80_FR_67152 80 FR 66942 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Establishing Procedures and Credits in Connection With the Re-Location of Equipment in the Exchange's Data Center

80 FR 66942 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Establishing Procedures and Credits in Connection With the Re-Location of Equipment in the Exchange's Data Center

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 210 (October 30, 2015)

Page Range66942-66944
FR Document2015-27654

Federal Register, Volume 80 Issue 210 (Friday, October 30, 2015)
[Federal Register Volume 80, Number 210 (Friday, October 30, 2015)]
[Notices]
[Pages 66942-66944]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-27654]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76269; File No. SR-NYSE-2015-42]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Establishing Procedures and Credits in Connection With the Re-Location 
of Equipment in the Exchange's Data Center

October 26, 2015.
    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 22, 2015, New York Stock Exchange LLC (``NYSE'' 
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\ 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 Substance 
of the Proposed Rule Change

    The Exchange proposes to establish procedures and credits in 
connection with the re-location of equipment in the Exchange's Data 
Center. The text of the proposed rule change is available on the 
Exchange's Web site at www.nyse.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 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 operates a data center in Mahwah, New Jersey, from 
which it provides co-location services to Users.\4\ The Exchange's co-
location services allow Users to rent space in the Data Center so they 
may locate their electronic servers in close physical proximity to the 
Exchange's trading and execution system.\5\ The Exchange proposes to 
establish procedures and waive certain fees in connection with the 
Exchange's re-location of Users' equipment in the Exchange's Data 
Center, operative beginning November 1, 2015.\6\
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    \4\ The Exchange initially filed rule changes relating to its 
co-location services with the Securities and Exchange Commission 
(``Commission'') in 2010. See Securities Exchange Act Release No. 
62960 (September 21, 2010), 75 FR 59310 (September 27, 2010) (SR-
NYSE-2010-56) (``2010 Release'').
    \5\ Id. at 59310.
    \6\ As specified in the Price List, a User that incurs co-
location fees for a particular co-location service pursuant thereto 
would not be subject to co-location fees for the same co-location 
service charged by the Exchange's affiliates NYSE MKT LLC and NYSE 
Arca, Inc. See Securities Exchange Act Release No. 70206 (August 15, 
2013), 78 FR 51765 (August 21, 2013) (SR-NYSE-2013-59). The 
Exchange's affiliates have also submitted substantially the same 
proposed rule change to propose the changes described herein. See 
SR-NYSEMKT-2015-70 and SR-NYSEArca-2015-85.
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    The Data Center opened in 2010, and at that time, the Exchange 
represented that it offers co-location space based on availability and 
that it had sufficient space in the Data Center to accommodate demand 
on an equitable basis for the foreseeable future.\7\ The Exchange 
continues to believe that there is sufficient space in the Data Center 
to accommodate demand. However, much

[[Page 66943]]

