Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices 78795 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(4). 

9 15 U.S.C. 78s(b)(3). 

10 17 CFR 240.19b-4(f)(2). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Connection service type Annual fee per 

physical port 

1 Gb Copper ......................... $5,000 

1 Gb Fiber ............................ 7,500 

10 Gb Fiber .......................... 10,000 

Beginning January 1, 2011, the 

Exchange proposes to amend these 

physical port fees to offer Members and 

non-members the option of being 

charged month to month. The fees will 

be 20% higher on a monthly basis to 

offset increased administrative costs 

associated with processing monthly 

payments. The proposed monthly fees 

based on connectivity service type are 

as follows: 

Connection service type Annual fee per 

physical port 

1 Gb Copper ......................... $500 

1 Gb Fiber ............................ 750 

10 Gb Fiber .......................... 1,000 

The Exchange will implement the 

proposed rule change on January 1, 

2011. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of the Act,7 in general, 

and furthers the objectives of Section 

6(b)(4),8 in particular, as it is designed 

to provide for the equitable allocation of 

reasonable dues, fees and other charges 

among its Members and other persons 

using its facilities. The Exchange 

believes that its proposed logical and 

physical port fees are reasonable in light 

of the benefits to members and nonmembers. In addition, the Exchange 

believes that its fees are equitably 

allocated among its constituents based 

upon the number of access ports that 

they require to submit orders to the 

Exchange. Furthermore, the fees 

associated with logical and physical 

ports will be equitably allocated to all 

constituents as the fees will be uniform 

in application to all Members and nonmembers. Finally, the Exchange believes 

that the fees obtained will enable it to 

cover its infrastructure costs associated 

with allowing Members and nonmembers to establish logical and 

physical ports to connect to the 

Exchange’s systems and continue to 

maintain and improve its infrastructure, 

market technology, and services. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

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

the Act 9 and Rule 19b–4(f)(2) 10

thereunder. At any time within 60 days 

of the filing of such 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–EDGX–2010–21 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–EDGX–2010–21. 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 

will also 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 No. SR–EDGX– 

2010–21 and should be submitted on or 

before January 6, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31627 Filed 12–15–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63521; File No. SR–BX– 

2010–089] 

Self-Regulatory Organizations; The 

NASDAQ OMX BX Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Change 

Implementation Date for Direct Access 

Fees 

December 10, 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 December 9, 2010, 

The NASDAQ BX OMX, Inc. LLC (‘‘BX’’ 

or ‘‘The 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 self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 


srobinson on DSKHWCL6B1PROD with NOTICES
78796 Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices 

3Securities Exchange Act Release No. 63442 

(December 6, 2010) (SR–BX–2010–081). 

4 Id. 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(4). 9 15 U.S.C. 78s(b)(3)(a)(ii). 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes a rule change 

to assess ‘‘direct access’’ fees on 

customers receiving Exchange data 

within the Exchange’s co-location 

facility beginning on January 1, 2011, 

rather than December 1, 2010. Direct 

access fees applicable to such customers 

were Noticed [sic] in SR–BX–2010– 

081,3 immediately effective as of the 

filing on November 24, 2010, with an 

implementation date of December 1, 

2010. In order to assure complete and 

clear prior notification to all affected 

customers, the Exchange is changing the 

implementation date of the fee schedule 

change to January 1, 2011. 

This change does not require a change 

in the language of the rule itself. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, BX 

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. BX 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

In SR–BX–2010–081,4 the Exchange 

amended its fee schedule to correct an 

anomaly that effectively exempted 

certain customers residing within the 

Exchange’s co-location facility from 

paying a monthly fee for direct access to 

Exchange data, while customers that 

receive data from an extranet and reside 

outside the co-location facility are 

assessed the fee. The inequity was a 

result of the definition of ‘‘direct access’’ 

in the fee schedule, which did not by its 

terms clearly apply to data feeds 

provided to customers through 

distributors located within the colocated facility. That rule filing 

expanded the definition of ‘‘direct 

access’’ and operated to assess the same 

direct access fee on all firms that have 

access to the Exchange’s raw data feeds, 

whether co-located or not. 

