Joint Industry Plan; Notice of Filing of Amendment No. 32 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, Inc., Nasdaq Stock Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, NYSE Arca, Inc. and NYSE MKT, LLC, 60203-60205 [2014-23655]

Download as PDF Federal Register / Vol. 79, No. 193 / Monday, October 6, 2014 / Notices required to respond to a collection of information unless it displays a currently valid control number. The public may view the background documentation for this information collection at the following Web site, www.reginfo.gov. Comments should be directed to: (i) Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503, or by sending an email to: Shagufta_ Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Chief Information Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon, 100 F Street NE., Washington, DC 20549 or send an email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. Dated: September 30, 2014. Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–23706 Filed 10–3–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–73239; File No. S7–24–89] Joint Industry Plan; Notice of Filing of Amendment No. 32 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 YExchange, Inc., Chicago Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory Authority, Inc., International Securities Exchange LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX, Inc., Nasdaq Stock Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, NYSE Arca, Inc. and NYSE MKT, LLC mstockstill on DSK4VPTVN1PROD with NOTICES September 26, 2014. Pursuant to Rule 608 of the Securities Exchange Act of 1934 (‘‘Act’’) 1 notice is hereby given that on September 12, 2014, the Chicago Board Options Exchange, Incorporated, on behalf of Participants 2 in the Joint Self1 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 2 The VerDate Sep<11>2014 17:17 Oct 03, 2014 Jkt 235001 Regulatory 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 amendment represents Amendment No. 32 to the Plan and reflects changes unanimously adopted by the Plan’s Participants. The amendment proposes to change certain of the voting requirements under the Plan. The Commission is publishing this notice to solicit comments from interested persons on the proposed Amendment. A. Rule 608(a) 1. Purpose of the Amendment The amendment proposes to change certain of the voting requirements under the Plan. The changes seek to harmonize voting requirements under the Plan with voting requirements under the CTA Plan and the CQ Plan. The Participants understand that the Participants under the CTA Plan and the CQ Plan intend to submit certain changes to the voting requirements under those plans to cause them to harmonize with voting under the Nasdaq/UTP Plan. The voting requirements that this amendment seeks to revise include the following: • To change the voting requirement needed to eliminate an existing fee, or to reduce an existing fee, from unanimity to the affirmative vote of twothirds of all Participants entitled to vote; • to change the voting requirement needed to request system changes other than those related to the processor function from a unanimous vote to the affirmative vote of a majority of all Participants entitled to vote; (‘‘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, Inc. (‘‘PHLX’’); Nasdaq Stock Market LLC (‘‘Nasdaq’’); National Stock Exchange, Inc. (‘‘NSX’’); New York Stock Exchange LLC (‘‘NYSE’’); NYSE Arca, Inc. (‘‘NYSEArca’’); and NYSE MKT LLC. 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). PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 60203 • to change the voting requirement needed to approve procedures for selecting a successor processor from unanimity to the affirmative vote of twothirds of all Participants entitled to vote; • to establish that selecting a new processor requires the affirmative vote of two-thirds of all Participants entitled to vote; • to change the voting requirement needed if the Plan does not specify another voting requirement from unanimity to the affirmative vote of a majority of all Participants entitled to vote. (a) Fee Setting In the Participants’ view, a two-thirds vote of the Participants, rather than unanimity, is the appropriate voting requirement for the Participants to eliminate or reduce an existing fee. The Plan currently requires a unanimous vote to eliminate a fee. The change with respect to eliminating a fee would harmonize that voting requirement with the voting requirements under the CTA and CQ Plans. The Plan currently requires a unanimous vote to reduce a fee. The CTA and CQ Plans also require unanimity to reduce a fee. However, the Participants understand that the Participants under the CTA and CQ Plans intend to amend those plans to require a two-thirds vote to reduce a fee. In addition, subjecting fee reductions to a two-thirds vote would harmonize the Plan with the counterpart requirement under the OPRA Plan. The Participants note that, after the amendment to the Plan and the anticipated amendments to the CTA and CQ Plans, all three plans will require a two-thirds vote to add, delete or eliminate a fee or to establish a new fee. These changes would