69722 Federal Register / Vol. 75, No. 219 / Monday, November 15, 2010 / Notices 

8 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4For the purposes of this filing, the term ‘‘Users’’ 

includes any ‘‘ATP Holder,’’ as that term is defined 

in NYSE Amex (Options) Rule 900.2NY(4) and any 

‘‘Sponsored Participant,’’ as that term is defined in 

NYSE Amex (Options) Rule 900.2NY(77). 

5The Commission has approved proposed rule 

filings submitted by the Exchange (with respect to 

its equities business) and the Exchange’s affiliate, 

the New York Stock Exchange LLC to offer the same 

co-location services from the Mahwah data center 

at the same prices. See Securities Exchange Act 

Release No. 62961 (September 21, 2010), 75 FR 

59299 (September 27, 2010) (SR–NYSE–2010–56); 

Securities Exchange Act Release No. 62960 

(September 21, 2010) 75 FR 59310 (September 27, 

2010) (SR–NYSEAmex–2010–80). 

6The Exchange will announce the effective date 

of the fees set forth in this proposed rule change 

through a notice to Users. 

7The Exchange also allows Users, for a monthly 

fee (i.e., 40% of the applicable monthly per kW fee), 

to obtain an option for future use on available, 

unused cabinet space in proximity to their existing 

cabinet space. Specifically, Users may reserve 

cabinet space of up to 30% of the cabinet space 

under contract, which the Exchange will endeavor 

to provide as close as reasonably possible to the 

User’s existing cabinet space, taking into 

consideration power availability within segments of 

the data center and the overall efficiency of use of 

data center resources as determined by the 

Exchange. (If the 30% measurement results in a 

fractional cabinet, the cabinet count is adjusted up 

to the next increment.) If reserved cabinet space 

becomes needed for use, the reserving User will 

have 30 business days to formally contract with the 

Exchange for full payment for the reserved cabinet 

space needed or the space will be reassigned. 

8As set forth below, pricing for LCN access is 

provided on a stand-alone basis and on a bundled 

basis in combination with SFTI connections and 

optic connections to outside access centers and 

within the data center. The SFTI and optic 

connections are not related to the co-location 

services. 

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 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 

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 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–NASDAQ–2010–138, and 

should be submitted on or before 

December 6, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28548 Filed 11–12–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63274; File No. SR– 

NYSEAmex–2010–101] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Its Options 

Fee Schedule To Reflect Fees Charged 

for Co-location Services 

November 8, 2010. 

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 October 

26, 2010, NYSE Amex LLC (‘‘NYSE 

Amex’’ or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory 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 its 

Options Fee Schedule to reflect fees 

charged for co-location services, as 

described more fully herein. The text of 

the proposed rule change is available at 

the Exchange, the Commission’s Public 

Reference Room, on the Commission’s 

Web site at http://www.sec.gov, and 

http://www.nyse.com. 

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 its 

Options Fee Schedule to identify fees 

pertaining to co-location services, which 

allow Users 4 of the Exchange to rent 

space on premises controlled by the 

Exchange in order that they may locate 

their electronic servers in close physical 

proximity to the Exchange’s trading and 

execution systems.5 The Exchange plans 

to offer these co-location services 

beginning in January 2011 at its data 

center in Mahwah New Jersey.6 The 

Exchange will offer space at the data 

center in cabinets with power usage 

capability of either four or eight 

kilowatts (kW).7 In addition, the 

Exchange will offer Users services 

related to co-location, including cross 

connections, equipment and cable 

installation, and remote ‘‘hot-hands’’ 

services. 

Users that receive co-location services 

from the Exchange will not receive any 

means of access to the Exchange’s 

trading and execution systems that is 

separate from or superior to that of 

Users that do not receive co-location 

services. All orders sent to the Exchange 

enter the Exchange’s trading and 

execution systems through the same 

order gateway regardless of whether the 

sender is co-located in the Exchange’s 

data center or not. In addition, colocated Users do not receive any market 

data or data service product that is not 

available to all Users. However, Users 

that receive co-location services 

normally would expect reduced 

latencies in sending orders to the 

Exchange and receiving market data 

from the Exchange. In addition, colocated Users have the option of 

obtaining access to the Exchange’s 

Liquidity Center Network (‘‘LCN’’), a 

local area network available in the data 

center.8 Co-located Users have the 

option of using either the LCN or the 

Exchange’s Secure Financial 

Transaction Infrastructure (‘‘SFTI’’) 

network, to which all Users have access. 

Because it operates as a local area 

network within the data center, the LCN 

provides reduced latencies in 

comparison with SFTI. Other than the 


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Federal Register / Vol. 75, No. 219 / Monday, November 15, 2010 / Notices 69723 

reduced latencies, the Exchange 

believes that there are no material 

differences in terms of access to the 

Exchange between Users that choose to 

co-locate and those that do not. SFTI 

and LCN both provide Users with access 

to the Exchange’s trading and execution 

systems and to the Exchange’s 

proprietary market data products. User 

access to non-proprietary market data 

products is available through SFTI and 

not through LCN. 

