Consolidated Tape Association; Order Approving the Thirteenth Charges Amendment to the Second Restatement of the Consolidated Tape Association Plan and Seventh Charges Amendment to the Restated Consolidated Quotation Plan, 68893-68894 [E9-30790]
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Federal Register / Vol. 74, No. 248 / Tuesday, December 29, 2009 / Notices
information that you wish to make
available publicly. All submissions
should refer to File Number SR–FINRA–
2009–087 and should be submitted on
or before January 19, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–30784 Filed 12–28–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61226; File No. SR–CTA/
CQ–2009–02]
Consolidated Tape Association; Order
Approving the Thirteenth Charges
Amendment to the Second
Restatement of the Consolidated Tape
Association Plan and Seventh Charges
Amendment to the Restated
Consolidated Quotation Plan
December 22, 2009.
I. Introduction
On October 19, 2009, the
Consolidated Tape Association (‘‘CTA’’)
Plan and Consolidated Quotation
(‘‘CQ’’) Plan participants
(‘‘Participants’’) 1 filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) pursuant to
Section 11A of the Securities Exchange
Act of 1934 (‘‘Act’’),2 and Rule 608
thereunder,3 proposals 4 to amend the
Second Restatement of the CTA Plan
and Restated CQ Plan (collectively, the
‘‘Plans’’).5 The proposals would: (1)
24 17
CFR 200.30–3(a)(12).
participant executed the proposed
amendment. The Participants are: BATS Exchange,
Inc.; Chicago Board Options Exchange, Inc.;
Chicago Stock Exchange, Inc.; Financial Industry
Regulatory Authority, Inc.; International Securities
Exchange, LLC; NASDAQ OMX BX, Inc.; NASDAQ
OMX PHLX, Inc.; The NASDAQ Stock Market LLC;
National Stock Exchange, Inc.; New York Stock
Exchange LLC; NYSE Amex LLC; and NYSE Arca,
Inc.
2 15 U.S.C. 78k–1.
3 17 CFR 242.608.
4 On November 6, 2009, the Consolidated Tape
Association sent a revised transmittal letter
correcting the number of the proposed amendment
(‘‘Transmittal Letter’’).
5 See Securities Exchange Act Release Nos. 10787
(May 10, 1974), 39 FR 17799 (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
pwalker on DSK8KYBLC1PROD with NOTICES
1 Each
VerDate Nov<24>2008
19:02 Dec 28, 2009
Jkt 220001
delete all program classification charges
from the schedules of Network A and
Network B computer input charges; and
(2) replace the current combined
Network A/Network B high speed line
access charges with separate high speed
line access charges for Network A and
Network B. The proposed amendments
to the Plans were published for
comment in the Federal Register on
November 19, 2009.6 No comment
letters were received in response to the
Notice. This order approves the
proposed amendments to the Plans.
68893
allowed to pay only for Network A last
sale prices, without also having to pay
for Network B last sale prices and vice
versa.
In addition to establishing separate
access fees for Network A and Network
B, the Participants stated that they
intend to set the new access fees at
levels that will offset the revenues that
the Participants anticipate losing as a
result of eliminating the program
classification fees.
III. Discussion
II. Description of the Proposal
The Plans currently divide the
different means of using market data
into eight ‘‘program classifications.’’
The program classification fees payable
by vendors and end-users depend on the
category of use the vendor or end-user
makes of the data and whether the
vendor or end-user is using Network A
market data or Network B market data,
or both. Through the amendments to the
Plans, the Participants proposed to
eliminate program classification charges
and set separate fees for the receipt of
Network A market data and Network B
market data.
The Participants stated that over time,
new technologies and new and
innovative ways to use market data have
made it increasingly difficult to fit the
data uses into the existing program
classifications in a manner that is
consistent and equitable for all.
Therefore, the Participants concluded
that it is more equitable to charge
vendors and end-users for the method of
access to the data and the quantity of
usage, rather than for the specific
purposes (i.e., by program classification)
to which vendors and end-users put
market data. The elimination of program
classification charges means that
vendors will no longer need to provide
detailed explanations of how they use
the data or to update Exhibit A to their
agreements with the Participants each
time they use data in a new way.
Additionally, the Participants
proposed to revise the access fees by
setting separate fees for the receipt of
Network A market data and Network B
market data. Therefore, if a vendor or
end-user wishes to receive Network A
last sale prices (or quotation
information), but not Network B last
sale prices (or quotation information),
the vendor or end-user would be
After careful review, the Commission
finds that the proposed amendments to
the Plans are consistent with the Act
and the rules and regulations
thereunder.7 Specifically, the
Commission finds that the amendments
are consistent with Rule 608(b)(2) 8 of
the Act in that they are necessary for the
protection of investors, the maintenance
of fair and orderly markets, and to
remove impediments to a national
market system. The Commission
believes that eliminating program
classification charges and replacing
them with separate fees for the receipt
of Network A and Network B market
data are fair and reasonable and provide
for an equitable allocation of dues, fees,
and other charges among vendors, data
recipients and other persons using CTA
Network A and Network B facilities.
