Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices 25007 

8See Rule 6.8 regarding positions limits, and Rule 

6.9 regarding exercise limits. 9See Rules 4.15 and 4.16 regarding margins. 10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

12 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 No. 61748 

(March 19, 2010), 75 FR 14644 (‘‘Notice’’). 

trading days; (2) the value of the 

underlying silver or underlying gold 

[sic] is no longer calculated or available; 

or (3) such other event occurs or 

condition exists that in the opinion of 

the Exchange makes further dealing on 

the Exchange inadvisable. 

Additionally, the ETFS Palladium 

Trust and ETFS Platinum Trust shall 

not be deemed to meet the requirements 

for continued approval, and the 

Exchange shall not open for trading any 

additional series of option contracts of 

the class covering the ETFS Palladium 

Trust or the ETFS Platinum Trust, 

respectively, if the ETFS Palladium 

Trust or the ETFS Platinum Trust ceases 

to be an ‘‘NMS stock’’ as provided for in 

Rule 5.4(b)(5) or the ETFS Palladium 

Trust or the ETFS Platinum Trust is 

halted from trading on its primary 

market. 

The addition of the ETFS Palladium 

Trust and ETFS Platinum Trust to Rule 

5.3(g) will not have any effect on the 

rules pertaining to position and exercise 

limits 8 or margin.9

The Exchange represents that its 

surveillance procedures applicable to 

trading in options on the ETFS 

Palladium Trust and ETFS Platinum 

Trust will be similar to those applicable 

to all other options on other ETFs 

currently traded on the Exchange. Also, 

the Exchange may obtain information 

from the New York Mercantile 

Exchange, Inc. (‘‘NYMEX’’) (a member of 

the Intermarket Surveillance Group) 

related to any financial instrument 

traded there that is based, in whole or 

part, upon an interest in or performance 

of silver or gold [sic]. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 10 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’), in general, and furthers the 

objectives of Section 6(b)(5) 11 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 

mechanisms of a free and open market 

and a national market system. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

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 the 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 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 

No. SR–NYSEArca–2010–25 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 No. 

SR–NYSEArca–2010–25. 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 NYSE 

Arca. 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–NYSEArca–2010–25 and should be 

submitted on or before May 27, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10592 Filed 5–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61999; File No. SR– 

NYSEArea–2010–15] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Approving a 

Proposed Rule Change Amending Its 

Schedule of Fees and Charges for 

Exchange Services 

April 29, 2010. 

I. Introduction 

On March 5, 2010, NYSE Arca, Inc. 

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

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’),1 and Rule 

19b–4 thereunder,2 a proposed rule 

change relating to co-location services 

and related fees. The proposed rule 

change was published for comment in 

the Federal Register on March 26, 

2010.3 The Commission received no 

comment letters on the proposal. This 

order approves the proposed rule 

change. 

mstockstill on DSKH9S0YB1PROD with NOTICES

25008 Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices 

4The term ‘‘User’’ means any ETP Holder or 

Sponsored Participant who is authorized to obtain 

access to the NYSE Arca Marketplace pursuant to 

Rule 7.29, and any OTP Holder, OTP Firm or 

Sponsored Participant that is authorized to obtain 

access to OX pursuant to Rule 6.2A. See NYSE Arca 

Equities Rule 1.1(yy) and NYSE Arca Options Rule 

6.1A(a)(19). 

5The Exchange represents that it supports 

existing arrangements to provide Users with less 

than a half cabinet, but it does not offer that option 

to new co-location Users. 

6 In approving this proposal, the commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

7 15 U.S.C. 78f(b)(4). 

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

II. Description 

In its proposal, NYSE Arca described 

certain co-location services offered by 

the Exchange, and proposed to amend 

its Schedules of Fees and Charges for 

Exchange Services for both its equities 

and options platforms (the ‘‘Schedules’’) 

in order to identify fees pertaining to 

such co-location services. 

Co-Location Services 

The Exchange offers its Users 4 the 

opportunity to rent space on premises 

controlled by the Exchange so that they 

may locate their electronic servers in 

close physical proximity to the 

Exchange’s trading and execution 

systems. These co-location services are 

currently provided at a data center 

operated by a private third-party vendor 

located in New Jersey, and Users may 

rent space ranging from half cabinets up 

to two full cabinets, with different 

power usage capabilities ranging from 2 

kilowatts up to 8 kilowatts. The services 

provided include equipment 

installation, cross connections, and 

miscellaneous post-installation services 

(including cable installation, equipment 

racking and ‘‘remote-hands’’ 

maintenance). In the proposal, the 

Exchange represents that the fees 

assessed for the services and space 

generally reflect the amount of space 

used and power required. 

NYSE Arca further represents that 

Users that receive co-location services 

from NYSE Arca do not receive any 

means of access to the Exchange’s 

trading and execution systems that is 

separate from or superior to that of 

Users that do not receive co-location 

services. NYSE Arca further represents 

that all orders sent to the Exchange 

enter the Exchange’s trading and 

execution systems through the same 

order gateway, regardless of whether the 

sender is co-located in the Exchange’s 

data center or not. In addition, the 

Exchange represents that co-located 

Users do not receive any market data or 

data service product that is not available 

to all Users. Finally, NYSE Arca notes 

that although Users that receive colocation services normally would expect 

reduced latencies when sending orders 

to the Exchange and receiving market 

data from the Exchange, NYSE Arca 

believes that other than these reduced 

latencies, there are no material 

differences in terms of access to the 

Exchange between Users that choose to 

co-locate and those that do not. 

