Federal Register / Vol. 75, No. 187 / Tuesday, September 28, 2010 / Notices 59777 

21The text of the proposed rule change is 

available on the Commission’s Web site at http:// 

www.sec.gov. 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Changes are marked to the rule text that appears 

in the electronic manual of BX found at http:// 

nasdaqomxbx.cchwallstreet.com. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate 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 or disapprove 

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–CBOE–2010–084 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–CBOE–2010–084. 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 

Web site (http://www.sec.gov/rules/ 

sro.shtml). Copies of the submission,21

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 CBOE. 

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–CBOE–2010–084 and should be 

submitted on or before October 19, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24343 Filed 9–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62969; File No. SR–BX– 

2010–064] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Order Granting Accelerated 

Approval to a Proposed Rule Change 

To Establish Pricing for 10Gb Direct 

Circuit Connections and To Codify 

Pricing for Direct Circuit Connections 

Capable of Supporting Up to 1Gb for 

Customers Who Are Not Co-Located in 

the Exchange’s Datacenter 

September 22, 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 10, 2010, The NASDAQ 

OMX BX, Inc. (the ‘‘Exchange’’ or ‘‘BX’’) 

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 Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons, and is 

approving the proposal on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange is filing with the 

Commission a proposed rule change to 

establish pricing for 10Gb direct circuit 

connections and to codify pricing for 

direct circuit connections capable of 

supporting up to 1Gb for customers who 

are not co-located in the Exchange’s 

datacenter. The text of the proposed rule 

change is below. Proposed new 

language is underlined and proposed 

deletions are in brackets [sic].3

* * * * * 

7051. DIRECT CONNECTIVITY TO BX 

Description Installation Fee Ongoing Monthly Fee 

Direct Circuit Connection to BX (10Gb) .................................................................................. $1,000 $5000 

Direct Circuit Connection to BX (supports up to 1Gb) ............................................................ $1000 $1000 

Optional Cable Router ............................................................................................................. $925 


srobinson on DSKHWCL6B1PROD with NOTICES
59778 Federal Register / Vol. 75, No. 187 / Tuesday, September 28, 2010 / Notices 

4The Exchange filed SR–BX–2010–043 seeking to 

establish and codify the fees set forth in this filing. 

That proposal was published for comment and 

approved by the Commission. The approval, 

however, pre-dated the BX Board’s approval of the 

proposal. As such, BX is re-filing the proposal and 

seeking accelerated approval. 

5BX provides an additional 1Gb copper 

connection option to the Exchange for co-located 

customers. Given the technological constraints of 

copper connections over longer distances, the 

Exchange does not offer a copper connection option 

to users outside of its datacenter. 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4). 

(b) and (c) Not applicable [sic]. 

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 III 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 

a. Purpose 

The Exchange is re-proposing to 

establish fees for direct 10Gb circuit 

connections, and to codify fees for 

direct circuit connections capable of 

supporting up to 1Gb, for customers 

who are not co-located at the Exchange’s 

datacenter.4 Currently, the Exchange 

already makes available to co-located 

customers a 10Gb circuit connection 

and charges for each a $1000 initial 

installation charge as well as an ongoing 

monthly fee of $5000. The Exchange is 

establishing the same fees for non colocated customers with a 10Gb circuit.5

The Exchange also already makes 

available to both co-located and non colocated customers direct connections 

capable of supporting up to 1Gb, with 

per connection monthly fees of $500 for 

co-located customers and $1000 for non 

co-located customers. Monthly fees are 

higher for non co-located customers 

because direct connections require BX 

to provide cabinet space and 

middleware for those customers’ thirdparty vendors to connect into the 

datacenter and, ultimately, to the 

trading system. Finally, for non colocated customers the Exchange charges 

an optional installation fee of $925 if the 

customer chooses to use an on-site 

router. 

b. Statutory Basis 

BX believes that the proposed rule 

change is consistent with the provisions 

of Section 6 of the Act,6 in general, and 

with Sections 6(b)(5) of the Act,7 in 

particular, in that the proposal 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 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. In particular, the 

proposal will provide greater 

transparency into the connectivity 

options available to market participants. 

The Exchange also believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,8

in general, and with Section 6(b)(4) of 

the Act,9 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and issuers and other 

persons using any facility or system 

which the Exchange operates or 

controls. The filing codifies and makes 

transparent the fees imposed for direct 

connections to non co-located 

customers. These fees are uniform for all 

such customers and are either 

comparable to fees charged to co-located 

customers or vary due to different costs 

associated with providing service to the 

two customer types. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

BX does not believe that the proposed 

rule change will result in any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act, as amended. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments on the proposed 

rule change were neither solicited nor 

received. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended, 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–BX–2010–064 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–BX–2010–064. 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 website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street, NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. All comments received will 

be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–BX– 

2010–064 and should be submitted on 

or before October 19, 2010. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

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 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 187 / Tuesday, September 28, 2010 / Notices 59779 

10 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). 

