6746 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 

6 15 U.S.C. 78s(b)(3)(A)(iii). 

7 17 CFR 240.19b–4(f)(6). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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 the pre-filing requirement. 

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6)(iii). 

12For 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). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 6 and Rule 

19b–4(f)(6) thereunder.7 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 8 and Rule 19b–4(f)(6)(iii) 

thereunder.9

A proposed rule change filed under 

Rule 19b–4(f)(6) 10 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),11 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission notes that the 

proposed rule change is consistent with 

existing FINRA rules, and does not raise 

any new substantive issues. For these 

reasons, the Commission believes that 

waiver of the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because it will promote greater 

harmonization between NYSE Amex 

Option Communication rules and the 

related FINRA rules. Therefore, the 

Commission designates the proposed 

rule change effective and operative 

upon filing.12

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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–2010–04 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–NYSEAmex–2010–04. 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 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 the filing will 

also be available for inspection and 

copying at the Exchange’s principal 

office and on its Internet Web site at 

http://www.nyse.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–NYSEAmex–2010–04 and 

should be submitted on or before March 

3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2952 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61487; File No. SR–BX– 

2010–012] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

of Proposed Rule Change To Codify 

Prices for Co-Location Services 

February 3, 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 January 

29, 2010, NASDAQ OMX BX, Inc. (‘‘BX’’ 

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 

substantially 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 

NASDAQ OMX BX is filing with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

to codify pricing for co-location 

services. The text of the proposed rule 

change is available at http:// 

nasdaqomxbx.cchwallstreet.com, on the 

Commission’s Web site at http:// 

www.sec.gov, at the Exchange’s 

principal office, and at the 

Commission’s Public Reference Room. 

BX will implement the proposed rule 

change on the first day of the month 


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Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 6747 

3Currently, NASDAQ OMX BX provides its 

current co-location services through data centers 

located in the New York City and Mid-Atlantic 

areas. 

4NASDAQ OMX BX is implementing a Cabinet 

Proximity Option program where, for a monthly fee, 

customers can obtain an option for future use on 

available currently unused cabinet floor space in 

proximity to their existing equipment. Under the 

program, customers can reserve up to maximum of 

20 cabinets which the Exchange will endeavor 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. 5These fees are for telecommunications 

connectivity only. Market Data fees are charged 

independently by NASDAQ OMX BX and other 

exchanges. 6Currently, the Exchange makes available to colocated customers a 10Gb fiber connection. The 

Exchange will likewise make available a 10Gb fiber 

connection to other customers in the first quarter 

of 2010. The Exchange has not received any 

requests for 10Gb fiber connections from firms that 

are not co-located. 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(5). 

immediately following Commission 

approval (or on the date of approval, if 

on the first business day of a month). 

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 codify 

fees for its existing co-location services. 

Co-location services are a suite of 

hardware, power, telecommunication, 

and other ancillary products and 

services that allow market participants 

and vendors to place their trading and 

communications equipment in close 

physical proximity to the quoting and 

execution facilities of the Exchange. BX 

provides co-location services and 

imposes fees through Nasdaq 

Technology Services LLC and pursuant 

to agreements with the owner/operator 

of its data center where both the 

Exchange’s quoting and trading facilities 

and co-located customer equipment are 

housed.3 Users of co-location services 

include private extranet providers, data 

vendors, as well as the Exchange 

members and non-members. The use of 

co-location services is entirely 

voluntary. 

As detailed in the proposed colocation fee schedule, the Exchange 

imposes a uniform, non-discriminatory 

set of fees for various co-location 

services, including: Fees for cabinet 

space usage, or options for future space 

usage;4 installation and related power 

provision for hosted equipment; 

connectivity among multiple cabinets 

being used by the same customer as well 

as customer connectivity to the 

Exchange and telecommunications 

providers; 5 and related maintenance 

and consulting services. Fees related to 

cabinet and power usage are 

incremental, with additional charges 

being imposed based on higher levels of 

cabinet and/or power usage, the use of 

non-standard cabinet sizes or special 

cabinet cooling equipment, or the reselling of cabinet space. 

