[Federal Register Volume 77, Number 93 (Monday, May 14, 2012)]
[Notices]
[Pages 28415-28416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11534]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66943; File No. SR-NASDAQ-2012-054]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify the NASDAQ Co-Location Super High Density Cabinet Monthly Fee

May 8, 2012.
    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 April 27, 2012, The NASDAQ Stock Market LLC (``NASDAQ'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``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 modify the NASDAQ co-location super high-
density cabinet monthly fee. The Exchange will implement the proposed 
change on May 1, 2012.
    The text of the proposed rule change is available at http://nasdaq.cchwallstreet.com/, 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 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is modifying Rule 7034(a) by reducing its co-location 
super high-density cabinet on-going monthly fee from $15,000 per month 
to $13,000 per month. The installation fee for the super high-density 
cabinet will remain the same.
    Co-location customers have the option of obtaining several cabinet 
sizes and power densities. The co-located customer may obtain a half 
cabinet, a low density cabinet, a medium density cabinet, a medium-high 
density cabinet and a high density cabinet.\3\ Each cabinet may vary in 
size and maximum power capacity. The fees related to the cabinet and 
power usage are incremental, with additional charges being imposed 
based on higher levels of cabinet and/or power usage, the use of non-
standard cabinet sizes or special cabinet cooling equipment. The co-
location customer may obtain more power by choosing a combination of 
lower power density cabinets.
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    \3\ See Exchange Rule 7034(a).
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    The Exchange previously filed an immediately effective filing with 
the Commission to offer another choice of cabinet, specifically a 
larger cabinet (30'' W x 48'' D x 96'' H) with higher power (``Super 
High Density Cabinet'') as an alternative to combining several units 
for more power (>10kW<=17.3kW).\4\ Currently, the installation fee for 
the Super High Density Cabinet is $7,000; and the on-going monthly fee 
is $15,000. At this time, the Exchange proposes to reduce the current 
on-going monthly fee to $13,000 to bring the fee in line with Exchange 
fees for similar power levels using multiple cabinets.
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    \4\ See Securities Exchange Act Release No. 66010 (December 20, 
2011), 76 FR 80993 (December 27, 2011) (SR-NASDAQ-2011-160).

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[[Page 28416]]

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\5\ in general, and with 
Section 6(b)(4) of the Act,\6\ 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.
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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes the proposed reduction of the on-going 
monthly fee is reasonable because it is in line with Exchange fees for 
similar power levels using multiple cabinets. The Exchange also 
believes the reduction to the on-going monthly fee is equitable and not 
unfairly discriminatory because the super high-density power option is 
entirely voluntary and available to all members; therefore, the 
reduction is available to all members that select this power option. 
Also, the Exchange believes the reduction in fees is equitable and not 
unfairly discriminatory because the reduction diminishes the disparity 
in the Exchange's fees for various co-location power options. This 
results in a more competitive cost structure for the Exchange.
    The Exchange notes that it operates in a highly competitive market 
in which market participants can readily favor competing venues if they 
deem fee levels at a particular venue to be excessive, or opportunities 
available at other venues to be more favorable. In such an environment, 
the Exchange must continually adjust its fees to remain competitive 
with other trading venues. These competitive forces help to ensure that 
NASDAQ's fees are reasonable, equitably allocated, and not unfairly 
discriminatory since market participants can largely avoid fees to 
which they object by changing their operating venue.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. 
NASDAQ is reducing fees through this proposed rule change, thereby 
enhancing the competitiveness of its co-location offering.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor 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.\7\ 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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    \7\ 15 U.S.C. 78s(b)(3)(a)(ii)[sic].
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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-NASDAQ-2012-054 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-NASDAQ-2012-054. 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 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 
10:00 a.m. and 3:00 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-NASDAQ-2012-054 and should 
be submitted on or before June 4, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-11534 Filed 5-11-12; 8:45 am]
BILLING CODE 8011-01-P