Self-Regulatory Organizations; Proposed Rule Changes:
Federal Register: August 20, 2010 (Volume 75, Number 161)
Notices
Page 51515-51517
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DOCID:fr20au10-99
SECURITIES AND EXCHANGE COMMISSION
Release No. 34-62731; File No. SR-NYSEAmex-2010-80
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of
Proposed Rule Change Amending Its Price List To Reflect Fees Charged for Co-Location Services
August 16, 2010.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on August 4, 2010, NYSE Amex LLC (``NYSE Amex'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II 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.
\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange proposes to amend its Price List to reflect fees charged for co-location services, as described more fully herein. The text of the proposed rule change is available at the Exchange, the
Commission's Public Reference Room, on the Commission's Web site at http://www.sec.gov, and the Exchange's Web site at http://www.nyse.com.
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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.
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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 Price List to identify fees pertaining to co-location services, which allow Users \4\ of the
Exchange 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 plans to begin operating a data center in Mahwah, New Jersey, from which it will offer co-location services. The Exchange will offer space at the data center in cabinets with power usage capability of either four or eight kilowatts (kW).\5\ In addition, the Exchange will offer
Users services related to co-location, including cross connections, equipment and cable installation, and remote ``hot-hands'' services.
\4\ For the purposes of this filing, the term ``Users'' includes any ``member organization,'' as that term is defined in NYSE Amex
Equities Rule 2(b) and any ``Sponsored Participant,'' as that term is defined in NYSE Amex Equities Rule 123B.30(a)(ii)(B).
\5\ The Exchange also allows Users, for a monthly fee (i.e., 40% of the applicable monthly per kW fee), to obtain an option for future use on available, unused cabinet space in proximity to their existing cabinet space. Specifically, Users may reserve cabinet space of up to 30% of the cabinet space under contract, which the
Exchange will endeavor to provide as close as reasonably possible to the User's existing cabinet space, taking into consideration power availability within segments of the data center and the overall efficiency of use of data center resources as determined by the
Exchange. (If the 30% measurement results in a fractional cabinet, the cabinet count is adjusted up to the next increment.) If reserved cabinet space becomes needed for use, the reserving User will have 30 business days to formally contract with the Exchange for full payment for the reserved cabinet space needed or the space will be reassigned.
Users that receive co-location services from the Exchange will not receive any means of access to the Exchange's trading and execution systems that is separate from or superior to that of Users that do not receive co-location services. All orders sent to the Exchange enter the
Exchange's trading and execution systems through the 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. In addition, co-located Users have the option of obtaining access to the Exchange's Liquidity Center Network
(``LCN''), a local area network available in the data center.\6\ Co- located Users have the option of using either the LCN or the Exchange's
Secure Financial Transaction Infrastructure (``SFTI'') network, to which all Users have access. Because it operates as a local area network within the data center, the LCN provides reduced latencies in comparison with SFTI. 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. SFTI and LCN both provide Users with access to the Exchange's trading and execution systems and to the Exchange's
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proprietary market data products. User access to non-proprietary market data products is available through SFTI and not through LCN.
\6\ As set forth below, pricing for LCN access is provided on a stand-alone basis and on a bundled basis in combination with SFTI connections and optic connections to outside access centers and within the data center. The SFTI and optic connections are not related to the co-location services.
The Exchange offers co-location space based on availability and the
Exchange believes that it has sufficient space in the Mahwah data center to accommodate current demand on an equitable basis for the foreseeable future. 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.
The charts set forth in Exhibit 5 identify the proposed tiered fees for co-location and the proposed fees for related services.
Initial Fee per cabinet....................................
$5,000
Number of kWs
Per kW Fee
Monthly
4-8........................................................
$1,200 12-20......................................................
1,050 24-40......................................................
950 44 +.......................................................
900
Type of service
Description
Amount of charge
LCN Access.................. 1 Gb Circuit........ $6,000 per connection initial charge plus $5,000 monthly per connection.
LCN Access.................. 10 Gb Circuit....... $10,000 per connection.
Bundled Network Access,
1 GB Bundle......... $25,000 initial
Option 1 (2 LCN
.................... charge plus $13,000 connections, 2 SFTI
10 GB Bundle........ monthly charge. connections, and 2 optic
$50,000 initial connections to outside
charge plus $47,000 access center).
monthly charge.
