[Federal Register Volume 76, Number 114 (Tuesday, June 14, 2011)]
[Notices]
[Pages 34798-34799]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-14661]



[[Page 34798]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 64629; File No. SR-Phlx-2011-77]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC To Amend 
the Fee Schedule Regarding Fees Assessed for the Installation of 
Certain Co-Location Services

 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 27, 2011, NASDAQ OMX PHLX LLC (``Phlx'' 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.
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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 Fee Schedule regarding fees 
assessed for the installation of certain 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 on the Exchange's 
Web site at http://nasdaqomxphlx.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 the Fee Schedule 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. Section X(a): Installation fees for new cabinets with power.
    2. Section X(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. Section X(c): Installation fees for cabinet power related to an 
order for a new cabinet.
    4. Section X(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 Phlx 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 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act.

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.\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 whether the proposed rule should be 
approved or disapproved.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing,

[[Page 34799]]

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-Phlx-2011-77 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-Phlx-2011-77. 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 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-Phlx-2011-77 and 
should be submitted on or before July 5, 2011.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-14661 Filed 6-13-11; 8:45 am]
BILLING CODE 8011-01-P