Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment No. 26 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 Amex, Inc., and NYSE Arca, Inc., 76455-76457 [2011-31414]
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<![CDATA[
Federal Register / Vol. 76, No. 235 / Wednesday, December 7, 2011 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65866; File No. S7–24–89]
Joint Industry Plan; Notice of Filing
and Immediate Effectiveness of
Amendment No. 26 to the Joint SelfRegulatory 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 Amex, Inc., and
NYSE Arca, Inc.
December 2, 2011.
Pursuant to Rule 608 of the Securities
Exchange Act of 1934 (the ‘‘Act’’) 1
notice is hereby given that on November
11, 2011, the operating committee
(‘‘Operating Committee’’ or
‘‘Committee’’) 2 of the Joint SelfRegulatory Organization Plan Governing
the Collection, Consolidation, and
Dissemination of Quotation and
Transaction Information for NasdaqListed 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.3 This
1 17
CFR 242.608.
Plan Participants (collectively,
‘‘Participants’’) are the: BATS Exchange, Inc.
(‘‘BATS’’); BATS Y–Exchange, Inc.(‘‘BATS Y’’);
Chicago Board Options Exchange, Incorporated
(‘‘CBOE’’); Chicago Stock Exchange, Inc. (‘‘CHX’’);
EDGA Exchange, Inc. (‘‘EDGA’’); EDGX Exchange,
Inc.(‘‘EDGX’’); Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’); International Securities
Exchange LLC (‘‘ISE’’); NASDAQ OMX BX, Inc.
(‘‘BX’’); NASDAQ OMX PHLX LLC (‘‘PHLX’’);
Nasdaq Stock Market LLC (‘‘Nasdaq’’); National
Stock Exchange, Inc. (‘‘NSX’’); New York Stock
Exchange LLC (‘‘NYSE’’); NYSE Amex, Inc.
(‘‘NYSEAmex’’); and NYSE Arca, Inc.
(‘‘NYSEArca’’).
3 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
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2 The
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amendment represents Amendment No.
26 (‘‘Amendment’’) to the Plan and
proposes to harmonize the price
structures among the U.S. national
market system plans by replacing the
annual administrative fees that the
Participants impose in respect of realtime data with monthly access fees.
Pursuant to Rule 608(b)(3)(i) under the
Act, the Participants designated the
Amendment as establishing or changing
a fee or other charge collected on behalf
of all of the participants in connection
with access to, or use of, the facilities
contemplated by the Amendment. As a
result, the Amendment has been put
into effect upon filing with the
Commission. At any time within 60
days of the filing of the Amendment, the
Commission may summarily abrogate
the Amendment and require that the
Amendment 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.
I. Rule 608(a)
A. Purpose of the Amendments
The Participants propose to
harmonize the price structures among
the U.S. national market system plans
by replacing the annual administrative
fees that the Participants impose in
respect of real-time data with monthly
access fees. The proposed Nasdaq/UTP
Plan access fees are similar to those that
the Network A and Network B
Participants impose under the CTA and
CQ Plans and that the OPRA
Participants impose under the OPRA
Plan.
The Participants propose to establish
the monthly fee for access to UTP Level
1 real-time data feeds at $1,500 for
direct access and at $500 for indirect
access.
The Participants propose to impose
the direct access fee on parties that
receive access to any one or more UTP
Level 1 real-time data feeds by means of
a linkage or interface directly with the
Plan’s Securities Information Processor
(Nasdaq) via an extranet or other
connection that Nasdaq has approved.
The Participants propose to impose the
Act Release No. 55647 (April 19, 2007) 72 FR 20891
(April 26, 2007).
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
76455
indirect access fee on parties that
receive ‘‘indirect access’’ to any one or
more UTP Level 1 real-time data feeds
by means of a data feed service that a
third-party data feed provider makes
available. Distributors receiving access
both directly and indirectly shall be
liable only for direct access fees.
The references to ‘‘data feeds’’ would
include the receipt of data in an
uncontrolled format. The data recipient
is responsible for the
telecommunications facilities necessary
to access data.
Currently, the Participants impose the
following annual administrative fee on
distributors for access to UTP Level 1
Service:
Delayed distributor ........................
0–999 real-time terminals .............
1,000–4,999 real-time terminals ...
5,000–9,999 real-time terminals ...
10,000+ real-time terminals ..........