The Exchange offers co-location space 

based on availability and the Exchange 

believes that it has sufficient space in 

the Mahwah data center to 

accommodate current demand on an 

equitable basis for the foreseeable 

future. In addition, the Exchange 

believes that any difference among the 

positions of the cabinets within the data 

center does not create any material 

difference to co-location Users in terms 

of access to the Exchange. 

The following charts identify the 

proposed tiered fees for co-location and 

the proposed fees for related services. 

Initial fee per cabinet $5,000 

Number of kWs Per kW fee monthly 

4–8 $1,200 

12–20 1,050 

24–40 950 

44 + 900 

Type of service Description Amount of charge 

LCN Access ........................................................ 1 GB Circuit ..................................................... $6,000 per connection initial charge plus 

$5,000 monthly per connection. 

LCN Access ........................................................ 10 GB Circuit ................................................... $10,000 per connection. 

Bundled Network Access, Option 1 (2 LCN connections, 2 SFTI connections, and 2 optic 

connections to outside access center).

1 GB Bundle .................................................... $25,000 initial charge plus $13,000 monthly 

charge. 

10 GB Bundle .................................................. $50,000 initial charge plus $47,000 monthly 

charge. 

Bundled Network Access, Option 2 (2 LCN connections, 2 SFTI connections, 1 optic connection to outside access center, and 1 optic 

connection in data center).

1 GB Bundle .................................................... $26,000 initial charge plus $16,000 monthly 

charge. 

10 GB Bundle .................................................. $50,000 initial charge plus $54,250 monthly 

charge. 

Bundled Network Access, Option 3 (2 LCN 

Connections, 2 SFTI connections, and 2 optic 

connections in data center).

1 GB Bundle .................................................... $27,500 initial charge plus $19,000 monthly 

charge. 

10 GB Bundle .................................................. $50,000 initial charge plus $61,500 monthly 

charge. 

Data Center Fiber Cross Connect ...................... Cross connect between a single User’s cabinets within the data center.$500 per unit initial charge plus $500 monthly 

per unit. 

Initial Install Services (Required per cabinet) .... Includes initial racking of equipment in cabinet 

and provision of up to 10 cables (4 hrs).

$800 per cabinet. 

Hot Hands Service: Normal Business Hours, 

Scheduled (Note: Hot Hands Service allows 

Users to use on-site data center personnel to 

maintain User equipment.).

Applies on non-NYSE Amex holidays, Monday to Friday, 9 am to 5 pm if scheduled at 

least 1 day in advance.

$200 per hour. 

Hot Hands Service: Extended Business Hours, 

Scheduled.

Applies Monday to Friday 5 pm to 9 am, 

NYSE Amex holidays, and weekends if 

scheduled at least 1 day in advance.

$275 per hour. 

Hot Hands Service: Normal Business Hours, 

Expedited.

Applies on non-NYSE Amex holidays, Monday to Friday, 9 am to 5 pm if NOT scheduled at least 1 day in advance.$250 per hour. 

Hot Hands Service: Extended Business Hours, 

Expedited.

Applies Monday to Friday 5 pm to 9 am, 

NYSE Amex holidays, and weekends if 

NOT scheduled at least 1 day in advance. 

$325 per hour. 

Rack and Stack .................................................. Installation of one server in User’s cabinet. 

Service encompasses handling, unpacking, 

tagging, and installation of the server as 

well as 1 network connection within the 

User rack.

$200 per server. 

Power Recycling ................................................. Reboot of power on one server or switch as 

well as observing and reporting on the status of the reboot back to the User.

$50 per reset. 

Shipping and Receiving ..................................... Receipt of one shipment of goods at data 

center from User/supplier. Includes coordination of shipping and receiving.

$100 per shipment. 

Badge Request ................................................... Request for provision of a permanent data 

center site access badge for a User representative.

$50 per badge. 

External Cabinet Cable Tray .............................. Engineer, furnish and install Rittal 5′′ H X 12′′ 

W cable tray on cabinet.

$400 per tray. 

Custom External Cabinet Cable Tray ................ Engineer, furnish and install 4′′ H V 24′′ W 

custom basket cable tray above client’s 

cabinet rows.

$100 per linear foot. 

Install and Document Cable ............................... Labor charges to install and document the fitting of a cable(s) in a User’s cabinet(s) in 

excess of the 10 copper cables included in 

the cabinet installation fee.

$200 per hour. 


srobinson on DSKHWCL6B1PROD with NOTICES
69724 Federal Register / Vol. 75, No. 219 / Monday, November 15, 2010 / Notices 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(4) and 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78s(b)(3)(A)(iii). 12 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 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 Commission notes that the 

Exchange satisfied this five-day pre-filing 

requirement. 

