[Federal Register Volume 78, Number 184 (Monday, September 23, 2013)]
[Notices]
[Pages 58352-58354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-23010]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70429; File No. S7-24-89]
Joint Industry Plan; Notice of Filing of Amendment No. 30 to the
Joint Self-Regulatory Organization Plan Governing the Collection,
Consolidation and Dissemination of Quotation and Transaction
Information for Nasdaq-Listed Securities Traded on Exchanges on an
Unlisted Trading Privileges Basis Submitted by the BATS Exchange, Inc.,
BATS Y-Exchange, Inc., Chicago Board Options Exchange, Incorporated,
Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc.,
Financial Industry Regulatory Authority, Inc., International Securities
Exchange LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, Nasdaq Stock
Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC,
NYSE MKT LLC, and NYSE Arca, Inc.
September 17, 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 September 9, 2013, the operating committee (``Operating Committee''
or ``Committee'') \3\ of the Joint Self-Regulatory Organization Plan
Governing the Collection, Consolidation, and Dissemination of Quotation
and Transaction Information for Nasdaq-Listed Securities Traded on
Exchanges on an Unlisted Trading Privilege Basis (``Nasdaq/UTP Plan''
or ``Plan'') filed with the Securities and Exchange Commission
(``Commission'') an amendment to the Plan.\4\ This amendment represents
Amendment No. 30 (``Amendment No. 30'') \5\ to the Plan and proposes to
remove odd-lot transactions from the list of transactions that are not
to be reported for inclusion on the consolidated tape. The Commission
is publishing this notice to solicit comments from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78k-1.
\2\ 17 CFR 242.608.
\3\ The Plan Participants (collectively, ``Participants'') are
the: BATS Exchange, Inc.; BATS Y-Exchange, Inc.; Chicago Board
Options Exchange, Incorporated; Chicago Stock Exchange, Inc.; EDGA
Exchange, Inc.; EDGX Exchange, Inc.; Financial Industry Regulatory
Authority, Inc.; International Securities Exchange LLC; NASDAQ OMX
BX, Inc.; NASDAQ OMX PHLX LLC; Nasdaq Stock Market LLC; National
Stock Exchange, Inc.; New York Stock Exchange LLC; NYSE MKT LLC; and
NYSE Arca, Inc.
\4\ The Plan governs the collection, processing, and
dissemination on a consolidated basis of quotation information and
transaction reports in Eligible Securities for each of its
Participants. This consolidated information informs investors of the
current quotation and recent trade prices of Nasdaq securities. It
enables investors to ascertain from one data source the current
prices in all the markets trading Nasdaq securities. The Plan serves
as the required transaction reporting plan for its Participants,
which is a prerequisite for their trading Eligible Securities. See
Securities Exchange Act Release No. 55647 (April 19, 2007), 72 FR
20891 (April 26, 2007).
\5\ The proposal was originally designated as Amendment No. 31.
See Letter from Thomas P. Knorring, Chairman, Nasdaq/UTP Plan
Operating Committee to Elizabeth M. Murphy, Secretary, Commission,
dated September 9, 2013 (``Transmittal Letter''). On September 17,
2013, the Participants filed a letter to re-designate the proposal
as Amendment No. 30 and to correct a marking error in the Plan
language. See Letter from Thomas P. Knorring, Chairman, Nasdaq/UTP
Plan Operating Committee to Katherine A. England, Assistant
Director, Division of Trading and Markets, Commission, dated
September 17, 2013.
---------------------------------------------------------------------------
I. Rule 608(a)
A. Purpose of the Amendments
Currently, Section XIII(B) (Transaction Reports) of the Nasdaq/UTP
Plan provides that ``Each Participant shall, during the time it is open
for trading, be responsible promptly to collect and transmit to the
Processor Transaction Reports in Eligible Securities executed in its
Market by means prescribed herein.'' However, that section goes on to
say that ``The following types of transactions are not required to be
reported to the Processor pursuant to the Plan.'' That list includes
odd-lot transactions.
Because odd-lot transactions account for a not insignificant
percentage of trading volume, the Participants have determined that
including odd-lot transactions on the consolidated tape of Nasdaq/UTP
Plan last sale prices would add post-trade transparency to the
marketplace.