In the proposal, the Exchange 

explained that it offers co-location space 

based on availability, and believes that 

it has sufficient space to accommodate 

current demand on an equitable basis. 

In addition, according to the Exchange, 

any difference among the positions of 

the cabinets within the data center does 

not create any material difference 

among co-location Users in terms of 

access to the Exchange. 

Co-Location Fees 

The Exchange’s proposed co-location 

fees, which, in part, reflect power usage 

priced at $1000 per kilowatt (‘‘kW’’) per 

month, are reflected below. 

Half cabinet (up to 2 kW) .............................................................................................................. $2,000 per month. 

$2,500 one time installation fee. 

Full cabinet (up to 2.5 kW) ........................................................................................................... $2,500 per month. 

$5,000 one time installation fee. 

Full cabinet (up to 4 kW) .............................................................................................................. $4,000 per month. 

$5,000 one time installation fee. 

Full cabinet (up to 8 kW) .............................................................................................................. $8,000 per month. 

$5,000 one time installation fee. 

Miscellaneous services post installation (including cable installation services, equipment 

racking services, and ongoing remote-hands maintenance).

$200 per hour. 

Fiber cross connections (local and interfloor) ............................................................................. $600 per month. 

$950 one time installation fee. 

Less than half cabinet 5 .................................................................................................................. $150 per Rack Unit. 

III. Discussion and Commission’s 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.6 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(4) of the Act,7 which requires that 

the rules of a national securities 

exchange provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

issuers and other persons using its 

facilities, and with Section 6(b)(5) of the 

Act,8 which requires, among other 

things, that the rules of a national 

securities exchange be designed to 

promote just and equitable principles of 

trade, 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, and 

not be designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Commission believes that the 

proposed co-location fees are equitably 

allocated insofar as they are applied on 

the same terms to similarly-situated 

market participants. In addition, the 

Commission believes that the colocation services described in the 

proposed rule change are not unfairly 

discriminatory because: (1) Co-location 

services are offered to all Users who 

request them and pay the appropriate 

fees; (2) the Exchange has represented 

that Users receiving co-location services 

do not receive any means of access to 

the Exchange’s trading and execution 

systems that is separate from or superior 

to that of Users that do not receive colocation services; (3) the Exchange has 

represented that there are no material 

differences in terms of access to the 

Exchange between Users that choose to 

co-locate and those that do not, other 

than co-located Users’ reduced latencies 

due to proximity; and (4) the Exchange 

has stated that it has sufficient space to 

accommodate current demand for colocation services on an equitable basis. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices 25009 

9 15 U.S.C. 78s(b)(2). 

10 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. 

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

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

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

7 17 CFR 240.19b–4(f)(2). 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 

proposed rule change (SR–NYSEArca– 

2010–15) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10595 Filed 5–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62003; File No. SR– 

NYSEArca–2010–32] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Rule 

Change Amending Its Fee Schedule 

April 29, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on April 21, 

2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Schedule of Fees and Charges for 

Exchange Services (the ‘‘Schedule’’). 

Changes to the Schedule pursuant to 

this proposal will become operative on 

April 21, 2010. The text of the proposed 

rule change is available on the 

Exchange’s Web site at http:// 

www.nyse.com, at the Exchange’s 

principal office, on the Commission’s 

Web site at http://www.sec.gov 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 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 the 

pricing for Mid-Point Passive Liquidity 

(‘‘MPL’’) Orders. Currently the rebate for 

MPL Orders that provide liquidity in 

Tape A and Tape C securities is $0.002 

per share, and the rebate for MPL Order 

that provide liquidity in Tape B 

securities is $0.001 per share. There is 

currently no fee for MPL Orders that 

remove liquidity across all Tapes. Under 

this proposal, MPL Orders will receive 

a rebate of $0.0010 per share for orders 

that provide liquidity and a fee of 

$0.0010 for orders that take liquidity in 

Tape A, Tape B, and Tape C securities. 

These changes apply to all pricing 

levels. 

The proposed changes to the 

Schedule are part of the Exchange’s 

continued effort to attract and enhance 

participation on the Exchange by 

offering attractive rates for removing 

liquidity and rebates for providing 

liquidity. The Exchange believes the 

proposed fees are reasonable and 

equitable in that they apply uniformly 

to all ETP Holders. The proposed 

changes will become operative on April 

21, 2010. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the 

Securities Exchange Act of 1934 (the 

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

of the Act,5 in particular, in that 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 

proposed changes to the Schedule are 

part of the Exchange’s continued effort 

to attract and enhance participation on 

the Exchange by offering attractive rates 

for removing liquidity and rebates for 

providing liquidity to the Exchange. The 

proposed changes to the Schedule are 

reasonable and equitable in that they 

apply uniformly to all ETP Holders. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 6 of the Act and 

subparagraph (f)(2) of Rule 19b–4 7

thereunder, because it establishes a due, 

fee, or other charge imposed by NYSE 

Arca on its members. 

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–NYSEArca–2010–32 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

mstockstill on DSKH9S0YB1PROD with NOTICES