Federal Register / Vol. 75, No. 181 / Monday, September 20, 2010 / Notices 57307 

1 15 U.S.C. 78k–1. 

2 17 CFR 242.608. 

3Each participant executed the proposed 

amendment. The Participants are: BATS Exchange, 

Inc.; Chicago Board Options Exchange, Inc.; 

Chicago Stock Exchange, Inc.; Financial Industry 

Regulatory Authority, Inc.; International Securities 

Exchange, LLC; NASDAQ OMX BX, Inc.; NASDAQ 

OMX PHLX, Inc.; The NASDAQ Stock Market LLC; 

National Stock Exchange, Inc.; New York Stock 

Exchange LLC; NYSE Amex LLC; and NYSE Arca, 

Inc. 

4See Securities Exchange Act Release No. 10787 

(May 10, 1974), 39 FR 17799 (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. 

unless it displays a currently valid 

control number. 

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 e-mail to: 

Shagufta_Ahmed@omb.eop.gov; and (ii) 

Charles Boucher, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way, 

Alexandria, VA 22312 or send an e-mail 

to: PRA_Mailbox@sec.gov. Comments 

must be submitted within 30 days of 

this notice. 

September 14, 2010. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–23410 Filed 9–17–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62906; File No. SR–CTA– 

2010–01] 

Consolidated Tape Association; Notice 

of Filing and Immediate Effectiveness 

of the Fourteenth Charges Amendment 

to the Second Restatement of the 

Consolidated Tape Association Plan 

September 14, 2010. 

Pursuant to Section 11A of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 608 thereunder,2

notice is hereby given that on July 6, 

2010, the Consolidated Tape 

Association (‘‘CTA’’) Plan participants 

(‘‘Participants’’) 3 filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposal to amend the 

Second Restatement of the CTA Plan 

(the ‘‘CTA Plan’’).4 The proposal 

represents the fourteenth charges 

amendment to the CTA Plan 

(‘‘Fourteenth Charges Amendment’’), 

and reflects changes unanimously 

adopted by the Participants. The 

Fourteenth Charges Amendment 

proposes: (1) Permanent approval of fees 

that apply to a vendor’s dissemination 

of a real-time Network B last sale price 

information ticker over broadcast, cable 

or satellite television; and, (2) an update 

of the automatic annual increase to the 

amount of the broker-dealer enterprise 

maximum monthly charge. Pursuant to 

Rule 608(b)(3) under Regulation NMS, 

the Participants designate the 

amendment as establishing or changing 

a fee or other charge collected on their 

behalf in connection with access to, or 

use of, the facilities contemplated by the 

Plans. As a result, the amendment 

becomes effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments from interested persons on 

the proposed Amendment. 

I. Rule 608(a) 

A. Description and Purpose of the 

Amendments 

1. Network B Television Ticker Fees 

The amendment seeks to establish as 

a permanent part of the Network B rate 

schedule a tiered fee structure 

applicable to vendors that disseminate a 

real-time Network B ticker over 

broadcast, cable or satellite television 

(‘‘Television Vendors’’). 

The proposed tiered fee structure is 

identical to the fee structure that the 

Network B Participants have imposed 

on Television Vendors for several years 

as part of an extended pilot program. 

Currently, Network B had two 

Television Vendors. The amendment 

would merely codify the fees as a 

permanent part of the Network B fee 

schedule. 

The proposed tiered fee structure is as 

follows: 

Number of customer 

households penetrated 

Monthly price per 

1,000 customer 

households penetrated 

1 through 5,000,000 .. $1.50 

5,000,001 through 

10,000,000.

$1.25 

10,000,001 through 

20,000,000.

$1.00 

20,000,001 through 

40,000,000.

$0.80 

40,000,001 through 

60,000,000.

$0.60 

More than 60,000,001 $0.50 

The fee may be prorated where a 

vendor broadcasts the Network B ticker 

for only a portion of the trading day. 

The proration is determined by dividing 

the number of minutes that the vendor 

broadcasts the Network B ticker during 

the primary market’s trading day into 

the total number of minutes in the 

primary market’s trading day (excluding 

after hours’ sessions). Currently, the 

primary market trades from 9:30 a.m. to 

4 p.m. Eastern Standard Time (or for 

390 minutes) on each trading day. 

