Document ID: SEC-2013-0962-0001
Agency: sec
Document Type: Notice
Title: Consolidated Tape Association and Consolidated Quotation Plans; Reversal Amendments
Posted Date: 2013-05-22T04:00Z

[Federal Register Volume 78, Number 99 (Wednesday, May 22, 2013)]
[Notices]
[Pages 30365-30367]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-12163]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69593; File No. SR-CTA/CQ-2013-03]

Consolidated Tape Association; Notice of Filing and Immediate 
Effectiveness of the Eighteenth Charges Amendment To the Second 
Restatement of the CTA Plan and Tenth Charges Amendment To the Restated 
CQ Plan

May 16, 2013.
    Pursuant to Section 11A of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 608 thereunder,\2\ notice is hereby given that 
on May 10, 2013, the Consolidated Tape Association (``CTA'') Plan and 
Consolidated Quotation (``CQ'') Plan

[[Page 30366]]

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 amendments (``Reversal Amendments'') propose to 
reverse the fee changes for which the Participants filed in the 
Sixteenth \5\ and Seventeenth \6\ Charges Amendments to the CTA Plan 
and the Eighth \7\ and Ninth \8\ Charges Amendments to the CQ Plan.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ 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, New York Stock Exchange 
LLC (``NYSE''), NYSE MKT LLC (formerly NYSE Amex, Inc.), and NYSE 
Arca, Inc. (``NYSE Arca'').
    \4\ See 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 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. The CQ Plan, pursuant to which markets collect and 
disseminate bid/ask quotation information for listed securities, is 
a ``national market system plan'' under Rule 608 under the Act, 17 
CFR 242.608.
    \5\ See Securities Exchange Act Release No. 69157 (March 18, 
2013), 78 FR 17946 (March 25, 2013) (File No. SR-CTA/CQ-2013-01). 
The Commission received two comment letters on the proposal. See 
also Letter to Elizabeth M. Murphy, Secretary, Commission from Henry 
Schwartz, President and Founder, Trade Alert LLC, dated March 20, 
2013 (``Schwartz Letter'') and from Kimberly Unger, Esq., CEO and 
Executive Director, The Security Traders Association of New York, 
Inc. (``STANY''), dated April 10, 2013 (``STANY Letter'').
    \6\ See Securities Exchange Act Release No. 69318 (April 5, 
2013), 78 FR 21648 (April 11, 2013) (File No. SR-CTA/CQ-2013-02). 
The Commission received one comment on the proposal. See also Letter 
to the Commission from James Smith, Director, Hoffman Estates, IL, 
dated April 8, 2013.
    \7\ See supra note 5
    \8\ See supra note 6.
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    Pursuant to Rule 608(b)(3)(i) under Regulation NMS,\9\ the 
Participants designated the Reversal Amendments 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 Reversal Amendments became effective upon filing with the 
Commission. At any time within 60 days of the filing of the Reversal 
Amendments, the Commission may summarily abrogate the Reversal 
Amendments and require that the Reversal Amendments be refiled in 
accordance with paragraph (a)(1) of Rule 608 and reviewed in accordance 
with paragraph (b)(2) of Rule 608, if it appears to the Commission that 
such action is necessary or appropriate in the public interest, for the 
protection of investors, or the 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.
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    \9\ 17 CFR 242.608(b)(3)(i).
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    The Commission is publishing this notice to solicit comments from 
interested persons on the proposed Reversal Amendments.

