66176 Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Notices 

31 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 17c(f). 

32 15 U.S.C. 78o–3(b)(6). 

33For example, an investor may not be eligible for 

dividend payments if the ex-dividend date falls 

between the transaction date and the settlement 

date. 

34 15 U.S.C. 78s(b)(2). 

35 15 U.S.C. 78s(b)(2). 

36 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Response, the Commission finds that 

the proposed rule change is consistent 

with the requirements of the Exchange 

Act, and the rules and regulations 

thereunder that are applicable to 

national securities associations.31 In 

particular, the Commission believes the 

proposed rule change is consistent with 

the provisions of Section 15A(b)(6) of 

the Exchange Act,32 which requires, 

among other things, that FINRA rules 

must be designed to prevent fraudulent 

and manipulative acts and practices, 

promote just and equitable principles of 

trade, and in general, to protect 

investors and the public interest. The 

proposed rule change is consistent with 

FINRA’s obligations under the Exchange 

Act to protect investors and the public 

interest because the proposed rule 

streamlines the rules governing brokerdealers’ confirmation requirements by 

cross-referencing Exchange Act Rule 

10b–10 while maintaining the 

additional disclosure requirements of 

NASD IM–2110–6 (i.e., relating to 

callable securities) and extending the 

additional NYSE Rule 409(f) 

requirements (i.e., relating to settlement 

date) to a broader range of equity 

securities. 

The Commission believes that FINRA 

has adequately addressed the concerns 

raised by commenters with respect to 

the application of the settlement date 

provisions to mutual fund and variable 

annuity transactions. In particular, 

Amendment No. 1 limits the settlement 

date disclosure requirement to 

Regulation NMS stock and over-thecounter equity securities subject to the 

FINRA Rule 6600 series. We also believe 

that the proposed rule is consistent with 

the public interest and the protection of 

investors because information regarding 

the callable status of a security is 

generally a material fact for investors. 

Indeed, callable securities can subject 

investors to additional reinvestment risk 

because investors may have less 

attractive alternatives for reinvesting the 

proceeds if the issuer calls the security 

earlier than the investor’s intended sell 

date, even when the security is called 

away at a premium. In addition, the 

disclosure of settlement date on a 

confirmation is important for investors 

because many of the rights and benefits 

associated with the beneficial 

ownership of a security do not confer 

until settlement date.33 Finally, we note 

that the Exchange Act does not require 

a cost/benefit analysis with respect to 

proposed self-regulatory organization 

rules that are filed with, and approved 

by, the Commission. 

V. Accelerated Approval 

The Commission finds good cause, 

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

Exchange Act,34 for approving the 

proposed rule change, as modified by 

Amendment No. 1, prior to the 30th day 

after publication of Amendment No. 1 

in the Federal Register. The changes 

proposed in Amendment No. 1 respond 

to specific concerns raised by 

commenters. In particular, Amendment 

No. 1 will limit the application of the 

settlement date provisions to 

transactions in Regulation NMS 

securities and to over-the-counter equity 

securities subject to the reporting 

requirements of the FINRA Rule 6600 

series, other than direct participation 

programs as defined in FINRA Rule 

6642. 

Accordingly, the Commission finds 

that good cause exists to approve the 

proposal, as modified by Amendment 

No. 1, on an accelerated basis. 

VI. 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–FINRA–2009–058 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 

Number SR–FINRA–2009–058. 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 filings 

also will be available for inspection and 

copying at the principal office of 

FINRA. 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–FINRA–2009–058 and 

should be submitted on or before 

November 17, 2010. 

VII. Conclusion 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Exchange Act,35

that the proposed rule change (SR– 

FINRA–2009–058), as modified by 

Amendment No. 1, be, and hereby is, 

approved on an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.36

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27145 Filed 10–26–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63158; File No. SR–Phlx– 

2010–144] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Codify 

Prices for Co-Location Services 

October 21, 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 October 

14, 2010, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Notices 66177 

3Exchange Act Release No. 62395 (June 28, 2010), 

75 FR 38584 (July 2, 2010). 

4 15 U.S.C. 78f. 

