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65253; File No. SR–Phlx–
2011–121]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Regarding
Clarifying Amendments 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, NASDAQ OMX PHLX LLC
(the ‘‘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 Substance of
the Proposed Rule Change
The Exchange proposes clarifying
amendments to the Exchange’s Fee
Schedule regarding the Exchange’s
direct connectivity services. The text of
the proposed rule change is available on
the Exchange’s Web site at https://
nasdaqomxphlx.cchwallstreet.com/, at
the principal office of the Exchange, 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
11 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
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 purpose of this rule filing is to
relocate certain text in the Exchange’s
Fee Schedule for ease of reference and
to clarify the Fee Schedule regarding
direct connectivity to the Exchange. The
direct connectivity fees are currently
located in Section VI, entitled ‘‘Access
Service, Cancellation, Membership,
Regulatory and Other Fees.’’ The
Exchange proposes to relocate the fees
to a new Section XI and title that section
‘‘Direct Connectivity to Phlx.’’ The
Exchange’s proposal is the result of its
desire to prominently place language in
the Exchange’s Fee Schedule to make
transparent that the connectivity
services are provided by NASDAQ
Technology Services, LLC and to group
similar fees together. Such changes will
assist with easy identification of items
not serviced, and billed, by the
Exchange.
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–Phlx–2010–89 that it makes
available to both co-located and non-colocated 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 Phlx
to provide cabinet space and
middleware for those customers’ thirdparty 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 connectivity 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
3 See Securities Exchange Act Release No. 62639
(August 4, 2010), 75 FR 48391 (August 10, 2010)
(SR–Phlx–2010–89).
4 Id. at page 4 and page 8.
5 Id.
6 Id.
7 See Exchange Fee Schedule, Section X(b),
Connectivity.
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
55995
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 relocate
the direct connectivity fees, which are
provided by NASDAQ Technology
Services, LLC, within the Fee Schedule.
The Exchange proposes to remove the
direct connectivity fees from Section VI
of the Exchange’s Fee Schedule and
relocate the direct connectivity fees in a
new section—Section XI—of the Fee
Schedule. This administrative change
allows the grouping of all services
provided by NASDAQ Technology
Services, LLC to be in one location for
the convenience to the customers.
The Exchange also proposes to add
clarifying text to the new Section XI to
state that the direct connectivity
services are provided by NASDAQ
Technology Services, LLC. 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 that amending the
Exchange Fee Schedule to relocate the
fees for ease of reference within the Fee
Schedule as proposed will benefit all
market participants by codifying and
making transparent the source of the
direct connectivity services and
grouping the direct connectivity
services with similar services on the
Exchange’s Fee Schedule.
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 not
8 See Securities Exchange Act Release No. 64441
(May 9, 2011), 76 FR 28251 (May 16, 2011) (SR–
Phlx–2011–60).
9 15 U.S.C. 78f.
10 15 U.S.C. 78f(b)(5).
E:\FR\FM\09SEN1.SGM
09SEN1
55996
Federal Register / Vol. 76, No. 175 / Friday, September 9, 2011 / Notices
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 either
solicited or 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
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:
mstockstill on DSK4VPTVN1PROD with 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–Phlx–2011–121 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–Phlx-2011–121. 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–Phlx–
2011–121 and should be 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. 2011–23114 Filed 9–8–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65257; File No. SR–Phlx–
2011–123]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing of Proposed Rule Change
Relating to the Quarterly Trading
Requirements Applicable to Registered
Options Traders
September 2, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that on August
24, 2011, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) 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 Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
U.S.C. 78s(b)(3)(A)(i).
VerDate Mar<15>2010
16:58 Sep 08, 2011
Jkt 223001
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 purpose of the proposed rule
change is to strengthen the Exchange’s
quarterly trading requirement to
encourage liquidity-providing activity
by market makers on the Exchange. The
general term ‘‘market makers’’ on the
Exchange includes specialists and
ROTs. ROTs can be either Streaming
Quote Traders (‘‘SQTs’’), Remote SQTs
(‘‘RSQTs’’) or non-SQT ROTs. The
quarterly trading requirements apply to
two types of ROTs: SQTs and non-SQT
ROTs. Specialists and RSQTs are subject
to different requirements. By definition,
non-SQT ROTs do not ‘‘stream’’ quotes,
meaning send quotes electronically to
the Exchange; instead, pursuant to
Commentary .18 of Rule 1014, they
submit limit orders electronically and
respond to Floor Brokers verbally.
