Notice2026-05474
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Expand the Exchange's Co-Location Services
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 20, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 54 (Friday, March 20, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 54 (Friday, March 20, 2026)]
[Notices]
[Pages 13686-13688]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05474]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105029; File No. SR-PHLX-2026-12]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Expand the
Exchange's Co-Location Services
March 17, 2026.
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 5, 2026, Nasdaq PHLX LLC (``PHLX'' or ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I and II 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 expand its colocation services by
introducing in its future expansion area current options for a cabinet
offering, and certain cabinet power, and additional services, as
described below.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/phlx/rulefilings">https://listingcenter.nasdaq.com/rulebook/phlx/rulefilings</a>,
and at the principal office of the Exchange.
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 expand its colocation services by
introducing in its future expansion area current options for a cabinet
offering, and certain cabinet power, and additional services, as
described below.
The Exchange's data center consists of the original data center
campus (``NY11''), its expansion area (``NY11-4''), as well as a future
expansion area (``NY11-5''). Currently, colocation customers in NY11 as
well as those in expansion area NY11-4 can select from among the
Exchange's colocation offerings, including options for cabinet, cabinet
power, and additional services as provided under Rule General 8,
Section 1. The Exchange proposes to introduce in NY11-5 the same
cabinet option that is currently available in NY11-4.\3\ The Exchange
will file a proposal to establish fees for such cabinet service in
NY11-5.\4\
---------------------------------------------------------------------------
\3\ See proposed Rule General 8, Section 1(a). The Exchange does
not offer customers the option of providing their own traditional
cabinets because cabinet rows throughout the data center are built
to a uniform footprint designed to support standardized cooling,
power distribution, and structural load requirements. See id.
\4\ To effect this change and pending the submission of a fee
filing for the service proposed herein, the Exchange proposes
certain technical, non-substantive amendments to Rule General 8,
Section 1(a) as follows. First, the Exchange proposes to insert, in
the column titled ``NY11-4 Installation Fee'' and immediately
following ``-4,'' a forward slash followed by a hyphen and the
number five (``/-5.''). The Exchange further proposes to insert,
where the row titled ``Cabinet'' intersects the proposed column
titled ``NY11-4/-5 Installation Fee'' and immediately following the
figure ``$5,490,'' a forward slash and the acronym ``TBD'' as
follows: ``/TBD.'' The Exchange believes these non-substantive
changes are appropriate to introduce the proposed cabinet service in
NY11-5 as well as to indicate that the fees for that service have
yet to be determined.
---------------------------------------------------------------------------
NY11-5: Cabinet Power and Power Distribution Units
Rule General 8, Section 1(c) provides that the following cabinet
power options are available only in NY11: 2x20 amp 110 volt, 2x30 amp
110 volt, 2x20 amp 208 volt, 2x30 amp 208 volt, 2x60 amp 208 volt,
Phase 3 2x 20 amp 208 volt, Phase 3 2x 30 amp 208 volt, Phase 3 2x 40
amp 208 volt, Phase 3 2x 50 amp 208 volt, Phase 3 2x 60 amp 208 volt,
and 2x30 amp 48 volt DC.\5\ Rule General 8, Section 1(c) further
provides that the following (five) cabinet power options are available
only in NY11-4: Phase 1 20 amp 240 volt, Phase 1 32 amp 240 volt, Phase
1 40 amp 240 volt, Phase 3 20 amp 415 volt, and Phase 3 32 amp 415
volt.\6\ The Exchange proposes to make these same five cabinet power
options available in NY11-5. Specifically, the Exchange proposes to
make the following cabinet power options available in NY11-5: Phase 1
20 amp 240 volt, Phase 1 32 amp 240 volt, Phase 1 40 amp 240 volt,
Phase 3 20 amp 415 volt, and Phase 3 32 amp 415 volt.\7\ The Exchange
will file a proposal to establish fees for the proposed cabinet power
options for NY11-5. Although different cabinet power options will be
offered throughout the data center due to differing power
configurations, the cabinet power options being introduced in NY11-5
are not inherently preferable to the existing cabinet power options
because data center customers have varying power-related preferences
depending on their capacity needs, and the Exchange does not anticipate
material differences in equipment performance based on the power
distribution. As between the various cabinet power options,
[[Page 13687]]
customers choose power based on their preference and capacity needs.
---------------------------------------------------------------------------
\5\ See Rule General 8, Section 1(c). As discussed above, these
cabinet power options are available in NY11 only. See id.
\6\ See Rule General 8, Section 1(c).
