Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 59299 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 62731 

(Aug. 16, 2010), 75 FR 51512 (‘‘Notice’’). 4For the purposes of this filing, the term ‘‘Users’’ 

includes any ‘‘member organization,’’ as that term is 

defined in NYSE Amex Equities Rule 2(b) and any 

‘‘Sponsored Participant,’’ as that term is defined in 

NYSE Amex Equities Rule 123B.30(a)(ii)(B). 

5The Exchange represented that it also allows 

Users, for a monthly fee (i.e., 40% of the applicable 

monthly per kW fee), to obtain an option for future 

use on available, unused cabinet space in proximity 

to their existing cabinet space. Specifically, Users 

may reserve cabinet space of up to 30% of the 

cabinet space under contract, which the Exchange 

will endeavor to provide as close as reasonably 

possible to the User’s existing cabinet space, taking 

into consideration power availability within 

segments of the data center and the overall 

efficiency of use of data center resources as 

determined by the Exchange. 

6Amex represented that pricing for LCN access is 

provided on a stand-alone basis and on a bundled 

basis in combination with SFTI connections and 

optic connections to outside access centers and 

within the data center. The SFTI and optic 

connections are not related to the co-location 

services. 

7 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). 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act; Notice of Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Wednesday, September 29, 2010 at 

10:30 a.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matters at the Closed 

Meeting. 

Commissioner Casey, as duty officer, 

voted to consider the items listed for the 

Closed Meeting in a closed session. 

The subject matter of the Closed 

Meeting scheduled for Wednesday, 

September 29, 2010 will be: 

institution and settlement of injunctive 

actions; institution and settlement of 

administrative proceedings; and other 

matters relating to enforcement proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: 

The Office of the Secretary at (202) 

551–5400. 

Dated: September 23, 2010. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–24228 Filed 9–23–10; 11:15 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62961; File No. SR– 

NYSEAmex–2010–80] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Order Approving a 

Proposed Rule Change Amending Its 

Price List To Reflect Fees Charged for 

Co-Location Services 

September 21, 2010. 

On August 4, 2010, NYSE Amex LLC 

(‘‘Amex’’ 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 to amend its Price List to reflect 

fees charged for co-location services. 

The proposed rule change was 

published for comment in the Federal 

Register on August 20, 2010.3 The 

Commission received no comment 

letters on the proposal. This order 

approves the proposed rule change. 

In its proposal, Amex proposed to 

amend its Price List to identify fees 

pertaining to co-location services, which 

allow Users 4 of the Exchange 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. Amex represented 

that it planned to begin operating a data 

center in Mahwah, New Jersey, from 

which it will offer co-location services. 

The Exchange represented that it will 

offer space at the data center in cabinets 

with power usage capability of either 

four or eight kilowatts (kW).5 In 

addition, the Exchange stated that it will 

offer Users services related to colocation, including cross connections, 

equipment and cable installation, and 

remote ‘‘hot-hands’’ services, which 

allow Users to use on-site data center 

personnel to maintain User equipment. 

The Exchange proposed tiered colocation fees based on the level of 

service (1Gb circuit, 10Gb circuit and 

various bundled options), and 

additional fees for related services. 

Amex represented that Users that 

receive co-location 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 Users that do not 

receive co-location services. The 

Exchange noted that all orders sent to 

Amex 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. Furthermore, Amex 

noted that co-located Users do not 

receive any market data or data service 

product that is not available to all Users. 

Users that receive co-location services 

normally would expect reduced 

latencies in sending orders to the 

Exchange and receiving market data 

from the Exchange. 

In addition, the Exchange represented 

that co-located Users have the option of 

obtaining access to the Exchange’s 

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

local area network available in the data 

center.6 Co-located Users have the 

option of using either the LCN or the 

Exchange’s Secure Financial 

Transaction Infrastructure (‘‘SFTI’’) 

network, to which all Users have access. 

Because it operates as a local area 

network within the data center, the LCN 

provides reduced latencies in 

comparison with SFTI. Other than the 

reduced latencies, the Exchange 

believes 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. 