The Notice of Filing and Immediate 

Effectiveness for this fee contained an 

implementation date of December 1, 

2010. The effort to identify and notify 

all customers potentially affected by this 

rule change, however, has proven more 

time-consuming than expected. To 

assure that all customers that will be 

assessed the direct access fee have 

adequate prior notification, the 

Exchange is delaying implementation of 

the fee until January 1, 2011. None of 

the co-located customers that would 

have been newly subject to the direct 

access fee during December 2010 as a 

result of the fee amendment in SR–BX– 

2010–081 will be charged this fee 

during December 2010. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,5

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

the Act,6 in particular. 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. The filing ensures clear 

and complete prior notification to 

customers affected by a fee change that 

permits transparent, uniform fees for 

direct access to Exchange data for all 

customers, whether co-located or not. 

In addition, the Exchange believes 

that the proposed rule change is 

consistent with the provisions of 

Section 6 of the Act,7 in general, and 

with Section 6(b)(4) of the Act,8 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 [sic] 

Exchange operates or controls. The 

Exchange notes that delayed 

implementation of the amendment will 

best serve the interests of customers 

affected by the fee change. 

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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.9 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

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

Number SR–BX–2010–089 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–BX–2010–089. 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 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices 78797 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 63443 

(December 6, 2010) (SR–Phlx–2010–170). 

4 Id. 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(4). 

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– 

2010–089 and should be submitted on 

or before January 6, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31628 Filed 12–15–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63522; File No. SR–Phlx2010–175] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX LLC To Change 

Implementation Date for Direct Access 

Fees 

December 10, 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 December 

9, 2010, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or the ‘‘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 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 a rule change 

to assess ‘‘direct access’’ fees on 

customers receiving Exchange data 

within the Exchange’s co-location 

facility beginning on January 1, 2011, 

rather than December 1, 2010. Direct 

access fees applicable to such customers 

were Noticed [sic] in SR–PHLX–2010– 

170,3 immediately effective as of the 

filing on November 24, 2010, with an 

implementation date of December 1, 

2010. In order to assure complete and 

clear prior notification to all affected 

customers, the Exchange is changing the 

implementation date of the fee schedule 

change to January 1, 2011. 

This change does not require a change 

in the language of the rule itself. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

In SR–PHLX–2010–170,4 the 

Exchange amended its fee schedule to 

correct an anomaly that effectively 

exempted certain customers residing 

within the Exchange’s co-location 

facility from paying a monthly fee for 

direct access to Exchange data, while 

customers that receive data from an 

extranet and reside outside the colocation facility are assessed the fee. 

The inequity was a result of the 

definition of ‘‘direct access’’ in the fee 

schedule, which did not by its terms 

clearly apply to data feeds provided to 

customers through distributors located 

within the co-located facility. That rule 

filing expanded the definition of ‘‘direct 

access’’ and operated to assess the same 

direct access fee on all firms that have 

access to the Exchange’s raw data feeds, 

whether co-located or not. 

The Notice of Filing and Immediate 

Effectiveness for this fee contained an 

implementation date of December 1, 

2010. The effort to identify and notify 

all customers potentially affected by this 

rule change, however, has proven more 

time-consuming than expected. To 

assure that all customers that will be 

assessed the direct access fee have 

adequate prior notification, the 

Exchange is delaying implementation of 

the fee until January 1, 2011. None of 

the co-located customers that would 

have been newly subject to the direct 

access fee during December 2010 as a 

result of the fee amendment in SR– 

PHLX–2010–170 will be charged this fee 

during December 2010. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,5

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

the Act,6 in particular. 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. The filing ensures clear 

and complete prior notification to 

customers affected by a fee change that 

permits transparent, uniform fees for 

direct access to Exchange data for all 

customers, whether co-located or not. 

In addition, the Exchange believes 

that the proposed rule change is 

consistent with the provisions of 

Section 6 of the Act,7 in general, and 

with Section 6(b)(4) of the Act,8 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 [sic] 

Exchange operates or controls. The 

Exchange notes that delayed 

implementation of the amendment will 

best serve the interests of customers 

affected by the fee change. 


srobinson on DSKHWCL6B1PROD with NOTICES