Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Reduce the Fees Assessed Under NASDAQ Rule 7034 for Certain Co-Location Services, 40527-40529 [2013-16087]
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40527
Federal Register / Vol. 78, No. 129 / Friday, July 5, 2013 / Notices
risk management standards as described
in Section 805(b).
Consistent with Section 805(a), the
Commission believes NSCC’s proposal
promotes robust risk management, as
well as the safety and soundness of
NSCC’s operations, while reducing
systemic risks and supporting the
stability of the broader financial system.
As discussed above, the rule change will
allow NSCC to mitigate the operational
risk that results from locked-in trade
data not being submitted to NSCC in
real-time.
Commission Rule 17Ad–22(d)(4)
regarding identification and mitigation
of operational risk,19 adopted as part of
the Clearing Agency Standards,20
requires clearing agencies to establish,
implement, maintain and enforce
written policies and procedures
reasonably designed to: ‘‘[i]dentify
sources of operational risk and
minimize them through the
development of appropriate systems,
controls, and procedures . . . .’’ 21 The
Commission believes that the receipt of
locked-in trade data on a real-time basis
will permit NSCC’s risk management
processes to monitor trades closer to
trade execution on an intra-day basis
and identify and manage any issues
relating to excessive risk exposure
earlier on a closer to real-time basis,
thereby potentially minimizing a source
of operational risk.
IV. Conclusion
It is therefore noticed, pursuant to
Section 806(e)(1)(I) of the Clearing
Supervision Act,22 that the Commission
does not object to the proposed rule
change described in the Advance Notice
(File No. SR–NSCC–2013–805) and that
NSCC be and hereby is authorized to
implement the proposed rule change as
of the date of this notice or the date of
the ‘‘Order Approving Proposed Rule
Change to Require that All Locked-in
Trade Data Submitted to It for Trade
Recording be Submitted in Realtime,’’ 23 whichever is later.
By the Commission.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–16086 Filed 7–3–13; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–69887; File No.
SR–NASDAQ–2013–088]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Reduce
the Fees Assessed Under NASDAQ
Rule 7034 for Certain Co-Location
Services
June 28, 2013.
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 June 21,
2013, The NASDAQ Stock Market LLC
(‘‘NASDAQ’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by the 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 the Substance
of the Proposed Rule Change
NASDAQ is proposing changes to
reduce the fees assessed under
NASDAQ Rule 7034 for certain colocation services.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaq.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. 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.
Cabinet type
tkelley on DSK3SPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
CFR 240.17Ad–22(d)(4).
No. 34–68080 (Oct. 22, 2012), 77 FR
66219 (Nov. 2, 2012).
21 17 CFR 240.17Ad–22(d)(4).
22 12 U.S.C. 5465(e)(1)(I).
20 Release
VerDate Mar<15>2010
17:06 Jul 03, 2013
Jkt 229001
No. 34–69890 (June 28, 2013).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Exchange Act Release No. 68624 (Jan. 1,
2013), 78 FR 3945 (Jan. 17, 2013) (notice of
PO 00000
The Exchange proposes to repeat a
temporary fee reduction program to
attract new customers to its co-location
facility in Carteret, New Jersey.3
Specifically, the Exchange proposes to
amend Rule 7034 to reduce the monthly
recurring cabinet (‘‘MRC’’) fees assessed
for installation of certain new colocation cabinets. The reduced MRC
fees will apply to new cabinets ordered
by users using the Co-Lo Console 4 on or
after July 1, 2013 through August 31,
2013. The reduced fee shall apply to any
cabinet that increases the number of
dedicated cabinets beyond the total
number dedicated to the user as of May
31, 2013 (‘‘Baseline Number’’), for so
long as the total number of dedicated
cabinets exceeds that user’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 NASDAQ rules,
provided that the user’s total number of
cabinets continues to exceed the
Baseline Number.
The Exchange proposes to reduce the
applicable fees as follows:
Cabinet type
Low Density ..
Medium Density .............
Medium-High
Density ......
High Density
Super High
Density ......
23 Release
1 15
Frm 00103
Fmt 4703
Sfmt 4703
Current
ongoing
monthly fee
Reduced
ongoing
monthly fee
$4,000
$2,000
5,000
2,500
6,000
7,000
3,500
4,500
13,000
8,000
New cabinets shall be assessed standard
installation fees.
NASDAQ 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:
Max KW
Super High Density ..........................................................................................................
High Density ....................................................................................................................
19 17
1. Purpose
17
10
New fee
$8,000
4,500
Discount
(percent)
38.46
35.71
Fee per KW
$470.59
450.00
publication of SR–NASDAQ–2013–002, a twomonth reduction in co-location cabinet fees).
4 The ‘‘Co-Lo Console’’ is NASDAQ’s web-based
ordering tool, and it is the exclusive means for
ordering colocation services.