provide the Participants with greater flexibility in respect of the plan’s fee schedule. (b) System Changes The Plan currently requires a majority vote to approve system changes related to the processor function, but requires a unanimous vote to approve other system changes. The Participants do not believe that this anomaly is warranted. Rather, in their view, the Plan should subject all system changes to the same voting requirement. They believe that that voting requirement should be a majority vote. A majority voting requirement rather than unanimity would afford the Participants greater flexibility and make it easier for the Participants to arrive at decisions regarding necessary system upgrades and changes. The Participants note that the CTA Plan, the CQ Plan and the OPRA Plan all require a majority E:\FR\FM\06OCN1.SGM 06OCN1 60204 Federal Register / Vol. 79, No. 193 / Monday, October 6, 2014 / Notices vote for decisions relating to system changes. matters for which those plans do not specify a voting requirement. (c) Processor Selection Procedures Section V (E) of the Plan sets forth a series of guidelines for the Participants to follow in establishing procedures for selecting a new processor. That section currently subjects the Participants’ approval of those procedures to a twothirds majority vote. In the Participants’ view, a majority vote of the Participants, rather than a two-thirds vote, is the appropriate voting requirement for approval of the procedures for selecting a new processor. This vote is only to establish the selection procedures. Because the Participants may have divergent views on the form that those procedures should take, a majority vote makes it easier for the Participants to arrive at a decision. The Participants note that the CTA Plan, the CQ Plan and the OPRA Plan all require a majority vote for decisions relating to procedures for selecting a new processor. 2. Governing or Constituent Documents Not applicable. mstockstill on DSK4VPTVN1PROD with NOTICES (d) Processor Selection The Plan does not currently specify the voting requirement for selecting a new processor. Since the Plan is silent, the applicable voting requirement would be the requirement that applies to matters for which the Plan does not specify a voting requirement. That default voting requirement is currently unanimity, but, as discussed above, the amendment seeks to change that to a majority vote. The Participants believe that a unanimous vote could make it too difficult for the Participants to arrive at a decision and that a matter as significant as selecting a Plan processor should require more than a simple majority vote. In their view, a two-thirds majority vote strikes the right balance of requiring a strong consensus without allowing a single Participant or a small number of Participants to block the selection of a new processor. (e) Default Voting Requirement The Plan currently requires a unanimous vote in respect of any matter for which the Plan does not specify a voting requirement. This requirement can make it unwieldy for the Participants to act, as all Participants do not always agree on every matter. The Participants believe that the affirmative vote of a majority of Participants provides greater flexibility and facilitates their ability to take action under the Plan. They note that the CTA Plan, the CQ Plan and the OPRA Plan all require majority votes to act on VerDate Sep<11>2014 17:17 Oct 03, 2014 Jkt 235001 3. Implementation of Amendment All of the Participants have manifested their approval of the proposed amendment by means of their execution of the amendment. The Plan amendment would become operational upon approval by the Commission. 4. Development and Implementation Phases Not applicable. 5. Analysis of Impact on Competition The proposed amendment does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Exchange Act. The Participants do not believe that the proposed plan amendments introduce terms that are unreasonably discriminatory for the purposes of Section 11A(c)(1)(D) of the Exchange Act. 6. Written Understanding or Agreements Relating to Interpretation of, or Participation in, Plan Not applicable. 7. Approval by Sponsors in Accordance With Plan See Item A(3) above. 8. Description of Operation of Facility Contemplated by the Proposed Amendment Not applicable. 9. Terms and Conditions of Access See Item A(1) above. 10. Method of Determination and Imposition, and Amount of, Fees and Charges See Item A(1) above. 11. Method and Frequency of Processor Evaluation Not applicable. 12. Dispute Resolution Not applicable. B. Rule 601(a) 1. Reporting Requirements Not applicable. 2. Manner of Collecting, Processing, Sequencing, Making Available and Disseminating Last Sale Information Not applicable. PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 3. Manner of Consolidation Not applicable. 4. Standards and Methods Ensuring Promptness, Accuracy and Completeness of Transaction Reports Not applicable. 5. Rules and Procedures Addressed to Fraudulent or Manipulative Dissemination Not applicable. 6. Terms of Access to Transaction Reports Not applicable. 