10792 Federal Register / Vol. 77, No. 36 / Thursday, February 23, 2012 / Notices 

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

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A)(iii). 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6)(iii). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act 8

in general, and furthers the objectives of 

Section 6(b)(5) 9 in particular, in that it 

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 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. Specifically, the Exchange 

believes that the proposed rule change 

supports the objectives of the Act by 

providing greater harmonization 

between NYSE Amex Equities Rules and 

FINRA Rules of similar purpose, 

resulting in less burdensome and more 

efficient regulatory compliance. In 

particular, all NYSE Amex member 

organizations that are subject to NYSE 

Amex Equities Rule 319 are also subject 

to FINRA Rule 4360 and harmonizing 

these two rules would promote just and 

equitable principles of trade by 

requiring a single standard for fidelity 

bonds. To the extent the Exchange has 

proposed changes that differ from the 

FINRA version of the Rules, such 

changes are technical in nature and do 

not change the substance of the 

proposed NYSE Amex Equities Rules. 

The Exchange also believes that the 

proposed rule change will update and 

clarify the requirements governing 

fidelity bonds, which will promote just 

and equitable principles of trade and 

help to protect investors. 

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 either 

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 10 and Rule 

19b–4(f)(6) thereunder.11 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. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 12 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),13 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. 

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 email to rulecomments@sec.gov. Please include File 

Number SR–NYSEAMEX–2012–08 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–2012–08. 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 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 20549–1090. Copies of 

the filing will also be available for 

inspection and copying at the NYSE’s 

principal office and on its Internet Web 

site at 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–2012–08 and 

should be submitted on or before March 

15, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4151 Filed 2–22–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66410; File No. SR–CHX– 

2012–06] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

its Fee Schedule To Provide for a New 

Cross Connection Charge and Waive 

Monthly Fees at its New Facility Until 

April 1, 2012 

February 16, 2012. 

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 

9, 2012, the Chicago Stock Exchange, 

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Federal Register / Vol. 77, No. 36 / Thursday, February 23, 2012 / Notices 10793 

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

4 17 CFR 240.19b–4(f)(2). 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(4). 

Inc. (‘‘CHX’’ 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. 

CHX has filed the proposal pursuant to 

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

19b–4(f)(2) thereunder,4 which renders 

the proposal effective upon filing with 

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 

CHX proposes to amend its Schedule 

of Fees and Assessments (the ‘‘Fee 

Schedule’’), to provide for certain new 

cross connection charges and to waive 

monthly port fees and cross connection 

charges otherwise applicable to any 

Participants connecting to CHX’s new 

facilities in the Equinix NY4 data center 

(‘‘NY4’’) until April 1, 2012. CHX also 

proposes consolidating connection 

charges and modifying certain 

descriptions contained in the Fee 

Schedule for clarity. The text of this 

proposed rule change is available on the 

Exchange’s Web site at (www.chx.com) 

and in 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 

CHX included statements concerning 

the purpose of and basis for the 

proposed rule changes and discussed 

any comments it received regarding the 

proposal. The text of these statements 

may be examined at the places specified 

in Item IV below. The CHX 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 

Through this filing, the Exchange 

proposes to amend its Schedule of Fees 

and Assessments (the ‘‘Fee Schedule’’) 

to provide for certain new cross 

connection charges and to waive 

monthly port fees and cross connection 

charges otherwise applicable to any 

Participants connecting to CHX’s new 

facilities in the Equinix NY4 data center 

(‘‘NY4’’) until April 1, 2012. CHX also 

proposes consolidating connection 

charges and modifying certain 

descriptions contained in the Fee 

Schedule for clarity. 

Last year, CHX began an initiative to 

establish a presence at NY4 in order to 

improve latencies for its east coast 

customers and increase the use of its 

Matching System. The following 

proposed modifications to the CHX Fee 

Schedule are related to this initiative. 

The Exchange proposes to consolidate 

all connection charges into section D. 

and rename this section ‘‘Connection 

Charges.’’ The Exchange also proposes 

dividing connection charges into two 

general categories: 1. ‘‘Matching System 

Port Charges’’, which are assessed for 

each logical connection into the 

Exchange’s Matching System; and, 2. 

‘‘Cross Connection Charges’’, which are 

assessed based upon the capacity of the 

line that physically connects equipment 

and the type of equipment that is being 

connected. Such connections are 

utilized to send market data to, and 

receive orders from, the customer’s 

equipment. 

Under new section D. 1. ‘‘Matching 

System Port Charges’’ the Exchange will 

further clarify, in both the heading and 

the following descriptive paragraph, 

that such charges are for ‘‘logical’’ (i.e. 

not physical) connectivity. The 

Exchange will also further specify that 

one port charge is assessed for each 

Participant give-up that has access 

through any Participant connection to 

the Matching System. Additionally, the 

Exchange proposes removing the 

parenthetical reference to the effective 

date from the rule text. 