of the space available now is available in smaller segments, resulting 
from an increasing number of Users, multiple moves within the Data 
Center, and changes to Users' space requirements--both increases and 
decreases--since 2010. At this time, the Exchange has determined that, 
in order to continue to be able to meet its obligation to accommodate 
demand, and in particular to make available more contiguous, larger 
spaces for new and existing Users, the Exchange must exercise its right 
to move some Users' equipment within the Data Center (the 
``Migration'').
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    \7\ See supra note 4 at 59311.
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    The Exchange proposes to put the following procedures in place to 
manage the process for the Migration.
    First, the Exchange would identify Users that would be required to 
move in the Migration based on (a) the current location of the User and 
its current equipment and power requirements and (b) the availability 
of another location in the Data Center that would accommodate the 
equipment and power requirements for which such User currently 
subscribes. No User would be required to move more than once within any 
12-month period.
    Second, the Exchange would notify a User in writing (the 
``Notice'') that the User's equipment and network connections in the 
Data Center are to be moved as part of the Migration. The Notice would 
identify the 90-day period during which the User must move its 
equipment, which period would commence at least 60 days from the date 
of the Notice. The exact date or dates for the move for each User would 
be agreed upon between the User and the Exchange. If a move date or 
dates cannot be agreed on, the Exchange would schedule the move for a 
date or dates no later than 180 days after the date of the Notice.
    Third, each User's move would be facilitated by the Exchange in 
cooperation with the User, including the un-racking and re-racking of 
all of the User's equipment, and the re-installation of the User's 
networking connections, and the Exchange would make reasonable efforts 
to ensure that the moves take place outside of the Exchange's hours for 
business.\8\
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    \8\ See Rule 51.
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    Fourth, in connection with facilitating each User's move, the 
Exchange proposes to waive certain fees. Specifically, the Exchange 
proposes to waive the monthly recurring fees incurred in connection 
with the User's new space for the month during which the User's move 
commences. This waiver of the monthly recurring fees would mean that 
the User would not incur these fees for the period of overlapping use 
of the equipment and services in the old and the new locations, as long 
as the move is completed within one month.
    In addition, the Exchange proposes to waive all service-related 
charges that the User would incur if such a move were to take place at 
a User's request with respect to the User's existing services and 
equipment. The service-related charges to be waived would be: (a) The 
Change Fee, Initial Install Services and Hot Hands Services; (b) The 
External Cabinet Cable Tray fee and the Custom External Cabinet Cable 
Tray fee, if the User has such equipment installed in its current 
location; (c) Shipping and Receiving fees relating to duplicate 
equipment for the User's new space; and (d) the Badge Request Fee and 
Visitor Security Escort fee with respect to User representative visits 
during the User's Migration Period (together, the ``Service-Related 
Fees'').
    Finally, in consideration for the Migration, the Exchange proposes 
to waive, for the month following the completion of a User's move, the 
monthly recurring charges for that User, based on the rate of the 
monthly recurring fees that the User is paying as of the date of the 
Notice.
    The Exchange proposes to modify the Exchange's Price List to 
reflect the fee waivers in connection with the Migration.
    The proposed change is not otherwise intended to address any other 
issues relating to co-location services and/or related fees, and the 
Exchange is not aware of any problems that Users would have in 
complying with the proposed change. The representations that the 
Exchange made in the 2010 Release to the effect that any difference 
among the positions of a User's equipment within the Data Center does 
not create any material difference to Users in terms of access to the 
Exchange continue to apply.\9\
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    \9\ See supra note 4 at 59311.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\10\ in general, and furthers the 
objectives of Sections 6(b)(5) of the Act,\11\ in particular, because 
it provides for the equitable allocation of reasonable dues, fees and 
other charges among members and other persons using any facility or 
system which the Exchange operates or controls and is designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, to remove impediments to, and perfect the mechanisms of, 
a free and open market and a national market system and, in general, to 
protect investors and the public interest and because it is not 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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    Additionally, the proposed changes would be applied uniformly by 
the Exchange to comparable Users and would not unfairly discriminate 
between similarly situated Users of co-location services.
    The Exchange believes that the proposal to establish procedures and 
waive certain fees in connection with the movement of equipment at the 
Exchange's Data Center would remove impediments to, and perfect the 
mechanisms of, a free and open market and a national market system and, 
in general, protect investors and the public interest because it would 
allow the Exchange to have sufficient space in the Data Center to 
accommodate demand on an equitable basis for the foreseeable future. 
The Exchange believes that the waiver of overlapping monthly recurring 
charges, the waiver of the Service-Related Fees, and the waiver of one 
month of monthly recurring charges is reasonable because Users would be 
moving at the Exchange's request and the waivers would help to 
alleviate the burden on the Users that are required to move.
    The Exchange also believes that the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\12\ in particular, because 
it provides for the equitable allocation of reasonable dues, fees, and 
other charges among its Members, issuers and other persons using its 
facilities and does not unfairly discriminate between customers, 
issuers, brokers or dealers. Pursuant to the proposed procedures for 
selecting which Users would be required to move within the Data Center, 
a User would be required to move only if the Exchange would be able to 
accommodate such User's current space and power requirements at the new 
location, so as to minimize the disruption to the User.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b)(4).
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    For the reasons above, the proposed change would not unfairly 
discriminate between or among market participants that are otherwise 
capable of satisfying any applicable co-location fees, requirements, 
terms and conditions

[[Page 66944]]

established from time to time by the Exchange.
    Finally, the Exchange believes that it is subject to significant 
competitive forces, as described below in the Exchange's statement 
regarding the burden on competition.
    For these reasons, the Exchange believes that the proposal is 
consistent with the Act.