13For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

Type of service Description Amount of charge 

Equipment Maintenance Call Escalation ............ Hardware maintenance-break fix services 

available through NYSE arrangement with 

Delta Computer Group.

$100 per call. 

Visitor Security Escort ........................................ NYSE employee escort, which is required during User visits to the data center. (Note: all 

User representatives are required to have a 

visitor security escort during visits to the 

data center, including User representatives 

who have a permanent data center site access badge.).

$75 per hour. 

Technician Support Service—Non Emergency .. Network technician equipped to support User 

network troubleshooting activity and to provide all necessary testing instruments to 

support the User request. Prior day notice 

is required.

$200 per hour. 

Technician Support Service—Emergency .......... Network technician equipped to support User 

network troubleshooting activity and to provide all necessary testing instruments to 

support the User request. Two hour notice 

is required.

$325 per hour. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),9 in general, and Sections 6(b)(4) 

and 6(b)(5), of the Act,10 in particular, 

in that it is designed to (i) provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

members and other persons using its 

facilities, and (ii) prevent fraudulent 

and manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system. The Exchange believes that the 

proposed changes to the Schedule are 

equitable in that they apply fees for 

comparable co-location services 

uniformly to our Users. Moreover, the 

Exchange believes that, as described 

herein, access to its market is offered on 

fair and non-discriminatory terms. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 11 and Rule 

19b–4(f)(6) thereunder.12 Because the 

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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest. The 

Commission notes that the co-location 

fees sought to be codified here are based 

on filings by the Exchange and the 

Exchange’s affiliate, the New York Stock 

Exchange LLC, which have already been 

approved by the Commission, and that 

accelerated approval of the co-location 

fees will ensure that the co-location 

services and fees are made available to 

all interested parties without delay. For 

this reason, the Commission designates 

the proposed rule change as operative 

upon filing.13

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 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–NYSEAmex–2010–101 on 

the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 219 / Monday, November 15, 2010 / Notices 69725 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(1). 

5See Securities Exchange Act Release No. 63032 

(October 4, 2010), 75 FR 62439 (October 8, 2010) 

(Order Approving File No. SR–FINRA–2010–043). 

6See Securities Exchange Act Release No. 61595 

(February 26, 2010), 75 FR 11232 (March 10, 2010). 

7See Securities Exchange Act Release No. 63247 

(November 4, 2010). 

8 15 U.S.C. 78o–3(b)(6). 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSEAmex–2010–101. 

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 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 

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 

a.m. and 3 p.m. Copies of such 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– 

NYSEAmex–2010–101 and should be 

submitted on or before December 6, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28607 Filed 11–12–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63277; File No. SR–FINRA– 

2010–058] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Delay the Effective 

Date of the Changes to the FINRA 

Trade Reporting and Order Audit Trail 

System Rules Approved in SR–FINRA– 

2010–043 

November 8, 2010. 

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 November 

5, 2010, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) 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 

substantially prepared by FINRA. 

FINRA has designated the proposed rule 

change as ‘‘constituting a stated policy, 

practice, or interpretation with respect 

to the meaning, administration, or 

enforcement of an existing rule’’ under 

Section 19(b)(3)(A)(i) of the Act 3 and 

Rule 19b–4(f)(1) thereunder,4 which 

renders the proposal effective upon 

receipt of this filing by the Commission. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing a rule change to 

delay the effective date of the changes 

to the FINRA trade reporting and Order 

Audit Trail System (‘‘OATS’’) rules as 

proposed in SR–FINRA–2010–043 and 

approved by the SEC on October 4, 

2010.5 The new effective date will be 

the new compliance date of the 

amendments to SEC Regulation SHO. 

The proposed rule change would not 

make any changes to the text of FINRA 

rules. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

FINRA 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. FINRA 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 

On February 26, 2010, the SEC 

adopted changes to SEC Regulation SHO 

with a compliance date of November 10, 

2010.6 On November 4, 2010, the SEC 

delayed the compliance date of these 

amendments to SEC Regulation SHO 

until February 28, 2011.7

On August 6, 2010, FINRA filed a 

proposed rule change, including 

amendments to FINRA’s trade reporting 

and OATS rules consistent with the 

amendments to SEC Regulation SHO 

(SR–FINRA–2010–043) (the ‘‘Short 

Exempt Filing’’). The Short Exempt 

Filing was approved by the Commission 

on October 4, 2010 with an effective 

date of November 10, 2010. In light of 

the delay of the compliance date for the 

amendments to SEC Regulation SHO, 

FINRA is proposing to likewise delay 

the effective date of the FINRA 

amendments proposed in the Short 

Exempt Filing until the new compliance 

date of SEC Regulation SHO. 

FINRA has filed the proposed rule 

change for immediate effectiveness. The 

implementation date will be the new 

compliance date of SEC Regulation 

SHO. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,8 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade and, in 

general, to protect investors and the 

public interest. FINRA believes that 

delaying the effective date of the 


srobinson on DSKHWCL6B1PROD with NOTICES