According to Amex, SFTI and LCN both 

provide Users with access to the 

Exchange’s trading and execution 

systems and to the Exchange’s 

proprietary market data products. User 

access to non-proprietary market data 

products is available through SFTI and 

not through LCN. 

Amex represented that it offers colocation space based on availability and 

the Exchange believes that it has 

sufficient space in the Mahwah data 

center to accommodate current demand 

on an equitable basis for the foreseeable 

future. In addition, the Exchange 

believes that any difference among the 

positions of the cabinets within the data 

center does not create any material 

difference to co-location Users in terms 

of access to the Exchange. 

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.7 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 


srobinson on DSKHWCL6B1PROD with NOTICES
59300 Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 

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

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

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 Initially, the ADF was limited to quotations and 

trade reports in Nasdaq securities. See Securities 

Exchange Act Release No. 46249 (July 24, 2002), 67 

FR 49822 (July 31, 2002). In 2006, the ADF was 

expanded to include all NMS stocks. See Securities 

Exchange Act Release No. 54537 (September 28, 

2006), 71 FR 59173 (October 6, 2006). 

4 15 U.S.C. 78o–3(b)(6). 

6(b)(4) of the Act,8 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,9 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 tiered fees for co-location and 

related services are reasonable and 

equitably allocated insofar as they are 

applied on the same terms to similarly 

situated market participants. In 

addition, the Commission believes that 

the connectivity options described in 

the proposed rule change are not 

unfairly discriminatory because Amex 

makes the co-location services 

uniformly available to all Users who 

voluntarily request them and pay the 

fees as detailed in the proposal. As 

represented by Amex, these fees are 

uniform for all such customers and may 

vary from User to User due to each 

User’s choice of service package. 

Finally, the Commission believes that 

the proposal will further the protection 

of investors and the public interest 

because it will provide greater 

transparency regarding the connectivity 

options available to market participants. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,10 that the 

proposed rule change (SR–NYSEAmex– 

2010–80) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24063 Filed 9–24–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62953; File No. SR–FINRA– 

2010–049] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of a 

Proposed Rule Change Relating to 

Quotation Requirements on the 

Alternative Display Facility 

September 20, 2010. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on 

September 17, 2010, Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

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 FINRA. 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 

FINRA is proposing to amend FINRA 

Rule 6272 to enhance quotation 

requirements on the Alternative Display 

Facility (‘‘ADF’’). 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA, 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, 

FINRA 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. FINRA 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 

In 2002, FINRA created the ADF to 

ensure that any FINRA member, 

including alternative trading systems, 

seeking to display quotations for NMS 

stocks in the over-the-counter (‘‘OTC’’) 

market, rather than through an exchange 

platform, has an alternative venue 

through which to post its OTC 

quotations and report trades.3

FINRA and numerous exchanges are 

filing proposed rule changes to enhance 

the minimum quotation requirements 

for market makers by requiring market 

makers for each stock in which they are 

registered to continuously maintain 

two-sided quotations within a 

designated percentage of the National 

Best Bid and National Best Offer (or if 

there is not a National Best Bid or Offer, 

the last reported sale). These proposed 

rule changes are intended to eliminate 

trade executions against market maker 

‘‘placeholder’’ quotations that are priced 

far away from the inside market, 

commonly known as ‘‘stub quotes.’’ 

Under these proposed rules, limitations 

on permissible quotations are 

determined by the individual character 

of the security, the time of day in which 

the quote is entered, and any applicable 

stock trading pause triggers. 

In order to ensure consistency in 

quotation requirements across markets, 

FINRA is proposing to amend Rule 6272 

to impose the same limitations on a 

Registered Reporting ADF Market 

Maker’s quotations on the ADF that will 

apply to market makers on national 

securities exchanges. The proposed rule 

change would thus require all 

Registered Reporting ADF Market 

Makers to have systems in place to 

ensure that any quotations displayed on 

the ADF met the requirements of Rule 

6272. 

FINRA will announce the 

implementation date on its Web site. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,4 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes that the 

proposed rule change will ensure 

consistent treatment of quotations 

across markets and could prevent the 

execution of numerous transactions at 


srobinson on DSKHWCL6B1PROD with NOTICES