[Federal Register Volume 75, Number 58 (Friday, March 26, 2010)]
[Notices]
[Pages 14644-14646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-6676]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61748; File No. SR-NYSEArca-2010-15]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Amending Its Schedule of Fees and Charges for
Exchange Services
March 19, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on March 5, 2010, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. 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 Substance
of the Proposed Rule Change
The Exchange proposes to amend the applicable sections of its
Schedules of Fees and Charges for Exchange Services for both its
equities and options platforms (the ``Schedules'') to reflect fees
charged for co-locations services, as described more fully herein. A
copy of this filing is available on the Exchange's Web site at http://www.nyse.com, on the
[[Page 14645]]
Commission's Web site at http://www.sec.gov, 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 self-regulatory organization
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 those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Schedules in order to identify
fees pertaining to co-location services. A more detailed description of
the proposed changes follows.
Co-Location Services
Currently, the Exchange offers its Users \3\ the opportunity to
rent space on premises controlled by the Exchange in order that they
may locate their electronic servers in close physical proximity to the
Exchange's trading and execution systems. The Exchange hereby proposes
to amend its Schedules to set forth its current co-location fees.
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\3\ See NYSE Arca Equities Rule 1.1(yy). The term ``User'' shall
mean any ETP Holder or Sponsored Participant who is authorized to
obtain access to the NYSE Arca Marketplace pursuant to Rule 7.29.
See also, NYSE Arca Rule 6.1A(a)(19). The term ``User'' shall mean
any OTP Holder, OTP Firm or Sponsored Participant that is authorized
to obtain access to the NYSE Arca Options Marketplace pursuant to
Rule 6.2A.
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Current Space and Services
The Exchange currently offers co-location services at a data center
operated by a private third party vendor located in New Jersey. The
Exchange offers space at the data center ranging from half cabinets up
to two full cabinets, with different power usage capabilities ranging
from 2 kilowatts up to 8 kilowatts. The services provided include
equipment installation, cross connections, and miscellaneous post-
installation services (including cable installation, equipment racking
and ``remote-hands'' maintenance). The fees assessed for the services
and space generally reflect the amount of space used and power
required.
Users that receive co-location services from the Exchange do not
receive any means of access to the Exchange's trading and execution
systems that is separate or superior than Users that do not receive co-
location services. All orders sent to the Exchange enter the Exchange's
trading and execution systems through same order gateway regardless of
whether the sender is co-located in the Exchange's data center or not.
In addition, co-located Users do not receive any market data or data
service product that is not available to all Users.
However, Users that receive co-location services normally would
expect reduced latencies in sending orders to the Exchange and
receiving market data from the Exchange. 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.
The Exchange offers co-location space based on availability and the
Exchange believes that it has sufficient space to accommodate current
demand on an equitable basis. 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.
Co-Location Fees
The following chart identifies the proposed co-location fees,
which, in part, reflect power usage priced at $1000 per kilowatt
(``kW'') per month.
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Half cabinet (up to 2 kW).................... $2000 per month.
$2500 one time
installation fee.
Full cabinet (up to 2.5 kW).................. $2500 per month.
$5000 one time
installation fee.
Full cabinet (up to 4 kW).................... $4000 per month.
$5000 one time
installation fee.
Full cabinet (up to 8 kW).................... $8000 per month.
$5000 one time
installation fee.
Miscellaneous services post installation $200 per hour.
(including cable installation services,
equipment racking services, and ongoing
remote-hands maintenance).
Fiber cross connections (local and $600 per month.
interfloor). $950 one time
installation fee.
Less than half cabinet \4\................... $150 per Rack Unit.
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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 Securities Exchange Act of 1934
(the ``Act''),\5\ in general, and Sections 6(b)(4) and 6(b)(5), of the
Act,\6\ in particular, in that it is designed to (i) provide for the
equitable allocation of reasonable dues, fees, and other charges among
its members and other persons using its facilities, and (ii) prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system. The Exchange believes that the
proposed changes to its Schedules are equitable in that they apply fees
for comparable co-location services uniformly to our Users. Moreover,
the Exchange believes that, as described herein, access to its market
is offered on fair and non-discriminatory terms.
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\4\ The Exchange supports existing arrangements to provide Users
with less than a half cabinet, but it does not offer that option to
new co-location Users.
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4) and 15 U.S.C. 78f(b)(5).
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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
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
[[Page 14646]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 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 the 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 [email protected]. Please include
File Number SR-NYSEArca-2010-15 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-NYSEArca-2010-15. 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-
NYSEArca-2010-15 and should be submitted on or before April 16, 2010.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-6676 Filed 3-25-10; 8:45 am]
BILLING CODE 8011-01-P