Document ID: SEC-2010-1487-0001
Agency: sec
Document Type: Notice
Title: Fifteenth Charges Amendment to the Second Restatement of the Consolidated Tape Association Plan
Posted Date: 2010-09-28T04:00Z

[Federal Register: September 28, 2010 (Volume 75, Number 187)]
[Notices]               
[Page 59752-59753]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28se10-116]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62966; File No. SR-CTA-2010-02]

 
Consolidated Tape Association; Notice of Filing and Immediate 
Effectiveness of the Fifteenth Charges Amendment to the Second 
Restatement of the Consolidated Tape Association Plan

September 21, 2010.
    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 21, 2010, 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 fifteenth charges amendment to the CTA Plan (``Fifteenth 
Charges Amendment''), and reflects changes unanimously adopted by the 
Participants. The Fifteenth Charges Amendment seeks to reduce the 
maximum amount that any entity is required to pay for any calendar 
month's charge for broadcast, cable or satellite television 
distribution of a Network A ticker. 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 Plans. 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 
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.; Chicago Board Options 
Exchange, Inc.; Chicago Stock Exchange, Inc.; Financial Industry 
Regulatory Authority, Inc.; International Securities Exchange, LLC; 
NASDAQ OMX BX, Inc.; NASDAQ OMX PHLX, Inc.; The NASDAQ Stock Market 
LLC; National Stock Exchange, Inc.; New York Stock Exchange LLC; 
NYSE Amex LLC; and NYSE Arca, Inc.
    \4\ See Securities Exchange Act Release No. 10787 (May 10, 
1974), 39 FR 17799 (declaring the CTA Plan effective). 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. Description and Purpose of the Amendment

    The CTA Plan currently imposes a monthly charge of $2.00 for every 
1000 households reached on broadcast, cable and satellite television 
distribution of a Network A ticker (the ``Broadcast Charge''). A 
minimum monthly vendor payment of $2,000 applies. CTA permits prorating 
for those who broadcast the data for less than the entire business day, 
based upon the number of minutes that the vendor displays the real-time 
ticker, divided by the number of minutes the primary market is open for 
trading (currently 390 minutes).
    In 2007, the Participants introduced a cap (the ``Television Ticker 
Maximum'') on the Broadcast Charge each calendar month. For months 
falling in calendar year 2007, the ``Television Ticker Maximum'' was 
$150,000.
    For each subsequent calendar year, the monthly Television Ticker 
Maximum increases by the ``Annual Increase Amount.'' The ``Annual 
Increase Amount'' is an amount equal to the percentage increase in the 
annual composite share volume for the preceding calendar year, subject 
to a maximum annual increase of five percent. For 2008, the ``Annual 
Increase Amount'' raised the ``Television Ticker Maximum'' to $157,500. 
For 2008, the ``Annual Increase Amount'' raised the ``Television Ticker 
Maximum'' to $164,000. The ``Annual Increase Amount'' is the same 
adjustment factor that the Network A rate schedule has long applied to 
the monthly broker-dealer enterprise fee.
    In light of the Network A Participants' experience with the Network 
A ticker, the Participants have determined to reduce the Television 
Ticker Maximum. In the amendment, the Participants propose to re-set 
the Television Ticker Maximum to $125,000 for calendar months falling 
in 2010. For calendar months falling in subsequent calendar years, the 
Participants would impose the Annual Increase Amount to the Television 
Ticker Maximum. For example, for calendar months falling in 2011, the 
Participants would increase 2010's $125,000 monthly Television Ticker 
Maximum by the Annual Increase Amount.
    The text of the proposed amendment is available on the CTA's Web 
site (http://www.nysedata.com/cta), at the principal office of the CTA, 
and at the Commission's Public Reference Room.

B. Additional Information Required by Rule 608(a)

1. Governing or Constituent Documents
    Not applicable.
2. Implementation of the Amendment
    The reduction in the monthly Television Ticker Maximum currently 
affects only one vendor. The Participants have notified that vendor. 
The Participants propose to implement the change retroactively so that 
it applies to all calendar months of 2010.
3. Development and Implementation Phases
    See Item I(B)(2) above.
4. Analysis of Impact on Competition
    The amendment will impose no burden on competition.
5. 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.
6. Approval by Sponsors in Accordance With Plan
    Under Section IV(b) of the CTA Plan, each CTA Plan Participant must 
execute a written amendment to the CTA Plan before the amendment can 
become effective. The amendment is so executed.
7. Description of Operation of Facility Contemplated by the Proposed 
Amendment
    Not applicable.
8. Terms and Conditions of Access
    Not applicable.
9. Method of Determination and Imposition, and Amount of, Fees and 
Charges
    The Participants believe that the proposed reduction in the cap on

[[Page 59753]]

Broadcast Charges is fair and reasonable and provides for an equitable 
allocation of dues, fees, and other charges among vendors, data 
recipients and other persons using CTA Network A facilities.
10. Method of Frequency of Processor Evaluation
    Not applicable.
11. 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

    The Network A Participants and the vendor that the proposed 
amendment would affect have already entered into the Network A 
Participants' standard form of agreement. No new terms of access will 
apply, other than the reduction to the cap on the Broadcast Charge.
8. 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 
Fifteenth 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 e-mail to rule-comments@sec.gov. Please include 
File Number SR-CTA-2010-02 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-2010-02. This file 
number should be included on the subject line if e-mail 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 Fifteenth Charges Amendment to 
the CTA Plan that are filed with the Commission, and all written 
communications relating to the Fifteenth 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 a.m. and 3 
p.m. Copies of the Fifteenth 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-
2010-02 and should be submitted on or before October 19, 2010.

    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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-24226 Filed 9-27-10; 8:45 am]
BILLING CODE 8010-01-P