7888 Federal Register / Vol. 80, No. 29 / Thursday, February 12, 2015 / Notices 

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 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

Finally, the Exchange believes that it 

is equitable and not unfairly 

discriminatory to continue to provide a 

higher rebate for PIP Orders than COPIP 

Orders. The rebate is intended to 

incentivize Participants to submit PIP 

and COPIP Orders to the Exchange and 

the Exchange believes that COPIP 

Orders do not need the same level of 

incentivization. The Exchange believes 

the lower COPIP rebate will still provide 

greater liquidity and trading 

opportunities for all market 

participants. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange believes the proposed fee 

changes are reasonably designed to 

enhance competition in BOX 

transactions, particularly auction 

transactions. 

The proposed rule change modifies 

the contract threshold and tiered rebates 

awarded to Participants based on their 

monthly ADV in PIP and COPIP. BOX 

notes that its market model and fees are 

generally intended to benefit retail 

customers by providing incentives for 

Participants to submit their customer 

order flow to BOX, and to the PIP and 

COPIP in particular. The Exchange does 

not believe that the proposed fee change 

burdens competition and will instead 

help promote competition by continuing 

to providing [sic] incentives for market 

participants to submit customer order 

flow to BOX and thus, create a greater 

opportunity for retail customers to 

receive additional price improvement. 

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. 

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 Exchange Act 10

and Rule 19b–4(f)(2) thereunder,11

because it establishes or changes a due, 

or fee. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend the rule change if 

it appears to the Commission that the 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or would otherwise further 

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 email to rule-comments@

sec.gov. Please include File Number SR– 

BOX–2015–11 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–BOX–2015–11. 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 

10:00 a.m. and 3:00 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–BOX– 

2015–11, and should be submitted on or 

before March 5, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–02894 Filed 2–18–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74222; File No. SR–NYSE– 

2015–05] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Include 

Internet Protocol Network Connections 

and Fiber Cross Connects Between a 

User’s Cabinet and Non-User’s 

Equipment as Co-Location Services 

February 6, 2015. 

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 January 

26, 2015, New York Stock Exchange 

LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory 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 

rules to provide that the co-location 

services offered by the Exchange 

include 1 Gigabit (‘‘Gb’’) and 10 Gb 

Internet Protocol (‘‘IP’’) network 

connections in the Exchange’s data 

center and fiber cross connects (‘‘cross 

connects’’) between a Users’ [sic] 

cabinet and non-User’s equipment. In 

addition, the proposed rule change 

reflects changes to the Exchange’s Price 

List related to these co-location services. 

The text of the proposed rule change is 

available on the Exchange’s Web site at 

www.nyse.com, at the principal office of 

the Exchange, and at the Commission’s 

Public Reference Room. 


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4The Exchange initially filed rule changes 

relating to its co-location services with the 

Securities and Exchange Commission 

(‘‘Commission’’) in 2010. See Securities Exchange 

Act Release No. 62960 (September 21, 2010), 75 FR 

59310 (September 27, 2010) (SR–NYSE–2010–56) 

(the ‘‘Original Co-location Filing’’). The Exchange 

operates a data center in Mahwah, New Jersey (the 

‘‘data center’’) from which it provides co-location 

services to Users. 

5For purposes of the Exchange’s co-location 

services, the term ‘‘User’’ includes (i) member 

organizations, as that term is defined in NYSE Rule 

2(b); (ii) Sponsored Participants, as that term is 

defined in NYSE Rule 123B.30(a)(ii)(B); and (iii) 

non-member organization broker-dealers and 

vendors that request to receive co-location services 

directly from the Exchange. See, e.g., Securities 

Exchange Act Release No. 65973 (December 15, 

2011), 76 FR 79232 (December 21, 2011) (SR– 

NYSE–2011–53). As specified in the Price List, a 

User that incurs co-location fees for a particular colocation service pursuant thereto would not be 

subject to co-location fees for the same co-location 

service charged by the Exchange’s affiliates NYSE 

MKT LLC and NYSE Arca, Inc. See Securities 

Exchange Act Release No. 70206 (August 15, 2013), 

78 FR 51765 (August 21, 2013) (SR–NYSE–2013– 

59). 

6See Original Co-location Filing, at 59311. See 

also Securities Exchange Act Release No. 67666 

(August 15, 2012), 77 FR 50742 (August 22, 2012) 

(SR–NYSE–2012–18) (‘‘August 2012 Rule Change’’). 

7See Securities Exchange Act Release No. 72721 

(July 30, 2014), 79 FR 45562 (August 5, 2014) (SR– 

NYSE–2014–37). 

