Daily Rules, Proposed Rules, and Notices of the Federal Government
The Exchange proposes clarifying amendments to the Exchange's Fee Schedule regarding the Exchange's direct connectivity services. The text of the proposed rule change is available on the Exchange's Web site at
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.
The purpose of this rule filing is to relocate certain text in the Exchange's Fee Schedule for ease of reference and to clarify the Fee Schedule regarding direct connectivity to the Exchange. The direct connectivity fees are currently located in Section VI, entitled "Access Service, Cancellation, Membership, Regulatory and Other Fees." The Exchange proposes to relocate the fees to a new Section XI and title that section "Direct Connectivity to Phlx." The Exchange's proposal is the result of its desire to prominently place language in the Exchange's Fee Schedule to make transparent that the connectivity services are provided by NASDAQ Technology Services, LLC and to group similar fees together. Such changes will assist with easy identification of items not serviced, and billed, by the Exchange.
Currently, the Exchange assesses fees for direct 10Gb circuit connections, and fees for direct circuit connections capable of supporting up to 1Gb, for customers who are not co-located at the Exchange's datacenter.
Subsequently, the Exchange amended these Direct Connectivity Fees to establish pricing for customers who are not co-located in the Exchange's data center, but require shared cabinet space and power for optional routers, switches, or modems to support their direct circuit connections. The Exchange assesses customers who are not co-located in the Exchange's data center monthly fees for space based on a height unit of approximately two inches high, commonly call a "U" space and a maximum power of 125 Watts per U space.
The Exchange now seeks to relocate the direct connectivity fees, which are provided by NASDAQ Technology Services, LLC, within the Fee Schedule. The Exchange proposes to remove the direct connectivity fees from Section VI of the Exchange's Fee Schedule and relocate the direct connectivity fees in a new section--Section XI--of the Fee Schedule. This administrative change allows the grouping of all services provided by NASDAQ Technology Services, LLC to be in one location for the convenience to the customers.
The Exchange also proposes to add clarifying text to the new Section XI to state that the direct connectivity services are provided by NASDAQ Technology Services, LLC. This change merely codifies the practice of the Exchange.
The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,
The Exchange does not believe that the proposed rule change will impose any burden on competition not
No written comments were either solicited or received.
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(i) of the Act.
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:
* Use the Commission's Internet comment form (
* Send an e-mail to
* Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2011-121. This file number should be included on the subject line if e-mail 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 (