82_FR_47070 82 FR 46877 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Connectivity Fees at Rule 7051

82 FR 46877 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Connectivity Fees at Rule 7051

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 193 (October 6, 2017)

Page Range46877-46879
FR Document2017-21541

Federal Register, Volume 82 Issue 193 (Friday, October 6, 2017)
[Federal Register Volume 82, Number 193 (Friday, October 6, 2017)]
[Notices]
[Pages 46877-46879]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-21541]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81798; File No. SR-NASDAQ-2017-097]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Exchange's Connectivity Fees at Rule 7051

October 2, 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 September 18, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 7051, which sets forth the 
schedule of fees that the Exchange charges to its clients for 
connecting directly to the Exchange's data centers and/or receiving 
third party market data feeds and other non-Exchange services from the 
Exchange via circuits provided by third party telecommunications 
providers.
    While these amendments are effective upon filing, the Exchange has 
designated the proposed amendments to be operative on October 1, 2017.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaq.cchwallstreet.com/, at the principal office 
of the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Rule 7051, which sets forth the 
schedule of fees that the Exchange charges to its clients for 
connecting directly to the Exchange's data centers and/or receiving 
third party market data feeds and other non-Exchange services from the 
Exchange via circuits provided by third party telecommunications 
providers.
    Subscribers may use the connectivity provided under Rule 7051 to 
link them

[[Page 46878]]

