Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reduce Fees Assessed for Certain Co-Location Services, 3924-3925 [2013-00868]
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Federal Register / Vol. 78, No. 12 / Thursday, January 17, 2013 / Notices
For further information, please
contact the Office of the Secretary at
(202) 551–5400.
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
Dated: January 15, 2013.
Kevin M. O’Neill,
Deputy Secretary.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
[FR Doc. 2013–00975 Filed 1–15–13; 11:15 am]
BX proposes to reduce the fees
assessed under BX Rule 7034 for certain
co-location services. The Exchange is
proposing to implement the proposed
fee beginning on January 2, 2013. The
text of the proposed rule change is
available at https://
nasdaqomxbx.cchwallstreet.com, at
BX’s principal office, and at the
Commission’s Public Reference Room.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68625; File No. SR–BX–
2013–003]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Reduce
Fees Assessed for Certain Co-Location
Services
January 11, 2013.
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 January 2,
2013, NASDAQ OMX BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I, II, and III below,
which Items have been prepared by the
Exchange. The Commission is
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item III [sic]
below. The Exchange has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
parts of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend BX
Rule 7034 to reduce the monthly
recurring cabinet (‘‘MRC’’) fees assessed
for the installation of certain new colocation cabinets. The reduced MRC
fees will apply to new cabinets ordered
by customers using the CoLo Console 3
during the months of January and
February of 2013, provided that such
cabinets are fully operational by May
31, 2013. The reduced fee shall apply to
any cabinet that increases the number of
dedicated cabinets beyond the total
number dedicated to that customer as of
December 31, 2012 (‘‘Baseline
Number’’), for so long as the total
number of dedicated cabinets exceeds
that customer’s Baseline Number. The
reduced MRC fees will apply for a
period of 24 months from the date the
new cabinet becomes fully operational
under BX rules, provided that the
customer’s total number of cabinets
continues to exceed the Baseline
Number.
The Exchange proposes to reduce the
applicable fees as follows:
Current
ongoing
monthly fee
Cabinet type
Low Density .............................................................................................................................................................
Medium Density .......................................................................................................................................................
Medium-High Density ..............................................................................................................................................
High Density ............................................................................................................................................................
Super High Density ..................................................................................................................................................
New cabinets shall be assessed
standard installation fees.
BX proposes to reduce colocation
cabinet fees by different amounts to
maintain a sliding scale of lower fees for
Cabinet type
Max kW
Low Density ...................................................................................................
Medium Density .............................................................................................
Medium-High Density ....................................................................................
High Density ..................................................................................................
Super High Density ........................................................................................
pmangrum on DSK3VPTVN1PROD with
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,4
in general, and with Section 6(b)(4) of
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Mar<15>2010
14:19 Jan 16, 2013
3 The ‘‘CoLo Console’’ is BX’s web-based ordering
tool, and it is the exclusive means for ordering
colocation services.
Jkt 229001
PO 00000
Frm 00047
Fmt 4703
Sfmt 4703
$2,000
2,500
3,500
4,500
8,000
higher density cabinets on a per
kilowatt basis. The chart below reflects
this scale:
Reduced MRC
fee
2.88
5
7
10
17
the Act,5 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
$4,000
5,000
6,000
7,000
13,000
Reduced
ongoing
monthly fee
Discount
(%)
$2,000
2,500
3,500
4,500
8,000
50.00
50.00
41.67
35.71
38.46
Fee per KW
$694.44
500.00
500.00
450.00
470.59
controls. The proposed reduced fee will
be assessed equally on all customers
that place an order for a new cabinet
during the designated period. The
proposed amendments will provide an
incentive for customers to avail
4 15
5 15
E:\FR\FM\17JAN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
17JAN1
Federal Register / Vol. 78, No. 12 / Thursday, January 17, 2013 / Notices
pmangrum on DSK3VPTVN1PROD with
themselves of the designated co-location
services.
