1396 Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Notices 

23 15 U.S.C. 78s(b)(3)(A). 

24 17 CFR 240.19b–4(f). 25 17 CFR 200.30–3(a)(12). 

1Public Law 114–74 Sec. 701, 129 Stat. 599–601 

(Nov. 2, 2015), codified at 28 U.S.C. 2461 note. 

2Public Law 101–410, 104 Stat. 890–892 (1990), 

codified at 28 U.S.C. 2461 note. 

3Public Law 104–134, Title III, § 31001(s)(1), 110 

Stat. 1321–373 (1996), codified at 28 U.S.C. 2461 

note. 

4See Release Nos. 33–7361, 34–37912, IA–1596, 

IC–22310, dated November 1, 1996 (effective 

December 9, 1996), previously found at 17 CFR 

201.1001 and Table I to Subpart E of Part 201; 

Release Nos. 33–7946, 34–43897, IA–1921, IC– 

24846, dated January 31, 2001 (effective February 

2, 2001), previously found at 17 CFR 201.1002 and 

Table II to Subpart E of Part 201; Release Nos. 33– 

8530, 34–51136, IA–2348, IC–26748, dated 

February 9, 2005 (effective February 14, 2005), 

previously found at 17 CFR 201.1003 and Table III 

to Subpart E of Part 201; Release Nos. 33–9009, 34– 

59449, IA–2845, IC–28635, dated February 25, 2009 

(effective March 3, 2009), previously found at 17 

CFR 201.1004 and Table IV to Subpart E of Part 201; 

and Release Nos. 33–9387, 34–68994, IA–3557, IC– 

30408, dated February 27, 2013 (effective March 5, 

2013), previously found at 17 CFR 201.1005 and 

Table V to Subpart E of Part 201. The penalty 

amounts contained in these releases have now been 

consolidated into Table I to 17 CFR 201.1001. 

are not present here. The proposed 

changes are limited to fees for Internal 

Distributers who use the data for 

internal use only and not for the 

redistribution and sale to external 

parties. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received from 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the Proposed 

Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 23 and paragraph (f) of Rule 

19b–4 thereunder.24 At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CboeBZX–2017–019 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 SR–CboeBZX–2017–019. 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 website (http://www.sec.gov/ 

rules/sro.shtml). 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 website 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 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–CboeBZX–2017–019 and 

should be submitted on or before 

February 1, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00309 Filed 1–10–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release Nos. 33–10451; 34–82455; IA– 

4842; IC–32963] 

Adjustments to Civil Monetary Penalty 

Amounts 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Notice of annual inflation 

adjustment of civil monetary penalties. 

SUMMARY: The Securities and Exchange 

Commission (the ‘‘Commission’’) is 

publishing this notice pursuant to the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (the ‘‘2015 Act’’). This Act requires 

all agencies to annually adjust for 

inflation the civil monetary penalties 

that can be imposed under the statutes 

administered by the agency and publish 

the adjusted amounts in the Federal 

Register. This notice sets forth the 

annual inflation adjustment of the 

maximum amount of civil monetary 

penalties (‘‘CMPs’’) administered by the 

Commission under the Securities Act of 

1933, the Securities Exchange Act of 

1934 (the ‘‘Exchange Act’’), the 

Investment Company Act of 1940, the 

Investment Advisers Act of 1940, and 

certain penalties under the SarbanesOxley Act of 2002. These amounts are 

effective beginning on January 15, 2018, 

and will apply to all penalties imposed 

after that date for violations of the 

aforementioned statutes that occurred 

after November 2, 2015. 

FOR FURTHER INFORMATION CONTACT: 

James A. Cappoli, Assistant General 

Counsel, Office of the General Counsel, 

at (202) 551–7923, or Stephen M. Ng, 

Senior Special Counsel, Office of the 

General Counsel, at (202) 551–7957. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This notice is being published 

pursuant to the 2015 Act,1 which 

amended the Federal Civil Penalties 

Inflation Adjustment Act of 1990 (the 

‘‘Inflation Adjustment Act’’).2 The 

Inflation Adjustment Act previously had 

been amended by the Debt Collection 

Improvement Act of 1996 (the ‘‘DCIA’’) 3

to require that each federal agency adopt 

regulations at least once every four years 

that adjust for inflation the CMPs that 

can be imposed under the statutes 

administered by the agency. Pursuant to 

this requirement, the Commission 

previously adopted regulations in 1996, 

2001, 2005, 2009, and 2013 to adjust the 

maximum amount of the CMPs that 

could be imposed under the statutes the 

Commission administers.4

The 2015 Act replaces the inflation 

adjustment formula prescribed in the 

DCIA with a new formula for calculating 

the inflation-adjusted amount of CMPs. 