7. Identification of Marketplace of Execution Not Applicable. III. Solicitation of Comments The Commission seeks general comments on Amendment No. 32. 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 Brent J. Fields, 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 E:\FR\FM\06OCN1.SGM 06OCN1 Federal Register / Vol. 79, No. 193 / Monday, October 6, 2014 / Notices 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 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for Web site viewing and printing at the Office of the Secretary of the Committee, currently located at the CBOE, 400 S. LaSalle Street, Chicago, IL 60605. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number S7–24–89 and should be submitted on or before October 27, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.4 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–23655 Filed 10–3–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–73268; File No. SR–CHX– 2014–17] Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt and Amend Fees for the CHX Routing Services September 19, 2014, the Chicago Stock Exchange, Inc. (‘‘CHX’’ 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 selfregulatory organization. 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 CHX proposes to amend its Schedule of Fees and Assessments (the ‘‘Fee Schedule’’) to adopt and amend fees for the CHX Routing Services. The text of this proposed rule change is available on the Exchange’s Web site at (www.chx.com) and in 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 CHX included statements concerning the purpose of and basis for the proposed rule changes 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 CHX has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. September 30, 2014. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (‘‘Act’’),2 and Rule 19b–4 thereunder,3 notice is hereby given that on A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Changes Section 19(b)(3)(A) of the Act 4 and Rule 19b–4 thereunder,5 to, inter alia, adopt the CHX Routing Services.6 The filing was immediately effective upon filing, but the proposed rule change will be implemented upon two weeks’ notice from the Exchange to its Participants. The Exchange now proposes (1) to amend Section E.6 of the Fee Schedule to adopt fees for the CHX Routing Services and (2) to amend Section E.8(c) of the Fee Schedule to clarify that the Average Daily Volume (‘‘ADV’’) exemption from the Order Cancellation Fee is based on all executions resulting from single-sided orders submitted to the CHX Matching System (‘‘Matching System’’), which includes executions within the Matching System and at away markets pursuant to the CHX Routing Services. Proposed CHX Routing Services Fees In sum, the CHX Routing Services will permit Routable Orders 7 submitted to the Matching System to be routed away from the Matching System if a Routing Event 8 is triggered. Orders that are not Routable Orders and orders that have either been cancelled from or have not been submitted to the Matching System are not eligible for the CHX Routing Services. Proposed Section E.6 of the Fee Schedule, entitled ‘‘CHX Routing Services Fees,’’ provides that executions that result from orders that have been routed away from the Matching System pursuant to the CHX Routing Services shall be subject to the following fees: 1. Purpose On September 8, 2014, the Exchange filed SR–CHX–2014–15 pursuant to Order size as submitted to the matching system Security price Odd Lots ............................................................................... All Prices ............................................................................. Round and Mixed Lots ......................................................... mstockstill on DSK4VPTVN1PROD with NOTICES 60205 ≥$1.00/share ....................................................................... The proposed CHX Routing Fee for Odd Lots is identical to current Section E.4 of the Fee Schedule, which provides that $0.0040/share will be charged for all executions resulting from Odd Lot 4 17 CFR 200.30–3(a)(27). U.S.C.78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 4 15 U.S.C. 78s(b)(3)(A). 5 Id. 6 See CHX Article 19. Article 1, Rule 1(oo) defines ‘‘Routable Order’’ as ‘‘any incoming Limit order, as defined under Article 1, Rule 2(a)(1), of any size, not marked by any order modifiers or related terms 1 15 VerDate Sep<11>2014 17:17 Oct 03, 2014 orders 9 submitted to the Matching System. Also, the proposed CHX Routing Fees for Round Lot 10 and Mixed Lot 11 orders are identical to current Section E.1 of the Fee Schedule, 7 CHX Jkt 235001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 Routing fee $0.0040/share. <$1.00/share. $0.0030/share. 0.30% of trade value. which provides that $0.0030/share will be charged for any executions resulting from Round Lot or Mixed Lot orders where the execution price was at or greater than $1.00/share and 0.30% of listed under Article 1, Rule 2 that prohibit the routing of the order to another Trading Center.’’ 8 See CHX Article 19, Rule 3(a). 9 See CHX Article 1, Rule 2(f)(2). 10 See CHX Article 1, Rule 2(f)(3). 11 See CHX Article 1, Rule 2(f)(1). E:\FR\FM\06OCN1.SGM 06OCN1