$250
500
1,250
2,250
3,750
The Participants propose to replace
each of the real-time administrative fees
with the access fees. As a result, the
Participants propose to delete the realtime annual administrative fees from the
fee schedule. The $250 annual
administrative fee that the Participants
impose on delayed distributors would
remain in effect.
The Participants project that replacing
the annual administrative fees with
monthly access fees would increase
annual revenues received under the
Nasdaq/UTP Plan approximately five
percent for 2012.
From an administrative perspective,
the administrator under the Nasdaq/
UTP Plan would require parties with
direct or indirect access to UTP Level 1
real-time data feeds to enter into the
same market data agreements that they
are required to enter into today.
B. Governing or Constituent Documents
Not applicable.
C. Implementation of Amendment
The Participants have manifested
their approval of the proposed
Amendment by means of their
execution of the Amendment. The
Participants propose to make the rate
changes effective for calendar year 2012.
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 Act.
The access fees amount to a competitive
response to the access fees that the
E:\FR\FM\07DEN1.SGM
07DEN1
76456
Federal Register / Vol. 76, No. 235 / Wednesday, December 7, 2011 / Notices
Participants in the CTA, CQ and OPRA
Plans impose. The proposed monthly
access fees and the monthly access fees
that currently apply under those other
Network A
national market system plans compare
as follows:
OPRA
Network B
Proposed under
NASDAQ/UTP
Plan
Direct Access:
Last Sale ...................................................................................
Bid/Ask ......................................................................................
$1,000
1,100
$350
400
............................
............................
............................
............................
Total ...................................................................................
2,100
750
4 2,500
1,500
Indirect Access:
Last Sale ...................................................................................
Bid/Ask ......................................................................................
500
700
200
250
............................
............................
............................
............................
Total ...................................................................................
1,200
450
600
500
The Participants in the CTA and CQ
Plans have imposed access fees since
the Commission declared the plans
effective in the 1970s. Those fees went
unchanged from the rates initially
adopted in the 1970s until 2009, when
the Participants in those Plans raised
them to the levels indicated above. The
CTA and CQ Plan Participants coupled
raising those fees with eliminating
program classification charges, stating
that the net result would be
approximately revenue neutral. In its
approval order,5 the Commission found
that the replacement of the program
classification charges with the hike in
the access fees is consistent with Rule
608(b)(2) of the Act. It stated that:
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.6
srobinson on DSK4SPTVN1PROD with NOTICES
The Participants believe that the same
holds true for the Nasdaq/UTP Plan’s
proposal. The proposed access fees
compare favorably to those currently
imposed under the CTA, CQ and OPRA
Plans, including those approved by the
Commission less than two years ago.
The Nasdaq/UTP Plan Participants do
not impose the program classification
charges that the CTA and CQ Plan
Participants eliminated. In addition to
the favorable comparability of the
Nasdaq/UTP Plan Participants’
proposed access fees, the Plan’s other
charges also compare favorably to their
4 The total OPRA Plan direct access fee of $2,500
consists of a $1,000 monthly direct access fee and
a $1,500 monthly redistribution fee that OPRA
imposes on vendors that distribute OPRA data to
any person, whether on a real-time or delayed basis.
5 See Securities Exchange Act Release No. 61226
(December 22, 2009); 74 FR 68893 (December 29,
2009) (SR–CTA/CQ–2009–02).
6 Id.
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Jkt 226001
CTA, CQ and OPRA Plan counterparts.
These include device charges, charges
for nonprofessional subscriber services,
per-query fees, and television ticker
fees.
In addition to the CTA, CQ and OPRA
Plans, many individual exchanges
around the world impose access fees for
the receipt of market data feeds. On the
other hand, few exchanges impose
annual administrative fees.
As a result, this Amendment
promotes consistency in price structures
among the national market system
plans, as well as consistency with the
preponderance of other market data
providers. It would make access fees
easier to administer and enable data
recipients to compare their charges
under the respective national market
system plans more easily. It would make
for a more straightforward and
streamlined administrative process for
both the network administrator and the
vendors.
Access fees allow those who gain
access to the Plan’s data feeds to
contribute an appropriate amount for
their receipt of market data under the
Plan. They provide for an equitable
allocation of dues, fees, and other
charges among data feed customers, end
users and others receiving and using
market data made available under the
Plan.
The Participants propose to impose
the access fees uniformly on all vendors
that receive UTP Level 1 real-time data
in a data feed/uncontrolled format
(including members of the Participant
markets and non-members). 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.
PO 00000
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
See Item A(1) above.