The 2015 Act requires that agencies use 

this new formula to re-calculate the 

inflation-adjusted amounts of the 


srobinson on DSK9F5VC42PROD with NOTICES
Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Notices 1397 

5 28 U.S.C. 2461 note Sec. 4. 

6Release Nos. 33–10276; 34–79749; IA–4599; IC– 

32414 (effective Jan. 18, 2017). 

7 28 U.S.C. 2461 note Sec. 3(2). 

8 15 U.S.C. 7215(c)(4)(D). 

9The Commission may by order affirm, modify, 

remand, or set aside sanctions, including civil 

monetary penalties, imposed by the PCAOB. See 

Section 107(c) of the Sarbanes-Oxley Act of 2002, 

15 U.S.C. 7217. The Commission may enforce such 

orders in federal district court pursuant to Section 

21(e) of the Exchange Act. As a result, penalties 

assessed by the PCAOB in its disciplinary 

proceedings are penalties ‘‘enforced’’ by the 

Commission for purposes of the Inflation 

Adjustment Act. See Adjustments to Civil Monetary 

Penalty Amounts, Release No. 33–8530 (Feb. 4, 

2005) [70 FR 7606 (Feb. 14, 2005)]. 

10 28 U.S.C. 2461 note Sec. 5. 

11Office of Management and Budget, 

Implementation of Penalty Inflation Adjustments 

for 2018, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 2015 

(December 15, 2017), available at https://

www.whitehouse.gov/wp-content/uploads/2017/11/ 

M-18-03.pdf. This multiplier represents the 

percentage increase between the October 2016 CPI– 

U and the October 2017 CPI–U, plus 1. 

12 15 U.S.C. 78u–1(a)(3). 

penalties they administer on an annual 

basis and publish these new amounts in 

the Federal Register by January 15 of 

each year.5 The Commission previously 

published the first annual adjustment 

required by the 2015 Act on January 6, 

2017 (the ‘‘2017 Adjustment’’).6 As part 

of the 2017 Adjustment, the 

Commission promulgated 17 CFR 

201.1001(a) and Table I to Subsection 

1001, which lists the penalty amounts 

for all violations that occurred on or 

before November 2, 2015. For violations 

occurring after November 2, 2015, 

Subsection 1001(b) provides that the 

applicable penalty amounts will be 

adjusted annually based on the formula 

set forth in the 2015 Act. Subsection 

1001(b) further provides that these 

adjusted amounts will be published in 

the Federal Register and on the 

Commission’s website. 

A CMP is defined in relevant part as 

any penalty, fine, or other sanction that: 

(1) Is for a specific amount, or has a 

maximum amount, as provided by 

federal law; and (2) is assessed or 

enforced by an agency in an 

administrative proceeding or by a 

federal court pursuant to federal law.7

This definition applies to the monetary 

penalty provisions contained in four 

statutes administered by the 

Commission: The Securities Act, the 

Exchange Act, the Investment Company 

Act, and the Investment Advisers Act. 

In addition, the Sarbanes-Oxley Act of 

2002 provides the Public Company 

Accounting Oversight Board (the 

‘‘PCAOB’’) authority to levy civil 

monetary penalties in its disciplinary 

proceedings pursuant to 15 U.S.C. 

7215(c)(4)(D).8 The definition of a CMP 

in the Inflation Adjustment Act 

encompasses such civil monetary 

penalties.9

II. Adjusting the commission’s penalty 

amounts for inflation 

This notice sets forth the annual 

inflation adjustment required by the 

2015 Act for all CMPs under the 

Securities Act, the Exchange Act, the 

Investment Company Act, and the 

Investment Advisers Act, and certain 

civil monetary penalties under the 

Sarbanes-Oxley Act. 

Pursuant to the 2015 Act, the penalty 

amounts in the 2017 Adjustment are 

adjusted for inflation by increasing them 

by the percentage change between the 

Consumer Price Index for all Urban 

Consumers (‘‘CPI–U’’) for October 2016 

and the October 2017 CPI–U.10 OMB has 

provided its calculation of this 

multiplier (the ‘‘CPI–U Multiplier’’) to 

agencies.11 The new penalty amounts 

are determined by multiplying the 

current penalty amounts by the CPI–U 

Multiplier and then rounding to the 

nearest dollar. 