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

    In accordance with Section 6(b)(8) of the Act,\13\ the Exchange 
believes that the proposed rule change would not impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. The Exchange believes that the proposed procedures 
for identifying the Users that would be moved and the proposed fee 
waivers are pro-competitive because they facilitate the Migration, 
which would in turn facilitate use of the Exchange's Data Center, and 
provide access to the Data Center to current and additional market 
participants.
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    \13\ 15 U.S.C. 78f(b)(8).
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    Finally, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues if, for example, they deem fee levels at a particular 
venue to be excessive or if they determine that another venue's 
products and services are more competitive than on the Exchange. In 
such an environment, the Exchange must continually review, and consider 
adjusting, the services it offers as well as any corresponding fees and 
credits to remain competitive with other exchanges. For the reasons 
described above, the Exchange believes that the proposed rule change 
reflects this competitive environment.

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

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \14\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \15\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such 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 under 
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \16\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSE-2015-42 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2015-42. 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 inspection and 
copying in the Commission's Public Reference Section, 100 F Street NE., 
Washington, DC 20549-1090. Copies of the filing will also be available 
for Web site viewing and printing at the NYSE's principal office and on 
its Internet Web site at www.nyse.com. 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-NYSE-2015-42 and should be submitted on 
or before November 20, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-27654 Filed 10-29-15; 8:45 am]
BILLING CODE 8011-01-P



