Federal Register #Release No. 34-105108

SEC Regulatory Order and Nasdaq MRX, LLC Colocation Fee Announcement

This summary covers recent SEC regulatory actions and related market infrastructure updates: - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors Mentioned: - Nasdaq MRX, LLC (data center and colocation services) - NYSE (market data services) - Products and Services Requested/Discussed: - Cabinet offering installation in the NY115 expansion area at the Carteret, NJ data center - $5,940 installation fee for cabinet offering - Power circuit options for NY115 expansion area - $3,600 installation fee for Phase 1 - $4,560 installation fee for Phase 3 - Ongoing monthly fees matching NY114 area - NYSE Arca BBO Digital Media Enterprise subscription for market data licensing - Unique or Notable Requirements: - SEC order permits broker-dealers to pledge diversified baskets of Russell 1000 and/or S&P 500 equity securities as collateral when borrowing customer securities - Collateral must meet diversification and concentration standards, with overcollateralization for certain currencies and daily marking to market - Market data licensing and colocation services are highlighted as part of market infrastructure improvements - No specific procurement of goods or services by the SEC; the notice is regulatory in nature, but includes fee schedules for Nasdaq MRX, LLC colocation services and NYSE market data subscriptions - Place of Performance/Delivery: - Carteret, NJ (Nasdaq MRX, LLC data center) - SEC and Federal Register Office (regulatory offices)

Description

The Securities and Exchange Commission issued an order permitting broker-dealers that borrow fully-paid or excess margin equity securities from qualified institutional lenders to pledge a basket of Russell 1000 and/or S&P 500 equity securities as collateral. This order outlines the eligibility criteria for lenders and collateral, conditions for pledging such collateral, and requirements for maintaining collateralization levels. The designation aims to add liquidity to securities lending markets and reduce operational risks while ensuring investor protection.

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