8011-01P
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100440; File No. SR-NASDAQ-2024-026[
Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change to Expand its Co-Location Services
June 27, 2024.
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 June 14, 2024, 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.
I.

Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed
Rule Change
The Exchange proposes to expand its co-location services. The text of the proposed rule

change is available on the Exchange’s Website at
https://listingcenter.nasdaq.com/rulebook/nasdaq/rules, 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.

15 U.S.C. 78s(b)(1).

17 CFR 240.19b-4.

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 co-location services by offering new cabinet,
power, and power distribution unit options in the Exchange’s expanded data center.
The Exchange’s current data center (“NY11”) in Carteret, NJ is undergoing an expansion
(“NY11-4”) in response to demand for power and cabinets. NY11-4 is not a new or distinct colocation facility. Instead, NY11-4 is simply an expansion of the existing Nasdaq NY11 data
center,3 and Nasdaq intends to operate it generally in the same manner as existing aspects of
NY11.4 Client connections to the matching engine will be equal across the board, within and
among NY11 and NY11-4. In 2010, the Exchange undertook a similar expansion to its data
center, where connectivity to the Exchange remained equalized, as is the case with the NY11-4
expansion.
The Exchange submits this filing to propose offering new services in NY11-4, as
described below, and to the extent the Exchange offers additional new services, whether in the
existing NY11 data halls or in the new NY11-4 data hall, the Exchange will submit additional
filings with the Commission.
NY11-4 Expanded Cabinet Optionality: Ultra High Density Cabinet
Currently, co-location customers have the option of obtaining cabinets of various sizes
and power densities. Co-location customers may obtain a Half Cabinet,5 a Low Density Cabinet

NY11-4 is not a standalone facility. Equinix considers the site as NY11 with three expansions: NY11-2,
NY11-3, and NY11-4.

One aspect of the data center that will be treated differently in NY11-4 as compared to NY11 at its outset is
telecommunications access and inter-client connectivity. In NY11-4, connections between colocated client
cabinets and the carrier cage will be of equal length. Inter-client connectivity will also be equalized in
NY11-4. The Exchange believes that equalizing telecommunications access and inter-client connectivity in
NY11-4 will provide a fair solution and avoid market disruption by avoiding both a race for real estate
adjacent to NY11-4 and for particular space in NY11-4. The Exchange believes that these actions would
facilitate a fair and orderly market and protect investors and the public interest, consistent with its
obligations under the Act.

Half cabinets are not available to new subscribers. See General 8, Section 1(a).

with power density less than or equal to 2.88 kilowatts (“kW”), a Medium Density Cabinet with
power density greater than 2.88 kW and less than or equal to 5 kW, a Medium-High Density
Cabinet with power density greater than 5 kW and less than or equal to 7 kW, a High Density
Cabinet with power density greater than 7 kW and less than 10 kW, and a Super High Density
Cabinet with power density greater than 10 kW and less than or equal to 17.3 kW.
The Exchange proposes to introduce a new cabinet choice in NY11-4, an “Ultra High
Density Cabinet,” with power density greater than 10 kW and less than or equal to 15 kW.
Based on demand, the Exchange wishes to introduce the Ultra High Density Cabinet as an option
for customers between the High Density Cabinet and the Super High Density Cabinet. The Ultra
High Density Cabinet option would only be offered in NY11-4 because of the power
configuration necessary for such cabinets, which is not possible or available in other portions of
the data center due to different power distribution. Because of the addition of the Ultra High
Density Cabinet option in NY11-4, the Super High Density Cabinet in NY11-4 would have
power density greater than 15 kW and less than or equal to 17.3 kW.
In addition to the Ultra High Density Cabinet, the Exchange would offer the other,
existing cabinet options in NY11-4, with the exception of the Low Density Cabinet and Half
Cabinet due to a lack of demand for such cabinets. The cabinets in NY11-4 will include certain
features, including but not limited to: uniform, wider cabinets6 (32” W x 48” D x 91” H), cable
management, and a rear split door and combo lock.
NY-11 4 Cabinet Power and Power Distribution Units
The Exchange currently provides various cabinet power options, including: 2x20 amp
110 volt, 2x30 amp 110 volt, 2x20 amp 208 volt, 2x30 amp 208 volt, Phase 3 2x 20 amp 208
volt, Phase 3 2x 30 amp 208 volt, 2x60 amp 208 volt, Phase 3 2x 40 amp 208 volt, Phase 3 2x 50

In the existing data halls, clients may bring their own cabinets or use Exchange-provided cabinets. Because
of the cooling system in NY11-4 (hot aisle containment), all cabinets must be uniform and therefore, the
Exchange will provide all cabinets. The existing data halls utilize cold aisle containment to manage
temperatures. Hot aisle containment is a more effective way to manage heat in the data center.