E:\FR\FM\05JYN1.SGM
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Federal Register / Vol. 78, No. 129 / Friday, July 5, 2013 / Notices
Cabinet type
Max KW
tkelley on DSK3SPTVN1PROD with NOTICES
Medium High ....................................................................................................................
Medium Density ...............................................................................................................
Low Density .....................................................................................................................
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,5
in general, and with Section 6(b)(4) of
the Act,6 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
after the designated period. The
proposed amendments will provide an
incentive for customers to avail
themselves of the designated co-location
services.
NASDAQ’s proposal to reduce fees by
differing amounts is fair and equitable
because it reflects the economic
efficiency of higher density co-location
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 (the 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, Super High Density cabinets were
introduced at lower fees per kilowatt.
As a result of these already-reduced
rates on higher density cabinets,
NASDAQ has greater flexibility to
discount fees for lower density cabinets,
on a per kilowatt basis.
NASDAQ 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, NASDAQ 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. NASDAQ believes that the
5 15
6 15
proposed rule change reflects this
competitive environment because it is
designed to ensure that the charges for
use of the NASDAQ co-location 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 co-location
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
No written comments were either
solicited or 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,7 NASDAQ 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
U.S.C. 78f.
U.S.C. 78f(b)(4).
VerDate Mar<15>2010
17:06 Jul 03, 2013
7 15
Jkt 229001
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
Frm 00104
Fmt 4703
Sfmt 4703
7
5
2.88
New fee
3,500
2,500
2,000
Discount
(percent)
41.67
50.00
50.00
Fee per KW
500.00
500.00
694.44
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–NASDAQ–2013–088 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–2013–088. 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, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 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
E:\FR\FM\05JYN1.SGM
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Federal Register / Vol. 78, No. 129 / Friday, July 5, 2013 / Notices
information that you wish to make
available publicly.
All submissions should refer to File
Number SR–NASDAQ–2013–088, and
should be submitted on or before July
26, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–16087 Filed 7–3–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69891; File No. SR–BYX–
2013–022]
Self-Regulatory Organizations; BATS
Y-Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Provide a Last Sale
Data Feed
June 28, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 25,
2013, BATS–Y Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. 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
tkelley on DSK3SPTVN1PROD with NOTICES
The Exchange filed a proposal to
make available a new data feed to data
recipients.5 The text of the proposed
rule change is available at the
Exchange’s Web site at https://
www.batstrading.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
5 Exchange data recipients include Members of
the Exchange as well as non-Members that have
entered into an agreement with the Exchange that
permits them to receive Exchange data.
1 15
VerDate Mar<15>2010
17:06 Jul 03, 2013
Jkt 229001
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 make available an
additional Exchange data feed for
receipt by Exchange data recipients. The
Exchange currently offers all of its
various data feeds free of charge, though
the Exchange intends to file a proposal
shortly to commence charging for
certain of such feeds. The data feeds
currently offered by the Exchange
include: (i) TCP PITCH; (ii) Multicast
PITCH; (iii) TOP; (iv) DROP; (v)
Historical Data; and (vi) Latency
Monitoring (collectively, the ‘‘Data
Feeds’’). The Exchange provides
detailed and up to date technical
information regarding each of the Data
Feeds currently offered by the Exchange
on its public Web site.6 All orders and
executions displayed through the Data
Feeds are anonymous and do not
contain the identity of the party that
submitted the order.
The Exchange is proposing to amend
Rule 11.22 in order to begin offering a
new feed, the Last Sale Feed, to
Members and non-members. The Last
Sale Feed will be a direct data feed
product that provides real-time,
intraday trade information, including
price, volume and time of executions.
The Last Sale Feed will not include
quotation information.
Currently, the Exchange provides realtime last sale information from its
market center to the Security
Information Processors (‘‘SIPs’’) for the
national market system plans governing
trading in NYSE listed securities (‘‘Tape
A securities’’), NASDAQ listed
securities (‘‘Tape C securities’’), and
securities listed on exchanges other than
NYSE or NASDAQ (‘‘Tape B
securities’’). The SIPs then consolidate
PO 00000
6 https://www.batstrading.com/support/.
Frm 00105
Fmt 4703
Sfmt 4703
40529
the Exchange’s last sale information
with similar information from other
market centers, and disseminate the
consolidated last sale data to market
participants, including market data
vendors. The Last Sale Feed will
include last sale information regarding
all Tape A securities, Tape B securities
and Tape C securities with respect to
activity occurring solely on the
Exchange.
Various data recipients may wish to
subscribe to and use the Last Sale Feed.
For instance, data recipients that
provide real-time market information on
public Web sites or offer dynamic stock
tickers, portfolio trackers, price/time
graphs and other visual systems can use
the Last Sale Feed in lieu of using the
Exchange’s existing Data Feeds. Data
recipients may prefer the BATS Last
Sale Feed because the Exchange’s
existing Data Feeds contain a significant
amount of additional information that
the data recipients may not need, which
may result in unnecessary technology
costs (e.g., development,
telecommunications or storage costs).
