Federal Register / Vol. 82, No. 193 / Friday, October 6, 2017 / Notices 46877 

23Section 19(b)(2) of the Act, as amended by the 

Securities Acts Amendments of 1975, Public Law 

94–29 (June 4, 1975), grants the Commission 

flexibility to determine what type of proceeding— 

either oral or notice and opportunity for written 

comments—is appropriate for consideration of a 

particular proposal by a self-regulatory 

organization. See Securities Acts Amendments of 

1975, Senate Comm. on Banking, Housing & Urban 

Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 

(1975). 

24See supra note 3. 

25 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b–4. 

IV. Procedure: Request for Written 

Comments 

The Commission requests that 

interested persons provide written 

submissions of their views, data, and 

arguments with respect to the issues 

identified above, as well as any other 

concerns they may have with the 

proposal. In particular, the Commission 

invites the written views of interested 

persons concerning whether the 

proposal is consistent with Section 

6(b)(5) or any other provision of the Act, 

or the rules and regulations thereunder. 

Although there do not appear to be any 

issues relevant to approval or 

disapproval that would be facilitated by 

an oral presentation of views, data, and 

arguments, the Commission will 

consider, pursuant to Rule 19b–4, any 

request for an opportunity to make an 

oral presentation.23

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

proposal should be approved or 

disapproved by October 27, 2017. Any 

person who wishes to file a rebuttal to 

any other person’s submission must file 

that rebuttal by November 13, 2017. The 

Commission asks that commenters 

address the sufficiency of the 

Exchange’s statements in support of the 

proposal, which are set forth in 

Amendment No. 1,24 in addition to any 

other comments they may wish to 

submit about the proposed rule change. 

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 email to rule-comments@

sec.gov. Please include File Number SR– 

NYSEArca–2017–56 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2017–56. This 

file number should be included on the 

subject line if email 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 

10:00 a.m. and 3:00 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– 

NYSEArca–2017–56 and should be 

submitted on or before October 27, 

2017. Rebuttal comments should be 

submitted by November 13, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–21537 Filed 10–5–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81798; File No. SR– 

NASDAQ–2017–097] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Exchange’s Connectivity Fees at Rule 

7051 

October 2, 2017. 

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 18, 2017, The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘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 

The Exchange proposes to amend 

Rule 7051, which sets forth the schedule 

of fees that the Exchange charges to its 

clients for connecting directly to the 

Exchange’s data centers and/or 

receiving third party market data feeds 

and other non-Exchange services from 

the Exchange via circuits provided by 

third party telecommunications 

providers. 

While these amendments are effective 

upon filing, the Exchange has 

designated the proposed amendments to 

be operative on October 1, 2017. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaq.cchwallstreet.com/, at 

the principal office of the Exchange, 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, 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 

The Exchange proposes to amend 

Rule 7051, which sets forth the schedule 

of fees that the Exchange charges to its 

clients for connecting directly to the 

Exchange’s data centers and/or 

receiving third party market data feeds 

and other non-Exchange services from 

the Exchange via circuits provided by 

third party telecommunications 

providers. 

Subscribers may use the connectivity 

provided under Rule 7051 to link them 


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46878 Federal Register / Vol. 82, No. 193 / Friday, October 6, 2017 / Notices 

3 15 U.S.C. 78f(b). 

4 15 U.S.C. 78f(b)(4) and (5). 

to the Exchange for order entry and to 

receive proprietary data feeds, to receive 

public quote feeds from Securities 

Information Processors, and to connect 

to facilities of FINRA, such as the 

FINRA/Nasdaq TRF. The Exchange 

provides various direct connectivity 

options based on the capacity of the 

connection. A subscriber generally 

determines the capacity of the 

connection it needs based on the 

number of data services it wishes to 

receive and its estimated usage for 

trading and trade reporting purposes. 

For direct connectivity to Nasdaq, 

Rule 7051(a) provides for 1 GB, 1 GB 

Ultra, and 10 GB Ultra hand-offs. The 

installation fee for all such connections 

is $1,500 and the monthly fee is $7,500 

for 10 GB connections and $2,500 for 

both 1 GB and 1 GB Ultra hand-offs. The 

Exchange also charges a $925 fee to 

customers that choose to install a cable 

router in its data center and a monthly 

fee of $150 for customers that choose to 

install equipment in the Exchange’s data 

center to support the connectivity. 

For direct connectivity to third party 

services, Rule 7051(b) provides for 1GB 

Ultra and 10 GB Ultra hand-offs. The 

installation fee for both 10 GB Ultra and 

1 GB Ultra direct connections is $1,500. 

Meanwhile, the monthly fee is $5,000 

for 10 GB Ultra connections and $2,000 

for 1 GB Ultra hand-offs. For 1 GB Ultra 

or 10 GB Ultra connections for UTP 

only, the installation fee and monthly 

fee is waived for the first two 

connections and thereafter the 

installation fee is $100 and the monthly 

fee is also $100. Again, the Exchange 

charges a $925 fee to customers that 

choose to install a cable router in its 

data center for purposes of receiving 

these third party services and a monthly 

fee of $150 for customers that choose to 

install equipment in the Exchange’s data 

center to support the connectivity. 