This amendment proposes to add odd-lot transactions to the
consolidated tape by removing them from Section XIII(B)'s list of
transactions that are not required to be reported for inclusion on the
consolidated tape.
Due to the lack of economic significance of many individual odd-lot
orders, the Participants do not propose to include odd-lot transactions
in calculations of last sale prices. Therefore, odd-lot transactions
would not be included in calculations of high and low prices and would
not be subject to Limit Up/Limit Down rules. Similarly, including odd-
lot transactions on the consolidated tape would not trigger short sale
restrictions or trading halts. However, odd-lot transactions would be
included in calculations of daily consolidated volume.
[[Page 58353]]
For purposes of allocating revenue among the Participants under the
Nasdaq/UTP Plan, the Participants would include odd-lot transactions in
the Security Income Allocation for each Eligible Security under
Paragraph 2 (Security Income Allocation) of Exhibit 1 to the Nasdaq/UTP
Plan. Just as with round lot transactions, an odd-lot transaction with
a dollar value of $5000 or more would constitute one qualified
transaction report and an odd-lot transaction with a dollar value of
less than $5000 would constitute a fraction of a qualified transaction
report that equals the dollar value of the transaction report divided
by $5000. The Participants do not anticipate that this will produce a
significant shift in revenue allocation among the Participants. This
treatment of odd-lot transactions for revenue allocation purposes does
not require a change to the language of Exhibit 1 to the Nasdaq/UTP
Plan.
B. Governing or Constituent Documents
Not applicable.
C. Implementation of Amendment
All of the Participants have manifested their approval of the
proposed amendment by means of their execution of the amendments.
Subject to Commission approval of the Amendment, the Participants
intend to add odd-lot transactions to the consolidated tape under the
Plan commencing October 21, 2013.
D. Development and Implementation Phases
Not applicable.
E. Analysis of Impact on Competition
The proposed amendment does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Exchange Act. This change is being proposed and implemented in
parallel with similar changes to the national market system plan
governing the trading of stocks listed on NYSE, Amex, and other markets
(i.e., the CTA Plan). The Participants do not believe that the proposed
plan amendment introduces terms that are unreasonably discriminatory
for the purposes of Section 11A(c)(1)(D) of the Act.\6\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78k-1(c)(1)(D).
---------------------------------------------------------------------------
F. Written Understanding or Agreements relating to Interpretation of,
or Participation in, Plan
The Participants have no written understandings or agreements
relating to interpretation of the Plan as a result of the amendment.
G. Approval by Sponsors in Accordance with Plan
Each of the Plan's Participants has executed a written amendment to
the Plan.
H. Description of Operation of Facility Contemplated by the Proposed
Amendment
Not applicable.
I. Terms and Conditions of Access
Not applicable.
J. Method of Determination and Imposition, and Amount of, Fees and
Charges
Not applicable.
K. Method and Frequency of Processor Evaluation
Not applicable.
L. Dispute Resolution
Not applicable.
II. Rule 601(a)
A. Equity Securities for which Transaction Reports Shall Be Required by
the Plan
Not applicable.
B. Reporting Requirements
As a result of the amendment, each Participant would be required to
report odd-lot transactions to the Nasdaq/UTP Plan's Processor for
inclusion in the consolidated tape.
C. Manner of Collecting, Processing, Sequencing, Making Available and
Disseminating Last Sale Information
Not applicable.
D. Manner of Consolidation
Odd-lot transactions would not be eligible for inclusion in
calculations of last sale prices and would not be included in
calculations of high and low prices. However, odd-lot transactions
would be included in calculations of daily consolidated volume.
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
The Commission seeks general comments on Amendment No. 30.
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposal is
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 S7-24-89 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 S7-24-89. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies of
the submission, all written statements with respect to the proposed
Plan Amendment that are filed with the Commission, and all written
communications relating to the proposed Plan Amendment 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 3:00 p.m. Copies of
the filing also will be available for Web site viewing and printing at
the Office of the Secretary of the Committee, currently located at the
CBOE, 400 S. LaSalle Street, Chicago, IL 60605. 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 S7-24-89 and should be submitted on or
before October 15, 2013.
[[Page 58354]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(27).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-23010 Filed 9-20-13; 8:45 am]
BILLING CODE 8011-01-P