J. Method of Determination and
Imposition, and Amount of, Fees and
Charges
The Participants believe that the level
of the access fee allows vendors to
contribute an appropriate amount for
their receipt and use of market data
under the Plan. The access fees amount
to a competitive response to the access
fees that the Participants in the CTA, CQ
and OPRA Plans impose.
The Participants believe that the
proposed access fees are fair and
reasonable and provide for an equitable
allocation of dues, fees, and other
charges among vendors, data recipients
and other persons using the
Participants’ facilities.
K. Method and Frequency of Processor
Evaluation
Not applicable.
L. Dispute Resolution
Not applicable.
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E:\FR\FM\07DEN1.SGM
07DEN1
Federal Register / Vol. 76, No. 235 / Wednesday, December 7, 2011 / Notices
II. Rule 601(a)
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 on official business
days between the hours of 10 a.m. and
3 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 December 28, 2011.
A. Reporting Requirements
Not applicable.
B. Manner of Collecting, Processing,
Sequencing, Making Available and
Disseminating Last Sale Information
Not applicable.
C. Manner of Consolidation
Not applicable.
D. Standards and Methods Ensuring
Promptness, Accuracy and
Completeness of Transaction Reports
Not applicable.
E. Rules and Procedures Addressed to
Fraudulent or Manipulative
Dissemination
Not applicable.
F. Terms of Access to Transaction
Reports
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Kevin M. O’Neill,
Deputy Secretary.
Not applicable.
G. Identification of Marketplace of
Execution
Not Applicable.
III. Solicitation of Comments
[FR Doc. 2011–31414 Filed 12–6–11; 8:45 am]
The Commission seeks general
comments on Amendment No. 26.
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:
BILLING CODE 8011–01–P
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number S7–
24–89 on the subject line.
srobinson on DSK4SPTVN1PROD with NOTICES
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 (https://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
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SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Federal Register Citation of Previous
Announcement: [76 FR 74835,
December 1, 2011].
STATUS:
PLACE:
Open Meeting.
100 F Street, NE., Washington,
DC.
DATE AND TIME OF PREVIOUSLY ANNOUNCED
MEETING: Tuesday, December 6, 2011.
Cancellation of
Meeting.
The Open Meeting scheduled for
Tuesday, December 6, 2011 at 10 a.m.
has been cancelled.
For further information please contact
the Office of the Secretary at (202) 551–
5400.
CHANGE IN THE MEETING:
Dated: December 2, 2011.
Elizabeth M. Murphy,
Secretary.
76457
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65862; File No. SR–
NYSEArca–2011–86]
Self-Regulatory Organizations; NYSE
Arca Inc.; Notice of Filing of Proposed
Rule Change To List and Trade the
Accuvest Global Opportunities ETF
Under NYSE Arca Equities Rule 8.600
December 1, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that,
on November 16, 2011, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to list and
trade the following under NYSE Arca
Equities Rule 8.600 (‘‘Managed Fund
Shares’’): The Accuvest Global
Opportunities ETF. The text of the
proposed rule change is available at the
Exchange, the Commission’s Public
Reference Room, and www.nyse.com.
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
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those 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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2011–31484 Filed 12–5–11; 11:15 am]
1. Purpose
BILLING CODE 8011–01–P
The Exchange proposes to list and
trade the following Managed Fund
1 15
7 17
PO 00000
CFR 200.30–3(a)(27).
Frm 00099
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2 17
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E:\FR\FM\07DEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
07DEN1
]]>Agencies
[Federal Register Volume 76, Number 235 (Wednesday, December 7, 2011)]
[Notices]
[Pages 76455-76457]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-31414]
[[Page 76455]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65866; File No. S7-24-89]
Joint Industry Plan; Notice of Filing and Immediate Effectiveness
of Amendment No. 26 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 Amex, Inc., and NYSE Arca, Inc.
December 2, 2011.
Pursuant to Rule 608 of the Securities Exchange Act of 1934 (the
``Act'') \1\ notice is hereby given that on November 11, 2011, the
operating committee (``Operating Committee'' or ``Committee'') \2\ 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.\3\ This amendment represents Amendment No. 26
(``Amendment'') to the Plan and proposes to harmonize the price
structures among the U.S. national market system plans by replacing the
annual administrative fees that the Participants impose in respect of
real-time data with monthly access fees. Pursuant to Rule 608(b)(3)(i)
under the Act, the Participants designated the Amendment as
establishing or changing a fee or other charge collected on behalf of
all of the participants in connection with access to, or use of, the
facilities contemplated by the Amendment. As a result, the Amendment
has been put into effect upon filing with the Commission. At any time
within 60 days of the filing of the Amendment, the Commission may
summarily abrogate the Amendment and require that the Amendment 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.