For example, the CMP for certain 

insider trading violations by controlling 

persons under Exchange Act Section 

21A(a)(3) 12 was readjusted for inflation 

as part of the 2017 Adjustment to 

$2,011,061. To determine the new CMP 

under this provision, the Commission 

multiplies this amount by the CPI–U 

Multiplier of 1.02041, and rounds to the 

nearest dollar. Thus, the new CMP for 

Exchange Act Section 21A(a)(3) is 

$2,052,107. 

Below is the Commission’s 

calculation of the new penalty amounts 

for the penalties it administers: 

U.S. Code citation Civil monetary penalty description 

2017 

Adjustment 

penalty 

amounts 

CPI–U 

multiplier 

2018 

Adjusted 

penalty 

amounts 

15 U.S.C. 77h–1(g) (Securities Act Sec. 

8A(g)).

For natural person .......................................... $8,289 1.02041 $8,458 

For any other person ..................................... 82,893 1.02041 84,585 

For natural person/fraud ................................ 82,893 1.02041 84,585 

For any other person/fraud ............................ 414,466 1.02041 422,925 

For natural person/fraud/substantial losses or 

risk of losses to others or gains to self.

165,787 1.02041 169,171 

For any other person/fraud/substantial losses 

or risk of losses to others or gain to self.

801,299 1.02041 817,654 

15 U.S.C. 77t(d) (Securities Act Sec. 20(d)) .. For natural person .......................................... 9,054 1.02041 9,239 

For any other person ..................................... 90,535 1.02041 92,383 

For natural person/fraud ................................ 90,535 1.02041 92,383 

For any other person/fraud ............................ 452,677 1.02041 461,916 

For natural person/fraud/substantial losses or 

risk of losses to others.

181,071 1.02041 184,767 

For any other person/fraud/substantial losses 

or risk of losses to others.

905,353 1.02041 923,831 

15 U.S.C. 78u(d)(3) (Exchange Act Sec. 

21(d)(3)).

For natural person .......................................... 9,054 1.02041 9,239 

For any other person ..................................... 90,535 1.02041 92,383 

For natural person/fraud ................................ 90,535 1.02041 92,383 

For any other person/fraud ............................ 452,677 1.02041 461,916 

For natural person/fraud/substantial losses or 

risk of losses to others or gains to self.

181,071 1.02041 184,767 

For any other person/fraud/substantial losses 

or risk of losses to others or gain to self.

905,353 1.02041 923,831 

15 U.S.C. 78u–1(a)(3) (Exchange Act Sec. 

21A(a)(3)).

Insider Trading—controlling person ............... 2,011,061 1.02041 2,052,107 


srobinson on DSK9F5VC42PROD with NOTICES
1398 Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Notices 

13The penalty amounts in this notice are being 

published in the Federal Register and will not be 

added to the Code of Federal Regulations in 

accordance with the 2015 Act and 17 CFR 

201.1001(b). See 28 U.S.C. 2461 note Sec. 4(a)(2); 

17 CFR 201.1001(b). In addition to being published 

in the Federal Register, the penalty amounts in this 

notice will be made available on the Commission’s 

website at https://www.sec.gov/enforce/civilpenalties-inflation-adjustments.htm, as detailed in 

17 CFR 201.1001(b). This website also lists the 

penalty amounts for violations that occurred on or 

before November 2, 2015. 

14 17 CFR 201.1001(a). 

U.S. Code citation Civil monetary penalty description 

2017 

Adjustment 

penalty 

amounts 

CPI–U 

multiplier 

2018 

Adjusted 

penalty 

amounts 

15 U.S.C. 78u–2 (Exchange Act Sec. 21B) ... For natural person .......................................... 9,054 1.02041 9,239 

For any other person ..................................... 90,535 1.02041 92,383 

For natural person/fraud ................................ 90,535 1.02041 92,383 

For any other person/fraud ............................ 452,677 1.02041 461,916 

For natural person/fraud/substantial losses or 

risk of losses to others.

181,071 1.02041 184,767 

For any other person/fraud/substantial losses 

or risk of losses to others.

905,353 1.02041 923,831 

15 U.S.C. 78ff(b) (Exchange Act Sec. 32(b)) Exchange Act/failure to file information documents, reports.534 1.02041 545 

15 U.S.C. 78ff(c)(1)(B) (Exchange Act Sec. 

32(c)(1)(B)).