Co-location customers are not 

provided any separate or superior 

means of direct access to the Exchange 

quoting and trading facilities. Nor does 

the Exchange offer any separate or 

superior means of access to the 

Exchange quoting and trading facilities 

as among co-location customers 

themselves within in [sic] the 

datacenter. Likewise, BX does not make 

available to co-located customers any 

market data or data feed product or 

service for data going into, or out of, the 

Exchange systems that is not likewise 

available to all the Exchange members.6

Finally, all orders sent to the Exchange 

market enter the marketplace through 

[sic] same central system quote and 

order gateway regardless of whether the 

sender is co-located in the Exchange 

data center or not. In short, the 

Exchange has created no special market 

technology or programming that is 

available only to co-located customers 

and the Exchange has organized its 

systems to minimize, to the greatest 

extent possible, any advantage for one 

customer versus another. 

Co-location services are generally 

available to all qualified market 

participants who desire them. With the 

exception of customers participating in 

the Cabinet Proximity Option program, 

the Exchange allocates cabinets and 

power on a first-come/first-serve basis. 

Should available cabinet inventory 

shrink to 40 cabinets or less, the 

Exchange will limit new cabinet orders 

to a maximum of 4 cabinets each, and 

all new cabinets will be limited to a 

maximum power level of 5kW. Should 

available cabinet inventory shrink to 

zero, the Exchange will place firms 

seeking services on a waiting list based 

on that date the Exchange receives 

signed orders for the services from the 

firm. In order to be placed on the 

waiting list, a firm must have utilized 

all existing cabinets they already have 

in the datacenter. Once on the list, the 

firms, on a rolling basis, will allocated 

a single 5kW cabinet each time one 

becomes available. After receiving a 

cabinet, the firm will move to the 

bottom of the waiting list. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,7

in general, and with Sections 6(b)(5) of 

the Act,8 in particular, in that the 

proposal is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, 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. In 

particular, the filing codifies and makes 

transparent the uniform fees imposed by 

the Exchange’s technology subsidiary 

for co-location services. 

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. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 


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6748 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 

9 17 C.F.R. 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3NASDAQ has provided co-location services at 

various data centers since approximately 2004. 

Currently, the Exchange provides its current colocation services through data centers located in the 

New York City and Mid-Atlantic areas. 

4NASDAQ is implementing a Cabinet Proximity 

Option program where, for a monthly fee, 

customers can obtain an option for future use on 

available currently unused cabinet floor space in 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

A. By order approve such proposed 

rule change, or 

B. institute proceedings to determine 

whether the proposed rule change 

should be 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, as amended, 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–BX–2010–012 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–BX–2010–012. 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–BX– 

2010–012 and should be submitted on 

or before March 3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2864 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61488; File No. SR– 

NASDAQ–2010–019] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change To 

Codify Prices for Co-Location Services 

February 3, 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 January 

29, 2010, The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ 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 substantially prepared by 

NASDAQ. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

NASDAQ is filing with the Securities 

and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

to codify pricing for co-location 

services. The text of the proposed rule 

change is available at http:// 

nasdaqomx.cchwallstreet.com/, on the 

Commission’s Web site at http:// 

www.sec.gov, at the Exchange’s 

principal office, and at the 

Commission’s Public Reference Room. 

NASDAQ will implement the proposed 

rule change on the first day of the 

month immediately following 

Commission approval (or on the date of 

approval, if on the first business day of 

a month). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

NASDAQ 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. 

NASDAQ 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 

NASDAQ is proposing to codify fees 

for its existing co-location services. Colocation services are a suite of hardware, 

power, telecommunication, and other 

ancillary products and services that 

allow market participants and vendors 

to place their trading and 

communications equipment in close 

physical proximity to the quoting and 

execution facilities of the Exchange and 

other NASDAQ OMX Group, Inc. 

markets. The Exchange provides colocation services and imposes fees 

through its wholly-owned subsidiary 

Nasdaq Technology Services LLC and 

pursuant to agreements with the owner/ 

operator of its data center where both 

the Exchange’s quoting and trading 

facilities and co-located customer 

equipment are housed.3 Users of colocation services include private 

extranet providers, data vendors, as well 

as NASDAQ Exchange members and 

non-members. The use of co-location 

services is entirely voluntary. 

As detailed in the proposed colocation fee schedule, NASDAQ 

imposes a uniform, non-discriminatory 

set of fees for various co-location 

services, including: Fees for cabinet 

space usage, or options for future space 

usage;4 installation and related power 


sroberts on DSKD5P82C1PROD with NOTICES