[Federal Register Volume 80, Number 34 (Friday, February 20, 2015)]
[Notices]
[Pages 9284-9285]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-03521]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74264; File No. SR-CTA-2014-04]


Consolidated Tape Association; Order Approving the Nineteenth 
Substantive Amendment to the Second Restatement of the Consolidated 
Tape Association Plan

February 12, 2015.

I. Introduction

    On December 24, 2014, the Consolidated Tape Association (``CTA'') 
Plan participants (collectively the ``Participants'') \1\ filed with 
the Securities and Exchange Commission (``SEC'' or ``Commission'') 
pursuant to Section 11A of the Securities Exchange Act of 1934 
(``Act''),\2\ and Rule 608 thereunder,\3\ a proposal to amend the 
Second Restatement of the CTA Plan (``CTA Plan'').\4\ The proposal 
represents the nineteenth substantive amendment to the CTA Plan 
(``Nineteenth Amendment to the CTA Plan''), and reflects changes 
unanimously adopted by the Participants. The Nineteenth Amendment to 
the CTA Plan (``Amendment'') would reduce the maximum time within which 
Participants must report trades from 90 seconds to 10 seconds, subject 
to the Participants' obligation to report trades as soon as 
practicable. The proposed Amendment was published for comment in the 
Federal Register on January 7, 2015.\5\ No comment letters were 
received in response to the Notice. This order approves the proposed 
Amendment to the Plan.
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    \1\ Each participant executed the proposed amendment. 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, Inc., New York Stock 
Exchange LLC (``NYSE''), NYSE Arca, Inc. and NYSE MKT LLC (formerly 
NYSE Amex, Inc.).
    \2\ 15 U.S.C. 78k-1.
    \3\ 17 CFR 242.608.
    \4\See Securities Exchange Act Release No. 10787 (May 10, 1974), 
39 FR 1799 (declaring the CTA Plan effective). 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.
    \5\ See Securities Exchange Act Release No. 73971 (December 31, 
2014), 80 FR 908 (``Notice'').
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II. Description of the Proposal

    Currently, Section VIII(a) (Responsibility of Exchange 
Participants) of the CTA Plan provides that each Participant will ``(i) 
report all last sale prices relating to transactions in Eligible 
Securities as promptly as possible, (ii) establish and maintain 
collection and reporting procedures and facilities such as to assure 
that under normal conditions not less than 90% of such last sale prices 
will be reported within that period of time (not in excess of one and 
one-half minutes) after the time of execution as may be determined by 
CTA from time to time in light of experience, and (iii) designate as 
``late'' any last sale price not collected and reported in accordance 
with the above-referenced procedures.''
    The Amendment proposes to shorten the maximum time within which 
Participants must report trades from 90 seconds to 10 seconds, subject 
to the Participants' obligation to report trades as soon as 
practicable. It also proposes to remove the qualifier that called for 
trade reports to meet the time requirement not less than 90 percent of 
the time under normal conditions.

III. Discussion

    After careful review, the Commission finds that the proposed 
Amendment to the Plan is consistent with the requirements of the Act 
and the rules

[[Page 9285]]

and regulations thereunder,\6\ and, in particular, Section 11A(a)(1) of 
the Act \7\ and Rule 608 thereunder \8\ in that it is necessary or 
appropriate in the public interest, for the protection of investors and 
the maintenance of fair and orderly markets, to remove impediments to, 
and perfect the mechanisms of, a national market system.
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    \6\ The Commission has considered the proposed amendment's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
    \7\ 15 U.S.C. 78k-1(a)(1).
    \8\ 17 CFR 240.608.
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    The proposal is consistent with Section 11A(a)(1)(C)(iii) of the 
Act,\9\ which sets forth Congress' finding that it is in the public 
interest and appropriate for the protection of investors and the 
maintenance of fair and orderly markets to assure the availability to 
brokers, dealers, and investors of information with respect to 
quotations and transactions in securities. These goals are furthered by 
the proposed changes requiring that Participants report trades as soon 
as practicable, but no later than 10 seconds, following execution (or 
cancellation, as applicable) as they bring the trade reporting 
requirement more in line with current industry practice, as the markets 
have become more automated and more efficient. In addition, the change 
will make the trade reporting requirement consistent across the two 
transaction reporting plans for equity securities \10\ and FINRA.\11\
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    \9\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \10\ The participants 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 Privileges Basis 
(``Nasdaq/UTP Plan'') also proposed to amend the trade reporting 
requirement under the Nasdaq/UTP Plan to require that transactions 
be reported as soon as practicable, but no later than 10 seconds 
following execution. See Securities Exchange Act Release No. 73970 
(December 31, 2014), 80 FR 910 (January 7, 2015) (File No. S7-24-89) 
(Notice of Filing of Amendment No. 34 to the Nasdaq/UTP Plan).
    \11\ See Securities Exchange Act Release No. 69561 (May 13, 
2013), 78 FR 29190 (May 17, 2013) (File No. SR-FINRA-2013-013) 
(order approving FINRA rule to require FINRA members to report over-
the-counter transactions in Eligible Securities to FINRA as soon as 
practicable, but no later than 10 seconds following execution).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 11A of the Act,\12\ 
and the rules thereunder, that the proposed Amendment to the CTA Plan 
(File No. SR-CTA-2014-04) is approved.
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    \12\ 15 U.S.C. 78k-1.
    \13\ 17 CFR 200.30-3(a)(27).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Brent J. Fields,
Secretary.
[FR Doc. 2015-03521 Filed 2-19-15; 8:45 am]
BILLING CODE 8011-01-P