7394 Federal Register / Vol. 81, No. 28 / Thursday, February 11, 2016 / Notices 

12For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

13 17 CFR 200.30–3(a)(12), (59). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 34– 

76612 (December 10, 2015), 80 FR 78269 

(‘‘Notice’’). On January 28, 2016, the Exchange 

consented to extending the time period for the 

Commission to either approve or disapprove the 

proposed rule change, or to institute proceedings to 

determine whether to approve or disapprove the 

proposed rule change, to February 5, 2016. 

4See letter from Kermit Kubitz to the 

Commission, dated January 6, 2016 (‘‘Kubitz 

Letter’’). 

5See letter from Martha Redding Senior Counsel 

& Assistant Secretary, NYSE to Brent J. Fields, 

Secretary of the Commission, dated January 20, 

2016 (‘‘Exchange Response Letter’’). 

6Amendment No. 1 (i) updates the proposal to 

specify that that Partial Cabinet Solution Bundles, 

originally proposed to be offered on January 1, 

2016, instead will be offered on the date that is the 

later of February 1, 2016 and the date of any 

Commission approval of the proposal; and (ii) as 

described further below, adds clarity to the 

proposal by specifying the differences in precision 

among the three time feeds. 

7For purposes of the Exchange’s co-location 

services, a ‘‘User’’ means any market participant 

that requests to receive co-location services directly 

from the Exchange, a ‘‘Hosting User’’ means a User 

that hosts a Hosted Customer in the User’s colocation space, and a ‘‘Hosted Customer’’ means a 

customer of a Hosting User that is hosted in a 

Hosting User’s co-location space. See Securities 

Exchange Act Release No. 76008 (September 29, 

2015), 80 FR 60190 (October 5, 2015) (SR–NYSE– 

2015–40). As specified in the Price List, a User that 

incurs co-location fees for a particular co-location 

service pursuant thereto would not be subject to colocation 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). 

must be that of a senior official at the 

company with a rank of Corporate 

Secretary or above. Based on the 

foregoing, the Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest. For 

this reason, the Commission hereby 

waives the 30-day operative delay and 

designates the proposal operative upon 

filing.12

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 

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 rule-comments@

sec.gov. Please include File Number SR– 

NYSEMKT–2016–14 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–NYSEMKT–2016–14. 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 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– 

NYSEMKT–2016–14, and should be 

submitted on or before March 3, 2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Brent J. Fields, 

Secretary. 

[FR Doc. 2016–02729 Filed 2–10–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77072; File No. SR–NYSE– 

2015–53] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Amendment No. 1 and Order 

Granting Accelerated Approval of 

Proposed Rule Change, as Modified by 

Amendment No. 1, To Provide That the 

Co-Location Services Offered by the 

Exchange Include Three Time Feeds 

and Four Partial Cabinet Bundle 

Options 

February 5, 2016. 

I. Introduction 

On November 27, 2015 the New York 

Stock Exchange LLC (‘‘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 to provide that the co-location 

services offered by the Exchange 

include three time feeds and four 

bundles of co-location services (‘‘Partial 

Cabinet Solution bundles’’). The 

proposed rule change was published for 

comment in the Federal Register on 

December 16, 2015.3 The Commission 

received one comment letter on the 

proposed rule change.4 On January 20, 

2016, the Exchange filed a response 

letter.5 On January 28, 2016, the 

Exchange filed Amendment No. 1 to the 

proposed rule change.6 The Commission 

is publishing this notice to solicit 

comments on Amendment No. 1 from 

interested persons and is approving the 

proposed rule change, as modified by 

Amendment No. 1, on an accelerated 

basis. 

II. Description of the Proposal, as 

Modified by Amendment No. 1 

The Exchange proposes to change its 

rules to provide that the co-location 

services offered by the Exchange 

include three time feeds and four Partial 

Cabinet Solution bundles, and to 

establish fees for these services. 

Time Feeds 

The Exchange proposes to offer Users 

the option to purchase connectivity to 

one or more of three time feeds.7 Each 

proposed time feed provides a feed with 

the current time of day using one of 

three different time protocols: Global 

Positioning System (‘‘GPS’’) Time 

Source, the Network Time Protocol 

(‘‘NTP’’), and Precision Timing Protocol 

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Federal Register / Vol. 81, No. 28 / Thursday, February 11, 2016 / Notices 7395 

8See Notice, 80 FR at 78269. 

