[Federal Register Volume 60, Number 97 (Friday, May 19, 1995)]
[Notices]
[Pages 26910-26911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12311]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-35715; File No. S7-27-93]


Consolidated Tape Association; Order Granting Approval of 
Seventeenth Substantive Amendment to the Restated Consolidated Tape 
Association Plan and Twenty-First Substantive Amendment to the 
Consolidated Quotation Plan

May 12, 1995.

I. Introduction

    On March 9, 1995, the Consolidated Tape Association (``CTA'') and 
consolidated Quotation (``CQ'') Plan Participants filed with the 
Securities and Exchange Commission (``Commission'' or ``SEC'') 
amendments to the Restated CTA Plan and CQ Plan pursuant to Rule 11Aa3-
2 of the Securities Exchange Act of 1934 (``Act''). Notice of the 
filing appeared in the Federal Register on April 3, 1994.\1\ No comment 
letters were received in response to the Notice. For the reasons 
discussed below, the Commission has determined to approve the filing.

    \1\Securities Exchange Act Release No. 35543 (March 28, 1995), 
60 FR 16901.
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II. Description

    The amendments change the procedure for allocating high speed line 
access fee revenues between ``Network A'' and ``Network B'' under each 
plan. Under the new procedure,\2\ the participants will apply 
``relative message usage percentages'' to the allocation of high speed 
line revenues between networks retroactively, beginning with the period 
commencing January 1, 1994.

    \2\A description of the new procedure was included in the Notice 
of Filing of Amendment (see, note 1, supra), and is incorporated by 
reference herein.
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    The amendments also eliminate the requirements that the 
participants set the high speed line access fee at a level designed to 
recover the costs of making the high speed line available, and set 
indirect high speed line access fees at a level that equals one-half of 
the direct [[Page 26911]] access fees. The actual fees currently in 
effect, however, are not changed.
    Prior to this amendment, the participants, under each plan, imposed 
on subscribers, vendors, computer input users and others one combined 
high speed line access fee for access to both Network A and Network B 
market data. These amendments will change the current fee structure and 
replace it with a more appropriate and equitable measure that reflects 
each network's relative usage of the plans' systems.
    Additionally, these amendments will eliminate the current 
requirements to: (a) Set high speed line access fees at levels that 
allow the participants to recover the operating expenses that the 
Processor incurs in making the high speed line available, and (b) set 
indirect high speed line access fees at a level that equals one-half of 
the direct access fees. Those requirements were established over twenty 
years ago. Today's digital data feed and other technologies make high 
speed lines cheaper and easier to access necessitating a change in the 
manner in which the participants determine high speed line access fees. 
The actual fees, however, will not be amended at this time.
III. Discussion
    The Commission has determined that the CTA/CQ Plan amendments are 
consistent with the Act. Rule 11Aa3-2(c)(2) under the Act provides, 
inter alia, that the Commission approve an amendment to an effective 
National Market System plan if it finds that the amendment 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. In making such a determination, 
the Commission must examine Section 11A of the Act and Rule 11Aa3-
2(b)(5), promulgated thereunder. Rule 11Aa3-2(b)(5)(ii) provides that 
every national market system plan, or any amendment thereto, shall 
provide a description of the method by which any fees or charges 
collected on behalf of all of the participants in connection with 
access to, or use of, any facility contemplated by the plan or 
amendment will be determined and imposed (including any provision for 
distribution of any net proceeds from such fees or charges to the 
participants) and the amount of such fees or charges.
    The CTA and CQ Plan Participants have properly described the 
determination, imposition and distribution of the fees and charges that 
are the subject of the proposed amendments. Furthermore, the amendments 
will remove impediments to and perfect the mechanisms of a National 
Market System by instituting a more equitable line access fee that 
reflects actual usage, and by removing certain requirements concerning 
the calculation of line access fees that are no longer appropriate in 
light of technological advances. Accordingly, the Commission finds that 
the adoption of the delineated changes for allocating high speed line 
access fees for both Plans, and the elimination of the above discussed 
requirements concerning the recovery of costs for making high speed 
line available, to be consistent with the Act and the Rules thereunder.
IV. Conclusion
    For the reasons discussed above, the Commission finds that the 
proposed amendments to the CTA and CQ Plans are consistent with the 
Act, particularly Rules 11Aa3-2(c)(2) and 11Aa3-2(b)(5)(ii) thereunder.
    It is therefore ordered, pursuant to Section 11A of the Act, that 
the amendments to the CTA and CQ Plans be, and hereby are, approved.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\3\

    \3\17 CFR 200.30-3(a)(27).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-12311 Filed 5-18-95; 8:45 am]
BILLING CODE 8010-01-M