Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Impose an Extranet Access Fee, 19129-19131 [2014-07638]
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Federal Register / Vol. 79, No. 66 / Monday, April 7, 2014 / Notices
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: Thomas Bayer, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: April 2, 2014.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–07655 Filed 4–4–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
mstockstill on DSK4VPTVN1PROD with NOTICES
Extension:
Electronic Data Collection System, OMB
Control No. 3235–0672, SEC File No.
270–621.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit an extension for this
current collection of information to the
Office of Management and Budget for
approval.
The Securities and Exchange
Commission has developed an
Electronic Data Collection System
database (the Database) and invites
comment on the Database that will
support information provided by the
general public that would like to file a
tip or complaint with the SEC. The
Database will be a web based e-filed
dynamic report based on technology
that pre-populates and establishes a
series of questions based on the data
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17:49 Apr 04, 2014
Jkt 232001
that the individual enters. The
individual will then complete specific
information on the subject(s) and nature
of the suspicious activity, using the data
elements appropriate to the type of
complaint or subject. The information
collection is voluntary. The public
interface to the Database will be
available using the agency’s Web site
www.sec.gov. Information is voluntary.
Estimated number of annual
responses = 38,955.
Estimated annual reporting burden =
19,478 hours (30 minutes per
submission).
Written comments are invited on: (a)
Whether this collection of information
is necessary for the proper performance
of the functions of the agency, including
whether the information will have
practical utility; (b) the accuracy of the
agency’s estimate of the burden imposed
by the collection of information; (c)
ways to enhance the quality, utility, and
clarity of the information collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication. Please direct your written
comments to Thomas Bayer, Director/
Chief Information Officer, Securities
and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F St. NE.,
Washington DC 20549; or send an email
to: PRA_Mailbox@sec.gov.
Dated: April 2, 2014.
Kevin M. O’Neill,
Deputy Secretary.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Thursday, April 10, 2014 at 2 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
Frm 00085
Fmt 4703
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matter at the Closed Meeting.
Commissioner Aguilar, as duty
officer, voted to consider the items
listed for the Closed Meeting in closed
session.
The subject matter of the Closed
Meeting will be:
Institution and settlement of injunctive
actions;
institution and settlement of
administrative proceedings;
adjudicatory matters; and
other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact the Office of the Secretary at
(202) 551–5400.
Dated: April 3, 2014.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–07840 Filed 4–3–14; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71841; File No. SR–BX–
2014–015]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Impose an
Extranet Access Fee
April 1, 2014.
[FR Doc. 2014–07656 Filed 4–4–14; 8:45 am]
PO 00000
19129
Sfmt 4703
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 March 28,
2014, NASDAQ OMX BX, Inc. (‘‘BX’’ 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.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to modify the
extranet access fee (‘‘Extranet Access
Fee’’) set forth in BX Rule 7025. BX will
implement the proposed revised fee on
April 1, 2014.
1 15
2 17
E:\FR\FM\07APN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
07APN1
19130
Federal Register / Vol. 79, No. 66 / Monday, April 7, 2014 / Notices
The text of the proposed rule change
is below. Proposed new language is
italicized; proposed deletions are
bracketed.3
*
*
*
*
*
7025. Extranet Access Fee
Extranet providers that establish a
connection with the Exchange to offer direct
access connectivity to market data feeds shall
[not] be assessed a monthly access fee of
$750 per client organization Customer
Premises Equipment (‘‘CPE’’) Configuration.
For purposes of this Rule 7025, the term
‘‘Customer Premises Equipment
Configuration’’ shall mean any line, circuit,
router package, or other technical
configuration used by an extranet provider to
provide a direct access connection to the
Exchange market data feeds to a recipient’s
site. No extranet access fee will be charged
for connectivity to market data feeds
containing only consolidated data. For
purposes of this rule, consolidated data
includes data disseminated by the UTP SIP.
*
*
*
*
*
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
mstockstill on DSK4VPTVN1PROD with NOTICES
The Exchange is proposing to impose
an Extranet Access Fee as set forth in
BX Rule 7025. BX Rule 7025 currently
does not include a monthly access fee
per recipient Customer Premises
Equipment (‘‘CPE’’) Configuration.4
Specifically, the Exchange proposes to
charge a $750 per recipient CPE
Configuration per month.