11 15 U.S.C. 78f(b)(4). 

12 15 U.S.C. 78f(b)(5). 

13See supra note 4. 

14See Securities Exchange Act Release Nos. 

62663 (August 9, 2010), 75 FR 49543 (August 13, 

2010) (SR–NASDAQ–2010–77) (Order approving a 

NASDAQ Stock Market, LLC proposed rule change 

relating to pricing for direct circuit connections); 

62639 (August 4, 2010), 75 FR 48391 (August 10, 

2010) (SR–Phlx–2010–89) (Order approving a 

NASDAQ OMX PHLX, Inc. proposed rule change 

relating to pricing for direct circuit connections). 

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

16 17 CFR 200.30–3(a)(12). 

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

2Securities Exchange Act Release No. 62658 

(Aug. 5, 2010), 75 FR 49010 (Aug. 12, 2010). 3OCC’s By-laws and Rules already accommodate 

equity and index options that expire on a day other 

than a Saturday following the third Friday of the 

month. For example, they accommodate quarterly 

options, which expire on the last business day of 

a calendar quarter, and short term options, which 

expire a week after their introduction for trading. 

Quarterly index options and short term index 

options are also subject to automatic exercise 

procedures. 

exchange.10 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(4) of the Act,11 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,12 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 fees for 10Gb and 1Gb direct 

circuit connections are reasonable and 

equitably allocated insofar as they are 

applied on the same terms to similarlysituated market participants. In 

addition, the Commission believes that 

the connectivity options described in 

the proposed rule change are not 

unfairly discriminatory because BX 

makes the 10Gb and 1Gb direct circuit 

connections uniformly available to all 

non-co-located customers who 

voluntarily request them and pay the 

fees as detailed in the proposal. As 

represented by BX, these fees are 

uniform for all such customers and are 

either the same as fees charged to colocated customers, or vary due to 

different costs incurred by BX 

associated with providing service to the 

two different customer types. 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. 

The substance of the proposed rule 

has already been subject to full notice 

and public comment, and no comments 

were received.13 Moreover, similar 

pricing is already in effect for these 

same services being offered by BX’s 

sister markets, the NASDAQ Stock 

Market, LLC and NASDAQ OMX PHLX, 

Inc.14 Accordingly, the Commission 

finds good cause, pursuant to Section 

19(b)(2) of the Act, for approving the 

proposed rule change prior to the 

thirtieth day after the date of 

publication of notice of filing thereof in 

the Federal Register. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,15 that the 

proposed rule change (SR–BX–2010– 

064) be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading & Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24259 Filed 9–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISION 

[Release No. 34–62942; File No. SR–OCC– 

2010–16] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change 

Relating to Weekly Options And 

Monthly Options 

September 20, 2010. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

September 15, 2010, The Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission the proposed rule change 

as described in Items I and II below, 

which Items have been prepared 

primarily by OCC. 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 proposed rule change would 

accommodate options that expire on (a) 

any Friday of a calendar month other 

than the third Friday of a calendar 

month (‘‘Weekly Options’’) or (b) on the 

last trading day of a calendar month 

(‘‘Monthly Options’’). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

OCC 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. OCC 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 

The purpose of this proposed rule 

change is to accommodate Weekly 

Options and Monthly Options. The 

Chicago Board Options Exchange, Inc. 

(‘‘CBOE’’), is proposing to trade Weekly 

Options and Monthly Options on broadbased indexes (‘‘Weekly Index Options’’ 

and ‘‘Monthly Index Options,’’ 

respectively).2 Series of Weekly Index 

Options will expire on a Friday of a 

calendar month other than the third 

Friday and Monthly Index Options will 

expire on the last trading day of a 

calendar month. If the last trading day 

of the month is a Friday, CBOE would 

opt to list Monthly Index Options over 

Weekly Index Options. Weekly Index 

Options and Monthly Index Options 

would be European-style, P.M.-settled 

contracts. CBOE proposes for these 

contracts to be subject to ‘‘automatic 

exercise procedures,’’ meaning that 

these contracts would automatically be 

exercised at expiration without the 

opportunity for the clearing member to 

submit contrary exercise instructions if 

immediately prior to expiration the 

contract’s settlement amount or exceeds 

a certain predetermined amount. 

Weekly Options and Monthly Options 

can be cleared and settled by OCC with 

relatively minor revisions to current Bylaws and Rules to provide for options 

that expire on a monthly or weekly 

schedule as proposed by CBOE.3

Therefore, OCC proposes amending 

Article I, Section 1 of its by-laws to 

include definitions covering Weekly 


srobinson on DSKHWCL6B1PROD with NOTICES