Document ID: SEC-2009-1314-0001
Agency: sec
Document Type: Notice
Title: Consolidated Tape Association; Order Approving the Eleventh Charges Amendment to the Second Restatement of the Consolidated Tape Association Plan To Waive the Automatic Annual Increase in the Enterprise Cap for 2008
Posted Date: 2009-09-16T04:00Z

[Federal Register: September 16, 2009 (Volume 74, Number 178)]
[Notices]               
[Page 47629]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16se09-97]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60639; File No. SR-CTA-2008-01]

 
Consolidated Tape Association; Order Approving the Eleventh 
Charges Amendment to the Second Restatement of the Consolidated Tape 
Association Plan To Waive the Automatic Annual Increase in the 
Enterprise Cap for 2008

September 9, 2009.

I. Introduction

    On June 7, 2009, the Consolidated Tape Association (``CTA'') Plan 
Participants (``Participants'') \1\ filed with the Securities and 
Exchange Commission (``SEC'' or ``Commission'') pursuant to Section 11A 
of the Securities Exchange Act of 1934 (``Act''),\2\ and Rule 608 
thereunder,\3\ a proposal to amend the Second Restatement of the CTA 
Plan (the ``Plan'') \4\ to waive the automatic annual increase in the 
enterprise cap for 2008. The proposed Plan amendment was published for 
comment in the Federal Register on June 29, 2009.\5\ No comment letters 
were received in response to the Notice. This order approves the 
proposed Plan amendment.
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    \1\ Each Participant executed the proposed amendment. The 
Participants are the American Stock Exchange LLC (n/k/a NYSE 
Alternext US LLC); Boston Stock Exchange, Inc. (n/k/a NASDAQ OMX BX, 
Inc.); Chicago Board Options Exchange, Incorporated; Chicago Stock 
Exchange, Inc.; Financial Industry Regulatory Authority, Inc., 
International Securities Exchange, LLC; The NASDAQ Stock Market LLC 
(``Nasdaq''); National Stock Exchange, Inc.; New York Stock Exchange 
LLC (``NYSE''); NYSE Arca, Inc.; and Philadelphia Stock Exchange, 
Inc. (n/k/a NASDAQ OMX PHLX, Inc.).
    \2\ 15 U.S.C. 78k-1.
    \3\ 17 CFR 242.608.
    \4\ The proposal was originally submitted on June 19, 2008, 
however the exhibits did not reflect the plan language accurately. 
It was refiled on June 7, 2009 with appropriate exhibits.
    \5\ See Securities Exchange Act Release No. 60154 (June 19, 
2009), 74 FR 31076 (``Notice'').
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II. Description of the Proposal

    The Plan currently caps the maximum monthly charge that a broker-
dealer is required to pay in respect of the aggregate amount of: (1) 
Network A display-device charges for devices that the broker-dealer's 
officers, partners and employees use; plus (2) Network A display-device 
and per-quote-packet charges that the broker-dealer pays in respect of 
services that it provides to nonprofessional subscribers that are 
brokerage account customers of the broker-dealer (``Enterprise 
Cap'').\6\
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    \6\ Enterprise Cap found in Schedule A-1 of Exhibit E to the CTA 
Plan.
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    Footnote 5 to Schedule A-1 of Exhibit E to the CTA Plan subjects 
the Enterprise Cap to an automatic annual increase. The automatic 
annual increase is 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.''
    Through this amendment, the Participants proposed to amend the CTA 
Plan to waive the automatic annual increase in the Enterprise Cap for 
2008. As a result, the monthly fee will remain at $660,000 for 2008, 
the same amount as for 2007. The waiver applies to the Enterprise Cap 
only, and not to the ``Television Ticker Maximum,'' also set forth in 
Footnote 6 to Schedule A-1 of Exhibit E to the CTA Plan. The amendment 
also proposed to update Footnote 6 by applying the automatic annual 
increase to the ``Television Ticker Maximum,'' by bringing that monthly 
fee to $157,000 for 2008.

III. Discussion

    After careful review, the Commission finds that the proposed CTA 
Plan amendment is consistent with the Act and the rules and regulations 
thereunder.\7\ Specifically, the Commission finds that the amendment is 
consistent with Rule 608(b)(2) \8\ of the Act in that it is necessary 
for the protection of investors, the maintenance of fair and orderly 
markets, and to remove impediments to a national market system. The 
proposed amendment would reduce the amount of fees paid by some 
entities which should result in a reduction of costs for investors. 
Thus, the proposed amendment is consistent with, and would further, one 
of the principal objectives for the national market system set forth in 
Section 11A(a)(1)(C)(iii) \9\ of the Act--increasing the availability 
of market information to broker-dealers and investors.
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    \7\ In approving this amendment, the Commission has considered 
the proposed amendment's impact on efficiency, competition, and 
capital formation. 15 U.S.C. 78c(f).
    \8\ 17 CFR 242.608 (b)(2).
    \9\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 11A of the Act,\10\ 
and the rules thereunder, that the proposed amendment to the CTA Plan 
(SR-CTA-2008-01) is approved.
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    \10\ 15 U.S.C. 78k-1.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(27).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-22244 Filed 9-15-09; 8:45 am]

BILLING CODE 8010-01-P