[Federal Register Volume 79, Number 190 (Wednesday, October 1, 2014)]
[Notices]
[Pages 59337-59338]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-23311]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73214; File No. SR-CTA-2014-01]
Consolidated Tape Association; Notice of Filing and Immediate
Effectiveness of the Quote Meter Audit Late Fee Twentieth Charges
Amendment to the Second Restatement of the Consolidated Tape
Association Plan
September 25, 2014.
Pursuant to Section 11A of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 608 thereunder,\2\ notice is hereby given that
on August 8, 2014, the Consolidated Tape Association (``CTA'') Plan and
participants (``Participants'') \3\ filed with the Securities and
Exchange Commission (``Commission'') a proposal to amend the Second
Restatement of the CTA Plan (the ``CTA Plan'').\4\ The proposal
represents the twentieth charges amendment to the CTA Plan (``Twentieth
Charges Amendment''), and reflects changes unanimously adopted by the
Participants. The Twentieth Charges Amendment seeks to impose a late
fee (``Late Fee'') on a vendor or other data redistributor that fails
to submit the results of the required audit of its quote meter system
in a timely manner. Pursuant to Rule 608(b)(3) under Regulation NMS,
the Participants designate the amendment as establishing or changing a
fee or other charge collected on their behalf in connection with access
to, or use of, the facilities contemplated by the CTA Plan. As a
result, the amendment becomes effective upon filing with the
Commission. The Commission is publishing this notice to solicit
comments from interested persons on the proposed Late Fee amendment.
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\1\ 15 U.S.C. 78k-1.
\2\ 17 CFR 242.608.
\3\ Each participant executed the proposed amendment. The
Participants are: 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, Inc., Nasdaq Stock Market LLC,
National Stock Exchange, New York Stock Exchange LLC, NYSE MKT LLC,
and NYSE Arca, Inc. (collectively, ``Participants'').
\4\ See Securities Exchange Act Release No. 10787 (May 10,
1974), 39 FR 17799 (declaring the CTA Plan effective). The most
recent restatement of the CTA Plan 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.
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I. Rule 608(a)
A. Purpose of the Amendment
One of the payment options that the Participants make available to
data redistributors is the per-query option. Currently, a data
redistributor may pay $0.005 for every data query to which it responds.
The Participant's form of ``Agreement for Receipt and Use of Market
Data'' requires each data redistributor that wishes to redistribute
data on a per-query basis to periodically audit its quote-metering
system. The Participants have required per-query vendors to
periodically audit their quote meter systems since they first
established the per-query payment option in the late 1990's. They have
found that the audits are essential to assuring the accuracy of per-
query counts and payments.
However, some data redistributors have been derelict in performing
the audits or have been tardy in providing the Participants with
reports of the results of the audits. These instances place
administrative burdens on the network administrators and add cost to
the payment-collection process.
The amendment seeks to compensate the Participants for the added
administrative costs, to reduce the risk that the Participants will
under-bill a data redistributor due to faulty quote meter counts, and
to provide incentives for data redistributors to submit the results of
their quote meter audits to the Participants in a timely manner. The
amendment proposes to impose a Late Fee of $3,000 for each month a data
redistributor falls behind in submitting the results of the required
quote meter audit to the Participants. The Late Fee applies once a data
redistributor fails to provide NYSE with its audit results on or prior
to December 31 of a year in which an audit is required.
The Participants do not view the amendment as establishing a new
revenue source. Rather, they hope it encourages all data redistributors
to submit the results of their quote meter audits in a timely fashion.
They hope that the Late Fee will motivate non-compliant, or late-
complying, per-query data redistributors to adopt the same practices
that the majority of per-query data redistributors follow.
B. Governing or Constituent Documents
Not applicable.
C. Implementation of the Amendment
Pursuant to Rule 608(b)(3)(i) under Regulation NMS, the
Participants have designated the proposed Late Fee as establishing or
changing fees and are submitting the amendment for immediate
effectiveness. The Participants anticipate commencing to impose the
Late Fee on data redistributors that are required to submit audit
reports during 2014, but fail to do so on or prior to December 31,
2014. Prior to then, the Participants will give notice of the Late Fee
to data redistributors that provide per-query service.
D. Development and Implementation Phases
See Item I(C) above.
E. Analysis of Impact on Competition
The amendment will impose no burden on competition.
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 CTA Plan as a result of the
amendment.
G. Approval by Sponsors in Accordance With Plan
In accordance with Section XII(b)(iii) of the CTA Plan, each of the
Participants has approved the Late Fee.
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
The Participants believe that the proposed Late Fee is fair and
reasonable and provides for an equitable allocation
[[Page 59338]]
of dues, fees, and other charges among vendors, data recipients and
other persons using CTA Network A facilities. They intend that it will
provide incentives for non-compliant (or late-complying) per-query data
redistributors to conform to the same practices and requirements by
which the majority of per-query data redistributors abide.
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
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
Twentieth Charges Amendment to the CTA Plan 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 SR-CTA-2014-01 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-CTA-2014-01. 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 Twentieth Charges Amendment to the CTA
Plan that are filed with the Commission, and all written communications
relating to the Twentieth Charges Amendment to the CTA Plan 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 Twentieth Charges Amendment to the CTA Plan 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-2014-01 and should be
submitted on or before October 22, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(27).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-23311 Filed 9-30-14; 8:45 am]
BILLING CODE 8011-01-P