8The Exchange makes an IP network circuit 

available to Users for testing and certification 

purposes at no charge. Such circuit can only be 

used for testing and certification and is limited to 

three months. The Exchange proposes to add 

language to the Price List to include this practice. 

9See Securities Exchange Act Release No. 70888 

(November 15, 2013), 78 FR 69907 (November 21, 

2013) (SR–NYSE–2013–73). 

10The Commission approved the fee for cross 

connects between a single User’s cabinets within 

the data center in the Original Co-Location Filing. 

See Original Co-Location Filing, at 59311. The use 

of cross connects was subsequently revised to allow 

each User to purchase cross connects between its 

cabinet(s) and the cabinets of separate Users. See 

August 2012 Rule Change, at 50742. 

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 change its 

rules to provide that the co-location 4

services offered by the Exchange 

include 1 Gb and 10 Gb IP network 

connections in the Exchange’s data 

center and cross connects between a 

User’s cabinet and non-User’s 

equipment. In addition, this proposed 

rule change reflects changes to the 

Exchange’s Price List related to these colocation services.5

IP Network Connections 

The Exchange offers Users access to 

the Exchange’s Liquidity Center 

Network (‘‘LCN’’), a local area network 

available in the data center.6 The LCN 

provides Users with access to the 

Exchange’s trading and execution 

systems and to the Exchange’s 

proprietary market data products. 

This proposed rule change would 

provide that Users may also purchase 

access to the IP network, a second local 

area network available in the Exchange’s 

data center. Like the LCN, the IP 

network provides Users with access to 

the Exchange’s trading and execution 

systems and to the Exchanges’ 

proprietary market data products. The 

IP network also provides Users with 

access to away market data products. 

There is greater latency in the 

transmission of data between Users and 

the Exchange for the IP Network than 

for the LCN. 

A User is currently able to select from 

two ‘‘bundled’’ connectivity options, at 

1 Gb and 10 Gb, when connecting to the 

data center.7 Both options include two 

connections referred to as ‘‘SFTI’’ 

connections. These bundled ‘‘SFTI’’ 

connections are IP network connections; 

the reference to ‘‘SFTI’’ is a reflection of 

the fact that the IP network is sometimes 

referred to as the ‘‘SFTI IP’’ network. To 

conform the references to the IP network 

in the Price List, the Exchange proposes 

to revise the description of the bundled 

connectivity options to remove the 

reference to ‘‘SFTI’’ and update it to ‘‘IP 

network.’’ 

In addition, the Exchange proposes to 

change its rules to provide that the colocation services offered by the 

Exchange include 1 Gb and 10 Gb IP 

network connections in the Exchange’s 

data center.8 The Exchange also 

proposes to revise its Price List to reflect 

fees related to these IP network 

connections as follows: 

Type of service Description Amount of charge 

IP Network Access ....... 1 Gb Circuit ................. $2,500 per connection initial charge plus $2,500 monthly per connection. 

IP Network Access ....... 10 Gb Circuit ............... $10,000 per connection initial charge plus $10,000 monthly per connection. 

By comparison, the 1 Gb LCN circuit 

costs $6,000 per connection initial 

charge plus $5,000 monthly per 

connection. The 10 Gb LCN circuit costs 

$10,000 per connection initial charge 

plus $12,000 monthly per connection, 

while the LCN 10 Gb LX, a second LCN 

option that has a lower latency than the 

10 Gb LCN circuit, costs $15,000 per 

connection initial charge plus $20,000 

monthly per connection.9

The IP network provides Users that do 

not need the lower latency of the LCN 

with a less costly data center network 

option. Having another data center 

network also provides Users with the 

option to create redundancy in their 

infrastructure. The offering of either a 1 

Gb or 10 Gb IP network connection 

provides Users more choices regarding 

the bandwidth of their network 

connections. 

Cross Connects 

Cross connects are fiber connections 

used to connect cabinets within the data 

center. Cross connects may be used 

between a User’s own cabinets or 

between its cabinet(s) and those of 

another User.10 A cross connect may be 

used to connect cabinets of separate 

Users when, for example, a User 

receives technical support, order routing 

and/or market data delivery services 

from another User in the data center. A 

User is able to purchase cross connects 

individually or in bundles (i.e., multiple 

cross connects within a single sheath) of 

six, 12, 18 or 24 cross connects. 