3 Changes are marked to the rules of NASDAQ
OMX BX, Inc. found at https://
nasdaqomxbx.cchwallstreet.com
4 See Securities Exchange Act Release No. 71506
(February 7, 2014), 79 FR 8769 (February 13, 2014)
(SR–BX–2014–008). As defined in BX Rule 7025, a
‘‘Customer Premises Equipment Configuration’’
means any line, circuit, router package, or other
technical configuration used by an extranet
provider to provide a direct access connection to
the Exchange market data feeds to a recipient’s site.
VerDate Mar<15>2010
17:49 Apr 04, 2014
Jkt 232001
As discussed in a recent filing,5
initially an Extranet Access Fee of $750
per recipient CPE Configuration per
month was put in place in 2009,6 but
the service was provided for free during
the first year of operation of the
Exchange’s venue for trading cash
equities. At the end of the one-year
period, the initial fee of $750 per
recipient CPE Configuration per month
remained in place, but it inadvertently
was never billed.
Subsequently, the Exchange filed to
increase the fee of $750 per recipient
CPE Configuration per month to
$1,000.7 Shortly after increasing the fee,
the Exchange discovered that the
Extranet Access Fee had never been
billed so the Exchange determined to
file and to eliminate the fee [sic]. The
Exchange believed that since recipients
had yet to actually pay an Extranet
Access Fee, it would be burdensome for
recipients to start-off paying $1,000 per
recipient CPE Configuration per month.
However, the Exchange has now had the
necessary time to assess the need for the
Extranet Access Fee and determined
that it cannot completely absorb its
costs associated with maintaining
multiple extranet connections with
multiple providers. Accordingly, the
Exchange now seeks to charge recipients
the fee originally proposed in 2009 of
$750 per recipient CPE Configuration
per month.
As stated above, this fee increase will
be used to help support the Exchange’s
costs associated with maintaining
multiple extranet connections with
multiple providers. These costs include
those associated with overhead and
technology infrastructure,
administrative, maintenance and
operational costs. Since the inception of
accessing data through extranets, there
had been numerous network
infrastructure improvements and
administrative controls enacted. The
Exchange has additionally implemented
compressed TCP/IP options, which
allows customers to use reduced
bandwidth and [sic] lower carrying
costs. Additionally, the Exchange has
implemented automated retransmission
facilities for most of its data clients that
benefit extranet clients by reducing
operational costs associated with
retransmissions.
5 See Securities Exchange Act Release No. 71506
(February 7, 2014), 79 FR 8769 (February 13, 2014)
(SR–BX–2014–008). See also Securities Exchange
Act Release No. 59615 (March 20, 2009), 74 FR
14604 (March 31, 2009) (SR–BX–2009–005).
6 See Securities Exchange Act Release No. 59615
(March 20, 2009), 74 FR 14604 (March 31, 2009)
(SR–BX–2009–005).
7 See supra note 3.
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
As the number of extranets has
increased, the Exchange’s management
of the downstream customers has
expanded and the Exchange has had to
ensure appropriate reporting and review
processes, which has resulted in a
greater cost burden on the Exchange
over time. The fee will also help to
ensure that the Exchange is better able
to closely review reports and uncover
reporting errors via audits thus
minimizing reporting issues. The
network infrastructure has increased in
order to keep pace with the increased
number of products, which, in turn, has
caused an increased administrative
burden and higher operational costs
associated with delivery via extranets.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,8 in general, and
with Section 6(b)(4) of the Act,9 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.
All similarly situated extranet
providers, including the Exchange
operating its own extranet, that establish
an extranet connection with the
Exchange to access market data feeds
from the Exchange are subject to the
same fee structure. As noted above, this
fee is the same as the originally
proposed Extranet Access Fee in 2009 of
$750 per recipient CPE Configuration
per month. The fee will help the
Exchange offset some of the overhead
and technology infrastructure,
administrative, maintenance and
operational costs it incurs in support of
the service.
As such, the Exchange believes that
the proposed fee is reasonable and notes
it is the same as originally proposed in
2009. The extranet costs are separate
and different from the colocation facility
that is able to recoup these fees by
charging for servers, rack space,
electricity, etc. within the associated
data centers.
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.
