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Federal Register / Vol. 86, No. 35 / Wednesday, February 24, 2021 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES

In addition, Users have had an unprecedented demand for power, largely driven by the demands caused by volatile market conditions related to the COVID19 pandemic and higher than usual trading volumes. The Exchange is currently working to expand the amount of power and number of cabinets available in colocation. To complement the procedures for allocation of colocation cabinets, the Exchange believes it would be prudent to have procedures in place for the allocation of power, should such allocation be necessary. The Exchange accordingly proposes to expand the Existing Procedures to incorporate procedures for the allocation of power Proposed Procedures.
Background Users currently have two options for purchasing power. First, a User may purchase a new dedicated or partial cabinet, which comes with power. The User pays an initial fee and a monthly fee based on the number of kilowatts kW contracted for the cabinet. The dedicated cabinets have a standard power allocation of either 4 kW or 8 kW
the Standard Cabinet Power. Partial cabinets are available in increments of eight-rack units of space, and each eight-rack unit may be allocated 1 or 2
kW. The Exchange allocates cabinets on a first-come/first-serve basis.
Second, a User may request power upgrades to dedicated cabinets in addition to the Standard Cabinet Power.7 Users may request that such additional power Additional Power be allocated to a cabinet when it is first set up or later. A User with a dedicated cabinet, for example, may develop its infrastructure in a manner that allows it to expand the hardware within that cabinet by adding Additional Power.
Because it could add Additional Power to its existing cabinet, the User would not need an additional cabinet. Adding Additional Power may entail overhauling wiring, circuitry and hardware for the dedicated cabinet so that it can handle the increased power.8
The Exchange also offers cabinets that do not have power: Cabinets for which power is not utilized PNU cabinets.
PNU cabinets are reserved cabinet space that are not active, and that can be converted to a powered, dedicated cabinet when the User requests it.9
Although PNU cabinets do not use 7 See Securities Exchange Act Release No. 71122
December 18, 2013, 78 FR 77739 December 24, 2013 SRNYSE201381.
8 See Id. at 77740.
9 See Securities Exchange Act Release No. 70913
November 21, 2013, 78 FR 70987 November 27, 2013 SRNYSE201374.

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power, when the Exchange establishes a PNU cabinet, it allocates unused power capacity to it, depending on the Users requirements. The allocated power is kept in reserve for the PNU cabinet, and, upon the Users request, the PNU
cabinet may be powered and used promptly.
If additional power or cabinets are needed, the Exchange may use established measures to convert PNU
cabinets:
if reserved cabinet space becomes needed for use, the reserving User will have 30
business days to formally contract with the Exchange for full payment for the reserved cabinet space needed or the space will be reassigned.10

The Exchange proposes to provide additional detail regarding the conversion of PNU cabinets in the Proposed Procedures.
Proposed Procedures Like the Existing Procedures, the Proposed Procedures would be set forth in General Notes 7 and 8. General Note 7 would be amended to provide that, if the amount of power or cabinets available fell below specified thresholds, Users would be subject to purchasing limits. General Note 7 would also specify when the purchasing limits would cease to apply. Consistent with the Existing Procedures, the amended General Note 7 would provide that if a User requests a number of Standard Cabinets and/or amount of Additional Power that would cause the unallocated power capacity to be below the specified power and cabinet thresholds, the purchasing limits would apply only to the portion of the Users order below the relevant threshold.11
The Exchange proposes that, if either the Cabinet Threshold or the Power Threshold, or if both the Cabinet Threshold and Power Threshold are reached, all Users with PNU cabinets would be required to either convert or relinquish them, consistent with the 10 Securities Exchange Act Release No. 62732
August 16, 2010, 75 FR 51512 August 20, 2010
SRNYSE201056, at note 5. Reserved cabinet space is a PNU cabinet. See 78 FR 70987, 70987
70988, supra note 9.
11 For example, if there was 365 kW unallocated power capacity in co-location and a User requested to purchase cabinets and Additional Power that would, together, total 55 kW, the purchasing limits in General Note 7 would not apply to the Users purchase of the first 15 kW, whether those kW were in the form of cabinets or Additional Power. Once the power threshold was reached, the combined limits would be activated, limiting the Users purchase of additional cabinets and Additional Power. In all, the User would be permitted to purchase a total of 47 kW out of its original order of 55 kW. The User could choose whether the 47
kW was in the form of cabinets, Additional Power, or both.

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applicable provisions. Doing so would allow all cabinets and power to be available for active use. As a result, no User would be subject to limitations on its ability to purchase and use cabinets or power at the same time that PNU
cabinets were dormant.
General Note 8 would be amended to provide that, if the amount of power or cabinets available fell to zero, Users seeking to purchase power or cabinets would be put on a waitlist. The waitlist provisions for power would be substantially similar to those for cabinets in the Existing Procedures.12 In both General Notes 7 and 8, the Proposed Procedures would also state how the Existing Procedures regarding cabinets and the new procedures regarding power would relate to each other. In each case, the Proposed Procedures would state what the threshold amount of power and cabinets would be to discontinue the limits, which would allow the Exchange to return to offering PNU cabinets. Finally, in clarifying changes, the existing text of General Notes 7 and 8 would be amended to change Purchasing Limits to Cabinet Limits and waitlist to Cabinet Waitlist and to delete redundant text.
Proposed Amendments to General Note 7
The Exchange proposes to amend General Note 7 as follows additions italicized, deletions in brackets:
7. Cabinet and Power Purchasing Limits. If i unallocated cabinet inventory is at or below 40 cabinets, whether or not such cabinets are configured to be subdivided into partial cabinets Cabinet Threshold, or ii the unallocated power capacity in colocation is at or below 350 kW the Power Threshold, the following limits on the purchase of new cabinets Purchasing Limits will apply:
a. Cabinet Limits. If only the Cabinet Threshold is reached, the following measures the Cabinet Limits will apply:
All Users with PNU cabinets will be required to either convert itstheir PNU
cabinets into dedicated cabinets or relinquish itstheir PNU cabinets before being permitted to purchase new cabinets. The Exchange will notify each User with a PNU
cabinet that the User has 30 business days to decide whether to contract to convert the PNU cabinet to a dedicated cabinet. If the User does not contract to use the PNU
12 Consistent with the Existing Procedures, the Proposed Procedures would provide that, as additional power and cabinets became available, the Exchange would offer it to the User at the top of the combined waitlist. Power may become available if, for example, a a User vacates a dedicated or partial cabinet or relinquishes Additional Power or b IDS builds additional capacity. Cabinets may become available if, for example, a User vacates a dedicated or partial cabinet.

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