The Exchange proposes to amend the 

Price List for individual and bundled 

cross connects to include cross-connects 

between a User’s cabinet and a nonUser’s equipment within the data 

center. Non-Users with equipment in 

the data center include the Exchange 

and third-party carriers. For example, a 

User may utilize a cross connect with a 

non-User to connect to a carrier’s 

equipment in order to access the 

carrier’s network outside the data 

center. Such cross connects do not 

provide direct access to the Exchange’s 

trading and execution systems and do 


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7890 Federal Register / Vol. 80, No. 29 / Thursday, February 12, 2015 / Notices 

11As is currently the case, Users that receive colocation 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 other Users. In this regard, 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 

data center or not. In addition, co-located Users do 

not receive any market data or data service product 

that is not available to all Users, although Users that 

receive co-location services normally would expect 

reduced latencies in sending orders to, and 

receiving market data from, the Exchange. 

12See SR–NYSE–2013–59, supra note 5 at 51766. 

The Exchange’s affiliates have also submitted the 

same proposed rule change to propose the changes 

described herein. See SR–NYSEMKT–2015–08 and 

SR–NYSEArca–2015–03. 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(5). 15 15 U.S.C. 78f(b)(4). 

not change the fact that only Users that 

are authorized to obtain access to the 

Exchange trading and execution systems 

can do so. 

The Exchange proposes to amend the 

existing cross connect fee in the Price 

List accordingly. Specifically, the 

existing Price List text that describes 

cross connects as being ‘‘between 

cabinets within the data center’’ would 

be removed. The existing pricing for 

individual and bundled cross connects 

would not change. 

General 

As is the case with all Exchange colocation arrangements, (i) neither a User 

nor any of the User’s customers would 

be permitted to submit orders directly to 

the Exchange unless such User or 

customer is a member organization, a 

Sponsored Participant or an agent 

thereof (e.g., a service bureau providing 

order entry services); (ii) use of the colocation services proposed herein would 

be completely voluntary and available 

to all Users on a non-discriminatory 

basis; 11 and (iii) a User would only 

incur one charge for the particular colocation service described herein, 

regardless of whether the User connects 

only to the Exchange or to the Exchange 

and one or both of its affiliates.12

The proposed change is not otherwise 

intended to address any other issues 

relating to co-location services and/or 

related fees, and the Exchange is not 

aware of any problems that Users would 

have in complying with the proposed 

change. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,13 in general, and 

furthers the objectives of Sections 

6(b)(5) of the Act,14 in particular, 

because 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 regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to, 

and perfect the mechanisms of, a free 

and open market and a national market 

system and, in general, to protect 

investors and the public interest and 

because it is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes that the IP 

network connections are not designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers 

because the IP network connections 

provide an alternative to Users that do 

not require the lower latency levels of 

the LCN for all of their business 

operations. Users that do require lower 

latency levels for all of their business 

operations may utilize only LCN 

connections. The Exchange believes that 

this removes impediments to, and 

perfects the mechanisms of, a free and 

open market and a national market 

system and, in general, protects 

investors and the public interest 

because it provides Users with 

additional choices with respect to both 

the optimal latency and, by including 1 

Gb and 10 Gb IP network connection 

options, the optimal bandwidth option 

for their network connections. Having 

data center networks to choose from 

also provides Users with the option to 

create redundancy in their 

infrastructure. In addition, the Exchange 

believes that the proposed revision of 

the description of the bundled 

connectivity options to remove the 

reference to ‘‘SFTI’’ and update it to ‘‘IP 

network’’ removes impediments to, and 

perfects the mechanisms of, a free and 

open market and a national market 

system and, in general, protects 

investors and the public interest 

because conforming the references to 

the IP network will add clarity to the 

Price List. The Exchange believes that 

providing Users with an IP network 

circuit solely for testing and 

certification purposes for three months 

at no charge protects investors and the 

public interest because it encourages 

Users to conduct testing and 

certification. 

The Exchange believes that the cross 

connects between Users and non-Users 

are not designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers because the 

proposed change makes a third use for 

cross connections available to Users, but 

Users that do not require such 

connections may continue to utilize 

existing cross connects as they need. 

The Exchange believes that this removes 

impediments to, and perfects the 

mechanisms of, a free and open market 

and a national market system and, in 

general, protects investors and the 

public interest because cross connects 

between Users’ cabinets and non-Users’ 

equipment assist Users in meeting the 

growing needs of their business 

operations by facilitating connections 

with non-Users. 

