Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Expand Its Cabinet Proximity Option Program, 16040-16042 [2024-04700]
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16040
Federal Register / Vol. 89, No. 45 / Wednesday, March 6, 2024 / Notices
payee’s performance and the annuitant’s
well-being from the custodian of the
annuitant. The form contains specific
questions concerning the representative
payee’s performance and is used by the
RRB to determine whether or not the
representative payee should continue in
that capacity. Completion of the forms
in this collection is required to retain
benefits.
The RRB proposes the following
changes for Form G–106:
• Add a drop-down box ‘Second
Request’ at the top of the form to when
the RRB needs to follow-up with a
Third-Party Custodian who did not
respond to the initial request.
ESTIMATE OF ANNUAL RESPONDENT BURDEN
Annual
responses
Form No.
Time
(minutes)
Burden
(hours)
G–99a (legal and all other, excepting parent for child) ...............................................................
G–99c (Parts I and II) ..................................................................................................................
G–99c (Parts I, II, and III) ............................................................................................................
G–106 ..........................................................................................................................................
5,300
300
120
500
18
24
31
10
1,590
120
62
83
Total ......................................................................................................................................
6,220
........................
1,855
prescribed amounts. The provisions
relating to the reduction or nonpayment of annuities by reason of work
are prescribed in 20 CFR 230.
The RRB utilizes Form G–19–F,
Earnings Information Request, to obtain
earnings information that either had not
been previously reported or erroneously
4. Title and purpose of information
collection: Earnings Information
Request; OMB 3220–0184.
Under section 2 of the Railroad
Retirement Act (45 U.S.C. 231a), an
annuity is not payable, or is reduced for
any month(s) in which the beneficiary
works for a railroad or earns more than
reported by a beneficiary. Currently the
claimant is asked to enter the date they
stopped working, if applicable. If a
respondent fails to complete the form,
the RRB may be unable to pay them
benefits. One response is requested of
each respondent. The RRB proposes no
changes to the Form G–19–F.
ESTIMATE OF ANNUAL RESPONDENT BURDEN
Annual
responses
Form No.
G–19–F ........................................................................................................................................
Total ......................................................................................................................................
Additional Information or Comments:
To request more information or to
obtain a copy of the information
collection justification, forms, and/or
supporting material, contact Kennisha
Money at (312) 469–2591 or
Kennisha.Money@rrb.gov. Comments
regarding the information collection
should be addressed to Brian Foster,
Railroad Retirement Board, 844 North
Rush Street, Chicago, Illinois 60611–
1275 or emailed to Brian.Foster@rrb.gov.
Written comments should be received
within 60 days of this notice.
Brian Foster,
Clearance Officer.
[FR Doc. 2024–04725 Filed 3–5–24; 8:45 am]
ddrumheller on DSK120RN23PROD with NOTICES1
BILLING CODE 7905–01–P
700
700
Time
(minutes)
Burden
(hours)
8
........................
SECURITIES AND EXCHANGE
COMMISSION
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
[Release No. 34–99643; File No. SR–BX–
2024–007]
The Exchange proposes to expand the
Exchange’s Cabinet Proximity Option
program.
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Expand Its Cabinet
Proximity Option Program
February 29, 2024.
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 February
26, 2024, Nasdaq BX, Inc. (‘‘BX’’ 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.
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
1 15
2 17
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93
93
PO 00000
Currently, the Exchange offers a
Cabinet Proximity Option program
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 89, No. 45 / Wednesday, March 6, 2024 / Notices
ddrumheller on DSK120RN23PROD with NOTICES1
where, for a monthly fee, customers can
obtain an option for future use on
available, unused cabinet space in
proximity to their existing equipment.