to the Exchange for order entry and to receive proprietary data feeds, 
to receive public quote feeds from Securities Information Processors, 
and to connect to facilities of FINRA, such as the FINRA/Nasdaq TRF. 
The Exchange provides various direct connectivity options based on the 
capacity of the connection. A subscriber generally determines the 
capacity of the connection it needs based on the number of data 
services it wishes to receive and its estimated usage for trading and 
trade reporting purposes.
    For direct connectivity to Nasdaq, Rule 7051(a) provides for 1 GB, 
1 GB Ultra, and 10 GB Ultra hand-offs. The installation fee for all 
such connections is $1,500 and the monthly fee is $7,500 for 10 GB 
connections and $2,500 for both 1 GB and 1 GB Ultra hand-offs. The 
Exchange also charges a $925 fee to customers that choose to install a 
cable router in its data center and a monthly fee of $150 for customers 
that choose to install equipment in the Exchange's data center to 
support the connectivity.
    For direct connectivity to third party services, Rule 7051(b) 
provides for 1GB Ultra and 10 GB Ultra hand-offs. The installation fee 
for both 10 GB Ultra and 1 GB Ultra direct connections is $1,500. 
Meanwhile, the monthly fee is $5,000 for 10 GB Ultra connections and 
$2,000 for 1 GB Ultra hand-offs. For 1 GB Ultra or 10 GB Ultra 
connections for UTP only, the installation fee and monthly fee is 
waived for the first two connections and thereafter the installation 
fee is $100 and the monthly fee is also $100. Again, the Exchange 
charges a $925 fee to customers that choose to install a cable router 
in its data center for purposes of receiving these third party services 
and a monthly fee of $150 for customers that choose to install 
equipment in the Exchange's data center to support the connectivity.
    In order to reflect the changing nature of the Exchange's ecosystem 
and of the connection technologies it employs, the Exchange proposes to 
clarify Rule 7051 in several respects.
    First, the Exchange proposes to list separately those fees it 
charges for certain connectivity that it presently includes under the 
general heading of Direct Connectivity, pursuant to Rule 7051(a). 
Specifically, the Exchange proposes to break out the fees it charges to 
clients that connect directly to the Exchange through a ``Point of 
Presence'' or ``POP'' from the fees it charges to clients that connect 
through a direct circuit connection. In contrast to a traditional 
direct circuit connection, in which a client uses an external 
telecommunications provider's circuit to connect directly to the 
Exchange's primary data center in Carteret, New Jersey, a ``POP'' 
connection is one in which a client directly connects to the Exchange 
at one of its satellite data centers located elsewhere. Each such POP, 
in turn, has a fully redundant connection to the Exchange's primary 
data center.
    The Exchange proposes to list POP connectivity fees separately from 
traditional direct circuit connectivity fees because it wishes to 
highlight POP connectivity as a distinct connection option, 
particularly as it contemplates expanding the numbers and locations of 
its POPs in the future.
    To effect the foregoing change, the Exchange proposes to add a new 
subsection (c) to Rule 7051 entitled ``Point of Presence 
Connectivity.'' Under proposed Rule 7051(c), the installation and 
monthly fees that the Exchange proposes to charge expressly for POP 
connectivity would not be new fees and they would differ only in name, 
and not in amount, from those fees that clients presently pay under 
Rule 7051(a) for the same connectivity. The new subsection would 
provide for clients to choose between 10 GB Ultra and 1 GB Ultra 
bandwidth hand-offs for connections to POPs. However, the proposed 
subsection (c) will not include charges for installing optional cable 
routers or cabinet space rentals insofar as clients may not install 
routers in or rent cabinet space directly from the Exchange at the 
POPs. Likewise, proposed subsection (c) will not include fees for 
regular 1 GB hand-offs insofar such hand-offs are not available for 
connections to POPs.
    In addition to the above, the Exchange proposes to update the 
headings of Rule 7051(a) and (b) so that they more accurately reflect 
the nature of the services to which they apply. Because Rule 7051(a) 
and (b) list the fees that the Exchange charges customers for 
installing and maintaining direct telecommunications ``circuit'' 
connectivity with the Exchange, the Exchange proposes to change the 
heading of subsection (a) from ``Direct Connectivity to Nasdaq'' to 
``Direct Circuit Connection to Nasdaq'' and the heading of subsection 
(b) from ``Direct Connectivity to Third Party Services'' to ``Direct 
Circuit Connection to Third Party Services.''
    Lastly, the Exchange proposes to amend Rule 7051 to state that the 
connectivity provided under the Rule also applies to connectivity to 
the markets of The NASDAQ Stock Market LLC, NASDAQ BX, Inc., NASDAQ 
PHLX LLC, Nasdaq ISE LLC, Nasdaq MRX LLC, and Nasdaq GEMX LLC. This 
purpose of this proposal is to specify that a client can use the 
connections it establishes and maintains under the Rule to connect, not 
only to the Exchange, but also to any or all of its sister Exchanges, 
and in doing so, it will be billed only once. Certain of the Exchange's 
other Rules already include similar language, including Rules 7030 and 
7034. The Exchange wishes now to add such language to Rule 7051.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b) of the Act,\3\ in general, and furthers the objectives of sections 
6(b)(4) and 6(b)(5) of the Act,\4\ 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, and is 
not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that its proposal to separately list its fees 
for POP connectivity is reasonable as a means of clearly distinguishing 
POP connectivity from traditional direct circuit connectivity as set 
forth in Rule 7051(a). The proposal will not assess any new or 
different fees to customers that connect to the Exchange through POPs. 
Instead, the proposal will merely re-characterize the fees that clients 
presently pay under Rule 7051(a) as relating specifically to POP 
connectivity. The Exchange also believes that this proposal is an 
equitable allocation and is not unfairly discriminatory because it will 
apply all similarly situated clients that connect through POPs.
    The Exchange believes that its proposal to modify the headings of 
subsections (a) and (b) of Rule 7051 is also reasonable because it 
clarifies that the fees in these subsections pertain specifically to 
connections to the Exchange that involve circuits provided by external 
telecommunications providers. Again, this proposal is an equitable 
allocation and is not unfairly discriminatory in that it will apply to 
all clients that use such direct circuits to connect to the Exchange.
    Lastly, the Exchange believes that its proposal is reasonable and 
nondiscriminatory to clarify that each of the connection options and 
fees set forth in Rule 7051 generally provide for connectivity to The 
NASDAQ Stock Market LLC, NASDAQ BX, Inc., NASDAQ PHLX LLC, Nasdaq ISE 
LLC, Nasdaq MRX LLC, and Nasdaq GEMX LLC. The Exchange does not 
restrict its clients from utilizing their direct

[[Page 46879]]

connections to it to also access its sister exchanges, and it does not 
charge its clients more than once to do so. Although certain of the 
Exchange's other connectivity Rules already make these points clear 
(e.g., Rules 7030 and 7034), Rule 7051 does not do so. The Exchange 
therefore believes its proposal to clarify Rule 7051 is warranted.