In order to reflect the changing nature 

of the Exchange’s ecosystem and of the 

connection technologies it employs, the 

Exchange proposes to clarify Rule 7051 

in several respects. 

First, the Exchange proposes to list 

separately those fees it charges for 

certain connectivity that it presently 

includes under the general heading of 

Direct Connectivity, pursuant to Rule 

7051(a). Specifically, the Exchange 

proposes to break out the fees it charges 

to clients that connect directly to the 

Exchange through a ‘‘Point of Presence’’ 

or ‘‘POP’’ from the fees it charges to 

clients that connect through a direct 

circuit connection. In contrast to a 

traditional direct circuit connection, in 

which a client uses an external 

telecommunications provider’s circuit 

to connect directly to the Exchange’s 

primary data center in Carteret, New 

Jersey, a ‘‘POP’’ connection is one in 

which a client directly connects to the 

Exchange at one of its satellite data 

centers located elsewhere. Each such 

POP, in turn, has a fully redundant 

connection to the Exchange’s primary 

data center. 

The Exchange proposes to list POP 

connectivity fees separately from 

traditional direct circuit connectivity 

fees because it wishes to highlight POP 

connectivity as a distinct connection 

option, particularly as it contemplates 

expanding the numbers and locations of 

its POPs in the future. 

To effect the foregoing change, the 

Exchange proposes to add a new 

subsection (c) to Rule 7051 entitled 

‘‘Point of Presence Connectivity.’’ Under 

proposed Rule 7051(c), the installation 

and monthly fees that the Exchange 

proposes to charge expressly for POP 

connectivity would not be new fees and 

they would differ only in name, and not 

in amount, from those fees that clients 

presently pay under Rule 7051(a) for the 

same connectivity. The new subsection 

would provide for clients to choose 

between 10 GB Ultra and 1 GB Ultra 

bandwidth hand-offs for connections to 

POPs. However, the proposed 

subsection (c) will not include charges 

for installing optional cable routers or 

cabinet space rentals insofar as clients 

may not install routers in or rent cabinet 

space directly from the Exchange at the 

POPs. Likewise, proposed subsection (c) 

will not include fees for regular 1 GB 

hand-offs insofar such hand-offs are not 

available for connections to POPs. 

In addition to the above, the Exchange 

proposes to update the headings of Rule 

7051(a) and (b) so that they more 

accurately reflect the nature of the 

services to which they apply. Because 

Rule 7051(a) and (b) list the fees that the 

Exchange charges customers for 

installing and maintaining direct 

telecommunications ‘‘circuit’’ 

connectivity with the Exchange, the 

Exchange proposes to change the 

heading of subsection (a) from ‘‘Direct 

Connectivity to Nasdaq’’ to ‘‘Direct 

Circuit Connection to Nasdaq’’ and the 

heading of subsection (b) from ‘‘Direct 

Connectivity to Third Party Services’’ to 

‘‘Direct Circuit Connection to Third 

Party Services.’’ 

Lastly, the Exchange proposes to 

amend Rule 7051 to state that the 

connectivity provided under the Rule 

also applies to connectivity to the 

markets of The NASDAQ Stock Market 

LLC, NASDAQ BX, Inc., NASDAQ 

PHLX LLC, Nasdaq ISE LLC, Nasdaq 

MRX LLC, and Nasdaq GEMX LLC. This 

purpose of this proposal is to specify 

that a client can use the connections it 

establishes and maintains under the 

Rule to connect, not only to the 

Exchange, but also to any or all of its 

sister Exchanges, and in doing so, it will 

be billed only once. Certain of the 

Exchange’s other Rules already include 

similar language, including Rules 7030 

and 7034. The Exchange wishes now to 

add such language to Rule 7051. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with section 6(b) 

of the Act,3 in general, and furthers the 

objectives of sections 6(b)(4) and 6(b)(5) 

of the Act,4 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, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Exchange believes that its 

proposal to separately list its fees for 

POP connectivity is reasonable as a 

means of clearly distinguishing POP 

connectivity from traditional direct 

circuit connectivity as set forth in Rule 

7051(a). The proposal will not assess 

any new or different fees to customers 

that connect to the Exchange through 

POPs. Instead, the proposal will merely 

re-characterize the fees that clients 

presently pay under Rule 7051(a) as 

relating specifically to POP 

connectivity. The Exchange also 

believes that this proposal is an 

equitable allocation and is not unfairly 

discriminatory because it will apply all 

similarly situated clients that connect 

through POPs. 

