Document ID: SEC-2011-0338-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BATS Exchange, Inc., BATS Y-Exchange, Inc., Chicago Board Options Exchange, Inc., et al.
Posted Date: 2011-03-11T05:00Z

[Federal Register Volume 76, Number 48 (Friday, March 11, 2011)]
[Notices]
[Page 13442]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-5579]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64043; File No. S7-24-89]

Joint Industry Plan; Order Approving Amendment No. 25 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, Inc., Nasdaq Stock 
Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, 
NYSE Amex, Inc., and NYSE Arca, Inc.

March 7, 2011.

I. Introduction

    On December 23, 2010 the operating committee (``Operating 
Committee'' or ``Committee'') \1\ 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'') pursuant to Rule 608 \2\ under the 
Securities Exchange Act of 1934 (``Act'') \3\ a proposal to amend the 
Plan \4\ to permit ministerial amendments to the Plan under the 
signature of the Chairman of the Nasdaq/UTP Plan Operating Committee. 
The proposed amendment was published for comment in the Federal 
Register on January 28, 2011.\5\ No comment letters were received in 
response to the Notice. This order approves the proposal.
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    \1\ The Plan Participants (collectively, ``Participants'') are 
the: BATS Exchange, Inc. (``BATS''); BATS Y-Exchange, Inc.(``BATS 
Y''); Chicago Board Options Exchange, Incorporated (``CBOE''); 
Chicago Stock Exchange, Inc. (``CHX''); EDGA Exchange, Inc. 
(``EDGA''); EDGX Exchange, Inc.(``EDGX''); Financial Industry 
Regulatory Authority, Inc. (``FINRA''); International Securities 
Exchange LLC (``ISE''); NASDAQ OMX BX, Inc. (``BX''); NASDAQ OMX 
PHLX, Inc. (``PHLX''); Nasdaq Stock Market LLC (``Nasdaq''); 
National Stock Exchange, Inc. (``NSX''); New York Stock Exchange LLC 
(``NYSE''); NYSE Amex, Inc. (``NYSEAmex''); and NYSE Arca, Inc. 
(``NYSEArca'').
    \2\ 17 CFR 240.608.
    \3\ 15 U.S.C. 78k-1.
    \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\ See Securities Exchange Act Release No. 63756 (January 21, 
2011), 76 FR 5224 (``Notice'').
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II. Description of the Proposal

    Currently, Section XVI of the Nasdaq/UTP Plan requires each 
Participant to execute most amendments \6\ to the Plan before the 
amendments can be filed with the Commission. The Participants proposed 
to amend the Plan to permit the submission of ministerial Plan 
amendments to the Commission under the signature of the Chairman of the 
Nasdaq/UTP Plan Operating.
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    \6\ 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 may be submitted 
under the signature of the Chairman include amendments to the Plan that 
pertain solely to any one or more of the following:
    (1) Admitting a new Participant into the Plan;
    (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 Plan 
(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 Plan 
(e.g., the Commission rule amending the revenue allocation formula), 
and (iii) that a majority of all Participants has voted to approve; \7\ 
and,
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    \7\ The Participants would vote only to approve the conforming 
language to the Plan, as the Commission's action in approving its 
rule would bind the Participants.
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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 ITS).

III. Discussion

    After careful review, the Commission finds that the proposed 
amendment to the Plan is consistent with the requirements of the Act 
and the rules and regulations thereunder,\8\ and, in particular, 
Section 11A(a)(1) of the Act \9\ and Rule 608 thereunder \10\ 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 system. Permitting the Chairman of the Nasdaq/UTP Plan 
Operating Committee to submit ministerial amendments will increase the 
efficiency of the administration of the Plan and increase the 
timeliness of updating the Plan for accuracy. The proposed amendment 
streamlining the process for admitting new Participants removes 
impediments to competition by facilitating the timely admission of a 
new Participant to the Plan.
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    \8\ The Commission has considered the proposed amendments' 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
    \9\ 15 U.S.C. 78k-1(a)(1).
    \10\ 17 CFR 240.608.
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IV. Conclusion

    It is therefore ordered, pursuant to Section 11A of the Act,\11\ 
and Rule 608 thereunder,\12\ that the proposed amendment to Nasdaq/UTP 
Plan (File No. S7-24-89) is approved.
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    \11\ 15 U.S.C. 78k-1.
    \12\ 17 CFR 240.608.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(27).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-5579 Filed 3-10-11; 8:45 am]
BILLING CODE 8011-01-P