I. Rule 608(a)

A. Purpose of the Amendments

    On March 11, 2013, the Participants filed with the Commission for 
immediate effectiveness the Sixteenth Charges Amendment to the CTA Plan 
and the Eighth Charges Amendment to the CQ Plan (the ``March 11 
Filings''). Those two amendments (the ``Two Amendments'') made a number 
of changes to the fees payable under the Plans in an effort to achieve 
greater simplicity and to reduce administrative burdens.
    Among other things, they changed professional subscriber charges, 
nonprofessional subscriber charges, per-quote packet charges and access 
charges. They also added new redistribution charges, multiple feed 
charges and late-reporting charges, and the deletion of the Network B 
ticker charge.
    In addition, they consolidated, simplified and updated the market 
data fee schedules under both Plans by replacing Schedules A-1 through 
A-4 of Exhibit E to the CTA Plan and Schedules A-1 through A-4 of 
Exhibit E to the CQ Plan with a single, consolidated fee schedule (the 
``CTA/CQ Fee Schedule'').
    The Participants announced that all of those proposed changes would 
become effective as of April 1, 2013.
    On March 27, 2013, the Participants filed with the Commission for 
immediate effectiveness the Seventeenth Charges Amendment to the CTA 
Plan and the Ninth Charges Amendment to the CQ Plan (the ``March 27 
Filings'').
    The March 27 Filings amended the effective date for one of the 
professional subscriber device fee changes set forth in March 11 
Filings, the change by which the Participants combined separate monthly 
device fees that professional subscribers pay for Network B last sale 
information under the CTA Plan and for Network B quotation information 
under the CQ Plan into one combined monthly fee of $24.00 per device 
for both last sale information and quotation information (the ``Network 
B Device Fee Change'').
    The March 27 Filings delayed the effective date of the Network B 
Device Fee Change from April 1, 2013 to July 1, 2013.
    After consultation with Commission staff, the Participants propose 
to reverse all of the fee changes (the ``Fee Simplification Changes'') 
set forth in the March 11 Filings and the March 27 Filings. As a result 
of the reversal, the Fee Simplification Changes set forth in the March 
11 Filings would not be deemed to have taken effect on April 1, 2013 
and the Fee Simplification Changes set forth in the March 27 Filings, 
would not take effect on July 1, 2013, meaning that the Participants 
would not implement the Fee Simplification Changes for the month of 
April 2013 or otherwise. The Participants anticipate re-examining the 
Fee Simplification Amendments with the potential for re-filing them at 
a later date.

B. Governing or Constituent Documents

    Not applicable.

C. Implementation of the Amendments

    The Reversal Amendments shall be effective when this Agreement has 
been executed on behalf of each Participant and the amendment has been 
filed with the Commission. Once effective, the Reversal Amendment would 
cause the changes set forth in the March 11 Filings not to have become 
effective on April 1, 2013, and would cause the changes set forth in 
the March 27 amendments not to become effective on July 1, 2013. This 
means that the Participants would not implement the Fee Simplification 
Changes for the month of April 2013 or otherwise.

D. Development and Implementation Phases

    Not applicable.

E. Analysis of Impact on Competition

    The proposed amendments do not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act.
    The Participants do not believe that the proposed plan amendments 
introduce terms that are unreasonably discriminatory for the purposes 
of Section 11A(c)(1)(D) of the Act.\10\
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    \10\ 15 U.S.C. 78k-1(c)(1)(D).

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[[Page 30367]]

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

    Not applicable.

G. Approval by Sponsors in Accordance With Plan

    See Item I(C) above.

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

    Not applicable.

I. Terms and Conditions of Access

    See Item I(A) above.

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

    See Item I(A) above.

K. Method and Frequency of Processor Evaluation

    Not applicable.

L. Dispute Resolution

    Not applicable.

II. Rule 601(a) (Solely in Its Application to the Amendments to the CTA 
Plan)

A. Equity Securities for Which Transaction Reports Shall Be Required by 
the Plan

    Not applicable.

B. Reporting Requirements

    Not applicable.

C. Manner of Collecting, Processing, Sequencing, Making Available and 
Disseminating Last Sale Information

    Not applicable.

D. Manner of Consolidation

    Not applicable.

E. Standards and Methods Ensuring Promptness, Accuracy and Completeness 
of Transaction Reports

    Not applicable.

F. Rules and Procedures Addressed to Fraudulent or Manipulative 
Dissemination

    Not applicable.

G. Terms of Access to Transaction Reports

    Not applicable.

H. 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 
amendments are 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-CTA/CQ-2013-03 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/CQ-2013-03. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the Amendments that are filed with 
the Commission, and all written communications relating to the 
Amendments 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 10:00 a.m. and 
3:00 p.m. Copies of the Amendments also will be available for 
inspection and copying at the principal office of the CTA.
    All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-CTA/CQ-2013-03 
and should be submitted on or before June 12, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(27).
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Kevin M. O'Neill,
Deputy Secretary .
[FR Doc. 2013-12163 Filed 5-21-13; 8:45 am]
BILLING CODE 8011-01-P