---------------------------------------------------------------------------
\1\ 17 CFR 242.608.
\2\ The Plan Participants (collectively, ``Participants'') are
the: BATS Exchange, Inc. (``BATS''); BATS Y-Exchange, Inc.(``BATS
Y''); Chicago Board Options Exchange, Incorporated (``CBOE'');
Chicago Stock Exchange, Inc. (``CHX''); EDGA Exchange, Inc.
(``EDGA''); EDGX Exchange, Inc.(``EDGX''); Financial Industry
Regulatory Authority, Inc. (``FINRA''); International Securities
Exchange LLC (``ISE''); NASDAQ OMX BX, Inc. (``BX''); NASDAQ OMX
PHLX LLC (``PHLX''); Nasdaq Stock Market LLC (``Nasdaq''); National
Stock Exchange, Inc. (``NSX''); New York Stock Exchange LLC
(``NYSE''); NYSE Amex, Inc. (``NYSEAmex''); and NYSE Arca, Inc.
(``NYSEArca'').
\3\ 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).
---------------------------------------------------------------------------
I. Rule 608(a)
A. Purpose of the Amendments
The Participants propose to harmonize the price structures among
the U.S. national market system plans by replacing the annual
administrative fees that the Participants impose in respect of real-
time data with monthly access fees. The proposed Nasdaq/UTP Plan access
fees are similar to those that the Network A and Network B Participants
impose under the CTA and CQ Plans and that the OPRA Participants impose
under the OPRA Plan.
The Participants propose to establish the monthly fee for access to
UTP Level 1 real-time data feeds at $1,500 for direct access and at
$500 for indirect access.
The Participants propose to impose the direct access fee on parties
that receive access to any one or more UTP Level 1 real-time data feeds
by means of a linkage or interface directly with the Plan's Securities
Information Processor (Nasdaq) via an extranet or other connection that
Nasdaq has approved. The Participants propose to impose the indirect
access fee on parties that receive ``indirect access'' to any one or
more UTP Level 1 real-time data feeds by means of a data feed service
that a third-party data feed provider makes available. Distributors
receiving access both directly and indirectly shall be liable only for
direct access fees.
The references to ``data feeds'' would include the receipt of data
in an uncontrolled format. The data recipient is responsible for the
telecommunications facilities necessary to access data.
Currently, the Participants impose the following annual
administrative fee on distributors for access to UTP Level 1 Service:
------------------------------------------------------------------------
------------------------------------------------------------------------
Delayed distributor.......................................... $250
0-999 real-time terminals.................................... 500
1,000-4,999 real-time terminals.............................. 1,250
5,000-9,999 real-time terminals.............................. 2,250
10,000+ real-time terminals.................................. 3,750
------------------------------------------------------------------------
The Participants propose to replace each of the real-time
administrative fees with the access fees. As a result, the Participants
propose to delete the real-time annual administrative fees from the fee
schedule. The $250 annual administrative fee that the Participants
impose on delayed distributors would remain in effect.
The Participants project that replacing the annual administrative
fees with monthly access fees would increase annual revenues received
under the Nasdaq/UTP Plan approximately five percent for 2012.
From an administrative perspective, the administrator under the
Nasdaq/UTP Plan would require parties with direct or indirect access to
UTP Level 1 real-time data feeds to enter into the same market data
agreements that they are required to enter into today.
B. Governing or Constituent Documents
Not applicable.
C. Implementation of Amendment
The Participants have manifested their approval of the proposed
Amendment by means of their execution of the Amendment. The
Participants propose to make the rate changes effective for calendar
year 2012.
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 Act. The access fees amount to a competitive response to the access
fees that the
[[Page 76456]]
Participants in the CTA, CQ and OPRA Plans impose. The proposed monthly
access fees and the monthly access fees that currently apply under
those other national market system plans compare as follows:
----------------------------------------------------------------------------------------------------------------
Proposed under
Network A Network B OPRA NASDAQ/UTP Plan
----------------------------------------------------------------------------------------------------------------
Direct Access:
Last Sale........................... $1,000 $350 ................ ................
Bid/Ask............................. 1,100 400 ................ ................