Foreign Corrupt Practices—any issuer .......... 20,111 1.02041 20,521 

15 U.S.C. 78ff(c)(2)(B) (Exchange Act Sec. 

32(c)(2)(B)).

Foreign Corrupt Practices—any agent or 

stockholder acting on behalf of issuer.

20,111 1.02041 20,521 

15 U.S.C. 80a–9(d) (Investment Company 

Act Sec. 9(d)).

For natural person .......................................... 9,054 1.02041 9,239 

For any other person ..................................... 90,535 1.02041 92,383 

For natural person/fraud ................................ 90,535 1.02041 92,383 

For any other person/fraud ............................ 452,677 1.02041 461,916 

For natural person/fraud/substantial losses or 

risk of losses to others or gains to self.

181,071 1.02041 184,767 

For any other person/fraud/substantial losses 

or risk of losses to others or gain to self.

905,353 1.02041 923,831 

15 U.S.C. 80a–41(e) (Investment Company 

Act Sec. 42(e)).

For natural person .......................................... 9,054 1.02041 9,239 

For any other person ..................................... 90,535 1.02041 92,383 

For natural person/fraud ................................ 90,535 1.02041 92,383 

For any other person/fraud ............................ 452,677 1.02041 461,916 

For natural person/fraud/substantial losses or 

risk of losses to others.

181,071 1.02041 184,767 

For any other person/fraud/substantial losses 

or risk of losses to others.

905,353 1.02041 923,831 

15 U.S.C. 80b–3(i) (Investment Advisers Act 

Sec. 203(i)).

For natural person .......................................... 9,054 1.02041 9,239 

For any other person ..................................... 90,535 1.02041 92,383 

For natural person/fraud ................................ 90,535 1.02041 92,383 

For any other person/fraud ............................ 452,677 1.02041 461,916 

For natural person/fraud/substantial losses or 

risk of losses to others or gains to self.

181,071 1.02041 184,767 

For any other person/fraud/substantial losses 

or risk of losses to others or gain to self.

905,353 1.02041 923,831 

15 U.S.C. 80b–9(e) (Investment Advisers Act 

Sec. 209(e)).

For natural person .......................................... 9,054 1.02041 9,239 

For any other person ..................................... 90,535 1.02041 92,383 

For natural person/fraud ................................ 90,535 1.02041 92,383 

For any other person/fraud ............................ 452,677 1.02041 461,916 

For natural person/fraud/substantial losses or 

risk of losses to others.

181,071 1.02041 184,767 

For any other person/fraud/substantial losses 

or risk of losses to others.

905,353 1.02041 923,831 

15 U.S.C. 7215(c)(4)(D)(i) (Sarbanes-Oxley 

Act Sec. 105(c)(4)(D)(i)).

For natural person .......................................... 133,331 1.02041 136,052 

For any other person ..................................... 2,666,624 1.02041 2,721,050 

15 U.S.C. 7215(c)(4)(D)(ii) (Sarbanes-Oxley 

Act Sec. 105(c)(4)(D)(ii)).

For natural person .......................................... 999,984 1.02041 1,020,394 

For any other person ..................................... 19,999,678 1.02041 20,407,871 

Pursuant to the 2015 Act and 17 CFR 

201.1001, the adjusted penalty amounts 

in this notice (and all penalty 

adjustments performed pursuant to the 

2015 Act) apply to penalties imposed 

after the date the adjustment is effective 

for violations that occurred after 

November 2, 2015, the 2015 Act’s 

enactment date. These penalty amounts 

supersede the amounts in the 2017 

Adjustment.13 For violations that occurred on or before November 2, 

2015, the penalty amounts in Table I to 

17 CFR 201.1001 continue to apply.14

By the Commission. 


srobinson on DSK9F5VC42PROD with NOTICES
Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Notices 1399 

1On February 27, 2015, BATS–Y Exchange, Inc. 

(n/k/a Cboe BYX Exchange, Inc.), BATS Exchange, 

Inc. (n/k/a Cboe BZX Exchange, Inc.), BOX Options 

Exchange LLC, C2 Options Exchange, Incorporated 

(n/k/a Cboe C2 Exchange, Inc.), Chicago Board 

Options Exchange, Incorporated (n/k/a Cboe 

Exchange, Inc.), Chicago Stock Exchange, Inc., 

EDGA Exchange, Inc. (n/k/a Cboe EDGA Exchange, 

Inc.), EDGX Exchange, Inc. (n/k/a Cboe EDGX 

Exchange, Inc.), Financial Industry Regulatory 

Authority, Inc., International Securities Exchange, 

LLC (n/k/a Nasdaq ISE, LLC), ISE Gemini, LLC (n/ 

k/a Nasdaq GEMX, LLC), Miami International 

Securities Exchange LLC, NASDAQ OMX BX, Inc. 