\7\ See proposed Rule General 8, Section 1(c). To effect these
changes, the Exchange proposes certain technical changes to Rule
General 8, Section 1(c) as follows. The Exchange proposes to insert,
in the columns titled ``NY11-4 Installation Fee'' (immediately after
``NY11-4'') and ``NY11-4 Ongoing Monthly Fee ($550 per kVA)'' (also
immediately after ``NY11-4'') the following: ``/-5.'' The Exchange
further proposes a conforming change to the footnote designated with
a single asterisk (*). That footnote currently provides in part as
follows: ``*NY11-4 only.'' As a conforming change to that footnote,
the Exchange proposes to add, immediately after ``NY11-4'' and
before the word ``only'' the following: ``and NY11-5.'' This change
is appropriate to indicate these power options are available only in
NY11-4 and, as proposed, NY11-5. That footnote further provides that
one of the options designated with a single asterisk must be
selected for Cabinets in NY11-4. The Exchange proposes to amend that
footnote to add, immediately after ``NY11-4'' the following: ``and
NY11-5.'' This change is appropriate to make clear that one of the
power options designated with a single asterisk must be selected for
Cabinets in NY11-4 and NY11-5. Finally, the Exchange further
proposes to enter ``/TBD'' throughout Rule General 8, Section 1(c)
as appropriate to indicate that installation fees as well as ongoing
(per kVA) monthly fees for the various power circuit options being
introduced into NY11-5 under this proposal have yet to be
determined. The Exchange believes these conforming changes are
appropriate to indicate that the products proposed herein are
designated for NY11-5 and that their respective fees have yet to be
established.
---------------------------------------------------------------------------
The Exchange also proposes to make certain power distribution units
(``PDUs'') \8\ available in NY11-5. The Exchange currently offers the
following standardized PDUs exclusively in NY11-4 as a convenience to
customers: Phase 1, Phase 3,\9\ as well as a switch monitored PDU add
on (``Switch Monitored PDU Add On''), the latter which allows customers
to connect remotely to their PDU and control the power sockets.\10\ The
Exchange proposes to offer the three aforementioned PDU options
currently available only in NY11-4, specifically Phase 1, Phase 3, as
well as the Switch Monitored PDU Add On, in NY11-5.\11\ All offered PDU
options are optional, and customers may choose to provide their own
PDU, as appropriate for their power choices. As with all other proposed
services, the Exchange will file a proposal to establish fees for such
PDU options in NY11-5.
---------------------------------------------------------------------------
\8\ PDUs are devices fitted with multiple outputs designed to
distribute electric power.
\9\ See Rule General 8, Section 1(d). Phase 1 PDUs are
compatible with the following power options: Phase 1 20 amp 240
volt, Phase 1 32 amp 240 volt, and Phase 1 40 amp 240 volt. Phase 3
PDUs are compatible with the following power options: Phase 3 20 amp
415 volt and Phase 3 32 amp 415 volt. Phase 1 and Phase 3 are
available in NY11 and NY11-4. Phase 3 PDUs provide greater power
density than Phase 1 PDUs by delivering power over three wires as
opposed to one wire.
\10\ See Rule General 8, Section, 1(d).
\11\ See proposed Rule General 8, Section 1(d). To effect this
change, the Exchange proposes the following technical changes to
Rule General 8, Section 1(d) (``Additional Charges/Services''). The
Exchange proposes to amend the footnote designated with a single
asterisk as follows. First, the Exchanges proposes to insert,
immediately after ``NY11-4 and before ``only'' the following: ``and
NY11-5.'' Thus, as proposed, the footnote would read ``*NY11-4 and
NY11-5 only.'' The Exchange further proposes to amend that footnote
to insert, immediately after ``*NY11-4 and NY11-5 only'' the
following two sentences: ``Fees shown are for NY11-4 only. Fees for
NY11-5 have yet to be established.'' The Exchange believes these
changes are appropriate to (1) indicate that the proposed products
are being introduced into NY11-5, and (2) indicate that the proposed
fees for such products in NY11-5 have yet to be determined.
