82 FR 15778 - Self-Regulatory Organizations; NASDAQ PHLX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Pricing Schedule at Section VII(A)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 60 (March 30, 2017)
Federal Register Volume 82, Issue 60 (March 30, 2017)
| Page Range | 15778-15779 | |
| FR Document | 2017-06243 |
[Federal Register Volume 82, Number 60 (Thursday, March 30, 2017)] [Notices] [Pages 15778-15779] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-06243] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80305; File No. SR-Phlx-2017-25] Self-Regulatory Organizations; NASDAQ PHLX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Pricing Schedule at Section VII(A) March 24, 2017. 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 March 20, 2017, NASDAQ 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Section VII(A) of the Exchange's Pricing Schedule, as described in further detail below. While the changes proposed herein are effective upon filing, the Exchange has designated that the amendments be operative on May 1, 2017. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqphlx.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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to amend the Exchange's Pricing Schedule at Section VII(A), entitled ``Option Trading Floor Fees,'' to add certain new fees that it will charge to members, member organizations and non-members that install and operate server and telecommunications equipment on the premises of the Exchange, and connect such servers and equipment to off-site locations, such as their remote offices, in connection with conducting a floor trading business. The Exchange recently moved to a new state-of-the-art operations center.\3\ The new operations center will provide significantly upgraded facilities for the Exchange's members and member organizations to conduct their floor trading business. Among these upgraded facilities are a new trading floor, equipped with intercooled Erich Keller workstations specifically designed for trading floors, and a new data center supported by enhanced power supplies.\4\ The Exchange anticipates increased utility and operational costs due to the above described enhancements. In the past, members and member organizations installed and operated their own server and telecommunications equipment on the premises of the Exchange in an ad hoc manner, supervised by the Exchange. In an effort to establish greater oversight and control over such activities, to standardize the manner in which these activities occur, and to generally provide for a more secure and orderly operating environment for both the Exchange and its members and member organizations, the Exchange will provide dedicated, segregated, and access-limited space (``cabinets'') in its new data center to members, member organizations and non-members for their telecommunications vendors to house servers and telecommunications equipment.\5\ Furthermore, the Exchange will provide for the connection of such servers and equipment to the trading floor and to off-site locations, including the remote offices of members and member organizations. --------------------------------------------------------------------------- \3\ The Exchange relocated its premises from 1900 Market Street in Philadelphia, Pennsylvania to a new location at FMC Tower, 2929 Walnut Street in Philadelphia, Pennsylvania. \4\ The new trading floor will be driven by brand new 300 kVA UPS units, with an 800 kw back-up generator. \5\ The Exchange will assign each member, member organization and non-member a minimum of one half cabinet in its new data center. --------------------------------------------------------------------------- The Exchange proposes to charge its members, member organizations and non-members new fees for providing them with these upgraded facilities and services. In particular, the Exchange proposes to charge monthly fees for providing dedicated half cabinets ($250 per month) or whole cabinets ($800 per month) in its data center to house the servers and telecommunications equipment of its members, member organizations and non-members and their telecommunications vendors.\6\ The Exchange also proposes to charge a monthly fee of $50 to connect one cabinet to another cabinet and the same monthly fee to connect a cabinet to off- site locations, including to a member's or member organization's remote office.\7\ Lastly, the Exchange proposes a fee of $150 per hour (billable on a quarter hour basis) for ``remote hands,'' meaning technical support that Exchange personnel provides with respect to the installation, configuration, maintenance, and repair of hardware, cables, and circuits. --------------------------------------------------------------------------- \6\ The Exchange proposes to charge substantially less for half cabinets than whole cabinets to incentivize members, member organizations, and non-members to make efficient use of the limited space in the new data center. That is, the Exchange seeks to discourage the purchase of a whole cabinet if the purchase of a half cabinet would suffice. \7\ The proposed Pricing Schedule refers to this as a ``Cabinet to MPOE Connectivity'' fee, where ``MPOE'' refers to the ``Main Point of Entry,'' meaning the place within the Exchange's facilities where members and member organizations can connect to the Exchange using external telecommunications lines. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with the provisions of Section 6(b) of the Act,\8\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\9\ in particular, in that 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The proposed fees are equitable and non-discriminatory in that they are applicable to all members, member organizations and non-members that choose to house their servers and [[Page 15779]] telecommunications equipment on the premises of the Exchange and to connect such equipment to their trading desks and remote offices. The proposed fees are also reasonable insofar as they permit the Exchange to recover its expected costs of hosting and providing connectivity to the servers and equipment of members, member organizations and non- members in the new environment. Moreover, as the Exchange explains in footnote 6 herein, the fees for half and whole cabinets, in particular, are reasonable insofar as the Exchange designed them to encourage efficient allocation of limited space in the new data center. Lastly, the proposed fees are similar to, if not often less than, fees that competing exchanges charge their customers for similar services.\10\ --------------------------------------------------------------------------- \10\ See e.g., NYSE Arca Options Fees and Charges, at 13-21 (charging vendor equipment room cabinet fee of $2,150 per cabinet per month and a telecom move/add/change fee of $100 per hour on a pro-rated basis), available at https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf; New York Stock Exchange Price List 2017, at 17 (charging Internet Equipment Monthly Hosting Fee of $1,000 per rack (equivalent to a cabinet), $600 per half rack, and $400 per quarter rack per month), available at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf; CBOE Fee Schedule, at 10 (charging $100 per month per equipment shelf (with 24 shelves equivalent to a half cabinet); $50 per month for outside connectivity; and $100 per hour for after-hours technical support, but with a four hour minimum). --------------------------------------------------------------------------- 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. The proposed fee structure is designed to ensure a fair and efficient use of Exchange facilities and services while allowing the Exchange to recoup some of its costs for providing those facilities and services to members, member organizations, and non-members. Moreover, the rates of the proposed fees will be comparable with those charged by other competing exchanges.\11\ --------------------------------------------------------------------------- \11\ See id. --------------------------------------------------------------------------- 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.\12\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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. 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 CommentsUse 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-Phlx-2017-25 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-Phlx-2017-25. 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-Phlx-2017-25, and should be submitted on or before April 20, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-06243 Filed 3-29-17; 8:45 am] BILLING CODE 8011-01-P
![15778 Federal Register / Vol. 82, No. 60 / Thursday, March 30, 2017 / Notices
For the Commission, by the Division of places specified in Item IV below. The equipment.5 Furthermore, the Exchange
Investment Management, under delegated Exchange has prepared summaries, set will provide for the connection of such
authority. forth in sections A, B, and C below, of servers and equipment to the trading
Eduardo A. Aleman, the most significant aspects of such floor and to off-site locations, including
Assistant Secretary. statements. the remote offices of members and
[FR Doc. 2017–06247 Filed 3–29–17; 8:45 am] member organizations.
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s The Exchange proposes to charge its
Statement of the Purpose of, and the members, member organizations and
Statutory Basis for, the Proposed Rule non-members new fees for providing
SECURITIES AND EXCHANGE Change them with these upgraded facilities and
COMMISSION services. In particular, the Exchange
1. Purpose
proposes to charge monthly fees for
[Release No. 34–80305; File No. SR–Phlx–
The purpose of the proposed rule providing dedicated half cabinets ($250
2017–25]
change is to amend the Exchange’s per month) or whole cabinets ($800 per
Self-Regulatory Organizations; Pricing Schedule at Section VII(A), month) in its data center to house the
NASDAQ PHLX, LLC; Notice of Filing entitled ‘‘Option Trading Floor Fees,’’ to servers and telecommunications
and Immediate Effectiveness of add certain new fees that it will charge equipment of its members, member
Proposed Rule Change To Amend the to members, member organizations and organizations and non-members and
Exchange’s Pricing Schedule at non-members that install and operate their telecommunications vendors.6 The
Section VII(A) server and telecommunications Exchange also proposes to charge a
equipment on the premises of the monthly fee of $50 to connect one
March 24, 2017. cabinet to another cabinet and the same
Exchange, and connect such servers and
Pursuant to Section 19(b)(1) of the monthly fee to connect a cabinet to off-
equipment to off-site locations, such as
Securities Exchange Act of 1934 site locations, including to a member’s
their remote offices, in connection with
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 or member organization’s remote office.7
conducting a floor trading business.
notice is hereby given that on March 20, Lastly, the Exchange proposes a fee of
2017, NASDAQ PHLX, LLC (‘‘Phlx’’ or The Exchange recently moved to a $150 per hour (billable on a quarter
‘‘Exchange’’) filed with the Securities new state-of-the-art operations center.3 hour basis) for ‘‘remote hands,’’
and Exchange Commission (‘‘SEC’’ or The new operations center will provide meaning technical support that
‘‘Commission’’) the proposed rule significantly upgraded facilities for the Exchange personnel provides with
change as described in Items I, II, and Exchange’s members and member respect to the installation, configuration,
III, below, which Items have been organizations to conduct their floor maintenance, and repair of hardware,
prepared by the Exchange. The trading business. Among these upgraded cables, and circuits.