The fee will be applied uniformly
among extranet providers, which are not
compelled to establish a connection
8 15
9 15
E:\FR\FM\07APN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
07APN1
Federal Register / Vol. 79, No. 66 / Monday, April 7, 2014 / Notices
with the Exchange to offer access
connectivity to market data feeds. For
these reasons, any burden arising from
the fees is necessary in the interest of
promoting the equitable allocation of a
reasonable fee. Additionally, firms make
decisions on how much and what types
of data to consume on the basis of the
total cost of interacting with the
Exchange or other exchanges and, of
course, the extranet access fee is but one
factor in a total platform analysis.
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)(ii) of the Act.10 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 email to rule-comments@
sec.gov. Please include File Number SR–
BX–2014–015 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BX–2014–015. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
10 15
U.S.C. 78s(b)(3)(A)(ii).
VerDate Mar<15>2010
17:49 Apr 04, 2014
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–2014–015 and should
be submitted on or before April 28,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–07638 Filed 4–4–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71838; File No. SR–
NYSEMKT–2014–22]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing of Proposed
Rule Change Amending Rule 98—
Equities To Adopt a Principles-based
Approach To Prohibit the Misuse of
Material Nonpublic Information and
Make Conforming Changes to Other
Exchange Rules
April 1, 2014.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on March
18, 2014, NYSE MKT LLC (the
1117
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
19131
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. 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 amend
Rule 98—Equities to adopt a principlesbased approach to prohibit the misuse
of material nonpublic information and
make conforming changes to other
Exchange Rules. The text of the
proposed rule change is available on the
Exchange’s Web site at www.nyse.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
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 IV 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 98—Equities (‘‘Rule 98’’) to adopt
a principles-based approach to prohibit
the misuse of material nonpublic
information by a member organization
that operates a DMM unit and make
conforming changes to other Exchange
rules. The proposed rule changes would
provide more flexibility for how a
member organization may organize its
DMM unit. The Exchange believes that
the proposed rule change adopts an
approach more similar to the rules
governing equity market makers on
NYSE Arca Equities, Inc. (‘‘NYSE
Arca’’), the NASDAQ Stock Market LLC
(‘‘Nasdaq’’), and the BATS Exchange,
E:\FR\FM\07APN1.SGM
07APN1
]]>Agencies
[Federal Register Volume 79, Number 66 (Monday, April 7, 2014)]
[Notices]
[Pages 19129-19131]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-07638]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71841; File No. SR-BX-2014-015]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Impose an
Extranet Access Fee
April 1, 2014.
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 March 28, 2014, NASDAQ OMX BX, Inc. (``BX'' 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.
---------------------------------------------------------------------------
\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
The Exchange proposes to modify the extranet access fee (``Extranet
Access Fee'') set forth in BX Rule 7025. BX will implement the proposed
revised fee on April 1, 2014.
[[Page 19130]]
The text of the proposed rule change is below. Proposed new
language is italicized; proposed deletions are bracketed.\3\
---------------------------------------------------------------------------
\3\ Changes are marked to the rules of NASDAQ OMX BX, Inc. found
at https://nasdaqomxbx.cchwallstreet.com
---------------------------------------------------------------------------
* * * * *
7025. Extranet Access Fee
Extranet providers that establish a connection with the Exchange
to offer direct access connectivity to market data feeds shall [not]
be assessed a monthly access fee of $750 per client organization
Customer Premises Equipment (``CPE'') Configuration. For purposes of
this Rule 7025, the term ``Customer Premises Equipment
Configuration'' shall mean any line, circuit, router package, or
other technical configuration used by an extranet provider to
provide a direct access connection to the Exchange market data feeds
to a recipient's site. No extranet access fee will be charged for
connectivity to market data feeds containing only consolidated data.
For purposes of this rule, consolidated data includes data
disseminated by the UTP SIP.
* * * * *
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 Exchange is proposing to impose an Extranet Access Fee as set
forth in BX Rule 7025. BX Rule 7025 currently does not include a
monthly access fee per recipient Customer Premises Equipment (``CPE'')
Configuration.\4\ Specifically, the Exchange proposes to charge a $750
per recipient CPE Configuration per month.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 71506 (February 7,
2014), 79 FR 8769 (February 13, 2014) (SR-BX-2014-008). As defined
in BX Rule 7025, a ``Customer Premises Equipment Configuration''
means any line, circuit, router package, or other technical
configuration used by an extranet provider to provide a direct
access connection to the Exchange market data feeds to a recipient's
site.
