Document ID: SEC-2013-1649-0001
Agency: sec
Document Type: Notice
Title: Joint Industry Plan; Amendments: Collection, Consolidation and Dissemination of Quotation and Transaction Information for Nasdaq-Listed Securities Traded on Exchanges on an Unlisted Trading Privileges Basis
Posted Date: 2013-09-23T04:00Z

[Federal Register Volume 78, Number 184 (Monday, September 23, 2013)]
[Notices]
[Pages 58352-58354]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-23010]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70429; File No. S7-24-89]

Joint Industry Plan; Notice of Filing of Amendment No. 30 to 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 Submitted by the BATS Exchange, Inc., 
BATS Y-Exchange, Inc., Chicago Board Options Exchange, Incorporated, 
Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., 
Financial Industry Regulatory Authority, Inc., International Securities 
Exchange LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, Nasdaq Stock 
Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, 
NYSE MKT LLC, and NYSE Arca, Inc.

September 17, 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 September 9, 2013, the operating committee (``Operating Committee'' 
or ``Committee'') \3\ 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 Privilege Basis (``Nasdaq/UTP Plan'' 
or ``Plan'') filed with the Securities and Exchange Commission 
(``Commission'') an amendment to the Plan.\4\ This amendment represents 
Amendment No. 30 (``Amendment No. 30'') \5\ to the Plan and proposes to 
remove odd-lot transactions from the list of transactions that are not 
to be reported for inclusion on the consolidated tape. The Commission 
is publishing this notice to solicit comments from interested persons.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ The Plan Participants (collectively, ``Participants'') are 
the: BATS Exchange, Inc.; BATS Y-Exchange, Inc.; Chicago Board 
Options Exchange, Incorporated; Chicago Stock Exchange, Inc.; EDGA 
Exchange, Inc.; EDGX Exchange, Inc.; Financial Industry Regulatory 
Authority, Inc.; International Securities Exchange LLC; NASDAQ OMX 
BX, Inc.; NASDAQ OMX PHLX LLC; Nasdaq Stock Market LLC; National 
Stock Exchange, Inc.; New York Stock Exchange LLC; NYSE MKT LLC; and 
NYSE Arca, Inc.
    \4\ The Plan governs the collection, processing, and 
dissemination on a consolidated basis of quotation information and 
transaction reports in Eligible Securities for each of its 
Participants. This consolidated information informs investors of the 
current quotation and recent trade prices of Nasdaq securities. It 
enables investors to ascertain from one data source the current 
prices in all the markets trading Nasdaq securities. The Plan serves 
as the required transaction reporting plan for its Participants, 
which is a prerequisite for their trading Eligible Securities. See 
Securities Exchange Act Release No. 55647 (April 19, 2007), 72 FR 
20891 (April 26, 2007).
    \5\ The proposal was originally designated as Amendment No. 31. 
See Letter from Thomas P. Knorring, Chairman, Nasdaq/UTP Plan 
Operating Committee to Elizabeth M. Murphy, Secretary, Commission, 
dated September 9, 2013 (``Transmittal Letter''). On September 17, 
2013, the Participants filed a letter to re-designate the proposal 
as Amendment No. 30 and to correct a marking error in the Plan 
language. See Letter from Thomas P. Knorring, Chairman, Nasdaq/UTP 
Plan Operating Committee to Katherine A. England, Assistant 
Director, Division of Trading and Markets, Commission, dated 
September 17, 2013.
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I. Rule 608(a)