Cabinets reserved under the Cabinet
Proximity Option program are unused
cabinets that customers reserve for
future use and can be converted to a
powered cabinet at the customer’s
request. Under the program, customers
can reserve up to maximum of 20
cabinets that the Exchange endeavors to
provide as close as reasonably possible
to the customer’s existing cabinet space,
taking into consideration power
availability within segments of the
datacenter and the overall efficiency of
use of datacenter resources as
determined by the Exchange. Should
reserved datacenter space be needed for
use, the reserving customer will have
three business days to formally contract
with the Exchange for full payment for
the reserved cabinet space in contention
or it will be reassigned. In making
determinations to require exercise or
relinquishment of reserved space as
among numerous customers, the
Exchange will take into consideration
several factors, including: proximity
between available reserved cabinet
space and the existing space of a
customer seeking additional space for
actual cabinet usage; a customer’s ratio
of cabinets in use to those reserved; the
length of time that a particular
reservation(s) has been in place; and any
other factor that the Exchange deems
relevant to ensure overall efficiency in
use of the datacenter space.3
Currently, the Exchange offers
reservations for low, medium, medium/
high, or high density cabinets under the
Cabinet Proximity Option program.4
The purpose of the proposed rule
change is to offer the Exchange’s
Cabinet Proximity Option program for
cabinets with power densities greater
than 10 kW, in addition to those
reservations currently offered under the
program.5 Although the Exchange has
3 See Securities Exchange Act Release No. 34–
62396 (June 28, 2010), 75 FR 38585 (July 2, 2010)
(SR–BX–2010–012).
4 See General 8, Section 1(d). Low density
cabinets are cabinets with power densities less than
or equal to 2.88 kilowatts (‘‘kW’’). Medium density
cabinets are cabinets with power densities greater
than 2.88 kW and less than or equal to 5 kW.
Medium/High density cabinets are cabinets with
power densities greater than 5 kW and less than or
equal to 7 kW. High density cabinets are cabinets
with power densities greater than 7 kW and less
than 10 kW. See General 8, Section 1(a).
5 Currently, the Exchange offers Super High
Density Cabinets with power densities greater than
10 kW and less than or equal to 17.3 kW. See
General 8, Section 1(a). In addition, the Exchange
intends to offer cabinets with new power densities
in the future, including power densities greater than
17.3 kW.
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16:57 Mar 05, 2024
Jkt 262001
offered the Cabinet Proximity Option
program since 2010,6 the Exchange has
yet to offer reservations under the
Cabinet Proximity Option program for
cabinets with power densities greater
than 10 kW (despite offering cabinets
with power densities greater than 10
kW). The Exchange now wishes to offer
the Cabinet Proximity Option program
for these higher power density cabinets.
Similar to the Exchange’s Cabinet
Proximity Option program, the New
York Stock Exchange LLC (‘‘NYSE’’)
offers ‘‘PNU cabinets,’’ which are
reserved cabinets that are not active and
can be converted to powered, dedicated
cabinets when the user requests.7
NYSE’s PNU cabinets are not limited to
certain density cabinets and NYSE
charges a fee per kW for PNU cabinets.8
The Exchange offers the Cabinet
Proximity Option program as a
convenience to customers. No firms are
required to reserve cabinets via the
Cabinet Proximity Option program and
it is only for those customers that
choose to collocate directly with the
Exchange. Participants can avoid
reserving cabinets under this program
(and the related fee) by (1) collocating
but not reserving space in advance of
needing it; (2) ordering cabinet space
immediately and paying cabinet fees
(without reserving in advance); (3)
collocating indirectly through a vendor
to defray costs; or (4) not collocating at
all.
Implementation
The Exchange intends to submit a fee
filing in the future to establish related
fees in the existing Cabinet Proximity
Option Fees, in General 8, Section 1(d).
Implementation of the proposal
described herein to offer the Exchange’s
Cabinet Proximity Option program for
cabinets with power densities greater
than 10 kW would coincide with the
subsequent fee filing.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
6 See Securities Exchange Act Release No. 34–
62396 (June 28, 2010), 75 FR 38585 (July 2, 2010)
(SR–BX–2010–012).
7 Due to heightened demand for power and
cabinets, NYSE established certain procedures
related to PNU cabinet conversion and restrictions
on new PNU cabinet offerings. NYSE adopted a
policy that, if unallocated cabinet inventory is at or
below 40 cabinets, new PNU cabinets are not
offered. However, when the unallocated cabinet
inventory is more than 40 cabinets, NYSE may
continue to offer PNU cabinets. See Securities
Exchange Act Release No. 34–90732 (December 18,
2020), 85 FR 84443 (December 28, 2020). See also
Securities Exchange Act Release No. 34–91515
(April 8, 2021), 86 FR 19674 (April 14, 2021).