Currently, Rule 1014 contains two
quarterly trading requirements—in
person and in assigned. First,
12 17
1 15
11 15
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange, pursuant to Section
19(b)(1) of the Act 3 and Rule 19b–4
thereunder,4 proposes to amend
Commentary .01 of Rule 1014,
Obligations and Restrictions Applicable
to Specialists and Registered Options
Traders, to change the quarterly trading
requirements applicable to Registered
Options Traders, as described below.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nasdaqtrader.com/
micro.aspx?id=PHLXRulefilings, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
PO 00000
Frm 00130
Fmt 4703
Sfmt 4703
3 15
4 17
E:\FR\FM\09SEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
09SEN1
Agencies
[Federal Register Volume 76, Number 175 (Friday, September 9, 2011)]
[Notices]
[Pages 55995-55996]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-23114]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65253; File No. SR-Phlx-2011-121]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Regarding
Clarifying Amendments 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, NASDAQ OMX PHLX LLC (the ``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 clarifying amendments to the Exchange's Fee
Schedule regarding the Exchange's direct connectivity services. The
text of the proposed rule change is available on the Exchange's Web
site at https://nasdaqomxphlx.cchwallstreet.com/, at the principal
office of the Exchange, 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 purpose of this rule filing is to relocate certain text in the
Exchange's Fee Schedule for ease of reference and to clarify the Fee
Schedule regarding direct connectivity to the Exchange. The direct
connectivity fees are currently located in Section VI, entitled
``Access Service, Cancellation, Membership, Regulatory and Other
Fees.'' The Exchange proposes to relocate the fees to a new Section XI
and title that section ``Direct Connectivity to Phlx.'' The Exchange's
proposal is the result of its desire to prominently place language in
the Exchange's Fee Schedule to make transparent that the connectivity
services are provided by NASDAQ Technology Services, LLC and to group
similar fees together. Such changes will assist with easy
identification of items not serviced, and billed, by the Exchange.
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-Phlx-2010-89 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 Phlx 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 connectivity
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. 62639 (August 4,
2010), 75 FR 48391 (August 10, 2010) (SR-Phlx-2010-89).
\4\ Id. at page 4 and page 8.
\5\ Id.
\6\ Id.
\7\ See Exchange Fee Schedule, Section X(b), Connectivity.
---------------------------------------------------------------------------
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. 64441 (May 9, 2011),
76 FR 28251 (May 16, 2011) (SR-Phlx-2011-60).
---------------------------------------------------------------------------
The Exchange now seeks to relocate the direct connectivity fees,
which are provided by NASDAQ Technology Services, LLC, within the Fee
Schedule. The Exchange proposes to remove the direct connectivity fees
from Section VI of the Exchange's Fee Schedule and relocate the direct
connectivity fees in a new section--Section XI--of the Fee Schedule.
This administrative change allows the grouping of all services provided
by NASDAQ Technology Services, LLC to be in one location for the
convenience to the customers.
The Exchange also proposes to add clarifying text to the new
Section XI to state that the direct connectivity services are provided
by NASDAQ Technology Services, LLC. 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
that amending the Exchange Fee Schedule to relocate the fees for ease
of reference within the Fee Schedule as proposed will benefit all
market participants by codifying and making transparent the source of
the direct connectivity services and grouping the direct connectivity
services with similar services on the Exchange's Fee Schedule.
---------------------------------------------------------------------------
\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
impose any burden on competition not
[[Page 55996]]
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 either solicited or 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 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-Phlx-2011-121 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-Phlx-2011-121. 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-
Phlx-2011-121 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. 2011-23114 Filed 9-8-11; 8:45 am]
BILLING CODE 8011-01-P