The Exchange believes that its 

proposal to modify the headings of 

subsections (a) and (b) of Rule 7051 is 

also reasonable because it clarifies that 

the fees in these subsections pertain 

specifically to connections to the 

Exchange that involve circuits provided 

by external telecommunications 

providers. Again, this proposal is an 

equitable allocation and is not unfairly 

discriminatory in that it will apply to all 

clients that use such direct circuits to 

connect to the Exchange. 

Lastly, the Exchange believes that its 

proposal is reasonable and 

nondiscriminatory to clarify that each of 

the connection options and fees set forth 

in Rule 7051 generally provide for 

connectivity to The NASDAQ Stock 

Market LLC, NASDAQ BX, Inc., 

NASDAQ PHLX LLC, Nasdaq ISE LLC, 

Nasdaq MRX LLC, and Nasdaq GEMX 

LLC. The Exchange does not restrict its 

clients from utilizing their direct 


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Federal Register / Vol. 82, No. 193 / Friday, October 6, 2017 / Notices 46879 

5 15 U.S.C. 78s(b)(3)(A)(ii). 6 17 CFR 200.30–3(a)(12). 

1A draft copy of the operating agreement was 

submitted with the notice of exemption. 

2See Effingham R.R.—Pet. for Declaratory 

Order—Constr. at Effingham, Ill., 2 S.T.B. 606, 

609–10 (STB served Sept. 12, 1997), aff’d sub nom. 

United Transp. Union-Illinois Legislative Bd. v. 

STB, 183 F.3d 606 (7th Cir. 1999). 

connections to it to also access its sister 

exchanges, and it does not charge its 

clients more than once to do so. 

Although certain of the Exchange’s 

other connectivity Rules already make 

these points clear (e.g., Rules 7030 and 

7034), Rule 7051 does not do so. The 

Exchange therefore believes its proposal 

to clarify Rule 7051 is warranted. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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. The proposal 

merely clarifies the Exchange’s existing 

services and associated fees and the 

Exchange does not anticipate that such 

clarifications will have any impact on 

competition whatsoever. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or 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.5

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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 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 email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2017–097 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2017–097. This 

file number should be included on the 

subject line if email 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 

10:00 a.m. and 3:00 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– 

NASDAQ–2017–097, and should be 

submitted on or before October 27, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–21541 Filed 10–5–17; 8:45 am] 

BILLING CODE 8011–01–P 

SURFACE TRANSPORTATION BOARD 

[Docket No. FD 36145] 

Scrap Metal Services Terminal 

Railroad Company (Indiana), LLC— 

Lease and Operation Exemption—Rail 

Line of Scrap Metal Services, LLC 

Scrap Metal Services Terminal 

Railroad Company (Indiana), LLC 

(SMSRRIN), a noncarrier, has filed a 

verified notice of exemption under 49 

CFR 1150.31 to acquire by lease from 

Scrap Metal Services, LLC (SMS), and to 

operate,1 approximately 2,115 linear 

feet (0.40 mile) of railroad right-of-way 

and trackage located at the East Chicago 

Transload Facility at the intersection of 

East 151st Street and the Indiana Harbor 

Belt Railroad right-of-way in East 

Chicago, Ind. (the East Chicago 

Transload Facility trackage), pursuant to 

an agreement. SMS Realty (East 

Chicago), LLC, owns the East Chicago 

Transload Facility trackage, which is 

leased to SMS. 

According to SMSRRIN, there are no 

mileposts associated with the East 

Chicago Transload Facility trackage. 

SMSRRIN states that the trackage is 

used in conjunction with interchanging 

to and from Indiana Harbor Belt 

Railroad carloads of scrap metal for 

transloading into trucks for delivery to 

metal working manufacturers. 

SMSRRIN asserts that, because the 

trackage in question will constitute the 

entire line of railroad of SMSRRIN, this 

trackage is a line of railroad under 49 

U.S.C. 10901, rather than spur, 

switching, or side tracks excepted from 

Board acquisition and operation 

authority by virtue of 49 U.S.C. 10906.2

Although SMSRRIN states in its 

verified notice that the operations were 

proposed to be consummated on or 

about September 15, 2017, this 

transaction may not be consummated 

until October 21, 2017 (30 days after the 

verified notice was filed). 

SMSRRIN certifies that its projected 

annual revenues as a result of this 

transaction do not exceed those that 

would qualify it as a Class III rail carrier 

and will not exceed $5 million. 

SMSRRIN also certifies that there are no 

provisions or agreements that may limit 

future interchange commitments. 

If the verified notice contains false or 

misleading information, the exemption 

is void ab initio. Petitions to revoke the 

exemption under 49 U.S.C. 10502(d) 

may be filed at any time. The filing of 

a petition to revoke will not 

automatically stay the effectiveness of 

the exemption. Petitions to stay must be 

filed no later than October 13, 2017 (at 

least seven days before the exemption 

becomes effective). 

An original and 10 copies of all 

pleadings, referring to Docket No. FD 

36145, must be filed with the Surface 

Transportation Board, 395 E Street SW., 


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