8 See NYSE Connectivity Fee Schedule, available
at https://www.nyse.com/publicdocs/Wireless_
Connectivity_Fees_and_Charges.pdf.
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
16041
of the Act,9 in general, and furthers the
objectives of Section 6(b)(5) of the Act,10
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest. The
proposal would provide customers with
the ability to obtain an option for future
use on available, unused cabinet space
in proximity to their existing equipment
for those cabinets with power densities
greater than 10 kW. Customers are
currently able to obtain an option for
future use on available, unused cabinet
space in proximity to their existing
equipment for smaller cabinets (e.g., for
cabinets with power densities less than
10 kW). The proposal is consistent with
the Act because it would clarify, in
conjunction with a subsequent fee
filing, that reservations under the
Cabinet Proximity program are available
for cabinets with power densities greater
than 10 kW. The Cabinet Proximity
Option program is comparable to PNU
cabinets offered by NYSE, which may be
offered for cabinets of all power
densities (when the unallocated cabinet
inventory is more than 40 cabinets).11
Furthermore, the proposal would
benefit the public interest by providing
customers more reservation options to
choose from, thereby enhancing their
ability to tailor their colocation
operations to the requirements of their
business operations.12 As noted above,
the Exchange offers the Cabinet
Proximity Option program as a
convenience, not a necessity, and it is
only for those customers that choose to
collocate directly with the Exchange.
Participants can avoid reserving
cabinets under this program (and the
related fee) by (1) collocating but not
reserving space in advance of needing it;
(2) ordering cabinet space immediately
and paying cabinet fees (without
reserving in advance); (3) collocating
indirectly through a vendor to defray
costs; or (4) not collocating at all.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 Supra note 7.
12 The Exchange believes that customer demand
for power and cabinets will continue. The Exchange
is currently working to expand the amount of power
and number of cabinets available in colocation.
10 15
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16042
Federal Register / Vol. 89, No. 45 / Wednesday, March 6, 2024 / Notices
Nothing in the proposal imposes any
burden on the ability of other exchanges
to compete. The Exchange operates in a
highly competitive market in which
exchanges and other vendors offer
colocation services as a means to
facilitate the trading and other market
activities of those market participants
who believe that colocation enhances
the efficiency of their operations. The
Cabinet Proximity Option program is
comparable to PNU cabinets offered by
NYSE, as discussed above.
Nothing in the Proposal burdens
intra-market competition because the
Cabinet Proximity Option program is
available to any customer and customers
that wish to make reservations pursuant
to the Cabinet Proximity Option
program can do so on a nondiscriminatory basis. Use of any
colocation service is completely
voluntary, and each market participant
is able to determine whether to use
colocation services based on the
requirements of its business operations.
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
Because the foregoing proposed rule
change does not: (i) significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 13 and
subparagraph (f)(6) of Rule 19b–4
thereunder.14
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 15 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 16
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has
ddrumheller on DSK120RN23PROD with NOTICES1
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change, along with a brief
description and 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. The Exchange
has satisfied this requirement.
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
14 17
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16:57 Mar 05, 2024
Jkt 262001
requested that the Commission waive
the 30-day operative delay so that the
proposal may become operative
immediately upon filing. The Exchange
states that a waiver of the operative
delay would permit the Exchange to
offer reservations under the Cabinet
Proximity Option program for cabinets
with greater power densities (e.g.,
greater than 10kW) without delay once
a fee is established for such cabinets.
The Commission believes that the
proposed rule change presents no novel
legal or regulatory issues and that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposed rule change
operative upon filing.17
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
BX–2024–007 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–2024–007. 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
17 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).
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
post all comments on the Commission’s
internet website (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 website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–BX–2024–007 and should be
submitted on or before March 27, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–04700 Filed 3–5–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99640; File No. SR–FINRA–
2024–004]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Designation
of Longer Period for Commission
Action on Proposed Rule Change To
Amend FINRA Rule 6730 (Transaction
Reporting) To Reduce the 15-Minute
TRACE Reporting Timeframe to One
Minute
February 29, 2024.