                                              66942                         Federal Register / Vol. 80, No. 210 / Friday, October 30, 2015 / Notices

                                                 The new country listing also has                     IV. Ordering Paragraphs                               and at the Commission’s Public
                                              mailing services and pricing groupings                    It is ordered:                                      Reference Room.
                                              for Priority Mail Express International                   1. The Commission establishes Docket                II. Self-Regulatory Organization’s
                                              Flat Rate Envelope and Priority Mail                    No. MC2016–10 to consider matters                     Statement of the Purpose of, and
                                              International Flat Rate Envelopes and                   raised by the Notice.                                 Statutory Basis for, the Proposed Rule
                                              Boxes that the Postal Service states are                  2. Pursuant to 39 U.S.C. 505, John F.               Change
                                              in accordance with the competitive                      Rosato is appointed to serve as an
                                              price change filed in Docket No.                                                                                 In its filing with the Commission, the
                                                                                                      officer of the Commission (Public                     self-regulatory organization included
                                              CP2016–9.2 The Postal Service states                    Representative) to represent the
                                              that the addition of the Bonaire, St.                                                                         statements concerning the purpose of,
                                                                                                      interests of the general public in this               and basis for, the proposed rule change
                                              Eustatius, and Saba country listing will                proceeding.
                                              be published in the December 10, 2015,                                                                        and discussed any comments it received
                                                                                                        3. Comments by interested persons                   on the proposed rule change. The text
                                              Postal Bulletin. Notice at 2.                           are due by November 3, 2015.                          of those statements may be examined at
                                                 The second mail classification change                  4. The Secretary shall arrange for                  the places specified in Item IV below.
                                              is a revision of the country rate group                 publication of this order in the Federal              The Exchange has prepared summaries,
                                              for International Priority Airmail and                  Register.                                             set forth in sections A, B, and C below,
                                              International Surface Air Lift service for
                                                                                                        By the Commission.                                  of the most significant parts of such
                                              Curacao and Sint Maarten. Id. The
                                                                                                      Stacy L. Ruble,                                       statements.
                                              Postal Service notes that this is
                                              consistent with Exhibits 292.45a and                    Secretary.                                            A. Self-Regulatory Organization’s
                                              293.45a of the International Mail                       [FR Doc. 2015–27664 Filed 10–29–15; 8:45 am]          Statement of the Purpose of, and the
                                              Manual. Id.                                             BILLING CODE 7710–FW–P                                Statutory Basis for, the Proposed Rule
                                                 Finally, the third classification change                                                                   Change
                                              replaces the country name St. Kitts (St.                                                                      1. Purpose
                                              Christopher) & Nevis with Saint Kitts &                 SECURITIES AND EXCHANGE
                                              Nevis. Id. The Postal Service states that               COMMISSION                                               The Exchange operates a data center
                                              it published notice of the change in the                                                                      in Mahwah, New Jersey, from which it
                                              February 5, 2015, Postal Bulletin. Id.                  [Release No. 34–76269; File No. SR–NYSE–              provides co-location services to Users.4
                                                                                                      2015–42]                                              The Exchange’s co-location services
                                                 The Postal Service states that the                                                                         allow Users to rent space in the Data
                                              proposed changes satisfy the                            Self-Regulatory Organizations; New                    Center so they may locate their
                                              requirements of 39 CFR 3020.90 because                  York Stock Exchange LLC; Notice of                    electronic servers in close physical
                                              the changes should result in a more                     Filing and Immediate Effectiveness of                 proximity to the Exchange’s trading and
                                              accurate representation of the Postal                   Proposed Rule Change Establishing                     execution system.5 The Exchange
                                              Service’s offerings, the notice is filed                Procedures and Credits in Connection                  proposes to establish procedures and
                                              more than 15 days prior to the intended                 With the Re-Location of Equipment in                  waive certain fees in connection with
                                              effective date, and none of the three                   the Exchange’s Data Center                            the Exchange’s re-location of Users’
                                              parts constitute a material change to the                                                                     equipment in the Exchange’s Data
                                              product descriptions. Id. at 2–3. The                   October 26, 2015.
                                                                                                         Pursuant to Section 19(b)(1) 1 of the              Center, operative beginning November
                                              Postal service also asserts that the                                                                          1, 2015.6
                                              proposed changes are consistent with 39                 Securities Exchange Act of 1934 (the
                                                                                                      ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                   The Data Center opened in 2010, and
                                              U.S.C. 3642 because no products are                                                                           at that time, the Exchange represented
                                              being added or removed, or transferred                  notice is hereby given that, on October
                                                                                                                                                            that it offers co-location space based on
                                              between market dominant and                             22, 2015, New York Stock Exchange
                                                                                                                                                            availability and that it had sufficient
                                              competitive products designations. Id.                  LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
                                                                                                                                                            space in the Data Center to
                                              at 3.                                                   with the Securities and Exchange
                                                                                                                                                            accommodate demand on an equitable
                                                                                                      Commission (the ‘‘Commission’’) the
                                              III. Notice of Commission Action                                                                              basis for the foreseeable future.7 The
                                                                                                      proposed rule change as described in
                                                                                                      Items I, II, and III below, which Items               Exchange continues to believe that there
                                                 Pursuant to 39 CFR 3020.91, the                                                                            is sufficient space in the Data Center to
                                              Commission has posted the Notice on                     have been prepared by the self-
                                                                                                      regulatory organization. The                          accommodate demand. However, much
                                              its Web site and invites comments on
                                              whether the Postal Service’s filings are                Commission is publishing this notice to                  4 The Exchange initially filed rule changes

                                              consistent with the policies of 39 U.S.C.               solicit comments on the proposed rule                 relating to its co-location services with the
                                              3642 and 39 CFR 3020 subpart E.                         change from interested persons.                       Securities and Exchange Commission
                                                                                                                                                            (‘‘Commission’’) in 2010. See Securities Exchange
                                              Comments are due no later than                          I. Self-Regulatory Organization’s                     Act Release No. 62960 (September 21, 2010), 75 FR
                                              November 3, 2015. The public portions                   Statement of the Terms of Substance of                59310 (September 27, 2010) (SR–NYSE–2010–56)
                                              of these filings can be accessed via the                the Proposed Rule Change                              (‘‘2010 Release’’).
                                              Commission’s Web site (http://                                                                                   5 Id. at 59310.