---------------------------------------------------------------------------
As discussed in a recent filing,\5\ initially an Extranet Access
Fee of $750 per recipient CPE Configuration per month was put in place
in 2009,\6\ but the service was provided for free during the first year
of operation of the Exchange's venue for trading cash equities. At the
end of the one-year period, the initial fee of $750 per recipient CPE
Configuration per month remained in place, but it inadvertently was
never billed.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 71506 (February 7,
2014), 79 FR 8769 (February 13, 2014) (SR-BX-2014-008). See also
Securities Exchange Act Release No. 59615 (March 20, 2009), 74 FR
14604 (March 31, 2009) (SR-BX-2009-005).
\6\ See Securities Exchange Act Release No. 59615 (March 20,
2009), 74 FR 14604 (March 31, 2009) (SR-BX-2009-005).
---------------------------------------------------------------------------
Subsequently, the Exchange filed to increase the fee of $750 per
recipient CPE Configuration per month to $1,000.\7\ Shortly after
increasing the fee, the Exchange discovered that the Extranet Access
Fee had never been billed so the Exchange determined to file and to
eliminate the fee [sic]. The Exchange believed that since recipients
had yet to actually pay an Extranet Access Fee, it would be burdensome
for recipients to start-off paying $1,000 per recipient CPE
Configuration per month. However, the Exchange has now had the
necessary time to assess the need for the Extranet Access Fee and
determined that it cannot completely absorb its costs associated with
maintaining multiple extranet connections with multiple providers.
Accordingly, the Exchange now seeks to charge recipients the fee
originally proposed in 2009 of $750 per recipient CPE Configuration per
month.
---------------------------------------------------------------------------
\7\ See supra note 3.
---------------------------------------------------------------------------
As stated above, this fee increase will be used to help support the
Exchange's costs associated with maintaining multiple extranet
connections with multiple providers. These costs include those
associated with overhead and technology infrastructure, administrative,
maintenance and operational costs. Since the inception of accessing
data through extranets, there had been numerous network infrastructure
improvements and administrative controls enacted. The Exchange has
additionally implemented compressed TCP/IP options, which allows
customers to use reduced bandwidth and [sic] lower carrying costs.
Additionally, the Exchange has implemented automated retransmission
facilities for most of its data clients that benefit extranet clients
by reducing operational costs associated with retransmissions.
As the number of extranets has increased, the Exchange's management
of the downstream customers has expanded and the Exchange has had to
ensure appropriate reporting and review processes, which has resulted
in a greater cost burden on the Exchange over time. The fee will also
help to ensure that the Exchange is better able to closely review
reports and uncover reporting errors via audits thus minimizing
reporting issues. The network infrastructure has increased in order to
keep pace with the increased number of products, which, in turn, has
caused an increased administrative burden and higher operational costs
associated with delivery via extranets.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\8\ in general, and with Section 6(b)(4)
of the Act,\9\ 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
All similarly situated extranet providers, including the Exchange
operating its own extranet, that establish an extranet connection with
the Exchange to access market data feeds from the Exchange are subject
to the same fee structure. As noted above, this fee is the same as the
originally proposed Extranet Access Fee in 2009 of $750 per recipient
CPE Configuration per month. The fee will help the Exchange offset some
of the overhead and technology infrastructure, administrative,
maintenance and operational costs it incurs in support of the service.
As such, the Exchange believes that the proposed fee is reasonable
and notes it is the same as originally proposed in 2009. The extranet
costs are separate and different from the colocation facility that is
able to recoup these fees by charging for servers, rack space,
electricity, etc. within the associated data centers.
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.
The fee will be applied uniformly among extranet providers, which
are not compelled to establish a connection
[[Page 19131]]
with the Exchange to offer access connectivity to market data feeds.
For these reasons, any burden arising from the fees is necessary in the
interest of promoting the equitable allocation of a reasonable fee.
Additionally, firms make decisions on how much and what types of data
to consume on the basis of the total cost of interacting with the
Exchange or other exchanges and, of course, the extranet access fee is
but one factor in a total platform analysis.
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)(ii) of the Act.\10\ 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.
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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-2014-015 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-BX-2014-015. 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-BX-2014-015 and
should be submitted on or before April 28, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-07638 Filed 4-4-14; 8:45 am]
BILLING CODE 8011-01-P