Commission is publishing this notice to facilities are a new trading floor,
2. Statutory Basis
solicit comments on the proposed rule equipped with intercooled Erich Keller
change from interested persons. workstations specifically designed for The Exchange believes that its
trading floors, and a new data center proposal is consistent with the
I. Self-Regulatory Organization’s provisions of Section 6(b) of the Act,8 in
Statement of the Terms of Substance of supported by enhanced power
supplies.4 The Exchange anticipates general, and furthers the objectives of
the Proposed Rule Change Sections 6(b)(4) and 6(b)(5) of the Act,9
increased utility and operational costs
The Exchange proposes to amend due to the above described in particular, in that it provides for the
Section VII(A) of the Exchange’s Pricing enhancements. In the past, members equitable allocation of reasonable dues,
Schedule, as described in further detail and member organizations installed and fees, and other charges among its
below. operated their own server and members, issuers, and other persons
While the changes proposed herein telecommunications equipment on the using its facilities, and does not unfairly
are effective upon filing, the Exchange premises of the Exchange in an ad hoc discriminate between customers,
has designated that the amendments be manner, supervised by the Exchange. In issuers, brokers or dealers.
operative on May 1, 2017. The proposed fees are equitable and
an effort to establish greater oversight
The text of the proposed rule change non-discriminatory in that they are
and control over such activities, to applicable to all members, member
is available on the Exchange’s Web site
standardize the manner in which these organizations and non-members that
at http://nasdaqphlx.cchwallstreet.com,
at the principal office of the Exchange, activities occur, and to generally choose to house their servers and
and at the Commission’s Public provide for a more secure and orderly
Reference Room. operating environment for both the 5 The Exchange will assign each member, member
Exchange and its members and member organization and non-member a minimum of one
II. Self-Regulatory Organization’s organizations, the Exchange will half cabinet in its new data center.
Statement of the Purpose of, and provide dedicated, segregated, and 6 The Exchange proposes to charge substantially
Statutory Basis for, the Proposed Rule less for half cabinets than whole cabinets to
access-limited space (‘‘cabinets’’) in its incentivize members, member organizations, and
Change new data center to members, member non-members to make efficient use of the limited
In its filing with the Commission, the organizations and non-members for space in the new data center. That is, the Exchange
their telecommunications vendors to seeks to discourage the purchase of a whole cabinet
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Exchange included statements if the purchase of a half cabinet would suffice.
concerning the purpose of and basis for house servers and telecommunications 7 The proposed Pricing Schedule refers to this as
the proposed rule change and discussed a ‘‘Cabinet to MPOE Connectivity’’ fee, where
any comments it received on the 3 The Exchange relocated its premises from 1900 ‘‘MPOE’’ refers to the ‘‘Main Point of Entry,’’
Market Street in Philadelphia, Pennsylvania to a meaning the place within the Exchange’s facilities
proposed rule change. The text of these where members and member organizations can
new location at FMC Tower, 2929 Walnut Street in
statements may be examined at the Philadelphia, Pennsylvania. connect to the Exchange using external
4 The new trading floor will be driven by brand telecommunications lines.
1 15 U.S.C. 78s(b)(1). 8 15 U.S.C. 78f(b).
new 300 kVA UPS units, with an 800 kw back-up
2 17 CFR 240.19b–4. generator. 9 15 U.S.C. 78f(b)(4) and (5).
VerDate Sep<11>2014 19:09 Mar 29, 2017 Jkt 241001 PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 E:\FR\FM\30MRN1.SGM 30MRN1](https://thefederalregister.org/doc/82_FR_15838/page/1.svg)
![Federal Register / Vol. 82, No. 60 / Thursday, March 30, 2017 / Notices 15779
telecommunications equipment on the III. Date of Effectiveness of the Washington, DC 20549, on official
premises of the Exchange and to Proposed Rule Change and Timing for business days between the hours of
connect such equipment to their trading Commission Action 10:00 a.m. and 3:00 p.m. Copies of the
desks and remote offices. The proposed The foregoing rule change has become filing also will be available for
fees are also reasonable insofar as they effective pursuant to Section inspection and copying at the principal
permit the Exchange to recover its office of the Exchange. All comments
19(b)(3)(A)(ii) of the Act.12
expected costs of hosting and providing received will be posted without change;
At any time within 60 days of the
connectivity to the servers and the Commission does not edit personal
filing of the proposed rule change, the
equipment of members, member identifying information from
Commission summarily may
submissions. You should submit only
organizations and non-members in the temporarily suspend such rule change if
information that you wish to make
new environment. Moreover, as the it appears to the Commission that such
available publicly. All submissions
Exchange explains in footnote 6 herein, action is: (i) Necessary or appropriate in
should refer to File Number SR–Phlx–
the fees for half and whole cabinets, in the public interest; (ii) for the protection
2017–25, and should be submitted on or
particular, are reasonable insofar as the of investors; or (iii) otherwise in
before April 20, 2017.
Exchange designed them to encourage furtherance of the purposes of the Act.
If the Commission takes such action, the For the Commission, by the Division of
efficient allocation of limited space in Trading and Markets, pursuant to delegated
the new data center. Lastly, the Commission shall institute proceedings
authority.13
proposed fees are similar to, if not often to determine whether the proposed rule
Eduardo A. Aleman,
less than, fees that competing exchanges should be approved or disapproved.