                                              www.prc.gov).                                              The Exchange proposes to establish                    6 As specified in the Price List, a User that incurs

                                                                                                      procedures and credits in connection                  co-location fees for a particular co-location service
                                                 The Commission appoints John F.                      with the re-location of equipment in the              pursuant thereto would not be subject to co-location
                                              Rosato to represent the interests of the                Exchange’s Data Center. The text of the               fees for the same co-location service charged by the
                                              general public (Public Representative)                                                                        Exchange’s affiliates NYSE MKT LLC and NYSE
tkelley on DSK3SPTVN1PROD with NOTICES




                                                                                                      proposed rule change is available on the              Arca, Inc. See Securities Exchange Act Release No.
                                              in this docket.                                         Exchange’s Web site at www.nyse.com,                  70206 (August 15, 2013), 78 FR 51765 (August 21,
                                                                                                      at the principal office of the Exchange,              2013) (SR–NYSE–2013–59). The Exchange’s
                                                2 Id. See Docket No. CP2016–9, Notice of the                                                                affiliates have also submitted substantially the same
                                              United States Postal Service of Changes in Rates of                                                           proposed rule change to propose the changes
                                                                                                        1 15 U.S.C. 78s(b)(1).
                                              General Applicability for Competitive Products                                                                described herein. See SR–NYSEMKT–2015–70 and
                                                                                                        2 15 U.S.C. 78a.                                    SR–NYSEArca–2015–85.
                                              Established in Governors’ Decision No. 15–1,
                                              October 16, 2015.                                         3 17 CFR 240.19b–4.                                    7 See supra note 4 at 59311.




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                                                                                Federal Register / Vol. 80, No. 210 / Friday, October 30, 2015 / Notices                                           66943