9See id. at 78270. 

10See id. 

11See id. 

12See id. 

13See Amendment No. 1, at 4. 

14See id. 

15See Notice, 80 FR at 78269, n.6. 

16See id. at 78270. 17See id. at 78269–78270. For example, a User 

may connect to a time feed for record keeping 

purposes if it uses that specific time protocol for all 

its activities, both inside and out of the data center. 

See id. at 78270, n.7. 

18See id. at 78270. 

19See id. 

20See id. at n.10. 

21See id. at 78272. 

22See id. 

23See id. at 78270. 

24See id. 

25See id. 

26See id. 

27See id. 

28See id. at 78271. 

(‘‘PTP’’).8 GPS is a time and location 

system maintained by the United States 

government.9 The Exchange accesses 

the GPS Time Source feed through 

dedicated equipment and subscribing 

Users connect to the feed over dedicated 

cables.10 For the NTP and PTP time 

feeds, the Exchange routes the GPS data 

through dedicated equipment that 

reformats the GPS data into NTP and 

PTP.11 Subscribing Users connect to 

PTP over dedicated cables and NTP over 

the Liquidity Center Network (‘‘LCN’’), 

a local area network available in the 

data center.12 According to the 

Exchange, the GPS Time Source feed is 

a sub-microsecond time feed, providing 

the highest level of accuracy of the three 

time feeds.13 PTP has an accuracy of 

less than 10 microseconds, while the 

accuracy of NTP can be greater than 10 

milliseconds.14 The Exchange states that 

a User does not require connectivity to 

a time feed to trade on the Exchange.15

The proposed connectivity to time feeds 

would provide Users a convenient way 

to access time protocols.16 According to 

the Exchange, Users make use of time 

feeds to receive time and to synchronize 

clocks between computer systems or 

throughout a computer network, and 

time feeds assist Users in other 

functions, including record keeping or 

measuring response times.17

Currently, Users have the option of 

either renting a dedicated cabinet or a 

partial cabinet to house their servers 

and other equipment in the data 

center.18 Under the proposal, only the 

NTP and PTP time feeds will be 

available to partial cabinet Users, 

whereas dedicated cabinet Users will 

have access to all three time feeds.19

According to the Exchange, connectivity 

to the GPS time feed is not available for 

partial cabinets because the proximity of 

the GPS and power connections into a 

partial cabinet would expose the GPS to 

interference from the cable power 

connections, interfering with the 

delivery of the GPS data.20 The 

Exchange states that if a partial cabinet 

User is in need of the GPS feed, it could 

either purchase a dedicated cabinet or 

become a Hosted Customer of a Hosting 

User that has the GPS feed.21 In 

addition, the Exchange states that the 

NTP time feed is offered only over the 

LCN due to a lack of demand for the 

NTP over the IP network, and notes that 

a User that requires connectivity to the 

NTP could connect to the LCN.22

The Exchange proposes to charge a 

non-recurring fee of $300, $1000, and 

$3000 for connectivity to the NTP, PTP, 

and GPS time feeds, respectively.23 The 

Exchange will also charge a monthly 

recurring fee of $100, $250, and $400 for 

the NTP, PTP, and GPS time feeds, 

respectively.24 Subscribing Users that 

order the proposed time feed services 

will be subject to a 12-month minimum 

commitment, after which they are 

subject to a 60-day rolling 

commitment.25

Partial Cabinet Solution Bundles 

The Exchange also proposes to offer 

four Partial Cabinet Solution bundles 

and establish fees therefor.26 As more 

fully described in the Notice, each 

Partial Cabinet Solution bundle option 

would include network access, two fiber 

cross connections, and connectivity to 

either the NTP or PTP time feed.27

Subscribing Users would be assessed a 

non-recurring fee and monthly charge 

for each bundle option as set forth 

below.28

Type of service Description Amount of charge 

Partial Cabinet Solution bundles ........................

Note: A User and its Affiliates are limited to one 

Partial Cabinet Solution bundle at a time. A 

User and its Affiliates must have an aggregate cabinet footprint of 2 kW or less to qualify for a Partial Cabinet Solution bundle.

Option A: 1 kW partial cabinet, 1 LCN connection (1 Gb), 1 IP network connection (1 

Gb), 2 fiber cross connections and either 

the Network Time Protocol Feed or Precision Timing Protocol.