The Commission agrees that charging
users of data based on their method of
access to the data and the amount of
data they use rather than basing charges
on the way vendors or end users use the
data should simplify the rate schedule,
remove subjectivity from the billing
process, simplify and reduce the costs of
data administration, and give choice to
data vendors and end-users who prefer
to receive data from one network only.
Further, according to the Participants’
estimates, the vast majority of vendors
and end-users would realize net
monthly increases or decreases of less
than $1,000.9 Thus, the proposed
amendment is consistent with, and
would further, one of the principal
objectives for the national market
system set forth in Section
11A(a)(1)(C)(iii) 10 of the Act—
increasing the availability of market
information to broker-dealers and
investors.
242.608. The CQ Plan, pursuant to which markets
collect and disseminate bid/ask quotation
information for listed securities, is also a ‘‘national
market system plan’’ under Rule 608 under the Act,
17 CFR 242.608.
6 See Securities Exchange Act Release No. 60985
(November 10, 2009), 74 FR 59999 (‘‘Notice’’).
7 In approving this amendment, the Commission
has considered the proposed amendment’s impact
on efficiency, competition, and capital formation.
15 U.S.C. 78c(f).
8 17 CFR 242.608(b)(2).
9 See the Transmittal Letter.
10 15 U.S.C. 78k–1(a)(1)(C)(iii).
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E:\FR\FM\29DEN1.SGM
29DEN1
68894
Federal Register / Vol. 74, No. 248 / Tuesday, December 29, 2009 / Notices
IV. Conclusion
It is therefore ordered, pursuant to
Section 11A of the Act,11 and the rules
thereunder, that the proposed
amendments to the CTA and CQ Plans
(SR–CTA/CQ–2009–02) are approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–30790 Filed 12–28–09; 8:45 am]
BILLING CODE 8011–01–P
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61218; File No. SR–
NYSEAmex-2009–90]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Its Fee
Schedule
December 22, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b-4 thereunder,2
notice is hereby given that on December
16, 2009, NYSE Amex LLC (‘‘NYSE
Amex’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
pwalker on DSK8KYBLC1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
section of its Schedule of Fees and
Charges for Exchange Services. The text
of the proposed rule change is attached
as Exhibit 5 to the 19b-4 form. The text
of the proposed rule change is available
on the Exchange’s Web site at https://
www.nyse.com, on the Commission’s
Web site at https://www.sec.gov, at NYSE
Amex, and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
11 15
U.S.C. 78k–1.
CFR 200.30–3(a)(27).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
19:02 Dec 28, 2009
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act, in general, and Section
6(b)(4), in particular, in that it provides
for the equitable allocation of dues, fees
and other charges among its members.
Under this proposal, all similarly
situated Exchange participants will be
charged the same reasonable dues, fees
and other charges.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
12 17
VerDate Nov<24>2008
The Exchange recently introduced
automated complex order trading for all
market participants on NYSE Amex. In
conjunction with that functionality, the
Exchange introduced new transaction
fees specific to Complex Order
executions. Pursuant to this filing, the
Exchange proposes to clarify the
Schedule by deleting language that
states, ‘‘Complex Orders in Penny Pilot
Issues, executed against individual
orders in the Consolidated Book will be
subject to ‘‘Take Liquidity’’ rate per
contract for that issue.’’ This language
was inadvertently included as part of a
prior fee filing and is not applicable to
the current NYSE Amex fee structure.
NYSE Amex does not offer a post/take
pricing structure, so reference to a
‘‘Take Liquidity’’ rate is inapplicable
and misleading. Consistent with the
current practice, complex orders in
Penny Pilot issues, like all other issues,
will be subject to the standard execution
rate per contract pricing.
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Sfmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change is
effective upon filing pursuant to Section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
4(f)(2) thereunder,4 because it
establishes a due, fee, or other charge
imposed by NYSE Arca on its members.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEAmex–2009–90 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–NYSEAmex-2009–90. This
file number should be included on the
subject line if e-mail 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 (https://www.sec.gov/
rules/sro/shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change 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 inspection and copying in
the Commission’s Public Reference
3 15
4 17
E:\FR\FM\29DEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
29DEN1
Agencies
[Federal Register Volume 74, Number 248 (Tuesday, December 29, 2009)]
[Notices]
[Pages 68893-68894]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-30790]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61226; File No. SR-CTA/CQ-2009-02]
Consolidated Tape Association; Order Approving the Thirteenth
Charges Amendment to the Second Restatement of the Consolidated Tape
Association Plan and Seventh Charges Amendment to the Restated
Consolidated Quotation Plan
December 22, 2009.
