[Federal Register Volume 76, Number 114 (Tuesday, June 14, 2011)]
[Notices]
[Pages 34785-34786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-14598]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64631; File No. SR-BX-2011-032]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 7034 Regarding Certain Co-Location Installation Fees
June 8, 2011.
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 May 26, 2011, 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 the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange proposes to modify fees for non co-location services.
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative on June 1, 2011. The text of the proposed rule change is
available at http://nasdaqomxbx.cchwallstreet.com/, at the Exchange's
principal office, 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 7034 regarding fees assessed
for the installation of certain co-location services to further
incentivize the use of the co-location services. The installation fees
for the following co-location services will be waived commencing June
1, 2011 and ending June 30, 2011 (the ``designated period''). Beginning
July 1, 2011, the above-referenced waived fees will resume in full at
the amount prior to [sic] designated period. The Exchange proposes to
waive the following installation fees during the designated period:
1. Rule 7034(a): installation fees for new cabinets with power.
2. Rule 7034(b): installation fees for external
telecommunication, inter-cabinet connectivity, connectivity to The
Nasdaq Stock Market LLC and market data connectivity related to an
order for a new cabinet. However, the one-time telecommunication
connectivity expedite fee \3\ will not be waived during the
designated period.
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\3\ The one-time telecommunication connectivity expedite fee is
a fee for an optional request to complete the installation in a
shorter time period than the install timeframes.
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3. Rule 7034(c): installation fees for cabinet power related to
an order for a new cabinet.
4. Rule 7034(d): installation fees for cooling fans, perforated
floor tiles and fiber downspouts, which are necessary items to
support a higher density cabinet and fiber cross connects, relating
to an order for a new cabinet placed during the designated period.
Installation fees for other items that are customized or options are
not waived during the time period.
The following requirements must be met to receive the waiver of the
installation fee:
1. The new cabinet order must be placed in the CoLo Console \4\
during the designated period; and
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\4\ The ``CoLo Console'' is a Web-based ordering tool that is
utilized by BX to place co-location orders.
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2. The new cabinet must be live within 90 days of the date of
the order.\5\
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\5\ Exchange staff generally installs and makes operational a
new cabinet within 90 days of the date of the order (the ``live
date''). The estimated live date is communicated to the customer.
However, there may be instances where the customer desires the live
date to be later than the estimated live date provided by Exchange
staff. In such instances, the live date cannot extend beyond 90 days
of the date of the order.
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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)(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. The proposed
installation fees in [sic] which the Exchange seeks a temporary waiver
will be assessed equally to customers that place an order for a new
cabinet during the designated period. The proposed amendments will
provide an incentive for customers to avail themselves of the
designated co-location services. The proposal is similar to the waiver
of fees during an introductory period for a product, and is equitable
because all persons may avail themselves of the waiver during the
period of its availability.
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\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
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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. The
Exchange believes that the waiver of fees for certain co-location
services is equitable because all persons may avail themselves of the
waiver during the period of its availability.
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
[[Page 34786]]
whether the proposed rule should be approved or disapproved.
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\8\ 15 U.S.C. 78s(b)(3)(a)(ii) [sic].
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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 [email protected]. Please include
File Number SR-BX-2011-032 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-2011-032. 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 10:00 a.m. and 3:00 p.m. Copies of such filing also will
be available for inspection and copying at the principal offices 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-2011-032, and
should be submitted on or before July 5, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-14598 Filed 6-13-11; 8:45 am]
BILLING CODE 8011-01-P