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, 21648-21650 [2013-08466]
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21648
Federal Register / Vol. 78, No. 70 / Thursday, April 11, 2013 / Notices
TKELLEY on DSK3SPTVN1PROD with NOTICES
the obvious error rule, including data
relevant to assessing the various
analyses noted above. On April 4, 2013,
the Exchange submitted a letter stating
that it would provide specific data to
the Commission and the public and
certain analysis to the Commission to
evaluate the impact of Limit States and
Straddle States on liquidity and market
quality in the options markets.44 This
will allow the Commission, the
Exchange, and other interested parties
to evaluate the quality of the options
markets during Limit States and
Straddle States and to assess whether
the additional protections noted by the
Exchange are sufficient safeguards
against the submission of erroneous
trades, and whether the Exchange’s
proposal appropriately balances the
protection afforded to an erroneous
order sender against the potential
hazards associated with providing
market participants additional time to
review trades submitted during a Limit
State or Straddle State.
44 In particular, the Exchange represented that, at
least two months prior to the end of the one year
pilot period of proposed Interpretation and Policy
.06 to Rule 6.25, it would provide to the
Commission an evaluation of (i) the statistical and
economic impact of Straddle States on liquidity and
market quality in the options market and (ii)
whether the lack of obvious error rules in effect
during the Limit States and Straddle States are
problematic. In addition, the Exchange represented
that each month following the adoption of the
proposed rule change it would provide to the
Commission and the public a dataset containing
certain data elements for each Limit State and
Straddle State in optionable stocks. The Exchange
stated that the options included in the dataset will
be those that meet the following conditions: (i) the
options are more than 20% in the money (strike
price remains greater than 80% of the last stock
trade price for calls and strike price remains greater
than 120% of the last stock trade price for puts
when the Limit State or Straddle State is reached);
(ii) the option has at least two trades during the
Limit State or Straddle State; and (iii) the top ten
options (as ranked by overall contract volume on
that day) meeting the conditions listed above. For
each of those options affected, each dataset will
include, among other information: stock symbol,
option symbol, time at the start of the Limit State
or Straddle State and an indicator for whether it is
a Limit State or Straddle State. For activity on the
exchange in the relevant options, the Exchange has
agreed to provide executed volume, time-weighted
quoted bid-ask spread, time-weighted average
quoted depth at the bid, time-weighted average
quoted depth at the offer, high execution price, low
execution price, number of trades for which a
request for review for error was received during
Straddle States and Limit States, an indicator
variable for whether those options outlined above
have a price change exceeding 30% during the
underlying stock’s Limit State or Straddle State
compared to the last available option price as
reported by OPRA before the start of the Limit or
Straddle state (1 if observe 30% and 0 otherwise),
and another indicator variable for whether the
option price within five minutes of the underlying
stock leaving the Limit State or Straddle State (or
halt if applicable) is 30% away from the price
before the start of the Limit State or Straddle state.
See CBOE Letter, supra note 6.
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In addition, the Commission finds
good cause, pursuant to Section 19(b)(2)
of the Act 45 for approving the proposed
rule change on an accelerated basis.
This proposal is related to the Plan,
which will become operative on April 8,
2013, and aspects of the proposal, such
as rejecting market orders and not
electing Stop Orders during a limit uplimit down state, are designed to
prevent such orders from receiving poor
executions during those times. In
granting accelerated approval, the
proposed rule change, and its
corresponding protections, will take
effect upon the Plan’s implementation
date. Accordingly, the Commission
finds that good cause exists for
approving the proposed rule change on
an accelerated basis.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,46 that the
proposed rule change (SR–CBOE–2013–
030), as modified by Amendments Nos.
1 and 2, be, and it hereby is, approved
on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.47
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–08473 Filed 4–10–13; 8:45 am]
BILLING CODE 8011–01–P
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
45 15
U.S.C. 78s(b)(2)
U.S.C. 78s(b)(2).
47 17 CFR 200.30–3(a)(12).
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
46 15
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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
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.
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 nonNASDAQ 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).
6 17 CFR 242.608(b)(3)(ii).
E:\FR\FM\11APN1.SGM
11APN1
Federal Register / Vol. 78, No. 70 / Thursday, April 11, 2013 / Notices
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.
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
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.
TKELLEY on DSK3SPTVN1PROD with NOTICES
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
7 See
supra note 5.
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).
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.
8 See
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D. Manner of Consolidation
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Not applicable.
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21649
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. 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 (https://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
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Federal Register / Vol. 78, No. 70 / Thursday, April 11, 2013 / Notices
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
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–08466 Filed 4–10–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69325; File No. SR–
NYSEArca–2013–17]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Granting Approval of
Proposed Rule Change Amending Its
Rules To Reflect the Merger of NYSE
Arca Holdings, Inc., An Intermediate
Holding Company, Into and With NYSE
Group, Inc., Thereby Eliminating NYSE
Arca Holdings, Inc. From the
Ownership Structure of the Exchange
TKELLEY on DSK3SPTVN1PROD with NOTICES
April 5, 2013.
I. Introduction
On February 7, 2013, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 proposed rule
changes to reflect the merger of NYSE
Arca Holdings, Inc. (‘‘NYSE Arca
Holdings’’), an intermediate holding
company, into and with NYSE Group,
Inc. (‘‘NYSE Group’’), thereby
eliminating NYSE Arca Holdings from
the ownership structure of the Exchange
(the ‘‘Merger’’). The proposed rule
changes were published for comment in
the Federal Register on February 26,
2013.3 The Commission received no
comment letters on the proposal. The
Commission has reviewed carefully the
proposed rule changes and finds that
the proposed rule changes are consistent
9 17
CFR 200.30–3(a)(27).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 68959
(February 20, 2013), 78 FR 13103 (‘‘Notice’’).