                                              of the space available now is available                     incur these fees for the period of                    promote just and equitable principles of
                                              in smaller segments, resulting from an                      overlapping use of the equipment and                  trade, to foster cooperation and
                                              increasing number of Users, multiple                        services in the old and the new                       coordination with persons engaged in
                                              moves within the Data Center, and                           locations, as long as the move is                     regulating, clearing, settling, processing
                                              changes to Users’ space requirements—                       completed within one month.                           information with respect to, and
                                              both increases and decreases—since                            In addition, the Exchange proposes to               facilitating transactions in securities, to
                                              2010. At this time, the Exchange has                        waive all service-related charges that the            remove impediments to, and perfect the
                                              determined that, in order to continue to                    User would incur if such a move were                  mechanisms of, a free and open market
                                              be able to meet its obligation to                           to take place at a User’s request with                and a national market system and, in
                                              accommodate demand, and in particular                       respect to the User’s existing services               general, to protect investors and the
                                              to make available more contiguous,                          and equipment. The service-related                    public interest and because it is not
                                              larger spaces for new and existing Users,                   charges to be waived would be: (a) The                designed to permit unfair
                                              the Exchange must exercise its right to                     Change Fee, Initial Install Services and              discrimination between customers,
                                              move some Users’ equipment within the                       Hot Hands Services; (b) The External                  issuers, brokers, or dealers.
                                              Data Center (the ‘‘Migration’’).                            Cabinet Cable Tray fee and the Custom                    Additionally, the proposed changes
                                                 The Exchange proposes to put the                         External Cabinet Cable Tray fee, if the               would be applied uniformly by the
                                              following procedures in place to manage                     User has such equipment installed in its              Exchange to comparable Users and
                                              the process for the Migration.                              current location; (c) Shipping and                    would not unfairly discriminate
                                                 First, the Exchange would identify                       Receiving fees relating to duplicate                  between similarly situated Users of co-
                                              Users that would be required to move in                     equipment for the User’s new space; and               location services.
                                              the Migration based on (a) the current                      (d) the Badge Request Fee and Visitor                    The Exchange believes that the
                                              location of the User and its current                        Security Escort fee with respect to User              proposal to establish procedures and
                                              equipment and power requirements and                        representative visits during the User’s               waive certain fees in connection with
                                              (b) the availability of another location in                 Migration Period (together, the ‘‘Service-            the movement of equipment at the
                                              the Data Center that would                                  Related Fees’’).                                      Exchange’s Data Center would remove
                                              accommodate the equipment and power                           Finally, in consideration for the                   impediments to, and perfect the
                                              requirements for which such User                            Migration, the Exchange proposes to                   mechanisms of, a free and open market
                                              currently subscribes. No User would be                      waive, for the month following the                    and a national market system and, in
                                              required to move more than once within                      completion of a User’s move, the                      general, protect investors and the public
                                              any 12-month period.                                        monthly recurring charges for that User,              interest because it would allow the
                                                 Second, the Exchange would notify a                      based on the rate of the monthly                      Exchange to have sufficient space in the
                                              User in writing (the ‘‘Notice’’) that the                   recurring fees that the User is paying as             Data Center to accommodate demand on
                                              User’s equipment and network                                of the date of the Notice.                            an equitable basis for the foreseeable
                                              connections in the Data Center are to be                      The Exchange proposes to modify the                 future. The Exchange believes that the
                                              moved as part of the Migration. The                         Exchange’s Price List to reflect the fee              waiver of overlapping monthly
                                              Notice would identify the 90-day period                     waivers in connection with the                        recurring charges, the waiver of the
                                              during which the User must move its                         Migration.                                            Service-Related Fees, and the waiver of
                                              equipment, which period would                                 The proposed change is not otherwise                one month of monthly recurring charges
                                              commence at least 60 days from the date                     intended to address any other issues                  is reasonable because Users would be
                                              of the Notice. The exact date or dates for                  relating to co-location services and/or               moving at the Exchange’s request and
                                              the move for each User would be agreed                      related fees, and the Exchange is not                 the waivers would help to alleviate the
                                              upon between the User and the                               aware of any problems that Users would                burden on the Users that are required to
                                              Exchange. If a move date or dates cannot                    have in complying with the proposed                   move.
                                              be agreed on, the Exchange would                            change. The representations that the                     The Exchange also believes that the
                                              schedule the move for a date or dates no                    Exchange made in the 2010 Release to                  proposed rule change is consistent with
                                              later than 180 days after the date of the                   the effect that any difference among the              Section 6(b)(4) of the Act,12 in
                                              Notice.                                                     positions of a User’s equipment within                particular, because it provides for the
                                                 Third, each User’s move would be                         the Data Center does not create any                   equitable allocation of reasonable dues,
                                              facilitated by the Exchange in                              material difference to Users in terms of              fees, and other charges among its
                                              cooperation with the User, including the                    access to the Exchange continue to                    Members, issuers and other persons
                                              un-racking and re-racking of all of the                     apply.9                                               using its facilities and does not unfairly
                                              User’s equipment, and the re-                                                                                     discriminate between customers,
                                              installation of the User’s networking                       2. Statutory Basis                                    issuers, brokers or dealers. Pursuant to
                                              connections, and the Exchange would                            The Exchange believes that the                     the proposed procedures for selecting
                                              make reasonable efforts to ensure that                      proposed rule change is consistent with               which Users would be required to move
                                              the moves take place outside of the                         Section 6(b) of the Act,10 in general, and            within the Data Center, a User would be
                                              Exchange’s hours for business.8                             furthers the objectives of Sections                   required to move only if the Exchange
                                                 Fourth, in connection with facilitating                  6(b)(5) of the Act,11 in particular,                  would be able to accommodate such
                                              each User’s move, the Exchange                              because it provides for the equitable                 User’s current space and power
                                              proposes to waive certain fees.                             allocation of reasonable dues, fees and               requirements at the new location, so as
                                              Specifically, the Exchange proposes to                      other charges among members and other                 to minimize the disruption to the User.
                                              waive the monthly recurring fees                            persons using any facility or system                     For the reasons above, the proposed
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                                              incurred in connection with the User’s                      which the Exchange operates or controls               change would not unfairly discriminate
                                              new space for the month during which                        and is designed to prevent fraudulent                 between or among market participants
                                              the User’s move commences. This                             and manipulative acts and practices, to               that are otherwise capable of satisfying
                                              waiver of the monthly recurring fees                                                                              any applicable co-location fees,
                                              would mean that the User would not                            9 See supra note 4 at 59311.                        requirements, terms and conditions
                                                                                                            10 15 U.S.C. 78f(b).
                                                8 See   Rule 51.                                            11 15 U.S.C. 78f(b)(5).                               12 15   U.S.C. 78f(b)(4).



