Document ID: SEC-2014-1644-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Consolidated Tape Association
Posted Date: 2014-10-01T04:00Z

[Federal Register Volume 79, Number 190 (Wednesday, October 1, 2014)]
[Notices]
[Pages 59337-59338]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23311]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73214; File No. SR-CTA-2014-01]

Consolidated Tape Association; Notice of Filing and Immediate 
Effectiveness of the Quote Meter Audit Late Fee Twentieth Charges 
Amendment to the Second Restatement of the Consolidated Tape 
Association Plan

September 25, 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 8, 2014, the Consolidated Tape Association (``CTA'') Plan and 
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 twentieth charges amendment to the CTA Plan (``Twentieth 
Charges Amendment''), and reflects changes unanimously adopted by the 
Participants. The Twentieth Charges Amendment seeks to impose a late 
fee (``Late Fee'') on a vendor or other data redistributor that fails 
to submit the results of the required audit of its quote meter system 
in a timely manner. 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 CTA Plan. 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 Late Fee amendment.
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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., EDGX Exchange, Inc., Financial Industry 
Regulatory Authority, Inc., International Securities Exchange, LLC, 
NASDAQ OMX BX, Inc., NASDAQ OMX PHLX, Inc., Nasdaq Stock Market LLC, 
National Stock Exchange, New York Stock Exchange LLC, NYSE MKT LLC, 
and NYSE Arca, Inc. (collectively, ``Participants'').
    \4\ See Securities Exchange Act Release No. 10787 (May 10, 
1974), 39 FR 17799 (declaring the CTA Plan effective). The most 
recent restatement of the CTA Plan 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.
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I. Rule 608(a)

A. Purpose of the Amendment

    One of the payment options that the Participants make available to 
data redistributors is the per-query option. Currently, a data 
redistributor may pay $0.005 for every data query to which it responds.
    The Participant's form of ``Agreement for Receipt and Use of Market 
Data'' requires each data redistributor that wishes to redistribute 
data on a per-query basis to periodically audit its quote-metering 
system. The Participants have required per-query vendors to 
periodically audit their quote meter systems since they first 
established the per-query payment option in the late 1990's. They have 
found that the audits are essential to assuring the accuracy of per-
query counts and payments.
    However, some data redistributors have been derelict in performing 
the audits or have been tardy in providing the Participants with 
reports of the results of the audits. These instances place 
administrative burdens on the network administrators and add cost to 
the payment-collection process.
    The amendment seeks to compensate the Participants for the added 
administrative costs, to reduce the risk that the Participants will 
under-bill a data redistributor due to faulty quote meter counts, and 
to provide incentives for data redistributors to submit the results of 
their quote meter audits to the Participants in a timely manner. The 
amendment proposes to impose a Late Fee of $3,000 for each month a data 
redistributor falls behind in submitting the results of the required 
quote meter audit to the Participants. The Late Fee applies once a data 
redistributor fails to provide NYSE with its audit results on or prior 
to December 31 of a year in which an audit is required.
    The Participants do not view the amendment as establishing a new 
revenue source. Rather, they hope it encourages all data redistributors 
to submit the results of their quote meter audits in a timely fashion. 
They hope that the Late Fee will motivate non-compliant, or late-
complying, per-query data redistributors to adopt the same practices 
that the majority of per-query data redistributors follow.

B. Governing or Constituent Documents

    Not applicable.

C. Implementation of the Amendment

    Pursuant to Rule 608(b)(3)(i) under Regulation NMS, the 
Participants have designated the proposed Late Fee as establishing or 
changing fees and are submitting the amendment for immediate 
effectiveness. The Participants anticipate commencing to impose the 
Late Fee on data redistributors that are required to submit audit 
reports during 2014, but fail to do so on or prior to December 31, 
2014. Prior to then, the Participants will give notice of the Late Fee 
to data redistributors that provide per-query service.

D. Development and Implementation Phases

    See Item I(C) above.

E. Analysis of Impact on Competition

    The amendment will impose no burden on competition.

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 CTA Plan as a result of the 
amendment.

G. Approval by Sponsors in Accordance With Plan

    In accordance with Section XII(b)(iii) of the CTA Plan, each of the 
Participants has approved the Late Fee.

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

    The Participants believe that the proposed Late Fee is fair and 
reasonable and provides for an equitable allocation

[[Page 59338]]

of dues, fees, and other charges among vendors, data recipients and 
other persons using CTA Network A facilities. They intend that it will 
provide incentives for non-compliant (or late-complying) per-query data 
redistributors to conform to the same practices and requirements by 
which the majority of per-query data redistributors abide.

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

    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 
Twentieth 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 email to rule-comments@sec.gov. Please include 
File Number SR-CTA-2014-01 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CTA-2014-01. 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 Twentieth Charges Amendment to the CTA 
Plan that are filed with the Commission, and all written communications 
relating to the Twentieth Charges Amendment to the CTA Plan 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 Twentieth Charges Amendment to the CTA Plan 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-2014-01 and should be 
submitted on or before October 22, 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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-23311 Filed 9-30-14; 8:45 am]
BILLING CODE 8011-01-P