$7,500 initial charge per bundle plus monthly 

charge per bundle as follows: 

• For Users that order on or before December 31, 2016: $3,000 monthly for 

first 12 months of service, and $6,000 

monthly thereafter. 

• For Users that order after December 

31, 2016: $6,000 monthly. 

Option B: 2 kW partial cabinet, 1 LCN connection (1 Gb), 1 IP network connection (1 

Gb), 2 fiber cross connections and either 

the Network Time Protocol Feed or Precision Timing Protocol.

$7,500 initial charge per bundle plus monthly 

charge per bundle as follows: 

• For Users that order on or before December 31, 2016: $3,500 monthly for 

first 12 months of service, and $7,000 

monthly thereafter. 

• For Users that order after December 

31, 2016: $7,000 monthly. 

Option C: 1 kW partial cabinet, 1 LCN connection (10 Gb), 1 IP network connection 

(10 Gb), 2 fiber cross connections and either the Network Time Protocol Feed or 

Precision Timing Protocol.

$10,000 initial charge per bundle plus monthly 

charge per bundle as follows: 

• For Users that order on or before December 31, 2016: $7,000 monthly for 

first 12 months of service, and $14,000 

monthly thereafter. 

• For Users that order after December 

31, 2016: $14,000 monthly. 

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7396 Federal Register / Vol. 81, No. 28 / Thursday, February 11, 2016 / Notices 

29See id. at 78272. The Exchange proposes to 

have a reduced minimum commitment period for 

the Partial Cabinet Solution bundle to further 

reduce the cost commitment for such Users. The 

Exchange acknowledges that the proposal may also 

attract some entities that are currently Hosted 

Customers or would have become Hosted 

Customers. 

30See id. at 78270. 

31See id. 

32See id. at n.15. 

33See id. at 78270–78271. For example, a User 

with a 4 kW dedicated cabinet would not be eligible 

for a Partial Cabinet Solution bundle, as its 

aggregate cabinet footprint would be either 5 kW or 

6 kW once a Partial Cabinet Solution bundle was 

added. 

34See id. at 78271. The Exchange would review 

available information regarding the entities and 

may request additional information to verify the 

Affiliate status of a User or Hosted Customer. The 

Exchange would approve a request for a Partial 

Cabinet Solution bundle unless it determines that 

the certification is not accurate. 

35See id. 

36See id. 

37See id. at 78271–78272. 

38See id. at 78271, n.19. 

39See id. at 78272. 

40See Kubitz Letter, supra note 4. 

41See Exchange Response Letter, supra note 5. 

42See Kubitz Letter, supra note 4. 

43See id. 

44See id. The commenter further requested that 

the Commission more broadly investigate and 

report on any risks associated with time feeds, and 

measures to protect these and other data feeds. See 

id. The Commission notes that this suggestion is 

beyond the scope of the proposed rule change. 

45See Exchange Response Letter, supra note 5, at 

3. 

46See id. at 4. 

Type of service Description Amount of charge 

Option D: 2 kW partial cabinet, 1 LCN connection (10 Gb), 1 IP network connection 

(10 Gb), 2 fiber cross connections and either the Network Time Protocol Feed or 

Precision Timing Protocol.

$10,000 initial charge per bundle plus monthly 

charge per bundle as follows: 

• For Users that order on or before December 31, 2016: $7,500 monthly for 

first 12 months of service, and $15,000 

monthly thereafter. 

• For Users that order after December 

31, 2016: $15,000 monthly. 