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 proposal merely clarifies 
the Exchange's existing services and associated fees and the Exchange 
does not anticipate that such clarifications will have any impact on 
competition whatsoever.

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.\5\
---------------------------------------------------------------------------

    \5\ 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 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-2017-097 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-NASDAQ-2017-097. 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-2017-097, and should 
be submitted on or before October 27, 2017.
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
---------------------------------------------------------------------------
pursuant to delegated authority.\6\

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-21541 Filed 10-5-17; 8:45 am]
BILLING CODE 8011-01-P



                                                                                   Federal Register / Vol. 82, No. 193 / Friday, October 6, 2017 / Notices                                         46877

                                                    IV. Procedure: Request for Written                      Commission process and review your                    ‘‘Exchange’’) filed with the Securities
                                                    Comments                                                comments more efficiently, please use                 and Exchange Commission (‘‘SEC’’ or
                                                       The Commission requests that                         only one method. The Commission will                  ‘‘Commission’’) the proposed rule
                                                    interested persons provide written                      post all comments on the Commission’s                 change as described in Items I, II, and
                                                    submissions of their views, data, and                   Internet Web site (http://www.sec.gov/                III below, which Items have been
                                                                                                            rules/sro.shtml). Copies of the                       prepared by the Exchange. The
                                                    arguments with respect to the issues
                                                                                                            submission, all subsequent                            Commission is publishing this notice to
                                                    identified above, as well as any other
                                                                                                            amendments, all written statements                    solicit comments on the proposed rule
                                                    concerns they may have with the
                                                                                                            with respect to the proposed rule                     change from interested persons.
                                                    proposal. In particular, the Commission
                                                                                                            change that are filed with the
                                                    invites the written views of interested                                                                       I. Self-Regulatory Organization’s
                                                                                                            Commission, and all written
                                                    persons concerning whether the                                                                                Statement of the Terms of Substance of
                                                                                                            communications relating to the
                                                    proposal is consistent with Section                                                                           the Proposed Rule Change
                                                                                                            proposed rule change between the
                                                    6(b)(5) or any other provision of the Act,
                                                                                                            Commission and any person, other than                    The Exchange proposes to amend
                                                    or the rules and regulations thereunder.
                                                                                                            those that may be withheld from the                   Rule 7051, which sets forth the schedule
                                                    Although there do not appear to be any
                                                                                                            public in accordance with the                         of fees that the Exchange charges to its
                                                    issues relevant to approval or                          provisions of 5 U.S.C. 552, will be                   clients for connecting directly to the
                                                    disapproval that would be facilitated by                available for Web site viewing and                    Exchange’s data centers and/or
                                                    an oral presentation of views, data, and                printing in the Commission’s Public                   receiving third party market data feeds
                                                    arguments, the Commission will                          Reference Room, 100 F Street NE.,                     and other non-Exchange services from
                                                    consider, pursuant to Rule 19b–4, any                   Washington, DC 20549, on official                     the Exchange via circuits provided by
                                                    request for an opportunity to make an                   business days between the hours of                    third party telecommunications
                                                    oral presentation.23                                    10:00 a.m. and 3:00 p.m. Copies of the                providers.
                                                       Interested persons are invited to                    filing also will be available for                        While these amendments are effective
                                                    submit written data, views, and                         inspection and copying at the principal               upon filing, the Exchange has
                                                    arguments regarding whether the                         office of the Exchange. All comments                  designated the proposed amendments to
                                                    proposal should be approved or                          received will be posted without change;               be operative on October 1, 2017.
                                                    disapproved by October 27, 2017. Any                    the Commission does not edit personal                    The text of the proposed rule change
                                                    person who wishes to file a rebuttal to                 identifying information from                          is available on the Exchange’s Web site
                                                    any other person’s submission must file                 submissions. You should submit only                   at http://nasdaq.cchwallstreet.com/, at
                                                    that rebuttal by November 13, 2017. The                 information that you wish to make                     the principal office of the Exchange, and
                                                    Commission asks that commenters                         available publicly. All submissions                   at the Commission’s Public Reference