Accordingly, if a vendor only broadcasts 

the Network B ticker for two hours 

during the trading day, it would 

calculate the Network B fee by (A) 

multiplying the number of households 

reached by (the applicable monthly 

price divided by 1,000 households 

reached) and (B) multiplying that 

product by (120 minutes divided by 390 

minutes). 

Where a vendor owns more than one 

network and broadcasts the Network B 

ticker simultaneously over more than 

one of its networks to a household, the 

vendor only needs to count that 

household once in the calculation of the 

number of households reached. 

The Network B Participants propose 

to quantify the number of households 

reached for billing purposes through the 

use of the monthly Nielsen Cable 

National Audience Demographic Report 

(the ‘‘Nielsen Report’’). For January 

through June of each year, the Network 

B Participants will base the bills upon 

the number of households reached as at 

the end of the preceding September, as 

published in the Nielsen Report. For 

July through December of each year, the 

Network B Participants will base the 

bills upon the number of households 

reached as at the end of the preceding 

March, as published in the Nielsen 

Report. 

Where the Nielsen Report does not 

provide the number of households 

reached for a vendor as at the end of 

March or September, the Network B 

Participants will use the most recent 

figure that the Nielsen Report has 

published as at the end of any of the six 

months preceding that March or 

September. If the Nielsen Report does 

not provide the number of households 

reached during that period, then the 

Network B Participants will ask the 

vendor to report the number of 

households that its broadcasts reach as 

at the end of each September and 

March. The Network B Participants 

reserve the right to verify the accuracy 

of the vendor’s report. 

The new Network B ticker fee applies 

to any television broadcasts of the 

Network B ticker, whether through 

broadcast, cable or satellite television. 

The vendor’s television ticker service 

may not enable the vendor’s subscribers 

to customize or interrogate the ticker 

stream or to electronically capture and 


jdjones on DSK8KYBLC1PROD with NOTICES
57308 Federal Register / Vol. 75, No. 181 / Monday, September 20, 2010 / Notices 

store the last sale price information 

included in the stream. The vendor 

must provide the same ticker to each of 

its subscribers. 

The Network B real-time television 

ticker charges and related measuring 

metric and guidelines apply in a manner 

that is substantially similar to those in 

effect for Network A Television 

Vendors. (Network A charges $2.00 per 

1000 households reached. The Network 

A Participants impose a monthly cap on 

the fees. The monthly cap is currently 

$164,000, but the Network B 

Participants anticipate that the Network 

A Participants will soon propose an 

amendment that would reduce the 

Network A monthly cap to $125,000.) 

The Exchange has discussed the realtime Network B television ticker 

product with both of the two current 

Television Vendors. They have 

provided positive feedback to the 

Exchange, noting that the product is 

appealing to them. 

The Network B Participants believe 

that Television Vendors contribute to 

the widespread distribution of real-time 

market data around the world, making 

it possible for individuals to view realtime Network B prices throughout the 

trading day through television. They 

believe that the proposed charges would 

continue to impose fair and reasonable 

amounts on Television Vendors for that 

service. 

2. Elimination of Broker-Dealer 

Enterprise Monthly Maximum Charge 

In addition to adding the Network B 

Television Ticker Charges to Schedule 

A–3 to the CTA Plan, the Network B 

Participants have also determined to 

revise Schedule A–3 by amending 

Footnote 11, the CTA Plan’s annual 

adjustment of the Network B brokerdealer enterprise maximum monthly 

fee. 

Footnote 11 provides that an entity 

that is registered as a broker/dealer 

under the Securities Exchange Act of 

1934 is not required to pay more than 

$500,000 for any month (the ‘‘Maximum 

Monthly Amount’’) for the aggregate 

amount of: (a) Network B display-device 

charges for devices that its officers, 

partners and employees use; plus (b) 

Network B display-device and per-quote 

packet charges payable in respect of 

services that it provides to 

nonprofessional subscribers that are 

brokerage account customers of the 

broker/dealer. 

The footnote then provides that the 

Maximum Monthly Amount will 

increase each calendar year by an 

amount equal to the percentage increase 

in the annual composite share volume 

for the preceding calendar year, subject 

to a maximum annual increase of five 

percent (the ‘‘Annual Adjustment’’). The 

footnote provides that the annual 

increases will commence with calendar 

year 2001. 