Additionally, a User purchasing a 

Partial Cabinet Solution bundle would 

be subject to a 90-day minimum 

commitment, after which period it 

would be subject to the 60-day rolling 

time period.29

As more fully described in the Notice, 

the Exchange states that the purpose of 

offering four Partial Cabinet Solution 

bundles is to attract smaller Users, 

including those with minimal power or 

cabinet space demands or those for 

which the costs attendant with having a 

dedicated cabinet or greater network 

connection bandwidth are too 

burdensome.30 The Exchange proposes 

that the Partial Cabinet Solution 

bundles would be available to Users 

provided: (1) The subscribing User 

purchases only one Partial Cabinet 

Solution bundle; (2) the subscribing 

User and its Affiliates must not 

currently have a Partial Cabinet 

Solution bundle; and (3) after the 

purchase of the Partial Cabinet Solution 

bundle, the subscribing User, together 

with its Affiliates, has an Aggregate 

Cabinet Footprint of no more than 2 

kW.31 The Exchange proposes that for 

purposes of the Partial Cabinet Solution 

bundles, an ‘‘Affiliate’’ of a User would 

be any other User or a Hosted Customer 

that is under 50% or greater common 

ownership or control of the first User.32

Further, the term ‘‘Aggregate Cabinet 

Footprint’’ of a User or Hosted Customer 

is proposed to be defined as: (a) For a 

User, the total kW of the User’s cabinets, 

including both partial and dedicated 

cabinets, and (b), for a Hosted Customer, 

the total kW of the portion of the 

Hosting User’s cabinet, whether partial 

or dedicated, allocated to such Hosted 

Customer.33

A User would be required to inform 

the Exchange immediately of any event 

that causes the User or a Hosted 

Customer to become ineligible for a 

Partial Cabinet Solution bundle, 

including an event that causes another 

User or Hosted Customer to become an 

Affiliate as this can make the 

subscribing User ineligible for the 

bundle.34 If a subscribing User ceases to 

meet the conditions for access to the 

Partial Cabinet Solution bundle, it 

would be charged for each of the 

services individually, at the price for 

each such service set out in the Price 

List and Fee Schedule.35 Such price 

change would be effective as of the date 

that the subscribing User ceased to meet 

the conditions.36

Further, if a subscribing User 

purchased each of the components of a 

Partial Cabinet Solution bundle, 

whether over several purchases or in 

one order, and met the conditions 

described above for access to the Partial 

Cabinet Solution bundle, the Exchange 

would automatically treat that User’s 

services as a Partial Cabinet Solution 

bundle and, effective the date of 

installation of the final component, 

reduce the User’s recurring fee to the 

recurring fee for the relevant bundle.37

In addition, a User that changes its 

Partial Cabinet Solution bundle from 

one option to another will not be subject 

to a second initial charge, but will be 

required to pay the difference, if any, 

between the bundles’ initial charges.38

Finally, the Exchange proposes to 

make non-substantive changes to the 

Price List and Fee Schedule to add 

subheadings under ‘‘Co-Location Fees’’ 

for ‘‘Definitions’’ and ‘‘General 

Notes.’’ 39

III. Summary of Comment Letter and 

Exchange Response 

As noted above, the Commission 

received one comment letter on the 

proposed rule change,40 and a response 

from the Exchange.41 The commenter 

expressed concern about the potential 

for ‘‘GPS spoofing’’ (intentional 

interference with GPS feeds from a 

distance) if GPS data are from an 

unsecured source.42 According to the 

commenter, a successful GPS spoofing 

attack could cause time feed data to 

become corrupted, which could cause 

Users, such as High Frequency Trading 

(‘‘HFT’’) firms that represent substantial 

market volume, to withdraw from the 

market and lead to market disruption.43

The commenter asked particularly 

whether purchasers of Partial Cabinet 

Solution bundles that have access to the 

PTP and NTP feeds, but not the 

dedicated GPS time feed, would have 

any ‘‘special vulnerability to some sort 

of feed failure’’ as a result of ‘‘GPS 

spoofing’’ or otherwise.44

The Exchange responded that ‘‘[t]o 

the best of the Exchange’s knowledge, 

Users that connect to the NTP or the 

PTP, rather than the GPS Time Source, 

do not have a special vulnerability to 

feed failure, irrespective of whether they 

utilize a partial or dedicated cabinet.’’ 45

The Exchange stated that it uses the 

same GPS time feed equipment for its 

production environment and to provide 

time feeds to Users; 46 and that Users 

purchasing time feeds from the 

Exchange (whether GPS, PTP, or NTP) 

benefit from the same protections that 

the Exchange has implemented for its 

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Federal Register / Vol. 81, No. 28 / Thursday, February 11, 2016 / Notices 7397 

47See id. The Exchange added that that 

discussion of these protections in a proposed rule 

change would impair their effectiveness. See id. at 

5. 

48See id. at 3. 

