59310 Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78k–1(a)(1). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR240.19b–4. 

3See Securities Exchange Act Release No. 62732 

(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 Rule 2(b) and any ‘‘Sponsored 

Participant,’’ as that term is defined in NYSE 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 

applicable trigger pause percentage 

(31.5%) whereupon the CBSX MarketMaker must immediately move its quote 

back to at least the permissible default 

level of 30%. These requirements shall 

apply to Regulation NMS stocks during 

CBSX Regular Trading Hours after the 

primary listing market has disseminated 

an opening quote in the stock for the 

given trading day. 

Nothing in the above precludes a 

CBSX Market-Maker from voluntarily 

quoting at price levels that are closer to 

the national best bid and best offer than 

required under the proposal. 

2. Statutory Basis 

The statutory basis for the proposed 

rule change is Section 6(b)(5) of the 

Act,6 which requires the rules of an 

exchange 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. The proposed rule 

change also is designed to support the 

principles of Section 11A(a)(1) 7 of the 

Act in that it seeks to assure fair 

competition among brokers and dealers 

and among exchange markets. The 

Exchange believes that the proposed 

rule meets these requirements in that it 

promotes transparency and uniformity 

across markets concerning minimum 

market maker quotation requirements. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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. 

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 (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 or disapprove 

such 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 

Number SR–CBOE–2010–087 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2010–087. 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 inspection and copying 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 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 publicly available. All 

submissions should refer to File 

Number SR–CBOE–2010–087 and 

should be submitted on or before 

October 18, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24055 Filed 9–24–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62960; File No. SR–NYSE– 

2010–56] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Approving a Proposed Rule Change 

Amending Its Price List To Reflect 

Fees Charged for Co-Location 

Services 

September 21, 2010. 

On August 3, 2010, New York Stock 

Exchange LLC (‘‘NYSE’’ 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, NYSE 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. NYSE 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 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 59311 

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. 

6NYSE 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). 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. 

3Changes are marked to the rule text that appears 

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

nasdaqomx.cchwallstreet.com. 

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. 

NYSE 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 

NYSE 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, NYSE 

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 NYSE, 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. 

NYSE 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 

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 similarlysituated market participants. In 

addition, the Commission believes that 

the connectivity options described in 

the proposed rule change are not 

unfairly discriminatory because NYSE 

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 NYSE, 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–NYSE–2010– 

56) 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. 2010–24061 Filed 9–24–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62950; File No. SR– 

NASDAQ–2010–115] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of a Proposed Rule Change To 

Enhance Quotation Requirements for 

Market Makers 

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, The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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 Substance of 

the Proposed Rule Change 

NASDAQ proposes to enhance 

quotation requirements for market 

makers. 

The text of the proposed rule change 

is below. Proposed new language is in 

* * * proposed deletions are in 

[brackets].3

* * * * * 

4751. Definitions 

The following definitions apply to the 

Rule 4600 and 4750 Series for the 

trading of securities listed on Nasdaq or 


srobinson on DSKHWCL6B1PROD with NOTICES