[Federal Register Volume 78, Number 70 (Thursday, April 11, 2013)]
[Notices]
[Pages 21648-21650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-08466]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69318; File No. SR-CTA/CQ-2013-02]
Consolidated Tape Association; Notice of Filing and Immediate
Effectiveness of the Seventeenth Charges Amendment to the Second
Restatement of the CTA Plan and Ninth Charges Amendment to the Restated
CQ Plan
April 5, 2013.
Pursuant to Section 11A of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 608 thereunder,\2\ notice is hereby given that
on March 27, 2013, the Consolidated Tape Association (``CTA'') Plan and
Consolidated Quotation (``CQ'') Plan participants (``Participants'')
\3\ filed with the Securities and Exchange Commission (``Commission'')
a proposal to amend the Second Restatement of the CTA Plan and Restated
CQ Plan (collectively, the ``Plans'').\4\ The proposal represents the
seventeenth charges amendment to the CTA Plan and the ninth charges
amendment to the CQ Plan (``Amendments'') and delays the effective date
for the change to the Network B interrogation device fee payable in
respect of professional subscribers.\5\
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\1\ 15 U.S.C. 78k-1.
\2\ 17 CFR 242.608.
\3\ The Participants are: BATS Exchange, Inc., BATS-Y Exchange,
Inc., Chicago Board Options Exchange, Incorporated, Chicago Stock
Exchange, Inc., EDGA Exchange, Inc. (``EDGA''), EDGX Exchange, Inc.
(``EDGX''), Financial Industry Regulatory Authority, Inc.
(``FINRA''), International Securities Exchange, LLC, NASDAQ OMX BX,
Inc. (``Nasdaq BX''), NASDAQ OMX PHLX, Inc. (``Nasdaq PSX''), Nasdaq
Stock Market LLC, National Stock Exchange, New York Stock Exchange
LLC (``NYSE''), NYSE MKT LLC (formerly NYSE Amex, Inc.), and NYSE
Arca, Inc. (``NYSE Arca''). Because the proposal constitutes a
Ministerial Amendment under both clause (1) of Section IV(b) of the
CTA Plan and clause (1) of Section IV(c) of the CQ Plan, the
Chairman of CTA and the CQ Plan's Operating Committee may submit the
proposal on behalf of the Participants.
\4\ See Securities Exchange Act Release Nos. 10787 (May 10,
1974), 39 FR 17799 (May 20, 1974) (declaring the CTA Plan
effective); 15009 (July 28, 1978), 43 FR 34851 (August 7, 1978)
(temporarily authorizing the CQ Plan); and 16518 (January 22, 1980),
45 FR 6521 (January 28, 1980) (permanently authorizing the CQ Plan).
The most recent restatement of both Plans was in 1995. The CTA Plan,
pursuant to which markets collect and disseminate last sale price
information for non-NASDAQ listed securities, is a ``transaction
reporting plan'' under Rule 601 under the Act, 17 CFR 242.601, and a
``national market system plan'' under Rule 608 under the Act, 17 CFR
242.608. The CQ Plan, pursuant to which markets collect and
disseminate bid/ask quotation information for listed securities, is
a ``national market system plan'' under Rule 608 under the Act, 17
CFR 242.608.
\5\ See Securities Exchange Act Release No. 69157 (March 18,
2013), 78 FR 17946 (March 25, 2013).
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Pursuant to Rule 608(b)(3)(ii) under the Act,\6\ the Participants
designated the Amendments as concerned solely with the administration
of the Plans. As a result, the Amendments are effective upon filing
with the Commission. At any time within 60 days of the filing of the
Amendments, the Commission may summarily abrogate the Amendments and
require that the Amendments be refiled in accordance with paragraph
(a)(1) of Rule 608 and reviewed in accordance with paragraph (b)(2) of
Rule 608, if it appears to the Commission that such action is necessary
or appropriate in the public interest, for the protection of investors,
or the maintenance of fair and orderly markets, to remove impediments
to, and perfect the mechanisms of, a national market system or
otherwise in furtherance of the purposes of the Act. The Commission is
publishing this notice to solicit comments from interested persons on
the proposed Amendments.
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\6\ 17 CFR 242.608(b)(3)(ii).