I. Introduction
On October 19, 2009, the Consolidated Tape Association (``CTA'')
Plan and Consolidated Quotation (``CQ'') Plan participants
(``Participants'') \1\ filed with the Securities and Exchange
Commission (``SEC'' or ``Commission'') pursuant to Section 11A of the
Securities Exchange Act of 1934 (``Act''),\2\ and Rule 608
thereunder,\3\ proposals \4\ to amend the Second Restatement of the CTA
Plan and Restated CQ Plan (collectively, the ``Plans'').\5\ The
proposals would: (1) delete all program classification charges from the
schedules of Network A and Network B computer input charges; and (2)
replace the current combined Network A/Network B high speed line access
charges with separate high speed line access charges for Network A and
Network B. The proposed amendments to the Plans were published for
comment in the Federal Register on November 19, 2009.\6\ No comment
letters were received in response to the Notice. This order approves
the proposed amendments to the Plans.
---------------------------------------------------------------------------
\1\ Each participant executed the proposed amendment. The
Participants are: BATS Exchange, Inc.; Chicago Board Options
Exchange, Inc.; Chicago Stock Exchange, Inc.; Financial Industry
Regulatory Authority, Inc.; International Securities Exchange, LLC;
NASDAQ OMX BX, Inc.; NASDAQ OMX PHLX, Inc.; The NASDAQ Stock Market
LLC; National Stock Exchange, Inc.; New York Stock Exchange LLC;
NYSE Amex LLC; and NYSE Arca, Inc.
\2\ 15 U.S.C. 78k-1.
\3\ 17 CFR 242.608.
\4\ On November 6, 2009, the Consolidated Tape Association sent
a revised transmittal letter correcting the number of the proposed
amendment (``Transmittal Letter'').
\5\ See Securities Exchange Act Release Nos. 10787 (May 10,
1974), 39 FR 17799 (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
also a ``national market system plan'' under Rule 608 under the Act,
17 CFR 242.608.
\6\ See Securities Exchange Act Release No. 60985 (November 10,
2009), 74 FR 59999 (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal
The Plans currently divide the different means of using market data
into eight ``program classifications.'' The program classification fees
payable by vendors and end-users depend on the category of use the
vendor or end-user makes of the data and whether the vendor or end-user
is using Network A market data or Network B market data, or both.
Through the amendments to the Plans, the Participants proposed to
eliminate program classification charges and set separate fees for the
receipt of Network A market data and Network B market data.
The Participants stated that over time, new technologies and new
and innovative ways to use market data have made it increasingly
difficult to fit the data uses into the existing program
classifications in a manner that is consistent and equitable for all.
Therefore, the Participants concluded that it is more equitable to
charge vendors and end-users for the method of access to the data and
the quantity of usage, rather than for the specific purposes (i.e., by
program classification) to which vendors and end-users put market data.
The elimination of program classification charges means that vendors
will no longer need to provide detailed explanations of how they use
the data or to update Exhibit A to their agreements with the
Participants each time they use data in a new way.
Additionally, the Participants proposed to revise the access fees
by setting separate fees for the receipt of Network A market data and
Network B market data. Therefore, if a vendor or end-user wishes to
receive Network A last sale prices (or quotation information), but not
Network B last sale prices (or quotation information), the vendor or
end-user would be allowed to pay only for Network A last sale prices,
without also having to pay for Network B last sale prices and vice
versa.
In addition to establishing separate access fees for Network A and
Network B, the Participants stated that they intend to set the new
access fees at levels that will offset the revenues that the
Participants anticipate losing as a result of eliminating the program
classification fees.
III. Discussion
After careful review, the Commission finds that the proposed
amendments to the Plans are consistent with the Act and the rules and
regulations thereunder.\7\ Specifically, the Commission finds that the
amendments are consistent with Rule 608(b)(2) \8\ of the Act in that
they are necessary for the protection of investors, the maintenance of
fair and orderly markets, and to remove impediments to a national
market system. The Commission believes that eliminating program
classification charges and replacing them with separate fees for the
receipt of Network A and Network B market data are fair and reasonable
and provide for an equitable allocation of dues, fees, and other
charges among vendors, data recipients and other persons using CTA
Network A and Network B facilities. The Commission agrees that charging
users of data based on their method of access to the data and the
amount of data they use rather than basing charges on the way vendors
or end users use the data should simplify the rate schedule, remove
subjectivity from the billing process, simplify and reduce the costs of
data administration, and give choice to data vendors and end-users who
prefer to receive data from one network only. Further, according to the
Participants' estimates, the vast majority of vendors and end-users
would realize net monthly increases or decreases of less than
$1,000.\9\ Thus, the proposed amendment is consistent with, and would
further, one of the principal objectives for the national market system
set forth in Section 11A(a)(1)(C)(iii) \10\ of the Act--increasing the
availability of market information to broker-dealers and investors.
---------------------------------------------------------------------------
\7\ In approving this amendment, the Commission has considered
the proposed amendment's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
\8\ 17 CFR 242.608(b)(2).
\9\ See the Transmittal Letter.
\10\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
---------------------------------------------------------------------------
[[Page 68894]]
IV. Conclusion
It is therefore ordered, pursuant to Section 11A of the Act,\11\
and the rules thereunder, that the proposed amendments to the CTA and
CQ Plans (SR-CTA/CQ-2009-02) are approved.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78k-1.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(27).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-30790 Filed 12-28-09; 8:45 am]
BILLING CODE 8011-01-P