On January 11, 2024, the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
18 17
CFR 200.30–3(a)(12), (59).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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]]>Agencies
[Federal Register Volume 89, Number 45 (Wednesday, March 6, 2024)]
[Notices]
[Pages 16040-16042]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-04700]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99643; File No. SR-BX-2024-007]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Expand Its
Cabinet Proximity Option Program
February 29, 2024.
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 February 26, 2024, Nasdaq BX, Inc. (``BX'' 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to expand the Exchange's Cabinet Proximity
Option program.
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
Currently, the Exchange offers a Cabinet Proximity Option program
[[Page 16041]]
where, for a monthly fee, customers can obtain an option for future use
on available, unused cabinet space in proximity to their existing
equipment. Cabinets reserved under the Cabinet Proximity Option program
are unused cabinets that customers reserve for future use and can be
converted to a powered cabinet at the customer's request. Under the
program, customers can reserve up to maximum of 20 cabinets that the
Exchange endeavors to provide as close as reasonably possible to the
customer's existing cabinet space, taking into consideration power
availability within segments of the datacenter and the overall
efficiency of use of datacenter resources as determined by the
Exchange. Should reserved datacenter space be needed for use, the
reserving customer will have three business days to formally contract
with the Exchange for full payment for the reserved cabinet space in
contention or it will be reassigned. In making determinations to
require exercise or relinquishment of reserved space as among numerous
customers, the Exchange will take into consideration several factors,
including: proximity between available reserved cabinet space and the
existing space of a customer seeking additional space for actual
cabinet usage; a customer's ratio of cabinets in use to those reserved;
the length of time that a particular reservation(s) has been in place;
and any other factor that the Exchange deems relevant to ensure overall
efficiency in use of the datacenter space.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 34-62396 (June 28,
2010), 75 FR 38585 (July 2, 2010) (SR-BX-2010-012).
---------------------------------------------------------------------------
Currently, the Exchange offers reservations for low, medium,
medium/high, or high density cabinets under the Cabinet Proximity
Option program.\4\ The purpose of the proposed rule change is to offer
the Exchange's Cabinet Proximity Option program for cabinets with power
densities greater than 10 kW, in addition to those reservations
currently offered under the program.\5\ Although the Exchange has
offered the Cabinet Proximity Option program since 2010,\6\ the
Exchange has yet to offer reservations under the Cabinet Proximity
Option program for cabinets with power densities greater than 10 kW
(despite offering cabinets with power densities greater than 10 kW).
The Exchange now wishes to offer the Cabinet Proximity Option program
for these higher power density cabinets. Similar to the Exchange's
Cabinet Proximity Option program, the New York Stock Exchange LLC
(``NYSE'') offers ``PNU cabinets,'' which are reserved cabinets that
are not active and can be converted to powered, dedicated cabinets when
the user requests.\7\ NYSE's PNU cabinets are not limited to certain
density cabinets and NYSE charges a fee per kW for PNU cabinets.\8\
---------------------------------------------------------------------------
\4\ See General 8, Section 1(d). Low density cabinets are
cabinets with power densities less than or equal to 2.88 kilowatts
(``kW''). Medium density cabinets are cabinets with power densities
greater than 2.88 kW and less than or equal to 5 kW. Medium/High
density cabinets are cabinets with power densities greater than 5 kW
and less than or equal to 7 kW. High density cabinets are cabinets
with power densities greater than 7 kW and less than 10 kW. See
General 8, Section 1(a).
\5\ Currently, the Exchange offers Super High Density Cabinets
with power densities greater than 10 kW and less than or equal to
17.3 kW. See General 8, Section 1(a). In addition, the Exchange
intends to offer cabinets with new power densities in the future,
including power densities greater than 17.3 kW.
\6\ See Securities Exchange Act Release No. 34-62396 (June 28,
2010), 75 FR 38585 (July 2, 2010) (SR-BX-2010-012).
\7\ Due to heightened demand for power and cabinets, NYSE
established certain procedures related to PNU cabinet conversion and
restrictions on new PNU cabinet offerings. NYSE adopted a policy
that, if unallocated cabinet inventory is at or below 40 cabinets,
new PNU cabinets are not offered. However, when the unallocated
cabinet inventory is more than 40 cabinets, NYSE may continue to
offer PNU cabinets. See Securities Exchange Act Release No. 34-90732
(December 18, 2020), 85 FR 84443 (December 28, 2020). See also
Securities Exchange Act Release No. 34-91515 (April 8, 2021), 86 FR
19674 (April 14, 2021).
