67422 Federal Register / Vol. 75, No. 211 / Tuesday, November 2, 2010 / Notices 

16 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

17 15 U.S.C. 78o–3(b)(5). 

18 15 U.S.C. 78o–3(b)(6). 

19 15 U.S.C. 78s(b)(2). 

20FINRA states it will implement the proposed 

rule change on the first day of the month following 

Commission approval. FINRA will announce the 

implementation of the proposed rule change in a 

Regulatory Notice to be published no later than 30 

days following Commission approval. 

21 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). 

5This schedule includes modifications made by 

SR–BX–2010–068, filed with the Commission on 

October 14, 2010. 

6Co-location services are a suite of hardware, 

power, telecommunication and other ancillary 

products and services that allow users to place their 

trading and communications equipment in close 

physical proximity to the quoting and execution 

facilities of the Exchange. 

7The Exchange is also removing from the fee 

schedule an incorrect duplicate $1000 installation 

fee for CME market data connectivity. 

8Separate fees for market data are charged 

independently by individual markets. 

options business of its sole members, it 

is not technically the DOEA for such 

firms. Second, the 17d–2 Agreement 

addresses only a firm’s public options 

business. As such, a firm that conducts 

only a proprietary options business, 

irrespective of whether such firm is a 

member of FINRA and another SRO, 

would not be covered by the 17d–2 

Agreement, and FINRA would not 

technically be the DOEA. FINRA stated 

that although its regulatory 

responsibilities are more limited for a 

firm that does not conduct a public 

options business, it still retains 

regulatory responsibilities over the 

firm’s options activities. 

III. Discussion and Commission 

Findings 

After carefully reviewing the 

proposed rule change, the Commission 

finds that the proposal is consistent 

with the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

association.16 In particular, the 

Commission finds that the proposal is 

consistent with Section 15A(b)(5) of the 

Act,17 which requires that a national 

securities association have rules that 

provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among its members and other persons 

using its facilities. Further, the 

Commission finds that the proposal is 

consistent with Section 15A(b)(6) of the 

Act,18 which requires, among other 

things, that FINRA rules 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. 

The Commission believes that 

removal of the TAF exemption for 

transactions in exchange listed options 

effected by members for whom FINRA 

is not the DOEA is consistent with the 

Act because it more properly aligns the 

imposition of the TAF with those 

situations where FINRA has regulatory 

responsibility over the member firm. 

It is therefore ordered, pursuant to 

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

proposed rule change (SR–FINRA– 

2010–046) be, and hereby is, 

approved.20

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27671 Filed 11–1–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63190; File No. SR–BX– 

2010–069] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Modify 

Pricing for Co-Location Services 

October 27, 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 

25, 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 [sic] pricing for 

co-location 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 

The Exchange is proposing to modify 

its fee schedule 5 for co-location 

services.6 These modifications are 

summarized below: 

First, as a result of the entry of the 

Direct Edge and BATS Y exchanges into 

the public market and the availability of 

other data feeds, the Exchange is 

implementing and modifying its 

telecommunications installation and 

connectivity fees to accommodate these 

data linkages for co-located customers. 

The new fees are: (1) $125 per-month 

fee for connectivity to the Arca Best Bid 

and Offer feed; (2) a $1,500 per-month 

fee for connectivity to the new BATS Y 

exchange; and (3) a one-time fee of 

$1000 for the installation of 

telecommunications connectivity for the 

Direct Edge exchange, along with a permonth fee of $2500 for each of its two 

markets, EDGA and EDGX. In 

connection with foregoing, the 

Exchange notes that its installation fee 

for Direct Edge is equal to that currently 

charged for installation of SIAC, CME,7

and BATS connectivity, and that the 

monthly rates proposed are based on the 

anticipated bandwidth needed to 

accommodate a particular fee and are 

similar to connectivity fees imposed by 

other vendors.8

Next, to provide additional flexibility 

for customers to select only the 

equipment they need, the Exchange 

proposes to separate its current 

combined $1750 installation fee for 

cooling fans and perforated tiles into 

separate fees of $1,500 for the fans and 

$250 for the tiles. 


hsrobinson on DSK69SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 211 / Tuesday, November 2, 2010 / Notices 67423 

9 15 U.S.C. 78f. 

10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78f. 

12 15 U.S.C. 78f(b)(4). 13 15 U.S.C. 78s(b)(3)(A)(ii). 14 17 CFR 200.30–3(a)(12). 

Further, in the area of providing 

internet bandwidth to users, the 

Exchange, responding to decreased 

demand for lower-level bandwidth 

options, is eliminating its current 256kb, 

500kb, and1.5Mb options and replacing 

them with new 3Mb, 4Mb, and 5Mb 

options priced at $700, $900, and $1,100 

per-month respectively. 

Finally, the Exchange is offering 

various services related to hardware 

installation, security and storage 

including: a custom installation fee, 

which will vary depending upon cost, 

for installing customized equipment to 

meet individual customer needs; cabinet 

caging, a metal security fencing option 

to protect customer equipment at a 

monthly rate of $3,000, with installation 

fees individually determined by the size 

and complexity of the equipment to be 

caged; and, lastly, a monthly cabinet 

equipment storage fee in the amount of 

$500. This storage fee differs from the 

equipment storage fee of $100 in the 

current fee schedule, which relates to 

temporary storage of equipment by the 

Exchange itself rather than in a 

customer controlled cabinet. 

As with all the Exchange’ [sic] colocation offerings, use of the above 

products and services is completely 

voluntary, and all products and services 

are available 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,9

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

the Act,10 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,11 in general, and 

with Section 6(b)(4) of the Act,12 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.13 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–BX–2010–069 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–BX–2010–069. 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 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– 

2010–069 and should be submitted on 

or before November 23, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27663 Filed 11–1–10; 8:45 am] 

BILLING CODE 8011–01–P 


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