Document ID: SEC-2023-1243-0001
Agency: sec
Document Type: Notice
Title: National Market System Plan Governing the Consolidated Audit Trail for Purposes of Short Sale-Related Data Collection; Amendment
Posted Date: 2023-11-01T04:00Z

[Federal Register Volume 88, Number 210 (Wednesday, November 1, 2023)]
[Notices]
[Pages 75079-75080]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23051]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98739; File No. S7-08-22]

Notice of the Text of the Amendment to the National Market System 
Plan Governing the Consolidated Audit Trail for Purposes of Short Sale-
Related Data Collection

AGENCY: Securities and Exchange Commission.

ACTION: Notice of the text of amendment to national market system plan.

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SUMMARY: The Securities and Exchange Commission (``Commission'') is 
publishing notice of the text of the adopted amendment to the National 
Market System Plan Governing the Consolidated Audit Trail (``CAT NMS 
Plan'') in connection with the Commission's issuance of Release No. 34-
98738, ``Short Position and Short Activity Reporting by Institutional 
Investment Managers'' (``Adopting Release''), published elsewhere in 
this issue of the Federal Register.

DATES: The effective date for the amendment to the CAT NMS Plan is 
January 2, 2024.
    Compliance date: The compliance date for the amendment to the CAT 
NMS Plan is July 1, 2025.

FOR FURTHER INFORMATION CONTACT: Timothy M. Riley, Branch Chief; 
Patrice M. Pitts, Special Counsel; James R. Curley, Special Counsel; 
Jessica Kloss, Attorney-Advisor; Brendan McLeod, Attorney-Advisor; 
Roland Lindmayer, Attorney-Advisor; and Josephine Tao, Assistant 
Director, Office of Trading Practices, Division of Trading and Markets, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549, at (202) 551-5777.

SUPPLEMENTARY INFORMATION:

I. Background

    In the Adopting Release, the Commission is adopting new 17 CFR 
240.13f-2 (``Rule 13f-2'') and related Form SHO (referenced in 17 CFR 
249.332) under the Securities Exchange Act of 1934 (``Exchange Act''). 
Rule 13f-2 requires certain institutional investment managers to 
report, on a monthly basis on new Form SHO, certain prescribed short 
position data and short activity data for certain equity securities. 
The Commission is not adopting the proposed amendment to the CAT NMS 
Plan that would have required the reporting to the Consolidated Audit 
Trail of ``buy to cover'' order marking. The Commission is adopting an 
amendment to the CAT

[[Page 75080]]

NMS Plan, pursuant to 17 CFR 242.608(a)(2) and (b)(2), to require the 
reporting to the Consolidated Audit Trail of reliance on the bona fide 
market making exception in Regulation SHO, with some non-substantive, 
technical changes with regard to the wording of the rule text.\1\ This 
Notice is being given of the text of the adopted amendment to the CAT 
NMS Plan. For a full discussion of the adopted amendment to the CAT NMS 
Plan, see the Adopting Release.
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    \1\ See Short Position and Short Activity Reporting by 
Institutional Investment Managers, Exchange Act Release No. 34-98738 
(Oct. 13, 2023), at n. 38 and accompanying text.
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II. Compliance Date

    The Commission is setting a compliance date of 20 months from 
publication in the Federal Register, which is 18 months after the 
effective date of the Adopting Release.\2\
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    \2\ Id. at 141 (discussing compliance date for amendment to the 
CAT NMS Plan).
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III. Statutory Authority and Text of the Amendment to the CAT NMS Plan

    Pursuant to the Exchange Act and, particularly, Sections 2, 3, 5, 
6, 11A(a)(3)(B), 15, 15A, 17(a) and (b), 19, and 23(a) thereof, 15 
U.S.C. 78b, 78c, 78e, 78f, 78k-1, 78o, 78o-3, 78q(a) and (b), 78s, and 
78w(a), and pursuant to Rules 608(a)(2) and (b)(2) thereunder, the 
Commission is amending the CAT NMS Plan in the manner set forth below.
    Amend Section 6.4 of the CAT NMS Plan by modifying paragraphs 
(d)(ii)(B) and (C) and adding paragraph (d)(ii)(D).
    The revisions read as follows. Additions are italicized; deletions 
are [bracketed].
* * * * *

Section 6.4 Data Reporting and Recording by Industry Members

* * * * *

(d) Required Industry Member Data

    (i) No change.
    (ii) No change.
    (A) No change.
    (1)-(3) No change.
    (B) if the trade is cancelled, a cancelled trade indicator; 
[and]
    (C) for original receipt or origination of an order, the Firm 
Designated ID for the relevant Customer, and in accordance with 
Section 6.4(d)(iv), Customer Account Information and Customer 
Identifying Information for the relevant Customer[.]; and
    (D) for the original receipt or origination of an order to sell 
an equity security, whether the order is for a short sale effected 
by a market maker in connection with bona fide market making 
activities in the security for which the exception in Rule 
203(b)(2)(iii) of Regulation SHO is claimed.

    By the Commission.
    Dated: October 13, 2023.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-23051 Filed 10-31-23; 8:45 am]
BILLING CODE 8011-01-P