[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