The Network B Participants have had 

no reason to apply the Annual 

Adjustment for the past several years 

because no broker/dealers are currently 

subject to the Network B Maximum 

Monthly Amount. However, they 

anticipate that at least one broker/dealer 

will become subject to the Network B 

Maximum Monthly Amount during 

2010. They believe that the stated preAnnual Adjustment Monthly Maximum 

Amount (i.e., $500,000) is the 

appropriate amount to charge such 

broker/dealers during calendar months 

falling in 2010. 

For that reason, the Network B 

Participants propose to amend the 

Annual Adjustment in Footnote 11 to 

provide that Network B shall apply the 

Annual Adjustment commencing with 

calendar year 2011, rather than 2001. 

Because Network B will not apply 

Annual Adjustments for calendar years 

2001 through 2010, this amounts to a 

decrease in the Maximum Monthly 

Amount. 

The text of the proposed Amendment 

is available on the CTA’s Web site 

(http://www.nysedata.com/cta), at the 

principal office of the CTA, and at the 

Commission’s Public Reference Room. 

B. Additional Information Required by 

Rule 608(a) 

1. Governing or Constituent Documents 

Not applicable. 

2. Implementation of the Amendment 

Over several years, the Network B 

Participants have conducted a pilot 

program that permits vendors to 

disseminate a Network B last sale price 

information ticker by means of 

broadcast, cable and/or satellite 

television. The Network B Participants 

now propose to convert the real-time 

Network B ticker initiative from a pilot 

program to a permanent part of the 

Network B rate schedule. The proposed 

permanent tiered fee structure is 

identical to the fee structure that has 

applied during the pilot program. 

In addition, by eliminating the 

Annual Adjustment, the Network B 

Participants propose to amend the 

Maximum Monthly Amount payable by 

a broker/dealer in the form of (i) 

Network B display-device charges and 

(ii) Network B display charges and perquote packet charges provided to 

nonprofessional subscribers that are 

brokerage account customers of the 

broker/dealer. 

Because the amendment establishes or 

amends fees collected on the Network B 

Participants’ behalf in connection with 

access to, or use of, the facilities 

contemplated by the CTA Plan, the 

amendment becomes effective upon 

filing with the Commission. 

As a result, the amendment will ‘‘be 

implemented’’ immediately. The new 

Network B permanent fees will 

supersede and replace the pilot 

program. As additional vendors 

undertake to transmit the Network B 

ticker over television, they will be 

subject to the new fee in accordance 

with the guidelines set forth in this 

proposed amendment to the CTA Plan. 

The elimination of the Annual 

Adjustment will have no current 

impact, as no broker/dealer currently 

qualifies for the Maximum Monthly 

Amount. 

3. Development and Implementation 

Phases 

See Item I(B)(2) above. 

4. Analysis of Impact on Competition 

The amendment will impose no 

burden on competition. 

5. Written Understanding or Agreements 

Relating to Interpretation of, or 

Participation in, Plan 

The Participants have no written 

understandings or agreements relating 

to interpretation of the CTA Plan as a 

result of the amendment. 

6. Approval by Sponsors in Accordance 

with Plan 

Under Section IV(b) of the CTA Plan, 

each CTA Plan Participant must execute 

a written amendment to the CTA Plan 

before the amendment can become 

effective. The amendment is so 

executed. 

7. Description of Operation of Facility 

Contemplated by the Proposed 

Amendment 

Not applicable. 

8. Terms and Conditions of Access 

Not applicable. 

9. Method of Determination and 

Imposition, and Amount of, Fees and 

Charges 

In determining the amount of the realtime Network B television tiered fee 

structure, the Network B Participants 

have carried over the same fee that has 

applied during the real-time Network B 

television ticker pilot program. 

The Network B Participants 

established the pilot program fees 

through a process of discussion and 

negotiation with the first participants in 


jdjones on DSK8KYBLC1PROD with NOTICES
Federal Register / Vol. 75, No. 181 / Monday, September 20, 2010 / Notices 57309 

5 17 CFR 200.30–3(a)(27). 

1 15 U.S.C. 78k–1. 

2 17 CFR 242.608. 

3Each participant executed the proposed 

amendment. The Participants are: BATS Exchange, 

Inc.; Chicago Board Options Exchange, 

Incorporated; Chicago Stock Exchange, Inc.; 

Financial Industry Regulatory Authority, Inc.; 

International Securities Exchange LLC; NASDAQ 

OMX BX, Inc.; NASDAQ OMX PHLX, Inc.; The 

NASDAQ Stock Market LLC; National Stock 

Exchange, Inc.; New York Stock Exchange LLC; 

NYSE Amex, Inc.; and NYSE Arca, Inc. 