Agencies

[Federal Register Volume 79, Number 193 (Monday, October 6, 2014)]
[Notices]
[Pages 60203-60205]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23655]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73239; File No. S7-24-89]


Joint Industry Plan; Notice of Filing of Amendment No. 32 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, Inc., Nasdaq Stock 
Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, 
NYSE Arca, Inc. and NYSE MKT, LLC

September 26, 2014.
    Pursuant to Rule 608 of the Securities Exchange Act of 1934 
(``Act'') \1\ notice is hereby given that on September 12, 2014, the 
Chicago Board Options Exchange, Incorporated, on behalf of Participants 
\2\ in 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. 32 to the Plan and reflects changes unanimously adopted 
by the Plan's Participants. The amendment proposes to change certain of 
the voting requirements under the Plan. The Commission is publishing 
this notice to solicit comments from interested persons on the proposed 
Amendment.
---------------------------------------------------------------------------

    \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, Inc. (``PHLX''); Nasdaq Stock Market LLC (``Nasdaq''); 
National Stock Exchange, Inc. (``NSX''); New York Stock Exchange LLC 
(``NYSE''); NYSE Arca, Inc. (``NYSEArca''); and NYSE MKT LLC.
    \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).
---------------------------------------------------------------------------

A. Rule 608(a)

1. Purpose of the Amendment

    The amendment proposes to change certain of the voting requirements 
under the Plan. The changes seek to harmonize voting requirements under 
the Plan with voting requirements under the CTA Plan and the CQ Plan. 
The Participants understand that the Participants under the CTA Plan 
and the CQ Plan intend to submit certain changes to the voting 
requirements under those plans to cause them to harmonize with voting 
under the Nasdaq/UTP Plan.
    The voting requirements that this amendment seeks to revise include 
the following:
     To change the voting requirement needed to eliminate an 
existing fee, or to reduce an existing fee, from unanimity to the 
affirmative vote of two-thirds of all Participants entitled to vote;
     to change the voting requirement needed to request system 
changes other than those related to the processor function from a 
unanimous vote to the affirmative vote of a majority of all 
Participants entitled to vote;
     to change the voting requirement needed to approve 
procedures for selecting a successor processor from unanimity to the 
affirmative vote of two-thirds of all Participants entitled to vote;
     to establish that selecting a new processor requires the 
affirmative vote of two-thirds of all Participants entitled to vote;
     to change the voting requirement needed if the Plan does 
not specify another voting requirement from unanimity to the 
affirmative vote of a majority of all Participants entitled to vote.
(a) Fee Setting
    In the Participants' view, a two-thirds vote of the Participants, 
rather than unanimity, is the appropriate voting requirement for the 
Participants to eliminate or reduce an existing fee. The Plan currently 
requires a unanimous vote to eliminate a fee. The change with respect 
to eliminating a fee would harmonize that voting requirement with the 
voting requirements under the CTA and CQ Plans.
    The Plan currently requires a unanimous vote to reduce a fee. The 
CTA and CQ Plans also require unanimity to reduce a fee. However, the 
Participants understand that the Participants under the CTA and CQ 
Plans intend to amend those plans to require a two-thirds vote to 
reduce a fee. In addition, subjecting fee reductions to a two-thirds 
vote would harmonize the Plan with the counterpart requirement under 
the OPRA Plan.
    The Participants note that, after the amendment to the Plan and the 
anticipated amendments to the CTA and CQ Plans, all three plans will 
require a two-thirds vote to add, delete or eliminate a fee or to 
establish a new fee. These changes would provide the Participants with 
greater flexibility in respect of the plan's fee schedule.
(b) System Changes
    The Plan currently requires a majority vote to approve system 
changes related to the processor function, but requires a unanimous 
vote to approve other system changes. The Participants do not believe 
that this anomaly is warranted. Rather, in their view, the Plan should 
subject all system changes to the same voting requirement. They believe 
that that voting requirement should be a majority vote. A majority 
voting requirement rather than unanimity would afford the Participants 
greater flexibility and make it easier for the Participants to arrive 
at decisions regarding necessary system upgrades and changes. The 
Participants note that the CTA Plan, the CQ Plan and the OPRA Plan all 
require a majority