                                                    address the sufficiency of the                          should refer to File Number SR–                       Room.
                                                    Exchange’s statements in support of the                 NYSEArca–2017–56 and should be
                                                    proposal, which are set forth in                        submitted on or before October 27,                    II. Self-Regulatory Organization’s
                                                    Amendment No. 1,24 in addition to any                   2017. Rebuttal comments should be                     Statement of the Purpose of, and
                                                    other comments they may wish to                         submitted by November 13, 2017.                       Statutory Basis for, the Proposed Rule
                                                    submit about the proposed rule change.                                                                        Change
                                                                                                              For the Commission, by the Division of
                                                       Comments may be submitted by any                     Trading and Markets, pursuant to delegated              In its filing with the Commission, the
                                                    of the following methods:                               authority.25                                          Exchange included statements
                                                    Electronic Comments                                     Eduardo A. Aleman,                                    concerning the purpose of and basis for
                                                                                                            Assistant Secretary.                                  the proposed rule change and discussed
                                                      • Use the Commission’s Internet
                                                                                                            [FR Doc. 2017–21537 Filed 10–5–17; 8:45 am]           any comments it received on the
                                                    comment form (http://www.sec.gov/
                                                                                                            BILLING CODE 8011–01–P                                proposed rule change. The text of these
                                                    rules/sro.shtml); or
                                                                                                                                                                  statements may be examined at the
                                                      • Send an email to rule-comments@
                                                                                                                                                                  places specified in Item IV below. The
                                                    sec.gov. Please include File Number SR–
                                                                                                            SECURITIES AND EXCHANGE                               Exchange has prepared summaries, set
                                                    NYSEArca–2017–56 on the subject line.
                                                                                                            COMMISSION                                            forth in sections A, B, and C below, of
                                                    Paper Comments                                                                                                the most significant aspects of such
                                                                                                            [Release No. 34–81798; File No. SR–
                                                       • Send paper comments in triplicate                  NASDAQ–2017–097]                                      statements.
                                                    to Secretary, Securities and Exchange                                                                         A. Self-Regulatory Organization’s
                                                    Commission, 100 F Street NE.,                           Self-Regulatory Organizations; The                    Statement of the Purpose of, and
                                                    Washington, DC 20549–1090.                              NASDAQ Stock Market LLC; Notice of                    Statutory Basis for, the Proposed Rule
                                                                                                            Filing and Immediate Effectiveness of                 Change
                                                    All submissions should refer to File
                                                                                                            Proposed Rule Change To Amend the
                                                    Number SR–NYSEArca–2017–56. This                                                                              1. Purpose
                                                                                                            Exchange’s Connectivity Fees at Rule
                                                    file number should be included on the
                                                                                                            7051                                                     The Exchange proposes to amend
                                                    subject line if email is used. To help the
                                                                                                            October 2, 2017.                                      Rule 7051, which sets forth the schedule
                                                       23 Section 19(b)(2) of the Act, as amended by the
                                                                                                               Pursuant to section 19(b)(1) of the                of fees that the Exchange charges to its
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    Securities Acts Amendments of 1975, Public Law
                                                                                                            Securities Exchange Act of 1934                       clients for connecting directly to the
                                                    94–29 (June 4, 1975), grants the Commission                                                                   Exchange’s data centers and/or
                                                    flexibility to determine what type of proceeding—       (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                    either oral or notice and opportunity for written       notice is hereby given that on                        receiving third party market data feeds
                                                    comments—is appropriate for consideration of a          September 18, 2017, The NASDAQ                        and other non-Exchange services from
                                                    particular proposal by a self-regulatory
                                                                                                            Stock Market LLC (‘‘Nasdaq’’ or                       the Exchange via circuits provided by
                                                    organization. See Securities Acts Amendments of                                                               third party telecommunications
                                                    1975, Senate Comm. on Banking, Housing & Urban
                                                    Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30         25 17 CFR 200.30–3(a)(57).                          providers.
                                                    (1975).                                                   1 15 U.S.C. 78s(b)(1).                                 Subscribers may use the connectivity
                                                       24 See supra note 3.                                   2 17 CFR 240.19b–4.                                 provided under Rule 7051 to link them