The Exchange also believes that the 

proposed rule change is consistent with 

Section 6(b)(4) of the Act,15 in 

particular, because it provides for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

members, issuers and other persons 

using its facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

Overall, the Exchange believes that 

the proposed change is reasonable 

because the Exchange proposes to offer 

the co-location services described 

herein (i.e., the IP network connections 

and additional cross connects) as a 

convenience to Users, but in doing so 

will incur certain costs, including costs 

related to the data center facility, 

hardware and equipment and costs 

related to personnel required for initial 

installation and monitoring, support 

and maintenance of such services. In 

addition, the Exchange believes that the 

proposed revision of the description of 

the bundled connectivity options to 

remove the reference to ‘‘SFTI’’ and 

update it to ‘‘IP network’’ is reasonable 

because conforming the references to 

the IP network will add clarity to the 

Price List. 

The Exchange believes that the 

proposed pricing for IP network 

connections is reasonable because IP 

network connections are a more 

economical option for certain Users that 

do not require the lower latency levels 

of the LCN for all of their business 

operations. The proposed pricing for IP 

network connections is also reasonable 

because it allows Users to select 

network options that are better suited 

for their needs. Some Users do not need 

lower latency levels for all of their 

business operations, and IP network 

connections provide them the option to 

utilize network connections with higher 

latency levels but lower fees than the 

LCN. The availability of 1 Gb and 10 Gb 

options allow Users to select the 

bandwidth option that suits their needs. 

In addition, the Exchange believes that 

the proposed revision of the description 

of the bundled connectivity options to 

remove the reference to ‘‘SFTI’’ and 

update it to ‘‘IP network’’ is reasonable 

because it will conform the references to 


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Federal Register / Vol. 80, No. 29 / Thursday, February 12, 2015 / Notices 7891 

16 15 U.S.C. 78f(b)(8). 

17 15 U.S.C. 78s(b)(3)(A)(iii). 

18 17 CFR 240.19b–4(f)(6). 

19 17 CFR 240.19b–4(f)(6). 

20 17 CFR 240.19b–4(f)(6)(iii). 

21 15 U.S.C. 78s(b)(2)(B). 

the IP network in the Price List The 

Exchange believes that providing Users 

with an IP network circuit solely for 

testing and certification purposes for 

three months at no charge is reasonable 

because providing the IP network circuit 

at no charge encourages Users to 

conduct testing and certification. 

The Exchange believes that it is 

reasonable to charge the same amount 

for cross connects regardless of whether 

the cross connects are between the 

cabinets of a single User, between the 

cabinets of separate Users or between a 

User and non-User, because the cross 

connect hardware and costs the 

Exchange incurs are substantially the 

same in each case. 

The Exchange believes that the 

proposed change is equitable and not 

unfairly discriminatory because it will 

result in fees being charged only to 

Users that voluntarily select to receive 

the corresponding services and because 

those services will be available to all 

Users. Furthermore, the Exchange 

believes that the services and fees 

proposed herein are not unfairly 

discriminatory and are equitably 

allocated because, in addition to the 

services being completely voluntary, 

they are available to all Users on an 

equal basis (i.e., the same products and 

services are available to all Users). 

For the reasons above, the proposed 

changes do not unfairly discriminate 

between or among market participants 

that are otherwise capable of satisfying 

any applicable co-location fees, 

requirements, terms and conditions 

established from time to time by the 

Exchange. 

Finally, the Exchange believes that it 

is subject to significant competitive 

forces, as described below in the 

Exchange’s statement regarding the 

burden on competition. 

For these reasons, the Exchange 

believes that the proposal is consistent 

with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,16 the Exchange believes that the 

proposed rule change will not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act because, in 

addition to the proposed services being 

completely voluntary, they are available 

to all Users on an equal basis (i.e. the 

same products and services are available 

to all Users). 

The Exchange believes that allowing 

Users to purchase access to the IP 

network will not impose any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act because such access 

will satisfy User demand for more costeffective, higher latency connections. 

The proposed changes also enhance 

competition by helping Users tailor 

their data center network connections to 

the growing needs of their business 

operations and by adding clarity to the 

Price List by conforming the references 

to the IP network. The Exchange also 

believes that the cross connects between 

Users’ cabinets and non-Users’ 

equipment will not impose any burden 

on competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act because the cross 

connects will satisfy User demand for 

more flexibility in the Users’ use of 

cross connects. The proposed change 

also enhances competition by helping 

Users tailor their co-located systems to 

the varying needs of their business 

operations. 

Finally, the Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily favor competing venues if they 

deem fee levels at a particular venue to 

be excessive. In such an environment, 

the Exchange must continually review, 

and consider adjusting, its services and 

related fees and credits to remain 

competitive with other exchanges. For 

the reasons described above, the 

Exchange believes that the proposed 

rule change reflects this competitive 

environment. 

