Document ID: SEC-2008-1314-0001
Agency: sec
Document Type: Notice
Title: Consolidated Tape Association; Order Approving the Twelfth Substantive Amendment to the Second Restatement: Consolidated Tape Association Plan and the Eighth Substantive Amendment to the Restated Consolidated Quotation Plan
Posted Date: 2008-09-25T04:00Z

[Federal Register: September 25, 2008 (Volume 73, Number 187)]
[Notices]               
[Page 55570-55571]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25se08-87]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58585; File No. SR-CTA/CQ-2008-02]

 
Consolidated Tape Association; Order Approving the Twelfth 
Substantive Amendment to the Second Restatement of the Consolidated 
Tape Association Plan and the Eighth Substantive Amendment to the 
Restated Consolidated Quotation Plan

September 18, 2008.

I. Introduction

    On June 19, 2008, the Consolidated Tape Association (``CTA'') Plan 
and Consolidated Quotation (``CQ'') Plan participants 
(``Participants'') \1\ filed with the Securities and Exchange 
Commission (``Commission'') pursuant to Rule 608 \2\ under the 
Securities Exchange Act of 1934 (``Act'') \3\ a proposal to amend the 
CTA and CQ Plans (collectively, the ``Plans'') \4\ to: (1) Permit 
ministerial amendments to the Plans to be submitted to the Commission 
under the signature of the Chairman of CTA/CQ Operating Committee, 
rather than by means of each Participant's execution of a Plan 
amendment; (2) accommodate recent changes to the names and addresses of 
certain Participants; and (3) change the Plans' references to 
Commission rules to reflect the re-designation of rules by Regulation 
NMS \5\ (``Amendments''). The proposed Amendments were published for 
comment in the Federal Register on August 20, 2008.\6\ No comment 
letters were received in response to the Notice. This order approves 
the Amendments.
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    \1\ Each Participant executed the proposed amendment. The 
Participants are the American Stock Exchange LLC; Boston Stock 
Exchange, Inc.; Chicago Board Options Exchange, Incorporated; 
Chicago Stock Exchange, Inc.; Financial Industry Regulatory 
Authority, Inc., International Securities Exchange, LLC; The NASDAQ 
Stock Market LLC (``NASDAQ''); National Stock Exchange, Inc.; New 
York Stock Exchange LLC; NYSE Arca, Inc.; and Philadelphia Stock 
Exchange, Inc.
    \2\ 17 CFR 240.608.
    \3\ 15 U.S.C. 78k-1.
    \4\ See Securities Exchange Act Release Nos. 10787 (May 10, 
1974), 39 FR 17799 (order approving CTA Plan); 15009 (July 28, 
1978), 43 FR 34851 (August 7, 1978) (order temporarily approving CQ 
Plan); and 16518 (January 22, 1980), 45 FR 6521 (order permanently 
approving 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. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005).
    \6\ See Securities Exchange Act Release No. 58358 (August 13, 
2008), 73 FR 49225 (``Notice'').
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II. Description of the Proposal

    Currently, both Plans require each Participant to execute most 
amendments \7\ to the Plans before the amendments can be filed with the 
Commission. The Participants propose to amend the Plans to permit the 
submission to the Commission of ministerial amendments to the Plans 
under the signature of the Chairman of the CTA/CQ Operating Committee, 
in lieu of requiring each Participant's signature indicating that it 
has executed the amendment as required by Section IV(b) of the CTA Plan 
and Section IV(c) of the CQ Plan.
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    \7\ Some Plan amendments do not require a unanimous vote; 
therefore not every Participant would have to execute the amendment.
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    The categories of ministerial Plan amendments that the Participants 
may submit under the signature of the Chairman include amendments to 
the Plans that pertain solely to one or more of the following:
    (1) Admitting a new Participant into the Plans;
    (2) Changing the name or address of a Participant;
    (3) Incorporating a change that the Commission has implemented by 
rule and that requires no conforming language to the text of the Plans 
(e.g., the Commission rule establishing the Advisory Committee);
    (4) Incorporating a change (i) that the Commission has implemented 
by rule, (ii) that requires conforming language to the text of the 
Plans (e.g., the Commission rule amending the revenue allocation 
formula), and (iii) that a majority of all Participants has voted to 
approve; \8\
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    \8\ The Commission notes that the vote of the Participants would 
concern the exact wording of conforming language, but not the change 
implemented by the Commission.
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    (5) Incorporating a purely technical change, such as correcting an 
error or an inaccurate reference to a statutory provision, or removing 
language that has become obsolete (e.g., language regarding the 
Intermarket Trading System Plan).
    In addition, the Participants propose to amend the Plans to reflect 
changes in the corporate names of the Chicago Board Options Exchange, 
Incorporated (formerly, Chicago Board Options Exchange, Inc.) 
(``CBOE''), the Financial Industry Regulatory Authority, Inc. 
(formerly, the National Association of Securities Dealers, Inc.), and 
National Securities Exchange, Inc. (formerly, National Securities 
Exchange), as well as changes in the street address of CBOE.
    The Participants further propose to change references in the Plans 
to Commission rules to reflect the re-designation of certain Commission 
rules as a result of Regulation NMS.\9\
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    \9\ See supra note 5.
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III. Discussion

    After careful review, the Commission finds that the Amendments to 
the Plans are consistent with the requirements of the Act and the rules 
and regulations thereunder,\10\ and, in particular, Section 11A(a)(1) 
of the Act \11\ and Rule 608 thereunder \12\ in that they are necessary 
or appropriate in the public interest, for the protection of investors 
and the maintenance of fair and orderly markets, to remove impediments 
to, and perfect the mechanisms of, a national market

[[Page 55571]]

system. The Commission finds that permitting the Chairman of the CTA/CQ 
Operating Committee to submit ministerial amendments will increase the 
efficiency of the administration of the Plans and increase the 
timeliness of updating the Plans for accuracy. Additionally, the 
Commission finds that the proposed Amendments streamlining the process 
for admitting new Participants remove impediments to competition by 
facilitating the timely admission of a new Participant to the Plans.
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    \10\ The Commission has considered the proposed amendments' 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
    \11\ 15 U.S.C. 78k-1(a)(1).
    \12\ 17 CFR 240.608.
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IV. Conclusion

    It is therefore ordered, pursuant to Section 11A of the Act,\13\ 
and Rule 608 thereunder,\14\ that the proposed amendments to the CTA 
and CQ Plans (SR-CTA/CQ-2008-02) are approved.
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    \13\ 15 U.S.C. 78k-1.
    \14\ 17 CFR 240.608.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(27).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E8-22489 Filed 9-24-08; 8:45 am]

BILLING CODE 8010-01-P