---------------------------------------------------------------------------
Implementation
Although the timing is subject to change, the Exchange anticipates
opening NY11-5 Exchange access during the first quarter of 2026. In
concert with this filing, the Exchange will allow customers to place
orders for all services proposed herein. Customers would not be fee
liable for the services proposed for NY11-5 herein until such customers
are granted access to their NY11-5 spaces for their immediate use,
whether for trading or otherwise. Allowing customers to place orders in
advance of opening its doors in NY11-5 will allow the Exchange to plan
ahead for capacity and demand for services, as well as procure
necessary equipment. As discussed above, the Exchange will file a
proposal to establish fees for all services described in this proposed
rule change.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\12\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\13\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest. Today, the Exchange offers various cabinet, power, and
additional service options throughout the data center for colocation
customers. Due to varying power configurations, certain services are
available only in NY11-4. The proposal would make these same service
options available in NY11-5. Specifically, the proposal would introduce
in NY11-5 a cabinet option, as well as options for power, power
installation and additional products and services currently available
in NY11-4.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposal would remove impediments to
and perfect the mechanism of a free and open market and a national
market system, and, in general protect investors and the public
interest because it would extend to NY11-5 certain connectivity
services and products currently available in NY11-4, including a
cabinet offering, several options for power and additional products and
services, such as power cords and PDUs. The proposal provides customers
with greater optionality with respect to offered colocation services,
thereby enhancing their ability to tailor their colocation operations
to the requirements of their business needs. Providing consistent
offerings across NY11-4 and NY11-5 thus enhances customer choice and
allows the Exchange to better meet demand for colocation services. In
general, the proposal is consistent with the Act because in lieu of
collocating directly with the Exchange, market participants may choose
not to collocate at all or to collocate indirectly through a vendor.
The Exchange also believes that the proposal will not be unfairly
discriminatory, consistent with the objectives of Section 6(b)(5) of
the Act \14\ because the proposed services for NY11-5, including the
expanded cabinet, cabinet power, power installation, and additional
service options, would be offered equally to all customers. Although
the proposed optionality for NY11-5 would only be offered in NY11-4 and
NY11-5 due to differing power configurations throughout the data
center, any customer may order such proposed cabinets and additional
colocation services on the same terms as any other customer. Use of all
colocation services remains entirely voluntary.
---------------------------------------------------------------------------
\14\ Id.
---------------------------------------------------------------------------
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 Exchange notes that this
proposal does not concern itself with the speed at which customers can
trade or the Equalization Project \15\ because its scope is limited to
offering certain data center customer colocation services in NY11-5
that are currently available in NY11-4 and does not extend to data
communications networks.\16\
---------------------------------------------------------------------------
\15\ The Equalization Project is an Exchange initiative to
equalize cross connects across the Exchange's entire data center
campus. See Securities Exchange Act Release No. 34-101078 (Sep. 18,
2024), 89 FR 77937 (Sept. 24, 2024) (SR-NASDAQ-2024-054).
\16\ See supra note 15 and accompanying text.
---------------------------------------------------------------------------
Nothing in the proposal imposes any burden on the ability of other
exchanges to compete. The Exchange operates in a highly competitive
market in which exchanges and other vendors offer colocation services
as a means to facilitate the trading and other market activities of
those market participants who believe that colocation enhances the
efficiency of their operations. As part of its colocation offerings,
the Exchange currently offers similar cabinet and power options as do
other exchanges.
Nothing in the proposal burdens intra-market competition because
the Exchange's colocation services, including those proposed herein for
NY11-5 are available to any customer, and customers that wish to order
the proposed services, including additional options for cabinet,
cabinet power, and additional services can do so on a non-
discriminatory basis. Use of any colocation service is completely
voluntary, and each market participant is able to determine whether to
use colocation services based on the requirements of its business
operations.
[[Page 13688]]
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)(iii) \17\ of the Act and Rule 19b-4(f)(6) thereunder \18\
in that it effects a change that: (i) does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78s(b)(3)(A)(iii).
\18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of its
intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\20\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest because it will allow
the Exchange to allow users seeking to subscribe to colocation services
in NY11-5 to do so without delay, and the proposed rule change does not
introduce any novel regulatory issues as the proposed services are the
same as those currently available in NY11-4. Accordingly, the
Commission designates the proposed rule change to be operative upon
filing.\21\
---------------------------------------------------------------------------
\19\ 17 CFR 240.19b-4(f)(6).
\20\ 17 CFR 240.19b-4(f)(6)(iii).
\21\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#780a0d141d551b1715151d160c0b380b1d1b561f170e"><span class="__cf_email__" data-cfemail="1f6d6a737a327c7072727a716b6c5f6c7a7c31787069">[email protected]</span></a>. Please include
file number SR-PHLX-2026-12 on the subject line.
Paper Comments
<bullet> 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-2026-12. 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 website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to file number SR-PHLX-2026-12 and should be submitted on
or before April 10, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
---------------------------------------------------------------------------
\22\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-05474 Filed 3-19-26; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on March 20, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.