-----------------------------------------------------------------------
Total........................... 2,100 750 \4\ 2,500 1,500
----------------------------------------------------------------------------------------------------------------
Indirect Access:
Last Sale........................... 500 200 ................ ................
Bid/Ask............................. 700 250 ................ ................
-----------------------------------------------------------------------
Total........................... 1,200 450 600 500
----------------------------------------------------------------------------------------------------------------
The Participants in the CTA and CQ Plans have imposed access fees
since the Commission declared the plans effective in the 1970s. Those
fees went unchanged from the rates initially adopted in the 1970s until
2009, when the Participants in those Plans raised them to the levels
indicated above. The CTA and CQ Plan Participants coupled raising those
fees with eliminating program classification charges, stating that the
net result would be approximately revenue neutral. In its approval
order,\5\ the Commission found that the replacement of the program
classification charges with the hike in the access fees is consistent
with Rule 608(b)(2) of the Act. It stated that:
---------------------------------------------------------------------------
\4\ The total OPRA Plan direct access fee of $2,500 consists of
a $1,000 monthly direct access fee and a $1,500 monthly
redistribution fee that OPRA imposes on vendors that distribute OPRA
data to any person, whether on a real-time or delayed basis.
\5\ See Securities Exchange Act Release No. 61226 (December 22,
2009); 74 FR 68893 (December 29, 2009) (SR-CTA/CQ-2009-02).
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.\6\
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\6\ Id.
The Participants believe that the same holds true for the Nasdaq/
UTP Plan's proposal. The proposed access fees compare favorably to
those currently imposed under the CTA, CQ and OPRA Plans, including
those approved by the Commission less than two years ago. The Nasdaq/
UTP Plan Participants do not impose the program classification charges
that the CTA and CQ Plan Participants eliminated. In addition to the
favorable comparability of the Nasdaq/UTP Plan Participants' proposed
access fees, the Plan's other charges also compare favorably to their
CTA, CQ and OPRA Plan counterparts. These include device charges,
charges for nonprofessional subscriber services, per-query fees, and
television ticker fees.
In addition to the CTA, CQ and OPRA Plans, many individual
exchanges around the world impose access fees for the receipt of market
data feeds. On the other hand, few exchanges impose annual
administrative fees.
As a result, this Amendment promotes consistency in price
structures among the national market system plans, as well as
consistency with the preponderance of other market data providers. It
would make access fees easier to administer and enable data recipients
to compare their charges under the respective national market system
plans more easily. It would make for a more straightforward and
streamlined administrative process for both the network administrator
and the vendors.
Access fees allow those who gain access to the Plan's data feeds to
contribute an appropriate amount for their receipt of market data under
the Plan. They provide for an equitable allocation of dues, fees, and
other charges among data feed customers, end users and others receiving
and using market data made available under the Plan.
The Participants propose to impose the access fees uniformly on all
vendors that receive UTP Level 1 real-time data in a data feed/
uncontrolled format (including members of the Participant markets and
non-members). 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.
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
See Item A(1) above.
J. Method of Determination and Imposition, and Amount of, Fees and
Charges
The Participants believe that the level of the access fee allows
vendors to contribute an appropriate amount for their receipt and use
of market data under the Plan. The access fees amount to a competitive
response to the access fees that the Participants in the CTA, CQ and
OPRA Plans impose.
The Participants believe that the proposed access fees are fair and
reasonable and provide for an equitable allocation of dues, fees, and
other charges among vendors, data recipients and other persons using
the Participants' facilities.
K. Method and Frequency of Processor Evaluation
Not applicable.
L. Dispute Resolution
Not applicable.
[[Page 76457]]
II. Rule 601(a)
A. Reporting Requirements
Not applicable.
B. Manner of Collecting, Processing, Sequencing, Making Available and
Disseminating Last Sale Information
Not applicable.
C. Manner of Consolidation
Not applicable.
D. Standards and Methods Ensuring Promptness, Accuracy and Completeness
of Transaction Reports
Not applicable.
E. Rules and Procedures Addressed to Fraudulent or Manipulative
Dissemination
Not applicable.
F. Terms of Access to Transaction Reports
Not applicable.
G. Identification of Marketplace of Execution
Not Applicable.
III. Solicitation of Comments
The Commission seeks general comments on Amendment No. 26.
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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. 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 (https://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 on official business days between the hours of 10 a.m.
and 3 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 December 28, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(27).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-31414 Filed 12-6-11; 8:45 am]
BILLING CODE 8011-01-P