[[Page 60204]]

vote for decisions relating to system changes.
(c) Processor Selection Procedures
    Section V (E) of the Plan sets forth a series of guidelines for the 
Participants to follow in establishing procedures for selecting a new 
processor. That section currently subjects the Participants' approval 
of those procedures to a two-thirds majority vote. In the Participants' 
view, a majority vote of the Participants, rather than a two-thirds 
vote, is the appropriate voting requirement for approval of the 
procedures for selecting a new processor. This vote is only to 
establish the selection procedures. Because the Participants may have 
divergent views on the form that those procedures should take, a 
majority vote makes it easier for the Participants to arrive at a 
decision. The Participants note that the CTA Plan, the CQ Plan and the 
OPRA Plan all require a majority vote for decisions relating to 
procedures for selecting a new processor.
(d) Processor Selection
    The Plan does not currently specify the voting requirement for 
selecting a new processor. Since the Plan is silent, the applicable 
voting requirement would be the requirement that applies to matters for 
which the Plan does not specify a voting requirement. That default 
voting requirement is currently unanimity, but, as discussed above, the 
amendment seeks to change that to a majority vote. The Participants 
believe that a unanimous vote could make it too difficult for the 
Participants to arrive at a decision and that a matter as significant 
as selecting a Plan processor should require more than a simple 
majority vote. In their view, a two-thirds majority vote strikes the 
right balance of requiring a strong consensus without allowing a single 
Participant or a small number of Participants to block the selection of 
a new processor.
(e) Default Voting Requirement
    The Plan currently requires a unanimous vote in respect of any 
matter for which the Plan does not specify a voting requirement. This 
requirement can make it unwieldy for the Participants to act, as all 
Participants do not always agree on every matter. The Participants 
believe that the affirmative vote of a majority of Participants 
provides greater flexibility and facilitates their ability to take 
action under the Plan. They note that the CTA Plan, the CQ Plan and the 
OPRA Plan all require majority votes to act on matters for which those 
plans do not specify a voting requirement.

2. Governing or Constituent Documents

    Not applicable.

3. Implementation of Amendment

    All of the Participants have manifested their approval of the 
proposed amendment by means of their execution of the amendment. The 
Plan amendment would become operational upon approval by the 
Commission.

4. Development and Implementation Phases

    Not applicable.

5. Analysis of Impact on Competition

    The proposed amendment does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Exchange Act. The Participants do not believe that the proposed 
plan amendments introduce terms that are unreasonably discriminatory 
for the purposes of Section 11A(c)(1)(D) of the Exchange Act.

6. Written Understanding or Agreements Relating to Interpretation of, 
or Participation in, Plan

    Not applicable.

7. Approval by Sponsors in Accordance With Plan

    See Item A(3) above.

8. Description of Operation of Facility Contemplated by the Proposed 
Amendment

    Not applicable.

9. Terms and Conditions of Access

    See Item A(1) above.

10. Method of Determination and Imposition, and Amount of, Fees and 
Charges

    See Item A(1) above.

11. Method and Frequency of Processor Evaluation

    Not applicable.

12. Dispute Resolution

    Not applicable.

B. Rule 601(a)

1. Reporting Requirements

    Not applicable.

2. Manner of Collecting, Processing, Sequencing, Making Available and 
Disseminating Last Sale Information

    Not applicable.

3. Manner of Consolidation

    Not applicable.

4. Standards and Methods Ensuring Promptness, Accuracy and Completeness 
of Transaction Reports

    Not applicable.

5. Rules and Procedures Addressed to Fraudulent or Manipulative 
Dissemination

    Not applicable.

6. Terms of Access to Transaction Reports

    Not applicable.

7. Identification of Marketplace of Execution

    Not Applicable.

III. Solicitation of Comments

    The Commission seeks general comments on Amendment No. 32. 
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 Brent J. Fields, 
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

[[Page 60205]]

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 10:00 
a.m. and 3:00 p.m. Copies of the filing also will be available for Web 
site viewing and printing at the Office of the Secretary of the 
Committee, currently located at the CBOE, 400 S. LaSalle Street, 
Chicago, IL 60605. All comments received will be posted without change; 
the Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number S7-24-
89 and should be submitted on or before October 27, 2014.
---------------------------------------------------------------------------

    \4\ 17 CFR 200.30-3(a)(27).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\4\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-23655 Filed 10-3-14; 8:45 am]
BILLING CODE 8011-01-P
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