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                                                    46878                          Federal Register / Vol. 82, No. 193 / Friday, October 6, 2017 / Notices

                                                    to the Exchange for order entry and to                  primary data center in Carteret, New                  establishes and maintains under the
                                                    receive proprietary data feeds, to receive              Jersey, a ‘‘POP’’ connection is one in                Rule to connect, not only to the
                                                    public quote feeds from Securities                      which a client directly connects to the               Exchange, but also to any or all of its
                                                    Information Processors, and to connect                  Exchange at one of its satellite data                 sister Exchanges, and in doing so, it will
                                                    to facilities of FINRA, such as the                     centers located elsewhere. Each such                  be billed only once. Certain of the
                                                    FINRA/Nasdaq TRF. The Exchange                          POP, in turn, has a fully redundant                   Exchange’s other Rules already include
                                                    provides various direct connectivity                    connection to the Exchange’s primary                  similar language, including Rules 7030
                                                    options based on the capacity of the                    data center.                                          and 7034. The Exchange wishes now to
                                                    connection. A subscriber generally                         The Exchange proposes to list POP                  add such language to Rule 7051.
                                                    determines the capacity of the                          connectivity fees separately from
                                                                                                            traditional direct circuit connectivity               2. Statutory Basis
                                                    connection it needs based on the
                                                    number of data services it wishes to                    fees because it wishes to highlight POP                  The Exchange believes that its
                                                    receive and its estimated usage for                     connectivity as a distinct connection                 proposal is consistent with section 6(b)
                                                    trading and trade reporting purposes.                   option, particularly as it contemplates               of the Act,3 in general, and furthers the
                                                       For direct connectivity to Nasdaq,                   expanding the numbers and locations of                objectives of sections 6(b)(4) and 6(b)(5)
                                                    Rule 7051(a) provides for 1 GB, 1 GB                    its POPs in the future.                               of the Act,4 in particular, in that it
                                                    Ultra, and 10 GB Ultra hand-offs. The                      To effect the foregoing change, the                provides for the equitable allocation of
                                                    installation fee for all such connections               Exchange proposes to add a new                        reasonable dues, fees and other charges
                                                    is $1,500 and the monthly fee is $7,500                 subsection (c) to Rule 7051 entitled                  among members and issuers and other
                                                    for 10 GB connections and $2,500 for                    ‘‘Point of Presence Connectivity.’’ Under             persons using any facility, and is not
                                                    both 1 GB and 1 GB Ultra hand-offs. The                 proposed Rule 7051(c), the installation               designed to permit unfair
                                                    Exchange also charges a $925 fee to                     and monthly fees that the Exchange                    discrimination between customers,
                                                    customers that choose to install a cable                proposes to charge expressly for POP                  issuers, brokers, or dealers.
                                                    router in its data center and a monthly                 connectivity would not be new fees and                   The Exchange believes that its
                                                    fee of $150 for customers that choose to                they would differ only in name, and not               proposal to separately list its fees for
                                                    install equipment in the Exchange’s data                in amount, from those fees that clients               POP connectivity is reasonable as a
                                                    center to support the connectivity.                     presently pay under Rule 7051(a) for the              means of clearly distinguishing POP
                                                       For direct connectivity to third party               same connectivity. The new subsection                 connectivity from traditional direct
                                                    services, Rule 7051(b) provides for 1GB                 would provide for clients to choose                   circuit connectivity as set forth in Rule
                                                    Ultra and 10 GB Ultra hand-offs. The                    between 10 GB Ultra and 1 GB Ultra                    7051(a). The proposal will not assess
                                                    installation fee for both 10 GB Ultra and               bandwidth hand-offs for connections to                any new or different fees to customers
                                                    1 GB Ultra direct connections is $1,500.                POPs. However, the proposed                           that connect to the Exchange through
                                                    Meanwhile, the monthly fee is $5,000                    subsection (c) will not include charges               POPs. Instead, the proposal will merely
                                                    for 10 GB Ultra connections and $2,000                  for installing optional cable routers or              re-characterize the fees that clients