4See Securities Exchange Act Release Nos. 10787 

(May 10, 1974), 39 FR 17799 (May 20, 1974) 

(declaring the CTA Plan effective); 15009 (July 28, 

1978), 43 FR 34851 (August 7, 1978) (temporarily 

authorizing the CQ Plan); and 16518 (January 22, 

1980), 45 FR 6521 (January 28, 1980) (permanently 

authorizing the CQ Plan). The most recent 

restatement of both Plans was in 1995. The CTA 

Plan, pursuant to which markets collect and 

disseminate last sale price information for nonNASDAQ 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. The 

CQ Plan, pursuant to which markets collect and 

disseminate bid/ask quotation information for listed 

securities, is also a ‘‘national market system plan’’ 

under Rule 608 under the Act, 17 CFR 242.608. 

the pilot program. Currently, two 

Television Vendors participate in the 

program. In the view of the Network B 

Participants, using the number of 

households reached as the billing metric 

for the dissemination of last sale price 

information through television is a 

reasonable counterpart to metrics used 

in other contexts, such as counting 

devices, subscriber entitlements or 

quote packets. The billing metric is the 

same as television advertisers use, a fact 

that serves to discipline accuracy of the 

households-reached count (since the 

television networks have incentives to 

maximize the number of households 

reached while the advertisers have 

incentives to minimize the number). 

The Network B Participants believe 

that the level of the fee is fair and 

reasonable and allows the television 

vendors to contribute an appropriate 

amount for the market data services that 

they provide. It constitutes a reasonable 

allocation of the costs of running the 

securities markets that the Network B 

Participants operate to the purveyors of 

the Television Vendors. 

10. Method of Frequency of Processor 

Evaluation 

Not applicable. 

11. Dispute Resolution 

Not applicable. 

II. Rule 601(a) 

A. Reporting Requirements 

Not applicable. 

B. Manner of Collecting, Processing, 

Sequencing, Making Available and 

Disseminating Last Sale Information 

The new fee will permit vendors to 

disseminate a ticker stream of Network 

B last sale price information to viewers 

of broadcast, cable or satellite television. 

C. Manner of Consolidation 

Not applicable. 

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 

The Network B Participants will 

require vendors of Network B ticker 

television services to enter into the 

standard form of vendor agreement. It is 

the same form into which the CTA Plan 

Participants require all vendors to enter. 

G. Identification of Marketplace of 

Execution 

Not applicable. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed 

Fourteenth Charges Amendment to the 

CTA Plan 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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–CTA–2010–01 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–CTA–2010–01. This file 

number should be included on the 

subject line if e-mail 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 Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the Amendment that is 

filed with the Commission, and all 

written communications relating to the 

Amendment 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 Web 

site 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 a.m. and 3 p.m. 

Copies of the Amendments also will be 

available for inspection and copying at 

the principal office of the CTA. All 

comment received will be posted 

without change; the Commission does 

not edit personal identifying 

information from ubmissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–CTA–2010–01 and should 

be submitted on or before October 12, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–23359 Filed 9–17–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62912; File No. SR–CTA/ 

CQ–2010–03] 

Consolidated Tape Association; Notice 

of Filing and Immediate Effectiveness 

of the Sixteenth Substantive 

Amendment to the Second 

Restatement of the Consolidated Tape 

Association Plan and Twelfth 

Substantive Amendment to the 

Restated Consolidated Quotation Plan 

September 14, 2010. 

Pursuant to Section 11A of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 608 thereunder,2

notice is hereby given that on August 

27, 2010, the Consolidated Tape 

Association (‘‘CTA’’) Plan and 

Consolidated Quotation (‘‘CQ’’) Plan 

participants (‘‘Participants’’) 3 filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) a proposal 

to amend the Second Restatement of the 

CTA Plan and Restated CQ Plan 

(collectively, the ‘‘Plans’’).4 The proposal 

represents the sixteenth substantive 

amendment to the CTA Plan (‘‘Sixteenth 

Amendment to the CTA Plan’’) and the 

twelfth substantive amendment to the 

CQ Plan (‘‘Twelfth Amendment to the 


jdjones on DSK8KYBLC1PROD with NOTICES