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                                              66944                          Federal Register / Vol. 80, No. 210 / Friday, October 30, 2015 / Notices

                                              established from time to time by the                    fee, or other charge imposed by the                       office and on its Internet Web site at
                                              Exchange.                                               Exchange.                                                 www.nyse.com. All comments received
                                                 Finally, the Exchange believes that it                  At any time within 60 days of the                      will be posted without change; the
                                              is subject to significant competitive                   filing of such proposed rule change, the                  Commission does not edit personal
                                              forces, as described below in the                       Commission summarily may                                  identifying information from
                                              Exchange’s statement regarding the                      temporarily suspend such rule change if                   submissions. You should submit only
                                              burden on competition.                                  it appears to the Commission that such                    information that you wish to make
                                                                                                      action is necessary or appropriate in the                 available publicly. All submissions
                                                 For these reasons, the Exchange                      public interest, for the protection of                    should refer to File Number SR–NYSE–
                                              believes that the proposal is consistent                investors, or otherwise in furtherance of                 2015–42 and should be submitted on or
                                              with the Act.                                           the purposes of the Act. If the                           before November 20, 2015.
                                              B. Self-Regulatory Organization’s                       Commission takes such action, the
                                                                                                                                                                  For the Commission, by the Division of
                                              Statement on Burden on Competition                      Commission shall institute proceedings                    Trading and Markets, pursuant to delegated
                                                                                                      under Section 19(b)(2)(B) 16 of the Act to                authority.17
                                                In accordance with Section 6(b)(8) of                 determine whether the proposed rule                       Robert W. Errett,
                                              the Act,13 the Exchange believes that the               change should be approved or
                                                                                                                                                                Deputy Secretary.
                                              proposed rule change would not impose                   disapproved.
                                              any burden on competition that is not                                                                             [FR Doc. 2015–27654 Filed 10–29–15; 8:45 am]
                                              necessary or appropriate in furtherance                 IV. Solicitation of Comments                              BILLING CODE 8011–01–P

                                              of the purposes of the Act. The                           Interested persons are invited to
                                              Exchange believes that the proposed                     submit written data, views, and
                                              procedures for identifying the Users that               arguments concerning the foregoing,                       SECURITIES AND EXCHANGE
                                              would be moved and the proposed fee                     including whether the proposed rule                       COMMISSION
                                              waivers are pro-competitive because                     change is consistent with the Act.
                                              they facilitate the Migration, which                    Comments may be submitted by any of                       [Release No. 34–76268; File No. SR–
                                              would in turn facilitate use of the                     the following methods:                                    NYSEMKT–2015–70]
                                              Exchange’s Data Center, and provide                     Electronic Comments
                                              access to the Data Center to current and                                                                          Self-Regulatory Organizations; NYSE
                                              additional market participants.                           • Use the Commission’s Internet                         MKT LLC; Notice of Filing and
                                                                                                      comment form (http://www.sec.gov/                         Immediate Effectiveness of Proposed
                                                Finally, the Exchange notes that it                   rules/sro.shtml); or                                      Rule Change Establishing Procedures
                                              operates in a highly competitive market                   • Send an email to rule-comments@                       and Credits in Connection With the Re-
                                              in which market participants can                        sec.gov. Please include File Number SR–                   Location of Equipment in the
                                              readily favor competing venues if, for                  NYSE–2015–42 on the subject line.                         Exchange’s Data Center
                                              example, they deem fee levels at a
                                              particular venue to be excessive or if                  Paper Comments                                            October 26, 2015.
                                              they determine that another venue’s                       • Send paper comments in triplicate                        Pursuant to Section 19(b)(1) 1 of the
                                              products and services are more                          to Brent J. Fields, Secretary, Securities                 Securities Exchange Act of 1934 (the
                                              competitive than on the Exchange. In                    and Exchange Commission, 100 F Street                     ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                              such an environment, the Exchange                       NE., Washington, DC 20549–1090.                           notice is hereby given that, on October
                                              must continually review, and consider                   All submissions should refer to File                      22, 2015, NYSE MKT LLC (the
                                              adjusting, the services it offers as well               Number SR–NYSE–2015–42. This file                         ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
                                              as any corresponding fees and credits to                number should be included on the                          the Securities and Exchange
                                              remain competitive with other                           subject line if email is used. To help the                Commission (the ‘‘Commission’’) the
                                              exchanges. For the reasons described                    Commission process and review your                        proposed rule change as described in
                                              above, the Exchange believes that the                   comments more efficiently, please use                     Items I, II, and III below, which Items
                                              proposed rule change reflects this                      only one method. The Commission will                      have been prepared by the self-
                                              competitive environment.                                post all comments on the Commission’s                     regulatory organization. The
                                              C. Self-Regulatory Organization’s                       Internet Web site (http://www.sec.gov/                    Commission is publishing this notice to
                                              Statement on Comments on the                            rules/sro.shtml). Copies of the                           solicit comments on the proposed rule
                                              Proposed Rule Change Received From                      submission, all subsequent                                change from interested persons.
                                              Members, Participants, or Others                        amendments, all written statements
                                                                                                                                                                I. Self-Regulatory Organization’s
                                                                                                      with respect to the proposed rule
                                                No written comments were solicited                                                                              Statement of the Terms of Substance of
                                                                                                      change that are filed with the
                                              or received with respect to the proposed                                                                          the Proposed Rule Change
                                                                                                      Commission, and all written
                                              rule change.                                            communications relating to the                               The Exchange proposes to establish
                                              III. Date of Effectiveness of the                       proposed rule change between the                          procedures and credits in connection
                                              Proposed Rule Change and Timing for                     Commission and any person, other than                     with the re-location of equipment in the
                                              Commission Action                                       those that may be withheld from the                       Exchange’s Data Center. The text of the
                                                                                                      public in accordance with the                             proposed rule change is available on the
                                                The foregoing rule change is effective                provisions of 5 U.S.C. 552, will be                       Exchange’s Web site at www.nyse.com,
                                              upon filing pursuant to Section                         available for inspection and copying in                   at the principal office of the Exchange,
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                                              19(b)(3)(A) 14 of the Act and                           the Commission’s Public Reference                         and at the Commission’s Public
                                              subparagraph (f)(2) of Rule 19b–4 15                    Section, 100 F Street NE., Washington,                    Reference Room.
                                              thereunder, because it establishes a due,               DC 20549–1090. Copies of the filing will
                                                                                                      also be available for Web site viewing                      17 17 CFR 200.30–3(a)(12).
                                                13 15 U.S.C. 78f(b)(8).                               and printing at the NYSE’s principal                        1 15 U.S.C. 78s(b)(1).
                                                14 15 U.S.C. 78s(b)(3)(A).                                                                                        2 15 U.S.C. 78a.
                                                15 17 CFR 240.19b–4(f)(2).                              16 15   U.S.C. 78s(b)(2)(B).                              3 17 CFR 240.19b–4.




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Document Created: 2015-12-14 15:29:28
Document Modified: 2015-12-14 15:29:28
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 66942 

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