                                                    for 1 GB Ultra hand-offs. For 1 GB Ultra                cabinet space rentals insofar as clients              presently pay under Rule 7051(a) as
                                                    or 10 GB Ultra connections for UTP                      may not install routers in or rent cabinet            relating specifically to POP
                                                    only, the installation fee and monthly                  space directly from the Exchange at the               connectivity. The Exchange also
                                                    fee is waived for the first two                         POPs. Likewise, proposed subsection (c)               believes that this proposal is an
                                                    connections and thereafter the                          will not include fees for regular 1 GB                equitable allocation and is not unfairly
                                                    installation fee is $100 and the monthly                hand-offs insofar such hand-offs are not              discriminatory because it will apply all
                                                    fee is also $100. Again, the Exchange                   available for connections to POPs.                    similarly situated clients that connect
                                                    charges a $925 fee to customers that                       In addition to the above, the Exchange             through POPs.
                                                    choose to install a cable router in its                 proposes to update the headings of Rule                  The Exchange believes that its
                                                    data center for purposes of receiving                   7051(a) and (b) so that they more                     proposal to modify the headings of
                                                    these third party services and a monthly                accurately reflect the nature of the                  subsections (a) and (b) of Rule 7051 is
                                                    fee of $150 for customers that choose to                services to which they apply. Because                 also reasonable because it clarifies that
                                                    install equipment in the Exchange’s data                Rule 7051(a) and (b) list the fees that the           the fees in these subsections pertain
                                                    center to support the connectivity.                     Exchange charges customers for                        specifically to connections to the
                                                       In order to reflect the changing nature              installing and maintaining direct                     Exchange that involve circuits provided
                                                    of the Exchange’s ecosystem and of the                  telecommunications ‘‘circuit’’                        by external telecommunications
                                                    connection technologies it employs, the                 connectivity with the Exchange, the                   providers. Again, this proposal is an
                                                    Exchange proposes to clarify Rule 7051                  Exchange proposes to change the                       equitable allocation and is not unfairly
                                                    in several respects.                                    heading of subsection (a) from ‘‘Direct               discriminatory in that it will apply to all
                                                       First, the Exchange proposes to list                 Connectivity to Nasdaq’’ to ‘‘Direct                  clients that use such direct circuits to
                                                    separately those fees it charges for                    Circuit Connection to Nasdaq’’ and the                connect to the Exchange.
                                                    certain connectivity that it presently                  heading of subsection (b) from ‘‘Direct                  Lastly, the Exchange believes that its
                                                    includes under the general heading of                   Connectivity to Third Party Services’’ to             proposal is reasonable and
                                                    Direct Connectivity, pursuant to Rule                   ‘‘Direct Circuit Connection to Third                  nondiscriminatory to clarify that each of
                                                    7051(a). Specifically, the Exchange                     Party Services.’’                                     the connection options and fees set forth
                                                    proposes to break out the fees it charges                  Lastly, the Exchange proposes to                   in Rule 7051 generally provide for
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    to clients that connect directly to the                 amend Rule 7051 to state that the                     connectivity to The NASDAQ Stock
                                                    Exchange through a ‘‘Point of Presence’’                connectivity provided under the Rule                  Market LLC, NASDAQ BX, Inc.,
                                                    or ‘‘POP’’ from the fees it charges to                  also applies to connectivity to the                   NASDAQ PHLX LLC, Nasdaq ISE LLC,
                                                    clients that connect through a direct                   markets of The NASDAQ Stock Market                    Nasdaq MRX LLC, and Nasdaq GEMX
                                                    circuit connection. In contrast to a                    LLC, NASDAQ BX, Inc., NASDAQ                          LLC. The Exchange does not restrict its
                                                    traditional direct circuit connection, in               PHLX LLC, Nasdaq ISE LLC, Nasdaq                      clients from utilizing their direct
                                                    which a client uses an external                         MRX LLC, and Nasdaq GEMX LLC. This
                                                    telecommunications provider’s circuit                   purpose of this proposal is to specify                  3 15   U.S.C. 78f(b).
                                                    to connect directly to the Exchange’s                   that a client can use the connections it                4 15   U.S.C. 78f(b)(4) and (5).