49See id. Regarding the commenter’s concern 

about the potential for GPS spoofing to lead to 

market disruption, the Exchange stated that it could 

not comment on the behavior of HFT Users during 

a ‘‘spoofing event’’ regardless of whether the HFT 

User received its time feed from the Exchange or a 

third party vendor. The Exchange noted, however, 

that the proposal was limited to time feeds 

provided by the Exchange and that Users 

purchasing time feeds from the Exchange benefit 

from the same protections that the Exchange has 

implemented for its own GPS antennas and 

receivers. See id. at 5. 

50 In approving this proposed rule change, as 

modified by Amendment No. 1, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

51 15 U.S.C. 78f(b)(4). 

52 15 U.S.C. 78f(b)(5). 

53See Notice, 80 FR at 78273. 

54See id. 

55See Exchange Response Letter, supra note 5, at 

4. 

56See supra, notes 20 and 21 and accompanying 

text. 

57See supra, note 22 and accompanying text. 

own GPS antennas and receivers.47 The 

Exchange also stated that GPS is the 

source information for all three time 

feeds and that the Exchange routes the 

GPS data through dedicated equipment 

that reformats the GPS data to propagate 

the NTP and PTP.48 The Exchange 

further stated that any disruption to the 

GPS time feed would impact the NTP 

and PTP time feeds in the same way as 

the GPS feed; and that the Exchange has 

no knowledge of any other method to 

‘‘spoof’’ the NTP or PTP feeds if the GPS 

feed were not compromised.49

IV. Discussion and Commission 

Findings 

After careful review and 

consideration of the Exchange’s 

proposal, the comment letter and the 

Exchange’s response, the Commission 

finds that the proposed rule change, as 

modified by Amendment No. 1, is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.50 In particular, the 

Commission finds that the proposed 

rule change, as modified by Amendment 

No. 1, is consistent with Section 6(b)(4) 

of the Act,51 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,52 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 rule change is consistent with 

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

Commission notes the Exchange’s 

representation that the proposed fees for 

the time feed connectivity and Partial 

Cabinet Solution bundles are reasonable 

because the Exchange proposes to offer 

the services 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 

the initial installation, monitoring, 

support and maintenance of such 

services.53 The Exchange states that the 

higher fee in connection with the GPS 

time feed reflects the greater costs for its 

equipment, installation and 

maintenance in comparison with the 

other time feeds.54 In addition, all Users 

that voluntarily select connectivity to 

one or more of the proposed time feeds 

would be charged the same amount for 

the same services. With respect to the 

proposed Partial Cabinet Solution 

bundles in particular, the Commission 

also notes that all Users are subject to 

the same conditions and fees for the 

service selected; all Users are subject to 

the same limits on the number of Partial 

Cabinet Solution bundles and aggregate 

cabinet footprint; all Users that order a 

bundle on or before December 31, 2016 

would have their monthly charges 

reduced by 50 percent for the first 12 

months; and all Users that change their 

Partial Cabinet Solution bundles would 

not be charged a second initial charge 

but instead charged the difference, if 

any, between the initial charges. 

The Commission further believes that 

the Exchange’s proposal to offer Users 

optional connectivity to the GPS, PTP, 

and NTP time feeds is consistent with 

the requirements of Section 6(b)(5) of 

the Act. The proposal to offer 

connectivity to different time feed 

options allows a User to select the time 

protocol that best suits it needs, helping 

to tailor its data center operations to the 

requirements of its business operations, 

and to operate more efficiently. As set 

forth in the Exchange Response Letter, 

the Exchange states that whether a User 

purchases access to the GPS, NTP, or 

PTP time feed, it benefits from the same 

precautions as the Exchange’s 

production environment, as the 

Exchange uses the same GPS time feed 

equipment, including antennas and 

receivers, to provide time feeds to 

Users.55 The Commission therefore 

believes that the proposed time feeds, 

would remove impediments to, and 

perfect the mechanisms of, a free and 

open market and a national market 

system and, in general, protect investors 

and the public interest. The Exchange 

represents that connectivity to the GPS 

time feed is not available for partial 

cabinets because the proximity of the 

GPS and power connections into a 

partial cabinet would expose the GPS to 

interference from the cable power 

connections, interfering with the 

delivery of the GPS data.56 The 

Exchange also represents that 

connectivity to the NTP time feed is not 

proposed to be offered over the IP 

network due to lack of demand.57 For 

these reasons, the Commission believes 

that providing connectivity to the GPS 

Time Source for dedicated cabinets but 

not partial cabinets, and to the NTP time 

feed through the LCN but not the IP 

network, is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Commission also finds the 