BX’s proposal to reduce fees by
differing amounts is fair and equitable
because it reflects the economic
efficiency of higher density colocation
cabinets. First, the underlying costs for
co-location cabinets consists [sic] of
certain fixed costs for the data center
facility (space, amortization, etc.) and
certain variable costs (electrical power
utilized and cooling required). The
variable costs are in total higher for the
higher power density cabinets, as
reflected in their higher current prices.
Second, the higher density cabinets
were introduced later than the lower
density cabinets (High Density cabinet
was introduced in 2009 and the Super
High Density cabinet was introduced in
2011). Due to the competitive pressures
that existed in 2011 and 2012, the fees
for Super High Density cabinets were
further reduced in 2012 to be more
comparable with the lower fee per
kilowatt of the High Density cabinet. As
a result of these already-reduced rates
on higher density cabinets, BX has
greater flexibility to discount fees for
lower density cabinets, on a per kilowatt
basis.
BX operates in a highly competitive
market in which market participants can
readily favor competing venues if they
deem fee levels at a particular venue to
be excessive. In such an environment,
BX must continually adjust its fees to
remain competitive with other
exchanges and with alternative trading
systems that have been exempted from
compliance with the statutory standards
applicable to exchanges. BX believes
that the proposed rule change reflects
this competitive environment because it
is designed to ensure that the charges
for use of the BX colocation facility
remain competitive.
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.
To the contrary, the Exchange’s
voluntary fee reduction is a response to
increased competition for colocation
services by other exchanges and trading
venues. As more venues offer colocation
services, competition drives costs lower.
The Exchange, in order to retain existing
orders and to attract new orders, is
forced to offer a lower effective rate for
aggregate cabinet demand. This
competition benefits users, members.
and investors by lowering the average
aggregate cost of trading on the
Exchange.
VerDate Mar<15>2010
14:19 Jan 16, 2013
Jkt 229001
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
Pursuant to Section 19(b)(3)(A)(ii) of
the Act,6 the Exchange has designated
this proposal as establishing or changing
a due, fee, or other charge imposed by
the self-regulatory organization on any
person, whether or not the person is a
member of the self-regulatory
organization, which renders the
proposed rule change effective upon
filing.
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:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–BX–2013–003 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–BX–2013–003. This file
number should be included on the
subject line if email 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 10:00 a.m.
and 3:00 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 submissions
should refer to File Number SR–BX–
2013–003, and should be submitted on
or before February 7, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–00868 Filed 1–16–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68632; File No. SR–FINRA–
2013–003]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change Relating to
Amendments to the Customer and
Industry Codes of Arbitration
Procedure To Revise the Public
Arbitrator Definition
January 11, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on January 4, 2013, Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
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 FINRA. The
Commission is publishing this notice to
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
6 15
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
Frm 00048
Fmt 4703
Sfmt 4703
3925
E:\FR\FM\17JAN1.SGM
17JAN1
]]>Agencies
[Federal Register Volume 78, Number 12 (Thursday, January 17, 2013)]
[Notices]
[Pages 3924-3925]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00868]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68625; File No. SR-BX-2013-003]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Reduce
Fees Assessed for Certain Co-Location Services
January 11, 2013.
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 January 2, 2013, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') a 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
BX proposes to reduce the fees assessed under BX Rule 7034 for
certain co-location services. The Exchange is proposing to implement
the proposed fee beginning on January 2, 2013. The text of the proposed
rule change is available at https://nasdaqomxbx.cchwallstreet.com, at
BX'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 self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item III [sic] below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend BX Rule 7034 to reduce the monthly
recurring cabinet (``MRC'') fees assessed for the installation of
certain new co-location cabinets. The reduced MRC fees will apply to
new cabinets ordered by customers using the CoLo Console \3\ during the
months of January and February of 2013, provided that such cabinets are
fully operational by May 31, 2013. The reduced fee shall apply to any
cabinet that increases the number of dedicated cabinets beyond the
total number dedicated to that customer as of December 31, 2012
(``Baseline Number''), for so long as the total number of dedicated
cabinets exceeds that customer's Baseline Number. The reduced MRC fees
will apply for a period of 24 months from the date the new cabinet
becomes fully operational under BX rules, provided that the customer's
total number of cabinets continues to exceed the Baseline Number.