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                                                                                        Federal Register / Vol. 82, No. 193 / Friday, October 6, 2017 / Notices                                                  46879

                                                    connections to it to also access its sister                Paper Comments                                           verified notice of exemption under 49
                                                    exchanges, and it does not charge its                         • Send paper comments in triplicate                   CFR 1150.31 to acquire by lease from
                                                    clients more than once to do so.                           to Secretary, Securities and Exchange                    Scrap Metal Services, LLC (SMS), and to
                                                    Although certain of the Exchange’s                         Commission, 100 F Street NE.,                            operate,1 approximately 2,115 linear
                                                    other connectivity Rules already make                      Washington, DC 20549–1090.                               feet (0.40 mile) of railroad right-of-way
                                                    these points clear (e.g., Rules 7030 and                                                                            and trackage located at the East Chicago
                                                    7034), Rule 7051 does not do so. The                       All submissions should refer to File                     Transload Facility at the intersection of
                                                    Exchange therefore believes its proposal                   Number SR–NASDAQ–2017–097. This                          East 151st Street and the Indiana Harbor
                                                    to clarify Rule 7051 is warranted.                         file number should be included on the                    Belt Railroad right-of-way in East
                                                                                                               subject line if email is used. To help the               Chicago, Ind. (the East Chicago
                                                    B. Self-Regulatory Organization’s                          Commission process and review your                       Transload Facility trackage), pursuant to
                                                    Statement on Burden on Competition                         comments more efficiently, please use                    an agreement. SMS Realty (East
                                                      The Exchange does not believe that                       only one method. The Commission will                     Chicago), LLC, owns the East Chicago
                                                    the proposed rule change will impose                       post all comments on the Commission’s                    Transload Facility trackage, which is
                                                    any burden on competition not                              Internet Web site (http://www.sec.gov/                   leased to SMS.
                                                    necessary or appropriate in furtherance                    rules/sro.shtml). Copies of the                             According to SMSRRIN, there are no
                                                    of the purposes of the Act. The proposal                   submission, all subsequent                               mileposts associated with the East
                                                    merely clarifies the Exchange’s existing                   amendments, all written statements                       Chicago Transload Facility trackage.
                                                    services and associated fees and the                       with respect to the proposed rule                        SMSRRIN states that the trackage is
                                                    Exchange does not anticipate that such                     change that are filed with the                           used in conjunction with interchanging
                                                    clarifications will have any impact on                     Commission, and all written                              to and from Indiana Harbor Belt
                                                    competition whatsoever.                                    communications relating to the                           Railroad carloads of scrap metal for
                                                                                                               proposed rule change between the                         transloading into trucks for delivery to
                                                    C. Self-Regulatory Organization’s                          Commission and any person, other than                    metal working manufacturers.
                                                    Statement on Comments on the                               those that may be withheld from the                         SMSRRIN asserts that, because the
                                                    Proposed Rule Change Received From                         public in accordance with the                            trackage in question will constitute the
                                                    Members, Participants, or Others                           provisions of 5 U.S.C. 552, will be                      entire line of railroad of SMSRRIN, this
                                                      No written comments were either                          available for Web site viewing and                       trackage is a line of railroad under 49
                                                    solicited or received.                                     printing in the Commission’s Public                      U.S.C. 10901, rather than spur,
                                                                                                               Reference Room, 100 F Street NE.,                        switching, or side tracks excepted from
                                                    III. Date of Effectiveness of the                          Washington, DC 20549 on official                         Board acquisition and operation
                                                    Proposed Rule Change and Timing for                        business days between the hours of                       authority by virtue of 49 U.S.C. 10906.2
                                                    Commission Action                                          10:00 a.m. and 3:00 p.m. Copies of the                      Although SMSRRIN states in its
                                                       The foregoing rule change has become                    filing also will be available for                        verified notice that the operations were
                                                    effective pursuant to section                              inspection and copying at the principal                  proposed to be consummated on or
                                                    19(b)(3)(A)(ii) of the Act.5                               office of the Exchange. All comments                     about September 15, 2017, this
                                                                                                               received will be posted without change;                  transaction may not be consummated
                                                       At any time within 60 days of the
                                                                                                               the Commission does not edit personal                    until October 21, 2017 (30 days after the
                                                    filing of the proposed rule change, the
                                                                                                               identifying information from                             verified notice was filed).