Under new section D. 2. ‘‘Cross 

Connection Charges’’ the Exchange will 

clarify in the heading that such charges 

are for ‘‘physical’’ connectivity. The 

Exchange also proposes subdividing 

new section D. 2. into cross connection 

charges that are available for: (a) Carrier 

equipment to customer equipment 

connections; and, (b) Customer 

equipment to CHX equipment 

connections. The Exchange notes that 

the various charges specified in new 

section D. 2. (a) are those charges that 

previously appeared as ‘‘Data 

Connections’’ under section G. ‘‘Colocation Fees.’’ The Exchange believes 

that moving these charges from section 

G. into section D. and thereby 

consolidating them with other types of 

connection charges will clarify the Fee 

Schedule. The Exchange also proposes 

deleting the subheading ‘‘Space’’ from 

Section G. ‘‘Co-location Fees’’ since it 

will no longer be needed to distinguish 

space rental charges from connectivity 

charges. 

This proposal would also change the 

description for the ‘‘CHX Network 

Connection’’ charge, which previously 

appeared in Section G., to ‘‘1G 

Connection’’ and would also add a 

second, higher capacity, 10G cross 

connection charge under new section D. 

2. (b); which are physical connections 

from customer equipment to CHX 

equipment. In the case of the 1G 

connection, the Exchange will continue 

to charge a one-time fee of $150 to 

establish the connection and a recurring 

monthly fee of $100. In the case of the 

new higher capacity 10G connection, 

the Exchange proposes charging a onetime fee of $1,000 to establish the 

connection and a recurring monthly fee 

of $500. As mentioned above, such 

connections are utilized to send market 

data to, and receive orders from, the 

customer’s equipment 

Finally, in order to encourage current 

and new customers to establish 

connections at the Exchange’s new 

facility and to provide a transitional 

period for those current customers that 

would like to move their connections 

from Chicago to the new NY4 facility, 

CHX proposes waiving monthly port 

fees and monthly cross connection 

charges at the NY4 facility until April 1, 

2012. The Exchange believes that 

waiving monthly charges at NY4 until 

this date certain will accomplish its two 

goals of encouraging the establishment 

of new connections while avoiding 

temporarily double charging those 

customers that would simply like to 

connect to the new facility and then 

subsequently disconnect from the 

Chicago facility. To communicate this 

policy to all Participants, the Exchange 

proposes adding language to its Fee 

Schedule indicating that no monthly 

charges will be assessed under section 

D. for CHX’s Equinix NY4 data center 

location until April 1, 2012. The 

Exchange notes that it will waive only 

the monthly fees applicable under 

section D. and not one-time fees because 

such fees are associated with the 

establishment of a new physical 

connection. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 5 in general, and 

furthers the objectives of Section 6(b)(4) 

of the Act 6 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and other persons 

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10794 Federal Register / Vol. 77, No. 36 / Thursday, February 23, 2012 / Notices 

7See BATS BZX Exchange Fee Schedule, 

‘‘Physical Connection Charges’’, p.4, available on 

BATS’ public Web site. See also DirectEdge EDGA 

Exchange Fee Schedule, Physical Connectivity 

Fees, p. 3, available on DirectEdge’s public Web 

site. 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A)(ii). 

11 17 CFR 240.19b–4(f)(2). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

using any facility or system which the 

Exchange operates or controls. 

Specifically, the Exchange believes 

that the addition of the 1G and 10G 

cross connection charges specified 

above is reasonable because these 

charges are similar to those in effect for 

equivalent services at other exchanges.7

Furthermore, these charges are equitable 

and non-discriminatory in that they are 

only charged to those Participants that 

have exclusive use of the connection for 

which the Exchange is charging. 

The Exchange also believes that the 

waiver of monthly fees otherwise 

applicable under section D. of its Fee 

Schedule for connections established at 

its new NY4 facility until April 1, 2012 

is both reasonable and equitable in that 

it encourages all Participants to 

establish connections at the new facility 

but will ultimately impose new charges 

on those that have established 

additional connections after that date. 

Furthermore, the Exchange believes that 

the waiver of monthly fees until a date 

certain results in a non-discriminatory 

application of fees in that it will not 

temporarily double charge those 

Participants that are transitioning to the 

new facility, provided the new 

connection is made and the old 

connection discontinued prior to April 

1, 2012. 

Finally, the Exchange believes that 

the proposed consolidation of 

connection charges and 

other clarifying modifications to its 

Fee Schedule are consistent with 

Section 6(b) of the Act 8 in general, and 

further the objectives of Section 6(b)(5) 

of the Act 9 in particular, in that they 

foster a better understanding of the 

various fees charged by the Exchange to 

all Participants and other persons using 

any facility or system which the 

Exchange operates or controls. 

B. Self-Regulatory Organization’s 

Statement of 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. The addition 

of fees similar to those charged by 

competing markets and the temporary 

waiver of monthly fees at a new facility 

during a brief transitional period will 

not impose any burden on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments Regarding 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 

The proposed rule change is to take 

effect pursuant to Section 19(b)(3)(A)(ii) 

of the Act 10 and subparagraph (f)(2) of 

Rule 19b–4 thereunder 11 because it 

establishes or changes a due, fee or 

other charge applicable to the 

Exchange’s members and non-members, 

which renders the proposed rule change 

effective upon filing. 

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 email to rulecomments@sec.gov. Please include File 

Number SR–CHX–2012–06 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–CHX–2012–06. 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 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 the 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–CHX– 

2012–06 and should be submitted on or 

before March 15, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4150 Filed 2–22–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66409; File No. SR– 

NASDAQ–2012–027] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Routing Fees 

February 16, 2012. 

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 

13, 2012, 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 prepared by NASDAQ. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

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