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

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(4). 8 15 U.S.C. 78s(b)(3)(a)(ii). 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

substantially 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 

The Exchange is filing with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

to codify pricing for co-location 

services. The text of the proposed rule 

change is available at http:// 

www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, 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. The Exchange 

will implement the proposed rule 

change immediately. 

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 

Recently, the Commission approved 

an initial fee schedule of existing fees 

for the Exchange’s co-location services.3

This filing seeks to codify additional 

fees not included in that schedule. 

These fees are: (1) A one-time $3,000 fee 

for users selecting a Phase 3 2x 20 208 

volt cabinet power option; (2) a onetime $200 per shelf fee for additional 

cabinet shelves within a power cabinet; 

(3) a one-time $175 fee per lock for 

single master key locks that allow 

customers to use a single key to access 

their secured equipment; and (4) a onetime per spout fee of $750 for cable 

downspouts that gather and secure 

cables entering customer equipment. All 

the foregoing products are provided 

only upon customer request, and the 

Exchange notes that use of its colocation products and services is 

completely voluntary and all are offered 

on a non-discriminatory basis. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,4

in general, and with Section 6(b)(5) of 

the Act,5 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 filing codifies and makes 

transparent uniform fees imposed for 

co-location services. 

In addition, the Exchange believes 

that the proposed rule change is 

consistent with the provisions of 

Section 6 of the Act,6 in general, and 

with Section 6(b)(4) of the Act,7 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. In particular, the 

Exchange notes that the use of colocation services is entirely voluntary 

and made available on a nondiscriminatory basis. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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 were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.8 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 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, 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–Phlx–2010–144 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–Phlx–2010–144. 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 


srobinson on DSKHWCL6B1PROD with NOTICES
66178 Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Notices 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5Exchange Act Release No. 62396 (June 28, 2010), 

75 FR 38585 (July 2, 2010). 

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). 

10 15 U.S.C. 78s(b)(3)(A)(ii). 

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 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–Phlx– 

2010–144 and should be submitted on 

or before November 17, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27198 Filed 10–26–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63157; File No. SR–BX– 

2010–068] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Codify 

Pricing for Co-Location Services 

October 21, 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 October 

14, 2010, NASDAQ OMX BX, Inc. (‘‘BX’’ 

or ‘‘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 BX. Pursuant to Section 

19(b)(3)(A)(ii) of the Act 3 and Rule 19b– 

4(f)(2) thereunder,4 BX has designated 

this proposal as establishing or changing 

a due, fee, or other charge, which 

renders the proposed rule change 

effective upon filing. 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 

BX proposes to codify pricing for colocation services. BX will implement 

the proposed change immediately. The 

text of the proposed rule change is 

available at http:// 

nasdaqomxbx.cchwallstreet.com, at 

BX’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, BX 

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. BX 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 

Recently, the Commission approved 

an initial fee schedule of existing fees 

for the Exchange’s co-location services.5

This filing seeks to codify additional 

fees not included in that schedule. 

These fees are: (1) A one-time $3,000 fee 

for users selecting a Phase 3 2x 20 208 

volt cabinet power option; (2) a onetime $200 per shelf fee for additional 

cabinet shelves within a power cabinet; 

(3) a one-time $175 fee per lock for 

single master key locks that allow 

customers to use a single key to access 

their secured equipment; and (4) a onetime per spout fee of $750 for cable 

downspouts that gather and secure 

cables entering customer equipment. All 

the foregoing products are provided 

only upon customer request, and the 

Exchange notes that use of its colocation products and services is 

completely voluntary and all are offered 

on a non-discriminatory basis. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,6

in general, and with Section 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 filing codifies and makes 

transparent uniform fees imposed for 

co-location services. 

In addition, the Exchange 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. In particular, the 

Exchange notes that the use of colocation services is entirely voluntary 

and made available on a nondiscriminatory basis. 

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 were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.10 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 


srobinson on DSKHWCL6B1PROD with NOTICES