Bundled Network Access,
1 GB Bundle......... $26,000 initial
Option 2 (2 LCN
.................... charge plus $16,000 connections, 2 SFTI
10 GB Bundle........ monthly charge. connections, 1 optic
$50,000 initial connection to outside
charge plus $54,250 access center, and 1 optic
monthly charge. connection in data center).
Bundled Network Access,
1 Gb Bundle......... $27,500 initial
Option 3 (2 LCN
.................... charge plus $19,000
Connections, 2 SFTI
10 GB Bundle........ monthly charge. connections, and 2 optic
$50,000 initial connections in data center).
charge plus $61,500 monthly charge.
Data Center Fiber Cross
Cross connect
$500 per unit
Connect.
between a single
initial charge plus
User's cabinets
$500 monthly per within the data
unit. center.
Initial Install Services
Includes initial
$800 per cabinet.
(Required per cabinet).
racking of equipment in cabinet and provision of up to 10 cables (4 hrs).
Hot Hands Service: Normal
Applies on non-NYSE $200 per hour.
Business Hours, Scheduled
Amex holidays,
(Note: Hot Hands Service
Monday to Friday, allows Users to use on-site 9am to 5pm if data center personnel to
scheduled at least maintain User equipment.). 1 day in advance.
Hot Hands Service: Extended Applies Monday to
$275 per hour.
Business Hours, Scheduled.
Friday 5pm to 9am,
NYSE Amex holidays, and weekends if scheduled at least 1 day in advance.
Hot Hands Service: Normal
Applies on non-NYSE $250 per hour.
Business Hours, Expedited.
Amex holidays,
Monday to Friday, 9am to 5pm if NOT scheduled at least 1 day in advance.
Hot Hands Service: Extended Applies Monday to
$325 per hour.
Business Hours, Expedited.
Friday 5pm to 9am,
NYSE Amex holidays, and weekends if NOT scheduled at least 1 day in advance.
Rack and Stack.............. Installation of one $200 per server. server in User's cabinet. Service encompasses handling, unpacking, tagging, and installation of the server as well as 1 network connection within the User rack.
Power Recycling............. Reboot of power on
$50 per reset. one server or switch as well as observing and reporting on the status of the reboot back to the
User.
Shipping and Receiving...... Receipt of one
$100 per shipment. shipment of goods at data center from
User/supplier.
Includes coordination of shipping and receiving.
Badge Request............... Request for
$50 per badge. provision of a permanent data center site access badge for a User representative.
External Cabinet Cable Tray. Engineer, furnish
$400 per tray. and install Rittal 5'' H x 12'' W cable tray on cabinet.
Custom External Cabinet
Engineer, furnish
$100 per linear
Cable Tray.
and install 4'' H x foot. 24'' W custom basket cable tray above client's cabinet rows.
Install and Document Cable.. Labor charges to
$200 per hour. install and document the fitting of a cable(s) in a
User's cabinet(s) in excess of the 10 copper cables include in the cabinet installation fee.
Equipment Maintenance Call
Hardware maintenance- $100 per call.
Escalation.
break fix services available through
NYSE arrangement with Delta Computer
Group.
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Visitor Security Escort..... NYSE employee
$75 per hour. escort, which is required during
User visits to the data center. (Note: all User representatives are required to have a visitor security escort during visits to the data center, including
User representatives who have a permanent data center site access badge.).
Technician Support Service- Network technician
$200 per hour.
Non Emergency.
equipped to support
User network troubleshooting activity and to provide all necessary testing instruments to support the User request. Prior day notice is required.
Technician Support Service- Network technician
$325 per hour.
Emergency.
equipped to support
User network troubleshooting activity and to provide all necessary testing instruments to support the User request. Two hour notice is required.
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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''),\7\ in general, and Sections 6(b)(4) and 6(b)(5), of the
Act,\8\ 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 the Schedule 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.
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4) and 15 U.S.C. 78f(b)(5).
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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.
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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.
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Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate 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 or disapprove the proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule change should be disapproved.
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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 rule-comments@sec.gov. Please include
File Number SR-NYSEAmex-2010-80 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-NYSEAmex-2010-80. 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-
NYSEAmex-2010-80 and should be submitted on or before September 10, 2010.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\
\9\ 17 CFR 200.30-3(a)(12).
Florence E. Harmon,
Deputy Secretary.
FR Doc. 2010-20681 Filed 8-19-10; 8:45 am
BILLING CODE 8010-01-P