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 17 and Rule 

19b–4(f)(6) thereunder.18 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) 19 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),20 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. 

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 21 of the Act to 

determine whether the proposed rule 

change 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 email to rulecomments@sec.gov. Please include File 

Number SR–NYSE–2015–05 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2015–05. 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 


Rmajette on DSK2VPTVN1PROD with NOTICES
7892 Federal Register / Vol. 80, No. 29 / Thursday, February 12, 2015 / Notices 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release Nos. 73846 

(December 16, 2014), 79 FR 76415 (December 22, 

2014) (SR–MIAX–2014–64); 73847 (December 16, 

2014), 79 FR 76426 (December 22, 2014) (SR– 

NYSEMKT–2014–106); 72142 (May 9, 2014), 79 FR 

27961 (May 15, 2014) (SR–NASDAQ–2014–052); 

and 72143 (May 9, 2014), 79 FR 27963 (May 15, 

2014) (SR–BX–2014–025). 

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

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

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 

10:00 a.m. and 3:00 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–NYSE– 

2015–05, and should be submitted on or 

before March 5, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–02895 Filed 2–11–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74224; File No. SR–ISE– 

2015–05] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Extend the SPY Pilot 

Program 

February 6, 2015. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

4, 2015, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) 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 by the selfregulatory 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 the Substance 

of the Proposed Rule Change 

The ISE proposes to amend its rules 

to extend the pilot program that 

eliminated position and exercise limits 

for physically-settled options on the 

SPDR S&P ETF Trust (‘‘SPY’’) (‘‘SPY 

Pilot Program’’). The text of the 

proposed rule change is available on the 

Exchange’s Web site (http:// 

www.ise.com), at the principal office of 

the Exchange, 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 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 proposes to amend 

Supplementary Material .01 to Rule 412 

and Supplementary Material .01 to Rule 

414 to extend the duration of the SPY 

Pilot Program through July 12, 2015, 

consistent with proposed rule changes 

filed by other options exchanges.3 This 

filing does not propose any substantive 

changes to the SPY Pilot Program. In 

proposing to extend the SPY Pilot 

Program, the Exchange reaffirms its 

consideration of several factors that 

supported the original proposal of the 

SPY Pilot Program, including (1) the 

liquidity of the option and the 

underlying security, (2) the market 

capitalization of the underlying security 

and the related index, (3) the reporting 

of large positions and requirements 

surrounding margin, and (4) financial 

requirements imposed by ISE and the 

Commission. 

With this proposed extension to the 

SPY Pilot Program, the Exchange has 

submitted a report to the Commission 

reflecting the trading of standardized 

SPY options without position limits 

from January through December, 2014. 

The report was prepared in the manner 

specified in the filing extending the SPY 

Pilot Program to the current pilot end 

date of February 5, 2015. The Exchange 

notes that it is unaware of any problems 

created by the SPY Pilot Program and 

does not foresee any as a result of the 

proposed extension. 

The Exchange represents that it will 

submit a new pilot report at least thirty 

(30) days before the end of the extended 

SPY Pilot Program, which will cover the 

extended pilot period. The Pilot Report 

will detail the size and different types 

of strategies employed with respect to 

positions established as a result of the 

elimination of position limits in SPY. In 

addition, the Pilot Report will note 

whether any problems resulted due to 

the no limit approach and any other 

information that may be useful in 

evaluating the effectiveness of the SPY 

Pilot Program. The Pilot Report will 

compare the impact of the SPY Pilot 

Program, if any, on the volumes of SPY 

options and the volatility in the price of 

the underlying SPY shares, particularly 

at expiration. In preparing the report the 

Exchange will utilize various data 

elements such as volume and open 

interest. In addition the Exchange will 

make available to Commission staff data 

elements relating to the effectiveness of 

the SPY Pilot Program. 

Conditional on the findings in the 

Pilot Report, the Exchange will file with 

the Commission a proposal to extend 

the pilot program, adopt the pilot 

program on a permanent basis or 

terminate the pilot. If the SPY Pilot 

Program is not extended or adopted on 

a permanent basis by the expiration of 

the extended pilot, the position limits 

for SPY would revert to limits in effect 

at the commencement of the SPY Pilot 

Program. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder that 

are applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6(b) of the Act.4

In particular, the proposal is consistent 

with Section 6(b)(5) of the Act,5 because 

it is designed to promote just and 

equitable principles of trade, to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system and, in 


Rmajette on DSK2VPTVN1PROD with NOTICES