Document ID: SEC-2015-0038-0001
Agency: sec
Document Type: Notice
Title: Joint Industry Plans: BATS Exchange, Inc.; BATS Y-Exchange, Inc.; Chicago Board Options Exchange, Inc.; et al.
Posted Date: 2015-01-07T05:00Z

[Federal Register Volume 80, Number 4 (Wednesday, January 7, 2015)]
[Notices]
[Pages 910-911]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-30974]

[[Page 910]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73970; File No. S7-24-89]

Joint Industry Plan; Notice of Filing of Amendment No. 34 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 LLC, Nasdaq Stock 
Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, 
NYSE MKT LLC, and NYSE Arca, Inc.

December 31, 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 December 24, 2014, the operating committee (``Operating Committee'' 
or ``Committee'') \3\ 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'') an amendment to the Plan.\4\ This amendment represents 
Amendment No. 34 (``Amendment No. 34'') to the Plan and proposes to 
shorten the maximum time within which Participants must report trades 
from 90 seconds to 10 seconds, subject to the Participants' obligation 
to report trades as soon as practicable. The Commission is publishing 
this notice to solicit comments from interested persons.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ The Plan Participants (collectively, ``Participants'') are 
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 LLC; Nasdaq Stock Market LLC; National 
Stock Exchange, Inc.; New York Stock Exchange LLC; NYSE MKT LLC; and 
NYSE Arca, Inc.
    \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).
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I. Rule 608(a)

A. Purpose of the Amendments

    Currently, section VIII(B) (Transaction Reports) of the UTP Plan 
provides that ``Each Participant shall, during the time it is open for 
trading, be responsible promptly to collect and transmit to the 
Processor Transaction Reports in Eligible Securities executed in its 
Market by means prescribed herein. . . . All such Transaction Reports 
shall be transmitted to the Processor within 90 seconds after the time 
of execution of the transaction. Transaction Reports transmitted beyond 
the 90-second period shall be designated as `late' by the appropriate 
code or message.''
    The amendment proposes to reduce from 90 seconds to 10 seconds the 
maximum amount of time by which each Participant is required to report 
trades. In addition to reducing the time frame, the Participants 
propose to change the promptly-collect-and-transmit standard to an as-
soon-as-practicable standard. It would now require the Participants to 
``transmit all Transaction Reports as soon as practicable, but not 
later than 10 seconds, after the time of execution.''
    In addition, the amendment would require each Participant to 
establish and maintain collection and reporting procedures and 
facilities reasonably designed to comply with the reporting 
requirement. This would harmonize with a similar, existing requirement 
under the CTA Plan.
    The Participants note that, during 2013, the Commission approved a 
FINRA rule amendment that modified FINRA's trade reporting rules to 
require that FINRA members report over-the-counter transactions in 
Eligible Securities to FINRA as soon as practicable, but no later than 
10 seconds, following execution.\5\ No other Participant has a trade 
reporting rule that permits trade reporting more than 10 seconds after 
execution. As a result, shortening the trade reporting time under the 
UTP Plan seems warranted.
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    \5\ See Securities Exchange Act Release No. 69561 (May 13, 
2013), 78 FR 29190 (May, 17, 2013) (SR-FINRA-2013-013).
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    In addition, the Participants understand that, contemporaneously 
with the filing of this amendment, the Participants in the CTA Plan 
contemplate submitting a plan amendment that would amend the trade-
reporting requirement under that plan to provide for the same trade-
reporting requirements as the UTP Plan Participants propose under this 
Agreement.

B. Impact of the Proposed Amendment

    The Participants receive the vast majority of trade reports in well 
less than 10 seconds, so that the UTP Plan amendment is not likely to 
have a practical impact on trade reporting.

C. Governing or Constituent Documents

    Not applicable.

D. Implementation of Amendment

    All of the Participants have manifested their approval of the 
proposed amendment by means of their execution of the UTP Plan 
amendment. The UTP Plan amendment would become operational upon 
approval by the Commission.

E. Development and Implementation Phases

    Not applicable.

F. Analysis of Impact on Competition

    The proposed amendment does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. The Participants do not believe that the proposed UTP Plan 
amendment introduces terms that are unreasonably discriminatory for the 
purposes of section 11A(c)(1)(D) of the Act.\6\
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    \6\ 15 U.S.C. 78k-1(c)(1)(D).
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G. Written Understanding or Agreements Relating to Interpretation of, 
or Participation in, Plan

    Not applicable.

H. Approval by Sponsors in Accordance With Plan

    Section IV(C)(1)(a) of the UTP Plan requires the Participants to 
unanimously approve the amendment. They have so approved it.

I. Description of Operation of Facility Contemplated by the Proposed 
Amendment

    Not applicable.

J. Terms and Conditions of Access

    Not applicable.

K. Method of Determination and Imposition, and Amount of, Fees and 
Charges

    Not applicable.

[[Page 911]]

L. Method and Frequency of Processor Evaluation

    Not applicable.

M. 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

    As a result of the amendment, the UTP Plan would require each 
Participant to report each trade as soon as practicable, but no more 
than 10 seconds from the time of the trade. In addition, each 
Participant's members would be required to establish and maintain 
collection and reporting procedures and facilities such as to assure 
that such last sale prices will be reported within not more than 10 
seconds (rather than the current 90 seconds) following execution (or 
such shorter period as the Participants may approve), regardless of 
whether they do so 90 percent of the time under normal conditions. 
Currently, each Participant has 90 seconds to report 90 percent of its 
trades within 10 seconds following execution under normal conditions.

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

    The amendment will support the prompt reporting of transaction 
reports by reducing from 90 seconds to 10 seconds the maximum amount of 
time by which each Participant must receive transaction reports from 
its members, subject to the Participants' obligation to report trades 
as promptly as possible.

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

    The Commission seeks general comments on Amendment No. 34. 
Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposal 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 S7-24-89 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 S7-24-89. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies 
of the submission, all written statements with respect to the proposed 
Plan Amendment that are filed with the Commission, and all written 
communications relating to the proposed Plan Amendment 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 filing also will be available for Web site viewing and printing at 
the Office of the Secretary of the Committee, currently located at the 
CBOE, 400 S. LaSalle Street, Chicago, IL 60605. 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 S7-24-89 and should be submitted on or 
before January 28, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(27).
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Brent J. Fields,
Secretary.
[FR Doc. 2014-30974 Filed 1-6-15; 8:45 am]
BILLING CODE 8011-01-P