The Exchange notes that similar marketspecific last sale data products are
offered by other market centers,
including an identical data feed offered
by the Exchange’s affiliate, BATS
Exchange, Inc. (‘‘BATS BZX’’).7
No market participant is required to
subscribe to the Last Sale Feed because
the same last sale prices are available in
the Exchange’s other Data Feeds. Market
participants can also gain access to BYX
last sale prices that are integrated with
the prices that other markets make
available through the SIPs. Indeed, even
though the Last Sale Feed may provide
to some participants an efficient
alternative to the consolidated price
information that investors and brokerdealers can receive on a consolidated
basis from the SIPs, the Exchange
believes that the information that the
Exchange contributes to the
consolidated tape and the increasingly
lower latency of the data feeds offered
by the SIPs will continue to satisfy the
needs of the vast majority of individual
and professional investors. Although
certain data recipients might
supplement their data feeds by adding
the Last Sale Feed, it is unlikely that
data recipients or distributors will
replace the consolidated last sale feed
provided by the SIPs with the Last Sale
Feed. The Exchange represents that it
7 See BATS BZX Rule 11.22(g); NASDAQ Stock
Market Rule 7039; NASDAQ OMX BX Rule 7039;
see also Securities Exchange Act Release No. 61112
(December 4, 2009), 74 FR 65569 (December 10,
2009) (File No. SR–BX–2009–077) (filing of an
immediately effective rule related to introduction of
a last sale feed by NASDAQ OMX BX).
E:\FR\FM\05JYN1.SGM
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]]>Agencies
[Federal Register Volume 78, Number 129 (Friday, July 5, 2013)]
[Notices]
[Pages 40527-40529]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-16087]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69887; File No. SR-NASDAQ-2013-088]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Reduce the Fees Assessed Under NASDAQ Rule 7034 for Certain Co-
Location Services
June 28, 2013.
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 June 21, 2013, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the 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 the
Substance of the Proposed Rule Change
NASDAQ is proposing changes to reduce the fees assessed under
NASDAQ Rule 7034 for certain co-location services.
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaq.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. 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 repeat a temporary fee reduction program
to attract new customers to its co-location facility in Carteret, New
Jersey.\3\ Specifically, the Exchange proposes to amend Rule 7034 to
reduce the monthly recurring cabinet (``MRC'') fees assessed for
installation of certain new co-location cabinets. The reduced MRC fees
will apply to new cabinets ordered by users using the Co-Lo Console \4\
on or after July 1, 2013 through August 31, 2013. The reduced fee shall
apply to any cabinet that increases the number of dedicated cabinets
beyond the total number dedicated to the user as of May 31, 2013
(``Baseline Number''), for so long as the total number of dedicated
cabinets exceeds that user'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 NASDAQ rules, provided that the user's total
number of cabinets continues to exceed the Baseline Number.
---------------------------------------------------------------------------
\3\ See Exchange Act Release No. 68624 (Jan. 1, 2013), 78 FR
3945 (Jan. 17, 2013) (notice of publication of SR-NASDAQ-2013-002, a
two-month reduction in co-location cabinet fees).
\4\ The ``Co-Lo Console'' is NASDAQ'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.
NASDAQ proposes to reduce co-location 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:
----------------------------------------------------------------------------------------------------------------
Discount
Cabinet type Max KW New fee (percent) Fee per KW
----------------------------------------------------------------------------------------------------------------
Super High Density.......................................... 17 $8,000 38.46 $470.59
High Density................................................ 10 4,500 35.71 450.00
[[Page 40528]]
Medium High................................................. 7 3,500 41.67 500.00
Medium Density.............................................. 5 2,500 50.00 500.00
Low Density................................................. 2.88 2,000 50.00 694.44
----------------------------------------------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\5\ in general, and with
Section 6(b)(4) of the Act,\6\ 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 after the designated period. The proposed amendments will
provide an incentive for customers to avail themselves of the
designated co-location services.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
NASDAQ's proposal to reduce fees by differing amounts is fair and
equitable because it reflects the economic efficiency of higher density
co-location 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 (the 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, Super High Density cabinets were introduced at lower fees per
kilowatt. As a result of these already-reduced rates on higher density
cabinets, NASDAQ has greater flexibility to discount fees for lower
density cabinets, on a per kilowatt basis.
NASDAQ 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, NASDAQ
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.
NASDAQ believes that the proposed rule change reflects this competitive
environment because it is designed to ensure that the charges for use
of the NASDAQ co-location 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 co-location services by other exchanges and
trading venues. As more venues offer co-location 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
No written comments were either solicited or 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,\7\ NASDAQ 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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-NASDAQ-2013-088 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-2013-088. 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, 100 F Street NE., Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 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
[[Page 40529]]
information that you wish to make available publicly.
All submissions should refer to File Number SR-NASDAQ-2013-088, and
should be submitted on or before July 26, 2013.
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\8\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-16087 Filed 7-3-13; 8:45 am]
BILLING CODE 8011-01-P