---------------------------------------------------------------------------
\3\ The ``CoLo Console'' is BX's web-based ordering tool, and it
is the exclusive means for ordering colocation services.
---------------------------------------------------------------------------
The Exchange proposes to reduce the applicable fees as follows:
------------------------------------------------------------------------
Current Reduced
Cabinet type ongoing ongoing
monthly fee monthly fee
------------------------------------------------------------------------
Low Density............................. $4,000 $2,000
Medium Density.......................... 5,000 2,500
Medium-High Density..................... 6,000 3,500
High Density............................ 7,000 4,500
Super High Density...................... 13,000 8,000
------------------------------------------------------------------------
New cabinets shall be assessed standard installation fees.
BX proposes to reduce colocation cabinet fees by different amounts
to maintain a sliding scale of lower fees for higher density cabinets
on a per kilowatt basis. The chart below reflects this scale:
----------------------------------------------------------------------------------------------------------------
Reduced MRC
Cabinet type Max kW fee Discount (%) Fee per KW
----------------------------------------------------------------------------------------------------------------
Low Density..................................... 2.88 $2,000 50.00 $694.44
Medium Density.................................. 5 2,500 50.00 500.00
Medium-High Density............................. 7 3,500 41.67 500.00
High Density.................................... 10 4,500 35.71 450.00
Super High Density.............................. 17 8,000 38.46 470.59
----------------------------------------------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\4\ in general, and with
Section 6(b)(4) of the Act,\5\ 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 reduced
fee will be assessed equally on all customers that place an order for a
new cabinet during the designated period. The proposed amendments will
provide an incentive for customers to avail
[[Page 3925]]
themselves of the designated co-location services.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
BX's proposal to reduce fees by differing amounts is fair and
equitable because it reflects the economic efficiency of higher density
colocation cabinets. First, the underlying costs for co-location
cabinets consists [sic] of certain fixed costs for the data center
facility (space, amortization, etc.) and certain variable costs
(electrical power utilized and cooling required). The variable costs
are in total higher for the higher power density cabinets, as reflected
in their higher current prices. Second, the higher density cabinets
were introduced later than the lower density cabinets (High Density
cabinet was introduced in 2009 and the Super High Density cabinet was
introduced in 2011). Due to the competitive pressures that existed in
2011 and 2012, the fees for Super High Density cabinets were further
reduced in 2012 to be more comparable with the lower fee per kilowatt
of the High Density cabinet. As a result of these already-reduced rates
on higher density cabinets, BX has greater flexibility to discount fees
for lower density cabinets, on a per kilowatt basis.
BX operates in a highly competitive market in which market
participants can readily favor competing venues if they deem fee levels
at a particular venue to be excessive. In such an environment, BX must
continually adjust its fees to remain competitive with other exchanges
and with alternative trading systems that have been exempted from
compliance with the statutory standards applicable to exchanges. BX
believes that the proposed rule change reflects this competitive
environment because it is designed to ensure that the charges for use
of the BX colocation facility remain competitive.
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. To
the contrary, the Exchange's voluntary fee reduction is a response to
increased competition for colocation services by other exchanges and
trading venues. As more venues offer colocation services, competition
drives costs lower. The Exchange, in order to retain existing orders
and to attract new orders, is forced to offer a lower effective rate
for aggregate cabinet demand. This competition benefits users, members.
and investors by lowering the average aggregate cost of trading on the
Exchange.
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
Pursuant to Section 19(b)(3)(A)(ii) of the Act,\6\ the Exchange has
designated this proposal as establishing or changing a due, fee, or
other charge imposed by the self-regulatory organization on any person,
whether or not the person is a member of the self-regulatory
organization, which renders the proposed rule change effective upon
filing.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
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:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BX-2013-003 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-BX-2013-003. This file
number should be included on the subject line if email 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 10:00 a.m. and 3:00 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 submissions should refer to
File Number SR-BX-2013-003, and should be submitted on or before
February 7, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-00868 Filed 1-16-13; 8:45 am]
BILLING CODE 8011-01-P