A. Purpose of the Amendments

    Currently, Section XIII(B) (Transaction Reports) of the Nasdaq/UTP 
Plan provides that ``Each Participant shall, during the time it is open 
for trading, be responsible promptly to collect and transmit to the 
Processor Transaction Reports in Eligible Securities executed in its 
Market by means prescribed herein.'' However, that section goes on to 
say that ``The following types of transactions are not required to be 
reported to the Processor pursuant to the Plan.'' That list includes 
odd-lot transactions.
    Because odd-lot transactions account for a not insignificant 
percentage of trading volume, the Participants have determined that 
including odd-lot transactions on the consolidated tape of Nasdaq/UTP 
Plan last sale prices would add post-trade transparency to the 
marketplace.
    This amendment proposes to add odd-lot transactions to the 
consolidated tape by removing them from Section XIII(B)'s list of 
transactions that are not required to be reported for inclusion on the 
consolidated tape.
    Due to the lack of economic significance of many individual odd-lot 
orders, the Participants do not propose to include odd-lot transactions 
in calculations of last sale prices. Therefore, odd-lot transactions 
would not be included in calculations of high and low prices and would 
not be subject to Limit Up/Limit Down rules. Similarly, including odd-
lot transactions on the consolidated tape would not trigger short sale 
restrictions or trading halts. However, odd-lot transactions would be 
included in calculations of daily consolidated volume.

[[Page 58353]]

    For purposes of allocating revenue among the Participants under the 
Nasdaq/UTP Plan, the Participants would include odd-lot transactions in 
the Security Income Allocation for each Eligible Security under 
Paragraph 2 (Security Income Allocation) of Exhibit 1 to the Nasdaq/UTP 
Plan. Just as with round lot transactions, an odd-lot transaction with 
a dollar value of $5000 or more would constitute one qualified 
transaction report and an odd-lot transaction with a dollar value of 
less than $5000 would constitute a fraction of a qualified transaction 
report that equals the dollar value of the transaction report divided 
by $5000. The Participants do not anticipate that this will produce a 
significant shift in revenue allocation among the Participants. This 
treatment of odd-lot transactions for revenue allocation purposes does 
not require a change to the language of Exhibit 1 to the Nasdaq/UTP 
Plan.

B. Governing or Constituent Documents

    Not applicable.

C. Implementation of Amendment

    All of the Participants have manifested their approval of the 
proposed amendment by means of their execution of the amendments. 
Subject to Commission approval of the Amendment, the Participants 
intend to add odd-lot transactions to the consolidated tape under the 
Plan commencing October 21, 2013.

D. Development and Implementation Phases

    Not applicable.

E. Analysis of Impact on Competition

    The proposed amendment does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Exchange Act. This change is being proposed and implemented in 
parallel with similar changes to the national market system plan 
governing the trading of stocks listed on NYSE, Amex, and other markets 
(i.e., the CTA Plan). The Participants do not believe that the proposed 
plan amendment introduces terms that are unreasonably discriminatory 
for the purposes of Section 11A(c)(1)(D) of the Act.\6\
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    \6\ 15 U.S.C. 78k-1(c)(1)(D).
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F. 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 Plan as a result of the amendment.

G. Approval by Sponsors in Accordance with Plan

    Each of the Plan's Participants has executed a written amendment to 
the Plan.

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

    Not applicable.

I. Terms and Conditions of Access

    Not applicable.

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

    Not applicable.

K. Method and Frequency of Processor Evaluation

    Not applicable.

L. Dispute Resolution

    Not applicable.

II. Rule 601(a)

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

    Not applicable.

B. Reporting Requirements

    As a result of the amendment, each Participant would be required to 
report odd-lot transactions to the Nasdaq/UTP Plan's Processor for 
inclusion in the consolidated tape.

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

    Not applicable.

D. Manner of Consolidation

    Odd-lot transactions would not be eligible for inclusion in 
calculations of last sale prices and would not be included in 
calculations of high and low prices. However, odd-lot transactions 
would be included in calculations of daily consolidated volume.

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

    The Commission seeks general comments on Amendment No. 30. 
Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposal 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 S7-24-89 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 S7-24-89. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies of 
the submission, all written statements with respect to the proposed 
Plan Amendment that are filed with the Commission, and all written 
communications relating to the proposed Plan 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 10:00 a.m. and 3:00 p.m. Copies of 
the filing also will be available for Web site viewing and printing at 
the Office of the Secretary of the Committee, currently located at the 
CBOE, 400 S. LaSalle Street, Chicago, IL 60605. 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 S7-24-89 and should be submitted on or 
before October 15, 2013.

[[Page 58354]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(27).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-23010 Filed 9-20-13; 8:45 am]
BILLING CODE 8011-01-P