[Federal Register Volume 62, Number 234 (Friday, December 5, 1997)]
[Notices]
[Pages 64414-64415]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31878]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39370; File No. SR-CTA/CQ-97-3]


Consolidated Tape Association; Notice of Filing and Immediate 
Effectiveness of Third Charges Amendment to the Second Restatement of 
the Consolidated Tap Association Plan and Second Charges Amendment to 
the Restated Consolidated Quotation Plan

November 26, 1997.
    Pursuant to rule 11Aa3-2 of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 25, 1997, the 
Consolidated Tap Association (``CTA'') and the Consolidated Quotation 
(``CQ'') Plan Participants (``Participants'') filed with the Securities 
and Exchange Commission (``Commission'' or ``SEC'') amendments to the 
Restated CTA Plan and CQ Plan. The amendments remove from the Plans' 
rate schedules the Network A ``one-cent-per-quote packet'' fees for the 
interrogation services that vendors offer on a pay-for-use basis and 
recreate the former Network A Class G program classification charge for 
automated voice response services. The Participants recently 
established these charges pursuant to the second charges amendment to 
the Second Restatement of the CTA Plan and the first charges amendment 
to the Restated CQ Plan.
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    \1\ 15 U.S.C. 78k-1.
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    Pursuant to Rule 11Aa3-2(c)(3)(i), the CTA and CQ Participants have 
designated the amendments as establishing or changing fees and other 
charges collected on behalf of all of the sponsors and participants, 
which renders the amendments effective upon receipt of this filing by 
the Commission. The Commission is publishing this notice to solicit 
comments from interested persons on the amendments.

I. Purpose of the Amendments

A. Rule 11Aa3-2

    The Participants under the Plans that make Network A last sale 
information and quotation information available (the ``Network A 
Participants'') recently established a pricing alternative for vendors 
of, and subscribers to, certain Network A market data interrogation 
services.\2\ That alternative consists of a fee of one cent for each 
real-time ``quote packet'' that vendors disseminate to subscribers on a 
pay-for-use basis during the hours that the Network A Participants are 
open for trading (a ``per-quote charge'').
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    \2\ See Securities Exchange Act Release No. 39235 (October 14, 
1997); 62 FR 54886 (October 22, 1997) (``September Plan 
Amendments'').
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    At the same time, the Network A Participants also classified their 
Class G program classification charge as a display device fee, based 
upon device equivalents. That fee is set for any month at the device 
fee that would apply for a number of devices equal to the maximum 
number of inquiries to which a vendor's automated voice response system 
responds simultaneously during that month. As we stated in the 
September Plan Amendments, the reclassification left the amount and 
calculation of the charges unchanged. It did not affect the amounts 
payable by any vendor.
    The amendments remove the per-quote charge from the CTA and CQ Plan 
rate schedules and re-establish the Class G program classification 
charge in a manner identical to its form prior to the September Plan 
Amendments. The reason for these amendments is to comply with a request 
of the staff of the Commission's Division of Market Regulation which 
received an unfavorable comment letter.\3\
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    \3\ See letter from Sam Scott Miller, Vice President and 
Associate Counsel, Orrick, Herrington & Sutcliff LLP, to Jonathan G. 
Katz, Secretary, SEC, dated October 28, 1997.
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B. Governing or Constituent Documents

    Not applicable.

C. Implementation of Amendment

    The Network A Participants are submitting this proposed plan 
amendment pursuant to Rule 11Aa3-2(c)(3)(i) under the Act. In doing so, 
the Participants are putting the revisions to the CTA and CQ Plan rate 
schedules into effect upon the filing of the amendments with the 
Commission. As a result, the removal of the per-quote charge from the 
CTA and CQ Plan schedules, and the re-instatement of the Class G 
program classification charge, will take effect upon submission of the 
plan amendments with the Commission. After filing the amendments with 
the Commission, the Network A Participants will notify affected vendors 
of the rate schedule changes as necessary.

D. Development and Implementation Phases

    See Item I(C).

E. Analysis of Impact on Competition

    The Participants believe the proposed amendments will impose no 
burden on competition.

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

    Not applicable.

G. Approval by Sponsors in Accordance With Plan

    Under Section XII(b)(iii) of the CTA Plan and Section IX(b)(iii) of 
the CQ Plan, each of the Participants must execute a written amendment 
to the Plan before an amendment to that Plan can become effective.

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

    Not applicable.

I. Terms and Conditions of Access

    See Item I(A).

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

    See Item I(A) and the text of the amendments.

K. Method and Frequency of Processor Evaluation

    Not applicable.

L. Dispute Resolution

    Not applicable.

II. Rule 11Aa3-1 (Solely in Its Application to the Amendments to the 
CTA Plan)

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.

[[Page 64415]]

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

    See Item I(A).

G. Identification of Marketplace of Execution

    Not applicable.

III. Solicitation of Comments

    The CTA has designated this proposal as establishing or changing 
fees and other charges collected on behalf of all of the sponsors and 
participants which under Section 11Aa3-2(c)(3)(i) of the Act renders 
the proposal effective upon receipt of this filing by the Commission.
    The Commission may summarily abrogate the amendments within sixty 
days of its filing and require refiling and approval of the amendments 
by Commission order pursuant to 11Aa3-2(c)(3)(iii), if it appears to 
the Commission that such action is necessary or appropriate in the 
public interest, for the protection of investors and 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.
    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for inspection and copying in the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
CTA. All submissions should refer to the file number in the caption 
above and should be submitted by December 29, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\4\
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    \4\ 17 CFR 200,30-3(a)(27)
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-31878 Filed 12-4-97; 8:45 am]
BILLING CODE 8010-01-M