amp 208 volt, Phase 3 2x 60 amp 208 volt, and 2x30 amp 48 volt DC. For NY11-4, the data
center operator is bringing in higher voltage power options, which are more consistent with
power options used in other data centers across the globe. The Exchange proposes to amend
General 8, Section 1(c) to add the cabinet power options for NY11-4, which include: 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. The Exchange also proposes to specify in its Rules that these cabinet
power options are specific to NY11-4 and that one of these options must be selected for cabinets
in NY11-4. Although different cabinet power options will be offered in NY11 and NY11-4 due
to differing power configurations, the new cabinet power options are not inherently preferable to
the existing cabinet power options and the Exchange does not anticipate material differences in
equipment performance based on the power distribution. Due to higher voltage options being
offered in NY11-4, the data center operator is likely to experience increased power distribution
efficiencies across the data center. As between the various cabinet power options, customers
choose power based on their preference and capacity needs.
The Exchange also proposes to offer power distribution units (“PDUs”)7 in NY11-4 as a
convenience to customers. Rather than sourcing PDUs on a customer-by-customer basis, as the
Exchange does for customers in NY11, the Exchange wishes to simplify and standardize its PDU
offering in NY11-4 by offering Phase 1 and Phase 38 power distribution units. This service is
optional and customers may choose to provide their own PDUs appropriate for their power
installation choices. The Exchange also proposes to offer a switch monitored PDU add on in
NY11-4, which would allow customers to connect remotely to their PDU and control the power
sockets. With the switch monitored PDU option, customers would be able to power cycle or shut

PDUs are devices fitted with multiple outputs designed to distribute electric power. The standardized
PDUs would only be offered for NY11-4.

Phase 1 PDUs would be 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 would be 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.

off power remotely. This option is optional as well and customers may choose to provide their
own switch monitored PDU, if desired.
Implementation
Although the timing is subject to change,9 the Exchange anticipates opening NY11-4
Exchange access on October 21, 2024 and providing customers access to the space on August 1,
2024. In concert with this filing, the Exchange will allow customers to place orders for NY11-4,
which would not be fee liable until customers are provided access to the space.10 The Exchange
will submit a fee filing to establish fees for the services described herein. Allowing customers to
place orders in advance of opening its doors will allow the Exchange to plan ahead for capacity
and demand for services, as well as procure necessary equipment.
2.

Statutory Basis

The Exchange believes that its proposal is consistent with Section 6(b) of the Act,11 in
general, and furthers the objectives of Section 6(b)(5) of the Act,12 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 choices and power
options in the data center for colocation customers. The proposal would expand the cabinet and
power options available, by introducing an additional cabinet option, the Ultra High Density
Cabinet, and new power choices. The proposal would benefit the public interest by providing
customers more cabinet and power options to choose from, thereby enhancing their ability to
tailor their colocation operations to the requirements of their business operations. In general, the

The Exchange will announce modifications to the proposed timing via the Nasdaq Customer Portal, which
is the web portal used for order and inventory management of colocation services, and email
communication to all colocation customers.

Charging customers once access is provided is consistent with current practice and allows customers to set
up equipment and begin using power.

15 U.S.C. 78f(b).

15 U.S.C. 78f(b)(5).

proposal is consistent with the Act because the Exchange’s expansion of the data center and
expansion of available power and cabinets will enable the Exchange to meet customer needs and
address demand for both cabinets and power. 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 Act13 because the expanded cabinet and
power options in the data center would be offered equally to all customers. Although certain
optionality is only offered in NY11-4 because of different power configurations in NY11-4 as
compared to NY11, NY11-4 is merely an expansion of the data center, and any customer may
order cabinets and power in NY11-4 (and across the data center broadly) on the same terms as
any other customer.
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.
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 offering, the Exchange currently offers similar cabinets and power, as do
other exchanges.
Nothing in the Proposal burdens intra-market competition because the Exchange’s
colocation services, including those proposed herein, are available to any customer and
customers that wish to order cabinets and power 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.
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
Because the foregoing proposed rule change does not: (i) significantly affect the

protection of investors or the public interest; (ii) impose any significant burden on competition;
and (iii) become operative for 30 days from the date on which it was filed, or such shorter time
as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of
the Act14 and subparagraph (f)(6) of Rule 19b-4 thereunder.15
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:
•

Use the Commission’s internet comment form
(https://www.sec.gov/rules/sro.shtml); or

•

Send an email to rule-comments@sec.gov. Please include file number

15 U.S.C. 78s(b)(3)(A)(iii).

17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the
Commission written notice of its intent to file 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.

SR-NASDAQ-2024-026 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-2024-026. 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 (https://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 website 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 a.m. and 3
p.m. Copies of the filing also 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-NASDAQ-2024-026 and should be
submitted on or before [INSERT DATE 21 DAYS AFTER DATE OF PUBLICATION IN THE
FEDERAL REGISTER].
For the Commission, by the Division of Trading and Markets, pursuant to delegated
authority.16

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

J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-14594 Filed: 7/2/2024 8:45 am; Publication Date: 7/3/2024]