\8\ See NYSE Connectivity Fee Schedule, available at https://www.nyse.com/publicdocs/Wireless_Connectivity_Fees_and_Charges.pdf.
---------------------------------------------------------------------------
The Exchange offers the Cabinet Proximity Option program as a
convenience to customers. No firms are required to reserve cabinets via
the Cabinet Proximity Option program and it is only for those customers
that choose to collocate directly with the Exchange. Participants can
avoid reserving cabinets under this program (and the related fee) by
(1) collocating but not reserving space in advance of needing it; (2)
ordering cabinet space immediately and paying cabinet fees (without
reserving in advance); (3) collocating indirectly through a vendor to
defray costs; or (4) not collocating at all.
Implementation
The Exchange intends to submit a fee filing in the future to
establish related fees in the existing Cabinet Proximity Option Fees,
in General 8, Section 1(d). Implementation of the proposal described
herein to offer the Exchange's Cabinet Proximity Option program for
cabinets with power densities greater than 10 kW would coincide with
the subsequent fee filing.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\9\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\10\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest. The proposal would provide customers with the ability to
obtain an option for future use on available, unused cabinet space in
proximity to their existing equipment for those cabinets with power
densities greater than 10 kW. Customers are currently able to obtain an
option for future use on available, unused cabinet space in proximity
to their existing equipment for smaller cabinets (e.g., for cabinets
with power densities less than 10 kW). The proposal is consistent with
the Act because it would clarify, in conjunction with a subsequent fee
filing, that reservations under the Cabinet Proximity program are
available for cabinets with power densities greater than 10 kW. The
Cabinet Proximity Option program is comparable to PNU cabinets offered
by NYSE, which may be offered for cabinets of all power densities (when
the unallocated cabinet inventory is more than 40 cabinets).\11\
Furthermore, the proposal would benefit the public interest by
providing customers more reservation options to choose from, thereby
enhancing their ability to tailor their colocation operations to the
requirements of their business operations.\12\ As noted above, the
Exchange offers the Cabinet Proximity Option program as a convenience,
not a necessity, and it is only for those customers that choose to
collocate directly with the Exchange. Participants can avoid reserving
cabinets under this program (and the related fee) by (1) collocating
but not reserving space in advance of needing it; (2) ordering cabinet
space immediately and paying cabinet fees (without reserving in
advance); (3) collocating indirectly through a vendor to defray costs;
or (4) not collocating at all.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ Supra note 7.
\12\ The Exchange believes that customer demand for power and
cabinets will continue. The Exchange is currently working to expand
the amount of power and number of cabinets available in colocation.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
[[Page 16042]]
Nothing in the proposal imposes any burden on the ability of other
exchanges to compete. The Exchange operates in a highly competitive
market in which exchanges and other vendors offer colocation services
as a means to facilitate the trading and other market activities of
those market participants who believe that colocation enhances the
efficiency of their operations. The Cabinet Proximity Option program is
comparable to PNU cabinets offered by NYSE, as discussed above.
Nothing in the Proposal burdens intra-market competition because
the Cabinet Proximity Option program is available to any customer and
customers that wish to make reservations pursuant to the Cabinet
Proximity Option program can do so on a non-discriminatory basis. Use
of any colocation service is completely voluntary, and each market
participant is able to determine whether to use colocation services
based on the requirements of its business operations.
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
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \13\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and 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.
The Exchange has satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \15\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposal may become operative immediately upon filing. The
Exchange states that a waiver of the operative delay would permit the
Exchange to offer reservations under the Cabinet Proximity Option
program for cabinets with greater power densities (e.g., greater than
10kW) without delay once a fee is established for such cabinets. The
Commission believes that the proposed rule change presents no novel
legal or regulatory issues and that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposed rule change operative upon
filing.\17\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ 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).
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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 [email protected]. Please include
file number SR-BX-2024-007 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-2024-007. 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 website (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 website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-BX-2024-007 and should be
submitted on or before March 27, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-04700 Filed 3-5-24; 8:45 am]
BILLING CODE 8011-01-P
