Federal Register / Vol. 76, No. 49 / Monday, March 14, 2011 / Notices 13683 

17 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2The Commission has modified the text of the 

summaries prepared by FICC. 

3MBSD also executes an evening pass (also 

referred to as the ‘‘PM Pass’’) at 8 p.m. (EST) that 

will remain unchanged. On days where MBSD 

executes its TBA Netting cycle, it immediately 

follows the completion of the morning pass. 

4 15 U.S.C. 78q–1. 

5 15 U.S.C. 78s(b)(3)(A)(iii). 

6 17 CFR 240.19b–4(f)(4). 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room on official business 

days between the hours of 10 a.m. and 

3 p.m. Copies of such filing also will be 

available for inspection and copying at 

the principal offices of the Exchange. 

All comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–BYX–2011–005, and should 

be submitted on or before April 4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5774 Filed 3–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64053; File No. SR–FICC– 

2011–01] 

Self-Regulatory Organizations; The 

Fixed Income Clearing Corporation; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Notify Participants That the 

Mortgage Backed Securities Division 

Intends To Move the Time at Which It 

Runs Its Daily Morning Pass 

March 8, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

March 2, 2011, the Fixed Income 

Clearing Corporation (‘‘FICC’’) 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 primarily by FICC. The 

Commission is publishing this notice to 

solicit comments from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The purpose of the proposed rule 

change is to notify participants that the 

Mortgage Backed Securities Division 

(‘‘MBSD’’) intends to move the time at 

which it runs its daily morning pass 

(also referred to as the ‘‘AM Pass’’) from 

10:30 a.m. to 2 p.m. (EST). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

FICC 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. FICC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of such statements.2

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The purpose of this filing is to notify 

participants that MBSD intends to move 

the time at which it runs its daily 

morning pass from 10:30 a.m. to 2 p.m. 

(EST).3 The proposed change to 2 p.m. 

for the morning pass will allow more 

trades to be included into the TBA Net 

and therefore will assist in reducing the 

amount of fails in the market in addition 

to reducing the related operational risk. 

The above change is being made at the 

request of The Securities Industry and 

Financial Markets Association 

(‘‘SIFMA’’) MBS Operations Committee. 

In addition, MBSD reviewed the 

potential change with member firms not 

represented on the SIFMA Committee, 

and no objections were raised. 

The effective date of this change will 

be announced to MBSD participants by 

Important Notice. 

FICC believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act 4

and the rules and regulations 

thereunder applicable to FICC because it 

should provide for the prompt and 

accurate clearance and settlement of 

securities transactions by including a 

greater proportion of transactions in the 

TBA netting cycle. Additionally, the 

proposed rule change should result in 

fewer fails, and reduced operational 

risk. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

FICC does not believe that the 

proposed rule change will have any 

impact on or impose any burden on 

competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments relating to the 

proposed rule change have been 

solicited or received. FICC will notify 

the Commission of any written 

comments received by FICC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective upon filing pursuant to Section 

19(b)(3)(A)(iii) of the Act 5 and Rule 

19b–4(f)(4) 6 thereunder because the 

proposed rule effects a change in an 

existing service that (i) does not 

adversely affect the safeguarding of 

securities or funds in the custody or 

control of FICC or for which it is 

responsible and (ii) does not 

significantly affect the respective rights 

or obligations of FICC or persons using 

the service. At any time within sixty 

days of the filing of such 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 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 (http://www.sec.gov/ 

rules/sro.shtml) or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–FICC–2011–01 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–FICC–2011–01. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

mstockstill on DSKH9S0YB1PROD with NOTICES

13684 Federal Register / Vol. 76, No. 49 / Monday, March 14, 2011 / Notices 

7 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The P, C, and number designations reflect 

differences in the shape of a cord’s plug as well a 

cord’s power throughput capability. 

4 15 U.S.C. 78f. 

5 15 U.S.C. 78f(b)(4). 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

changes 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 Section, 100 F Street, NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of such filings 

also will be available for inspection and 

copying at the principal office of FICC 

and on FICC’s Web site at http:// 

www.ficc.com. 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–FICC– 

2011–01 and should be submitted on or 

before April 4, 2011. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5773 Filed 3–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64061; File No. SR–Phlx– 

2011–30] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify Fees 

for Co-Location Services 

March 8, 2011. 

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 1, 

2011, NASDAQ OMX PHLX LLC 

(‘‘PHLX’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by 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 

pricing for co-location services. The 

Exchange will implement the proposed 

change on March 1, 2011. The text of 

the proposed rule change is available at 

http:// 

nasdaqomxphlx.cchwallstreet.com/ 

nasdaqomxphlx/phlx/, at the 

Exchange’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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is amending its colocation fee schedule to: (1) Institute a 

monthly fee of $300 for 

telecommunications and inter-cabinet 

cross connections; and (2) fees for 

additional patch and power cords. 

Under the proposal, co-location 

customers having telecommunications 

cross-connections to approved 

telecommunication carriers in the 

datacenter will be assessed a monthly 

fee of $300 per connection. For the 

convenience of its customers, the 

Exchange allows telecommunications 

carriers to maintain a presence in the 

data center free of charge. In addition, 

inter-cabinet connections to other 

customers in the datacenter will be 

likewise assessed a $300 per-month, 

per-connection fee. These fees will only 

be assessed on the customer that 

requested the initiation of the 

connection, and cross-connections 

between cabinets being used by the 

same customer will not be assessed the 

fee. 

The Exchange is also proposing to 

introduce fees for patch and power 

cords. Under the proposal, the Exchange 

will maintain an inventory of patch 

cords (ethernet and fiber optic cables) 

and power cords at the datacenter and 

make them available to customers 

should they desire to purchase them. 

The proposed fees for patch cords vary 

with their capabilities and length, with 

copper patch cord being charged at 

$4.50 + $.50 per foot; multi-mode fiber 

patch cord being priced at $20 + $1.50 

per-meter, and single-mode fiber patch 

cord priced at $24 + $.75 per-meter. For 

power cords, the Exchange proposes to 

charge $5 for 5–15P—C13 cords of two 

to four feet in length, and $10 for C14– 

C19 cords also of two to four feet in 

length.3 The Exchange is making the 

cords available as a convenience to 

customers, and notes that use of 

Exchange-provided patch and power 

cords is completely voluntary, and that 

such cords may be freely obtained by 

[sic] other vendors for use by customers 

in the datacenter. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,4

in general, and with Section 6(b)(4) of 

the Act,5 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and issuers and other 

persons using any facility or system 

which the Exchange operates or 

controls. 

The Exchange operates in a highly 

competitive market, in which exchanges 

offer co-location services as a means to 

facilitate the trading activities of those 

members who believe that co-location 

enhances the efficiency of their trading. 

Accordingly, fees charged for colocation services are constrained by the 

active competitive [sic] for the order 

flow of such members. If a particular 

exchange charges excessive fees for colocation services, affected members will 

opt to terminate their co-location 

arrangements with that exchange, and 

adopt a possible range of alternative 

strategies, including co-locating with a 

different exchange, placing their servers 

in a physically proximate location 

outside the exchange’s data center, or 

pursuing trading strategies not 

dependent upon co-location. 

Accordingly, the exchange charging 

excessive fees would stand to lose not 

only co-location revenues but also 

revenues associated with the execution 

mstockstill on DSKH9S0YB1PROD with NOTICES