Document ID: SEC-2014-1700-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Consolidated Tape Association
Posted Date: 2014-10-07T04:00Z

[Federal Register Volume 79, Number 194 (Tuesday, October 7, 2014)]
[Notices]
[Pages 60555-60556]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23849]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73285; File No. SR-CTA/CQ-2014-02]

Consolidated Tape Association; Notice of Filing and Immediate 
Effectiveness of the Twentieth Substantive Amendment to the Second 
Restatement of the CTA Plan and Fourteenth Substantive Amendment to the 
Restated CQ Plan

October 1, 2014.
    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 06, 2014, the Chicago Board Options Exchange, Incorporated, 
on behalf of Participants in the Second Restatement of the Consolidated 
Tape Association (``CTA'') Plan and the Restated Consolidated Quotation 
(``CQ'') Plan (collectively the ``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\ These amendments represent 
Substantive Amendment No. 20 to the CTA Plan and Substantive Amendment 
No. 14 to the CQ Plan (collectively ``the Amendments''). The Amendments 
propose to change certain of the voting requirements under the CTA Plan 
and 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, Inc., New York Stock 
Exchange LLC (``NYSE''), NYSE Arca, Inc. and NYSE MKT LLC (formerly 
NYSE Amex, Inc.).
    \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.
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    The Commission is publishing this notice to solicit comments from 
interested persons on the proposed Amendments.

I. Rule 608(a)

A. Description and Purpose of the Amendments

    The Amendments propose (a) to change the vote required under both 
the CTA Plan and the CQ Plan to amend the capacity planning process 
from a unanimous vote to the affirmative vote of a majority of all 
Participants entitled to vote, (b) to change the voting requirement 
needed to reduce a fee under both the CTA Plan and the CQ Plan from 
unanimity to the affirmative vote of two-thirds of all Participants 
entitled to vote, and (c) to change the voting requirement needed to 
establish a new fee or to delete an existing fee under the CQ Plan from 
unanimity to the affirmative vote of two-thirds of all Participants 
entitled to vote.
    In the Participants' view, a majority vote, rather than unanimity 
is the appropriate requirement for changes to the capacity plan, as it 
provides greater flexibility to CTA and the CQ Plan's Operating 
Committee to revise the capacity plan when they find it beneficial to 
do so. The Participants note that the Nasdaq/UTP Plan subjects changes 
to capacity planning to a majority vote.
    Similarly, the Participants view a two-thirds vote, rather than 
unanimity, as the appropriate requirement to reduce or eliminate an 
existing fee or to establish a new fee. Both plans subject raising an 
existing fee to a two-thirds vote and currently subject reducing an 
existing fee to a unanimous vote. The CTA Plan currently subjects 
establishing a new fee or eliminating an existing fee to a two-thirds 
vote. The CQ Plan currently provides for a two-thirds vote to reduce 
the Network B interrogation device fee, but requires unanimity to 
reduce other CQ Plan fees or to eliminate a fee. The Amendments

[[Page 60556]]

would harmonize the voting requirements under the two plans in respect 
of fee-setting. As a result of the proposed Amendments, a two-thirds 
vote would be required under both plans to establish or increase a fee 
or to eliminate or reduce a fee. These changes would provide the 
Participants with greater flexibility in respect of the plans' fee 
schedule.
    The Participants understand that the Participants in the Nasdaq/UTP 
Plan expect to file changes to voting requirements that would subject 
votes on these same matters to the same requirements as the 
Participants in the CTA Plan and the CQ Plan are proposing in these 
Amendments. In addition, subjecting fee reductions to a two-thirds vote 
would harmonize the CTA Plan and the CQ Plan with the counterpart 
requirement under the OPRA Plan.

B. Governing or Constituent Documents

    Not applicable.

C. Implementation of Amendment

    All of the Participants have manifested their approval of the 
proposed Amendments by means of their execution of the Amendments. The 
Amendments would become operational upon approval by the Commission.

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 Exchange 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 Exchange Act.

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 
Amendment

    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. Reporting Requirements

    Not applicable.

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

    Not applicable.

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

    Not applicable.

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 
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-2014-02 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CTA/CQ-2014-02. 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-2014-02 and should be 
submitted on or before October 28, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(27).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014-23849 Filed 10-6-14; 8:45 am]
BILLING CODE 8011-01-P