1 15
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17:37 Apr 10, 2013
Jkt 229001
with the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.4 This order approves the
proposed rule changes.
II. Description
NYSE Euronext intends to merge
NYSE Arca Holdings with and into
NYSE Group, effective following
approval of the proposed rule changes.5
According to the Exchange, the reason
for the Merger is to eliminate an
unnecessary intermediate holding
company.6 Following the Merger, the
Exchange would be wholly-owned by
NYSE Group (as its two affiliate
exchanges, New York Stock Exchange
LLC (‘‘NYSE’’) and NYSE MKT LLC
(‘‘NYSE MKT’’), are), which in turn
would be wholly-owned by NYSE
Euronext.
The Exchange has submitted its
proposal to (i) delete in its entirety the
Second Amended and Restated
Certificate of NYSE Arca Holdings (the
‘‘NYSE Arca Holdings Certificate’’), (ii)
delete in its entirety the Amended and
Restated Bylaws of NYSE Arca Holdings
(‘‘NYSE Arca Holdings Bylaws’’); (iii)
amend the rules of NYSE Arca, Inc.
(‘‘NYSE Arca’’); (iv) amend the Bylaws
of NYSE Arca (‘‘NYSE Arca Bylaws’’);
and (v) file the resolution (the
‘‘Resolution’’) of the Board of Directors
of NYSE Arca (the ‘‘NYSE Arca Board’’)
in connection with the Merger.
Section 19(b) of the Act and Rule
19b–4 thereunder require a selfregulatory organization (‘‘SRO’’) to file
proposed rule changes with the
Commission. Although NYSE Arca
Holdings is not an SRO, the NYSE Arca
Holdings Certificate and NYSE Arca
Holdings Bylaws, along with other
corporate documents, are rules of the
Exchange 7 and must be filed with the
Commission pursuant to Section
19(b)(4) of the Act and Rule 19b–4
thereunder. Accordingly, the Exchange
filed the NYSE Arca Holdings
Certificate and NYSE Arca Holdings
Bylaws with the Commission, along
with other corporate governance
documents.8
4 In approving the proposed rule changes, the
Commission has considered their impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
5 Currently, NYSE Arca Holdings, Inc. owns all of
the equity interest of the Exchange. NYSE Group
owns all of the equity interest of NYSE Arca
Holdings. NYSE Euronext owns all of the equity
interest of NYSE Group.
6 See Notice, supra note 3, at 13103.
7 See Section 3(a)(27) of the Act, 15 U.S.C.
78c(a)(27).
8 The Exchange proposes to delete the entirety of
the Second Amended and Restated Certificate of
Incorporation of NYSE Arca Holdings and the
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The proposed rule changes reflect the
elimination of NYSE Arca Holdings
from the Exchange’s ownership
structure and delete duplicative or
obsolete text. For example, the
Exchange proposes to replace references
to NYSE Arca Holdings in Sections 2.01
and 3.13 of the NYSE Arca Bylaws with
references to NYSE Group.9 The
Exchange also proposes to delete
Sections 2.02, 2.04 and 2.05 of the
NYSE Arca Bylaws which relate to
scheduling meetings of the Holding
Member. The Exchange states that the
Second Amended and Restated Bylaws
of NYSE Group already include
provisions for meetings of NYSE
Group’s stockholders and Board of
Directors.10 The Exchange also
represents that the operating agreements
of the Exchange’s affiliated SROs, the
NYSE and NYSE MKT, do not contain
provisions relating to annual meetings
of NYSE Group.11
The Exchange proposes to amend
Section 3.02(f) of the NYSE Arca Bylaws
to provide that, except as otherwise
provided in the NYSE Arca Bylaws or
rules, the Holding Member shall
nominate directors for election at the
Holding Member’s annual meeting.12
The Exchange notes that the NYSE Arca
Bylaws and rules do not have any other
provisions concerning the nomination
of non-fair representation directors.13
Accordingly, this proposed rule change
will not have any impact on the current
process for the nomination and
selection of fair representation directors
of the Exchange and NYSE Arca
Equities, Inc. (‘‘NYSE Arca Equities’’).14
III. Discussion
The Commission finds that the
proposed rule changes are consistent
with the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
Amended and Restated Bylaws of NYSE Arca
Holdings, attached as Exhibit A and Exhibit B,
respectively, to the Notice. The Exchange also filed
the proposed rule changes to its rules as the
proposed Amended and Restated NYSE Arca
Bylaws and rules, attached as Exhibit C and Exhibit
D, respectively, to the Notice. The Exchange also
filed the Resolution as Exhibit E to the Notice.
These exhibits are available on the Commission’s
Web site (https://www.sec.gov/rules/sro.shtml) and
at the Commission’s Public Reference Room.
9 As a result of this change NYSE Group will
replace NYSE Arca Holdings as the ‘‘Holding
Member’’ for purposes of the NYSE Arca Bylaws.
10 See Notice, supra note 3, at 13104.
11 See id.
12 Currently, Section 3.02(f) provides that
‘‘[e]xcept as otherwise provided in these Bylaws or
the Rules, the Nominating Committee of NYSE Arca
Holdings, Inc. Holding Member shall nominate
directors for election at the annual meeting of the
Holding Member.’’
13 See Notice, supra note 3, at 13104.
14 See Notice, supra note 3 at 13104.
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Agencies
[Federal Register Volume 78, Number 70 (Thursday, April 11, 2013)]
[Notices]
[Pages 21648-21650]
From the Federal Register Online via the Government Printing 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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
\6\ 17 CFR 242.608(b)(3)(ii).
---------------------------------------------------------------------------
[[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.
---------------------------------------------------------------------------
\7\ See supra note 5.
---------------------------------------------------------------------------
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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. 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 (https://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