(n/k/a Nasdaq BX, Inc.), NASDAQ OMX PHLX LLC 

(n/k/a Nasdaq PHLX LLC), The NASDAQ Stock 

Market LLC, National Stock Exchange, Inc. (n/k/a 

NYSE National, Inc.), New York Stock Exchange 

LLC, NYSE MKT LLC (n/k/a NYSE American LLC), 

and NYSE Arca, Inc. filed with the Commission, 

pursuant to Section 11A of the Exchange Act and 

Rule 608 of Regulation NMS thereunder, the CAT 

NMS Plan. 15 U.S.C. 78k–1; 17 CFR 242.608. The 

Plan was published for comment in the Federal 

Register on May 17, 2016, and approved by the 

Commission, as modified, on November 15, 2016. 

See Securities Exchange Act Release Nos. 77724 

(April 27, 2016), 81 FR 30614 (May 17, 2016); 79318 

(November 15, 2016), 81 FR 84696 (November 23, 

2016). On January 30, 2017, the Commission 

noticed for immediate effectiveness an amendment 

to the Plan to add MIAX PEARL, LLC as a 

Participant. See Securities Exchange Act Release 

No. 79898, 82 FR 9250 (February 3, 2017). 

2 15 U.S.C 78k–1(a)(3). 

3 17 CFR 242.608. 

4See Letter from Michael Simon, CAT NMS Plan 

Operating Committee Chair, to Brent J. Fields, 

Secretary, Commission, dated December 11, 2017 

(‘‘Transmittal Letter’’). The Participants previously 

submitted an amendment to the CAT NMS Plan to 

establish Participant fees (‘‘Amendment No. 2’’). 

See Letter from Michael Simon, Chair, CAT NMS 

Plan Operating Committee, to Brent J. Fields, 

Secretary, Commission, dated May 22, 2017. See 

also Securities Exchange Act Release No. 80930 

(June 14, 2017), 82 FR 28180 (June 20, 2017), 

available at https://www.sec.gov/rules/sro/nms/ 

2017/34-80930.pdf. The Commission issued an 

Order of Summary Abrogation of Amendment No. 

2 on July 21, 2017, concluding that the amendment 

raised concerns and the justifications provided by 

the Participants were not sufficient for the 

Commission to determine whether the amendment 

was consistent with the Act. See Securities and 

Exchange Commission Release No. 81189 (July 21, 

2017), 82 FR 35005 (July 27, 2017). On October 30, 

2017, the Participants filed Amendment No. 3 to the 

CAT NMS Plan, which has been withdrawn and 

replaced and superseded in its entirety by 

Amendment No. 4. 

5 17 CFR 242.608. 

6See 17 CFR 242.608(a)(4) and (a)(5). 

7See Transmittal Letter, supra note 4. 

Dated: January 2018. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–00387 Filed 1–10–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82451; File No. 4–698] 

Joint Industry Plan; Notice of Filing 

and Immediate Effectiveness of 

Amendment No. 4 to the National 

Market System Plan Governing the 

Consolidated Audit Trail by Cboe BYX 

Exchange, Inc., Cboe BZX Exchange, 

Inc., Cboe EDGA Exchange, Inc., Cboe 

EDGX Exchange, Inc., BOX Options 

Exchange LLC, Cboe C2 Exchange, 

Inc., Cboe Exchange, Inc., Chicago 

Stock Exchange, Inc., Financial 

Industry Regulatory Authority, Inc., 

Investors’ Exchange LLC, Miami 

International Securities Exchange, 

LLC, MIAX PEARL, LLC, Nasdaq BX, 

Inc., Nasdaq GEMX, LLC, Nasdaq ISE, 

LLC, Nasdaq MRX, LLC, Nasdaq PHLX 

LLC, The Nasdaq Stock Market LLC, 

New York Stock Exchange LLC, NYSE 

Arca, Inc., NYSE American, LLC and 

NYSE National, Inc. 

January 5, 2018. 