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[[Page 21649]]
I. Rule 608(a)
A. Description and Purpose of the Amendments
On March 11, 2013, the Participants filed for immediate
effectiveness the Sixteenth Charges Amendment to the Second Restatement
of the CTA Plan and the Eighth Charges Amendment to the Restated CQ
Plan.\7\ These two amendments (``Fee Change Amendments'') made a number
of changes to the fees payable under the Plans in an effort to achieve
greater simplicity and to reduce administrative burdens. Among those
fee changes, the Fee Change Amendments combined separate monthly device
fees that professional subscribers pay for Network B last sale
information under the CTA Plan and for Network B quotation information
under the CQ Plan into one monthly fee of $24.00 per device for both
last sale information and quotation information.
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\7\ See supra note 5.
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The Fee Change Amendments stated that the Participants anticipated
implementing the proposed fee changes in 2013, without specifying a
date. In the notice that the Participants sent to the industry, they
specified April 1, 2013, as the date the Fee Change Amendments would be
implemented.\8\
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\8\ See email from Steve Abrams, Counsel to the CTA, to Kathy
England and Natasha Cowen, Securities and Exchange Commission, April
3, 2013 (clarifying implementation dates applicable to the Fee
Change Amendments).
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Subsequently, due to the technical needs of data recipients to make
systems changes to accommodate the revised fee, the Participants
decided to extend the effective date for implementation of the combined
Network B $24.00 device fee to July 1, 2013, and therefore submitted
the Amendments. The effective date for the changes to the Network A
device fees and the other changes set forth in the Fee Change
Amendments remains April 1, 2013. The Amendments do not change the
language of the CTA Plan or of its fee schedule.
B. Additional Information Required by Rule 608(a)
1. Governing or Constituent Documents
Not applicable.
2. Implementation of the Amendments
Because the Amendments constitute ``Ministerial Amendments'' under
clause (1) of Section IV(b) of the CTA Plan and clause (1) of Section
IV(c) of the CQ Plan, the Chairman of CTA and the CQ Plan's Operating
Committee may submit the Amendments to the Commission on behalf of the
Participants in the CTA Plan and the CQ Plan. Because the Participants
designate the Amendments as concerned solely with the administration of
the Plans, the Amendments are effective upon filing with the
Commission.
3. Development and Implementation Phases
See Item I(B)(2) above.
4. Analysis of Impact on Competition
The proposed amendments do not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. The Participants do not believe that the Amendments introduce
terms that are unreasonably discriminatory for the purposes of Section
11A(c)(1)(D) of the Act.
5. Written Understanding or Agreements Relating to Interpretation of,
or Participation in, Plan
Not applicable.
6. Approval by Sponsors in Accordance With Plan
See Item I(B)(2) above.
7. Description of Operation of Facility Contemplated by the Proposed
Amendments
a. Terms and Conditions of Access
See Item I(A) above.
b. Method of Determination and Imposition, and Amount of, Fees and
Charges
See Item I(A) above.
c. Method of Frequency of Processor Evaluation
Not applicable.
d. Dispute Resolution
Not applicable.
II. Rule 601(a) (Solely in Its Application to the Amendments to the CTA
Plan)
A. Equity Securities for Which Transaction Reports Shall Be Required by
the Plan
Not applicable.
B. Reporting Requirements
Not applicable.
C. Manner of Collecting, Processing, Sequencing, Making Available and
Disseminating Last Sale Information
Not applicable.
D. Manner of Consolidation
Not applicable.
E. Standards and Methods Ensuring Promptness, Accuracy and Completeness
of Transaction Reports
Not applicable.
F. Rules and Procedures Addressed to Fraudulent or Manipulative
Dissemination
Not applicable.
G. Terms of Access to Transaction Reports
Not applicable.
H. Identification of Marketplace of Execution
Not applicable.
III. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed
Amendments to the CTA Plan are consistent with the Act. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CTA/CQ-2013-02 on the subject line.
Paper Comments
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-CTA/CQ-2013-02. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the Amendments that are filed with
the Commission, and all written communications relating to the
Amendments 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 Web site 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 10:00 a.m. and
[[Page 21650]]
3:00 p.m. Copies of the Amendments also will be available for
inspection and copying at the principal office of the CTA.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-CTA/CQ-2013-02
and should be submitted on or before May 2, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(27).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-08466 Filed 4-10-13; 8:45 am]
BILLING CODE 8011-01-P