[Federal Register Volume 76, Number 211 (Tuesday, November 1, 2011)]
[Notices]
[Pages 67520-67522]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-28204]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65627; File No. SR-NYSEAMEX-2011-81]


Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of 
Proposed Rule Change Expanding the Scope of Potential ``Users'' of Its 
Co-Location Services To Include Any Market Participant That Requests To 
Receive Co-Location Services Directly From the Exchange and Amending 
Its Price List To Establish a Fee for Users That Host Their Customers 
at the Exchange's Data Center

October 26, 2011.
    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 October 14, 2011, NYSE Amex LLC (the ``Exchange'' or 
``NYSE Amex'') 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 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\ 15 U.S.C. 78a.
    \3\ 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 expand the scope of potential ``Users'' of 
its co-location services to include any market participant that 
requests to receive co-location services directly from the Exchange. In 
addition, the Exchange proposes to amend its Price List to establish a 
fee for Users that host their customers at the Exchange's data center. 
The text of the proposed rule change is available at the Exchange, the 
Commission's Public Reference Room, and http://www.nyse.com.

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,

[[Page 67521]]

of the most significant parts 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 operates a data center in Mahwah, New Jersey from 
which it provides co-location services to Users.\4\ For purposes of its 
co-location services, the term ``User'' currently includes member 
organizations, as that term is defined in Rule 2(b)--NYSE Amex 
Equities, and Sponsored Participants, as that term is defined in Rule 
123B.30(a)(ii)(B)--NYSE Amex Equities.\5\ The Exchange proposes to 
expand the scope of potential Users of its co-location services to 
include any market participant that requests to receive co-location 
services directly from the Exchange.\6\ Under the proposed rule change, 
Users could therefore include member organizations, Sponsored 
Participants, non-member broker-dealers and vendors. The Exchange 
anticipates that the potential additional Users would provide, for 
example, hosting, service bureau, technical support, risk management, 
order routing and market data delivery services to their customers 
while the User is co-located in the Exchange's data center.\7\ As is 
the case with all Exchange co-location arrangements, neither a User, 
nor any of its customers, would be permitted to submit orders directly 
to the Exchange unless such User or customer is a member organization 
or a Sponsored Participant. All existing co-location terms, conditions, 
facilities, services, and applicable fees would apply to these 
potential new Users.
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    \4\ See Securities Exchange Act Release No. 62961 (September 21, 
2010), 75 FR 59299 (September 27, 2010) (SR-NYSEAmex-2010-80).
    \5\ Id. at note 7.
    \6\ As is the case today, prospective Users must agree to, and 
be capable of satisfying, any applicable co-location fees, 
requirements, terms and conditions established from time to time by 
the Exchange.
    \7\ The Exchange anticipates that a User's customer(s) could 
include, under certain circumstances, other Users of the Exchange's 
co-location services.
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    The Exchange also proposes to amend its Price List to establish a 
fee applicable to Users that provide hosting services to their 
customers (``Hosted Users'') at the Exchange's data center. ``Hosting'' 
would be a service offered by a User to a Hosted User and could 
include, for example, a User supporting its Hosted User's technology, 
whether hardware or software, through the User's co-location space. 
Specifically, the Exchange proposes to charge each User a fee of 
$500.00 per month for each Hosted User that the User hosts in the 
Exchange's data center. Users would independently set fees for their 
Hosted Users and the Exchange would not receive a share of any such 
fees.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Securities Exchange Act of 1934 (the 
``Act''),\8\ in general, and furthers the objectives of Section 6(b)(4) 
\9\ and 6(b)(5) of the Act,\10\ in particular, because it provides for 
the equitable allocation of reasonable dues, fees, and other charges 
among its members and issuers and other persons using its facilities 
and is designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general, to protect investors and the 
public interest.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
    \10\ 15 U.S.C. 78f(b)(5).
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    The Exchange's proposal to expand the scope of potential Users of 
its co-location services to include any market participant that 
requests to receive co-location services directly from the Exchange 
would increase access to the Exchange's co-location facilities by 
allowing additional types of Users to use those facilities. In this 
regard, co-location services would be offered by the Exchange to these 
additional types of Users, as is the case today for existing Users, in 
a manner that would not unfairly discriminate between or among market 
participants that are otherwise capable of satisfying any applicable 
co-location fees, requirements, terms and conditions established from 
time to time by the Exchange.
    Additionally, the proposed hosting fee would be applied uniformly 
for comparable services provided by the Exchange and would not unfairly 
discriminate between similarly situated Users of co-location services. 
In this regard, the proposed hosting capability and related fee would 
be applicable to all interested Users that provide hosting services. In 
addition, the Exchange believes that the proposed hosting fee is 
reasonable in that it is designed to defray applicable expenses 
incurred or resources expended by the Exchange related to such 
services, including, but not limited to, configuration of Users' 
connections to their Hosted User customers and subsequent monitoring 
thereof by Exchange staff.

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.

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 45 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 or disapprove such 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 email to [email protected]. Please include 
File Number SR-NYSEAMEX-2011-81 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-2011-81. This 
file number should be included on the subject line if email is used.

    To help the Commission process and review your comments more 
efficiently, please use only one method. The

[[Page 67522]]

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 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 NYSE. 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-2011-81, and should be 
submitted on or before November 22, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-28204 Filed 10-31-11; 8:45 am]
BILLING CODE 8011-01-P