Exchange’s proposal to offer Partial 

Cabinet Solution bundles consistent 

with Section 6(b)(5) of the Act. As 

noted, all Users seeking to purchase a 

Partial Cabinet Solution bundle would 

be subject to the same conditions. The 

Commission believes that the proposed 

Partial Cabinet Solution bundles are 

reasonably designed to make it more 

cost effective for Users with minimal 

power or cabinet space demands to take 

advantage of the option for co-location 

services, and therefore that they are 

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 are not designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

For the foregoing reasons, the 

Commission also finds that, the 

proposed rule change, as modified by 

Amendment No. 1, is consistent with 

the Act. 

V. Solicitation of Comments on 

Amendment No. 1 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether this filing, as 

modified by Amendment No. 1, is 

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7398 Federal Register / Vol. 81, No. 28 / Thursday, February 11, 2016 / Notices 

58See supra, note 6. 

59 15 U.S.C. 78s(b)(2). 

60See id. 

61 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 No. SR– 

NYSE–2015–53 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 No. 

SR–NYSE–2015–53. 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 No. SR–NYSE– 

2015–53, and should be submitted on or 

before March 3, 2016. 

VI. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 1 

The Commission finds good cause, 

pursuant to Section 19(b)(2) of the Act, 

to approve the proposed rule change, as 

modified by Amendment No. 1, prior to 

the 30th day after the date of 

publication of Amendment No. 1 in the 

Federal Register. As discussed above, 

Amendment No. 1 updates dates in the 

original proposed rule change and adds 

clarity on the differences between the 

three time feeds in terms of their 

precision.58 The Commission believes 

that these revisions provide clarity on 

when partial cabinet bundle discounts 

will apply along with additional 

information on the differences between 

the various time feeds. Furthermore, the 

Commission believes it is appropriate to 

have these changes incorporated into 

the rules of the Exchange concurrently 

with those changes discussed in the 

original filing. 

Accordingly, the Commission finds 

good cause for approving the proposed 

rule change, as modified by Amendment 

No. 1, on an accelerated basis, pursuant 

to Section 19(b)(2) of the Act.59

VII. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,60 that the 

proposed rule change, as modified by 

Amendment No. 1, (File No. SR–NYSE– 

2015–53) be, and hereby is, approved on 

an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.61

Brent J. Fields, 

Secretary. 

[FR Doc. 2016–02736 Filed 2–10–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77066; File No. SR– 

NASDAQ–2016–008] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change To 

Amend Rule 4120 

February 5, 2016. 

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 January 

29, 2016, The NASDAQ Stock Market 

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

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

Nasdaq is proposing to amend Rule 

4120 and the Nasdaq process for 

commencing trading of a security that is 

the subject of Nasdaq and non-Nasdaqlisted initial public offerings (‘‘IPOs’’) 

and trading halts. 

The text of the proposed rule change 

is available at http://

nasdaq.cchwallstreet.com/, at the 

Exchange’s principal office, 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 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Nasdaq is proposing to make a minor 

modification to the Nasdaq process for 

commencing trading of a security that is 

the subject of Nasdaq and non-Nasdaqlisted IPOs or trading halts. Specifically, 

the Exchange is proposing to modify the 

way in which orders are accepted prior 

to the commencement of trading for 

securities subject to trading halt or IPO. 

This small change will simplify the 

order submission operations for market 

participants during trading halts and 

IPOs. 

Currently, Nasdaq Rule 4120(c)(4)(B) 

provides that during any trading halt or 

pause for which a halt cross under Rule 

4753 will not occur, market participants 

may enter orders during the trading halt 

or pause and designate such orders to be 

held until the termination of the trading 

halt or pause. Under this rule, such 

orders will be held in a suspended state 

until the termination of the halt or 

pause, at which time they will be 

entered into the system. 

Nasdaq Rules 4120(a)(1), (4), (5), (6), 

(9), (10), (11), and (12)(F) provide 

specific instances when the Exchange 

may halt trading of a security listed on 

Nasdaq. Nasdaq Rule 4120(c)(7)(A) 

establishes the process for lifting the 

mstockstill on DSK4VPTVN1PROD with NOTICES