Assistant Secretary.
charge their customers for similar IV. Solicitation of Comments [FR Doc. 2017–06243 Filed 3–29–17; 8:45 am]
services.10
Interested persons are invited to BILLING CODE 8011–01–P
B. Self-Regulatory Organization’s submit written data, views, and
Statement on Burden on Competition arguments concerning the foregoing,
including whether the proposed rule SOCIAL SECURITY ADMINISTRATION
The Exchange does not believe that change is consistent with the Act.
[Docket No: SSA–2017–0014]
the proposed rule change will impose Comments may be submitted by any of
any burden on competition not the following methods: Agency Information Collection
necessary or appropriate in furtherance Activities: Proposed Request
Electronic Comments
of the purposes of the Act. The
proposed fee structure is designed to • Use the Commission’s Internet The Social Security Administration
ensure a fair and efficient use of comment form (http://www.sec.gov/ (SSA) publishes a list of information
Exchange facilities and services while rules/sro.shtml); or collection packages requiring clearance
allowing the Exchange to recoup some • Send an email to rule-comments@ by the Office of Management and
sec.gov. Please include File Number SR– Budget (OMB) in compliance with
of its costs for providing those facilities
Phlx–2017–25 on the subject line. Public Law 104–13, the Paperwork
and services to members, member Reduction Act of 1995, effective October
organizations, and non-members. Paper Comments 1, 1995. This notice includes one
Moreover, the rates of the proposed fees
• Send paper comments in triplicate revision of an OMB-approved
will be comparable with those charged to Secretary, Securities and Exchange information collection.
by other competing exchanges.11 Commission, 100 F Street NE., SSA is soliciting comments on the
C. Self-Regulatory Organization’s Washington, DC 20549–1090. accuracy of the agency’s burden
Statement on Comments on the All submissions should refer to File estimate; the need for the information;
Number SR–Phlx–2017–25. This file its practical utility; ways to enhance its
Proposed Rule Change Received From
number should be included on the quality, utility, and clarity; and ways to
Members, Participants, or Others
subject line if email is used. To help the minimize burden on respondents,
No written comments were either Commission process and review your including the use of automated
solicited or received. comments more efficiently, please use collection techniques or other forms of
only one method. The Commission will information technology. Mail, email, or
post all comments on the Commission’s fax your comments and
Internet Web site (http://www.sec.gov/ recommendations on the information
10 See e.g., NYSE Arca Options Fees and Charges,
rules/sro.shtml). Copies of the collection(s) to the OMB Desk Officer
at 13–21 (charging vendor equipment room cabinet submission, all subsequent and SSA Reports Clearance Officer at
fee of $2,150 per cabinet per month and a telecom amendments, all written statements the following addresses or fax numbers.
move/add/change fee of $100 per hour on a pro-
with respect to the proposed rule (OMB) Office of Management and
rated basis), available at https://www.nyse.com/ Budget, Attn: Desk Officer for SSA,
publicdocs/nyse/markets/arca-options/NYSE_Arca_
change that are filed with the
Commission, and all written Fax: 202–395–6974, Email address:
Options_Fee_Schedule.pdf; New York Stock
Exchange Price List 2017, at 17 (charging Internet communications relating to the OIRA_Submission@omb.eop.gov
Equipment Monthly Hosting Fee of $1,000 per rack proposed rule change between the (SSA) Social Security Administration,
OLCA, Attn: Reports Clearance
asabaliauskas on DSK3SPTVN1PROD with NOTICES
(equivalent to a cabinet), $600 per half rack, and Commission and any person, other than
$400 per quarter rack per month), available at those that may be withheld from the Director, 3100 West High Rise, 6401
https://www.nyse.com/publicdocs/nyse/markets/ Security Blvd., Baltimore, MD 21235,
public in accordance with the
nyse/NYSE_Price_List.pdf; CBOE Fee Schedule, at Fax: 410–966–2830, Email address:
10 (charging $100 per month per equipment shelf
provisions of 5 U.S.C. 552, will be
(with 24 shelves equivalent to a half cabinet); $50 available for Web site viewing and OR.Reports.Clearance@ssa.gov
per month for outside connectivity; and $100 per printing in the Commission’s Public Or you may submit your comments
hour for after-hours technical support, but with a Reference Room, 100 F Street NE., online through www.regulations.gov,
four hour minimum).
11 See id. 12 15 U.S.C. 78s(b)(3)(A)(ii). 13 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 19:09 Mar 29, 2017 Jkt 241001 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 E:\FR\FM\30MRN1.SGM 30MRN1](https://thefederalregister.org/doc/82_FR_15838/page/2.svg)
Document Created: 2017-03-30 01:35:52
Document Modified: 2017-03-30 01:35:52
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 82 FR 15778 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR