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, 61429-61431 [2013-24240]
Download as PDF
<![CDATA[
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
of the Act 9 and Rule 19b–4(f)(6)(iii)
thereunder.10
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest, as it
will allow the pilot program to continue
uninterrupted, thereby avoiding
investor confusion that could result
from a temporary interruption in the
pilot program. For this reason, the
Commission designates the proposed
rule change to be operative upon
filing.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.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposal 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–2013–053 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–2013–053. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
tkelley on DSK3SPTVN1PROD with NOTICES
9 15
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6)(iii). As required under
Rule 19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
11 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Mar<15>2010
18:29 Oct 02, 2013
Jkt 232001
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
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BX–
2013–053 and should be submitted on
or before October 24, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24160 Filed 10–2–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70555; File No. SR–
NASDAQ–2013–125]
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
September 30, 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
September 20, 2013, The NASDAQ
Stock Market LLC (‘‘NASDAQ’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
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 00109
Fmt 4703
Sfmt 4703
61429
‘‘Commission’’) the proposed rule
change as described in Items I and II
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
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
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 the 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 October 1, 2013 through December
31, 2013. The reduced fee shall apply to
any cabinet that increases the number of
dedicated cabinets beyond the total
number dedicated to that user as of
August 31, 2013 (‘‘Baseline Number’’),
for so long as the total number of
3 See Exchange Act Release No. 69887 (June 29,
2013) [sic], 78 FR 40527 (July 5, 2013) (notice of
publication of SR–NASDAQ–2013–088, a twomonth reduction in co-location cabinet fees);
Exchange Act Release No. 68624 (Jan. 1, 2013), 78
FR 3945 (Jan. 17, 2013).
4 The ‘‘Co-Lo Console’’ is NASDAQ’s Web-based
ordering tool, and it is the exclusive means for
ordering co-location services.
E:\FR\FM\03OCN1.SGM
03OCN1
61430
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
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:
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.
NASDAQ proposes to reduce colocation cabinet fees by different
amounts to maintain a sliding scale of
Cabinet type
Max KW
Super High Density ..........................................................................................
High Density ....................................................................................................
Medium High ....................................................................................................
Medium Density ...............................................................................................
Low Density .....................................................................................................
tkelley on DSK3SPTVN1PROD with NOTICES
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 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
5 15
6 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
VerDate Mar<15>2010
18:29 Oct 02, 2013
Jkt 232001
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
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
$4,000
5,000
6,000
7,000
13,000
$2,000
2,500
3,500
4,500
8,000
lower fees for higher density cabinets on
a per kilowatt basis. The chart below
reflects this scale:
New fee
17 [sic]
10
7
5
2.88
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.
Reduced ongoing
monthly fee
$8,000
4,500
3,500
2,500
2,000
Discount
(percent)
Fee per KW
38.46%
35.71%
41.67%
50.00%
50.00%
$470.59
450.00
500.00
500.00
694.44
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 7 and paragraph (f) of Rule
19b–4 thereunder.8 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,
7 15
8 17
E:\FR\FM\03OCN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
03OCN1
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
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–2013–125 on the subject line.
tkelley on DSK3SPTVN1PROD 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–2013–125. 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
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2013–125, and should be
submitted on or before October 24,
2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24240 Filed 10–2–13; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70541; File No. SR–Phlx–
2013–97]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to the Clearly
Erroneous Rule
September 27, 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
September 26, 2013, NASDAQ OMX
PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’),
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
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 to extend the
pilot period of recent amendments to
Rule 3312, concerning clearly erroneous
transactions, so that the pilot will now
expire on April 8, 2014. The Exchange
also proposes to remove certain
references to individual stock trading
pauses contained in Rule
3312(a)(2)(C)(iv).
The text of the proposed rule change
is available from Phlx’s Web site at
https://
nasdaqomxphlx.cchwallstreet.com, at
Phlx’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.
BILLING CODE 8011–01–P
1 15
9 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
18:29 Oct 02, 2013
2 17
Jkt 232001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00111
Fmt 4703
Sfmt 4703
61431
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On September 10, 2010, the
Commission approved, for a pilot period
to end December 10, 2010, a proposed
rule change submitted by The NASDAQ
Stock Market LLC, BATS Exchange,
Inc., NASDAQ OMX BX, Inc., Chicago
Board Options Exchange, Incorporated,
Chicago Stock Exchange, Inc., EDGA
Exchange, Inc., EDGX Exchange, Inc.,
International Securities Exchange LLC,
New York Stock Exchange LLC, NYSE
MKT LLC (formerly, NYSE Amex LLC),
NYSE Arca, Inc., and National Stock
Exchange, Inc., to amend certain of their
respective rules to set forth clearer
standards and curtail discretion with
respect to breaking erroneous trades.3
The changes were adopted to address
concerns that the lack of clear
guidelines for dealing with clearly
erroneous transactions may have added
to the confusion and uncertainty faced
by investors on May 6, 2010. In
connection with its resumption of
trading of NMS Stocks through PSX, the
Exchange amended Rule 3312 to
conform it to the newly-adopted
changes to the other exchanges’ clearly
erroneous rules, so that it could
participate in the pilot program.4 The
pilot program was extended several
times since its adoption and is currently
set to expire on September 30, 2013.5 In
its rule change that extended the pilot
program to September 30, 2013,6 the
Exchange also adopted a provision
designed to address the operation of the
National Market System Plan to Address
Extraordinary Market Volatility 7 (the
‘‘Limit Up-Limit Down Plan’’). The
Exchange believes the benefits to market
participants from the more objective
clearly erroneous executions rule
should continue on a pilot basis through
April 8, 2014, which is one year
following commencement of operations
of the Limit Up-Limit Down Plan. The
Exchange believes that continuing the
pilot during this time will protect
against any unanticipated
consequences. Thus, the Exchange
3 Securities Exchange Act Release No. 62886
(September 10, 2010), 75 FR 56613 (September 16,
2010).
4 Securities Exchange Act Release No. 63023
(September 30, 2010), 75 FR 61802 (October 6,
2010) (SR–Phlx–2010–125).
5 Securities Exchange Act Release No. 68820
(February 1, 2013), 78 FR 9436 (February 8, 2013)
(SR–Phlx–2013–12).
6 Id.
7 Securities Exchange Act Release No. 67091 (May
31, 2012), 77 FR 33498 (June 6, 2012); see also Rule
3312(g).
E:\FR\FM\03OCN1.SGM
03OCN1
]]>Agencies
[Federal Register Volume 78, Number 192 (Thursday, October 3, 2013)]
[Notices]
[Pages 61429-61431]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24240]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70555; File No. SR-NASDAQ-2013-125]
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
September 30, 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 September 20, 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 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
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 the
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 the
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 October 1, 2013 through December 31, 2013. The reduced fee
shall apply to any cabinet that increases the number of dedicated
cabinets beyond the total number dedicated to that user as of August
31, 2013 (``Baseline Number''), for so long as the total number of
[[Page 61430]]
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. 69887 (June 29, 2013) [sic], 78
FR 40527 (July 5, 2013) (notice of publication of SR-NASDAQ-2013-
088, a two-month reduction in co-location cabinet fees); Exchange
Act Release No. 68624 (Jan. 1, 2013), 78 FR 3945 (Jan. 17, 2013).
\4\ The ``Co-Lo Console'' is NASDAQ's Web-based ordering tool,
and it is the exclusive means for ordering co-location services.
---------------------------------------------------------------------------
The Exchange proposes to reduce the applicable fees as follows:
------------------------------------------------------------------------
Current ongoing Reduced ongoing
Cabinet type 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 [sic] $8,000 38.46% $470.59
High Density.................................... 10 4,500 35.71% 450.00
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 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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \7\ and paragraph (f) of Rule 19b-4
thereunder.\8\ 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing,
[[Page 61431]]
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-2013-125 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-2013-125. 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 information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2013-125, and should
be submitted on or before October 24, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24240 Filed 10-2-13; 8:45 am]
BILLING CODE 8011-01-P