                                                    Commission summarily may                                                                                               SMSRRIN certifies that its projected
                                                                                                               submissions. You should submit only
                                                    temporarily suspend such rule change if                                                                             annual revenues as a result of this
                                                                                                               information that you wish to make
                                                    it appears to the Commission that such                                                                              transaction do not exceed those that
                                                                                                               available publicly. All submissions
                                                    action is: (i) Necessary or appropriate in                                                                          would qualify it as a Class III rail carrier
                                                                                                               should refer to File Number SR–
                                                    the public interest; (ii) for the protection                                                                        and will not exceed $5 million.
                                                                                                               NASDAQ–2017–097, and should be
                                                    of investors; or (iii) otherwise in                                                                                 SMSRRIN also certifies that there are no
                                                                                                               submitted on or before October 27,
                                                    furtherance of the purposes of the Act.                                                                             provisions or agreements that may limit
                                                                                                               2017.
                                                    If the Commission takes such action, the                                                                            future interchange commitments.
                                                    Commission shall institute proceedings                       For the Commission, by the Division of
                                                                                                               Trading and Markets, pursuant to delegated                  If the verified notice contains false or
                                                    to determine whether the proposed rule                                                                              misleading information, the exemption
                                                    should be approved or disapproved.                         authority.6
                                                                                                                                                                        is void ab initio. Petitions to revoke the
                                                                                                               Eduardo A. Aleman,
                                                    IV. Solicitation of Comments                                                                                        exemption under 49 U.S.C. 10502(d)
                                                                                                               Assistant Secretary.                                     may be filed at any time. The filing of
                                                      Interested persons are invited to                        [FR Doc. 2017–21541 Filed 10–5–17; 8:45 am]              a petition to revoke will not
                                                    submit written data, views, and                            BILLING CODE 8011–01–P                                   automatically stay the effectiveness of
                                                    arguments concerning the foregoing,                                                                                 the exemption. Petitions to stay must be
                                                    including whether the proposed rule                                                                                 filed no later than October 13, 2017 (at
                                                    change is consistent with the Act.                         SURFACE TRANSPORTATION BOARD                             least seven days before the exemption
                                                    Comments may be submitted by any of                                                                                 becomes effective).
                                                    the following methods:                                     [Docket No. FD 36145]
                                                                                                                                                                           An original and 10 copies of all
                                                    Electronic Comments                                        Scrap Metal Services Terminal                            pleadings, referring to Docket No. FD
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                                                                               Railroad Company (Indiana), LLC—                         36145, must be filed with the Surface
                                                      • Use the Commission’s Internet                                                                                   Transportation Board, 395 E Street SW.,
                                                    comment form (http://www.sec.gov/                          Lease and Operation Exemption—Rail
                                                    rules/sro.shtml); or                                       Line of Scrap Metal Services, LLC
                                                                                                                                                                          1 A draft copy of the operating agreement was

                                                      • Send an email to rule-comments@                          Scrap Metal Services Terminal                          submitted with the notice of exemption.
                                                    sec.gov. Please include File Number SR–                    Railroad Company (Indiana), LLC                            2 See Effingham R.R.—Pet. for Declaratory

                                                    NASDAQ–2017–097 on the subject line.                                                                                Order—Constr. at Effingham, Ill., 2 S.T.B. 606,
                                                                                                               (SMSRRIN), a noncarrier, has filed a                     609–10 (STB served Sept. 12, 1997), aff’d sub nom.
                                                                                                                                                                        United Transp. Union-Illinois Legislative Bd. v.
                                                      5 15   U.S.C. 78s(b)(3)(A)(ii).                            6 17   CFR 200.30–3(a)(12).                            STB, 183 F.3d 606 (7th Cir. 1999).



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Document Created: 2017-10-06 00:08:48
Document Modified: 2017-10-06 00:08:48
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 Citation82 FR 46877 

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