I. Introduction 

On December 11, 2017, the Operating 

Committee for CAT NMS, LLC (the 

‘‘Company’’), on behalf of the following 

parties to the National Market System 

Plan Governing the Consolidated Audit 

Trail (the ‘‘CAT NMS Plan’’ or ‘‘Plan’’): 1

Cboe BYX Exchange, Inc., (previously 

known as Bats BYX Exchange, Inc.), 

Cboe BZX Exchange, Inc. (previously 

known as Bats BZX Exchange), Inc., 

Cboe EDGA Exchange, Inc. (previously 

known as Bats EDGA Exchange, Inc.), 

Cboe EDGX Exchange, Inc. (previously 

known as Bats EDGX Exchange, Inc.), 

BOX Options Exchange LLC, Cboe C2 

Exchange, Inc., Cboe Exchange, Inc., 

Chicago Stock Exchange, Inc., Financial 

Industry Regulatory Authority, Inc., 

Nasdaq ISE, LLC (previously known as 

International Securities Exchange, Inc.), 

Investors’ Exchange, LLC, Nasdaq 

GEMX (previously known as ISE 

Gemini, LLC), Nasdaq MRX (previously 

known as ISE Mercury, LLC), Miami 

International Securities Exchange, LLC, 

MIAX PEARL, LLC, Nasdaq BX, Inc. 

(previously known as NASDAQ BX, 

Inc.), Nasdaq PHLX LLC (previously 

known as NASDAQ PHLX LLC), The 

NASDAQ Stock Market LLC, National 

Stock Exchange, Inc., New York Stock 

Exchange LLC, NYSE Arca, Inc., and 

NYSE American (previously known as 

NYSE MKT, LLC) (collectively, the 

‘‘Participants,’’ ‘‘self-regulatory 

organizations’’ or ‘‘SROs’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’ or ‘‘SEC’’) pursuant to 

Section 11A(a)(3) of the Securities 

Exchange Act of 1934 (‘‘Exchange 

Act’’) 2 and Rule 608 thereunder,3 a 

proposal to amend the Plan 

(‘‘Amendment No. 4’’).4 The proposed 

amendment would add a fee schedule to 

a new Exhibit B of the Plan which sets 

forth the CAT fees to be paid by the 

Participants. A copy of proposed Exhibit 

B to the CAT NMS Plan is attached as 

Appendix A hereto. The Participants 

have also included, and as attached 

hereto, an Appendix B containing two 

charts, one listing the current Equity 

Execution Venues, each with its rank 

and tier, and one listing the current 

Options Execution Venues, each with its 

rank and tier. The Commission is 

publishing this notice to solicit 

comments from interested persons on 

Amendment No. 4.5

II. Description of the Plan 

Set forth in this Section II is the 

statement of the purpose and summary 

of Amendment No. 4, along with the 

information required by Rule 608(a)(4) 

and (5) under the Exchange Act,6

prepared and submitted by the 

Participants to the Commission.7

A. Description of the Amendments to 

the CAT NMS Plan 

(1) Executive Summary 

The following provides an executive 

summary of the CAT funding model 

approved by the Operating Committee, 

as well as Participants’ obligations 

related to the payment of CAT Fees 

calculated pursuant to the CAT funding 

model. A detailed description of the 

CAT funding model and the CAT Fees 

follows this executive summary. 

• CAT Costs. The CAT funding model 

is designed to establish CAT-specific 

fees to collectively recover the costs of 

building and operating the CAT from all 

CAT Reporters, including Industry 

Members and Participants. The overall 

CAT costs used in calculating the CAT 

Fees in this fee filing are comprised of 

Plan Processor CAT costs and non-Plan 

Processor CAT costs incurred, and 

estimated to be incurred, from 

November 21, 2016 through November 

21, 2017. Although the CAT costs from 

November 21, 2016 through November 

21, 2017 were used in calculating the 

CAT Fees, the CAT Fees set forth in this 

fee filing would be in effect until the 

automatic sunset date, as discussed 

below. (See Section A(2)(E) below) 

• Bifurcated Funding Model. The 

CAT NMS Plan requires a bifurcated 

funding model, where costs associated 

with building and operating the CAT 

would be borne by (1) Participants and 

Industry Members that are Execution 

Venues for Eligible Securities through 

fixed tier fees based on market share, 

and (2) Industry Members (other than 

alternative trading systems (‘‘ATSs’’) 

that execute transactions in Eligible 

Securities (‘‘Execution Venue ATSs’’)) 

through fixed tier fees based on message 

traffic for Eligible Securities. (See 

Section A(2) below) 


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